Basics of Managment

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BASICS OF MANAGEMENT

Labour Welfare Schemes

By:- Harjinder Pal SinghLect. Mech.Dated:04-04-2013 Govt. Polytechnic College Batala


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Labour Welfare SchemesLEGAL ASPECT OF BUSINESS:

The interests of employees and theentrepreneurs are often contradictory and

conflicting. Due to continuously increasing cost of

living, the labour force expects higher wages,allowances and other facilities etc. The employers

on other hand try to keep the cost of production

at the lowest possible level. They try to pay the

lowest possible wages to workers and get the

maximum possible work out of them. The result

is a clash of interests.

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If the employer is not able to satisfy the needs ofthe workers, the workers also dont perform at

the optimum level. Unsatisfied workers becomes

the cause of industrial unrest which may take theform of a strike, ghereo, bandh etc.-

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The entrepreneur on the other hand can beforced to a lockout. Thus, the interests of both

the parties are put at stake. Industrial laws serve

to safeguard the interests of both and ensureindustrial peace and development.

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Labour Welfare SchemesHISTORY OF LABOUR LEGISLATION IN INDIA:

Upto 1881, there was no law related to labourwelfare in India. The Indian factories act was

passed in the year 1881. After this a number of

such laws were passed to regulate the workingconditions in industries. Prior to this law, the

workers were exploited for the following reasons:

(i) Labour was available in abundance. They badly

needed work to fulfil their requirements, basic

needs cant wait for their satisfaction. The

workers had no other source of livelihood. They

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only had their labour and skill to sell.(ii) Labour was ill educated, too poor and

ignorant. They didn,t know about their

contribution to profit and their importance in theprocess of production, nor could they think

because being poor they couldnt think of

anything other than earning for their basic needs.

(iii) Industrialization and employment in factories

was a comparatively new process for Indian

workers and so it didnt provide them with much

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experience. Due to lack of contact with otherparts of the world, they didnt know what rights

their counterparts in other parts of the world

enjoy.(iv) Workers feared their employers. They were

compelled to work as directed by the employers

who sometimes even used physical force to

compel them. Even greater was the fear of

retrenchment.

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(v) The entrepreneurs enjoyed greater proximityto political power circles. They were financially

sound and so could twist the situation their way.

(vi) If work came to a halt, the entrepreneurs lostonly their profits where as the worker lost their

livelihood and had to suffer from hunger.

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WORKING CONDITIONS:The workers had to work under miserable

working conditions which can be termed as

inhuman.

1. The work places were insufficient, there was

no provision of drinking water, urinals,

bathrooms, waiting rooms, canteens etc. 86


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WORKING CONDITIONS:2. There was no provision for overtime payment.

3. Leave facility was not provided to workers.

Deduction was made in their wages for the

amount of leave taken.

4. In case of worker met an accident in the

working hours, no compensation was paid to

him

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WORKING CONDITIONS:5. Women and children were made to work for

long hours under unsafe and unhygienic

conditions.

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Labour Welfare SchemesINDUSTRIAL LEGISLATION AND LAWS:

The laws framed by the Government forproviding economic and social justice to the

workers in industries are called Industrial laws

or labour laws.

Industrial legislation can be divided into two

categories:

1. General legislation.

2. Specific legislation.

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Labour Welfare SchemesINDUSTRIAL LEGISLATION AND LAWS:

1. General legislation:General legislation takes care of the general

labour problems like social welfare, insurance

and industrial disputes.2. Specific legislation :

Specific legislation looks after the work of

specific industries like transport, mines,

electricity generation, plantation, waste disposal

etc.

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Labour Welfare SchemesNEED OF INDUSTRIAL OR LABOUR LAWS:

In modern industrial organisation, labour lawsare necessary and their main aim is;

(i) To save the workers from exploitation and to

protect their rights: Government showed ahuman concern in passing these laws so that

workers get their due rights and are not

exploited.

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(ii) To minimize and settle industrial disputes:These laws serve to improve relations among

management and workers so that a peaceful

atmosphere is created for maximum production.

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(iii) To provide better and safe workingconditions for the workers: Laws make sure that

work, machines, equipment, tools and the

environment of an industry is safe for theworking of human beings.

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(iv) To determine timely and justified paymentof wages, incentives and compensation :

Various labour laws provide that payment of

wages is on a fair basis and that the wages aresufficient to meet the need of workers.

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(iv) To provide security of job: In the service ofa worker are to be terminated, laws provide for

the compensation or any other monetarily

benefit to be paid by the employer, failing whichthe worker can go in the court.

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Labour Welfare SchemesORIGIN AND GROWTH OF LABOUR WELFARE

CONCEPT IN INDIA:The transference of rural population to the

urban areas, as a result of industrialization,

brought with it certain sociological problems.Having been up rooted from their rural

mornings, the new class of industrial workers

required welfare services to be provided to

them in their new surroundings so as to enable

them to adapt themselves to changing

situations.

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CONCEPT IN INDIA:Originally conceived as a humanitarian

approach, the employers realised the value of

providing better working and living conditions totheir employees. What was, therefore,

essentially a humanitarian approach in the

initial stages, gave rise to utilitarian philosophy

as motivating force for providing welfare

amenities to the working population.

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CONCEPT IN INDIA:Mahatma Gandhi, through his general

programme for upliftment of the toiling masses

of the country made a considerable impact uponthe concept of Labour welfare in India. I do not

want any thing more for the workers and farmer

class then enough to eat and house and clothes

themselves and live in ordinary comfort as self

respecting human beings.

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Labour Welfare SchemesLabour Welfare Schemes:

Organization provide welfare facilities to theiremployees to keep their motivation level high.

Welfare means the comfort and improvement of

employees and is provided over and above thewages. Welfare keeps the morale and

motivation of the employees high so as to retain

the employees for longer duration. It is not

necessary that the welfare measures to be in

monetary terms but in any kind/forms.

Employee welfare includes monitoring of -

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Labour Welfare SchemesLabour Welfare Schemes:

- working conditions, creation of industrialharmony through infrastructure for health,

industrial relations and insurance against

disease, accident and unemployement for theworkers and their families. Labour welfare

entails all those activities of employer which are

directed towards providing the employees with

certain facilities and services in addition to

wages of salaries.

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Labour Welfare SchemesLabour Welfare has the following objectives:

1) Labour welfare provides social comfort toemployees.

2) It provides intellectual improvement of

employees.3) To develop sense of responsibility and

belongingness among employees.

4) To ensures that the working conditions for

employees are of higher standard.

5) To build stable work force.

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Labour Welfare SchemesLabour Welfare has the following objectives:

6) To reduce absenteeism and labour turnover.7) To make employees lives good and worth

living.

8) To boost productivity and efficiency at theworkplace.

9) To provide healthy and proper working

conditions.

10) To ensure well being of employees and

families.

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Labour Welfare SchemesIMPORTANCE OF LABOUR WELFARE:

In India, industrial workers get the benefit ofvarious welfare facilities. The purpose is to

provide them better life and to make them

happy. The important benefit of welfare servicesare given below:

1) Welfare facilities provide scope for better

physical and mental health to the workers.

2) Labour welfare brings industrial peace and

cordial relations between labour and

management.

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Labour Welfare SchemesIMPORTANCE OF LABOUR WELFARE:

3) The social evil in the labour force such asgambling, drinking etc. are reduced.

4) Employer gets stable labour force due to

provision of welfare facilities.5) Workers take active interest in their jobs.

6) Employer secures the benefits of high

efficiency and low labour absenteeism and

minimum employee turnover. Facilities like

housing, medical benefits and education

facilities help to increase productivity of workers

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Labour Welfare SchemesPROVISIONS OF THE FACTORIES ACT, 1948

REGARDING LABOUR WELFARE:Factories Act, 1948, contains specific provisions

relating to welfare of labour in factories. These

provisions are discussed below:(1) Washing facility: In every factory, suitable

facilities for working shall be provided for the

use of workers. Such facilities shall be kept

clean.

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Labour Welfare SchemesPROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE:

(2) Facility for storing clothes/uniforms: Asuitable place should be provided to the workers

for keeping clothes during the time of work and

uniforms overnight.

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(3) Facilities for sitting: In every factory, suitablearrangement for sitting shall be provided and

maintained, for all workers.

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(4) First Aid Facility: The arrangement for first-aid shall be made in every factory. One first-aid

box is to be provided for every 150 workers.

First-aid facility has always to be made availableduring the working hours of the factory.

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(5) Canteens: A canteen shall be provided ineach factory employing over 250 workers.

Suitable shelter, lunch room and rest room shall

be provided for the use of the workers wheremore than 150 workers are employed.

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(6) Creches: Every factory shall provide clean,well lighted creches (room) for the use of

children of women workers.

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(7) Welfare Officer: In every factory where 500or more workers are employed, the employer

shall employ Welfare Officer in the factory.

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Labour Welfare SchemesCLASSIFICATION OF LABOUR WELFARE

FACILITIES:The Study appointed by the Government of

India in 1959 to examine labour welfare

activities then existing, divided the entire rangeof these activities into three groups, i.e.

(1) Welfare work within the boundary of an

establishment- medical aid, creches, canteens,

supply of drinking water etc. It means that the

welfare activities are undertaken within

boundary of an establishment.

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FACILITIES:(2) Welfare work outside the boundary of an

establishment- provision for indoor and outdoor

recreation, housing, adult education, visualinstructions, etc. and;

(3) Social Security measures etc.

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FACILITIES:The committee of experts on Welfare Facilities

for Industrial Workers called meeting by ILO in

1963 had divided welfare services into followinggroups:

(a) Intra-Mural Activities.

(b)Extra-Mural Activities.

(c) Statutory, voluntary and Mutual Welfare

Facilities.

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FACILITIES:(a) Intra-Mural Activities: The labour welfare

activities that are provided inside the

industry are known as Intra-Mural activities.According to the recommendations of the ILO,

the welfare activities within the boundary of the

establishment includes the facilities such as;

(1) Latrines and Urinals,

(2) Washing and bathing facilities.

(3)Creches,

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Labour Welfare SchemesCLASSIFICATION OF LABOUR WELFARE FACILITIES:

(a) Intra-Mural Activities:

(4) Rests shelters and Canteens,

(5) Arrangement for drinking water,

(6) Arrangement for prevention of fatigue,

(7) Health services including occupational safety,(8) Administrative arrangement within a plant to

look after welfare,

(9) Uniform and protective clothing and,(10) Shifting allowance.

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FACILITIES:(b) Extra-Mural Activities: The welfare activities

that are provided outside the establishment are

known as extra-mural activities.

According to the recommendations of the ILO,

the welfare activities outside the establishment

include facilities such as :

(1) Maternity benefits,

(2) Social Insurance measures including gratuity,

pension, provident fund and rehabilitation,

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FACILITIES:(b) Extra-Mural Activities:

(3) Benevolent fund,

(4) Medical facilities including programmes for

physical fitness and efficiency, family planning

and child-welfare,

(5) Educational facilities including adult

education,

(6) Housing facilities,

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(b) Extra-Mural Activities:

(7) Recreation facilities, including sports, cultural

activities, library and reading room,

(8) Holiday homes and leave and travel facilities,

(9) Workers cooperatives including consumercooperative stores, fair price shops and co-

operative thrift and credit societies.

(10) Vocational training for dependents ofworkers,

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(b) Extra-Mural Activities:

(11) Other programmes for the welfare of

women, youth and children and

(12) Transport to and from the place of work.

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FACILITIES:(b) Statutory, Voluntary and Mutual Welfare

Facilities:

Labour welfare work may also be divided into

three categories:

(1)Statutory ;

(2) Voluntary and

(3) Mutual.

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FACILITIES:(b) Statutory, Voluntary and Mutual Welfare

Facilities:

(1) Statutory: Statutory welfare work constitute

those provisions of welfare work which are

provided in different factory Acts and it is

obligatory on the part of the employers to

observe these provisions.

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(b) Statutory, Voluntary and Mutual Welfare Facilities:(2) Voluntary Welfare: Voluntary Welfare works

includes those activities which are undertaken

by employers for their workers voluntarily.

(3) Mutual Welfare: Mutual Welfare is a

corporate enterprise of the workers themselves.

For instance, if workers decide to improve their

lot on the basis of mutual help, it may be calleda mutual welfare work. Trade unions for this

purpose undertake many provisions for the

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Labour Welfare SchemesIMPORTANCE OF LABOUR WELFARE WORK:

The usefulness of welfare work in India can notbe over emphasized. Welfare activities influence

the sentiments of the workers. When worker

feels that the employers and the State are

interested in their happiness, his tendency to

grouse and grumble will steadily disappear. The

development of such a feeling makes the way

for industrial peace.

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Secondly, the provision of various welfaremeasures such as good housing, canteens,

medical and sickness benefits etc. makes them

realise that they also stake in the undertaking in

which they are engaged and so they think thrice

before taking any reckless action.

Thirdly, welfare measures, such as cheap food in

canteens, free medical and educational facilities,etc. indirectly increase the real income of the -

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workers. If the workers go on strike they will bedeprived of all these facilities. Hence they try to

avoid industrial disputes as possible and do not

go strike on flimsy grounds.

Fourthly, welfare activities will reduce labour

turnover and absenteesim and create

permanent settled labour force by making

service attractive to the labour.Fifthly, welfare activities will go a long way to

better the mental and moral health of workers-

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by reducing the incidence of vices ofindustrialisation. Removed from native village

and thrust into a strange and unfavourable

environment the workers are liable to fall a prey

to drinking, gambling and prostitution.

Congenial environment as a result of welfare

measures will act as deterrent against such

social vices.Lastly, welfare measures will improve the

physique, intelligence, morality and standard of-

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- efficiency can be expected only from personswho are persons, who are properly trained,

properly housed, properly fed and properly

clothed.

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Labour Welfare SchemesLABOUR WELFARE PRACTICES IN INDIA

A) INTRA-MURAL LABOUR WELFARE ACTIVITIES:

1. SANITARY AND HYGIENE FACILITIES:

The maintenance of a clean, sanitary and

hygienic work environment is now taken for

granted as an important basic welfare amenity.These include toilets, water for drinking and

washing. Sanitary and hygienic conditions were

extremely poor when Labour investigation, 1946reported. The committee observed that, apart

from making the minimum arrangement which-

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- get away with, service and maintenance

appeared to be so poor that if they existed at all,

the workers felt it impossible to make use of theso called facilities.

The Factories Act, 1948 requires that every

factory must be kept clean. A sufficient supply ofwholesome drinking water an enterprise could -

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-must be made available at suitable and

convenient points; that separate latrines and

urinals for male and female workers must beprovided; that spittons must be kept at

convenient places in a clean and hygienic

condition; and that adequate, suitable, clean,conveniently accessible and separately screened

washing facilities must be provided for male -

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-and female workers. More or less similar

facilities are provided in Plantation Labour Act

1951 and Coal Mines Act 1952.

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2. WASHING FACILITIES:

The Labour Investigation Committee (1946)

observed that, barring exceptions of tanneries,

printing presses and sugar factories, bathing andwashing facilities were totally absent, and

where they did exist, other accessories for

bathing were missing. The committee afterexplaining the imperative necessity for a coal

miner to wash himself at the end of the days-

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-work, observed that special arrangements for

washing or bathing in coal mines were an

exception. Workers washed or bathed in anadjoining tank from an open surface hydrant

which drew out the mine water.

Bathing and washing facilities are now providedby every employer where Factory Act, 1948,

Coal Mines Act, 1952 and Plantation Labour -

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-Act, 1951 is applicable, irrespective of the

number of works employed therein.

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3. DRINKING WATER:

The Labour Investigation Committee pointed out

that most factories made some provision for

drinking water, but the arrangements neitheruniform nor satisfactory. In textile mills,

factories, bidi works, tanneries, printing presses,

glass and sugar factories, mines and plantation,no arrangements generally existed; where they

did, they altogether unsatisfactory. However, it-

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3. DRINKING WATER:

-was only in cement factories that there were

satisfactory arrangements for supply of drinking

water.Now, it is statutory obligation upon the

employers to make satisfactory arrangements of

drinking water for their works. All employers arerequired to make satisfactory arrangements for

drinking water under the Factories Act, 1948, -

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A) INTRA-MURAL LABOUR WELFARE ACTIVITIES:3. DRINKING WATER:

-Coal Mines Act, 1952, Plantation Labour Act,

1951, irrespective of the size of establishment.

At present, almost all large scale industries have

made satisfactory arrangements for drinking

water.

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A) INTRA-MURAL LABOUR WELFARE ACTIVITIES:4. First-Aid Box:

Maintenance of first aid box for every factory

employing 150 workers is a minimum must

which can not be allowed to be ignored by any

occupier of a factory establishment.

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This is a provision which is not generally taken

seriously although the utility of it can hardly be

minimized or considered superfluous. However,

the labour welfare committee (1969)

recommended that , this provision should be

enforced strictly and sufficient number ofpersonnel be trained in all establishments in

consultation and cooperation with the -

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-respective authorities and trade unions.

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A) INTRA-MURAL LABOUR WELFARE ACTIVITIES:5. Ambulance Room:

The Factories Act, 1948 lays down that, in every

factory where in more than 500 workers are

employed, there shall be provided and

maintained an ambulance room of the

prescribed size, containing the prescribed -

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-equipment and incharged of such medical

nursing staff as may be prescribed. However, the

Labour Welfare Committee (1969) felt that, the

limit of 500 workers was kept at a time when

country had only traditional and conventional

industries which are more labour intensive like-textile and suger etc.

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-textile and suger etc., with the progressive

growth of capital intensive industries as well as

development of hazardous nature of industries

like petrochemicals, automation and the use of

nuclear energy in the near future, it is necessary

that ambulance rooms should also be providedby establishments employing less than 500

workers.

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A) INTRA-MURAL LABOUR WELFARE ACTIVITIES:6. Feeding Facilities (Canteens):

The Labour Investigation Committee realeased

the importance of as a welfare amenity. It said,

the workers canteen is increasingly recognised

all over the world as an essential part of the

industrial establishment, providing undeniable

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LABOUR WELFARE PRACTICES IN INDIA


-benefits from the point of view of health,

efficiency and well-being. To introduce and

element of nutritional balance into the

otherwise deficient and unbalanced dietry of

the workers, to provide cheap and clean food

and opportunity to relax in comfort near theplace of work, to save time and truble to

workers an account of exhausting journeys to -

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-and from work after long hours in the factory:

These are some of the objects of industrial

canteen.

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A) INTRA-MURAL LABOUR WELFARE ACTIVITIES:7. Creches:

It is a welfare facility which is provided for

women workers. A Creche is defined as a place

where babies of working mothers are taken care

of, while mothers are at work.

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The plantation Labour Act, 1951, provides that

all plantations where 50 or more women

workers are employed should provide and

maintain a suitable room for the use of children

of such women who are below the age of six

years. The room should have adequateaccommodation; adequately lighted and

ventilated; should be situated in a clean and -

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-sanitary conditions and it should be under the

charge of a women trained in the care of

children and infants.

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:1. Medical facilities:

The importance of industrial health and care in

general has been emphasised by the ILO since

1919. The Royal commission on Labour in 1931

and the Labour Investigation committee in 1946

also emphasised and necessity of providing-

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- basic health and medical facilities to industrial

workers, since it will help to reduce the

incidence of sickness and, therefore,

absenteesim among them and increase

productivity. Prior to the medical facilities

provided through the Employees State Insurance

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- Corporation, cement factories, sugar factories,

some large tanneries and several units in the

textile industry, had their own arrangements for

treatment of workers.

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:2. Educational facilities:

The Central Workers Educational Board has

helped to improve the standards of workers all

over the country. The Workers Education

Programme has been started with special

emphasis on trade unions methods and

philosophy.

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Almost all public sector undertakings have

established primary and even higher secondary

schools in their townships.

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Some of large scale private sector undertakings

have established colleges in their twonships

both for catering to the need of workers children

in general education as well as for technical

education.

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:3. Recreational facilities:

At present, in large establishment increasing

attention has been paid recreational activities.

Some establishments bear the capital cost of

construction of buildings design for recreation

and the cost of sports material and also make

available grant-in aid to meet day to day -

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-recurring costs. Some employers give grants on

matching basis. However, the scale of facilities

offered varies from employer to employer and

from project to project.

In almost all the public sector undertakings,

provision of indoor and outdoor games has been

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-made a part and parcel of the project plan

itself. Right from the initial construction stage

of the plant, budget provisions for amenities like

sports, club, reading rooms, games and athletics,

cultural activities etc., are made.

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:4. Transport facilities:

The provision of adequate and cheap transport

facilities to workers residing at long distance is

essential as such facilities not only relieve the

workers from strain and anxiety but also provide

opportunity for greater relaxation and

recreation. Provision of transport facilities also-

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:4. Transport facilities:

Helps in reducing the rate of absentation

particularly when it is on account of late arrival.

Reduction of absenteeism on account of late

arrival of worker not only helps industry but also

reduces the tension and strain amongst the

workers.

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:4. Consumers Cooperative Stores and Fair Price

Shops:

The importance of consumers cooperative

stores and fair shops was highlighted by the

National Cooperative Development and

Warehousing Board Committee of 1961; by the

Indian Labour Conference in its 20th Session in1962. The conference adopted a scheme for

setting up consumers cooperative stores in all-

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:4. Consumers Cooperative Stores and Fair Price

Shops:

-industrial establishments, including plantations

and mines, employing 300 or more workers.

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:4. Distress Relief and Cash Benifits:

Non-Statutory welfare amenities provided to

the workers cover a wide range depending upon

the importance that an empolyer attaches to

these benefits for the creation of goodwill

amongst his workers. One of these amenities is

in the nature of ex-gratia payments popularlyknown as distress relief and cash benefits. The

Imperial Tabacco Company of India give a max.-

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B) EXTRA-MURAL LABOUR WELFARE FACILITIES:4. Distress Relief and Cash Benifits:

Sum of Rs. 100,000 to the dependents on the

death of a worker. The Delhi Cloth and General

Mills Ltd., has constituted as Employees Benefits

Fund to help the workers on the occasion of the

marriage of their dependents etc.

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LABOUR WELFARE SCHEMES UNDER OTHER ACTS

1. EMPLOYEES PENSION SCHEME , 1995:This scheme was introduced on 19th November,

1995 for the industrial workers. Under the

scheme, pension at the rate of 50% of pay is

payable to the employees on retirement. A

minimum 10 years service is required for

pension. The scheme also provides for grant of

family pension ranging from Rs. 450 per monthto Rs. 2500 per month.

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2. THE WORKMENS COMPENSATION ACT,1923:Workmens Compensation Act was passed in

1923. It provides for compensation to workmen

in case of industrial accidents and resulting in

death or disablement. The Act prescribes

separate scales of compensation for death,

permanent disablement and temporary

disablement. The object of the Act is to imposean obligation on employers to pay

compensation to workers for accident during-

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2. THE WORKMENS COMPENSATION ACT,1923:-the employment. The Act covers all workmen

employed in railways, factories and mines, etc.

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3. THE MATERNITY BENEFITS ACT, 1961:Maternity Benefit Act, 1961 was made by the

Central Government. This act provides maternity

benefits to the women workers. Various objects

of this act are:a. To regulate the employment of women for specified

period before and after child birth.

b. To provide maternity benefits to women workers atthe rate of average daily basis.

c. To provide for certain benefits in case illness arising

out of pregnancy.

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4. THE PAYMENT OF GRATUITY ACT, 1972:The Payment of Gratuity Act, 1972 is applicable

to factories, mines, plantations, railways, motor

transport companies and shops. The Act

provides for payment of gratuity at the rate of

15 days wages for each completed year of

service. The Act does not effect the right of an

employee to receive better terms of gratuityunder any contract with the employer.

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5. THE PLANTATION LABOUR ACT, 1951:The following welfare facilities are to be

provided to the plantation workers:

a. Housing facilities for every worker and his

family residing at the plantation.

b. Educational facilities for the children of

workers.

c. Canteen in plantation if there are 150 ormore workers.

d. Recreational facilities for the workers.

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ASSIGNMENT


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Q.1 Give the importance and necessity of

industrial legislation in India?Q.2 What are the various labour welfare

schemes as applicable in Indian history?

Q.3 Write down the different types of labour

welfare schemes.

Q.4 Write down the objectives of labour

legislation.

Q.5 Write down the Non Statutory Schemes indetail.


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Basics of Managment