Page 112 - Understanding Economics for Class 10

Example-A Garment Worker

 Sushila, a 35-year-old worker has worked for many years in garment industry in Delhi.
 When Sushila’s factory closed in the late 1990s, she was employed as a ‘permanent
worker’ entitled to health insurance, provident fund, overtime at a double rate.
Goyal Brothers Prakashan
 She searched for a new job for around 6 months and finally she got a job which is 30
km away from the place where she lives.
 She is employed as a temporary worker even after working here for several years and
earns less than half of what she was earning earlier.
 She has to work for all the 7 days in the week. Any holiday will mean no wage for that
day. She leaves at 7:30 a.m. and returns at 10 p.m.
 Apart from salary she does not get any extra benefits which she used to get earlier.
 Factories closer to her home pay even less because the orders they receive are widely
fluctuating.
 In many industrial units and services in India, workers are facing such conditions and
these hardships of the workers have become common.
 Most workers, today, are employed in the unorganised sector.
 Moreover, those who are working in the organised sector are also facing such conditions.
Working conditions in organised sector have come to resemble the working conditions of
unorganised sector.
 Workers in the organised sector such as Sushila no longer get the protection and benefits
that they enjoyed earlier.

LET’S WORK THESE OUT (Page No. 69)

1. In what ways has competition affected workers, Indian exporters and foreign MNCs in
the garment industry?
Ans. Competition has affected them in following ways:
Workers – They are employed on temporary basis, getting lower wages and working for
more number of hours.
Indian exporters – They are facing tough competition. In order to survive competition,
they are trying hard to cut their costs. They are losing their market share to those who
are producing same good at a low price, hence eaten away their profits.
Foreign MNCs – They are giving tough competition to domestic producers and have
captured the major share of the market by bringing new brands. They have become
financially stronger and are dominating the market.

2. What can be done by each of the following so that the workers can get a fair share of
benefits brought by globalisation?
(i) Government (ii) Employers at the exporting factories
(iii) MNCs (iv) Workers.
Ans. (i) Government can make rules and regulations and formulate policies that helps workers
to get their fair share.
(ii) Employers at the exporting factories should invest in new and innovative technology
so that they can produce more efficiently and withstand the competition.
(iii) MNCs may provide compensation or financial help to those who have lost their job

E-98 Economics Class X