fallout of Fatehgarh Sahib Bus Accident Govt to end pact with firm providing staff

In an important decision in the wake of the recent accident near Sirhind, the Punjab Government has decided to terminate the agreement with the private agency that was sourcing staff, mainly drivers and conductors, for 2,300 buses on different routes in the state.
Confirming the development, Principal Secretary (Transport) Jagpal Singh Sandhu said the current service provider’s agreement had ended in December but the company was given two extensions. The company was employed by the state government in 2006. The agreement with The Providers is likely to be terminated next month, it has been learnt. The Sirhind mishap, involving a PUNBUS (public transport) vehicle, had left a large number of passengers dead.
The Tribune had carried a series of reports on how the privately hired staff was being made to work overtime to earn extra money. It was found the staff was not being paid the minimum wages, as mandatory under the Labour Act.
To top it all, there was no government agency to monitor their working in a service that involves commuting by thousands of passengers daily.
Sandhu said Transport Minister Ajit Singh Kohar was seized of the matter and had been apprised of the changes that were being made in the contract.
Sources said the state government was working on changing the terms of the service rules to stop the exploitation of drivers and conductors by private contractors.
Against the minimum wages of Rs 8,404 for a driver and Rs 7,372 for a conductor, The Providers was reportedly paying around Rs 3,000 a month. The Labour Department is learnt to have taken note of the “anomaly”.
Harpreet Singh, The Providers coordinator, said, “The company is giving a monthly basic of Rs 5,473 to a driver and Rs 4,776 to a conductor. They are also paid for their overtime, besides compensation for night stay. The company deducts provident fund at 13.61 per cent and service insurance at 1.75 per cent. The payment may work out to around Rs 3,000, but the deductions remain in the employees’ savings.”
MS Sidhu, president, PUNBUS Contract Workers Union, said, “Being paid at the rate of Rs 1.26 per km, every driver tries to cover as much as possible to survive financially.” He said the union had submitted a complaint to the Labour Department alleging the PUNBUS was not giving them any relief despite agreements in the past.
Anomalies alleged
  • The Punbus Contract Workers Union has approached the Labour Department
  • It has alleged non-payment of the minimum wages as per the Labour Act
  • The minimum wages are Rs 8,404 for a driver and Rs 7,372 for a conductor
  • But the company was paying around Rs 3,000
  • The agency was providing staff for 2,300 Punbus buses in the state
  • Its contract ended in December but the firm managed two extensions
  • The new pact may witness certain changes in the work conditions and pay

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@Punjab update