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Indian Power Dispute Settled

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15 July, 2005ICEM News release No. 5/2000

Electricity workers in the Indian state of Uttar Pradesh have now ended their strike, following an agreement reached with the government.

The strikers had been protesting at non-consultation over government plans to corporatise the Uttar Pradesh State Electricity Board into separate generation, transmission and distribution businesses. The restructuring, which is backed by the World Bank, is seen as a prelude to privatisation.

The main points of the settlement emerge from an agreed "detailed report and consent on points of discussion" received today by the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM). The report summarises negotiations between strike leaders and the Uttar Pradesh Cabinet Committee of Administration on 25 January. [All direct quotes in the following are unofficial translations].

The strike leaders reported that "the general feeling of employees" is "against the dissolution of the Board". The strike committee "feels it has attracted the attention of the Administration, and the whole nation, to this subject" and it "hopes that the Administration will honour the feelings of its employees". After that, "discussion was held on employee-related issues" and the Cabinet Committee "gave its consent" to a 15-point programme of demands which includes the following:

- All court cases against the strikers are withdrawn. "All imprisoned workers shall be released immediately" and "all the termination, suspension or other such orders" issued against employees in connection with the strike "shall be ineffective from the date of their issuance." Strikers will be considered to have been on leave during the dispute, thus guaranteeing full wage payments and continuity of service during that period.

- There will "under no circumstances" be retrenchment of "any employees". This specificaly includes the various categories of casual and contract labour. Conditions of service will be at least equal to the present provisions.

- The present "bipartite negotiation system" on pay will continue. In other words, collective bargaining will be maintained.

- Agreements reached with unions before the dissolution of the Electricity Board will also be complied with after restructuring. A current revision of pay anomalies will be completed and implemented.

- Payment of pensions, gratuities and other cash entitlements is guaranteed to all those were employed by the Board or who will be so employed whenever interim restructuring is notified. The state government will set up a trust fund to ensure the financing of the payments.

It is understood that the break-up of the Board may be deferred for some time. Most power workers in Uttar Pradesh are now back at work, but strike leaders complained over delays in the release of some strikers from jail.