Four of the 10 principles of Global Compact
pertain to Labour, they pertain to people. I think there is a
significant message there.
As globalisation inevitably progresses at a
feverish speed and as companies look for new markets and new
geographics, one can visualise increasing challenges on the
labour front. Globalisation could well threaten the livelihood
and well-being of poor, unskilled labour in developing
countries – and we are seeing this today will increasing demand
for skilled labour outstripping their availability – and, at the
same time it could adversely affect skilled labour in developed
nations, as more and more jobs more towards developing
countries. Labour could well feel left out in contributing to
wealth creation and feel left out from participating in an
organisation’s growth and prosperity. They might start to get a
feeling of being ‘used’ for activities rather than feel part of
a process. This is a stark reality.
I am fortunate to represent an Industrial
Enterprise, Tata Steel & the Tata Group, that has practiced the
principles of today’s Global Compact for over a hundred years
and I can do no better than to narrate what we have actually
practiced over these hundred years to draw some examples, for
the globalisation process and its after effect, in terms of
labour.
Principle 3 of the Global Compact says:
“To uphold freedom of association and the
effective recognition of the right to collective bargaining”
In terms of practice:
-
The first labour association in India
came into being in Tata Steel in 1920. The Tata Workers
Union was born in 1937 and in the vehicle for collective
bargaining even today.
-
In a world which is increasingly thinking
of doing away with or avoiding labour unions, we believe
that a strong and responsible trade union in fundamental to
industrial peace. Four years ago, we celebrated 75 years of
uninterrupted industrial peace.
-
For over 50 years, Tata Steel has had a
unique system of participative management through a 3-tier
consultative system-Joint Departmental Council, Joint Works
Council and Joint Council of Consultative management. In
each of these, a worker representative and a management
representative are Chairman every alternative year.
-
There are numerous formal 2-way
communications between the union and the management, between
the workers and management.
Principle 4 of the Global Compact states:
“To eliminate all forms of forced and
compulsory labour”
In terms of practice:
-
No forced or compulsory labour is
permitted access the value chain. We also work with the
society to eliminate it outside our system.
-
Tata Steel’s welfare initiatives reach
out to communities around its operations with income
generation activities and linkage to government activities
to prevent the poor and disadvantaged from following into
debt traps resulting in forced labour.
-
Our micro credit schemes and self help
groups have created opportunities for and mobilised rural
and urban poor to gain economic independence.
Principle 5 of the Global Compact says :
“To abolish effectively child labour”
-
Tata Steel is certified to SA 8000.
-
Tata Steel established schools in the
1920’s to ensure education for future generations. Today, it
runs educational excellence programmes in the schools in the
town we operate from.
-
In rural areas, school drop outs are
being encouraged to go back to school through bridge courses
that help them to rejoin the main stream.
-
In this centenary year of the Company,
Tata Steel has initiated a major developmental programme for
the marginalised tribal population in three states of India.
Principle 6 of the Global Compact Stipulates,
“To eliminate discrimination with respect to
employment and occupation”
In terms of practice:
-
The Tata Steel employee application does
not ask for religious, linguistic or regional affiliations.
-
In all new geographics, wherever it has
gone – we are now in 45 countries – Tata Steel has retained
the local work force and management. It has placed its faith
in the people of the geography where it has set foot. I
believe this is a unique trait of the Tata Group.
-
In yet another unique initiative – called
Tejaswini – Tata Steel reskills women employed as tea
ladies, office clerks and messengers to become crane
operations, pay loader, dumper and locomotive drivers to
prevent them from becoming surplus due to automation.
-
Tata Steel does not discriminate against
HIV/AIDS + persons.
Tata Steel’s Vision-2007 was co-created with
some 8000 employees, of which 6000 were workers. Our workers
participate actively in knowledge management, Quality Circles,
small group activities, TQM and many when continuous improvement
activities. After all, innovation and creativity have nothing to
do with education!
The simple point I am making is “Inclusive
Growth” needs to include labour and more so in a situation of
high speed globalisation. If we don’t do this, the positive side
of globalisation will not be felt by a large section of the
population and globalisation itself will not progress. In the
developed countries, ‘labour’ in an old subject often considered
as an uninteresting subject. But it is greatly relevant to the
developing world and it is indeed in the developing world that
furious development is taking place.
Considering the fact that four of the 10
principles of Global compact pertain to labour, I believe labour
needs to be represented better in these forums.
Thank you
