5757-Article Text-7684-1-10-20090319 PDF
5757-Article Text-7684-1-10-20090319 PDF
5757-Article Text-7684-1-10-20090319 PDF
UNORGANIZED LABOUR
B A R B A R A H A R R I S S -W H I T E AND
NANDINI GOOPTU
I f class struggle is first a struggle over class and second a struggle between
classes, we can say that the overwhelming majority of the Indian work-force
is still kept engaged in the first struggle while capital, even though stratified and
fractured, is engaged in the second.
India’s capitalist economy has a GDP about the size of Belgium’s, but with
a hundred times the number of people and of course a radically different
history. Out of India’s huge labour force, over 390 million strong, only 7% are
in the organized sector. Even the term ‘organized’ is seriously misleading
because only half of the 7% is unionized and in the vanguard of working-class
politics.1 The union movement, despite the efforts of workers, has been
exposed to the exertions of political parties, machinations of the Indian state and
onslaught of employers, so becoming fragmented and failing to represent
consistently the interests of organized labour. ‘Organized sector labour’ means
workers on regular wages or salaries, in registered firms and with access to the
state social security system and its framework of labour law. The rest—93% of
the labour force—works in what is known as the ‘unorganized’ or ‘informal’
economy.2 Unorganized firms are supposed to be small. In fact they may have
substantial work-forces, occasionally numbering hundreds, but where workers
are put deliberately on casual contracts. There is actually no neat boundary
between the two categories of labour. Some sectors, notably mining and dock
labour, straddle the divide. In practically every ‘organized’ firm, including state-
run corporations, unorganized labour is selectively incorporated into the labour
process.3
90 SOCIALIST REGISTER 2001
tion industry, quarrying and petty trade are working as shock absorbers, but
ones with ever weaker elasticities of employment.9 Public infrastructure (irri-
gation, roads, stores, electricity, industrial estates) is known to work
synergistically with private investment but has atrophied. Un- and under-
employment are on the increase and of late the real wages of workers in the
unorganized sector have stagnated and in some areas have declined. All this was
clearly foreseen by the World Bank in 1989 which predicted some 8–10 million
of extra unemployment from the stabilization phase alone.10
Cheek by jowl, even in rural India, a household with assets worth $200,000
these days has near-neighbours worth a mere $6. We agree with Sheila Bhalla
that the new economic policy has been most successful in generating ‘gross
inequality—not the straightforward kind where most people get better off, ...
(although) the benefits of growth accrue more to the rich than to the poor, but
the really mean kind where the rich get richer and the poor get poorer, not just
in relative terms but absolutely’.11
Indian capitalism has developed in distinctive eras, strata, sectors and
regional blocks. The tiny minority of labour in the corporate and public
sector—the so called ‘commanding heights of the economy’, increasingly
confronting orogenies of global capital—accounts for 20% of GDP. Its fastest-
growing and most publicized sector, software, amounts to 10% of India’s
exports yet it is a mere 0.1% of the global software trade. The brain drain has
effectively deprived India of the engineers who drive software innovation.
India’s ‘cheap labour’ is not yet playing the role of global educated reserve army
which has been attributed to it.12 It relies in turn on wage goods produced by
the altogether cheaper labour, which is the focus of our essay. Agriculture is still
the largest single sector. While its share in the economy shrank from 41% in
1965 to 29% in 1994, during a period when both its technologies and its rela-
tions of production were transformed,13 its share in total employment has hardly
changed—from 73% to 67%. Its labour productivity remains stagnant, currently
at around one-third of that in manufacturing and services.
The bulk of the Indian work-force consists of the catch-all category of the
‘self-employed’. Although ‘self-employed’ may cover small family businesses,
for the most part people classified this way are semi-independent peasants with
small assets, petty commodity producers and traders. They exploit their own
households and often both hire in and hire out labour according to seasonal
peaks, their independence concealing ‘sundry forms of wage labour’.14 One
recent estimate is that 56% of all Indian workers are ‘self employed’ in this guise,
29% are casual wage labourers and just 15% are in any kind of regular waged
or ‘salaried’ employment whether organized or not.15 ‘Self-employed’ people
are entering labour markets in droves and being chosen for their experience by
employers in preference to the third of the Indian population who have no
assets at all.16 The implication of having miniscule assets is the constant manage-
ment of a trade-off between the calendar of demands of accumulation from
petty production and trade and the compulsions of wage labour. The implica-
92 SOCIALIST REGISTER 2001
tion of being casual labour is that while employers will stop employing wage
labour beyond the point at which marginal returns and costs are equalized,
employees themselves will seek to maximize work days, a practice called ‘self-
exploitation’.
Attempts to model Indian workers as objects in a set of markets in which
their prices vary according to supply and demand have proved to have a limited
purchase on the real relations of labour, even when these relations are essen-
tialized as money wages.17 Indian labour is not competitively priced. It is highly
heterogeneous. Not only its returns but also its politicization are shaped by the
social construction of all the markets that make up Indian capitalism. In the
struggle between classes, capital attempts to enforce its control of labour not
only through the manipulation of various non-class social identities but also
through the segmentation and fragmentation of labour markets. For instance,
the blurred boundary between the organized and unorganized sectors is also a
division across caste and gender.18 The uneasy relationship between the struggle
for, and that between, classes is central to the politics of Indian labour. The
tactics by which the various fractions of Indian capital control labour are
comprehensive and pervasive—not only at work but also outside work, and in
the domestic as well as the public sphere. These tactics also operate through the
state. Long before ‘liberalization’, capital has rained body blows on organized
labour. However, the world of labour is not always what capital wills, for labour
often reshapes and complicates that world. Employers’ practices often undergo
significant changes as a result of the efforts of labour, however limited or frag-
mented, to gain control over labour time and labour processes and increase
pay.19
Both labour and capital are shaped for their routine encounters not only by
class but also by gender, caste and point in the life cycle. The constant working
of these relationships may involve aspects of life outside work which may
distract from or compensate for class-based action. They also make for signif-
icant differences in the terms and conditions of work. In a recent study of two
villages in West Bengal, twelve different types of wage-labour contract were
found. There was no single village wage for casual labour. For any one kind of
contract there was a great diversity of detailed terms and conditions, including
pay. Households did not map onto types of contract such as ‘casual labouring’
or ‘permanent labouring’. Labour contracts were affected by gender (more
open-ended obligations and less power to choose for women), caste (which
affects the tasks available to a household), age, and household composition. All
these factors led to variations in the earnings of landless labourers.20 Such axes
of segmentation make for multiple solidarities which tend to make collective,
class-based action harder to achieve.21
In the rest of this essay we try to map the dialectic between the way capital
has manipulated labour relations embedded in Indian social institutions, and the
politics of labour,22 which will also lead us to examine the ability of the Indian
state to respond to the needs and interests of labour. Moreover, the politics of
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 93
labour does not remain confined only to responses to strategies of capital, but
is also crucially shaped by the identities and perceptions of labourers themselves.
Such politics, perhaps more appropriately identified as the politics of the poor
than of labour, is a significant reality for labouring people. The transformation
in labour conditions, be it through the agency of labour itself or capital and the
state, cannot happen without initiatives and struggles by workers. Globalization
and liberalization have intensified the need for these struggles.
THE SPATIAL UNIT FOR LABOUR
The social construction of the spatial unit for labour varies hugely in India.
Rural workers have begun to migrate seasonally on a large scale. ‘People who
migrate this way are not “just” migrants. They may also be own-account
farmers, petty traders, school students, gatherers and priests’.23 Buses designed
for 50 people can be found transporting 190 on peak days. New sources of
demand for labour for harvests hundreds of miles away or in seasonal ‘mud
work’ (construction) enable migrant labour to raise agricultural wages and to
break free from debt relations and other demeaning practices in their villages
of origin.24 Nevertheless, the village still tends to be the key unit for the orga-
nization of labour, particularly for women workers who are stuck with
housework and children. Familiarity counts in employers’ decisions whether or
not to spend time supervising operations. Both employers and employees have
expectations about future work based on compliance and loyalty. The struc-
tures of differentiation in land relations, through which demand for labour is
organized, vary village by village. So in the absence of highly developed rural
transport (which is still rare), even if daily casual wages are known to be higher
in the next village, labourers, especially women, often do not seek them. In
turn this generates a fundamental lack of symmetry in the relations between
agricultural employers and casual labour. While employers may not always
maximize profit, they are able to use non-economic means to exploit workers;
meanwhile workers are unable to maximize wages. Since those who do travel
to get better wages are mostly men, it is hardly surprising either that the gender
differential in wages is widening.25
Outside agriculture, even though the distribution of non-agrarian castes such
as weavers (being based on networks, routes and towns rather than spatial terri-
tory) may still shape recruitment, in urban areas the geopolitical unit for a given
labour market may be small.26 Individual small capitalists set the terms and
conditions of their labour contracts. Even when casual wages are ‘agreed’ across
a sector within a town (in actuality usually imposed by associations of
employers, often without any consultation with labour), the implicit terms for
‘casual’ labour (which may include hours, bonuses and perquisites) can be
altered individually.27 So also can the breakdown between the cash and kind
(food) components of wages. Such practices prevent easy comparisons.
So the small-scale and fragmented nature of labour markets restricts collec-
tive action on the part of work-forces encompassing several villages or a
94 SOCIALIST REGISTER 2001
segment of the non-farm or urban economy. The excess supply of labour also
means that the threat of dismissal hangs over negotiations. Despite these
constraints, small groups of workers do try to negotiate their terms of employ-
ment at the level of the individual village or firm, and at times achieve wage
increases or changes in employers’ practices by ‘formalizing’ terms of employ-
ment.28 Their action is, however, focused on individual employers in the
locality and is rarely of long duration, with the possibility of reversals and with
few implications for the wider labour market. The anthropologist Jan Breman
has argued that the movement of labour between firms or over short distances
to get other jobs ‘must be explained as a deed of protest’, and that ‘as employ-
ment becomes less regular and wages lower, the intrepidity of the underdog
seems to increase’.29 Breman interprets such actions as expressions of proletarian
class consciousness, showing workers’ increasing refusal to accept their condi-
tions passively. The fact remains that these attempts at wage negotiation or
escape have no general impact on the relations between capital and labour, and
fail to be enlarged into collective class-based resistance. The problem is not that
workers lack political consciousness or the willingness to resist their exploita-
tion, but that the structural constraints are too severe. Where resistance occurs,
employers often resort to force and violence, often with the complicity of the
local state and the police.
COERCION IN CONTRACTS:
PATRONAGE AND DEBT-BONDAGE
To reduce costs capital has a powerful interest in labour which is flexible.
Flexibility is commonly achieved by capital through casualization and by labour
through its physical movement. Yet many employers (rural and urban) want
people to work at their literal beck and call: to work with cattle, irrigation,
monitoring consignments of grain in town, shifting between workshop/firm
and farm, between farm and family. Although outright, permanent, inheritable
bondage is illegal and increasingly rare, labour is commonly tied not only by
site but also by debt, by contracts which link in a single agreement terms and
conditions for labour with those on land, money or product markets, and by
the non-contractual obligations of patronage which may also require the work
of the women and children of a male labourer. Such ties have thrived on the
lack of symmetry of power associated with customary rights, particularly with
rights of employers to command family labour and rights to terminate the rela-
tionship. There is no archetype for such arrangements, and much regional
variation in their incidence and intellectual contest on the left about their signif-
icance in the process of capitalist transformation.30 They are widely argued to
be breaking down thanks to (i) migration which offers alternative work; (ii)
new technology which reduces demand for labour; (iii) struggles by labour for
contracts less encumbered by customary notions of dependence, inferiority and
obligation; and (iv) other efforts towards emancipation, sometimes organized
along lines of caste.31 Yet the skein of patronage may uncoil only to recoil in
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 95
the form of debt-bondage and labour attachment. Throughout South India for
instance, the refusal by labourers to perform collective, unpaid irrigation ‘duties’
as ‘clients’ of a new stratum of lower-caste landowners—work their fathers
performed for Brahmins who have since then sold their land—has contributed
to ruining the longstanding system of tank-fed agriculture and forced
landowners to invest in (or rent) private wells. The provision of accommoda-
tion and/or debt can then be used to force labour to operate electric pumpsets
at night or whenever rationed electricity is available.32 Farther north in Andhra
Pradesh the refusal by men to accept this sort of contract means that women
have graduated from being the assumed adjunct to permanently employed
(‘attached’ or close to bonded) male labour to having such contracts in their
own right.33 In Jan Breman’s region, Gujarat, ‘neo-bondage is less personalized,
more contractual and monetized, while also the elements of patronage have
gone, which provided some protection and a subsistence guarantee, however
meagrely defined, to bonded clients in the past’.34
The consequence of neo-bondage is that emancipatory politics has had to be
focussed ‘upwards’ towards and against local patrons. Resistance usually
consists in violating debt obligations and escaping, though it can also take
collective forms.35 Where bondage is now largely ‘economic’ (enforced with
physical violence, when necessary) and not based on social (and indeed legal)
legitimacy, or on workers’ acceptance that employers are socially and ritually
superior and have the right to extract labour, workers do resist coercive
arrangements, even though they are still forced to enter into debt relations for
job security or out of sheer penury. Some even choose the more risky option
of wage labour on piece-rates, eschewing the security offered by debt-bondage.
While this may not improve their economic condition, it ‘might benefit the
dignity of labour’ and signal an emancipatory move, according to Breman.36
LABOUR-LAND RELATIONS
In the segmented labour and land relations in agriculture the detail of the
labour process reflects local class configurations and the mode of appropriation
and accumulation of surplus. Capitalist landowners set the terms and conditions
of work, the most important of which is a socially determined wage. Their
dominance is bolstered by caste authority and political clout. The size of their
holdings, their production decisions (crops, technologies) and their investment
decisions (particularly in irrigation and in the non-farm rural economy, in
sectors like trade, finance, construction, mills, looms, processing industry and
transport) determine the demand for labour.37
The technologically precocious region of north-west India is a case in point.
The early stages of the green revolution were highly labour-absorptive. Large
landowners responded by luring some labour into permanent contracts to tie
them, while shifting others to piece-work and gangs (‘contract’ labour) to
reduce labour costs. They also subdivided tenancies to reduce the costs of
supervising labour and to ensure that unwaged family labour contributed to
96 SOCIALIST REGISTER 2001
six to seven times that of men. One million jobs may have been lost in the
1990s. Female underemployment (women looking for more work) is also
increasing at a faster rate than for men.49
The literature gives an overriding impression that women are as docile polit-
ically as they are reputed to be economically. But the support of women (taking
the form of unpaid work, or even willingness to bond their own labour) has
sometimes been important to struggles by men. In Bihar, women who are not
bonded and who have employment options outside agriculture have taken the
lead in strikes.50
AGE AND WORK CAPACITY
Child labour has always been part of the family labour force. Nearly two-
thirds of child labour is of this sort. It is the continuity between this and paid
work on the one hand, and the state’s egregious neglect both of education and
of any means of implementing the existing limited law banning child labour in
hazardous industries on the other, which penalize the children of agricultural
labourers.51 The latest estimate is that while 40 million children work, 13
million or 6% of the 215 million children aged between 5 and 14 work for
wages, the casual component (one-third) of which is slowly rising and being
feminized. ‘It is not that the economy cannot do without child labour, it is
rather that many children cannot do without employment’ comments Ajit
Ghose. This begs questions about why. If they are orphans or escaping abusive
families, or if their parents are sick or disabled, then they lack access to social
security. If their parents are underemployed and looking for work then
employers’ cost-cutting may account for it. If their parents are employed then
their low wages—and sometimes their ‘selfish’ consumption patterns (especially
that of alcohol by men) explains why children labour. When adults are unem-
ployed or mired in debt-bondage, children have to join the labour force.52
Apart from domestic reproductive work, agriculture and animal husbandry,
there are certain industries where children are extensively used in preference
to adult labour, the Sivakasi match-making ‘cluster’ being a notorious case.
Controlled by influential business families, it is organized at home or in
sweat/work-shops. The state turns a blind eye in various ways—from exemp-
tion from the Factories Acts to not enforcing the Minimum Wages Act.53 Child
labour is only slowly on the decline as (non-mandatory) primary education
diffuses at a snail’s pace. Illiteracy and poor levels of education lead to casual
labour, with predictable consequences generation upon generation.54
There is, of course, no age of retirement for ‘unorganized’ labour. Instead,
people are incapacitated from the labour market by the physical insults of old
age, by deteriorating eyesight and eye defects (in agriculture after decades of
staring at the reflected sun in wet fields, in weaving by years of close work in
dim light), and by occupation-related accidents and diseases. There is increasing
evidence that employers will screen labour for physique and pay differential
piece-rates according to workers’ physical condition.
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 99
that limits class conflict. Their collective political agendas, focusing on claims
and privileges from the state and on the control of derived markets (for instance,
through negotiating and fixing the rates for lorry transport, by-products, credit,
porters, cartmen and casual labour), push labour issues low down. Through
collective action based on ‘occupation’, decisions are taken to lengthen
working days, flout other aspects of the labour laws and ignore safety provisions.
Even when employers and employees belong to the same caste, terms and
conditions can be imposed on labour and attempts by labour to unionize can
be collectively resisted by upholding caste solidarity. Ways of organizing labour
can be encouraged which disempower workers: associations of ‘textiles
workers’ are actually (caste-based) master weavers. We have also found orga-
nizations representing yarn twisters, market-place porters and handcart pushers
entirely managed by bosses.58
Yet while caste is used by employers to exploit labour and keep it frag-
mented, labourers too deploy caste identities to organize and, often, to enhance
their status and express dignity in the face of exploitation. Workers may empha-
size caste linkages to maintain their hold over a particular enclave of the labour
market (for a ubiquitous example, scheduled caste municipal workers). When
employers and labourers belong to the same caste—e.g., in the diamond-
cutting industry in Surat (Gujarat), or in the industrial district making cotton
knitwear in Tiruppur (Tamil Nadu)59—labourers often emphasize their caste
solidarity with employers, thereby ensuring the exclusion of other caste groups.
This has ambivalent effects. While such a monopoly benefits labourers, their
reliance on vertical caste ties undermines their ability to challenge exploitation
by employers. (There has never been a strike in the Surat diamond industry,
despite extreme exploitation and physical abuse.)60
No less importantly but far less instrumentally, however, caste plays another
role in labour politics. It has provided an idiom for many sections of the
labouring poor, especially lower castes, to organize politically, although not
always within the context of work or labour relations. Social movements and
the political mobilization of untouchables (or dalits) in India in recent years have
gained momentum in their search for dignity and social status. They have
turned to the state for protection of their rights and for preferential access to
public employment and education. Caste-based social movements have devel-
oped synergies with the work-place based politics of lower castes. For instance,
scheduled caste municipal sanitary workers have organized to improve working
conditions and wages, and at the same time have established caste associations
for the internal reform of their caste, demanded recognition and dignity and
challenged the legitimacy of ritual subordination. Lower-caste groups have also
attempted to forge horizontal linkages with cognate castes of labourers and thus
expanded the scope of mobilization. That lower-caste labourers in both rural
and urban contexts now more actively contest the power of their employers
cannot but be understood within the context of a wider process of political
mobilization. In rural Bihar, the struggles of scheduled caste/untouchable land-
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 101
origin (local), caste (usually not scheduled), and gender (male). Permanent work
offers a diversity of livelihoods ranging from the night watch to accountancy,
but all requiring individual trust. Contracts are individualized and verbal. They
vary in their periods of payment and of notice of dismissal, the one delayed
(sometimes pay is yearly) and the other instant. Some permanent jobs can be
part-time, some seasonal. Many bosses agree to time off for employees to work
their own land or to do periodic trade, or they make working on the owner’s
land integral to the factory or workshop ‘contract’. A primitive form of occu-
pational welfare is usually extended to this part of the labour force. Employers
will give loans and also ‘gifts’ of petty cash for purposes such as medical expen-
diture, education and marriages. At one and the same time these acts parody
state social protection and reveal how capital acts opportunistically to tie up
labour it does not wish to lose. In stark contrast, the casual labour force is char-
acterized by low and fluctuating pay, higher turnover and no security. While
labour recruiters may be given annual bonuses and lent small sums of money,
attempts are made to turn labour over so as to reduce its customary entitlement
to annual gifts and to avoid protective obligations.
Male casual labour is occasionally unionized.63 Yet the multiplicity of unions
invites the political mediation of disputes, which are rarely resolved in favour
of labour. The labour laws tend not to be enforced by unions but by the state.
Factories Acts inspectors with huge territories to cover and few resources with
which to enforce the law are more often than not found to be implicated with
bosses in a nexus of corruption around the evasion of labour protection laws
and the erosion of labour rights. Female casual labour is subjected to extremes
of casualization, negligence and harassment and to unsafe and unsanitary
working conditions, their wages often being reported by bosses as ‘pocket
money’. In such firms, work has for decades been subcontracted, often
exported to rural sites to avoid inspection and to profit from cheap or unwaged
family labour, from low rents and from the ease of evasion of any ‘welfare’
obligations and taxes. So capital uses informal practices and the idiom of social
protection highly selectively so as to render the majority of the work-force inse-
cure and a small minority less insecure. But the latter works in ambivalent ways
which not only protect but also bind the beneficiaries. As a result the microp-
olitics of labour within a firm may be complex.
THE STATE AND LABOUR
India has two forms of state-mediated social protection. In the first, the state
favours its own employees. ‘Public employees are served best, or rather have
ensured that they are best served’, with respect to pensions, provident funds,
sickness, maternity and unemployment benefit.64 Twelve percent of the
work-force is covered, overwhelmingly male. The state also gives persistent
subsidies to the highly regulated ‘market’ for social insurance—covering at best
8% of (male) lives—and experiments endlessly (but with few successes) with
ways and means of increasing the coverage of insurance. Granted this jungle,
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 103
the idea that a welfare state or ‘protective social security’ is a luxury India
cannot afford is contested by few. It then becomes possible to argue that the
ramshackle and leaky raft of anti-poverty policies, targeted development
schemes, employment guarantees and food security measures managed through
the public distribution of grain (all of which have their own histories and poli-
tics) are the appropriate, ‘promotive’ forms of social security.65 Certainly they
are the unsystematic ways in which the state ‘protects’ labour. They are all that
capital allows the state to achieve in this direction. Critics have retorted that
rather than promote labour they subsidize it for capital.66
The second system of social security, set up in Tamil Nadu in 1989 and
copied in New Delhi in 1995 (so that the legal framework exists for other states
to implement67), is a major departure from this orthodoxy. Consisting of
pensions for the aged, widows, agricultural labourers and physically handi-
capped people, survivor benefit, maternity assistance, marriage grants and
accident relief (to those under a poverty line set by local states and in this case
twice the national level), it amounts to 1.5% of state expenditure.68 It is not a
luxury. In the state where it was first implemented, old age and widows’
pensions were most consistently claimed, with one evaluation showing that a
third of those eligible were included after five years of operation. The pension
is $2.50 per month plus one free meal a day and two sets of clothing a year.
Many old people are found unsupported by their relatives, contrary to wide-
spread assumptions. Local discretion proves kinder than the official eligibility
guidelines which have proved harsh and restrictive. Even so the majority of
those eligible are not covered, particularly women. Long delays and bribes also
diminish this benefit. While the impact of this rough but unready safety net on
the lives of claimants may be very significant, its all-India impact on the secu-
rity of workers’ lives is negligible.
The work of the Labour Ministry may also have a limited, or even back-
handed, impact on workers. Take the labour laws.69 Their loopholes are big
enough for the proverbial bus to be driven through them. The Trades Union
Act allows registration but does not require recognition of trade unions as agents
of collective bargaining. While the Industrial Disputes Act curbs the rights of
employers, their powerful tool—the lock-out—is hardly penalized and the state
is empowered to conciliate through a judicial maze which makes workers
dependent on highly qualified, legally knowledgeable representatives. Any
union, however small, can intervene in labour disputes, thereby creating a field
day for manipulation by employers.70 The Minimum Wages, Contract Labour
and Child Labour Acts declare entitlements which actually have to be struggled
for by labour organizations. Further, without reforms to give access to the
courts and make their decisions binding, these laws are toothless. Labour orga-
nizations asserting claims to entitlement are, moreover, often dealt with under
criminal procedure. At best, all these laws have a normative role: to raise expec-
tations and act as a rallying point for mobilization.71 At worst the very laws
supposedly protecting labour encourage capital to informalize it.
104 SOCIALIST REGISTER 2001
which labour seeks to reshape and contest the world envisaged by capital
constitute a key element of work-place politics. At one end of the spec-
trum,‘everyday forms of resistance’ prevail, encompassing non-cooperation
with employers in periods of peak demand for labour, reneging on debt repay-
ment, or simply escaping and leaving a job; at the other end, wage bargaining,
protests and strikes.75 Yet while instances of labour agitation are not hard to
find, they are often exceptions to the general trend. Labour protests tend to
remain localized, small-scale, and focused on immediate employers—reflecting
the structural characteristics of the labour market and employment relations.
The possibility of an enlargement of scope remains severely restricted.
Moreover, with frequent changes in employment and employers, politics at the
work-place often becomes irrelevant.
It is hardly surprising, then, that the political expression of much of Indian
labour is to be found outside the context of work, in non-class modes and in
the arena of democratic politics and social movements. The political mobiliza-
tion of lower castes—those usually located at the lowest end of the labour
market and landless workers—has already been mentioned. The labouring poor
also forge solidarities in the locality and neighbourhood, albeit sporadically.
Their experience of control or exploitation does not remain confined to the
work-place. Labour discipline is also achieved through the branches of the state,
notably the police, especially in urban areas, where the labouring poor are the
most direct targets of police action and brutality. Increasing urban violence and
the mobilization against the police of poor people in urban neighbourhoods
reflect state control over labour’s public spaces. The exploitation of labour also
happens indirectly through the lack of urban housing, essential services, utili-
ties and infrastructure. In this, the local and national states and the local
propertied elites are all complicit. Not only is there no provision of public
housing to speak of, but local councils also fail to raise taxes from the proper-
tied to extend the provision of services. Capital has a conflict of interest. On
the one hand, it is in the interest of employers to ensure housing for workers
so as to reproduce the labour force. On the other, when labour is in excess
supply, and indeed in order to reinforce its mobile and flexible character, local
capital helps to prevent the creation of permanent habitats for labour by
avoiding investment in housing directly and by evading taxation. The direct
exploitation of labour at the work-place is thus not entirely separate from the
indirect exploitation of labour through the lack of provision of essential infra-
structure. Problems of housing and lack of urban services for workers have
crucially shaped their politics, with violent clashes in urban neighbourhoods
over space, territory and services, both among the poor themselves and between
the poor and local propertied classes or agents of the local state.76 While the
shortage of housing and infrastructure is a predicament shared by all workers,
the competition for these undermines class solidarity.
The ‘struggle between classes’ through formal unionization, while by no
means a negligible element of Indian labour politics, still only involves a section
106 SOCIALIST REGISTER 2001
of organized sector workers and a small fraction—4%—of the total labour force.
It is fragmented. The All-India TUC was founded in 1920 and has been
controlled since 1929 by the Communist Party of India; the INTUC was
created by the ruling Congress Party in 1947 deliberately to challenge
Communists and establish the role of government in the control of labour. The
Hind Mazdoor Sabha was formed by socialists in 1948, splitting in 1964. The
Bharatiya Mazdoor Sangh (BMS) was created in 1955 by the right-wing Hindu
nationalist Rashtriya Swayamsevak Sangh (RSS) to suppress class conflict; and
the Centre of Indian Trades Unions (CITU) by the Marxist Communist Party
in 1970 after the Communist parties split. Other union movements have been
created by regional political parties, pioneered by the Tamil Dravida Munnetra
Kazhagam, when it came to power in 1967 in the (then) Madras State. As
parties have split, so have their unions. Parties influence unions rather than vice
versa. Others have been formed in the corporate and public sectors and by indi-
vidual charismatic leaders. There is an increasing tendency for unions to be
based on regional, communal or caste lines. Labour unions, with some notable
exceptions, have historically concentrated on advancing the interests of those
whom they represent in organized industry, on whom the law confers the right
to engage in industrial action, and have ignored unorganized workers without
this right.77 Attempts to include unorganized workers in their constituency have
been perceived by unions to pose a danger to the meagre benefits that they have
succeeded in wresting for their own members. The existing form of the labour
movement thus remains irrelevant to the large majority of Indian workers.
Trade unions have even failed to protect the more vulnerable sections of union-
ized labour, such as women or lower castes, when they have come under threat
of retrenchment or have been unable to secure the benefits to which they are
legally entitled.
The union movement has also suffered from many external pressures. The
Indian state, even while it instituted a panoply of laws to regulate the relations
between capital and labour, has in practice upheld the interests of capital.
Indeed, it can be argued that the elaboration of a regulatory regime for labour
by the nascent independent state, committed to industrialization and the
nurture of private capital, was motivated by the need to relieve capital from the
pressure of organized labour and to contain labour militancy within the strait-
jacket of legal and bureaucratic negotiations. Indian labour unions emerged
under the umbrella of various competing political parties, which has fragmented
the trade union movement and fostered rivalry among trade unions.78 Labour
unions affiliated to political parties are often torn between the need to further
party political agendas and the responsibility to advance the interests of labour.
When unions linked with political parties have failed to uphold these interests,
workers have bypassed such unions and rallied around charismatic leaders or
organizations on caste, regional or sectarian lines. Alternatively, they have
formed semi-independent unions based in individual industrial units. The latter
have been more consistent in representing labour and have been in the
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 107
vanguard of militant agitations.79 They have also borne the brunt of the
onslaught by management, often with the connivance of the state. The most
radical employees’ unions, including those affiliated to Communist parties, have
been marginalized by the state and debarred by bureaucratic fiat from repre-
senting workers in industrial disputes. Political parties given to moderation have
also sponsored rival unions to undermine the influence of militant labour orga-
nizations and not infrequently acted in concert with employers.80
A trade union movement beset with internal difficulties, external constraints
and fragmentation has more recently, since the 1980s, come under a major
onslaught from capital and faced a new ruthlessness on the part of managers.81
Trade unions in the 1970s and early-80s were able to launch major strike
actions, notably in Bombay, in the context of changing patterns of labour
recruitment. The consequence was a major managerial offensive, both a frontal
assault and a war of attrition, against employees’ unions in particular.
Companies were determined to secure flexibility and impose control over pay
and over work schedules and work loads, which set the terms of collective
bargaining. In a drive to beat the unions into submission, lock-outs of facto-
ries were declared by employers following strikes, thus severely trying the
staying-power of labour. Rival unions, acting in concert with employers, were
deployed to fracture workers’ solidarity. Where unions did succeed in forcing
settlements in favour of workers, companies showed no compunction in
violating them, backed with lock-outs to prevent further agitation. Employers
also had recourse to Voluntary Retirement Schemes, refused to fill vacant jobs,
and unilaterally changed the nature of employment contracts, including the
conversion of bargainable grades into non-bargainable grades, not only to deny
workers the rights of organized sector employees, but also to redefine them as
not being ‘workers’ under the Industrial Disputes Act. In addition, production
units were relocated to geographically dispersed sites, and out-sourcing or
subcontracting became increasingly commonplace for large industries or facto-
ries. In this way, the organized sector itself came under threat with an expansion
in the ranks of unprotected labour which severely undercut the social
constituency of the trade-union movement.
In Mumbai, for instance, the impact of voluntary retirement schemes has to
be set in the context of a co-ordinated attack which involved interlocking
strategies, all centred on the progressive and systematic erosion of the
bargaining unit. The ability of companies to sub-contract was the single most
powerful weapon in this arsenal of strategies. It is clear that management had
finally decided to de-unionize labour and to press for de-unionization even at
the cost of large-scale destruction of jobs and closure of factories. Liberalization
has added considerable impetus to the employers’ offensive, but is clearly not
the cause of it. In this current climate, the creation of a vast pool of unprotected
labour is viewed to be integral to the (largely imaginary) pursuit of competi-
tive advantage, even though this is in complete violation of the social and legal
foundations of modern democracy.
108 SOCIALIST REGISTER 2001
EMANCIPATING FUTURES?
We envisage at least three vectors as being crucial to the development of a
politics of emancipation. First, the union movement urgently needs renewal so
as to encourage the rise of a pro-active, co-ordinated and self-governing trade
unionism, which invests substantially more resources in training and strives to
recover collective bargaining initiatives through inroads into company decision-
making. The remarkable examples of some Bombay-based employees’ unions
such as the Hindustan Lever Employees’ Union, the Philips Employees’ Union
and the Kamani Employees’ Union need noting in this respect.82 Renovation
means the formulation of wider political and social perspectives, from issues
relating to control over employee pensions, or work-place exposure to toxic
substances and the threat of hazardous production to local communities,83 to
active opposition to the repeated and ubiquitous violations of human rights and
labour law that pervade India. Yet, these initiatives are more likely to emerge
from the local independent employees unions. The central trade union lead-
erships have even sometimes endorsed positions that are diametrically opposed
to them, e.g., their willingness to buy into ‘national sovereignty’ arguments,
reinforcing sovereign nation-state control over domestic jurisdictions such as
child labour, political repression and labour standards.84 The seeds of such a
renovated unionism lie both in the past lessons and experiences of movements
like the employees’ unions, and in the growth of new work-forces in produc-
tive sectors that have sprung up since the nineties.
The second vector of change must be a set of clear public policy choices
which expand and give teeth to the legal rights available to workers regardless
of gender. A charter of rights would need the broadest possible remit, to cover
every sector of a complex and segmented labour market where, through delib-
erate lack of regulation, the bulk of the labour force is reduced, de facto, to a
condition of near-servitude; while, at the opposite end, elite or strategic groups
of salaried personnel are deprived of bargaining rights by arbitrary legal devices
which construe ‘bargainable labour’ in ways at complete variance with inter-
national best practice or ILO Conventions.85 Such a charter would mean a
political attempt to alter the background legal rules which affect the distribu-
tion of power and advantage in labour markets and society as a whole.86
Much of the thrust of economic liberalization in India in the nineties has
been an application precisely of such normative choices, but one based on the
assumption that freeing markets from regulation necessarily means greater
freedom for business from organized labour. In fact, throughout the nineties, de-
regulation has gone hand in hand with re-regulation, since no market exists in
a regulatory vacuum and rules are essential to the construction of efficient and
orderly markets. Labour is the remarkable exception to this process. But this
politics of liberalization is simply a construction of capital and the state’s
economic agenda, not an inevitable, much less absolute, expression of some
‘essence’ of liberal economic reforms. The second needed vector is thus a
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 109
conditions in the country, and the central interest of progressive political forces.
Moreover, a genuinely democratic vision of the Indian polity would have to
be a politics of totalization, given the embeddedness of labour in the whole
matrix of institutions which sustains the numerous trajectories of accumulation
in the country, from caste, communal and gender oppression to the various
forms of authoritarianism which exclude workers from citizenship and citizens
from democracy. It would no longer be possible for a democratic politics in
India to replicate the atomized and fragmented forms of reasoning and imagi-
nation which counterpose politics to economics, trade unionism to political
parties, or democracy to socialism.
NOTES
We are very grateful to Jairus Banaji and Rohini Hensman without whose
helpful advice, critical response and active contributions, particularly to the final
section, this essay would never have been written; to Gerry and Janine Rodgers
who supplied useful literature and to Danny Sriskandarajah who gathered statis-
tical information.
1. Sharit Bhowmik, ‘The Labour Movement in India: Present Problems and Future
Perspectives’, The Indian Journal of Social Work, vol. 59, no. 1, 1998, pp. 147–66.
2. Agriculture is included, even though land is registered, because of the small and
fluctuating size of labour forces on the vast bulk of individual holdings.
3. One recent study of corporate capital put the proportion of unorganized labour
in different corporations at between 40% and 85%. S. Davala (ed.), Employment and
Unionization in Indian Industry, Delhi, Friedrich Ebert Stiftung, 1992, quoted in
Bhowmik, ‘The Labour Movement’.
4. Nandini Gooptu, The Urban Poor and the Politics of Class, Community and Nation:
Uttar Pradesh between the Two World Wars, Cambridge, Cambridge University
Press, forthcoming; Christopher Baker, An Indian Rural Economy, 1880–1955: The
Tamilnad Countryside, New Delhi, Oxford University Press, 1984; Barbara
Harriss-White, A Political Economy of Agricultural Markets in South India; Masters of
the Countryside, New Delhi, Sage, 1996.
5. Kiran Desai, ‘Secondary Labour Market in India—a Case Study of Workers in
Small Scale Industrial Units in Gujarat’ in Maya Shah (ed.), Labour Market
Segmentation in India, Mumbai, Himalaya, 1999, pp. 13–28.
6. Poverty varies according to harvests and foodgrains prices. Two-thirds of those
said to be living on under $1 a day in the world today are in South Asia. Ninety
percent of India’s poor live in the poverty belt covering east and central India,
inland Maharashtra and eastern Madhya Pradesh, a diverse and scarcely urbanized
region. The official Indian poverty line is set and revised at a rural income allowing
for the consumption of 2,200 calories per day together with 20% for shelter,
clothing and medicine. By this account poverty was at its minimum (34%) in
1989. The intransigent persistence of poverty masks a massive increase in
inequality. Sheila Bhalla, ‘Liberalization, Rural Labour Markets and the
Mobilization of Farm Workers: the Haryana Story in an All-India Context’,
Journal of Peasant Studies, vol. 26, nos. 2/3, 1999, p. 30.
112 SOCIALIST REGISTER 2001
result of patriarchal power relations within households), or, because jobs bear social
meanings, low-status jobs pull low-status people and women are ascribed with low
status as people, or because women’s wage work is also at the mercy of patriarchal
discrimination on the‘market’. The jury is still out. The facts that women can be
paid less than men where tasks are directly comparable, that women are being
forced into attached contracts and that employers regularly refer to women’s wages
as ‘pocket money’ need setting against the successful struggle for gender parity in
minimum wages in parts of the rice bowl of West Bengal and in Kerala.
47. Sudha Deshpande, ‘Gender-based Discrimination in Segmented Labour Markets
in India’, in Shah, Labour Market Segmentation, pp. 118–129; Ramesh Iyer, ‘Labour
Market Segmentation and Women’s Employment and Earning Differentials in
India’, in Shah, Labour Market Segmentation, pp. 130–151.
48. Male consumption has been shown in a number of studies not only to be biased
towards the provision of investment goods but also towards male adult goods:
liquor and narcotics. Jayati Ghosh, ‘Macro-economic Trends and Female
Employment’, in Papola and Sharma, Gender and Employment, pp. 318–350.
49. Ghose, ‘Current Issues’; Varma et al., ‘Indian Labour’; da Corta and
Vankateshwarlu, ‘Unfree Relations’. In urban areas, while men are casualized, the
proportion of women workers on regular wages has actually increased, though
there is little opportunity for upward mobility and regular work is now threatened
again by ‘flexibilization’. See Pravin Visaria, ‘Level and Pattern of Female
Employment, 1911–94’ and Amitabh Kundu, ‘Trends and Patterns of Female
Employment’, both in Papola and Shah, Gender and Employment , pp. 23–51 and
52–71.
50. Kalpana Wilson, ‘Patterns of Accumulation and Struggles of Rural Labour: Some
aspects of agrarian change in central Bihar’, Journal of Peasant Studies, vol. 26, no.
2/3, 1999, pp. 316–355; Karin Kapadia and Jens Lerche, ‘Introduction’, Journal of
Peasant Studies, vol. 26, no. 2/3, 1999, pp. 1–9.
51. Education is still not mandatory and in the only state where it was made manda-
tory (Tamil Nadu in 1995) it has not been implemented. The law on Child
Labour is the Child Labour (Prohibition and Regulation) Act of 1986. See
Vasudha Dhagamwar, ‘The Disadvantaged and the law’, in Barbara Harriss-White,
S. Guhan and Robert Cassen (eds.), Poverty in India: Research and Policy, New
Delhi, Oxford University Press, 1992, pp. 433–448.
52. C. P. Chandrasekhar, ‘The Economic Consequences of the Abolition of Child
Labour: An Indian Case Study’, Journal of Peasant Studies, 24, 3, 1997, pp. 137–179.
53. The carpet industry in Uttar Pradesh and Jammu and Kashmir is another example.
It is known that many of the children here are virtual slaves, purchased with lump
sum payments to parents by agents for carpet manufacturers. Most of these chil-
dren come from the scheduled caste and tribes, agricultural labouring families in
Bihar, subject to fierce oppression from private armies of upper-caste landowners.
54. Yet secondary education produces a peculiar paradox for workers because it
behaves as a luxury good, fitting young educated people, especially women, not
to enter the labour market See Ghose, ‘Current Issues’.
55. John Harriss, ‘Vulnerable workers in the Indian urban labour market’, in Gerry
Rodgers (ed.),Urban Poverty and the Labour Market, Geneva, International Labour
Office, 1989.
56. ‘Scheduled’ in the constitution to receive positive discrimination. This is a term
116 SOCIALIST REGISTER 2001
for untouchables, Gandhi’s harijans (‘children of god’) and now self termed ‘dalits’
(the oppressed). For analyses of work-force data and data on the many dimensions
through which scheduled caste and tribal people are still viciously discriminated
against, see K. Nagaraj, ‘Labour Market Characteristics’, p. 84; D. Jayaraj and S.
Subramanian, ‘Poverty and Discrimination: Measurement and Evidence from rural
India’, in Harriss-White and Subramanian, Illfare in India, pp. 196–226; Sarah
Ahmed, ‘Occupational Segregation and Caste-based Discrimination in India’ in
Maya Shah, Labour Market Segmentation, pp. 67–92.
57. Oliver Mendelsohn and Marika Vicziany, The Untouchables: Subordination, Poverty
and the State in Modern India, Cambridge, Cambridge University Press, 1998, ch. 4.
58. Elisabetta Basile and Barbara Harriss-White, ‘The Politics of Accumulation in
Small Town India’, Bulletin of the Institute of Development Studies, vol. 30, no. 4,
1999, pp. 31–9.
59. Saurashtra Patels are owners, commission agents and traders, and they employ
labour from the same caste. In Tiruppur a significant part of the entire cluster,
owners and workers, are Vellalar Gounders.
60. For the Surat case see Miranda Engelshoven, ‘Diamonds and Patels: A report on
the diamond industry of Surat’, in Parry et al. (eds.), The Worlds, pp. 353–378. For
Tiruppur, see Sharad Chari, ‘The Agrarian Question comes to Town’, Ph.D.
Thesis, UC Berkeley, 2000 and see also Philippe Cadene and Mark Holmstrom
(eds.), Decentralized Production in India: Industrial Districts, Flexible Specialization and
Employment, New Delhi, Sage,1998.
61. Gail Omvedt, Reinventing Revolution: New Social Movements and the Socialist
Tradition in India, New York, M. E. Sharpe, 1993, pp. 58–61. Clean castes are
those not ritually polluted.
62. Karin Kapadia, ‘The Profitability of Bonded Labour: the Gem Cutting Industry
in Rural South India’, Journal of Peasant Studies, vol. 22, no. 3, 1995, pp. 446–83.
63. Workers in the unorganized sector are under 1% of all members of trade unions.
64. S. Guhan, ‘Social Security in India: Looking one step ahead’, in Harriss et al.
(eds.), Poverty in India pp. 282–300.
65. Etisham Ahmed, Jean Dreze, John Hill and Amartya Sen, Social Security in
Developing Countries, Oxford, Clarendon, 1991.
66. Wendy Olsen, The Limits to Conditionality.
67. This was in a highly opportunistic last-ditch attempt by the then ruling Congress
Party to drum up pre-electoral support.
68. This amounts to 0.4% of state domestic product. See Barbara Harriss-White,
‘State, Market, Collective and Household in India’s Social Sector’ in Harriss-
White and Subramanian (eds.), Illfare in India, p. 316.
69. The 1926 Trades Union Act; the 1947 Industrial Disputes Act; the 1948 Factories
Act and Employers’ State Insurance Act; the 1961 Maternity Benefits Act; the
1965 Payments of Bonus Act; the 1972 Employees’ Provident Fund and
Miscellaneous Provision Act and the Payment of Gratuity Act; not to mention
those affecting the unorganized sector: the 1970 Contract Labour (Regulation and
Abolition Act) and last and least the 1986 Child Labour (Protection and
Regulation) Act; see Bhowmik, ‘The Labour Movement’.
70. Bhowmik, ‘The Labour Movement’.
71. Dhagamwar, ‘The Law and the Disadvantaged’.
72. Jos Mooij, Food Policy and the Indian State: The Public Distribution System in South
MAPPING INDIA’S WORLD OF UNORGANIZED LABOUR 117
Transforming India: Social and Political Dynamics of Democracy, New Delhi, Oxford
University Press, 2000; Yogendra Yadav, ‘India’s Third Electoral System,
1989–99’, Economic and Political Weekly, vol. XXXIV, nos. 34–35, Aug. 21–27,
Aug. 28–Sep. 3, 1999; J. Alam, ‘What is happening inside India’s democracy’,
Economic and Political Weekly, vol. XXXIV, no. 37, 11–17 September, 1999.
90. Hansen, Saffron Wave.