Defence Civil Employees Unions call corporatisation of OFB 'A Historic Blunder'

After the Union Government approved the plan to corporatise the 246 year-old Ordnance Factory Board (OFB) the recognised Defence Civil Employees unions have called a move 'A historic blunder'. The OFB will be divided into seven different companies each doing a specific manufacturing role. The OFB which has 41 factories will be subsumed under one or the other of the seven different companies

The unions have been protesting the move since the plan was in its nascent stage. The plan, once implemented, the OFB established by the British will cease to exist.

General Secretary of All India Defence Employees Federation, C. Srikumar said that the government's decision has completely destroyed the fundamental concepts of strategic management by vertical integration and war insurance/ reserve due to its misguided ideology.

"But for Ordnance Factories it is hard to imagine for the Nation how we would have won Kargil War, Indo-Pakistan War, Bangladesh Liberation War and for that matter even strengthening Defence equipment in Ladakh etc.

Not only in War time but in peace time last year when the country was in the beginning of COVID-19 pandemic and the entire country was on lockdown it was the Ordnance Factories and its workers produced lacs and lakhs of Personal Protective Equipment required for the front line warriors. This decision of the Government to destroy the Ordnance Factories will make the nation repent. The breaking up of the OFB organization into smaller entities will reduce the capacity of a unified conglomerate to produce everything under one roof," he added.

The other recognised federations like Indian National Defence Workers Federation and Bhartiya Pratiraksha Mazdoor Sangh have stated that the development is great for the corporate companies and foreign arms. They have rejected the decision of the government calling it against the assurances given by the successive governments in the past 20 years.

Srikumar has been of the opinion that the decision to corporatise the OFB will jeopardise the national security as the soldiers will be deprived of the quality products.

Explaining the reason behind the stiff opposition to the cabinet's approval of the plan, secretary of the AIDEF, S.N. Pathak said, "The present Government taking advantage of the COVID-19 pandemic, in the name of "COVID-19 Relief Package" announced its decision to corporatize and subsequently privatize the Ordnance Factories. Against this decision of the Government the Trade Unions of the Employees started fighting back and since the Government was adamant issued a strike notice for indefinite strike, commencing from October 12, 2020. However, the Chief Labour Commissioner (Central) intervened and a conciliation settlement was reached in his presence between the Federations and the Ministry of Defence on October 09, 2020. However, the Ministry of Defence started blatantly violating the agreements and proceeded with its decision to corporatize the Ordnance Factories. Against this series of violations by the Ministry of Defence the Federations lodged a complaint with the Chief Labour Commissioner (Central) on 31.03.2021.

However, succumbing to the pressure of the Government, the CLC(C) remained a silent spectator and ultimately the Chief Labour Commissioner (Central) concluded the proceedings by recording a failure Report on 15.06.2021 in the absence of the three major recognized Federations and to enable the Government to take its decision on 16.06.2021 concluded the proceedings."

The federations have stated that they will fight back including reviving the deferred strike and other legal actions.

"The Federations appeals to all the Political Parties, Trade Unions, Central Government Employees and the people of the Country to join hands with the workforce of the Ordnance Factories to save the Indian Ordnance Factories from this evil decision which is the most historical mistake / blunder committed by the present Government which is going to have very serious impact on the national security and Defence preparedness of the country. The Ordnance Factories will be sold out because ultimately the Government policies are to privatize all the Government Industries and to sell out the precious land and infrastructure at throw away price to the Private Corporates and crony capitalists," the federations stated.

The federations have announced that all the Defence Civilian Employees throughout the country in all the Defence establishment will burn the Effigy / Government decision of Corporatization on June 19.

"In the meantime all the Unions are called upon to hold local level action programmes today and tomorrow by holding gate meetings, black flag demonstration, wearing black badge etc. Thereafter the three Federations will meet on June 20 (Sunday) and take further decisions to fight back including indefinite strike," the three federations announced.

Meanwhile, the defence minister Rajnath Singh said that the move would allow these companies autonomy apart from improving the accountability and efficiency.

The Union Government has stated that the move is aimed at restructuring the OFB into profitable and productive assets.