Backgrounder
The Union Cabinet today gave its approval for implementation of the Unorganized Sector Workers’ Social Security Bill. 2008 by making necessary official amendments in the Unorganized Sector Workers’ Social Security Bill, 2007 pending in Rajya Sabha.
It would facilitate formulation of social security schemes for the unorganized workers.
In line with the commitment made by the United Progressive Alliance (UPA) Government in the National Common Minimum Programme, the National Commission for Enterprises in the Unorganised Sector (NCEUS) was set up in September 2004 under the chairmanship of Dr. Arjun K. Sengupta as an advisory body and as a watchdog for the unorganized sector. The Commission has the mandate to examine the problems of the unorganized sector (also referred to as informal sector) and suggest measures to overcome them. The term of the Commission, which was initially fixed at one year, had been extended further from time to time. Now the term has again been extended upto 31st March 2009. The Commission has been assigned wide-ranging terms of reference. Being an advisory body, under the Ministry of Micro, Small & Medium Enterprises the Commission has to submit its recommendations to the Government of India.
The Commission has been focusing on significant programmatic interventions, which could be adopted in the immediate term. These interventions are aimed at bringing about improvement in the productivity of enterprises in the unorganized/Informal Sector, generation of large-scale employment opportunities on a sustainable basis and enhancing the welfare of the workers in the unorganized sector.
DRAFT BILLS
The Commission had initially proposed a draft Bill “Unorganised Sector Workers (Conditions of Work & Livelihood Promotion) Bill, 2005” for comments and feedback. Based on the comments received from States, Trade Unions and others, the Commission revised the earlier proposal and proposed two Bills “Unorganised Non-agricultural Sector Workers (Conditions of Work and Livelihood Promotion) Bill, 2007” and the “Unorganised Agricultural Sector Workers (Conditions of Work and Livelihood Promotion) Bill, 2007” to cover unorganised agricultural workers and non-agricultural workers respectively. Part 1 of each of the Bills contains provisions relating to the regulation of conditions of work of wageworkers. Part 2 relates to the protection and promotion of livelihoods of the unorganised workers.
The Draft Bills provide for basic and minimum conditions of work for all unorganised wage workers and home workers. Instead of relying on costly and time consuming legal redressal procedures, the Commission has accorded priority to conciliation and has proposed the participation of workers’ representatives and elected representatives of the local bodies in the conciliation and dispute resolution committees.
The proposed Bills also mandate that the government takes the necessary steps to protect and promote these livelihoods through appropriate policies and programmes. The Bills have also provided for an institutional machinery to take a holistic view of the sector and to mobilise the necessary resources to help the sector overcome constraints and facilitate its growth.
NATIONAL FUND
The NCEUS also proposed the formation of a National Fund designed to meet the multipurpose needs of both enterprises and workers in the unorganized sector. The tasks proposed to be handled by the Fund are extensive as the sector needs a holistic approach for its development taking into account all essential needs covering finance, technology, raw material, marketing, infrastructure, skill and entrepreneurship and would cover both farm and non-farm sectors and also rural and urban areas.
PREVIOUS CABINET NOD
In a significant move the Union Cabinet on 24th May, 2007 had given its approval for social security for the unorganised sector workers. It said that the welfare schemes for workers in the unorganized sector would be introduced in a phased manner to fulfill the commitment made in the National Common Minimum Programme. Besides, the Government would constitute a National Advisory Board to design, from time to time, suitable welfare schemes for different sections of unorganized workers and recommend the same to the Government. On the recommendations of the National Advisory Board, the Central Government will, from time to time, notify scheme or schemes for one or more sections of unorganized workers.
Apart from designing model schemes for workers in unorganized sector, the National Advisory Board shall monitor the implementation of all notified welfare schemes; ensure that every eligible worker in the unorganized sector is registered and receives an identity card; oversee the record keeping functions performed the district level and the State level.
The Cabinet also paved the way for a Bill to be introduced in Parliament for this purpose. The Bill would provide for setting up a National Advisory Board and enable the Central Government to notify welfare schemes from time to time.
The Bill would also provide for constitution of a State Level Advisory Board by the State Government concerned.
The schemes notified by the Central Government will contain provisions for: (a) life and disability cover; (b) health benefits; (c) old age protection; or (d) any other benefit that may be decided by the Central Government.
The procedure for registering the workers in the unorganized sector will be prescribed and implemented. Every worker in the unorganized sector shall be eligible for registration subject to the following conditions: (a) he/she should have completed 18 years of age; (b) he/she should make a self-declaration affirming that he/she is a worker in the unorganized sector.
Every registered worker in the unorganized sector shall be issued an identity card which shall be a smart card. It shall carry an unique identification number and shall be portable.
The record keeping agency for this purpose shall be the district administration and the record keeping function shall be performed by the District Panchayat in rural areas, and Urban Local Bodies in urban areas. This will be directed by the concerned State Governments.
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MG/SR
(Release ID :41639)