SECOND MEETING OF THE EXPERT GROUP
                                                

                                                      

Social security of workers in the informal sector and other issues

 

     

  • The two papers in this session addressed the statistical issues relating to three important recent global trends:
    • Social security in the context of a) a declining role for nation states. B) an expending role of markets and c) increasing inform-alization of labor contracts 
    • Increasing number of home-based workers, particularly dependent home-workers or outworkers (that is women who work out of their homes on a sub-contract basis)
    • Emergence of non-governmental organizations as important users of official data in their negotations and policy advocacy on the national and global stages.
  • Dr. Jeemol Unni, representative fo the internationally-renowned Self-Employed Women's Association (SEWA) of India. Began her presentation on "Social Security for Informal Sector Workers: The Role of Statistics" with a short discussion of the generators (mainly government) and users (government, research institutions, and non-governmental organizations/people's organizations) of official statistics. She noted that governments are the primary data generators and governments and research institutiions are the primary data users. However, increasingly, non-governmental organizations and people's organizations are using official statistics for their negotiations and policy advocacy activities.
    • She briefly described the role of SEWA, in improving the working and living conditions of women in the informal sector. She argued that organizations like SEWA need offical statistics to support their negotiations, arguments, and policy advocacy on behalf for women workers in the informal sector around both economic and social security issues. For instance, in negotiating a social fund for women workers in different industries SEWA requires data on the number of workers in the selected trades or industries, on the contribution of these workers (Value-added, saving and investment, taxes and revenues paid to government). In order to generate the necessary statistics. SEWA has been demanding improved classification systems (By task, industry and employment status) in the census and labor force surveys. To illustrate the need for better classification, Dr. Unni cited the case of home-based garments workers whose status falls somewhere between casual employees and own account workers and concluded that under the current classification system home-based work questions on place of work, how work orders were received and method of payment need to be included in the census and or labour force surveys. Further to calculate the contribution of home-based garment workers, cross-classification of the home-based worker category with the gross value added by three-digit industrial group its required
    • Dr. Unni concluded her presentation with a request to data generators to be sensitive to the needs of non-governmental organizations and people's organizations, including statistics on economic and social security aspects of the informal sector, number of workers in specific trades by region, contribution of these workers to GDP. In order to get the necessary statistics. The classification of current activities plus status of employment need to be revised. GDP needs to be calculated at the level of three-digit industrial classifications, cross-classification of activity and industrial status is needed, and new enumeration methods required to account for different categories of workers and their contributions.
    • Dr. Pedrero's paper on "The Mexican Experience on Household Surveys: The Homeworkers Information" detailed the experience of Mexico in addressing the issue of the data on homeworkers. In the first part of her paper. Dr. Pedrero explained how, over time, the Mexican household survey was adapted to capture the reality of the Mexican labour force (including the presence of large number of homeworkers) The main changes involved introducing a ) more open classification to sdeparate clearly employees, own account workers, employers, and sub-contract workers and b)more probing questions to examine such issues as why the allegedly non-active population is not actively seeking work.
    • Dr. Pedrero concluded that several specific groups require specific statistics and analysis, including street vendors and home-based workers: to capture these categories, it is necessary to ask location of work and thype of payment within the categories, it is necessary to ask location of work and type of payment within the category home-based workers there are both independed own account workers and dependent outworkers. To distinguish between these it is necessary to ask who provides the raw material and who are the clients.
    • In the discussion following these two presentations tow issues were highlighted First the need for prcise and comprehensive statistics to capture both the economic and social aspects of the informal sectors Second, the need for specific statistics and analysis to capture large and growing numbers of sub-contract workers or out-workers for example in Colombia sub-contract workers are the largest share of construction workers . In recognition fo this reality, although the official statistics do not capture this reality the Colombian governemnt has introduced a new law which requires employers to pay benefits to out-workers.
    • To capture the reality of the workforce, in particular the large number of home-based workers and street vendors, some participants recommended that the expert group on informal sector statistics reviews in particular its concepts classification, methods of enumeration and survey, and quesitonnair design.