Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Introduction:
In India, a major chunk of labor force is employed in the
unorganized sector. The unorganized / informal employment
consists of causal and contributing family workers; self
employed persons in un-organized sector and private
households; and other employed in organized and
unorganized enterprises that are not eligible either for
paid, sick or annual leave or for any social security benefits
given by the employer.

According to the results of the National Sample Survey

conducted in 1999-2000, total work force as on 1.1.2000
was of the order of 406 million. About 7 % of the total
work force is employed in the formal or organized sector
(all public sector establishments and all non-agricultural
establishments in private sector with 10 or more workers)
while remaining 93% work in the informal or unorganized
sector. The NSS 55th round, 1999-2000 also covered non-
agricultural enterprises in the informal sector in India. As
per that survey, there were 44.35 million enterprises and
79.71 million workers employed thereof in the non-
agricultural informal sector of the economy. Among these
25.01 million enterprises employing 39.74 million workers
were in rural areas whereas 19.34 million enterprises with
39.97 million workers in the urban area. Among the workers
engaged in the informal sector, 70.21 million are full time
and 9.5 million part times. Percentage of female workers to
the total workers is 20.2 percent. 1
 

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

The largest numbers of informal workers are in agriculture.

In fact, 98.84 percent of the employment in agriculture is
informal. In the non-agricultural sector, the highest
numbers of informal employees are in retail trade,
construction, land transport, textiles etc.

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Study Area:
For the organized sector we have visited the

SARBI PETRO CHEMICALS PVT. LTD The plant is

situated at D-150, MIDC, TTC Ind. Area, Nerul,
Navi Mumbai - 400 706. Maharashtra. India. The company
was formed in 1976 for manufacturing Aluminum Rolling Oil
and Diesel Injector Test Fluid. Subsequently, it has taken
up manufacture of various Petroleum Specialties and
Lubricant Additives.

Some of the products for which the company has carved its
niche in the industry are : Aluminum Rolling Oil, Sulphurised
Fatty Oils & Esters, Lead Naphthenates for Lubricants, as
well as soluble and Neat Cutting oils for which the company
formulates and blends its own emulsifiers and additives.  

For over 10 years the company has been manufacturing and

marketing a whole range of Industrial & Automotive
lubricants.
The automotive product range consists of monograde and
multigrade engine oils, brakefluids, 2 stroke engine oils,
gear oils, greases & radiator coolants.

The industrial grades are metal working oils, rust

preventives, hydraulic oils, gear oils and other specialty oils.

3
The company also undertakes Toll Blending of Automotive
and Industrial Lubricants. It has its own well equipped

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Product Development and Quality Control Laboratory with

qualified and experienced personnel.

Recently two reputed international Joint Venture Lubricant

companies have utilized its Toll blending services to launch
their Automotive oils in Indian market.

For the unorganized sector we visited

SILVER PRINTERS AND PUBLISHERS.

The printing unit is situated at A-16, Waghe Industrial

Estate, Mustafa Bazar, Mumbai. The Company was formed in
1950, at that time the company just imported books and
sold it in the local market. Now the company publishes books
at their own printing unit and exports books at national and
international market. The company employees around 20
workers at its press for the printing works .

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Organized Sector:
The sector, which is registered ,follows Govt. rules n
regulations, have employees n employers union is called
organised sector. The company form of business comes
under organised sector. The private retail business is called
unorganized sector. Reliance retail is in organised sector, as
it is in a company form n registered.

Employment in the organised sector industry grew from 8.3

million in 1991 to 10.2 million in 1996, or at over 4 per cent
annually. There is no previous episode of such high growth
rates sustained for five years. It is also clear that the rate
of growth of average real wages slowed down greatly in the
1990s, and the rate of growth of real productivity (value-
added per worker) increased.

These trends represent a big contrast to the 1980s, which

saw quite opposite trends: Rapid increase in real wages,
moderate increase in productivity, almost no change in
employment. These features were named the syndrome of
‘jobless growth' and have been, along with the contrast to
the early-1990s, matters of debate.

Why did jobless growth turn into job-friendly growth in the

early-1990s? One answer is that industrial composition
changed in favour of labour-intensive sectors, and many
exportable sectors are intensive in labour, skilled or semi-
skilled. This answer lays more stress on the demand effects
of the reform.
5

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

A second answer focusses on the dynamics of the labour

market, and suggests that the employment growth resulted
from a coincidence of reforms with changes in industrial
relations. Incidence of labour militancy came down in the
1990s, and may have encouraged more recruitment while
slowing down wage growth. There has indeed been a great
deal of adjustments in employment and terms of contract.
The corporate sector has pushed a lot of jobs, formerly
integrated, to the service sector. On an average, the
private sector employee seems to work harder for less at
2002 than at 1992.

New firms in the 1990s started without any overhead of

surplus workforce and the option to introduce more flexible
work regime. By contrast, employment was sluggish in the
1980s because of labour militancy, often state-backed, and
a great lack of flexibility. One point missed out in the
`jobless growth' debate is that employment growth is a sum
of new jobs created and old ones lost. The debate, by
contrast, has been preoccupied only with the rate of job
creation. It is possible to estimate gain and loss separately
for the organised sector.

In 1980-90, jobs were lost on an unusually large scale,

almost a quarter of the employment level in 1980. Jobless
growth, in other words, was influenced by mass closures,
the most famous examples of which occurred in textiles and
engineering. In 1991-96, such mass closures were rare,
closures occurred more at the firm level, and total job loss
was small, about 2 per cent of 1991 employment. 6

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

The main difference between the 1980s and the early-

1990s was not one of `more' or `less' militancy, but of
change in bargaining institutions. Industry-wide unions were
in decline all through the 1980s, making way for firm-
specific bargaining. Closures, to the extent they can be
attributed to labour factors such as militancy or wage-
rigidity, also ceased to be industry-wide in the 1990s.

In contrast with the early-1990s, the late-1990s were

devastating. In only two years of recession, 1997 and 1998,
job loss was quite significant. Between 1994 and 1999, the
organised sector employment fell from 9.4 to 8.4 million.
The real magnitude is somewhat smaller, for these two
figures correspond to two industrial classification systems.
Adjusted for that, the extent of the fall may have been
about half a million.

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Unorganized Sector:
While India draws attention for being the second-fastest
growing economy in the world, workers in the unorganised
sector continues to be denied basic facilities, says a
government study.

In a first-ever initiative to quantify the contribution of

more than 340 million (close to 93 per cent) workers in the
country's unorganised sector, a study conducted by the
National Commission for Enterprises in the Unorganised
Sector (nceus), under the Union ministry of small-scale
industry, reveals that close to half of the workers are
engaged in the construction industry.

"From road construction to domestic help, they work long

hours for less than the minimum wage, receive no
compensation for work-related injuries and there are no
measures for their social security either,' says the study.

nceus, an advisory body, was created on September 2004

under the chairmanship of Arjun Sengupta, member,
Planning Commission. It was set up to suggest measures for
providing basic social security measures to workers in the
unorganised sector.
8
"Most of the social security measures are targeted for

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

workers in the organised sector. There is no political lobby

for providing basic minimum social security to workers in
the unorganised sector, who contribute significantly to
economic growth,' says economist Amirullah Khan.

NCEUS has suggested creation of a national level fund for

financing welfare programmers for unorganised sector
workers.

The Planning Commission has recently recommended that

smart cards be issued to them so that they can avail basic
social security schemes.

Most people in India earn a livelihood by working for an

income. They work for one Employer or many, or as self
employed or own account workers or as contract workers,
Home-based workers etc. in every sector in the economy. It
has been recognized that workers Need to have good
working conditions, receive a minimum wage, and have access
to a minimum amount of social security. To this end a large
number of labour laws were passed which cover different
aspects of a worker’s needs eg. Provident Fund Act to give
security in old age, Factories Act for good working
conditions and so on. However, today in India, only about 8%
of workers actually get the benefits available under these
Acts. The rest 92%--over 30 crores-- work in the
unorganized sector, and either are not eligible for coverage,
or these Acts are just not implemented for them, with the 9
result that these workers have insecure employments and
low incomes. They have no coverage of social security, and

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

have to spend out of their meager incomes for all

contingencies such as illness and children’s education; in
their old age they are helpless. This, in spite of the fact
that they contribute over 60% of the country’s GDP.

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Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Result & Discussions:

We have visited a factory to gather information on the
status of workers in the Organised Sector and a production
unit to get the information on the status of workers in
unorganized Sector

Questioner for Status of Workers in

Organized Sector .
Name: Mr. Prasad Victor

Age: 48

Position in Business: Administration Manager

1. Do you get bonus when your company earns profit?

Yes No

2. Do your bosses ask your advice while making some

important contracts?
Yes No

3. Have you ever gone for some training?

Yes No

4. Have you done some overtime in your office for extra

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work?

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Yes No
If yes do you get paid for it?
Yes No

5. Do you have work pressure from your boss?

Yes No

6. Does your working environment affect your health?

Yes No

10. Do you like your job?

Yes No

11. Since how many years are you working for the
company?

3 Years

12. Does the company involve employees in managerial

decisions?

Yes No

13. What are the various benefit schemes given to you by

the company?

 Provident Fund
 Gratuity 12

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

14. Does the company have a trade union?

Yes No

15. Does the company revise its salaries/wages?

Yes No

Discussion on the above questionnaire .

SARBI is a company from where we have taken info
regarding our project on organized and unorganized sectors.
Our group had prepared a questionnaire for the following
persons in these sectors.

(i) Prasad Victor

(ii) Hardik Devkar

Mr. Prasad is a administration manager who looks after a

administration work of the factory and Mr. Hardik is the
product development manager. Here are some answers given
by the above managers. Prasad is being working for more
than 2 years and Hardik is being working four ten months.

(i) When the company earns some profits from total

sales, the bonus is not distributed among the
workers. 13

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

(ii) In case of technical problems, the boss takes our

advice but relating to any important decisions in
working of the factory our advice are not taken.

(iii) Training is given to those people who do not perform

well in the factory and otherwise training is given to
the new comers not to the experienced ones.

(iv) Yes we regularly do extra work in the factory, but

we are not paid for overtime.

(v) Work pressure arises due to completion of tasks

asked by the boss for urgency of consignment.

(vi) There are proper facilities provided to each

workers, therefore health of the workers is not
affected.

(vii) He is comfortable with the condition of work, so he

is fully satisfied.

(viii) Workers are involved in planning, controlling and co-

ordination between the management and employees.
14

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

(ix) Workers are given provident fund and gratuity

schemes.

(x) Yes there is a Trade Union in the company which

fights for the right of the employer.

(xi) Salaries are revised every year in the month of

April.

(xii) Safely measures are taken properly. When the

people work in laboratory they have to wear apron
mask and gloves.

(xiii)Bonuses are given during the festival of Diwali.

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Questions for workers in unorganized sectors .

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

1 Is your boss friendly and helpful to you?

Yes No
2 Does your boss gives you offs from work
when there is an emergency?

Yes No

3 When was the last time you were given a pay

rise?

1-3months 4-6months 7-9months 10-

12 months

4 Are you satisfied with the working

conditions?

Yes No

5 How do you get your wages?

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Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Daily Weekly Monthly Per piece

rate

6 In how many months do you get paid leave?

We do not get paid leave.

7 On what occasion does your boss offer

bonus?

On Festivals.

8. Do you work overtime?

Yes No

If yes do u get paid or No ?

Yes

9. Do your bosses ask for your advise in

managerial decisions?

Depends.
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Discussions On the above answers.

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

Silver Printers and Publications is a unit from where we

have taken information regarding our project on
unorganized sectors. The questionnaire was prepared for
the following persons in the unit.

(i) Rashid Khan

(ii) Fahad Sidiqqui

Mr. Rashid is a administrative manager who looks for the

administrative work of the factory and Mr. Fahad is the
employee in the factory. Rashid is working in the company
for almost 7 years while Fahad is working for 5 years. Here
are some of the answers given by them.

(i) During difficulties our boss comes up with his

experience and ideas to solve the problem.

(ii) If there are any family problems at my native place

or health issues then we get paid leave.

(iii) We usually get a pay rise every year.

(iv) We are not satisfied with working condition as there

is no proper ventilation, no proper facilities like
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drinking water and safely measures are not being
taken care off.

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

(v) The wages depend upon worker to worker. Permanent

employees get monthly salaries and employees who
are on hire and fire basis get the piece rate wages.

(vi) We get once in a year for two months but do not get
paid for it.

(vii) Bonuses are offered to all the employees on

festivals.

(viii) At the time of weekly off if we are called for extra

work we are paid for it.

(ix) In case of technical problems, the boss takes our

advice, but relating to any important decisions in
working of the factory our advice are not taken.

Conclusion: 19

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

India's booming economy, growing middle class and

increasing disposable income is fuelling a retail boom in the
country. And, following close on the heels of this boom are
cold-chain suppliers, software providers and educational
institutes that are expected to benefit directly from it. 

The rapid growth of modern retailing, especially in food and

groceries, calls for an organised cold chain infrastructure.
India is one of the largest producers of fruits and
vegetables in the world. Moreover, India's food market is
valued at $70 billion, which is doubling every three years. 

Air conditioning and refrigeration major, Carrier, is already

providing refrigeration equipment for long-distance trucks
and trailers for delivery of perishable products. 

Similarly, Ingersoll Rand's solutions include pre-cooling, cold

storage and land transport refrigeration. It's already
supplying refrigerator systems to large retail chains in
India. 

"We see a multi-fold increase in the refrigeration business

in the coming years. Right now, less than 10% of the fresh
produce goes through a cold chain," says Daljit Mirchandani,
president, Ingersoll Rand (I) Ltd. 
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Retail players in education are hiring by the dozen and soon

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

this number is expected to surpass the IT and BPO sectors.

MeritTrac, a company specialising in assessments, recently
released a survey on skill requisites of retail sales
personnel. 

The study noted that an executive rated half as good as his

colleague on creative presentation skills, loses out on 25%
of all sales opportunities his colleague is certain to succeed
in. The survey also said that sales personnel lack the key
skill to explain creatively and demonstrate the product. 

India is currently facing a shortage of 3,00,000 skilled

retail (both frontline and experienced) professionals.
Keeping this in mind, NIIT Imperia has launched a set of
programmes targeted at executives. The IT major, in
association with IIM-Calcutta, is planning programmes in
the arena of retail management. 

With organised retail requiring substantial investment in

technology, IT providers and software players are
developing solutions specific to the sector. 

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Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

ACKNOWLEDGEMENT

We would like to thank

Prof. Parul Vedak for
giving us interesting topic
to work on and for your
cooperation and guidance

22

Submitted To Professor: Parul Vedak

Status Of Workers In Organised And Unorganised Sector Lala Lajpatrai College

GROUP MEMBERS
Name Roll No
Aakash Bafna 108
Preeti Chhatwal 119
Laxmi Choudhary 121
Dhruven Jain 146
Rahul Jain 149
Vipul Jain 152
Riyaz Sayed 159
Deepak Rathod 250

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Submitted To Professor: Parul Vedak