Letters: Humane approach to labour

This refers to the report "Working conditions worsen in non-formal sector: NSSO" (August 28). Working conditions in the non-formal sector are governed by requirements of both the employee and the employer for the salaried class and contractual obligations in the case of the non-salaried class. Employment in the farm sector is seasonal. Most of the farmers either lack financial resources or hesitate to rotate crops fearing damage caused by fluctuating weather. Thus, the requirements of the cultivator are purely seasonal and farm labour accordingly migrates to non-farm areas for daily sustenance. They are ready for even casual or temporary employment without entering into a formal contract. They are concerned only about immediate financial security since they do not have a retirement age and work as long as they are physically fit. Employers (in the industrial sector in particular) take advantage of these features and adopt a hire-or-fire policy without providing social security benefits in order to cut costs and increase profits. There is no humane approach to labour.

The variations in percentages of development or deterioration in various spheres of the non-formal sector between 2004-05 and 2011-12 are purely statistical and do not take into account the increase in population or advancement in technology. Contractual labour is time-bound and result-oriented without a formal employer-employee relationship. This also applies to employees in the household sector. These are unwritten contracts that are entered into orally and in the absence of qualitative performance they get terminated abruptly.

Salaried employees are, however, governed by the Provident Fund Act and labour laws, which are social-security measures. The continued investment of a portion of their earnings in deposits and those with loan benefits ensure the financial stability and economic strengths of the non-formal worker in the absence of social security benefits. Investment in the health insurance policies of banks and insurance companies take care of their medical requirements. The negative side emphasises that improvement in technology has restricted manual intervention, which goes against the interest of a casual wage earner, with the continuance of the contract depending on his skill and experience. There is, however, a more lucrative sphere of contractual employment where experience is richly rewarded and continuance of the contract till maturity is ensured by both the parties. In such cases, there is a one-term attractive terminal benefit. Thus, although the lack of social security benefits is a cause for concern, informal employment cannot be totally overlooked since it sustains a section of the population on a regular basis.

C Gopinath Nair Bangalore

Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number