Recommendations of the Seminar on “GUARANTEED EMPLOYMENT FOR THE RURAL POOR”

NIRD (Nov 4-5, 2004)

BACKDROP:

          The unemployment situation in rural India has worsened during 90s.  One of the factors responsible for this phenomenon is decline in the rate of growth of agriculture.  This resulted in decline in the employment growth rate for agriculture from 1.77 per cent per annum for the period 1983 to 1987-88 to 0.02 per cent per annum for the period 1993-94 to 1999-00.

       A decline in the contribution of agriculture and allied sector in total GDP is also witnessed in this period.  Further, this sector could generate employment to the extent of 191 million person years at the beginning of the 10^th plan period and this accounted for 56 per cent in the total employment generation for all sectors.  Though the agriculture and allied sector is expected to improve its position from 191 to 200 million person years by the end of the 10^th plan period, its relative contribution in total employment generation would dip to 51 per cent.

          In view of the gravity of the unemployment problem in rural areas, the Government of India envisaged enactment of National Rural Employment Guarantee Act.  Being a Think-Tank of the Ministry of Rural Development which has been given responsibility of drafting the act, NIRD conducted a seminar on the theme of ‘Guaranteed Employment for the Rural Poor’ during November 4 – 5, 04.

          In accordance with the provisions contained in the draft act every state has to pass its own act on the basis of central act within the specified timeframe of six months.  Some State Governments like Karnataka, Chattisgarh and Rajasthan have already prepared the draft acts.  However, the implementation of Employment Guarantee Scheme should start immediately without waiting for the other states to pass their own acts.

Scope of the Draft Act:

Employment Guarantee Scheme will operate only in the rural areas.  Under the scheme, employment is guaranteed for unskilled labour and as such the scheme cannot extend to B & C municipalities where the demand for unskilled labour is lower.  The guarantee of 100 days of employment under the scheme extends to the family consisting of husband, wife and children.  Dependent adult members of the family would be entitled to 50 days of employment each.  Both Central and State Governments would fund the scheme.

The following are the recommendations, along with the broad provisions in the draft act, of the seminar.

Planning and Operationalisation:

Provisions in the Draft Act:

§      In order to anticipate the demand for casual work a labour budget for the District shall be prepared, so that it may be possible to plan the works to be taken up under the scheme.

§      In the planning and selection of works to be taken up under the Programme, priority shall be given to works recommended by the Gram Sabha and Gram Panchayat. In cases where these recommendations are overridden, written explanation shall be supplied by the Programme Officer.

§      In every Block, the State Government shall appoint a Programme Officer, who shall be responsible for the implementation of the Programme in that area.  The Programme Officer shall be answerable to the Panchayat Samiti and the District Collector/CEO.

§      Any of the powers and duties of the Programme Officer may be delegated to the Gram Panchayat or a specified local authority, through such procedures as may be prescribed in the Rules.

§      For the purpose of giving effect to the employment guarantee mentioned in section 3, each State Government shall prepare, within six months of the commencement of this Act, an Employment Guarantee Programme for providing employment to all adults residing in the rural areas who volunteer to do casual manual work, subject to the conditions laid down by or under this Act or in the  Programme.

§      Contractors shall not be used for the execution of projects taken up by Programme Officers under the Programme, except for specific types of work to be specified in the Rules and with case-wise permission from the concerned monitoring agencies.  When contractors are used, wages shall be paid directly by the government to the labourers, and in all other respects the Contract Labour, Regulation and Abolition Act will apply.

§      As far as possible, employment shall be provided within a radius of 5 kilometres of the village where the applicant resides at the time of applying.  In cases where employment is provided outside such radius, it must be provided within the Block, and transport allowances and daily living allowances shall be paid in accordance with the Rules.

Recommendations:

§      Instead of planning for implementing an exclusive Employment Guarantee Scheme, the component of providing employment guarantee must be built in the normal planning process at the district, block and village levels.

§      Besides providing wage employment as a short-term measure there should be a separate strategy for providing livelihood support as a long-term measure.

§      The planning under EGS should place more emphasis on developing common property resources that are accessible to the resource poor.

§      For obtaining better results from the Employment Guarantee Scheme it is necessary to ensure timely release of EGS funds at the Gram Panchayat level.

§      The implementation of the scheme shall only be through Government Agencies or local bodies.  Under no circumstances should Contractors be allowed.

§      Registration of work seekers under EGS should be done through enumeration of the potential households for participation in the work.  Application for work could be an intimation to the panchyat in such a manner as may be prescribed.

§      Wage employment needs to be integrated with resource conservation.  Land development through watershed mode should receive priority.

§      The EGS needs to be seen as a complimentary input to other developmental programmes in an integrated manner, benefiting the rural poor, especially the resource-poor.

§      Any applicant who is provided with employment and does not report for work within 15 days of being notified or who is absent for work for more than one week without an application for exemption should not be debarred either from applying for work or receiving unemployment allowance (for a period of 15 days).

§      The structure of the programme should evolve through a participatory approach involving all stakeholders including the people’s organizations. 

Awareness:

Provisions in the Draft Act:

§      The Central and State Councils are required to promote the widest possible dissemination of information about the Act and the Programme,

Recommendations:

§      It is necessary to earmark separate funds in the budget for awareness creation about the entitlement of the poor for work under EGS so as to enhance their participation levels in the scheme.

§      For the success of Employment Guarantee Scheme a mechanism for dissemination of information about the scheme across different levels (both officials and stakeholders) has to be evolved.

§      The rural poor need to be educated and enlightened about the entitlement for wage employment especially during the period of vulnerability and this could be accomplished through mass awareness generation campaign.

Target Group:

Provisions in the Draft Act

§      Every adult in the rural areas of India shall have a right to guaranteed employment for doing casual manual work at the statutory minimum wage, and to receive the wages thereof within 7 days of the week during which work has been done, in accordance with the provisions of this Act and the Programme mad thereunder.

§      The Programme may also provide, as far as possible, for the training and upgradation of the skills of unskilled labourers.

§      It shall be open to the Programme Officer and Gram Panchayat to direct any person who applies for employment under the Programme to do work of any type permissible under the Programme.

Recommendations:

§      The households identified for participating in EGS should be given choice as to who should seek employment under the scheme.

§      The term household should be replaced by ‘family’. Family means husband and wife and children.  Every adult dependent member in the family will be entitled to register for work and single parent/female headed family will also be entitled.

§      Every family will be entitled to 100 days of employment.

§     Dependent adult member will be entitled to 50 days of employment.

Implementing Agency:

Provisions in the Draft Act

§      “Implementing Agency” includes any Department of the Central Government or State Government, the Zilla Parishad, the Panchayat Samiti, the Gram Panchayat, or any other local authority or Government undertaking which is entrusted with the task of implementing any work taken up under the Programme.

§      The Collector of the District (or the Chief Executive Officer, as the case may be) shall be responsible for the implementation of the Programme in the District.  For this purpose all other officers of the State Government and local authorities within the district shall be ultimately responsible to the Collector/CEO.  The collector/CEO himself or herself shall be accountable to the Zilla Parishad.

§      Adequate staff and technical support shall be made available by the State Government to The Gram Panchayat and Programme Officer for the purpose of carrying their responsibilities under this Act.

§      The Gram Sabha shall monitor the work of the Gram Panchayat. In particular, Gram Sabhas (and, if applicable, Ward Sabhas) shall conduct regular social audits of all the projects taken up within their jurisdiction. All relevant documents, including muster rolls, bills, vouchers, measurement books, copies of sanctions, etc., will be presented to the Gram Sabha for purposes of social audit. Completion and utilisation certificates of works taken up under the Programme by the Gram Panchayat shall be issued by the Gram Sabha after conducting the relevant social audits.

Recommendations:

§      Zilla Parishad, Panchayat Samithi   and Gram Panchayat  will be the implementing agencies for the EGS. Gram Sabha should be given an important role in prioritizing works under the scheme.

§      The money should come directly to the Panchayat Samithis and Gram Panchayats through DRDA/ZP and not through regular State budgetary channels.

§      Since village does not have technical support, the services of Block level Technical Officer/Engineering Supervisor should be utilised for the planning and implementation of EGS at the village level.

§      The Chief Executive Officer/Chief Development Officer of District Panchayat must be responsible for implementation of EGS.  Wherever District Panchayat does not exist District Collector would be responsible.

Nature of Works:

Provisions in the Draft Act

§      “Productive works” means any works which, in the opinion of the State Council, will directly or indirectly contribute to the increase of production, the creation of durable assets, the preservation of the environment, or the improvement of the quality of life.

§      Only productive works shall be taken up under the Programme.  The State Council shall prepare a list of permissible works as well as a list of “preferred works”.  The identification of preferred works shall be based on the economic, social and environmental benefits of different types of works, their contribution to social equity, and their ability to create permanent assets.

§      The Programme Officer shall be responsible for matching demand for employment with employment opportunities arising from projects in the area within his or her jurisdiction. These projects may include works taken up by the Gram Panchayat as well as works taken up by other implementing agencies.

Recommendations:

§      The works to be taken up in the scheme could include soil and moisture conservation, minor irrigation, traditional water harvesting, desiltation of village tanks/ponds, rural link roads, farm roads linking agricultural fields, civic amenities including drainage works etc.

§      The assets proposed to be created under the scheme should be need based and they should have reference to the local conditions. 

§      Special focus needs to be laid on creating assets in habitations of the  SC/ST and other disadvantaged.

§      Common facility centers for a village or a group of villages should be created under the scheme for rural artisans including weavers, leather workers and others engaged in various other crafts.  Apart from creating wage employment while creating this facility, this would help improve the productivity levels of these personnel in their respective occupations.

§      In order to ensure sustainability of assets created under the scheme, a mechanism needs to be evolved for their maintenance by the community institutions. 

§      The productive works to be taken up under the scheme should be with reference to the watershed development activities.

Wages:

Provisions in the Draft Act

§      In no circumstances shall labourers be paid less than the statutory minimum wage of agricultural labourers applicable in the state.

§      When wages are directly linked with the quantity of work, the wages shall be paid according to the schedule of rates, which shall be fixed by the State Government for different types of work every year, subject to the approval of the State Council.  The schedule of rates for unskilled labourers shall be so fixed that a person working diligently for 7 hours would normally earn a wage equal to the statutory minimum wage of agricultural labourers applicable in the State at that time.

§      Wages may be paid in cash or in kind or both, taking into account the guidelines and recommendations of the State Council on this matter.

§      In no circumstances shall there by any discrimination on the basis of gender in the provision of employment or the payment of wages as per the provisions of the Equal Remuneration Act 1976.

§      Any applicant who is provided with employment and does not report for work within 15 days of being notified under sub-section 8(5) or who is absent from work for more than one week without an application for exemption, shall stand debarred from applying for work or receiving unemployment allowances for a period of fifteen days.

Recommendations:

§      The wages to be paid to the workers under EGS shall not be less than the minimum wages fixed by the State Governments under the relevant statute for agricultural labourers as applicable to the rural areas.

§      Equal wages shall be paid under the programme to both men and women workers.

§      Wages shall not be paid on piece-rate basis.

§      The workers must be paid at least one-fourth of their wages in cash.

§      Unemployment allowance at the rate of 50 per cent  of the minimum wages should be paid to each labourer in the event of his not being provided with  employment within 15 days of the submission of application.

§      Distribution of food under EGS should be through either Public Distribution System or by issuing food coupons or through any other arrangement as the State Government considers appropriate.

§      The material cost should not exceed 30 per cent of aggregate expenditure of all works at each of the three levels.

§      Payment of wages shall be made on a fixed day in a week preferably a day before the local market day.

Social Security and Entitlement:

Provisions in the draft Act:

§      If the applicant is not provided with employment in the manner mentioned in sub-section 8(3) within 15 days of applying, he or she shall be entitled to a daily unemployment allowance.

§      The unemployment allowance shall be paid at such rate as may be fixed by the State Government from time to time with the approval of the State Council, but not less than one third of the prevailing statutory minimum wage of agricultural labourers in the State.

§      Provision shall be made in the Rules for advance applications, that is, applications submitted in advance of the date from which employment is sought.  In such cases, applicants shall be entitled to the unemployment allowance if work is not provided to them within 15 days of the date from which employment is sought.

§      If any personal injury is caused to any person employed under the programme by accident arising out of and in the course of his employment, he shall be entitled, free of charge, to such medical treatment as is admissible under the Programme. Where hospitalization is necessary, the State Government shall arrange for such hospitalization including accommodation, treatment, medicines, and a daily allowance not less than half of the statutory minimum wage of agricultural labourers. In case of death or disability of such a person, an ex-gratia payment shall be made in the manner laid down in the Workmen Compensation Act.

§      The following facilities shall be available at the worksites: (i) safe drinking water (ii) shade for small children and periods of rest; (iii) a first-aid box with adequate material for emergency treatment of minor injuries, strokes, body aches and other health hazards connected with the work being performed.

§      In cases where at least twenty women are employed on worksite, a provision shall be made for one of them to be deputed to look after any children under the age of six who may be brought to the worksite, if the need arises. The person deputed for child-mending shall be paid the statutory minimum wage of agricultural labourers in the State.

§      A proportion of the wages, not exceeding 5 percent, may be deducted as a contribution to welfare schemes organized for the benefit of labourers employed under the Programme, such as health insurance, accident insurance, survivor benefits, maternity benefits and social security schemes. The relevant procedures, including stringent provisions for transparent and accountable use of these funds for the benefit of labourers employed and provisions for matching grants from State Governments, shall be spelt out in the Rules and reviewed from time to time by the State Council. No deduction from wages shall be made until such time as the relevant social security schemes are functional.

§      Facilities may be provided for the employment of persons unable to do any casual manual work on account of physical or mental disabilities in activities that are compatible with their abilities. Such disabilities shall be recorded at the time of registration.

Recommendations:

§      There should not be any cut in the wages of the workers who participate in Employment Guarantee Scheme, towards contribution to welfare schemes such as health insurance, accident insurance etc. There must be an allocation in Employment Guarantee Fund towards this item.

§      It is necessary to earmark some funds in the scheme to take care of the disabled, old aged etc. who do not have any family support and who cannot participate in unskilled manual work.  This is in addition to safety nets given to these people under the normal channel which are inadequate in coverage of persons and also amount given.

Redressal of Grievances:

Provisions in the Draft Act

§      A copy of the muster rolls of each project undertaken by or in the Gram Panchayat shall be posted at the Gram Panchayat office until such time as the wages are paid.

§      If any dispute or complaint arises concerning the implementation of the Programme by the Gram Panchayat, the matter shall be referred to the Programme Officer, who will be required to settle the complain within 7 days. Appropriate provisions shall be made in the Rules for the maintenance of complaint registers and issuing of receipts.

Recommendations:

§      Disputes/grievances in regard to non-provision of employment within the stipulated time after registration, underpayment of wages etc. are to be resolved by the CEO/Collector.

§      The scrutiny of claims and disbursement of unemployment allowance should be made at gram panchayat level.

§      Procedure for payment of unemployment allowance should be made as simple as possible.

§      Disputes regarding payment of unemployment allowance should be resolved by the programme officer.