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This is an archive article published on April 29, 2006

Centre planning EGA wage cut, say activists on ground

The National Rural Employment Guarantee Act has run into a roadblock with the Centre deciding to cut down the minimum wages.

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Barely two months after it was launched amidst great hope, the National Rural Employment Guarantee Act EGA has run into a roadblock with the Centre deciding to cut down the minimum wages.

A few days ago, after analysing the average payments to workers employed under the EGA, the Centre decided to fix a uniform wage rate of Rs 60. The earlier directive allowed states to fix their own wage rates. If the new decision is implemented, the states would be forced to bring down the wages too. In case they wish to protect the existing rates, they would have to shell out the difference from their own resources.

The Centre8217;s decision has come under scathing criticism from economists and social workers, who fear that the unilateral decision will cause huge damage to the EGA, which has the potential to change the face of rural India. 8216;8216;We would protest the Centre8217;s move. Many states today offer more than Rs 60 to labourers enrolled for the EGA works. If the Centre goes ahead with the cut, it would be a huge loss to the workers,8217;8217; social activist Aruna Roy said. Roy, who has been among the biggest advocates of the EGA, recently conducted a padyatra in Dungarpur to assess the popularity of the scheme among the villagers. Dungarpur is one of the six districts in Rajasthan where this scheme is being implemented.

During the march, which was attended by social workers from all across the country and economists such as Jean Dreze, an on-the-spot audit of the works was also conducted. The results of the mass audit indicate that the scheme has not only become hugely popular in the tribal belt but has also emerged as a model that keeps corruption at the bare minimum.

But the decision to cut down the wages could be disastrous and should be condemned, the social workers said in their resolution on the concluding day of the yatra. In Rajasthan, the minimum wages paid to workers is Rs 73. If the decision is implemented, the state government would have to pay Rs 13 from its coffers. Economists fear that the state is bound to take less interest in the scheme if its own liability goes up.

The EGA works are already considered an unattractive option by male workers. A preliminary survey during the padyatra indicated that nearly 80 per cent workers on these sites are women as men prefer to work in the adjoining districts even states where the wages are more. If the wages are cut further, there may be a scarcity of employable workers, economists fear.

The survey, conducted during the 10-day campaign, also indicated that the scheme has become extremely popular among the people.

Some of the findings:

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8226; Familiarity with the basic entitlements of EGA: Almost every family has a job card and knows that the card entitles them to 100 days of employment over the year. There is, however, insufficient awareness of various provisions of the Act, including payment rates, worksite facilities and work norms.

8226; Unprecedented levels of employment on public works: About 115,000 persons were employed on NREGA in Dungarpur, implying that every second family in rural Dungarpur has one member employed.

8226; Enormous pressure on the administration at all levels to focus on employment generation and to deliver. In fact, there is a severe shortage of staff to meet the requirements.

8226; Works being implemented entirely through Gram Panchayats. No case was found of works being handed over to contractors. This is a major achievement, as many other states continue to fall back on contracting systems. Use of labour-displacing machinery was negligible.

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8226; Low levels of corruption: Muster rolls were available at almost all the worksites for inspection. This is a drastic change from the days when muster rolls were treated as secret documents. Careful verification of the muster rolls at the worksites uncovered few irregularities. This was due to increased awareness among villagers as well as administrative efficiency.

 

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