15 - Chapter7 Labour Welfare
15 - Chapter7 Labour Welfare
15 - Chapter7 Labour Welfare
7.5 Classification of Labonr Welfare Work 7.6 Welfare Programmes for Organised Sectors
7.7 Social Security Measures
7.8 Social Security in India 7.9 Recent Trends
7.10 Benefits and Welfare Schemes of Employees of MRF, HNL, Kottayam Textiles, Travancore Cements Ltd. References
7.1 Introduction
Labour welfare occupies a place of significance in the industrial development and economy. It is an important facet of industrial relations, the extra dimension, giving satisfaction to the worker in a way which even a good wage cannot. With the growth of industrialization and mechanization, it has acquired added importance. A happy and contented work force is an asset for the industrial prosperity of any nation.' Labour welfare is nothing but the maintenance function of personnel in the sense that it is directed specifically to the preservation of employee health and attitudes. In other words, i t contributes to the maintenance of employee morale. The welfare services in an industry is to improve the living and working conditions of workers and their families because the workers well-being cannot be achieved in isolation of his family2 Labour welfare, though it has been proved to contribute to efficiency in production, is expensive. Each employer depending on his priorities gives varying degrees of importance to labour welfare. It is because the government is not sure that all employers are progressive minded and will provide basic welfare measures that it introduces statutory legislation from time to time to bring about some measure of uniformity in the basic amenities available to industrial workers. "Obviously, there is some creation and stimulation in the maintenance function just as there is some maintenance in all other operative personnel functions. But the primary emphasis in employee
service programme has been on maintaining an employee's favourable attitude towards his work and work environment"."
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only intervenes to "widen the area of appli~abilit~".~ Committee on The Labour Welfare (CLW), formed in 1969 to review the labour welfare scheme, described it as social security measures that contribute to improve the conditions under which workers are employed in India. Vaid considers it as
life for the employee, whatever leads to the increasing adaptation of thc worker to hls task and whatever makes him well contented will lessen his desire or need to leave. One of the thrust areas in the personnel in future would be the creation of the type of organizational environment that will help to make work more s a t i s h g . '
Welfare measures also serve to enhance an organizations image as a caring employer.' This image can be very usehl to organizations in recruiting the workers.
Social advantage of labour welfare is by no means less important than economlc ones The provision of canteen, where balanced diet is available at subsidized rates, improves workers health, entertainment's tend to reduce the incidence of vices; medical aid and maternity benefits improve the health of workers and bring down the rates of general, maternal and infant mortality and like wise educational facilities broaden their outlook and improve mental health.
The welfare measures have more relevance in the context of the poor standard of livins of the Indian working class. It is, therefore, one major aspect of national programmes towards the promotion of the welfare of the people and is as such designed to create a life and work environment of decent comfort for worhng class. As stated already, the directive principles of state policy in our constitution have very significantly highlighted the need for
securing just and humane conditions of work for this vital segment of the community.
'There could be multiple objectives in having a labour welfare programme The concern for improving the lot of the workers, a philosophy of humanitarianism or what is now termed as internal social responsibility, a feeling of concern, a caring by providing some of life's basic amenities, besides the basic pay packet. Such caring is supposed to build a sense of loyalty on the part of the employee towards the organization.
The humanitanan approach has given way to a more practical utilitarian approach. The utilitarian approach views investment in welfare through an economic framework where the possible cost benefit to the organization gains greater concern through improved or quicker services from the employees.
"'The welfare package by taking care of the basics of living, frees the worker to devote his time and attention to the organizational task and thus enhance efficiency and output. An attractive package, which provides benefits throughout the course of an employee's career, serves to attract and retain the better workers and simultaneously enhance their morale. The organization is also eligible to certain tax wncessions by spending on employee we~fare".'~
Welfare 1s a dynamic concept and so it needs to be constantly adapted to the changing circumstances. This is a truism in the industrial system as well. For example the first approach was the paternalistic approach. This approach to labour welfare can be traced back to the begnning of the modem industrial system when there was hardly any difference between management and ownership and the owners got first hand information of the living and working conditions of workers. Some of them, motivated by philanthropic, humanitarian and religious considerations, did much to improve the lot of the working masses. Though considerable amount of the so called welfare work was done during the post first world war period; (mainly as a product of the stresses and strains of the war) it was insufficient to result in promoting welfare as is clear from the following observation of the British Trade Union congress Delegation (1927-28). "We became convinced that under the cover of paternalism and benevolence, many unjust conditions of work obtained... and that was not really much, if anythu~g, be said in favour of employees to
parsing welfare work as against others who do not.. . . Our general conclusion
on welfare work as at present carried on is that it is a delusion and a snare."
Patemal~st~c approach was followed by the ~ndustr~al efic~ency approach Industrial eficlency approach was an outcome of the growth of b ~ g compatues wh~ch brought about a separation of funct~ons management and of ownersh~p, and ~ncreasedthe d~stance between the owners and the workers
Personal relationship was replaced by impersonal rules. With "bigness" arose the problem of commitment and efficiency, and a solution was attempted by formulat~ng welfare schemes. Thus, philanthropy was substituted by enlightened self-interest. The primary drawback of this approach was that it is the ulterior motive of improving efficiency that guides employer's welfare scheme.
The latest approach to labour welfare is to conceive it as an integral part of the programme of general welfare. This approach, being a social approach, is neither philanthropic nor with any ulterior motive. It is so designed as an end in itself, to serve as an instrument of socio-economic policy. The objective of labour welfare scheme has at last aims "it serves man, to alleviate the burdens of his struggle for existence and to reduce the hardships of life"'2.
7.4 Principles of Labour Welfare Labour welfare is not a substitute for low wages and other allowances, nor can it be used as an argument against raising the earnings of workers. A failure to understand thls basic principle will only make labour welfare measures unpopular.
The cardinal principle of labour welfare programmes is to ensure that it serves the real needs of workers concerned. Special classes of workers
require special type of welfare services. Proper assessment of needs of the workers and determination of priorities, thereof, must be done. Workers should be asked to participate in the formulation and administration of welfare programmes. This is necessary because the programmes are meant for them and their participation ensures that the welfare measures correspond to their needs. It also removes the suspicion of workers and the stigma of paternalism.
Workers should be free to use or not to use the facilities and arnenit~es provided Any compuls~on pressure is encroachment upon workers' nght to or 11veas they please and they will resent it. The cost of welfare schemes must be well estimated and its financing on must be establ~shed a sound basis. Ill-conceived welfare scheme without adequate consideration of its financing will mean either its failure or consequent financial strain to the management. It will also unnecessarily cause threat to ~ndustrialharmony since a service introduced once is difficult to be abandoned by the management.
7.5 Classification of Labour Welfare Work
2. Voluntary
3. Mutual
Statutory welfare is the product of the coercive power of the government. Statutory stipulations compel employers to implement welfare schemes. The government enacts rules in regard to labour welfare in order to enforce the mlnimum standard of health and safety of the workers. Employers have to observe the rules relating to working conditions, hours of work, hygiene, safety, light, ventilation, sanitation etc. Government have increased the statutory control of labour welfare.
Voluntary welfare includes all those activities which employers undertake for their workers on a voluntary basis. There are some social organizations, which also undertake voluntary welfare work. Mutual welfare is undertaken by the workers themselves. Some trade unions also undertake the responsibility of workers welfare.
Labour welfare is also classified under intra-mural activities, and extra-mural activities. The former include services provided inside the factory premises, and the latter include services and amenities outside the factory.
2. Rest jaci1itie.r
This amenity provides a prescribed number of seats on the shop floor and rest rooms or shelters. This facility helps to reduce fatigue, as it enables a worker to sit down occasionally without any break in his work and contribute to his comfort and efficiency. The factories Act provides that, for the purpose of rest, suitable sitting arrangements have to be made and maintained for all workers who are obliged to work standing and rest rooms and lunch rooms in a factory with more than 150 workers.
Mess rooms are an elementary feeding facility, where with a few chairs, and tables and in some cases lockers, workers can sit and eat in comfort, the food they have brought from home. Presently, greater and increasing importance is attached to the provision of industrial canteens all over the world. The construction of canteens is compulsory as per the Factories Act (1948), the Mines Act (1952), Motor Transport Workers Act (1 961) and the Plantation Labour Act (1951).
Health care for workers will help to reduce the incidence of sickness and, absenteeism among them and increase productivity The importance of industrial health care in general has also been emphasized by the international labour organization. In 1931, the Royal Commission on Labour and the Labour Investigation Committee (1946) underlined the necessity for providing basic health and welfare amenities.
The importance of industrial health service is greater in India than
elsewhere because of the adverse effects of unhealthy work environment in many factories and also due to the incidence of tropical diseases, long hours of work, low wages causing malnutrition and poor stamina; illness of workers due to ignorance and poverty and urban wnhtions of life which do not agree with migrated workers." These services include health and medical facilities
inside and outside the workers place of work, intra-mural health amenities cover first aid, ambulance rooms, industrial hygiene, occupational health, and emergency medical care in case of accidents or sudden illness inside factory premises.
'The IL0, in its conventions and recommendations, has laid down standards, whlch have had a contributory effect on legislation in 1ndia.l4The factories act ( l 948) contains statutory provision for the maintenance of first aid kit for all factories and ambulance room obligatory for those employing
500 or more workers. Further, statutory medical facilities were provided
under the Employees State Insurance Act, (1948). This Act extends the following benefits to industrial workers (1) maternity benefits (ii) disablement benefits (iii) dependents' benefits (iv) sickness benefits and (v) medical benefits.
Medical care and cash benefits are provided to workers for such reasons as sickness, maternity and disablement and death or injury due to employment. The families of workers are also covered to some extent under this Act.
indusmally advanced western countries and are gaining in importance and recognition in large sized undertalangs in India. One of the main functions of
these health servlces is to protect workers against the health hazards arising out of the nature of their work or the work environment. The service includes carrying out of periodical medical checks of certain categories of workers to detect early signs of ill-health and prevent the outbreak of serious health complaints. Section 87 of the Factories Act refers to dangerous occupations and states that the state government is empowered to make rules in respect of any or all classes of factories in whch any operation exposes persons to serious risks of bodily, injury, poisoning or disease.
Tremendous growth in population has increased thc strength of the labour force and created a number of economic problems, including the problem of unemployment and industrial unrest. A great deal of attention has, therefore, been paid to family planning programmes for industrial workers. The ILO Resolution of 1947 has included family planning as an integral part of labour welfare. The importance of this programme at international level was brought out by the international labour conference at its Geneva session in 1966.
The Factories Act lays down that in any factory with more than 50 women workers, a creche should be provided and maintained for children under six years in a clean and sanitary condition. The Act states that the
creche should be under the care of women trained in child care and should have adequate accommodation, lighting and ventilation. The state government is empowered to make rules in respect of standards, equipment and facilities.
Flousing is an integral part of worker's welfare. Recommendation 1 15 of the 1LO states that housing should be a matter of national policy. Both the lndustnal Commission (1918) and the Royal Commission (1913) realized the importance and necessity of improving housing conditions of industrial workers and made recommendations for the purpose.
Transport facilities to and from the place of work are given to workers as one of the desirable welfare amenities. This facility is gaining in popularity because of growing urbanization, location of industries, transport loads and trat5c congest~on.The main purpose of this amenity is to enable workers reach their place of work without undue delay or fatigue.
Recreation is a leisure time activity which is a healthy diversion and a spare-time occupation. It refreshes an individual mentally, lessens the monotony and drudgery of his every day work, and develops his personality on a wholesome basis.
industrial workers. Education would improve the quality of the labour force,
for it would provide opportunities for a proper training for the acquisition of skills and techniques which are essential for workers in an industry and which will enable them to adjust themselves to their particular way of life, and to enable them to acquire broader values of life, personally, industrially and socially The need and importance of such educational facilities in India have been accepted and emphasized by various commissions and committees, such as Indian Industrial Commission (1958) the Royal Commission on Labour (1 93 l), the National Commission on Labour (1966), the Malaviya Committee on Labour Welfare (1969) etc. Yet, there is no statutory obligation with regard to education for worker's children in any industry except in plantations.
desirable and has been recommended again and again by various committees and conventions.
The co-operative credit societies also help the worker to save for unforeseen domestic crises.
By means of this sewice workers are able to receive advice and counsel on some of the personnel and sometimes also on personal problems insidc and outside their place of work. A trained social worker is usually appointed for this purpose. Counselling helps a workers to overcome his anxiety and troubles.
There are many non-statutory welfare amenities available to industrial workers, depending on the importance the employer attaches to these benefits. One is an ex-gratis payment called Distress Relief and cash benefits paid in case of death, injury, sickness, marriage or as a felicitation grant. It is a gift made by the employer to his workers. The C.L.W. has recommended that workers and employers should work out a mutually acceptable formula for such benefits and that State Labour Welfare Board should earmark a portion of their fund to help small-scale units.
Social security forms an important part of labour welfare providing the "security" wh~chis of great importance to the worker's and their families well-being. The concept of social security measure is well reflected in the
ILO definition. "It can be taken to mean the protection which society provides
for its members, through a series of public measures, against the economic and social distress that otherwise would be caused by the stoppage or substantial 'reduction of earnings resulting from sickness, maternity, employment injury, unemployment, invalidity, old age and death; the provision of medical care, and the provision of subsidies for families with children
"
The concept of social security varies fiom country to country with different political ideologies. In the socialist countries, the avowed goal is
n complete protection to every citizen f?om the cradle to the grave. L other
nations with less regimented economics, a measure of protection is afforded to all the needy citizens by means of schemes evolved by democratic processes consistent with the resources of the state. The social security (minimum standards) convention (No.102) adopted by the ILO in 1952 defines the nine branches of social security benefit: They are
1. Medical care
2. Sickness benefit
3 . Unemployment benefit
7. Maternity benefit
8. Invalidity benefit
security The 1LO researches, publications, studies and reports have all underlined the importance of social security.
7.8 Social Security in India
The following legislative measures have been adopted by the government of India by way of social security schemes for industrial workers.
Under the Act, an insured person is entitled to receive benefits such as medical benefit, sickness benefit, maternity benefit, disablement benefit, dependents benefit, funeral benefit etc.
Ill. The I<mployee.~ Provident Fzinds and Mi.sce1laneozr.s i'rovovisiotz~Act, l952
The Act has made schemes for three types of benefits viz, provident fund, family person and deposit linked insurance.
Ilndcr the Act gratuity is payable to an employee on the termination of his employment after he has rendered continuous service for not less then tive years. ' f i e completion of continuos service of five years is, however, not necessary where the termination of the employment is due to death or disablement.
establishments. Tnis Act replaced the Mines Act and it was adopted by most of the states. It does not apply to those covered by the ESI schemes.
VII. Coal Mine.s l'rovident Fzmd Bontrs Scltente Arr I948
It applies to workers employed in the coal mines (including the National Coal [levelopment Corporation ) earning less than Rs.300 per month. The Bonus scheme applies to all those earning less than Rs.7301- per
month in coal mines other than the NCDC and is paid entirely by the employers.
Whlle most employers offer a vanety of benefits to employees, employees very rarely have any cholce in the benefits they recelve Employee benefits are generally selected for employees by management One study not found that unlon representatlves d ~ d have a good Idea of the benefits deslred by thelr
constituents" Another
benefits packages
IX
In the l~yht the above findings the recent "cafeteria style" approach of
to benefit represents a major step in the evolution of employee benefits based on age, sex, number of children family status, life style and preferences. Under this system, each employee is allowed to select on individual combination of benefits within some over all limits. There are two important advantages to a cafeteria style approach. First, it allows employees to have the benefits, they need and desire most, second, by their active involvement in benefits selection, employees become more aware of the benefits they have and of their cost". But at times an in appropriate benefit package may be chosen by employees.20 Labour welfare services is an important personnel functlon in a business. The earlier view of considering labour as nothing more than a factor of production had changed over the years and now welfare for the employees holds a place of importance in the minds of every employer.
The eft'ectlve utilization of other factors of production depends on the efficiency of human factor. The worker spends more than a quarter of his life in his working place. Therefore the workers has every right to demand that the condition under which he works should be reasonable and provides proper safeguards for life and health. The amount of dedication, quality of work, commitment to the organisation, morale etc. are all determined by the type and amount of welfare a worker receives.
In Kerala the organised factory workers are in a better position as far as welfare is concerned because they are provided with various statutory and non-statutory welfare services. The factories Act, East Act, PF Act, Gratuity Act, Workmen's Compensation Act etc. contain several measures with a view to provide reasonably good working conditions to protect the health of the workers and to ensure a good future to them. The successive Governments in Kerala have introduced a large number of social security and welfare schemes for the workers to attain the goal of a welfare states.
7.10 Benefits and Welfare Schemes for the Employees of MRF, HNL, Kottayam Textiles, Travancore Cements Ltd.
At the registered office as well as the manufacturing units subsidised lunch/meals are prov~ded all thekmployees. The subsidy given to a workers to per month is close to Rs. 500/-.
In add~tlonto the weekly off there are also fixed number of National and Festival holidays. An employee during his training period is eligible for:
4 days casual leave per calendar year and 8 days sick leave per calendar
year.
On confirmation he is eligible for 28 days privilege leave per calendar year. Casual leave can be taken a maximum of three days at a time. For availing sick leave exceeding two days, a medical certificate will have to be submitted. Privilege leave can be availed subject to a restriction of maximum thrice in a calendar year.
Slck leave, privilege leave or compensatory off cannot be combined with casual leave. However, privilege leave can be combined with sick lave in case of prolonged illness.
The ESI is compulsorily applicable to employees drawing monthly emoluments not exceeding Rs. 6,500/-. This coverage helps the employee get free medical treatment or hospitalization. The ESI contribution per monthly emoluments is 1.75% and the company makes a contribution of 4.75%. An ESI identity card is Issued which has to be produced at the dispensary while going for treatment.
Medical Reimhzrt:~enzet~/
EJmployees who are not covered under the ESI scheme will be reimbursed medical expenses as per the company's scheme. Such employees are covered under a hospitalization insurance scheme with United India Insurance Co. Ltd. All accidents, whether on duty or otherwise are taken care of, since there is 24 hours coverage.
family.
Hcalth programmes like eye, dental and gynecoloyical camps with followL I facilit~es. ~
Economic activities to enable spouses also to earn and augment the fam~ly lncome and recreational activities.
These centres also organize programmes for the children, which include career guidance, educational camps, sports and recreational activities. The activities of all the family welfare centres are overseen by the director, welfare.
The MRF House Magazine titled "Entirely Yours' is published and sent to the residence of the employees once every quarter. The objective of the magazine is to establish a communication link with all the members of the MRF family spread across the country. The magazlne contains information about the company, industry activities of the recreation club, ladies forum etc.
Labour Welfare Measures in Kottayam Textiles and Travancore Cements Limited and Hindustan Newsprint Limited, Kottayarn
Only for permanent workers, subsidized food is given, companies pay a huge amount as subsidy, every month.
Reimbursement of medical expenses to the employees and their families is provided. In H.N.L, there is the facility of a hospital in the compound with four doctors.
'Travelling allowances are given and the companies provide buses to carry the workers f?om and upto main stations.
Kmployee Welfare J;und
There are employee welfare funds also inorder to meet the emerging needs of the workers.
Tour J;h.cilitie.s to the Employees
Subsidized tour facilities to the employees under Kerala state employees welfare fund. Company buses are made available for such tours at nominal rates.
Drinking Water
Water coolers are provided at all the plants and in all the offices
Residential Qtrarters
There 1s a "Kendnya Vidyalaya" within the campus for the children of the employees. They can study upto standard 12. The building, equipment and the maintenance are hlly looked &er by the company. The company also runs a preprimary school at the U.K.G. level. For the children of the employees undergoing class studies, complete function fees are reimbursed. These education facilities are not seen in Kottayam Textiles and Cements.
There are recreation clubs for the employees and their families. There are well-maintained playgrounds. Facilities for indoor games like shuttle badminton, playing cards, table tennis, chess, etc. are provided.
Library for the employees and their families is run by the companies. For officers, there is a separate officer's club with all modem facilities and auditorium is also there. Annual competitions in sports and games and cultural activities are conducted for the employees. Umbrellas, footwear, uniforms and raincoats are given to the employees. Employee's co-operative Bank and Employee's consumer co-operative stores are vely et'fectlvely functioning.
Shopping Complex
Hotel, cold storage, book shop, stationery shop and weekly markets are also available in the HNL campus. These facilities are not seen anywhere else. Hindustan Newsprint is well known for its welfare activities to the community. Company is providing drinking water facilities to two panchayat areas. Adoption of Vellor village under the village adoption scheme and facilities to the dwellers. To llfill the long cherished providing ~nfrastructural desire of the local residents of Vellor for a foot bridge along the side of railway bridge across the Mcovattupuzha river, HNL has made a contribution of Rs. l 6 lakhs for the construction of the bridge.
References
1 . N. K Joshi, "Labour welfare
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(Department of Labour and Employment), p.5 3. Flippo, Principles of Personnel Management, New Delhi, MC Graw-Hill
5. K.N. Vaid, Labour Welfare in India, Shn Ram Centre for Industrial
Relations, New Delhi, 1970, p.27. 6. Quoted from the ILO Resolution of 1947, as in the Report of f l ~ e
Indian Management,
1990, p . 397.
10. Arun Monoppa, Industrial Relafions, Tata MC Graw-Hill Publishing Company, New Delhi, 1989, p.244.
I I . A.A. Puncell and Halls Worth. J.,Heporfon Labour C,'ondi~iuns lnd~u in ,
( P d . ) Ltd. 1980, p. 197. 13. Punekar S.D. Deodhar S.B. and Sankaran Saraswathi, Labour Welfare
17.
18. Fragner N . Benvyn, "Employees Cafeteria offers insurance options".