FIVE YEAR PLAN & WAGE POLICY

First Five Year Plan (51 56)

2

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

Minimum Wages Act, 1948

3

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

Wages and Social Security

4

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 (56 61)

5

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
6

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

Third Five Year Plan (61 66)

7

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*

Security Measures
8

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

Sixth Five Year Plan (80 85)

9

WAGES 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 the 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 Price Index Numbers, involvement of the rural workers' organisations in the implementation of the provisions are among the steps advocated to improve the results.

Contd..
10

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 (85 90)

11

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

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Seventh Five Year Plan (85 90)

TRYSEM (Training of Rural Youth for SelfEmployment) 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

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Eighth Five Year Plan (92 97)

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

14

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

15

New marketing approaches for artisans was introduced so that their wage increases

Ninth Five Year plan (97 02)

16

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 (02 07)

17

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
18

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 (07 12)

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
20

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

21

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

22

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

23

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

24

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

25

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
26

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

27

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

Intiatives
28

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
29

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.15,000 per month

Social Security
30

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