NAWABI-HELLBOYS

Exploitation & Job Insecurity

Miserable Working Conditions

No Retirement Benefits No Retirement Benefits

Organising the unorganised: A cooperative strategy for organizing informal sector workers to prevent vulnerability.

Team details: Pankaj Kumar Singh

Pawan Bankoti

Prashant Bhatt

Shashank Shubhranshu

Vishal Srivastav

Report of Ministry of Statistical and Programme Implementation, 2012, says morethan 90% of India’s workforce belongs to the informal sector and accounts for 50% ofthe national product. 99.9% workers in the agriculture and forestry sectors areunorganized. 98% of unorganized industrial labour does not have any social security.protection.

India is home to one of the largest numbers of informal workers, there is an urgent need for policy initiatives which will provide them with basic security benefits.

low incomes

poor quality of tools and raw materials

lack of collective organization

lack of a voice in policy -making/politics

PROBLEMS CONSTRAINTS

lack of job security

absence of retirement benefits

lack of legal protection

unsafe conditions leading to ill health

making/politics

lack of access to national social security schemes

lack of access to capital

lack of information and advice on rights and opportunities

A union -cooperative strategy for organizing informal sector workers.Proposed Framework

UNION-COOPERATIVE

• interface between employers and workers

• delivery agencies for more comprehensive state-sponsored schemes

• voice of workers in policy - making/politics

• comprises of many SHG’s and independent workers

• government recognised body

SHG’s

• building block of cooperative structure

• attends to daily affairs of the workers

• encourages entrepreneurship & provides micro-finance

WORKERS

• active member of union/SHG or both

• Register themselves in union-cooperative

UNION COOPERATIVE

NGO’s volunteers

SHG’s Workers

Of the workers

For the workers

By the workers

NGO’s

• Composed of volunteers

• Trained college students

• Retired professionals

• Employees of NGO

SHG’s

• At least 20 members mandatory for SHG to be recognised

• Around 8-10 SHG’s in a district

Union Cooperative

• Two-member body

• Constitutes of one elected representative of workers

• And one Bureaucrat.

Net

Fu

nd

ing

Organizational cost

Chief of Union Cooperative & bureaucrat. (₹240k + ₹420k p.a.)

Each SHG representative paid ₹36k p.a.

Net

Fu

nd

ing

NGO’S ₹1000k p.a.

Safety Equipment's and Kits

Tools and equipment ₹5000k p.a. for 100

districts

• UID based registration of workers

• Maintains database of workers(job history, personal details etc..)

• Serves as placement agencies: interact between employers and informal workers

• Receives welfare funds directly from government

• Serves as delivery agencies for more

Organise

• Serves as delivery agencies for more comprehensive state-sponsored schemes

• Fixes minimum wages & working hours in tandem with government

• Prevents exploitation

• Imparts soft skills and work related skills

• Provides the workers with safety equipment

Work & wages

• Offers Legal protection

• Provides Insurance, compensation, survivor benefits, unemployment insurance

• Will be their Political voice

• Creates awareness about Swawlamban yojna, food security schemes, and other Govt. schemes etc...

• Creates consciousness about their rights & duties

• Provides Medical facilities

Social Security

• Micro financing

• SHG’s profit is shared with workers as pension

• Encourages entrepreneurship

• Ensures Education to children and runs crèche

• Vocational training by volunteers from schools and colleges and retired professional

• Provides loans without collateral

NGO’s/SHG’s

This model, if implemented would cover all informal sector workers and ensure their social welfare with adequate support from NGO’s and Government.

1.Gathers Government support

2.Encourages Mutual cooperation

Strong organisation 1.Employment

generation

2. Sets Fair wage and work parameters

Safeguards rights

cooperation

3.Composed of informal sector workers

1.Increases Political participation

2.Education and literacy

3.Social upliftment

Integrates with

mainstream1.Soft skills

2.Work related skills

3.Marketing skills

4.Safety measures

5. First aid and disaster management training

Imparts Skills

work parameters

3.insurance & compensation

• Informal sector workers do not see benefit and disengage.

• Government and Employers indifference with the

• Integration with Government, SHG’s, NGO’s

• Building trust

• Coordination between different sects of

• Awareness about the cooperative, system and setup for their benefit.

• SHG’s profit share as contribution to pension funds indifference with the

cooperative

• Corruption within union cooperative

RISKS

different sects of union cooperative

• Charter of union cooperative

• Political drift within cooperative

CHALLENGES

funds

• Coordination with SHG’s, NGO’s

• Tie up with industrial units and training centres

MITIGATION FACTORS

REFERENCES

Organizing workers of informal sector- ILO.Innovative Employment approaches and programs for low income families.Sheila Bhalla :The Restructuring of Unorganised sector in India.Sheila Bhalla :The Restructuring of Unorganised sector in India.Statistical update on employment in informal economy- ILO,Department of Statistics 2012.

NOTEWorkers in this entire ppt refers to informal sector workers.Here p.a. refers to per annum.