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Govt mulls social security cover for unorganised labour

Fakir Chand in Bangalore

The central government plans to design a social security cover for the unorganised sector and extend to it the benefits enjoyed by those employed in the organised sector.

Union Labour Minister Sahib Singh Verma, addressing the media in Bangalore on Friday, said a labour Bill would be introduced in the Budget session of Parliament in this regard.

As part of the ongoing labour reforms proposed by the National Democratic Alliance government, the Bill will seek to amend the existing laws so as to provide social security, including minimum wages, medical benefits, provident fund, and job guarantee to around 350 million people employed in the unorganised sector.

"The recommendations of the Second Labor Commission are being studied by the ministry. This will help in drafting an amendment Bill to be introduced as part of the Union Budget for the fiscal year 2003-04.

There are about 50 central laws and another 200 state laws dealing with employees/workers in the organised sector. These will be rationalised to meet their requirements in the post-liberalisation era.

A social security number with a photo identity card will also be issued from next year to each and every worker or employee in the unorganised sector for improving their quality of life and provide security of a guaranteed job," Verma stated.

About 30 million employees in the organised sector enjoy many social benefits that are denied to the huge unorganised sector workforce.

The government is also thinking of bringing those employed in the agriculture and infrastructure sectors under the social security cover.

"We are also planning to collect a minimum fee from each employee in the unorganised sector to raise about Rs 350 crore (Rs 3.50 billion) to take care of their social benefits. A matching grant from the government as budgetary support is also under consideration," Verma affirmed.

Asked whether there is a consensus among the NDA allies as well as the council of ministers on the proposed Bill to bring in sweeping labour reforms, unlike in the case of the divestment process, Verma told rediff.com that the labor commission report was being circulated to all the ministries and state governments for their feedback to incorporate in the proposed Bill.

"The ministry will be holding a two-day national seminar on the recommendations of the Second Labour Commission in Delhi on October 31 and November 1, 2002 to evolve a consensus, especially in making the workforce in the unorganised sector to join the mainstream," Verma asserted.

Referring to the Industrial Disputes Act and the Cabinet decision on allowing retrenchment by companies employing a minimum of 1,000 people without the government's consent, Verma said no progress was made in implementing the decision yet.

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