Social Inclusion for Rural Migrant Workers in China

1
Social Inclusion for Rural Migrant Workers in
China

• Who are they ?
• Estimated 140-150 million workers
• About half involved in cross-provincial
  migration, half within their Province
• Represent 2/3 of the workforce in processing and
  manufacturing industry,
• over 3/4 in the construction sector
• and more than half in the wholesale, retail and
  catering sectors.
• They are young (60 30 years or less),
• almost as much female as male,
• for 1/4th move with their direct family members,
  
• are less and less seasonal workers 20 of
  the total.

2
Social Inclusion for Rural Migrant Workers in
China

• As Much and Economic as a Social Issue
• Poor working/living/employment conditions
• have potential adverse consequences
• for development and urbanization
• Already perceivable trend towards decreasing
  numbers in inter-provincial migrations
• Required workers mobility in evolving modern
  economy may not take place
• Skills of workers available for mobility does
  not match the requirements of more sophisticated
  production processes and services
• Toll because lack of social protection is very
  high
• (notably occupational accidents diseases)

3
Problematic areas
Social Inclusion for Rural Migrant Workers in
China
(State Council directives, 28 March 2006)

• Wage arrears and underpayment
• Labor management
• Vocational services and training
• Social Security
• Access to relevant public services
• Protection of Rights and Interests
• Creating rural labor opportunities
• Improving management work on migrant workers

4
The programme specificities
Social Inclusion for Rural Migrant Workers in
China

• A first direct support for implementation of the
  State councils directives
• A joint effort to consolidate together the three
  pillars for social inclusion
• Quality in employment,
• Access to basic services,
• Relief from social insecurity
• A combination of systematic and policy
  interventions with practical innovative solutions
• A modular design allowing for extended
  partnership and broader/deeper initiatives

5
Relevant State Council directives
Social Inclusion for Rural Migrant Workers in
China Social security

• To give high importance to social security of
  migrant workers
• To integrate migrant workers into existing
  occupational injury insurance
• To take quick action to deal with medical
  insurance in case of serious sickness
• To explore a possible pension fund that would be
  suitable for migrant workers

6
SOCIAL SECURITY NEEDS ARE REAL BUT PROTECTION IS
WEAK
Social Inclusion for Rural Migrant Workers in
China Social security

• Overall still low coverage despite progress made
  (Compliance)
• Ambiguous social status of domestic migrant
  workers (HUKOU)
• Absence of nation-wide schemes (pooling)
• Unequal levels of funding for future obligations
  (virtual vs. real personal accounts)
• Combination of residence-based and
  contribution-based elements for some urban
  schemes (place of work/place of residence enjoy
  different standards)
• Unrelated urban and rural schemes
• Managerial difficulties to cope with mobility
  (records keeping)
• Unfavorable rating by employers and by workers
  from cost/benefits implicit analysis

7
Typology of migrant workers for social security
coverage
Social Inclusion for Rural Migrant Workers in
China Social security
Employment periods Discontinued Continued
Return to place of origin Frequent Occasional
Income compared to average Low Comparable
Work contract Exceptional Frequent/Expected
Risk of occupational hazards High Average or low
Family links At place of origin At place of work
Primary mobility patterns Back and forth, place of origin Across provincial boundaries
Type I requires specific measures (gaps in rural
protection coverage while in cities) Type II
perfectly fits in the urban type of coverage
(the Five Branches subject to continuity of
protection)
8
Main actors and subjects for reform
Social Inclusion for Rural Migrant Workers in
China Social security

• Traditional migrant workers
• (basic and continued urban-rural protection)
• New generation of migrant workers
• (vesting)
• Employing Units
• (compliance)
• Social security institutions
• (administrative procedures, convince and
  enforce)
• Local authorities and MOLSS
• (enabling environment, coordination)

9
Gaps in pilot special schemes
Social Inclusion for Rural Migrant Workers in
China Social security

• Some innovative local schemes have been launched
  to address perceived most urgent needs of migrant
  workers
• Reimbursement of more than workers share in
  pensions contributions
• Low cost low protection against accident injury
  and severe illness
• Private insurance coverage for employers
  liability
• However those experiments do not meet
  requirements of at least new generation of
  migrant workers
• No entitlement to basic pension provision
• Advance payment required at high cost if
  hospitalization outside place of work
• Only lump sum payments in case of serious or
  fatal work injury
• Attempts by employers to escape social insurance
  coverage because of special scheme, or to
  downgrade fully affiliated workers to low
  cost-low benefits schemes
• Although interesting and worth exploring further,
  these innovations cannot be considered as
  satisfactory solutions for migrant workers as
  social groups
• However, it is true that cost of full social
  insurance may be a real financial challenge for
  some enterprises.

10
General objective
Social Inclusion for Rural Migrant Workers in
China Social security

• To help meeting the conditions for ensuring
  better, efficient and sustainable social security
  protection to domestic migrant workers, taking
  into account their respective needs, the
  financial resources available and the legislative
  as well as administrative constraints of social
  security institutions.
• Four outcomes each with specific gender
  sensitivity
• General strategic framework for adapted
  comprehensive social security coverage of migrant
  workers
• Awareness raised concerning social security
  affordability and usefulness
• Enhanced specialized managerial capabilities in
  social security institutions
• Improved access to available benefits through
  design and implementation of immediate, adapted
  administrative procedures, rules and regulations.

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Outcome 1
Social Inclusion for Rural Migrant Workers in
China Social security

• A general strategic framework for coverage of
  migrant workers social security needs is
  established.
• Output 1.1. A detailed mapping of gaps in and
  obstacles to migrant workers social security
  coverage according to different typical
  situations is completed and made available to the
  Government
• Output 1.2. A methodology to appreciate the
  financial implications of extending migrant
  workers social security protection is elaborated
  and used
• Output 1.3. A strategic plan for progressive
  access of migrant workers to fully fledged social
  security protection is elaborated, and its
  implementation is started.

12
Outcome 2
Social Inclusion for Rural Migrant Workers in
China Social security

• Awareness is raised among the general public,
  government circles, employers and migrant workers
  themselves of the need for affordable,
  comprehensive and adapted social security
  protection.
• Output 2.1. Awareness raising activities are
  conducted among migrant workers and employing
  units about social security relevance, rights and
  obligations pamphlets, briefing sessions, TV
  programs, compendium of rights and obligations,
  etc.
• Output 2.2. Series of study tours are conducted,
  intended at exposing concerned government
  officials, social security managers and staff,
  NGOs, trade union and employers representatives
  to countries with successful experiences in
  dealing with social security rights of migrant
  workers
• Output 2.3. Prevention campaigns are launched for
  an enhanced knowledge about measures to be taken
  for reducing the risk of occupational accidents
  and diseases and exposure to pandemic diseases as
  well as their consequences for migrant workers.

13
Outcome 3
Social Inclusion for Rural Migrant Workers in
China Social security

• The managerial capacity of social security
  institutions for handling migrant workers social
  security claims is enhanced
• Output 3.1. Specific training programs are
  designed and implemented for the benefit of staff
  in social security institutions, for labour and
  social security inspectors, for staff in other
  competent government organizations, in employing
  units and in relevant NGOs directly dealing with
  the social security protection of migrant
  workers, which focus on claims settlement,
  delivery of benefits, compliance and the
  provision of needed advise to migrant workers and
  employers concerning their respective social
  security rights and obligations
• Output 3.2. Functional administrative networks
  are established among institutions in recipient
  and sending locations allowing for a more
  integrated approach to migrant workers social
  security protection, as well as among
  institutions within the same administrative
  jurisdiction typically, the Province that
  administer schemes at the place of origin and the
  place of work of migrant workers
• Output 3.3. Computer programs, electronic
  management of records and administrative
  procedures are reviewed and their levels are
  upgraded to allow for the identification of
  migrant workers as social security affiliates at
  their successive places of work, as well as at
  their place of origin.

14
Outcome 4
Social Inclusion for Rural Migrant Workers in
China Social security

• Migrant workers enjoy better access to social
  security benefits, through the design and
  implementation of adapted administrative
  procedures supported by relevant local rules and
  regulations.
• Output 4.1. Special measures are studied,
  designed and implemented to ensure a real
  protection against work-related accident injury
  for domestic migrant workers engaged in
  particularly hazardous occupations, notably in
  the construction and the mining industry
  including prevention and rehabilitation services
  
• Output 4.2. Studies are conducted and guidelines
  are elaborated to introduce step-by-step
  processes towards full compliance with legal
  provisions concerning compulsory social security
  coverage, for sectors of the economy or
  individual enterprises encountering serious
  difficulties for meeting their obligations.

15
Main supporting activities
Social Inclusion for Rural Migrant Workers in
China Social security

• Under Outcome 1 Strategic framework
  activities will encompass research, elaboration
  of drat policy documents and access to scientific
  tools for quantitative analysis, together with
  exposure to successful foreign experiences of
  step-by-step inclusion of migrant workers into
  full social security coverage leading to the
  design at the local level of the required
  instruments and procedures for facilitating their
  inclusion into the relevant social security
  schemes .
• Under Outcome 2 Awareness raising activities
  will include exposure to successful foreign
  experiences and generate multiple tools for
  public information campaigns -, improving social
  security coverage for migrant workers, major
  occupational risks and pandemic diseases to which
  they are particularly vulnerable.
• Under Outcome 3 Managerial concerns
  activities will primarily focus on capacity
  building programmes specific to the different
  main stakeholders, on policy initiatives to help
  overcome locally (inside and across Provinces)
  the obstacles to territorial continuity of
  rights, and on a critical review and support to
  upgrade of key computer programmes and databases
  to trace migrant workers social security records.
• Under Outcome 4 Improved access to benefits
  activities will include integrated protection
  mechanisms against occupational risks for migrant
  workers in most hazardous occupations
  (construction mining), and establishing
  guidelines for a step-by-step approach towards
  overcoming low records of registration of migrant
  workers within applicable social security schemes.

16
Cooperating and collaborating Agencies
Social Inclusion for Rural Migrant Workers in
China Social security

• Main national cooperating agency for the social
  security component is to be MoLSS, both as
  technically in charge of social security
  protection, and as Secretariat to the WG
  established under the State Council. The Social
  Insurance Agency and the provincial social
  security institutions are to play a key role in
  project management.
• Main other national institutions to be involved
  are NDRC, MoH, MoE, MoCA, MoC, MoLR, SSB and SAWS
• In addition to UNDP, international partners
  network will include the ILO, WHO, UNICEF,
  UNESCO, UNAIDS, UNIFEM, the World Bank, the ADB,
  the EU-China SS Reform Project and major
  bilateral donors.