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Trade union pushes for law to regularise outsourced power sector workers

Labour activists are demanding legislative action to address the widespread use of contract workers in India's power sector, accusing the government of exploiting casual employees for permanent roles.

LSN India · 11 September 2026

Trade union pushes for law to regularise outsourced power sector workers

A senior trade union leader has called for urgent legislation to regulate the employment of outsourced and contract workers in the power sector, arguing that government departments are systematically misusing casual labour for positions of a permanent nature.

S. Varalakshmi, state general secretary of the Centre of Indian Trade Unions (CITU) and honorary president of the Karnataka State Electricity Workers' Federation, raised concerns that the government—which should serve as a model employer—is instead perpetuating exploitative labour practices across its power utilities.

The issue reflects a broader challenge in India's power sector, where contract workers often perform the same duties as permanent employees but without comparable benefits, job security, or statutory protections. Union leaders argue that such arrangements undermine worker welfare while creating an unlevel employment landscape.

Advocates for worker regularisation contend that legislative measures are essential to ensure fair treatment and standardised working conditions across the power sector. The push for regulation comes amid growing recognition of the precarious situation faced by millions of contract workers across India's public and private enterprises.

The demands align with broader labour reform discussions in several Indian states, where governments have grappled with balancing fiscal constraints against mounting pressure to formalise the employment status of contract workers.