For better conditions of work

Livemint     17th June 2020     Save    
QEP Pocket Notes

Context: The COVID pandemic is an opportunity to rebuild economic production through di?erent institutional arrangements. Migrant workers can look towards forming cooperatives and unions.

Problems of the Migrant Workers

  • Terrible living conditions and shocking treatment: in the cities that repel them from comming back to the cities.
  • Inadequate MGNREGA: 
  • Provides relief only for the short term.
  • It is a vulnerable wage-earning occupation due to its dependence on rains.
  • It has not enough work to engage all people.
  • Concerns for fair treatment: Wages of the workers are also dependent on the casual favors (sexual demands) of the contractor. Poor salaries and no social benefits increase vulnerability.

Way Forward:

  • Forming Cooperative Societies: 
      • In Rural Areas:
  • Both returning migrants and MGNREGA workers can form cooperatives.
  • They can form hubs which develop their services or products that can be sold with better terms and conditions.
  • E.g. Several tailors in a village in Bihar can come together to form cooperative, attracting contracts from both local and elsewhere.
      • In Urban Areas:
  • Workers without enough marketed skills in local areas can re-enter cities as a labor cooperative.
  • Demand housing and other support systems that provide them a decent living, not only wages.
  • NGOs and National Cooperative union: can intervene to provide a solution to the workers who do not want to return to the cities:
      • E.g. AMUL Model is a lesser-known model that is not sophisticated and is fair in terms of wages that can be implemented.
  • Ensure fair wages: Cooperatives ensure fair wages with the removal of exploitative middlemen.
  • Reshape MGNREGA: so that its funds can be used to enable women or artisans to market their products.
  • Dispersed production: To fill the demand of the cities with collective marketing of the rural areas by creating new kinds of economic structures- a pyramid of group economic activity
  • Successful unionization of workers: can protect them from exploitation. It will promote dispersed production for both local and export markets. 

Conclusion: Arrangements to rebuild India where cities are not congested and where standards of rural area are improved provides an optimal solution for workers and growth in GDP alike.

QEP Pocket Notes