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Labourers of Unorganised Sectors and Their Problems: Chatterjee
Labourers of Unorganised Sectors and Their Problems: Chatterjee
Abstract
It is crystal clear that unorganized labours are living their life below the minimum standards level.
Without a doubt, many informal workers are not in a position to meet their daily requirement. Maximum
numbers of women worker are consistent victims of low wages when contrasted with men. There are
number of legislations for the security of the labour force but those laws are routinely executed in
organized sectors yet in actuality, it is not used methodically in unorganized sectors.
So, here author has tried to focus on various problems of unorganized labour and the necessary
solutions. The data were collected from different secondary resources like books, research paper,
websites, and a range of accessible government reports and in addition to that various informations are
also assembled after discussions With veteran government employees worked in this field
Key words: Labour, Unorganized, Act, Social security,Legislation and Schemes.
Introduction dichotomy of formal and informal was started in
In the mid 1950s, economic development model pre independence era, though it was in a different
was widened by W.Arthur Lewis in mid 1950. In nomenclature ie. the contrast of eastern non-
developing country, there was limitless labour capitalist economy and western capitalist
supply. Those surplus labours should be engaged economy but in the post- independence it was
in the upcoming industrial arena in the country. It converted into the dichotomy of traditional and
IS Simply a conveTSIOn of the system from modern concepts.
traditional to modern. Those sorts of casual An existence of vast majority of unorganized
labour, who have been occupied by petty labour in India is a com mon phenomenon. Based
businessmen and very conventhonal manutacturer on that distinctiveness, India govermment has
or traders, should be absorbed by large industrial classified unorganized workforce exclusively in
sectors or in the ground of formal economy. In four categories 1. In tems occupation like leather
addition to that, petty traders and small producers workers, waiver, fisheries, bidi maker,
may also adhere as ancillary to the large sector. construction workers, workers of different
But, still a large numbers of labour are suffering at industry like oil mill, paper mill, saw mill etc.
the bottom of the informal sectors. They don't bricks maker, landless agricultural labour. 2.
even get an opportunity to taste the fruits Nahure of employment, Contract, Casual and
formal economy sector, especialy in the third bonded labour 3.Special distressed
categories
world country. t is not only a crowed of men, Head and shoulder loaders, Scavengers, variety of
even a vast number of women and children are labour works. 4. Service categories Hotel boy,
also floating in the same pattern of atmosphere. Midwives, Air hostesses, barbar, masseur etc.
The dichotomy of traditional and modern sectors Apart from aforesaid category handicraft artisans,
is still prevaling in thethird world country,.This Cobblers, Handloom weavers, physically
Prof. (Dr.) Subhasish Chatterjee www.ljetst.in Page 4397
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handicapped self employed persons, Lady tailors Intermediation- 32.4K: Real estate, renting and
Rikshaw pullers, Carpenters, Tannery labour, business activities -81.4L: Public administration
Power loom workers and urban poor, Truck and and Defense, etc. 2.6 M: Education -37.9 N:
Auto drivers also come under the unorganized Health and social work -55.10: Other
labour class. Community, Social and Personal Services -92.5P:
As far as statistical information is concerned, it Private Households With Employed Persons- 100
has been observed that maximum numbers of Q: Extra Teritorial Organizations And Bodies-
unorganized labours are available in the 87.8Grand Total 94
agricultural sector(around 50 percent) as compare
to other sectors like home based workers, workers Objective
in various types factory and building & 1. To enlighten the different problems of
construction industry. workers working in the informal industry.
The most significant issue to be seriously noted - 2. To know the various acts and schemes
as per the report of National Sample available in the country to protect
Survey
Organization that from 2000 onwards number of unorganized labour.
casual workers are haphazardly increasing and the 3. To know about the most recent social
of regular workers are decreasing in
sirength
India. Furthermore, according to the survey of
security measures have undertaken for
unorganized labour.
NSSO, 30 percent of unorganized workers are
always on the move, for them Justice TS Thakur Revlew of Literature
of the Supreme Court emphasized on the need of A study conducted by Rajarathinam (2001) on
proper implementation of welfare schemes by the Dalit Unorganized workers are hailing from the
central as well as state governments both. village areas of Tirunelveli of Tamilnadu District.
The largest constituency of our workers is in the He mainly conveyed about the poor
socio
unorganized labor. Of the 46 crore workers, 14 economic condition of of Dalit Majdoor.
crore are women. Every state has poverty Mathew Joseph, Nirupama Soundararajan,
alleviation schemes but the benefits don't reach Manisha Gupta and Sanghamitra Sahu in their
them," said Justice Thakur. He added that Rs 750 research paper Impact of Organized Retailing on
crore was collected for welfare of labour in the Unorganized Sector discussed on how
Punjab but little has been spent. There is zero unorganized sectors are being benefited by the
percent spending in 2008, 2009, 2010, 2011, 2012 limited numbers of retailers of the mini and
and 2013. We are insensilive towards them". megacities. They have also recommended few
Source policies that will strengthen the relationship
(http:/indianexpress.com/article/cities/chandigarh between large retailers and small suppliers.
T. S. Papola in his research paper concerning to
90-indian-workforce-in-unorganised-sector
deprived-of-welfare-schemes-says-justice-t-s informal Sector: Concept and Policy discussed
thakur/ about various disadvantages of informal sectors
Share of Labour Input in unorganlzed Sector and conveyed to reduce their problems they
(%) suffer, and also told to increase the absorption
A: Agriculture and forestry -99.9 B: Fishing capacity of in- migrant works into the city to
98.7C: Mining- 64.4D: Manufacturing-87.7 enhance their productivity and to develop working
E: Electricity, Gas, Water supply -12.4 F: condition of workers.
Construction 92.4G: Wholesale and Retail Trade, Silvia M. D. Mendoncae Noronha (2005): In his
-98.3 H: Hotel & Restaurants -96.71: Transport, thesis of "Migrant Construction Workers in Goa"
Storage& Communication -82.2J: Financial discussed about migrant labours working
Prof. (Dr.) Subhaslsh Chatierjee www.ljetst.in Page 4398
JETST- Vol||03||ssue||07||Pages 4397-4405|July||SSN 2348-9480 2016
especially construction company, it
has also been methodical way. In addition to that author has also
observed that maximum number of workers are read information's presented in difterent websites.
engaged n constructing company. The author
made an endevour to find out the socio- economic Analysis
of workers and its impact on economic situation Problems of Unorganized labor
of Goa. 90% workforces are engaged in huge informal
Elizebeth Hill in her Women in the Indian sectors. They, by and large, face various types of
Informal Economy: Collective Strategies for problems in their regular life like they stay very
Work Life Improvement and Development close to their workplace; extending working hours
conveyed that resource based approach which is is a regular practice, exploitation and hazardous
inappropriate in informal sectors. workplace are very common.
Neha Mittal (2012) in her Research Paper Women 1. Very low wages is the main problem for
unorganized workers: - Minimum wage
Workers In'Unorganized Sector: Socio-Economic
Perspective discussed about the problems of
has act in most of the time applies for labOurs
women worker. They working for a long hour's working under the purview of organized
every day, chaotic working conditions, very low sectors or formal sectors.
wages and above all they keep on working 2. Maximum workers do not have any
without proper social security measure. perfect llving areas near to thelr work
Tony Jacob in his research Paper "The place: Maximum workers working in
organized sectors avail house rent
Unorganized Sectors in India" has described
minutely about their problems and challenges allowance, in addition to that they get
regularly because of seasonality nature of job. house from housing board and also get
Workers are suffering from the indebtedness and bank loan from various statutory banks for
bondage especially in the rural area. The do not making their own paticular house yet,
even get proper guidance of Trade Union. unfortunately the workers from
Ashima Majumdar (2013) led a study named as unorganized sectors are deprived form all
Social Security System and the Informal Sector these facilities, subsequently they have a
in India: A Review". As per her view India's propensity to make cluster inside the
government managed social security since1947, restricted space in their living region
effective very negligible for the laborers of where they do not have appropriate
unorganized sectors whether in India maximum washing facilities, because of that they
laboure force comes under the informal sectors. regularly deal with the unbalanced
This article surveys about monitory condition of circumstance particularly women workers.
the workers i.e. they do not have savings to keep They likewise battle with various
themselves secure in a problematic situation. She unhygienic conditions sewer seepage
also tried to convey that absence of standardize frameworks, overtlowing drainage systems
saving of this type of workforce mark on the flooding amid storm.
efficiency of the whole Indian economy. 3. They do not have any knowledge about
work hazardous and occupational
Research Methodology safety: Introduction of different hazardous
In the light of the analysis for this study, the machinery, high rise in construction,
author has taken help of various books, research unguarded machinery, various toxic
papers and various open sources where chemical, coal dust, lime dust, blazes
government information's are accessible in a crude materials for synthetic generation
leads quantities of tragic deaths of many
In addition to that there are few labour laws money as when they have money in their hand
applicable for informal workers unlike the current
i.
provision when employer and
Industries (Regulation and Development) employee deposit money every month to PF
Act of 1951 corpus every month. It has got a huge market,
ii. Employees Provident Fund and when subscribes feel can migrate money to the
Miscellaneous Provisions Act of 1952 NPA and in future they may withdraw the small
ii. Matermity Benefit Act of 1961 amount for any urgent requirement.
iv. Payment of Bonus Act of 1965 Workers in unorganized sector to get social
V. The Building and Construction Workers
security smart cards: i. Rashtrya swasth bima
Act (1996)
yujna. 2. Am admi Bima yujna 3. Old age pension
vi. Payment of Gratuity Act of 1972 4. Pradan Mantri Jan suraksha BimaY 5.
vii. National Rural Employment Guarantee ojna.
Pradan Mantri Jiban Joyti Bima
Act-2005 (MGNREGA) Yojna. 6. Atal
Pension Yojna.
vii. Industrial Employment (Standing orders) The Indian social security
Act of 1946 system only covers
employees in the organized sector, which accounts
for less than 10% of the
Latest Development country's workforce. As
the unorganized sector is
Government has planned to issue
continuously growing
Unique and with one in five workers in the informal sector
Identification Number to Unorganized labour to living below the poverty line -- the Government of
facilitate them to access social scheme and India has launched several social
benefits. security
measures related to healthcare,
1. Pension The pension and direct
government is planning
-
In addition to that there are few labour laws money as when they have money in their hand
applicable for informal workers unlike the current provision when employer and
i. Industries (Regulation and Development) employee deposit money every month to PF
Act of 1951 corpus every month. It has got a huge market,
ii. Employees Provident Fund and when subscribes feel can migrate money to the
Miscellaneous Provisions Act of 1952 NPA and in future they may withdraw the small
ii Maternity Benefit Act of 1961 amount for any urgent requirement.
Workers In unorganized sector to get sOcial
iv. Payment of Bonus Act of 1965
v. The Building and Construction Workers security smart cards: i. Rashtrya swasth bima
Act (1996) yujna. 2. Am admi Bima yujna 3. Old age pension
vi. Payment of Gratuity Act of 1972 4. Pradan Mantri Jan suraksha BimaYojna. 5.
vii. National Rural Employment Guarantee Pradan Mantri Jiban Joyti Bima Yojna. 6. Atal
Act-2005 (MGNREGA) Pension Yojna.
vii. Industrial Employment (Standing orders) The Indian social security system only covers
Act of 1946 employees in the organized sector, which accounts
for less than 10% of the country's workforce. As
Latest Development the unorganized sector is continuously growing
Government has planned to issue Unique and with one in five workers in the informal sector
Identification Number to Unorganized labour to living belowthe poverty line- the Govemment of
facilitate them to access s0cial scheme and India has launched several social security
measures related to healthcare, pension and direct
benefits.
1. Pension - The government is planning to cash transfer schemes to people who do not have
provide provident fund and pension scheme to access to a formal scheme.
unorganized sector constituent of 93% of India's
huge labour force. This will help to all types of
unorganized labour like domestic workers, tea
sellers, construction Workers and many more once
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Prof.(Dr.) Subhasish Chatteree www.ijetst.in
JETST- Vol.||03||Issue||07||Pages 4397-4405|July||ISSN 2348-9480 2016
Unorganized Sector Social Security Net
Family Benefit 1. Rashtriya Swasthya Bima Yojana Fund Act, 1976 1. National Rural Health
Scheme (RSBY) S. The Cine Workers Mission (NRHM)
5. Annapurna 2. Handloom Weavers' Comprehenslve Welfare Fund Act, chemes
Scheme Wefare Scheme 1981 National Pension
3. Handicraft Artisans' Comprehensive scheme-
Welfare Scheme
iwavalamban
National Scheme for
Welfare of Fishermen
and Training and
Extenslon
Source: What ails for security for the Indian unorganized sectors? Challenges in design and
implementation. By Vishnu Prasad, IFMR Finance Foundation, (http://www.ifmr.co.in/blog/2014/06/05/
what-ails-social-security-for-the-indian-unorganised-sector-challenges-in-design-and-implementation/)
Conclusions and Recommendations main recommendations of the Gajendragadkar
Despite providing many laws of social security in Commission included:
the constitution of India for organized and a) First hand detailed surveys from time to
unorganized labour force, still the situations of time to understand the problems of the
unorganized labour remain same, only organized different categories of unorganised labour
labours are enjoying the test of that fruits. There b) Legislative protection by the state for
are lots of schemes have been framed by central unorganised/ unprotected labour.
as well as state govermment both, but c) Simplification of legislative and
unfortunately, most of the time Government has administrative procedures applicable to
failed to apply those schemes at the time of their small establishments.
requirement. As far as various recommendations d) Expediting education and organization in
are concemed, regrettably, we are still far away to the field of unorganised labour.
follow the very simple and authentic e) As there is no altermative to the existing
recommendations of the "First National implementation machinery, what exists
Commission on Labour (FNCL) under the should be reinforced, and the inspection
Chairmanship of Justice P. B. Gajendragadkar system should be strengthened.
submitted its Report in 1969. The FNCL devoted ) Steps for the protection of workers against
attention to labour in the unorganised sector. The middlemen, and development of self-help
through co-operatives. Co-operatives
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Prof.(Dr.) Subhasish Chatterjee www.ljetst.in
IJETST-VOl.|03||Issue||07||Pages 4397-4405|July||SSN 2348-9480 2016
should pay adequate wages and bonus, and vital responsibility of the govemment is to
give employment opportunitiesto the conduct awareness program on the subject of
underemployed and unemployed among those acts and schemes regularly, especially for
them". the unorganized labour of urban as well as rural
Source :http://nceuis.nic.in/Report_Bill_Ju area. On the other hand, government should
ly_2007.htm depute NG0, who will be responsible to conduct
So far as minimum wage act 1948 is concerned, it these types of programs or to depute dedicated
is very much scanty and teribly varies from state team, who will be responsible for continues
to state. There is no exact provision to apply that vigilance in their stipulated area. In addition to
law in a systematic mode for unorganized sectors; that thorough and crystal clear acts must be made
sometime it seems vague and ineffective. for the labours of the informal sectors relating to
Social security act is considered as one of the the account of security of health, housing,
most important act, which should be applied for children's education, food, nutrition of women
the labours of any sectors but, for norganized and children, employment and old age benefit.
sectors no proper provisions has so far been
prepared and applied except few guidelines. References
Anyway, in recent circumstances, unorganized Books and Articles
sectors social security nets(charts given above) 1. Balaji Aluri, Socio-Economic Conditions
shows few social security measures like of House Construction Workers in
National Assistance program (Indira Gandhi
Natioanl Old Age Pension Sceme, Indira Gandhi
Vijayawada City, Research Scholar, and
Dept of HRM, Acharya Nagarjuna
Natioanl Widow Pension Sceme, Indira Gandhi University, Guntur, and AP.
National Disability Pension Scheme, National 2. Das S. Workers in unorganized sector lack
Family benefit scheme and Annapuna Scheme), security. Down to Earth. 2007.
Government sponsored Socially Oriented 3. Das, K.S. (1998), Wage Policy Issues in
Insurance Scheme(LIC Administered Scheme, the Informal Sector, The Indian Journal of
AICIL Administered Scheme and few others Labour Economics, V 41(4).
insurance scheme), Workers Welfare funds Act, 4. Das Dr. V. Tulasi, Head, Dept. of Human
National Rural Health Mission Scheme, National Resource Management, Acharya Naga-
Pension Scheme Swavalamban, National Schemes rjuna University, Guntur. International
for welfare of fishermen and training and Journal of Management and Social
extension. In addition to that few legislations have Sciences Research (IJMSSR) ISSN: 2319
also been framed like The National Rural 4421Volume 4, No. 12, December 2015.
Employment Guarantee Act, 2005, Unorganized 5. Fernandes D, Paul B. Social Network of
workers Social Security Act, 2008 and Domestic migrant workers in Construction Industry:
workers Social Security Act, 2008. Furthermore, Evidence from Goa. Tata Institute of
government is planning to provide provident fund Social Sciences. 2009.
and pension scheme to unorganized sector 6. Ministry of Labor and Employment, Govt
constituent of 93% of India's huge labour force. of India: Building and Other Construction
Constituting the acts and framing of schemes are Workers (Regulation of Employment and
not enough for the advancement of labours working Conditions) Act. 1996.
Working in informal sectors but, relatively needs 7. National Classification of Occupations
of execution of those acts and schemes in a (NCO) -2004. CSO, Director General of
deliberate way. This should be the most employment and training, Ministry of
imperative obligation of the govemment. Another labour, Govermment of India, CS-1. 2004
Abstract
Unorganised sector covers about half of the GDP of our country. This preponderance of
This sector is
unorganised workers OCCupies almost 90% of the national labor force.
Characterized by seasonal employment (in agricultural sector), contractual work, no social
and welfare legislations,and minimum wages. Lack of skill and
no rights
security
educaion, fewand
work quality
openings
newterms in
organized sector, unawareness of legal rights, deficient
of service drawS the labor înto the available vortex of the
substandard
unorganised sector. Here they face problems like p0or health conditions,
Working life, harassment at work, inadequate and unequal wage structure, long working
hours, poor housing facilities, lack of safety measures, atrociues on women workers
and
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