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The need for a social security net for people who are unemployed and those at risk of losing their jobs has never been more acutely felt as it is now. With the global meltdown hurting economic activity, particularly small and medium enterprises, tens of thousands of workers face the prospect of losing their jobs
Indian Parliament has finally passed an ambitious law aimed at ensuring social security to workers in the unorganised sector, comprising 94% of the country’s labour force. The Unorganised Workers’ Social Security Bill, 2005, which has received Rajya Sabha approval, includes around a dozen welfare schemes like health insurance, group accident scheme, savings-cum-relief scheme, and family and old-age benefit schemes. Union labour minister Oscar Fernandes said the Act would cover around 34 crore people, six crore annually. “This is going to be the scheme of the millennium,” he said. Admitting that there could be some “shortcomings,” he said the government would not be able to cover everybody in one go. Opposition parties, particularly the Left parties, moved 22 amendments that were defeated in voting. “I feel betrayed by the Bill,” said CPI (M) member Hannan Mollah who led the Left attack on government and wanted certain changes in it. Fernandes said this was the first step in 60 years to remove the difficulties of the poor and sought the cooperation of states for speedy implementation of the Act. “In 60 years we have been discussing but had not taken the first step. This is the first step to eliminate the difficulties of poor people,” Fernandes said. Highlighting that the Act would cover workers in the agricultural sector and migrant labourers, Fernandes noted that the government was “extremely concerned” over the problems faced by people working in the unorganised sector. He said that there should be two separate Acts -- one for the unorganised sector and another for the agriculture sector. The Bill, passed by the Rajya Sabha in October, incorporates 10 social security schemes; a 34-member National Social Security Board will take decisions relating to the schemes. The Bill also provides for the inclusion of Members of Parliament on the board and the setting up of similar boards by state governments to consider alternative proposals for providing social security to workers, especially workers not covered by any scheme. The need for a social security net for the unemployed and people in danger of losing their jobs has never been more acutely felt as it is now. With the global meltdown hurting economic activity, particularly small and medium enterprises, tens of thousands of workers face the prospect of losing their jobs. Many small units employ as few as 10-20 employees and therefore are not regulated by India’s existing labour laws. They are not required to contribute to the employees’ provident fund or be paid gratuity or a severance package when they are retrenched. Source: The Hindu, December 18, 2008
Business Standard, December 18, 2008
PTI, December 17, 2008
http://week.manoramaonline.com, December 16, 2008
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