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Madras HC restrains TNEB from outsourcing labour

Our Legal Correspondent

Chennai , Aug. 27

THE Madras High Court has ordered interim stay of the decision of the Tamil Nadu Electricity Board to outsource the requirement of labour force in its operation and maintenance wings and the sub-stations.

By a letter dated April 29, 2004, the Member (Distribution) of the Board had advised the chief engineers of the distribution region to outsource the requirements in the various sub-stations subsequent to January 1, 2004 if the posts had not been sanctioned.

Mr Justice R. Balasubramanian, who heard the petitioner, Central Organisation of TNEB Employees (CITU), granted the interim injunction of the first respondent's (TNEB) decision.

The petitioner said that following a Supreme Court's direction, the Tamil Nadu Government by an order dated August 8, 1990 abolished contract labour system in 19 processes in the distribution circles. The court, in response to the Union's petition, directed the State to consider the abolition o the contract labour in other processes also.

The union contended that the Board continued to employ contract labour in the distribution and other circles. The State Government had on April 9, 1999 decided that in the first phase, workers in 4 thermal stations, 2 gas turbines and 31 hydel power stations would be regularised with effect from May 1, 1999. However, according to the petitioner, the issue was pending before the Industrial Tribunal.

The petitioner said that the respondents, with a view to deny regularisation of the employees had taken a decision to outsource the Operation & Maintenance workers of the distribution circles including the sub-stations. By letter dated April 29, 2004, the 2nd respondent advised the Chief Engineers of the distribution region that the labour requirement of O & M and the sub-stations should be outsourced.

The petitioner submitted that the impugned decision of the TNEB was contrary to law. The Board was bound to follow the State Government's order prohibiting employment of contract labour in the 19 processes of the Board, and the impugned decision to outsource was in violation of the said probation.

Further, according to the petitioner, the decision to outsource the work when the claims of more than 22,000 contract labourers were pending adjudication before the Industrial Tribunal amounted to change of condition of service effected during the pendency of the proceedings and was contrary to the provisions of Chapter VII of the Industrial Disputes Act. As the EB had been directed to function as the State transmission utility, the decision was contrary to the notification issued under the law.

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