Read the following passage and answer the questions that follow:
Sushila, 35 years old, worked for many years in a garment export factory in Delhi. Initially she was a permanent worker entitled to health insurance, provident fund, and overtime pay at double the rate. When her factory closed in the late 1990s, she spent six months searching for work before finding a job 30 km from her home. Even after working there for several years, she remains a temporary worker earning less than half her earlier wages. She works seven days a week, leaving home at 7:30 a.m. and returning at 10 p.m. A day off means no wages. She has none of the benefits she previously enjoyed. Meanwhile, the large MNCs placing orders with Indian garment exporters continue to earn large profits.
(i) Why do Indian garment exporters prefer to hire workers on a temporary basis rather than on a permanent basis? (1 mark)
(ii) What term is used for industries where workers like Sushila no longer receive job security or statutory benefits? (1 mark)
(iii) State one way in which MNCs benefit from the pressure they put on Indian exporters to cut costs. (1 mark)
(iv) Suggest one measure that the government could take to ensure that workers like Sushila receive a fair share of the benefits of globalisation. (1 mark)
Generated by claude-sonnet-4-6 · 2026-06-26 13:26 · grounding rag
Model Answer
(i) Indian garment exporters prefer to hire workers on a temporary basis so that they do not have to pay workers for the whole year. This helps them cut labour costs and meet the price demands of large MNCs.
(ii) Workers like Sushila, employed in the organised sector but without job security or statutory benefits, are said to be working under conditions resembling the unorganised sector. This shift is linked to flexible labour policies.
(iii) MNCs benefit by getting their products manufactured at the cheapest possible cost, which allows them to maximise their profits while selling goods at competitive prices in global markets.
(iv) The government could make and strictly enforce labour laws ensuring that all workers — temporary or permanent — receive minimum wages, social security benefits, and regulated working hours.
Source: Competition and Uncertain Employment / Impact of Globalisation in India, Chapter 4
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Explanation
- (i) The key reason is cost-cutting on labour — directly stated in the passage. Mention "not pay for the whole year."
- (ii) The passage explicitly says "conditions of work in the organised sector have come to resemble the unorganised sector" and links it to flexible employment. Either phrase scores the mark.
- (iii) The passage states MNCs "look for the cheapest goods to maximise their profits" — so their benefit is higher profits through lower procurement costs.
- (iv) From the "Let's Work These Out" section: government can enforce labour laws to protect workers. Avoid vague answers; be specific (e.g., enforce minimum wage, ensure benefits for temporary workers).