Five Year Plan & Wage Policy Presented By- Presented By- Omprakash Suthar Omprakash Suthar
Five Year Plan &
Wage PolicyPresented By-Presented By-Omprakash SutharOmprakash Suthar
First Five Year Plan The conditions of work should be such as to
safeguard the worker's health and protect him against occupational hazards
Greater attention has to be paid to the spread of literacy and the healthy development of trade unions
Workers' enthusiasm for the success of public undertakings should be enhanced
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Minimum Wages Act State Governments are required to fix minimum
rates of wages for agricultural labor by the end of 1953*
In nine States, including Punjab and Uttar Pradesh, minimum wages have been fixed
The implementation of the minimum wage legislation should be reviewed from time to time
* Chapter 13, First Five Year Plan 3Aravali Institute of Management, Jodhpur
Wages and Social Security Steps are necessary to divert saving, to present
expenditure to increase production, which leads to the restriction on- Large dividends and profit distribution Remuneration of management Issue of bonus shares Any upward movement in wages
Payment by results as proposed by ILO DA is made a necessary part of wages
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Second Five Year Plan A wage policy (by ILO) aiming at increasing real
wages was difficult to quantify To bring wages into conformity with the
expectations of the working class The settlement of wage disputes - Tripartite
Wage Board for cotton, jute textiles, cement and sugar
A welfare fund for Coal, Mica and Manganese industry should be instituted
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Security Measures The Employees' Provident Funds Scheme
should be extended to cover industries and commercial establishments having 10,000 workers or more in the country as a whole*
A proposal regarding the provision of medical benefits to worker's families (under the Employees' State Insurance Scheme) is under consideration
* Chapter 27 Second Five Year Plan 6Aravali Institute of Management, Jodhpur
Third Five Year Plan
Wage Board was extended to Iron and Steel industries
Apart from the minimum wage, care should be taken in fixing fair wages for different classes of workers, and adequate incentives are provided for the acquisition and development of skills and for improvements in quality*
* Chapter 15 Third Five Year Plan 7Aravali Institute of Management, Jodhpur
Security Measures Implemented Schemes* like -
Employee State Insurance Scheme - the scheme will be extended to all centers where there is concentration of five hundred or more industrial workers
Accepted provision of medical benefits to worker's families
The Employees' Provident Fund Scheme, which now covers 58 industries
* Chapter 15 Third Five Year Plan 8Aravali Institute of Management, Jodhpur
Sixth Five Year PlanWAGES IN AGRICULTURE The provisions of the Minimum Wages Act, 1948 which provides for the fixation
and periodical revision of minimum rates of wages in agriculture and other employments in the unorganised sectors
The protection mainly benefits the landless agricultural labourers and workers in other 'sweated' employments. Except in the employments under ths Central Government which do not account for much under these categories, the implementation of this Central legislation is the responsibility of the State Governments.
Slow-coverage of new employments, delay in periodical revisions of the minimum rates fixed under the Act and ineffective enforcement of the existing provisions have been the main issues relating to this measure.
The need for strengthening the enforcement machinery, simplification of the procedure relating to coverage and revisions, the linkage of the rates with the Consumer PriceIndex Numbers, involvement of the rural workers' organisations in the implementation of the provisions are among the steps advocated to improve the results.
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Contd.. The necessary amendments in the statutory provisions are likely to
be initiated soon. Sufficient strengthening of the enforcement machinery would provide an effective arrangement for better implementation of the. Minimum Wages Act.
In this context it may be pointed out that this measure coupled with programmes like National Rural Employment Programme and Integrated Rural Development etc. would represent a coordinated and mutually supporting effort for raising large number of rural poor above the poverty line. Proposals for Central legislation for agricultural workers
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Seventh Five Year Plan (1/2) Higher labour productivity ensures higher
wages The creation of employment opportunities in
the large, medium and small-scale industry, both in the public and private sectors of the economy to increase the wage output
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Seventh Five Year Plan (2/2) TRYSEM was introduced to provide technical
skills and to upgrade the traditional skills of rural youth belonging to families below the poverty line
Wage employment is also introduced in it
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Eighth Five Year Plan (1/3) A statutory provision of minimum wages for
employments has been included in the schedule to the Minimum Wages Act, 1948
For implementation of minimum wages workers' organisations, non-governmental voluntary organisations and organised trade unions also ensures minimum wages, instead of solely relying on the official enforcement machinery
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Eighth Five Year Plan (2/3) Khadi and village industries were created to provide
additional employment opportunities in the non-farm sector and to ensure increased wages/earnings to rural workers
Handloom industry seek to encourage employment generation, ensure reasonable wages for weavers, supply of hank yarn at reasonable prices, establish silk yarn bank, set up marketing infrastructure, help export development, etc
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Eighth Five Year Plan (3/3) New marketing approaches for artisans
was introduced so that their wage increases
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Ninth Five Year plan The improvement of labour welfare with increasing
productivity and provision of a reasonable level of social security
The Minimum Wages Act, 1948 is primarily applicable to unorganized sector and empowers both central and State Governments to fix the minimum rates of wages
Under Minimum Wages Act, 1948 no wage is fixed below Rs. 35 per day
Minimum wages can offer greater potential for income transfers then special employment generation schemes
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Tenth Five Year Plan
It covers extensive policies for women workers Wage bill is expected to grow The increase in productivity of labour should be
reflected in higher growth of real wages The rise in the real wages of casual labour only
cannot be a conclusive evidence either of an increase in the real income or of tightening of labour market when the incidence of unemployment has not reduced, and has rather gone up
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Government Initiatives
Sampoorna Grameen Rozgar Yojana (SGRY) Jai Prakash Rozgar Guarantee Yojana (JPRGY) Vocational training for women ‘equal pay for equal work’ concept
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Eleventh Five Year Plan
Shift the surplus labour from agriculture to high wage non agricultural sector
Increase in male casual labour wages Real wages stagnated or declined for workers in the
organized industry although managerial and technical staff did secure large increase
Wage share in the organized industrial sector has halved after the 1980s
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Contd…
Continued manufacturing and service industry helped for regular salary wage
Employment opportunity for casual wage worker has slowed down
The incidence of poverty among the regular wage/salaried workers is much lower (around 11%) as compared to the casual labour (32%) and the self employed workers (17%)
Efforts should be made to increase the regular wage/salaried jobs
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Women and Wage
Women have vulnerable position when they seek regular wage jobs in the unorganized or even in the private organized sector, in urban areas due to inequality
Women have low wage rate than male for comparable occupations Equality can be seen in various sectors like
IT and enabled services sectors Legal Financial Commercial Education and health
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Migrant Workers and Wages
Supply of Migrant labour come from the states as source have low wages
To protect their interest government passed the bill ‘The Unorganized Workers Social Security Bill, 2007’ in the Rajya Sabha
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Casual wage Employee or Self Employed They account for 83% of work force Their strength lies in occupational skills and to
negotiate for labour price Shift in pattern from agriculture to non-
agriculture sector due high wage
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Service Sector and Wage
Unique opportunity to grow due to its labour cost advantage, reflecting one of the lowest salary and wage levels in the world coupled with a rising share of working age population
Two initiatives required Fostering the establishment of a viable size for
delivery of services based on labour intensive occupations
A massive skill development effort
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Success of Labour Policy
It can be seen in terms of the number of regular wage employment opportunities based on some form of a written contract between the employer and the employee, that is, an increase in the number of ‘formal’ jobs
Change in policy need to accessed by- Linking incentive benefits in terms of employment and wage Formal employment
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Contd…
Regular wage employment mode, is a critical factor in improving the quality of employment of the workers hired by the unorganized enterprises
Protective measures for employees in unorganized sector A statutory national minimum wage for all workers
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Scheduled Caste and Wage
60%still depend on wage labour Employment rate and labour earnings are also
low Discrimination by caste in cities also for low
wage Large number of SC and ST’s depend on
agriculture wage thus government needs to revise wages every five year
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Intiatives
Initiatives taken by government for poor are Sampurna Grameen Rozgar Yojana Creation of infrastructure
NREGP Increasing labour productivity through technology change and
innovation is the main route for the creation of additional wealth to enterprises and better wages to employees
NREGAsoft is used to collect workers database and wages
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Social Security
Social security will be treated as an inclusive concept that also covers housing, safe drinking water, sanitation, health , educational, and cultural facilities for the society at large
It is necessary to ensure living wages, distinct from the concept of minimum wages, which can guarantee the workers a decent life
ESI has existing wage limit of Rs.10,000 per month
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Social Security
A national policy for fixing minimum wages would be crystallized and made effective
Discrimination in wages based on gender and age would be abolished/penalized
An information network will also be built to promote awareness, to educate employers (some of whom do alternate as wage labour too), and to prevent malpractices (perpetrated by design or by ignorance) with the help of the media, NGOs, and PRIs
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Thank You
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