1. Protecting the Vulnerable
MANTHAN
Providing social welfare to informal sector workers
Organizing the unorganized
- A radical approach to development
TEAM DETAILS
ADITYA BANDI BHAWNA MEHTA SANKALP VERMA
NAVNEET JAIN MANPREET SINGH

2. 92 percent of the 317 million workforce is employed in
the Unorganized Sector
DEFINITION
The unorganized sector is defined by many
statutes and laws as an enterprise owned by
individuals or self employed workers or an
enterprise employing the workers the
number for which is less than ten.
FACTS & FORECASTS
• In 2012, India’s unorganized sector
created 62 percent of the Gross
Domestic Product, 50 percent of the
Gross National Savings and 40 percent of
the National Exports.
• The backbone of Indian economy, the
agricultural sector has 99.42% of people
employed in unorganised sector.
• The manufacturing and service sector
contributes 81% and 73% respectively to
the total workforce employed in informal
sector.
• It is expected that with current economic
scenario the share of informal sector will
be maintained at around 93.6 % by
2016-17
98% 95% 93% 92%
49%
28%
12%
Personal service
activities
Communications Sanitation Transportation
& railway
Freight & cargo Education &
training
Computer
technology
Share of unorganized sector –
Service Industry (2006)
98%
94% 92% 90%
19% 18%
13%
Wood and
wood products
Furniture Wearing
apparel
Tobacco
products
Basic metals Electronics &
Communication
Accounting and
computing
Share of unorganized sector -
Manufacturing Industry (2005)
Source: Sector Analysis Ejaz Ghani
Source: Sector Analysis Ejaz Ghani

3. 2.5 2.6
6.6
8.68 8.91
0
2
4
6
8
10
2006-07 2007-08 2008-09 2009-10 2010-11
Total Outlay (In $ billion)
Govt. has implemented Acts and Schemes in the past
to protect the unorganized sector
MNREGA, 2005
Unorganized Workers Social Security Act, 2005
•100 days guaranteed employment
• Statutory wage of Rs.120 per day
• Undertaking of issues like housing, education etc.
• Clear demarcation of responsibilities of state and
centre
Yearly outlay of MNREGA
Non-coverage of complete unorganized
sector
More directed towards welfare of the poor
rather than welfare of unorganized
No stress to transfer to the organized
No clear demarcation of the roles of the
State Govt. and the Central government in
implementing the schemes
SHORTCOMINGS/LIMITATIONS OF THE STEPS TAKEN
Source: www.nrega.nic.in
Considering the above limitations we propose a radical solution to the problem. There is a need to tap this
vast potential of Informal sector which can be achieved only through organizing the sector.

4. Non-homogeneity of the presence of Unorganized in
different sectors leads to different social security needs
• Workers employed in a wide range of economic activities ranging from street vendors, casual workers in a
tea shop, beedi workers to contract laborers in a factory
• Different economic activities at different levels of technology and productivity and thus require different
levels of wages
• Affordability and the paying capacity of the employers (depending upon different sectors) is also a
determining factor of social security needs
CONSTRUCTION
WORKER UNION
LIFE SECURITY
Employment securityHousing security
FOOD SECURITY
HOME BASED
WORKER
OLD AGE SECURITY
Health security Accident security

5. GENERATE DATABASE
OF UNORGANIZED
SECTOR BY LINKING IT
TO UID
The broad level policy framework to meet the needs
for all the different sectors within the ambit of
unorganised sector.
 Digitalised data which is easy to analyse and manage
 Resolve the problem of shadow and bogus ration cards faced presently by
the PDS to avoid duplication
BUILD MULTI-
ORGANIZATIONAL
FRAMEWORK
 Different organizations such as trade unions, co-
operatives, associations, NGOs and labour boards will be used to mobilize
and help unorganized sector
LINK LOCAL LEVEL
ORGANIZATIONS TO
WELFARE POLICIES
 Transfer of benefits and funds from state to the organizations
 Maintain and report the accounts of the welfare services to the
government
 Periodic evaluation of the performance gap
 Based on experience and feedback introduce the requisite modifications
PERIODIC EVALUATION
AND SUITABLE
MODIFICATIONS

6. Create an independent and participative functional body, free
from bureaucratic limitations to assist the government in its vision
of organizing the unorganized : “SANGATHAN”
FRAMEWORK RESPONSIBILITIES IMPLEMENTATION
• "Organizing the unorganized" being
proposed as a state prerogative, appointed
by state
• Volunteer size will depend upon the
economic scenario of the District/
Village/State varying from 20 to 50
• Sangathan will be a constitution of mainly
intellectual youth of India like professionals
and MBA graduates
• Representation from unions, co-
operatives, employers, NGO’s will be there
Interns and
volunteers
Professional Bodies
eg. ICAI, ICWA etc..
Managerial
employees
Trade
Unions, Association
s, Co-
operatives, Welfar
e funds, NGOs MBA graduates
Public Service
commission
officers
Researchers &
Field Experts

7. FRAMEWORK RESPONSIBILITIES IMPLEMENTATION
• Identifying the priority informal sector in the area of operation
• Creating awareness about various policy reforms of the government, existing and as per the
solution proposed
• Encouraging informal workers to join existing Trade Unions or Co -operative societies or to
form one in case not present in that district
• Facilitate formation of such local bodies and ensuring their registration with the government
which make them eligible for all the benefits of the governmental policies and schemes
• Settling disputes between employers or employees or Local bodies
• Ensuring the workers get full benefit of the schemes and policies designed for them
• Measuring and evaluating the performance of local bodies and conducting performance audits
Create an independent and participative functional body, free
from bureaucratic limitations to assist the government in its vision
of organizing the unorganized : “SANGATHAN”

8. FRAMEWORK RESPONSIBILITIES IMPLEMENTATION
Monitoring, performance evaluation and regular assistance
Proper representation in the policy framework and regular assistance
Create or facilitate creation of priority Local Bodies
Educate , encourage about the benefits of formalization
Sangathan will identify the focus informal sector in the district
Create an independent and participative functional body, free
from bureaucratic limitations to assist the government in its vision
of organizing the unorganized : “SANGATHAN”

9. Expenditure Revenue
Sangathan contributes ₹150 Cr to the corpus of
Government with just ₹1 per worker
The revenue generation
(assumptions)
• Insignificant charges taken
from workers
• Workforce targeted to be
5% of the total informal
• Minimum 100 days
employment to be given.
₹1 to be charged for each
day of employment

10. Challenges of the solution proposed
• Funding
Generating the requisite monetary resources for providing the securities to the workers
• Parallel policies
Certain existing policies will deteriorate the penetration of the suggested policy
Establishment of formal structure and guidelines for local organizations
Setting up sector specific guidelines for establishment, election and allocation purposes of local
level organizations
• Resistance from employers
With the increase in worker unions employers might face operational hardships which may
become a reason for their resistance
• Recognition of “Sangathan”
Various actors like workers, employers, NGOs might not recognize the autonomy of Sangathan as
an independent body. It will face a huge task of marketing itself and garnering confidence of the
above mentioned

11. References
• Planning commission report on unorganized sector 2003
• Article: The Exceptional Persistence of India’s Unorganized Sector by Ejaz Ghani
• Unorganized Workers Social Security Act, 2008
• Perspectives of Unorganized Labor by A S Oberai
• MPRA_Paper_9247
• www.jstor.org
• Paper on “Organisations working for the unorganised labour” by S K G Sundaram
• www.sewa.org