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Court restrains Centre, AAI in privatisation case

In the present case, the existing employees cannot be compelled to work under the private employer.

Chennai: The Madras high court has restrained the Union government and Airports Authority of India (AAI) from proceeding any further with regard to the request for qualification (RFQ) invited from private parties for the management of Chennai airport, dated September 3, 2013, together with all addendum.

Justice R. Subbiah also ordered notice, returnable by February 5, to the Union government and AAI on a petition filed by Airport’s Authority Employees’ Union by its president S.R. Santhanam.

Senior counsel V. Prakash, appearing for the petitioner, submitted that the union was questioning the validity of the decision of the authorities to privatise Chennai airport - both national and international - and the legality of the decision was challenged only on the ground that it was ultra vires and not on the basis of wisdom of the policy.

The decision to entrust the operation and management of Chennai airport as visualised in the RFQ published was beyond the scope of the provisions of the AAI Act.

If the management of the airport was entrusted with the private party, it would require engagement of personnel for the effective management of the airport. Members of the petitioner union were already performing the functions.

Though the petitioner union was a recognised and the authorities were obliged to discuss with it all matters that affect the service conditions and future of the employees, the authorities have failed to do so violating internationally and nationally accepted norms which mandates that the recognised union be involved in the decision-making proc­ess, to ensure the employees were not adversely affected.

In the present case, the existing employees cannot be compelled to work under the private employer.

Neither the union nor the individual employees have giv­en consent for such tran­sfe­r in future.

Ther­efore, the ex­i­sting strength will rem­ai­n and the proposed pri­va­te body will bring in its e­m­p­loyees and thereby a situ­at­ion of redundancy w­ill be­ created, Prakash a­d­­d­­ed.

He said the so-called privatisation measure was to substitute directly paid permanent employees on the rolls with secured conditions of service, with precarious labour under insecure conditions of service and in exploitative condition.

The impugned decision has to be seen in the light of the privatisation experience that the nation had to go through as also the members of the petitioner union in the case of Delhi, Mumbai, Bangalore and Hyderabad airports.

Process delayed again

S. Sujatha | DC

Chennai: With the Madras High Court on Wednesday restraining the Union government and Airports Authority of India (AAI) from proceeding further with regard to the RFQ inviting private parties for the management of the airport, the Chennai airport privatisation process, already postponed for the last four months, is likely to be delayed further, feel AAI officials.

“It is a clear deterrent to the privatisation process. The impact will surely be seen,” said Anuj Aggarwal, who heads the key infrastructure development cell of AAI, which is instrumental in executing the PPP process in identified airports.

When asked about AAI’s reaction to the co­urt order, Aggarwal sai­d they would take a ca­ll after discussing with th­e civil aviation ministry.

While AAI planned to complete the first (qualification) stage of the bid process by February-end, after it postponed the date for submission of application to February 17 on Monday, the Wednesday’s interim order might further delay the process, as the ministry might not be able to proceed with awarding the bid once the Lok Sabha elections are announced.

( Source : dc )
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