How Can Workers In The Unorganized Sector Be Protected?

How Can Workers In The Unorganized Sector Be Protected

How Can Workers In The Unorganized Sector Be Protected?

  • Improving the Remuneration and Benefits of Employees in the Unorganized Sector
  • Fixing minimum wages
  • Removal of Payroll taxes for Low-Income Workers
  • Establishment of Skills Acquisition and Development Academy or Institute
  • Provision of Loans for Those in the Unorganized Sector Especially, Small-Scale Business Owners
  • Protection against Unjust Acts

Preamble and definition

Unorganized Employment is also referred to as Informal Employment or Nonstandard Employment. It may be difficult to give an all-encompassing definition of unorganized employment. Unorganized employment is that without proper government rules, regulations, and monitoring, which often evades payment of taxes. Employment under this sector includes self-employment or wage arrangement. The roadside auto mechanic, peasant farmer, fisherman, cobbler, vulcanizer, furniture maker, street vendor, barber, cook, private/ family driver, dishwasher, babysitter, watchman, low-income/ part-time factory worker, collector of cans and other recyclables, and listless others make this list. 

The Scope

In the United States of America, the unorganized sector has suffered over the years as it’s often tagged as a “black market.” This, to many reformists, is derogatory of the black race and other immigrants who constitute a larger percentage of the unorganized labor force in the United States. Though American citizens are found in this sector, black immigrants from Africa and others from Asia, Europe, and Latin America constitute a greater percentage of the unorganized sector. 

Winning with Workers in the Unorganized Sector in the United States

One would no doubt get lost in an ocean of thought on how the American Society can exist seamlessly without the products and services of the roadside auto mechanic, peasant farmer, fisherman, cobbler, vulcanizer, furniture maker, street vendor, barber, tailor, cook, private/ family driver, dishwasher, babysitter, watchman, low-income/ part-time factory worker, collector of cans and other recyclables and listless others. 

How possible? Individuals in the organized or formal sector, corporate organizations, and the American government cannot overemphasize the role workers in the unorganized sector play. Some importance of the unorganized sector of the economy are:

  • Growth of Gross Domestic Products (GDP): Many termed unskilled labor has turned out to be the booster of many countries’ GDP. According to statistics published by International Labor Organization (ILO) on “Towards a Fair Deal for Migrant Workers in the Global Economy,” in 2004, Countries with friendly immigrant laws, especially where the skills of immigrants match the needed labor force (attached to both unorganized-unskilled, and organized-skilled labor), have the best GDPs in the world. The United States of America, Canada, Australia, and South Africa were mentioned as having good GDPs connected with that period.
  • Meeting of the labor force demand: While the benefits of the domestic workers to the owner of the house (whom most times are a worker in the organized sector) cannot be overemphasized; the use of some low-ranking staff by some industries to do the core factory jobs cannot be overemphasized too. Again, it is unarguably the fact that most organized sectors depend on raw materials from the unorganized sector for processing into semi-finished/ finished products. Even though machines are being used in the extractive industry sector today, a good number of the fishes, hides and skins, cottons, cocoa, sugar cane, fruits, amongst others, still come from the unorganized sector to the semi-organized or organized sector as raw materials or semi-processed raw materials, before being processed into finished products. 
  • Making ends meet: It’s not uncommon to see that some who work in the organized or formal sector still pick-up employment in the unorganized sector to make ends meet, especially those with large families and bigger responsibilities. According to Ben Andrew on www.qoura.com, “…I do have two jobs. My wife and I both (sic) work. We could afford a house and two second-hand cars comfortably enough (sic), but saving was not easy… I got a second job in a fast-food restaurant…I do better than getting by on one job (I work for the Waltons), but things are better with 2”.
  • Process of Entry and Learning: When President Obama’s daughter, Sasha, worked in a restaurant during the summer holiday at age 15, her parents’ intentions were not on the earning but the training. They wanted to see their daughter being trained on how to handle future organizational tasks. In a nutshell, many people use organized or semi-organized employment to launch themselves into their future, building skills and learning the workplace’s general ethics. It is not uncommon for teens and young adults to engage themselves during vacations and Industrial Training in unorganized or semi-organized activities for several benefits.

Favorable Policies for Workers in the Unorganized Sector

Despite the International Labor Organization (ILO) charter and those of the United States of America on the right and protection of workers, the least attention or non is being given to the unorganized sector. The government of The United States of America should hearken to the plight of workers in the unorganized sector by:

  •  Improving the Remuneration and Benefits of Employees in the Unorganized Sector: While the joy of those who work in the organized sector knows no bound with the move by Biden’s administration to increase their minimum wage from $7.25 to $15; those in the unorganized sector are currently crying helplessly as they would be eschewed from this benefit. It’s no doubt difficult to implement the same minimum wage for all in the unmonitored, unregulated, and undocumented unorganized sector. However, the government should make a policy to make workers in the unorganized sector enjoy at least half of this minimum wage ($7.5), considering the implication of inflation. Again, there should be health incentives and educational incentives for people in this sector. Several factory workers who sustain injuries as part-time or low-level staff become disabled or partially disabled over time due to poor or zero health benefits. 
  • Removal of Payroll taxes for Low-Income Workers: Fending off payroll taxes would enable low-income earners to save money and meet other pressing needs. 
  • Provision of Loans for Those in the Unorganized Sector Especially, Small-Scale Business Owners: Giving loans to small-scale business owners will allow expansion and growth of their businesses. They will become capable of hiring others, thereby reducing the rate of unemployment in America. More so, the current Temporary Assistance for Needy Families (TANF) should be reviewed and softened to accommodate more people in the unorganized sector.
  • Establishment of Skills Acquisition and Development Academy or Institute: An Academy or Institute for rigorous skills development should be established. Organizations and Corporations that need a workforce can source for and adopt certified skilled men & women from this institute. Promotion of staff from low-level to mid and upper level in organizations should also be strongly encouraged.
  • Protection against Unjust Acts: Countless number workers in the unorganized sector suffer different forms of power and injustice from time to time in America. Child-labor, child-trafficking, denial of benefits already worked for, forced prostitution, being used as tools for smuggling, and drug dealing are but to mention a few. The judicial system should defend & protect these people at zero cost while punishing offenders. 
  • Child-Birth Control Policies Should be Put in Place: Surveys over the years have shown that many people in the unorganized sector find it difficult to meet their family needs, not only because of their low-income or wages but too many numbers of children. Uncontrolled birth makes it difficult for them to accommodate, feed, clothe and give their children proper education and healthcare.
  • Punishing of Racists and Xenophobes: While strong campaigns should be carried out against all forms of racism and xenophobia in the workplace and all other sectors, offenders should be punished to serve as detrimental to others.

Conclusion

Protection of workers in the unorganized sector is paramount as it takes low-income earners, unskilled workers, small-scale businesses, amongst others, into consideration. Again, while depression, crime rate, drug trafficking, prostitution, racism, and xenophobia will become minimal via the protection of workers in the unorganized sector, the overall benefits of their products and services to Americans and America cannot be overemphasized.

How Can Workers In The Unorganized Sector Be Protected?

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