ASSIGNMENT OF LABOUR ECONOMICS (5 YEAR PLANS)

SUBMITTED TO: ROOPAM KOTHARI MAM SUBMITTED BY: DIVYA SHEKHAWAT M.B.A (H.R) SEM II I.C.G/2011/12810

1st
Plan
LABOUR

Five

Year

Adequate provision has to be made for the basic needs of the workers in respect of food, clothing and shelter so as to enable them to remain in a state of health and efficiency. Besides the satisfaction of these basic needs, they should have their due share in social and economic progress in the shape of improved health services, wider provision of social security, better educational opportunities and increased recreational and cultural facilities. The conditions of work should be such as to safeguard the worker's health and protect him against occupational hazards. The work-place should provide reasonable amenities for his essential needs. The worker should also be equipped with the necessary technical training and a certain level of general education. The Ministry of Labour at the Centre, in particular, have made strenuous efforts to promote the well-being of the working class on the basis of a planned programme with legislative and administrative measures, much of which has been successfully carried out. In the sphere of labour legislation undertaken recently mention may be made of the Industrial Disputes Act, 1947, the Factories Act, the Coal Mines Provident Fund and Bonus Scheme Act, the Minimum Wages Act, the Employees' State Insurance Act of 1948, the Plantation Labour Act, 1951, ths Mines Act and the Provident Fund Act of 1952. Some of these Acts have already come into operation while others are being put in force. A number of welfare schemes particularly for employees of mines and of Central Government undertakings have been introduced by the Ministry The emergence of the Joint Consultative Board as a- bi-partite structure on the initiative of the top representatives of the working class and industry is a welcome advance. The tendency to rely more and more on internal settlement was manifest during and strengthened by the proceedings of the 'Indian Labour Conference held recently. Industrial relations, wages and social security, working conditions, employment and training and productivity are among the important aspects of the labour problem in respect of which the Commission proposes to make specific recommendations.

2nd Five Year Plan

LABOUR POLICY AND PROGRAMMES

The first five year plan was drawn up in the context of a growing consciousness of the importance of industrial labour in the national economy. With the advent of Independence, certain assurances were given to a labour in recognition of its rights which had long been neglected. An attempt was made in the first plan to give concrete shape to these assurances and to give labour a fair deal consistent with the requirements of other sectors of the economy. Judged by improvements recorded in industrial relations for which both employers and workers can take credit, the success of joint consultation at various levels and increase in real earnings of workers over the last five years, the plan in the labour field should be considered to have recorded progress Progress has also been made in the implementation of the social security measures provided under the Employees' State Insurance Act, 1948, and the Employees' Provident Funds Act, 1952 It is the public sector or the private sector the goal of progressively speeding up production would mean that indiscipline, stoppage of production and indifferent quality of work will have to be guarded against, and the labour policy has to be directed towards this end. Since such a policy must have the support of not only important employers' and workers' interests, but also of the public, the Planning Commission constituted a representative Panel on Labour and sought its advice in the matter.

WAGES
A wage policy which aims at a structure with rising real wages requires to be evolved. Workers' right to a fair wage has been recognized but in practice it has been found difficult to quantify it. In spite of their best efforts, industrial tribunals have been unable to evolve a consistent formula. Commission should be appointed in order to examine the relevant material and to lay down principles for defining the respective roles of wages, profits and prices, taking into account the declared social objective of the community. It has to be recognized, however, that a commission of the type suggested, if appointed forthwith, will be considerably handicapped for want of data and any conclusions that it might reach on insufficient facts will not provide a suitable basis for a longterm policy. A more acceptable machinery for the settling wage disputes will be one which gives the parties themselves a more responsible role in reaching decisions. An authority like a tripartite wage board, consisting of equal representatives of employers and workers and an independent chairman will probably ensure more acceptable decisions. Principles relating to the settlement of bonus and profit sharing require further study before an arrangement acceptable to all the parties could be evolved. In the meanwhile the present arrangement for the settlement of such disputes through the existing industrial relations machinery should continue.

Contract Labour
In the case of contract labour the major problems relate to the regulation of their working conditions and ensuring them continuous employment. For this purpose it is necessary to: a. Undertake studies to ascertain the extent and the nature of the problem involved in different industries; b. Examine where contract labour could be progressively eliminated. This should be undertaken straightway; c. Determine cases where responsibility for payment of wages, ensuring proper conditions of work, etc. could be placed on the principal employer in addition to the contractor; d. Secure gradual abolition of the contract system where the studies show this to be feasible, care being taken to ensure that the displaced labour is provided with alternative employment;

Development Programmes
The provision for development programmes under 'Labour croresRs. 18 crores at the Centre and Rs. 11 crores in the plans & Labour Welfare' in the second five year plan amounts to Rs. 29 of States. The main programmes are explained below: Training of craftsmen. Apprenticeship scheme for the training of skilled craftsmen Training of instructors. Expansion of the Employment Service Organization Expansion of Central Labour Institute.Two Sections are to be added to the Central Labour Institute, one on Industrial Psychology and the other on Industrial/Occupational Physiology to conduct studies and research on subjects such as vocational guidance, workers' morale and attitudes, and on the physiological reactions of workers to factors such as heat, noise, lighting, etc. Setting up of a Film UnitThe need for workers' education is accepted on all hands. With low literacy among the working population, the most effective method of education and propaganda is by means of audio visual material. Employees' State Insurance Scheme and Provident Fund Scheme Housing.The plan provides substantial amounts for housing industrial workers and persons in middle and low income groups. For industrial housing Rs. 50 crores are provided. Other schemes.In addition to the schemes set out above, there are proposals to give effect to the recommendations on questions like workers' education, training of welfare personnel, and the undertaking of new investigations. It is proposed to carry out the following enquiries during the next five years:

a. An all-India agricultural labour enquiry. b. A comprehensive wage census.

c. Working class family budget enquiries at important industrial centers.

3rd Five Year Plan

DEVELOPMENTS

The structure of industrial relations has been designed for the purpose of securing peace in industry and a fair deal for the workers. When the efforts of the parties fail to secure an amicable settlement of industrial disputes, the Government has assumed powers of intervention. Provision has been made for conciliation of disputes and for enabling the State to refer unresolved differences to tribunals set up for the purpose. A Code of Discipline in Industry, which applies both to the public and to the private sector, has been accepted voluntarily by all the Central organisations of employers and workers and has been in operation since the middle of 1958. The Code lays down specific obligations for the management and the workers with the object of promoting constructive cooperation between their representatives at all levels, avoiding stoppages as well as litigation, securing settlement of disputes and grievances by mutual negotiations, conciliation and voluntary arbitration, facilitating the free growth of trade unions and eliminating all forms of corcion and violence in industrial relations. The Code provides that a regular grievance procedure be laid down in all undertakings and complla4its should receive prompt attention. The legal means of redress and the normal channels should be fully availed of and there should be no direct, arbitrary or unilateral action on either side. Two lines of advance during the period of the Second Plan deserve special mention because of their great significance as elements of labour policy and for the reason of the great promise they hold for the future. In the first place to give the workers a sense of belonging and to stimulate their interest in higher productivity, a form of workers' participation in management was evolved during the Second Plan. A small beginning was made in this direction on experimental bases and Joint Management Councils have been set up so far in 23 units.

WAGES AND SOCIAL SECURITY

The Government has assumed responsibility for securing a minimum wage for certain sections of workers, in industry and agriculture, who are economically weak and stand in need of protection. Towards this end the Minimum Wages Act provides for the fixation and revision of wage rates in these occupations. These measures have not proved effective in many cases. For better implementation of the law, the machinery for inspection has to be strengthened. Wage determination in major industries is left to the process of collective bargaining, arbitration and adjudication. On the basis of agreement between the parties, this Indian Labour Conference had indicated the content of the need-based minimum wage for guidance in the settlement of wage disputes. This has been reviewed and it has been agreed that the nutritional requirements of a working class family may be re-examined in the light of the most authoritative scientific data on the subject.

It has been decided to appoint a Commission which will include representatives of both parties to study the problems connected with bonus claims and to evolve guiding principles and norms for the payment of bonus. Social Security.The Employees' State Insurance Scheme has now been implemented in more than a hundred centers revering about 17 lakh industrial workers. During the Third Plan period, the scheme will be extended to all centers where there is concentration of five hundred or more industrial workers, bringing-the total coverage to about 30 lakh workers.

WORKING CONDITIONS, SAFETY AND WELFARE

The improvement of working conditions can result in greater productive efficiency on the part of the workers. Every effort should be made to keep abreast of the modern developments in these and various other aspects relating to the human factor in industry. The problem of safety should receive greater attention. A Standing Advisory Committee will be set up to promote measures for bringing down the incidence of accidents in factories." State Governments have to strengthen the inspectorates provided for the administration of factory laws. Working conditions at construction sites are very different from those in factories, primarily because of the purely "temporary" basis upon which most of the work is organized. The question of separate safety legislation for building and construction workers is under examination. Industrial hygiene surveys undertaken so far have disclosed that exposure to occupational disease has been increasing. Workers' CooperativesSome progress has been made in the formation of miners' cooperative societies through the help of the Coal Mines Welfare Fund Organization. Industrial Housing.although the Subsidized Industrial Housing Scheme has been in operation for some years, the situation in respect of the housing of industrial workers has not improved and, in several centers, it has even deteriorated.

4th FIVE YEAR PLAN

Labour The number of Industrial Training Institutes for training craftsmen increased from 163 at the end of March 1961 to 356 in March 1969. The seating capacity increased from 43,000 at the end of 1960-61 to 114,000 at the end of 1965-66, thus exceeding the Third Plan target of 58,000 additional seats. It further increased to 147,000 at the end of March 1969. In order to supplement the institutional training provided through Industrial Training Institutes The medical, cash and other benefits extended to workers increased from about Rs. 6 crore in 1960-61 to Rs. 28 crores during 1968-69. The benefits received by workers during 1961-62 to 1968-69 amounted to Rs. 134 crores. Under the Coal Mines Labour Welfare Fund scheme, the expenditure on medical, educational, housing and other facilities increased from about Rs. 1.63 crores in 1960-61 to about Rs. 4.33 crores in 1968-69; the value of benefits under the scheme amounted to Rs. 28 crores during 1961-69. A National Safety Council was set up in 1966. Out of the 22 Wage Boards set up so far covering almost all the major industries nineteen have submitted their reports. In December 1966, the Government of India had set up a National Commission on Labour to study and make recommendations on various aspects of labour including wages, working conditions welfare, trade union development and labourmanagement relations Table 1 : Expenditure incurred during 196169 on Labour Welfare and Craftsmen Training Programmes (Rs. crores) centre (2) 32.7 21.0 union territories (3) 2.2 0.8 states (4) 20.9 13.7 total (5) 55.8 35.5

year (1) 1961-66 196669

LABOUR AND EMPLOYMENT

Labour
The number of Industrial Training Institutes for training craftsmen increased from 163 at the end of March 1961 to 356 in March 1969. The seating capacity increased from 43,000 at the end of 1960-61 to 114,000 at the end of 1965-66, thus exceeding the Third Plan target of 58,000 additional seats. It further increased to 147,000 at the end of March 1969. In order to supplement the institutional training provided through Industrial Training Institutes, the apprenticeship training programme was instituted. Under the Apprenticeship Act, 1961; 195 industries and 50 designated trades where apprentices are to be engaged have been specified. Nearly 37,000 apprentices are at present undergoing training in more than 3000 establishments in the public and private sectors. The medical, cash and other benefits extended to workers increased from about Rs. 6 crores in 1960-61 to Rs. 28 crores during 1968-69. The benefits received by workers during 1961-62 to 1968-69 amounted to Rs. 134 crores. Under the Coal Mines Labour Welfare Fund scheme, the expenditure on medical, educational, housing and other facilities increased from about Rs. 1.63 crores in 1960-61 to about Rs. 4.33 crores in 1968-69; the value of benefits under the scheme amounted to Rs. 28 crores during 1961-69. The Employees' Provident Fund scheme was extended to about 5.38 million workers in 123 industries and about 45,000 establishments by June 1969 as against 2.9 million workers in about 46 industries and 12,000 establishments in 1961. The total contributions under the scheme increased from Rs. 266 crores in 1961 to Rs. 1391 crores by June 1969. Labour relations continued to be regulated by the protective legislative measures introduced in earlier Plan periods and the tripartite arrangements. A mention may be made of the enactment of the Payment of Bonus Act, 1965, Shops and Commercial Establishments Act and Labour Welfare Fund Acts in States. A National Safety Council was set up in 1966. Out of the 22 Wage Boards set up so far covering almost all the major industries nineteen have submitted their reports. Under the Minimum Wages Act, 1948, minimum wages were fixed and periodically revised by State Governments in respect of various agricultural and other trades.

6th Five Year Plan

LABOUR AND LABOUR WELFARE
Labour policy derives its philosophy and content from the Directive Principles of State Policy as laid down in the Constitution and has been evolving in response to the specific needs of the situation and to suit the requirements of planned economic development and social justice. It is the product of tripartite consultations in which representatives of the working class, the employers and governments have been participating at various levels.

OBJECTIVES & STRATEGY.

Programmes of workers' education will need to be extended and their quality improved to bring greater awareness of the wider national interests so that workers' representatives can play an effective role in economic and social life. There are two special problems facing women workers: discrimination in the labour market based on sex and their dual responsibility as workers and mothers. Special programmes of workers' education will need to be evolved for women workers. In the organized sector emphasis will have to be on (i) improving the services of 'the employees state insurance, employees provident fund and family pension scheme (ii) promoting cooperation between workers and employers through participation in management and (iii) strengthening the industrial relations machinery to better anticipate industrial disputes and to act promptly in order to avert work-stoppages. In specific terms, the issues and problems of the wage policy relate to the elements like need based minimum wage, .protection of the real wages through compensation for rise in the cost of living, incentives for increases in productivity, allowances for hazards of occupation, wage differentials for skills, responsibilities and other justifiable reasons, essential fringe benefits, bonus and such other ex-gratia payments, social security arrangements like medical care, provident fund, gratuity, family pension etc. Criteria would have to be evolved by means of tripartite consultations for allowing increases in wages on the basis of productivity. The techniques of job grading and evaluation should be developed for determining the differentials to be allowed for difference in the nature of the duties and responsibilities. Bonus payments and some social security benefits have been brought under statutory arrangements. The system of productivity linked bonus introduced recently in Railways, Posts and Telegraphs and some departmental undertakings has the merit of the incentive element capable of application in similar areas where linkage with the profits is not a possible proposition.

SOCIAL SECURITY AND LABOUR WELFARE

The Employees Provident Fund assumes significance in terms of accruals which are sizeable. A major portion of these accruals form an important source for financing development. Together with employers' contribution and the availability of accumulated benefits, it also acts as an important redistributive measure benefiting the lower income class. The coverage of the scheme currently extends to 157 industries/classes of establishments with a total membership of about ten million. At the end of December, 1980 it covered over six million workers in 408 centres; the total number of beneficiaries including family members was twenty seven million. The medical benefits under the Scheme are provided through the State Governments except in Delhi where they are provided by the Corporation direct. There are statutory welfare schemes for workers in mining industries like coal, iron ore, manganese ore, limestone and mica and for workers in the beedi industry which provide facilities of drinking water, housing, education and recreation. As welfare and social security services often overlap in areas of medical care and income security during sickness and disability, it will be conducive to efficiency and economy if services in such common areas can be integrated.

SAFETY AND WORKING CONDITIONS

Safety in ports and docks and in mines, including oil fields, is the concern of the Government of India. The Director General of Factory Advice Service and Labour Institutes lays dock standards and carries out inspections in ports and docks. He also undertakes research and studies in the fields of industrial safety, ergonomics, industrial hygiene and occupational health. Steps would also be taken for an overall improvement of safety education and the provision of arrangements for this purpose in au factories, mines, ports etc. The National Safety Councils and Safety Conferences can make a significant contribution to bring about safety consciousness in this area also, workers' representatives will be increasingly associated as they can play an effective role in the maintenance and preservation of safe working conditions.

CHILD LABOUR
Total abolition of child labour with all its socio-economic ramifications does not seem to be a feasible proposition in the immediate future. According to 1971 Census, the estimated number of child workers below the age of 15 years was 10.74 million representing 4.66 per cent of the total child population and 5.95 per cent of the total labour force. The incidence of child labour is mostly in the unorganised, informal and unregulated sectors. Abolition of this practice has to be a long term goal based on minimising the need for their earnings to supplement the family incomes and suitable statutory provisions for regulating their engagement in different occupations. A high powered Committee has recently studied this question and recommended among other things, a multiple policy approach in dealing with the problems of working children. Appropriate measures would be taken to regulate employment of child labour, guarantee minimum standards relating to condition of service, welfare etc.

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WOMEN LABOUR
Since women form an important component of the workforce and since they bear a triple burden, special steps will have to be taken to promote their welfare and development. Generally, welfare agencies have been reluctant to press for their demands because of the fear of the adverse impact such demands may have on women's employment. While social services like health services, education, etc. are required by all labour, male and female, the employment of female labour would call for special attention to the following: i. ii. iii. iv. v. Provision of basic amenities in working and living conditions, such as housing, water supply, hospital and medical services, sanitation etc. Provision of maternity leave benefits, family planning incentives, etc. Provision of care and education for all the children of the family. Provision of opportunities for education, skill training and upgrading and advancement in order to widen areas and avenues for their employment. Provision of alternative employment schemes for off-season and unemployment periods.

Annexure 24.3 Sixth Plan Outlay : Craftsmen Training and Labour Welfare Programmes (Rs. in lakhs) S.No. i ii iii iv Group of Schemes Centre 2350 750 700 1550 5350 of 2500 7850 78.5 States 4566 456 723 1011 6756 668 7424* 74.2 Union Territories 633 65 70 148 916 Total 7549 1271 1493 2709 13022 3168 16190 * 161.9

Craftsmen Training Apprenticeship Training Employment Service. Labour Welfare Total (i to iv) v Centrally sponsored scheme Rehabilitation of Bonded Labour Grand Total (i to v) or say (in Rs. crores) *As recommended by Working Groups.

916* 9.2

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7th Five Year Plan

LABOUR POLICY The thrust of the Seventh Plan is on improvement in capacity utilization, efficiency and productivity. Labour enters the production process from the supply side as well as from the demand side. The role of labour has to be perceived in this broad perspective. The success of labour policy has to be adjudged on the basis of the productivity standard that it helps the economy to achieve. While technical factors and the state of technology are crucial in determining productivity levels, there is no gainsaying the fact that discipline and motivation of workers, their skill, the state of industrial relations, the extent and effectiveness of participation of workers, the working climate and safety practices are also of great importance. One of the serious problems in the industrial sector is sickness. With greater competition, a large number of units may become unviable than in a protected market. There is the problem of chronically sick units both in the public and the private enterprises not only in the traditional industries like jute and textiles but also in enterprises established after Independence.

Industrial Safety
Safety in the work place is related to several factors like the state of the machinery, maintenance, protective/preventive arrangements, training of workers in the proper handling of the machinery, safety practices, concern of the management and effective supervision. As the technology changes are fast and production processes get diversified, promotional services in this area would have to include survey, research, training and other supportive services. Ensuring of industrial safety involves technical appraisal and therefore, factory inspection has to be carried out by technically competent and trained staff.

Wage Policy
An important aspect of labour policy pertains to the formulation of an appropriate wage policy. The basic objectives of wage policy are a rise in the levels of real incomes in consonance with increases in productivity, promotion of productive employment, improvements in skills, sectoral shifts in desired directions and reduction in disparities. Wage employment and the scope for its further increase may be relatively limited; but in the organised sector, the wage factor, including within its scope related elements like allowances, bonus, social security and fringe benefits, assumes enormous importance for many economic and practical reasons.

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Bonded Labour, Child Labour and Women Labour

An extreme manifestation of the sorry plight of rural unorganised labour is the bonded labour system. The conditions which have created it have to be rooted out in order to prevent relapse. Extreme poverty, total lack of skill or assets, iniquitous social customs, the state of helplessness of a large number of these people and their dependence on the private money-lending system are the causes which have led to this situation. It is an important social obligation to see that the law on the subject is enforced and the freed bonded labourers are rehabilitated.

As for women labour, they have to be given special recognition and provided with the requisite facilities for bringing them into the mainstream of economic growth. In this regard, the major tasks are: (i) to treat them as specific target groups in all rural development programmes; (ii) to ensure that in all asset endowment programmes, women have rights over assets and resources; (iii) to properly diversify vocational training facilities for women to suit their varied needs and skills; (iv) to encourage appropriate technologies, equipment and practices for reducing their drudgery and increasing their productivity; (v) to provide creche facilities and family planning centers. Outlays: (Rs. in lakhs) labour and labour welfare central sector Name of the schemes outlays

i. Central Schemes 1. Training 2. Employment Services 3. Labour Welfare TOTAL1 ii. Centrally Sponsored Schemes 1. (a) Rehabilitation of Bonded Labour 240 0 580 279 4 577 4

150 0 (b) Grant -in-aid to voluntary agencies 100 2. Organising Rural Workers 80 3. Strengthening of enforcement machinery for implementation of Minimum Wages in Agriculture 200 4. Up gradation of State Government ITIs for improving quality of training 170 4 5. Grant-in-aid to the State Governments for establishment of Women ITIs 60 6. Central assistance for up gradation of ITIs in minority (other than SC/ST) concentration areas of 20 13 States 7. Strengthening of facilities and services for monitoring work environment in hazardous chemical 106 industries in States/UTs TOTAL11 377 0 GRAND TOTAL (Central and Centrally Sponsored Schemes)

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8th Five Year Plan

LABOUR AND LABOUR WELFARE
Objectives and Thrust

Improvement in the quality of labour, productivity, skills and working conditions and provision of welfare and social security measures, especially of those working in the unorganised sector, are crucial elements of the strategy for quantitative and qualitative enhancement of employment opportunities. The programmes in the sector " Labour and Labour Welfare', therefore, lay emphasis on skill formation and development, strengthening and modernisation of employment service, promotion of industrial and mines safety, enforcement of labour laws especially those relating to unorganised labour and women and child labour, promotion of a healthy industrial relations situation and encouragement of workers' participation in management. Labour Welfare Adequate levels of earnings, safe and humane conditions of work and access to some minimum social security benefits are the major qualitative dimensions of employment which enhance quality of life of workers and their productivity. Institutional mechanisms exist for ensuring these to workers in the organised sector of the economy. These are being strengthened or expanded to the extent possible. However, workers in the unorganised sector, who constitute 90 per cent of the total workforce, by and large, do not have access to such benefits. Steps need to be taken on a larger scale than before to improve the quality of working life of the unorganised workers, including women workers.

Unorganised Workers
A statutory provision of minimum wages for employments has been included in the schedule to the Minimum Wages Act, 1948. However, its coverage and implementation has been inadequate and the actual wages on the ground are often much lower than those fixed by the appropriate Governments under the Act. Suitable organizational arrangements would need to be developed to provide a minimum measure of social security for unorganised workers. A number of models are available for adoption. The Welfare Boards for Mine Workers, Beedi and Cigar Workers etc. set up by the Government of India and financed out of the cess levied on the production of the commodity concerned and the Welfare Boards for cashew workers
A National Child Labour Programme has been taken up to make effective intervention to prevent exploitation of child labour in the unorganised sector. Nine Child Labour Projects with the main aim of suitable rehabilitation, of the children withdrawn from employment, by providing them welfare inputs have been launched .

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The Rural Workers' Education Programmes, which cover landless labour, agricultural workers, marginal farmers, fisheries labour, tribal labour, forest labour and rural artisans, are intended to help rural workers to solve their problems through self-help and to develop their own organisations. The Central Board of Workers' Education (CBWE) has developed schemes keeping in view the need to educate the workers on industrial health, safety and environment as well as to develop leadership among workers.

Industrial and Mines Safety

With the adoption of advanced technology and increase in the use of various kinds of chemical substances in different sectors of economic activity, an increasing proportion of the workforce, as well as the population in general, are exposed to work-hazards and environmental pollution. Modernisation of the industry has also brought, in its train, problems of occupational hazards arising out of work-posture and man-machine environment. Greater attention than before will, therefore, have to be paid to the assessment and control of hazards to workers and the general population and to the development of safety devices, protective gears, appropriate design of machines and tools, plant lay-out and work and workplace lay-out. In the field of mines safety, it is proposed to augment S&T support capabilities of the Directorate General of Mines Safety (DGMS) to deal with problems relating to humidity, mine fires, ground control, stability of illumination, etc. It is also proposed to develop computer programmes for health monitoring of miners.

Outlay
An outlay of Rs.333.72 crores had been provided in the Seventh Plan for Labour and Labour Welfare and the actual expenditure during the Seventh Plan period was Rs.485.14 crores. An outlay of Rs.1315.39 crores has been provided for Labour and Labour Welfare in the Eighth Plan. The Central and State sector outlays are indicated in the table below: Plan outlay and expenditure -Labour and Labour Welfare

Table 7.1 (Rs. Crores) Sector

Seventh Plan Outlay Actual Expd.

Eighth Plan Outlay 451.00 864.39* 1315.39*

Centre 95.44 102.00 States & UTs. 238.28 383.14 Total 333.72 485.14 * Includes outlays for Special Employment Programmes.

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9th Five Year Plan.

Labour & Labour Welfare
The planning process attempts to create conditions for improvement in labour productivity and for provision of social security to supplement the operations of the labour market. The resources have been directed through the Plan programmes towards skill formation and development, exchange of information on job opportunities, monitoring of working conditions, creation of industrial harmony through an infrastructure for healthy industrial relations and insurance against disease and unemployment for the workers and their families. Many of the initiatives taken by the Government for labour welfare and the role of the Plan in supplementing the efforts of labour, employer and the Government have to be reviewed regularly in the context of an evolving economic and social background. The share of the organised sector in employment has continued to be low and has been declining, accounting for 7.82 per cent of total employment in 1991. Within the organised sector, the private sector's share in employment reduced from 42 per cent in 1961 to 30 per cent in 1995. The proportion of self-employed in employment has reduced but still it accounts for 56 per cent of those employed in 1992. The proportion of casual labour has increased from 19.7 per cent in 1972-73 to 28 per cent in 1992 among the male employees and from 30.7 per cent to 36.4 per cent among the female employees. Employment per enterprise, enumerated in the economic census, has reduced from 2.92 to 2.88 persons between 1980 and 1990. Nearly three-fourths of the establishments enumerated in the 1990 economic census had less than five employees each and 90 per cent had less than 10 employees each. Given the large share of those employed in the primary industries, outside the organised sector, in very small establishments and at casual status of employment, the strategy for benefiting the workforce in general has to be based on an increase in productivity rather than on attempting labour welfare through a frame-work of multiple regulations. With 70 per cent of organised employment being in the public sector, a peculiar situation has developed in which the Government assumes the role of an employer as also of an arbitrator. In the public sector, there exist very effective, industryspecific associations of workers, which negotiate directly with the managements of the public sector enterprises. The role of the Government as an arbitrator in the public sector industrial disputes should, therefore, reduce drastically.

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 Labour Laws
Review of Labour Laws Benefits from existing labour laws reach a: minor part of the workforce because of administrative difficulty in implementation. Ninth Plan will aim at reducing the number of laws which determine relations between workers and employers, with the objective that a much smaller number of laws can reach the entire workforce. The labour laws encompass areas like industrial disputes, wages and minimum wages, security measures like Workmen's Compensation Act, Equal Remuneration Act, Maternity Benefit Act, Child Labour Act, Factories Act, Mines Act, Contract Labour Act, Welfare Fund related legislation etc.. The labour laws enforcement machinery in the States is under a severe strain. The number of cases pending before the courts is too large to be handled. Any miscarriage of justice is difficult to avoid in such a situation. An effort to drastically reduce the number of labour laws from the present 150 or so, and devise a single labour code is necessary. At present, labour laws are targeted towards the organised labour force. The unorganised sector does not get much benefit out of the existing labour laws. Particularly vulnerable groups among the unorganised sector are urban informal sector, agricultural labour, migrant labour, women and child labour and poor landless workers who are poverty stricken. One of the laws which is widely applicable to this vulnerable groups is enforcement of minimum wages. State Governments. In the 33rd session of the Standing Labour Committee, it was suggested that measures should be taken to evolve a uniform floor level minimum wage for all unorganised establishments. The need for so fixing and notifying minimum wages that no wage is fixed below Rs.35 per day was felt. It was also suggested to the State Governments that the existing benefits should not be reduced and wherever the current level of minimum wages are more than Rs.35, they should be allowed to continue. The State Governments were also requested to take measures to reduce inter-state and intra-state disparity in minimum wages.

Vocational Training
The National Vocational Training System (NVTS) seeks to provide training for developing the skills for production in those entering the labour force. Two major resources for such training are the Industrial Training Institutes, (ITIs) and the 25000 industrial establishments that take part in Apprentice Training. The National Council for Vocational Training (NCVT), a tripartite body under the Ministry of Labour, supervises this work. Vocational education and technical education are under the purview of the Ministry of Human Resource Development. The institutional set-up under DGE&T has evolved over a fifty year period with a clear definition of functions and responsibilities among different agencies for imparting training, curriculum development, and technical approval of the institutes. Training is imparted mainly in the engineering trades as a response to the requirements during the period of rapid expansion of engineering and capital goods industries in the manufacturing sector.

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Women constitute a significant part of the work force. The National Vocational Training Institute in NOIDA (UP) and the Regional Vocational Training Institutes for women in different parts of India impart basic and advance levels of vocational training to women. Special attention is given to the modernisation and establishment of women Industrial Training Institutes under the World Bank aided Vocational Training Project.

There is a need for demonstrating to the younger persons the benefits in terms of well-being and career development accruing from industrial training. At present, very few surveys comparing the career development of the youngsters who take to training at the right age vis-a-vis those who continue with academic education are available. The existing Vocational Training system is more supply oriented rather than demand oriented. It is, thus, less responsive to the changing technological and market requirements. Accurate, timely and sufficient data with regard to the absorption of trained craftsmen and apprentices in different sectors of economy is largely absent. In order to bring qualitative improvement in the system, policy making functions on vocational training may be retained by the Director General of Employment and Training whereas delivery functions may be delegated to the All India Council of Vocational Training by formation of statutory boards on trade testing, affiliation, apprenticeship training etc. Ministry of Labour is considering autonomy for some of its institutes to allow flexibility in their day to day work instead of approaching the Government for approval in routine administrative matters. At present, there is little linkage between vocational training and vocational education both at Centre and at the State level. There should be coordination between vocational education and vocational training imparted by various departments, so that the programme designs, curriculum and service provided are in conformity with each other. In the available ITI seats in the country, the North Eastern States have a very low share. The employment opportunities in the government offices have shrunk due to constraint of resources faced by the State Governments. In the Ninth Plan, a special effort will be made to expand the vocational training facilities in the North-Eastern States with support from the Central Plan for this Sector, under Ministry of Labour.

Children at work
The framers of the Indian Constitution consciously incorporated relevant provisions in the constitution to secure compulsory universal elementary education as well as labour protection for children. Labour Commissions and Committees have gone into the problems of child labour and made extensive recommendations. The existence of child labour in hazardous industries is a grave problem in India. Efforts will be taken in the Ninth Plan to modify the existing National Child Labour Project. A major activity undertaken under this scheme is the establishment of special schools to provide nonformal education, vocational training, supplementary nutrition, stipend, health care etc. to children withdrawn from employment.

18

10TH FIVE YEAR PLAN

Labour Policy and The Smaller Establishments
The Economic Census enumerates economic activities other than those which are purely for self-consumption and agricultural crop production. It identifies two types of enterprises that operate in such economic activities the own account enterprises (OAE), which operate without any hired workers and establishments which hire workers.

Reform of the Vocational Training System

The objective of providing skills to all entrants to the labour force will have to be fulfilled by initiatives that (i) increase the demand for training; and (ii) increase the capacity for training. Thus, the process of reform will address both the factors that influence demand for vocational training and the factors that influence supply.

Training Services Provided By Governments at Centre and States Much of the present capacity for training is provided by institutions financed by the Central and State Governments. Most of the ITIs in the State sector, and the Central Government institutes are organised as subordinate offices of the respective governments. Examples of this are the establishments in sectors such as labour, technical education, health, small industry, agro and rural industries, and agriculture. Occupational Safety and Heath of Workers Ensuring a reasonable quality of employment requires safeguarding of workers against risk and the occupational hazards. In a situation of labour surplus, the workers take up whatever work is available and are often exposed to risks. Minimum Wages The Minimum Wages Act, 1948 may be amended enhancing the penalty for violations. A national policy on minimum wages may be evolved to help deal with the problem of inter-state variations in minimum wages. Presently, there are significant variations even in wages for the same occupations The enforcement machinery for minimum wages in the Central and the State Governments may be strengthened with involvement of NGOs, and PRIs. To prevent exploitation of workers in the unorganised sector, awareness generation may be stepped up in collaboration with voluntary organisations, trade unions and other committed individuals. The Central Board for Workers Education can be entrusted with the task of awareness generation. Child Labour The best solution to this problem is compulsory primary education for all children. However, till this is achieved, special measures to curb child labour will include: Regular surveys to assess the number of working children, and placing them in special schools. Imparting vocational skills to all children before they attain the age of 14, in schools set up under the National Child Labour Project.

19

Statutes on occupational enforcement agencies

safety

and

health

of

workers

multiplicity

of

Activity Agricultural machinery Insecticides sale, transport, distribution Pesticides manufacture, packaging, distribution, handling and use Beedi workers Factories Boilers

Authority for enforcement Dangerous Machines Act, 1983 Insecticides Rules, 1981 Central Insecticides Board, Ministry of Agriculture DG (Labour Welfare),Labour Ministry (Empowered under Beedi & Cigar Workers (Conditions of Employment) Act,1966) State Government - Chief Inspector of Factories (Empowered by Factories Act, 1948) State Government - Inspector of Boilers (Empowered by Boilers Safety Act, 1923) Labour Commissioner, (Empowered by the Shops and Establishments Acts of respective State Governments) Labour Commissioner, (Empowered by Building andConstruction Workers ( Regulation of Employment & Conditions of Service) Act, 1996) Central Government - DG(FASLI) Central Government - DG(MS) (Mines Act, 1952) Chief Controller of Explosives under the Indian explosive Act,1884

Shops and establishments

Construction workers

Docks Mines Gas cylinder rules Explosives rules Pressure vessels rules

20

11TH FIVE YEAR PLAN

The Eleventh Plan provides an opportunity to focus on and diagnose the reasons for past failings observed in the employment situation and to reverse at least some of the adverse employment outcomes associated with the pattern of economic growth in the recent past. The approach to the Eleventh Plan had identified the following specific weaknesses on the employment front which illustrate the general failing just discussed. The rate of unemployment has increased from 6.1% in 199394 to 7.3% in 1999 2000, and further to 8.3% in 200405.

Unemployment among agricultural labour households has risen from 9.5% in 199394 to 15.3% in 200405. Under-employment appears to be on the rise, as evident from a widening of the gap between the \ usual status (us) and the current daily status measures of creation of incremental employment opportunities between the periods 1994 to 2000 and 2000 to 2005 While non-agricultural employment expanded at a robust annual rate of 4.7% during the period 1999 2000 to 200405, this growth was largely in the unorganized sector. Despite fairly healthy GDP growth, employment in the organized sector actually declined, leading to frustration among the educated youth who have rising expectations. Although real wages of casual labour in agriculture continue to rise during 2000 2005, growth has decelerated strongly, as compared to the previous quinquennium (19942000), almost certainly reflecting poor performance in agriculture. However, over the longer periods 1983 to 199394 (period I) and 1993 94 to 200405 (Period II), the decline is moderate for rural male agricultural casual labour, from 2.75% to 2.18% per annum. Growth of average real wage rates in non-agriculture employment in the period 19992000 to 200405 has been negligible. Seen over the longer period of two decades (Period I and Period II), the wages have steadily increased at over 2% per annum. In respect of entire rural male casual labour, the growth in real wages accelerated from 2.55% (Period I) to 2.78% per annum (Period II) Real wages stagnated or declined even for workers in the organized industry although managerial and technical staff did secure large increase. Wage share in the organized industrial sector has halved after the 1980s and is now among the lowest in the world

The Children at Work

21

Estimates from the 61st Round reveal that 5.82 million children (age 514 years) work; 1.136 million in urban areas and 4.682 million in rural areas
Estimated Number of Children (514 Years) in the Labour Force, Workforce, and Unemployed All India (CDS Basis)

Heads 05 Urban Labour Force 1292 Workforce 1136 Unemployed 156 Unemployment 12.08 Rate %

199394 Rural 9919 9441 479 4.83 Urban 1552 1442 110 7.08

19992000 Rural 7792 7203 589 7.56 Urban 1447 1320 127 8.78

2004 Rural 5182 4682 501 9.66

The Child Labour (Prohibition and Regulation) Act, 1986 prohibits employment of children below 14 years in hazardous occupations and processes and regulates the working conditions in other employments. Compliance with the provisions of this Act is the responsibility of Labour Sector of the Plan (Ministry of Labour and Employment).

Women Workers
Women comprise 48.3% of the population but have only 26.1% share in the persons employed. This is presently because their share is in the labour force is only 26.4%. The female labour force participation rates (LFPR) across all age groups are 25 to 30% of the male LFPR in urban areas, and 35 to 40% of male LFPR in the rural areas. This is especially so for higher levels of education. While the unemployment rates between men and women do not differ much up to the primary level of schooling, unemployment among women educated up to the secondary and higher levels is much higher than among men. In the urban areas, unemployment among young women in the 1529 years age group is much higher than for men, and is highest among young urban women in the 2024 years age group where one among every four girls seeking work cannot find it. The principal reasons for low participation by women in the labour force are: Wage rates of women are lower than of male for comparable occupations. Women are denied access to certain occupations, though they may be capable of doing that work as well as the men. Skill development of women is not uniform across all trades; participation by them remains confined to a few labour-intensive occupations such as stitching, teachers training, etc., which forces a majority of the women to enter the labour market as unskilled labour

22

Past and Present Macro Scenario on Employment and Unemployment Male and Female
1983 199394 To to 19992000 05 (000 person years) All India Population 1.85 Labour Force 2.09 Workforce 239489 718101 263824 313931 893676 334197 338194 6.06 20266 1005046 364878 384909 7.31 26684 1092830 419647 1.25 8.28 34738 4.69 5.42 1.73 1.98 1.47 2.62 1.69 2.84 2.61 2.11 2.28 1.87 (% per annum) 200405 199394 2004 to to 199394 19992000 200405 199394 19992000 1983

Unemployment Rate (%) 9.22 No. of Unemployed 5.02 Female Population 1.87 Labour Force 2.26 Workforce 1.96 24335

346546 68011 61218

430188 86728 81151 6.43 5578

484837 92859 85952 7.44 6907

527355 110886 100491 9.37 10395

2.01 1.14 0.96

1.70 3.61 3.18

2.08 2.34 2.72

Unemployment Rate (%) 9.99 No. of Unemployed 5.82 Male Population 2.13 1.82 Labour Force 2.03 Workforce 1.84 371556 195813 178270 6793

3.63

8.52

1.86

463488 247468 232780

520209 272019 252242

565475 308761 284417

1.94 1.59 1.35

1.68 2.57 2.43 2.25 2.57

Unemployment Rate (%) No. of Unemployed 1.68 4.70

8.96 17542

5.94 14688

7.27 19777

7.88 24343 5.08 4.24

23

EMPLOYMENT AND LABOUR POLICY

The employment strategy for the Eleventh Plan must ensure rapid growth of employment while also ensuring an improvement in the quality of employment. While self employment will remain an important employment category in the foreseeable futureit accounted for 58% of all employment in 200405there is need to increase the share of regular employees in total employment This category has increased from 17% of total employment in 1983 to 18% in 200405. It should be the focus of policy to achieve a substantial increase in the share of regular employment with a matching reduction in the share of casual employment which at present is as high as 23%. At present, the incentives and subsidies are so designed as to strongly penalize entrepreneurs for crossing a threshold size from a micro/small to a medium/ large unit. The excise and other taxation policies need to be reviewed in this perspective.

Population, Labour Force, Employment, and Unemployment (199394 to 201617)

Status Projected
201617

Estimated
199394 893.68 501.76 19992000 1005.05 1 572.23 200405 092.83 652.94 200607 1128.31 687.12 201112 1207.97 760.11

Population
Age 0+ 1283.24 Age 1559 820.57

Labour Force UPSS

Age 0+ 586.44 Age 1559 535.20

37 8.65 337.71 334.20 298.95

408.35 369.22 364.88 330.78

471.25 431.95 419.65 385.87

492.66 451.70 438.95 403.75

541.84 496.65 483.66 444.72

CDS

Age 0+ 524.06 Age 1559 479.70

Employment UPSS
Age 0+ Age 1559

371.12 330.34

398.93 360.04

459.72 420.74

24

CDS

Age 0+ 518.20 Age 1559

313.93 279.88

338.19 305.70

384.91 352.92

402.24

460.31

Unemployed UPSS
Age 0+ Age 1559

7.53 7.37 20.27 19.07

9.41 9.17 26.69 25.08

11.53 11.21 34.74 32.95 36.71 23.35

CDS

Age 0+ 5.86 Age 1559

Unemployment rate (%) UPSS

Age 0+ Age 1559

1.99 2.18 6.06 6.38

2.30 2.48 7.31 7.58

2.45 2.60 8.28 8.54 8.36 4.83

CDS

Age 0+ 1.12 Age 1559

Current Daily Status (CDS)

25