Social Security is Struggle for Survival

1. Towards a Regional Social Security Minima(Asian Round Table on Social Security, Chiang Mai, Thailand, August 2011)SurendraPratapCentre for workers educationNew Delhi, India

2. Social Security is Struggle for Survival • New international division of labour: Global assembly lines extend up to homes; global value chain assimilates all workers & TNCs control Fate of all • Labour intensive, environmentally costly manufacturing shifting to third world • Export led growth: profit maximization by exploitation of vulnerabilities of labour; unrestricted capital mobility aggravating the problems further • Deregulations at national and reregulation at international level: Supranational agencies acting as global governments; Social rights considered unjustified costs • Inability of the nation states to legislate on social rights reduces power of people to affect policies; and it is also a factor making states more repressive •  Wellbeing of people left to magic of ‘market god’ & CSR of ‘corporate priests’ • Globalization: commoditizing everything, forcefully converting all public space in to private space, transferring ownership/control of all in corporate hands. • Informalisation: Struggles for transforming unorganized sector in to organized sector (e.g. India: applicability of V-B of ID act to factories with 100 or more workers (earlier 300 or more); Contract Labour Act 1970). Trend reversed

3. Social Security is Struggle for Survival • With the disastrous impact of globalization becoming more and more visible, the issue of Social Security is emerging as an important agenda both for states and the labour/people • The motives are certainly different but for both capital and labour, the compulsions for emphasis on social security are generated by the same ground realities. • For labour and the people at large this is an issue of survival. And for the states this is an issue of watering down on the discounts of the people/labour to minimize the chances of anti-capital volcanic movements, and to project a better image of corporate led globalization by putting a glossy cover on the barbaric reality • Not ensuring survival means throwing the workers in slavery on the one hand, and not setting any base level for collective bargaining on the other—In overall terms it drastically reduces the collective bargaining power of the workers, and the people at large

4. Social Security is a Right and not a Charity • Raising the issue of social security is actually questioning the development strategy itself • If economic growth is not bringing comparable development in living standards, educational-cultural standards of the people and democratic institutions in the society, then why this development and for whom? • From the 20th century to 21st century, the labour productivity has gone up by more than 1000 times (In 1920 steel production needed more than 3 worker-hours per tonne and in 2000 it needed only 0.003 worker hours per tonne). Is it not a ground to ask for reduction of working hours and more benefits to workers • But what is happening: GDP is growing but wages are going down, workers are compelled to work for 10 to 12 hours • In overall terms Globalization is facilitating a process of looting the workers/people and benefitting the corporate . So there is an obligation for corporate to pay back and people have right to get back. The state has the responsibility to ensure this get back from the people

5. Basic Social Security A basic social security fund must be created by the government by collecting 75% of the funds from the corporate by way of progressive taxation and 25% from the people by way of progressive taxation. It is to be run by tripartite body of workers’ organisations, state and employers’ organisations. The basic social security must include the following aspects: • Employment as legally enforceable right to all and Unemployment compensation (for all long term and periodic unemployment • Subsidized education, health &sanitation, drinking water, housing facilities to all • Food Security to all (subsidized food items throw Public Distribution system) • Ecological Security to all (maintaining the ecosystems and prohibiting any activity disturbing it—to protect the people from eco-disasters) • Land reforms to increase the average size of land holdings • Subsidized inputs to small farmers; and also to other self employed producers • Old age pension & Disability pension • Maternity benefits to all women. Those who are employed in industries, the cost goes to employers (as it is part of wages) and for the rest- to be covered by social security fund

6. Contingent Social Security It is necessary to establish an Industrial contingency fund (categorized industry wise also) at district level by instituting a system of collecting proportionate contributions from all employers by way of progressive taxation. All workers (formal & informal, private & public sector) in the districts must be registered under the Industrial Contingency Fund (registered industry wise ) • Unemployment by dismissal/retrenchment/layoff /closure : Compensation of 6 months’ salary to be paid by employers and after six months considered unemployed under basic social security • Employment injury compensation: Total wage for whole period of out of work, and treatment cost +compensation for any minor or major disabilities created by injury must be paid by the employers • Death or major disability : Disability pension or alternative livelihood to survivor + compensation, free education &health cover to family. For workers employed in the industries, total responsibility goes to the employers and in case of others the responsibility goes to the state • Livelihood destruction and displacement (due to natural or man made disasters): Decent alternative livelihood ensuring comparable income + rehabilitation along with compensation. The total responsibility goes to the state • Crop failure/ destruction or death of cattle etc: Enough support to compensate for the losses and to regenerate their livelihood security. The total responsibility goes to the state

7. Minimum Wages and Social Assistance • The issue of employment rights, minimum wages, poverty and social assistance are linked with each other. • Employment as legally enforceable right to all and decent wages are the two crucial factors which can resolve the problem of poverty and insecurity, so major focus of social security must be on these two aspects. • The minimum wages are to be deconstructed and each part must be accounted separately. Then only we can judge the correctness of minimum wages, poverty line and the amount of social assistance to be paid to the unemployed or those not able to work.

8. Minimum Wages • Basic Wages (not less than 50% of country average wage), for basic minimum fam. Expenses in: Food and fuel, drinking water, sanitation, clothing, lighting Education Health Recreation, festivals, Marriage etc Social travel and communication etc • Dearness allowance • Housing rent • Maternity benefits • Additional travel allowance for daily travel to workplace • Lunch and Tea allowance for working days • Additional Clothing allowance for workers • Compensation for frequent intermittent periods of unemployment due to informalisation (on the basis of average days of unemployment for casual workers in different sectors and different regions) • Productivity bonus: increment in Basic wages with the same percentage points as increase in GDP • Provisions for old age-Provident Fund and Pension • Employment injury compensation (in addition to leave with pay and treatment) • Retrenchment compensation equal to six months salary

9. Social Assistance • Following portion of minimum wages represent the minimum social assistance to be paid to the unemployed or those unable to work, because it represents the basic human needs that are to be guaranteed to every human being. Poverty line must also be defined on the basis of this: Basic Wages+Dearnessallowance+Housingrent+Maternity benefits • A public distribution system to provide at least cereals, pulses, edible oils, sugar, salt, fuel, cloths, soaps etc at subsidized rates • Subsidised inputs to self employed producers in agriculture and other traditional occupations • Subsidised and easily accessible/approachable health services • Free education up to 12th standard and subsidised higher education • Maternity benefits

10. Compliance of minimum wages • Taking advantage of rampant informalisation, huge reserve army of labour and competition among workers, the employers easily violate the labour laws and do not pay the minimum wages. • Without a structured system of hiring labour, the compliance can not be insured. The most effective way to build such a system in present conditions can be establishing Labour Employment Centers (by government in collaboration with labour organizations) in all industrial regions and all cities and rural centers and making it compulsory that all workers in the regions must be registered with these centers, and hiring labour for any work must be done through these centers

11. Regional Minima • The campaign for social security in Asia means building dynamic movements for social security system in ASEAN, SARC and APEC, which are formulating common economic policies, and therefore emerging as the regional authorities • Regional Common Minimum Social Security does not mean advocating for a common basket of social security with same amount of items; rather it means a common structure of basic social security and contingent social security system • Rather than comparable amount of minimum wages at regional level , it is more rational to advocate for common structure of minimum wage at regional level, with Basic Wages not be less than 50% of the country average wage, and with a provision to automatic increase in basic wages with same percentage points as the increase in GDP • In the same way, a common regional structure for providing social assistance can also be proposed to include at least that part of minimum wages including basic wages, dearness allowance, housing rent and maternity benefits. • A common regional Strategy to generate employment can also be proposed : employment generation by way of development works • It may also be proposed as common regional social assistance program to provide daily necessities at subsidized rates through public distribution system, and subsidized inputs to self employed producers

12. Consolidating & Reorienting Campaign • Formation of three working groups with in AROSS: ASEAN social security campaign, SAARC social security campaign and China social security campaign • Undertaking research studies to conceptualizing and programatising the social security issues in above three regions and integrating them as Asian Social security movement • Developing and expanding alliances with various organizations working on social security issues in above three regional groupings • A quarterly new letter on Social Security movement in Asia, with an objective to provide information and analysis on various issue of social security and furthering solidarity

13. Thank YouSurendraPratapCentre for workers educationNew Delhi, India