People's Democracy

UNORGANISED SECTOR WORKERS’ BILL

Trade Unions Demand Changes

Hemalata

THE unorganised sector in our country employs around 37 crore workers and is fast expanding as a result of the liberalisation policies. A vast majority of them --- 23.7 crore --- are engaged in agriculture. According to the National Sample Survey Organisation (NSSO) data, out of the rest, 4.1 crore work in manufacturing, 3.7 crore each in services and trade, and around 1.7 crore work in construction. Though several legislations like the Minimum Wages Act, Maternity Benefit Act, Equal Remuneration Act, Beedi and Cigar Workers (Conditions of Employment) Act, Building and Other Construction Workers (RE&CS) Act, Workmen’s Compensation Act, and Contract Labour Act, etc, are fully or partially applicable to the workers in the unorganised sector, none of these is being properly implemented. They do not have any job protection or social welfare benefits. Most of the workers in the unorganised sector, like home based workers, daily wage workers, domestic workers, vendors, etc, are not covered by any protective legislation.

BILL SILENT ON JOB SECURITY

One of the terms of reference to the Second National Commission on Labour (SNCL) was to suggest an umbrella legislation for ensuring a minimum level of protection to the workers in the unorganised sector. In fact, suggesting an umbrella legislation was publicised as the most important task of the SNCL and was used to counter the criticism against the commission’s moves to dismantle the labour laws meant to protect the interests of the so-called well placed workers in the organised sector. But the draft bill proposed by the SNCL contained nothing more than an elaborate structure of boards from the central to the panchayat level, registration of the unorganised sector workers and issue of identity cards. It contained nothing concrete to ensure job protection, minimum wages and social security for them. No responsibility was fixed on the government to contribute for their social security.

In the 38th Indian Labour Conference (ILC), held in September 2002, the labour ministry assured that a bill would be drafted and consultations held among the social partners. But the first draft prepared by the ministry of labour was mostly confined to providing contributory social security and welfare measures without any provision for employment protection, minimum wages, etc, for the workers. In addition, the first draft sought to enable the government to assume absolute authority to decide about the application, modification and alteration to the existing statutes which are in force. There was also no provision for action against the employers who fail to contribute to the welfare fund. All the central trade union organisations --- the CITU, AITUC, HMS, INTUC and BMS --- discussed the bill and came to a common understanding that the bill required a lot more modifications. On January 22 this year, they sent a joint letter to the labour ministry demanding redrafting of the bill by involving the trade unions in the process. On March 5, 2003, the CITU, AITUC, HMS, UTUC, UTUC (LS) and BMS jointly reiterated their demand, raised in the 38th ILC, that the bill should be taken up as an agenda in the 39th Standing Labour Committee and the 39th Indian Labour Conference. 

REDRAFTED BILL MORE RETROGRADE

The labour ministry then called a meeting of the central trade union organisations on May 24, 2003, to discuss the redrafted bill on unorganised sector workers and asked the trade unions to give their suggestions within 15 days. The second draft was found to be, however, more retrograde than the first one. Though it has dropped section 54 authorising the government to decide on the application, modification and alteration of the existing acts like the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Equal Remuneration Act, Contract Labour Act, Maternity Benefit Act, Child Labour Prohibition Act, Workmen’s Compensation Act, etc, it has avoided defining several terms, including ‘dispute,’ ‘self-employed worker,’ ‘contractor,’ ‘principal employer,’ etc, making it vague and prone to different interpretations, to the detriment of the unorganised sector workers. Even the Lok Shramik Panchayats or labour courts mentioned in the previous draft do not find any mention in the new draft. The entire section on inspection, penalties, and procedures has been omitted. There is no provision for ensuring that the provisions of the bill are complied with. Nor is there any provision for the resolution of any dispute regarding the application of the schemes or the social security or welfare benefits applicable as per this bill. Most importantly, this draft too contains no provision whereby the employer-employee relationship can be established, which is one of the most serious problems faced by the workers in the unorganised sector. There is, as a consequence, no provision to protect the job security of the unorganised sector workers.

The draft bill has not incorporated many of the unanimous suggestions of the tripartite workshop held subsequent to the meeting of the ILC. Though a brief chapter on employment related issues has been added in the new draft, the provisions therein do not contain anything concrete. For instance, there is a cursory mention of minimum wages. But neither in the present draft nor in the original Minimum Wages Act is there any provision to give effect to the norms laid down by the 15th Indian Labour Conference and the Supreme Court judgement in the Raptakos & Brett case for prescribing minimum wages.

The government of India and the present minister of labour are reportedly very keen to introduce the bill just to claim that they have showered mercies upon the unorganised sector workers, who do not have any legal protection. But, the legislation, as contained in the draft, will in all likelihood remain on paper without any scope for implementation.

AMENDMENTS SUGGESTED BY TUs

The CITU, AITUC, AICCTU, TUCC, UTUC, UTUC (LS), HMS, BMS and INTUC discussed the bill and sent their amendments section-wise to the bill in a joint letter to the labour ministry. They also reiterated the demand that the bill be discussed in the ensuing SLC and ILC. The trade unions made the following general observations and suggestions to be taken into consideration before finalising the bill:

1. There should be a separate bill for the agriculture workers. The separate bills on employment conditions, welfare and social security aspects should be moved simultaneously with the bill on the unorganised sector workers.

2. All these bills including the unorganised sector workers’ bill should provide for initial funds and regular, defined contributions from the centre and the states.

3. The entire cost of administration of the act(s) should be borne by the government at least for the first five years; the position can be reviewed and revised commitment worked out after this specified period.

4. The minimum basic welfare and pensionary benefits to be included in the schemes should be incorporated in the bill.

5. Wherever the employer is not identifiable and/or the worker is compelled to change employment frequently, the contribution of the employer should be paid by the government/board.

6. The board(s) constituted under this Act should be bodies having statutory powers to administer the various functions and schemes under this act.

7. The board(s) should have equal number of representatives of the government, workers and employers.

8. The government should allocate funds for social security at an annual rate of 3 per cent of gross domestic product (GDP), and it should progressively increase till a satisfactory level of social safety net is in place.

9. The area of coverage and time frame for commencement of the Act and the authorities for implementation and enforcement should be specified.

The CITU has decided that its committees and unions, particularly those of the unorganised sector workers, will widely campaign so as to bring pressure on the government to incorporate the suggestions made by the trade unions in the proposed bill for unorganised sector workers.