November 30, 2001

   The Study Group constituted by the National Labour Commission on "Umbrella Legislation for the Workers in the Unorganised Sector" has recommended an average minimum wage equivalent to the initial salary drawn by a Group D employee of the central government. In its Report submitted to the Chairman of the National Labour Commission Shri Ravindra Varma here today, the Study Group has recommended that the minimum wage shall constitute a basic rate of wage, cost of living allowance and cash value of concessions. It has called for bringing down gradually the widening gulf between wages of various occupations.

    Other important recommendation of the Study Group is setting up of Unorganised Sector Workers’ Board with substantial powers by an Act of Parliament. It would be a comprehensive three-tier structure consisting of Union, State and District level Boards, each having a statutory status with five-year tenure. The major function of the Boards would be to create democratic labour rights situation, conservation of natural and common property resources, ensuring minimum wages/earnings and providing social security and welfare measures.

    Talking to reporters, the Chairperson of the Study Group Shri D. Bandopadhyay said it has been recommended that each unorganised worker should be given a digital Identity Card. He said the Card would be issued at Panchayat level but would be valid all over the country. Shri Bandopadhyay said the Identity Card would give a juridical personality to the unorganised worker to claim benefits under various social security schemes. The Study Group has said that the social security schemes should among other things include healthcare, maternity and early child care, provident fund benefits, family benefits, amenity benefits including housing, drinking water, sanitation etc., compensation or employment injury benefit, retirement and post-retirement benefits like gratuity and family pension and some cover in case of loss of earning.

    The NLC Chairman Shri Ravindra Varma said that the Commission has received several identical recommendations from the Study Group on Social Security. He said the Commission would try to integrate the recommendations of both the Groups in its report.

    It is estimated that there are about 400 million workers in the country of whom 92% are in the unorganised sector. The government has asked the National Labour Commission to have a review of the labour laws and also suggest umbrella legislation for the workers in the unorganised sector. The Commission is likely to submit its Report by the middle of February, 2002.