Workers Demand Abolition of Contract Labour System, Repeal of Anti-Worker Labour Codes

Hundreds Rally in Bengaluru, Call for Regularisation and Fair Wages

Bengaluru, July 6, 2025 – Hundreds of non-permanent government and Public Sector Undertaking (PSU) workers gathered at Gandhi Bhavan today, demanding the abolition of the contract labour system and the repeal of what they termed “anti-worker” Labour Codes. Organized by the Government and PSU Non-Permanent Workers Joint Forum, the convention saw strong resolutions to intensify the struggle for job security, fair wages, and dignified working conditions.

Speakers at the event condemned the widespread use of contract labour in government departments and PSUs, arguing that workers performing essential roles are denied permanency, fair pay, and social security.

Contract System Called a “Sham and a Crime”

Clifton D’ Rozario, Vice-President of the All India Central Council of Trade Unions (AICCTU) and the event’s chief guest, slammed the contract labour system as exploitative.

“Lakhs of workers who are, in fact, permanent are falsely termed as contract workers and subjected to severe exploitation,” he said. “Despite performing core and perennial tasks, they suffer from job insecurity, poor wages, and lack of social security. The new Labour Codes only institutionalize this exploitation.”

He pointed out that while Group A and B positions in Union Government offices remain permanent, nearly all Group C and D roles are outsourced. “Contract workers do the same work as permanent staff but are paid less, denied benefits, and treated as disposable. This system is not just unjust—it is a sham, a fraud, and a crime.”

Workers Decry Stagnant Wages, Demand ₹42,000 Minimum Pay

Chandrashekar, Working General Secretary of the HAL Contract Workers Association, highlighted the failure to revise minimum wages since 2017, despite legal requirements for updates every five years.

“It’s now 2025, and the cost of living has skyrocketed,” he said. “Forcing workers to survive on outdated wages is equivalent to forced labour. We demand a minimum wage of ₹42,000 per month and an immediate revision.”

He also called for a separate wage schedule for PSU workers, whose contributions to the economy remain undervalued.

Labour Codes Accused of Entrenching Exploitation

Babu Vinoth, Vice-President of the Karnataka General Labour Union (ITI Unit), criticized the Labour Codes for legitimizing contract labour by excluding key roles like sanitation, security, and housekeeping from “core activities.”

“This gives PSUs a legal excuse to continue outsourcing permanent jobs,” he said. “It’s a betrayal of workers’ demands for regularisation and justice.”

Shivakumar, President of the NIMHANS Pragathipara Workers Union, raised concerns over shrinking health coverage under the Employees’ State Insurance (ESI) Act.

“The ₹21,000 wage cap excludes lakhs of workers,” he said. “Private healthcare is unaffordable, and denying ESI coverage is a violation of workers’ fundamental right to health.”

Success Stories and Call for Unity

Maniyamma, Secretary of the BBMP Pourakarmikara Sangha, cited the successful struggle of sanitation workers in ending contractualisation.

“Only through protest, organizing, and unionizing were we able to remove the contract system,” she said. “All workers must follow this path—organize, fight, and win.”

Hemanth Kumar, President of the Karnataka General Labour Union (ITI Unit), stressed unity among workers. “Justice is on our side. Only by standing together can we challenge this exploitative system.”

Key Demands and Future Action

The convention concluded with a resolution vowing to continue protests until demands are met, including:

• Immediate withdrawal of the Labour Codes and amendments to ensure job, wage, and social security.

• Abolition of contract labour, outsourcing, and fixed-term employment in government and PSUs.

• Revision of minimum wages to ₹42,000 per month and a separate wage schedule for PSU workers.

• Universal ESI coverage by removing the ₹21,000 wage cap.

• Safe and inclusive workplaces for women workers.

• Protection of workers’ rights to organize, protest, and strike.

The Joint Forum announced plans for coordinated nationwide struggles to end contractual exploitation and secure dignified working conditions for all.

Why This Matters?

The growing reliance on contract labour in government and PSUs has sparked nationwide protests, with workers arguing that outsourcing undermines job security and fair wages. With inflation rising and social security shrinking, the movement is gaining momentum, setting the stage for larger confrontations with policymakers.

Key Quotes:

1. Clifton D’Rozario (AICCTU):
   “The contract system is not just unjust—it is a sham, a fraud, and a crime.”

2. Chandrashekar (HAL Workers):
   *”Outdated wages in 2025? This is forced labour. We demand ₹42,000/month now!”*

3. Babu Vinoth (Karnataka Labour Union):
   “The Labour Codes legalize exploitation. This is a betrayal of workers!”

4. Maniyamma (BBMP Pourakarmikas):
   “We ended contract work through protests. Every worker must fight the same way!”

5. Shivakumar (NIMHANS Workers):
   “Denying ESI coverage is denying workers their right to healthcare.”