29295871 Five Year Plan Wage Policy (1) (1)

8/11/2019 29295871 Five Year Plan Wage Policy (1) (1)

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Evolution of LabourPolicy during 5 YearPlan.

Submitted By:

Pooja Arora(139)

Monika Dev(003)

Sakshi Saini(035)

Manisha Gautam(089)Shalini Singh(093)

Khushvijay Singh(004)

Priya Talwar(122)


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First Five Year Plan

Recognize the importance of labour.

The conditions of work should be such as to

safeguard the worker's health and protect himagainst occupational hazards

Greater attention has to be paid to the spread of

literacy and the healthy development of trade

unions

Workers' enthusiasm for the success of public

undertakings should be enhanced


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Minimum Wages Act

State Governments are required to fix minimum

rates of wages for agricultural labour by the endof 1953*

The implementation of the minimum wage

legislation should be reviewed from time to time

* 3


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In the Plan, right to strike and lock out was recognized. Just

settlement of claims was also given emphasis.

The Commission also accepted the importance of conciliation andarbitration in dispute resolution and duty of state to provide

machinery for settlement of disputes.

The plan envisaged for establishing a tripartite body fordetermining norms and standards, standardization of wages with

principles of social policy, profit sharing, permanent wage boards

etc.

Above all, a full and effective implementation of minimum wage

legislations was the main recommendations in First Five Year Plan.

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Second Five Year Plan A wage policy (by ILO) aiming at increasing real

wages was difficult to quantify

To bring wages into conformity with the expectations

of the working class

The settlement of wage disputes - Tripartite Wage

Board for cotton, jute textiles, cement and sugar

A welfare fund for Coal, Mica and Manganeseindustry should be instituted

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Security Measures

The Employees' Provident Funds Scheme should

be extended to cover industries and commercialestablishments having 10,000 workers or more in

the country as a whole*

A proposal regarding the provision of medical

benefits to worker's families (under theEmployees' State Insurance Scheme) is under

consideration

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Third Five Year Plan

Wage Board was extended to Iron and Steel

industries Apart from the minimum wage, care should be

taken in fixing fair wages for different classes of

workers, and adequate incentives are provided for

the acquisition and development of skills and forimprovements in quality*

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Security Measures

Implemented Schemes* like -

Employee State Insurance Scheme - the scheme will beextended to all centers where there is concentration of

five hundred or more industrial workers

Accepted provision of medical benefits to worker's

families

The Employees' Provident Fund Scheme, which now

covers 58 industries

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Sixth Five Year Plan

WAGES IN AGRICULTURE

The provisions of the Minimum Wages Act, 1948 which provides for the fixation andperiodical revision of minimum rates of wages in agriculture and other employments in

the unorganised sectors The protection mainly benefits the landless agricultural labourers and workers in other

'sweated' employments. Except in the employments under ths Central Governmentwhich do not account for much under these categories, the implementation of thisCentral legislation is the responsibility of the State Governments.

Slow-coverage of new employments, delay in periodical revisions of the minimumrates fixed under the Act and ineffective enforcement of the existing provisions havebeen the main issues relating to this measure.

The need for strengthening the enforcement machinery, simplification of the procedurerelating to coverage and revisions, the linkage of the rates with theConsumerPriceIndex Numbers, involvement of the rural workers' organisations in theimplementation of the provisions are among the steps advocated to improve the results.

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Contd..

The necessary amendments in the statutory provisions arelikely to be initiated soon. Sufficient strengthening of the

enforcement machinery would provide an effectivearrangement for better implementation of the. MinimumWages Act.

In this context it may be pointed out that this measurecoupled with programmes like National RuralEmployment Programme and Integrated RuralDevelopment etc. would represent a coordinated andmutually supporting effort for raising large number ofrural poor above the poverty line. Proposals for Centrallegislation for agricultural workers

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Seventh Five Year Plan (1/2)

Higher labour productivity ensures higherwages

The creation of employment opportunities in thelarge, medium and small-scale industry, both inthe public and private sectors of the economy to

increase the wage output

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Seventh Five Year Plan (2/2)

TRYSEM was introduced to provide technical

skills and to upgrade the traditional skills of ruralyouth belonging to families below the poverty

line

Wage employment is also introduced in it

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Eighth Five Year Plan (1/3)

A statutory provision of minimum wages for

employments has been included in the scheduleto the Minimum Wages Act, 1948

For implementation of minimum wages workers'

organisations, non-governmental voluntary

organisations and organised trade unions alsoensures minimum wages, instead of solely

relying on the official enforcement machinery

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Khadi and village industries were created to provide

additional employment opportunities in the non-farm

sector and to ensure increased wages/earnings to rural

workers

Handloom industry seek to encourage employment

generation, ensure reasonable wages for weavers,

supply of hank yarn at reasonable prices, establish silk

yarn bank, set up marketing infrastructure, help export

development, etc

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New marketing approaches for artisans was

introduced so that their wage increases

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Ninth Five Year plan

The improvement of labour welfare with increasing

productivity and provision of a reasonable level of social

security The Minimum Wages Act, 1948 is primarily applicable to

unorganized sector and empowers both central and State

Governments to fix the minimum rates of wages

Under Minimum Wages Act, 1948 no wage is fixed belowRs. 35 per day

Minimum wages can offer greater potential for income

transfers then special employment generation schemes

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Tenth Five Year Plan

It covers extensive policies for women workers

Wage bill is expected to grow

The increase in productivity of labour should be

reflected in higher growth of real wages

The rise in the real wages of casual labour only cannot

be a conclusive evidence either of an increase in the

real income or of tightening of labour market when the

incidence of unemployment has not reduced, and has

rather gone up

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Government Initiatives

Sampoorna Grameen Rozgar Yojana (SGRY)

Jai Prakash Rozgar Guarantee Yojana (JPRGY)

Vocational training for women

equal pay for equal work concept

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Eleventh Five Year Plan

Shift the surplus labour from agriculture to high wage non

agricultural sector

Increase in male casual labour wages

Real wages stagnated or declined for workers in the

organized industry although managerial and technical

staff did secure large increase Wage share in the organized industrial sector has halved

after the 1980s

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Contd

Continued manufacturing and service industry helped for regular salary

wage

Employment opportunity for casual wage worker has slowed down

The incidence of poverty among the regular wage/salaried workers ismuch lower (around 11%) as compared to the casual labour (32%) and

the self employed workers (17%)

Efforts should be made to increase the regular wage/salaried jobs

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Women and Wage

Women have vulnerable position when they seek regular wage jobs in the

unorganized or even in the private organized sector, in urban areas due to

inequality

Women have low wage rate than male for comparable occupations

Equality can be seen in various sectors like IT and enabled services sectors

Legal

Financial

Commercial

Education and health

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Migrant Workers and Wages

Supply of Migrant labour come from the states as

source have low wages To protect their interest government passed the

bill The Unorganized Workers Social Security

Bill, 2007 in the Rajya Sabha

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Casual wage Employee or Self

Employed

They account for 83% of work force

Their strength lies in occupational skills and tonegotiate for labour price

Shift in pattern from agriculture to non-

agriculture sector due high wage

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Service Sector and Wage

Unique opportunity to grow due to its labour cost

advantage, reflecting one of the lowest salary and

wage levels in the world coupled with a rising share

of working age population

Two initiatives required

Fostering the establishment of a viable size for delivery of

services based on labour intensive occupations

A massive skill development effort

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Success of Labour Policy

It can be seen in terms of the number of regular wage

employment opportunities based on some form of a written

contract between the employer and the employee, that is, an

increase in the number of formal jobs Change in policy need to accessed by-

Linking incentive benefits in terms of employment and wage

Formal employment

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Contd

Regular wage employment mode, is a critical

factor in improving the quality of employment of

the workers hired by the unorganized enterprises

Protective measures for employees in

unorganized sector

A statutory national minimum wage for all workers

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Scheduled Caste and Wage

60%still depend on wage labour

Employment rate and labour earnings are also low Discrimination by caste in cities also for low

wage

Large number of SC and STs depend on

agriculture wage thus government needs to revise

wages every five year

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Intiatives

Initiatives taken by government for poor are

Sampurna Grameen Rozgar Yojana

Creation of infrastructure

NREGP Increasing labour productivity through technology change and

innovation is the main route for the creation of additional wealth

to enterprises and better wages to employees

NREGAsoft is used to collect workers database and wages

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Social Security

Social security will be treated as an inclusive concept that also

covers housing, safe drinking water, sanitation, health , educational,

and cultural facilities for the society at large

It is necessary to ensure living wages, distinct from the concept ofminimum wages, which can guarantee the workers a decent life

ESI has existing wage limit of Rs.10,000 per month

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Social Security

A national policy for fixing minimum wages would be crystallized and

made effective

Discrimination in wages based on gender and age would be

abolished/penalized

An information network will also be built to promote awareness, to

educate employers (some of whom do alternate as wage labour too),

and to prevent malpractices (perpetrated by design or by ignorance)

with the help of the media, NGOs, and PRIs

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Thank You

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Documents

29295871 Five Year Plan Wage Policy (1) (1)