Current Contour of India’s Working Class

(This study was put together by a team of New Democracy. - Editor)

Introduction:
The contour and situation of India's working class in the 2020s is very different from what it
was in 1978, when IFTU was established as a revolutionary trade union Centre and its first
Conference held at Guwahati.
The predominant nature of employment was regular/permanent in the public sector,
Government sector (govt. employees, railways, P&T, Port & Dock workers) and in the large
private sector enterprises of big comprador houses and even in big and medium units of
MSMEs in private sector.
In practice, the reformist trade union centres had well imitated reactionary trade union
centres in legalism, economism and in limiting the world view of the working class. They
were already backing away from militant struggles.
The world view or outlook imparted to the working class organized under the reformist
centres, or to those following the Revisionist parties they are linked with, was essentially
restricted to seeking changes within status quo (or within the system). In the course of
functioning, to keep their hold on their base, the reformist trade unions also had taken some
militant movements, but such struggles were not the main trend at the time of formation of
the revolutionary trade union centre.
The task taken up by the team is to describe and also try to back by data the contour of the
working class of India today; i.e. more than 40 years later. But in practice are being
described the changes in working class of India that have gradually taken place over years
by taking 1980s as the cut off period.
The major dividing line should be placed in the decade of the 1980s, leading to the launching
of the neoliberal ‘New Economic Policies’. It is their implementation, resisted by the working
class of India to differing extents that has shaped the class as it stands today and also
thereby shapes the tasks.
Background to the changes in working class – Chief International and National Features
In 1981, India took the first tranche of an IMF loan. In the backdrop was the collapse of
socialist China, the crisis within Soviet Social Imperialism which would lead to its eventual
breakup and the aggressive drive of western imperialism to extend tentacles. In complying
with the conditions for ‘structural adjustments’ strung with this loan, there began
retrenchments in the name of computerization and some move to prune public sector
workforce. With the breakup of Soviet Social Imperialism in 1991, western imperialists led by
US imperialism moved further more decisively to enforce a neoliberal world order through,
on the one hand, pushing forward the structural adjustment programme (SAP) and LPG
prescription for loan from WB, IMF. On the other, they moved to push through a world trade
order allowing free movement of capital and maximum repatriation of profits by them.
Opening up of all sectors would enhance super profits.
India’s ruling classes had taken the first tranche of the IMF loan from western lending
agencies post the 1971 war and in the pre 1982 Asian Games period. Loan was also taken
from Asian Development Bank in 1986. But it is with Narasimha Rao as PM and Manmohan
Singh as Finance Minister that the ‘new economic policies’ were brought in to implement the
vision of LPG. These ‘new’ policies were to be implemented in two stages, the second would
involve opening up to financial sector and also all services.
In India’s ruling classes, there is agreement on the implementation of NEP; there are
however differences on the speed, on the extent, on whether concurrent welfare measures
should be given to poorest sections so as to ‘manage’ potential dissent and other aspects.
Fight back by people also influences the positions of these parties and the abilities of Govts.
Thus while the thrust of policies was to hand over forest land to Corporate, the UPA Govt.
was forced to enact the LAAR 2013 by the strength of the fight back.
In line with the thrust of imperialism worldwide and also of the LPG policies being
implemented by India’s ruling classes, the steady move is to take away the legal rights of
working class; to push all jobs towards impermanence; depress wages; take away right to
unionize, to protest, to strike, so that super profits could be enriched. It is also true that these
attacks on India’s working class are part of world-wide increasing attacks on working class.
This is overall threefold:
1. Ideological disarming and attack due to collapse of socialist centres on a working class
already on the defensive on its world view due to restoration of capitalism in all erstwhile
socialist countries.
2. Attack on wages, permanency.
3. Attack on social security extended to working class post formation of Soviet Union.
In the description of changes in last 35 years in working class sector, the role of the
revolutionary and militant trade unions need also be evaluated. Despite a large unorganized
workforce, despite disillusionment of workers with reactionary and reformist unions, the
revolutionary trade union movement could not meet the challenge to reverse the trend of de-
unionization, nor to organize the unorganized workers in a big way nor build wide major
movements in significantly large sections. This has to do mainly with weakness of emphasis,
poor allotment of cadre with vision and also competence, weakness in spirit of sacrifice with
dedication to the Class and willingness to stay among workers and organize. The divisions in
the relatively smaller revolutionary trade movement also contributed to this.
Additionally, despite their relatively better strength, the reformist and reactionary unions also
did not organize workers to fight all out against the new attacks. Reformists have ensured
that working class’ fight back to ‘new’ economic policies remains overall token, as the
Revisionists also are in agreement with the direction of new economic policies. The outlook
of the working class was thus stunted, and this led to failure in the main to adequately fight
back against attacks on permanency of employment. The restricted world view of working
class ensured that when contract work force started getting employed in govt. and PSU
sectors etc, the unionized workforce did not include this section into their own unions. The
corrosion of class outlook has had the natural results.
Only few aspects are being recorded to just highlight the points and rekindle memories. In
the early 1990s, when ruling classes realized that forcibly terminating permanent workers to
trim regular workforce would lead to reaction, VRS was offered to public sector workers. In
our organ of those years, we had quoted the newspaper of a reformist union, which mocked
revolutionaries for objecting to VRS policy “while the workers went laughing all the way to
the bank”. However revolutionary and militant unions did not develop their mass base
enough to challenge this process. When slow contractualization began without disturbing
existing jobs, as mentioned in the previous paragraph, the growing number of impermanent
workers was not unionized in the existing unions and there was no demand that rights and
privileges be extended to them too. As all permanent recruitment dried up in government,
PSUs and big private sector over the years, huge sections of this workforce is impermanent,
divided from permanent workforce and largely un-unionized. In govt. employees, D category
has been abolished, whole sections in C category are impermanent workers, and attacks on
A and B have now commenced using compulsory retirement, lateral appointments, etc.
The revolutionary trade union centres taken along with militant trade union centres, as a
whole, are small. It is a divided force, but still remains the source of hope for the working
class of India. However, it must face that despite over 40 years of existence, it was not able
to meet the need of India's working class for providing the centre of a concerted fightback to
attacks.
Some comment on few other changes
(1) While in last 35 years, imperialist countries have off loaded industrial production to
developing countries, in India they are not directly into production sector in big way. They are
present in garments, in automobiles, cement to an extent, and in IT sector. In India the
comprador corporate and the Govt. itself are the major even if indirect employers.
(2) While there is some increase in numbers of the work force over so many years, one
quality is shift of working class numbers away from organized and into unorganized sectors,
and another is fall in unionized workforce, though overall unionization was never very high.
(3) New sectors have come up due to development of service sector, and also
informalization of work (e.g. ‘gig’ workers do what regular workers would do earlier, or
“AASHA’ substitutes regular MCH services) by giving impermanent workers new names and
doing away with rights.
(4) Strong trend towards de-unionization due to frustration of erstwhile unionized workers
with their unions which could not / did not defend rights, failure of militant unions to rise to
occasion and due to the reformist unions keeping fight backs carefully token to frustrate
workers (see example of fight against 4 labour codes) into thinking the struggles are useless
and futile. A second aspect is that impermanent workers are simply terminated if they go for
unionization while labour law implementation machinery does not actively uphold their legal
rights. Thus, actually a very small percentage of India’s working class is unionized. The rise
in figures of unionization submitted by major TU centres is because they include MGNREGA
and agricultural labourers.
(5) There is an army of unemployed in India, the ‘reserve labour force’ which helps keep
bargaining power down.
(6) The SEZ areas – areas where the labour law of the land did not apply – were born in
this period and are described.
(7) Breakup or Fragmentation of industrial production is a feature of this period and has
speeded up over the years – e.g. in automobiles (main plants and ancillary sections) and
also in other sectors. The textile sector, which employed a huge workforce, is dispersed into
power looms in small units while the garment industry has expanded.
(8) Child labour in carpets, fire work production, beedi and cigar industries, has been
mostly officially replaced by adult workers. However child labour flourishes in unorganized
sector. The amendments made in the Act by the Modi Govt in the name of helping in family
enterprises, furthers child labour exploitation.
In conclusion of this Introduction, it is necessary to keep in mind that
a) It is the workers in the manufacturing sector (which also means the contractual workforce
in the PSUs and the big private sector companies) which are the sections of working class
doing actual production of goods.
(b) The task before trade unions is of unionizing the vast sections of India’s workforce.
Current situation of working class :
Some general facts are being recorded with descriptions of some sectors. The data can be
added to, refined, but the trends remain as identified broadly up to now. Cursory check of
actual figures shows they are quite weak, but trends will be correct. This is also because old
data collection methods have changed, and there are now many sources online offering
data, but mostly it is difficult to verify. The interests of the private agencies collecting the data
also have reflections.
Data from RBI Publications:
In 1970-80 FYs (Financial Years) Industry contributed 28.7% to GDP and Services
contributed 52.7%
In 1990-2000 FYs Industry contributed 27.6% to GDP and Services contributed 57.6%
In 2019 FY (last pre pandemic year) the figures are 24.18% and 59.14%.
According to CMIE (Centre for Monitoring Indian Economy) labour force in India (agri-non-
agri) in April 2022 – 437.2 million
In 2020 the Total work force of India was placed at 501 million
According to 2011 census, the total work force was 474 million of this 211 million was non-
agricultural.
94% of the workforce is unorganized sector.
Half the unorganized sector is unemployed.
Total non-agricultural work force in 1971 census – 189,000,0 00
Total non-agricultural work force in 1981 census – 224,604,000
How terminology has been used in this particular article is:
Formal Employment: is termed as employment where the worker has a written contract (also
described as ‘hired under established working agreement with salary’), is granted paid leave
and has access to social security in a licensed organization.
(A more detailed version is worker hired under established working agreement, salary,
health benefits, defined work hours and whole days in a licensed organization which is
paying taxes).
Informal worker is one who works with no established agreement.
Organized sector or establishment is one which is registered with the Govt., where the terms
of employment are regular and which follows laws.
Alternatively, it is defined as one registered with the Govt., has assured work and offers
formal employment.
The unorganized Sector is one not registered, not governed by rules and regulations laid
down by the Govt. regarding the conditions of employment.
Some General Figures (most of the following have been drawn from online sites which are
commonly referred to) of relevance are:
a). According to the WB (Collection of Development Indicators), Manufacturing sector-has
sharply declined in India over the past five years, being 30% of employment in 2016 – 17
and 21% of all employment in 2020-21. This is an important fact and reflects both higher
level of technological development and also stagnating demand.
b). Of regular wage / salaried employees in non-agricultural sector 71% have no written
contract (2017-18)
This figure was 59% in 2004-05.
Those with no-paid leave increased from 46% to 54% in the same period (2004-05 to 2017-
18).
49.6% had no social security in 2017-18.
c). Factory size data by number of workers shows that the largest number of factories had 0
– 14 workers.
Less than 10% factories had 100 – 199 workers.
81% of factories employed less than 100 workers.
Having placed all this data, the doubt should remain about absolute figure. Delhi has
numerous private industrial sectors (officially 29 now, big and small) which used to be
manufacturing units to a large extent though that has changed now. The Chief Factory
Inspector of Delhi says that the last data of the Govt. is of 8,000 units in Delhi and that there
is no figure of the approximate number of workers.
The 8 ‘core sectors’ of Industry, which make of 40.27% of the Index of Industrial Production
(IPP) and are the leading indicators of Industrial Activity are
Coal 2. Crude 3. Natural Gas 4. Refining 5. Fertilizers 6. Steel 7.
Cement 8. Power.
According to the Economic Times (online Dec. 2021) India’s Formal Sector Employment was
31.4 million in Dec 2021. Last comparable data found is of Economic Census 2013-14 which
puts the number at 23.7 million. ‘Formal Employment’ is counted in 9 sectors.
According to Labour Bureau figures for Organized Sector, in October 2021
(Updated Survey)
Sector No. of workers in Million
Manufacturing 12.5 million
Education 6.7 million
Health 2.6 million
IT / BPOs 2.1 million
Trade 2.0 million
Transport 1.3 million
Financial Services 1.8 million
Restaurants / Hospitality 0.9 million
Construction 0.7 million
This is 30.6 million workers.
Though construction is supposed to be a largest rural employer after agriculture, this is not
so in the organized space; Education is much higher as teachers are on pay rolls.
Figures in ET (28th April 2022)
Of the 34.1 million workers in formal employment, the distribution is
Manufacturing 39.4% of this number
Education 22.1% of this number
IT / BPOs 11% of this number
Health 10.4% of this number
Trade 5.3% of this number
Transport 4.2% of this number
(Rest form the others).
According to the Labour Bureau Oct 2021, women are a third of organized employment.
Share of women (%) in organized Sector workforce
2017 2021
Manufacturing 18.7% 21.4%
Construction 15.3% 22.5%
Trade 18.2% 21.4%
Transport 11.4% 15%
Education 49% 44.1%
Health 48.2% 40%
Restaurants etc 15.6% 23.1%
IT / BPOs 31.3% 31.8%
A Study of Working Class in Various Sectors
The growth of impermanent employment has occurred in Core Sectors, in Govt.
Employment, and is the standard in all newly named and / or emerging sectors.
‘Impermanent’ Employment covers contract, causal, daily wage, out sourced, voluntary,
honorary, gig workers and also any other such new category.
Workers In CPSUs (Data Source ‘Money Control’ site 18th August 2021).
The PSUs were set up using public money, but represent state capitalism dependent on
imperialism and serving interests of private sector too.
Share of non-permanent workers in CPSUs has rapidly increased since 2015-16 after
vigorous VRS was offered and accepted by many employees (similar vigorous VRS was
offered in 1990s. In fact all trends mentioned below have been on since 1990s though data
here is mainly of later decades).
Between 2015-16 and 2019-20, No. of casual and daily wages workers in this Sector
increased 178 %; No. of Contractual workers and employees increased by 86%
“Documents published by the Central Govt.” (Money Control as above) show that non-
permanent workers accounted for 37% manpower in CPSEs in 2019 – 20 compared to 19%
in 2015-16.
Number of permanent employees shrank by 25% in this period. Fresh permanent
recruitments are not being undertaken for employees’ posts in PSUs.
In absolute numbers, the number of regular employees in PSUs stood at under 10 lakh at
close of 2019-20 financial year from 12.34 lakh in financial year 2015-16. However, the
number of CPSEs including those under construction, has risen from 327 to 366. Now all
PSUs are up for privatization or closure.
Public Enterprises Survey Showed that in 2019-20: There were 53,127 working as daily
wage / casual workers on 31st March 2020 while 19,103 worked as daily wage / casual
workers at end of March 2016.
In the same period, contractual workers increased from 2,67,929 to 4,98,807 (ie. by over two
lakhs).
Factors in decreasing permanent work force are:
1. All vacant posts and those falling vacant due to retirement are being filled by temporary
workforce.
2. Since 1998, CPSEs have been running VRS schemes. In all 6.3 lakh workers (including
redundant due to automation, clerical staff) opted for VRS since then. Of these, over 2 lakhs
options are after the scheme was modified in 2000.
3. Closure of sick PSEs also contributed.
Meanwhile, the average pay of regular employees has increased more than 40% since
2015-16. However, the workforce in the CPSUs now has the following structure-
Total workers (2015-16) (2019-20)
12,33,618 (regular) 9,21,876 (regular)
19,103 (casual) 53,127 (casual)
2,67,929 (contract) 4,98,807 (contract)
------------- --------------
Totals are 15,20,650 workers 14,73,810 workers

Regular Employees & Rise of Temporary Workers

Year Regular Causal Contract
2013-14 13,51,306 30,176 3,08,719
2014-15 12,91,174 21,086 2,74,889
2015-16 12,33,618 19,103 2,67,929
2016-17 11,30,840 54,225 3,38,521
2017-18 10,88,140 40,060 3,38,494
2018-19 10,32,846 30,901 4,50,317
2019-20 9,21,876 53,127 4,98,807
Thus, 46,840 jobs decreased overall, both due to slowing down of sectors and also because
workload and hours of work of non-permanent staff is more than of permanent work force.
Casual and Contract Workers in Various Sectors:
Public Enterprise Survey of 2019-20 shows that highest number of casual and contractual
workers is in petroleum sector. Mining and Engineering PSUs also have large number.
Largest oil marketing PSU (IOC) - 73,070 Contract (Impermanent) workers and employees
at end of March 2020 (69% of total manpower)
Hindustan Petroleum Corporation (HPC) - 43,397 impermanent (which is 81% of total
manpower of 52,108 workers at end of March 2020)
*Bharat Petroleum Corporation (BPC) - 79% worker impermanent (total worker 40,172 at
End of March 2020)
(*=Earmarked for privatization)
ONGC (oil and natural Gas commission) - 36% of 47,735 employees were contractual
(March 2020)
Many of the contractual workers in petroleum are in field operations. Overall workforce is
less than 2.5 lakhs.
Permanent workforce in all oil + gas companies decreased 14.65% in 16 years to 1,07,872
(2018) (ET Energy world)

Coal
Large number of casual and daily wage workers.
Northern Coal fields (Singrauli, Sonabhadra 63% are either casual or contract
(Has 10 ‘fully mechanized’ open cast mines.)
Mahanadi Coalfields (7 open cast 3 UG mines) 15,170 Casual, 18729 contractual (March
end 2020) i.e. 61% of total work force of 55,980
Other Mining: Hindustan Copper, Indian Rare Earth, National Alumina and NMDC all have
around 60 - 74% contractual workforce (March End 2020).
UCIL – Official = 4113 regular, 14 contract, 120 casual. In reality, the union leaders state
there are 700 to 800 contract and outsourcing workers.
Work force in mining in organized sector has dipped.
In 2016-17 - 1.4 million
In 2020-21 - 0.88 million which is a 38% decrease.
However with privatization of mining blocks and the corporate hunger for minerals as well as
widespread illegal mining, the actual workforce in mining, in practical terms the number of
impermanent and unrecorded workforce, is surely on the rise.

Steel:
SAIL (Steel Authority of India Ltd) - 48% of 1.34 lakh work force is contractual (March end
2020)
Rashtriya Ispat (RI) 51% of workforce contractual (March 2020)
Overall, steel sector has 2 lakhs directly employed, 6 lakh indirectly employed (March 2020)

Large Manufacturing PSUs:

BHEL (Bharat Heavy Engineering Ltd), Hindustan Aeronautical, BEML- in these the
proportion of contract/temporary workers is lower and was 28 – 39% of workforce in end
March 2020.
Cement
India is held to be world’s second largest producer of cement. As of 26th Feb 2020, cement
generated employment for over one million workers. Of total production capacity 98% lies
with private sector, rest with public (from ibef.org).
MNCs like Holcim – Lafarge (has taken over ACC and Gujarat Cement) Heidelberg and
Vicat handle 26% production. Holcim has however recently been bought by Adanis.
Cement is dominated by 20 companies which produce 70% of cement produced.
Private sector throughout country is going for increasing impermanence.
Fertilizers:
There are 23 PSE units of which 10 were shut, 7 were loss making and 6 profitable in 2015 –
16.
Sector is dominated by private and partnership industries.
Over all, the figure is one lakh twenty five thousand employed directly in organized sector
and 3 lakh get “indirect employment”.
Power:
Generation through PSUs has decreased since 2003 with 46% generation private, 30%
through State utilities and only 24% through central utilities. Transmission is largely govt.
controlled (State and Central) while distribution is state owned but in metros is privatized
(thus the last have public private partnerships).
The GOI statistics for NTPC show - 6762 permanent employees and zero
impermanent either as casual or contract.
Union leaders of NTPC say 70,000 contract workers work in the NTPCs. In NTPC
Ramagundem there are almost 3000 impermanent workers against around 300 permanent
and in NTPC Kehalgaon there is much the same situation with 450 permanent workers to
almost 5000 others.
Construction Sector:
According to the Periodic Survey Labour Force (report of 2021):
In Rural areas this is the second largest employment after Agriculture.
12% workers in Industry sector are in construction. It’s a prominent seasonal employer.
Employees in Real Estate and Construction.
FY 2017 69.1 millions
FY 2018 70.63 millions
FY 2019 62.18 millions
FY 2020 60.89 million (Covid year)
FY 2021 53.7 million (Covid year).
A very small percentage is in organized Sector.
Textiles:
This is a sector which has been reconstructed in the past 40 years. Earlier there were big
spinning mills and textile workers. Now production is broken up. This is overall supposed to
generate biggest employment after agriculture.
In 1974 - 124 mills were nationalized to form NTC
In 2000 - National Textile Policy – expanded private power looms; slow closure of NTC.
In 2010 - 2500 textile weaving factories, 4135 textile finishing factories.
In 2011 - 1946 cotton textile mills, 80% private.
Several thousand small factories with 3 – 10 power looms.
Pre 2019 – 1/3 spinning mills shut down – 2 lakh workers jobless. 605 closed in 2019 – 1.2
lakh jobs lost.
As per figures of 2021, 65% fibre used in Indian mills is cotton
Total employment – 18 million direct, 20 million indirect. This is 38 million (Indian
companies.in).
100% FDI allowed in this sector.
Garment section – 75% of factory based garment workers are women. Whole sector is
concentrated in three hubs – NCR, Bangalore, Tripur. Gender pay gap recorded as 34%. No
fair wages.
Bad conditions of work (forcible living in horrible ‘hostels’) Exploitation at workplace,
including sexual exploitation, which is major issue. Bathroom facilities are poor, both in living
spaces and in workspaces.
In many section, PF facilities extended.
Automotive Industry:
As per 2021 statistics, India’s automotive industry is the fourth largest in world. It contributes
8% to exports and 2.3% to GDP. Two wheelers, three wheelers, Four wheelers are
manufactured.
In 1970s and 80s – India’s comprador houses dominated, but now MNCs are also prominent
in this sector.
Japanese and Korean: Maruti, Honda, Toyota, Nissan
US & Europe: GM, Ford, Fiat.
In 2018, this sector employed 1.36 million workers. Society of Indian auto manufacturers
claims ‘our factories employ 3 lakh workers, component makers employ 5 million and
dealership under 3 million.
Direct and indirect motor sector employment including truckers who transport cars etc.
around country in supposed to be 37 million.
Robots are now being employed in MNCs for skilled work.
Contractual workforce, which is permanently impermanent (redeployment every 6 months
with no worker getting continuity in service) was the dominant employment along with
“apprentices” (who quickly become grossly underpaid workers). Now outsourced workers,
casual workers, also are significant.
IT & BPOs
This sector has an “export orientation” contributing 8% to GDP.
Overall estimated workforce of 2021 is 4.5 million workers.
Business Process management site gives figure of 5 million direct jobs in March 2022.
1.8 million women workers are estimated to work in this sector. There are six main firms.
Railways:
This has been and continues to be a huge employer in India in the face of ever expanding
railway sector. In March 2020 it was estimated to be the 8th largest employer in the world.
In 2015 (as per Business line, Dec. 2015) there were 13.34 lakh workers (regular of which
17,000 officers and 12.2 lakh ‘railway workers’ Rest paramedical and security) in this sector.
Statement in Parliament by Rail Minister (3rd Dec. 2021) claimed that in FY 2019-20 there
were 12.53 lakh regular employees and 2942 contractual employees.
He also said that some ‘time bound tasks’ were given on contract and these contract
workers are NOT the basis of absorption for regular workers. These are ‘short term
contracts’.
CAG Report (Reported in New Click 26th Jan 2919) says there are over 90,000 contractual
workers in various departments under Railways. Whole tasks are fully contractual -
mechanical, engineering, operation, commercial, administration, accounts, personnel,
medical safety. (These heads include total housekeeping, cleaning, training).
This CAG audit covered the period of three years i.e. 2014-15 FY to 2016-17 FY.
It said Railways had given 4430 contracts of which it reviewed 463. It noted that the workers
under these were denied ‘basic facilities’ like rest rooms, PF, drinking water facilities.
1970 – 71 - Regular employees 13.7 Lakh
1990 – 91 - Regular employees 16.5 lakh
2007 - Regular employees 14.0643 lakhs
2015 - Regular employees 13.34 lakhs
FY 2019-20 - Regular employees 12.53 lakhs
Thus, there is steady fall in regular employees, despite steady rise in railway operations.
CAG report ends in FY 2016-17 and shows 90,000 contractual. The impermanent work force
would be both larger and more variable now.
Following are figures from ‘Ministry of Railways’ site. Despite downsizing of regular railway
employees being done from Group A & B first as an ‘example’, main slash has been on
regular posts in D group.
FY2010 FY 1990-91 FYs 1970-79
Regular rail employees in thousand
Group A & B 16.9 14.3 8.1
Group D 235.9 746.1 782.9
Group C 1079.2 891.4 583.2
----------- ------------- ------------
1332.0 thousand 1651.8 thousand 1374.2 thousands
13.3 lakhs 16.5 lakhs 13.7 lakhs
MSME workers (Financial Express 16th March 2022 quoted the dates)
As per data with NSS, there were over 110 million (11 crore that is) workers in micro, small
and medium industries in 2015-16.
Gender breakup is 84 million male, 26 million female workers (less than third of men).
The sector wise breakup is 360.41 lakh are in manufacturing
387.18 lakh are in trade
362.22 lakh are in other services
0.07 lakh non captive electricity generation and transmission
1076.19 lakh workers were in micro sector
CII site clarifies that 99% MSMEs are micro.
51.2% MSMEs are situated in rural areas.
The Minister of State (Union Govt.) MSMEs, gave written answer in Parliament (quoted by
Bhanu Pratap in IE centre piece in June 2022).
Workers in this sector in FY 18 51,98,478
in FY 19 38,55,539
in FY 22 93,94,957
It appears that the answers pertain to MSMEs registered on ‘Udayan’ portal, or the figures
may be of MSMEs registered anywhere. In another reply (written) he also said that in FY 20
– 43,37,444 were employed in MSMEs, which is higher than the pre pandemic year and
which apparently increased 106% in FY 2021.
Currently 77.35 lakh MSMEs are registered on Udayan portal up from 25 lakh last year.
Jump could be because from July 2021, wholesalers and retailers also registered on the
same.
Factory workers.
The Editor of the Centre for Economic Data and Analysis wrote online on 15th July 2021, the
following comparative data.
In 2001-2002 the number of directly employed workers per factory was 36.3 while
contractual was 10.1.
In 2017-18, number of directly employed workers per factory came down to 32.7 workers
while contractual per factory rose to 18.7
This may be comparisons of official figures only because the situation is definitely more
acute.
The NSSO conducts an ‘Annual Survey of Industries’. This is a report by CDMA, which is
quoted earlier of the factory size data of 2017-18 as per number of workers.
The same study showed that in 2017-18, contract worker’s average daily earning (Rs. 275)
was 76% of a directly employed worker (Rs. 362). This may be in small establishments.
A similar study shows that share of employment in plants with more than 300 workers (new
cut off in IR Code)
Increased from 51.1 % to 55.3% between 2010-11 to 2014-15
And from 55.3% to 56.3% between 2014-15 – 2017
MIGRANT Workers Profile
Migrant workers include external migrants outside the country and internal migrants. Internal
migrants are agricultural labour, construction workers and also both impermanent and
permanent workers working in private sector, living in jhuggies or rentals, often with families
but attached to agricultural activities and with social life primarily in the village.
Total internal migrants in India as per 2011 census was 45.36 crores, but in this data are
included not just work force, but migration for any reason. Women leaving their natal homes
for marriage are also counted in this data.
The Govt. figure for migrants who walked during the lockdown is 10 million. There is no real
reason why this figure is correct as there was no evidence that any count was being kept.
Economic survey of 2016 pegged the size of migrant workforce at roughly 20% of the
population.
There cannot actually be a statement like ‘organize the migrants’ as these are workers
spread into all sorts of sectors. What is very necessary is that unions in various sectors
recognize the migrant workers and identify and take up their issues. The Govt.’s ‘e-shram’
portal move however pretends to do just this – give “social security to migrants’. It is a big
Sham. Anyone who does not have a PF number can register on the e-shram; both migrants
and non-migrants have/do not have PF; labour laws are so poorly implemented. Actually,
using the ‘e-shram’ portal, social security to workers is being diluted and this is the form
being offered to all impermanent work force.
Special Economic Zones (SEZs)
These are zones that were not in existence in the 1980s. They are relevant chiefly because
they are zones where officially labour laws do not apply. The PIV of Ministry of Commerce
and Industry informed on 10th March 2021 that 378 SEZs are notified of which 265 are
operational. It states that 2 million workers work in these units.
Unacknowledged Work Force
In this category will fall workers who are doing regular jobs in sectors which have expanded
or been given birth to by corporate in the 21st century to further loot labour by denying its
worker character itself under fancy names. In this are so called ‘voluntary workers’, ‘gig
workers’ and others. Their numbers are big and some of these need description.
Anganwadi Workers
This is sector which began only in 1975 under the ICDS umbrella (Integrated Child
Development Scheme) and which correctly should fall under essential Mother and Child
Health Care which govt. should offer. They were labeled as ‘honorary’ workers from ‘local
community’ rendering ‘part time services’. They are totally women workers and have helpers
under them who are also women and also honorary.
In reality these are all government employees. But they are denied all due rights and wages.
These workers receive a ‘honorarium’, part paid by Central Govt. and part by state, hence
the total amount differs in various states.
Sanctioned strength 27 lakh women workforce
Worker (AWW) 13,99,697 (almost 14 lakh)
Helpers (AWH) 12,83,847 (almost 13 lakh)
As per Ministry of Child Development which issued a PIB (Press Information Bureau)
statement on 12th July 2019. This was when the Central Govt. increased the honorarium of
AWW from 3000/- pm to Rs. 4500/- pm, and of AWH from Rs. 1500/- pm to 2250/- pm/
Additional ‘benefits to’ this section of workers is
a). Some paltry incentives (500/- pm POSHAN etc.)
b). 20 days DL per year (AWW)
c). 2 sets of uniforms per year
d). Retirement (! From ‘voluntary’, ‘honorary’ work! ) is to be at 60 yrs.
e). 180 days only (6 months) of one time fully paid maternity / abortion leave.
f). No ESI, No PF, but some age related ‘yojna’s as follows:
Age: 18-50 years – Insurance cover under PM Jeevan Jyoti Bima.
Age: 51-59 years – Anganwadi Karyakarta Bima (it gives approx 2 lakhs).
There is no minimum wage of course (though duty is up to 2 PM in most states) but recently,
Supreme Court has granted gratuity for these ‘honorary’ workers.
AASHA Workers: A 21st Century Entry.
Created in 2005 as part of National Rural Health Mission, to these ‘voluntary’ workers, the
Central Govt. gives a ‘honorarium’ of Rs. 2000/- (1000/- book keeping, 500/- for data feed,
250/- mobile bill, 250/- transport to attend meeting).
Whatever rest they earn are through commissions unless they can force state govts to
concede wage. No ESI, PF, Pension, Gratuity, Leave, Maternity benefits. Sanctioned
strength is of 9 lakh women work force.
Gig & Platform Workers
This section is defined in the pro-corporate ‘Labour Code on Social Security’ of the Central
Govt. as person who ‘takes part in work and earns outside traditional employer – employee
relationship’.
The platform workers are similar; they work from a ‘platform’.
The twist given by Corporate and copied by our pro-imperialist ruling classes is in the words
‘outside traditional’ employer employee relationship. This is only because Corporate so
decrees worldwide and ruling class Govts accept and legislate as if this was true. It is NOT.
By the labour laws in India, they are very much within the “traditional” relationship and
should be placed as ‘piece’ rated or ‘task’ rated (as some sections are basically service
providers) workers, entitled under the Minimum Wage Act provisions to minimum wages and
other legal statutory rights and other rights.
What is the size of these sectors? They now have an almost ubiquitous presence in big
metro cities especially as delivery personal and vehicle drivers. The Govt. data that could be
accessed is that of Niti Aayog. Independent estimates, (as in Wire 31st March 2021) put the
number at 13 million.
In pre-pandemic years, it was mentioned as a sector which would grow 17% annually, but in
the Corona period, Central govt. push for online retail really got a boost due to both long
lockdowns and also Corona precautions.
The Niti Aayog report on “India’s Booming Gig and platform Economy” said the situation in
2019-20 was that these workers were employed in following sectors as –
Retail Trade and Sale 26.6 lakhs
Transportation 13.0 lakhs
Finance and Insurance 6.3 lakhs
Manufacturing 6.2 lakhs
Education 1.0 lakhs
This is some 53.1 lakh or 5.3 million workers.
Any statistics and all statistics of the current years, based as they are on ‘voluntary’ listing by
owners, impermanent workers, non-registered enterprises and computer based data
collection rather than field surveys, must be taken as very general approximations.
The following profile is also sourced from Niti Aayog
47% of these workers are in medium skilled jobs, 31% is low skilled jobs and a whopping
22% in high skilled Jobs.
‘Money control’ site profiles their task-base as 8% in deliveries, 5% in ride sharing, 19% in
cleaning and micro-tasks, 17% in personal tasks and 42% in high skill freelancing.
Another set of figures gives an estimate of rising numbers (vebay.news)
2016 - 8.5 million
2017 - 11.7 million
2018 - 15 million
Another categorization is (india times.com) as (1) Independent contractors (2) on line
platform workers (3) contract firm workers (4) on call workers (5) temporary workers.
This helps to give an idea of their various jobs. The numbers and classifications published in
on line news sites of these workers need not be dismissed, keeping in mind how now
collection of data is outsourced to all posts of agencies by Govt. departments.
These workers are an extension of India’s informal sector or workers, but a good number of
them are employed in production of goods and other tasks which should fall into organized
sector and which are deliberately designed as ‘gig’ work, for violating or bypassing laws.
Workers in this category have no social security, irregular working hours and conditions,
demands placed on them ignore their personal safety (company will calculate delivery time
using a particular route involving crossing a railway line which is unmanned, etc) and or
course no job security. Central govt. has been harping on how the new codes will benefit
these sections which are “unmentioned in old labour laws” and how ‘national floor wage’ will
benefit them. They are very much mentioned but not by these names (‘A rose by any other
……..”) and very much entitled to existing minimum wages. Any way there is already a
national floor wage.
Other ‘Voluntary’ workers:
There are a number of other sections of potentially government employees classified as
volunteers. Examples are panchayat workers, malaria eradicators. The issues confronting
them are same.
The total figure of ‘community health workers’ executing government schemes and almost
100% women is supposed to be around 2.3 million. Their average qualification is High
School or Intermediate pass. They include AASHA, anganwadi, midday meal workers, etc.
They would be all classified as ‘Health workers’ and are actually government servants.
Share of Services in Total Employment
This has risen steadily. In the RBI Publications (Source – NSSO various rounds and Visaria
1996) the following data is shown. It is good for comparative purpose.
Year Employment is services Total employment Share of services
 (in crores) (in crores) (%)
1965-66 3.97 21.93 18.1
1980-81 5.71 30.24 18.9
1990-91 8.7 35.68 24.4
1990-2000 10.29 43.81 23.5
There is of course a definitive opinion that many types of workers who are getting classified
as delivering services, are actually employed in tasks which should be classed under
industrial employment.
Women workers –
When 40 years pass, there will definitely be quantitative changes also in working class,
including in women workers. But apart from working in older sectors, women workers have
grown due to expansion of new sectors of community health workers, platform workers, etc.
Women continue to dominate the beedi industry, where now workforce is shrinking both due
to decreased demand and also younger women are moving out of this work. Women
dominate the garment industry, working both in the big MNC units themselves and in the
small and big outsourced or contracted establishments. Here they are underpaid, both as
per minimum wages and also due to gender disparity in wages for similar work. In addition,
they have burning issues of personal safety in horrible pigeon holes called ‘hostels’,
transportation issues, issues of sexual harassment at workplace, unsanitary and inadequate
bathroom issues, absence of or inadequate maternity benefits and sights, no ESI facilities.
The question of creches / childcare facilities at workplace is already out of reckoning where
labour law implementation is concerned.
Women have moved out of traditional sectors and entered workforce in all areas in service
sector. They are gig and platform workers’ as hairdressers, baby sitters, personal service
providers, vehicle drivers, and in highly skilled jobs. Domestic work is also an area where
more women are employed as compared to men.
Women across sectors require as an absolute must PF for empowerment, ESI for regular
health facilities, enforced minimum wage, proper bathroom facilities and responsive
addressing of sexual harassment at workplace issues.
Social Security for Various Sectors of Workers.
This is a time where formal social security specific to working class like ESI, PF, pension is
being decisively withdrawn and more and more sectors of workers are being promised
coverage under general security schemes. The new labour codes encode this push. The
push is for impermanence of class and from access to organized facilities is degenerating
into various ‘Yojnas’ run by rulers. What is being done away with also is organized, adequate
public health facilities and also regular pensions.
Jute Workers –
This 100 years old Industry gives employment to 3.7 lakhs directly and indirect support to 40
lakh farming families. Around 2 lakh workers are in one state alone.
Unionization –
Level of unionization of total working class is very, very low. Labour Bureau Statistics quoted
in TOI (17th Jan 2018) give figures of ‘union density’ as follows:
35.8% in 1989
11.5% in 1993
26 % in 1997
19.4% in 2001
10.3% is the figure published for 2021 by Labour Bureau and is same as 2019 figure.
Man days lost actually compute figures due to both strikes and lockouts. Also strikes are
occurring in huge sections of impermanent workforce, but it is not possible to gauge how
many are getting reflected in figures.
Employment in Companies of Corporate India:
As an additional aspect, some compilation was attempted of the figures of number of work
force under major corporate houses of Ambani and Adani.
The Adani Group’s employment (Reported in Enterprise IT World) says this business group
has 15,000 + employees, and 50,000 workers (with 900 + third party contractors) across 25
+ business units.
ET Now updated August 8, 2022, states that Ambani Group’s total workforce was 3.43 lakh
at end of FY 2021-22.
Conclusion
As stated in the introduction, the single, major, striking significant change has been basically
dictated by the ruling class consensus on pro-liberalization policies. In the background to the
drive of western imperialism to spread influence was the collapse of social imperialist
challenge, the disappearance of socialist centre, the worldwide mental disarming of the
working class by the attack on Marxism Leninism. The transition from not only dismantling of
legal rights and social security benefits installed after 1917 due to also working class
struggles, also occurred over the last 30 years. Now the period is of actually further
intensification of attacks on working class by imperialism to further enhance super profits.
This whole manifests in the march in the character of India’s workforce to Impermanence –
irregular or regular non-permanent employment, entitling the worker to no rights, lowest
possible wages and no job security. Social security is moving towards general Governmental
Yojnas accessible by large sections of populations by on line portal registrations and
remotely only linked to working class status if at all. The names of this workforce is variable
– contract, casual, daily wage, outsourced, apprentice, fixed term worker to voluntary,
honorary and gig (“outside the” pale of “employer employee relation”). The transition is to
freer and freer exploitation.
This drive:
*Is part of Privatization and MNCization of all sectors of economy.
*Is part of Cheapening labour, Increasing Super profits.
*Is part of Emasculating working class mentally, so that is remains in no situation to fight
cohesively to defend jobs and rights.
*Is part of Finishing of right to unionize and collective bargaining and for legal protests.
*There is drastic cutting of old age securities like pension benefits, health care facilities. All
this increases money saved from welfare.
*Laws supporting working women, like crèche, paid maternity leave and maternity care
facilities, ordinary paid leaves, ESI, and those empowering them as PF, are all part of social
securities being pushed to redundancy.
*General social security scheme with online registrations entitling to some lumpsum security
money is to to be the general rule.
These features are becoming true for all sectors, including core sectors, govt. employees,
into new sectors and now also lower rank of defence employment though here ruling class
will be forced to go with more care.
In lieu of this, Revolutionary trade union work in working class must include importance to
widely organizing the working class under the leadership of revolutionary trade union centre.
The huge un-unionized working class is almost 90% to 95% of workers and this will give the
movement a wide base. Their struggles will be for job security and for legal rights as also for
wage and basic health and social securities. Thus cadre should also be given training to
meet the new practical demands of movement.
It is necessary that the revolutionary trade union movement energize itself, competent
comrades come forward to take on the task, spirit of sacrifice and dedication be reignited.
Working class leaders must go and live among the working class and organize. It is also
important to build joint struggles or campaigns with all such like-minded forces on issues of
the working class to strengthen working class movements. This will include wider joint
struggles involving also reformist trade unions.
In conclusion, it is clear that tasks now of work in working class could be summed up as
three fold:
a) Unionize the working class.
b) Build struggles in the new situation of workers needing legal rights, right to strike itself
under threat, etc. Joint struggles to defend rights must be developed.
c) Revolutionize the working class: which in effect, entails:
1. Give revolutionary orientation to the advanced elements in the working class.
2. Draw them into solidarity struggles with struggles of other sections on democratic
demands.