EMPLOYMENT GUARANTEE BILL TABLED IN PARLIAMENT - PUBLIC NOT AMUSED

Parliament Street wore an unusual look today, adorned as it was with 
thousands of banners demanding the immediate adoption of a 
full-fledged Employment Guarantee Act.

The banners came from all over the country - virtually every 
district.  They bore the signatures of over one lakh people, united 
in demanding an effective employment guarantee, as a fundamental 
requirement for the right to live with dignity. 

This striking display happened to coincide with the introduction of 
the National Rural Employment Guarantee Bill 2004 (NREGB 2004) in 
Parliament.  However, even as the Bill was tabled in Parliament, 
speaker after speaker in Parliament Street denounced it as a travesty 
of the original project.  The initial draft has been diluted to the 
extent of being fundamentally at odds with the basic principles of an 
employment guarantee, aside from violating the promise made in the 
Common Minimum Programme.

As many speakers pointed out, the Bill lacks key safeguards that are 
essential for it to qualify as an "employment guarantee" act.  In 
particular:

- The "employment guarantee schemes" to be created under the Act are 
targeted to "poor households" (read BPL households).  This is 
contrary to the fundamental principle of universal entitlement and 
self-selection - all the more so as the BPL list is highly unreliable.

- The Act is to come into force "in such areas and for such periods" 
as may be notified by the Central Government.  This makes it possible 
for the government to "switch off" the employment guarantee at any 
time.

- There is no provision in NREGB 2004 for time-bound extension to the 
whole of rural India.

- The NREGB 2004 does not guarantee payment of statutory minimum 
wages. It empowers the Central Government to notify different wages 
in different areas, for the purpose of the employment guarantee 
schemes created under the Act.

The speakers at Parliament Street included Swami Agnivesh (Bandhua 
Mukti Morcha), Suneet Chopra (All India Agricultural Workers' Union), 
Sehba Farooqi (National Federation of Indian Women), Jayati Ghosh 
(Jawaharlal Nehru University), Madhuri Krishnaswamy (Jagrit Adivasi 
Dalit Sangathan), Surendra Mohan (veteran socialist), Hanan Mollah 
(Member of Parliament), Kuldip Nayyar (eminent journalist), Pramila 
Pandey (All India Democratic Women's Association), Vinod Raina 
(Bharat Gyan Vigyan Samiti), Aruna Roy (Mazdoor Kisan Shakti 
Sangathan), among others.  The participants represented more than 100 
different organizations committed to the right to work, which came 
together for this purpose under the banner of People's Action for the 
Employment Guarantee Act.

For further information, quotes, interviews, etc., please contact 
Sowmya Sivakumar (tel 3091 7116 or 9350 530150) or Sowmya Kidambi 
(tel 2686 6343).


BASIC FLAWS IN THE NATIONAL RURAL EMPLOYMENT GUARANTEE BILL 2004 (NREGB 2004)

(NOTE: This is a preliminary and partial list; the Bill is yet to be 
submitted to detailed scrutiny.)

1. No time-bound extension to the whole of India: NREGB 2004 states 
that the employment guarantee shall apply "in such rural area and for 
such period as may be notified by the Central Government". In effect, 
the Bill guarantees 100 days of employment to every poor rural 
household but it does not guarantee when and where this will apply! 
In fact, the revised Act allows the government to switch off the 
employment guarantee anywhere at any time.

2. Targeting: Only "poor households" are entitled to guaranteed 
employment or the unemployment allowance.  Poor households are 
defined as those "below the poverty line"; in practice this is likely 
to mean households with a "BPL card".  This defeats the basic 
principle of the act - universal entitlement and "self selection". 
This flaw is all the more serious as the BPL list is known to be 
highly unreliable.

3. No minimum wage: NREGB 2004 says, "Notwithstanding anything 
contained in the Minimum Wages Act 1948, the Central Government may, 
by notification, specify the wage rate for the purposes of this Act". 
This gives the government further opportunities to undermine the 
Employment Guarantee Programme at any time by setting the wage rate 
at an arbitrarily low level.

4. Sidelining of Panchayati Raj Institutions: The National Advisory 
Council (NAC) draft gave a central role to Panchayati Raj 
Institutions (PRIs) in the planning and monitoring of the Employment 
Guarantee Programme.  In NREGB 2004, the role of PRIs has been 
considerably diluted.  For instance, the Block-level "Programme 
Officer" and the District Coordinator are no longer accountable to 
elected bodies (Intermediate Panchayat and Zila Parishad, 
respectively).  The role of Gram Panchayats and Gram Sabhas has also 
been reduced.

5. Restrictive definition of permissible works: In the NAC draft, 
"productive works" were broadly defined as works that contribute 
directly or indirectly to "the increase of production, the creation 
of durable assets, the preservation of the environment, or the 
improvement of the quality of life". This has been considerably 
narrowed down in NREGB 2004, where emphasis is placed on specific 
types of work.

6. Excessive financial burden on state governments: In NREGB 2004, 
state governments are expected to pay for: (1) the "overhead" costs 
of the Employment Guarantee Programme, (2) 25 per cent of the cost of 
materials, and (3) the unemployment allowance.  All state governments 
are under severe fiscal stress, and the Employment Guarantee 
Programme must be fully funded by the centre. In the event where the 
failure to provide employment is due to the lack of devolution of 
requisite funds from the central government, the payment of 
unemployment allowances should be reimbursed to the state government 
by the central government.

7. Inadequate safeguards for women: The initial limit of "hundred 
days per household per year" could lead to the marginalization of 
women. Individual work entitlements (eg. 100 days per adult) would be 
more appropriate. In the absence of individual entitlements at least 
40% of the total employment generated must be reserved for women.

8. Exclusion of B and C Class Municipalities: The NAC draft had 
proposed that the EGA be extended to cover B and C Class 
municipalities but NREGB 2004 ignores this proposal and thus excludes 
large numbers of essentially rural households from the purview of the 
EGA.

Note: This leaflet was prepared for People's Action for the 
Employment Guarantee Act (Delhi, 21 December 2004) by the local 
organising committee.  While it reflects a range of broadly shared 
concerns regarding NREGB 2004, this leaflet may not fully reflect the 
specific concerns of every participating organisation.

_________________________________

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