E-Shram portal - A good start, but many improvements needed

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The vast unorganised sector in India is finally getting the attention it deserves.

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 E-Shram portal - A good start, but many improvements needed

Read more on - Polity | Economy | Schemes | S&T | Environment

  • The story: The MOLE launched the E-Shram portal in August 2021 with the goal of creating a NDUW [MOLE - Ministry of Labour and Employment, NDUW - Natonal Database of Unorganised Workers]. It wants to register 39.8-40 crore unorganised workers of India, seeded via Aadhar, to issue and E-Shram card All this, due to Supreme Court's pressure, and not due to any government's initiative.
  • Two factors: The delay in this initiative can be gauged from two facts - (i) four decades after the inter-State migrant workers act, and (ii) ten years after the Unorganised Workers' Social Security Act, 2008. If all governments had woken up in time, a lot of distress of migrant workers would never exist, but state apathy reigned. It is bound to a long-drawn procedure, as each worker's registration will take a lot of time (so far, 6 lakh are registered, and a total of 38 crore are targeted).
  • Pandemic's impact: Since the pandemic has pushed many lakhs more into unorganised work, actual nos. may be different. Workers will gain by registering, though a meagre Rs.2 lakh instant accident insurance benefit is hardly a carrot. Lakhs of small employers now have to ask their workers to register on the portal, and if the government bring penal measures, it may hit their functioning. Data privacy and security of the E-Shram portal is a serious concern, given the vast size of the database.
  • Data issues: Since data will naturally be shared with States also, who have different cyber capabilities (and India does not yet have a data protection law in place). Those already covered under EPF and ESI have been excluded, so lakhs of contract and fixed-term contract workers are out of UW universe. Since all hazardous establishments are automatically covered the ESI (even if 1 employee), hence those too are excluded [as per Social Security Code SSC].
  • A giant database: The NDUW also excludes crores of workers above 59 years (Age discrimination), who have little social security otherwise. Many thresholds in labour laws segment the market (10 / 20) and many workers do not have an Aadhaar-seeded mobile or a smartphone. The extent of definitional and systemic exclusions is vast. Unorganised workers come in various forms and complexities. Many are circular migrants, and keep changing trades frequently. Many do formal and informal work (gigs) simultaneously. The portal is quite mechanical, and laden with set assumptions.
  • Other issues: MOLE also wants gig workers too on the portal, but legally are they even classified as workers? Are they organised or unorganised workers? The SSC does not specifically include them, unless they are "self-employed" or "wage workers". Then the all-inclusive "miscellaneous" category will have to used to expand occupations covered. States are crucial in making this project successful, and there are two issues.
  1. FIRST - technical issues ('server down') will demotivate workers from registering
  2. SECOND - communication with workers is weak or non-existent
  • Communicate: So large-scale communication campaigns are needed in all languages alongwith grievance resolution. Internet service agencies may end up charging hefty fees for completing the process, and printing out the E-Shram cards. The good thing about E-Shram is that finally, the invisibles will be fully visible to the country. A 'Labour Market Citizenship Document' will be given .
  • Future: In the future, the E-Shram Card may be linked with "one nation one ration card ONOR", and the Election Commission card. But those who fail to register should not be denied any social assistance and benefits, as it would be a long-drawn process.
  • Summary: Apparently, the Covid-19 crisis taught India the importance of building safety nets and raised the need to formulate robust social security mechanisms for the unorganised sector. Hence, E-Shram is a vital system to provide hitherto invisible workers much-needed visibility. But the technical issues need to be sorted out quickly.
  • EXAM QUESTIONS: (1) Explain the problems faced by the unorganised sector workers in India. (2) The governments of India neglected the unorganised sector workers, till the human tragedy of Covid-19 spilled onto the highways, and the Supreme Court took up the matter. Comment analytically.
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#UnorganisedSecto #EShram #MOLE #SupremeCourt


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PT's IAS Academy: E-Shram portal - A good start, but many improvements needed
E-Shram portal - A good start, but many improvements needed
The vast unorganised sector in India is finally getting the attention it deserves.
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PT's IAS Academy
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