LMC’s outsourced staff not getting ESIC, EPFO benefits: Karmchari sangh
Members have sent letters to the CM highlighting the issue, but there has been no action against the erring firms that have gobbled up over ₹200 crore of employees’ funds: Sangh president
LUCKNOW The Nagar Nigam Karmchari Sangh has alleged that 12,000 outsourced staff of the Lucknow Municipal Corporation (LMC) are not getting benefits under the ESIC, EPFO and LIC schemes and demanded a probe into the issue.
Around 36 firms are supplying manpower to the LMC, but none of them is following labour department and LMC norms, alleged Anand Varma, president of the sangh. Most of these employees are working in streetlights, rubbish removal and health department.
Sangh members have met the urban development minister and sent letters to the chief minister highlighting the issue, but there has been no action against the erring firms that have gobbled up more than ₹200 crore of employees’ funds, he alleged.
The companies took money from the LMC for depositing the benefits into the EPF, ESIC and LIC accounts of the employees, but did not do so. Some of the agencies have not even opened EPFO accounts of their employees. Despite the fraud, none of these firms has been blacklisted, added Varma.
Mayor Sushma Kharakwal said, “I have ordered an inquiry into the matter. The municipal commissioner will look into the issue.”
“Municipal authorities reported the matter to the EPFO in 2022. But these companies are still taking crores from the LMC,” said Congress corporator Mukesh Singh Chauhan.
He said these companies never maintain computerised database of their employees and also don’t submit details of employees provided to the LMC. “LMC officials hesitate in taking action against these companies because they belong to influential people,” alleged Chauhan.
However, municipal commissioner Inderjeet Singh said, “If any company has violated rules, it will have to pay back to employees. The LMC will not make any compromises on defending the rights of its workforce.”