BANGALORE: The Centre for Indian Trade Unions' (CITU) move to form a nationwide union for IT and BPO workers have evoked mixed response from the industry.

“Disastrous, that is my personal opinion,” Bob Hoekstra, CEO, Philips Software Centre Ltd said when asked for his comment on the CITU's planned move to float a workers' union for IT and BPO employees by end-2006.

He expressed fear that such a union would prevent the BPO industry from taking shape as the trade unions have a conservative outlook.

A member of the board of directors of an IT major, who requested anonymity, also echoed same sentiments. “Such unions will destroy this industry. If we look at what such unions have done to the manufacturing companies in the country, we will get to know. This industry has shortage in manpower. We are paying best salaries in this sector compared to other sectors. Such trade unions should keep away from this industry.”

The CITU had said that workers' union would address the grievances of those working in the IT and BPO sectors.

It had also urged the central government to formulate separate legislation for BPO employees. Currently, labour laws do not cover IT and BPO employees.

Hoekstra commented that the lack of labour laws had in fact made the BPO industry grow faster.

The Left-affiliated CITU already had formed a union for ITeS employees in Kolkata, according to a report in a leading financial daily. The daily said that Nasscom president Kiran Karnik considered the formation of workers' union as retrograde.

“Unions in IT industry will be counter-productive. IT employees in India are the best paid in the industry. The hierarchy in IT and ITeS companies is much flatter where any employee can approach senior management with his/her problem. Stress and night shifts are a part of the job. Moreover, IT workers are not prone to dangers like other night workers such as engine drivers,” the report quoted Karnik.

However,Raman Roy, ex-CEO, Wipro BPO supported the formation of a trade union in the BPO industry, the daily said. “I have no problems with a union in the BPO industry, as long as it guarantees me that no employee will leave the organisation before one year. The union should work with the BPO industry to control the menace of attrition.”

Meanwhile, the CITU had set the ball rolling in Tamil Nadu, Karnataka and Haryana to form BPO employees' union. However, it could not find many takers in the BPO sector, reportedly owing to the fear of getting fired.

Reports said the CITU had initiated discussions to form unions in Bangalore, Chandigarh, Chennai and Hyderabad. The CITU would also take help from other trade organizations to form unions for BPO employees.