Coronavirus lockdown: Don’t ignore the plight of unorganised labour
As the reality of a nationwide shutdown to stem the march of the coronavirus dawns, it is unorganised labour that will bear the full brunt of the economic paralysis.
Factories have been shut down, and business activities suspended to stop the spread of the virus. It is indeed a bitter medicine, but it tastes the worst at the bottom of the pyramid.
Those who have the wherewithal have bought their rations, and hunkered down for the 21-day curfew in the safety of their homes.
However, it is sad that not much has been spoken of the millions who have no resources to last out this period of joblessness.
It is also ironic that the shutdown has triggered a stampede among millions of immigrant workers to return home, putting themselves at risk of infection while travelling like sardines.
A slew of government measures announced on Tuesday, like delaying the filing of income tax returns and lowering penalty on delayed tax payment, will provide some relief to the industry.
But contract and casual labour, who are paid by the day and account for as much as 80-90% of the country’s workforce, are not part of the formal economy.
The Economic Survey 2017-2018 had conceded that 87% of the firms in the country, representing 21% of total turnover, are part of the ‘informal’ economy and so outside both the tax and social security nets.
In this context, as many as six industry leaders have recommended to the PM that the government make direct payments to unorganised sector workers since they are going to be bearing the brunt of the current lockdown.
Among them, Uday Kotak has recommended the direct transfer of Rs 5,000 to the bank accounts of those over 25 years, and Rs 10,000 to those above 65. The government must take these suggestions seriously before large sections of people are hit by poverty.
The industry leaders themselves, beyond making recommendations, should also be contributing to the kitty.