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Trade Unions In IT and ITeS Industry

Group No. 8
Rupesh Pawar PGP27375 Sarita Jaiswal PGP27376 Satyajeet Jaiswal PGP27377 Satyanarayana Murthy PGP27378 Shalabh Malhotra PGP27379 Shanker Mohan PGP27380 Shiwangi Sahu PGP27381

One of the Best IT industry in the world World leading exporter of BPO

Revenues contribute more than 7% of GDP

Total people in IT industry more than 1 million

Labour Problems in the IT Industry

Atypical working hours in BPOs High Attrition Rates Pay structure and career Working Conditions
8 hours working day is only on paper Not even given leave during national holidays

Average attrition of 40 to 60% Demanding and stressful nature of work Some companies fire based on performance

In most cases up to 50% of quoted salaries are garnished Few long term career paths and bleak promotion opportunities due to structural hierarchy

Not even appointment order provided in some cases Unearthly working hours, stress and demand for over exertion Feeling of insecurity, humiliation and cases of sexual harassments

Exploitation of IT Companies

CSC India Cranes Software

Allegations of CSC India underpaying its IT employees in Denmark violating the pay structures set by the Aliens act Employee who raised the issue was asked to resign

Cranes software did not pay the dues to its parting employees Emails sent to the respective contact persons were not attended

Rationale for Trade Unions in IT/ITES

Only industry not governed by laws
No specific modules designed for career growth Training outside IT not provided Trade unions will help the industry growth on the whole Improve Working Conditions and Terms of Employment

Why Unionization Failed

EXTERNAL INTERNAL Organizational and Contextual
Worldwide unpopularity of unions Fear of loosing India Advantage Unfavorable socio-politico legal condition for union organizers Growing service sector with low union density and faster technological advances

Open HR policies giving the feel of flat hierarchy New middle class increasingly benefitted from private sector and liberalization of economy Identifies themselves as professionals (white collar workers) High attrition, unusual working hours etc makes it hard for unions to organize


Trade unions despised as they were related with slow growth preliberalization Attracted middle class youth who were educated and enjoyed the status Associate with upward mobility, classy clothes, offices and international exposure

Negative effects of Trade Unions

Trade Unions, considered one of the influential among the world, have also been blamed for stagnating the industrial growth. They have misused their influence over working class, to address their political motives. Strikes, lockouts etc. have been a routine in Indian industrial sector. Allowing Trade Unions having political allegiance into IT Industry where time, punctuality, efficiency is quintessential must be done carefully. An impact of strike will lead to loss of credibility of the Industry leading to loss of business which will have a cascading effect on the whole economy. Besides, trade unions having political allegiance may try to impose their ideology and agenda into the industry which may create friction in the industry.

IT Industry works round the cloak 24/7. Any Union activity is also bound to affect the quality of work, as an employee pays his attention to union activity also.

West Bengal Information Technology Association

An IT trade union affiliated to CITU in 2006

To render benevolent service for sustainable development through propagation Exchange of information related to better living condition for mankind To render cyber space accessible to lower strata of the population

The stand of the association in certain matters is crucial. They are:

Issuance of appointment letters with well defined terms and conditions of service 48 hour weekly work schedule , Compliance with CPF and other statutory amenities ESI facilities when ever applicable Registration as Principal Employer with the Department of Labour, West Bengal, where employees are engaged through contractors

UNITES- the Union for IT & IT Enabled Services

UNITES was established in September 2005 in Bangalore with the support from UNI Global Union-a global union for skills and services with 20 million members in 900 unions across the globe. It is dedicated to create a distinct and cogent link between employers & employees at all levels.
It takes up cases of individuals in issues like loss of job, harassment, discrimination and raise the issues in order to get justice Spreads awareness of employee rights through various conferences, monthly newsletters, training sessions and workshops Works in collaboration with UNI and SASK to serve the interests the interests of IT and ITeS sector

International trade Unions :PROSA (Denmark)

Legal Advice

Discounts and Special benefits

Job and career Planning

Membership Benefits

Events and Debates

Competence development

PROSA Active Areas

Supporting Arguing Advocating good Supporting standards for against the use of the right to data increased use open freely use of privacy standards in protection encryption invading governments allowing technologies technologies IT system privacy for citizens

Fighting the legalisation of software patents in Europe

Need for Central Legislation

Central government must take the following measures:
Recognition of Trade Union Activity within the Industry Regulation and fixation of maximum working hours for an IT industry employee. It may vary from 48-60 hours a week depending upon the size, number of commitments/ contracts by a company Guarantee from the Trade Union so recognized that no disruption of work should be undertaken on their part, which detrimentally affect the Firm/Company/Industrys capability to honour its contractual obligation to its customer (both domestic and international customer). If they resort to such activities with out credible and sufficient cause, then they shall make good the lose suffered by the employer Job security to the IT/BPO workers Sick leave/maternity benefits etc to the workers ESI facilities to them when ever applicable.

Quotes from the Industry

A union for IT workers is the urgent need of the hour. I would call the IT professionals 'the labourers of the information age.' They toil long hours; they work at night; and some of them still get meagre salaries. So a labour union for them would help fight for their rights - CITU President M K Pandhe

IT industry professionals in India are 'cyber coolies.' We are trying to organise them and convince them on the need to form a union to fight for their rights and jobs protection.- Union of Network International

Employees in IT and ITES sector do not need any external intervention as they are looked after very well. It is not a good move and I don't think it would succeed. The employees who think of themselves as the CEOs of the future may not support it - Kiran Karnik, President, Nasscom I have no problems with a union in the BPO industry, as long as it guarantees that no employee will leave the organisation before one year. The union should work with the BPO industry to control the menace of attrition.- Raman Roy, ex-CEO, Wipro BPO The move to unionise workers is a retrograde step and would spell disaster for the industry. After having reached this level, any attempt to unionise the workers would set us back.-Prosenjit Ganguly, Head (HR), HTMT, a BPO firm