Labor Problems
Labor Problems
August 9, 2010: The Union Cabinet today approved the implementation of the Swavalamban Scheme to cover workers in the unorganised sector and to provide old age security to all sections of society, particularly the vulnerable sections. A majority of India's 30 crore informal sector workers are highly vulnerable to old age poverty because they have traditionally been excluded from formal pension provisions and are unable to access regulated retirement savings products at an affordable transaction cost. The old age income security system in the country covers only the organized sector comprising the public sector (including the civil service) and the establishments covered under the Employees' Provident Fund Organisation (EPFO) or other statutory Funds.
National Level Social Secuirty Fund for Unorganized Sector Proposed scheme Will have an initial corpus of Rs 1000 crore and will benefit 43.3 crore workers in the unorganised sector
Editorials from The Hindu June 9 In 2004, National Commission for Enterprises in the Unorganized Sector (NCEUS) chaired by Arjun Sengupta was setup to review the status of unorganized sector in India where more than 93% of our workforce is engaged. The commission in its reports considers lack of adequate employment at a fair wage as the major problem looming in the informal sector. The plight of the informal sector can be summed as: lack of job security, income security and social security. The commission had identified that 77 percent of the population lives below Rs 20 a day. Though the official poverty line is Rs 12 a day, the commission said that it was too low and needs to be revised. The informal sector workers have largely not benefitted from the economic reforms. It recommends that prime objective should be that work provided will not be compromised by less than decent employment standards. A basic needs approach could be adopted for few years. Reliance on market forces to maximize economic growth will lead to divergent dynamics and deprivation for the segments lower down the economic ladder.