Working Conditions of the Unorganized Workers

Dr. Radhika Kapur

Abstract
Unorganised or informal sector comprises of a fundamental part of the Indian
economy. More than 90 percent of the workforce and about 50 percent of the national product
and are accounted for by the informal economy. A high percentage of socially and
economically underprivileged sections of the society are focused in the informal economic
activities. The high levels of development of the Indian economy during the past two decades
is supplemented by increasing informalization. There are suggestions of increasing
interconnections between informal and formal economic activities. The main purpose of this
research paper is to examine the working conditions of the unorganized workers. Major
emphasis is put upon the problems and difficulties that these individuals experience. The
main areas that have been taken into account are, issues and challenges for the unorganized
labour, laws that apply to all sections of the unorganized sector and measures to promote
livelihoods of unorganized workers.
Keywords: Working Conditions, Unorganized Workers, Challenges, Issues, Laws,
Livelihoods

Introduction
In India, the terms, unorganised sector and informal sector are used interchangeably in
the research literature. The term unorganised sector is used generally in all official records
and analysis. It is defined as the remaining of the organised sector. The term, organised is
usually used, when one refers to the enterprises or employees in which 10 or more employees
work together. The various methods employed in appraising data on employment in the
organised sector by the Annual Survey of Industries (ASI), Employment Market Information
(EMI) programme, etc., as well as those that are made use of in the assessment of the overall
employment like the decennial population census and surveys of the National Sample Survey
Organisation (NSSO) have their own limitations. Problems of underestimation and
inadequate analysis in the unorganised sector lead to additional problems in deriving the
remaining estimate of the unorganised sector (Chapter VII, n.d.).
In the unorganized sector, there are numerous categories of workers, who are engaged
in the variety of occupations and employments, ranging from those like forest workers, tribals
trying to follow the traditional vocations within their traditional habitats, labourers, artisans,
plumbers, carpenters, farmers and fishermen, who venture out into the sea in vulnerable
canoes, to those who are working in their homes with software, or assembling parts for a
sophisticated product. Mainly the workers who are engaged in minority jobs belong to
deprived, marginalized and socio-economically backward sections of the society. Most of
them are victims of invisibility and do not gain recognition within the community (Chapter
VII, n.d.). The main responsibility of the Ministries of the Government of India is to protect
the interests of the unorganized workers. The main objective is to create a healthy working
environment, which may augment productivity and lead to the development of vocational
training skills and employment opportunities (Sharma, 2017).
Issues and Challenges for the Unorganized Labour
The working conditions of the unorganized workers are not satisfactory in India. The
workers are mostly frustrated and depressed and the motivation level of the workers is not
good. A human being, by nature is organic and not mechanical. The inputs of energy in the
form of food and water are converted into outputs of performance and conduct. The
performance and conduct of the unorganized workers are determined by his relationships
between the characteristics of the organic system and the environment, in which he works to
sustain his living. The issues and challenges that the individuals experience have been stated
as follows: (Sharma, 2017).
Insufficient Labour Laws – The laws, rules and the policies that need to be formulated
in order to maintain order in the performance of tasks and duties are not sufficient. There are
not any proper rules and regulations, in accordance with which the workings of the
individuals can be directed. Central laws, which control and regulate the conditions of work
in the unorganised sector fall into three groups. The first group applies normally to the
unorganised sector. The second group of laws applies to certain groups of workers in the
unorganised sector and the scope of application is restricted by the nature of employment, or
size of employment. The third group of laws apply primarily to the organised sector workers
i.e. factories, establishments, or enterprises employing 10 or more workers, but in certain
cases, or by relaxing the employment criterion these laws can be made to apply to some
sections of workers in the unorganised sector (Report on Conditions of Work and Promotion
of Livelihoods in the Unorganized Sector, 2007).
Lack of Social Security - There is a total lack of job security and social security
benefits. In the unorganized sector, the areas of exploitation are high, resulting in long
working hours, unsatisfactory working conditions, and occupational health hazards. The
working conditions are in most cases not safe, for instance, in the case of employment in
industries and factors in the manufacturing of articles, such as, locks, handlooms, cigars etc.
As it has been stated, when there are not any appropriate labour laws, this adds to the
insecurity of the workers. Unawareness and lack of proper rules and policies within the
unorganized sector makes the workers feel insecure.
Guaranteed Minimum Wages – In the unorganized sector, workers are mostly
employed in hazardous occupations, there is lack of social security and they are made to work
long hours. These are the workers, who consists of those working in the unorganized
enterprises, or households. There is exclusion of regular workers and social security benefits,
and the workers in the formal sector, without any employment or social security benefits
provided by the employers. It is observed that the unorganised sector is characterized by a
high incidence of casual labour, mostly engaged in intermittent jobs at low wages or doing
their own account work at uneconomical returns (Report on Conditions of Work and
Promotion of Livelihoods in the Unorganized Sector, 2007). The only benefit that they get for
the hard work that they put in is minimum wages, which is not in most cases sufficient to
earn their living and the sustenance of their families.

Bonded Labour – Bonded labour is the labour, when individuals become labourers to
the landlords in return for the debt that their family members have earlier borrowed. In the
case of bonded labour, individuals are made to work hard for long hours in return for very
less pay or no pay at all. A high proportion of the bonded labourers belonged to the
Scheduled Castes, i.e. 61.5 percent and the Scheduled Tribes, i.e. 25.1 percent. The
proportion of backward and deprived groups is found to be quite high among bonded
labourers across various research studies. A number of cases of bonded labour is found in
agriculture, construction, mines and brick-kilns (Report on Conditions of Work and
Promotion of Livelihoods in the Unorganized Sector, 2007).
Child Labour – The children who are not being able to attend schools or drop out of
schools due to some reasons and get engaged in employment, then it is termed as child
labour. The main reason for children getting engaged in jobs is financial problems, there are
number of areas in which children get employed as labourers. These include, plantations,
mines, factories, industries, agriculture, farming and so forth. The children, who have
dropped out of school comprise of workers and non-workers, their main objective of getting
engaged in employment opportunities is to help their parents. The children, who are non-
workers, help their parents in the performance of the household chores and in taking care of
their younger siblings (Report on Conditions of Work and Promotion of Livelihoods in the
Unorganized Sector, 2007).
Working Women – The problems that women experience in the organized sector are
severe and mainly include, larger issue of double burden at work, the invisibility of the
women workers and the deprived conditions of work as well as discriminatory treatment
against them. For a woman, it is important to take care of their households, family members
as well as work. They are required to carry out number of job duties, made to work long
hours and their earnings are less. Their work is normally unpaid at home and less paid
outside. Even though they do not obtain enough wages for all the work that they put in, still
they do not complain and continue in their jobs for a long period of time. They possess the
viewpoint that the minimum wages that they receive is contributing to some extent in
sustaining their living.
Low Literacy Skills – The unorganized workers usually possess low literacy skills. In
some cases, they do not even possess the basic literacy skills of reading, writing and
arithmetic, which is disadvantageous. Low education and literacy skills or no education at all
are regarded as detrimental to the individuals. Due to lack of awareness and knowledge, they
are not able to get easily adapted to modern and innovative techniques. When a person is not
educated or literate, he experiences problems in communicating, in understanding job duties
and in carrying out the tasks and functions. Low literacy skills prove to be impediments in
most cases in the development of skills and abilities amongst these individuals. The
individuals in the unorganized sector are mostly in a backward condition and they experience
challenges and issues that are associated with low literacy skills.
Low Incomes – The unorganized workers normally are guaranteed minimum wages,
which constitute low income and they do not have any regrets against it. These workers are
residing in the conditions of poverty and backwardness, they experience problems in finding
a job. The main reasons behind these are, their state of backwardness and literacy skills are
either low or absent amongst them. When these individuals are fortunate enough to find a job,
they form this viewpoint that even though the job requires them to work hard for long hours,
still they obtain some pay, which is assisting them to sustain their living to some extent.
Therefore, due to this reason, they do not have any complaints regarding low income.
Vulnerable to Diseases – The workers who are employed in hazardous occupations,
such as agriculture, plantations, factories, mines etc. normally experience health problems
and are vulnerable to diseases. Agricultural workers, in general, experience certain specific
health problems, due to extensive use of fertilizers, insecticides and pesticides and
mechanization. The increasing use of chemicals and biological agents with hazard potential
that individuals are unaware of, the indiscriminate use of agrochemicals including pesticides,
agricultural machineries and equipment, and their impact on the health and safety of exposed
population, pose serious safety and health risks for mainly the workers, who are employed in
the agricultural sector (Report on Conditions of Work and Promotion of Livelihoods in the
Unorganized Sector, 2007).
Pain or Injury from Physical Overexertion, Repetitive Manual Tasks, or Working in
difficult Positions – There are numerous jobs in the unorganized sector that enable
individuals to lift heavy loads, repeat manual tasks or work in difficult positions. For
instance, in the case of construction of buildings, women as well as men lift heavy loads and
bricks on a continuous basis. These tasks may cause pain and injury to the individuals of all
ages. The individuals, who are elderly may feel more exertion due to heavy loads and manual
work as compared to the ones who belong to younger age group. These jobs are certainly
stressful and difficult, but unorganized workers do not have any option but to get engaged in
these jobs.
Exposure to Moulds, Fungi and Bird or Rodent droppings – In the agriculture and the
farming sectors, individuals mainly have exposure to moulds, fungi, bird or rodent droppings.
These activities are regarded as impure by the individuals, who are engaged in reputed jobs,
but the unorganized workers are required to expose themselves to all types of impurities that
take place within their jobs. This is a fact that due to any kinds of impurities within the job,
they feel overwhelmed by problems, but their condition is such that they do not have any
other option. They are required to stay within their jobs to sustain their living, even in the
long term time period.
Exposure to Lead, Wood dust, Asbestos, Paints, Solvents, and other Toxic Chemicals
or Materials – The occupations in industries and factors, which are primarily to the
production and manufacturing of goods, involve the workers to expose to lead, wood dust,
asbestos, paints, solvents and other toxic chemicals. In the jobs, where these materials and
chemicals are made use of are risky and involve the individuals to take appropriate safety
measures and precautions. When the individuals do not make use of the safety measures and
precautions, it is likely that their health would get affected. The individuals, who are
unaware, in some cases, do not take precautions and experience detrimental effects.
Working in High Temperatures and UV Radiation – Important components of the
work place are the working environmental conditions, which includes, space, ventilation,
infrastructure, cooling and heating equipment in accordance to the weather conditions,
temperature, humidity, hygiene and cleanliness. There are some jobs that involve the
individuals to work in high temperatures and UV radiation. These jobs are considered as
hazardous and impose difficult consequences upon the individuals. The conditions of the
workers in the manufacturing of locks, beedi rolling, diamond cutting, textiles, including
handlooms and power-looms, artistic metal-ware and so forth, have all observed pitiable
conditions, under which workers are involved in the production processes for long hours
(Report on Conditions of Work and Promotion of Livelihoods in the Unorganized Sector,
2007).
Working with Hand Tools, Powered Tools and Heavy Powered Equipment – The
industries such as, food products and beverages, tobacco products, textile products, wearing
apparel, garments, gem cutting, locks, tanning and dressing of leather, wood products,
chemical and chemical products, other non-metallic mineral products, manufacturing of other
products and so forth involve individuals to work with various kinds of tools and equipment.
It is vital that individuals need to acquire adequate training, before they are engaged in
working with tools and equipment in production and manufacturing. Lack of training and
knowledge would prove to be disadvantageous upon the lives of the individuals. It is
challenging and demanding, when individuals are required to work with tools and equipment
for long hours, therefore, in order to be effective in their job performance, they need to be
adequately trained.
Excess Vibration in the Hands, Arms or Body from Powered Tools or Equipment –
There are certain jobs that require excessive vibration to take place in the hands, arms and
body of the individuals from powered tools or equipment. Proper illumination is necessary to
protect not only the eyes of the workers, but also from the injuries, such as from moving parts
of machines and sharp cutting tools. Adequate illumination of the work place is required in
general but specifically for three main reasons. First, the work after sunset, means appropriate
lighting for night work is essential. Second, as certain production involves complex
operations that are performed manually by the workers using hand tools. For example, all
cutting operations are done with the use of a sharp knife or weaving of carpets with intricate
designs. In such instances, proper illumination is essential, for both the safety of the workers
and for maintaining superiority in the production process. Third, as the main raw inputs can
be of different colours, textures and surfaces, appropriate lighting is necessary for matching
the colour and textures as in the weaving of carpets (Report on Conditions of Work and
Promotion of Livelihoods in the Unorganized Sector, 2007).
 Confined Spaces – Within the working environment, when individuals are required to
work in confined spaces for long hours, then work becomes difficult to get carried out. In
order to carry out the tasks of production and manufacturing in an appropriate manner,
workers need adequate spaces. In the case of confined and limited spaces, the working
environmental conditions impose difficulties in the implementation of job duties. For
instance, when individuals are involved in manual production and manufacturing of goods,
when they are engaged in working with machines and equipment or when employment
opportunities are hazardous, then confined spaces impose detrimental effects and they
experience challenges and issues in carrying out their job duties.
Noise – There are some jobs in the unorganized sector that cause noise pollution, for
instance, use of machines and equipment cause noise pollution that is unfavourable to the
individuals. When noise pollution becomes a problem for the workers, then too, the
individuals do not have any other choice, but to deal with it and perform their job duties. At
the workplace, it is a fact that unorganized workers do not possess adequate skills and
qualifications, but they are required to maintain appropriate terms and conditions with each
other to perform their tasks in an appropriate manner. Loud noise even takes place when there
is a dispute between two or more individuals, hence, it is important that individuals should
work in harmony and co-operation with each other.
Working at Heights – The unorganized workers possess different natures and
attributes. There are individuals, who do not feel apprehensive about working at heights, the
reason being, they are experienced and are used to this type of job. On the other hand, there
are individuals, who do not take pleasure in this type of job and feel vulnerable about
working at heights. Research has indicated that working at heights, make the individuals feel
apprehensive and they do not feel comfortable in the adequate performance of their job
duties. When a person is involved in the construction of a building or any other job that
requires him to work at a height, if he is aware of the job duties, then he does not have any
other option, but to reach the height and get engaged in the performance of the work duty.
Electrical Hazards – Accidents and electrical hazards at the workplace, in most cases
take place, when workers are engaged in the operation of unguarded and inadequately
safeguarded machines, such as, mechanical power pressers, power press brakes, powered and
non-powered conveyors, printing presses, roll-forming and roll-bending machines, saws
including band saws, portable and table saws, shears, grinders and slitters, drilling machines,
grinding machines and milling machines (OSHA). The avoidance of electrical hazards can be
done by guarding, safe work practices, training of the employees, administrative controls and
operating in a safe manner (Report on Conditions of Work and Promotion of Livelihoods in
the Unorganized Sector, 2007). It is vital for the individuals of all age groups and especially
children working in jobs, involving tools, machines and equipment to be adequately trained,
provided sufficient knowledge and supervised in a proper manner.
Working with Cranes, Hoists, and other Material Handling Equipment – There are
jobs that require the workers to work with cranes, hoists and other material handling
equipment. These jobs required manual work as well as sufficient training. When individuals
are not aware regarding usage of cranes, hoists or other equipment required for material
handling, they may obtain injuries. There was not any official compensation for work related
injuries. Obtaining it was purely based on the quality of relationship between the owner and
worker and that too confined only for the permanent employees. Even amongst the permanent
workers only one-tenth had their medical bills reimbursed, and less than four percent were
given some cash, primarily in the computer division (Report on Conditions of Work and
Promotion of Livelihoods in the Unorganized Sector, 2007).
Slips, Trips and falls – Manual work which involves individuals to work on heights
mainly impose the risks of slips, trips and falls. These are the aspects that may cause serious
injuries to the workers. Especially when the workers are carrying heavy loads and they have
to walk or make use of some kind of transportation to transport goods to another place, then
they are at a risk of slipping or falling. Slipping, tripping and falling are usually common and
take place in a number of occupations. They may or may not cause serious injuries or loss of
productivity, but it is vital for the individuals to be careful, when they are engaged in the
performance of their job duties.
Respiratory and Fire Hazards from Wood dust – Workers in the brick-kiln industry
experience respiratory problems that takes place from living and working 24 hours of the day
in the fumes emanating from the furnace. Workers had persistent cough and complained of
body ache and exhaustion. Rudimentary facilities like clean drinking water and absence of
health care contributed to their vulnerability to disease. The women and children were
equally exposed to the detrimental effects that respiratory problems caused them. Hand block
printing textiles caused stamina to a great extent amongst the workers, as it required them to
work for long hours. The workers were unable to get engaged in this job, as it led to problems
due to lack of stamina (Report on Conditions of Work and Promotion of Livelihoods in the
Unorganized Sector, 2007).
Long Working Hours - Work by coolies, porters, workers in the fishing industry and
rag pickers worked over long hours, i.e. lasting up to 52 hours as in the case of marine fishing
industry. In other sectors, where it was found that working hours were more regular. In
fireworks, match making, brassware, glass bangle manufacture, diamond cutting, power-
looms and so forth, workers begin their work early in the morning, e.g. 6 a.m. in the case of
fireworks in Shivakasi, and the work day ends late in the evening. In Dharavi's leather
accessories manufacture, it was common to start work at 8 a.m. and continued till 1 a.m. the
next morning, with two to three half an hour breaks for lunch and dinner. The total working
day is between 15 and 17 hours a day (Report on Conditions of Work and Promotion of
Livelihoods in the Unorganized Sector, 2007).
Employment Opportunities and Recruitment Methods - Employment is obtained in
the unorganised sector primarily through three modes, the importance of these three modes
vary from activity to activity and industry to industry. First, is by standing at the factory gate,
second is through a family, caste and community based network and third is through labour
contractors. There is a complete absence of any form of formal publicity for employment,
there are not any newspaper advertisements or posters in the public places, stating job
vacancies and so forth. Occasionally, employers put notices such as, regarding the
requirement of tailors, workers or typists are common in the unorganised services sector
(Report on Conditions of Work and Promotion of Livelihoods in the Unorganized Sector,
2007).
Lack of Employer and Employee Relationships - The enterprises in the unorganised
sector are primarily unregistered units. Apart from that, there is a problem of invisibility of
such enterprises as there is not any designated workplace, due to which in most cases,
workers operate work at their homes. Even the entire basis of forming an employer and an
employee relationship becomes the first barrier to make application of labour laws to this
sector. The employee prefers to work for several employers, in case, he is not given any work
on a particular day or sometimes for days together. The other difficulty is the fact that
number of home based workers work through contractors. Particularly for women, it is easy
to undertake these activities at home. Hence, there is lack of visibility of the relationship
between the employer and the employee. Moreover, workers involved in these enterprises
often tend to change employers on a frequent basis and therefore, it is easy for the employer
not to identify the workers, which results in the denial of benefits, arising out of Minimum
Wages Act and Social security benefits (Chapter 5, n.d.).
Laws that apply to all Sections of the Unorganized Sector
 The legislative and the policy framework for the unorganized workers have been
stated as follows: (Report on Conditions of Work and Promotion of Livelihoods in the
Unorganized Sector, 2007).
Equal Remuneration Act, 1976 - The Act is applicable to the women workers and
provides for the payment of equal remuneration to men and women workers and for the
prevention of discrimination, on the ground of gender with concern with employment. Under
the Act, the employer has to pay equal remuneration to men and women workers for the same
work or the work of a similar nature. By same work or work of a similar nature is meant,
work in respect of which the ability, determination and responsibility required are the same,
when performed under similar working conditions. The Act also provides against
discrimination made while recruiting men and women workers.
The Bonded Labour System (Abolition) Act, 1976 - The Bonded Labour System
(Abolition) Act, (1976) dealing with bonded and forced labour was legislated by the Indian
Parliament in 1976 in view of the above provision. The Act is applicable to bonded labour
and provides for the abolition of bonded labour system with a view to preventing the
economic and physical exploitation of the weaker sections of the people. The Act defines
bonded labour as a service rendered under the bonded labour system. This is a system of
mandatory, or partly mandatory, labour under which the debtors enter into an agreement, oral
or written, with the creditor.
The Minimum Wages Act, 1948 - The Act is applicable to the workers engaged in the
scheduled employments and provides for setting minimum rates of wages in certain
employments. It is applicable both to the agricultural, non-agricultural and to rural as well as
urban workers. The Government may, however, increase the scope of this Act by adding
schedules. Units employing even one worker are covered by the Act. Thus, the Act covers
wage worker, homeworker but not the self-employed workers. Under the Act, the appropriate
government shall set the minimum rates of wages payable to the employees in a specified
employment and review the rates, at such intervals as it may think fit, such intervals not
exceeding five years.
Child Labour (Regulation and Prohibition) Act, 1986 - The Act is applicable to child
labour, person who has not completed fourteen years of age and prohibits the engagement of
children in certain occupations as specified in Part A of the Schedule or processes as
specified in Part B of the Schedule. The Central Government may, if considered appropriate,
add any occupation or process to the Schedule. Besides in Part III, the Act contains
provisions for regulation of conditions of work of children in establishments or a class of
establishments in which none of the occupations or processes referred to are carried on.
Dangerous Machines (Regulation) Act, 1983 - The Act is applicable to the operators
engaged with the dangerous machines and equipment. It makes provision for the regulation of
trade and commerce in and production supply, distribution and use of, the product of any
industry producing dangerous machines with a view to safeguarding the welfare of labour
operating any such machine and for payment of compensation for the death or any injuries
suffered by the workers, while working with any such machine. It is only applicable to the
machines intended to be used in the rural or agricultural sector.
Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)
Act, 1979 - The Act is applicable to every formation, in which five or more inter-state
migrant workmen are employed and to every contractor, who employs five or more inter-state
migrant workmen. The establishments involving less than five inter-state migrant workmen
are not covered under this act. For the purposes of this Act, workman means any person
employed in or in connection with the work of any establishment to do any skilled, semi-
skilled, unskilled, manual, supervisory, technical or clerical work for pay or reward, but does
not include any person, who is employed in a managerial or administration capacity or who
are employed in a supervisory capacity, draws wages exceeding five hundred rupees per
month.
Motor Transport Workers Act, 1961 - The Act applies to every motor transport
undertaking, employing five or more motor transport workers. The state government may
however, extend the applicability of this Act to the undertaking, employing less than five
motor transport workers. The Act provides for provision of canteens, rest rooms, uniforms,
raincoats or other amenities for protection from rain or cold, washing allowance, medical, and
first-aid facilities. The Act also specifies the hours of work for adult workers and adolescents,
and prohibits employment of children.
The Maternity Benefits Act, 1961 - The Maternity Benefits Act, (1961) provides for a
minimum maternity leave of six weeks to a pregnant woman, immediately after her delivery
or miscarriage. The provision of paid maternity leave seems to be rare in the unorganised
sector, though the Labour Bureau surveys and some other researchers have found limited
instances of women being given maternity leave without pay. The women workers were
assured of a job, when they returned from maternity leave.
Measures to Promote Livelihoods of Unorganized Workers
 The Constitution of India evidently acknowledged the connection between decent
conditions of work and the promotion of enterprises in the unorganised sector. Articles 39
and 42 of the Directive Principles put emphasis upon the goals of just and humane conditions
of work, while Article 43, required the State to work towards not only the provision of a
minimum wage but also the working conditions ensuring a decent life and for this purpose,
there was promotion of cottage industries on an individual or co-operative basis. Article 49
put emphasis on the need to develop agriculture and livestock towards this end (Report on
Conditions of Work and Promotion of Livelihoods in the Unorganized Sector, 2007).
Creating the Foundations of Decent Work - The first and the foremost measure to
promote the livelihoods of the unorganized workers is to create the foundations of decent
work. It is important for the individuals to take into consideration various aspects, before,
they get engaged into any type of employment. These are housing, health, access to
education, infrastructure, civic amenities, sanitation and other facilities. The work undertaken
should be of decent quality and enable an individual to satisfy their basic requirements.
Education, in particular, has emerged as an important signifier of the individual's work status,
wages and poverty. While this report has put emphasis on the worker's employment and
livelihood, there have been consideration of issues that determine the worker's capability as
being foundational. These foundational issues are related to public interventions in the fields
of education, health and sanitation and, housing, to name, the three most important ones.
Land Acquisition for Public Projects - The acquisition of land under the Land
Acquisition Act and the dislocation of people for the sake of public works such as, dams and
roads has been a cause of concern for some time. While these initiatives are important for
development, and they also produce alternative employment, the principal restriction is the
principles underlying compensation for land and assets, relocation of the displaced persons
and access to alternative employment opportunities. The construction of dams leads to
displacement of the local inhabitants for what is considered to be within the larger interest
and well-being of the public. The dislocation occurs due to the loss of property and
livelihoods. There is normally lack of consultation and suitable information about even the
specific contours of submergence.
Regulation of Environmental Standards - There are three principal Acts, i.e. the
Environmental Protection Act, the Water Pollution Act and the Air Pollution Act that are in
effect for the protection and preservation of the environment. There are several ambiguities in
these Acts, which can be exploited by the powerful to circumvent these Acts. However,
workers employed in such industries also experience uncertainty of employment and
experience the fear of punishment. Prohibition on minute and small scale industries in cities
like Delhi and Calcutta in order to prevent pollution of the Yamuna and Ganga rivers has also
led to the loss of livelihood for a number of workers within these industries. The Supreme
Court had passed orders in 1996 to close down all industries that led to pollution of these
rivers.
Urban Planning - The inadequate incomes of the workers in the unorganised sector
force them to reside in make-shift shanties and slums. Besides the distresses and agonies of
living in deprived living conditions with lack of power to the basic amenities such as, water
or electricity, they also have to live in continuous fear of being dislodged from their homes in
the name of slum clearance. Since most of them are required to be encroachers, they get
caught in a nasty cycle of degraded living conditions without the availability of minimal
facilities. This kind of dislocation not only deprives them of their homes but also affects their
livelihood as unorganised workers. The slum dwellers are normally urban migrants, who
come to the city because of abject rural poverty and unemployment in their areas of origin.
Evidently, a large programme of urban low cost housing and shared residential facility should
be part of any master plan, which enables the workers including seasonal migrants to access
housing at reasonable cost and relocation costs, if any to the workers, should be shared by the
employers.
Micro-Credit and Self Help Groups (SHGs) - The potential of SHGs to develop as
local economic intermediaries to reach the poverty stricken individuals has acquired
recognition in India due to their community based participatory approach and sustainability.
Recovery rates in micro-credit programmes have been meaningfully higher than those
achieved by commercial banks in spite of loans going to the poverty stricken, unorganised
individuals without security or collateral. At the all India level, the number of SHGs has
increased from about 110 thousand in 1999- 2000 to over 2.2 million by the end of March,
2006 and the volume of micro-credit has increased from Rs.1.9 billion to over Rs.114 billion
during the same period. By March, 2006, about 1.6 million SHGs were formed under the
SHG Bank Linkage Programme. Two important factors of the Indian economy emphasize
upon the study of the informal sector, these are the overwhelming predominance of the
informal enterprises and informal workers and the fact that the Indian workforce is a
workforce in evolution (Report of the Committee on Unorganised Sector Statistics, 2012).
Conclusion
The unorganised sector has grown by increases and constraints over the years. In
India, the term, unorganised sector is used commonly in all official records and analyses.
Changes in trade and technology, accompanied by greater global connections between the
nations resulted in intimidation to the income of the individuals and is particularly in the
developing country, as there is a speedy expansion of the unorganised sector, due to increase
in employment of deprived quality and India is not exception to it. The difficulties and
problems in the unorganised sector are varied in nature.
The unorganised sector plays an essential part in the Indian economy, it needs special
attention. Hence, an attempt has been made to observe the issues and challenges that take
place in the unorganised workers with a view to overcome the barriers and impediments in
this sector to make provision of at least a basic minimum social security to the workers.
There are a number of issues and challenges that are experienced by the individuals in this
sector. A large number of statutes and systems addressed to the different categories of
workers are found neither attainable nor workable. The reason being that labour relations in
the unorganised sector are disordered and there is not any formal employer-employee
relationship, even if it exists, it is of casual nature.
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