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Should Bangladesh nationalize its outsourced workforce?

  • An outsourced employee is not employed directly by the government
  • Unlike other employees, they are paid on a daily basis
  • Currently, there are five categories of outsourced employees
  • Institutions are authorized to pay them between Tk16,130 and Tk19,110
Update : 20 Oct 2024, 08:00 AM

Outsourced workers from various government institutions blocked roads at the Shahbagh intersection in the capital yesterday, demanding the nationalization of their jobs.

The protesters left Shahbagh after issuing a 15-day ultimatum to the government.

Anisur Rahman, president of the Outsourcing Employees Association, stated, “If no visible steps are taken to meet our demands, we will be forced to launch more stringent actions.”

What is an outsourced employee?

An outsourced employee for a government organization is not employed directly by the government. Unlike other employees, they are paid on a daily basis.

Rahel Raihan, an outsourced employee of the Department of Women’s Affairs, explained, “Since the job is temporary, we live in uncertainty. We can be dismissed at any time.”

The Finance Division introduced an outsourcing policy in 2008, which was amended in 2018 to include more detailed guidelines.

Under this policy, government institutions are not required to create a permanent 'post' to hire outsourced employees, nor can they outsource employees for official positions.

A Finance Division official, speaking on condition of anonymity, told Dhaka Tribune: “A government institution contracts another organization for a temporary period to facilitate operations. That is the rationale behind the outsourcing policy.”

Institutions can account for expenses on outsourced employees or organizations under their non-consulting services budget.

Photo: Ahadul Karim Khan/Dhaka Tribune

Outsourced employees work in various roles, such as security guards, cleaning and gardening staff, transportation services, electronics and mechanical workers, cooks, hostel and club staff, housekeeping, hospital services, and operators of lifts, pumps, generators, projectors, air conditioners, postal services, and plumbing services, among others.

Currently, there is no defined number of outsourced employees. Several ministries were contacted by Dhaka Tribune, but officials could not provide exact figures.

Are the demands justified?

In the afternoon, a delegation met with the chief adviser and his press secretary.

Anisur Rahman said, “The press secretary informed us that either a separate reform commission will be formed to address our issues or the existing reform commission will provide a solution.”

Mahmudul Hossain Khan, Secretary of Coordination and Reform, told Dhaka Tribune: “We have not received any new instructions yet. If the government decides to take action, we will implement it.”

Protest_Amdad

Zonayed Saki, chief coordinator of the Ganasamhati Andolon, remarked that the protesters' demands are reasonable. Speaking to Dhaka Tribune, he said, “There is a government policy for direct recruitment of employees in government projects and autonomous organizations, which does not require third-party contractors. However, due to connections between bureaucrats and contractors, this discriminatory system persists.”

Salary Delays and Job Insecurity

Third-party contractors are companies that win tenders from the government or autonomous organizations for various projects and labor management. They hire employees and facilitate salary payments through their channels, not directly from the government or organization. According to regulations, they are required to pay salaries, bonuses, and other benefits according to the government salary structure. However, protesters allege significant salary discrepancies in what they are entitled to.

Outsourced employees have raised several complaints. They claim that many workers lose their jobs due to tender complications. When one contractor loses a contract and another takes over, employees often lose their positions.

As a result, affected workers sometimes feel pressured to bribe the new contractor to keep their jobs, as the new contractor has the authority to hire as they see fit. Additionally, these employees have no legal right to retain their jobs if the contractor does not want to keep them.

In June, large sums of money were demanded as bribes for job renewals. Workers who refused to pay faced job losses. Protesters also complained that salaries are not paid monthly; in some cases, payments are delayed for five to six months, or even as long as one to two years.

Masum, an employee in the Rajshahi Engineering Department, told Dhaka Tribune: “We work on a contract basis through different contractors. They say we are doing government jobs, but we are not. Contractors take a large portion of our salaries. We want direct employment with the government, not through contractors.”

Sohel, a driver with the Department of Agricultural Extension, said: “We are recruited by a company. The government hires manpower through tenders, but after recruitment, the company deducts a portion of our salaries. We work hard, but they take a share. That's why those of us who have been working in government organizations for 8–10 years as gardeners, drivers, and peons want to end outsourcing and secure permanent employment.”

BIWTA outsourced employee Mohammed Hasnain said: “Kill us or meet our demands. I have not received my salary for the last six months, even though I work at the same level as the permanent employees. We are victims of discrimination despite having the same abilities, skills, and work ethic. My colleagues receive their salaries, allowances, and holidays, but I have no guarantee of how my family will survive.”

Photo: Emdad Eamin/Dhaka Tribune

Hasnain added that the salary scale for outsourced employees is set similarly to that of permanent employees, but their payments are delayed, and contractors take a commission. Furthermore, their jobs are not secure.

Protesters fear that if their jobs are not made permanent, they could lose them at any time. They believe job stabilization is the only solution.

How much will it cost to nationalize them?

Currently, there are five categories of outsourced employees. Institutions are authorized to pay them between Tk16,130 and Tk19,110 based on their job location and category.

If the government nationalizes these employees, they will receive salaries under the national pay scale, placing them in Grades 17 to 20, where the basic salary ranges from Tk14,450 to Tk15,800, plus additional allowances.

In addition to salaries, government employees receive other benefits such as pensions. If the government decides to nationalize outsourced employees, it will have to fund these benefits as well.

This financial year, the government is projected to spend Tk87,700 crore on salaries for government employees. This figure does not include the salaries of outsourced employees, as individual institutions fund these through their consulting services budget. The exact cost of nationalizing outsourced employees remains uncertain.

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