Sri Vijaya Puram, Oct. 29: CITU’s Andaman and Nicobar State Committee has urged the Union Territory Administration to review its outsourcing policy, alleging that contractors have underpaid workers, denied leave and imposed working hours exceeding eight hours while handling regular government functions. In a letter to Chief Secretary B. Chandrachoodan, the trade union called for departments to recruit workers directly, citing alleged labour law violations, worker exploitation and the additional costs associated with outsourcing.
CITU General Secretary B. Chandrachoodan said the Administration had increasingly outsourced regular work over the past three years, replacing the earlier practice of engaging workers directly on casual or contractual terms. According to the union, almost all departments have adopted outsourcing for routine functions as well as work under centrally sponsored schemes.
The union alleged that contractors had failed to pay workers the wages fixed by the Labour Commissioner, even though the departments concerned paid the corresponding amounts to the contractors. It also said workers faced restrictions on leave and had to work beyond eight hours. CITU further claimed that contractors could dismiss workers on arbitrary grounds, leaving them vulnerable to decisions over which they had little control.

The letter also questioned the effectiveness of labour enforcement, alleging that the Labour Department had failed to adequately regulate contractors or act against reported violations. The union said these conditions had enabled widespread exploitation of workers engaged in government assignments.
Beyond labour conditions, CITU argued that outsourcing regular government work could cost the Administration more than directly employing workers. It claimed contractors charged commissions ranging from 5% to 10% of the total outsourcing amount, with rates varying across departments and depending on competition among bidders.
The union said the arrangement undermined the government’s responsibility to provide statutory benefits and working conditions that protect workers from exploitation. It also argued that outsourcing deprived educated young people in the islands of opportunities for dignified employment through direct recruitment.

CITU has asked the Chief Secretary to reconsider the existing policy and direct the departments concerned to recruit workers themselves. The proposed change, according to the union, would reduce workers’ dependence on contractors, address alleged labour violations and expand employment opportunities for unemployed youth in the islands.
The allegations and cost claims were made by CITU in its representation to the Administration; the letter does not provide a response from the authorities.


