Protecting the Vulnerable

Providing social welfare to informal sector workers

SAURABH KUMAR , SAURABH JAKHMOLA , ROCHAN MEHROTRA , VIVEK GUSAIN , VISHAL KAUSHIK

TOGETHER FOR THE INFORMAL SECTOR

The predominance of informal employment has been one of the central features of the labour

market in India.

UNORGANIZED SECTOR

ORGANISED SECTOR

However, the unorganized sector is characterized by low wages that are often insufficient to meet minimum living standards along with several other issues such as inadequate nutrition, long working hours, hazardous working conditions, lack of basic services such as first aid, shortage of clean drinking water and proper sanitation facilities. Labourers in the unorganized sector are often trapped in a vicious cycle, starting work as children and continuing well into their old age.

Disturbing Characteristics of Informal Employment

• Hazardous Working Conditions

Long working hours , Lack of First aid

• Low Wages

• Inadequate nutrition

Conflict that arises!!

• Identifying the unorganized workforce is extremely complex as they operate outside the tax ambit.

• Informal workers are disparate and fragmented which makes enforcement and provisions by centralized schemes difficult to administer.

• There is no consensus nationally on the classification of the unorganized sector, for example, whether seasonal migrants or micro entrepreneurs can be treated as workers.

CREATING A STEP BY STEP DATABASE OF THE INFORMAL WORKERS

• A basic overview :

•Central Government gets data from state

government.

•State government gathers the information provided by employers , zila parishads and government representatives .

•Employers , zila parishads and representatives directly deal with the workers.

We will build a Centralized database for the workers

• This process sounds like a lot of work but it can easily be divided into a lot of sub-processes

• But first we need to know types of workers and how many of them are skilled - unskilled and agricultural – non-agricultural

• This is the basic concept around which I have revolved my innovative idea.

My Innovative Approach.

My basic approach is too centralize all the information of the informal sector workers in a data base so that they can be recognized by the government and since all the information would be at a single place it will be very easy to administer .

Since all of the data will be with the government therefore the Informal sector workers could be provided with safety and social security net.

How To Implement ?

• This Process can be categorized as a multi-tier process.

• At first we would need create a central body for collection of all the data and this body would have sub-bodies in all the states.

• Each of these sub-body will gather data from contractors , Builders and will also have representatives.

• These representatives would go to road-side vendors and other daily-wage workers and collect their information .

• It would be made mandatory for all the contractors and builders to give the details of all their labours .

Getting the Data for Agricultural workers.

98% of informal employment is in agriculture therefore it is important to get their data . For this purpose we would need to instruct the zila-parishad to gather the information regarding the informal agricultural workers from their panchayats. Panchayats could gather data from these workers and store it on a digital device(a representative could be sent) . Then they handover the information to the zila-parishad . The zila parishad would then combine all the data gathered by the panchayats and hand it over to the representative appointed by the city’s branch.(explained later)

Getting the data for non agricultural workers.

• This may be called a relay process.

• The workers can be divided into labours working in construction sites and in factories.

• Government should make it mandatory for the owners of these construction sites and factories to make their workers( both daily wage workers and contract workers) to go through the process of registration with the state sub-body which will have their branches in all the cities.

• The branches in these cities will have sub-branches in various zones .

• Each zone will have a number of representatives.

• These representatives will collect the data from zilas and factories and will hand it over to the zone branch which will in turn hand it over to the city branch.

• The city branch will combine all the data from various zones and hand it over to the state sub-body.

Getting the data from workers working from home and street vendors.

• The city branch of the state sub-body will have a number of zone branches.

• These zone branches would send representatives to various markets and places where these kind of workers are known to stay who would collect the data.

• The zone branch could also start various drives that would encourage these workers to register.

What is this Data? What would happen to it?

• The data would be information regarding the workers like their name , no of family members, number of earning members in the family , their address , ration number , their family annual income , whether they are skilled or unskilled or are daily wage or contract workers , etc.

• The data collected by the representatives will be given to the city branch which would then be given to the state sub-body.

• The state sub-bodies will then combine all the data and will run it through a software which would show how many workers are unskilled and their information.

• These workers could then be trained hence boosting labour productivity.

• This data would then be given to the central body which would combine all the data and store it in a centralized database

Why would this work ?

• A simple answer to this question-everyone wants benefits.

• Each registered worker will get a smartcard. This smartcard would act as their licence to work no worker would be allowed to work without it .

• A worker would be required to scan the smartcard at a scanner while entering the factory or construction site and while leaving it.

• The scanner would be linked to a cash dispenser and when the worker signs out the machine would automatically calculate his or hers working hours and pay them accordingly , Hence eliminating low wages .

• The machine would also store the working hours of the labours which could be inspected at any time hence eliminating long working hours

Some other benefits!

• Workers with these smartcards would also get other facilities like healthcare , benefits in employability , etc.

• Unskilled workers would have access to skill training.

• Agricultural workers would be entitled to buy seeds , fertilizers etc at a subsidized price.

• This smartcard would also act as an insurance for the worker and their family.

• Furthermore the workers who are unemployed would get a fixed amount of wages by the government.

THIS IDEA COULD HELP THE GOVERNMENT KEEP A RECORD OF THESE WORKERS AND WOULD HELP IN PROVIDING A SAFETY AND SOCIAL SECURITY NET TO SUCH WORKERS AND WILL EVEN BE A BOOST FOR INDIA’S LABOUR PRODUCTIVITY.

THANK YOU AND HAVE A NICE DAY