MAIN FINDINGS AND SU(:(;ESTIONSshodhganga.inflibnet.ac.in/bitstream/10603/71331/12/12_chapter...
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MAIN FINDINGS AND SU(:(;ESTIONS
To keep h e suo~niary of thc t i w.i~hill rc;~wl~lahlc I I I tllain
findings and suggestions h a a d (\a lield ie\.cstigilit,r~ arc* prc*sentr*d in thi\
chapter.
A. Main Findings
A.1 Social and Managerial Aspects:
1 . About 81 percent of the workcrs in shop5 and c.s~ahli~hrnc.~~t\ and snrall
scale industries inGudur town ;KC in thc agc gnbap of 20-40 Ycilrr. No
worker is above 60 years of age.
2. About 56 percent of thc workcn in thc infi,r~nal kccttrr 111 (iudi~r toun
belongs to other categories of caste\ (cxcludinp Backward C'itstc~.
Scheduled Castes and Scheduled Tribes). Workcn klonginp to
Scheduled Tribe\ are totally ah\ent i n \mall \talc indu\tric\.
3. Hindu Religion is the leading religion with a share of 81 percent in total
workers followed by Muslit11 Religion witb 18 perccnl and Christian
Religion with I percent.
4. Out of the total workera. 12 perccnt of the worker\ arc i1litcr;~tt.~. Most of
the workers are having high sch<~)I lc\cl education.
5. Telugu is the mother tongue for ahout 89 percent of the total work force.
The inflow of the uorkcrs Sronl other \talc\ i \ almtr\t ncgliphlc.
6. Nearly 65 percent of the workers are nlarried aid & u n m h d .
bout 60 percent of the worken in ihops and es~uhlirhnlcnts ;ur. mmird
compared to 78 percent in ~ h c ' caw of in~all \~-;rlc indu\trial units.
7. Out of the total I86 ~vorken. only 40 workers :Ire the in~mipnnts. Out Of
40 immigrants 5 are from out \ide the Nellorc district. The major mau)nr
for immigration we paucity of cmployn~oit in native place. scope to earn
more income in Gudur to\\n. not -interested to work in nativc placc.
attraction of urban environmcnt and assured enlploymcnt.
8. The major occupation of f:~thcr> of workers in the informal rector in
Gudur town is agriculture.
9. The average size of the household of' the workcn in the inf'onnul xc tu r in
Gudur town is five members pcr household. The tnale-fcnialc ratio in the
households of workers is 54.16.
1O.Distribution of family members o f rhc worken i s favourable to take up
income earning economic activities.
I I. About 41 percent of the family mrmhcrs of the worken are illiterates.
12. The members of the household* of' workers arc 'having jifferent
occupations or employment. Agriculture is the major occupation followed
by employment in the private e c a l r and hu*ine\\.
13. The most important source of \pending leisure time ir watching Radio and
T.V. programmes. The popular \oarce of mtertainment for the worken ir
cinema.
14. Out of 186 workers. only 18 are suffering (lo~n di\ei~se\. i inpr tml diseases are stomach pain, head-ache i~nd heart con~platnt\.
15.~0rrnal mining after recruiln~snt i \ ~ I I I O ~ I ahaent ill i~llbrnlal seclor in
Gudur town.
16. No workerain the informal secior in Gudur to\vn is ha\.i~lg an oppc~nunity
of working normal hours per day i.s. 8 hours.
17. Nearly 24 percent of the workers do not havc the f i x ~ r l holiday in a week.
18. About 91 percent of the workerr tell that their \rork is rect)gnisd by rhrir
employers. This will motivare the utorkcrs to ~ o r k ttlorc'
19. Eighty Nine (89) percent of the tvorkcrs reported that rhcir cn~ploycrs give
weightage to their suggestions. This improve\ joh hatisfaclion rittiong
workers and gives an opportunity to participarc in ~hc' prtxcss of dccision
making and forward planning at the entcrprisc. Ic.t,c.l
20. Out of 186 workers, 139 rcportcd that their job powas rr better social
status.
2 1. Most of the workers felt that thcir job is not difficull to do. Almost all
workers opinied that their abilities (knowledge and skills) are ~uiliihlc to
do their jobs. Almost all worker3 except h have the upinion that their
employers interested in then1 md their problems and their developments.
7 1 percent of the workers expre\\ed that they havc job security. Most of
the workers have friendly relalion\hip with co-~ 'orkrrs 95 percenl of the
workers have felt that the existing working condition* are conducive for
higher efficiency jn their work. No uorkcr in the itiformal =tor in Ciudur
town is a member of trade union..
22.The main reasons for working h;ml hu worten \ur~ival. to enjoy life.
to provide good future for children and to ICNJL after the drpndnnta.
23. Nearly 6.5 percent of the u-orlicrs arc .li\ing i t ) t I r i r <I\\ II houws. Oa an
average each worker living in the rented housc is pying Rs..HW) lowards
the house rent. Out af 186 ~orkers. 152 arc li\-itlg in r.lrr-uifinl hou-WS.
Most of the houses are p ropr l y vent i l;~ted. The housing acuoa~mtdalion
is totally inadequate compared to their h t i~ i ly \irr\. h4a1ly of the worken
are facing water problem. &lnv of the workers are managing with
common bath rooms and toilet rcmnls.
24. Only 4 percent of the workers do not havc job h;rrisf;~ction. The imp)rtant
reasons for having job satisfi~ction as rcpcu-tCd hy rhc wc~rkcn arc :
(a) Good relationship with the employcr
(b) Timely payment of remuneration
(c) Nearness to living place
(d) Suitability to the job and
(e) Able guidancc by the supervisor.
The reasons for job dissatisfaction anvjng s o n ~ e workers are a ) low
remuneration b) poor working conditions and c ) hari~rsmcnt hy the superion.
2 5 . 0 ~ 1 of 186 workers, 25 workerc worked in the pad in other
er;tabljshmentr. The causer for the change of presiou\ cmplnyment a!
repofled by the workers are: a ) scope to earn more h~had reliltionship with
the past employer c)closure o f \hop\ and d 'wcurity of employment in the
present job.
26. Most workers
remuneration in the new.joh is grcitrr th;ln prcu.nt remunznl~inn ill the
present job.
27.There is greater rnohility among worken ill ihr- ink,rt~~:,l \c~tor it, lhc
Gudur town. Mobility is niolp in the caw of rlltbpr and cstahlishmcnts
compared to small scale industries.
28. Friends. personal contacts. relati\.es and rlirer.~ ;q~pnb;tch arc the hcl1,inp
hands in getting jobs by the workers. Friend, pluycd a rniijor role in
getting jobs in the case of shops and estahlishnwnts. Pem~nal contacts
played a major role i n getting joha in snlall \calr. i n r l u \ ~ r ~ ~ \ .
29.The distance between residence and work placc ol' wt)rkcrs is reasonably
low.
30.Majority of the workers are reaching rhcir work places fnIm thcir
residences by walk. The second importanr mcdr of rrnn\pcjn is hicycle.
A.2 Economic Conditions:
I . Earning members are less in numkr compared 10 non-earning members
(dependants) in the households of workers in inljrrnal sector in (iuJur
town. The share of earriers is 40 percent.
2. Average earnings of the workers per annunr p r worker is RI. I9.IOM.
Small industrial units are paying more to rhcir workcn compared to shops
and es(ablishments. The nwsl implrtanl income group is RI. I W)O-
Rs.200()(). Nearly 68 percent of the *ample worker, fell in this group.
3. On an average. other m e m k n of the fdnlilics of the omplc .u .ohm ur*
able to a monthly income of Rs. 1 . ~ 5 0 per f;knlilv prr mnum. The
most important source of income for ihem is :lgr~calture li,llaucd hy self-
employment. work in small e*tahli\hmmts and cahual lahc3ur.
4. Out of 186 workers. 29 worken like that their children should take up the
same line of activity. Most of the sample worken like that their children
are to be employed in government services.
5. The average income per household pcr annuli1 work\ out lo Rh.37.764.
The share of the income of the other I't~mily metnhc.rs in the total inconlc IS
nearly 42 percent.. '
6. Out of 186 workers. 95(5 1 percent) arc. not paid niit~irnuri~ wages as per
minimum wages act.
7. Nearly 20 percent of the worker\ arc paid h n u \ o n different occa\lr,ns.
The important occasions for the payntent of h n u \ ore Clasara. r)c.c.vnli and
Sankranti.
8. There is a negative correlation hetween family sire and the income per
household.
9. There is a positive correlation hetween literacy level o f the workers and
their incomes.
IO.The major item of expenditure hy the w~orkers i \ L x d . 11 acnjunts for
about 40 percent of the [otal expenditure. Thc rcond i rnp~mnt item of'
expenditure of worken i \ clothing. I t arcounfh fi)r ah0111 ?O percent in the
total expenditure.
1 I .There is positive correlation kt\t.ren inconr and exp.nditurp of woken-
There is a high degree. of p)\itiue correlation hrtwern savi~lgs and
incomes. Sizc of the k~nlil? inl1ustwe~ the level of wvings positively.
The savings ranges in hetween Rs. 1.857 and H~.h.U52 per household per
annum.
12.0ut of 186 workers. only ' I ( I 1 vrcent) workers ore in debts. The
average debt per household is worked out to Rs. 1.038. The avcrdpt. dcht
per indebted households is Rs.9.190. Therc are four sources of debt.
They are: I )Present employer ?)Friends 3)Relativcs and 4)Lcxal money
lenders. The main purposes for which the workers have k~rrowcd money
are medical expenses, construction of houses. marriages of daughters.
education of the children and petty personal expenses. The share of
medical expenses i n total debt outstanding is 24 pcrccnt. The cos~ of'
credit is at high level because the entire credit is pmvided by nan-
institutional sources. The level of indebtedness is at very low level i.e..
nearly 3 percent of income.
13.The average value of assets per household works out to Rs.55.543. The
share of houses in the total value trf ;issets is nearly 70 percent. n c next
important asset is land. Out of I86 worken, 126 workers have assets
excluding household furniture. utensils and ornaments. Out of 126
workers who are having assets, 57 workers fall in the asset range of Rs.0 -
Rs.75.000.
14. In total. 74 household\ of worken arc helow poverty line. I t i s nearly 40
percent of the sample houwholdi. This percentage is on higher 4idc
compared t o the percentage of hou\chold\ helow poverty line in India.
B. MAIN SUGGESTIONS
I . The owners of Shops and'Establi\hmttnr~ ;lnd S~nall Scale Industries huvc
to give importance to persot), k lo~~ging ro Scheduled Castes and
Scheduled Tribes in recruitrnenr.
2. The owners of the enterprises and the government agencies have to lake
necessary steps to educate the illiterate worken through adult lileracy
programme. This programme should include rerldinp and writing skills
and legal environment of informill sector in India.
3. Since many of the workers in the informal sector arc hailing 1'rc)m
agriculture, it is essential to take necessary stcps to make agriculture
econon~ically and financially vi;lble activity. Wage rates in agriculture
sector should be maintained at a reasonably high lcvcl to arrest the
mobility of people from agriculture lo urban inforniul sector.
4. The distribution of family memkrs of workers by the levcl of education in
informal sector df Gudur town suggest that, here is an urgent need to take
adequate measures by the government authorities to reduce and ultimately
remove illiteracy among households of the workcrs in the informal sector
in Gudur town. For this purposc night schools may be promoted by the
government authorities.
5. The owners of the enterprises in the informal sector in Gudur town hhould
develop the habit of giving formal training lo the newly recruited persons
to develop knowledge and ski l l to do the job most efficiently and
effectively. During the period of training. a rca\onahly g o d amount of
remuneration i \ to be paid to the worker under training.
6. The owners or managers of ihc enterprises in the infclrlnal \ector in C h r
town have to take neceswry \teps t o redocc the w(3rl;ing h o u n per day.
They have to adopt the provi\io~ls in the r.onccrnr.d Arts. T k govcrnmmt
officials who are concerned with the supr\,i \ ion of working houn of the
worker should enforce strictly the pmvisions of the ronccrned Acts. They
should direct the owners or mnilagen of the c.ntcrpriscs not to mgage the
workers beyond the normal hour3 per day.
7. Labour Inspector should see that the workers should he given at least one
holiday per week.
8. Since some of the workers felt that their uvorking are very poor.
it is the responsibility of the enterprises to improve the working conditions
of the workers. Betterment of the working conditions of the workcrs is
beneficial to both owners of the enterprises and the workers. Better
worlung conditions improve the productivity of' thc workers. quality of' the
output and reduces the cost of production and belling price. The reduction
in selling price with an improved quality is beneficially t o the consunwrs.
9. Since no worker is a member of a trade union, i t is essential t o f<)rm trade
unions, one for the workers in shops and estahli\hments rlnd the second for
the workers in small scale industrial units in Gudur town. Promotion of
trade unions improves the bargaining capacity of thc workers with their
employers with regard to remuneration. working conditions. fringe
benefits. social security, participative management and settlement of
industrial disputes.
10. Since 35 percent of the worken we living in rellted houws. it-is desinbk
to give importance to the workers in the informal sector in Gudur town in
the allotment of pakta houses hv tk go\emlncnt. hlost of these workers
are belonging to economically poor sections of the scriety.
I I . High rate of labour turnover is not desirable in the intrrrst of enterprises
in the informal sector. Enterprises should try to kccp the workon for a
long time with financial and non tinancial knclits. Loss of an
experienced and skilled person hampers the efficierlcy and effectiveness of
the enterprises.
12. Since the mode of transport in !he case of mi!jori~y of workcrs is walk. i~ is
desirable to arrange loans to the workers to buy hicyc1t.s and mopeds. The
loans may be given with the reasonably low ratc of intercst and payilhlc on
instaltment basis. The amount of installment may he deducted fmm the
monthly salary of the worker.
1 3. Since many of the workers are not paid n~inimuni wages, the povcrnment
authorities should see that minimum wages will be paid ta the workers in
informal sector in Gudur town.
14. There is an urgent need to insritutionalise the credit structure of workers in
the informal sector in Gudur town. It i s essential lo advice the workers to
borrow at lower rates of interest from the organised institutionalist sources
of credit to reduce the cost of credit.
15. Since 40 percent of the households of workers in informal scclor in Ciudur
town are helow the poverty line. \lep\ \hould be taken to increase the
remuneration at least on par with minimum wage\ a4 per minimum uagcs
Act and to provide econon~ic occupations to the Pamilv members of the
workers. They should be, given an upp>nunitv to henetit S ~ l m p)\.cnY
in Gudur town which are helo\r poverty line should k given an
opportunity lo benefit from public distribution s-ys~en~. The children of the
workers in the informal sector should he hrought under free education
system.
16.There is an urgent need to promote two Multipurpose C'o-oprarive
Societies in Gudur town - One for the workers in the shops and
establishments and the second tbr workers in small scale industrial units.
These societies should he in a position to supply credit required and all
essential commodities.
I7.The Government of India niay fi)rnlulatc an Act incorporating the
measures suggested by the National Commission for Entcrpriscs in thc
Unorganised Sector which are incorporated in the Unorgnnised Sector
Workers' Social Security Bill. 2005.
The social security package for the worker\ should comprise of a
National Minimum Social Security Cover comprising of (a? old apc 'pension
for workers above the age of 60 years. (h) health insurance for self. spouse
and children below the age of 18 years. (c) maternity benefits for women
workers or spouse of men workers and (d) insurance to cover death and
disability arising out of accidents. The Central Government \hould create a
National Social Security Fund for these p u r p ) ~ \ . It \hould alu) create an
elaborate institutional setup for the purpose of i t \ irnplcmcntation. Thc
government should also give altmlion to the hr.~cn)geneous scxial swuflt?.
needs of workers in the unors~nised sector or infc)r~nal sector.
C. Hypotheses that are Rejected: .
1. Immigrants are more in number in the case of ivorkcrs in the informal
sector in ~ u d u r town.
2. Majority of the workers in the informal sector in Gudur town do nor have
job satisfaction.
3. Earning members are more in number compared to non-earning
members(dependants) in the household of workcrs in informal sector in
Gudur town.
4. There is no correlation between family size and household income.
5. There is no correlation between literacy levcl and household income of' the
workers.
6. There is no correlation ktwcen the level of income and the levcl of
expenditure.
7. Majority of the households of workers in informal sectar in Gudur town
are below the poverty line.
D. Hypotheses that are Accepted:
I . The share of non-institutional sourcea(unorganised sector) in thc dehl
outstanding of the workers i \ greater than thc \haw of institutional sources
of debt..
E. Scope for further Research:
It is rather hazardous rin the hiisis of ;l IimireJ in\*csrigcltion such as thc
present one to arrive at a set of policy i~iiphc;itions. . h.101-c ii11~1 n10rc e~npiriciil
investigations with a greater menhurt. of aophistici~tion of concel>t and t c ~ l s
are needed to establish the datahr~at* of' thc infortiiril sector on the tirm ftwtinp.
There are many more to be explored. analysed and rCstcd to provide a solid
base for the urban informal sector po1ic.y fhrniulation in nicetinp the urgent
needs of growth with social justice in India. The future study n u y include
unregistered establishments under shops and establishments Act 1988 and
unregistered small scale industrial unirs with District Industries Ccntrc. A
comparison may be made betwt.cn rcgistcred and unrcgistcred units in t h ~
informal sector.