Chapter I

INTRODUCTION
 CHAPTER I

1.1 INTRODUCTION

The unorganized sector is very much the need of the hour to understand the concept and
the issue surrounding unorganised sector workers. When it comes to unorganised sector
women workers, it needs special attention among the society. It needs to understand
that the term organised and unorganised sector is the formal and informal sector at the
international level as instructed by the International Labour Organisation(ILO). There
has been a lack of transparency and consistency. The Central Statistical Organization
describes an unorganised sector as a combination of those who work in the market with
less than 20 workers (with no power). Nor ten workers (with the influence), the workers
of these enterprises are not registered under the Industrial Dispute Act of 1948.
Consequently, they can be included in the domestic sector (and hence within the
informal sector) as per the coordination of National Accounts(SNA) 1993.

Thus employment within the unorganised sector has hitherto been derivative as a
remaining of the total workers minus the organised sector workers reported by the
Director-General of Employment and Training (DGET). It can also mention that DGET
figures do not include informal/unorganised workers in the organised sector, which is
increasing significantly in the Indian economy. There is a constituent of irony in the
determination of unorganised sector workers in a financial system to this extent.

National Commission for Enterprise in Unorganised Sector (NCEUS), spotted by the

Government of India in September 2004, measured various substance aspects. "The
unorganised segmented as privately owned by either individuals or households
occupied in sale and production of goods and services operated in either sole
proprietary or partnership origin and with less than ten workers". Following this
definition, it is essential to include the agriculture sector since the organised agriculture
sector is excluded from corporate or cooperative farming. Thus, a very massive part of
the workers engaged in agriculture.

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1.2 WORK SATISFACTION

Every sector sets its satisfaction level whereas the unorganised sector is neglected to
analyse for their work satisfaction. In our day–to–day life, we come quite a few
unorganised sector workers. Are we thought of their work satisfaction? Or are they
satisfied with their work? Do they enjoy what they do? Are they in the safety net
prescribed by the government? Are we thought of these questions? In the organised
sector, the workers are monitored by human resource management or supervisors/team
leaders for their needs and grievances. However, when it comes to the unorganised
sector, it is not happening. As employers, they want them to work for underpaid,
bargain for their satisfaction. Suppose unorganised sector to be a woman have we ever
thought of their health condition. In that case, there is nothing about family attention
and recognition, work-life balance, individual status, and societal acceptance of women
workers' unorganised sector. So as analysing the organised sector, why don't we do it
for unorganised sector women workers – their work satisfaction?

1.3 NEED FOR SOCIAL SECURITY

International Labor Organization stated that "Social security is the guard that a society
provides to individuals and households to ensure admittance to healthiness care,
assurance income security, mainly in cases of elderly age, unemployment, sickness,
invalidity, work injury, maternity or loss of a breadwinner". Social security measures
are compulsory for the workers in the organised sector; it has automated too also
monitored and communicated to the workers in a prescribed manner. In contrast, it is a
voluntary contribution in the unorganised sector with no proper guidance to adopt. The
majority of the population in the country belongs to the unorganised sector. The
government measures social security for unorganised sectors that too women workers
in unorganised sectors in confusing states. Since most workers are not aware of the
available scheme's benefits and are not interested in spending with their minimum
income, income constraints, the procedure to adopt the plan is too long. The prime
motive to seed to identify the awareness towards social security then later will seed
them on the minds of the unorganised sector workers.

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1.4 SIZE OF AN UNORGANISED SECTOR

NCEUS prepared an estimate of workers in an unorganised sector. As of January 2005,

the total number of workers (primary and secondary) in the Indian wealth was 45.8
crore. The unorganised sector workers of 39.5 crores, i.e. 86 % of the total human
resources in 2004-05. Nevertheless, a distinction has been made by the NCEUS in
organised sector/unorganised sector workers and organised and disorganised human
resources.

The unorganised sector refers to enterprises that employ less than ten workers.
Nevertheless, unorganised workers refer to workers working in the organised or
unorganised sector. However, they are not covered for social security benefits. It is
clear that out of 6.26 crores in employment in the organised sector, 2.91 crores are
unorganised workers applying the decisive factor of the social security reimbursement.
Similarly, out of 39.5 crores workers in the unorganised sector, 14 lakh workers avail
social security benefits and, therefore it is classified as organised workers under two
criteria, out of total employment of 45.8 crore workers, only 3.5 crores are permitted for
social security benefits, i.e. 8 per cent of full workers in 2004-05 and the remaining
42.3 crores (92%) treated as unorganised workers compare this with 1999-00, it is
exposed during 1999-00 and 2004-05, total employment in the financial system
augmented 397 million to 458 million, i.e. boost by 6.1 crores through the five years,
the number of organised workers remains inactive at 3.5 crores, and the entire add to in
the employment was in the category of unorganised workers. NCEUS sums up the
circumstances as under "what this means in easy term is that the entire augments in the
employment in the organised sector over this period has been casual .i.e. with no any
job or social security.

It constitutes what can be termed an unorganised sector. Any workers enlarge consists
of usual workers without social security benefits and fundamental or contract workers
again with no benefits that should accrue to formal workers.

1.5 OCCUPATIONAL STRUCTURE OF UNORGANISED SECTOR

An essential aspect of a country's population relates to its working population,

described as a workforce. The workforce is distributed among three broad sectors viz.,
Agriculture, Industry and Services. Since the occupational distribution of the workforce

3
is closely linked with the economy's level of development, there is a direct relationship
among these three sectors. The occupational structure of a country means the
distribution of workforce different occupations or sectors of the country. As is known
very well, all economic activities are broadly divided into three groups, viz.,

1) Primary (largely. Agricultural) Sector,

2) Secondary (or Industrial) Sector, and
3) Tertiary (or Service) Sector.

• The primary sector includes cultivation and other agriculture-related

occupations like animal husbandry, fishery, forestry, and mining.

• The secondary sector is included large and small manufacturing units,

construction.

• The service sector includes trade, transport, communication, banking, tourism,

insurance and other government and non-government services.

Further, the economy is divided into organised (formal) and unorganised (informal)
sectors. It may be noted here that the organised sector absorbs only about 10% of the
workforce, and the remaining is to be found in the unorganised sector. Most of these
workers in the unorganised sector are engaged in the family business. They often move
in and out for activity, change their jobs, combine productive work with household
work. It is, therefore, challenging to measure the exact number of workers in the
unorganised sector. Because of this difficulty, even the consecutive censuses have often
changed workers' definitions in the unorganised sector. The occupational structure in
India is, more or less, similar to that of any underdeveloped country in the world,
wherein a substantial portion of the workforce is engaged in agriculture and allied
activities and a tiny portion in the industrial sector. Agriculture is, therefore, the
significant economic activity for a substantial proportion of the working population.
Nearly 67% of the labour force is engaged in this sector.

Industrial and Service Sectors provide work to a tiny proportion of the labour force. The
Secondary Sector viz., Industries have absorbed 13% of the workforce and the Tertiary
Sector viz. Service Sector about 20% of the workforce. However, this primary sector
appears to be in a very unsatisfactory state. It shows that the industrial and service
sectors together provide work only to one-third of the workforce. From the country's

4
economic point of view, the agricultural industry plays a significant role. Because, even
with the large proportion of the workforce engaged in agricultural activities, the country
is not self-sufficient in several farm products. Therefore, importing quite a few of these
to meet the gap between the domestic supply and demand. Not only production but also
agricultural productivity is very low.

In the latest years, there has been a slight decline in the proportion of workforce
engaged in the agricultural sector and a slight rise in industrial and service industries.
Further, there has been an increase in per capita income, and shifting importance from
agriculture to other sectors is significant compared to 1981 or earlier. This shift can
perhaps be in favour of the Service Sector. The service sector's rise has primarily made
up the fall in the agricultural sector's contribution. It signifies the increase of workforce
in the service sector rather than in the commodity sector.

An increasing number of new employment opportunities are generated in the non-

agricultural sector. While incomes rise in the non-agricultural sector, there is no
corresponding rise in the demand for food and other agricultural products. It is because
the income elasticity of demand for such goods is less than unity. At the same time,
with more capital and better technology in agriculture, there is a significant increase in
labour and land productivity. As a result, less need for work in agriculture. It brings
down the proportion of labour force in the agricultural sector and the emergence of an
unorganised sector. In the Industrial and Service Sectors case, the rise in income level
brings about a considerable boost in industrial goods and services demand.

More capable and modem techniques make it possible to bring about a significant
increase in production per head. However, the demand increases at a faster rate. This
process results in an increasing demand for labour in the industrial and service sectors.
The surplus labourers in the agricultural industry are being absorbed in the non-
agriculture sector. Changes in the occupational sector symbolise the changes in the
economic structure of the country. The growth rate of industrial production, though
reasonable, has not been large enough to increase its share in the National economy.
The investment in this sector, in particular, in the infrastructure related to the industry,
has been meagre. For many years till the '90s of the 20th century, development
strategies have been focused on the heavy and capital goods industries. As these
industries have a high Capital-Output Ratio and long gestation period, the output flows

5
have been small and slow coming. The unsatisfactory performance of the industrial
sector has been the restrictive environment, including licenses, quotas, regulations. It
resulted in the closure of specific industries, further increasing the unemployment
problem. Those who lost their jobs in the organised industrial sector started working in
the unorganised sector for their livelihood. That means the persons who have been
thrown out from their regular employment have started their self-employment or started
working with the employers on a contract system. It is one of the essential factors
responsible for the growth of the unorganised sector, besides many other factors.

1.6 PROBLEMS FACED BY UNORGANISED SECTOR WORKERS

Unorganised workers (UW) in India have expanded many folds in post-independence.

Around 52% of UW's are engaged in agriculture and allied sector, and they establish
over 90% of the labour work constrain. UW contributes half to GDP (as per NCEUS).
The most extreme significance is to investigate the predicament of this poverty-stricken
and discouraged class of India. As per the "Ministry of Labor and Employment"
definition: An unorganised sector implies an enterprise claimed by individuals or
independently employed workers are engaged in the production or clearance of goods
or giving service of any caring at all. Where the enterprise utilises workers, the quantity
of such workers is under ten. "Unorganised worker" implies a locally established
worker, independent worker or a wage worker in the Informal sector and incorporates a
worker in the organised sector who is not secured by any Acts mentioned in Schedule II
of the Unorganised Workers Social Act 2008. Mahatma Gandhiji National Rural
Employment Guarantee Act - (MNREGA), the lead program is not implemented
through Labor, and Employment Ministry (LEM) is by Rural Development Ministry.
LEM has nothing to do with MNREGA.

1.7 ISSUES INVOLVED

• Insufficient labour laws

• No social security
• No guaranteed minimum wages
• Bonded labour - they do not whine about this in such a case that they do their
master may expel them considering their ignorance
• Child Labor - they are the most misused among unorganized sector workers

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 • Working Women – issue of harassment at work spot
• Low literacy among them
• Low incomes which they do not grumble about
• Vulnerable to infection

1.8 PROBLEMS OF THE AGRICULTURAL LABORS

Seasonal employment: The agricultural labourers do not have constant work because
of precipitation and climatic conditions. On average, a ranch labourer is utilised for
around 197 days in a year, and for whatever is left of the year, they are jobless.
Agricultural labourers cannot get ongoing work consistently.

Lowest wages: Wage is the fundamental issue of the Agricultural sector. Since
independence, the legislation has been inadequately implemented. For example, wages
in U.P, Bihar, Odessa and Madhya Pradesh are from Rs.20. to 30 per day per man
contrasted with the wage run between Rs. Eight and Rs. 10 in Punjab and Haryana,
abuse of landowners leads to low wages generate the endless loop of poverty.

An enormous number of Family individuals: The quantities of individuals expanded

in the families are different landless agricultural labours. Social Status: The incomes of
agricultural labourers are restricted. So their way of life is not improved the social
status of the labourers, contrast and another income gathering of individuals.

Unemployment because of Technology: The presentation of machines in ranch lands

impacted the landless agricultural labour with the troubles of unemployment or
underemployment. Because of all the modernisation programs and technological
change, just the wealthy ranchers have profited; a however large section of the country
populace are jobless.

1.9 PROBLEMS OF THE HOME-BASED WORKERS

Unprotected by labour law: No policy or Law for home workers exists in India.

The majority of the labour laws are intended to ensure workers' wages and working
conditions in the organised (formal) sector. When the workplace is in the home, such
laws cannot offer security to the workers. Inadequate profitable arrangements: Home-
put together workers are paid concerning a piece-rate, not on a period premise (in
contrast to many different workers in the informal sector). A minimum wage usually is
7
appropriate for the most part to workers paid on a period reason for an eight-hour
working day. The locally situated workers got poor wages, as it were. Absence of
haggling power and social assurance: The business has possessed account workers.
They are no immediate access to the best markets and constrained dealing power, or
locally situated workers are economically and socially weak and have next to zero
bartering power it is challenging for them to support.

1.10 PROBLEMS OF THE STREET, MARKET VENDORS

Fear of harassment by experts: Most Street vendors are exposed to harassment by the
police and the city specialists since they do not have licenses. The harassment against
vendors looked at work is, for the most part, identified with their illicit status. Civil
experts and police assault their places and confiscate their goods. It causes misfortune,
as they cannot carry out their speciality amid that period. Fear of bribes, hard work,
small income, and high interest rates are not the main problems of street vendors. They
need to pay bribes consistently. The police, the metropolitan experts and
neighbourhood musclemen all play devastation with their lives and profit. They needed
to pay fees to discharge their goods. These vendors needed not just to pay the bribe;
however, police jeep would pull up once in a while, and the policemen would get
products of the soil from them free of expense. If they made any indication of the
challenge, they would be beaten.

Income, Working Conditions and Employment: The incomes of the vendors are
meagre. Since a large portion of the vendors has acquired from moneylenders who
charged high rates of interest. The working conditions of the vendors are intense. These
individuals need to consistently leave their homes in their villages at around 5 a.m. to
achieve the markets on time and begin work on the pavements they involve. They drive
by transport from their towns and return home at around 10 p.m. in the wake of settling
their accounts.

1.11 IMPORTANCE AND CAUSES OF UNORGANISED WORKERS

The activities in the informal sector account for a significant offer of total employment
in the creating nations - going from the third to 66% or more, especially in urban areas.
National dimension information on jobs and income generated in the informal economy
is commonly not accessible. India is one of the handfuls of exceptional cases where it

8
has late evaluated the informal sector by the National Sample Survey Organization.
Globalisation estimated as far as exchange and capital flow among nations and
technological changes accept to have assumed an imperative job.

Quicker employment growth in the unorganised or informal sector is often alluded to as

proof of the business' reluctance to extend engagement in large-sized factories. The
defensive labour laws are pertinent. They rather ranch out work to littler units.
Henceforth, there is no uncertainty that employment has grown quicker in the informal
segment, and its offer has pointedly expanded over the years.21 Further, the increased
rivalries among firms have brought about driving down the labour cost. These expenses
are lower in the informal economy due to non-consistency with labour guidelines, for
example, minimum wage, social security commitments and other welfare arrangements.

Aside from that, improvements in technologies have added to such informalisation as

we do not gang required abilities and training for employment in the organised sector.
A further qualification is often made inside the informal sector between the individuals
who operated from their residence and other smaller-scale enterprises. Not each one of
those using from their place or who are autonomous enterprises, going out on a limb
and deciding; many, particularly women, are paid for their work by the business,
subcontractor, operator or middlemen and thus considered as "home workers" or
"camouflaged wage workers". The inclination to connect with workers outside the
factory premises on a subcontracting premise is generally found during informalisation
and deciphered as methods by which managers abandon duties regarding their welfare
visualised in the labour gauges. Another factor that has built up the unorganised sector
is the nom-accessibility of present-day sector employments even to those women and
men who live in urban places and have some instruction and ability. The employment
openings in the cutting edge sectors are uncommon because of technological
development in these sectors. These sectors are capital concentrated instead of labour
escalated. Therefore, countless men and women are attracted by the unorganised sector.
The passage is simple there, and it gives income, however lacking, to the family. The
pitiful income that they get is valuable for their very own and their survival.

9
1.12 CONCEPT OF UNORGANISED SECTOR

The economic changes presented in India in the nineties are generally accepted to have
redressed many macroeconomic mutilations. However, the outcomes are not
empowering. They have brought about a progression of complex problems
incorporating slow growth in the employment openings generated. The rise of the
informal sector has often been seen as answering a few of these problems by
guaranteeing the supportability of jobs for a large section of populace impoverished
people. A sizeable bit of the incremental employment openings generated in the nineties
is in the informal or unorganised sector - both in the Secondary and Tertiary Sectors.

Even today, there is no generally acknowledged definition of the expression "informal

sector". In any case, many endeavours have been to characterise the idea. Further, the
arrangement of "unorganised labour-" (i.e., the labourers or workers working in the
unorganised sector) is additionally called contract labour, question, residential labour,
development labour, agricultural labour, bonded labour, casual labour, workers in
minor scale enterprises (SSIs), handloom and power loom workers, beedi and stogie
workers, sweepers and foragers, workers in tanneries, innate workers. The expression
"unorganised sector" was first utilised in an investigation in Ghana, which looked into
the economy's hypothesis of creating nations characterised by the essential qualification
among modem and conventional sectors and proposed to name them as formal and
informal sectors.' The endeavours to characterise informal or unorganised sectors have
brought about the recognisable proof of specific highlights based on which it (i.e.,
informal or unorganised sector) is recognised from the formal/organised sector.

The International Labor Organization (Employment Mission to Analyse the

Employment Situation) worked out a strategy for employment and embraced the
Informal sector idea. The report recommended that to elevate employment opportunities
and accomplish progressive impartial income circulation, it is imperative to explicitly
concentrate on the informal sector's developmental endeavours. Later in 1970, the idea
increased considerable importance in writing on development policy when all is said in
done and employment policy precisely. The informal sector is otherwise called
unorganised, unregulated, unprotected, perspired, conventional, household, worker,
unremunerated industry. Keith Heart likewise utilises the terms unorganised sector,

10
unremunerated sector, and independently employed individuals, pretty much, then
again and reciprocally to mean informal sector.

In India, the expression "informal sector" is of ongoing birthplace and has been used
just amid the most recent two decades. Various examinations have been led to survey
the size and employment structure of the sector in different urban areas by offices like
The Institute of Applied Manpower Research (AMR) amid the late eighties and mid-
nineties. The primary National Commission on Labor, under the chairmanship of
Justice Gajendragadkar, characterised the unorganised sector as that piece of the work-
drive who could not compose in a quest for a specific goal in light of requirements, for
example, (a) casual nature of employment, (b) ignorance and illiteracy, (c) diminutive
size of establishments with low capital investment per person utilised, (d) dissipated
nature of establishments, and (e) superior quality of the business operating
independently or in a blend.

The Commission recorded 'illustrative' classifications of unorganised labour which

incorporate

(I) contract labour including development workers, (ii) casual work, (iii) labour utilised
in small scale industries, (iv) handloom/power-loom workers, (v) beedi and stogie
v/orkers, (vi) representatives in shops and establishments., (vii) sweepers and foragers,
(viii) v/orkers in tanneries, (ix) innate labour, and (x) other unprotected work. The
Report of the National Commission on casual Women set up in 1987 tender the
chairpersonship of Smt. Ela R. Bhatt characterised the unorganised sector as the one in
which women do perilous work as wage workers, piece-rate workers, casual labourers,
and paid and unpaid family labour. Further, the report state that the economic and social
conditions of these women and their families are horrid. The report saw that the
unorganised sector is characterised by a high occurrence of casual labour, for the most
part doing discontinuous occupations at meagre wages or working at uneconomical
returns.

There is a complete absence of employer stability and social security benefits. The
regions of misuse are high, bringing about extended periods, unsatisfactory work
conditions and occupational health hazards. The National Commission on Rural Labor,
set up in 1987, characterised country labour as a person who is living and working in a
rural region and engaged in agricultural and additionally non-agricultural activities

11
requiring difficult work, getting wage or compensation wholly or somewhat, in real
money or in-kind or both amid the year, or such possess account workers who are not
for the most part employing labourers however are a piece of the negligible production
framework in provincial territories. As per this Report, regional labour comprised 150
million persons or generally 60% of the all-out rustic work-drive in the nation amid
1986-87.

The Commission brought up that (a) the number of rustic labourers, both in agricultural
and non-agricultural operations, was expanding at a quicker rate than the rate of growth
of the local populace, and (b) various factors like the uneven and declining labour
ingestion in agriculture, declining land base, and shortage of non-ranch employment
openings had driven large scale relocation and casualisation of country labour. National
Council for Applied Economic Research (NCAER), Self-utilized Women's Association
(SEWA), directed a joint workshop regarding characterising the informal sector to
March-April 1997. The Central Statistical Organization established an expert group on
the informal sector (Delhi Group) to propose a definition of the informal sector.

In the NCAERSEWA workshop, a Gujarat-put together group of experts concerning

Estimation of the Informal Sector anticipated a definition for the informal sector who
depend on employment. As indicated by the group, the informal sector incorporated all
workers in informal enterprises, a few workers in formal enterprises, independently
employed workers, and those doing contract work for casual or formal sector
enterprises and contractors. The NCAER-SEWA workshop raised questions on the
enterprise-based definition, which would forget the workers working on contract
premises. The purpose ought to be founded on activities and positions of the
independently employed delivering non-tradable services and things for the
neighbourhood markets. It further noted that the National Accounting must cover the
informal sector, including locally situated workers, artisan groups and contract workers,
besides workers in the unorganised sector of services, manufacturing and agriculture.

12
1.13 MEASURES TAKEN TO PROTECT THE UNORGANISED WORKERS
OF INDIA

a) Implementation of Unorganized Sector workers' Social Security Act, 2008

The Union Labor and Employment Minister Shri Mallikarjun Kharge has educated the
Rajya Sabha that perceiving the need to give social security to unorganised workers.
The government has enacted the Unorganised Workers' Social Security Act 2008. The
act accommodates the constitution of the National Social Security Board at the Central
dimension, which will recommend detailing of social security plans viz life and
disability cover, health and maternity benefits, old age assurance and some other
advantage as might be dictated by the government for unorganised workers. As a follow
up to the act's implementation, the National Social Security Board was set up on
18.08.2009. It has since held five gatherings recommending augmentation of coverage
of social security plans viz Janshree Bima Yojana, Rashtriya Swasthya Bima Yojana,
Old Age Pension to particular classification unorganised workers. The Rashtriya
Swasthya Bima Yojana (RSBY) was propelled on 01.10.2007 to give smart card based
cashless health protection cover of Rs. 30000 to BPL families (a unit of five) in the
unorganised sector. More than 2.79 crore BPL families have been covered as of
29.02.2012.
The government has propelled the Aam Admi Bima Yojana (AABY) to protect against
death and disability to landless rustic households. More than 1.98 crore lives have been
covered under AABY as of 29.02.2012. Indira Gandhi National Old Age Pension plot
(IGNOAPS) was extended by amending the qualification criteria. The persons were
living below the destitution line or more than 60 qualify for the old-age pension of Rs.
200 per month. For people over the age of 80 years, the measure of assistance has been
raised to Rs. 500 per month. More than 1.90 crore recipients have been covered under
IGNOAPS as of 29.02.2012. The comparative Social Security Board will be constituted
at the State Level moreover. As per accessible data, Karnataka, West Bengal,
Chhattisgarh, and Assam formed the State Social Security Board and encircled Rules
under the Unorganised Workers' Social Security Act, 2008. State of Gujarat, Orissa,
Kerala and Tripura have covered guidelines as it were. The state of Tamilnadu has, in
any case, educated that there is no requirement of constitution of State Social Security
Board in the State as it is as of now implementing different welfare plans for
unorganised workers.

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b)Assessment of unorganised sectors social security act (2008)

Pros:

a) Envisages making National Social Security Board which will be led by Union
Minister for Labor and Employment and Director General (Labor Welfare) as
Member-Secretary [both ex-officio].
b) Envisages making State Social Security Board at the state level which will be
led by Minister for Labor and Employment of the concerned state and the
Principal Secretary or Secretary (Labor) as Member-secretary [both ex-officio].

Cons:

a) No separate arrangement for unorganised workers.

b) Only contains accessible social security conspires in the nation.
c) No lawful authority concerning the government or the person who utilises it.
d) Social security

Social Security can be characterised as "the arrangement of advantages to households

and individuals through public or aggregate performances to ensure against a low or
declining way of life emerging from various fundamental dangers and needs. Some
instances of social security measures:

1) Medical care of numerous kinds

2) Provident Funds/Gratuity
3) Medical Care of numerous kinds Except for some medical treatment and age-
old pension connivers with the meagre measure of advantage (around Rs. 100
to 200 per month), there are no uncommon social security estimates accessible
to unorganised workers in the nation. The organised sector again appreciates
many social security estimates, which builds up an inquiry into why it cannot
do not for unorganised workers. Social Security legislations for primarily
urban and organised workers in the nation are as follows:
a. Payment of gratuity Act 1971
b. Workmen compensation Act 1923
c. Maternity advantage Act 1971
d. Workers state protection Act 1948
e. Workers provident fund and the various provisions act 1952

14
1.14 FEATURES OF UNORGANISED SECTOR

The word 'informal', per se, denotes the informal idea of work in the activity concerned
regardless of the actual number of workers utilised and independent of whether it is
inside the domain of the requirements for enlistment. A few investigations were done in
India to limit the informal sector to enterprises employing under ten persons. These
will, in general, set an upper cutoff of employment at nine persons and recognise other
criteria for distinguishing the activities of the informal sector. The terms' unorganised
sector' and 'informal sector' are utilised conversely in research writing in India.

The term 'unorganised sector' is utilised usually in every single official record and
investigation. It is characterised as the remaining of the organised sector. The time
'organised' is commonly used when alluding to enterprises where at least ten
representatives work together. The Different techniques utilised in evaluating the
information on employment in the organised sector is through the Annual Survey of
Industries (ASI), Employment Market Information (EMI) program, just as those utilised
in evaluating in general employment like the decennial Population Census and
quinquennial reviews of the National Sample Survey Organization (NSSO) have their
very own impediments.

Problems of underestimation and inadequate coverage in the unorganised sector

encourage difficulties in determining the remaining assessment of the unorganised
sector. In this manner, definitions dependent on the lingering approach that consider the
organised sector as utilising at least ten workers and the unorganised sector as the
leftover no longer appear reliable. Many new kinds of enterprises and employments that
have developed lately must be considered. The unorganised sector is assorted. Many
endeavours have been made to distinguish the characteristics of employments or works
in the industry. None of the elements can be named essential in characterising the
sector.

In any case, it is suitable to take a gander at a portion of the characteristics displayed

below.

• Low size of an association

• Operation of labour relations on a casual premise or based on connection
or personal relations

15
 • Small possess account (household) or family-claimed enterprises or
miniaturised scale enterprises
• Ownership of fixed and different resources without anyone else's input
• Risking of account capital without anyone else's input
• Involvement of family labourers
• Production consumption indistinct from household uses and utilisation
of capital goods
• Easy entry and exit
• Free portability inside the sector
• Use of indigenous assets and technology
• Unregulated or unprotected nature
• Absence of fixed working hours
• Lack of security of employment and other social security benefits
• Use of labour concentrated technology
• Lack of help from the government
• Workers living in slums and squatter areas
• Lack of lodging and access to urban services
• High percentage of vagrant labour.

1.15 GROWTH OF UNORGANISED SECTOR – AN ANALYSIS OF

CONTRIBUTING FACTORS

The development of employment in the organised sector in India declined relentlessly

somewhere in the range of 1973 and 1994. It is valid for practically all industry groups,
suggesting that the growing workforce cannot fully be adsorbed inside the organised
contracting sector. Consequently, the labour force caught up in agriculture—the
unorganised/informal segments of the non-agricultural sector. Likewise prompted an
expansion in women's employment in the informal sector.

The growth of industrial employment through subcontracting joined with an enduring

fall in the incomes of households. Since the economy's poor performance and other
factors contributed to the expansion in the number of women entering the unorganised
sector, the purposes behind the growth of the unorganised sector are imperative from
the perspective of formulating strategies. Globalisation, sending out introduction,

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industrialisation, and movement of industries from the created to the creating nations
also contributed to the growth of the unorganised sector.^ With the development of
industrialisation and urbanisation, landless labourers (in the absence of a guaranteed
wellspring of employment in rural areas) migrate to urban areas looking for work. In
urban areas, labourers are commonly utilised in unorganised sectors like weaving,
handicraft, development activities, beedi rolling.

In addition, the alarming rate of populace growth in creating nations incorporating India
has brought about an expansion in the rate of labour supply in cities and towns. The
massive relocation of the rustic poor to the urban region looking for work and business
mirrors the overflow of provincial destitution. Alongside this procedure, it has been
perceived that there is a division in urban economies in creating nations. Whatever
might be the reasons, economic development neglected to generate satisfactory
employment and income openings, mainly in the formal modem sector. Under these
conditions, the surplus labour force has been constrained to locate its very own
wellsprings of work for its survival. In this manner, the growth of the informal sector
and employment in the informal sector rose with its multi-dimensional coverage.

1.16 UNORGANISED SECTOR – AN ANALYSIS OF FEATURES

The unorganised sector can be arranged into two sub-sectors, viz., unpredictable sector
and unorganised sector proper. 01. A sporadic sector comprises an assortment of low
status and ill-conceived periphery activities (like different types of casual labour,
vehicle washing and leaf raking, and many illicit activities like betting), and 02. The
unorganised sector comprises tiny scale economic activities, normally non-wage and
carried on by family concerns incorporating in the unorganised sector. The informal
sector is an advantageous method for assigning a segment of the economy with specific
characteristics, leading to ominous conditions o for the growth of enterprises and
activities operating in this segment. The Planning Commission of India charged a
progression of concentrates on such practices as they give the database to considering
production, marketing and surplus amassing. The Commission states that the market's
working is with the end goal that the maker or association has developed. In contrast,
the workers' income and offer in the product have dwindled, prompting the
convergence of richness in the hands of a couple and hardship of the mass of workers.^
In six examinations directed by the Commission, it was discovered that over 60% of the

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workers procure under Rs.40 per month, every which is below destitution line at 1975
costs.

The informal sector likewise markets wares delivered by the formal sector at marketing
costs much lower than the marketing costs in the formal sector. This procedure spares
marketing expense for the large makers or wholesale merchants as labour expense is
modest. It is typical to watch minimal retail outlets, pavement retailers, or voyaging
sales associates selling packaged beverages. Shabby quality factory created materials,
modest garments and wood products, eatables pressed by large industries, plastic
products, and old manufacturers. The instance of newspapers/magazines conveyed at
homes or sold on streets by young men/children also is an instance of the pervasiveness
of shabby marketing office for the publishers/distributors. With these subtleties, a short
examination is made in the following passages about a portion of the essential features
of the unorganised sector.

1. Little Size of Operations:

Appraisals of the size of the informal sector may fluctuate. A more significant part of
the essayists appears to hold the sentiment that large or considerably a tremendous
number of inhabitants in large cities of the Third World Economies operate in little
establishments.' ° The littleness may have distinct connotations in various observational
circumstances. The division is commonly made based on the size of the employment.
Then again, it is in some cases recommended that single worker establishments and
those with just independently employed and possess account workers forni the centre of
the informal sector."

On the other hand, the informal sector (from constrained access to resources and the
focused nature of its products and services) is characterised by small scale operations.' ^
Because of small scale operations, for the most part, nearby data sources and resources
bend utilised. Minor operations are considered vital for incorporating an enterprise in
the informal sector since littleness is generally joined by a few other traits that make
such enterprises disadvantageous.

2. Family Ownership of Enterprises:

The formal sector is characterised by the high level of ownership and control of
industry by specific groups of individuals. Accordingly, the representatives may be

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consumed from various pieces of the nation and world. Then again, the informal sector
has indigenous ownership of its means of production altogether. The owners would
compose and control the activities of the enterprises. There could likewise be broad
utilisation of family labour; however, this may not be valid and suitable dependably.
The informal sector operators do not have indistinguishable access to credit offices
from their formal partners. It clearly would restrain the size of operations.

3. Production Techniques:

The informal sector operations are more serious labour, while informal sectors utilise
apparatus and technology. The formal sector activities also could be that, as it may, be
labour serious. The refinement among formal and informal sectors based on imported
outside technology or indigenous technology has all the earmarks of a somewhat
outrageous viewpoint. Even in the formal sector, instances of import of know-how or
remote collaboration would be minor. The degree of utilising technology as a factor in
recognising informal from the formal sector is to feature that the informal sector units
are generally more labour concentrated, prevalently manual and embrace efficiency
techniques of low dimension technology than formal sector enterprises.

4. Highly Competitive and Unprotected Product Market:

The informal sector operates in a highly aggressive market. It often needs to sell goods
and services in horrible conditions. The nature of the labour market segmentation and
assurance of employment face a little challenge from the organised industries that
structure value controls due to their monopolistic and oligopolistic positions. The
informal units operate in a highly aggressive market along these lines as they are
tremendous in number. As it may, none is large enough to impact the market. The
handicraft units in the informal sector, then again, operate in a market for the most part
without any challenge.

The personal services structure is a crucial case of informal activity, taking into account
the necessities of higher-income groups. Nonetheless, the products created by the
informal units are to the low and centre income groups. The informal sector
establishments are not ready to understand a similar measure of income per unit of their
yield, which their formal/organised sector partners figure out. It is not much on account
of the nature of interest for the item, and the nature of market looked by the

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organisations; however, it is because of the absence of holding limit and marketing
arrangements accessible to the informal sector enterprises which can again be attributed
to their nominal size of operations and meagre resources. The pitch/settle to the buyers
who-ever is at hand when their item is prepared available to be purchased. They are not
ready to understand the total value of their item.

5. Non-availability to Public Facilities:

The informal sector has no entrance to public offices and state patronage like a bank
credit, advantages of the organised capital market, outside technology, imported crude
materials, insurance from the formal sectors, power and water. Now and again, these
enterprises need to pay additional sums for similar offices or go into surreptitious
arrangements v/with different agencies for this reason. It is not because these offices are
officially denied to the informal sector units. However, they are not ready to benefit
them due to their restricted material resources, notwithstanding when the state
endeavoured to alleviate some of these disadvantages by giving them a particular
treatment. Many economic agents in this sector operate illegally in certain nations,
seeking economic activities like those in the formal sector.

Illegality is typically a result of official confinements of access to the formal 1 R sector.

The bureaucratic methodology that must be followed to acquire rare data sources, such
as outside trade, is confused enough to put them at a genuine disadvantage or force
them into unsafe underground market transactions.' ^ The government regularly forces
these enterprises to proceed onward account of congestion, health considerations, traffic
blockage, environmental or tasteful factors or because the land they involve does not
have a place with the proprietor. Bank credit, space, power, water are instances of such
services and information sources to be provided on a government permit. However, the
informal sector units are not ready to benefit them sufficiently.

This circumstance results from uneven dissemination of private resources, which

appears to decide the appropriation of the advantages of public resources
straightforwardly. Different examinations led in the creating nations of the world
demonstrate that the urban informal sector is an immense sector delivering a large
assortment of goods and services which are for the most part utilised by poor people
and centre income populace. A large extent of the urban labour force additionally

20
discovers its placement in the informal sector. The urban labour force in this sector has
been expanding for some time.

This sector is, in fact, a portal for such participants and ingests a large portion of the
transients that cannot ceaselessly discover beneficial employment in the formal sector
of the urban economy. Women and child labour are effectively assimilated in the
informal sector enterprises since it is hard to implement Labor Laws in this pervasive
sector of the creating economies. Through settlements, a sizeable extent of income
generated in this sector goes to the country areas since transients keep up compelling
connections with their starting point spots. The income of the labour force in the
informal sector are far lower than that in the formal sector and differ considerably
inside the sector. Since a piece of the labour force in this sector comprises women and
children, a significant extent is observed to acquire considerably less than the base
income in the formal sector. It is also observed that a greater extent of the labour force
in this sector is generally less instructed, and a considerable extent is unpaid family
individuals.

1.17 STATEMENT OF THE PROBLEM

The unorganised sector workers in India generally comprises 92 per penny of the
populace in the working-age group. Out of the 37.6 crores workers in 2008, just 8 per
penny were in the organised sector and approached statutory social security benefits.
The rest of the workforce had been socially prohibited and experienced persistent
hardship related to general low expectations for everyday life and social insecurity. The
unorganised sector commits to national riches, yet workers do not approach adequate
and solid social security. Even though the unorganised workers have some entrance to
hazard management mechanisms, for example, minor scale money, their entrance to
statutory advantages like health care, old-age pension, Educational Assistance,
Maternity Assistance, Accidental advantages, Purchase of Spectacles have been
inferior. These workers receive informal strategies, for example, borrowings, sale of
benefits, which are over the top expensive. They have proceeded with reliance on such
strategies just renders them progressively helpless. The governments at the focal and
state levels have thought it was trying to plan social security plans for unorganised
workers for the following reasons: Many of these workers are poor, illiterates,
defenceless and segregated.

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A dominant part of them does not have fixed business. There is a poor manager worker
relationship. The unorganised sector work is typically impermanent, seasonal and
changing in nature. Many occupations inside this sector are locally established.
Notwithstanding the government's endeavours to give social security as pensions and
other advantages, the problems of minute coverage and unimportant measures of
advantages were often noticed. The scientist, in this manner, often experiences the
following inquiries while formulating the social security plans. What the social security
required by an unorganised sector workforce? What accessible mechanisms and
strategies do they use to meet the social security needs? Do social security needs, and
hazard management strategies change across various classifications and inside a
specific class of unorganised workers? Is it adequate to present monetarily feasible and
reasonable plans for the workers? What are financial conditions winning among the
individuals from welfare boards? This exploration is an unassuming endeavour to
address these inquiries with the destinations of dissecting the social security needs for
the unorganised sector work force, looking at the hazard management mechanisms that
are most much of the time utilised by these workers and surveying their eagerness to
take an interest in contributory social security plans.

1.18 OBJECTIVES OF THE STUDY

• To study the perception of unorganised sector women worker satisfaction based

on demographic variables and their performance towards work and family.
• To identify the factors influencing work satisfaction of unorganised sector
women workers.
• To study the socio-economic condition of the unorganised sector women
workers.
• To study the available social security measures and their awareness of
unorganised sector women workers.
• To distinguish the problems looked at by the government/supervisors/public for
women workers in the unorganised sector.
• To propose compulsory contribution of social security scheme to the policy
creators of government to overcome the problems faced by unorganised sector
women workers to attain work satisfaction.

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1.19 SCOPE OF THE STUDY

The scope of the present study stretches out to cover two critical angles about
Unorganised sector women workers. First, work satisfaction in the place where they
work, security cover, rights, to which the unorganised women workers are entitled as
per the Provisions of necessary Acts, for example, Minimum Wages Act - 1948,
Payment of Wages Act - 1936, Maternity Benefit Act - 1961, Factories Act - 1948. In
the light of these Legal Provisions, the second part of the study is to assess the
awareness towards social security and the actual advantages given to the Unorganised
women workers in Chennai (to evaluate the economic status of Unorganised workers in
Chennai).

1.20 NEED OF THE STUDY

The census indicates that the unorganised sector gives almost 90% of India's workforce.
Despite its significant commitment to the Indian economy, no genuine endeavours have
been made to give social security to them. They are neglected from the work
satisfaction in the unorganised sector. The unorganised sector is confronting the
following problems.

• Payment of wages is overwhelmingly through Piece Rate premise and at

meagre wage rates
• Poor growth of trade union movement
• Superior quality of business operating independently or in a mix
• Lacking social security cover
• Dispersed production forms associated with middle people
• No reasonable separation between contractor, sub-contractor and business
• Low capital investment.
• Lack of education
• Unwillingness to use the government measures prescribed for them.
• Several members in the family.
• Lack of regular work opportunities.
• Lack of self-respect
• Society acceptance towards unorganised work.

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Theoretically, the urban combination rises out of the growth of the formal sector, and
the informal sector radiates from the formal sector as a supplementary phenomenon.
Then again, the country areas are commanded by the informal sector. The contrasts
among country and urban areas and organised and unorganised sectors can be found in
employment openings, nature of representatives, wages, security measures (to some
degree, more in the urban areas as a result of the amalgamation of the formal and
informal sectors than in the provincial areas), and so forth. Unorganised sector workers
have unprotected workers exploited socially and economically by their powerful
managers in different structures.

These workers are not in a situation to share profit from the offices given by the Labor
Laws and Protection Clauses given by the Constitution of India. Because of the
constrained conditions, such sort workers are being denied essential amenities of life.
Likewise, unorganised sectors workers are inclined to many health-related disorders
like Tuberculosis, Asthma and so forth. These workers do not know about their legal
rights and benefits regarding deprivation, illiteracy and constrained conditions. Because
of starvation, they are energetically or reluctantly working under this framework despite
anxieties of ailments making risk their life. There are certain features of formal versus
informal sectors. The formal sector is moderately progressively organised, employment
is more ability situated, and conditions of employment are increasingly unbending and
characterised. Contrarily, the informal sector is overwhelmed by low expertise, the
adaptable example of versatility, low security and free individual bartering. This sector
speaks to the necessities and earnings of individuals in peripheral activities by pleasing
the low aptitude and guaranteeing a consistent wellspring of work. The low ability,
absence of dealing power, low money related commitments in utilising workers, and so
forth suit the informal sector.

These workers experience the ill effects of deprivation which is all the more squeezing.
When the relative deprivation is high, the inspiration for the low-income groups to
improve the family income to have manageable growth turns out to be progressively
imperative. Subsequently, women and children are likewise engaged in informal works
to supplement the family's meagre income. The post-economic changes situation is
achieving some standard features in a dichotomy of organised and unorganised sectors.
The organised sector is confronting extreme challenges in the market and finding even
financially savvy and quality yield hard to accomplish. It is a direct result of a general

24
capital crunch and powerlessness to guarantee an up technical degree. Thus, in all
underdeveloped nations, including India, the organised sector is contracting." despite
what might be expected, the unorganised sector is growing due to low cost, moderate
quality and consistent yield serving a regional yet unfaltering market. In this manner,
employment openings extend more in the unorganised sector than in the organised
sector with all the related characteristics of low wages, extended periods of work, low
expertise requirements, etc. It prompts the arrangement of more open doors for women
and child workers.

The social security legislation could not control the social shades of malice like the
contract labour framework. The fact remains that the abuse of workers in the
unorganised sector is as yet wild in the nation. Regardless of different security
legislations, unorganised workers are being abused by powerful managers. Workers are
not at freedom to make the most of their fundamental rights given by the constitution."
In the unorganised sector, it has been tough to arrange the workers with the outcome
that most workers work and live in amazingly vulnerable conditions. Because of
numerous sub-contracting of work by the businesses or contractors, often under
exploitative conditions, non-issuance of personality cards to home-based unorganised
workers, absence of imperative abilities, growing worried for the job, etc.

The Constitution of India gave to every one of the natives of the nation justice - socio,
economic and political; Liberty of thought, articulation, conviction, confidence and
love; just as the fairness of status of chance independent of their rank, religion, race, sex
and nature of their work. However, the hole between the organised and unorganised
workers in the nation is vast, making the framework unequal according to Law. The
nearness of the problems as exhibited above requires an intensive study/examination to
discover the degree to which these poor informal sector workers are legally secured and
the degree to which the economic status of these workers has improved.

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