Discussion on Labour Welfare

Synopsis •Fundamentals of Life:

•Discussion on Labour or Workers Welfare

•Recognition of Labour Welfare by the Constitution

•Statutory Recognition

•Non-Statutory Recognition

•Analysis of Labour Welfare measures

•Final thoughts

Historical Development Of Labour Law• Before: 1900: Ancient And Medieval Period

• 1. Workers treated slaves

• 2.Mater and servant relationship

• 3. No employment rights: working conditions, wages, health, safety, welfare, social security protections

• 4. Workers at the mercy of employers

• 5. as a factor of product: no dignity

• 6.Prohibited to form any

Historical Development Of Labour Law•No process to dispense with services

•Industrial Revolution in the uk and other nations: contributed to exploitation

•Code of Hammurabi king of Babylon, 2250 BC: wages and other benefits

•UK Statute of Labourers 1351: prolong hours, no TU, punishment for TU;

•Workers and association

Historical Development Of Labour Law• AFTER 1900: INDUSTRIAL DEVELOPMENTS

• Workers Association Demanded right n dignity

• The era of modern employment rights

• Many employment protection laws: Creation of the ILO in 1919: League of Nations: WWI

• India as a founding member:

• 1944 Philadelphia Declaration: Charter : UNO: WWII

• First Factories Act, Trade Unions Act, Workmen Compensation Act, 1923, Payment of wages 1936, Trade Disputes Act, 1929, etc

Concept Of Labour Law

• Labour law as a body of laws regulating relations on various employment issues such as IR, Welfare, Health, Safety, Working Conditions, Social Security, Wages etc.

• Labour Law defines rights and obligations of the stake holders: the State, Employer or association of employers, and Workers or workers associations

• Labour Law or Employment Law or Industrial Law: pro-workers and for workers

• NO DEARTH OF LABOUR LAWS IN INDIA, BUT THE IMPLIMENTATION?

NEED OF LABOUR LAW• Workers and workers associations are relatively weak

and They depend merely upon the mercy of employers.

• Individual worker is economically very weak and is unable to bargain better terms with the employers.

• SHOULD IT BE LEFT TO THE MARKET FORCES?

1. To Protect Workers From Profit SeekingExploiters.

2. To Promote Cordial Industrial Relations .

3. To Preserve and provide for, social securityprotections, Health, Safety & Welfare OfWorkers.

4. To Provide For Redressal Of Grievances

Sources Of Labour Laws

•The Constitution Of India,

1950

•The Central & State

Legislations

•Rules And Regulations Framed

Under The Subordinate

Legislations

•The Case Laws: Judicial

Decisions

CONSTITUTIONAL LAW

•MOTHER OF LAWS-7TH SCHEDULE

•LABOUR LAWS IN THE CONCURRENT LIST- III OF THE 7TH SCHEDULE

•Classification of Law: Subject and Enforcement

•UNION LIST–CENTRAL GOVERNMENTEMPLOYEES

•CONFLICTS: THE CENTRE AND STATELAWS : ARTICLE 254

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CONSTITUTIONAL LAW

Article 39(d) Equal Remuneration

Article 41: Right to Work, Unempt,old Age, Disablement, Benefits

Article 42: Works Conditions ,Maternity Relief

Article 43: Living Wage-HighestLevel Wage

Article-43A: Workers ParticipationIn Mgmt

Article: 309-311: only forgovernment servants

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Classification Of Labour Laws

•Three Groups of Labour

Laws

•1. Protection to

Stakeholders: Group and

Individual

•2. Subject matter:

Industrial Relations, etc

Classification Of Labour Laws

• Labour Laws Protecting Stakeholders:

• 1. Labour Laws Protecting Group Rights: Trade Unions Act, 1926, Industrial Disputes Act, 1947: strike, Industrial Disputes, IE(SO) 1946

• 2. Labour Laws Protecting Individual Interest: Employees State Insurance Act, 1948, Employment Compensation Act 1923,

Classification Of Labour Laws

Power to legislate and power to enforce

1.Central Government(CG) & CG : ESI Act, EPF, Act, Mines Act.

2. Central Government & Enforced by both Governments : bonus, wages, maternity, gratuity, SO, UW SocSec Act, 2008 ID Act 1947: Majority of Labour Laws

3.C G and State Government (SG)

Factories Act, Trade Unions Act, ECA,1923

4. S G & S G: BIRA,1946,MPIRA,1960,

Classification Of Labour Laws

Subject Matter1.Industrial Relations2.Labour Welfare3.Social Security4.Remuneration5.Working Conditions6.Health And Safety7.Special Labour Laws

Laws related to Social Security

1 The Employee’s Compensation Act, 1923

2 The Employees’ State Insurance Act, 1948

3 The Employees’ Provident Fund &

Miscellaneous Provisions Act, 1952

4 The Payment of Gratuity Act, 1972

5 The Maternity Benefits Act, 196115

Laws related to Labour Welfare

1. The Factories Act, 1948

2. The Plantation Labour Act, 1951

3. The Mines Act, 1952

4. The Motor Transport Workers Act, 1961

5. The Contract Labour (Regs & Abolition) Act, 1970

6. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

7. The Building & Other Construction Workers(Reg of Employment & Conditions of Service)Act, 1996

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• Organise and Un-organise Sectorwork force

• labour force of around 475million as per estimatesavailable for the year 2014-15.

• 80 million workers engaged inorganised sec

• At present about 87% of the workforce of Indian economy isengaged in unorganized sector andremaining 13% in organizedsector.

• A large part of unorganizedsector is unorganized agriculturewhere productivity and quality ofwork is poor. Very large portionof self-employed are poor and

Development of LW•Exploitation of labour, long hours of work, bad

sanitation, absence of safety measures etc., were the regular features of the factory life.

•During the early period of industrial development, efforts towards workers’ welfare was made largely by social workers, philanthropists and other religious leaders, mostly on humanitarian grounds.

•The deplorable conditions in which labour worked in the textile mills in Bombay during those days, as testified by the factory commission of 1875.

• The movement to improve the working conditions of Indian labour started with the passing of the first Indian Factories Act in 1881.

• it recognized the right of the government to safeguard the interests of the workers by means of a suitable legislation.

• Therefore, the Mulock Commission was appointed by the Government of Bombay in 1884 to review the working of the Factories Act of 1881.

• The Factories (Amendment) Act 1891 applied to all factories employing 50 persons or more. Provisions relating to better ventilation, cleanliness and for preventing over crowding in factories were also made.

•The concept of labour welfare originated in the desire for a humanitarian approach to ameliorate the sufferings of the workers and their families on account of the baneful effects of large-scale industrialization

•Later it became a utilitarian philosophy which worked as a motivating force for labour and for those who were interested in it.

•Now, labour welfare received inspiration from the evolution of the social thought in regard to democracy and welfare state.

• The Committee on Labour Welfare (1969) defined labour welfare to “ include such services, facilities and amenities

• as adequate canteens, rest and recreational facilities, sanitary and

• medical facilities, arrangements for travel to and from work and

• for the accommodation of workers employed at a distance from their homes and

• such other services, amenities, and

• facilities including social security measures as contribute to improve the conditions under which workers are employed”.

•Labour welfare is a dynamic concept which acquires new dimensions with the changes in the environment of industry.

• It was as early as 1931 that „

•Whitley Commission observed‟,

• “Labour welfare is one which must necessarily be elastic, bearing a somewhat different interpretation in one country from another,

• according to the different social customs, the degree of industrialisation and

• the educational development of the workers”.

• The Study Team, appointed by the Government of India in 1959 to examine labour welfare activities then existing, divided the entire range of these activities into three groups, viz.,

• i. Welfare within the precincts of an establishment: medical aid, crèches, canteens, supply of drinking water, etc.,

• ii. Welfare outside the establishment: provision for outdoor recreation, housing, adult education, visual instructions, etc. and

• iii. Social security.

Why Labour Welfare

• An analysis of the definitions given above presents three broad features of labour welfare concept, namely –

• (1) It is anything given beyond the wages to the workers;

• (2) The employer, Government, union or any other voluntary body can be the agency for labour welfare; and

• (3) Labour welfare can be measures provided in the precincts of the company, outside the premises of the company, and social security measures.

• Why Labor welfare is necessary?

• The Rege Committee (1946) observed that,

• “We prefer to include under welfare activities anything done for intellectual, physical, moral and economic betterment of workers

• whether by employer, Government or

• other agencies,

• over and above provided by law or under some contract and

• what is normally over and above provided by law or under some contract and

• what is normally expected as part of the contract for service”.

•The I.L.O. (SEA) session held at New Delhi in 1947 defined Labour Welfare as

• “such services, facilities and amenities,

•which may be established in or in the vicinity of, undertakings to enable persons employed therein

•to perform their work in healthy, congenial surroundings and

• to provide them with amenities conducive to good health and good morale.

• Philanthropic Theory:

• This theory is based on man‟s love for mankind as the word philanthropic means “loving mankind”.

• to remove the suffering of others and promote their well-being.

• This drive may be a rather powerful one and may impel him to perform noble sacrifices.

• When some employers have compassion for their fellowmen, they may undertake labour welfare measures for the benefit of their workers.

• In India, Mahatma Gandhi was one of the eminent philanthropists who strove for the welfare of labour.

•Trusteeship Theory: • According to this theory, the industrialist or

employer holds the total industrial estate, properties, and profits accruing from them in trust.

• In other words, he uses it for himself, for the benefit of his workers, and also for the society.

• The employers have the moral responsibility to look after the interests of their workers.

• There is naturally no legal binding; but since it is a moral obligation,

• Mahatma Gandhi very strongly advocated the trusteeship theory.

•The Placating Theory: • This theory is based on the fact that labour groups are

becoming demanding and militant, and are now more conscious of their rights and privileges than ever before.

• Their demand for higher wages and better facilities cannot be ignored.

• According to this theory, timely and periodical acts of labour welfare can appease the workers.

• They are some kind of pacifiers which come with a friendly gesture.

• Appeasing or Populist approach:

• Sincerity may lack in such measures though discontent can be brought off in this manner.

• The Functional / Efficiency Theory:

• Under the functional or efficiency theory, welfare work is used as a means to secure and preserve the efficiency and productivity of labour.

• It is obvious that if an employer takes good care of his workers, they will tend to become more efficient and will thereby step up productivity.

• Higher production is of benefit to both management and labour.

• This is the functional aspect of welfare having efficiency as its purpose. This theory is a reflection of contemporary support

• Public Relations Theory:

• This theory provides the basis for an atmosphere of goodwill between the labour and the management and also between the management and the public.

• Labour welfare programmes, under this theory, work as a sort of publicity and help an industrialist to build up good public relations.

• The measures for labour welfare may also be utilized to improve relations between management and labour.

• An exhibition of a labour welfare programme may help an industrialist to project to the public a good image of his company.

•The Police Theory: • 1. employers will not leave any opportunity of exploiting

the workers, if not enforced by law. They may force the labour to work in unhygienic conditions, by neglecting, safety and health measures, by ignoring the basic necessities.

• 2. This is based on the contention that a minimum standard of welfare is necessary for labourers. Here, the assumption is that without policing, that is, without compulsion, employers do not provide even the minimum facilities for workers.

• 3. the state has to intervene to provide minimum standard of welfare to the working class. The state has to take the role of policeman and compel the employers to provide welfare facilities, and punish the non-complete.

•Labour Welfare Agencies in India

•In India, the main agencies engaged in labour welfare include:

•(a) Central Government;

•(b) State Governments;

•(c) Employers;

•(d) Workers‟organisations; and

•(e) Voluntary organisations

• Central Government: • The Central Government has passed a number of

Acts for the welfare of different types of workers.

• It also administers the implementation of industrial and labour laws.

• The important Acts which incorporate measures for the welfare of the workers are:

• Factories Act,

• Mines Act,

• Plantation Labour Act, etc.

• Under these Acts, employers have to provide certain basic welfare facilities to the workers.

• State Government:

• The implementation of many provisions of various labour laws rests with the State Governments.

• The State Governments run health centres, educational centres for the welfare of the workers.

• They also keep a vigil on the employers that they are operating the welfare schemes made obligatory by the Central or State Government.

• The SGs have been empowered to prescribe rules for the welfare of workers and appoint appropriate authorities for the enforcement of welfare provisions under various labour laws.

• Employers:

• Many employers provide voluntarily welfare facilities along with the statutory welfare facilities.

• These include residential lease accommodation to employees, medical and transport facilities, reading rooms, scholarships to children of workers, patronize teams of employees for hockey, football, etc.

• Employers can provide welfare facilities individually or collectively i.e., through their associations.

• Employers have to play a major role in providing welfare facilities to industrial workers.

•Trade Unions: • Trade Unions are supposed to raise the welfare of

workers and naturally they are expected to provide certain welfare facilities to their members.

• Unions can provide educational cultural another facilities to their members.

• Some trade unions like the Rashtriya Mill Mazdoor Sangh are doing good work in the field of labour welfare.

• Textile Labour Association, Ahmedabad provides certain facilities like schools, social centres, libraries, legal aid, etc. to the textile workers.

• Problems of trade Unions in India and Welfare

• Voluntary Organisation:

• Some social-welfare and charitable organisations conduct social welfare activities which are useful to all sections of the society including industrial workers.

• These agencies provide medical aid, educational facilities, scholarships, etc.

•However, the contribution of such organisations in labour welfare is not so significant.

•Political Parties, Civil Societies, NGOs etc

Scope of Workers welfare

• Welfare Services related to physical and social well-being of the employees both within and outside the organisation.

• Laws: medical benefits, recreational facilities, libraries, canteens, rest rooms, etc.

• meals and refreshments supplied free of cost or at subsidized rates to the employees.

• But outside the organisation, welfare arrangements include provision of housing accommodation, education of children of employees, sports fields, medical facilities for the family, etc.

•Intramural:

•Welfare amenities within the precincts of the establishment (intramural)

• such as latrines and urinals; washing and bathing facilities; crèches, rest shelters and canteens, arrangements for drinking water,

• arrangements for prevention of fatigue, health services including occupation safety,

• administrative arrangements to look artery uniform and protective clothing and shift allowances.

•Extramural:

• Welfare amenities outside the establishment

• benevolent funds; medical facilities including programmes for physical fitness and efficiency; family planning and child welfare;

• education facilities including adult education; housing facilities; recreational facilities including sports, cultural activities, library and reading room, holiday homes and l

• leave travel facilities; workers‟ cooperative stores, fair price shops and

• cooperative thrift and credit societies; vocational training for dependents of workers;

Classification of Labour Welfare

• Statutory:

• Those which have to be provided irrespective of size of establishment, say, drinking water. Also, those which have to be provided subject to the employment of a specified number of people, e.g. Crèche are also part of statutory welfare amenities.

• Non-Statutory:

• In the case of certain amenities, there are no minimum standard laid down as in the sphere of housing, medical treatment, recreation, transport and educational facilities.

• This is left to the discretion of the employer.

Laws regulating Labour Welfare

1. The Plantation Labour Act, 1951

2. The Mines Act, 1952

3. The Motor Transport Workers Act, 1961

4. The Contract Labour (Regs & Abolition) Act, 1970

5. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

6. The Building & Other ConstructionWorkers (Reg of Employment &Conditions of Service) Act, 1996

7. Latest Supreme Court Case Nov 2016

‘Factories Act, 1948’

• Factory and Industry?

• Sec 42: Washing facilities; Sec 43: Facilities for storing and drying clothing

• Sec 44: Facilities for sitting; Sec 45: First Aid appliances

• Sec 46: Canteen; Sec 47: Shelters, Rest rooms and Lunch rooms

• Sec 48: Crèches; Sec 49: Welfare officers

• Sec.42 to 45 apply to all factories irrespective of the number of workers employed.

Welfare officers

• Sec 49 Factories Act,1948: 500 workers

• Sec.18 of the Plantations Labour Act, 1951 : “In every plantation wherein 300 or more workers are ordinarily employed, the employer shall employ such number of Welfare Officers as may be prescribed.

• Section 58 of the Indian Mines Act, 1952 : “For every mine wherein 500 or more persons are employed ordinarily, the owner, the agent or manager shall appoint a suitably qualified person as Welfare Officer”.

Statutory Welfare measures

1.First Aid appliances:

2.Crèches: Number of employees

3.Rest Rooms, Shelters, sitting Places:

4.Drinking water, Spittoons, etc

5.Toilets: Separate for Male and Female:

6.Canteen: with specific requirements: Numbers

7.Welfare officer:

•Model Shops and Establishments (Regulation of Employment and Conditions of Service) Bill, 2016

•To Cover Shops and Establishments Employing Ten or more Workers Except Manufacturing Units

•clean and safe drinking water,

•first-aid, lavatory,

• crèche and

•canteen by group of

Problems of Labour welfare

•Unwillingness of employers

•Lack of effective enforcement

•Ineffective trade Unions

•Liberalization and globalization

•Role of the State: Exemption