intconf2023

The main theme of the Conference:

Structural Transformation and Indian Labour Market

Sub-themes: 

1. Labour Regulation in India
2. Formalizing the Informal 
3. Decent Work Deficit 
4. The State of Social Security 
5. Industrial Relations Scenario 
6. Occupational Safety Health & Working Conditions 
    

Concept Note

Structural transformation refers to the process by which an economy shifts from being primarily agricultural to being primarily industrial or service-based. This process typically involves a shift in employment patterns from agriculture to non-agricultural sectors. In the context of India, the process of structural transformation has been accompanied by significant changes in the labour market.

Historically, India's labour market has been characterized by a large informal sector, low wages, and limited social protection. However, with the ongoing process of structural transformation, there have been significant changes in the labour market. These changes include a shift away from agriculture towards manufacturing and services, increased formalization of the labour market, and a rise in wages.

One of the key challenges facing the Indian labour market is the issue of job creation. Despite strong economic growth in recent years, job creation has been limited, particularly in the formal sector. This has resulted in a situation where a large share of the workforce remains in low-paying and insecure jobs in the informal sector.

Another key challenge is the issue of labour market regulations. While labour regulations are intended to protect workers, they can also act as a barrier to job creation and formalization. In particular, rigid labour regulations can discourage firms from hiring new workers and can make it difficult for firms to adjust to changing market conditions.

To address these challenges, policymakers in India will need to focus on creating an enabling environment for job creation and formalization. This will require a focus on reducing the barriers to entry for new firms, improving the ease of doing business, and streamlining labour regulations. Additionally, there is a need to invest in human capital and skills development to ensure that workers are equipped with the skills needed to succeed in the evolving labour market.
 

Labour Regulation in India

Streamlining labour regulation means simplifying and making the rules governing employment and the workplace more efficient and effective. This can involve reducing bureaucratic procedures and paperwork, eliminating unnecessary regulations, and making it easier for employers and employees to understand and comply with labour laws.

The purpose of streamlining labour regulation is to promote economic growth and job creation by reducing the burden on businesses, while still ensuring that workers' rights and safety are protected. By making it easier for businesses to hire, manage, and compensate their employees, labour regulation streamlining can encourage entrepreneurship and innovation, and lead to a more dynamic and competitive economy.

However, it is important to note that labour regulation streamlining should not come at the expense of workers' rights and protections. It is crucial to strike a balance between promoting business growth and protecting workers from exploitation and abuse.

The size of a unit and labour law applicability are related in India as well. The applicability of labour laws in India varies depending on the size of the establishment or unit, and the number of employees it has. The labour laws and regulations applicable to a business may also depend on the nature of the industry in which it operates.

For example, under the Industrial Employment (Standing Orders) Act 1946, establishments with 100 or more employees are required to frame and adopt standing orders governing the conditions of employment. Similarly, the Factories Act, of 1948, which regulates the health, safety, and welfare of workers in factories, applies to factories employing 10 or more workers with the aid of power and 20 or more workers without the aid of power.

Other labour laws in India, such as the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and the Employees' State Insurance Act, 1948, have thresholds based on the number of employees. For example, the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies to establishments employing 20 or more employees, while the Employees' State Insurance Act, 1948 applies to establishments employing 10 or more employees in certain geographical areas.

The minimum wage in India varies by state and sector and is periodically revised by the respective state governments. In 2021, the central government revised the minimum wage for unskilled workers in the central sphere to Rs 350 ($4.69) per day.

The average wage in India varies widely by sector, occupation, and location. According to the latest available data from the National Statistical Office (NSO), the average monthly wage in India was Rs 12,297 ($165) in 2017-18. However, these average masks significant differences between formal and informal sector wages, and between urban and rural areas.

Overall, India's labour market and wage scenario is complex and diverse, with significant challenges in terms of informal employment, low wages, and weak enforcement of labour laws.
It is important for businesses in India to stay informed about the labour laws and regulations that apply to them, as non-compliance can lead to penalties, fines, and legal disputes.
 

Formalizing the Informal 

Formalizing informal labour is highly relevant in today's India. India has a large informal sector that employs a significant portion of the population. According to the International Labour Organization (ILO), more than 80% of workers in India are employed in the informal sector. However, informal workers often face poor working conditions, low wages, and limited social protection.

Formalizing informal labour can provide many benefits, both for workers and the economy as a whole. By formalizing the informal sector, workers can receive better wages, working conditions, and benefits such as health insurance and social security. Formalizing the sector can also lead to increased productivity, as workers receive training and access to new technologies. Formalization can also help reduce poverty and income inequality, as workers earn more money and have access to social protection.

Formalizing the informal sector can also benefit the government and the economy. Formal workers pay taxes, which can help increase government revenue. Formalizing the sector can also lead to increased economic growth, as formal businesses are more likely to invest in new technologies and expand their operations.

However, formalizing informal labour is not an easy task. Many informal workers do not have the necessary skills and education to work in formal jobs. The cost of formalizing the sector can also be high for small businesses. Additionally, many informal workers prefer to work in the informal sector, as it provides them with flexibility and autonomy.

Despite these challenges, formalizing the informal sector is a crucial step towards creating a more inclusive and sustainable economy in India. It requires a multi-faceted approach, including providing education and training to informal workers, reducing the costs of formalization for small businesses, and creating an enabling environment for formal businesses to thrive.
 

Decent Work Deficit 

There is a significant decent work gap in today's India. While India has made significant progress in reducing poverty and increasing employment in recent years, many workers still face poor working conditions, low wages, and limited social protection.

Formal sector workers in India also face challenges, including long working hours, low wages, and poor working conditions. According to a report by the Centre for Monitoring Indian Economy (CMIE), the average daily wage for a worker in India was Rs 400 (approximately $5.40) in 2020, which is below the minimum wage in many Indian states.

Moreover, women and marginalized groups such as Dalits and tribal communities face significant barriers to accessing decent work in India. They often experience discrimination in hiring, lower wages, and limited opportunities for advancement.

While India has made progress in reducing poverty and increasing employment, there is still a significant decent work gap that needs to be addressed. Addressing this gap requires a multi-faceted approach, including formalizing the informal sector, improving working conditions, and ensuring equal opportunities for all workers.
 

The State of Social Security 

Employees' Provident Fund Organization (EPFO) is a government agency that manages the Employees' Provident Fund (EPF) scheme, which is a mandatory retirement savings program for most Indian workers in the organized sector. The EPF provides social security benefits to workers in the form of retirement benefits, disability benefits, and death benefits.

In addition to the EPF, the government of India has also launched various other social security schemes such as the Employees' State Insurance (ESI) scheme, the National Pension System (NPS), and the Pradhan Mantri Suraksha Bima Yojana (PMSBY) to provide health and life insurance cover to workers.

However, it is important to note that many workers in the unorganized sector, including agricultural and domestic workers, do not have access to social security benefits. The government has launched various programs to extend social security benefits to these workers, but the coverage is still limited.

The formal sector in India is governed by various labour laws and regulations, which provide for minimum wages, working conditions, and other labour standards. However, implementation and enforcement of these laws can be weak in practice, particularly in the informal sector where workers often face exploitative working conditions and low wages.
 

Industrial Relation Scenario

The state of industrial relations in India is characterized by a complex web of laws and regulations, varying practices across different industries and regions, and a history of conflict between employers and workers.
India has a number of laws governing industrial relations, including the Industrial Disputes Act, the Trade Unions Act, and the Industrial Employment (Standing Orders) Act, among others. These laws provide for collective bargaining, dispute resolution mechanisms, and protection for workers against unfair labour practices.

However, implementation and enforcement of these laws can be weak in practice, particularly in the informal sector where workers often have limited bargaining power and may not have access to legal remedies. This can lead to exploitative working conditions, low wages, and a lack of job security for workers.

There is also a history of conflict between employers and workers in India, with frequent strikes and protests by workers over issues such as wage levels, working conditions, and job security. While the right to strike is recognized under Indian law, frequent disruptions to production can have negative effects on the economy and lead to a loss of investor confidence.

Overall, the state of industrial relations in India is complex and challenging, with significant disparities across industries and regions. Efforts to improve industrial relations in India will require a combination of legal reforms, greater enforcement of labour laws, and greater engagement between employers and workers.
 

Occupational Safety Health & Working Conditions

Occupational safety and health (OSH) in India are an area of concern due to the high incidence of workplace accidents and occupational diseases. The country has a large and diverse workforce, and many workers are employed in hazardous and high-risk occupations such as construction, mining, and manufacturing.

India has a number of laws and regulations governing OSH, including the Factories Act, the Mines Act, and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, among others. These laws provide for the regulation and inspection of workplaces, the provision of safety equipment and training for workers, and compensation for occupational injuries and diseases.

However, enforcement of these laws can be weak in practice, particularly in the informal sector where workers may not have access to adequate safety equipment or training. The lack of effective enforcement mechanisms can lead to a high incidence of workplace accidents and occupational diseases.

According to the latest available data from the National Crime Records Bureau (NCRB), a total of 5,638 work-related accidents were reported in India in 2019, resulting in 5,735 deaths. However, this figure is believed to be an underestimate due to underreporting of accidents and injuries.

Overall, the state of OSH in India is a matter of concern, and efforts to improve OSH will require a combination of legal reforms, greater enforcement of OSH laws, and greater investment in safety equipment and training for workers. 
 

Brief Structure of the Conference

There will be one technical session on each of the six sub-themes. Three papers will be presented at each technical session with one keynote address.

In addition, there will be Inaugural and Valedictory Sessions with Key-note addresses. Altogether, there will be 8 Key-notes and 18 Papers.

For further details, you may kindly write to: 

• Prof. Kingshuk Sarkar (kingshuk[at]gim.ac.in )
• Prof. Sebastian Morris (morris[at]gim.ac.in )
• Ms. Bernice de Souza (bernice[at]gim.ac.in )

The Centre for Public Policy and Governance

The Centre for Public Policy and Governance (CPPG) is one of the new initiatives of the Goa Institute of Management (GIM) and has the objective of generating and leading intellectual capital and experience to inform public policy making and governance in India and in emerging economies. The Centre attempts to explore and understand the links between the fields of management, administration, and public policy. Its philosophy is predicated on the belief that effective public policy is always deeply contextualized. The Centre aims to serve as a platform to enable discussion and analysis of public policies and their implementation. 

Location of the Conference:

Goa Institute of Management
Near Ravindra Bhavan, Sanquelim, Poriem, Goa 403505, India
https://goo.gl/maps/YUuH9kV6GcMaHS9r7