Loss of 70 lakhs jobs in first few months of demonetization: JS Majumdar

From the Declaration of 28 September 2018 

National Convention of Workers

Joblosses due to Demonetisation 

The estimates by independent surveys and those sponsored by employers’ organizations revealed loss of 70 lakh jobs with closure of 2.34 lakh small factory units in the first few months of demonetization. The livelihood-loss of another 6 crore people in informal economy and about 17 lakh job losses in organized sector speaks about the grim ground reality. Faced with such pathetic records the government is busy in concoction of statistics with twists to make fraudulent claims on employment generation. Regular Employment Survey which was conducted by Labour Ministry has been stayed.

Aggressive Privatisation of Public Sector

The government is aggressively going ahead with privatization of all strategic PSUs. Defence sector privatization is designed to destroy manufacturing capability and research initiatives developed during last over last six and half decades. Complete privatization of the Railways step by step is going on. Legislative measures to pave the way of privatization of major ports are also in the advanced stage. CPSUs even in core and strategic sectors like Energy, Petroleum, Telecom, Metal, Mining, Machine Building, Electronic and Digital, Road, Air and Water Transport, Port & Dock and more are under the privatization onslaught of the Government.

Outsourcing of Defence Production

Most dubious is outsourcing of more than 50% products including weapons and critical equipments, so long being produced by the Ordinance establishments. More than 250 items manufactured by Ordnance factories have been notified as non-core. Orders are placed to private players for supply of some of these items. Government is determined to close down 5 Ordnance factories manufacturing items used by our soldiers and officers and it would render thousands of workers jobless. Defence PSUs and shipyards are also being subjected to discrimination in respect of work orders while private corporates are being patronized by the Government in defence procurement deals.

Railways Privatisation

Operating private trains in the existing tracks built by Railways is being permitted. Moreover, free access to railway yards, sheds and workshops for maintenance of private coaches, wagons and engines etc are being offered to private operators. Already 23 railway stations in all metro cities have been shortlisted for privatisation. More than 600 railway stations along with land around them have been identified for development through private players in the name of “redevelopment of railway stations and land around them”. It was part of budget speech of the finance minister. Workers not only in Railways but in all Government and Public Sector Undertakings shall be worst victims of privatization in terms of job security, democratic trade union rights and protection of achievements in the areas of pay, perks, social security etc. Like Central Electricity Regulatory Authority (CERC), a Railway Development Authority (RDA) has been created. Given the sky-rocketing increase in electricity tariff by CERC, under RDA railway fare and goods freight is poised to be hiked hurting the common people and benefiting the private profiteers.

Attack on Road Transport

Attempts are being made by many State governments to dismantle public sector road transport by issuing route permits to private parties. The Central government intends to get the new Motor Vehicle (Amendment) Bill 2017 hastily passed in the parliament which will allow wholesale privatisation of road transport on the one hand and impose draconian measures on the road transport workers including those in private sector. The convention notes the widely participated countrywide strike by road transport workers on 7 August 2018 against the Motor Vehicles Amendment Bill.

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GST is directly affecting the people: JS Majumdar

GST: The Core Issues all Should Know

GST is Indirect Tax System on goods and services directly affecting the people. 

1. It was initiated by Manmohan Singh government and implemented by Modi government on and from 1 July, 2017.
   
2. In one stroke, under GST regime, all goods and services have been brought under tax net (some may be zero at present - yet under tax net); ending the earlier system of item by item tax, debated and approved by the Parliament and Legislative Assemblies.
   
3. There is no more open parliamentary and public debate on indirect tax burden on the people. It has been taken over by GST Council and being decided in close door discussion in corporate style under Central government.
   
4. GST is based on one India market, States’ rights and federalism so far existing have ended.
   
   
5. Administration of GST has been outsourced by the Central and State governments to a private entity known as GST Network (GSTN), with Central and State governments together being minority share holders (49%); majority shares (51%) being controlled by 5 private firms, some of those having even 75% foreign holdings, thus, all data are available to them without security clearance. GSTN is outside the ambit of CAG audit.
   
   
6. GST is equally shared, by the Central government as CGST and States as SGST.
   
   
7. GST mainly consists of Central government’s Central Excise Duty (CED) and Service Tax; and of States’ Sales Tax. CED was origin-based while and States’ Sales Tax was destination-based. There is huge difference on cost/price at origin and consumer’s price in destination. GST is the destination-based taxation. Therefore, there is huge difference between Central government’s earlier CED at origin and CGST being collected now at destination.
   
   
8. There is spiraling increase of GST with spiraling increase in retail prices. Central government must be happy for this double windfall gain - due to transition from CED to CGST – (i) from cost-based to retail-based and (ii) increase in CGST with every increase retail prices – sharing the loot at people’s cost.
   
   
9. GST has been imposed on all public services such as rail, road, water transport, postal communication and on other essential services.
   
   
10. As GST is consumption-based, in one-India market under the GST structure only consumption states get the SGST and manufacturing states suffer losses. Though, compensation package has been designed for a limited period, it is a discouragement to manufacturing and, thereby, employment. It is free one-India market for goods and services irrespective of manufacturing/origin, including imports.
    
    
11. With GST, there is big attack on the social security of the workers. In one stroke, by the Finance Act of 2016 cess collection for several social welfare legislations, accrued by serious struggle by the working class, have been abolished from Mica, Iron Ore, Manganese Ore, Chrome Ore, Limestone, Dolomite Mines; and Salt, Merchant Shipping, Textiles, Tobacco industries and subsequently cine-workers. Cess for construction workers has been subsumed in GST in 2017. These have seriously affected the welfare schemes under respective legislations.
    
    
12. GST has caused huge increase in medicine prices which requires separate note for discussion.

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