Industrial, financial sector strike today

quot;The strike is to protest against the economic policies of the government, against liberalisation and globalisation which is affecting labour and the poor of the country,quot; Tapan Sen, National secretary of the Centre of Indian Trade Unions CITU, said on Wednesday.

quot;We are also against the government8217;s subsidy cuts which affect the poor,quot; Sen added, referring to cuts in food and fertiliser subsidies announced by Finance Minister Yashwant Sinha in his budget for 2000/01 April-March.

Despite strong opposition both within and outside the government, Sinha has refused to roll back the subsidy cuts, saying they will help check the country8217;s burgeoning fiscal deficit. The government hopes to trim the 2000/01 fiscal deficit to 5.1 per cent of gross domestic product from 5.6 per cent in 1999/2000.

Sen said the strike, in which 56 unions will be participating, would hit different sectors of the economy. quot;Coal workers will be on strike tomorrow, all financial services will be affected as both banking and insurance employees are supporting the strike. Besides several public sector undertakings will also be hit,quot; he said.

AIBEA, which represents nearly 600,000 bank employees or about 50 per cent of the industry8217;s workforce, has asked members to strike on Thursday to protest the government8217;s plans to privatise state-run banks.

While Union officials and some bankers expect the strike to affect the working of banks and financial markets, the Reserve Bank of India said its cheque clearing operations would be conducted as usual.

Sen said around 150-200 million people across the country would be involved directly and indirectly in the strike. quot;Besides organised labour and industrial workers, there will also be agricultural workers and peasants protesting tomorrow. We have also mobilised youth and women across the country8230; while they will not be on strike, they will show their support to us through rallies and processions,quot; Sen said.

The Union official warned that further action could be in store. quot;The unions realise that this cannot be a one-stroke affair. We will meet again after the strike and decide on further action,quot; he said.

The Reserve Bank of India RBI said its cheque clearing operations on May 11 will be conducted as usual despite the strike call given by the largest bank employees8217; union to protest against the privatisation of state-run banks.

quot;Clearing operations will continue as usual. Cheques that will come from banks will be cleared,quot; an RBI spokeswoman said. Money market dealers expect very low volumes of transactions as employees of several banks are expected to join the strike. In the foreign exchange market, the settlement date for Thursday8217;s spot deals was shifted to Friday.