Madras HC upholds Chennai Corporation's outsourcing move of conservancy workers, orders safeguards

CHENNAI: The Madras High Court on Wednesday upheld the resolutions passed by the Greater Chennai Corporation (GCC) to outsource conservancy operations in Zones V (Royapuram) and VI (Thiru Vi Ka Nagar), while directing the civic body to ensure that temporary workers receive wages at least equal to, if not higher than, their last drawn pay.

Justice K. Surender issued the order while disposing of two writ petitions filed by the workers' body Uzhaippor Urimai Iyakkam, which had challenged the outsourcing decision.

The petitioners had argued that hundreds of temporary conservancy workers faced the threat of reduced salaries after being shifted to the rolls of Delhi MSW Solutions Limited, the Telangana-based company that secured the contract.

The court, however, observed that there was no question of retrenchment as the services of the workers were not being terminated, but rather absorbed by the private concessionaire.

In its counter affidavit, GCC Commissioner J. Kumaragurubaran assured the court that the private employer would provide higher wages and additional benefits.

He pointed out that the outsourcing of conservancy work was not new to the city and had already been implemented in 11 of the 15 zones, where temporary workers from self-help groups (SHGs) had been absorbed by private agencies.

According to the affidavit, 975 conservancy workers were employed in Zone V and 1,059 in Zone VI before the outsourcing. Delhi MSW Solutions has created a special purpose vehicle, Chennai Enviro Solutions Private Limited, to handle the work and has already started inducting workers.

Of the 3,809 workers required, 1,770 have been recruited, while 2,034 SHG workers are being given priority. Around 275 workers have already joined duty.

The company has also offered a Rs 3,000 "welcome bonus" for all those who join before August 31.

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

The court was informed that the private contractor would issue individual appointment letters to every worker, ensuring legal compliance and employment security.

Justice Surender concluded that while the Corporation was within its rights to outsource, it must negotiate with the contractor to safeguard the wages and entitlements of workers transitioning to the private system.