When corporates in the rich world want to save costs, they outsource their work to developing countries such as Thailand, India and Bangladesh where labour is dirt cheap.

Yet, executive pay remains untouched. In fact, in times of distress, they get bailouts funded by taxpayers.

It's a somewhat similar story in India.

Home-grown corporates, many of whom have now joined hands with multinationals, are worried about the impact of the global financial crisis and want to cut costs.

So, the tried and tested way is to first cut labour costs by outsourcing and hiring contract or casual workers. Here, too, executive pay is not touched.

Strikes, lock-outs on the decline

In fact, such a situation should be ripe for strikes. But the figures speak otherwise. In 2009, a total of 110 units were affected by strikes and 163 by lockouts; in 2010, there were 121 strikes and 153 lock-outs.

Till July 2011, provisional figures put the number of strikes at 70 and lockouts at 21.

There could be many reasons for the fewer strikes — decimated trade unions, the growing number of casual and contract workers and non-recognition of unions.

In any case, over 90 per cent of labour is now in the unorganised sector, which is spread out.

Also, the workforce keeps changing, as in construction, or is seasonal, as in agriculture.

Organised protests, therefore, are a tough call, though trade unions say they are gradually making inroads into the sector.

Experts say because of the change in the character of employment, strikes may have become fewer, but labour unrest seems to be growing.

Fighting for the right to form unions

In the private sector, most recently in Maruti, workers do not have any economic demands — they are fighting for the basic right to form a union.

“If industry can form lobbies such as CII, FICCI and Assocham to protect their interests, why deprive workers of the basic right to organise and protect their interests?” says Mr Dipankar Mukherjee, Vice-President, Centre of Indian Trade Unions.

In 2005, the Gurgaon police lathi-charged Honda Motorcycle workers who had gathered for a meeting in a park.

There was no economic demand — only re-instatement of dismissed colleagues and the right to form a union.

In 2009, employees of Sunbeam Auto in Gurgaon, which supplies parts to General Motors and Ford, went on a 52-day strike seeking recognition for their union.

Labour trouble has also been brewing in Voltas in Haryana, Volvo and Bosch in Bangalore, and Hyundai and Nokia in Tamil Nadu.

“The problem is the increasing number of contract workers, which is in the millions. And, in this case, it is the Government, not the private sector, which is the biggest violator,” says Mr D. L. Sachdeva, General-Secretary, All-India Trade Union Congress.

Trade unions accept that the challenge ahead is big. Apart from seeking changes in the Contract Labour Act, their hopes rest on a growing realisation among the workforce, mostly youngsters, that they need to organise to get their basic rights, decent wages and working conditions.

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