BENGALURU: More than 700 large factories across the state will benefit from a Supreme Court order that allows contract workers to work in factory canteens. The Karnataka Employers’ Association, that comprises owners of factories, businesses and establishments, has won a victory against certain provisions laid down on canteen workers, which said that factories cannot employ contract workers in canteens.
The Supreme Court dismissed a petition by the workers and worker unions, and said contract workers will be allowed in factory canteens. The relevant sections of the Factories’ Act had said that factories and manufactories with a workforce of 250 would have to mandatorily set up an on-site canteen for workers, but in 1997, had ensured that larger factories could not do so because the government rule banned hiring of contract labour in canteens.
While many of the factories hired the workers as permanent staff, about 40 factories decided to challenge the state government order. They did not receive the expected encouragement from the High Court in 1998, and approached the Supreme Court.
In 2011, the Karnataka Employers’ Association led by B C Prabhakar challenged the order of the state government. They were joined by entrepreneurs and trade body representatives from FKCCI, BCIC and CII among others, and said the Act could have a bearing on investments, because states around Karnataka had no such restriction.
In the interim period, although labour unions challenged this order, the high court in 2011 was convinced that contract labour being allowed in these canteens was fine as per law. A seesaw legal battle ensued, with arguments and counter-arguments, and the Employers’ Association prevailed in the end. They can now operate their canteens with contract staff or outsource the work entirely.