Uttar Pradesh's power sector employees have capitulated to government pressure, canceling their planned indefinite strike against privatization after electricity corporations issued mass termination notices. The May 29 work stoppage - protesting the selloff of Purvanchal and Dakshinanchal distribution companies - collapsed when authorities invoked the Essential Services Maintenance Act (ESMA) and individually targeted 500 engineers with disciplinary warnings.
The administration's contingency measures reveal the extent of their preparation: 7,000 outsourced workers stood ready alongside 2,000 hastily-trained polytechnic students as potential strike-breakers. While the United Power Employees' Joint Front claimed consumer welfare concerns motivated their retreat, the surrender follows systematic intimidation tactics including threats to employee promotions and benefits.
Parallel legal challenges now question the privatization's legitimacy. The State Electricity Consumers Council has petitioned the regulatory commission, alleging financial irregularities in the valuation process and improper use of Section 131 of the Electricity Act 2003. Documents show the government authorized the selloff without required independent financial audits, while worker groups warn of impending tariff hikes mirroring Odisha and Mumbai's experiences post-privatization.
The failed labor action exposes worsening government-worker relations in UP's public sector, with employee unions claiming the ESMA has effectively nullified collective bargaining rights. As the state pushes forward with privatization, concerns mount about both service reliability in impoverished Bundelkhand and the precedent set by using student labor to undermine labor actions.