Did the Madras HC Support Chennai Corporation's Outsourcing of Conservancy Workers?

Chennai, Aug 20 (NationPress) The Madras High Court affirmed the decisions made by the Greater Chennai Corporation (GCC) to outsource conservancy duties in Zones V (Royapuram) and VI (Thiru. Vi. Ka. Nagar). The court mandated that the civic authority ensure that temporary workers are compensated with wages that are at least equal to or exceed their previous pay.

Justice K. Surender issued this ruling while resolving two writ petitions submitted by the workers' organization Uzhaippor Urimai Iyakkam, which contested the outsourcing initiative.

The petitioners expressed concerns that numerous temporary conservancy workers might experience a decline in their salaries upon being transitioned to the employment of Delhi MSW Solutions Limited, a Telangana-based firm awarded the contract.

However, the court clarified that there was no risk of retrenchment, as the workers' services were not being terminated but were instead being integrated into the private contractor's workforce.

In a counter affidavit, GCC Commissioner J. Kumaragurubaran assured the judiciary that the private employer would offer enhanced wages and additional benefits.

He highlighted that outsourcing conservancy tasks was not a novel concept for the city, as it had already been executed in 11 out of the 15 zones, where temporary workers from self-help groups (SHGs) had been integrated into private firms.

The affidavit detailed that 975 conservancy workers were engaged in Zone V and 1,059 in Zone VI prior to outsourcing. Delhi MSW Solutions has established a special purpose vehicle, Chennai Enviro Solutions Private Limited, to undertake the work and has commenced the recruitment of workers.

Out of the 3,809 required workers, 1,770 have been hired, with 2,034 SHG workers prioritized. Approximately 275 workers have already begun their duties.

The company has also extended a Rs 3,000 "welcome bonus" for those who join by August 31.

The Commissioner reiterated that each employee would receive a net monthly salary of Rs 15,357, along with accident insurance coverage of Rs 11.52 lakh, term life insurance of Rs 1 lakh, and other benefits, including marriage assistance of Rs 20,000, paid leave, and double pay for work on national holidays.

The court was informed that the private contractor would provide individual appointment letters to each worker, ensuring legal compliance and job security.

Justice Surender concluded that while the Corporation had the authority to outsource, it must engage with the contractor to protect the wages and benefits of workers transitioning to the private sector.