Arrests, FIRs, Raids: The Perils Of Fighting For Labour Rights In India’s Industrial Hubs

Syed Affan
 
27 Nov 2024 14 min read  Share

The arrest of labour rights activist Anirudh Rajan in Bengaluru highlights a growing struggle in industrial belts where unionisation can invite termination. Labour organisations like the Manesar General Mazdoor Sangh have been agitating for better wages and permanent employment. Their actions have provoked familiar responses—accusations of Maoist affiliations serve to criminalise union activities, and their demands for adherence to India’s labour laws are seen as a threat to law and order.

A worker addresses a public meeting in September called by workers dismissed after violence at the Maruti plant in Manesar in 2012. A committee of these workers has been demanding minimum wages, permanency for contract workers, and reinstatement of those retrenched in 2012. The meeting was joined by several trade unionists and labour rights activists/ SYED AFFAN

Bengaluru: On 5 September, the anti-terror cell of the Central Crime Branch of Bengaluru police arrested Anirudh Rajan, a labour rights activist and president of the Manesar General Mazdoor Sangh (MGMS), a labour organisation based in Haryana’s Manesar. 

Investigators charged Rajan with being an active member of the banned Communist Party of India (Maoist) and for acting as a courier for the organisation.

Briefing journalists, Mahesh B, an inspector of the anti-terror cell, said police were tipped off about Rajan's presence in Bengaluru by sub-inspector Sulochana of the Upparpet police station. He was arrested at the main Kempegowda bus station as he was about to board a bus.

Investigators said they recovered from Rajan a flash drive containing letterheads of the proscribed CPI (Maiost) and other incriminating documents. They said he was in possession of an Aadhar card in the name of ‘Vikas Ghatke’ who he was allegedly impersonating, had been staying in Bengaluru for five years and was leaving for Chennai to meet his girlfriend when he was arrested.

On 6 September, Rajan was produced before Bengaluru sessions court, which remanded him to police custody for 14 days.

Rajan was charged under section 10 (unlawful association) of the Unlawful Activities Prevention Act (UAPA), 1967; section 66 (unauthorised possession or use of digital means) of the Information Technology Act, 2000; section 35 (unauthorised or illegal possession of Aadhar card to construe identity) of the Aadhaar (Targeted Delivery Of Financial And Other Subsidies, Benefits And Services) Act, 2016; and sections 147 (attempting to wage war), 152 (endangering sovereignty), 336 (forgery) and 340 (forged document or electronic record and using it as genuine) of the Bharatiya Nyaya Sanhita (BNS), 2023, according to S Balan, Rajan’s lawyer.

Bindu Ram, treasurer of the MGMS, alleged that Rajan was falsely implicated. He said Rajan was on his way to meet his family in Chennai. 

“As part of a larger crackdown against the democratic demands of workers that Rajan had been raising, baseless allegations on him are an attempt to criminalise trade unionists,” Bindu Ram told Article 14.

Located in Gurugram, the industrial model township (IMT) of Manesar houses factories of automaker Maruti Suzuki India and its vendor companies, as well as textile and technology companies. 

For several years, issues of labour rights in Manesar have been the subject of struggle and contestation, and workers in the region have been demanding permanent employment, an end to the contractual employment system, higher wages, bonus payments and improved working conditions. 

They have demanded the right to form and join labour unions, along with dissolution of company-controlled unions that they allege offer only a façade of representation..

While police officials in Upparpet police station said all questions regarding Rajan’s arrest should be directed to the crime branch of Bengaluru police, several calls and emails sent to the crime branch yielded no response.

Raids On Labour Rights Activists  

According to advocate Balan, Rajan was produced before the sessions court of Bengaluru on 19 September and remanded to judicial custody until 16 October. 

On 24 October, a team from the National Investigation Agency filed an application in the sessions court in Bengaluru seeking transfer of the case to its jurisdiction, contending that the arrest was  connected with a case they are investigating. 

Anirudh Rajan, president of the Manesar General Mazdoor Sangh, was arrested on charges of being associated with Maoists. Unionists said activists who are outspoken against the oppression of labourers, Dalits and Adivasis are being implicated under serious laws/ SANGEETA GEET

On 12 September, Seema Azad, Uttar Pradesh president of the People's Union for Civil Liberties (PUCL), raised concerns regarding the arrest at a press conference at The Press Club of India, New Delhi. 

 “This has become a common occurrence,” she said. “Activists who are outspoken against the oppression of labourers, Dalits and Adivasis are being implicated under UAPA.”

Other trade unionists and labour rights activists who recently faced police action were Baccha Singh, Nageshwar Mahto, Sanjay Turi and Khanuram Mahto of the Majdoor Sanghatan Samity of Jharkhand, among others associated with the same group, whose homes were raided over alleged Maoist links in May 2023.

According to a statement from the Coordination of Democratic Rights Organisations, (CDRO), a collective of organisations working for civil liberties, the activists and trade union leaders had been demanding the rights of Adivasis and unorganised workers in Jharkhand through peaceful, legal means. 

The raids were “focused towards silencing the peaceful, democratic and lawful protest against the wrong policies and various forms of ongoing atrocities", the statement said.

Several civil society groups spoke out against the raids. 

The Campaign Against State Repression (CASR), based in New Delhi, said the government was suppressing democratic movements “to serve the interests of the corporate”. Their statement, released on 9 September, said, “Wherever the activists are speaking against oppression, the government is trying to suppress their voices by red-tagging them as Maoists and urban naxals.”

The MGMS linked the arrests of Rajan and other activists and trade unionists with ongoing workers’ movements across the country, alleging that the allegations aimed to suppress the democratic demands of the workers. 

In Manesar, A Long Struggle

The MGMS was founded in 2022 by Rajan and his associates, less than a couple of years after they arrived in Manesar during the COVID-19 lockdown of 2020.

In their meetings, the 60-odd workers who are associated with the MGMS read theories by Ambedkar and Marx, union workers said. These workers are mostly  employed in the Maruti plant or plants belonging to Maruti’s vendor companies. 

Women from various unions and labour organisations in Gurugram joined workers affiliated with the Manesar General Mazdoor Sangh, pushing back against police orders to vacate the protest site/ SYED AFFAN

The demands raised by the MGMS in Manesar include the end of contractual work, entitlement to retirement benefits such as provident fund, medical insurance cover under the Employees’ State Insurance Corporation, payment of annual bonuses, payment of double pay as overtime compensation, support for unionisation, and elimination of the four newly enacted labour codes

Under the Industrial Relations Code, 2020, one of the newly enacted labour codes, workers are prohibited from striking without a 60-day notice, making it nearly impossible to call a legal strike.

“The newly enacted labour codes are a blow to workers' collective bargaining power,” said Ram Pal, a member of the MGMS. “They make it impossible for workers to push for unionisation, as strikes are crucial for forcing companies to address and meet workers’ demands.”

Most employers in Manesar provide work on the basis of contracts, terminating workers as soon as they complete their term. Others keep workers, sometimes for years, as casual labourers paid on a weekly or monthly basis, without making them permanent, violating section 25B (continuous service) of the Industrial Disputes Act, 1947.

Under this law, a worker employed for at least one year or 240 days in the preceding 12 months is considered a permanent worker, and is thus entitled to protection against unfair dismissal. It does not say if a worker who fulfils such criteria has to be mandatorily made permanent, enabling companies to keep such workers engaged as casual labourers for years.

‘Contractual Labour Stripped Of RIghts’  

For contractual or casual labourers, this often leads to heightened vulnerability.  

Bhagwan Das, a labourer who was working at RDC Steels And Allied Services Pvt Ltd, an iron and steel manufacturer in Manesar, lost three fingers in an accident with a press machine in September 2023. 

In court, the company denied that he was employed by them, he said. “I had no proof to establish my position,” Bhagwan Das told Article 14. “A contract worker is hired and fired at the company’s will.”

Article 14 sought comment from the company’s managerial staff in Manesar but company representatives declined to comment. 

The Contract Labour (Regulation and Abolition) Act of 1970 prevents exploitation of contract workers, regulates their employment, and ensures they are not denied benefits if they perform the same work as permanent employees. The Equal Remuneration Act of 1976 ensures equal pay for equal work, mandating that contractual workers receive the same wages as permanent employees for similar tasks.

Despite these laws, companies continue to save labour costs by forcing contractual and casual labourers to do the same work as permanent employees, for lower wages.

The movement against theka pratha, or the practice of hiring workers on contract, has been going on for years in Manesar. 

"Contractualisation serves as a means to suppress worker opposition by stripping them of their rights,” said Harish, a labour rights’ activist and president of the Inquilabi Mazdoor Kendra in Gurugram, who uses only his first name. 

By hiring workers through contractors, Harish said, companies evade legal obligations, arguing that these workers are not direct employees. “This arrangement enables companies to exploit workers, subjecting them to coercive practices, mistreatment, and arbitrary termination,” he said.

The Trade Unions Act, 1926 allows any group of workers—including contractual and casual workers—to form a union. In practice, however, companies prevent contractual workers from forming or joining unions, using contractual arrangements to limit workers’ bargaining power.  

In another example, in September 2023, contract labourers were granted membership to the union of BellSonica, an automobile parts manufacturer in Manesar. However, the registration of the BellSonica Auto Component Union was subsequently cancelled by the labour department of Haryana, leading to the termination of its members by the company. 

Following this incident, union members filed a case against the company in the labour court of Gurugram, where the matter is currently pending.

On 17 September 2024, Article 14 contacted the company requesting a comment about the termination. The representative scheduled a call for the next day, but no response was received eventually.

Ajit Singh, the union's general secretary, said they had been in negotiations with the company for more than two years, seeking reinstatement of labourers who they said were unfairly dismissed by the company, and enforcement of labour laws. “The company deliberately took advantage of the cancellation of the union’s registration,” he said. 

Pintu Kumar Yadav, a worker at Bellsonica, told Article 14 that gate passes once issued in the company’s name, which served as legal proof of employment, were now issued under the contractor’s name, enabling the company to deny any formal employment relationship.

Unionisation: A Threat To Companies 

The termination of workers due to attempts by external groups, such as the MGMS or other organisations not primarily associated with a company, to negotiate on their behalf is a common occurrence in Manesar’s companies. 

Sangeeta Geet, a member of the MGMS, said that first establishing a union within a company was essential, for this would “push the company to acknowledge and respond to workers' concerns.” Labour organisations and unions deem unions essential to enable demands to be raised without the risk of arbitrary termination and neglect.

The Rashtriya Shram Sanstha, also known as the V V Giri National Labour Institute (VVGNLI) in Noida, an autonomous body under India's ministry of labour and employment, which focuses on labour research and policy initiatives, has recommended criteria on minimum wages. Based on its recommendations, trade unions have advocated for a minimum wage of Rs 26,000 per month for all workers, a demand MGMS has been raising. 

Members of MGMS said they issued a formal pamphlet demanding also that ESI, PF and bonuses be given to all workers.

Under the ESIC, employees contribute 0.75% of their gross wages while employers contribute 3.25%, for insurance that covers ill health, disability and unemployment benefits to workers earning less than Rs 21,000 per month.

The Employees Provident Fund Organisation enables employees to contribute 12% of their basic monthly salary, matched equally by employers, to create a long-term savings plan and financial security post-retirement, or in emergencies.

The Payment of Bonus Act of 1965 mandates that companies must pay a minimum bonus of 8.33% of a worker’s salary, even if the company incurs losses. The law applies to all establishments with more than 20 employees and aims to ensure fair compensation beyond regular wages.

None of these employment benefits is made available to contractual or casual workers.  

“Companies slow down their production during the festive seasons to avoid paying the bonuses and show that they are at a loss,”  Bindu Ram said.

Companies often bypass providing provident fund, minimum wages or ESI to workers. While the government introduced the Universal Account Number (UAN), linked to Aadhaar, to track service history for provident fund accruals, many companies avoid generating UANs for workers, said unions. In some cases, contractors may create UANs but fail to complete the necessary KYC.

The Case Of The Maruti Workers

In 2012, following violence at Maruti’s plant at Manesar during which a human resources general manager named Awanish Kumar Dev died, the company and police both initially claimed that Maoists had infiltrated the workers. 

The incident, which workers said began when a worker named Jiya Lal was verbally abused by the manager prompting the workers' union to protest, was investigated by agencies including the Haryana police who found no evidence of a Maoist link to the workers’ union. 

The unrest was determined to be the result of local labour disputes and dissatisfaction with working conditions. It emerged during legal proceedings that the violence was linked to labour issues, not an insurgency. 

“The investigations revealed that a long-term scuffle between the union members and the management was used as an opportunity by the company to target the members who were struggling against the illegal contract workers system, trade union rights, and protection of labourers from exploitation,” said B Gautam, the protesting workers’ lawyer. 

The workers alleged that the company used the incident to quell the workers’ demands, calling in bouncers and local goons wearing the company uniform to assault workers.

In 2012, Maruti fired 546 permanent workers and 1,800 non-permanent workers, accusing them of playing a role in orchestrating the violence.

The Haryana government formed a special investigation team to investigate the case, which found that 426 workers were innocent. The court had 117 workers acquitted on 10th May 2017, while 31 workers were found guilty. 

Maruti Suzuki argued in the district court that it had a standing order justifying the termination of workers involved in the 2012 violence. This claim was part of the legal proceedings following the violence, which began in 2012 and continued for several years. The company maintained that the standing orders allowed them to dismiss workers based on their conduct during the incident.

In 2015, a labour court in Gurugram penalised Maruti and ordered it to pay Rs 1 lakh to each labourer. Maruti challenged the 2015 verdict of the labour court in the Punjab & Haryana high court, where the case is still pending.

Workers at Maruti have been demanding fair wages. A representative of Maruti, during a phone call, shared that there have been three negotiations with the union regarding wage increases. However, these increases have only been applied to permanent workers. He said that the workers are made permanent based on the company's requirements.

The first settlement, according to the management, took place in 2012, followed by one in 2015, and the last one in 2018. In the three settlements, the wages were increased by Rs 18,000, Rs 22,000 and Rs 26,000 respectively.

Acquitted, Jobless, Still Struggling 

On 18 September, terminated workers of Maruti decided to stage a protest to demand their reinstatement. This included 426 permanent and more than 1,800 non-permanent workers found innocent by the court.

Unionists and retrenched workers of Maruti speak to press, detailing the hardships they have faced since being terminated in 2012/ SYED AFFAN

“Our 12 years have been wasted. In light of the court's acquittal, it seems only fair that we assert our right to receive appropriate recompense,” said Satish Kumar, from the Mazdoor Sahyog Kendra in Manesar. 

On 17 September, Maruti filed a lawsuit in the labour court in Gurugram. The company demanded a stay order, to not allow the protests near its premises. Satyendra Kumar Goyal, the counsel of Maruti, told the court that “there is a risk that violence may escalate, similar to the one that had taken place in July 2012”. 

Khushi Ram, president of the Maruti Suzuki Mazdoor Sangh, who was terminated in 2012 from his permanent job, argued in the court that they were unjustly dismissed from their jobs, and the courts have acquitted them too.

Khushi Ram, president of the Maruti Suzuki Mazdoor Sangh, addresses a crowd of workers at a public gathering in September. He was among the Maruti workers retrenched in 2012/ SYED AFFAN 

The court issued an order allowing them to hold a protest 500 metres away from Gate No. 2 of Maruti in IMT Manesar. 

More than 300 workers started a foot March from the DC office of Gurugram. When they reached IMT Chowk, near Tehsil Manesar,  the police stopped them, saying that the curfew was imposed in view of the elections.

The workers' dissatisfaction worsened when the police restrained them, even though they had been permitted to hold a non-violent protest. Despite the police pressuring them individually to leave, warning that they would suffer the consequences of the leadership's decision for insisting to protest, the workers declared an indefinite sit-in protest at IMT Chowk, where the demonstration is still going on. 

The workers claim that the companies, including Maruti, disregard rules and regulations, while their actions are questioned and deemed unlawful. In the absence of evidence against them, the delay in justice exacerbates the toll due to the prolonged termination through unjust allegations.

The trade unions describe it as a method of circumventing the possibility of being held accountable for the exploitation committed by the companies and ignoring the demands of the workers.

(Syed Affan is a writer and independent journalist based in New Delhi.)

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