MAJOR FACTORS AFFECTING UNORGANIZED LABOUR SECTOR AND SOLUTIONS FOR THEM:
INTRODUCTION
In contrast to regular employees who receive social security benefits from their employers and employees in the formal sector who do not receive any employment-related benefits from their employers, unorganized workers are individuals who work in the unorganized sector or households. According to the Economic Survey 2007–2008, the unorganized and self-employed make up 93% of India’s workforce. The unorganized work force in India has been divided into four divisions by the Indian government’s Ministry of work based on occupation, type of job, particularly troubled categories, and service categories. Unorganized labour is a crucial component of every economy. It consists of employees who are not covered by any laws or rules, and they frequently hold low-wage positions with no guarantee of employment. A wide variety of professions, including as domestic workers, construction workers, street vendors, and agricultural labourers, are included in the unorganized labour sector. The main influences on the unorganized labour sector will be discussed in this blog. Small and marginal farmers, landless agricultural labourers, sharecroppers, those working in animal husbandry, beetroot rolling, labeling and packing, construction workers, leather workers, weavers, artisans, salt workers, employees of brick kilns and stone quarries, employees of saw mills, oil mills, etc. fall into this category. This group includes workers who are attached to agriculture, bonded workers, migrant workers, contract employees, and occasional workers.
Factors Affecting the Unorganized labour Sector:
1. Leach of legal protection: One of the biggest problems faced by workers in the unorganized labour market is a lack of legal protection. They are frequently open to exploitation, abuse, and unfair treatment because they are not subject to any legal restrictions or protections. Workers can be subjected to subpar working conditions, reduced compensation, and denial of fundamental rights like sick leave and health insurance by employers in this industry. Workers in the unorganized labour market are also unable to hold their employers accountable for any wrongdoing or infractions since they lack legal protection. In the event of any problems or complaints, they have limited recourse to legal remedies or assistance. The cycle of exploitation and abuse is furthered by this, making it difficult for workers to better their working circumstances and financial situation.
2. Low wages: For workers in the unorganized labour market, low pay is a major problem. They frequently put in long hours and perform physically taxing professions for meager pay. The minimum wage is paid to many workers, which is frequently insufficient to meet their basic requirements, let alone those of their families. The cycle of inequality and low pay in the unorganized labour sector is a factor. Many employees in this industry must work numerous jobs just to make ends meet, which can be draining on both their physical and mental well-being. They frequently lack work stability, and the time of year or the employer’s whims might affect their pay.
3. Poor working conditions: One of the biggest problems encountered by workers in the unorganized labour market is poor working conditions. In this industry, extended workdays without breaks or rest times are rather common. They could be forced to labour in risky and harmful environments without the required safety equipment or training. Since many employees in this industry are employed in the unorganized sector, they lack access to necessities like fresh air, toilets, and clean water. The unorganized labour sector’s subpar working conditions can have a serious negative impact on employees’ health. Due to exposure to risky chemicals, dust, or other toxic materials, they may be at risk of acquiring respiratory ailments, skin infections, or other health problems. Poor working conditions can also cause stress, exhaustion, and mental health problems since employees may be required to do physically and psychologically taxing tasks without assistance or rest.
4. Discrimination: Discrimination is a serious problem that unorganized labourers must deal with. Due to their gender, colour, religion, caste, or other traits, workers in this industry are frequently the target of prejudice. Particularly female employees frequently experience harassment and discrimination at work. They could not be eligible for some jobs or types of labour, and they might be paid less than their male colleagues. Race, religion, caste, and other criteria can all be used as grounds for discrimination. Workers from marginalized groups may experience discrimination and exclusion from particular career opportunities or types of labour. Additionally, they could get unequal pay or other sorts of discriminatory treatment.
Covid being the major factor affecting the unorganized sector:
The unorganized labour market has been significantly impacted by the COVID-19 outbreak. Workers who are not covered by labour regulations and do not have access to social security benefits like health insurance, paid time off, and retirement benefits are referred to as being in the unorganized labour sector. Workers in the informal economy such as street sellers, domestic helpers, and construction workers are included in this sector.
The epidemic has significantly increased underemployment and created substantial economic hardship. Millions of individuals have lost their jobs as a result of numerous enterprises being forced to cease or scale back their operations. Given that many of these people are employed in low-paying positions with minimal job security or protection, the unorganized labour sector has been particularly heavily hit.
The absence of social safety nets for unorganized workers has also been brought to light by the epidemic. Since many of these workers lack access to healthcare and paid time off for illness, they are more susceptible to the virus. As many of these employees rely on daily pay or informal employment arrangements, the lockdowns and other limitations implemented to stop the virus’ spread have also made it challenging for them to support themselves.
Measures to be taken to organize the unorganized labour sector:
1. Formalization of the informal economy: The informal economy is being formalized because it employs a large number of people in the unorganized labour market. It may be possible to provide these workers access to social security benefits, legal safeguards, and improved working conditions by formalizing this industry. This may be accomplished by implementing regulations like registering unregistered enterprises, streamlining regulatory processes, and offering incentives to formalize.
2. Strengthening of labour laws: By making labour laws stronger, unorganized workers may have better safeguards. The enforcement of minimum wage rules, the provision of social security benefits like health insurance, paid time off, and retirement benefits, and the maintenance of secure working conditions are all examples of this.
3. Skill development and training: Providing unorganized workers with training and chances for skill development can help them advance their abilities and raise their earning potential. Partnerships with companies, career centers, and other training providers can help achieve this.
4. Access to credit: For many unorganized workers, a fundamental obstacle is a lack of access to credit. Giving these employees access to loans through microfinance organizations or other financial institutions can aid in the launch or growth of their enterprises and enhance their financial stability.
5. Social protection measures: During times of economic shock or disaster, like as the COVID-19 epidemic, social protection measures, such as cash transfers, food subsidies, and healthcare, can support unorganized labourers.
CONCLUSION:
In conclusion, the unorganized labour sector encounters a number of difficulties that have an impact on workers’ wellbeing and feed the cycle of poverty and inequality. Some of the main issues affecting workers in this industry include low pay, a lack of legal protection, unfavorable working conditions, and discrimination. These problems can significantly harm a person’s health and lead to workplace exploitation.
To overcome these issues and build a more equal society, governments, employers, and other stakeholders must collaborate. The lives of employees in the unorganized labour sector can be greatly improved by laws and programmers that protect them from discrimination, enhance working conditions, and provide legal protection. By providing the workers in this industry with a secure, healthy, and encouraging work environment, for workers in this sector, we can ensure that they are able to live with dignity and contribute to the development of society.
REFERENCE: https://www.worldwidejournals.com/indian-journal-of-applied-research-(IJAR)/special_issues_pdf/April_2016_1461058878__14.pd
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