What’s the news?

• India’s impressive economic growth numbers have not translated into a commensurate increase in employment opportunities.

Central idea

• Despite India’s impressive economic growth numbers, employment has not seen a commensurate increase. With five states heading to the polls at the end of the year, political parties are making various promises to address concerns about rising essential commodity prices. However, the question arises: Are these promises merely distractions from the systemic issue of jobless growth?

Promises vs. Solutions: Are Electoral Promises Diverting Attention from Jobless Growth?

• Unemployment’s Stark Reality: India’s economic growth stands in stark contrast to the persistent issue of unemployment, particularly among educated youth.
• Varied Electoral Promises: Political parties have introduced a range of electoral promises, including measures like providing cheaper gas cylinders and farm loan waivers. These promises often vary in their impact and effectiveness.
• State-specific Examples: In states like Chhattisgarh and Madhya Pradesh, where unemployment is a significant concern, electoral promises such as the Old Pension Scheme (OPS) may not effectively address the broader issue.

Agriculture’s Predicament: Can Supply Chain Vulnerabilities and Non-Remunerative Prices be Effectively Addressed?

• Critical Supply Chain Resilience: The agriculture sector, India’s largest employer, grapples with issues like supply chain vulnerabilities. These vulnerabilities can be exacerbated by factors such as climate change.
• Transforming Agricultural Output: To tackle the challenge of non-remunerative prices for produce, technological interventions aimed at converting agricultural output into higher-value products are proposed as long-term solutions.
• Palliatives Amidst Inflation Concerns: In some states like Chhattisgarh, promises like providing ₹1,500 a month for women in distress are seen as addressing purchasing power issues. However, concerns about potential inflation due to such measures must be taken into account.

Fiscal Responsibility and Unemployment: Is There a Correlation?

• The Paradox of Fiscal Responsibility: States like Haryana, which strictly adhere to fiscal responsibility guidelines, continue to face high unemployment rates. This paradox highlights the complex relationship between populist policies and fiscal distress.
• Emphasis on Revenue Mobilization: To effectively implement populist policies, a focus on revenue mobilization efforts is crucial. It’s necessary to ensure that such policies do not strain state finances in the long run.

Do subsidies and safety nets take focus away from generating jobs?

• Immediate Relief vs. Long-term Employment:
• Subsidies and safety nets offer immediate relief to vulnerable sections of the population, addressing issues like distress and purchasing power.
• However, there is a concern that an overemphasis on such measures may shift focus away from the more significant task of generating sustainable employment opportunities.

• Balancing Priorities:

• Balancing the need for immediate relief with the long-term goal of job creation is a complex challenge.
• While subsidies and safety nets serve a critical purpose, they must be complemented with policies and strategies that promote job generation, particularly in sectors that can absorb the workforce effectively.

• Policy Design and Implementation:

• Effective policymaking should aim to strike a balance between providing immediate support and fostering job growth.
• It is essential to design policies that not only address the distress of vulnerable populations but also contribute to sustainable economic development by generating employment opportunities.

Rethinking Economic Growth: Beyond GDP and Toward Employment

• Shifting the Focus from GDP: A Shift away from the Traditional Obsession with GDP Growth It emphasizes that economic growth should be intertwined with employment generation to make a meaningful impact on the lives of citizens.
• Exploring New Avenues: Rather than investing heavily in high-tech industries like semiconductor manufacturing, the article suggests exploring sectors such as mining for the energy transition. Mining can create local jobs, particularly benefiting marginalized communities and addressing unemployment.

Conclusion

• Addressing jobless growth in India requires a nuanced approach. While populist promises serve as palliatives in the absence of structural solutions, the focus should shift towards inclusive growth, technological interventions, and employment-centric policies that tackle supply chain vulnerabilities and promote sustainable economic development.

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What’s the news?

• The Rajasthan government introduced the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, aiming to ensure social security for gig workers.

Central idea

• While the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, demonstrates commendable intentions and includes noteworthy provisions, critical concerns arise that might undermine its effectiveness. There are four major issues that could potentially limit the scope and impact of the bill.

Key Features of the Bill

• Applicability: The bill covers both aggregators and primary employers engaging platform-based workers.
• Formation of a Welfare Board: A Welfare Board will be established, chaired by the Labor Department’s minister, to oversee welfare measures for gig workers.
• Registration and Unique ID: Gig workers and aggregators will be registered, and gig workers will receive a unique ID for streamlined welfare access.
• Social Security and Welfare Fund: A dedicated fund will offer social security benefits to registered gig workers.
• Welfare Fee Deduction: Aggregators will contribute through a welfare fee deducted from transactions.
• Access to Benefits: Gig workers will gain access to state-formulated social security benefits, including insurance.
• Grievance Redressal: A mechanism for addressing worker grievances will be in place.
• Representation: Gig workers will have representation on the Welfare Board for decision-making.
• Compliance and Fines: Aggregators must comply, with fines for non-compliance.

Four major issues that could potentially limit the scope and impact of the bill

1: Definitional Ambiguity

• Definitions from the Bill and their Implications:

• The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, introduces definitions for gig worker and aggregator derived from the Code on Social Security, 2020.
• The definitions are intended to clarify the roles and relationships of gig workers and aggregators within the gig economy.

• Definitions of gig worker and aggregator:

• The bill defines a gig worker as an individual engaged in work outside the traditional employee-employer paradigm, earning from such activities, and operating under a predetermined payment rate contract.
• An aggregator is described as a digital intermediary that facilitates collaborations between aggregators, enabling service provision.

• Ambiguity in Determining the Aggregator’s Status:

• The definitions’ lack of precision in categorizing aggregators as employers creates uncertainty.
• The absence of explicit language binding aggregators to the role of employers leads to interpretational ambiguity.

• Implications of Definitional Vagueness:

• The vagueness could potentially result in gig workers being seen as self-employed or independent contractors rather than employees by aggregators.
• This vagueness contrasts with global best practices and sets the stage for the subsequent issue.

• Global Context and Significance:

• The debate over classifying gig workers and aggregators as employees or employers has global implications.
• The ABC Test in California’s labor code highlights the importance of clear classification, while the UK Supreme Court’s ruling in 2021 regarding Uber drivers further highlights the significance of accurate classification, underscoring that they are workers, not self-employed.

• Contrast with global practices:

• The Rajasthan Bill’s vague definitions deviate from global best practices, raising concerns about the subsequent challenges.

2: Integration with Labor Laws and Workplace Entitlements

• Classification of Gig Workers and Impact on Labor Laws:

• The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, does not classify gig workers as employees.
• The absence of employee classification poses challenges in integrating the bill with established labor law frameworks.

• Challenges in Compliance and Workplace Rights:

• Non-classification could allow aggregators to bypass labor law mandates, potentially undermining gig workers’ workplace rights.
• Gig workers might be denied rights granted to employees, such as minimum wages and fair working conditions.

• Exclusion from entitlements and Fairwork India ratings:

• The bill’s provisions may unintentionally exclude gig workers from essential entitlements, potentially impacting their well-being.
• Fairwork India ratings in 2022 highlighted poor worker welfare practices among prominent platforms.

• Accountability for workplace accidents

• The question arises: If gig workers are not designated as employees, to what extent can aggregators be held accountable for workplace accident expenses?
• Some Indian platforms have addressed this issue, but relying on aggregators’ goodwill risks converting entitlements into benevolence.

• Contrast with Australia and New Zealand’s Approach:

• Australia and New Zealand’s focus on a person conducting a business or undertaking (PCBU) and worker well-being highlights an alternative approach to workplace rights.

3: Duration of the Database and Implications for Gig Workers

• Database Creation and Durational Concerns:

• The bill’s third issue concerns the creation of a gig worker database transferred to the gig workers’ welfare board.
• A concern arises from the registration’s perpetual validity, irrespective of workers’ ongoing engagement with app-based platforms.

• Obstacle to Perpetual Registration:

• The well-intended perpetual registration concept could inadvertently hinder gig workers’ flexibility.
• Gig workers often work with multiple aggregators in a single day, leading to concerns about registration’s impact on choices.

• Potential influence on choices and mechanisms:

• Mandatory registration might enable aggregators to learn about workers’ engagements with various platforms, possibly influencing their choices.
• The bill lacks preventive mechanisms to address this potential influence.

4: Deficiencies in Social Security Provisions

• Social Security and Welfare Board Establishment:

• The bill’s fourth issue revolves around its core goal of providing social security to platform-based gig workers through a welfare board and fund.
• Eight aggregators are brought under the bill’s jurisdiction, but it lacks explicit definitions of social security and welfare measures.

• Discretionary Nature of Social Security Provisions:

• The bill delegated the responsibility of defining social security measures to the welfare board’s discretion.
• This lack of specificity raises concerns about the comprehensiveness and effectiveness of the proposed social security provisions.

• Lack of explicit definitions and ambiguity:

• The absence of clear definitions for social security leaves room for interpretation and may affect the welfare board’s decision-making process.

• Influence dynamics within the Welfare Board:

• While the welfare board includes gig worker representatives, the dominance of powerful representatives from platforms, bureaucracy, and the government raises questions about the extent of worker influence.

Way forward

• Refine Definitions: Clarify gig worker and aggregator definitions based on global standards to prevent ambiguity in their roles.
• Employee Classification: Clearly categorize gig workers as employees to grant them labor protections and rights.
• Database Management: Implement a periodic registration renewal system to accommodate gig workers’ changing engagements.
• Preventive Measures: Introduce safeguards to prevent aggregators from exploiting registration data to influence gig workers’ choices.
• Social Security Definition: Define the scope of social security and outline welfare measures to ensure comprehensive coverage.
• Enhanced Worker Representation: Strengthen the influence of gig worker representatives on the welfare board.
• Stakeholder Consultation: Collaborate with gig workers, aggregators, experts, and labor organizations for a well-rounded regulatory framework.

Conclusion

• In conclusion, while the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Bill, 2023, demonstrates a commendable commitment to gig workers’ welfare, it is beset with critical flaws. Addressing the issues and aligning with global best practices will be crucial for the Bill to achieve its intended objectives and provide genuine social security to platform-based gig workers.

Also read:

What does India’s first gig workers’ rights Bill stipulate?

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What’s the news?

• The High Court of Bombay has recently taken suo motu cognisance of the exploitation of the intra-State workforce that migrates seasonally from the drought-affected and water-scarce regions of Marathwada to the sugar-belt region of western Maharashtra.

Central Idea

• According to the Maharashtra Sugar Commissioner, in 2022-23, the net area under sugar cane was 1.487 million hectares, and there were 203 crushing factories in the State that were expected to produce 138 lakh metric tons of sugar. Though intra-State migrant workers form the backbone of the sugar cane industry and economic growth, they have remained critically marginalised and oppressed for several decades.

Seasonal Migrant Workers

• Seasonal migrant workers are individuals who temporarily migrate from one region or area to another for work during specific seasons or periods of the year.
• These workers move to places where demand for labor is higher during certain agricultural or industrial activities, often due to seasonal variations in work opportunities.
• For example, Workers from the drought-affected and water-scarce regions of Marathwada in Maharashtra migrate to the sugar-belt districts of western Maharashtra. They do so to work in the sugar cane industry, particularly during the harvesting season.

Challenges faced by the these workers 

• Exploitative Labor Practices: Seasonal migrant workers in the sugar cane industry are often recruited through labor contractors known as Mukadams. This exploitative system allows sugar factories to obtain a large volume of temporary, cheap, and efficient workforce.
• Low Wages and Job Insecurity: Migrant workers often receive low wages for their labor, and their work is typically temporary and seasonal. As a result, they face uncertainty about future employment opportunities.
• Inadequate Working Conditions: The nature of sugar cane harvesting and processing tasks can be physically demanding and hazardous. Workers, including women, may engage in strenuous work, such as head loading, leading to accidents.
• Lack of Social Protection: Seasonal migrant workers may lack access to social protection schemes, such as health insurance and other benefits, leaving them financially vulnerable in case of illness or injury.
• Invisibility and Marginalization: Migrant workers are often marginalised and overlooked in the regions where they migrate for work. This invisibility can limit their access to essential services, education, and healthcare.
• Education Challenges for Children: Children accompanying their parents may face disruptions in their education due to migration, and there may be insufficient alternative schooling models, impacting their learning and development.

Primary drivers of this migration

• Lack of Employment Opportunities:
• Marathwada, being a region with drought-prone areas and water scarcity, faces challenges in providing sufficient employment opportunities to its rural population.
• The agricultural sector, which is the primary source of employment, often experiences prolonged unemployment after the sowing of rabi crops, leaving many small and marginal peasant households without work.
• Crop Failures and Debt: The region of Marathwada is susceptible to crop failures due to erratic monsoons and water shortages. Repeated crop failures result in the accumulation of debt for many farmers and agricultural laborers, making their economic situation precarious.
• Acute Unemployment: Apart from crop-related employment, there may be limited industries or economic activities in the region that can absorb the surplus labor during non-agricultural seasons, leading to acute unemployment.
• Attractive Job Opportunities in the Sugar Cane Industry:
• The sugar-belt districts of western Maharashtra, such as Sangli, Kolhapur, Pune, Satara, Solapur, and Ahmednagar, are known for their sugar cane industry.
• During the sugar cane harvesting and processing seasons, there is a high demand for labor in the sugar factories and fields, making it an attractive destination for seasonal migrant workers seeking employment.
• Mukadam System and Labor Contractors:
• The Mukadam system/ contractors act as intermediaries and provide labor couples to the factories.
• Workers, often in need of employment, rely on the Mukadams, creating a system of dependence that perpetuates the migration.
• Lack of Diversified Livelihood Options: Limited livelihood diversification in the home region may prompt individuals to seek employment opportunities in other regions with more robust economic activities.

Concerns and challenges in framing meaningful policies 

• Inadequate Data and Migration Tracking:

• Lack of comprehensive data is hindering the formulation of meaningful policies for seasonal migrants, making it difficult to address their specific needs effectively.
• The Migration Tracking System (MTS) application, launched by the Women and Child Development Department in 2022, aimed to track and enumerate seasonal migrants, particularly focusing on children, pregnant women, and lactating mothers to ensure their well-being and access to services.
• However, the MTS falls short in providing a complete picture of seasonally migrating families, including their employment status, wage structure, and entitlement coverage.
• Plight of Women:
• Women working in the sugar cane industry face strenuous and hazardous tasks, such as headloading cane bundles and carrying heavy weights on trucks or trolleys (Oxfam India 2020).
• Their work adversely impacts their bodies, causing musculoskeletal disorders and several gynecological issues (Oxfam India 2020).
• Early and forced marriages among migrant women lead to problems for adolescent girls, resulting in early pregnancies (15-17 years), deliveries without trained birth attendants, and frequent childbirth (UNESCO).
• Studies have also reported recurring cases of violence and sexual harassment linked to labor contractors (Mukadams) and male workers, further exacerbating the vulnerabilities faced by migrant women.
• Plight of Children:
• Children accompanying their parents to sugar cane fields face blatant violations of the Right to Education (National Education Policy, NEP, 2020).
• The lack of sufficient alternative schooling models affects their education, potentially forcing them into child labor.
• School records often fail to acknowledge the physical absence of these children from school, perpetuating the lack of proper education for them (International Institute for Population Sciences, IIPS, and UNICEF, 2022)

Way forward: Need for government interventions

• Data Collection and Migration Tracking System (MTS): The government should conduct a periodic and time-bound enumerating exercise to create a credible databank of seasonal migrants. Expand the scope of the Migration Tracking System (MTS.
• Empowering Labor Administration: Strengthening labor administration and enforcing labor laws is essential to protect the rights of migrant workers. Regular inspections should be conducted.
• Holistic Policy Development: Formulate comprehensive policies specifically addressing the needs of seasonal migrants. Collaborate with different Ministries and Departments to address the multi-dimensional challenges faced by migrant workers and their families.
• Addressing Women’s Plight: Implement long-term intervention strategies to address the challenges faced by women migrant workers. Provide training and opportunities for skill development to enhance their economic independence and ensure their health and safety in the workplace.
• Ensuring Children’s Education: Implement alternative schooling models for children accompanying their parents to sugar cane fields. Protect their Right to Education and prevent them from being forced into child labor.
• Access to Justice and Safe Working Conditions: Ensure that seasonal migrants have access to justice and are guaranteed safe and healthy working and living conditions. Address the exploitative Mukadam system prevalent in the sugar cane industry to protect the workers’ rights.

Conclusion

• Empowering seasonal migrant workers in Maharashtra’s sugar cane industry is crucial to fostering inclusive economic growth and protecting human rights. The State government must act with strong political will to formulate comprehensive policies and interventions that address the vulnerabilities faced by these workers at both the source and destination regions.

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