WOMEN WORKERS IN THE INFORMAL ECONOMY: LABOUR AND SOCIAL PROTECTION
ES FOURIE*
- Introduction
The world of work has changed and non-standard work continues to increase and new forms of work have emerged. Despite predictions that the informal economy is only a temporary phenomenon, it has increased in size and in certain areas it has also taken on new forms.[1]
Vulnerable or precarious employment[2] account for 1.4 billion people across the world.[3] In developing countries four out of five workers are in a form of vulnerable employment.[4] Employment in the informal economy can be categorised as vulnerable employment.[5]In the Sub- Saharan Africa region, the informal economy inclusive of agriculture can be as high as 90% in certain countries.[6]In Sub-Sharan Africa and Southern Asia more than half of women workers are also involved in agriculture.[7] Globally 586 million women are own account or contributing family workers.[8]
In developing countries, work in the informal economy is the norm and not the exception.[9]In the SADC region the informal economy represents more job opportunities for women than men and the informal economy is also characterised by a high percentage of child labour.[10] Labour productivity an employment levels in this region is low as a result of the many challenges in this region, such as, social and human development, gender inequality and the lack of social and labour protection of those in vulnerable employment.[11]In South Africa, for example informal employment, non-agriculture, accounts for 33% and in Tanzania for 76%. Even though the percentage of informal economy workers in South Africa is lower than the rest of the SADC region, it has a major impact on the reduction of poverty.[12] More women are in informal employment than men in this region and a higher percentage of women are self-employed as own account workers and contributing family workers and men are more likely to be employers.[13] Although informal employment represent a smaller percentage of overall employment in South Africa, it still contributes to poverty reduction.[14]
Workers in the informal economy are often excluded from labour and social protection as legislative measures were often drafted to protect those in traditional employment relationships and thus do not provide for the diverse nature of work typically associated with those in the informal economy.[15]This diverse nature of the informal economy increase the challenges in extending labour and social protection to these workers.
Street vendors in Mexico; push cart vendors in New York City; rickshaw pullers in Calcutta; jitney drivers in Manila; garbage collectors in Bogotá; and roadside barbers in Durban. Those who work on the streets or open air are the most visible forms of informal workers. Other informal workers are engaged in small shops and workshops that repair bicycles and motorcycles, recycle scrap metal; make furniture and metal parts; tan leather and stitch shoes, weave, dye and print cloth; polish diamonds and other gems; make and embroider garments, sort and sell cloth, paper and metal waste, and more. The least visible informal workers, the majority of them women, work from their homes. Home-based workers are found around the world. They include garment workers in Toronto; embroiders on the island of Madeira; and assemblers of electronic parts in Leeds.[16]
The above extract clearly illustrates the very diverse nature of work in the informal economy, they are vulnerable as a result of the work they perform and are without adequate labour and social protection. A certain number of workers in the informal economy are there by choice, however the informal economy also increases during economic crisis or decline, forcing workers into the informal economy. The informalisation of formal jobs also contributes to the increase in the informal economy.[17] In developing countries most of the workers in the informal economy have never worked in the formal economy and are engaged in informal work as "traditional or survivalist activities.[18] Many workers also enter the informal economy during high unemployment, underemployment and poverty.[19] The informal economy does have "great job and income potential" as entry is easy and the demand for certain skills or education is low.[20] However the work created in the informal economy does not comply with the notion of decent work.
The extension of labour and social protection to workers in forms of vulnerable employment, such as workers in the informal economy, is vital and necessary if one considers the future and function of labour law and if one is mindful that globally the number of workers in these forms of employment will extend to 11 million per annum. In developing countries these workers who work in the informal economy, also often live in conditions of extreme poverty as their wages are irregular and low.[21] These workers also face high risks, such as exclusion from legislative protection, lack of voice and representation and deficits in respect of economic resources and productive resources.[22] The ILO World Social Protection Report indicated that more than 70% of people are without adequate social protection coverage, extending coverage to these workers is then vital when one considers decent work for all.Solutions must include legislative interventions, as well as tailor-made, innovative solutions in accordance with the diverse needs of these workers.[23] In many instances it is not preferable to extend existing labour or social security law measures to workers in the informal economy as they have unique challenges and their environment often requires unique solutions.
2.The informal economy and the future of labour law
The traditional focus of labour law where protective labour legislation were confined to the traditional employment relationship is no longer valid or sustainable. A need exists to extend labour and social protection to those who fall outside the traditional ambit of protection.[24]If we then consider the future of labour law in this changing world of work, it is clear that an intervention is necessary to extend protection to the large number of vulnerable workers outside the scope of protective measures. This intervention must be innovative and tailor-made to successfully extend labour and social protection to informal economy workers.[25] When considering the extension of labour and social protection an integrated approach is required, taking cognisance of the diverse nature of the informal economy and the fact that their needs may differ from country to country. Such an analysis will also require an investigation into their reasons for entering the informal economy and their specific protection deficits.For many workers in developing countries the informal economy is a way to escape poverty, however it can also be that they are in the informal economy as a result of their vulnerability.[26]
The challenges in extending protection to these workers thus require an inclusive concept of labour law that at the same time embraces the concept of an overarching informal economy, but recognises the different types of activities and diverse nature of protection required. The inadequacy of labour laws created to protect employees in the traditional full-time employment paradigm means that decent work for these workers remain a major challenge as governments and unions struggle to respond with innovative solutions whilst relying on laws that are unable to respond to the needs of these workers.[27]
A new legal framework is required that must include new forms of worker organisations, new platforms for "collective interaction" and new forms of social dialogue.[28] Demands for a new legal framework must also call for a platform for the development of collective bargaining in line with the evolving nature of work and the protection of the collective bargaining process as it supports and compliments statutory regulation, provides for tailor-made regulation and is still a "social imperative".[29]
3.Gender, vulnerability and non-discrimination
More women are engaged in informal and or vulnerable forms of work and this highlights the importance of extending labour and social protection to reduce poverty and eliminate gender discrimination and promote equality.[30] The lack of adequate social protection measures characterises women workers in the informal economy and includes inadequate or no coverage by compulsory schemes.[31]
Studies have also indicated links between work in the informal economy, poverty and gender[32]and continuously indicate the following: the poor are more prevalent in the informal economy and this include more poor women, and earnings are often irregular and lower than those of the formal economy and below prescribed minimum wages.[33] Similar to the formal economy, women in the informal economy also earn less than men.[34] Poverty amongst women can also be ascribed to the gender inequalities in access to economic resources. In developing countries, many women do not have access to property and other assets, due to societal gender disparities.[35] Access to education is also problematic for many women and in 2015 the UN stated that 58 million primary school children are not receiving education and more than half are girls.[36] Women are also found in jobs in the informal economy that are particularly precarious, such as domestic work and home work.[37]According to WIEGO, women are often disadvantaged due to market relationships within the informal economy, as members of groups defined by race, class, ethnicity or caste and as women due to gender norms in their societies.[38]It is interesting to note that according to Kalula et al[39] women in Africa in the informal economy are located in work that resembles cultural stereotyping of their roles and as such men are more likely to be representative in activities such as construction and mining and women in activities that involve more domestic chores such as cooking, weaving and cleaning.
Although many in informal economy suffer injustices and are excluded form labour and social protection, women also suffer from cultural and social injustices at various levels, such as macro or societal level,[40] meso or enterprise level[41] and micro or inter personal level.[42] These women are vulnerable and face discrimination on multiple grounds and levels and can be linked to the position or location of the woman worker in the informal economy (sectoral location), her status as worker (class) and then her status as a woman in society, a community or a household (gender).[43]In South Africa, work in the informal economy can also be ascribed to the apartheid regime, specifically with reference to domestic work and farm work.[44] Women workers in the informal economy are subjected to discrimination and often on multiple grounds and therefor especially vulnerable and in need of protection.[45] Discrimination, bias and stereotyping within societies and households often creates both structural and cultural barriers in respect of access to markets for these women.[46]Domestic work, caring, cross-border trading and other instances of under-recognised work, are mainly made up of female workers. When we consider gender equality it is important that the work that women undertake is valued appropriately, within communities and at national and international levels. Women often find themselves in dependent relationships, both at home and at work. The nature of their work, such as care work, domestic work and other home-based work often results in a lack of worker identity as their work is seen as their everyday duties.[47] In addition to this women often have to balance various responsibilities such as responsibilities of sole provider and childcare and often also care of the elder.[48]
Informal economy workers are characterised by their lack of social protection. They are often excluded from social protection measures and this contributes to the social exclusion of these workers.[49] In respect of contributory social insurance schemes, challenges include schemes that were designed for workers in the informal economy and are hence based on the traditional employee-employer relationship, the limited contributory capacity of these workers due to low or irregular income and often combatting the immediate risks such as poverty are prioritized instead of long term risks, such as old age.[50] In the Southern- Africa sub-region, one of the poorest regions, more than 40% of its people live in poverty that is gender-based, and this is aggravated by the HIV and AIDS pandemic in the region.[51] Women are more susceptible to this disease due to their status in communities and in the economy as this affect the ability to protect themselves. In many countries social insurance schemes are contributory and based on the traditional employment paradigm and most informal economy workers. Social protection requirements and needs of women workers in the informal economy will also differ from those in the traditional employment paradigm and will vary from different categories of women workers. Adequate social protection measures for women in the informal economy should include, access to health care (including maternity care); childcare; access to education and training.[52] The extension of social protection measures to these workers will ensure decent work and social inclusion and will contribute to a life lived with human dignity.
Women workers are often excluded from social security benefits as they are not defined as workers or employees. Endeavors to extend protection to these workers often include specific legislative provisions to extend protection. Health care is particularly important to these workers as without their health they cannot earn an income.
A specific vulnerable category of workers in the informal economy are domestic workers. An ILO study recently indicated that there are more than 67 million domestic workers across the world and 83% are women[53] and that 60% are excluded from social security coverage.[54] The increase in domestic work can be ascribe to various reason, such as the ageing population, more women entering the labour marker a promoted by equality agenda and specifically in Europe home care is preferred to institutional care for various reasons including financial resources.[55] This category of workers are also unique in a number of ways, namely, the workplace is private and often also the place where the workers resides; undervalued and unrecognized in many societies and falls outside the ambit of labour and social protection in many countries.[56] Another important factor that must be considered is that in a number of countries, such as South Africa, domestic workers represent a previous disadvantage group and this often contributes to the vulnerability in respect of exploitation and discrimination. The nature of domestic work is innate to these women workers as they often leave their own children behind with family members to care for the children of the employer. In many countries the value of domestic work is underestimated with respect to its contribution to economies as these workers often enables the female employer to enter the labour market through performing household and care duties for the employer. This symbolises the nature of multiple contributions labour markets on a various levels as the workers are also now able to earn a living and contribute to the income of her own family. These workers perform various task from, child care to household chores and thus supports the function of the family at an immediate level and in a wider framework that of societies and communities.[57] Internationally there is a strong focus on domestic work and the extension of labour and social protection to these workers to achieve decent work and improve there working conditions.[58] Applicable international conventions require member state to ensure that these workers are treated equally with other workers, specifically in respect of social security measures.[59]
Women workers in the informal economydisplay various degrees of vulnerabilities.[60] Poverty is multidimensional and these women are often denied access to education, appropriate training and access to resources which compounds their precarious position in the informal economy.[61]Feminisation of poverty and gender discrimination such as a lack of access to education, training and economic resources mean that women workers are amongst the most vulnerable workers in the informal economy.[62] In addition to this women often have to balance various responsibilities such as responsibilities of being the sole provider, childcare and often also care of the elder.[63] Strategies must be developed to address the discrimination to which these workers are often exposed.
4.Legal and economic empowerment
Legal and economic empowerment is a vital process for vulnerable women workers in the informal economy. According to Golub, legal empowerment is all about poverty alleviation and can be defined as the use of legal services and related activities to increase disadvantaged populations’ control over their lives.[64] The process of legal empowerment means that the poor has the ability to exercise their human rights as individuals within a community and live and work with dignity.[65] Role players in any legal empowerment strategy must include consideration of the role of government and the need for legal reform.[66] Through legal empowerment, vulnerable and precarious workers should gain an opportunity to participate and compete on equal terms.[67] The achievement of social justice and long term social change, require that these workers are aware of their rights and can actively campaign for legal reform, however to achieve this these workers require the necessary skills. Through a framework of legal empowerment they can achieve this, in particular, when combined with economic empowerment. Legal empowerment for all people, starts with recognition through identification documents, such as a birth certificate within a country. However, when we consider the legal empowerment of these marginalised women workers in the informal economy, the first step is the recognition as workers and the realisation of the economic value of their work and the value of their work within communities. Recognition as workers must also occur at various levels, including at a national level. This must also include the recognition of various organisations that endeavour to organise these workers. Legal empowerment is an important process for vulnerable precarious workers in the informal economy, when considering the labour and social protection of these workers, either through the extension of existing legislative measures or tailor made provisions. Role players in any legal empowerment strategy cannot operate in isolation when considering the need for legal reform and must include consideration of the role of government, including policy makers and private role players, including civil society.[68] Through legal empowerment, vulnerable and precarious workers can gain opportunities to participate and compete on equal terms. and empowerment then also refers to the inclusion in decision making processes.[69] The achievement of social justice and long term social change, require that these workers are aware of their rights and can actively campaign for legal reform, however to achieve this these workers require the necessary skills. Through a framework of legal empowerment they can achieve this, in particular, when combined with economic empowerment.