This document proposes a cooperative strategy to organize informal sector workers in India. It notes that over 90% of India's workforce is informal and lacks social security protections. The strategy involves forming union-cooperatives composed of self-help groups that would interface with employers and the government to provide workers with placement services, minimum wages, safety equipment, healthcare, education, skills training, insurance, loans, and a political voice. Funding would come from the government, NGOs, and profits shared among the self-help groups. The goal is to improve conditions for informal workers while integrating them into the mainstream economy and society.

1.  Exploitation & Job Insecurity
 Miserable Working Conditions
 No Retirement Benefits No Retirement Benefits
Organising the unorganised: A cooperative strategy for
organizing informal sector workers to prevent vulnerability.
Team details:
Pankaj Kumar Singh
Pawan Bankoti
Prashant Bhatt
Shashank Shubhranshu
Vishal Srivastav

2. Report of Ministry of Statistical and Programme Implementation, 2012, says more
than 90% of India’s workforce belongs to the informal sector and accounts for 50% of
the national product. 99.9% workers in the agriculture and forestry sectors are
unorganized. 98% of unorganized industrial labour does not have any social security
.protection.

3. India is home to one of the largest numbers of informal workers, there is an
urgent need for policy initiatives which will provide them with basic security
benefits.
low incomes
poor quality of tools and raw
materials
lack of collective organization
lack of a voice in policy -
making/politics
PROBLEMS CONSTRAINTS
lack of job security
absence of retirement
benefits
lack of legal protection
unsafe conditions leading to
ill health
making/politics
lack of access to national
social security schemes
lack of access to capital
lack of information and advice
on rights and opportunities

4. A union -cooperative strategy for organizing informal sector workers.
Proposed Framework
UNION-
COOPERATIVE
• interface between employers and workers
• delivery agencies for more comprehensive state-sponsored
schemes
• voice of workers in policy - making/politics
• comprises of many SHG’s and independent workers
• government recognised body
SHG’s
• building block of cooperative structure
• attends to daily affairs of the workers
• encourages entrepreneurship & provides micro-finance
WORKERS
• active member of union/SHG or both
• Register themselves in union-cooperative

5. UNION
COOPERATIVE
NGO’s volunteers
SHG’s Workers
Of the
workers
For the
workers
By the
workers
NGO’s
• Composed of
volunteers
• Trained college
students
• Retired professionals
• Employees of NGO
SHG’s
• At least 20 members
mandatory for SHG
to be recognised
• Around 8-10 SHG’s
in a district
Union Cooperative
• Two-member body
• Constitutes of one
elected
representative of
workers
• And one Bureaucrat.

6. NetFunding
Organizational cost
Chief of Union Cooperative &
bureaucrat. (₹240k + ₹420k p.a.)
Each SHG representative paid
₹36k p.a.
NetFunding
NGO’S ₹1000k p.a.
Safety Equipment's and
Kits
Tools and equipment
₹5000k p.a. for 100
districts

7. • UID based registration of workers
• Maintains database of workers(job history,
personal details etc..)
• Serves as placement agencies: interact
between employers and informal workers
• Receives welfare funds directly from
government
• Serves as delivery agencies for more
Organise
• Serves as delivery agencies for more
comprehensive state-sponsored schemes
• Fixes minimum wages & working hours in
tandem with government
• Prevents exploitation
• Imparts soft skills and work related skills
• Provides the workers with safety equipment
Work &
wages

8. • Offers Legal protection
• Provides Insurance, compensation, survivor benefits,
unemployment insurance
• Will be their Political voice
• Creates awareness about Swawlamban yojna, food
security schemes, and other Govt. schemes etc...
• Creates consciousness about their rights & duties
• Provides Medical facilities
Social Security
• Micro financing
• SHG’s profit is shared with workers as pension
• Encourages entrepreneurship
• Ensures Education to children and runs crèche
• Vocational training by volunteers from schools
and colleges and retired professional
• Provides loans without collateral
NGO’s/SHG’s

9. This model, if implemented would cover all informal sector workers and ensure
their social welfare with adequate support from NGO’s and Government.
1.Gathers Government
support
2.Encourages Mutual
cooperation
Strong
organisation 1.Employment
generation
2. Sets Fair wage and
work parameters
Safeguards
rights
cooperation
3.Composed of
informal sector workers
1.Increases Political
participation
2.Education and
literacy
3.Social upliftment
Integrates
with
mainstream
1.Soft skills
2.Work related skills
3.Marketing skills
4.Safety measures
5. First aid and disaster
management training
Imparts
Skills
work parameters
3.insurance &
compensation

10. • Informal sector
workers do not see
benefit and disengage.
• Government and
Employers
indifference with the
• Integration with
Government, SHG’s,
NGO’s
• Building trust
• Coordination between
different sects of
• Awareness about the
cooperative, system and
setup for their benefit.
• SHG’s profit share as
contribution to pension
fundsindifference with the
cooperative
• Corruption within
union cooperative
RISKS
different sects of
union cooperative
• Charter of union
cooperative
• Political drift within
cooperative
CHALLENGES
funds
• Coordination with SHG’s,
NGO’s
• Tie up with industrial units
and training centres
MITIGATION
FACTORS

11. REFERENCES
Organizing workers of informal sector- ILO.
Innovative Employment approaches and programs for low income
families.
Sheila Bhalla :The Restructuring of Unorganised sector in India.Sheila Bhalla :The Restructuring of Unorganised sector in India.
Statistical update on employment in informal economy- ILO,
Department of Statistics 2012.
NOTE
Workers in this entire ppt refers to informal sector workers.
Here p.a. refers to per annum.