Issues of Unorganized Workers in Perinthalmanna
Issues of Unorganized Workers in Perinthalmanna
PROJECT REPORT
Submitted to CALICUT UNIVERSITY
Mohammed Irshad pp
B COM
4. Sample design:-
Sample size : 50 workers
Sample unit :workers in unorganised sector in Ottapalam municipality.
Type of sampling: For the purpose of the study probability sampling method has been used.
Samples are taken randomly and the study is conducted on the workers by administering a
questionnaire among the workers.
5. Source of data:-
Primary data: The study mainly based on primary data collected through structured
questionnaire and interview with the workers in unorganised sector.
Secondary data: This data originally collected from published sources like articles and
published books on problems faced by unorganised workers.
CHAPTER-II
REVIEW OF LITERATURE
REVIEW OF LITERATURE
This chapter analyses the views and main findings of different authors on the economic
conditions of unorganized construction labourer. The study of related literature implies locating,
reading and evaluating reports of casual observation and opinions that are related to the
individuals planned research work. Further, the concepts used in the present study have been
discussed.
[Link]. VandanaDeve (2012) made an attempt to understand the socio economic conditions of
labours, nature of their working conditions, wage pattern, wage discrimination of other
difficulties faced by their work place. It was carried out with 350 respondents including women
construction workers, agriculture labours and domestic helpers working in the unorganized
sector. The result showed that majority of the migrant women were engaged in the construction
industry and were only employed in unskilled and low pain jobs and coolies, labours and helper
and women were exploited to a greater degree as the were paid less compared to men for similar
nature of work and hours spend on work. The condition of the work in the unorganized sector
were unsatisfactory and the problems confronted by them were acute. And the their illiteracy,
poverty and indebtedness forced them to work for lower wages and under unjust condition .
2. Antony D’Souza (2013) focused and status and contribution of unorganized sector forced
more on the challenges and problems faced by the youth in selecting job as self- employment. It
is found that larger number of workers was getting their livelihood for this sector and
entrepreneur place a vital role in bring up unorganized sector at the better position in the country.
[Link] and Romica (2012) conducted a study amongst working women of the organized and
the unorganized sector for understand their status within the family by looking at their
involvement in key decision making areas including distribution of house hold duties and money
related decision.
[Link] P. E, bring out the consequence and determinant of women’s work in the unorganized
sector. It is revealed that women in the textiles sales sector and working with very lower wages
than the minimum wage fixed. They are mot getting any service benefits such as increment
leave, position, PF and insurance. They are all coming from the lower class family and are
exploited in many wages .
5. Mr. Praveen sindu an expert from FES delivered a speech on ‘ Unorganized sectors in India
’ to draw a contrast between the condition of labour in Birbhum and the rest part on un
organized sectors of India. He defines labour ‘ as an effort – either physical, mental, skilled,
unskilled, etc.. to satisfy a demand. It does not work in vacuum but in a society under a policy
and systems ‘ According to the statistics presented by him, approx. 77-80% of Indian labour live
with a daily wage of 40 rupees. As a remedy to this issue he suggests the labour power to be
organized and the effort to be collective in nature
6. Prof. P.K Ghosh, principal, institute of rural reconstruction, VisvaBharati discussed on the
laws and flaws in unorganized sectors with difference to Birbhum district. He further said how
this problems. Some issues like MNRGA, PROPLEL, etc… were discussed with case studies in
contract to Birbhum district presenting facts and figures along with statistics. Some faults were
shown with evidence and profs reflecting the gap in law
7. Mr. S. C Srivastava, national fellow Secretary General, National Labour Law Association
New Delhi, disused on the ‘Labour Laws in India ‘. He further discussed on the insurance
schemes, policies and laws available for the labour of both organized and unorganized sector of
India. Some villages from the research area were invited to the seminar to get the solution to
their problems from [Link] itself. Schemes like’ Rajiv Gandhi SasthaBimaYojana’,
‘JanasreeBimaYojana’, etc… many other such schemes and policies for the betterment and uplift
mend to labours were also discussed. This discussion made a clear impact on the invited villages
as the found some remedy to their daily problems regarding ‘Labour Issue’.
8.A study conducted by Rajarathinam (2001) on Dalit Unorganized workers are hailing from the
village areas of Tirunelveli of Tamilnadu District. He mainly conveyed about the poor
socioeconomic condition of Dalit Majdoor.
[Link] Joseph, Nirupama Soundararajan, Manisha Gupta and Sanghamitra Sahu in their
research paper Impact of Organized Retailing on the Unorganized Sector discussed on how
unorganized sectors are being benefited by the limited numbers of retailers of the mini and
megacities. They have also recommended few policies that will strengthen the relationship
between large retailers and small suppliers.
10.T. S. Papola in his research paper concerning to informal Sector: Concept and Policy
discussed about various disadvantages of informal sectors and conveyed to reduce their problems
they suffer, and also told to increase the absorption capacity of in - migrant works into the city to
enhance their productivity and to develop working condition of workers.
[Link] Hill in her Women in the Indian Informal Economy: Collective Strategies for Work
Life Improvement and Development conveyed that resource based approach which is
inappropriate in informal sectors.
13Neha Mittal (2012) in her Research Paper Women Workers In ‘Unorganized Sector: Socio-
Economic Perspective’ has discussed about the problems of women worker. They working for a
long hour’s every day, chaotic working conditions, very low wages and above all they keep on
working without proper social security measure.
[Link] Jacob in his research Paper “The Unorganized Sectors in India” has described minutely
about their problems and challenges regularly because of seasonality nature of job. Workers are
suffering from the indebtedness and bondage especially in the rural area. The do not even get
proper guidance of Trade Union.
[Link] Majumdar (2013) led a study named as “Social Security System and the Informal
Sector in India: A Review”. As per her view India's government managed social security
since1947, effective very negligible for the labourers of unorganized sectors whether in India
maximum labour force comes under the informal sectors. This article surveys about monitory
condition of the workers i.e. they do not have savings to keep themselves secure in a problematic
situation. She also tried to convey that absence of standardize saving of this type of workforce
mark on the efficiency of the whole Indian economy.
[Link], Deodar and Sankaran (2004) in their book, “labour Welfare, Trade Unionism and
Industrial Relations” stated that labour welfare is anything done for the comfort and
improvement, intellectual and social-well being of the employees over and above the wages paid
which is not a necessity of the industry.
[Link] to Sadodas Kumar Vijay (2011) conducted the study on the working and living
conditions of stone quarry workers. This study examined the hiring practices, compensations the
role of government and trade unions in this sector. In this regard not much help was provided by
the government and legal framework of the country. It was a social survey research which used
the random sampling method. The findings revealed that there was no clear employment
relationship with either employer or contractor and workers always remain uncovered by any
labour legislation which regulates the term and conditions of employment or social security
scheme. Hence the requirement implementation of a comprehensive law becomes imperative to
provide a better standard of living and to regulate their working conditions.
[Link] to Dr. G. Rajendran and Mrs. S. Hema (2015) concluded that they are the most
vulnerable and deprived section of the society in the need of protection, security, benefits and
assistance. As per NCEUS details, the unorganized workers by gender across the states in the
year 2013- 2014. The male workers are 90.7 and female workers are 95.9% in unorganized
workforce. The female workers are more than male workers in unorganized sector as well as
unorganized workers.
[Link] to Dr. Muna Kalyani (2015) the security needs of the unorganized sector such as
Food, Nutrition, Health, Housing, Employment, Income, Life and accident, and old age remains
a dream in India.
20.A study by Harvard (2013) researchers observed that Construction workers are frequently
stressed about work-related injuries and pain and often fail to seek help, putting themselves at
risk for more injuries and mental health issues, including depression, anxiety, and even suicide,
according to a new study by researchers at Harvard School of Public Health. As per Journal of
Occupational and Environmental Medicine (2013) high prevalence of substantial mental distress
in the U.S. construction worker population and this distress is strongly related to pain and
injuries.
CHAPTER-III
THE ORETICAL FRAME WORK
THEORATICAL OVERVIEW
UNORGANIZED SECTOR: AN OVERVEW
The term unorganized is often used in the Indian contest to refer to the west no. of workers
engaged in different form of employment including home-based workers, self employment
programmes, employment in house hold enterprises and small units, agriculture workers, labour
on construction sites, domestic work, handicrafts khadi and village industries, handloom weaving
and sericulture etc.. The central statistical organization, (CSO) defined unorganized or informal
sector consisting of enterprises that producing for the market do not have 20 employees without
power and 10 employees with power. The workers of these enterprises are no registered under
any legal stipulation like the industrial Disputes Act of 1948 etc….
The National Centre for Enterprises in the unorganized sector (NCECS) set by the
Govt. Of India in September 2004 defined the unorganized sector as the unorganized sector
consists of all un incorporated privet enterprises owned by individuals or house holds engaged in
the sale and production of good and services operated in a proprietary or partnership basis and
with less than ten total workers.
The unorganized labour is vast in terms of is number range and therefore they are universal
throughout India.
As the unorganized sector suffers from cycle of excessive seasonality of employment, majority
of the unorganized workers does not have steady avenues of employment. Even those who
appear to be visibly employed are not gainfully and substantially employed, indicating the
existence of disguised unemployment.
In rural areas, the unorganized labour force is highly stratified on caste and community
considerations.
In urban areas while such considerations are much less, it cannot be said that it is altogether
absent as the bulk of the unorganized workers in urban areas are basically migrant workers from
rural areas.
Workers in the unorganised sector are usually subjected to indebtedness and burden as their
inadequate income cannot meet with their livelihood needs.
the unorganised workers are subjected to exploitation by rest of society .They receive poor
working condition especially wages much below that in formal sector.
Inadequate and ineffective labour laws and Standards relating to the unorganised sector .
The unorganised workers do not receive sufficient attention from trade unions.
In operationalizing these variations on dualism, the contrasts are more significant than the
specific characteristics of each segment. For instance, it’s entirely normal to describe the
informal sector by summing up the absence of elements found in the formal sector. In the
absence of a more analytical definition, the landscape of the informal sector becomes
synonymous with the kaleidoscope or unregulated, poorly skilled and low paid workers.
Highlighting this chaotic assortment Keith hat coined the term “informal economy” in 1971.
Informal labour has, in different instance been viewed as labour engaged oil in urban
small scale enterprises, a self employment, as labour engaged in “traditional activities”, as
wholly unskilled labour and as labour whose use is not subject to any rules or norms but none of
this has any sound conceptual or empirical foundation. Informality does not imply a particular
mode or location of labour use; informal labour can be in self employment, in casual wage
employment, and in regular wage employment. Justas it can be in urban as well as in rural areas.
There is little reason to think that informal labour must be contained to ‘traditional’ and ‘modern
activities’.
We do not need to assume that informal labour is unskilled; only need to recognize that
its skills are acquired outside the formal education system. And all the more in the context of the
non-liberal economic policies if hire and fire where the organized sector itself is getting
informalised through contractulalisation, casualization and outsourcing of labour, there are
workers who are equally or even more educated and skilled, work better and even longer in so
many of the organized sector; but for no labour rights, wage, job or social security protection and
for every dismal wages. The casual and contract labourers are under the working and living
conditions that prevailed in the nineteenth century Europe.
Since the introduction of the informal sector concept, opinion has been divided as to its
socio economic impact. There are authors who positively point out the accelerated shift in
livelihood patterns away from agriculture and village to cities and towns in the third world since
the mid-twentieth century. But even if the masses of migrants hooding into urban areas were
fortunate enough to establish a foothold, the vast majority of them could gain no access to the
formal sector. It is still too small to cope with the continuous influx of newcomers.
The more critical analysis of researchers, who have observed that the formal sector
remained inaccessible of reasons other than the interior quality of new urbanities labour, and
their other defects, reject such as optimistic view. The failure of the new comers effort to find
stable, decently paid and dignified work is in this alternative perception due mainly to a
development strategy that, in the face of excess supply, seeks to keep the price of labour as low
as possible, allows no room for collective action to reduce these people’s vulnerability and refuse
to provide this footloose workforce with public representation. In short, the lack of registration.
Organization and protection does not have its origin. In the free play if social forces but
it’s the deliberate product of economic interest that benefit from the state of informality in which
a wide range of activities in all branches of the economy are kept, systematically and on a large
scale, through evasion of labour laws and taxation.
In died, the informal sector is not separated and close circuit of work and labour. There is
interaction between the formal and informal sectors, and dependence of the latter on the former
and even its subordination to it. Now with the neo-liberal economic policies there is the
widespread informalization of the formal sector through down sizing, casualization and
contractulalisation. In short the capitalist beaches become richer and riches by squeezing the life
blood of the working force.
1. In terms of occupation
Small and managerial farmers, landless agricultural labourers, share croppers fisher men,
those engaged in animal husbandry, beedi rolling, labelling and packing, building and
construction workers, leather workers, weavers, artisans, salt workers, worker in brick
kilns and stone quarries, workers and small mills, oil mills etc.. come under this category.
Attached agricultural labourers, bonded labourers, migrant workers, contract and casual
labourers come under this.
Mid wives, Domestic workers, Fishermen and women barbers, vegetable and fruit
vendors, news paper vendors etc. belong to this category.
Today tappers, scavengers, carries of head loads, drivers of animal driven vehicle loaders
and unloaders come under.
CHAPTER – IV
Table 4.1
Gender [Link] respondents Percentage
Male 35 70
Female 15 30
Total 50 100
Chart.4.1
percentage
80%
70%
60%
50%
40%
30%
20%
10%
0%
male female
percentage
INTERPRETATION:
The analysis shows that out of 50 respondents 35respondents are males and 15 workers are
females.
4.2 Table showing marital status of respondents
Table4.2
Marital status [Link] respondents Percentage
Single 7 14
Married 43 86
Others - -
Total 50 100
Chart 4.2
percentage
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
single married
percentage
INTERPRETATION:
The analysis shows that 86% of respondents are married and only 7% of respondents are single.
4.3 Table showing education level of respondents
Table.4.3
Education [Link] respondents Percentage
qualification
Primary 23 46
Secondary 18 36
Graduation 7 14
Above graduation 2 4
Total 50 100
Chart 4.3
percentage
50%
40%
30%
20%
10%
0%
primary secondary graduation Above
graduation
percentage
INTERPRETATION:
In this 46% of respondents are primary educators. And only 4% of respondents are above
graduation, 36% of respondents have secondary and 14%of respondents are graduates.
4.4 Table showing occupational status of respondents
Table 4.4
Occupation [Link] respondents Percentage
Agriculture 15 30
Manufacturing 10 20
Construction 8 16
Sales 10 20
Others 7 14
Total 50 100
Chart 4.4
percentage
30%
20%
10%
percentage
0%
percentage
INTERPRETATION:
In this 30% of respondents are belongs to Agricultural Sector,10% of respondents are belongs to
sales, Manufacturing and construction workers are 20% and 16 % respectively. Only 14 % of
respondents are doing other jobs.
Table 4.5
Nature of work [Link] respondents Percentage
Regular 11 22
Part time 4 8
Seasonal 15 30
Contractual 20 40
Total 50 100
percentage
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Regular Part time Seasonal Contractual
percentage
Chart 4.5
INTERPRETATION:
In this 40% of workers are contractual workers , 22 % of workers have regular work and 30% of
workers have seasonal work.
Table 4.6
Income [Link] respondents Percentage
Below 500 7 14
500-1000 35 70
1000-2000 5 5
Above 2000 3 6
Total 50 100
Chart 4.6
Below 500 500-1000 1000-2000 Above 2000
INTERPRETATION:
In this majority of workers (70%) are getting wage between [Link] only 6% of workers are
getting wages above 2000.
Table 4.7
Mode of payment [Link] respondents Percentage
Hourly - -
Daily 33 66
Weekly 4 8
Monthly 13 26
Total 50 100
Chart 4.7
percentage
70%
60%
50%
40%
30%
20%
10%
0%
Hourly Daily Weekly Monthly
percentage
INTERPRETATION:
This table shows that 66% of workers are daily wage earners,26%of workers are getting wage
monthly and 8% of workers are getting wages weekly. No one get wage hourly.
Table 4.8.1
Opinion [Link] respondents Percentage
Yes 13 26
No 37 74
Total 50 100
Chart 4.8.1
percentage
80%
70%
60%
50%
40%
30%
20%
10%
0%
yes No
INTERPRETATION:
74% of workers are not bargain over the wages but 26% of workers are bargaining for additional
wages.
Table 4.8.2
Opinions [Link] respondents Percentage
Wages are fixed 17 45.94
No knowledge 5 13.51
Fear of losting job 15 40.54
Total 37 100
Chart 4.8.2
percentage
INTERPRETATION:
In this 34% of workers are says that wages are fixed so they do not bargain over the wages.30%
of workers do not bargain because of fear of losting job.
Chart 4.9
percentage
70%
60%
50%
40%
30%
20%
10%
0%
Satisfied Not satisfied Partly satisfied
percentage
INTERPRETATION:
The above analysis shows that majority of respondents (70%) are not satisfied with their
prevailing wage rate.24% of respondents are partly satisfied and 6% of respondents are not
satisfied with their wage rate.
4.10TABLE SHOWING THE MOTIVES TO STAY IN PRESENT
JOB
Table 4.10
Attributes [Link] respondents Percentage
Anticipation for better job 10 20
Option of alternatives 9 18
For survival 23 46
Other factors 8 16
Total 50 100
Chart 4.10
percentage
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Anticipation for Option of For survival Other factors
be�er job alternatives
percentage
INTERPRETATION:
In this 46% of the respondents says that survival is their motive to stay in the job.26% of
respondents says that anticipation for better job is their motive and 18% of respondents says
that option of alternative is their motive to continue the job.
4.11Table showing the increments in wages
Table 4.11
Opinions [Link] respondents Percentage
Yes 20 40
No 30 60
Total 50 100
Chart 4.11
percentage
Yes No
INTERPRETATION:
The above analysis says that 60% of the respondents do not get any increment
based on their work. Only 40% of respondents get increments based on their work.
4.12 Table showing the details of savings of respondents
Table 4.12
Details of savings [Link] respondents Percentage
No savings 4 8
Below 1000 21 42
10000-2000 20 40
Above 2000 5 10
Total 50 100
Chart 4.12
percentage
60%
40%
20%
percentage
0%
No savings Below 1000 1000-2000 Above 2000
percentage
INTERPRETATION:
In this diagram shows that 42% of respondents have savings at below 1000 and 40% of
respondents have savings in between 1000 to 2000.8% of respondents have no savings, 10% of
respondents have savings at above 2000.
Table 4.13.1
Opinions [Link] respondents Percentage
Yes 39 78
No 11 22
Total 50 100
Chart 4.13.1
percentage
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes No
INTERPRETATION:
In this majority of respondents(78%) have borrowings and only 22% of respondents have no
borrowings.
Table 4.13.2
Sources of borrowings [Link] respondents Percentage
Banks 20 51.28
Local money lenders 9 23.07
Private financial 8 20.51
institutions
Other sources 2 5.12
Total 39 100
Chart 4.13.2
percentage
40
35
30
25
20
15
10
5
0
Banks Local money Private financial Other sources
lenders institutions
percentage
INTERPRETATION:
This diagram shows that 40% of workers depending bank for borrowings and 18% of workers
depends local money lenders.16 % of workers are depends private Financial Institutions for
borrowings.
Table 4.14
Opinions [Link] respondents Percentage
Yes 9 18
No 41 82
Total 50 100
Chart 4.14
percentage
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
yes No
INTERPRETATION:
In this out of 50 respondents 82% of respondents are not work overtime and 18% of respondents
work overtime and they get additional wages for overtime.
Table 4.15
Opinions [Link] respondents Percentage
Yes 31 62
No 19 38
Total 50 100
Chart 4.15
percentage
yes No
INTERPRETATION:
The above analysis shows that 62% of respondents get leisure times in between working hours
38% of respondents do not get any leisure times.
Table 4.16
Problems [Link] respondents Percentage
Low wages 20 40
Long hours of work 8 16
Poor working conditions 6 12
Exploitation 3 6
Seasonal work 7 14
Lack of facilities 6 12
Total 50 100
percentage
Lack of facilities
Seasonal work
Exploitation
Low wages
Chart 4.16
INTERPRETATION:
The above analysis shows that 40% of respondents face the problem of low
wages,16% of respondents are challenging the problem of long hours of work,12%
of respondents facing poor working condition 14% are facing seasonal work,6%are
face exploitation from superiors.
Table 4.17
Opinions [Link] respondents Percentage
Yes 26 52
No 24 48
Total 50 100
Chart 4.17
percentage
53%
52%
51%
50%
49%
48%
47%
46%
Yes No
percentage
INTERPRETATION:
In this 52%of respondents get security measures from their employer and 48% of respondents
did not get any security from employer.
Table 4.18
Opinions [Link] respondents Percentage
Aware 7 14
Not aware 26 52
Partly aware 17 34
Total 50 100
Chart 4.18
percentage
60%
50%
40%
30%
20%
10%
0%
Aware Not aware Partly aware
INTERPRETATION:
The above analysis shows that 52% of respondents are not aware about labour laws. 34% of
respondents are partly aware, only 14% of respondents are aware the prevailing labour laws.
Table 4.19
Opinions [Link] respondents Percentage
Yes 28 56
No 22 44
Total 50 100
Chart 4.19
percentage
60%
50%
40%
30%
20%
10%
0%
yes No
INTERPRETATION:
The above analysis shows that 56% of respondents have membership in employee union
,and 44% of respondents haven't membership in any employee union.
4.20 Table showing satisfaction level of respondents with their present working
environment
Table 4.20
Opinions [Link] respondents Percentage
Satisfied 3 6
Not satisfied 26 52
Partly satisfied 21 42
Total 50 100
Chart 4.20
percentage
INTERPRETATION:
In this majority of respondents are not satisfied with their working environment. Only 6% are
satisfied with their working environment.
INTERPRETATION:
The above analysis suggestions to improve the satisfaction level of workers, majority says that
regular and sufficient payment for work should be improved.
CHAPTER-V
FINDINGS, SUGGESTIONS CONCLUSION
FINDINGS
1. Majority of workers are male.
2. Most of the respondents are married.
3. 46 % of workers have only primary education and only 4% of workers have above graduation.
4. Most of the workers are belongs to Agricultural sector.
5.40% of respondents are contractual workers and 30% of respondents are seasonal workers.
6. Majority of worker’s daily wages is in between 500-1000.
7. Most of the workers get wages on daily basis.
8. Out of 50 workers 74% are not bargaining for wages because of fear of losing job, wages are
fixed etc.
9. Majority of workers(70%) are not satisfied with their prevailing wage rate.
10.46% of workers says that survival is their motive to stay on their present job.
[Link] of the workers do not get any increments based on their work.
12.42% of workers save below 1000 per month and 8% of workers haven’t savings.
13. Majority of workers have borrowings.
14. 40% of workers depends banks for borrowing.
15. 82% of workers are not work overtime and 18% are bargaining for additional wages.
16. Most of the workers get leisure time between working hours.
17. Majority of workers face the problem of low wages. Long hours of work, poor working
conditions, seasonal work, exploitations are some of other problems faced by workers.
18. 52 % of workers get security measures from their employer, but 48% are don't get any
security from employer.
19. Most of the workers are not aware about labour laws.
20. 56% of workers have membership in employee Union.
21. Most of the workers are not satisfied with their present working environment.
22. Majority of workers says that regular and sufficient payment of wages should be improved
the satisfaction level of workers.
SUGGESTIONS
It is better to fix sufficient amount as minimum wage rate to protect the un organized
workers.
JOURNELS
International Journal of Scientific and Research publications, volume, issue 6 June 2013
WEBSITES
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APPENDIX
QUESTIONNAIRE
(For unorganized workers)
[Link] :
[Link] :
[Link] :
[Link] : M F
[Link] qualification :
PART – B
[Link] of payment?
Hourly Daily Weekly Monthly
Yes No
Yes No
Yes No
Yes No
Yes No
Yes No
[Link] are the main problems do you face in your work place?
Yes No
Yes No