Trade Unions and Politics

They say that the Universe is fractal.  It means that the parts forming it are miniaturised versions of the whole that they form.  This makes drawing inferences for larger systems possible by watching  smaller sub-systems.  Though, there must be a limit at which this recursion breaks down; the extreme example being going down to a single point.  

Now, what is happening in the economic and political spheres at the country level may be difficult to observe in its totality because of its sheer size that can't fit into our frame of observation as also a lack of complete data and soft information.  But one can always draw inferences by observing smaller structures within the industry or organization one works in.

Recently a friend and colleague posted in FB about how the trade unions in banking industry have systematically cheated their members and benefitted at their cost.  When I expressed surprise in a comment at the fact that these unions continue to represent bank employees despite a majority of members despising them, another friend made important observations.  He said that the unions are able to retain their stranglehold by vigorously defending errant members facing disciplinary actions, and by siding with the management when it comes to demanding extra efforts for the organization (even though the benefits from it may not flow to them or may disproportionately benefit the top.)

Now take a look at the political sphere.  In our system of first-past-the-poll, and not proportionate representation, any ruling party is, almost as a rule, despised by more people than liked.  A 30% vote share may be more than adequate to ensure complete and even overwhelming majority, and a swing of a few percentage points to lose it.  So how does a party, in power on the basis of such minority support, strengthen its hold?  First by defending or protecting errant members (read criminals) of the society, and second by exhorting the populace in the name of patriotism and nationalism for greater, even slave like, efforts and sacrifices, the benefits of which hardly ever trickle down to them and are mostly reaped by the crony capitalists who always cosy up to the party in power!

Do you agree that the world indeed is fractal?

Trade Unions and Wages in Public Sector Banks in India

Trade unions in the banking industry in India are like living fossils from an age long past.  They have internalized a few moves which probably helped them survive in the past and are utterly unable to learn new responses to today's world that has outevolved them.

The same pattern of slogan raising followed by strikes and a show of fighting it out has been going on for decades.  This rowdyism had alienated bankers from the public at large.  The public thought that bankers were callous and too well paid for what they were doing.  Even though the pay scales have since then plummeted to the bottom most rung, the impression in public mind persists, probably as a reaction to persistence of the fossilized behavior of unions from a distant past.

Everyone wonders, except the wise old union leaders, about the purpose served by one day strikes indulged in by them and stretching the negotiations over years.  This does help the industry as it saves funds on wages for the days of strike and interest on deferred payouts because of protracted negotiations.  It used to hurt other stakeholders like the workers and the public.  They often wondered if there was something going on behind the curtains that somehow benefited the unions and encouraged them to behave the way they did and still do.  Today it doesn't hurt the public much thanks to vast strides in banking technology.  The workers are the sole sufferers.

It would be far better if the workers pooled their salaries for a few days instead of going on strike.  This fund could then be used to insert advertisements in prominent newspapers.  The objective should be to educate the public and the political class about the far higher risks in their job profile and a far lower pay than many others in far easier jobs.

When banks were nationalized, bankers used to draw salaries which exceeded their counterparts in state and central governments.  Naturally this could not go on and soon a committee said that these should be at par with those drawn by counterparts in government.  And once the parity was achieved, they ruthlessly pushed down the wages in the industry which today are the lowest in government and public sector.  This was done all too quietly.  Even the political masters of these scheming and plotting bureaucrats still think that bankers are too well paid.  They hardly have the time to go through the facts.  The same applies to the public at large.  Hence the need for education through massive advertising.

It is a common sense principle that those who deal in money must be paid reasonably well.  Once the public is convinced that those whom they trust with their money are not paid well enough, their sympathy may help swing the outcome of negotiations.

I would further suggest that the trade unions should give up their addiction to negotiations.  The disastrous results are there for all to see.  It will be a far superior option to just ask for total parity with central government employees.  After all isn't this what the bureaucrats wanted in the beginning?  Once you have the parity, you will have no reason or need to negotiate.

But before this can happen, bank employees must educate and enlighten the customers, public and politicians on their current plight.  Striking work is no way to do that.