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Chapter 5

Working Conditions and Rights at Work

5.1. Introduction

The ILO stipulates that all workers in all nations have a right to decent working

conditions. Their incomes and working conditions must be regulated such that it

promotes human dignity and sustainability. ILO’s mandate as outlined in the declaration

of Philadelphia is to create conditions of ‘freedom and dignity, economic security and

equal opportunity’ in which all human beings irrespective of race, caste, creed or sex can

pursue both their material wellbeing and spiritual development (ILO 1999). The rights at

work provide the ground by which production and output are translated into effective

demand and decent standard of living (ibid). The idea is to protect workers against

vulnerabilities and contingencies which may put his/her ability to work at stake. This

chapter highlights the issues which affect their rights to work. Issues pertaining to rights

at work are central to their income and employment standards. Hence the line separating

these two concepts—rights at work and rights to work— is difficult to draw.

Nevertheless, the matters relating to ‘rights at work’ are important and hence have been

placed under a separate head.

Hernando De Soto in his book Mystery of Capital (2000) talked about five

mysteries; the mystery of missing information, the mystery of capital, the mystery of

political awareness, the mystery lesions of US history and the mystery of legal failure.

The key mystery in the informal sector that of capital. De Soto addressed two basic

questions; ‘what is capital?’ and ‘how is it produced?’ These questions are also relevant

in the present context. The lack of legal arrangements and property rights blocks a large

amount of capital in the informal sector. If property rights over use of resources and

enforcement of contracts are done appropriately, a considerable amount of capital will be

released for investment and growth. The state is the only regulatory body that can legalise

this sector. At present, for one reason or another, the state is not enforcing legal contracts.

Hence it would be interesting to examine the issues relating to the property rights of

street vendors through the issue of ‘public space utilisation’. It is important to mention

that vendors suffer due to non-recognition of their trade. There is no legal contract

between the state and the vendors and hence the vendors in Mumbai have no trade

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licenses. From the literature, a major shift could be seen in the pattern of employment

since the 1970s (Bhowmik and More 2001). A study conducted by Heather and Joshi in

1974 based on census data of 1961 also revealed that a majority of the working

population (65 per cent) in Mumbai were engaged in the organised sector. The draft plan

of Mumbai Metropolitan Regional Development Authority (MMRDA) (1996) clearly

pointed out that the situation had reversed. A majority is now employed in the

unorganised sector (65 per cent), and a considerable portion has taken to self-

employment including street vending (ibid).

Anjaria (2006) notes that new trade licenses have not been issued to hawkers in

Mumbai since 1978 whereas the number of street vendors has risen tremendously in the

intervening year. Licensed vendors now account for less than 10 per cent of the total

vendors in the city (ibid). These two facts taken together imply that an overwhelming

majority ply their trade ‘illegally’. Hence, they survive by paying bribes to the

authorities. The amount collected through these bribes is significant, as this study would

show in this chapter. It thus reflects that this unaccounted money is totally dead or

perhaps invisible due to ‘the absence of legal contracts’.

The debate surrounding utilisation of public space and the right to its use is a

major factor determining their business activities. The right to use public space can help

them to establish their rights at work by assigning of ‘property rights’. The issues need to

be addressed and hence their rights at work has been explored by taking into account

their extended hours of work, bribes paid, the harassment faced, the gender

discrimination, their safety and security conditions at workplace and so on.

5.2. Legal aspect

The Supreme Court verdict in the case of Sodhan Singh v/s NDMC brought about several

interesting issues. Vending activity has traditionally catered to requirements of the middle

class households. It is a profession which provides the means of survival for such a huge

segment of the poor and vulnerable. Despite these factors, they are often called

‘nuisances’, ‘illegitimate’, ‘encroachments’ and the like. Article 39 of the Indian

Constitution guarantees the right to adequate means of livelihood. Article 19 of the Indian

constitution, by its 44th

amendment act, 1978, guarantees six fundamental rights to each

citizen of the country. Among them, Article 19 (1) (g) entails freedom to practise any

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profession or carry on any profession, trade, occupation or business but subject to

reasonable restrictions imposed by the state in the interests of the general public and any

law laying down the qualifications for carrying on any profession or technical

occupation.

Street trading is the sole source of livelihood for many people. Hence citizens

depending on this trade for survival cannot be denied the use of public space such as

streets. As citizens of India, street vendors have the right to adequate means of livelihood.

However they should also be regulated by imposing of restrictions on the correct use of

public space. If the municipal authorities refuse the vendors to continue their trade, it

would be a clear violation of their fundamental right guaranteed under the Article 19 (1)

(g) of the Indian Constitution. Vendors generally come from poor and vulnerable sections

of the population and if denied the right to carry on trade by occupying some specific

demarcated places on the pavements, may starve. This would be a denial of their

fundamental right under Article 21 (Protection of Life and Personal Liberty: No person

shall be deprived of his life or personal liberty except according to procedure established

by law) of the Indian Constitution. The right to carry on trade or business, provided under

Article 19 (1) (g) is however subject to reasonable restrictions under Clause 6 of Article

19. This means that public streets are primarily meant for passing or re-passing without

any unreasonable obstructions. However if it is properly regulated by law street trading

cannot be termed as an act causing ‘significant obstruction’. This space is used by this

section of urban poor for livelihood generation. What actually constitutes ‘public

nuisances’ and ‘illegitimate encroachments’ could be ascertained by taking into

consideration all relevant circumstances such as size of the street, number of vehicles and

commuters on the street and the nature of additional use wants to make of the public

streets (whether it is for livelihood generation by urban poor or not) one only through

objective means by the civic authorities.

One of the directive principles of state policy (Article 38 (2)), highlights that the

state shall try to reduce inequalities on income distribution, facilities and opportunities

among groups of persons residing in different areas as well as engaged in different

occupations. Again article 39 (b) says that ownership and control of material resources of

the community are to be distributed so as to serve the common good. Public spaces are

common property of the community and vendors can make use of this public space for

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livelihood purposes, subject to codes of conduct. Ours is a “welfare state” wherein

individual rights must yield common good and ensure collective interests (Basu 1989).

5.3. Natural Markets

Street vendors, an integral part of self-employed workers of the urban workforce, also

operate in peculiar markets known as natural markets. By definition, such markets they

have no permanent shops and no identified market area. They exist in the areas that are

otherwise popular congregations for the general public. These are parks, sea-beaches, bus

terminus, railway stations, areas outside schools and colleges, hospitals and the like

(Bhowmik 2010). Interestingly, street vendors work in alternative shopping destinations

where there are no permanent and notified market places. These are places where street

vendors have the natural propensity to assemble because the customers find it convenient

to purchase the product and they (vendors) find a “natural market” for their commodities.

Street vending in African countries are carried out in street pavements, corners or

sidewalks or in transport nodes, bus stops, all of which are natural congregations for the

general public. The existence of natural markets is a common feature of street vending

activity all over the world (Mitullah 2004).

Trading zones of the vendors in this study are mostly located in areas

characterised by a large concentration of people such as transport nodes, namely, railway

stations, bus stops, temples and others. However, locations of vending also vary across

cities. Mostly, street vendors occupy places like streets, parks, pavements near shopping

centres, around public facilities, religious institutions such as temples, churches and

mosques, schools, hospitals and at prominent corners of streets and roads; all places

where the vendors are visible to pedestrians. Vendors in the present study were found to

concentrate mainly in locations like N.G. Acharya Marg station road in eastern Chembur,

DeSilva road and Ranande road in Dadar, Akruli road and M.G. road of Kandivali,

Hanuman Mandir road, D.J. road or Bajaj road of Vile Parle. These are either major

transport nodes or popular public places that attract people from all nearby areas. As

such, vendors also gather to meet the needs of consumers. These places are thus ‘natural

market’ areas that offer broad opportunities for buying and selling different wares.

The main problem in such cases, the local authorities, namely, police and

municipal authorities often try to prevent street vendors from using such places for their

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trade. Their market is often understood in terms of ‘encroachments upon public space’

leading to overcrowdings and traffic jams and road accidents. It is important to mention

here that violent agitations had broken out between the BMC and the Bombay Hawkers

Union (BHU) during 1980s when the BMC tried to demolish several hawking stalls on

the charge that they were causing obstructions and undue congestions (Anjaria 2006).

However the Supreme Court Judgement on the PIL (Sodhan Singh v/s Delhi Municipal

Corporation) clearly mentions that the hawkers have come to play a definite role in

“modern urban society” and their activity must be sufficiently regulated so that it does

not become an obstruction and adds to public comfort and utility.

5.4. Issues Pertaining to Urban Public Space

The debate on illegality of the street vendors and their existence in the city is over urban

public space utilisation. One needs to understand the meaning and the role of urban space

for the street vendors. Brown (2006: 10) has used the phrase ‘urban public space’ refer to

all the physical space and social relations that determine the use of the space within the

non-private realm of the cities. Thus, urban public space refers to the areas that are used

for public activities which include pavements, parks, beaches, sports grounds and so on.

In developing countries like India, urban public space is a valuable resource for the urban

working poor for their livelihood as well as living (Bhowmik 2010). Hence, the ‘urban

public space is an essential element of the physical capital’ used by the urban poor to

extract their livelihood (Brown 2006: 179). The study conducted in Africa (Mitullah

2004) also reveals that access to public space is considered key physical asset in the

livelihood of the urban working poor.

Street vendors occupy urban public space for earning their livelihoods. Their

eviction and harassment takes place because they are considered as illegal encroachers

upon public space. Bhowmik (2010: 9) stated an interesting point that control over public

space by ‘the state and/or the civic authorities is seen as control over the people,

especially the working poor’. Vending takes place in popular public locations such as

parks, beaches, besides schools, colleges where a natural market exist for them. Hence if

these places are allotted to vendors along with proper regulations in the form of space

demarcations vending will not be a problem. Bhowmik (2010) gives the example of

housing societies of the middle and upper-middle classes that encroach on public space

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around their residences. In addition, shops and restaurants also encroach upon public

space by extending to the pavements (ibid). In the present study, it is also seen that

shopkeepers use the adjacent space for advertisement purpose (especially in Dadar and

Chembur). Some small restaurants keep chairs for waiting customers on the pavements of

busy streets. It is observed that in such cases they are not evicted. Street vendors, on the

other hand, are frequently evicted, even though it is their source of livelihood.

Nevertheless, street vendors are thriving successfully in the city and their numbers are

also growing rapidly as their services are widely demanded by public.

Anjaria (2006) highlighted an interesting point made by a hawker depicting the

space occupied by them as ‘real public space’. He meant to say that the spaces that

vendors occupy are not only ‘natural’ markets for them but also for the scores of average-

income city dwellers who survive with a not-so-luxurious family budget in an expensive

city like Mumbai.

5.5. Natural Markets and Public Space

The entire concept of public space utilisation depends on identification of natural

markets. Since the markets where the vendors work are those where there is natural

congregation of general public, it is a difficult to properly identify them as ‘market areas’.

Again, only if an effort is made to identify them, public space could be properly utilised

in favour of the street vendors. Civic authorities are realising the importance of hawking

zones for the vendors because this is the only way by which their ‘rights to exist’ in a

proper way can be realised and can thus prove to be a panacea for all. It is in these

‘natural markets’ that vendors are found to work in a highly responsible manner, for

years, supplying products to ‘working class men and women’, using the space

responsibly, and exercising ‘vigilance’ over public spaces thus ensuring public safety

(Anjaria 2006). We have seen in our literature on the situation of street vendors in Latin

America that street vending is a constitutionally guaranteed right in Santiago, Columbia.

The official recognition of rights to the proper utilisation of public spaces and security of

workplace ensures better working conditions for the street vendors, as has been outlined

by Roever (2006). Vendors have proper trade licenses and they face much less

harassments in the marketplace. Again in some Latin American countries like Peru and

Venezuela, the rights to public spaces are subject to political conditions and the working

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conditions are worse than what it is in Santiago (ibid). So we can say that proper

provisioning of public spaces in natural market areas can lead to better working

conditions as has been seen in some parts of the world.

5.6. Hawking Zones

There is a concept of hawking zone in Mumbai. In addition, hawking plazas (one of these

exists in Dadar) were also built. However, according to the street vendors, the hawking

zones have been provided far away which the customers find difficult to access. They

(customers) also need to pay for transportation. Therefore, the concept of the natural

market is important here. Civic authorities need to identify natural markets and provide

the hawking zones accordingly. However, it is difficult to build ‘hawking zones’ in those

areas where the natural markets exist since these areas are otherwise preoccupied.

Interestingly, natural markets were never taken into consideration while demarcating the

hawking zones. As per the rules and regulations on hawking as given in the Bombay

High Court Judgements in 2003, spaces of hawking are assigned in those areas which are

clearly ‘not’ natural markets (Anjaria, 2006). The Agricultural Produce Marketing

Committee (APMC) also confirms the fact that street vendors are the most important

suppliers of vegetables and fruits to the market and only a fraction is sold through the

retail outlets like Big Bazaar (ibid). Consumers having monthly income above Rs 40000

are seen to buy these products solely from street traders because they are ‘cheaper and

fresher’ and ‘they are available everywhere’. However no specific hawking zone

demarcated for vegetable and fruit sellers was found in any of the areas considered in this

study.

5.7. Public Space Utilisation and Citizen’s Responses

Kusakabe (2006) in his study on Asia has pointed out that various ‘public relations

tactics’ are employed by street vendors to keep their sales up. One of the strategies is to

encourage customer loyalty. Due to huge competition among vendors over limited space

and capital, they mostly rely on their personal skills to keep their profits going. Roever

(2006) in her study on Latin American vendors highlights that the static vendors have

been in their respective present locations for a considerable period and have established

regular customers and informal rights over their workplaces. Citizen’s responses are

important in this context. The responses of the citizens may be broadly classified in two

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groups. One group belonging to the higher income status is against this occupation, while

the other citizens’ groups falling in the lower-middle income groups (income per month

in the range of Rs 5000-10000 were interviewed) are seen to benefit widely from the

services of the vendors because the vendors supply them products at a cheap rate that

caters to their small family budget. Hence the attitudes towards the vendors and their

present access to public space utilisation differ widely.

The late 1990s have seen NGOs and citizen’s associations blaming the hawkers as

the reason behind growing city congestions and associated problems (Anjaria 2006).

Their right to public space utilisation is vehemently opposed by the same groups who

maintain that they illegally occupy the pavements and footpaths, causing congestion and

unhygienic conditions. This in turn leads to overcrowding and road accident according to

these groups. They maintain that hawkers represent a part of the metropolitan space

which has gone out of control (Anjaria 2006). They also believe that hawkers and their

illegal occupancy depress real estate value of an aspiring world-class city, such as

Mumbai (ibid). These citizens’ associations are often successful in convincing the

authorities that evicting the vendors will ease many problems. However, while one group

of citizens are strictly against the vendors and their trade, another group of ‘not-very-

affluent’ citizens of which a major part belong to lower middle class depend on these

vendors for their daily necessities. Hence, the responses differ from one income group to

another. In this study, it has been tried to examine the reasons for preference of the

vendors, products and the type of products that they prefer. Further, the negative and

positive sides of the vendors’ activities have been analysed from the citizens’ point of

view.

Citizens are found to benefit widely from the products sold by the vendors. The

reasons for preference for the products may include cheap rate of the goods sold and the

diversity in the range of items (confirmed by almost 44 per cent customers). The second

most important reason behind preference for the products sold by the vendors is their

easy accessibility and all-time availability. About 30 per cent consumers confirmed this

in the present study. Nearly 26 per cent consumers gave another reason for the preference

to buy vendors’ products. Their reason is that that as vending stalls are located in close

proximity to their residences and buying products from these stalls saves the costs

involved in travelling to nearby markets (see Table 5.1).

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Table 5.1

Reasons of Buying Products from Vendors

Reasons for buying the products from vendors Total Sample (Percentage)

Cheap Rate of the product and all ranges products are available 16 (32)

Easily accessible and available at any time 13 (26)

Save time to go to any other markets and save money for the local

convenient for that

10 (20)

Near to Home 11 (22)

N= 50

Source: Based on Primary Survey

Each of the consumers was found to buy a variety of items from the vendors. The

highest percentage of consumers was found to prefer cooked food items. This is because

a lot of college and office-goers rely on the cooked food sold by the vendors especially

during lunch hours since they are cheap and freshly prepared. Interestingly, most of the

stalls are located near hospitals, schools, colleges and office areas to provide food to the

consumers there. About 60 per cent said that they buy fruits from the vendors. Thirty-six

per cent consumers said they buy clothes from the vendors. Household utensils are

bought by 34 per cent, while stationary and plastic items are bought by 24 per cent

consumers. Only 20 per cent consumers like to buy vegetables from the vending stalls

(see Table 5.2). All these products are daily necessities and they are bought at a much

cheaper rate than those of formal retail outlets.

Table 5.2

Items Bought from Vendors

Products bought from Vendors (Multiple Responses) Total Sample (Percentage)

Vegetable 34 (68)

Fruits 25 (50)

Fish 18 (36)

Clothes 13 (26)

Household Utensils 7 (14)

N= 50

Source: Based on Primary Survey

Thus it is seen that the reasons for buying goods from street vendors are almost all

related to its low price and easy accessibility. It is especially suited to the urban middle

and lower income groups who do not have the inclination to buy highly priced products

from shopping malls. However, as the citizens’ reported, there are both positive and

negative sides of this activity (see Table 5.3). In many cases, the positive aspects for

outweigh the negative ones; while in other cases the opposite happens. The opinions of

the consumers are important in this regard.

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The responses were diverse and each consumer gave multiple reasons in support

of their answers. Firstly let us examine the positive responses. Customers state that the

goods are cheap and affordable for the middle-class people, the range of products is

diverse and most importantly a lot of bargaining can be done. Understandably, 84 per

cent of the consumers agreed to this. Goods that are sold by the vendors can easily be

accessible at all hours and importantly even door-to door service can be availed. Nearly

68 per cent consumers confirmed this. A total of 26 per cent customers state that the

products bought from the vendors are available within quick reach of their homes,

thereby saving the time taken to travel to and from markets. Sixty-two per cent

consumers state that the fresh products (raw fruits, vegetables and flowers or even cooked

food) sold by vendors are one of the most positive aspects of their business activities.

Customers also listed out the various negative aspects of the vendors’ activities,

which are also, perhaps reasons why the activity is considered a menace. Some problems

associated with the activity of the vendors were outlined by the consumers. A wide

majority of consumers reported (56 per cent) that roads get congested due to the vendors’

activities because the vendors carry on their activities in the parking areas. Nearly 60 per

cent consumers said that they sell cheap quality items, which are toxic and sold in

unhealthy and unsanitary conditions. Some said that vendors charge very high prices for

their products and excessive bargaining is required to buy them at modest prices. Four

respondents (consumers) mentioned that street vendors should get the license to access

public spaces and the authorities should provide them convenient places to conduct their

business. Most of the consumers, belonging to the income group of Rs. 5000-10000 are

found to be in favour of this occupation. This indicates the fact that the low income group

of citizens is more satisfied with their activity.

Thus it is seen that not all citizens oppose the vending occupation. It is basically

favoured for cheap rates of the products, by citizen belonging to the low-middle income

groups of citizens. But citizens’ group representing high income citizens residing in posh

areas of the cities because of their high economic and social position often force the civic

authorities to take action against the vendors and oppose any kind of move toward

legalising them.

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Table 5.3

Positive or Negative Aspects of Vending

Positive Aspects

(Multiple Responses)

Total

(Percentage)

Negative Aspects

(Multiple Responses)

Total

(Percentage)

Cheap Rate/ reasonable price of

the product and all ranges

products are available

42 (84) Makes the road

congested/ crowded

28 (56)

Easily accessible and available at

any time

22 (44) Lack of the quality 6 (12)

Save time to go to any other

markets and save money for the

local convenient for that

19 (38) Need excessive

bargaining because

street vendors initially

charge very high price

3 (9)

Fresh products Service is not good 8 (16)

Looks dirty

Unhygienic 26 (32)

Total 50 Total 50

N= 50

Source: Based on Primary Survey

5.8. Public Space and Civic Authorities’ Responses

There are many cases where vendors are evicted in the name of city beautification. For

instance, in Kandivali (East), eviction once took place in the name of building a shopping

mall. The space was occupied by around 60-70 street vendors. The previous landowner

sold the entire piece of land. However, some of the street vendors came for their daily

business as they had reported that they had no other alternative. The present owners (the

builders) often use threatening method to evict them. When the police arrived, they

arrested the vendors and charged an amount of Rs 1250 per vendor for using public space

illegally.

5.8.1. Bribes

Bribe payment is a common feature in the business of vendors. Vendors across

several Asian countries face this kind of harassment at the workplace. A study by

Agnello and Moller (2004) on Cambodian vendors shows that their working conditions

are affected by harassment from bribe payments, market insecurity and police intrusion.

In this study too, vendors are found to pay bribes both in cash and in kind. The bribe in

kind is much bigger; as the local police come to the vendors and take away the products

without paying for these goods.

However the system of bribes is not new. It has existed for a long time, albeit in a

different form. There was a pavti system for street vending between 1988 and 1997.

Vendors used to pay Rs 5-10 per day to the BMC as “unauthorised occupation cum

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refuse removal charges” which entitled them to vend (Anjaria 2006). According to a

survey conducted in 1997 by TISS-YUVA, 22,000 vendors were issued such pavtis daily.

As Anjaria pointed out, this ‘pavti’ was a formal recognition of an informal, officially

unrecognised, yet widespread, activity. Hence, we notice that in the form of a pavti

(‘unauthorised occupation’), there was an official recognition of an unofficial practice.

Therefore, it is evident that the state collects revenue from an officially illegal population

(ibid). However, vendors mentioned the pavti system was there only for 18 months.

Vendors still have the pavti and hope that the system would be reactivated in the form of

tax. It is argued that the state could collect revenue from this activity in an official

manner as well.

Street vendors manage to conduct business by negotiating with the police and the

BMC. This understanding is solely based upon payment of bribes or a certain portion of

their daily incomes as ‘rents’ to the authorities. It means that for carrying out a livelihood

and to avoid large number of evictions, they need to pay a certain amount as bribes. This

study reveals that vendors who do not pay rents in the form of bribes are disturbed and

harassed regularly. They are treated as criminals instead of hard-working self-employed

workers.

In the course of the present study, it was found that vendors are required to pay

bribes primarily to the main groups of civic authorities, the police, and the BMC. Bribes

paid to the BMC are greater than those paid to the police. While most vendors were

found to be paying Rs 100-300 as bribes to the police per month, bribes paid to the BMC

amount to around Rs 300-500 per month. The available data shows that in the case of

most vendors, nearly 5-10 per cent of their daily incomes are usurped by the police and

BMC. Section 34 of the Police Act empowers the police to remove any obstruction on the

streets, and the street vendors have to pay them bribes mainly to avoid eviction under this

section. While the bribes to the police are paid on a daily basis, bribes are paid to the

BMC officials when the eviction of the vendors starts and their goods are confiscated.

(a) Nature of Bribes Paid

The monthly amount of the bribes paid to BMC officials and the police are shown

in Table 5.4 and Table 5.5 respectively. Nearly 34 per cent of the total respondents,

however, claim that they do not pay bribes to BMC. They either run away on being

spotted by the police and BMC officials or simply refuse to pay.

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Table 5.4

Monthly Bribes to the BMC

Bribes to BMC (in Rs.) Gender Total

(Percentage) Female (Percentage) Male (Percentage)

No Bribes 82 (50.0) 53 (22.5) 135 (33.8)

60-100 1 (0.6) 1 (0.4) 2 (0.5)

100-300 17 (10.4) 32 (13.6) 49 (12.3)

300-500 48 (29.3) 86 (36.4) 134 (33.5)

500-1000 10 (6.1) 41 (17.4) 51 (12.8)

1000-1500 4 (2.4) 15 (6.4) 19 (4.8)

1500-3000 2 (1.2) 6 (2.5) 8 (2.0)

3000-6300 0 (0) 2 (0.8) 2 (0.5)

Total 164 (100) 236 (100) 400 (100)

N= 400

Source: Based on Primary Survey.

Table 5.5 Monthly Bribes to the Police

Bribes to Police (in Rs.) Gender Total

(Percentage) Female (Percentage) Male (Percentage)

No Bribes 76 (46.3) 63 (26.7) 139 (34.8)

20-100 1 (0.6) 3 (1.3) 4 (1.0)

100-300 66 (40.2) 107 (45.3) 173 (43.3)

300-500 12 (7.3) 31 (13.1) 43 (10.8)

500-1000 7 (4.3) 27 (11.4) 34 (8.5)

1000-1500 2 (1.2) 1 (0.4) 3 (0.8)

1500-2050 0 (0) 4 (1.7) 4 (1.0)

Total 164 (100) 236 (100) 400 (100)

N= 400

Source: Based on Primary Survey.

The highest proportion of vendors (about 43 per cent) pays bribes in the range of

Rs 100-300 monthly to the police. This amount is paid by 40 per cent of the female and

45 per cent of the male vendors. Nearly 10 per cent of the total vendors pay bribes to the

police in the range of Rs 300-500. The bribes paid to BMC officials are higher than those

paid to the police (see Tables 5.4 and 5.5). On an average, bribes are paid to the BMC

officials 4-5 times a year. The highest percentage of vendors (33 per cent) pays bribes in

the range of Rs 300-500 per month. This amount is paid by 29 per cent of the female and

36 per cent of the male vendors. Around 12 per cent of the total vendors pay Rs 500-1000

monthly as bribes to BMC officials. Nearly 41 per cent of the vendors pay total daily

bribes (including bribes to the BMC and the Police) in the range of Rs 20-50. This

amount of daily bribes is paid by 29 per cent of the female and 49 per cent of the male

respondents. The second highest percentage of vendors (19 per cent) pays Rs 10-20 daily

as bribes. Almost 26 per cent of the vendors do not pay any bribes (see Table 5.6).

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Table 5.6

Total Daily Bribes

Daily Bribes (in Rs) Gender Total

(Percentage) Female (Percentage) Male (Percentage)

6.50-10.00 9 (5.5) 14 (5.9) 23 (5.8)

10.00-20.00 34 (20.7) 43 (18.2) 77 (19.3)

20.00-50.00 49 (29.9) 116 (49.2) 165 (41.3)

50.00-70.00 3 (1.8) 13 (5.5) 16 (4.0)

70.00- 100.00 3 (1.8) 6 (2.5) 9 (2.3)

100.00-276.00 0 (0) 3 (1.3) 3 (0.8)

Total 98 (100) 195 (100) 293 (100)

N= 293.

Source: Based on Primary Survey.

(b) Proportion of Bribes Paid to the Total Daily Income

The proportion of daily bribes to the daily incomes of the vendors has been

delineated in Table 5.7. It has been found that nearly 39 per cent of the vendors pay 5-10

per cent of their monthly incomes as bribes. Around 21 per cent of the total vendors pay

10-25 per cent of their incomes as bribes. Among the vendors who pay 5-10 per cent of

their incomes on bribes, 34 per cent are females and 41 per cent are males. Two vendors

are thus found to pay as high as 30-45 per cent of their incomes as bribes every day (see

Table 5.7).

Table 5.7

Proportion of Daily Bribes to the Daily Income

Proportion of Daily Bribes

to Total Daily Income

Gender Total

(Percentage) Female (Percentage) Male (Percentage)

0.50-1.00 0 (0) 3 (1.3) 3 (0.8)

1.00-2.00 0 (0) 4 (1.7) 4 (1.0)

2.00-3.00 1 (0.6) 2 (0.8) 3 (0.8)

3.00-5.00 12 (7.3) 26 (11.0) 38 (9.5)

5.00-10.00 57 (34.8) 99 (41.9) 156 (39.0)

10.00-25.00 27 (16.5) 59 (25.0) 86 (21.5)

25.00-30.00 0 (0) 1 (0.4) 1 (0.3)

30.00-45.00 1 (0.6) 1 (0.4) 2 (0.5)

Total 98 (100) 195 (100) 293 (100)

N= 293.

Source: Based on Primary Survey.

In addition, another category of bribe seeker has been seen in the market, evident

from this case in Dadar (one of the study areas). Several vendors operating in Dadar talk

of certain ‘agents’ of the police and the BMC that collect bribes from vendors in the

locality. Though vendors did not provide details on his/her personal identification, they

said that s/he is a vendor in their locality who works as an intermediary to facilitate the

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process of rent-seeking or bribe collection between the vendors and the BMC officials

and the police. The amount of bribe collected by the agent is given to the two groups,

after keeping aside a certain percentage as his/her ‘commission’. The exact percentage of

this commission is not. The ‘agent’ therefore is another ‘instrument’ of harassment. S/he

normally collects the bribe amount by force against the promise that police and BMC

would not approach them anymore. Those, that refuse to pay this, have to face much

more harassment from the police and the BMC.

Besides the calculation of bribe payment, some cases could be highlighted in

order to understand the nature of bribe payment.

Box 5.1

Impoverishment due to Bribe Payment

Mangesh Karande, 37, is an unmarried vendor residing in Mahim. He sells garments in Dadar. Hindu by

religion, he belongs to the SC category. He is illiterate and has been in the business over 20 years. He

earns an amount of Rs. 4500 per month and his household income is Rs 7500. His household

expenditure is Rs 7000 per month.

He attributes his impoverishment to the huge amount of bribes that he is forced to pay. A large

portion (Rs 50 per day as he sits near the main road) of his income goes into the payment of bribes to the

local authorities. Vendors like him are desperate for government regulation. On the one hand, they suffer

from the lack of a proper space for business and on the other; they have to pay a sizable portion of their

income as bribes to the authorities illegally. He states that people like him are willing to pay double the

amount of bribes as taxes to the government. He explains his situation thus “we would like to pay the

amount as taxes instead of bribes for our . . . space. We would even love to pay double the amount that

we are paying now.”

The issue of harassment faced by vendors at workplace too is an important one.

The following case illustrates the extent and impact of harassment faced by vendors. The

degree varies from area to area and vendor to vendor.

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Box 5.2

Harassment through Bribes

Surendra Patil is a 55 year old garment-seller in Dadar. He is Hindu by religion and belongs to ‘general’

caste category. He is illiterate and from Mumbai itself. He has been in this business for over 25 years. He

is married and there are 5 members in his family who are entirely dependent on him.

Surendra states that apart from regular problems of credit, unsuitable job environment among

others, there have been growing incidences of harassment at workplace. They are unduly affected

because of the casual nature of their job, in addition to the constant threats of eviction and bribe

payments. Surendra says that the bribe-seeking instances have gone up in the last three to four years

which seriously hampering his productivity, efficiency, income and consequently their standard of

living. The government is apathetic to their situation.

5.8.2. Loss of Capital through Bribes

From the above discussion, it is clear that there is an unaccountable capital

involved in the street vending. Around 5-20 per cent of the total daily income of the street

vendors goes as bribes which are completely unaccounted for and unregistered.

According to de Soto (2000), this is ‘Dead Capital’. By legalising this activity, the state

could make this ‘dead capital’ into ‘active capital’. Hence property rights can be given

for the use at public space. Once their right to use public space for income generating

activity is secured, they can be adequately brought under the sphere of taxation. Taxed

money is a source of revenue for the Government. Hence, property rights over the use of

public space even without ownership can turn this ‘dead capital’ into ‘active capital’.

5.9. Gender Differences in Work

Female vendors are found to sell smaller quantity of goods as compared to male and are

found to earn less (Bhowmik 2010). They feel insecure about going to the marketplace at

wee hours of dawn or even at dusk when darkness spreads. This has been confirmed by

several studies on street vendors in Asian countries by Angello and Moller (2004).

Another reason for low sale and low income is also low investment. In this study, it is

found that less number of females manage a daily sale above Rs 1000, which means that

it is less than that of the males. In the previous chapter, we have seen that the investment

of female vendors is typically less than males and the daily income pattern shows also

that the female vendors earn typically less than their male counterparts. This is because

the type of products that they sell. Female vendors typically sell those items which

require low capital investment; rather only a working capital, whereas the male vendors

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sell items requiring relatively bigger capital and investment. This gender bias is reflected

in the sale of goods such as leather items and electronic. When the male vendors were

asked as to why female vendors generally avoid selling these items, the male vendors

reported that ‘they (the women) lack technical knowledge and experience of selling these

sophisticated items’. On the other hand, when female vendors were asked the same

question, they (females) stated that it was due to the lack of savings to invest in these

types of products. Thus the lack of funds is the main factor that restricts investment in

these types of products. When husbands of the female vendors are involved in the

vending business, another problem arises. The total amount of money is limited while the

investment has to be made in two separate businesses. Hence, the female vendors invest

the less. Another reason why the women are found to earn less is because they divide

their work time between vending, childcare and household chores (Bhowmik 2010).

When taken into account the time spent for cooking and attending to children, the

females in Asian countries are found to work nearly 18-20 hours per day. It is noticed

that women usually bring their children to the vending place. This creates diversion of

attention and less sale; thereby resulting in less income. However their male counterparts

can devote comparatively more time and attention to income earning opportunities.

Box 5.3

Working Conditions of a Woman Vendor

Chandra Bala, 51, is a female vendor selling vegetable on a small vending stall in Kandivali.

She migrated from village in UP on 30 years ago. By religion, she is Hindu and belongs to the general

category. She is illiterate and joined this activity when she was 21 years. She earns Rs 9000 per month.

She earns and resides in Borivali with eight family members. Her household expenditure always exceeds

her income and she bridges the gap by borrowing some amount to cover her expenses. The reason for

her high expenditure is her large family. She is a widow and needs to work hard to support the family.

She faces a tough time since the costs of procurement and transportation have gone up severely while

her income has remained stagnant. She is required to look after her children and perform all household

chores without any help. She is uncertain about the future since this job does not fetch her enough

money to meet all her family’s requirements. She described her day thus “I wake up around 4 o’clock in

the morning, then go to the wholesale market to collect the vegetables. I clean the vegetables for two to

three hours and I keep the vegetables in the market where I sit. I come back home and cook for my

children and then again go to the market and start the activity. When I come back home, it is already

midnight. I work for the whole year. If I don’t work for one day, my children would sleep without meals,

since I am the only breadwinner in my family.”

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5.10. Gender and Dignity

As female vendors are homemakers and have customary duty to feeding their families,

their day starts with household work in the morning and then their struggle for the

livelihood through the day. They also face specific challenges such as the difficulty of

dealing with male dominance at the workplace. It has been noticed that the attitude of

police officials is softer towards female vendors especially towards those who sell less

and are in the most miserable conditions of all. Same officials do not even take bribe

from such female vendors sometimes. This situation also varies from place to place.

However, the attitude of BMC is completely different. If male vendors go to the BMC

office after their goods are confiscated, they are always treated in a better manner than

female vendors. Thus it is seen that female vendors seldom enjoy dignity at their

workplace.

5.11. Competitiveness of the Market

With the growing number of street vendors, competition among them has also increased.

Vendors have been forced to evolve better and newer methods to face competitiveness in

the market, which forces them to seek the economies of scale. Market traders have

realised that scaling up their business helps them to stay competitive and to maximise

profits. With this economic motivation, some vendors come together along ethnic or local

lines to form their enterprises. The existence of large-scale enterprises in the market has

led these vendors to amalgamate their enterprises in order to lower the average cost and

consequently to increase their profit margin. Economy of scale is achieved in the present

case by integrating two or more vendors whose owners share the same ethnic or local

identity. However, a relatively old and experienced self employed market trader takes the

initiative to expand the scale of his/her operation. In such case, these vendors put together

their working capital, establish a marketing network and increase their number of spaces.

Some vendors provide the product to the local marginal vendors. Another case explains

the kind of competition that exists in the market place and the way it has intensified in

these days and affected their survival strategies.

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Box 5.4

Competition among Vendors at the Workplace

Ramesh Gupta is in his early seventies. He lives and works in Dadar and has to support a family of five.

He is a vegetable seller. He is illiterate and migrated from Uttar Pradesh 60 years ago. He started street

vending when he was twelve and has continued ever since then. His income level is low.

He reminisces the days of his early entry to this profession, when the situation was completely

different. There were few persons who were in this business. There was no competition and

overcrowding in this activity. The income that he earned sufficed for him and his family. As days

passed, tougher times crept in. Since there was a serious shortfall in the demand for and supply of formal

sector job provisioning, a considerable number of people had resorted to this activity for earning money.

This profession too has seen massive expansion in terms of number and types of activities.

Due to massive overcrowding in a small space, his personal space at work has reduced and the

increasing number of entrants in the trade means that the profit margin has also reduced considerably.

Initially it was not difficult to eke out a living from this profession. Now the situation is completely

different. This old and feeble man has to work almost 10 hours a day to earn that depleted amount in

income. He has explained: “I have been doing this activity since I was 12-years-old. I have spent 60

years in this area. We were only 10 on this road and now we are more than 1,000. Our total space is the

same. Only our personal space has been reduced. I have noticed that the profit margin has decreased

compared to what it used to be. Competition has increased. I used to spend 5 hours a day but now I

spend 9–10 hrs to survive.”

5.12. Extended Hours of Work and Working Conditions

Street vendors are found to work long hours and our study reveals that the average

working hours for most vendors vary from 8-12 hours per day. Compared to the long

working hours, the amount earned is a lot less and most importantly, the working hours

are not seen to bear a positive significant relationship with income levels. This means that

even by extending their hours of work, vendors are not able to raise their income to

sufficient levels. Studies on several African countries (Mitullah 2004) have shown that

vendors work from early mornings to late evening or even late at night.

In general street vendors in Mumbai too, are forced to put in long hours to earn

their livelihood. Vendors who sell perishable items such as vegetables, fruits and cooked

food have high profit margins. At the same time, the working conditions of these

vendors, especially vegetable vendors, are miserable. Most of the vegetable vendors are

women, as this kind of vending requires very low level of investment in comparison to

the other types. The activity begins as early as 4.30 am and ends as late as mid night. The

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study reveals that the street traders work an average of between 8 to 11 hours a day, but

in certain areas like Dadar the hours are much longer than the stipulated maximum

working hours of 8 hours per day. Vegetable vendors work from 5 o’clock in the morning

till 12 mid night, and they work every single day of the year. Angello and Moller (2004)

in their studies on Asian countries have revealed that vendors suffer from their personal

insecurity and fear of theft of goods; since it is dark when they come to the marketplace.

The prolonged duration of work severely affects them. In many cases especially that of

female vendors, in addition to vending activities, they perform all their household chores

including cooking for the family members, washing, cleaning etc. before going to their

vending stall or even after going back home. Long working hours also imply that they

have very little time to attend to the needs of their children and get very little time to rest

or to relax (ibid). Street vending is often carried out in busy market places characterised

by a lot of sound and air pollution, under direct sunlight. As a result they often suffer

from illnesses like hyperacidity, high blood pressure or migraine as vendors have stated.

In spite of working for so long, they do not earn sufficiently to meet all of their families’

requirements and have to resort frequent borrowing. Working hours too have increased

but not the incomes. One of the important reasons is the increase in competition.

Competition for limited space has led the vendors to work harder and longer to eke out a

living.

Box 5.5

Insecurity and Uncertainty of Income faced by Female Vendors

Uma, 52, sells fruits at Dadar. She joined fruit-vending when she was 22 years old. Born and brought up

in Dadar, Mumbai, she is in this business for over 30 years now. Her husband is sick. She earns an

income of Rs 15000 per month and her household expenditure is Rs 9010 per month. The expenditure

includes items such as food, house rent, medicines for her husband and her mother-in law, education

expenses for her children, provisioning for children’s entertainment and the rest of the amount goes for

saving. When somebody in her family falls ill it puts considerable pressure and she is forced to approach

the moneylender for borrowing money at exorbitant rates of interest. She has to support six people and

meet all of their requirements. Women, like her constitute the most vulnerable section of this class since

they are subject to various kinds of harassment both in personal and professional lives. Excerpts from

her interview: ‘My husband is ill and cannot work. As the sole earning member of my family, I need to

work hard for long hours to sustain myself and my family. The recent hike in the process of essential

items including food and medicines has led to increase in my household expenditure, whereas my

income has not risen proportionately. I suffer a lot due to the uncertainties of the profession in terms of

low and unpredictable income and obligations of the family.’

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5.13. Safety and Security at Work

The existence of street vendors is not only about a section of poor people trying to earn a

livelihood in the informal sector, but also about the provision of valuable services to the

urban population. Thus, it is the duty of the State to protect the right of this segment of

population to earn their livelihood since Article 39 (a) of the Indian Constitution states

that ‘any citizens, men and women, have equal right to an adequate means of livelihood’

(NCEUS 2006: 10). However, the ground reality is that street vendors are by and large

considered unlawful entities and eyesores, and are consequently subject to constant

harassment by the local police as well as the municipal authorities. This is usually seen to

result in a concomitant financial burden of bribes to smoothen the path of their daily

vending beat. Non-legalisation is the main problem of this occupation and all vendors in

this study are found to be operating without licences. Hence, their job becomes uncertain

and insecure. Bhowmik (2005: 5) mentions that in cities like Kolkata, Mumbai,

Bengaluru and Ahmedabad, most female vendors do not possess valid licences so their

work and income becomes even more insecure. The lack of legal recognition of the

activity and constant fear of eviction and threats of evictions impose constant

psychological pressures on the vendors.

In addition to work and income security, street vendors face other forms of

vulnerability at the workplace. Anjaria (2006) and Bhowmik (2006) mentioned that

vending is full of insecurity, uncertainty and danger. This is because the vendors work at

the roadside and accidents may occur at any time. It was found in this study that street

vendors work very long hours (averaging 8-10 hours daily) in extremes climate

conditions and amid high levels of air and noise pollution which may lead to the ailments

such as hypertension, hyperacidity, or even heart diseases. Often many of these diseases

are related to stress due to uncertainty of income (Bhowmik 2010). Lack of basic

amenities like clean drinking water or sanitary conditions at the workplace may result in

various kinds of diseases. Female vendors are often observed to be the worst sufferers. In

the survey, it was found that there are no proper sanitation facilities at the workplace

which result in several forms of kidney-related diseases. The prevalence of insecurity and

lack of safety conditions are not only seen in the study on Mumbai. These conditions do

exist in several African nations where it has been seen that the vendors operate in places

that lack basic amenities including roads, toilets, water, sewerage and drainage facilities.

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In Asian countries, the major problems faced by street vendors are foul odour and

unsanitary conditions, lack of food preservation, absence of clean drinking water

facilities apart of dust, smoke and other air and noise pollution (Angello and Moller

2004). All these lead to deterioration of health conditions among vendors here.

5.14. Conclusion

‘Rights at work’ is the second major pillar of the decent work paradigm. It aims at

securing their employment and income by giving basic rights at the workplace. Rights at

work cover issues like discrimination at work, and the right to form associations to secure

common demands related to the vendors’ welfare. It also implies that vendors carry out

their profession free of fear and harassment like bribes or extortion. It also again implies

that they work for a maximum of 8 hours daily so that over work may not impair their

physical or mental health.

In the study it was found that vendors face many hazards associated with the ever

increasing competition, prolonged hours of work, widespread gender discrimination at

workplace and so forth. However their rights to occupy their natural places of work are

often considered illegal and they are evicted at the slightest pretext. Ironically people who

oppose their existence on the streets are also the ones buy the products considering it

affordable and durable.

The issues related to bribe collection also assume immense importance. It is seen

that the total bribes collected by both police and the BMC taken together is a large

amount. A substantial portion of the vendors’ income is slashed by the payment of bribes.

Bribes are thus seen as an ‘alternative strategy for survival and sustenance in the

market’. Studies have revealed that organisations have a big role to play in securing the

vendors’ ‘rights to work’. They help to organise the vendors so that they can fight for the

fulfillment of their demands.

As mentioned earlier, among de Soto’s five mysteries, the mystery of capital and

mystery of political awareness are associated with the informal sector. This informal

sector is characterised by the presence of a large amount of ‘Dead Capital’ since the bribe

component is unaccounted for and this capital is lost due to the absence of formal

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registration. The informal sector is however considered to be a dynamic sector capable of

accumulating assets and prosper at times when their formal counterparts are involved in

complex rules and regulations and thus stagnating in low level equilibrium traps (Margit

and Kar 2009). But this can only happen if the unorganised sector is given the right

environment to grow (ibid). Interestingly, this capital is rarely available for reinvestment

and growth. Studies by Marjit et. al (2006) and Dasgupta and Marjit (2006) note that a

democratic state uses the informal sector as a buffer for the poor. The informal

occupations work as ‘substitutes for social security and emerge as an innovative and

effective re-distributive strategy’ and therefore, ‘the degree of enforcement of property

rights itself becomes a strategic political variable’. Securing property rights over the

space of work would not only generate active capital, but would also help the vendors

gain legal right over their trade.

If the vendors’ trade is secured and they are recognised as licensed traders, the

issues of social protection can be taken up for addressing their specific requirements. It is

found that the vendors pay a considerable portion of their incomes as bribes to

authorities. If bribe seeking is stopped, the vendors’ jobs and incomes will be secured and

this would also help them achieve decent work (Standing 2002). Anjaria (2009) has

stated that vendors often say that the state itself does not want to take up licensing of the

vendors because once the license is issued and the trade is made legal, the authorities will

lose their share of bribes (in the form of current rents). The state therefore wants to keep

the vendors midway between ‘legality and illegality’ (ibid). This can be explained in

terms of the existence of people with vested interests that do not want this transfer to take

place and the resulting transformation of dead capital to active capital. If property rights

are assigned, the vendors’ trade becomes legally recognised, and their income is formally

taxed and the bribe payment stops for life.