Informal Sector Problems in Indian Industries

This article is related to problems in informal/unorganized sector of Indian industries especially related with occupational health and safety and the contributing factors that leads to poor working conditions in informal sector. We know that India has moved to a service sector economy from an agrarian economy, however India is still in its emerging phase as an industrialist economy. If you take the case of Indian industries, 90% of the workers are employed in informal sector. But the works in these sector are hazardous and insecure but still they used to admit their job to strive against their hunger and to continue means for their daily bread and butter. However the real scenario is, employment is not eradicating their poverty, rather they are prone to more risks and vulnerabilities. Many of the workmen are accepting these facts and for many of them, the reason is simple and realistic as they used to say "We might die of work, but if we don't work, our families will die out of hunger. So according to them, having work is important than the quality of job.

A welder unaware of fire hazard nearby him.
Welding near oil drum may cause fire hazard.

There are many contributing factors that leads to poor working conditions in informal sector. The foremost reason is the unawareness about workplace hazards due to lack of education and access to information. Most of the workmen employed in this sector is not having preliminary education and they cannot comprehend even if information is passed to them. The other major problem is no proper work hours. Piece rate work often leads to exploitation and extended exposure to hazardous processes. Moreover, workmen demands over time work as their daily wages on normal time is not so attractive and will not satisfy the daily needs in an inflation dominated economy. Diagnosis of occupational diseases is another difficulty in informal sector. So the treatment of occupational diseases is hardly possible in this sector. No clear distinction between living and working area complicates the problem, and exposes relatives and other living in the vicinity to work related risks. Another major problem in this sector is short term employment. Most the workers in informal sector is backed by a contractor whom they will approach for job. These contractors will deploy these workers for a short assignment in one particular job and afterwards they will be shifted to another category of jobs. This will not allow the workmen to expertise in a particular kind of job.

Labour reforms and labour laws from the government can be the best solutions to these problems in informal sector. There is a need to revive the grand old Factories Act 1948, which are still based on old concepts and definitions. Work oriented training must be given to these workers from the employer prior to the work and frequent up-gradation must be done during coarse of work.