Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

The Committee notes the detailed report provided by the Government in August 2007 including replies to its previous comments. The ILO technical departments in headquarters and the field have also brought additional information concerning the application of the Convention to the Committee’s attention.

1. Articles 1 and 2 of the Convention. General economic policies. The Government recalls that providing gainful and high-quality employment was one of the targets of the Tenth Five-Year Plan (2002–07). In its approach paper to the 11th Five-Year Plan, the Planning Commission has made an assessment of the previous Plan: employment growth accelerated to 2.6 per cent during 1999–2005 outpacing population growth. The unemployment rate, which increased from 6.1 per cent in 1993–94 to 7.3 per cent in 1999–2000, increased further to 8.3 per cent in 2004–05. The Government explains that this was because the working-age population grew faster than the total population and the labour force participation rates increased, particularly among women. Agricultural employment has increased at less than 1 per cent per annum, slower than the population growth and non-agricultural employment expanded robustly at an annual rate of 4.7 per cent during 1999–2005. The Committee notes that 47 million employment opportunities were created per year during the Plan period (2002–07), which was quite close to the target of 50 million. In spite of high gross domestic product and high employment growth, decline in poverty has been relatively low, at 0.8 per cent per annum. The Committee further notes that the approach paper for the 11th Five-Year Plan (2007–12) therefore calls for more inclusive growth and envisages employment as a central element of such growth. It has been proposed to create almost 70 million work opportunities as one of the socio-economic targets which can be monitored during the plan. The emphasis seems to be on productivity and incomes to address the challenges of the working poor and improvement in the employability of the poor through a concerted and large-scale programme for training and upgrading of skills. The Committee thus invites the Government to provide in its next report indications on the adoption of a more comprehensive approach to formulate and apply an active employment policy. The Government is invited to state precisely how the goal of full and productive employment has been taken into account in formulating macroeconomic and sectoral policies.

2. Promotion of employment for poor workers in the rural sector. The Committee notes that the National Rural Employment Guarantee Act (No. 45 of September 2005) (NREGA) is now being implemented. The schemes implemented aim to provide 100 days of guaranteed unskilled wage employment to each rural household in more than 600 districts of India. Provisions for regular inspection and supervision of works taken up under the scheme shall be made to ensure proper quality of work as well as to ensure that the total wages paid for the completion of the work is commensurate with the quality and quantity of the work done (see paragraph 14 of Schedule I of Act No. 42 of 2005). The Committee also notes that the ILO suggested a pilot programme on mainstreaming decent work elements in the implementation of the NREGA and promoting a consultative process with concerned stakeholders at the national and district level. The Committee welcomes this approach and looks forward to examining in the Government’s next report further information on how the NREGA has improved employment opportunities, in particular in favour of vulnerable categories of workers such as dalits and tribal peoples, and where it has failed to meet these expectations.

3. Other schemes to promote employment. The Government mentions in its report other schemes in operation for poverty alleviation and employment creation. The Committee reiterates its interest in examining information on the measures taken to reduce the decent work deficit for men and women workers in the informal economy and to facilitate their access to the labour market.

4. Collection and use of employment data. The Committee notes with interest the analysis provided by the Government in its report on the employment and unemployment situation in the country. The Committee asks the Government to report on how the data available is being used to prioritize and formulate employment policies in favour of socially vulnerable groups such as young persons, women jobseekers, scheduled castes and scheduled tribes, ethnic minorities and people with disabilities (Article 1, paragraph 2, and Article 2(a)). Please also continue to include detailed statistical data on the situation and trends of the active population, employment, unemployment and underemployment disaggregated by state, sector, age, sex and skills.

5. Labour market policies and training. In its previous comments, the Committee noted that a national vocational training policy was under discussion. The Government indicates in its report that vocational training for both men and women is being accorded top priority in the 11th Five-Year Plan and is being treated as an industry. Efforts are being made to attract private investment into the sector. Private investment has come in only for the higher wage skills or for skills linked with government jobs. The Government recognizes that it is necessary to encourage a broader based system offering skill enhancement possibilities in smaller towns. The Government also plans to upgrade 500 industrial training institutes into centres of excellence for producing a multiskilled workforce of world standard. In this respect, the Committee invites the Government to include in its next report information on the effectiveness of the measures introduced in responding to the demand of skills in the labour market. Please also indicate how attention was given to the challenge of meeting the skill needs of the unorganized sector.

6. Article 3. Consultation of the representatives of the persons affected. In reply to its previous comments, the Government indicates that the Special Tripartite Meeting has yet to be held. In its previous reports, the Government mentioned that a special Tripartite Committee was formed to consider the impact of the new industrial policy on problems of labour and related matters and to make appropriate recommendations. Taking into account the employment challenges that face the country and the importance of establishing an adequate strategy, in consultation with the representatives of the workers’ and employers’ organizations, on the matters covered by the Convention, the Committee reiterates its interest in receiving detailed information on the frequency and results of the consultations to secure the full cooperation of representatives of the social partners, in the formulation and implementation of employment policies. Please also report on any consultations held with the beneficiaries of the NREGA and provide details of the way in which the Government and the social partners have addressed the matters noted in this observation.