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Making Contract Jobs Permanent: SC Verdict Signals Shift in Jurisprudence, Victory for 2,700 Sanitation Workers in Mumbai


Photo Courtesy: Raveendran/AFP

It has taken the workers a decade to get relief from an exploitative contract system followed by the Mumbai Municipal Corporation. 

For ten years the battle wore on in the Courts until the Bombay High Court gave a verdict in the worker’s favour. Two thousand seven hundred workers were not only made permanent but they were awarded backwages from 2007. A victory indeed.

That did not signal the end of the ordeal, however. The Mumbai Mahanagar Palika, a cash rich city corporation,  reviled for its inefficiency and corruption, appealed the order in the Supreme Court. After 10 years of litigation to demand permanent jobs, a Supreme Court order on April 7 signaled a triumph for 2,700 sanitation workers in Mumbai. The workers, who were forced to work on short-term contracts for the past 10 to 20 years, are now not only entitled to permanent jobs with the Mumbai municipal corporation, but will also receive two years payment as arrears. The SC reduced the back wages to just two years.

Over 93-94 per cent of India’s workforce is in the unorganised sector; getting permanent employment here with the civic authority means that the workers will now also be able to claim the right to take weekly offs, medical leave and other leave without a salary cut.

Kachra Vahtuk Shramik Sangh, a union of sanitation workers in Maharashtra, had first filed a case in the industrial tribunal of Mumbai, in 2007, on behalf of the 2,700 workers. The tribunal took seven years to rule in favour of the workers, granting permanent employment to the sanitation workers in October 2014. The Mumbai municipal corporation, however, immediately challenged the tribunal order in the Bombay High Court, which also ruled in favour of the contract workers in December 2016.The corporation appealed once more, but on Friday, the Supreme Court dismissed the petition.

“This is a double victory – not just for these 2,700 workers but for contract workers in general,” said Milind Ranade, general secretary of the Kachra Vahtuk Shramik Sangh. “At a time when the country’s labour laws are under threat and when employers have the right to sack contract workers for joining a union, this judgement will boost the morale of those working under contracts.”

An exploitative system
Mumbai’s civic body employs more than 35,000 sanitation workers who sweep streets, clean sewers, collect garbage and transport it to dumping grounds. The majority of these workers, however, are not permanent employees of the corporation. They are hired through a complex network of contractors and sub-contractors, many of whom claim to be non-profit entities.

According to the union, it is routine for contractors to deny labourers timely wages, protective masks and gloves, paid leave and medical expenses for injuries sustained at work. The poor work conditions take a severe toll on the health and life expectancy of workers. In 2015, a study by the Mumbai civic body found that 1,386 sanitation workers had died in just six years. Devious means and manipulations are employed by contractors to keep workers tied to this exploitative contract system.

The Industrial Disputes Act of 1947 allows all contract workers the right to demand a permanent position if they have worked continuously in a particular job for 240 days, because by law, contract work cannot be perennial in nature. To skirt this law, contractors often hire workers on short contracts of 210 days, after which they are made to sign new contracts.

Meanwhile, the Contract Labour Act of 1970, which specifically provides labour rights to contract workers, is applicable only to establishments that employ more than 20 workmen. But the Mumbai civic corporation has been outsourcing its sanitation work to more than 200 different small contractors, who hire less than 20 people in order to be exempt from the Contract Labour Act.

Unions like the Kachra Vahtuk Shramik Sangh have been hesitant to demand a complete abolishment of the contract system out of fear that thousands of workers could lose their jobs. Instead, the union has been approaching the labour court with a series of petitions, seeking permanent jobs for different batches of workers.

The Mumbai industrial tribunal, however, has noted the illegalities in the contract system with respect to sanitation work. In its 2014 judgement, while granting permanent jobs to the 2,700 workers, the tribunal noted that sanitation work in a city is squarely the responsibility of the municipal corporation, and cannot be outsourced through contractors. It further noted: “This tribunal has turned down the entire contract system by holding it as sham and bogus.”

When the municipal corporation appealed this order, the High Court not only upheld the tribunal’s judgement but also pointed out that the appeal reflected the lengths to which the corporation had gone to “deprive the benefits of permanency” to the sanitation workers.

The corporation took the case further nonetheless, only to be ordered by the Supreme Court to grant permanent employment to the 2,700 contract workers. The apex court also ordered the corporation to provide employment to relatives of sanitation workers who died during the pendency of the long litigation.

Finally, the corporation has been ordered to pay the workers the additional wages they would have received had they been granted permanent jobs after the tribunal’s judgement in 2014. “This amounts to around Rs 2.5 lakh per worker for the past two years,” said Ranade.
 
 

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