New legistation to cover 30 crore workers

Chandigarh, Apr 13 (UNI) A newly proposed social sector legislation intends to cover nearly 30 crore workers in the unorganised sector, said V K Malhotra, member secretary, National Commission for Enterprises in the Unorganised Sector (NCEUS).

"It is estimated that India's total workforce is approximately 39 crore of which nearly 93 per cent are in the unorganised sector, left to fend for themselves," said Mr Malhotra in his inaugural address here yesterday, at a seminar on issues relating to Social Security System of workers in unorganized sector.

Speaking at the seminar organized by PHD Chamber of Commerce and Industry (PHDCCI) and NCEUS, Mr Malhotra said the objective is to share with the stakeholders possibilities of providing social security to the unorganized sector workers and reasonable working conditions.

He added that these workers (including female workers) were characterized with employment insecurity and having dismal working and living conditions.

NCEUS has been constituted as an Advisory Body and a watchdog for the unorganised sector. The Commission has a Chairman in the ranks of Cabinet Minister and consists of an Advisory Board, experts on the unorganised sector and officers having practical, field experience, Mr Malhotra said.

Focusing on NCEUS role, he said it has been asked by the Government to review and rationalize the multifarious Labour Laws in the country. The Commission has done initial work of seeking the views of various stakeholders including the Central Trade Unions.

The Commission has also taken up a skill development initiative to target the work force which can be employed by the employers willingly.

He said a Draft on Worker's Social Security Bill 2005 for Unorganised Sector has also been prepared. Its main features include covering workers in the unorganised sector with monthly incomes of or less than Rs 5,000.

The Bill would also cover self-employed workers (including small and marginal farmers), wage workers and home based workers. In addition, informal workers in the organised sector without any social security cover (such as Badli workers and casual workers).

He said there would be a national minimum social security cover comprising health insurance, maternity benefits, life insurance and old-age pension for all eligible workers.

It will create an entitlement for all the registered workers in the country. It will be a contributory one. Contributions to be made by workers, employers (wherever identifiable), and the Government will be rupee one per day per worker (Rs 3 per workers per day or Rs 1,095 per year), he informed.

He further added that in cases like self-employed where employee-employer relationship does not exist or where it cannot be identified, or collection is too difficult, the Central and State Governments will pay the employer's contribution in 3:1 ratio respectively.

He said in order to provide a machinery for resolution of disputes between wage workers and employers in the unorganised sector, the Draft Bill has proposed creation of at least one Dispute Resolution Council in every district to be constituted by the State Governments. Before adjudicating on matters, the Council, will first, try to arrive at a conciliated settlement. It will have the powers of a Civil Court under the Code of Civil Procedure.

UNI DP OM DS1206