Introduction

This study is focussed on the informal or the unorganised economic system which accounts for an overpowering proportion of the hapless and vulnerable population in otherwise reflecting India. It concentrates on the conditions of work and lives of the unorganised workers dwelling of about 92 per centum of entire work force of about 457 million ( as of 2004-05 ) . For most of them, conditions of work are utterly distressing and support options highly few. At the terminal of 2004-05, about 836 million or 77 per centum of the population were populating below Rs.20 per twenty-four hours and constituted most of India ‘s informal economic system. About 79 per centum of the informal or unorganised workers belonged to this group without any legal protection of their occupations or working conditions or societal security, populating in low poorness and excluded from all the glorification of a reflecting India.

The UPA authorities is steadfastly committed to guarantee the public assistance and wellbeing of all workers, peculiarly those in the unorganised sector. In order to carry through the above committedness, the Government of India, among other steps, constituted a National Commission for Enterprises in the Unorganized Sector ( NCEUS ) .

Definitions by NCEUS on Unorganized Sector and Unorganized Workers

Unorganized Sector: The unorganised sector consists of all unincorporated private endeavors owned by persons or families engaged in the sale and production of goods and services operated on a proprietorship or partnership footing and with less than 10 entire workers.

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Unorganized Workers: it consists of those working in the un organized endeavors or families, excepting regular workers with societal security benefits, and the workers in the formal sector without any employment/ societal security benefits provided by the employers.

Relationship between Sector and Type of Employment

Sector/Worker

Informal Worker

Formal Worker

Entire

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 )

Entire

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 )

Entire

422.6 ( 92.4 )

34.9 ( 7.6 )

457.5 ( 100 )

All figures in 1000000s and figures in brackets are per centums.

What can be inferred from the above tabular array?

From the above tabular array we can deduce that the full addition in the employment in the organized sector over this period has been informal in nature that means without any occupation or societal security. This can be termed as informalisation of the formal sector.

Therefore, the classs of workers who comprise unorganised workers are the following

Broad Classification of work force is Agricultural workers and Non-Agricultural workers and about 70 per centum of workers are agricultural.

Need for Elating the conditions of Workers

Status

Entire

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

Entire

100

100

100

100

Unorganized Sector Non-agricultural Socio Economic Profile

Land Retentions: Majority of the pay and self employed workers in rural non agricultural unorganised sector are landless and sub-marginal land-holders

Socio-religious groups: The other dimension that exposure introduced is by the socio-religious groups to which the workers belong. While the SC and ST populations are protected, to some extent by affirmatory action. Moslems are overpoweringly concentrated in unorganised sector and in freelance activities to run into their support demands.

Education Profile:

Educational Degree

Male

Female

Entire

Male

Female

Entire

Agricultural Labors

Farmers

Illiterate & A ; 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 & A ; Above

1.5

0.4

1.0

8.9

1.9

6.0

Entire

100.0

100.0

100.0

100.0

100.0

100.0

The mean old ages of instruction received by the workers in the unorganised sector ( 6.6 old ages ) is about 3.5 old ages less than that received by workers in the organized sector ( 10.1 old ages ) . Women received fewer old ages of schooling than work forces in all sections of the work force. Further, the difference among organized and unorganised adult females workers was even great, approximately 4.4 old ages. Casual workers have lower old ages of instruction and higher illiteracy. They are at the underside of the instruction ladder.

Finally the labor market position and its features have its impact on good being and poorness. All these speaks that there is a demand for elating their conditions.

Socio Economic Profile of Agricultural Workers

Conditionss of Farmers

Farmers ‘ Suicides

Indebtedness was the most outstanding

Dependence on informal beginnings of recognition

Illiterates

Small and fringy husbandmans

Poor entree to formal beginnings of recognition

Fail to get the better of seasonal fluctuations

Frequent monetary value dazes

Barbarous circle of liability

High investings in modern inputs and labour. Due to because of

Green Revolution

Increased liberalisation and globalisation

Increased recognition demands

Occupancy issues

No entree to any beginning of information

E.g. : Krishi Vigyan Kendra

Farmers do non hold entree to debt alleviation

No aid from authorities when they become insolvent

So, by looking into socio economic profile of all workers there is a definite demand to elate their life conditions.

WHAT IS THE GOVERNMENT OF INDIA ‘S STAND/POLICY TOWARDS THE WELFARE OF THE UNORGANIZED SECTOR?

The Fundamental Rights guaranteed by the Constitution prohibit development & A ; favoritism of labour and besides right to organize Unions. The Directing Principles of the Constitution ( Part IV ) lays down ends and the way of State Policy.

Central Laws for Un-organised Sector Workers:

Central Torahs, which regulate conditions of work in the un-organized sector autumn into three groups.

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

The Equal Remuneration Act, 1976

The Bonded Labor System ( Abolition ) Act, 1976

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

Minimum Wages Act, 1948

Child Labor ( Prohibition and Regulation ) Act, 1986

Dangerous Machines ( Regulation ) Act, 1983

Inter-State Migrant Workmen ( Regulation of Employment and Conditions of Service ) Act, 1979

Trade Unions Act, 1926

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

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

Payment of Wages Act, 1936

The Contract Labor ( Regulation & A ; Abolition ) Act, 1970

SKILL DEVELOPMENT PROGRAMMES:

Many accomplishment development programmes are undertaken by the authorities to develop unorganised sector workers. Some of the strategies are given below, remainder available in beginning given below

Craftsmans Training Scheme ( CTS ) ,

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

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

Major findings and recommendations of the Committee appointed by the GoI

Findingss

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

Technological alterations and alteration in farming patterns in agribusiness looks to be curtailing the scope of adult females employment.

86 % of undistinguished and little husbandmans function around 43 % of agribusiness land while 14 % of medium and big husbandmans function about 37 % of land

Size of land does non help lessening dearth but there are other factors like societal networking and instruction that cause them indecorous usage of their land

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

Price rise and autumn and increased used of bought inputs and mechanisation has amplified the cost of cultivation

Outgo degrees of husbandmans are elevated that their income so they are incapable to run into their use demand and depend in borrowing

Recommendations

Report has alerted on three of import foundation in the field of instruction, wellness and sanitation and lodging

Government should put the highest precedency on the hapless and hebdomad and do certain these groups are efficaciously compensated whenever their support are in hazard by precise policy, jurisprudence and ordinances

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

Alternate support should be provided to the affected hapless

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

Formation of National Fund for the unorganised sector ( NAFUS )

Main intent of NAFUS is non merely better entree to recognition of farms and nonfarm endeavors entirely but to gain from the country of selling, engineering, and accomplishments and entrepreneurship and capacity edifice

At present there is no zenith establishment or important point in state or in the province which can take holistic position of growing related to the informal sectors of the economic system

In the 11th program period, the govt should regenerate a targeted plan focussing on little and fringy husbandmans with an preliminary push on countries where the accessible output spread is besides measured to be high

In demand of attending should be given to enlargement of the watershed development plans and rain fed country plan in the state to regenerate agribusiness on which a big Numberss of the rural hapless are dependent

Minimal status of work and comprehensive statute law

8 hr work with half hr interruption

One paid twenty-four hours of remainder per hebdomad

National lower limit pay for all

Women work to be paid on par

Delayed payment of rewards attract punishment

Tax write-off of rewards attract mulcts

Right to form

Non favoritism

Safety equipment and compensation on accident

Protection from sexual torment

Provision of kid attention and basic idiocy at workplace

Social Security Act

On the footing of above recommendations societal security measure was passed and act was enacted

MAIN FEATURES OF THE UNORGANISED WORKERS ‘ SOCIAL SECURITY ACT

The measure covers the full state and all workers in the unorganised sector with the monthly income of Rs 5,000 and below.

It covers freelance workers, including little and fringy husbandmans, pay workers and home-based workers, every bit good as informal workers in the organized sectors without any societal security screen.

The societal security bundle for the workers will consist of a national minimal societal security screen comprising of

old age pension for workers above the age of 60 old ages,

wellness insurance for ego, partner and kids below the age of 18 old ages,

pregnancy benefits for adult females workers or partner of work forces workers and

Insurance to cover decease and disablement originating out of accidents.

The act will necessitate workers to register themselves to achieve the benefits.

The measure does non seek to replace the societal security strategies, which have been introduced for selected groups in a figure of provinces. These strategies will go on as earlier.

The measure besides states that the cardinal authorities or any province authorities may border extra societal security strategies for unorganised workers in the countries of provident fund, lodging, skill up-gradation, instruction, funeral aid, etc, if the needed financess are available.

Support: The cardinal authorities will make a National Social Security Fund, from the part of grants and loans, part from workers, employers and the province authorities, any revenue enhancement or Ce that the cardinal authorities may make up one’s mind to enforce, parts from national financial/ development establishments and from voluntary parts of persons and establishments. The parts from the worker will be Re 1 per twenty-four hours ( cardinal authorities will do this payment for those below the poorness line ) , from the employer it will be Re 1 per worker per twenty-four hours ( this part will be made by the cardinal authorities if the employer is non identifiable ) and from the authorities it will Re 1 per worker per twenty-four hours ( Re 0.75 from the cardinal authorities and Re 0.25 from the concerned province authorities ) .

IMPLEMENTATION HIRARCHY:

At the cardinal degree, there will be national societal security board, supported by a general council and an executive council. There will be a secretariat with equal professional and other staff to assist the national board.

At the province degree there will be a province societal security board, which will be supported by a province degree general council and a province degree executive council. There will besides be a secretariat to assist the province board.

There will be a territory commission for the enrollment of plants and execution, supported by workers facilitation centres responsible for circulating information and execution of the act.

The bringing of societal security to workers will be done either through workers ‘ organisations or straight through any other organisations ( like panchayet organic structures, self-help groups, trade brotherhoods, etc ) that the concerned province boards decide.

The workers facilitation centres will supply all the needed support to the province boards in the execution of the act.

Every unorganised sector worker above 18 old ages of age will be eligible for enrollment through self-declaration for enrollment.

Constitution of a National Board to sporadically reexamine the advancement of execution of the Bill and besides suggest recommendations for betterment to the Government.

International Practice

Deliberations and conventions of the “ International Labor Organization ” , which is the polar multi-lateral organisation covering with issues refering to workers

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 signifiers of forced or mandatory labour

Effective abolishment of child labour and minimal age

Elimination of favoritism in regard of employment and business, equal wage

Merely three have been ratified by India associating to forced labour, equal wage and favoritism.

S.No

Parameter

Practice

1

Minimal rewards

Followed by all OECD states but in Canada lower limit rewards varies across legal powers

2

Hours of Work

38-40 hours per hebdomad in the OECD states except in the UK and the US which do non restrict the hours of work

3

Rest yearss and vacations

All states follow the specifications

4

Minimal Age of Work

15-16 old ages

SOCIAL CHARTER OF THE EUROPEAN UNION

The European Social Charter is a papers signed by the members of the Council of Europe in 1961 to better their criterion of life and societal wellbeing of Workers

The states which are portion of the European Union have adopted this societal charter to give effectual societal and economic rights of their on the job people.

Consequence OF VOLUNTARY CODE OF CONDUCT AND ITS SUCCESS

Codes of behavior refer to criterions or rules that are adopted by a corporate public-service corporation, concern associates or multiple stakeholders. They are voluntary and non intend to replace bing labour statute law

Success would depend upon: the extent to which the provinces can modulate the conditions of work of the unorganized workers and guarantee that they have an active function in monitoring of codifications. It provides an chance to raise environmental, wellness, labor, and other public involvement issues and utile in forestalling a ‘race to the underside ‘ .

Hope India will make on par with International Practices like OECD states and supply better support to the unorganised workers.

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