| PYQ Relevance: Q How globalization has led to the reduction of employment in the formal sector of the Indian economy? Is increased informalization detrimental to the development of the country? (UPSC IAS/2016) Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC IAS/2021) Q Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss. (UPSC IAS/2022) |
Mentor comment: The Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, which was introduced on June 29, 2024, aimed to regulate the welfare and rights of gig workers in the state. It is the second such legislation in India after the state of Rajasthan. The proposed ‘quota-for-local’ Bill in Karnataka aims to reserve a significant percentage of jobs for locals, mandating that 70% of non-management and 50% of management positions be filled by Kannadigas. This legislation has raised concerns about its impact on migrant workers, who comprise a substantial portion of the workforce in IT and gig economy jobs.
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Why in the News?
Karnataka’s Gig Workers Bill has raised concerns about its impact on migrant workers, which comprises a substantial portion of the workforce in IT and gig economy jobs.
| Key Features of the Bill: • Rights Protection: The Bill is designed as a rights-based framework, ensuring gig workers have protections against unfair dismissals and arbitrary payment deductions. • Social Security Fund: A welfare fund will be established, funded by a fee from aggregators based on gig workers’ earnings. This fund aims to provide social security benefits to registered gig workers. • Contractual Clarity: Aggregators must provide clear contracts detailing termination grounds and must give a 14-day notice before contract changes. • Grievance Redressal: The Bill mandates a two-level grievance redressal mechanism, requiring aggregators with over 50 workers to form an internal dispute resolution committee. • Transparency in Operations: Aggregators must disclose parameters related to work allocation and automated decision-making processes affecting workers. |
How does the proposed ‘quota-for-local’ Bill impact migrant workers?
- Job Opportunities: The bill could limit job opportunities for migrant workers, as companies would be required to prioritize local candidates. This may lead to a reduction in the already precarious employment options available to migrants, who often fill lower-skilled positions.
- Increased Competition: The migrant workers might face intensified competition for fewer available roles, particularly in sectors where they have traditionally been employed, such as delivery services and hospitality.
- Economic Migration: The bill could lead to a demographic shift in the labor market. Migrants may choose to relocate to states with more inclusive hiring practices, impacting the state’s economy and workforce diversity.
- Exploitation Risks: The present Bill could make migrants more vulnerable to exploitation, as companies may feel less inclined to hire them, leading to further marginalization of these workers.
- Industry Concerns: Business leaders and industry representatives have expressed concerns that the bill could deter investment and talent from flowing into Karnataka, potentially leading to job losses and reduced economic growth. The focus should be on skills rather than reservations.
What measures can be taken to protect migrant workers from exploitation?
- Right to Change Employers: States need to ensure that migrant workers have the freedom to change employers without facing penalties, which can reduce their vulnerability to abuse and exploitation.
- Empower Migrant workers: The government/ Private sector needs to provide comprehensive information regarding workers’ rights, including recruitment processes, legal protections, and avenues for reporting abuse.
- Strengthening labor laws and legal assistance with counseling services that protect migrant workers and ensure strict enforcement through regular inspections of workplaces is a need of the hour.
- Social Security and Housing Access: States need to ensure that migrant workers have access to social services, housing, and healthcare, which can help mitigate their vulnerabilities.
- NITI Aayog in its report ”India’s Booming Gig and Platform Economy” has said that fiscal incentives such as tax breaks or startup grants may be provided for businesses that provide livelihood opportunities where women constitute a substantial portion of their workers.
- International Cooperation: Encourage countries to adopt and implement international standards and conventions that protect the rights of migrant workers, promoting safe and ethical recruitment practices.
Conclusion: The Karnataka Bill, like the Code on Social Security, 2020 and the Rajasthan Act 2023, fails to address employment issues in India. This oversight needs a rightful strategy to look into the issue concerning the gig economy as well as the migration pattern in India in past decades.
