Strategical Innovations To Up build The Vulnerable

Providing social welfare to the informal sector workers

Team Details

Keswin, Harikrishna, Kalpajit, Anoop, Sreemol

Vinayaka Missions Kirupananda Variyar Engineering College, Salem

Causes of the problem:

Identification of the informal sector is a herculean task as they exist outside the

tax ambits.

Lack of awareness among the informal sector workers in rural and urban

areas.

Lack of proper social security net and unrecognizable employees.

Lack of well defined classification and granting's in the category of

unorganized sector workforce.

Indicates the classification of unorganized sectors by NCE (2009).

As per the Census 2008-2009.

94% of Indians work growth comprises of informal sector group who helps in boosting the countries economy

Low wages.

Low living standards.

Inadequate nutrition.

Long working hours.

Hazardous working condition.

Lack of basic amenities.

Shortage of clean drinking water and proper sanitation facilities.

Child labour.

Gender differentiations.

Lack of institutional support, benchmarking and exploitation of workers.

Problems faced by informal sector

Proposed innovative solution concept Fixed wages decided by the government based

on their working hours, environment ,type of labour ,age and sex bar.

Providing access of BPL and APL ration cards to all in fast track method.

Fixing up working hours and shift based duties along with overtime work adding to extra income.

Improving the standards of working area by introducing safety measures and safe environment.

Providing basic first aid services dispensaries, water and sewage treatment plants.

Sharp monitoring panel to monitor child labour.

Identifying the workforces recognizing of employers organizing them in various categories, implementation of a social security net, inclusion of workers in institutional banking system.

Merits of proposed solution Provides a safe social security net

along with registration of employees and workers by arranging them in various categories and centralization, solves the problem of “ lack of basic amenities”.

Providing the drinking water facility and a proper sanitation facilities solves the problem of “shortage of drinking water and proper sanitation facilities”.

Strict and sharp monitoring solves the problem of “child labour”.

Implementation of solution

Fixed working hours for the unorganized sectors

Non Hazardous

Hazardous

Environmental conditions must be classified as follows, in order to ensure security of workers in

unorganized sectors

Classification of employees on the basis of age and sex bar

45- mortality

4-8 hours Overtime with extra wages

but exempted from hazardous work conditions

16-45 years

4-12 hours Overtime with extra wages and included in hazardous

work conditions

14-16 years

4-6 hours Exempted from overtime

duties and hazardous work conditions

Financial supports and providing institutional benchmarking

Informal sector

workers

Non migrants

migrants

Macro Entrepreneurs

Micro

Entrepreneurs

Non migrant and migrants to be provided loan by the cooperative Banks and macro and micro entrepreneurs must provided loans by nationalized banks.

Interest rates:

9.25% to migrants.

8.25% to non migrants.

9.5% macro entrepreneurs.

10% micro entrepreneurs.

Stakeholders Involved In Each Step • Fixing wages: Employees are the

stakeholders executed by the government.

• Ration cards and ration products: The government is the stakeholders.

• Providing basic amenities, safety measure and training to workers: Employees are the stakeholders and executed by the government.

• Social security net: Government of India is the stakeholders.

• Drinking water and sanitation: PWD and health care departments are the stakeholders.

• Child Labour : NGO’S ,Government of India ,Child welfare and Human right commission.

Sources Of Income

20% can be collected from

people in organized

sector (Banks..etc)

5% can be collected by the Public (Raising Funds)

10% can be contributed

by the government

Appropriate Monitoring Mechanism

Setting up a organized ministry of informal sector

Union ministry of informal sector (including cabinets)

State ministry of informal sector

District union of informal sector

Municipals, cooperation's,

Villages

Co-operative societies, small scale

informal sectors.

Migrant and non-migrant workers & Micro and Macro entrepreneur

Union ministry

of informal

sector

State ministry

of informal

sector

NGO’s, entrepre

neurs, financier

s and bankers

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by

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Challenges and mitigation factors

• Clash between informal and formal sectors.

• Economic budget will be increased.

• Muscle and money powers of political parties leads to compressing of informal sector.

Social and economic

challenges:

• Due to illiteracy and technological backwardness of unorganized sector, loses their opportunity provided by the government.

Technological challenges:

• Agricultural production may decrease due to the extensive opportunity provided by the government.

Environmental challenges:

Mitigation factors: NSS and scouts & guides must spread the

awareness both in urban and rural areas.

Vocational education and skills trainings must be provided to the informal sector.

Economic investment through high in put stages by the government in long term bases can be resulted into higher economy.

Sustainability: Long term investment and framework

on this sector provides security to the unorganized workforce.

Boosts economy.

Improves living standards of informal sectors.

Large scale employment opportunities.

Appendix Images

www.google.com

• Youth Employment and Unemployment: an Indian Perspective (ILO)

• State of Urban Youth, India 2012

• Right to Drinking Water in India (Centre for Economic and Social Studies 2004)

• www.statiticsfindia.com

• Report on unemployment and employment survey (2009) ministry of labour and employment.

The End