five year plan & wage policy

Five Year Plan &

Wage PolicyPresented By-Presented By-Omprakash SutharOmprakash Suthar

First Five Year Plan The conditions of work should be such as to

safeguard the worker's health and protect him against 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

2Aravali Institute of Management, Jodhpur

Minimum Wages Act State Governments are required to fix minimum

rates of wages for agricultural labor by the end of 1953*

In nine States, including Punjab and Uttar Pradesh, minimum wages have been fixed

The implementation of the minimum wage legislation should be reviewed from time to time

* Chapter 13, First Five Year Plan 3Aravali Institute of Management, Jodhpur

Wages and Social Security Steps are necessary to divert saving, to present

expenditure to increase production, which leads to the restriction on- Large dividends and profit distribution Remuneration of management Issue of bonus shares Any upward movement in wages

Payment by results as proposed by ILO DA is made a necessary part of wages


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 Manganese industry should be instituted


Security Measures The Employees' Provident Funds Scheme

should be extended to cover industries and commercial establishments 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 the Employees' State Insurance Scheme) is under consideration

* Chapter 27 Second Five Year Plan 6Aravali Institute of Management, Jodhpur

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 for improvements in quality*

* Chapter 15 Third Five Year Plan 7Aravali Institute of Management, Jodhpur

Security Measures Implemented Schemes* like -

Employee State Insurance Scheme - the scheme will be extended 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

* Chapter 15 Third Five Year Plan 8Aravali Institute of Management, Jodhpur

Sixth Five Year PlanWAGES IN AGRICULTURE The provisions of the Minimum Wages Act, 1948 which provides for the fixation

and periodical 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 Government which do not account for much under these categories, the implementation of this Central legislation is the responsibility of the State Governments.

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

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


Contd.. The necessary amendments in the statutory provisions are likely to

be initiated soon. Sufficient strengthening of the enforcement machinery would provide an effective arrangement for better implementation of the. Minimum Wages Act.

In this context it may be pointed out that this measure coupled with programmes like National Rural Employment Programme and Integrated Rural Development etc. would represent a coordinated and mutually supporting effort for raising large number of rural poor above the poverty line. Proposals for Central legislation for agricultural workers


Seventh Five Year Plan (1/2) Higher labour productivity ensures higher

wages The creation of employment opportunities in

the large, medium and small-scale industry, both in the public and private sectors of the economy to increase the wage output


Seventh Five Year Plan (2/2) TRYSEM was introduced to provide technical

skills and to upgrade the traditional skills of rural youth belonging to families below the poverty line

Wage employment is also introduced in it


Eighth Five Year Plan (1/3) A statutory provision of minimum wages for

employments has been included in the schedule to the Minimum Wages Act, 1948

For implementation of minimum wages workers' organisations, non-governmental voluntary organisations and organised trade unions also ensures minimum wages, instead of solely relying on the official enforcement machinery


Eighth Five Year Plan (2/3) 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


Eighth Five Year Plan (3/3) New marketing approaches for artisans

was introduced so that their wage increases


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 below Rs. 35 per day

Minimum wages can offer greater potential for income transfers then special employment generation schemes


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


Government Initiatives

Sampoorna Grameen Rozgar Yojana (SGRY) Jai Prakash Rozgar Guarantee Yojana (JPRGY) Vocational training for women ‘equal pay for equal work’ concept


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


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 is much 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


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


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


Casual wage Employee or Self Employed They account for 83% of work force Their strength lies in occupational skills and to

negotiate for labour price Shift in pattern from agriculture to non-

agriculture sector due high wage


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


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


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


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 ST’s depend on

agriculture wage thus government needs to revise wages every five year


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


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 of minimum wages, which can guarantee the workers a decent life

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


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


Thank You


five year plan & wage policy

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