Unhappy BPO employees want union

BANGALORE: A study has revealed that 97% of information technology enabled services (ITES) professionals in India believe that companies are indifferent to their welfare, which is among several reasons why the employees want a union. The demand belies the contention of the National Association of Software and Service Companies (NASSCOM). The body, which is the chamber of commerce of India’s IT software and services industry, has been arguing that the sector does not require a union.

But the study, released on December 6, suggests that mounting work pressure and concerns relating to job and employee security are pushing more professionals towards unions.

“We found that employees felt the need for a forum where their interests can be addressed,” said Noronha Ernesto, one of the researchers who conducted the study at the Indian Institute of Management, Ahmedabad. The project was carried out by the IIM and the Strathclyde Business School of Glasgow, UK, and involved 879 professionals working in Bangalore, Chennai, Hyderabad, Kochi, Mumbai and Delhi.

According to the study, long work hours (cited by 65% of the respondents), security concerns (64%), and job insecurity (62%) were the three main reasons why employees want a union.

Around 73% of respondents felt that managements ignored their problems, and 68% believed that they were not involved in setting targets.

The study found that owing to these factors, the Union of IT Enabled Services Professionals (UNITES Professionals), the Indian chapter of the union launched by UNI Global Union, has attracted over 15,000 employees. In all, there are 1.6 million employees in India’s ITES sector, and the union was formed two years ago.

“A few BPOs have settled an agreement with unions in other countries to reflect on and to review employee-related issues, but they do not apply similar rules in India,” said UNITES India’s general secretary Karthik Shekhar. “For instance, the HSBC Bank has signed an agreement with UNIFI in the UK but is not applying similar norms in India. We will push such companies to implement uniform norms.”

However, many industry leaders do not consider unionisation necessary. “We should not compare overseas work conditions with those in India,” said the chief operating officer of 24/7 Customer, S Nagarajan. “Unlike the industry in the US or the UK, ours is the world’s most HR-friendly sector with the best paying jobs, and the best facilities such as cafeterias, gyms, sports complexes and transportation. The UK or the US companies don’t even have offices in good localities. There is no need for a union.”

As for the employees, the study discovered that many found the work conditions tough. Sixty-six per cent of the respondents said they experienced pressure during normal working days.

The number of women suffering from work pressure was higher, at 75%, compared with men, 59%.