Niyamath Parveez

All about Outsourcing

Outsourcing life is better on the buses

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One of the key factors in using an outsourcing firm is the fact that as well as the employees, they can bring a great number of services, products and infrastructure benefits to the agreement as well. In cash strapped times, this ability is something that greatly appeals to the firm looking to outsource. This can be seen in a recent example in Chandigarh where the Chandigarh Transport Undertaking (CTU) look set to outsource their labor requirements.

As well as the staffing issues that come with it, part of the tendering list has raised the issue of the outsourcing firm replacing the buses that are currently being used. A new fleet of vehicles will greatly improve the service offered by the CTU and should be of benefit to the commuters and passengers who use the service on a regular basis. It is quite probably that the current regime would not have the money to fully restock their bus fleet but by making it part of the outsourcing arrangement, it is a service that can be rolled out sooner than you would expect.

Whilst this news is expected to be welcomed by the public of the local region, the trade union group for the CTU is up in arms and has voiced their displeasure about this outsourcing move. It is very clear to see why trade unions are opposed to outsourcing as it means a loss of jobs for their members but more importantly for the people who run it, a loss of power for themselves. In many countries where trade unions still have a lot of power and are capable of causing great difficulties for a firm, there has been an acceptance that utilizing outsourcing can provide great assistance in diluting the power of trade unions. Trade union members are clearly opposed to any such action but with the current financial crisis facing the world, firms are looking to cut back on all costs and using outsourcing can help them on many levels.

With bus driver and conductors roles being placed under the spotlight by this decision to outsource the staffing of the CTU, there is no doubt that there is a lot of jobs at stake. With 100 new buses looking to be introduced in the near future, this accounts up to 200 new staff members but with part-time, shift work and contractual obligations, it is likely that a total of 250 people will be hired by the firm who wins the outsourcing contract.

Although many of the current workers will likely find employment with the new outsourcing firm, who will be keen to use their experience and skills to maintain a good standard of work, it is likely that the contract hours and overall terms of pay will be lower than what they were previously on. However, with the choice of reduced pay or no job at all, it is likely that most staff members will sign up for the outsourcing firm, which is an issue that causes discomfort and displeasure to the trade unions and general public.

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