Wednesday, May 29, 2024

Need to revisit ILO’s Philadelphia Declaration


Need to revisit ILO's Philadelphia Declaration


Bruhaspati Samal

General Secretary

Confederation of Central Govt. Employees and Workers

Odisha State Coordination Committee, Bhubaneswar

eMail: samalbruhaspati@gmail.com  

Mobile:9437022669


Eight decades back, the Philadelphia Declaration adopted by the International Labour Organization (ILO) in its 26th Conference on May 10, 1944 which became an integral part of its revised constitution in 1946 Montreal General Conference still stands as a landmark document in the history of international labour rights and social justice. Against the backdrop of World War II, with the horrors of global conflict and the devastating impacts on workers and societies fresh in mind, the Philadelphia Declaration emerged as a visionary call for a new world order founded on principles of social justice, human dignity, and international cooperation. Emphasizing the inherent dignity of labour and the essential role of work in fostering human well-being and placing human beings at the center of economic and social development with a call for policies and practices that prioritize the welfare of workers and their families, the Philadelphia Declaration asserts, inter alia that (i) labour is not a commodity to be bought and sold but rather a means through which individuals can realize their potential and contribute to the common good of society, (ii) (ii) freedom of expression and of association are essential to sustained progress; (iii) poverty anywhere constitutes a danger to prosperity everywhere; (iv) the war against want requires to be carried on with unrelenting vigour within each nation, and by continuous and concerted international effort in which the representatives of workers and employers, enjoying equal status with those of governments, join with them in free discussion and democratic decision with a view to the promotion of the common welfare and most importantly; (v) all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity.


With a profound commitment to the promotion of social justice as a fundamental precondition for lasting peace and prosperity, it recognizes that enduring peace can only be achieved through the establishment of social and economic conditions that guarantee basic human rights, fair wages, decent working conditions, and social security for all individuals. Emphasizing the inherent dignity of labour and the essential role of work in fostering human well-being and placing human beings at the center of economic and social development with a call for policies and practices that prioritize the welfare of workers and their families, the Philadelphia Declaration asserts that labour is not a commodity to be bought and sold but rather a means through which individuals can realize their potential and contribute to the common good of society. Underscoring the importance of international cooperation in addressing global challenges and advancing shared goals of social justice and economic progress, it emphasizes the need for solidarity among nations and peoples, recognizing that the well-being of workers is interconnected across borders and that solutions to complex social and economic problems require collective action and mutual support. In practical terms, the Philadelphia Declaration served as the foundation for the ILO's post-war agenda, leading to the adoption of the ILO Constitution and subsequent conventions and recommendations aimed at promoting labour rights, social protection, and decent work worldwide. It laid the groundwork for the establishment of international labour standards and mechanisms for monitoring and enforcing compliance, thereby providing a framework for promoting social justice and human rights on a global scale.


In the global discourse surrounding economics and commerce, the notion of labour as a mere commodity has persistently lingered. However, labour, not being solely an economic transaction but being a fundamental human expression with the manifestation of individual skills, talents, and aspirations, reducing it to a commodity overlooks the intrinsic human dignity and complexity intertwined with work. Beyond its individual dimensions as a factor of production, labour also fosters social relationships and solidarity within communities. Workplaces serve as hubs of social interaction where individuals collabourate, communicate, and forge bonds with colleagues. Through shared goals and collective endeavours, labour cultivates a sense of belonging and cohesion among workers, contributing to the fabric of social capital within societies. This interconnectedness highlights the interdependence of individuals and underscores the notion that labour transcends mere commodity exchange by fostering reciprocal relationships and collective flourishing.


Despite being adopted in 1944, it remains profoundly relevant and valid in today's world. The fundamental importance of social justice as a prerequisite for peace and prosperity remains as relevant today as it was in 1944, as societies around the world continue to grapple with issues of inequality, poverty, and discrimination. The declaration's call for the protection of basic human rights, fair wages, decent working conditions, and social security resonates strongly in today's context, where millions of people still lack access to these fundamental rights. Recognition to dignity of labour by the Declaration underscores the importance of creating decent work opportunities and protecting workers' rights in today's rapidly changing labour market. In an increasingly interconnected world, where issues such as climate change, migration, and global health crises require collective action, the Declaration's call for solidarity among nations and peoples remains as relevant as ever. In today's world, where precarious employment, informal work, and labour exploitation remain widespread, the declaration's vision of decent work serves as a guiding principle for efforts to address these challenges and promote inclusive and sustainable development. 


In the context of proposed implementation of employers’ friendly four Labour Codes instead of workers’ friendly 44 Labour Acts prevalent in India, the Central Govt. should reconsider that labour is not a fungible resource to be bought and sold at will but entails the respect for individuals' autonomy, well-being, and fair treatment. While, upholding labour rights encompasses ensuring safe working conditions, fair wages, and equitable opportunities for advancement, commodifying labour can lead to the devaluation of human worth and the erosion of workers' rights. Therefore, safeguarding the dignity and rights of workers necessitates acknowledging the multifaceted nature of labour and rejecting its reduction to a mere commodity. Moving beyond narrow economic paradigms, embracing a holistic understanding of labour is imperative for building more inclusive, equitable, and humane societies.  


In summary, the Philadelphia Declaration of the ILO remains valid today because it speaks to universal values of social justice, human dignity, and international cooperation that transcend time and place. Its principles provide a timeless framework for addressing contemporary challenges and advancing the well-being of workers and society as a whole.


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Thursday, May 9, 2024

Investment in POSS Scheme forestalls financial frauds

Investment in POSS Scheme forestalls financial frauds

- Bruhaspati Samal  -


Financial frauds invite devastating consequences both for individuals and the economy of the nation as a whole. While digital payments have made life convenient and easy In India, they have also made us prone to all kinds of financial frauds. A survey conducted in October 2021 highlighted alarming statistics on financial frauds in India. Out of the respondents, 42% reported experiencing financial fraud within the past 3 years, with a concerning 74% unable to recover their lost funds. Shockingly, 29% admitted to sharing their ATM or debit card pin details with close family members, while 4% disclosed such information to domestic and office staff. Additionally, 33% admitted to storing sensitive financial data, including bank account details, card information, and passwords, on their email or computer, while 11% stored them in their mobile phone contact list. According to the RBI, frauds amounting to Rs. 60,414 crore were reported in 2021-22 and that these frauds have cost India a staggering Rs.100 crore daily over the past 7 years. 


Often due to a combination of deceptive tactics and vulnerabilities in the investment process including misappropriation, criminal breach of trust, forged instrument encashment, manipulation of accounts, fictitious accounts, unauthorized credit facilities, negligence, cash shortages, cheating, forgery, irregularities in foreign exchange transactions etc. financial frauds into various categories are severally witnessed to be mushrooming daily in newspapers, electronic channels and in social medias.  As experienced, the fraudsters often lure investors with promises of high returns with little to no risk. They may claim to have a "secret formula" or inside information that guarantees success. Greed and the desire for quick profits can blind investors to the red flags. In a  Ponzi scheme, early investors are paid returns from the contributions of new investors rather than from profits generated by the investment. This can create the illusion of a successful investment and attract more investors, but eventually, the scheme collapses when there are no more new investors to pay returns. At times, the fraudsters may misrepresent the nature of the investment, its risks, or the credentials of the individuals involved. They might falsify documents, provide fake testimonials, or use other deceptive tactics to give the appearance of legitimacy. Investments that are not properly registered with regulatory authorities are often a red flag for fraud. Fraudsters may offer unregistered securities to avoid scrutiny and oversight, but investors who fall for these schemes may find themselves with little recourse if things go wrong. It is also a common nature with the fraudsters to use high-pressure sales tactics for pushing investors into making quick decisions without conducting proper due diligence. They might create a sense of urgency by claiming that the opportunity is limited or that others are already investing. Some fraudsters target investors with complex investment products that are difficult to understand. This complexity can make it easier for fraudsters to obscure risks or misrepresent the investment's true nature. In some cases, investors are cheated because of inadequate regulation and oversight in the financial industry. The fraudsters exploit loopholes or operate in jurisdictions with lax regulatory enforcement, making it easier to perpetrate their schemes. Ultimately, the investors are cheated by fraudsters because they trust the wrong people or fail to conduct thorough due diligence before investing.  


But while investments in the National Small Savings Scheme, popularly known as the Post Office Small Savings Scheme (POSSS) can easily forestall the above deceptive tactics of the fraudsters, it is quite surprising that many people don’t consider it proper to think for this people’s bank which is said to be the Asia’s largest small savings bank.  To strongly counter the above tactics of the fraudsters on one hand and to keep the invested money safe and secured with a guaranteed return on the other, investments in different POSS Schemes should be preferably considered by the investors due to the following valid reasons.


1.  Accessibility: India Post has occupied the nervous system since 1854 which transmits the words and thoughts of the nation and since 1882 the Post Office Small Savings Bank offers widespread accessibility, with branches located in both urban and rural areas, ensuring convenient access to financial services for individuals across diverse locations. The POSB being the biggest and the oldest Savings Bank Organization in the country operates small savings schemes through a network of 1.59 lakh Post Offices with reach to the remotest corner of the nation.


2. Trustworthiness: Long before the times of email and mobile phones, Post Offices have a long-standing reputation for reliability and trustworthiness, instilling confidence in depositors regarding the safety and security of their savings with wide spread impact on  the socio-economic life of the nation through efficient and prompt service.


3. Government Backing: The Post Office being a government-regulated entity provides a reliable option for individuals who prioritize security of their hard-earned money. The POSB is being operated by the Department of Posts on behalf of the Ministry of Finance, Govt. of providing an additional layer of assurance for depositors regarding the safety of their funds.


4. Simple Procedures: The procedures for opening and operating accounts with Post Office Small Savings Bank are straightforward and hassle-free, making it an attractive option for individuals seeking simplicity in their banking transactions. Easy and acceptable methods in opening of account, subsequent deposits, withdrawals, closure and transfer attract the members of public towards POSB Schemes.


5. Range of Savings Schemes: Post Office Small Savings Bank offers a diverse range of savings schemes, including fixed deposits, recurring deposits, and various savings accounts, catering to the diverse needs and preferences of depositors. It offers POSB Accounts since 1882, Public Provident Fund (PPF) Account since 1968, 5 Year Recurring Deposit (RD) Account including 1 / 2 / 3 / 5 Year Time Deposit (TD) Account since 1970, Monthly Income Scheme (MIS) Account since 1987, Kisan Vikash Patra (KVP) since 1988, National Savings Certificates (NCS) since 1989, (VIII Issue), Senior Citizen Savings Scheme (SCSS) Account since 2004, Sukanya Samridhi Account (SSA) since 2015 and Mahila Samman Savings Certificate (MSSC) since 2023.


6. Competitive Interest Rates: Post Office Small Savings Bank offers competitive interest rates on its savings schemes, providing depositors with the opportunity to earn attractive returns on their savings over time. The interest rates applicable for the first quarter of the Financial Year 2024-25 on various National (Small) Savings Schemes are as under.

Sl.No.

Instruments

Rate of interest w.e.f

 01.04.2024 to 30.06.2024​

Compounding Frequency*

01.

POSB Account

4.0

Annually

02.

1 Year TD

6.9 (Annual Interest Rs.708 for Rs.10,000/-)

Quarterly

03.

2 Year TD​​

7.0 (Annual Interest Rs.719 for Rs.10,000/-)

Quarterly

04.

3 Year TD​​

7.1 (Annual Interest Rs.719 for Rs.10,000/-)

Quarterly

05.

5 Year TD

7.5 (Annual Interest Rs.771 for Rs.10,000/-)

Quarterly

06.

5 Year RD​​

6.7

Quarterly

07.

SCSS Account

8.2 (Quarterly Interest Rs.205 for Rs.10,000/-)

Quarterly and Paid

08.

MIS Account​​

7.4 (Monthly Interest Rs.62 for Rs.10,000/-)

Monthly and paid

09.

NSC (VIII Issue)

7.7 (Maturity Value Rs.14,490 for Rs.10,000/-)

Annually

10.

PPF Account​​

7.1

Annually

11.

KVP

7.5 (will mature in 115 months)

Annually

12.

MSSC

7.5 (Maturity Value Rs.11,602 for Rs.10,000/-)

Quarterly

13.

SSA

8.2​

Annually


7. Tax Benefits: While deposits under PPF, 5 Year TD, NSC (VIII Issue), SCSS Account and SSA Account qualify for deduction under section 80C of Income Tax Act, 1861 making them tax-efficient investment options, interest earned under SSA Account tax free under Income Tax Act.


8. Flexibility: Post Office Small Savings Bank provides flexibility in terms of deposit amounts, withdrawal options, and tenure, allowing depositors to tailor their savings strategies according to their financial goals and requirements. In general, POSSs offer several other facilities to the customers too.  Through e-banking, account holder can deposit online in SB / RD / PPF / SSA schemes and open and close RD / TD account online. The depositor can also credit amount in SB, PPF and SSA accounts from their Account in any other bank or PO Savings Account to other Bank Account using NEFT / RTGS services of POSB. IFSC code of POSB is IPOS0000DOP. The depositors can also avail auto credit facility to get TD / MIS / SCSS interest directly into their Bank Account or PO Savings Account or auto credit RD deposit from PO Savings Account. They can get maturity value of Accounts / Certificates in their Bank Account by submitting copy of first page of passbook or cancelled cheque along-with account closure form. After receipt of passbook, depositor can check balance of his / her account using ‘Interactive Voice Response (IVR)’ facility by calling through the registered mobile number at India Post toll-free number 18002666868. Blocking of ATM card facility can also be availed through toll free number 18002666868.


9. Financial Inclusion: Post Office Small Savings Bank plays a crucial role in promoting financial inclusion by offering banking services to individuals who may have limited access to traditional banking institutions, thereby empowering them to participate in the formal financial system.


10. No market volatility:  Most importantly, unlike investments in stocks or mutual funds, Post Office schemes are not subject to market volatility, offering a stable and secure investment option, particularly during uncertain economic times.


Thus, investing in Post Office small savings schemes offers several compelling advantages. Overall, saving money in a post office provides a secure, stable and accessible way to grow savings without exposure to high risks, making it an attractive option for risk-adverse individuals and those seeking consistent returns with government backing.

(The author is a retired Postmaster and presently working as General Secretary, Confederation of Central Govt. Employees and Workers, Odisha State Coordination Committee, Bhubaneswar. eMail: bsamalbbsr@gmail.com,  Mobile: 9437022669)

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Labour is not a commodity

 


Labour is not a commodity

Bruhaspati Samal

General Secretary

Confederation of Central Govt. Employees and Workers

Odisha State Coordination Committee, Bhubaneswar

eMail: bsamalbbsr@gmail.com  

Mobile:9437022669


Emphasizing the inherent dignity of labour and the essential role of work in fostering human well-being and placing human beings at the center of economic and social development with a call for policies and practices that prioritize the welfare of workers and their families, the Philadelphia Declaration, adopted by the International Labour Organization (ILO) on May 10, 1944 asserts, inter alia that labour is not a commodity to be bought and sold but rather a means through which individuals can realize their potential and contribute to the common good of society.


In the global discourse surrounding economics and commerce, the notion of labour as a mere commodity has persistently lingered. However, reducing labour to a commodity overlooks the intrinsic human dignity and complexity intertwined with work. While conventional economic theories often treat labour as a factor of production, it will be more appropriate to say that labour transcends the boundaries of commodity exchange and embodies multifaceted dimensions that encompass personal identity, social relationships, and societal progress.


At its core, labour is not solely an economic transaction but a fundamental human expression. It is the manifestation of individual skills, talents, and aspirations. Each person brings unique experiences and capabilities to their work, shaping the character and quality of their contributions. From the artisan crafting a masterpiece to the scientist unravelling the mysteries of the universe, labour is an avenue for individuals to realize their potential and make meaningful contributions to society. Moreover, work often serves as a source of personal fulfillment and self-actualization. Through labour, individuals derive a sense of purpose, accomplishment, and identity. Whether it be through creative endeavours, intellectual pursuits, or service-oriented professions, work forms an integral part of an individual's self-concept and life satisfaction. Therefore, reducing labour to a commodity overlooks the intrinsic value it holds for individuals beyond monetary compensation.


Beyond its individual dimensions, labour also fosters social relationships and solidarity within communities. Workplaces serve as hubs of social interaction where individuals collabourate, communicate, and forge bonds with colleagues. Through shared goals and collective endeavours, labour cultivates a sense of belonging and cohesion among workers, contributing to the fabric of social capital within societies. Moreover, labour enables individuals to contribute to the well-being of others and the broader community. Whether through providing essential services, producing goods for societal needs, or engaging in philanthropic efforts, work serves as a conduit for advancing the common good. This interconnectedness highlights the interdependence of individuals and underscores the notion that labour transcends mere commodity exchange by fostering reciprocal relationships and collective flourishing.


Central to the argument against treating labour as a commodity is the recognition of the inherent dignity and rights of workers. Labour is not a fungible resource to be bought and sold at will but entails the respect for individuals' autonomy, well-being, and fair treatment. Upholding labour rights encompasses ensuring safe working conditions, fair wages, and equitable opportunities for advancement. Furthermore, viewing labour as a commodity risks perpetuating exploitative practices and inequalities within the labour market. From sweatshops to precarious employment arrangements, commodifying labour can lead to the devaluation of human worth and the erosion of workers' rights. Therefore, safeguarding the dignity and rights of workers necessitates acknowledging the multifaceted nature of labour and rejecting its reduction to a mere commodity.


In conclusion, labour transcends the confines of commodity exchange and embodies intrinsic human value, social relationships, and collective progress. By recognizing labour as more than a commodity, societies can strive towards fostering environments that uphold the dignity, rights, and well-being of workers. Moving beyond narrow economic paradigms, embracing a holistic understanding of labour is imperative for building more inclusive, equitable, and humane societies. In this context, despite being adopted in 1944, the Philadelphia Declaration remains profoundly significant in today's world.

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