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Unorganised sector may have to give social security to workers

Updated: May 17, 2013 02:15:07pm
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New Delhi, May 17 (KNN) A large number of India’s unorganised businesses may have to provide for social security for their workers implying an increase in cost burden on them. 

Prime Minister Manmohan Singh told the 45th session of the Indian Labour Conference today, “Some demands raised by the trade unions are already under an advanced stage of consideration by the government. These include issues like universal social security cover for workers in both the organized and unorganized sectors, creation of a national social security fund, fixing a national floor level minimum wage and provision of minimum pension of Rs 1000 per month under the employees’ pension scheme.”     

A number of Bills have been introduced for amending acts such as the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain Establishments) 1988, the Mines Act, 1952 and the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) 1979.

At present, the Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by certain Establishments) Act, 1988 has limited application for providing exemption only to establishments employing up to nineteen persons.  

Although the Prime Minister did not specify the kind of social sector obligations on the unorganised sector, it may include providing benefits like provident fund, group insurance etc.

“We have set up a group of ministers under the Finance Minister to go into the whole gamut of demands raised by the trade unions,” he said.  

Many of the demands of the trade unions reflect the concern that the growth and progress should be inclusive and should particularly benefit the under-privileged sections of the society.

Meanwhile, skill development is crucial for providing employment opportunities to large and growing young population. A skilled workforce is also a pre-requisite for the achievement of rapid and inclusive growth.   

In order to achieve this, the modular employable skills (MES) programme of the Ministry of Labour and Employment provides short duration courses to prospective trainees using both government and private infrastructure.

It is an attempt towards increasing employment in the unorganized sector at a rapid pace.  

The Prime Minister said, “I had spoken about the need for a new deal to the working people, the need for ensuring the welfare and well-being of all workers, particularly those in the unorganized sector.” 

Further with active participation of the industry, the trade unions and the government, the country can achieve more effective outcomes in improving the employability of youth and thus pave the way for generating employment opportunities.

The micro, small and medium enterprises sector provides gainful employment to as much as 26 per cent of total employment in the country. In particular, it provides gainful employment to a vast majority of workforce in the unorganized and informal sector. (KNN) 

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