Experts call for regularization of informal workers

13 million people enter the workforce every year

sarthak

Sarthak Ray | June 30, 2011



Though informal labour market constitutes 93 percent of Indian economy, there is no legislation for their inclusive development resulting in the absence of decent work environment  and livelihood  for their skills and capabilities.

At the discussions held on topic “the invisible worker: informal labour in India” at the ORF last evening the panelist spoke on how to improve working conditions of the growing informal sector in India and its implications on labour force in future.

 Half of India’s national output comes from  the  unorganized  informal sector  that provides employment to large segment of working force and significantly  contributes to the gross domestic product. Even though 13 million people enter the workforce every year and all government planning goes to the organized sector, only seven percent  of the workforce is absorbed .

Because  informal sector is unauthorized  they work in illegality under adverse , illegal  unauthorized conditions. With 2,50,000 hawkers in Mumbai , minimum wages are not sufficient to raise a family. Almost 50% workforce  is employed in rural area contributes  18 percent of GDP.

Giving the example of Dharavi , Advocate Vinod Shetty ,Director,ACORN Foundation India, works on labour laws said that in Dharavi, all laws are violated . There are open gasses, no labour laws and  occupational safety standards  or pollution control laws .”Where value of labour is falling , profits are increasing.”   In utter dismay Shetty said that labour laws do not include informal sector workers. “ In a planned manner, workers from formal sectors are being pushed into the informal sector  to  contractualize labour.”

According to the National Sample Survey (NSS) 2004-2005, 458 million  people were employed in the informal sector an increase of 61 million people (15.4% )since NSS survey conducted in 1999-2000.Employment in the organized sector remained constant at around 35 million in the same period.

Emphasizing on an attitudinal  realization  for contribution of informal workers  and legal protection to  give them visibility, Sharit Bhowmik, Dean, School of Management and Labour Studies, TISS said that  inclusive planning of poor for better cities is  very important “ If contribution of  60% people living in slums is not included in planning  it may have serious implications. In 1998 roughly 400 crore of rupees was collected as rent by police and municipality from street vendors.”

State Secretary, Centre of Indian Trade Unions, Affiliate of the CPI(M), Vivek Monteiro  said “ it is a dilemna  because in a democratic country most  voters are from informal sector who actually don’t count. On election day people from unorganized sector line up at the polling booths and cast votes and elect  legislators . If vast majority of voters are from the informal sectors, then why is it that laws are not made to include informal sectors in plans.”

“Since economic liberalization, one of the reforms on the agenda has been  labour market derularisation. Do we have  regulated labour market that it need to be deregulated? Or does the informal sector require stronger regulation?”  the state secretary questioned.

He suggested formation of boards like welfare boards for different sectors, regularizing and legalizing   slums residents and issueing an identity card to street vendors.

“Most  of new investment has been in capital intensive low labour industries. Something has to one taken from the organized sector and something needs to be given to the unorganized sector . The answers have to be found otherwise labour will be drifting away to other countries” said R N Bhaskar, Advisor ,ORF, in  his closing remarks.

Comments

 

Other News

Master sculptor recalls the making of the Shankaracharya statue

The Golden Chisel: The Story Behind the Making of Ram Lalla  By Seethalakshmi S. and Rahul Nandan Rupa Publications, 168 pages, Rs 395  

Mumbai’s missing affordable homes

Mumbai’s real estate market keeps growing, yet homeownership remains out of reach for much of its population. Three experts – urban researcher Hussain Indorewala, urban planner Vidyadhar Phatak and developer Kamlesh Thakur of NAREDCO Maharashtra, agree that simply constructing more apartments

Rubio denies US foreknowledge of Starlink restrictions in Ukraine

US secretary of state Marco Rubio has said he was unfamiliar with the Wall Street Journal report suggesting Elon Musk had decided to throttle Starlink services in Ukraine, but rejected claims that Washington had ordered the restrictions to pressure Kyiv.   “There was no

Can AI change India’s breast cancer story?

Breast cancer has become a public-health challenge in India. The greatest opportunity is to find cancers earlier. Artificial intelligence (AI) is opening a new era in breast cancer detection. AI systems can analyse mammograms and other breast-imaging studies, identify subtle abnormalities and assist radi

Farm stability in the time of climate change

Indian agriculture is experiencing significant climate volatility, while the world economy seems to be in a highly volatile situation. Economic indices from various countries show that they need to recalibrate their strategies to withstand economic headwinds. In such a challenging situation, a country li

El Niño threatens India’s Rabi crops

India’s southwest monsoon ended with a 13% rainfall deficit in 2026, its weakest performance in a decade, raising concerns over agricultural production, water security and the upcoming rabi season. With El Niño expected to persist into early 2027, experts warn that declining soil moisture, dep

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter