Post globalisation era in greater mumbai june 2006 efi – solar foundation mumbai
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- CHAPTER – 3
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Table: 2Important socio-economic indicators for India (1999-2005)
(Source: Economic Intelligence Service – CMIE, Monthly Review of the Indian Economy April 2005) * * * * * CHAPTER – 3IMPACT OF GLOBALISATION ON EMPLOYMENT IN INDIA3.1 MACRO CHANGES Though the process of globalisation has touched every section of society, the impact on the working class has been more direct and intense. It is evident, considering the drastic reduction in number of strikes and lockouts from 1201 to 489 over a period of last ten years, i.e. 1994 to 2003. The most-affected were: West Bengal, Tamil Nadu, Andhra Pradesh and Gujarat, who together form a category of ‘progressive states’. The number of units affecting closure has also decreased to 88 in 2003 as compared to 213 in 2002, and consequently the workers affected due to it also declined to 6978 in 2003 from 10025 in 2002. 3.2 ARRESTING RISING ‘UNEMPLOYMENT’ LEVELS According to the recent round of the national surveys, the unemployment rate in India is 7.2 per cent. This is despite the fact that about 55 per cent of the people are ‘self-employed’. But still there is a strong feeling that these figures are grossly under-reported, because the poor never get themselves into the registers. According to the latest World Bank report, the poverty in India is about 32 per cent, which implies that the employment is not adequately remunerative. The clashes in Assam and elsewhere in the country on the issue of Railway recruitment is a glaring example showing the acuteness of the problem. According to a report, railway officials had received about 74 lakh applications for 2000 vacancies. Another startling fact that came to fore is that though the qualification required for these posts were Class VIII, yet graduates and post-graduates including 20,000 engineers and 3,000 MBA degree holders applied for the vacancies. 3.3 DE-INDUSTRIALISATION RESULTING INTO ‘UNEMPLOYMENT’ The major reasons for escalating unemployment are the ‘de-industrialisation process’ swaying throughout the country, and the reduction of jobs on account of ‘cutting costs’ at a feverish pitch as globalisation is underway. Because of liberalisation policies, Indian markets have been flooded with MNC products. Unable to face the competition from the MNCs many small-scale industries, which were a source of employment to many, are closing down. It is estimated that during the last few years over six lakh units have closed down, and millions of people have been thrown out of their jobs. Even the report of National Commission on Labour (NCL), 2002 which avowedly supported the globalisation process (suggested anti-labour policies) could not ignore the stark reality - A large number of workers have lost their jobs due to VRS, retrenchments and closures both in organised and unorganised sector. Cutting down the wage bill has become the thrust area for several organisations. All the technological improvements and mechanisation are revolving around the concept of ‘jobless growth’, i.e. increasing production, but reducing workforce. The new industries established by foreign capital have not been able to create enough jobs to absorb those who lost jobs due to de-industrialisation.
The new trend in industrial production is outsourcing. ‘Outsourcing’ or ‘job contracting’ is a process to get certain activities beyond a company’s expertise through contractors. This not only reduces the management’s burden but also becomes economical. Though outsourcing is an age-old practice in the manufacturing industries, now it has become an important phenomenon to reduce the cost of production. Since the contractors mostly employ casual workers who are generally unorganised and don’t have any job protection or wage protection, they become a most vulnerable section of the working class. 3.5 CASUALISATION OF WORKFORCE It is another important feature in the current production process. Most of the firms are taking casual workers in place of regular employees. Even for regular and continuous production work they are using temporary workers. With a large reserve army of unemployed, it is not difficult for the industrialists to find a continuous inflow of temporary workers. Using contractors for supplying labour is another important method of getting casual labour. The casual labour is denied benefits like minimum wages, compensation, insurance, medical, provident fund, etc. Their right to form unions to protect their interests is also undermined. In this way workers are the direct victims of Globalisation. 3.6 MULTI-SKILLING OF WORKERS Another trend in the present day production system is using multi-skilled workers. This has considerably increased the work pressure on workers and saved money for the company. In modern management terminology this is also called as ‘functional flexibility’. As a result of bringing so-called labour flexibility and the international competition through increased emphasis on reducing labour costs, labour saw the erosion of many benefits? It has lead to further segmentation of the labour market and the expansion of low-income informal sectors in the economy. This process has been accompanied by increase in casualisation, contract labour, subcontracting and lengthening of working hours, etc. 3.7 WOMEN AND WORK The impact of globalisation is more severe on women. Many supporters of globalisation claim that it is creating more employment opportunities but the fact is that woman employment has increased only marginally. However, the work participation rate continued to be substantially less for females than for males. Majority of women workers continued to be employed in the rural areas. Amongst rural women workers, 87 per cent were employed in agriculture as labourers and cultivators. While amongst women workers in urban areas, about 80 per cent were employed in unorganised sectors like household industries, petty trades and services and construction, etc. 3.8 USE OF NEW TECHNOLOGY New technologies are supposed to trigger economic growth by bringing about increased level of productivity, efficiency and profitability. From the management point of view the speed of operation, cost cutting, accuracy, job flexibility, quality assurance and reliability, are the most distinguishing characteristics of new technologies. Yet major undesirable side effects of the new technologies are related to its negative impact on quality of employment: The gap between remuneration to skilled and highly skilled as against low skilled is increasing sharply. The downsizing of industrial units on account of adoption of new technologies is part of the changing industrial scenario in the post-globalisation era. * * * * * CHAPTER – 4MUMBAI – ECONOMY AND EMPLOYMENT4.1 MUMBAI UNDER THE SCANNER Mumbai continues to have an undisputed significance in the Indian economy. The financial capital of India, Mumbai, is probably the best-known face of India to the international community. Mumbai handles approximately one-third of the country’s foreign trade, in terms of value, and a similar proportion of India's software exports originate from the city. Once a textile manufacturing hub, the city's socio-economic structure has undergone a sea change over the years. The manufacturing enterprises in the city have gradually given way to service-based businesses mainly in sectors like Finance, IT, Telecom, Tourism, Entertainment, Advertising & Communication, etc. 4.2 TRANSITION FROM MANUFACTURING TO SERVICES The replacement of manufacturing jobs by service sector has been a gradual process. In 1981, the industrial sector accounted for 44 per cent of the jobs while the services sector accounted for 54 per cent. By 1991, the share of the industrial sector in employment declined to 39 per cent, while that of the services sector increased to 60 per cent. This transition during the eighties has much to do with the closure of the textile mills, followed by the prolonged strike of textile workers. Subsequently, there was also a large-scale relocation of engineering, chemicals and pharmaceutical industries. Consequently, the service sector has come to occupy a place of pride, contributing a lion's share of 64 per cent to the city's Net Domestic Product. In 2000-01, Mumbai's Domestic Product was estimated at Rs 58,000 crore representing over one-fourth of that of Maharashtra. While the city's per capita income was about twice that of Maharashtra, it is about three times the average of the country. Mumbai is one of the costliest cities in the world in terms of real estate prices. If one were to benchmark the land prices against the city's level of development, then Mumbai beats even advanced cities like London and Tokyo. According to the McKinsey Global Institute estimates, Mumbai's real land price works out to over twelve times that of Tokyo. Mumbai is rapidly emerging as the centre of financial services, information technology and entertainment services. 4.3 MUMBAI: THE FINANCIAL CAPITAL OF INDIA Mumbai is the financial and commercial capital of India. Its per capita income is Rs 48,954 and contributes over Rs 40,000 crore or approximately one-third of the country’s annual taxes. Mumbai accounts for 16 per cent of income tax collections and 35 per cent of corporate tax collection in the country. The Bombay Stock Exchange (BSE), the oldest stock exchange in Asia, has around 3,500 companies listed. The market capitalisation of BSE is Rs 5 trillion. As of 2005, it is among the five biggest stock exchanges in the world in terms of number of transactions. The share of both the BSE and National Stock Exchange is about 92 per cent with respect to total turnover. They virtually represent the total market capitalisation of India’s corporate sector. Mumbai handles one-third of the country’s total foreign trade, and accounts for 30 per cent of the FDI in the state. Practically, all FII transactions, and over 90 per cent of the merchant banking transactions take place in Mumbai. In terms of banking transactions, Mumbai’s share is as much as three-fourth of the total cheque clearances. Mumbai accounts for a significant share in deposits mobilisation (14 per cent of total deposits) and deployment of credit (21 per cent of total credit) of scheduled commercial banks. Of the 29 mutual funds in the country, 26 of them are registered in Mumbai and form 90 per cent of the industry’s total assets under management. 4.4 EMPLOYMENT OVERVIEW Because of the prosperity and employment generating potential, Mumbai has always attracted migrants from across the country. Demographers estimated the migrants contributed to increase in city’s population at approximately 80 per cent during 1941-51. This contribution, however, fell to 17 per cent in the ‘80s and is estimated to remain at approximately the same level during the ‘90s. Even though it is the employment generating capacity of Mumbai that keeps attracting migrants to this city, the bulk of new jobs that have been created in the recent years have been in the unorganised service sector. The formal sector employment has, on the contrary, been virtually stagnant. The total employment in the formal sector that was about 11 lakh in 1971, increased to 12.7 lakh in 1981, but has since declined to 11.8 lakh in 1991 and further to 11.5 lakh in 1998. This decline in the formal sector employment, which is concentrated primarily in the private sector, indicates the decay of manufacturing industries in the city. Unfortunately, the growth of formal sector jobs in the services sector has not been adequate to fill the void created by the decline in manufacturing jobs. On the other hand, a number of manufacturing units in engineering, pharmaceutical and other industries relocated outside Mumbai, taking advantage of newer technology and lower input costs. * * * * * CHAPTER- 5Directory: reports reports -> Charter School Enrollment Data Annual Report reports -> Request for Proposal [insert date] reports -> Government of India Ministry of Communication and it department of Telecommunications reports -> Government of India Ministry of Communication and it department of Telecommunications reports -> 1. 2 Authority 1 3 Planning Area 1 reports -> Pricing Closing Price $3,578 (June 22) 52-Wk High $3,825 52-Wk Low $2,982 Market Data reports -> Work performed under agreement reports -> Comet Aircraft – The Worlds First Jet Airliner Fatigue Failure Background reports -> Management and functional review ministry of transport and aviation Download 2.03 Mb. Share with your friends:
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