Two-day nation-wide strike: Normal life to suffer; economy to loose 20k crores

19 February, 2013

Be prepared to face problems in availing public services such as banking and postal services as eleven trade unions such as CITU, AITUC, INTUC and BMS have declared a nationwide two-day strike from 20 February to 21 February, after their talks with the central government failed.

The central trade unions say that they have called for the strike against the violation of labor laws in the country and the fuel price hike. The unions have also demanded increase in the salaries pointing out that inflation has been rising at an alarming rate.

As per estimates around 2.5 crore government employees are affiliated to these eleven unions, who will be absent from their duties for the two consecutive days. The strike is set to hit service such as cooking gas supply, income tax, telecom, postal, oil service, and insurance sectors. The nine bank unions have also lent their support to the strike. It is expected that around 10 lakh bank employees in 90,000 branches across the nation will remain away from the work.

India Inc. have expressed its concern over the strike saying that it will affect the economy very dearly. Apex industry body Assocham while sharing some the concerns of the trade unions have appealed them to cancel the proposed strike. Assocham is of the view that the strike will cause a lose of around 15,000 cr to 20,000 crores to the country's economy.

The national economy, battling slowdown can ill-afford this situation. In fact, the strike would aggravate the price situation because of disruption in the supply line of essential commodities,” said Rajkumar Dhoot, President, Assocham, in a statement.

Assocham has estimated the national loss figure based on the daily erosion of about 30-40 per cent to the country’s Gross Domestic Production (GDP) for two days. As per the Advanced estimates of the CSO, the national GDP for the current financial year is projected to be about Rs 95 lakh crore. In other words, it is Rs 26,000 crore per day and Rs 52,000 crore for two days. Of this, the strike would take its toll on at least 30-40 per cent – Rs 15,000 crore-Rs 20, 000 crore.

States such as West Bengal, Kerala, Maharashtra, Gujarat, Tamil Nadu, Delhi, Haryana, Karnataka and parts of Uttar Pradesh are likely to be affected significantly from the strike. Disruption in railways and other public transportation in major cities would hit the movement of the workforce and the cargo operations at the ports.