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What's the article about?
- It talks about the Rajashtan State Government's efforts to regulate the gig economy in the state in order to extend the benefits of social security to gig workers.
Relevance:
- GS3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment;
- Prelims
Context:
- The informal job sector is very large in India. Due to lack of reliable data, the regulatory bodies fail to extend the social security benefits to such informal workers.
- But there is a way out. The formation of voluntary Welfare Boards by such workers. For example, the Construction Workers Board in india.
- These boards are recognised by both government and the contractors as well as by workers. They help to extend the benefits of social security to such informal workers.
- Now, in 2020 the Union government has enacted the Social Security Code (SS Code).
- Under this state governments are required to promote such boards for various economies such as the gig economy.
- In order to pursue this, the Rajasthan government is going to form the Rajasthan Platform-based Gig Workers Welfare Board.
What is Social Security Code (SS Code) 2020?
- The Code aims to regulate the organized/unorganized (or any other) sectors and extend social security benefits, during sickness, maternity, disability, etc. to all employees and workers across different organizations.
- The SS Code 2020 subsumes nine regulations relating to social security, retirement and employee benefits.
- The Code has widened coverage by including the unorganised sector, fixed term employees and gig workers, platform workers, inter-state migrant workers in addition to contract employees.
- The Code applies to everyone on wages in an establishment, irrespective of occupation.
Rules to implement this code will be passed by the respective state governments.
Gig economy and gig workers:
- A gig economy is a labour market that relies heavily on temporary and part-time positions filled by independent contractors and freelancers rather than full-time permanent employees.
- Gig workers gain flexibility and independence but little or no job security. Many employers save money by avoiding paying benefits such as health coverage and paid vacation time. Others pay for some benefits to gig workers but outsource the benefits programs and other management tasks to external agencies.
Analysis:
- Since Independence, construction workers, dock workers, and head loaders have had boards set up for their well-being.
- Thus, the Rajasthan Platform-based Gig Workers Welfare Board will be a familiar institution that can be used to serve the needs of a technology-mediated workforce.
- The board, a tripartite institution with representatives from bureaucracy, employers or clients, and workers’ unions or associations, exists as a workaround to what is otherwise embedded in formal employment.
- In the latter, an employment contract and contributory worker benefits bring together worker, state and employer in conversation with each other.
- This relationship is meant to ensure quick communication in moments of failure where workers or employers do not get their due, and enable better communication between the parties.
- In sectors that have more informal workers, there is no ‘straightforward’ way to deliver benefits since on-paper employment relationships are missing.
- Therefore, the state also does not ‘find’ workers at work to give them benefits. The tripartite relationship has to be built to force employers to acknowledge that they have informal workers; for workers to collectivise to bring a common voice to their concerns; and for the state to liaise and mediate this relationship.
- The Rajasthan Platform-based Gig Workers Welfare Board aims to deliver social security benefits to between three to four lakh workers in the State but is tied down in what kind of schemes and programmes it can set up.
- The Code on Social Security gives State labour ministries the mandate of choosing from a narrow bouquet of programmes on provident fund, employment injury benefit, housing, educational schemes for children of workers, skill upgrading and funeral assistance.
- Key protection schemes such as life and disability cover, health and maternity benefits, old age protection and education will only be started and funded by the central government, which can decide which States will get these central schemes, their duration and what kind of gig and platform worker will be eligible for schemes and programmes. This restriction could be further exacerbated by a lack or shortage of funding.
- To address this, the code mandates platforms to share 1%-2% of their revenue for these new schemes, answering a key question for central and State governments as to who pays for gig and platform worker protections.
Way Forward:
- Worker boards in India have been thought of as a way to build long-term relationships between workers and the state apart from their more operational role in creating a tripartite forum and implementing schemes.
- Nonetheless, the initiation of the board is a big win for platform workers and unions who/which have been fighting to get their issues heard.
