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K Nandakumar, 50, joined the Oil and Natural Gas Corporation (ONGC) as a security guard in Puducherry when he was 25. After serving for 25 years, it is only now that he is set to become a permanent employee of India's largest exploration and production company and be entitled to all the perks, allowances and benefits that come along with his job.
The quarter-of-a-century-old legal battle that ensued between the security guards and ONGC has been worth it, says Nandakumar. "Trips to the court and the struggle of 25 years have paid off. I am not sure how much I will get in terms of compensation from ONGC but whatever I get, I will invest for my future or probably buy a property," he said. Nearly 240 security guards had united to fight ONGC in 1988 when despite their 240 days in regular service, the company refused to consider them permanent, thus denying them the benefits.
On April 17 this year, the Supreme Court dismissed the appeal of ONGC in its fight with the Petroleum Coal Labour Union and directed the company to implement the order of the industrial tribunal passed in 1999, regularising temporary workers. The court found they were working for several years and were, therefore, its workers under the standing orders of the company and industrial laws. Apart from regularisation in their posts, the court also asked ONGC to pay them wages for the earlier periods of service, monetary benefits and other consequential monetary benefits including terminal benefits on the basis of the periodical revision of pay scales.
All this should be done in two months, or else nine per cent interest shall be paid, the court said. The court also wanted compliance report from ONGC after two months. "This is a huge relief for us. Though some of our friends who were fighting the case with us have retired and some have died, we are happy that justice has been done. We will get four promotions now and our benefits and entitlements will be thus accounted for," said S Sundaran, also employed by ONGC and party to the court case.
ONGC has a project in the Cauvery Basin, in and around Karaikal in the Union Territory of Puducherry, where about 1,050 workers have been regularly employed by the company for its project. For the security of the project, ONGC initially employed the workmen concerned as security guards and security supervisors through contractors.
ONGC paid a monthly salary of Rs 445 to guards and Rs 675 to supervisors. Even after the completion of their term, ONGC continued using their services.
The judgment said: "It is further held that the concerned workmen are all victims of unfair labour practice having been employed by the corporation for several years on temporary basis and even though they were not appointed by following the procedure laid down by the corporation for recruitment to such posts, they were entitled for regularisation and that their appointment cannot be stated to be illegal."
Though none of the parties involved in the case wanted to comment on their entitlements, a senior industry official said the benefits to the employees could be up to Rs 35-40 lakh each. "The benefits could accrue around 20-30 lakh to them. If we consider the salary component, it could well go up to Rs 50 lakh. But this is a guesstimate."
As of today, ONGC pays in a scale of Rs 10,000-18,000 to its junior attendants. In addition, it also gives dearness and house rent allowances, medical reimbursement, provident fund, gratuity, superannuation benefits, etc.
A senior ONGC executive who did not wish to be identified said the company's human resources and legal departments were discussing the matter. "We are still reading the judgment and its implications in full. It may be a bit early to comment. I would not hazard a guess on the total outgo per employee at this stage," the executive said.
A former ONGC chairman and managing director said the apex court's judgment could set a precedent for other similar cases being fought by employees against companies and public sector undertakings in particular. "That is the real significance of this case. It may not mean much for ONGC in terms of total financial implication arising out of the back-date payments of salaries and benefits," he said on condition of anonymity.
