7th August, 2002
Ministry of Labour  


SHRI ASHOK PRADHAN FOR STATE INTERVENTION TO PROVIDE SOCIAL SECURITY TO WORKERS IN THE UNORGANIZED SECTOR


The workers in the unorganized sector, who comprise approximately 92% of the country’s 400 million work force, should be given pivotal attention through state intervention. This was stated by the Minister of State for Labour Shri Ashok Pradhan while inaugurating a workshop on ‘Social Security for Unorganized Sector : Emergent initiatives’ at Noida in Gautam Budh Nagar District in Uttar Pradesh today. He said that this is particularly relevant in the context of expanding unorganised sector in recent years. The Minister called for concerted efforts to provide minimum level of protection to workers in the unorganized sector. Shri Pradhan said that this is necessary for ensuring harmonious labour relations and increase the willingness to work. He said that during the last five decades we have faltered in extending the social security cover to the unorganized sector and the workshop should try to look into reasons for this. Shri Pradhan said that the existing social security schemes do not percolate down fully to the beneficiaries. He urged the participants to explore innovative methods for extension and financing of social security schemes.

Earlier welcoming the participants the Director of V.V. Giri National Labour Institute, Shri Uday Kumar Varma said that the only way to mitigate the insecurity of living generated by market economy is to evolve a rational and sustainable system of social insurance and social assistance. He said that there have been recently several suggestions on the funding of social security schemes. Shri Varma said that recently a Planning Commission paper proposed imposing a special cess of one to three percent on income of top 12% households or on specified central taxes to meet the financial cost of extending social security cover to workers in the unorganized sector. He said that the paper also suggested that the Government could consider setting aside 1% of GDP as the initial corpus for the proposed national workers welfare fund to operate the scheme. This alone would amount about Rs.11,000/- crore approximately.

The one- day workshop has been organized by the V.V. Giri National Labour Institute to discuss some of the recent initiatives on social security that have been taken by certain organizations to cover workers in the unorganized sector. The workshop assumes importance as more and more workers are being shifted to the unorganized sector due to increased casualisation of workers in the organised sector.