Study on Living wage for Lungta products, Dharamsala

Lungta artisans

I just received the report on Living wage from Mr. Pankaj, the resource person for calculating the living wage for Lungta Products and Clean Upper Dharamsala Recycle paper products in Dharamsala. He was kind enough to take some time out in helping me in carrying out this work.
It’s also such a great feeling to know his willingness to be associated with us and our producer groups in the future. He appreciated the things he has seen during his visit to these groups and amazed by the artisans’ perspective towards their life.

Below is a brief note from his report send via post.
Methodology used for both the organizations
A methodology involving interview using a questionnaire was used. It takes into account existing level of wages and benchmarks it against the following:
-Minimum good requirements for a family size of 3 adults
-Clothing -Health facilities -Education for kids -Social cost/Entertainment -House-owned/Rented -Savings for future -Insurance
-How do the artisans feel about their life quality?
A person scoring more than 85% was considered as having qualified the living wage test.

Artisans working in Lungta products Findings of Lungta products:
-Calories Test
a.No. of workers interview: 21
b.No. of artisans qualifying the calories test: 19
-Other Findings
a.All the artisans have medical insurance/health facility
b.All the workers have a saving account in PNB Dharamsala(One of the major banks in India)
c.More than 90% of the artisans interviewed were being able to generate some amount of savings.
d.Children of all the artisans are pursuing education.
e.Provident Fund scheme in operation for all the artisans.
f.The artisans rated their level of satisfaction as “Good”(Options being excellent/Good/Average/Bad).
Conclusion:
The Organization is taking good care of their artisans. Apart from paying regular wages, well above the state minimum wage, all the artisans are given good by the organization 3 times a day. The minimum wage rate prescribed by the Govt. is INR 110 per person per day. Existing minimum wage levels at the organization is INR 120 per person per day and for the trainees it is INR 100 per person per day. The rations they buy are apart from this and is needed for their families and quests. The artisans are happy about their work and feel that the organization is taking good care of them and their families. They however, feel the need for having a life insurance cover for themselves. To improve their savings, options like forming self help groups can be explored for the artisans. The artisans also expressed their desire to link their wages with productivity, as is the case with the organizations nearby. The ever rising prices and increase in the cost of living, however remains a challenge.
The above report is written by Mr. Pankaj, the resource person and uploaded on the blog by me.
Tsering Youdon
IM Fair Trade Coordinator