Why Punjab’s U-turn on new rural jobs scheme has triggered a political row

While the Congress and Shiromani Akali Dal (SAD) have accused the government of hypocrisy, the BJP has largely remained silent despite the state government’s earlier opposition to the Centre’s flagship rural employment programme, which replaced the decades-old MGNREGA on July 1.

Political fallout

Senior SAD leader Bikram Singh Majithia termed the termination notices as “the government’s most shameful, anti-employee and authoritarian act”.

Targeting Sond, Majithia accused him of attempting to shift the blame to the Centre. “ When the Centre provided 90% of MGNREGA funds and the state’s share was only 10%, why could the Punjab government not even arrange its own contribution? What is the point of making tall claims every day?” he asked while questioning the ann government’s U-turn on the scheme.

Read | Staff strike slows rollout of VB-G RAM G in Punjab as transition enters crucial phase

Terming the terminations as “politics of vendetta” Majithia said the same party which had promised to regularise employees and increase their salaries is now withholding their salaries and terminating them.

Punjab Congress president Amrinder Singh Raja Warring also condemned the arrests. “From lathi-charges to mass terminations and now arrests — this is the real face of the Mann government. I strongly condemn the detention of MGNREGA employees. Several district and block leaders, and the Ludhiana APO have been detained simply for demanding their legitimate rights. Police intimidation cannot silence workers fighting for their rights. The Punjab Congress stands firmly with every MGNREGA employee,” he said.

Employee unions lash out

The Mazdoor Mulazam Sangharsh Committee criticised what it described as repeated U-turns by the government.

“It is surprising that they have given agendas to the Gram Sabhas which show the height of desperation to implement VB-G RAM-G. First, they passed a resolution against VB-G RAM-G in the Punjab Assembly on December 30 last year and now they are asking Gram Sabhas to pass resolutions in its favour. It is the height of hypocrisy. They are under pressure to provide employment to the 26 lakh job card holders whose data has been transferred from MGNREGA to VB G-RAM-G,” said Tarsem Peter, president of Pendu Mazdoor Union Punjab.

In a joint statement, leaders of the Indian Federation of Trade Unions, Democratic Employees Federation, Rural Labour Union and Zameen Prapti Sangharsh Committee also expressed similar concerns.

“Prime Minister Narendra Modi had already deprived the working class of its right to strike by introducing the four Labour Codes. Instead of addressing the demands of MGNREGA employees, the Punjab government has embarked on a course that threatens their employment,” said Kashmir Ghuggshor of the Pendu Mazdoor Union.

The unions also alleged that salaries had been withheld for nearly six months to pressure employees into accepting the new arrangement.

How events unfolded

Even before the transition, contractual MGNREGA workers had been on strike since June 1, demanding regularisation in the Rural Development Department and release of pending salaries for five months, including June when they remained on strike.

On July 10, the Rural Development Department directed all deputy commissioners to get the work of the striking employees carried out through staff of the State Rural Livelihood Mission (SRLM).

Five days later, on July 15, police used tear gas, water cannons and lathis to disperse protesting employees near Rural Development Minister Tarunpreet Singh Sond’s residence in Khanna.

Following a meeting with employee representatives on July 16, Sond assured them that their demands would be looked into. However, the next day, the department issued notices directing the striking employees to resume duties by July 18 or face termination.

The employees refused to return to work and instead announced another protest in Khanna on Monday, this time along with their families.

On July 18, Sond wrote to Union Agriculture Minister Shivraj Singh Chouhan seeking regularisation of MGNREGA employees under the VB-G-RAM-G and a uniform national policy to protect their jobs.

On the same day, the Rural Development Department instructed deputy commissioners to convene Gram Sabha meetings across Punjab on July 19 to facilitate implementation of VB-G RAM-G.

The department also circulated the agenda for the Gram Sabhas, directing them to pass resolutions to commence works under VB-G RAM-G, approve village development works for 2026-27, generate muster rolls and record the attendance of job card holders.

On July 19, police rounded up several leaders of the MGNREGA Employees Union from their residences ahead of Monday’s proposed protest.

Mann’s minister defends stand

Sond on Saturday appealed to the Centre to regularise the employees and formulate a nationwide policy for their job security.

Addressing a press conference in Chandigarh, Sond said the Mann government stood firmly with MGNREGA employees, questioned the Centre over the VB G -RAM-G. “This is a very sensitive issue, and it is related to the Central government. However, the Congress, SAD and BJP in Punjab are trying to divert the issue and mislead people into blaming the Punjab government,” he said.

Sond said the scheme had been operational in Punjab for nearly 18 years and that the state government had no role in framing it. “The employees have made it clear that they do not want to shift to the new scheme because after serving for 18 years, they still have no certainty about regularisation. Their demand is justified,” Sond added.

The controversy has acquired another political dimension because under the new VB-G RAM-G framework, states are expected to bear a substantially higher financial burden, with Punjab required to contribute around 40% of wage costs, unlike the earlier funding arrangement.