AICyberLex Nexus

Keywords: Unorganised workers, Social security Schemes, Awareness, Access, Board.

Introduction

Social welfare schemes refer to the measures implemented by the State to safeguard individuals from the financial and social hardships that would arise from a significant decrease or loss of income due to various circumstances such as illness, pregnancy, work-related injuries, unemployment, disability, old age, and death. It also encompasses the provision of healthcare services and financial assistance to families and children. India has an extensive track record of implementing social security policies widely covering the unemployed, elderly persons, children, weaker sections and vulnerable populations. However, the social security system for the unorganised sector or informal sector waned while the same gathered momentum for the organised sector. In the current era of globalisation, it is necessary to provide more focus and protection to the informal sector in order to shield them from the negative consequences of globalisation. The Directive Principles of State Policy in the Constitution of India set forth the standards of optimal governance for the well-being of the people. These standards must be observed during the legislative process by the States. Article 41 stipulates that the State must, to the extent of its economic capability and progress, establish effective measures to ensure the right to employment, education, public aid in situations of unemployment, old age, illness, disability, and other instances of unwarranted deprivation. The fundamental goal is to enhance the social welfare and overall well-being of the population. In the spirit of the concept of social welfare as provided in the Directive Principles of State Policy every State is enacting and implementing schemes and programmes to ensure the welfare of the weaker sections of the society.

The term informal sector was first coined by the Anthropologist, Weber Hart in the year 1973 identifying the economic activities in an urban slum in Accra, the capital city of Ghana. He wrote that “Accra’s poor were not unemployed and they were working but more in a casual way, for erratic and lesser profits.” The nature of informal economy included all types of market activity theoretically in the national accounts but are under measured due to the informality of the activity involved. In 1993 International Labour Organisation has defined “informal enterprises” as ‘private unincorporated enterprises’ controlled and run by ‘individuals or households’ which are not established as ‘separate legal entities’ independently of their owners. The informal economy is essential but contentious. Although unemployment issues in India is considerably addressed and to some extent is lessening in the recent scenario, the majority of jobs are characterised by low wages and insufficient job stability. The scope and growth of entrepreneurship is heightened at the cost of governmental regulations, particularly through appropriate legislations in the tax and labour regime. Although it alleviates poverty, it concurrently results in underemployment and job instability.

The Indian economy is inclusive of distinct magnificent presence of informal or unorganised labour employment and formal sector. Approximately 7 percent of the country's total workforce consists of workers in the organised sector. The remaining 93 percent are made up of subsistence farmers, agricultural workers, fisherfolk, dairy workers, and those employed in traditional manufacturing industry such as handlooms and others, who are classified under the unorganised sector. Unorganised labour refers to workers who are unable to associate themselves in organised groups to pursue their common interests owing to obstacles such as casual nature of the employment, lack of knowledge and education, and the tiny and dispersed structure of their workplaces. The contribution of unorganised sector in Net Domestic Product was 56.7 % in comparison to the organised sector which was of 43.3% in the year 2002-2003. Even in the recent years the contribution of informal sector excluding construction contributed 50% of the GVA (Gross Value added to the economy).

The Ministry of Labour has classified the unorganised work force into four divisions based on their occupation, nature of employment, specially distressed categories and service categories. Agricultural workers, building and construction workers, and home-based workers, this section of the workforce have a notably high proportion of unorganised workers.

Agricultural labourers are the most significant group of work force in the unorganised sector. Based on the NSSO estimates for the year 2004-05, 52 percent of the workforce is employed in the agricultural sector (Economic Survey: 2007-08). Due to their small and uneconomical land holdings and poor crop productivity, many small and marginal farmers also engage in agricultural labour by working on the land of others. Additionally, a substantial proportion of individuals are involved in the cultivation of cattle, forestry, fishing, orchard management, and related endeavours. Construction workers are the second biggest group of workers in the informal economy. Based on the estimates from the NSSO, around 5.57% of workers were involved in building and other construction activities in the year 2004-05, as stated in the Economic Survey of 2007-08. The construction sector encompasses a wide range of activities related to civil, mechanical, electrical, and public health operations. Many multi-national, national and local firms employ thousands of workers in such industry. Furthermore, a significant proportion of persons are self-employed and such workforce are engaged in physical building tasks and related activities such as applying paint, doing plumbing work, and installing mechanical or electrical fittings.

Home-based workers are individuals who produces products or services for an employer or contractor. They have the freedom to choose from where to work, frequently opting to work from their own homes. In India, there is a lack of reliable statistics on those who work from home. The Census of India and other official data sources do not acknowledge these workers as a distinct group, but instead classify them under the broader category of those employed in household industries. Home-based workers mostly participate in activities such as beedi rolling, garment production, agarbati manufacturing, gem cutting, and the preparation of culinary products such as papad and pickle. They also engage in handloom weaving, lacework, and chikan embroidery. The beedi rolling business, mostly operated by families, employs over 4.5 million individuals, with 90 percent of them working from home.

The unorganised labour force is more susceptible to exploitation by the rest of society. The unorganised workers have substandard working conditions, a very low pay when compared with the work force engaged in the formal sector, though the contribution is equivalent when it comes to work in terms of labour productivity. Major contribution to the economy comes from the unorganised sector but still the work status of the unorganised sector is characterised by substandard quality of work and subpar terms of employment, including both wages and workplace conditions. The unorganised sector is characterised by primitive production technology and feudal production relations, which hinder the ability of workers to adopt and integrate advanced technologies and improved production relations. The prevalence of widespread ignorance and illiteracy, as well as restricted exposure to external affairs, contribute significantly to the inadequate assimilation of information. The trade unions do not adequately prioritise the needs of the unorganised workers. Typically, unorganised workers are characterised by their significant numbers, experience of recurring periods of extreme seasonality in employment, working in dispersed and fragmented workplaces, facing terrible working conditions, and receiving little attention or no attention from trade unions.

It is observed from the 68th round National Sample Survey that there is significant change in the informal sector after its advent in the economy. There is considerable increase in the workers with no social security benefits. Data pertaining to the employees in the agricultural sector excluding growing crops and non-agricultural sector shows that about 79% has been engaged without any employment contract. Though certain drawbacks are traceable there is considerable increase in such flexible mode of employment. This sector which constitutes the majority of the work population has also become vulnerable to job security and social security concerns.

Due to these vulnerable conditions of the work force in the informal sector the Government of India enacted the Unorganised Workers Social Security Act of 2008. This legislation is aimed at providing public support and social welfare schemes to the unorganised sector workers. The Unorganised Workers Social Security Act, 2008 defines ‘unorganised worker’ as “ a home based worker, self-employed worker or a wage worker in the unorganized sector and includes a worker in the organized sector who is not covered by any of the Acts mentioned in Schedule-II of Act i.e. the Employee's Compensation Act, 1923 (3 of 1923), the Industrial Disputes Act, 1947 (14 of 1947), the Employees' State Insurance Act, 1948 (34 of 1948), the Employees Provident Funds and Miscellaneous Provision Act, 1952 (19 of 1952), the Maternity Benefit Act, 1961 (53 of 1961) and the Payment of Gratuity Act, 1972 (39 of 1972).”

At the central level, the schemes for the unorganised workers apply through online portal known as “eshram”, which helps in building a comprehensive National Database for Unorganised Workers (NDUW) in the country. The aim of the portal is a gateway that would significantly enhance the implementation of social welfare schemes for over 380 million unorganised workers, particularly in terms of last mile delivery. Registration for workers is completely free. The Act provided for constitution of National Security Board at the Central level which recommended social security schemes. There are various government schemes for unorganised workers such as Pradhan Mantri Shram Yogi Maan – dhaan (PM-SYM) for old age protection and social security, Aam Admi Beema Yojana for providing insurance against death and disability to landless rural households. Indira Gandhi National Old Age Pension Scheme (IGNOAPS) for old age pension.

In Tamil Nadu, the Tamil Nadu Manual Workers (Regulation of Employment and Conditions of Work) Act, 1982 protects unorganised workers by providing various schemes which is funded by the Tamil Nadu Government. Tamil Nadu Construction Workers Welfare Board (TNCWWB) and Tamil Nadu Manual Workers Welfare Board (TNMWWB) as well as other 18 Boards which comes under the Act for the benefits of unorganised workers. There is an addition of two welfare boards for salt and gig workers which is offering sector-based benefits. As it is estimated that majority of these workers belong to the Schedule’s Castes, Scheduled Tribes and other Marginalised communities. It is estimated that there are about 2 crore unorganised workers in Tamil Nadu, but only about 40 lakhs have registered under the Labour Welfare Boards as per the Tamil Nadu Labour Welfare and Skill Development. The Board provides for various benefits such as Education assistance, Marriage assistance, Accident or Death assistance, Disability, Maternity, Miscarriage assistance, Old age Pension assistance and other assistances. In order to avail the benefits, the applicant has to apply through the online portal and submit the documents.

Statement of the problem

This article articulates the lack of knowledge and awareness of social assistance programs among informal workers. The unorganised sector is considered to be the largest workforce in the country. Only a miniscule number of workers are receiving protection and access to social security benefits. Despite the substantial contribution of the unorganised sector to the national wealth, workers in this sector lack adequate and dependable social protection. While the unorganised workers do have some access to risk-management programs such as micro-finance, their access to statutory benefits such as healthcare, old age pension, educational assistance, maternity assistance, accidental benefits, and purchase of spectacles has been somewhat inadequate. These workers use informal methods such as borrowing and selling assets, which are very costly. Their ongoing reliance on these methods intensifies their vulnerability. Authorities at both the national and state levels have had difficulties in developing social security programs for unorganised workers due to the following factors: A significant segment of these workers are impoverished, uneducated, susceptible, and socially isolated. The overwhelming majority of them lack a stable employer and employee connection. Many activities in the unorganised sector are home-based and are characterised by their transient, seasonal, and shifting nature. Although the government made efforts to provide social security via pensions and other measures, there has been no improvement in the development of these unorganised workers. This paper aims to modestly analyse the knowledge level of unorganised sector workers about the current labour welfares and social security systems.

Objective of the Study

The primary goals of the research, is to evaluate the extent of knowledge, pinpointing obstacles to accessibility, and comprehending the involvement of government and NGOs in enabling access.

Review of Literature

Kannan, K.P. (2002). In this Article, the author discussed about the social welfare schemes which are specifically targeted at those employed in the informal sector within the State of Kerala, India. The present study examined the evolution of the welfare funds system specifically designed for those employed in the informal sector within the State of Kerala, India. The welfare fund model of social security, which has been in existence for over 30 years, serves as a means for the informal sector to thrive within society. Trade Unions in Kerala are regarded as influential labour organisations that represent a significant portion of the traditional work force and serve as a tool for social transformation aimed at achieving social dignity for the impoverished masses. The socialist and communist ideologies have established a paradigm that results in a significant number of workers in the informal/unorganised sector forming unions. The research findings indicate that the implementation of the Welfare Fund Model which is formed by collective care arrangements for informal sector workers in Kerala resulted in notable enhancements in both their employment status and income. The establishment of cooperatives, implementation of closed shop strategies by unions to safeguard the employment of their members, political mobilisation, and employer contributions have enabled the Model to provide a basic degree of social security to the unprotected informal sector workers. Hence, it is desirable to investigate the feasibility of replicating this Model with suitable modifications to other states in India and countries without social security provisions for informal sector workers.

Mishra, P. (2023), This article discusses social security awareness and the problems faced by the women workers in the informal sector. The research focused on labour market shifts due to labour market inequities, job displacement induced by technology improvements, and the public and private sectors' incapacity to provide more jobs to satisfy the rising global population. The author noted that women in the unorganised sector face job insecurity, insufficient medical and accident support, wage discrimination, unhealthy workplace relationships, inadequate basic sanitary facilities, and sexual harassment. Women's human rights are violated by job discrimination, exploitation, aggressiveness, and humiliation. The Decent Work Framework given to the International Conference of Labour Statisticians in December 2008 was used for the study. The author chose 6 indicators from 21: awareness of social security measures (indicator 5), working hours per day (indicator 6), weekly off (indicator 20), maternity benefits (indicator 7), workplace sanitation (indicator 15), minimum wage awareness (indicator 4), and equal pay for equal work. The indicators cover the four key topics of Goal 8 (Decent Work and Economic Growth) of the 2030 Sustainable Development Goals. This research on women informal labourers in Jharkhand found that they were uninformed of numerous indicators and denied minimal working standards. The author recommended grassroots cells to monitor women workers' exploitation as well as for the measures taken for creating their awareness. The author said that Goal 8 practices would build a decent workplace for women workers and protect their rights for development.

Research Methodology

In this study primary data is collected by preparing questionnaire and circulating it among the unorganised workers in Tamil Nadu. The Research design is a mixed method approach by which qualitative and quantitative analysis is done.

Research Sample

The Researcher has taken sample from different types of unorganised workers like construction workers, home based workers, domestic workers, small shops, beauty parlours, street vendors taken from five districts in Tamil Nadu mainly Trichy, Tanjore, Madurai, Coimbatore and Chennai. The Researcher followed stratified random sampling method for choosing the data.

Research Analysis

The Questionnaire can be classified into two Section A and Section B, Section A consists of demographic details and Section B deals with awareness, accessibility and benefits received by unorganised workers. The details of Section B are collected by to identify the awareness level and accessibility of social security schemes in Tamil Nadu. Descriptive statistics tools were used for the analysis of the results of research which are given in the form of frequency count and simple percentage. The Sampling method is simple random sampling.

Demographic Composition

In this Demographic detail the sample size of Male population and Female population is taken equally for analysis. The maximum age group in the sample size is between 30-45, nearly 40% of the sample size belongs to this category. 32% of the population is aged between 45-60 and 26% of the population id between 18-30, only 2% is above 60 years. With regard to the educational qualification about 50% of the sample size is illiterate, 24% is 10th pass, 16% is 12th pass and only 10% of the sample is above 12th pass. The Monthly Income of the workers are identified as about 33 % is earning between 10000-15000, 32 % is earning between 5001-10000, only 30% is earning above 15000. Finally, with regard to the years of experience nearly 33% has 3-6 years, 31% is having 6-10 years, 27% has less than 3 years and 8% has more than 10 years.

Section B

Awareness about the major schemes which were tested for this research are:

Research Analysis

It can be seen from the above data that Awareness regarding MGNREGA is slightly high among the males which is 93% compared to females which is 6%. The accessibility about the scheme is more for the Males than the females. The second scheme which has been analysed is the Amma Unavagam scheme where both males and females exhibit 100% awareness. However, males have slightly higher accessibility (93%) compared to females (86%). The Scheme which is considered is the Amma Maternity Nutrition Kit 86% of males are aware, but only 24% of females. Males also have better access (66% compared to 60% for females). The knowledge about the Tamil Nadu Unorganised Worker Welfare Board/ TN Amaipusara Thozilalargal Nalvariyam) and the benefits provided through it, Males have higher awareness (40%) compared to females (23%). Accessibility is also lower for females (30% vs. 20% for males). In the same manner with regard to Tamil Nadu Construction Workers Welfare Board the awareness is very less of 13 % and 10 % for male and female respectively. The awareness and accessibility of Kalaignar Magalir Urimai Scheme is 96% and 100%

Males generally have higher awareness and accessibility in schemes, particularly those related to construction and unorganized workers. Females show higher awareness for social welfare schemes like the Kalaignar Magalir Urimai Scheme and MGNREGA, indicating the impact of gender roles and priorities in accessing government schemes.

To evaluate the relationship between awareness and demographic features, the correlation has to be drawn between each detail. With the details available the analysis has been done.

The data doesn't provide detailed age breakdowns for each scheme, but general trends can be inferred: The age group (18-30) is likely more engaged in schemes that involve physical labour or new government initiatives. Since 72% of the sample is between 30-60 years old, it is likely this group has more familiarity with welfare schemes, particularly those providing income security or health benefits. For people above 60 years of age the awareness and access to certain schemes may be lower for this age group, as they are less likely to be involved in schemes like MGNREGA or construction-related welfare. Awareness is likely higher in the middle age groups, as they are actively participating in the workforce and are the primary beneficiaries of schemes targeting workers.

The group where 50% are illiterate are likely having lower awareness of certain schemes, as information dissemination can be challenging. They may rely more on informal sources for knowledge. The second category of 10th Pass (24%), 12th Pass (16%) have a moderate level of awareness, with more access to information from official channels like community centers or local government.The above 12th (10%) as the higher educational attainment often correlates with higher awareness, as educated individuals are more likely to engage with government policies and seek out benefits. Awareness of government schemes is often correlated with education level. The higher the education, the more likely individuals are to be aware and make use of the schemes.

Low-income (below Rs. 5000) is likely to be less aware of schemes, especially if they are informal workers with limited access to resources. The Middle-income (Rs. 5001-15000) group, which makes up the majority (65%), is the primary target of many unorganized sector schemes like Amma Unavagam and MGNREGA. Awareness may be higher due to the direct impact of these schemes on their livelihood. The higher income (Above Rs. 15000): May have less reliance on welfare schemes, and consequently, lower awareness or engagement with schemes like the Tamil Nadu Unorganised Worker Welfare Board. Income levels are closely tied to both awareness and the need for schemes. Those in the lower- to middle-income brackets are more likely to be aware of and benefit from schemes aimed at providing financial and social security.

The workers with less than 3 years (27%) experience are less aware of specific long-term schemes, as they may not yet be fully engaged in the workforce or familiar with available resources. With regard to 3-10 years of experience (64%) a large portion of the workforce and is likely the most aware of schemes targeting the unorganized sector, especially those providing immediate benefits (e.g., food security, health). More than 10 years (8%) workers with with long experience may be more aware of traditional or long-established schemes but less engaged with newer initiatives. Workers with moderate experience are likely more engaged with and aware of welfare schemes. Less experienced workers may not have the same level of exposure or need for these schemes.

As concluding remarks the males show higher awareness of worker-specific schemes; females are more aware of social welfare schemes. Middle-aged individuals (30-60) likely show higher awareness due to their active involvement in the workforce. Higher education levels correlate with greater awareness. Awareness is highest among the middle-income group, who are the main beneficiaries of many schemes. Individuals with 3-10 years of experience are most aware of available schemes. Thus, factors like gender, education, and income appear to have a significant relationship with awareness, shaping how unorganized workers access these major government schemes.

During the study it has been found by the Researchers that except Tamil Nadu Unorganised Worker Welfare Board/ TN Amaipusara Thozilalargal Nalvariyam) and TN construction workers welfare Board the unorganised workers are completely aware of the other social welfare schemes (refer to the tabulation) provided by the Government. The main reason for such awareness is the use of certain welfare measures as political agenda or propaganda by the politicians. The Welfare Board as it is mandatory that the Engineers or the Supervisors should register their name with the Board. majority of the Construction workers are aware of the Tamil Nadu Construction Workers

Other category of unorganised workers is unaware of the Tamil Nadu Unorganised Worker Welfare Board/ TN Amaipusara Thozilalargal Nalvariyam) due to the inadequacy of measures taken by the Government in creating awareness about the same. The researcher also found that many NGOs or unregistered trade unions are helping the unorganised workers to register the Board. These initiatives are encouraged by the Government due to the non-availability of resources, but this is leading to another major scam. These trade union or NGOs collect a nominal fee from these workers for online registration which can be done for free by the Government. Not only for registration that they are collecting fees but also for accessing the benefits of these schemes. In fact, the awareness of accessing the schemes for free from Government has been conceded and the workers did not acquire the benefits of the schemes due to the fees attached with it.

Suggestions and Recommendations

The implementation of gender-specific marketing, with a special emphasis on women-centric schemes such as the Amma Maternity Nutrition Kit and Tamil Nadu Unorganised Worker Welfare Board, is necessary due to the lesser knowledge among women about these programs.

Harnessing community networks such as self-help groups (SHGs) and influential local women leaders may effectively enhance awareness.

Prospective workers aged 18-30 may possess little knowledge about initiatives. Educational institutions, vocational training centres, and internet platforms may be used to provide information about employment, education, and health-related programmes to this demographic.

Mobile and web-based applications have to be developed as streamlined digital platforms for the purpose of distributing information and facilitating registration for assistance programmes. The increasing prevalence of smartphones in rural regions has created an opportunity for mobile apps in local languages to facilitate engagement between unorganised workers and social programmes.

Initiatives promoting digital literacy for the 50% of the population that lacks reading skills, implementing digital literacy initiatives might provide more convenient access to welfare information and services, particularly via SMS-based services or interactive voice response systems.

The creation of comprehensive information centres at the village level, overseen by skilled staff, may function as entry points for unorganised workers to acquire information and enrol in programs.

Active participation of local government bodies, like as Panchayats and municipal corporations, is crucial in coordinating welfare camps to ensure that workers are well-informed about and able to avail themselves of these programs. Additionally, these municipal authorities may manage databases of unorganised labourers to enhance their outreach efforts.

Numerous unorganised workers have challenges in fulfilling paperwork and other forms of documentation for initiatives. The implementation of streamlined registration procedures that minimise documentation needs and paperwork would enhance participation rates.

Establishing a consolidated system allowing unorganised workers to register for several schemes at a single location would reduce duplication and enhance accessibility. This may be substantiated via a definitive identification system linked to the Aadhaar cards of workers.

Given that barely 30% of the population earns more than Rs. 15,000 per month, financial literacy programs may assist workers in effectively using social programs pertaining to savings, pensions, and insurance.

Connecting informal workers, especially women, with micro-finance institutions may enhance their economic security and enable them to avail themselves of social welfare services.

In order to maintain ongoing enhancement, it is advisable to carry out periodic feedback surveys to assess the level of satisfaction with projects and pinpoint areas that need improvement in terms of accessibility.

Real-time data collection is essential for government agencies to monitor the extent and efficacy of welfare programs. This enables the identification of geographical regions or demographic groups that are not being covered.

Public-corporate Partnerships (PPP) include the collaboration of non-governmental organisations (NGOs) and the corporate sector with the government. This collaboration aims to enhance the scope of awareness campaigns, secure technical assistance for digital platforms, and facilitate the efficient delivery of benefits.

Capacity building via non-governmental organisations (NGOs) involves the use of local entities as mediators to provide workers with information and assist them in navigating the application procedures.

Conclusion

The research demonstrates that while a substantial percentage of unorganised workers in Tamil Nadu possess knowledge of different social assistance programmes, there are notable deficiencies in both awareness and availability, especially among women, workers with lower levels of education, and those with lower incomes. Knowledge and understanding of well-known schemes like MGNREGA and Amma Unavagam are often greater, whereas lesser-known programmes like the Tamil Nadu Unorganised Worker Welfare Board and its related benefits have lower levels of engagement.The full utilisation of these programs is impeded by accessibility concerns, namely pertaining to registration processes, paperwork, and digital literacy. The existence of gender disparities in awareness and access underscores the need for more comprehensive and focused strategies.

Implementing a comprehensive approach is necessary to enhance both awareness and accessibility. This includes improving outreach at the local level, using technology to streamline registration procedures, and guaranteeing that the most susceptible segments of the population, such as women, low-income workers, and those with less education, are effectively enabled to get their rightful benefits. Effective cooperation among the government, non-governmental organisations (NGOs), and the business sector will be crucial in guaranteeing that unorganised workers get maximum advantages from the social welfare programmes at their disposal.

By effectively tackling these obstacles and adopting the suggested measures, Tamil Nadu has the potential to greatly enhance the social security of its unorganised labour force, therefore mitigating economic susceptibilities and elevating the general standard of living for this substantial subsection of the population.