DECENT WORK FOR SHIPBREAKING WORKERS (A study in Alang/Sosiya and Mazgaon) By S.M. Fahimuddin Pasha A dissertation submitted in the partial fulfillment of the requirements for the Degree of Master of Arts in Globalisation and Labour Centre for Labour Studies M.A. in Globalization & Labour School of Management and Labour Studies Tata Institute of Social Sciences Mumbai – 400088 MARCH 2010
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DECENT WORK FOR SHIPBREAKING
WORKERS
(A study in Alang/Sosiya and Mazgaon)
By
S.M. Fahimuddin Pasha
A dissertation submitted in the partial fulfillment of the requirements for
the Degree of Master of Arts in Globalisation and Labour
Centre for Labour Studies
M.A. in Globalization & Labour
School of Management and Labour Studies
Tata Institute of Social Sciences
Mumbai – 400088
MARCH 2010
DECENT WORK FOR SHIPBREAKING
WORKERS
(A study in Alang/Sosiya and Mazgaon)
A dissertation submitted in the partial fulfillment of the requirements for the
Degree of Master of Arts in Globalisation and Labour
Submitted By
S.M. Fahimuddin Pasha
2008GL017
M.A. in Globalization & Labour
Under the guidance of
Dr. Sharit K. Bhowmik
Professor and Dean
School of Management and Labour Studies
Tata Institute of Social Sciences
Mumbai – 400088
MARCH 2010
i
CERTIFICATE
This is to certify that the dissertation entitled “DECENT WORK FOR
SHIPBREAKING WORKERS (A study in Alang/Sosiya and Mazgaon)” is the record
of the original work done by S.M. Fahimuddin Pasha under my guidance. The results
of the research presented in this dissertation have not previously formed the basis for
the award of any degree, diploma or certificate of this or any other university.
(Dr. Sharit K. Bhowmik)
Professor and Dean
School of Management and Labour Studies
(10th
March, 2010) Tata Institute of Social Sciences
ii
DECLARATION
I, S.M. Fahimuddin Pasha, hereby declare that this dissertation entitled „„DECENT
WORK FOR SHIPBREAKING WORKERS (A study in Alang/Sosiya and
Mazgaon)‟‟ is the outcome of my own study undertaken under the guidance of Dr.
Sharit K. Bhowmik, Professor and Dean of School of Management and Labour
Studies, Tata Institute of Social Sciences, Mumbai. It has not previously formed the
basis for the award of any degree, diploma or certificate of this or any other university.
I have duly acknowledged all the sources used by me in the preparation of this
dissertation.
10th
March, 2010 (S.M. Fahimuddin Pasha)
iii
ACKNOWLEDGEMENT
It is indeed a great pleasure to attribute my thanks and regards to the people who
bestowed the heartiest and kind guidance in helping me to develop this research report
that would not have been possible without the valuable inputs from different people in
terms of providing knowledge, information, support, help and time. At the outset, I
would like to extend my sincere thanks to the faculty of Tata Institute of Social
Sciences (TISS) who helped me in understanding about conditions of the working
class in the informal economy during the classroom teaching and field-based
assignments.
I am deeply indebted to my research supervisor Dr. Sharit K. Bhowmik, Professor
and Dean, School of Management and Labour Studies, TISS, Mumbai. This study
would not have turned out as it has without his able supervision.
I would like to express my gratitude to Mumbai Port Trust Dock and General
Employees‟ Union (MPTDGEU) for providing all the necessary support for this
research work. I am grateful to the veteran leader of Indian Trade Union Movement
and president of MPTDGEU Dr. Shanti Patel and General Secretary of the Union Adv.
S.K. Shetey, for their understanding and encouragement, which helped me to carry out
my research work successfully. It was a great learning experience for me to work
under their guidance. Also, I extend my gratitude to all the members and office
bearers of MPTDGEU especially Mr. Sudhakar Apraj, Mr. Vidyadhar Rane, Mr.
Maruti Vishwasrao, Adv. Jai Prakash Sawant and Mr. Vithoba Pawar, for providing
me supports in the field and giving me insights about their profession which added
value to this study and I sincerely express my gratitude to the General Secretary of
ASSRGWA, Mr. Vidyadhar Rane, for his unconditional and timely guidance and
support. His motivation and encouraging words shall always be a spirit of motivation
for me to do my best. I want to extend my sincere thanks to other office bearers of
ASSRGWA especially Mr. Vikas Nalawade, Mr. Shabbir Khalani and Mr. Ram Patel
for their affection and support throughout my study.
I am also thankful to our senior students especially Shahina Parveen, a research
scholar of TISS, whose deep understanding of the research helped me to formulate my
research in a better manner. At last but not the least I cannot forget to thank the
iv
shipbreaking workers in Alang/Sosiya(Gujarat) and Mazgaon(Mumbai) who not only
responded my questions but had to bear with my ignorance about field realities. A lot
of people have helped me in this endeavor. I apologies to those whom I failed to
mention.
Date: 10/03/2010 S.M.Fahimuddin Pasha
v
ABSTRACT
The study „Decent Work for the shipbreaking workers‟ (A study in Alang/Sosiya
and Mazgaon) is an attempt to assess knowledge about the areas where shipbreaking
workers are not getting the remedies of Decent Work. Decent Work is a concept
formulated by ILO in order to make the world of work, free from exploitation and
gender biasness by promoting rights at work, employment opportunity, social dialogue
and social protection. ILO is trying to cover the unorganized sector with the remedies
of Decent Work, so that the „bad jobs‟ of unorganized sector will become good jobs.
The shipbreaking activities in India shifted from the European countries in 1980s.
The industry not only explores the employment opportunities but also gives steel to the
country without causing depletion to the natural resources. Though this industry plays
a vital role in strengthening the economy, it has few drawbacks also. The main concern
is related with health, safety and environment. Shipbreaking activities have adverse
impact on environment. The work which is offered by this industry is dangerous and
peculiar in its nature. For making the industry less hazardous and environmental sound
management ILO, IMO and Basel Convention have come up with their guidelines. The
Supreme Court of India has also given its order in this regard.
Apart from India the ship dismantling is carried out in Bangladesh, China, Pakistan,
Turkey and Vietnam. The two main places in India where shipbreaking activities are
undertaken are Mazgaon (Mumbai) and Alang/ Sosiya (Mumbai). This study is based
on the survey of these two areas. In Alang and Mazgaon, the atmosphere of fear and
intimidation ensures that workers remain submissive. From drinking water to social
security measures, there are several issues which need to be addressed by suitable
interventions. The study compares the shipbreaking workers‟ conditions with the
decent work indicators by examining their conditions, and comes up with some
suggestions to improve the conditions of the workers.
vi
CONTENT
Certificate..............................i
Declaration...........................ii
Acknowledgement.................iii
Abstract.................................v
List of figures and tables.......vii
Appendix…………………....viii
Abbreviations .......................ix
Glossary................................xi
SECTION I INTRODUCTION 1-3
SECTION II REVIEW OF LITERATURE 4-27
II.1 Decent Work
II.2 Informal Sector
II.3 Guidelines for shipbreaking
II.4 Case studies of different countries
SECTION III OBJECTIVES AND RESEARCH METHODOLOGY 28-31
III.1 Objectives of the study
III.2 Research question
III.3 Research Methodology
III.4 Research Design
III.5 Area of the study
SECTION IV STRATIFICATION OF THE WORKERS 32-33
SECTION V FINDINGS 34-47
V.1 Analysis and Interpretation of Data
V.2 Major issues related with shipbreaking workers
V.3 Role of Trade Union
SECTION VI WORKERS AND DECENT WORK INDICATORS 48-53
SECTION VII CONCLUSION AND SUGGESTIONS 54-56
BIBLIOGRAPHY……………………………………………………………… 57-59
APPENDIX………………………………………………………………………..60-78
vii
LIST OF FIGURES AND TABLES:
A. FIGURES
Figure IV.1: Staff structure of the shipbreaking industry in India 32
Figure V.1: Categories of workers 34
Figure V.2: Migrant workers 35
Figure V.3: Working conditions of workers 36
Figure V.4: Management behavior 37
Figure V.5: Members of the Union 38
Figure V.6: Opinion about the existing Union 39
Figure V.7: Awareness of safety rules 40
Figure V.8: Availability of medical staff on work place 41
Figure V.9: Injuries of workers while working at plot 42
Figure V.10: Reason(s) for injury 43
Figure V.11: Getting money during scarcity 44
B. TABLES:
Table II.1: Workers of organised and unorganised sector in India 10
Table II.2: Hazards of shipbreaking industry 16
Table II.3: Year wise fatal accidents in Alang/Sosiya 27
viii
APPENDIX:
Appendix1: Geographical locations 60
Appendix2: Sample of an interview schedule 61
Appendix3: Order of the Supreme Court of India 67
Appendix4: Materials which are obtained while breaking ships 71
Appendix 5: Hazardous substances 72
Appendix6: Occupational diseases and accidents 73
Appendix7: Photographs related with the study 75
ix
ABBEREVIATIONS
ACM- Asbestos-Containing Materials
AERB- Atomic Energy Regulatory Board
ASSRGWA- Alang Sosiya Ship Recycling & General Workers Association
DWT- Deadweight Tons
ESM- Environmental Sound Management
GMB- Gujarat Maritime Board
HMS- Hind Mazdoor Sabha
HSE- Health, Safety and the Environment
HW- Hazardous Waste (Rule)
ICLS- International Conference of Labour Statisticians
IMF- International Metal Workers Federation
IMO- International Maritime Organization
IWPSR- Industry Working Party on Ship Recycling
MEPC- Marine Environment Protection Committee
MEPC- Maritime Environmental Protection Committee
MPTDGEU- Mumbai Port Trust Dock and General Employees‟ Union
NCEUS- National Commission for Enterprises for the Unorganised Sector
NGOs- Non-Governmental Organizations
NIOH- National Institute of Occupational Health
OECD- Organization for Economic Co-operation and Development
OSH- Occupational Safety and Health
PF- Provident Fund
PPEs- Personnel Protective Equipments
x
SC- Supreme Court of India
SMEFI- Steel Metal and Engineering Federation of India
SPCB- State Pollution Control Board
SRIA- Ship Recycling Industries Association (India)
UNEP- United Nations Environment Programme
UNEP- United Nations Environment Programme
WIEGO- Women in Informal Employment: Globalizing and Organizing
xi
GlOSSARY
Rs.
It refers to Indian rupees. The conversion of Indian rupees to US dollars is –
US$ 1 = Rs. 40-45.
Lakh
It is a unit in the „Indian Numbering System‟. An Indian lakh is equivalent to
hundred thousand.
Crore
It is a unit in the „Indian Numbering System‟. An Indian crore is equivalent to
ten million.
Chantiwala
The literal meaning of „Chantiwala‟ is a person who sorting out. The term uses
for the particular category of an unskilled worker in Alang/ Sosiya and
Mazgaon. They work in a group of 5-6 and collect only ferrous metal from the
vessels.
Begari
The term uses for the particular category of unskilled workers in Alang/Sosiya
and Mazgaon. They use to pick up small pieces of metal while cutting big
pieces of metal into small once and also involve in cleaning job of a particular
plot.
Greenpeace
It is an International activist group working on the issue of environment. They
raise voices against the toxic wastes causes due to dismantling across the
world including India.
Jodi
The literal meaning of „Jodi‟ is addition. They are manual workers who
perform their job in the group of 4-5 in the plot of Alang/ Sosiya and Mazgaon.
Their duty is to carry big ropes from one place to another and tight the vessels
with ropes and pull it.
Malpani
It is a term use for the particular category of unskilled workers in Alang/
Sosiya. There duty is to collect only non-ferrous metal from the vessels.
xii
Mukadam
Mukadam is a group leader in a particular plot of Alang/ Sosiya and Mazgaon.
Under his guidance, other workers perform their duty.
Shipbreaker
The term uses for the employer in shipbreaking industry. They get plot from
GMB and MBPT on lease, where ship dismantling is carried out.
1
SECTION I
INTRODUCTION
“Decent work1 for Shipbreaking workers” title that deals with the issue of
shipbreaking workers in the context of decent work components. „Decent work‟ is a
concept which is formulated by ILO in order to implement it in the working society so
that it could be free from the gender – bias, exploitation, vulnerable and pathetic
working condition. It also believes in generating employment opportunities for the
workers under a safe and hazardous free environment by promoting social dialogue
among the different stake holders in the world of work. According to the ILO Director
General Juan Somavia, “The primary goal of the ILO today is to promote
opportunities for women and men to obtain decent and productive work, in conditions
of freedom, equality, security and human rights” (ILO, 1999).
There are four important components of decent work which are as follow
Right at work
Employment opportunity
Social Dialogue
Social Protection
Apart from the above components decent work deals with other several issues
such as unemployment, vulnerable working conditions, lack of voices of working
class, insecurity, gender bias etc.
India is a country having more than 115 crore population where almost 40 crores
are working population. According to the 61st round of National Sample Report 2005,
92% of the workforce is in unorganised sector where they are not getting adequate
social protection and not having collective voices too. Whereas for only 2.8 crore
1. The term „decent work‟ was introduced in 1999 in the report of the Director General to the International Conference meeting in
its 87th Session.
2
(NSS-2005) workers for organised sector there are more than 65000 trade unions are
working. In India Trade Union movement is facing is undergoing a crisis such as
The role of trade Union is mainly limited to the organised sector workers. It is
one of the major challenges for the trade union to unionise the unorganised
sector workers.
Mushrooming of so many trade unions in India also hampers the workers
agenda and causes division among them.
Not having adequate representation of women and youth in trade union
movement.
Implementation of decent work remedies for the informal workers where the
nature of work is very much peculiar and harsh.
Shipbreaking industry is also not free from the characteristics of the informal
economy. Shipbreaking is a recycling industry that dismantles old ships to recover
steel scrap and other materials. It can be conducted at a beach, pier, dry dock or
dismantling slip. Steel continues 90% in terms of value and other materials (machine,
equipment, furniture and fittings, and so on) constitute the remaining 10%.
Shipbreaking is a challenging process involving a complexity of issues like ecology,
environment, labour, health and safety. This industry generally recognized as a
hazardous industry, mainly concentrated in the developing countries of Asia. Ship
breaking industry shifted from high income countries (in the 1960s) to middle income
countries (in the 1980s and 1990s). This is due to the growing awareness and concern
on the environment and stringent regulations followed in developed countries and the
availability of the cheap labour, poverty and less stringent norms or legislation
pertaining to environment in developing countries. According to the Commission of
the European Communities (2005) the Countries where shipbreaking are carried out
are India (42%), Bangladesh (23%), China (15%), Pakistan (8%), Turkey (1%),
Vietnam (1%) and others 10(%).
An average of 700 ships are taken for dismantling every year the world over and
about 350 to 450 ships are scraped in India. Alang and Sosiya (Gujarat) and
Darukhana (Mumbai) are the two important places in India where shipbreaking
3
activities are carried out. A part from these places there are other places in India also
where the ship dismantling are happening in a very small extent Tadri and Maipe
(Karnatka), Baypore (Kerala), Vishakhapatnam (Andhra Pradesh), Valinokan and
Tuticorn (Tamil Nadu). In India more than 60000 people directly and almost 100000
indirectly are getting livelihood from this particular industry. In fact Alang- Sosiya is
the largest yard of the world that consists 183 shipbreaking yards. It is stretching to
distance of 15 kilometers and with the capacity to break Very large Crude carrier and
Ultra Large Crude Crarrier vessels, a facility unavailable elsewhere. Mazgaon consists
19 plots and comparatively smaller than Alang/Sosiya.
The majority of shipbreaking workers are migrant workers and coming from
different weaker states of India such as Bihar, Uttar Pradesh, Jharkhand, Orissa and
Chhattisgarh. They hire either on a daily or monthly basis, or a contract basis without
any written contract of employment. It shows that they do not have any job security.
They are mostly uneducated, relatively young between 19 and 45, and mostly male.
Women workers are only 3% and they have no particular skill. Workers
categorization is based on the different stages of shipbreaking from gas cutter to
unskilled workers. They use to live in small and clumsy rooms which are made up of
asbestos, plywood, metal sheets in a very pathetic condition. They are subjected to
various occupational diseases and other diseases because of their working condition
which is very much hazardous and unsafe in nature. Medical expenses and social
security are not considerd as employers‟ responsibility and these practices are totally
based on shipbreakers‟ whim and ways. Even they are not getting the basic facilities
such as drinking water and toilet. They do not come under the labour legislation and
also not getting the benefit of P.F and insurance. So we can say that shipbreaking
workers are leading a vulnerable life because of hazardous and peculiar nature of their
job. This study will try to explore the reasons for not getting the remedies of decent
work to the shipbreaking workers and also give suggestion in this regard
4
SECTION II
REVIEW OF LITERATURE
Review of literature has been synthesized in the following four sections. In the
first section “decent works” its components, agenda and indicators have been
discussed from the different literatures. The second section has dealt with the informal
economy in special reference to Indian context. “Guidelines” regarding safety and
security for the shipbreaking workers have been reviewed in the third section which
has been suggested by various renowned national and international organizations such
as ILO, IMO, Basel Convention, Supreme Court of India and Gujarat Maritime
Board. And In the last section case study of the various countries where the ship
dismantling process is carried out including India have been reviewed.
II.1 Decent work
Decent work deals with several issues such as unemployment, vulnerable
working conditions, lack of voices of working class, insecurity, gender bias etc. ILO
is trying to promote decent work in all the countries of the world because it believes
that poverty anywhere is a threat to prosperity everywhere. The primary goal of the
ILO today is to promote opportunities for women and men to obtain decent and
productive work, in conditions of freedom, equality, security and human rights
(Somavia, 1999). This decent work agenda is or not only for formal sector worker but
also for unregulated wage workers, self employed workers and home based workers
those who work in the informal sector (Ghai, 2003)
II.1.1 Dimension of decent work
Anker et al. (2002) has given six important dimensions of decent work which he
derived from the statement of Somavia.
Opportunities for all to find any kind of work, including self-employment,
family work, and wage employment in both the informal and formal sectors.
Freedom of choice of employment, i.e. excluding forced, bonded and slave
labour and unacceptable forms of child labour.
5
Productive work, providing adequate incomes and ensuring competitiveness.
Equity in work, including absence of discrimination in access to and at work.
Security at work, as far as health, pensions and livelihoods are concerned.
Dignity at work, not only in the respect that is extended to workers, but also in
their freedom to join organizations which represent their interests and to voice
concerns and participate in decision making about working conditions.
II.1.2 Decent work Agenda
Dharam Ghai (2003) has asserted about the four main strategic objectives of
decent work which is obtain by ILO.
Fundamental principles and rights at work and international labour standards
The ethical and legal framework for all elements of decent work is carried out by
fundamental principles and rights at work and international labour standard. Their
objective is to ensure that work is associated with dignity, equality, freedom, adequate
remuneration, social security, voice, representation and participation for all categories
of workers. ILO declaration on Fundamental Principles and Rights at Work in 1998,
insisted on four major areas which are freedom of Association (collective bargaining),
forced labour, discrimination (at work) and child labour. These rights are considered
so basic that their acceptance is regarded as a prerequisite of ILO membership.
Certainly, they form the core of the rights component of decent work.
Employment and work
Employment is a vital component of decent work. It refers not just to wage jobs
but to work of all kinds– self-employment, wage employment, work from home, full-
time, part-time, casual work and to work done by women, men and children. For
decent work to obtain, certain conditions must be satisfied such as adequate
employment opportunities, adequate remuneration, no discrimination on the basis of
sex, gender, region and minorities, protection against accidents, unhealthy and
dangerous working conditions, and excessively long hours of work, right of collective
bargaining with intervention of state and an essential minimum of social security.
6
Work that meets these conditions is a source of dignity, satisfaction and fulfillment to
workers. It motivates them to give their best efforts and contributes to harmonious
working relations, political stability, economical growth and strengthening the
democracy.
Social protection
It is said that there are six major contingencies in the life of a person which may
affect the person‟s earning capacity. They are sickness, accident, maternity,
unemployment, old age and death. Apart from these contingencies there are other
situations also like destitution, extreme economic fluctuations, natural disasters and
civil conflicts that cause vulnerabilities for the bread winners and their dependents.
So, it is very clear that a person who is the breadwinner of the family requires social
security against a variety of contingencies and vulnerabilities. A sound social
protection strategy should also address the needs of vulnerable groups such as
orphaned or abandoned children, single mothers, female-headed households, widows,
old persons in need and the disabled. They should promote health, confidence and a
willingness to accept technical and institutional innovations for higher productivity
and growth.
Social dialogue
It is defined by the ILO to include all types of negotiation, consultation or simply
exchange of information between, or among, representatives of governments,
employers and workers, on issues of common interest relating to economic and social
policy. It can exist as a tripartite process, with the government as an official party to
the dialogue or it may consist of bipartite relations only between labour and
management (or trade unions and employers' organisations), with or without indirect
government involvement. ILO conventions freedom of association is related with the
social dialogue. It provides voice and representation to participants in the production
process. In this way it is a vital element in a representative and participatory
democracy. The main goal of social dialogue itself is to promote consensus building
and democratic involvement among the main stakeholders in the world of work.
Apart from the four above strategies Ghai (2003) also explored the indicators of
the decent work. He asserted that, “A different approach used by some analysts is to
7
classify decent work into eleven measurement categories: employment opportunities,
acceptable work, adequate earnings and productive work, decent hours, stability and
security of work, balancing work and family life, fair treatment in employment, safe
work environment, social protection, social dialogue and workplace relations, and the
economic and social context of decent work.
He also said that decent work can measured at three different levels- the macro
(national), meso (enterprise) and micro (individual) level which is very much related
with the four strategies of decent work. Karuvilla (1996) categorized the countries on
basis of the freedom of association – category A (Independent, Trade union is free
from the government control), category B (Unclear, some degree of government
control on trade union) and Category C (Not Independent, not free from the
government control or there is only one Government friendly federation). Authors
(Sen 2000; Saget 2001; Ghai 2003;) agreed that there is lack of income and
employment opportunities, insufficient social protection, lack of safety at work place
and unhealthy working conditions for informal sector workers.
II.2 Informal sector
The most visible occupational group that work on the streets or in the open air
belong to Informal economy. In developing countries city streets and village lanes and
in many developed countries are lined with barbers, cobblers, rag pickers, vendors,
hawkers and many others are part of the informal economy. Even in rural area a large
section of workforce earn their livelihoods working on farm, making handicraft, cattle
farming, collecting and processing minor forest farms. They all consider in informal
sector. The term “Informal sector” had been coined by a British economist, Keith
Hart in 1971. He used this term while doing his study of „Economic activities in
Urban Ghana‟ (Keith Hart 1973). Officially the concept of „informal sector‟ was used
in the Kenya Employment Mission in 1972. It had been recognised that the traditional
sector should not be persisted but had expanded to include profitable and efficient
enterprises along with marginal activities. So instead of using „traditional sector‟ it
was decided to use the term „informal sector‟.
II.2.1 Features of Informal economy
8
ILO and WIEGO (2003)2 explored the new definition of Informal economy that it
comprised all forms of informal employment- that is informal without contracts,
workers benefits or social protection- both inside and outside informal enterprises,
including self employment in informal enterprises, wage employment in informal
firms and industrial outworkers. The above definition comprises the features of
informal economy which are as follow-
Self-employment in informal enterprises: workers self employee in unregistered
enterprises, engage in own small trade, operate farm, either own account operators
including unpaid family workers.
Wage employment in informal jobs: workers employing for remuneration through
direct employer or contractor or agencies without having social protection, formal
contracts and worker benefits. Domestic workers, unregistered or undeclared workers
and temporary or part-time workers comprises in this category of Informal economy.
Industrial outworkers: They are mainly unprotected wage workers in the formal
sector. Though they work in formal sector but come under informal sector because
they do not get any legal remedies like formal sector‟s workers.
Over the years, there are the crystallized debates on „informal sector‟ regarding
its existence and relation with formal sector. It has been said that there are three
importantschools of thoughts on this particular sector (Martha Alter Chein, 2004).
They are as follows-
The dualist school - This school was popularised by the ILO in the 1970s, with the
notion that the informal sector is comprised of marginal activities. It provides income
for the poor and a safety net in times of crisis. According to the thinkers of this school
(Hart 1973; ILO 1972; Sethuraman 1976; Tokman 1978), due to high growth of
population (surplus labour) or slow rate of economic growth persist the informal
activities.
The structuralist school- This school of thought is subscribed to the notion that the
2. In 2003, the ICLS expanded the definition to include informal employment outside of informal enterprises.
9
informal sector should be seen as subordinated economic units of formal sector. The
proponents of this school (Caroline Moser; Alejandro Portes and others) said that it
help large capitalist firm in order to reduce input and labour cost. In the structuralist
model various modes of production are seen not only to co-exist but also to be
inextricably connected and interdependent (Moser 1978; Castells and Portes 1989).
The legalist school- This school is popularised by Hernando de Soto in the 1980s and
1990s, with the notion that the informal sector is comprised of micro-entrepreneurs.
So, that costs, time and effort of formal registration can be avoid (de Soto 1989). de
Soto et al, insisted that unreasonable government rule and regulation stifle private
enterprise. He also stated that micro-entrepreneurs will continue to produce
informally so long as government procedures are cumbersome and costly.
Structural adjustment during the economic crisis is also responsible for the
expansion of informal economy. This feature has been highlighted in the Latin
American economic crisis (Tokman; 1992) and Asian crisis (Lee; 1998). When
private firms or public enterprises are downsized or closed, the workers who
retrenched do not able to find new formal jobs. So they have to turn to the informal
economy for their livelihood (Martha Chein; 2006).
Informal economy is one of the important features of the developing countries.
Informal employment is comprises 48 percent in North Africa, 51 percent in Latin
America, 65 percent in Asia and 72 percent in sub- Saharan countries. And they
mainly comprises in agriculture sector.
II.2.2 Informal Sector in India:
In the Indian context the informal employment and informal economy are lacking
in the conceptual clarity. According to the Central Statistical Organizations the term
Organised enterprise is used for the small unit of manufacturing sector with ten or
more workers with powers or 20 workers without power. However this definition
doesn‟t cover the various aspect of unorganised sector. A new definition was
propounded by NSSO, "The unorganised sector consists of all unincorporated private
enterprises owned by individuals or households engaged in the sale and production of
10
goods and services operated on a proprietary or partnership basis and with less than
ten total workers". Unorganised or informal employment can also defined as
"Unorganised workers consist of those working in the unorganised enterprises or
households, excluding regular workers with social security benefits, and the workers
in the formal sector without any employment/ social security benefits provided by the
employers". The above two definitions give the contrast between the informal sector
and informal work.
The data related with the labour force in India which comprises informal and
formal sector are as given in table
Table II.1: Workers of organised and unorganised sector in India
Agriculture Non Agriculture All
Organised Unorganised Total Organised Unorganised Total Organised Unorganised Total
SE 2.3 163.9 166.2 2.9 89.2 92.1 5.2 253.1 258.2
RW 1.2 1.6 2.8 41.9 24.8 66.7 43.2 26.4 69.5
CW 2.5 87.4 89.9 11.7 28.1 39.8 14.2 115.5 129.7
Total 6.1 252.8 258.9 56.5 142.1 198.5 62.6 394.9 457.5
Note: Number of workers in (Million) SE = Self –employed, RW= Regular Worker, CW=Casual Worker.
Source: National Sample Survey 61st Round 2004 – 2005
The above data shows that the total workforce in India is 457.5 million where
394.9 million are from unorganised sector that comprises 92% of the total workforce.
And day by day this unorganised sector is expanding. The Informal economy in India
is playing a vital role in order to provide livelihood to a large section of the working
class as well as contributing in National Domestic Product that comprises almost 60%
share in it (NCEUS 2007).
In Indian Constitution there is overreaching framework to secure the rights of
workers and give them security against the exploitation. Apart from Fundamental
rights and Directive Principles there are few Central laws also that regulate the
11
working conditions of workers in the unorganised sector which comprises in three set
of group as follow (NCEUS 2007)-
a) Laws which apply to all sections of the unorganised sector labour
The Equal Remuneration Act, 1976
The Bonded Labour System (Abolition) Act, 1976
b) Laws which apply to some sections of the unorganised sector labour
Minimum Wages Act, 1948
Child Labour (Prohibition and Regulation) Act, 1986
Dangerous Machines (Regulation) Act, 1983
The Employment of Manual Scavengers and Construction of Dry
Latrines (Prohibition) Act, 1993
Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979
Motor Transport Workers Act, 1961
Sales Promotion Employees (Conditions of Services) Act, 1976
Trade Unions Act, 1926
c) Laws which can be extended to the Unorganised Sector Labour
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966.
Payment of Wages Act, 1936
The Building and Other Construction Workers (Regulations of
Employment and Conditions of Service) Act, 1996.
The Contract Labour (Regulation & Abolition) Act,1970
The Maternity Benefit Act, 1961
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Workmen's Compensation Act, 1923
Weekly Holidays Act, 1942
National Commission on Labour has described 106 categories of workers
including agricultural workers, agarbatti makers, beedi rollers, construction workers,
home-based workers, rickshaw pullers, street vendors, shipbreaking workers and so
on in the informal sector in India. Shipbreaking Industry comprises in informal sector,
so the workers belong to shipbreaking industry automatically come under the
Informal economy.
II.3 Guidelines
This section of the dissertation has been dealt with the guidelines given by the
various national and international renowned organizations- ILO, IMO, Basel
Convention and Honorable Supreme Court of India. These guidelines mainly
concerned with the issue of health and safety of shipbreaking workers as well as
define the shipbreaking industry and responsibilities of various stakeholders of the
industry. The guidelines of the above renowned organization are as follow-
II.3.1 ILO guidelines
ILO guidelines namely “Safety and health in shipbreaking Guidelines for Asian
countries and Turkey” came with the notion for making a framework that can prevent
the shipbreaking workers from the health hazard and accident, so the concept of safe
work place can be achieved. In November 2002, when the 285th
session of the
Governing body of ILO was held during that time it was decided to organize a
meeting of Experts on Safety and Health in Shipbreaking for Selected Asian
Countries and Turkey. And that meeting was held during 7 to 14 October 2003 in
Bangkok, Thailand, where the above guidelines were adopted by the Interregional
Tripartite body comprises representatives of government, employer and employee of
five different countries: Bangladesh, China, India, Pakistan and Turkey. Apart from
the above representatives technical specialists from major ship-owning countries and
observers were also presented.
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These guidelines are applicable to all those government authorities, workers and
employers organizations and industry associations, whose activities influence the
safety, health and welfare of persons engaged in ship-breaking. (ILO- guidelines, page
2). The main objectives of these guidelines are to provide protection to shipbreaking
workers from workplace hazards and to facilitate the improved management of
occupational safety and health by establishing a coherent national policy and
principles in this regard. It has been also suggested to improve knowledge and
competence for Occupational Safety and Health (OSH). There are lots of concerns
regarding this industry; in general these concerns are focus on two main areas- health
and safety of workers and environmental issues.
It is said by ILO that, “These International Labour Organization (ILO) guide-
lines are the first of their kind to provide assistance to ensure safe work in
shipbreaking within the framework of the ILO‟s decent work agenda. In so doing they
provide advice on the transformation of a mainly informal economy activity into a
more formal organised one”.
The above statement shows that ILO is very much committed for providing the
decent work remedies to the shipbreaking workers. Along with decent work there are
other foremost areas also which are covered by ILO guidelines; responsibilities of
concerned authorities, legal framework, responsibilities of various stake holders (such
as employers, suppliers, manufacturers and designers) of the Industry and rights of
workers. These guidelines also suggested the definition of shipbreaking industry and
concerned with the issues of occupational safety and health management.
ILO in its guidelines has explored the few major challenges for the shipbreaking
activities (ILO guidelines, page 4) that these activities is one of the most hazardous
occupations in the world and mainly it is not covered by labour laws because
generally the locations where ship dismantling has been carried out make the
enforcement of laws and regulations difficult. Even the temporary establishment of
the shipbreaking site also make difficult to enforce the International Labour Standard
of the ILO.
Regarding safety and health in shipbreaking ILO guidelines has been suggested
that in the future, all ships should carry a “green passport” which would follow a ship
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from the day it was built. And authorization certificate for dismantling the ship will be
given to which are safe for breaking (ILO guidelines, page 51).
„Certificate for Dismantling‟ comprises the following information
An updated list of hazardous substances and wastes on the ship to be
dismantled provided by the ship owner in accordance with the Basel
Convention and the ICS Industry.
Ensuring on the part of owners, brokers and breakers that a ship to be
dismantled is decontaminated and gas free for hot work.
The relevant information (drawings, etc.) which is necessary for the
development of a safe shipbreaking plan.
OSH management systems that cover safe operations in the ship, the breaking
facility and the surrounding area.
Implementation of relevant conventions and documents on OSH, working and
living conditions and the environment in the shipbreaking industry.
Provision of appropriate housing, welfare and sanitary facilities for all
workers.
ILO guidelines (Ibid, page-7) have thrown light on Occupational hazards in
Shipbreaking operations that cause injuries, ill health and death of workers. These
include hazardous exposures generated by asbestos, PCBs, heavy metals, chemicals,
excess noise and fire. The main reasons behind the occupational hazards are
inadequate workers training program and lack of PPEs.
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ILO guideline has given a list of various hazards related to the shipbreaking Industry.
We can understand that hazards by the following given chart-
Table II.2: Hazards of shipbreaking industry
Hazards with the potential of causing accidents
Fire and explosion: explosives, flammable
materials
Falling objects
Trapping or compression
Snapping of cables, ropes, chains, slings
Heavy objects
Access in progressively dismantled
vessels (floors, stairs, passageways)
Electricity (electrocution)
Poor illumination
Falls from height inside ship structures
or on the ground
Moving objects
Wet surfaces
Sharp objects
Oxygen deficiency in confined spaces
Lack of PPE, housekeeping practices,
safety signs
Shackles, hooks, chains
Cranes, winches, hoisting and hauling
equipment
Hazardous substances and wastes
Asbestos fibres, dusts
Heavy and toxic metals (lead, mercury,
cadmium, copper, zinc, etc.)
Organometallic substances (tributyltin,
etc.)
Lack of hazard communication (storage,
labelling, material safety data sheets)
Batteries, fire-fighting liquids
PCBs and polyvinyl chloride (PVC)
(combustion products)
Welding fumes
Volatile organic compounds (solvents)
Inhalation in confined and enclosed
spaces
Compressed gas
Physical hazards
Noise
Extreme temperatures
Vibration
Radiation (ultraviolet, radioactive
materials)
Mechanical Hazards
Trucks and transport vehicles
Scaffolding, fixed and portable
ladders
Power-driven hand tools, saws, grinders
and abrasive cutting wheels
Failure of machinery and equipment
Poor maintenance of machine and
equipment
Lack of safety guards in machines
Sharp-edged and other tools
Structural failure in the ship
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Biological hazards
Toxic marine organisms
Risk of communicable diseases
transmitted by pests, vermin, rodents,
insects and other
animals that may infest the ship
Animal bites
Vectors of infectious diseases
(TB, malaria, dengue fever, hepatitis,
respiratory infections and others)
Ergonomic and psychosocial hazards
Repetitive strain, awkward postures,
repetitive
and monotonous work, excessive
workload
Long working hours, shift work, night
work, temporary employment
Mental stress, anti-social behavior
(aggressive behavior, alcohol and drug
abuse, violence)
Poverty, low wages, under-age workers,
lack of education and social environment
General concerns
Lack of safety and health training
Inadequate housing and sanitation
Inadequate accident prevention and
inspection
Poor work organization
Inadequate emergency, first-aid and
rescue facilities
Lack of medical facilities and social
protection
Sources: ILO guidelines
ILO has also suggested various measures against the above hazards for achieving
the target of safe work place for shipbreaking workers and it can be possible if the
stakeholders of the industry will show their interest and effort to implement these
guidelines.
II.3.2 IMO guidelines
International Maritime Organization is the specialized agency of United Nation
which is responsible for improving maritime safety and preventing pollutions from
ships. IMO came with the guidelines namely „IMO guidelines on ship recycling‟
which was adopted on 5th
December 2003. The main objectives of these guidelines to
give guidance to all the stakeholders in the ship recycling process comprises flag,