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  1. 1.  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
  2. 2. Report of Ministry of Statistical and Programme Implementation, 2012, says more than 90% of India’s workforce belongs to the informal sector and accounts for 50% of the national product. 99.9% workers in the agriculture and forestry sectors are unorganized. 98% of unorganized industrial labour does not have any social security .protection.
  3. 3. 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
  4. 4. 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
  5. 5. 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.
  6. 6. NetFunding Organizational cost Chief of Union Cooperative & bureaucrat. (₹240k + ₹420k p.a.) Each SHG representative paid ₹36k p.a. NetFunding NGO’S ₹1000k p.a. Safety Equipment's and Kits Tools and equipment ₹5000k p.a. for 100 districts
  7. 7. • 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
  8. 8. • 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
  9. 9. 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 mainstream 1.Soft skills 2.Work related skills 3.Marketing skills 4.Safety measures 5. First aid and disaster management training Imparts Skills work parameters & compensation
  10. 10. • 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 fundsindifference 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
  11. 11. 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. NOTE Workers in this entire ppt refers to informal sector workers. Here p.a. refers to per annum.