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Editorial
High prices: govt intervention needed

The kitchen market continues to present a harrowing scene of ever-rising prices of essentials. Prices of essentials had kept rising under the former four-party alliance government and over the period of four and a half months since its departure, prices have risen further by 4 to 71 per cent. A lead story in yesterday’s New Age cited three benchmarks of the price line – 29 October, 2006 (after exit of the alliance government), 11 January (proclamation of the emergency) and the prices as they prevailed on 15 March. The figures are all from government sources, namely the Trading Corporation of Bangladesh and the Department of Agricultural Marketing; and the essential commodities listed are the ‘most sensitive’ ones including rice, course flour, onion, red lentil, red chilli, milk powder and beef. The price of coarse rice has risen 14 per cent and coarse flour 26 per cent; the price of onion is 71 and beef 14 per cent higher.
   Few things affect the daily life of the common man as do the prices of essentials. If prices are not controlled, the common people’s interest will go by default, whatever the gains in other areas, be they real or rhetorical. When the state of emergency was proclaimed and the interim government under Fakhruddin Ahmed took over, the people by and large welcomed the changeover, maybe because the years of poor governance had made them impatient. At that time too uncontrolled price line, along with lawlessness and corruption topped the list of public woes. Not only did prices keep soaring during the last years of Khaleda Zia’s rule but some irresponsible statements made and insensitivity to public suffering shown by some high-ups made the crisis worse confounded. Public expectation from the interim government was therefore high but the government seems to have mixed up its priority and went on a programme of demolition and eviction and thus exacerbated people’s hardship by making many of them jobless too. Some think that the eviction of roadside hawkers contributed to price hike because the owners of big and established stores now had no smaller competitors.
   We are told that the drive against hoarding had led to harassment of some traders and this set off a panic among traders and they were holding back on import; but later the traders were reassured by the government that their fears were ungrounded. We too believe that trust and confidence must prevail in the market so that no nervous situation is created triggering price rise and no innocent citizen should be harassed in business sector or any other sector. In the light of government’s assurance we hope traders will resume plying their trade normally and cooperate in the government’s efforts to keep prices of essentials at reasonable levels. We appreciate the government’s initiative of dialogue with importers, wholesalers and traders and hope the latter will cooperate. This is normal trade and commerce. But then, keeping the prices of essentials is a serious agenda and should not be left to the vagaries of market forces or goodwill of individual businessmen. A market does require government intervention from time to time. The government must have an intervention mechanism in place which it can resort to whenever needed. As we have repeatedly urged inn these columns, the TCB should be revitalised as a corrective. Market manipulation can only be corrected by market intervention.

Bush’s Latin tour and
message to the world

At the very heart of George W Bush’s bid to increase bio-fuel consumption and trade between the United States and Brazil, apparently to reduce US dependence on Venezuelan crude oil and Bolivian natural gas, is actually to create an ally in the Brazilian president, Luis Ignacio Lula Da Silva, and use him as a counterweight to the charismatic Hugo Chavez, the Venezuelan president. Lula, already upset with Chavez for having Bolivia’s Evo Morales to nationalise natural gas since some of it was owned by Brazilian companies besides other things, acting as Washington’s strongman in the American backwaters would also be act like the proverbial wedge through a region that is becoming increasingly united in solidarity to their left leaning ideology. Although elected on a socialist platform, Brazil under Lula has been one of the main stabilisers of free trade as the United States would like to see it.
   The recent tour of the US president had been meant to strengthen the US hold in Latin America and for that purpose the itinerary only included countries — Brazil, Uruguay, Colombia, Mexico and Guatemala — that are, at least on the surface and as far as the ruling regime is concerned, opposed to the flaming red brand leftist ideology, championed by Chavez, that is fast taking hold in other countries. While Uruguay is not averse to free trade, Guatemala’s was the crucial vote that prevented Venezuela from getting on the Security Council of the United Nations last year. Colombia gets much foreign aid in the name of fighting drugs from Washington and Mexico’s Calderon has publicly criticised Chavez and has managed to get himself acknowledged as making the ‘right choice.’
   The regimes could not, however, contain the violent outburst that accompanied Bush on his tour. As media reports have stated hundreds of people, mostly students, clashed with the police wherever Bush was scheduled to visit and the meeting venues had to be sealed off for security reasons, Chavez was greeted by gleeful thousands as he embarked on his counter tour.
   That a continent, having been under the rule of the United States for long, where it has overtly and covertly overthrown or demeaned dozens of regimes, could rise up against US imperialism and actually afford to consolidate itself under the very nose of the most powerful country in the world comes as a message to the entire world. Even where there are regimes that favour the imperialist agenda, opposing factions are strong.
   Parts of the world that are still struggling to shrug off the shackles of the imperialist hegemony made stronger by the current US regime can only be inspired.


SUNDAY COLUMN
CBA

Hasnat Abdul Hye
In is not news that trade union leaders make money and are corrupt. But the amount of money and size of property that they own have come as a shocking revelation. In most cases the trade union leaders are employees of government agencies, particularly those concerned with supply of utilities, like electricity, gas, telephone and water. Public sector financial institutions like banks have also become happy hunting ground of trade union leaders, it is found

Among the startling revelations in recent weeks has been the vast wealth amassed by trade union leaders of various organisations. They have been found to have enormous amount in cash and immovable properties, ranging from land to palatial buildings. Some of the land and buildings are in prime areas of cities, while others are located in villages and suburban areas. Even buildings constructed in villages which are used by them for recreation only, have been found to be imposing. The extravagance demonstrates the extent of their vast wealth. Needless to say, the wealth of trade union leaders are disproportionate to their income and have been created through unfair means and corrupt practices.
   In is not news that trade union leaders make money and are corrupt. But the amount of money and size of property that they own have come as a shocking revelation. In most cases the trade union leaders are employees of government agencies, particularly those concerned with supply of utilities, like electricity, gas, telephone and water. Public sector financial institutions like banks have also become happy hunting ground of trade union leaders, it is found.
   Trade unions are meant for collective bargaining, among others, to protect the interests of labourers and employees. Their activities are legal and justified. But this is in the context of private ownership of industries and such like institutions where owners may not want to give fare wages and remuneration to workers and employees on their own. Recognising a possible and real conflict of interest between the two sides, the legality and necessity of trade union activities was recognised. There had to be a long and sometimes brutal struggle before the workers’ right to organise themselves in industries was accepted. Later, bodies like International Labour Organisation was set up to formalise the relations and agreements between employers and employees. Many conventions have been made in this regard which have been accepted by almost all countries in the world. Bangladesh is a signatory to these conventions.
   It is a moot point whether public sector agencies dealing with utilities and nationalised commercial banks come under the purview of trade union activities. In the public sector, wages are determined by the government through Wages Board on the basis of cost of living. The wages and allowances once determined are applicable to all and there are reviewed from time to time. There is not much of collective bargaining involved in the process as government is not intent to deprive the workers and employees of their rightful dues. Public sector undertakings are meant to make profit but not through exploitation of labour. Profit motive alone does not guide the decisions of authorities and the welfare of workers and employees are given due attention. This being the case, there is hardly any justification to have trade union activities of the same nature and to the same degree as in the private sector. Instead of trade unions, there can be welfare bodies and these can be consulted by the authorities if there is need for such consultation. But since the interests of public sector employer (the government) and employees are not at loggerheads, full-blooded trade unionism is redundant here. It will not be an infraction of their rights if instead of trade union for collective bargaining, there is welfare bodies to promote their welfare through various social activities. For the determination of wages and allowances, the authorities can be expected to come up with fair packages consistent with the cost of living. This being so, the existence of collective bargaining agents in the public sector appears to be an anomaly. This has given rise to unhealthy atmosphere in the establishments and offices of public sector agencies. It is seen that in the name of trade union activities more than one group exist, each occupying a space in the office. In most cases, the groups are aligned with political parties and work as their agents. Because of this nexus, the authorities in the public sector undertakings find it difficult to rein in the unnecessary activities of the trade unions. They have to give time to listen to not only the collective bargaining agent but also each of the trade union that exist within their premises. The trade unions, particularly the collective bargaining agent (CBA), have become so powerful that they dictate on matters of administration, going beyond their remit. They try to influence appointments, promotion and posting of employees and the pay and allowances given to them. What is worse, they interfere with the process through which services are provided by the public sector utilities (gas, electricity, telephone, water) and by doing this, illegally collect money from customers. What is even more egregious is that they deprive the public exchequer of revenue through underhand dealings with some customers who pay much less than they should on the basis of services received. Sometimes, no official payment is made at all and instead a monthly protection money goes to trade union leaders. This is the main reason why public sector utilities providers have become financially strapped and are losing. The so called leakage in public sector agencies is not due to technical reasons but is entirely man made. The trade union leaders have become parasites and have been bilking money with a rapacity and avarice that have no parallel. In fairness and to be impartial, it should be said that the financial haemorrhage in public sector agencies continues with the connivance of some of the officials who are also the beneficiaries of the regular plundering that goes on. They do it willingly for personal gains and sometimes unwillingly for personal safety. In either case, the power and influence of trade union leaders are demonstrated. It became a public knowledge long ago that public sector agencies that provide services against payment had become hostage in the hands of so called trade union leaders and the CBA. No one dared or cared to address the malaise.
   In view of the special status of public sector agencies and the dismal track record of trade unions operating there, it is now high time to review the situation and make a break with the past. It may not be a breach of the convention signed under ILO protocol to ban trade unions in public sector and instead allow social welfare bodies to take their place. ILO should think through the problem along with the concerned parties (government, trade union representatives) and come up with an institutional arrangement that promotes the interest and welfare of workers and employees without undermining the financial and administrative strength of public sector agencies. The misuse and abuse of trade union rights by the leaders that have been documented in Bangladesh and elsewhere should be enough of a rationale for restructuring what goes on in the name of ‘trade union’ activities in the public sector. This should be seen as part of promoting good governance as the activities of trade unions in public sector agencies hamper their capacity to deliver services in a fair and transparent manner. It hardly needs any overemphasis that public interest is suffering because of the avarice and corruption of trade union leaders in the vital sectors of utility services.
   Ordinary workers and employees, who are the majority, can be expected to go along with any move to reform the trade union activities because they do not participate in the plundering process. It is the few fat cats among them who remain leaders year after year using various tactics, mostly unfair and illegal, who benefit from the exploitation of the public sector. If the wings of these trade union leaders are clipped, the collusion with corrupt officials will also be severed. Politicians then will have no organisation to patronise if trade union is banned and welfare bodies are promoted in public sector agencies. The spectacle of a few leaders living in luxury and abundance at the cost of public interest should create a sense of urgency to rid public sector of corruption of a type that has become routine and endemic. The time to stem the rot is now.

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