Contract Workers Battle for Their Rights
Deadly Delays in the Delivering Justice
I have written about the travails of the housekeeping contract workers of BPCL. You can read it here.
The contract workers’ battle against the injustice has now reached the final stage. At BPCL (Bharat Petroleum Corporation Ltd.), not at other organizations.
The housekeeping workers of BPCL, who were engaged thru a contractor, were removed from service around in May 2019. But a long history of litigation precedes it.
Dr Vivek Monteiro has been leading the struggle of these contract workers through his union, Mumbai Shramik Sangh. We pick up the story in 1990 when Mumbai Shramik Sangh filed a petition for regularisation of these housekeeping contract workers. They were mainly employed in housekeeping work at the BPCL’s Residential Colony. This petition was based on the Air India case judgement of the Supreme court. That decision had paved way for contract labour to be absorbed in the establishment.
At the admission stage the counsel for BPCL submitted that the housekeeping workers will be continued during the pendency of the proceedings. (But the contractor kept changing denying benefits of continuity).
In Feb 1997, the Division Bench led by Justice Mr Tipnis regularised the contract workers in service from the retrospective effect from 1990. BPCL then filed a Special Leave Petition (in 1997 when there was no SAIL judgement) before the Supreme Court. The judgment in the case of SAIL which overruled the Air India followed in 2001.
The Division Bench’s order was set aside as a result of SAIL. But leave was grated to Mumbai Shramik Sangh approach Contract Labour Advisory Board. The process of regularisation of contract labour must go through this Board. At that juncture Dr Vivek Monteiro was a member of the Board, so he recused himself. In this matter, a committee was appointed (it has not yet given its report!).
The matter of regularisation was also taken to the Central government Industrial Tribunal where BPCL’s stand was that the contract workers worked at the housing colony of the Company, and that housing colony is not an ‘establishment.’
While BPCL rules state retirement at the age of 60, there is no such service condition for the contract workers. This matter also went to the Supreme Court. The Hon’ble Court passed an order which said, ‘Superannuation benefits due and payable shall naturally be made available forthwith in accordance with law.’
The contract workers filed application for payment of gratuity in May 2019. And the Controlling Authority upheld that gratuity payment is due to them. That was in May 2022. Then BPCL approached the Appellate Authority in June 2022 which upheld the order of the Controlling authority. In this matter, the case of one of the contract workers, Indubai, was closed in January 2023 but the order was kept pending for over a year finally delivering the order on 28th March 2024. The company had to deposit the amount which is paid after 90 days and since there was no stay order, it was paid to Indubai. Finally, she received her gratuity! A royal sum of Rs 3,22,000/-!! And other workers are yet to receive their gratuity!
It speaks volumes for the trust the contract workers have shown in Dr Vivek Monteiro. The workers often lose patience; the force of circumstance can be too overwhelming for them. Dr Monteiro has fought this battle in the way it should be – on principle and law.
And the job is not yet complete – nine workers are yet to receive their gratuity.
Tata Steel has handled the contract workers issue sensitively. Thermax has also handled it well – the issue of their permanency. Govind Kaka Dholakia follows his unique people policy (and it is dictated by his heart) where contract workers receive exactly the same pay and benefit as the permanent workers. And there could be more examples.
Do Public Sector Enterprises show exemplary people policies? Who will change this situation? Can we change the apathy toward the contract workers?
What began in 1990 is seeing semblance of justice in 2024! Thirty-four years!! Two contract workers have died during this period. Some managers received promotion and made it even to the highest level of hierarchy. Two legal luminaries who pleaded the case of BPCL (not of contract workers) became Supreme Court Judges and later Chief Justices – Mr SP Bharucha and Mr Dhananjay Chandrachud. The world moved ahead leaving the contract workers far behind.
The house keeping workers received nothing but Statutory Minimum Wages all through their service and nothing more. In other words their standard of living did not rise at all in spite of working for thirty plus years. And they had to wage a legal battle to get their due.
The real issue is that this is just a representative case, this is not just about BPCL, and HR fraternity is aware of innumerable organizations where this story is repeated.
Is caring for contract workers an inseparable part of corporate social responsibility, or its people policy?
Do lives of contract workers matter?
You decide!
Vivek S Patwardhan
What you leave behind is not what is engraved in stone monuments, but what is woven into the lives of others/ All work copyrighted.
Dear Vivek,
You through your writing have rightly brought out the battle through which the contract workers have to go through in most enterprises in out country .
Regards,
Rajen,
Dr. Rajen Mehrotra
Lives of contract workers matter as much as yours and mine!
Contract workers face a significant disparity in treatment compared to permanent employees. This systemic issue is often driven by a desire to sidestep the numerous legal and regulatory compliances associated with full-time employment, such as benefits, job security, and various forms of worker protection.
Contract workers are seen as expendable, continually at risk of being replaced or having their contracts terminated with little to no notice.
However, this approach raises significant ethical concerns. It reflects an imbalance where the company saves money at the expense of the worker’s well-being and financial security.
It is imperative to recognize and rectify the disparities faced by contract workers.
Thank you for highlighting this so well.
I salute people like Dr.Monterio. The world is a more equitable place because of people like him.
The problem with contract workers is that the reason they are employed is malafide. One can understand if the work was seasonal but when they’re employed year round but paid differently with almost no benefits then how can that be justified? It is done to make profit at the expense of the welfare of poor people. They have no choice so in our feudal society they work for years with their employment always in jeopardy. This is unfair and should be illegal. Permanency is used as a favor whereas it is their right. The story in Tata Steel and Thermax is a reflection of the highly principled and ethical way in which they’ve always done business. But like you said there are any number of other companies, big and small, where exploitation of contract workers is the norm. This includes sexual exploitation of young women who are forced to succumb or be dismissed.
There should be a uniform employment policy for all perennial work with the same terms and conditions for everyone. To have two people doing that same job, working the same hours, but getting different pay and benefits is exploitation, pure and simple. It also beats me how labor unions seem to be complicit in this daylight robbery of the poor.
I believe the Supreme Court should take suo moto notice of this and redress this wrong.
Dear Vivek,
Thanks for a comprehensive narration of the key events in the BPCL Contract labour Case
Hats off to Dr Vivek Monterio for his continued devotion to this cause/subject ( over 34 years and counting) despite setbacks of the System including the Judiciary!!
The Poor workers have to struggle through Courts to get even their Legal dues. They are expected to survive on minimum wages
Unfortunately, I observe increase and (mis)use of Contract Labour across all Sectors.A few inputs —
1)Many Managers prefer contract labour since they do not have to make any effort to get work done or motivate them at all. The Contractor handles that !!
2) Companies are quick to calculate Costs of Employment in Permanent v/s Contract
3)If there are Legal cases, high Lawyer fees are affordable , often more than the actual costs involved in settling the dispute
4) Less said about malpractices and the people involved in employing Contract labour ?
5)I am not surprised to read your apt comment about Legal Luminaires incl the current CJI -who is a champion of the Rule of law / fairness & equity.
I hope Boards /Senior Management are held accountable post a fact check/audit of their Sustainability and Statutory Compliances reports- we may see then some Change
Thanks once again
Dear Vivek ji,
Yet again, you have scripted an insightful account of the Contract Labour, their trial and tribulations. Most of us in our present situation lament on what happens to them. However, most of us were holding responsible positions in the Organisations we worked and need to honestly soul search the role played by us, how often we took up the cause of the Contract Labour or did we willing or otherwise took the matter to Courts. Have we been fair to the Contract Labours’ cause in our working lives? there may not be easy answers.
I have personally dealt with Dr. Montario in one of the Tata Companies I worked for our Canteen Staff run by our Employees’ Society. I have the highest regard for the cause he had dedicated his life. Interesting that the very Office Bearers of the Society who were Members of the Union and fighting for their demands with the Co., were unwilling to consider salary increases for the Staff of the Canteen run by their Society. So the Roles change and so does the stand and loyalty.
We also need to be mindful of the fact that one of the reasons why Organisations prefer engaging Contract Labour and not make them permanent is the fear of the same very persons shirking work once they become permanent. Not correct, but we cannot fault Management, which includs the HR Fraternity for being myopic in their wanting to continue Contract Labour as such. It is sad but true. I am not not justifying but wanting to honestly present the reality, howsoever unacceptable.
If i have touched some sensitive nerve, well so be it.