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CHAPTER 1

LABOUR WELFARE ITS PURPOSE, SCOPE

AND IMPORTANCE OF THE

STUDY

INTRODUCTION

1.1 PURPOSE OF THE STUDY

1.2 OBJECTIVES OF THE STUDY

1.3 HYPOTHESIS

1.4 IMPORTANCE AND SIGNIFICANCE OF LABOUR WELFARE

1.5 AGENCIES OF LABOUR WELFARE

1.6 TYPES OF LABOUR WELFARE

1.7 IMPORTANCE OF THE STUDY

INTRODUCTION

Labour welfare is one of the major aspects of national programmes towards

betterment of the majority of labour creating population. The term 'labour

welfare' is very flexible as well as comprehensive. Labour welfare is a part of social

welfare, conceptually and operationally. It covers a broad field and connotes a

state of well-being happiness, satisfaction, conservation and development of

human resources. The Government has inacted various rules and regulations for

the betterment of the worker's life. The ideal of the welfare state has added new

dimensions to the labour welfare philosophy. The changing scenario has thrown

for labour new challenges to cope up in regard to technical skills and know-how

etc.

This welfare approach has become necessary because of the social problems

that have emerged as a result of industrialisation in a capitalistic setting. As against

there social problem, many social welfare amenities have been provided for the

benefit of the employees in various industrial units. There is an increasing

awareness of recognition in developed as well as developing countries of the

need for such welfare measures in industrial employment. The significance of

labour welfare has been increasingly recognised in the context of economic

development and industrialisation.

1.1 PURPOSE OF THE STUDY

Development oi any country mostly depends upon the growth of industries

and business. The growth of industries largely related to the welfare of the worker.

Labour Welfare may include anything done for the intellectual, physical,

moral and economic betterment of the workers, whether by employers, by

Government or by other agencies such as. Trade Unions, Trusts etc.

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Welfare work enable the workers to enjoy a richer and fuller life by providing

them basic facilities and amenities of life which they themselves can not provide.

Labour welfare improves the morality and efficiency of worker and ultimately the

productivity of industrial worker and organization. It also helps to reduce the

chances of industrial dispute like strikes and lockouts. It develops a sense of

responsibility and dignity among the workers and motivate the workers to higher

production. It also help to make workmen worthy citizens and important part of

the national development.

Though the Government has enacted number of Labour Laws, still the life of

worker is miserable and they have to work in risky and dangerous conditions. In

this study and attempt has been made :

1. To make an analytical interpretation of the labour welfare schemes

provided by the various agencies and the state of labour welfare in selected

public limited companies in and around Pune.

2. To find out some remedies and suggestion regarding the labour welfare in

the public limited companies in Pune.

1.2 OBJECTIVES OF THE STUDY

Though the purpose of the study is analysis and interpretation of labour

welfare scheme introduced by some selected public l imited companies.

The detailed objectives of the study is as under:

1. To make analytical study and the interpretation of the labour welfare

schemes introduced by the various agencies in public limited companies.

2. To find out the facts regarding the labour welfare in the selected public

limited companies situated in and around Pune region.

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3. To study the role of labour welfare officers appointed by the Companies,

their duties and responsibilities for the implementation of labour laws and

labour welfare.

4. To study the Acts and Regulations regarding the labour welfare schemes.

5. To find out whether there is any relation in labour welfare and efficiency

and productivity of the labour as well as organizations.

6. To find out relation between the labour welfare schemes and labour

absenteeism in public limited companies.

7. To study the actual labour welfare activities in the selected public limited

companies.

8. To make analysis of the labour welfare scheme provided by the Trade

Union of the workers.

9. To find out the need of labour welfare with the changed context of

economic reform, such as globalization, privatization and liberalization .

10. To find out whether the Labour Laws are successful in providing welfare

and adequate standard of living to the workers.

11. To f ind out statutory and non-statutory welfare provided and

implemented by the various agencies related to the workers.

12. To make suggestions and recommendations regarding the labour welfare

schemes in public limited companies.

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By all these objectives an attempt has been made to find out actual position of

labour welfare and the suggestions thereto after accepting new economic

reforms, improvement of labour welfare and better standard living of the worker

and also an attempt has been made to find out other problems of workers

whether organised or unorganized.

1.3 HYPOTHESIS

Labour welfare is one of the major aspects of national programmes towards

betterment of the majority of labour creating a life and work environment of

direct comfort for the class of population. The term welfare is very flexible as well

as comprehensive. The Government has framed various rules and regulations and

Acts for the betterment of the workers life. The ideal of a welfare state has added

new dimensions to the labour welfare philosophy. In the Public Limited

Company, Labour Welfare officer has to examine whether labour welfare

schemes are properly implemented or not. As India has taken to the path of rapid

industrialisation and economic growth under liberalisation, privatisation and

globalisation. There is vast scope, variety and dynamics in welfare activities and it

cannotes a state of wel l-being, happiness, satisfaction, conservation and

development of human resources.

CHARACTERISTICS OF LABOUR

Labour is an important factor of production. It is different from other factors of

production. All factors i.e. land, capital, material and machines are non-living

things whereas, labour is a living human being. This makes all the differences.

No production is possible without labour, at least one person would require to

handle the switch and to start the machine for work in the age of cent percent

mechanisation of automisation.

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The important characteristics of labour can be stated as :

1 . Labour cannot be stored

If a worker does not work for a particular day he loses that very day which

would never come back to him in future. So it is always said labour is

perishable.

2. Labour cannot be separated

The labour has to go himself to deliver the goods. He has to go to the place of

work in which he is employed. Hence, labour is inseparable.

3. Labour is his own property

The investment in labour, i.e. training and efficiency are of great importance,

because he himself retains his own property.

4. Labour has a very weak bargaining power

Labour has to work on the terms and conditions as laid down by their

employers. Since the state of the labour is generally poor and has no reserve

fund, they cannot easily withhold it from the labour market.

5. Labour is not so mobile as capital

Labour cannot be mobile easily from one place to another place like capital.

The differences in environments, languages, habits, customs and traditions,

religions etc. at different places put a great hindrance of the mobility of labour

from one place to another.

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6. The supply of labour is rigid

The supply of labour cannot be curtailed immediately even if wages fall and it

also takes time for children to grow up or for people to get trained in order to

increase the supply of labour.

7. Labour is a human factor

Labour is not an article or commodity to be purchased and sold like other

commodities, so handling of labour issues requires human touch.

8. Labour is the ultimate goal or end of production

Labour is not only a factor of production. What is being produced by the

co-operation of all the factors of production is ultimately meant for the

consumption of the people including the labour.

All the aforesaid peculiarities of labour give rise to many problems. Every

nation should seek to solve the labour problems providing better facilities to the

worker.

1.4 IMPORTANCE OR SIGNIFICANCE OF LABOUR WELFARE

Labour Welfare is very important in every nation as it helps to bring about all

round development in workers. Welfare measures are important on the following

grounds :

(i) It improve the Health of worker :

Adequate provisions of welfare facilities are greatly helpful to create

healthy worker provisions of canteen, balanced food must improve the

physical standard of the worker.

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(ii) Modernization and Automation :

Modern izat ion, automation is the important part for growth of

organization satisfied and healthy worker always helps to implement the

scheme of modernization and automation. But if workers are unsatisfied

they always oppose the schemes of modernization. Labour welfare plays

very important role in the implementation of new schemes and to develop

the organizations.

(iii) National Economic Development :

Labour welfare also helps to develop National Economy. It helps to

increase productivity of organization. It makes effect on National

productivity, Industrial growth rate etc. Indirectly, Labour Welfare helps to

national economic development.

(iv) Positive Image of the Organization :

The image of the organization depends upon the welfare scheme

introduced by the employer adequate labour welfare creates positive

image of organization among the workers.

(v) Co-operation Rise Co-operation :

The success oi any organization depends upon the mutual efforts and

co-operation of the workers and managerial persons. Labour welfare helps

to increase the feeling of co-operation among the workers.

(vl) Workers Personal Safety :

Labour welfare ensures workers personal safety and provides them with the

equipment and atmosphere needed to draw a fair days wage without any

feeling of gui l t .

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(vii) Satisfy the Needs of Workers :

Basically, workers are financially weak and the wages paid to workers were

quite inadequate to meet their basic needs. Labour welfare satisfies the

needs through entertainment, recreation, medical, education etc.

(viii) Job Satisfaction :

Works on same industries was hazardous with long hours duty no rest and

no recreation. The worker had to work in slum and in unhygienic

conditions. But labour welfare gives job satisfaction to the worker and

motivates them through best efforts to achieve the goals of organization.

(ix) Improve Industrial Relations :

Welfare facilities like provision of good housing, minimum wages and other

benefits create a feeling of satisfaction and contentment amongst the

workers, which helps to avoid conflicts. They feel that they are not ignored

as they are the weaker sections of the society thus, industrial relations wil l

be improved. It wil l bring industrial peace and cordial relations.

(x) Increase in Efficiency Productivity and Income :

Labour welfare provisions help to relieve the workers from basic worries

like housing health, education facilities means of recreation etc. All this

results in increasing the efficiency and productivity of the workers.

(xi) Improvement in Mental and Moral Health :

Incidence of social evils of industrialization like drinking, gambling,

prostitution etc. can be minimized. Hence, Labour welfare is useful in

improving the mental and moral health of workers.

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(xii) Increase in Morale :

The wi l l ing co-operation of the workers becomes possible. Satisfied

workers wi l l be less tempted by immoral and anti-social activities. The

workers can extend their whole-hearted co-operation.

(xiii) Sense of Belonging :

Labour welfare measures help to protect the interest of the workers. Once

the workers realize that they are not ignored and are the part and parcel of

the organization then their devotion to the job wil l also increase. Sense of

belonging is a psychological aspect.

(xiv) Reduction in Labour Absenteeism and Labour Turnover :

Adequate provisions of welfare facilities are greatly helpful in reducing the

extent of labour absenteeism and labour turnover to the minimum.

(xv) Change in Outlook of Employers :

Once employers wil l find that workers are co-operative, their outlook wil l

also change. They would become more and more sympathetic towards

workers and the workers may be al lowed to participate in the

management.

(xvi) Social Advantages :

There are many social advantages of Labour welfare. According to Labour

Investigation Committee "Provision of canteens where cheap, clean and

balanced food is available to workers must improve their physique, medical

aid and child welfare must improve the health of workers and their families

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and bring down the rates of general and infant morality and educational

facilities must increase the mental efficiency and economic productivity ".

In this way, these measures help in raising the status, efficiency as well as

standard of living of workers.

1.5 AGENCIES OF LABOUR WELFARE

In India, the main agencies engaged in labour welfare include

(a) Central Government,

(b) State Government,

(c) Employers, and

(d) Workers organisations.

The contribution of these agencies can be stated as under.

(a) Central Government :

A number of Acts have been passed by the Central Government 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, Indian Mines Act,

Employment of Children Act, Maternity Benefits Act, Plantation Labour Act

etc. Under these Acts, employers are bound to provide certain basic welfare

facilities to the workers. For example, under the Factories Act, 1948,

employer has to provide canteen, rest and lunch rooms, creches, medical aid,

proper lighting, ventilation, drinking water, etc. at the work place. The

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Welfare Officer is compulsorily required to be appointed e.g. Coal mines.

The Coal Mines Labour Welfare Fund. This fund is to be utilised for providing

housing, medical, educational and recreation facilities to the workers in

mines. Under the Mica Mines Labour Welfare Fund Act, 1946. In the case of

dock workers the Government also provides housing, medical care, canteens,

educational aid to children and workers. Similarly, under different statutes

the workers of other industries are provided with welfare facilities .

(b) State Governments :

The State Governments have to implement many provisions of various labour

laws. The State Governments run health centres, educational centres, etc. 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 State Government have been empowered to prescribe

rules for the welfare of workers and appoint appropriate authorities for the

enforcement of welfare provisions under various laws.

(c) Trade Unions

Trade unions have to took after the welfare of the workers and thus they are

expected to provide welfare facilities to their members. Unions can provide

educational, cultural and other facilities to their members. In Mumbai some

unions provide sport and educational facilities. Co-operative stores are also

run by some unions. Some trade unions like the Rashtriya Mill Mazdoor

Sangh are doing good work in the field of labour welfare. In addition to this,

Textile Labour Association, Ahmedabad provide certain facilities like schools,

social centres, libraries, legal aid, etc. to the textile workers. Thus, Textile

Labour Association of Ahmedabad is doing remarkable work in the labour

welfare field.

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WELFARE ACTIVITIES OF TRADE UNIONS :

Labour welfare activities of trade unions include the different types of services

or programnnes developed by them for their members. Obviously, these services

are developed by unions out of their own resources and are administered by

them. The activities of trade unions include the following :

1. Consumer's co-operative, co-operative credit societies, producer's

co-operatives etc.

2. Health and Family Planning Programmes.

3. Literacy, adult education and social education classes.

4. Workers Education and Leadership training courses.

5. Social Cultural and Recreational activities.

6. Welfare centres / Workers Institutes .

7. Vocational guidance services.

8. Safety education.

9. Participating in or campaigning for civic social services for members such

as schooling of children and transport.

10. Building houses for workers through co-operatives.

11. National Savings Schemes.

12. Civil Defence, and campaigns for the national integration, communal

harmony etc.

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THE ROLE OF THE UNION :

It seems that the role of the union in relation to the labour welfare activities

emerges from an acceptance of the fact that workers need welfare services apart

from those available to them as citizens and members of the community. The

unions think that such services should be provided by the Government either

from its own resources or by further taxing the employers.

This peculiar role of the Unions in the welfare activities has been influenced

among other things by the socio-political environment, the state of the economy

and the legal framework of the country.

It is often said that trade unions do not engage in labour welfare activities due

to inadequacy of funds. The argument is valid only to a certain extent. But that is

only apart of the story. The phenomenon of unequal interest in non-bargaining

activities on the part of different unions also has to be recognised. Two reasons

seems to explain this situation. First, the state of labour management relations is

relevant to the Union's motivation or lack of it to undertake non-bargaining

activities. Secondly, the ideological commitment oi a union also influences its

desires to undertake non-bargaining activities.

The trade unions have not been able to do much mainly due to the fact that

they are concentrating their activities on the maintenance of industrial relations

and agitating for increase in wages, allowance and bonus etc. In the near future

also it is doubtful whether they wil l be able to do much. Their indifference is also

due to the paucity of funds. The financial conditions of the majority of unions are

quite deplorable and they do not have adequate funds to take up welfare

measures. But looking at the conditions prevailing in the country, it is imperative

that they must diversify their activities and confine to the maintenance of

industrial relations mainly. In the near future they wi l l be required to shoulder

greater burdens and should not hesitate in accepting the challenge.

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"Efforts are necessary to awaken the trade unions to the facts that unless they lay

proper stress on other factor besides industrial relations, all are doomed to a

dismal failure ". They should take up those measures which may be helpful in

making the lives oi the members happier and richer and should not merely look

to the Government and the employers.

For the time being they may take the following measures :

They should :

(i) Assist the employers and the Government in the formulation and

administration of welfare schemes.

(ii) Find out the needs of the workers and bring them to the notice of the

employers and the Government.

(iii) Educate different workers to avail of the facilities offered to them.

(iv) Organise simple and inexpensive programmes.

(v) Serve as a watch-dog of worker's interests and see that the statutory

measures are duly implemented.

EMPLOYERS

Many employers provide voluntarily welfare facilities alongwith the statutory

welfare facilities. These include residential accommodation to the employees

medical and transport facilities, reading rooms, scholarships to children of the

workers, patronise teams of the employees for hockey, football, etc. Employers

can provide welfare facilities individually or collectively i.e. through their

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associations. Employers have to play a major role in providing v^elfare facilities to

industrial workers. The welfare facilities offered by the employers on their own are

called voluntary welfare facilities. Some associations of employers also provide

welfare facilities collectively, for e.g. Indian Jute Mills Association.

CHARITABLE TRUSTS :

Charitable Trusts conduct social welfare activities which are useful to all

sections of the society including industrial workers. These agencies provide

educational facil it ies medical facil it ies, scholarships, etc. However, the

contribution of such organization in labour welfare is insignificant.

1.6 TYPES OF WELFARE SERVICE

Welfare services are concerned with physical and social well-being of the

employees both within and outside the organisation. The provision of medical

benefits, recreational facilities, libraries, canteens, rest rooms are included within

the organization etc. They may also include meals and refreshments supplied free

of cost or at subsidised rates to the employees. But outside the organization

welfare arrangements include provision of housing accommodation, education of

children of employees, sports fields, medical advice for the family, etc.

On the whole, these services may be basically of three types :

1. Economic

2. Recreational

3. Facilitative.

These are discussed below.

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1 . Economic Services :

Economic services provide some additional economic security over and above

wages or salaries, such as pension, life assurance, credit facilities, etc. Establishing a

proper pension programme wi l l reduce dissatisfaction in the area of economic

security. Pension is a kind of deferred payment to meet the needs of the

employees in their old age. Generally, the amount of pension is related to the last

pay drawn and the total number of years of service. Some organizations have a

family pension scheme which provides for payment of pension to the family

members, in case of death of an employee. Similarly, the employer may

contribute towards the premium of life insurance of each employee. Some

organizations also help the employees to start co-operative credit societies to

meet the urgent financial needs of the employees or consumers co-operative

stores to provide the workers with consumers goods at low margin of profi t .

2. Recreational Services :

There is need of occasional diversion for employees. Their attitude improves

when the routine of everyday living is broken occasionally. The management, may

provide for recreational facilities for this purpose. More agreeable, informal

atmosphere is promoted through the contacts and relationships built up in the

recreational events. The management may provide for indoor games like Table

Tennis in the common room for employees. In case of big organisations,

management may provide playgrounds for outdoor games and induce the

workers to prepare a team to play matches with other similar teams which wil l

increase co-operation and understanding among the employees. The

management may also provide for reading rooms, libraries, radios, T.V., Computer

facility for the recreation oi the employees.

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3. Facilitative Services :

These are conveniences which the employees ordinarily require such as :

(i) Canteen, rest rooms and lunch rooms : Unless proper facilities for good,

tea and rest rooms are available, health ahd consequential efficiency of

the workers wi l l decrease. Hence, almost all the Stores are required to

provide canteens where food can be obtained either at a fair price or at

subsidised rates. In the same manner, lunch rooms may be provided

where workers may take their food which they bring form their homes.

Workers also need some place or shelter for taking ffest during leisure

hours. This is also required for proper upkeep of health and efficiency.

(ii) Housing facilities : Some organisations provide housing facilities for their

employees and provide the same either free or at a nominal rent. In

some cases cash compensations are provided while in other cases, loans

are given to the employees so that they can construct or purchase their

own houses or flats.

(ill) Medical facilities : First aid facilities must be provided for within the

factory premises. In addition, medical scheme is generally in operation

under which reimbursement of medical expenses actually incurred is

allowed. The organization may also provide doctors from whom the

employees may get medical facilities.

(iv) Education facilities : Educational facilities may be provided by the

organization to the employees child by starting a school for them.

(v) Leave Travel Concession (LTC) : Many organisations reimburse actual

fares incurred by the employee in undertaking a tour alongwith his or her

spouse and minor children once during a specified number of years.

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1.7 IMPORTANCE OF THE STUDY

This study is mostly related to the welfare of labour, working in the public

limited companies in Pune region. Since long, Pune is the city of cultural and

educational activities now it became a city of industries also. This became possible

because of rapid industrial development in and around Pune. There are number

of Government and private companies situated in and around Pune. These

companies have provided large number of employment opportunities to the

people living in Pune District and also to the people in rural areas in other

Districts of Maharashtra.

Large number of people from Latur, Osmanabad, Ahmednagar and Beed and

other parts of the Nation migrated to Pune for their daily bread, but now this

situation has created many problems like over population, poverty, pollution etc.

The standard of living of the people particularly labourers and workers in Pune

region affected by depression occured after economic reforms introduced in

1991. A standard of living of worker are unsatisfactory, they are working in

pitiable work condition. Some of the companies have not provided minimum

facilities like water, latrine, urinals at work place. There are insufficient provisions

for the security of workers.

In this study, an attempt has been made to analyse labour welfare schemes in

public l imited companies in Pune region and few suggestions have been

advocated regarding labour welfare. The importance of this study can be

explained as follows.

1. Public limited companies have provided employment to the people

coming from rural area of Maharashtra, so this study wi l l provide actual

information about labour welfare position in Maharashtra.

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2. Industrialisation is one of the factors of development of nation and labour is

an important factor of industrial ization and labour relation and

development of society thus, this study wil l provide information regarding

the importance of labour welfare to the Government.

3. The problems of the workers working in the small companies may be

similar all over India. This study wil l help to solve such types of problems

particularly those are related with the welfare of labour. In short, the

finding and suggestions of this study may be useful in applying other states

too.

4. This study contributes to the area of research concerning the economic

problems and the standard of living and the welfare of the workers. The

main focus of this study is on the welfare facilities of the workers.

5. The study would be most useful to the research scholars, particularly to

those who are interested in welfare activities of the workers.

6. This study wil l provide new information and dimension to the policymakers

and the Government in order to determine the labour welfare schemes.

7. After knowing the welfare problems oi the worker and the factors

responsible for the same, one would be in a position to suggest proper

measures for the improvement of standard of living of the workers.

8. This study would provide a clue to the social reformer and the policymaker

to prepare or develope appropriate labour welfare policy in future.

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