India's Unorganized Workers.
India’s unorganized sector workforce has been at the forefront of driving the economy’s rampant growth prior to the onset of COVID-19, however, despite increased economic prosperity exploitation, poverty and lack of basic necessities are still commonplace.
The total amount of informal workers participating in the workforce is estimated to be around 93% of the labour component in the country according to the economic survey of 2018-19. The ‘Report of the Committee on Unorganised Sector Statistics’ of the National Statistical Commission 2012 also pegs this number at above 90%.
There is also a shift in the nature of employment with a sharp decrease in agricultural employment with a corresponding spike in non-agricultural employment. Around 88 million people or approximately 20% of the labour workforce are engaged as small traders, hawkers, street vendors and as daily wage earners. Self-employed entrepreneurs constitute around 14% of the workforce meaning that as many as 215 million workers may be considered self-employed.
The above statistics reveal two troubling issues with the way the informal sector is beingl managed in the country. Firstly, we lack accurate and up-to-date data on the composition, nature of employment and the contribution to overall economic development by informal workers.
The Ministry of Labour, Government of India, has categorised the unorganised labour force under four groups depending on occupation, nature of employment, specially distressed categories and service categories.
Under Terms of Occupation:
Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, beedi rolling, labelling and packing, building and construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills, etc. come under this category.
Under Terms of Nature of Employment:
Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this category.
Under Terms of Specially Distressed Category:
Toddy tappers, scavengers, carriers of head loads, drivers of animal driven vehicles, loaders and unloaders come under this category.
Under Terms of Service Category:
Midwives, domestic workers, fishermen and women, barbers, vegetable and fruit vendors, newspaper vendors, etc., belong to this category.
Registration of Unorganised Sector Workers:
As a follow up of the implementation of the unorganised Sector Workers’ Social Security Act, 2008, State/UTs have to set up State Social Security Boards at the State level and also formulate Rules,Schemes and enrollment for the benefit of the unorganised workers.
We are unsuccessful in incorporating weavers especially the workers under Unorganized Workers' Social Security Act, even though our weavers come under the following definition:
An unorganised worker is a home-based worker or a self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts pertaining to welfare Schemes as mentioned in Schedule-II of Unorganized Workers Social Security Act, 2008
Our leaders have failed to convince the State Government especially the Social Security Board headed by the State labour minister.
Conclusion
From the above, it is clear that the policy approach with respect to reforming informal labour must be multi-faceted, such that creates incentives for all stakeholders. Only if these changes are brought about simultaneously can they facilitate any real and meaningful change? Deregulation is often negatively connotated, however, in this scenario it presents an opportunity wherein all parties benefit. Merely creating parallel schemes and supplementing machinery only puts a burden on the state exchequer and leads to confusion for employer-employee alike. The latter because it inevitably creates burdensome compliance requirements that make employers reluctant to follow and obedience difficult.
Compiled by
GaviRangappa S P.
Devanga's Vidhana.
Jai Devanga.
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