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  1. 1. An unorganized worker is a home based worker, self employed worker or a wage worker in the unorganized sector or a worker who is not covered by any of the labor laws. It provides employment to more than 90% of the labor as well as makes sizeable contribution to the GDP. A large number of them are below poverty line. By 2020, India will account for nearly a quarter of the global workforce. A large proportion of the workers engaged in the urban unorganized sector is migrants from rural areas with poor. Easy entry & exit from the business & free mobility is there within the sector.
  2. 2. • 60% of female workers in developing countries are employed by the informal sector due to easy availability • PROBLEMS • Gender GAP IN WOMEN IS EVEN HIGHER • SEXUAL, PHYSICAL, MENTAL & ECONOMICAL ABUSES • No Maternity leave benefits, compensation against • Budget received by National Women's Commission is not sufficient enough to initiate any movement to alleviate challenges faced by women in these sectors. • Reasons For Their Vulnerability (a) irregular work, (b) low economic status, • (c) No bargaining power, (d) lack of control over earnings, • (e) need to balance paid work with care for children, (g) lack of assets, • (f) NO access to institutional credit, training & information • Solutions: • Sufficient deployment of Police with Female Staff to increase Public to Police ratio • Cells for Quickest Redressal of grievances concerning domestic violence, unequal pay, assault case to be setup in every nook and corner. Give exemplary punishment to the culprit
  3. 3. • The governments cannot collect taxes from informal businesses which leads to a great loss to Indian Economy. • Solution: Establish a mechanism to collect Tax from Informal Sector • Implementation: Most popular AADAHAR Card may be used to take the information(in the next phase) like Account No, PAN Card etc to keep a track. This would also help them in transferring the subsidies and return directly in their accounts. This would in turn transparency and accountability of the government hence curbing corruption • Impact: If all the population in informal sector pay their taxes well in time then our economy will be in a very healthy state than ever
  4. 4. • Social Security includes Health Security, Maternity Needs, Life & Accident Security, Unemployment Security, Old Age Security, No housing, No Pension • Solutions: limit of BPL to be raised so as to increase the coverage • Health insurance by way of reimbursement for major ailments. • House building assistance with easy loan or EMI’s • Scholarship for wards of the workers. • Easy and quick process for opening bank account & getting Insurance cover • methods of generating income through microloans or land rights when access to the formal sector is limited
  5. 5. • Implementation: National Rural Employment Guarantee Scheme. Number of working days to be increased with compensation for unemployment. Similar Scheme must also be launched in Sub urban areas. • Skill training must be given through the establishment of ITI’s at grassroots level • Employment solutions using technology, such as the Internet (e.g. interactive websites in multiple languages), mobile technology (e.g. SMS alerts) & call centers. Such technology builds potentially scalable, sustainable & profitable business models. • Job seekers to use portals like Timesjob, Naukarisearch, Monster.com as they are free and gives perfect match at the earliest. • To facilitate the transition of informal businesses to the formal sector & reduce barriers for all business (formal & informal). Hence poor can realize their potential & raise national competitiveness. Acquiring formal status allows entrepreneurs to access formal markets, invest with security, obtain new sources of credit, & defend their rights. For ex- In La Paz, Bolivia during year 2004 the municipal government reduced the number of procedures required to register a business, the number of registered business increased by 20 %. •
  6. 6. • Implementation: scheme to provides smart card based health insurance. Premium of the insurance is paid jointly by the Central Govt (75%) & State Govt (25%). • Legislation to enable private sector companies to sell insurance & pension products in the form of deferred annuity, immediate annuity, annuity with return of purchase price • Old Age Pension scheme to be enforced nationally to provide old age pension to all citizens which are 50 years of age & living below poverty line. •
  7. 7. • Implementation : Lack of Awareness is the major factor involved behind all the social Security Issues. So government & we all can take a step towards creating awareness, by letting the informal unorganized sector aware of the policies being run by the government, what are their rights, how they can demand for justice, how they can organize themselves, how they can be formalized etc. • For this various competitions like drawing, slogan writing, marathon, essay writing, paper presentation, dramas, skit can be conducted on a large scale to sensitize the informal workers to unleash the potential within them in the most efficient manner. This can also be improved by media and press coverage at wider scale, so that every possible helper can know about their(Informal workers) wretched conditions
  8. 8. • Minimum Wages Act must be executed with strictness and no compromise for mismanagement & if possible balance can be transferred to the accounts or can be given to the leader of group of workers who enjoys the majority and can take stern actions against the offender. This would prevent them from irregular, less & unstable income • Government must fix working hours for the workers so that they are not subjected to long working hours. Paid Leave, Bonus Support or Incentives awarded, if working hours are exceeded. • Employer – employee relationship must be built through mutual cooperation • Frequent & Regular raids must be conducted everyday to counter attack people employing Child Labor, making them work in hazardous conditions with sanitation and basic hygienic amenities
  9. 9. • Government must take a pledge to convert all the slums into a better place to live by the end of this 5 year plan. • Informal workers who are also slum dwellers must organize themselves like RWA’s(Resident welfare Associations) to be in direct link with the local governing bodies hence they can get issues like education, health, water Supply, electricity etc addressed at the earliest • Government hospitals must be accessible even in slum areas. All the medical students of India can be made to intern in rural areas near by, this would render great support to the basic health especially maternity needs of rural people who are mostly informal
  10. 10. • Impact: Lack of basic social security can • Debilitates the worker’s ability to contribute meaningfully to his efficiency & thus to increase production & improve productivity. • It leads to social displeasure & estrangement, especially in the wake of prosperity evident in another section of the social order. • NSSO reports clear evidences to prove labour market of India has been undergoing tremendous transformations, including growth of informal sector activities, deterioration in the quality of employment, Weakening of worker organizations, marked decline in social security etc. To a greater extent, these transformation could be related to the ongoing globalization • But by successfully implementing the solutions recommended, India would have had formalized most of its informal population in the best possible manner and hence it would boost India’s confident of being a superpower in the very near future to come
  11. 11. • http://urbanpoverty.intellecap.com/?p=590 • http://www.ijhssnet.com/journals/Vol_2_No_ 21_November_2012/23.pdf • http://www.worecnepal.org/news/problems- challenges-&-solution-women-working- informal-&-entertainment-sector • http://www.google.com/imghp • www.wikipedia.org