Question

Workers are exploited in the unorganized sector. Do you agree with this view? Give reasons in support of your answer.

Answer 1

Yes, the workers are exploited in the unorganized sector in India, and there are plenty of examples to back up this statement.

Unorganized Sector – Different Ways of Exploitation

• In the unorganized sector, it is very common to find many organized sector enterprises.
• The laws to protect the laborers are not followed and strategies are used to evade taxes by such enterprises.
• The earnings of the workers are not regular.
• The salary of the workers is very low.
• Workers are not given a fair wage and they are exploited to work more.
• These jobs do not give any extra benefits to the workers.
• Jobs of the workers are not secure.

Reasons for People Joining Unorganized Sector – Despite Exploitation

• The most sought-after jobs for people are in the organized sector, yet people join the unorganized sector.
• It was common to notice that a large number of people lost their jobs in the organized sector since the 1990s.
• Therefore, despite very low salaries large numbers of people were compelled to take up jobs in the unorganized sector.
• Low earnings did not deter people from joining the unorganized sector since they did not have any viable alternatives.
• In addition, the expansion of employment opportunities in the organized sector was very slow.

Unorganized Sector Employees – Urban Areas

• In the urban areas, the unorganized sector consists of those who work as garment workers, head load workers, street vendors, casual workers in transportation, trade, construction, and workers in small-scale industry, etc.
• For marketing of output and procurement of raw materials, small-scale industries need support and help from the Governments.

Unorganized Sector Employees – Rural Areas

• In the rural areas, the unorganized sector mostly comprises artisans (such as goldsmiths, carpenters, blacksmiths, and weavers), small and marginal farmers, sharecroppers, and landless agricultural laborers.
• In rural areas, around 80% of the rural households come under the category of small and marginal farmers.
• These farmers need to be supported through adequate facilities for timely delivery of storage facilities, seeds, marketing outlets, credit, and agricultural inputs.

Unorganized Sector Employees – Need for Protection

• It is also seen that the majority of the workers in the Unorganized sector are people from backward communities, scheduled tribes, and scheduled tribes.
• These workers also face social discrimination, besides being paid low wages and the irregular nature of the work.
• If the country has to see social development and economic development, then unorganized sector workers in both rural and urban areas must be protected.