formal sector report

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 5-sem, 3-year SPA Vijayawada

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report on formal sector

5-sem, 3-yearSPA Vijayawadareport on formal sector

Formal Sector (One-Town)1. DEFINITION OF FORMAL SECTOROrganized or formal sector refers to all establishments in public sector, central, state and quasi-governmental establishments and local bodies irrespective of size of employment and non-agricultural establishments including plantations in private sector employing 10 or more persons (NSSO 1986).The formal sector comprises employment in: The government sector, corporate sector, large private sector establishments and the estate sector Around one-third of the population in our country are employed in formal sector.(source) Wage setting takes place through collective bargaining or tripartite wages boards. 2. FORMAL SECTOR IN ONE-TOWNIn One-Town the formal sector survey has been conducted by taking the major commercial streets into consideration (Reconnaissance survey).The streets covered are: Shivalayam street Park street Main Bazaar road Bava Narayan Street

We have Conducted Formal surveys through systematic sampling covering all the formal shops. The formal sector in one-town is divided as per the different activities performed. The formal shops on different streets in one-town sell different commodities. Formal shops in one town can be classified on the basis of activities performed: Iron and steel market Tobacco traders Gold shops Textile Grocery shops Bakeries Stationary Shops Vegetable Market Flower Shop Medical Shops Electrical Appliance Home Appliance Fancy Shops2.1FORMAL ACTIVITIES WHICH ARE PERFORMED AT LARGE SCALEIn One-Town, the activities can be differentiated on the basis of its scale as activities performed at large scale and as carried out in small scale. The major activities carried out are: Iron and steel market: Consists of 70 shops (Hardware). The wholesale shops for the Iron and steel market are located in Bhavanipuram (in Iron and steel Complex). The average number of employers in one shop is 3 and totally employs 210 workers. Tobacco traders: Consists of 16 Shops with an average of 8 workers in each shop. The tobacco sector hence employs 128 people. Gold shops: Consists of 55 Shops mostly located in Shivalayam Street. The average number of employers in each shop is 2 and employs around 110 people. Textiles: The garment shops are mainly concentrated in KR Market with 335 shops. The average number of employees in each shop is 3 and employs around 1005 people. 2.2TRADE UNIONS For every activity in one town they have their trade unions and below are the some of the trade unions: Iron and Steel Market: Steel and iron association Gold Shops: Gold union is the only one union. Tobacco: Tobacco traders association Textile: Lal Bahadur Shastri Wholesale Clothes 2.3EXPORTS AND IMPORTS OF GOODS IN ONE TOWN (for selected activity)Tobacco products is one of the major activities in one town, the products are imported from Guntur and Prakasham Districts and these products are exported to Nujivedu, West Godavari and East Godavari and Mangalgiri. Iron and steel another major activity, this is imported from Rajasthan, Kerala, Calcutta and west Bengal. Jewelry is manufactured locally by the workers in shops and localities buy these products. Textile goods are imported from Hyderabad, Bombay, and Ahmedabad. Transportation of Materials: Iron and steel (raw materials and hardware) are transported by rail and trucks.Cloth materials are transported through rail, LCV, 3-wheelers/ individual vehicles.Tobacco is transferred through LCVs. Storage:Iron and steel market godowns are located in Bhavanipuram in an area of 76 acres and the capacity of 100 tones and the godowns of textile are in one town itself in a place called Vastra latha Market and same as tobacco its godowns are present in one town2.4LOADING AND UNLOADING ACTIVITY IN ONE TOWNIn case of Iron and Steel Market, as it is done in bulks which takes more time , the loading and unloading is done during night that is from 12:00AM-6:00AM. The process of loading and unloading takes minimum 4-5 hrs. Manual labour is used for loading and unloading as only 3 cranes are present. For textile industry loading and unloading is done from 9:00AM-10:00PM. The loading and unloading time period is different for different shops. Godowns are located inside Vastra Latha Market. Tobacco is bought to the shops by the shopkeepers on demand. Godaowns are Located in One-town. Jewellery is bought by the shopkeepers or agent based on demand.2.5RULES AND REGULATIONS CONCERNED WITH FORMAL SECTOR BY UNIONThe rules and regulations followed by the shops coming under the above mentioned activities are the given below. These are the rules imposed by the trade unions. Unions only function for Formal sector activities. Union will provide insurance to the members for any damage or accident. To become a member of the association, certain amount is to be payed per year. (eg. 5116/- is to be payed per year for Iron and steel market) Regular meetings are to be held every month. Loading and unloading has to be done only at night (in case of Iron and steel market) and at day for Textiles. Elections for secretary has to be done every year. Associations also provides facilities to members. (Hindi school, telugu school, computer center, reading hall, vijaya steel corporation nursing home, assembly hall, silver jubilee school, Ganesh steel library, free kalyana mandapam,etc.)

3.PROFILE OF FORMAL SECTOR EMPLOYEE IN ONE TOWNThe Average household size in one town is 4 persons. Most of the employees stay in regions around 5 km. from one town, while others are from MG road, Autonagar, Krishna Lanka. The mode of transport which is used by the employees is public buses, IPT and by walk. The working works of the shops are from 9:00AM to10PM. The peak hour is observed is from Evening: 5: 00 PM to 9:00 PM.4.ISSUES IN FORMAL SECTOROn the basis of primary survey carried the major issues concerned with hawkers. Certain issues observed are as follows: Major issue is concerned with Hawkers. Issues concerned with Parking. Problems in Loading and Unloading due to narrow roads. Traffic Congestion is one of the major issues. Problems with Drainage. Lack of proper street light facility. Problems with electric wires.5.INFERENCEThe workers are mostly males and have good educational background. They are mostly from Vijayawada and the neighboring places. The migrant workers compose only 12% and they are from Mumbai and Rajasthan. The working hours varies from 10 AM-10 PM with 100% workers have access to credit in Commercial Bank. Formal sector workers are satisfied with the area. The problems faced are mainly caused by hawkers who contribute to the congestion and blocking of pathways. The other problems faced are due to parking, traffic, and poor infrastructure. Majority of the workers would like to continue in the same area with better shop facilities. Though they are satisfied with the area, 52% of the workers would not like to involve their children in this sector. The workers in formal sector are mostly males and have good educational background. They are mostly from Vijayawada and the neighboring places. The migrant workers compose only 12% and they are from Mumbai and Rajasthan. The major reason for establishment of the shops in One Town is the established market present, the demand present and the old business character of the place. The major goods sold are household goods and the activities are majorly on local scale. The consumers are mainly from in and around One Town and the majority of customers are working males. Formal sector workers are satisfied with the area. The problems faced are mainly caused by hawkers who contribute to the congestion and blocking of pathways. The other problems faced are due to parking, traffic, and poor infrastructure. Majority of the workers would like to continue in the same area with better shop facilities. Though they are satisfied with the area, 52% of the workers would not like to involve their children in this sector.The formal sector workers do not consider the informal people as a threat to their market. They are only seen as nuisance and hence shows that both the sectors can co-exist in the One-Town area, if the nuisance factor can be addressed.

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