19 Aug 2020

A report on India’s state of environment

Farooque Chowdhury

A report said: “Siberia, the proverbial coldest place, […] is experiencing record warm temperatures, melting sea ice, and massive wildfires — changes to the environment that even the scientists most urgently tracking the climate crisis didn’t expect to see for another several decades.” (Bridget Read, “The Arctic is on fire, and we should all be terrified”, The Cut, July 6, 2020)
Bridget Read gives details: “The effects of that increase are myriad and terrifying. Melting snow creates dry vegetation for wildfires, which have reached record levels this summer, sending out giant plumes of smoke and releasing more greenhouse gases than ever before. Some of these are troublingly named ‘zombie fires,’ which don’t actually go out in winter, but burn under the snow and ice only to erupt in the air once again once the snow melts.”
Moreover, Bridget Read writes, people in Siberia are at risk of infrastructure collapse as towns there were built for the cold strain. The melting of Arctic ice contributes to sea level rise and irregular weather patterns around the world. The scariest is the melting of total permafrost, a layer of continuous ice that covers nearly a quarter of the land mass in the Northern Hemisphere, “in which approximately 1,460 billion to 1,600 billion metric tons of organic carbon are trapped. That’s more than twice the amount of carbon currently in the atmosphere.”
Bridget Read reminds: “If, with previously stable permafrost subject to never-before-seen heat, it is released, we could reach a tipping point beyond human intervention.”

The dangerous development is not limited only in the far region – Siberia. Similar dangerous developments, in other forms, are in almost all over today’s world. Assam, an Indian state, far south from Siberia, regularly experiences flood – an annual environmental calamity. Māti, (land) a short documentary by Wenceslaus Mendes and Anupam Chakravarty, tells about flood in Assam and its effects on Kaziranga, a national park and home to several ancient communities dependent on river in the area. The people there suffer first. (Wenceslaus Mendes and Anupam Chakravarty, “Flood in Assam: Watch the documentary Māti”, Countercurrents, July 5, 2020)
The film Māti” tells about irrational intervention in environment negatively affecting the people and other lives in the area. It’s a story of devouring of vast tracts of agricultural land and hills, altering of topography that hurts fauna, business inconsiderate to ecology, bureaucracy and lining of pockets, unemployment, and, consequently, traditional knowledge and life suffer.
To the west in the same country – India – grass and greenery are facing challenge from cement-concrete. Vidyadhar Date, a senior journalist and author of a book on environment and public transport writes: “Municipal authorities mercilessly chopping grass in parks in Mumbai and elsewhere are doing a distinct disservice to the city, to Nature and to people […]” (“We need grass, greenery, not cement concrete in our parks”, Countercurrents, June 27, 2020)
Vidyadhar Date narrates own experience: “I see sadists mercilessly mow grass in some of our public parks reducing them into deserts. [….] It is also shocking to find that some of our parks are being dangerously concretized partly because the cement and construction lobby is so strong.” Vidyadhar Date questions: “Can anything be more outrageous than the proposal to convert the wonderful wetlands in Navi Mumbai into a golf course? The wetlands are a wonderful site for migratory birds. Do the authorities even know the basic fact that golf courses are extremely unfriendly to the environment?”
Similar stories in scores are strewn around in the country, and in other countries. The India-story is well documented in the Center for Science and Environment’s (CSE) State of India’s Environment in Figures (SIEF/SOE2020).
Reports of world-renowned CSE, founded by environment-crusader Anil Agarwal, and now led by Sunita Narayan, are always praiseworthy as these present information gathered from grassroots level and checked/reviewed by experts. The reports help grasp the state of the country’s environment. These are very helpful for policy planners, researchers, students, and environment and political activists. Even, communities, peasant and labor organizations and unions can draw its help if these centers of life and livelihood like to make their members aware of the environment and ecology around them, and take active role in preserving ecology at respective levels. And, there shouldn’t be any doubt today that activity for ecology and environment, whether one likes it or not, may turn into political activity that can move from mobilization of people to participation in democratic struggle. The reports the CSE produces help with data, information, experience, and analysis.
The areas covered by the SIEF/SOE2020, fifth “In Figures” series, are the following:
“Global Economic Risks”, “Sustainable Development Goals”, “SDG Preparedness of states”, “Environmental Crimes”, “Good Governance Rankings”, and state of states of India, pandemic, migration, agriculture, land, economy, water, forests, air, climate, energy, biodiversity and wildlife, habitat, waste including municipal waste, eco-tourism. In the cases of environment, ecology and life, areas overlap. As for example, agriculture is connected to land, water, biodiversity, energy, climate, economy, etc., economy is connected to habitat, other than agriculture, etc.; and economy covers industry, import, export, trade, tariff, technology and science; and all these are connected to politics and political power, where the question of class power and class equation is present.
All these areas impact the commoners, the poor, the working class, the poor peasants, the labor. Middle class, professionals, students also are affected by the issues. This means, the people are affected by changes, positively or negatively, in environment and ecology. So, the report is a good source book for assessing condition of life of the commoners in India; and assessment of condition of life of the commoners helps raise political questions including the question of democracy. The report, thus, is of utility to people than slogan mongering and “business” without meaningful activity.
A closer look into the report shows its lively connection to public life. The SIEF/SOE2020 talks in the following way:
  • Extreme weather events have remained the top economic risk in the past four years.
  • India faces major challenges in nine of the 17 SDGs.
  • Bihar and Jharkhand are least prepared to meet the SDGs by 2030.
  • Courts need to dispose of 132 cases a day to clear the backlog of over 48,000 cases in a year.
  • 15 state governments score below national average on the rankings.
  • India is relaxing lockdown despite rising daily cases.
  • The great meltdown.
  • Containment measures would reduce global GDP by 2 per cent per month.
  • Job crash.
  • Almost 1.6 billion informal economy workers are significantly impacted.
  • Food insecurity.
  • Covid-19 can double the global food insecure population by end of 2020.
  • A poorer world.
  • India to see the most new poor due to the outbreak.
  • Migration for employment.
  • While men account for bulk of main workers, women have a higher share in marginal workers.
  • New migrants.
  • There has been a 23 per cent increase in the population that has migrated for work in the decade before the 2001 and 2011 Census.
  • Internal displacement.
  • India saw over 5 million new displacements due to disasters in 2019.
  • Shramik
  • 5 million migrants have used the train to return home in May.
  • Farmers’ suicides in 10 states/UTs [Union Territories] record an increase between 2017 and 2018.
  • Over 67 per cent families dependent on marine fisheries are under poverty.
  • Uttar Pradesh sees a 118 per cent increase in rural stray cattle population.
  • While India’s wasteland has reduced by 1.5 per cent, it has increased in 11 states and UTs.
  • One in every 5 working urban population is without a job.
  • 35 million people have demanded work in May.
  • Of the 21 river basins, five are absolute water scarce.
  • Groundwater dependency has increased in 23 states and UTs between 2013 and 2017.
  • More than 57 per cent of India’s groundwater is contaminated with nitrate, fluoride and arsenic.
  • India recorded 118 per cent increase in water conflicts between 2000-09 and 2010-19.
  • Forest cover has shrunk in 34 per cent districts.
  • 13 states have recorded a decrease in bamboo bearing area.
  • Just 53 of the 122 non-attainment cities conduct real-time air quality monitoring.
  • India recorded its warmest ever monsoon season in 2019.
  • 19 major extreme weather events claimed 1,357 lives in 2019.
  • 69 per cent increase in the number of heat wave days between 2013 and 2019.
  • 2018 had an extremely cold winter with the most casualty in the past seven years.
  • India’s climate commitments are much more ambitious than China, US and most other countries.
  • There have been four bailouts since 2001 and the last three happened in just eight years.
  • Of the nearly 50,000 known plant species in India, 23 per cent are endemic to the region.
  • 305 fish species are threatened in India.
  • Tiger population has increased by 747 between 2014 and 2018, but their net area has shrunk by 179 km2.
  • There has been a 97 per cent increase in nature-based tourists in India between 2008-09 and 2014-15.
  • 80 per cent of rural households have no arrangements for garbage collection.
  • Piped water coverage in rural households of four states and UTs recorded a dip between 2012 and 2018.
  • 5 states account for nearly 50 per cent of the India’s municipal waste burden.
  • 5 tonnes per day of biomedical waste goes untreated in the country.
  • 5 states are responsible for 5.5 million tonnes per annum waste generation.

The CSE reminds its readers: “The incisive factsheets covered in the series over the years have made headlines, and some were even used for raising related questions in the Parliament. This has been the rationale behind this unique ‘In Figures’ Annual series: to let the data ask the right questions. The need for data/questions has become even more pertinent today.”
This fact – let the data ask – is applicable in all countries.
The report is a mirror of power-equation in public life as it shows who pollutes and who pays. Polluter is always the powerful while the public always make payment. To pollute, to deface environment, to demolish ecology, it requires power in many forms – money-power, muscle-power, political-power – and source of these powers is the same: money-power. Pilferage is also a way of destroying environment. This act – pilferage – is an action-pious to a section of society; and the action also requires power.
The CSE-report is also a tale of power indifferent to public interest, and to posterity. This type of reports helps create awareness among public, helps create struggle for accountability and transparency. For many societies, this type of report is essential if the societies like to move along the path of its citizens’ survival and of democracy, because such reports make available required facts, and without facts, many fiery utterances, now in vogue in places, turn vague, useless.

Lure of Hindutva fascism in India

Bhabani Shankar Nayak

The feudal character of Indian society and Brahmanical Hindu religious order based on caste has become a fertile ground for the growth of Hindutva fascism in India. The seed of Hindutva fascism was germinated with the establishment of the Rashtriya Swayamsevak Sangh (RSS), the “National Volunteers Organisation” in 1925 by Keshav Baliram Hedgewar. Mr Hedgewar’s mentor Dr B.S. Moonje was fascinated and inspired by European Nazism and fascist ideology, which has become the organising principle of the RSS and its affiliated organisations. He has replicated it by establishing the Bhonsala Military School in India with an objective of militarising the minds of Hindu majority. The diversity within Hindu religion and diverse linguistic, cultural and social practices were the biggest challenges for Moonje and Hedgewar to replicate Hindutva fascism during its inception. These challenges were addressed by Madhav Sadashiv Golwalkar, who has shaped the ideological foundation of Hindutva fascism in India in his two books; ‘We, or, Our Nationhood Defined’ and ‘Bunch of Thoughts’.
According to Golwalkar, it is important to transform India into a racially pure Hindu nation with uniform Hindu culture and language. The religious domination and cultural assimilation were two strategies adopted and prescribed by Golwalkar to achieve the objective of establishing India as a Hindu nation. Mr Golwalkar was also an adherent follower of European Nazism and fascism. His ultimate vision was to organise and produce ideally militarised Hindu manhood with a corporate personality. He found that caste is the only common organising principle among Hindus in India. Therefore, Golwalkar was a vehement supporter of hierarchical and discriminatory caste based Hindu social order in the name of preserving unity in Indian society. Shyama Prasad Mukherjee and Deendayal Upadhyaya have played a major role in mainstreaming Hindutva politics in India. The ideals of Moonje, Hedgewar, Golwalkar, Shyama Prasad Mukherjee and Deendayal Upadhyaya continue to inspire Hindutva politics led by RSS in India. The idea of one nation-one language, one religion (Hindi, Hindu and Hindustan) by the BJP today derives its philosophical and political outlook from these fascist ideologues.
In the name of establishing Hindu nation, the Hindutva fascists forces were allies of British colonialism and opposed Indian freedom struggle. The Hindutva fascists were the original anti nationals of India. These forces were politically marginalised and did not appeal to Indian masses. The horrors of partition of India and its memories gave Hindutva fascists some breathing space in India. After killing Mahatma Gandhi, these forces were further marginalised in Indian politics and society. The rise of coalition politics and joint trade union movements based on concerns for working classes helped Hindutva politics to rise again within mainstream political culture in India. The Brahmanical caste mobilisation in northern India for the Ram Janmabhoomi movement and the demolition of Babri Masjid has helped BJP to get electoral dividends in both regional and national politics in India. The marginalisation of the masses by the neoliberal economic policies pursued by the Congress Party has created mass discontent in India; which gave the much-needed political space to the BJP and RSS to pursue their Hindutva fascist politics led by Mr Narendra Modi.
The bourgeois Indian media and reactionary regional politics as helped Modi to control the national narrative in the name of national, economic and cultural revival of India. Woe betide anything that stands in the way of Modi led BJP, be it the youths, students, professors, lawyers, social and political activists and media; all are branded and demonised as anti-nationals. The Hindutva fascists (who were opposed to Indian freedom struggle) are distributing the certificates of patriotism but hiding their dubious educational degree certificates, much like their role in Indian freedom struggle.
India is ruled today by the so called ‘strong man’ Mr Narendra Modi with a 56-inch chest, who believed to make India great again. The border disputes with neighbours, internal social strife, economic crisis and the global health crisis led by coronavirus pandemic is giving escaping route to the Hindu fascists in one hand and strengthening their political power on the other.  The rise of Islamophobia, anti-Muslim riots and lynching, killing of rationalists, imprisoning human rights activists and political opposition, privatisation of national resources and diverting public money for temple construction are some of the achievements of the Modi led BJP government. The vulnerable social groups, religious minorities and working people are living in poverty and bear the brunt of Hindutva fascism in India. The constitutional, liberal and secular democracy and independent judiciary is ruined to a point of no return. But the Hindutva fascists pretend as if everything is normal in India. The disquiet transition in India today is moving into the absolute control of Hindutva fascism.
The is growth of mass unemployment and mass alienation in India.  The detached masses look for messiah in so called strong men, who exploit them and marginalise them every day with the help of state power. Such a transition of Indian society is a breeding ground for Hindutva fascism. The growing inequality is no accident in India. It is a direct product of Hindutva political economy of deceptive development promise of Modi led BJP. The Hindutva fascists take about the welfare of Hindus but in reality, they protect the interests of capitalist classes in India. Any secular political opposition to such a project is branded as traitors and parasites in the name of shared feelings of Hindutva culture of victimhood, bigoted patriotism, false pride, and fake nationalism based on mindless but shrewd propaganda.
The assault on reason, liberal, secular and constitutional democracy in India is a part of the Hindutva agenda. The democratic institutions and constitutional practices are opposed to the fascist politics of Hindutva. So, the anti-democratic strategies are helpful for Hindutva politics to consolidate power and legitimise its authoritarianism via electoral means of majoritarianism with a hope that Modi can solve all problems. The reality reveals the fairy tale of Hindutva politics in which the BJP rules and others are either silent or in prison. Hindutva fascist like their European brethren do not like dissent and democracy. They detest rule of law, transparency and accountability. These characters are visible in the political praxis of Mr Narendra Modi shaped by the RSS and BJP. The dismantling of constitutional democracy is a priority of Hindutva fascists in India.
The social media and communication technologies are helping the Hindutva fascists to spread their bigoted fake news and scandalous stories on political opponents to discredit them in public eye. The online media platforms are also helping the Modi government to hide all its failures from foreign policy, national security to economic development. The inclusive political and social struggles are imperative for Indian democracy to survive and work for the people by defeating Hindutva fascism. The defeat of Hindutva fascism and its ideological foundation is the only way to revive the present and future of India and Indian from this ruinous path. The peace and prosperity in India depend on the defeat of Hindutva fascism.

The Adani Group’s Penchant for Controversial Projects Seem Unstoppable

Soumik Dutta

Reports on the Adani group’s projects worldwide show massive illegalities, ecological and environmental destruction, human rights violation, tax evasion, money laundering and corruption.  An ongoing coal based thermal power project in India which will supply its entire power to Bangladesh and import coal from Adani’s Carmichael mines in Australia, points to crony capitalism, exploitation, corruption and violation of laws.

Who are Adani?

The Gujarat based Adani conglomerate is India’s biggest port operator and the largest private producer of electricity both thermal and renewable. The group also has substantial interests in coal mining, civil construction, logistics, international trade, education, real estate, edible oils and food storage.
According to Forbes magazine, the Ahmadabad-based Gautam Adani had a net worth of US$8 billion (AUD$10 billion) as on 30 August 2017.

The rise of Adani and ties with Modi

Gautam Adani, after a successful stint as a diamond trader in Mumbai, moved to Gujarat’s capital Ahmadabad in 1981 to help start a cousin’s firm to trade in poly-vinyl chloride (PVC).
He set up a commodities trading venture in 1988 under Adani Exports, and by the mid-1990s, Adani’s business successes starting attracting attention.
The Modi-Adani friendship can be traced back to 2002, the year Gujarat witnessed gruesome communal riots between Hindus and Muslims. After the Confederation of Indian Industry (CII), criticized Modi the then chief minister, a group of local businessmen led by Adani, established the Resurgent Group of Gujarat (RGG) and threatened to leave the CII, supporting Modi.
Adani pledged a huge financial support for the first Vibrant Gujarat summit (that took place in September-October 2003).
During chief minister Modi, large tracts of land were given to Adani group at throwaway prices to set up India’s biggest private port at Mundra on the west coast in violation of environmental norms.
The area has one of India’s biggest special economic zones (SEZs) which are supported by the country’s largest private railway network. The land in the area was re-sold and/or leased by the Adani group to various other companies, including public sector undertakings like the Indian Oil Corporation (IOC), the Oil and Natural Gas Corporation (ONGC) at high rates.
The group was also exempt from payment of all stamp duties for the thousands of acres of land it acquired for the SEZ.
During his election campaigning, the then Prime Ministerial candidate for the Bharatiya Janata Party (BJP), Narendra Modi flew across India in Gautam Adani’s private jet. The BJP has subsequently stated that it rented out the private flights from Adani.
Prime Minister Narendra Modi with Gautam Adani. Image Courtesy Press Trust of India(PTI)

Genesis of the Godda thermal power project

A coal-based 1600 MW (1.6 GW) thermal power project is being built in one of India’s most coal rich states, with indigenous people comprising the majority population in the proposed project site.
Adani’s Godda plant however, depends entirely on imported coal from a mine the project proponent owns some 10,000 km away in Australia.
The Australian Carmichael mine has just about started construction work, just like the 1600 MW Godda thermal power plant , both having faced major delays due to numerous legal and financial hurdles.
Most interestingly, the entire power produced at the Godda thermal power plant is to be exported to Bangladesh.
So why does Godda need a highly polluting and environmentally damaging thermal power plant? What does the state of Jharkhand or its indigenous people whose fertile multi-crop land has been illegally and forcibly acquired, gain out of this deal?
Also, how does Bangladesh gain by importing this highly expensive power from Adani’s Godda plant?
How is the project a” public purpose venture with zero displacement” of indigenous people?
And, why is Australia going all out to promote Adani’s mega coal mine and the Abbot Point port at the Galilee valley risking the Great Barrier Reef?

The Godda project

The Bharatiya Janata Party (BJP) state government of Jharkhand state had signed a memorandum of understanding (MoU) with the Adani Group for the 1.6 GW coal-based thermal power project, in 2016.
This was followed by forceful acquisition of land, severe violation of processes set by the Land Acquisition Rehabilitation & Resettlement (LARR)Act 2013, bulldozing standing crops of farmers, lying to villagers about the potential benefits of selling their land to Adani, and intimidating the  affected people with police brutalities , and lawsuits in the last two years.
According to the social impact assessment (SIA) report of the company, 1,364 acres, spread across 10 villages of two blocks of Godda, was to be acquired for the thermal power plant, which is supposed to produce 1,600 MW of electricity.
Proposed Godda thermal power plant
The Jharkhand government, as well as Adani claim that the project is a “public-purpose project with ‘zero’ displacement.
They add that the project will lead to generation of employment and economic development”.
Even though Adani Power Limited is required to provide at least 25% of total power to Jharkhand as per the states power policy, Adani which promised to provide it from” some other source”, does not clearly mention the source.
In a blatant display of crony capitalism, the Jharkhand state BJP government changed its energy policy in October 2016. Instead, of getting its 25% share of power it agreed to buy power from Adani at a higher rate costing the exchequer more than Rs 7,000 crore in the next 25 years.

Icing on Adani’s cake

To add insult to injury, the 1,600 MW megawatt project was approved by the Modi government, the status of a Special Economic Zone (SEZ) just before India’s 2018 national elections. It is India’s first power SEZ, geared to fully export electricity.
This was only possible due to a change made by the Indian government to existing regulations, and it makes Adani exempt from several levies, including on rail access and imported coal and equipment.
Significantly, with the declaration of the project as SEZ, the state was no longer entitled to the electricity generated from the plant.
The project has also been approved for a roughly $US700 million loan from the Power Finance Company (PFC), an Indian state-owned lender that funds power stations; and for another $US700 million loan from the Rural Electrification Corporation (REC), a state-owned company designed to help electrify Indian villages.
Huge contributions from Indian taxpayers (Bangladeshi’s and Australians too) are being blatantly granted to Adani group to produce electricity from imported coal (Carmichael mines Australia), in India’s most coal rich state, and sell the same at exorbitant rates to Bangladesh!
Adani’s proposed 1.6GW power station in Godda requires importing an estimated 5 to 6 million tonnes of coal from Adani’s Carmichael mine in Australia each year. This arrangement is despite of India’s own policy of phasing out imported coal.

The ambitious plot

On July 2015, a joint declaration was signed by Bangladesh and India during Indian Prime Minister Narendra Modi’s visit to Bangladesh.
In August 2016, Adani Power signed an MoU with Bangladesh Power Development Board (BPDB) to set up a 1600 (2×800) MW thermal power plant on build-own-operate (BOO) basis in Godda district of Jharkhand, India. Adani will export the entire power generated from the power project to Bangladesh.

Environmental abuse

Adani’s Godda coal plant will draw 36 billion litres of water every year from the Ganges River, putting endangered species such as the Gangetic dolphin at risk, as well as the  fish population.
Adani have already started using huge amounts of water from the surrounding villages in Godda with local farmers complaining that their wells are running dry and crops are failing due to ground water depletion.
The project received environmental approval in 2017, but there had been little progress on construction until Chinese company Sepco Three began construction in September 2019.
Adani wants the power station to be operational from 2022, roughly coinciding with its planned export of coal from the Carmichael mine in Australia.
Adani has also received an environmental clearance (EC) to build a 100km pipeline to extract water from the Ganges River at Sahibgunj, to use in the Godda power station. This approval is being challenged at the National Green Tribunal (NGT), New Delhi.

Blatant violation and manipulation of existing land laws

The 1949 Santal Parganas Tenancy (SPT) Act was intended to prevent Adivasi(indigenous) dispossession by placing several restrictions on the transfer of land from farmers in the erstwhile Santal Parganas district, now divided into six districts, including Godda.
There is no provision in the SPT Act for the government to transfer land to a company. The SPT Act gives powers over the village’s common property (gair mazruwa) lands, such as grazing grounds to village heads, not the government.
In blatant violation, such common lands too have been acquired by the administration and given to the Adani group on 30-year leases, while titles of farmers’ land are being transferred to the company.
According to rules for the land acquisition rehabilitation and resettlement act( LARR Act) 2013, reiterated in the Jharkhand government’s own LARR rules issued in 2015, the landowner’s declaration giving or denying consent must be counter-signed by a district official.
The rules also state that a copy of this declaration, with the attached terms and conditions, must be handed to the affected landowner. None of the farmers who lost their land to Adani have these declarations. A group of sixteen resolute villagers have challenged the illegal land grabbing at the Jharkhand High Court.

Adani’s gain, Bangladesh’s pain:

Analysts in the field of energy and finance have said that the Adani’s complicated plan to ship Australian coal 10,000 km to an Indian power plant can be made possible only by passing on the costs to Bangladeshi energy consumers.
The Bangladeshi electricity grid is already suffering from over-capacity, with 44% of its power capacity lying idle, and over a billion dollars currently being paid to energy companies each year for power that is not used.
Tim Buckley, Director of Energy Finance Studies of the US-based think tank Institute for Energy Economics and Financial Analysis (IEEFA), said, “Adani power is the largest producer of renewable energy in India, which is now the cheapest among all other power generating sources of the country. If Bangladesh really needs electricity from Adani, they should ask for cheap renewable energy instead of high cost thermal power from Godda. “
Bangladeshi researcher Sajjad Hossain Tuhin said, “Bangladesh will be purchasing electricity from Adani Godda Power plant at the rate of 7.53 BDT per unit, whereas solar energy price in India is only 2.74 BDT”.
As a coincidence, recently, Bangladesh’s minister of power, energy and mineral resources, Nasrul Hamid, surprised energy watchers recently when he said the country is planning to ‘review’ all but three of 29 planned coal plants.
However, on paper the Bangladesh government remains cautious about renewable expansion, with their 2016 forecast signalling a negligible role for renewable energy till 2041.

India’s unclear stand on climate change:

At the Paris climate conference, Modi told the world that India would enlarge its forests to absorb 2.5 billion tonnes of carbon dioxide. Returning home, he directed the environment ministry (MOEF&CC) to loosen its regulations. India did not cap its emission, but ramped up renewable, while coal based thermal power still sustains its base load.
Significantly, coal mines were exempted from public hearings, irrigation projects proceeded without the proper clearances and the right of tribal village councils to oppose an industrial project was weakened.

Australian controversy

The Adani website states “work is well underway on the Carmichael Mine site. As of early 2020, more than $1 billion in contracts had been signed for the construction of the Carmichael Mine and Rail project. We are generating up to 1,500 direct jobs at the peak of construction and supporting thousands of indirect jobs”.
The project has been mired in controversies, with disputes over its claimed economic benefits, financial viability and environmental damage it will cause to the Great Barrier Reef and the ground water dependent ecosystem of the Galilee basin.
Two bleaching events in the last two years have already killed as much 50% of the Great Barrier Reef. In addition, Adani group’s project involves dredging of 1.1 million cubic metres of sea-bed near the Great Barrier Reef which raises risks of damage to the reef.

Legal challenges

In response to a legal challenge by the Australian Conservation Foundation, the federal government conceded in the federal court that it failed to properly consider public submissions in passing judgment on Adani’s North Galilee Water Scheme. In 2016 the Federal Court of Australia had dismissed a challenge by Australian Conservation Foundation.
Earlier, Adani Group had pleaded guilty to providing false or misleading information to the environmental regulatory authority in Queensland State in Australia. The local court fined the Adani Group AUD 20,000 (Rs 9.63 lakh).
Another challenge to the $21 billion (approximately Rs 1.4 lakh crore) mining project by the Wangan and Jagalingou indigenous community was dismissed.
Even Adani’s Mining Chief Executive Jeyakumar Janakaraj had faced scrutiny for failing to disclose that a company he ran in Africa was guilty of serious environmental breaches, despite being asked to do so in a letter from the Federal Environment Department.

Financial viability questionable

Adani’s Thermal Coal Mine in Queensland will never stand on its own two feet, Tim Buckley of IEEFA has stated in a report. Adani Mining Pty Ltd has current liabilities of more than $1.8bn versus current assets of less than $30m as of 31 March 2019.
In IEEFA’s view, the Adani Carmichael thermal coal mine project would not open nor survive without billions of dollars in subsidies.
In 2015, South Korean conglomerate LG announced they would not proceed with a contract to buy coal from the mine.  Samsung Securities recent decision to pull support for the project is just the latest in several contracts that have been withdrawn.
Insurance company Allianz “no longer offers single-site/stand-alone insurance coverage related to the construction and/or operation of lignite/coal-fired power plants and mines where lignite/coal is extracted”, the firm announced in April 2020.
Global banks including Goldman Sachs, HSBC, JPMorgan Chase and more have ruled out financing coal projects with specific references to Adani Mining’s activities.

Investigations in India on corruption, money laundering and tax evasion

The Supreme Court stayed a Bombay high court order of October 2019, which had quashed the Letters Rogatory (LRs) sent by the Directorate of Revenue Intelligence (DRI) to several countries in connection with a case of alleged overvaluation of Indonesian coal imports involving some Adani Group companies.
A company in the Adani group had moved a Singapore court in an attempt to block the release of information via the Letter Rogatory route, the Indian Express reported in August 2017.
On 22 August 2017, the adjudicating authority in the Directorate of Revenue Intelligence (DRI) absolved two Adani group companies, Adani Power Maharashtra Limited (APML) and Adani Power Rajasthan Limited (APRL), of all charges laid out in a show cause notice issued by the DRI in May 2017.
Within a year of registering a case against unnamed Adani group officials and public sector bank officials relating to the equipment over-invoicing cases, the CBI had closed its investigation into the Adani group companies, on what were arguably rather flimsy grounds of jurisdiction.
It was after these events that a PIL was filed in the Delhi High Court by Common Cause and the Centre for Public Interest Litigation , two  New Delhi based non-government organizations (NGOs) seeking the formation of a special investigation team( SIT) to look into all the allegations of over-invoicing in the power sector, both of coal and of equipment imports.
In another instance, the CBI has registered a case of cheating and corruption against Adani Enterprises and a former chairman and an ex-managing director of multi-state cooperative NCCF for alleged irregularities in selecting a company for a tender to ferry coal from ports to power stations in Andhra Pradesh.

TamilNet stokes ethnic divisions as Sri Lankan regime plans dictatorship

Kumaran Ira

The landslide victory of Sri Lankan President Gotabhaya Rajapakse’s Sri Lanka Podujana Peramuna (SLPP) has exposed the bankruptcy of Tamil nationalism. It has not only suffered an electoral defeat. It has neither a perspective nor the intention of opposing the Rajapakse cabal’s plans to set up a military-backed presidential dictatorship amid the COVID-19 pandemic.
TamilNet, an English-language web site writing to the international Tamil diaspora, responded with an article titled “2020 election resembles 1970 polls that formed genocidal Sri Lanka.” Amid growing strikes and struggles mobilizing Sinhala, Tamil and Muslim workers together in Sri Lanka, it stirs up communalism, promoting the Tamil National Alliance’s (TNA) political periphery and support for US war threats against China in the Indian Ocean region.
TamilNet points to the collapse of the two main bourgeois parties, the Sri Lanka Freedom Party (SLFP) and the United National Party (UNP), which ruled Sri Lanka since independence and waged the 1983-2009 anti-Tamil civil war. Now, it states, “the SLFP is replaced by the SLPP, ten years after genocidal annihilation of the armed movement and the de-facto state of Tamil Eelam. The SLPP is poised to enact a constitutional discourse emboldening the unitary state towards the final phase of heritage and structural genocide in the occupied country of Eelam Tamils.”
The Rajapakse regime is a threat to workers of all ethnic and religious backgrounds in Sri Lanka. Moreover, a long and bitter history shows that during great political crises, the Sri Lankan ruling class inevitably turns to inciting violent ethno-sectarian conflict. But TamilNet, which speaks for Tamil bourgeois forces complicit in incitement of communal tensions, has nothing to offer to combat Rajapakse’s accelerating drive towards dictatorship.
Speaking nostalgically about the growth of Tamil nationalism in Sri Lanka during the 1970s, it promotes the turn to separatism and armed struggle before the civil war: “Back then, the younger generation realised the reality that even God couldn’t help Tamils. The only way left was resistance, and that enabled them to challenge the genocidal state for three decades effectively.”
Today, TamilNet holds up TNA split-offs like the Tamil National People’s Front (TNPF) and Tamil National People’s Alliance (TMTK) as the alternative to the TNA’s collapse. It writes, “Eelam Tamil voters have placed an enormous responsibility on the shoulders of Gajendrakumar Ponnambalam of the TNPF and Justice CV Wigneswaran of the TMTK.” TamilNet tasks them with “course-correcting” what TamilNet calls the “Quisling politics of R. Sampanthan and M.A. Sumanthiran,” who lead the TNA.
TamilNet’s claim that Sri Lankan Tamils are flocking around the TNPF and TMTK is a fraud. Neither group won broad support. While the TNA collapsed from 16 to 10 parliamentary seats, they received 67,766 votes (0.58 percent, 2 seats) and 51,301 votes (0.44 percent, 1 seat) respectively. In the North and East of Sri Lanka, Tamil voters also gave support to the SLFP (49,373 votes in the Jaffna district) and the Eelam People’s Democratic Party (EPDP, 61,464 votes) a paramilitary group that works closely with the Rajapakse regime.
If TamilNet feels compelled to compare the TNA leadership to Vidkun Quisling, the Nazi-collaborationist dictator of German-occupied Norway shot for treason after World War II, this is because the TNA is deeply discredited among workers and youth. This is why some voters, in disgust, even cast ballots for the SLFP and the EPDP, which are widely despised in the Tamil community.
The TNA backed the US-led regime change campaign to oust Mahinda Rajapakse in 2015 and install Maithripala Sirisena as president in 2015 to cut Rajapakse’s economic links to China. It promised that Sirisena would deliver “good governance,” free Tamil political prisoners held since the end of the war, and end military occupation of land in northern Sri Lanka. All these promises proved to be lies.
The Tamil nationalists supported Sirisena’s drastic austerity IMF policies and anti-democratic measures, which provoked strikes and protests of workers and youth across Sri Lanka. While they were rewarded with state posts, including the position of leaders of the official opposition, Tamil political prisoners kept rotting in jail and the army continued occupying the land. The TNA and the TNPF went so far as to support the Sirisena regime by quietly flying their own members out of the country, once it emerged the regime had tortured them.
The TNPF and the TMTK are TNA split-offs who broke with the TNA to avoid being discredited by its record, but who similarly orient to the US war drive against China. The TNPF, which backed the 2015 regime change operation, argues this position in its 2020 election manifesto.
The manifesto asserts, “Sri Lanka is an important point in the political competition in the Indian Ocean. This geopolitical rivalry has had many impacts on various stages of the journey of our race towards emancipation. … This continuing geopolitical rivalry is also providing opportunities for the Tamil people to achieve their goals. The Tamil National People's Front continues its journey with the logically firm belief that our goal can be achieved by approaching these opportunities in the interest of the Tamil people, with dedication and creativity.”
TamilNet’s empty references to the 1970s are simply political cover for this same pro-imperialist orientation. It cynically calls on Tamil workers in Sri Lanka and worldwide to adopt the political strategy and orientation of those it has just denounced as Quislings.
Asserting that “only Geopolitics can help Tamils,” TamilNet writes: “The key to future success lies in realising that only a new form of resistance with an international dimension could effectively challenge the genocidal state and the geopolitical abettors of ‘development’ crimes. The Tamil diaspora and global Tamils also have a historical duty in this regard.”
TamilNet’s meaning is more or less clear. They do not have an organization to wage war against the Sri Lankan state since the crushing of the Liberation Tigers of Tamil Eelam (LTTE) at the end of the civil war, and they support another war instead. They are asking the Tamil diaspora to give political and financial support to the TNPF and TMTK and to help promote these parties in Washington and the European capitals and so strengthen the Tamil nationalist parties’ positions in Colombo. This is bankrupt.
US and European imperialism wage politically criminal wars across the world, killing untold thousands of people, while carrying out deep attacks against the working class at home. Tamils have a long, bitter experience of the bankruptcy of appeals to them to defend human rights. It was the decision of Washington and the European powers to stand aside and give Colombo the green light for a final assault in 2009, at the end of the war, that led to the massacre of tens of thousands of disarmed Tamil fighters and civilians at Mullaitivu.
The way forward against the danger of military-police dictatorship in Sri Lanka and internationally is the turn to the working class. TamilNet whips up communalism to divide workers along ethnic lines, paving the way for the SLPP regime to imposing sweeping austerity and a militarized presidential dictatorship. The Socialist Equality Party, which has an unbroken record of defending Tamils’ democratic rights, fights to unify the working class across ethnic lines.
The alternative to the bloody record of the Sri Lankan unitary state, established under the imperialist-brokered settlement at the end of direct British rule over India in 1947-1948, is not empty propaganda for national self-determination by pro-imperialist reactionaries. It is a struggle by the working class for power, and the SEP’s perspective of building a socialist republic of Sri Lanka and Eelam as part of the United Socialist States of South Asia. The SEP deserves the support of workers in Sri Lanka, the diaspora and beyond.

Multi-millionaire Charlie Mullins brands UK workers “lazy” and “selfish”

Julia Callaghan

Charlie Mullins, founder and chairman of the UK’s largest plumbing firm, Pimlico Plumbers, has been given an open door to the media in recent weeks to give voice to the contempt of the ruling elite for the working class.
Conservative Prime Minister Boris Johnson et al. have been forced to make transparent efforts to project a “caring persona” and conceal their class prejudices to avoid a social explosion during the pandemic. Therefore, Mullins has become the go-to-guy for the right-wing media, a rent-a-gob, to say what they all really think’that workers are all “lazy”, “selfish” “scroungers”, who should get back to work ASAP.
As COVID-19 cases continue to resurge, the government’s back-to-work-at-any-cost campaign requires the ending of the jobs furlough scheme and all measures protecting workers, their families and their livelihoods. Mullins, “plumber to the stars” with a personal fortune of £70 million, is given centre stage to justify this policy’which will be fully completed by November’by insisting that “time’s up”, asserting that workers have been “taking advantage”, “sponging off the government”, and that anything in the way of “getting the economy going” should be scrapped.
The 67-year-old’s anger is heightened by the fact that plumbing is one of the few sectors to have experienced a spike in business during the COVID-19 crisis. In the first half of July, Pimlico Plumbers saw an increase of more than 10 percent on the same period last year. In one week in July it booked in more jobs than any other week in the company’s 40-year history.
For Mullins, the sun is shining, and he needs his workers to make his hay. But with some workers staying at home, above all, those with co-morbidities, heightening the threat posed by the virus or with aging relatives, he complains, “You’ve got less people in your company that can create revenue for you.”
For his openly right-wing views and crass style of expressing them, and for his ability to play the “self-made man” who knows about “hard graft”, Mullins has been afforded banner headlines, live interviews and even the opportunity to pen his own articles. He has made multiple appearances on Sky News, Channel 4 News, BBC Radio 4’s Today Programme, BBC 5 Live, TalkRADIO, BBC Sunday Morning, ITV’s This Morning, Good Morning Britain, and several BBC regional news stations. He has written personally in the Daily Mail and the i newspaper.
Of the furlough scheme he says, “We need to … stop this stupid culture of people thinking that they can sit at home and just be paid for it.” Those hesitant to go back to work while the pandemic still rages are “milking the system”. “The problem is,” he sneers, “most people’s workplace is too far from the beach for them.”
For Mullins, the fear of catching or passing on a virus that has taken almost three-quarters of a million lives worldwide and caused as yet unknown long-term damage to over 20 million is a sackable offence. In the Daily Mail, he wrote, “I’ve heard all the excuses—people are worried about catching Covid-19, or they’re afraid of infecting a vulnerable relative who is self-isolating. But to any employee who tells me that they don’t want to come back, who wants to string out the furlough … I’ve got one thing to say: we don’t want you back. So far I’ve already told 30 former staff: ‘Don’t bother coming in, ever.’”
Even those working from home don’t escape Mullin’s wrath. He says, “I don’t think they’re going to be motivated enough to say that they’re doing a proper day’s work.” They are “very selfish”, “sitting about in their pyjamas” and “couldn’t care less about nobody else or the economy.”
“You’re gonna create a culture,” he says. “It’s like the people on benefits. They’re never gonna wanna come off it.”
Mullins’ most recent on-air outing was to slam the proposal to give sick pay to workers forced to quarantine when returning from holiday in a country on which the government belatedly placed travel restrictions. “No way. They’re not sick,” says Mullins. “If we start paying people £100 a week to sit at home and do nothing we’re back to square one. The economy can’t afford it.”
This is a man who spends £300,000 on holidays every year talking about many for whom losing two weeks’ pay during quarantine has serious financial implications.
Not one of the media outlets has compared the meagre weekly statutory sick pay of £95.85, or even the £34 billion cost of the furlough scheme, which has preserved almost 10 million jobs, to the astronomical £350 billion handed over to UK corporations in March. The funneling of this unprecedented sum of public money straight into the pockets of the corporate elite was conducted without even a parliamentary vote and has barely been mentioned since.
Mullins did not help his case by conducting his media interviews from one of his several million-euro villas in the Spanish resort of Marbella, filmed against sun-drenched backdrops including swaying palm trees and his swimming pool.
Workers, suffering the worst global health crisis in a century, and facing economic devastation under a system completely incapable of prioritising lives over profits, hit back on social media. Many wrote of the relentless media attention given to this obscene caricature of a man, asking, “How come Charlie Mullins gets so much airtime?”, “Why is Charlie Mullins on BBC news several times in a week?” and “It’s a Mullins monologue.”
Some pointed to the class issue that sits at the heart of the conflict. One worker tweeted, “An alarm bell is ringing out loud and clear: One rule for us; another rule for everyone else.” Another wrote that Mullins is “the worst type of capitalist, slagging off his employees, whilst he sits on his pile in Marbella. He’d run workhouses if allowed.”
Others wrote of the desperation the coronavirus crisis has brought into their own lives. One said, “Charlie Mullins is really getting my back up. My company has reopened and I’ve not been brought back when I want to. Furlough/lockdown has ruined everything for me. My mental health has suffered and my marriage has fallen apart and I’m still out of work.”
There are those who question how Mullins can be an authority on employment issues at all, referring to the seven-year legal battle he eventually lost in 2018 over the classification of his engineers as “self-employed”, in an attempt to reduce his costs and remove their basic employment rights. “Not sure I can agree with tax dodging Charlie Mullins who fought tooth and nail to avoid having to financially treat his employees as employees despite in every other way treating them as employees,” tweeted one.
Losing the high-profile case has not changed his business model and all Pimlico Plumbers engineers continue to be “self-employed.”
Mullins cites Margaret Thatcher as his business inspiration and forced his entire staff (the “self-employed” included) to wear black armbands when she died. He has donated tens of thousands of pounds to the Tories and was particularly close to his admirers, former Prime Minister David Cameron and former Chancellor George Osborne, who had him in “every four or five months.” In return for his generous donations to the Tory Party—and of course “services to the plumbing industry”—Mullins was awarded an Order of the British Empire in 2014. He intends to campaign to become mayor of London in 2021.

Stonehaven rail disaster due to UK’s neglected railway earthworks

Steve James

The horrifying train wreck near Stonehaven, Scotland, last week, was the result of the dilapidated condition of Britain’s rail infrastructure.
Starved for decades of essential maintenance funding, the railways have been transformed by successive governments into state-subsidised cash cows for private corporations.
Three people—two train crew and a passenger—were killed, and six other passengers injured on the 06.38 service from Aberdeen to Glasgow, on August 12. The victims were driver Brett McCullough, conductor Donald Dinnie and passenger Chris Stuchbury, a tugboat captain. One of the injured remains in hospital.
The train was nearly empty, with only nine passengers. Had the service been anywhere near full capacity, fatalities and injuries would have been much higher.
Aerial view of the 2020 Carmont derailment (source: gov.uk)
The high-speed train, consisting of two diesel power units and four passenger coaches, left Aberdeen on time amid atrocious weather conditions of thunderstorms and torrential rainfall. Parts of the UK had just experienced one month’s rain over a few hours. Stonehaven saw 65mm of rain in two hours. Schools, reopening in Scotland for the first time since the national lockdown, and transport were disrupted across the region.
Why the train departed is unclear. Two previous southbound trains from Aberdeen had been cancelled, as were subsequent services. Driver McCullough’s sister Salina commented on social media that she held train operator ScotRail responsible. ScotRail is owned by transport conglomerate Abellio.
Addressing ScotRail, she wrote, “During one of the worst storms to hit Scotland, you sent my brother out to drive a beast of a train. ... I wish Brett had refused, but that wasn’t in his nature, he would never let anyone down.”
The train left Stonehaven, 15 minutes by rail from Aberdeen, on time, only to receive a radio message a few miles out of Stonehaven, warning that another train driver had seen a landslip further down the line.
The train was instructed to return to Aberdeen and reversed on the southbound line to a set of points. Here the train was held for a couple of hours while an engineer drove to the site to switch the manually operated points. The train then switched to the northbound line and set off back towards Stonehaven.
In the intervening period, another landslip appears to have blocked the northbound line, at a particularly deep gully at Carmont, just south of Stonehaven, which the diverted train hit at a speed of around 50 mph.
According to Tony Miles of Modern Railway magazine, the speed limit on that section of railway was 65 mph. Miles told the Times , “There would be no reason then, even under caution, unless it had been explicitly agreed with the Network Rail controllers, for the train not to proceed normally at line speed.”
He continued, “The sad fact is that because of the terrain, and on a bend, if the train encountered a landslip there would be little time, even with the application of the emergency brake, to avoid a collision.”
The train jumped the track, continued for 100 metres, then hit the parapet of a bridge. The front power unit and a passenger coach tumbled down an embankment where the engine caught fire. Two other coaches jack-knifed, one ending up upside down on top of another. Only the rear coach and power unit remained upright.
An off-duty rail worker, Nicola Whyte, who was injured in the crash, walked three miles to raise the alarm. Emergency services had difficulty reaching the scene. Four fire fighters suffered minor injuries in the rescue operation.
That such a clearly avoidable tragedy should occur on the main line south from Aberdeen, a city with a conurbation of over 300,000 people, points to a crisis in rail infrastructure, particularly earthworks, maintenance across Britain.
State controlled Network Rail (NR), which owns the rail network and leases lines to private train operating companies, reported its intention to carry out emergency inspections of dozens of “higher risk trackside slopes” with similar characteristics to the Aberdeenshire crash site. Some inspections would be carried out from helicopters.
NR CEO, Andrew Haines, blamed climate change. Railways in Britain, said Haines, were “designed for a temperate climate, but it’s challenged when we get extremes such as storms and floods.” NR intended to mobilise its “extreme weather action teams,” open a dialogue with meteorologists, and review plans to monitor high risk sites.
Speaking to the BBC, Prime Minister Boris Johnson said the crash was shocking because “these accidents on the railways are thankfully so rare.” But it is only down to chance and the many interventions of railway staff, including conductors—who the train companies and government want to remove from trains—that many more such incidents have not taken place.
Other landslips occurred the same day, including in Fife, Scotland. The Shrewsbury to Llandrindod Wells “Heart of Wales” line suffered extensive damage. Many services across the UK were disrupted by flooding.
Roads were also affected. A major landslip on the A83 “Rest and be Thankful” road in Argyll and Bute, occurred the previous week. Some 6,000 tonnes of rocks and mud blocked the busy rural route, necessitating a 58-mile diversion. The A83 has been blocked by landslips repeatedly over the last decades.
Three investigations into the Stonehaven incident have been launched. The first is a joint investigation by the Office of Rail and Road (ORR), Police Scotland and the British Transport Police. This is being directed by the Crown Office and Procurator Fiscal Service. A second independent investigation is being conducted by the Rail Accident Investigation Branch (RAIB). The UK government under Conservative Transport Secretary Grant Shapps has ordered Network Rail to carry out an investigation, due to report by September, into “wider issues” that may have led to the crash.
The British and Scottish authorities, ScotRail and NR, will all be seeking to avoid responsibility for a catastrophe that has been long in the making.
NR’s own June 2018 Earthworks Technical Strategy document makes clear that the company, and therefore both the government and the devolved administrations, have long been aware of the network’s vulnerability.
NR maintains 190,000 “earthwork assets” near about 19,000 km of track. Many were constructed in the 19th century “on an unprecedented scale”. This has resulted in a “legacy of over-steep embankments and cuttings across the network” which, when compared with assets controlled by modern design codes are “inherently disadvantaged”. “The asset count, age, degradation and current rate of strengthening provide a unique management challenge on a macro scale.”
NR’s response to these challenges, arising from Britain’s historic role as one of the first industrial powers in the world, is based on reducing costs, “risk management” and managing public perceptions. The NR document states that “our organisation’s approach to risk management is determined by risk appetite and tolerance.”
It complains that “Perceptions of the asset base and expectations of its ability to perform will often need careful management, particularly at times of heightened potential for failure during prolonged wet weather.”
NR note that the winters of 2013/14 and 2015/16 showed the “susceptibility of the asset base to failure.”
Only earthworks deemed the most dangerous will be dealt with quickly while the organisation aspires to renew or refurbish a mere “0.5% and 1.0% of the asset base” every five years. At that rate it will take between 500 and 1,000 years to refurbish them all. Neither of the earthworks that collapsed near Stonehaven appear to even have had monitoring devices—one of the essential maintenance tools NR claims it will eventually roll out—installed.
All such plans are being disastrously undermined by Network Rail’s cost-cutting. It carried out a reduction of its maintenance staff by 12 percent between 2009/10 and 2013/14, down by 2,169 to 15,813. Then it set a target of 2019 of further cost-cutting of 20 percent.
As with the Grenfell Tower disaster and the coronavirus pandemic, the Stonehaven rail crash exposes the systemic elevation of profits above the safety of the population. Every area of life is being subordinated to the accumulation of wealth by a super-rich elite and the corporations they run.

Germany’s IG Metall trade union preparing to enforce jobs massacre and deep wage cuts

Dietmar Gaisenkersting

Germany’s IG Metall trade union is preparing to cooperate with the major corporations in the metal and electronics industries to enforce hundreds of thousands of job cuts. The main target in this will be the auto sector.
Big business and the trade unions are exploiting the coronavirus pandemic to secure the upper hand in the intensifying global trade war by imposing savage attacks on workers. While the federal government used the first phase of the pandemic to transfer over €1 trillion to the major corporations, the past several weeks have been dominated by the push to get everyone back to work so that the corporate elite can begin raking in profits once again.
This is also the purpose of the relaunching of regular in-person classes in schools, which under conditions of a resurgence of the pandemic can only be described as a criminal experiment in herd immunity. The actions of IG Metall are characterised by the same ruthless subordination of life and limb to the profit dictates of the major corporations.
On July 22, IG Metall executive member Jürgen Kerner announced in the Wirtschaftspresse München that he and his trade union colleagues expect that companies in the metal industry will lay off 300,000 workers. The greatest restructuring is to be expected in the auto sector, including parts suppliers, he said. Another example is the airline industry, including Airbus and its suppliers. The IG Metall’s chief treasurer also indicated that the steel industry faces a large wave of redundancies.
IG Jörg Hofmann (Credit: IG Metall)
When Kerner claims that among “the core tasks of a trade union is to fight within the workplace and frame the future,” workers should be on guard. IG Metall’s core task over recent decades has been the destruction of hundreds of thousands of jobs and the shuttering of plants against the strong opposition of workers. This remains true today.
Kerner, a member of the Social Democrats for many years, knows full well that the coronavirus pandemic is merely being advanced as the pretext for the loss of 300,000 jobs. He sits on the supervisory board of seven large companies, including Siemens Inc., Traton Inc., and Airbus Operations Ltd. He is deputy chairman of the supervisory board for ThyssenKrupp, MAN, MAN Truck & Bus, and the Premium Aerotic Ltd. Alongside his six-figure salary as a top union official, he can also claim hundreds of thousands in additional fees for his supervisory board positions.
The trade union bureaucrat knows very well what the companies’ real reasons for the job cuts are. Even Kerner acknowledged that the planned restructuring is not simply due to the pandemic. “A large portion of the 300,000 is about optimising the companies under cover of the coronavirus,” he said. Many of the plans were completed long before the pandemic.
Most major automakers announced a wave of job cuts last year in response to the transition to electric vehicles and increased automation. This year, the number of lay-offs has been concretised. Daimler is cutting 30,000 jobs, VW 20,000, Audi, a VW subsidiary, 10,000, BMW 16,000, and Opel several thousand. ZF Friedrichshagen, the largest auto parts supplier, is cutting 15,000 jobs, while Bosch and Schaeffler are eliminating 2,000 each. Hundreds of smaller suppliers are axing tens of thousands of jobs.
The steel industry, which is one of the main suppliers of raw materials for production industries, is also facing a major wave of restructuring. ThyssenKrupp has announced the closure or sale of its heavy plate steel factory in Duisburg, as well as the factories producing stabilisers and springs for the auto industry. Outokumpu is closing its sites in Wilnsdorf and Heidenheim.
This is an international process. Airbus, whose leadership is in close contact with the IG Metall treasurer Kerner through its supervisory board positions, plans to cut 15,000 jobs across Europe. Renault plans to cut 15,000 jobs, while 20,000 will go at Nissan. Japanese automaker Mitsubishi is even considering pulling out of Europe altogether.
Albert Vaas, an analyst with Boston Consulting, told financial daily Handelsblatt that there is “foreseeably a 5 to 10 percent overcapacity in production in the market.” Within the EU, around 3.7 million people are employed directly or indirectly in the auto sector, including 820,000 in Germany.
These developments are not confined to the manufacturing and electronics sectors. There is no branch of the economy where mass lay-offs have not been unveiled, including by airlines, travel companies and retail outlets.
In the emerging class conflicts, the trade unions stand on the side of their respective corporations and governments. They draft the mechanisms by which mass layoffs and unprecedented wage cuts are enforced.
For example, the Outokumpu works council is currently drafting a proposal for pay cuts of up to €700 per month, allegedly to save jobs.
The pattern of using the threat of job cuts to slash wages was also proposed by Kerner, who suggested the combining of the struggle to defend jobs with the upcoming round of collective bargaining at the end of the year in the manufacturing, electronics and steel sectors.
By that point, IG Metall will have established the mechanisms to praise the wage cuts as a great “success,” because compulsory redundancies will have been ruled out and the number of job cuts will be lower than the original announcement. All of this has long been under preparation in the supervisory boards, where company and trade union representatives work closely together. However, given the scope of the coming attacks, IG Metall is insisting that the state intervenes on behalf of the companies once again.
Firstly, IG Metall is demanding billions in subsidies for the corporations under the guise of supporting environmentally friendly products. Kerner stated that the companies must be kept afloat with state support because there is no viable alternative. The state should, for example, subsidise “green steel” (made using hydro power instead of coke) and hydrogen-powered trucks to make them “competitive on the market.”
At the same time, IG Metall is appealing for a lengthening of the short-time work programme so that they can buy time and drag out the attacks on workers throughout next year.
According to the latest figures, 6.7 million workers received short-time work payments in May. Most of them receive 60 percent (67 percent for parents) of their last net wage, meaning they must accept huge pay cuts. Some large companies and public corporations top this up to around 80 percent of a worker’s previous wage, but this still results in a pay reduction of 20 percent. The increase of short-time work payments agreed in April by the federal government was a fraud and will only benefit a handful of workers.
The current short-time work regulations will expire in March 2021. The IG Metall and other trade unions are demanding an extension to March 2022. Earlier this month, Reiner Hoffmann, head of the German Trade Union Confederation (DGB) reiterated this demand in an interview with the Bild am Sonntag. The current crisis is hitting “us at a time in which many key sectors, like auto, are under tremendous pressure to change, and international relations are extremely tense,” said Hoffmann.
“Pressure to change” and “extremely tense international relations” are euphemisms to describe the rapidly intensifying rivalries in the world market, which governments are fighting out with tariffs and sanctions, and the companies and trade unions with cost-cutting at the expense of the working class.
For example, the supervisory board and the head of the works council at Daimler’s main plant in Stuttgart-Untertürkheim have proposed saving thousands of jobs by cutting jobs at parts suppliers. “With a larger number of personnel, we can actually cut costs even more,” he explained to Handelsblatt. “How? Quite simple: by doing many of the activities ourselves that we previously outsourced at considerable cost.”
The works council at BMW is also pushing to reduce spending on outsourcing, such as at Nedcar in the Netherlands. If the works councils get their way, the planned Daimler plant in Hungary and a BMW factory in Turkey will not be built.
VW central works council chairman Berndt Osterloh called for an additional model to be produced at the company’s headquarters in Wolfsburg, which is the largest auto plant in Europe and currently only running at half capacity. This would necessarily mean that a model would be cut from another plant.
In plain language, this means that the job cuts should be carried out in other countries, but not in Germany. When trade union officials like Kerner now appeal for the state to intervene, because job cuts would play into the hands of the far-right, they are turning reality on its head. With its national division of the working class and constant cuts, the IG Metall acts as a breeding ground for and the cause of the rise of the right.
Workers in Germany, across Europe and internationally can only take forward their struggle against this by organising independent action committees, unifying their struggles internationally, and taking up the fight for socialism to place the interests of society above the profit drive of big business.