India, July 23 -- Following an almost two-month-long dispute with the Brihanmumbai Municipal Corporation (BMC) over the proposed privatisation of waste collection and transportation in the city, thousands of motor loaders-those who tip garbage into compactors-on Tuesday called off their impending strike after getting assurances from the civic body that no jobs will be lost, according to union leaders.

The BMC will now proceed with its proposal to hire private contractors, with 24 companies showing interest, officials aware of the developments said. The move will purportedly save the civic body Rs.160 crore every year.

Motor loader unions had a meeting with the BMC on Tuesday, following several protests over the last couple of months and...