Hundreds of Special Economic Zones (SEZs) have been approved since the Central Government passed the SEZ Act in the summer of 2005, allowing states ‘flexibility’ to establish their own specific legal provisions and rules of operation. The ground reality about what these SEZs are can be seen from their operation in Andhra Pradesh, the state that pioneered such ‘reform’ even before the central legislation came into being. It can also be seen in Maharashtra, which is only slightly behind Andhra Pradesh (see Box).

SEZs are special territories for big monopoly capitalists to reap maximum profits through unbridled super-exploitation of labour, speculation with land seized from the peasants, and through generous tax concessions extended by the central and state governments. They are territories where armed security men prevent any working class organizer from entering, so that capitalists can freely flout the general laws protecting the rights of workers. Now the state governments of Maharashtra, Haryana, West Bengal and others are following suit in a mad rush and hectic competition to overtake each other in converting thousands of acres of arable land into SEZs.

While affected peasants are militantly resisting the impending loss of their lands, the working class movement is being fed with confusing signals on the question of SEZs. This is mainly the result of the CPI(M) led ‘Left Front’ Government of West Bengal being one of those actively engaged in this ‘reform’. The leaders of CPI(M) are arguing that SEZs are good for industrialization and the working class must support them, provided the peasants who lose their land to SEZs do so “willingly”, as is allegedly happening in West Bengal. The Communist Ghadar Party of India believes that the working class cannot afford to compromise on this question of SEZs. We cannot afford to give up defending and fighting for our class rights in any part of the country – ‘special zone’ or otherwise.

Anti-Worker

Ever since the Soviet Union collapsed and the Indian bourgeoisie launched the program of globalisation of its capital through privatisation and liberalisation, one of the major targets of this offensive has been the rights of workers. The bourgeoisie could not succeeded in introducing the amendments it wants at the all-India level, in the Industrial Disputes Act and Contract Labour Act, due to the opposition of the organised working class and its reflection within Parliament. It is now adopting the tactic of SEZs as a more deceptive way to achieve its goal. It is getting state governments to implement different variants of ‘reforms’ to attack the rights of workers, so as to avoid a confrontation with the central trade unions.

When the Central Government passed the SEZ Bill in the summer of 2005, it had to drop a clause relating to “relaxation of labour laws” because of severe opposition from trade unions and within Parliament. However, the Central Government gave the go ahead for state governments to relax labour laws in their versions of the SEZ Bills. Some state governments had done this prior to the Central Bill itself, such as Naidu’s Andhra Pradesh. Others are doing it subsequently. The SEZ Act of every state permits the state government to formulate relaxation in labour laws as it deems fit, to attract capital. This is the point for all working class activists and organizers to note.

The SEZ Central Act, according to which all the state acts are modeled, creates a central post called Development Commissioner (DC) of the SEZ. This DC takes over the role of the Labour Commissioner as well as other state departments that are support to regulate the conditions and terms of labour. The Labour Department cannot interfere in the SEZ’s without going through the DC. At one stroke, the labour department and its machinery have been made toothless as far as SEZ’s are concerned. Workers in the enterprises operating in SEZ’s are at the mercy of the capitalist owners as well as the DC, whose main role is to make the SEZ attractive for capital.

One of the core ideas that the bourgeoisie is spreading is the notion that capital needs full flexibility in its relations with labour. Workers are being told that they must accept flexible terms, without any security of tenure, without even limits on the length of the working day. Employers must have the option of hiring workers on temporary contracts for any function without exception. They must be able to retrench workers and close down units without having to seek government permission. Regulations stipulating measures for safety and cleanliness at the work place must be removed. So must all restrictions on hiring women in night shifts, or requirements to provide women workers with crèche facilities for young children.

The capitalists want fundamental human rights, including workers’ rights and women’s rights, to be sacrificed at the altar of “competitiveness of Indian capital”, which is a euphemism for the maximum rate of private profit through maximum possible exploitation of labour. What they are demanding is that workers must give up their right to receive the full value of their labour power, so that the capitalist employers can pocket super-profits. “If our workers do not accept super-exploitation, then capital will fly away to China or some other destination”. This is the argument thrown at the working class.

Anti-peasant

The working class must sternly oppose SEZs also because they are being established on arable land seized from peasants. The Indian State, which had earlier claimed to be following a policy of guaranteeing livelihood of peasants and at the same time ensuring security of food supply to the cities, is now blatantly giving up these responsibilities even in name. Agricultural land is being forcibly acquired by the state under the provisions of the colonial Land Acquisition Act, and handed over to Reliance, Tatas and other big monopoly houses. Rights of peasants are being violated, and food security is being threatened by allowing loss of arable lands.

The bourgeoisie would like to reduce the question of land acquisition to merely deciding the amount of compensation. However, there are questions of principle involved, which go far beyond the amount of compensation. Should agricultural land held by small and medium scale peasants be allowed to be transferred into the hands of corporate giants? Will this be in the long-term interest of Indian society or will it go against it?

One half or more of the lands being allotted to the big monopoly houses for SEZs is not even stipulated for productive use. The big capitalists can do anything they please with this part of the land. The ‘right’ of Reliance, Tatas and other monopoly houses to reap maximum profits is presented as the top priority, while the right of peasants is being trampled in the mud.

Anti-national

SEZs, according to the official website, are “delineated duty-free enclaves” and are “deemed foreign territories for the purposes of trade operations, duties and tariffs”. That increasing regions of India are to become “deemed foreign territories” is an extremely dangerous prospect. The people of our country cannot forget the lesson of history – that when the Mughal Emperor Jehangir issued a firman to the East India Company in 1600, granting land that would be deemed a foreign territory under the Company’s control, it started a process that ended up in the colonization of our country.

Conclusion

If workers accept the negation of their hard won rights in ‘special zones’, it will pave the way for further attacks and further loss of rights all over the country. Hence the working class cannot and must not compromise on this question. Those working class parties that advocate compromise with SEZs must be sternly opposed. SEZs are not only anti-worker but also anti-peasant and anti-national. Worker-peasant unity is the key to defeat the anti-social offensive of the bourgeoisie.