Protecting the Vulnerable: Providing social welfare to

informal sector workers

-Sir Willium Beveris

"Social security means the attach on five demons- necessity, illness, ignorance, pollution and unemployment.”

"It is the security which society by proper organization provides against certain risks by which their members are victimized."

-International Labour Organisation

Hence, social security signifies protection of man from possible dangers like illness, pollution, ignorance, which low

income persons, cannot compete. This word signifies vast meaning and includes all works of human welfare.

• Workmen’s Compensation Act (1923),• The industrial disputes act (1947),• The employees state insurance act (1948),• The minimum wages act (1948),• The coal mines provident funds and miscellaneous provisions

act (1948),• The employees provident fund and miscellaneous provisions act

(1952),• The maternity benefit act (1961),• The seamen’s provident fund act (1966),• The contract labour act (1970),• The payment of gratuity act (1972),• The building and construction workers act (1996) etc.

Independent India’s constitution : Social Security Acts

Unorganized sector…

However, only about 8% of workers actually get the benefits available under these Acts.

The rest 92%--over 30 crores??

• These Acts only apply to those workers who have a clearemployer-employee relationship. 50% of India’s workersare self employed.

• Workers are not organized and hence have no bargainingpower, because of this, even when laws exist workers aretoo weak, too disorganized to demand them.

• The laws are supposed to be implemented through theGovernment bureaucracy which has neither themanpower nor the knowhow to reach the scattered croresof workers.

Reasons…

The National Commission for Enterprises in the Unorganized Sector (NCEUS) is a national body commissioned by the Indian government in 2004 to address the issues faced by enterprises in relation to the unorganised sector.

The Commission was to make appropriate recommendations to provide technical, marketing and

credit support to these enterprises. The term of the Commission which was initially fixed at one year.

Actions of Government

Actions of Government

• Indian Parliament finally passed an ambitious law aimed at

ensuring social security to workers in the unorganised sector, comprising 94% of the country’s labour force.

• The ‘Unorganised Sector Workers’ Social Security Bill, 2005 --- Draft Bill• Included a dozen welfare schemes like health insurance, group

accident scheme, savings-cum-relief scheme, and family and old-age benefit schemes.

52

10.992

22.8

2.424

2.592

6.528

2.664

48

Percentage of workers in Unorganised Sector

Agriculture Manufacturing ConstructionsTrade & Repair etc. Transport & storage etc Other Services etc.Other Industrial Groups

Non-AgricultureAgriculture

34.9 Million Organised Workers412.4 Million Unorganised workers

Unorganized

Organized

GDP Share

Unorganized Organized

Agriculture

non-agriculture

GDP SHARE IN UNORGANIZED SECTOR

Actions of Government: Unorganized Sectors’ Social Security Act (2008)

NCEUS presented two Draft Bills on Conditions of Work and Social Security for Unorganized Workers to the Prime Minister.Based on the comments received from States, Trade Unions and others, the Commission revised the earlier proposal and proposed two Bills:

• “Unorganised Non-agricultural Sector Workers (Conditions of Work and Livelihood Promotion) Bill, 2007”

• “Unorganised Agricultural Sector Workers (Conditions of Work and Livelihood Promotion) Bill, 2007”

Actions of Government

Each of those bill was divided into TWO parts:•Part 1 of each of the Bills contains provisions

relating to the regulation of conditions of work of wageworkers.•Part 2 relates to the protection and

promotion of livelihoods of the unorganised workers.

The proposed Bills also mandate that the government takes the necessary steps to

protect and promote these livelihoods through appropriate policies and

programmes. The Bills have also provided for an institutional machinery to take a holistic

view of the sector and to mobilise the necessary resources to help the sector overcome constraints and facilitate its

growth.

Both Central and State Govt. Formulated certain Schemes:

•Swarnjayanti Gram Swarozgar Yojna (SGSY)•Sampoorna Gramin Rozgar Yojana (SGRY),•National Food for Work Programme (NFFWP),• Indra Awass Yojna(IAY),• Integrated Wastelands Development

Programme (IWDP) •National Rural Employment Guarantee Act-

2005(NREGA): provides 100 days guaranteed employment to rural household.

• Rashtriya Swasthya Bima Yojana for BPL family(member 5) launched on 1st oct2007.

• Smart card based cashless health insurance cover of Rs. 30,000 to a BPL family of five.

• All pre-existing diseases to be covered.

• Hospitalisation expenses, taking care of the most of the illnesses.

• Transportation cost of Rs. 100 per visit with an overall limit of Rs. 1000/- per annum.

Till 15th April, 2009, 22 States/ Union Territories have initiated the process to implement the scheme. Out of these 17 States have started issuing smart cards and

more than 39.71 lakh cards have been issued providing the health insurance for more than 1.98 crore persons.

Contd…

• Rashtriya Swasthya Bima Yojana for BPL family(member 5) launched on 1st oct 2007.

• Smart card based cashless health insurance cover of Rs. 30,000 to a BPL family of five.

• All pre-existing diseases to be covered.

• Hospitalisation expenses, taking care of the most of the illnesses.

• Transportation cost of Rs. 100 per visit with an overall limit of Rs. 1000/- per annum.

Till 15th April, 2009, 22 States/ Union Territories have initiated the process to implement the scheme. Out of these 17 States have started issuing smart cards and more than

39.71 lakh cards have been issued providing the health insurance for more than 1.98 crore persons.

• In 2010, government launched the Swavalamban Yojana, administered by the Pension Fund Regulatory and Development Authority - a pension scheme for the workers engaged in the unorganized sector.

Contd…

In fact a comprehensive Act, catering to the security needs of the unorganized

sector such as Food, Nutrition, Health, Housing, Employment, Income, Lifeand accident, and old age remains a

dream in India. Still the cries of the unorganized sector goes unattended with

the governments laying red carpets for the corporates and so called investors at the expense and sacrifice of the working

class.

Flaws of the Act…

•How can it be called an act unless it has the legal binding and provisions of rights to work and entitlements under it?•Here as per the act nothing is mentioned about

what constitutes appropriate and adequate social security for the vast mass of unorganized workers and their dependents?•What eligibility criteria, if any, ought to be

prescribed?

Contd…

•What will be the scale of benefits that the workers and their families are entitled to receive and under what conditions?

•What will be the funding arrangements that must be put in positions to meet the cost of social security and so on?

This law which does not deal with the issue of unemployment, its regulation, wages, and

conditions of work and so on is not merely incomplete but dysfunctional if it proceeds to deal with social security on a stand alone basis. The Act, actually, suffers from a serious lack of legislative policy and intent. Ultimately this Act is an eye wash which has neither the capacity to

address nor the inbuilt provision to provide

solutions to the needs of the unorganized sector.

How the Acts can be implemented in a fruitful way???

• Identifying the unorganised workers by conducting surveys.

• Conducting legal awareness programmes for the identified groups ofunorganised workers about different welfare schemes and social securitymeasures available.

• Persuading and assisting the workers in the unorganised sector to avail of thebenefits under the different social welfare legislations, administrativeprogrammes and schemes put in place by the Governments.

• Reaching out to the unorganised labourers and facilitating their bargainingcapacity with the employers and the institutional mechanisms for their welfare.

• Providing legal assistance in appropriate cases.