Thiruvananthapuram:
Its a major and deserving setback to the militant trade
unionism that chewed Keralas psyche and physique to a pulp. The
32-day-old strike of state government employees and teachers, which
was called off on 9 March, has sent a strong message to the industry
and investment community in the state: Keralas new political
leadership is no longer challengeable by the so-called unity of often
nonsensical and always belligerent trade unions.
The United Democratic Front governments bold stand has sent out a
vivid message that there is no going back on its stand from the
well-planned and ambitious fiscal reforms agenda. The strike was
called off following the talks Chief Minister A K Antony and his
ministers made with the revolting employees.
The government only agreed to reduce the discount rate of the commuted
value of pension, which was enhanced from 4.75 per cent to 8.75 per
cent in January 2002, by about 2 per cent, and pay full salaries to
protected teachers until June 2002. But the government did not
consider the other major demands put forward by the employees. As it
stands, the employees and teachers will not get their salaries for the
period they were up in arms.
The most significant aspect of the Antony governments decision to
curtail the commutation and leave surrender benefits of the employees
and teachers is that it has come against the backdrop of the
second-generation economic reforms, mostly at the state-level.
What Kerala witnessed for more than a month was a litmus test of the
reforms agenda, and the pro-reforms section in the Indian political
establishment can now feel happy that they have scored a victory in
the first round. Madhya Pradesh had already taken some steps in this
direction and was faced with a discontented staff, and Maharashtra is
now marching down the same path.
Elements of the medium-term
fiscal reforms programme, which was implemented in Kerala in pursuance
of the letters of shared goals that the state had signed with the
central government, are now evident in the measures taken by Antonys
government. As per the tone of this years state budget, more such
measures could be expected in the days to come.
Among the measures that are
likely to be implemented in the coming days are: higher charges for
services rented by public utilities, like the Kerala State Electricity
Board and the Kerala Water Authority; the restructuring of public
sector units with private participation; and the elimination of
subsidies.
Since the government has amply demonstrated its willingness to cut
down on benefits citing its inability to pay, it is unlikely to even
give a thought to revising the government employees payscales. Nor
would the employees be in a position to raise the demand in a
convincing fashion.
Another major outcome is that Antony has strengthened his individual
position through this strike. Perhaps no other chief minister in the
state has shown that kind of staying power Antony performed
during the period of such a ferocious strike. Antony was often
referred to as Mr Clean, but this is the first time he is called
Mr Strong.
Overnight, he turned out to be capable of taking harsh decisions and
defending them, too. The organised might of the government staff
unions has been the biggest block in mounting any administrative reforms,
let alone economic reforms, in the state. Antony is now better placed
to carry out his plans for a new Kerala, which he has been
talking about ever since he assumed the chief ministers mantle.
The handling of the strike is sure to win him political mileage from
across the nation and this will refurbish his image as a weak chief
minister. And many state governments will, no doubt, take a leaf out
of Antonys holy book.
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