ie report group 2_ section d

8/7/2019 IE report Group 2_ Section D

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IE Report by Group 2, Section D

REPORT ON CONDITIONS OF WORK

AND PROMOTION OF LIVELIHOODSIN THE UNORGANIZED SECTOR

Gopi Krishna (PGP/14/196)Yogiraj Khire (PGP/14/198)Pallavi Kumar (PGP/14/223)Praneeth Manduri (PGP/14/226)Rajiv Lakra (PGP/14/232)Satya Sekhar Babu (PGP/14/240)

Submitted to

Prof. Sthanu R Nair

By

Group 2, Section D


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Report on Unorganized sector working conditions and Promotion of livelihoods Page 2

Contents

Introduction: ................................ ................................ ................................ ................................ ..... 3

Definitions: ................................ ................................ ................................ ................................ ........ 3

Unorganized Sector: ................................ ................................ ................................ ...................... 3

Unorganized Workers: ................................ ................................ ................................ ................... 3

Relationship between Sector and Type of Employment ................................ ................................ ..... 4

Need for Uplifting the conditions of Workers ................................ ................................ ..................... 5

Unorganized Sector Non-agricultural Socio Economic Profile ................................ ......................... 6

Education Profile: ................................ ................................ ................................ .......................... 6

Socio Economic Profile of Agricultural Workers ................................ ................................ .............. 7

WHAT IS THE GOVERNMENT OF INDIA S STAND/POLICY TOWARDS THE WELFARE OF THEUNORGANIZED SECTOR? ................................ ................................ ................................ ................... 8

Central Laws for Un-organised Sector Workers: ................................ ................................ ......... 9

SKILL DEVELOPMENT PROGRAMMES: ................................ ................................ ...................... 10

MAJOR FINDINGS AND RECOMMENDATIONS OF THE COMMITTEE APPOINTED BY THE GOI ............ 10

RECOMMENDATIONS ................................ ................................ ................................ ............... 10

MINIMUM CONDITION OF WORK AND COMPREHENSIVE LEGISLATION ................................ ... 11

SOCIAL SECURITY ACT ................................ ................................ ................................ ...................... 12

MAIN FEATURES OF THE UNORGANISED WORKERS SOCIAL SECURITY ACT .............................. 13

IMPLEMENTATION HIRARCHY : ................................ ................................ ................................ 14

INTERNATIONAL PRACTICE ................................ ................................ ................................ .............. 14

ISSUES FOCUSED BY ILO ................................ ................................ ................................ ........... 15

SOCIAL CHARTER OF THE EUROPEAN UNION................................ ................................ ............ 16

EFFECT OF VOLUNTARY CODE OF CONDUCT AND ITS SUCCESS................................ ................. 17

BIBLIOGRAPHY ................................ ................................ ................................ ................................ . 18


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Introduction:

This report is focussed on the informal or the unorganized economy which accounts for an

overwhelming proportion of the poor and vulnerable population in otherwise shining India.

It concentrates on the conditions of work and lives of the unorganized workers consisting of

about 92 percent of total workforce of about 457 million (as of 2004 -05). For most of them,

conditions of work are utterly deplorable and livelihood options extremely few. At the end

of 2004-05, about 836 million or 77 percent of the population were livin g below Rs.20 per

day and constituted most of India s informal economy. About 79 percent of the informal or

unorganized workers belonged to this group without any legal protection of their jobs or

working conditions or social security, living in abject pov erty and excluded from all the glory

of a shining India.

Definitions:

Unorganized Sector: The unorganized sector consists of all unincorporated private

enterprises owned by individuals or households engaged in the sale and production of

goods and services operated on a proprietary or partnership basis and with less than ten

total workers.

Unorganized Workers: it consists of those working in the un organized enterprises or

households, excluding regular workers with social security benefits, and the workers in the

formal sector without any employment/ social security benefits provided by the emp loyers.


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Relationship between Sector and Type of Employment

Sector/Worker Informal Worker Formal Worker Total

1999-2000

Informal Sector 341.3 (99.6) 1.4 (0.4) 342.6 (100)

Formal Sector 20.5 (37.8) 33.7 (62.2) 54.1 (100)

Total 361.7 (91.2) 35.0 (8.8) 396.8 (100)

2004-05

Informal Sector 393.5 (99.6) 1.4 (0.4) 394.9 (100)

Formal Sector 29.1 (46.6) 33.4 (53.4) 62.6 (100)

Total 422.6 (92.4) 34.9 (7.6) 457.5 (100)

All figures in millions and figures in brackets are percentages.

What can be inferred from the above table?

From the above table we can infer that the entire increase in the employment in the

organized sector over this period has been informal in nature that means without any job or

social security. This can be termed as informalisation of the formal sector.


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Thus, the categories of workers who comprise unorganized workers are the following

Broad Classification of workforce is Agricultural workers and Non-Agricultural workers and

around 70 percent of workers are agricultural.

Need for Uplifting the conditions of Workers

Status Total Self employed Regular workers Casual workers

Poor and

Vulnerable

78.7 74.7 66.7 90.0

Higher Income

Group

21.3 25.3 33.3 10.0

Total 100 100 100 100

Wage Worker

Any person employed for remuneration in the unorganised sector, directly by anemployer or through any contractor, irrespective of place of work

Home Based Worker

Any person engaged in the production of goods or services for an employer in his orher home or other premises of his or her choice other than the workplace of theemployer

Self Employed Worker

Any person who is not employed by an employer, but engages himself or herself in any

occupation in the unorganised sector


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Unorganized Sector Non-agricultural Socio Economic Profile

Land Holdings: Majority of the wage and self employed workers in rural non agricultural

unorganized sector are landless and sub -marginal land-holders

Socio-religious groups: The other dimension that vulnerability introduced is by the socio-

religious groups to which the workers belong. While the SC and ST populations are

protected, to some extent by affirmative action. Muslims are overwhelmingly concentrated

in unorganized sector and in self-employed activities to meet their livelihood needs.

Education Profile:

Educational Level Male Female Total Male Female Total

Agricultural Labors Farmers

Illiterate& Below

Primary

65.9 85.5 74.1 45.7 74.0 57.5

Primary 15.7 7.5 12.3 16.2 10.8 14.0

Middle 13.3 5.3 10.0 18.9 9.5 15.0

Secondary 3.7 1.2 2.6 10.3 3.9 7.6

HS & Above 1.5 0.4 1.0 8.9 1.9 6.0

Total 100.0 100.0 100.0 100.0 100.0 100.0


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The average years of education received by the workers in the unorganized sector (6.6

years) is about 3.5 years less than that received by workers in the organized sector (10.1

years). Women received fewer years of schooling than men in all segments of the

workforce. Further, the difference among organized and unorganized women workers was

even great, about 4.4 years.

Socio Economic Profile of Agricultural Workers

Conditions of Farmers

Farmers' Suicides

Indebtedness was the most prominent

Dependence on informal sources of credit

Illiterates

Small and marginal farmers

Poor access to formal sources of credit

Fail to overcome seasonal variations

Frequent price shocks

Vicious circle of indebtedness

High investments in modern inputs and labor. Due to because of

Green Revolution

Increased liberalization and globalization

Increased credit needs

Tenancy issues


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No access to any source of information

E.g.: Krishi Vigyan Kendra

Farmers do not have access to debt relief

No help from government when they become insolvent

So, by looking into socio economic profile of all workers there is a definite need to uplift

their living conditions.

GOVERNMENT OF INDIA S STAND/POLICY TOWARDS THE WELFARE OF THE

UNORGANIZED SECTOR

The Fundamental Rights guaranteed by the Constitution prohibit exploitation&

discrimination of labor and also right to form Unions. The Directive Principles of the

Constitution (Part IV) lays down goals and the direction of State Policy.

Central Laws for Un-organised Sector Workers:

Central laws, which regulate conditions of work in the un -organized sector fall into three

groups.


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First set (Laws which apply to all sections of the un-organized sector Labor)

1. The Eq ual Remuneration Act, 1976

2. The Bonded Labor System (Abolition) Act, 1976

Second set (Laws which apply to some sections of the un-organized sector Labor)

3. Minimum Wages Act, 1948

4

Child Labor (Prohibition and Regulation) Act, 1986

5

Dangerous Machines (Regulation) Act, 1983

6 Inter-State Migrant Workmen (Regulation of Employment and Conditions of

Service) Act, 1979

7 Trade Unions Act, 1926

Third set (Laws which can be extended to the Unorganized Sector)

8.

The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

9.

Payment of Wages Act, 1936

10.

The Contract Labor (Regulation & Abolition) Act, 1970


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SKILL DEVELOPMENT PROGRAMMES :

y Craftsmen Training Scheme (CTS),

y Employment (DGET) 2. Apprenticeship Training Scheme (ATS),

y Short -term Courses based on Modular Employable Skills (MES)

MAJOR FINDINGS AND RECOMMENDATIONS OF THE COMMITTEE

APPOINTED BY THE GOI

Findings

Potential of agriculture sector to take up the incremental work force has fallen.

Technological changes and change in farming practices in agriculture looks to be restricting

the range of women employment.

86% of insignificant and small farmers function around 43% of agriculture land while 14% of

medium and large farmers function approximately 37% of land

Size of land does not assist decrease paucity but there are other factors like social

networking and education that cause them indecent use of their land

Potential of agriculture sector to soak up the incremental work force has fallen.

Price rise and fall and increased used of bought inputs and mechanization has amplified the

cost of cultivation

Expenditure levels of farmers are elevated that their income so they are incapable to meet their

utilization need and depend in borrowing


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RECOMMENDATIONS

Report has alerted on three important foundation in the field of education, health and

sanitation and housing

Government should place the highest precedence on the poor and week and make sure

these groups are effectively compensated whenever their livelihood are in jeopardy by

precise policy, law and regulations

The land acquisition act remunerated loss of assets it should pay costs the loss of livelihood

Alternative livelihood should be provided to the affected poor

Priority sector credit must be available to this sector and other needy sector

Formation of National Fund for the unorganized sector (NAFUS)

Main purpose of NAFUS is not only better admittance to credit of farms and nonfarm

enterprises alone but to profit from the area of marketing, technology, and skills and

entrepreneurship and capacity building

At present there is no zenith institution or crucial point in country or in the state which can

take holistic view of growth related to the informal sectors of the economy

In the eleventh plan period, the govt should revitalize a targeted program focusing on small

and marginal farmers with an preliminary thrust on areas where the accessible yield gap is

also measured to be high


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SOCIAL SECURITY ACT

On the basis of above recommendations social security bill was passed and act was enacted

MAIN FEATURES OF THE UNORGANISED WORKERS SOCIAL SECURITY ACT

y The bill covers the entire country and all workers in the unorganized sector with the

monthly income of Rs 5,000 and below.

y It covers self-employed workers, including small and marginal farmers, wage workers

and home-based workers, as well as informal workers in the organized sectors

without any social security cover.

y The social security package for the workers will comprise of a national minimum

social security cover comprising of

o old age pension for workers above the age of 60 years,

o health insurance for self, spouse and children below the age of 18 years,

o maternity benefits for women workers or spouse of men workers and

o Insurance to cover death and disability arising out of accidents.

y The act will require workers to register themselves to attain the benefits.


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y The bill does not seek to replace the social security schemes, which have been

introduced for selected groups in a number of states. These schemes will continue as

before.

y The bill also states that the central government or any state government may frame

additional social security schemes for unorganized workers in the areas of provident

fund, housing, skill up-gradation, education, funeral assistance, etc, if the required

funds are available.

y FUNDING : The central government will create a National Social Security Fund, from

the contribution of grants and loans, contribution from workers, employers and the

state government, any tax or cess that the central government may decide to

impose, contributions from national financial/ development institutions and from

voluntary contributions of individuals and institutions. The contributions from the

worker will be Re 1 per day (central government will make this payment for those

below the poverty line), from the employer it will be Re 1 per worker per day (this

contribution will be made by the central government if the employer is not

identifiable) and from the government it will Re 1 per worker per day (Re 0.75 from

the central government and Re 0.25 from the concerned state government).


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IMPLEMENTATION HIRARCHY:

I. At the central level, there will be national social security board, supported by

a general council and an executive council. There will be a secretariat with

adequate professional and other staff to help the national board.

II. At the state level there will be a state social security board, which will be

supported by a state level general council and a state level executive council.

There will also be a secretariat to help the state board.

III. There will be a district committee for the registration of works and

implementation, supported by workers facilitation centers responsible for

disseminating information and implementation of the act.

IV. The delivery of social security to workers will be done either through

workers organizations or directly through any other organizations (like

panchayat bodies, self-help groups, trade unions, etc) that the concerned

state boards decide.

V. The workers facilitation centers will provide all the required support to the

state boards in the implementation of the act.

y Every unorganized sector worker above 18 years of age will be eligible for

registration through self-declaration for registration.

INTERNATIONAL PRACTICEy Deliberations and conventions of the International Labor Organization , which is

the pivotal multi-lateral organization dealing with issues pertaining to workers


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y The ILO, in its International Labor Conference, June 1998 adopted the

Declaration on Fundamental Principles and Rights at Work

ISSUES FOCUSED BY ILO

Right to collective bargaining

Elimination of all forms of forced or compulsory labor

Effective abolition of child labor and minimum age

Elimination of discrimination in respect of employment and occupation,

equal remuneration

x Only three have been ratified by India relating to forced labor, equal

remuneration and discrimination

S.No Parameter Practice

1 Minimum wagesFollowed by all OECD countries but in Canada

minimum wages varies across jurisdictions

2 Hours of Work

38-40 hours per week in the OECD countries

except in the UK and the US which do not limit

the hours of work

3 Rest days and holidays All countries follow the specifications

4 Minimum Age of Work 15-16 years


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BIBLIOGRAPHY

y Report on Unorganized Sector by NCEUS

y Report on Social Security Bill, 2007

y Business Line e report

y Report on Women Workers by Sardi

y Report on India Wages

y Report on Wage Fixation by SEWA academy

y Wikipedia

y www.sciencedirect.com

y http://www.ilo.org/global/lang--en/index.htm

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