sagar(labour welfare)

8/7/2019 Sagar(Labour Welfare)

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Declaration

I Sagar Adhangale of ANNA LEELA COLLEGE OF COMMERCE &

ECONOMICS, SHOBHA JAYARAM SHETTY COLLEGE FOR B.M.S,

S.Y.B.M.S, Semester 4th hereby declare that I have completed the

project on Labour Welfare Schemes in academic year 2010-11.

The information submitted is true and original to the best of my

knowledge.

Signature of student,[Sagar Adhangale]


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Acknowledgement

I hereby acknowledge all those who directly or indirectly helped me to draft the

project report. It would not have been possible for me to complete the task

without their help and guidance.

First of all I would like to thank the principal Dr. K.S. Cheema and the

coordinatorProf. Susan Alexwho gave me the opportunity to do this project

work. They also conveyed the important instructions from the university from

time to time. Secondly, I am very much obliged ofProf. Uma Raghuvan for

giving guidance for completing the project.

Last but not the least; I am thankful to the University of Mumbai for offering the

project in the syllabus. I must mention my hearty gratitude towards my family,

other faculties and friends who supported me to go ahead with the project.


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Index


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Labour Welfare in India: A review

Social security is one of the pillars on which the structure of a welfare state

rests, and it constitutes the hard core of social policy in most countries. It is throughsocial security measures that the state attempts to maintain every citizen at a certainprescribed level below which no one is allowed to fall. It is the security that societyfurnishes through appropriate organization, against certain risks to which its membersare exposed (ILO, 1942). Social security system comprises health and unemploymentinsurance, family allowances, provident funds, pensions and gratuity schemes, andwidows and survivors allowances. The essential characteristics of social insuranceschemes include their compulsory and contributory nature; the members must firstsubscribe to a fund from which benefits could be drawn later. On the other hand,social assistance is a method according to which benefits are given to the needypersons, fulfilling the prescribed conditions, by the government out of its own

resources.

The present section reviews labour welfare activities in India withparticular emphasis on the unorganized sector. Although provisions for workmenscompensation in case of industrial accidents and maternity benefits for womenworkforce had existed for long, a major breakthrough in the field of social securitycame only after independence. The Constitution of India (Article 41) laid down thatthe State shall make effective provision for securing the right to public assistance incase of unemployment, old age, sickness and disablement and in other cases ofunderserved want. The Government took several steps in compliance of theconstitutional requirements. The Workmens Compensation Act (1926) was suitablyrevised and social insurance programmes were developed for industrial workers.Provident funds and gratuity schemes were introduced in most industries, andmaternity legislation was overhauled. Subsequently, State governments institutedtheir own social assistance programmes. The provisions for old age comprise pension,provident fund, and gratuity schemes. All the three provisions are different forms ofretirement benefits. Gratuity is a lump sum payment made to a worker or to his/herheirs by the company on termination of his/her service due to retirement, invalidity,retrenchment or death (Vajpayee and Shankar, 1950).


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Welfare:

Welfare is the provision and maintenance of the conditions of life for individuals

by the community.Welfare has apositive and negative aspect.Negative welfare is the provision bythe state or other institutions of a safety net or the distribution of benefitsaccording to some criteria; so-calledpositive welfare is the provision ofopportunities for people to help themselves. This contrast lies behind foreign-aid strategies which concentrate on providing skills or seed capital rather thanfood parcels, for example. The concept of positive and negative welfare is relatedto the concepts of positive and negative freedom.Marxists support both positive and negative welfare, but recognize that themarket inevitably generates inequality and a class of people inevitably therecipients of welfare, who have nothing to sell but their labour power, alongside a

class of people who live off the proceeds of exploitation, invariably the providersof welfare. Only by bringing the means of production under thorough goingproletarian democracy can the very need for welfare be abolished.

Definitions:

Labour welfare has been defined in various ways, though unfortunately nosingle definition has found universal acceptance.

1. The Oxford Dictionary defines labour welfare as efforts to make lifeworth living for worker

2. Chambers Dictionary defines welfare as a state of faring or doing well;freedom from calamity, enjoyment of health, prosperity.

3.The ILO report refers to labour welfare as such services, facilities, andamenities, which may be established in, or in the vicinity ofundertakings to enable persons employed therein to perform theirwork in healthy and congenial surroundings and provided withamenities conducive to good health and high morale.


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Concept of labour welfare:

The concept of labour welfare is flexible and elastic and differs widely withtime, region, industry, social values and customs, degree of industrialization, the

general socio-economic development of the people and the political ideologiesprevailing at a particular time. It is also moulded according to the age-groups,socio-cultural background, marital and economic status and educational level ofthe workers in various industries

In its broad connotation, the term welfare refers to a state of living of anindividual or group in a desirable relationship with total environment ecological, economic, and social. Conceptually as well as operationally, labourwelfare is a part of social welfare which, in turn, is closely linked to the conceptand the role of the State. The concept of social welfare, in its narrow contours,has been equated with economic welfare. As these goals are not always berealised by individualsthrough their efforts alone, the government came into the

picture and gradually began totake over the responsibility for the free and fulldevelopment of human personality of its population.Labour welfare is an extension of the term Welfare and its application

to labour. During the industrialisation process, the stress on labour productivityincreased; and brought about changes in the thinking on labour welfare. An earlystudy under the UN observed as follows in our opinion most underdevelopedcountries are in the situation that investment in people is likely to prove asproductive, in the purely material sense, as any investment in material resourcesand in many cases, investment in people would lead to a greater increase of theflow of goods and services than would follow upon any comparable investment inmaterial capital (UN, 1951). The theory that welfare expenditure, especially

expenditure on health and education, is productive investment has led to the viewthat workers could work more productively if they were given a fair deal both atthe work place and in the community.

The concept of labour welfare has received inspiration from theconcepts of democracy and welfare state. Democracy does not simply denote aform of government; it is rather a way of life based on certain values such asequal rights and privileges for all. The operation of welfare services, in actualpractice, brings to bear on it different reflections representing the broad culturaland social conditions. In short, labour welfare is the voluntary efforts of theemployers to establish, within the existing industrial system, working andsometimes living and cultural conditions of the employees beyond what isrequired by law, the custom of the industry and the conditions of the market (A.J. Todd, 1933).


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Features:

On the basis of the various definitions, the basic characteristics of labourwelfare work may be noted thus:

1. It is the work which is usually undertaken within the premises or in the vicinityof the undertakings for the benefit of the benefit of the employees and themembers of their families.

2. The work generally includes those items of welfare which are over and abovewhat the employees expect as a result of the contract of service from theemployers.

3. The purpose of providing welfare amenities is to bring about development ofthe whole personality of the worker -his social, psychological, economic, moral,cultural and intellectual development to make him a good worker, a good citizenand a good member of the family.

4. These facilities may be provided voluntarily by progressive and enlightenedentrepreneurs at their own accord out of their realization of social responsibilitytowards labour, or statutory provisions may compel them to make these facilitiesavailable; or these may be undertaken by the government or trade unions, if theyhave the necessary funds for the purpose.

5. Labour welfare is a very broad term, covering social security and such otheractivities as medical aid, crches, canteens, recreation, housing, adult education,arrangements for the transport of labour to and from the work place.

6. It may be noted that not only intra-mural but also extra-mural, statutory aswell as non-statutory activities, undertaken by any of the three agencies- theemployers, trade unions or the government- for the physical and mentaldevelopment of the worker, both as a compensation for wear and tear that heundergoes as a part of the production process and also to enable him to sustainand improve upon the basic capacity of contribution to the processes ofproduction, which are all the species of the longer family encompassed by theterm labour welfare.


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Labour and Labour Welfare

Labour sector addresses multidimensional socio-economic aspects affectinglabour welfare, productivity, raising living standard of labour force and socialsecurity. To raise earnings of work force and achieve higher productivity, skillupgradation through suitable training is of utmost importance. Manpowerdevelopment to provide adequate labour force of appropriate skills and quality todifferent sectors essential for rapid socio-economic development and eliminationof the mismatch between skills required and skills available has been a majorfocus of human resource development activities during the last fifty years.Employment generation in all the productive sectors is one of the basicobjectives. In this context, providing enabling environment for self employmenthas received special attention both in urban and rural areas. Objective is also toeliminate bonded labour, employment of children and women in hazardousindustries, and minimize occupational health hazards. During the Ninth Planperiod, elimination of such undesirable practices as child labour, bonded labour,

ensuring workers safety and social security, looking after labour welfare andproviding of the necessary support measures for sorting out problem relating toemployment of both men and women workers in different sectors will receivepriority attention. It is also envisaged that the employment exchanges will bereoriented so that they become the source of labour related information,employment opportunities and provide counseling and guidance to employmentseekers.

All labour welfare measures have the following objectives:

1. Enabling workers to live richer and more satisfactory lives;

2. Contributing to the productivity of labour and efficiency of the enterprise;

3. Enhancing the standard of living of workers by indirectly reducing the burdenon their purse;

4. Enabling workers to live in tune and harmony with services for workersobtaining in the neighbourhood community where similar enterprises aresituated;

5. Based on an intelligent prediction of the future needs of the industrial workers,designing policies to cushion off and absorb the shocks of industrialisation andurbanisation to workers;

6. Fostering administratively viable and essentially developmental outlookamong the workforce;

7. Discharging social responsibilities.


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Principles of labour welfare

Certain fundamental considerations are involved in the concept of

labour welfare. The following are the more important among them.

1. Social responsibility of industry:

This principle is based on the social conception of industry and its role in thesociety that is, the understanding that social responsibility of the state ismanifested through industry. It is assumed that labour welfare is an expression ofindustrys duty towards its employees.Social responsibility means that the obligation of the industry to pursue thosepolicies, to take such decisions, and to follow those lines of action which aredesirable in terms of the objectives and values currently obtaining in the society.

The values of the Indian community are enshrined in the constitution of thecountry. Labour welfare is not embroidery on capitalism nor the externaldressing of an exploitative management; rather, it is an expression of theassumption by industry of its responsibility for its employees (Maurioce Bruce,1961). Industry is expected to win the co-operation of the workers, provide themsecurity of employment, fair wage, and equal opportunity for personal growthand advancement, and make welfare facilities available to them.

2. Democratic values:

The principle of democratic values of labour welfare concedes that workers mayhave certain unmet needs for no fault of their own, that industry has anobligation to render them help in gratifying those needs, and that workers have aright of determining the manner in which these needs can be met and ofparticipating in the administration of the mechanism of need gratification. Theunderlying assumption to this approach is that the worker is a mature andrational individual who is capable of taking decisions for himself/herself.

3. Adequacy of wages:

The third principle of labour welfare is adequacy of wages; it implies that labourwelfare measures are not a substitute for wages. It will be wrong to argue thatsince workers are given a variety of labour welfare services, they need be paidonly low wages. Right to adequate wage is beyond dispute.


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4. Efficiency:

The fourth principle of labour welfare lays stress on the dictum that to cultivatewelfare is to cultivate efficiency. Even those who deny any social responsibility forindustry do accept that an enterprise must introduce all such labour welfare

measures which promote efficiency (Marshall, 1950). It has been oftenmentioned that workers education and training, housing, and diet are the threemost important aspects of labour welfare, which always accentuate labourefficiency.

5. Re-personalization:

Since industrial organisation is rigid and impersonal, the goal of welfare inindustry is the enrichment and growth of human personality. The labour welfaremovement seeks to bring cheer, comfort, and warmth in the human relationshipby treating man as an individual, with quiet distinct needs and aspirations. Social

and cultural programmes, recreation and other measures designed after takinginto consideration the workers interests go a long way in counteracting theeffects of monotony, boredom, and cheerlessness.

6. Co-responsibility:

The sixth principle of labour welfare recognises that the responsibility for labourwelfare lies on both employers and workers and not on employers alone(Moorthy, 1958). Labour welfare measures are likely to be of little success unless

mutuality of interest and responsibilities are accepted and understood by boththe parties, in particular the quality of responsibility at the attitudinal andorganisational level.

7. Totality of welfare:

The final principle of labour welfare is that the concept of labour welfare mustpermeate throughout the hierarchy of an organisation, and accepted by all levelsof functionaries in the enterprise.


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Scope of labour welfare work:

It is somewhat difficult to accurately lay down the scope of labour welfare work,especially because of the fact that labour class is composed of dynamic

individuals with complex needs.In a world of changing values, where ideologies are rapidly undergoingtransformation, rigid statements about the field of labour welfare need to berevised. Labour welfare work is increasing with the growing knowledge andexperience of techniques. An able welfare officer would , therefore, include in hiswelfare programme the activities that would be conducive to the well-being of theworker and his family. The test of the welfare activity is that it removes, directlyor indirectly, any hindrance, physical or mental of the worker and restores to himthe peace and joy of living the welfare work embraces the worker and his family.The following list, which is by no means exhaustive, gives the items under which

welfare work should be conducted inside and outside the work place:

1.Conditions of work environment:

The workshop sanitation and cleanliness, humidity, ventilation,lighting, elimination of dust, smoke, fumes and gases, convenienceand comfort during work, operative postures, sitting arrangementsetc; distribution of work hours and provision for rest times, breaksand workmens safety measures.

2.Workers health services:

These should include factory health centre; medical examination ofworkers, factory dispensary and clinic for general treatment; infantwelfare; womens general education; workers recreation facilities;education, etc;

3.Labour welfare programme:

These should cover factory council consisting of representatives of

labour and employers; social welfare departments; interview andvocational testing; employment, follow-up, research bureau;workmens arbitration council.


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4.Labours Economic welfare programme:

These should include co-operatives or fair price shops for consumernecessities; co-operative credit society, thrift schemes and savings

bank; health insurance; employment bureau; etc.

5.General welfare work:

This should relate to housing and family care.

Labour Welfare Funds

The Ministry of Labour is administering five welfare funds for beedi, cine andcertain categories of non coal mine workers. the funds have been and set upunder the following Acts of Parliament:

1. The mica mines Labour Welfare Fund Act, 1946.2. The Limestone and Dolomite Mines Labour Welfare Fund Act.3. The Iron Ore, Manganese Ore and Chrome Ore Mines Labour Welfare

Fund Act 1976.4. The Beedi Workers' Welfare fund Act, 1976.5. The Cine Workers Welfare Fund Act, 1981 .

The fund created by these acts, is used by the Central Government for the Welfareof Workers under these occupations.

1.Agriculture Workers:

Agriculture Workers constitute by far the largest segment of workers in theunorganised sector. These workers get employment for less then six months in ayear and have to migrate to other ares for alternative employment.

Several measures have been taken to protect the interests of the agriculturalworkers. The very first legislation-the Minimum Wages Act, 1948 is applied to the

agriculture sector also. Measures have also been taken to look into the interest ofconstruction workers. Many enactments were extended to the includeconstruction workers.


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2.Child Labour:

According to the 1991 Census, the number of working children in the country wasof the order of 11.28 million (State wise details are available in annexure 5.7.5).The existence of child labour in hazardous industries is a great problem in India.

Non availability of accurate, authentic and up to date data on child labour hasbeen a major handicap in planned intervention for eradication of this social evil.Efforts are underway in the Ninth Plan, to modify and improve the existingNational Child Labour Project.

3.Rehabilitation of Bonded Labour :

A Centrally Sponsored Scheme was launched by the Ministry of Labour in 1978-79 for the identification, release and rehabilitation of bonded labourers. The

scheme envisages provision of rehabilitation grant up to a ceiling limit of Rs.10,000/- per freed bonded labourer, half of which is given as central share.

4.Women Labour:

The Ministry of Labour has set up a Women Labour Cell in 1975. The intentionwas to focus attention on the lot of working women with a view to improving it.An important activity of the Cell is to convene the meeting of the Central AdvisoryCommittee which has been constituted under the Equal Remuneration Act, 1976and follow up the recommendations made by the Committee.


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Occupational Safety and Health:

The Constitution of India contains specific provisions on Occupational Safety and

Health of workers. The Directorate General of Mines Safety (DGMS) andDirectorate General of Factory Advice Service and Labour Institutes(DGFASLI)strives to achieve occupational safety and health in mines factories and ports. Theschemes relating to occupational safety concentrate on improvement of workenvironment, man-machinery interface, control and prevention of chemicalhazards, development of protective gears and equipment, training in safetymeasures and development of safety and health information system.

Labour Statistics:

The Labour Bureau is responsible for collection, compilation and publication of

statistical and other information regarding employment, wages, earnings,industrial relations, working conditions etc. It also compiles and publishes theconsumer Price Index Numbers for industrial and agricultural workers. TheBureau further renders necessary assistance to the States for conducting trainingprogrammes in Labour Statistics of State/District/Unit levels.

Workers' Education:

The Central Board of Workers Education is dealing with schemes for training ofworkers in the techniques of trade unionism and in bringing about consciousnessamong workers about their rights, duties and responsibilities. The Board has also

undertaken programmes for rural workers' education and functional adulteducation.

Labour Research and Training:

The V.V. Giri National Labour Institute, a fully funded autonomous body of theMinistry of labour, conducts action oriented research and provides training tograss root level workers in the trade union movement, both in the urban andrural areas and also to officers dealing with industrial relations, personnelmanagement, labour welfare etc.


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Medical care:

According to ILO recommendation No.69, medical care should be provided eitherthrough a social service medical care service, with supplementary provisions byway of social assistance, to meet the requirements of people in need who are notcovered by social insurance, or through a public medical service (ILO, 1984). Itrequires that complete preventive and curative care be available, care which isrationally organised and coordinated with general health services. In India,medical care is provided largely by the public medical service, by private doctorsand hospitals, and to a limited extent by social insurance schemes, welfare funds,and voluntary health associations. Some of the Welfare Funds in Kerala haveadopted the reimbursement of the cost of medical care at standard rates oractual, whereas the Employees State Insurance Scheme is based on providing theservice directly under an integrated arrangement in which the financing and themedical services vest with the same organisation. On the other hand, some of thepublic sector establishments provide service indirectly by entering into contract

with doctors, diagnostic centres, and hospitals.

Following are the benefits:

1. Sickness benefit:

Sickness benefit is payable when an insured person has to stop work due to hispoor health conditions, and such a stop in work usually entails reduction orstoppage of earnings. Cash benefit is designed to replace in whole, or in part, thelost earnings. In India, there is provision for payment of sickness benefit under

the Employees State Insurance Scheme (Government of India, 1996). Employeesof Central and State governments and some public and private sectorestablishments are entitled to medical leave on half-pay.

2.Maternity benefit:

One of the earliest conventions adopted by ILO was the Maternity ProtectionConvention in1919. The purpose of this Convention was to ensure that a woman worker wouldbe able to sustain herself and her baby during the period immediately before andafter her confinement. Maternity benefit is usually provided under a social

insurance scheme along with medical care and sickness benefit. In Indiamaternity benefit is provided under the Maternity Benefit Act (as an employersliability) the Employees State Insurance Act (as a part of the health insurancescheme), theBeediand Cigar (Conditions of Employment) Act, Beedi and CigarLabour Welfare Fund Act, and the various State government schemes for socialassistance.


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3.Employment injury benefit:

Employment Injury Benefit is the most widely adopted branch of social security,and is also known as workmens compensation. According to ILORecommendation No.67 concern in income security, the contingency for which

compensation for employment injury should be paid, is traumatic injury, ordisease in the course of employment, and not injury brought about deliberately,or by serious and willful misconduct of the victim, which results in temporary orpermanent disability or death (ILO, 1984). This is a cash benefit but is oftenassociated with medical care.

4.Old-age benefit:

Old age, invalidity, and survivors benefits are the main long-term social securitybenefits, which are of great importance in any social security scheme. ILOconventions stipulate that the pensionable age should not be more than 65 years,

unless required by demographic, economic, and social criteria, and that thereshould be a lower age for persons engaged in arduous occupations. Old agepension may be at a flat rate, or be related to ones past earnings. The currenttrend appears to be toward building a multi-tiered system consisting of a basicminimum pension and one or more earnings-related pensions. In India old-agebenefit is provided as follows (Ministry of Labour, 1996).

(a) Government employees: Paid by respective governments on the basis ofemployers liability.

(b) Employees pension scheme: Workers covered under the Employees

Provident and Miscellaneous Provisions Act.

(c) Destitutes and persons below the poverty line.

5.Unemployment benefit:

The underlying principle of unemployment benefit is that if a person, through nofault of his, is deprived of his income, he has a right to expect income support, atleast for the necessities of life while he remains available for work. According toILO recommendations No.67, the contingency in which unemployment benefitshould be paid is loss of earnings due to a state of unemployment of an insured

person who is ordinarily employed, a person who is capable of regularemployment in some occupation and is searching for suitable employment or dueto part time unemployment (Government of India, 1995-96). Its main purpose isto deal with temporary unemployment of employed persons and not the extensiveand prolonged unemployment and under-employment found in many developingcountries. The payment of the benefits depends on satisfying the qualifyingclause of covered employment, and a waiting period may also be applied.


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6.Family benefit:

ILO Recommendation No.67 says that society should co-operate with parents,and give general assistance designed to secure the wellbeing of children. Thisbenefit is intended to assist families in raising their children. Although there are

no family benefit schemes in India, which provide for the payment of cashallowances to families for the maintenance of children, there exist many schemeswhich help families of Scheduled Castes/Tribes, minorities and other weakersections of society, in the discharge of their responsibilities for education of theirchildren, marriage of their daughters, construction of houses, and meetingfuneral expenses.


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Statutory welfare schemes

The statutory welfare schemes include the following provisions:

1. Drinking Water:

At all the working places safe hygienic drinking water should beprovided.

2. Facilities for sitting:

In every organization, especially factories, suitable seatingarrangements are to be provided.

3. First aid appliances:

First aid appliances are to be provided and should be readily assessableso that in case of any minor accident initial medication can be providedto the needed employee.

4. Latrines and Urinals:

A sufficient number of latrines and urinals are to be provided in theoffice and factory premises and are also to be maintained in a neat andclean condition.

5. Canteen facilities:

Cafeteria or canteens are to be provided by the employer so as toprovide hygienic and nutritious food to the employees.

6. Spittoons:

In every work place, such as ware houses, store places, in the dock areaand office premises spittoons are to be provided in convenient placesand same are to be maintained in a hygienic condition.

7. Lighting:

Proper and sufficient lights are to be provided for employees so thatthey can work safely during the night shifts.


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8. Washing places:

Adequate washing places such as bathrooms, wash basins with tap and

tap on the stand pipe are provided in the port area in the vicinity of thework places.

9. Changing rooms:

Adequate changing rooms are to be provided for workers to changetheir cloth in the factory area and office premises. Adequate lockers arealso provided to the workers to keep their clothes and belongings.

10.Rest rooms:

Adequate numbers of restrooms are provided to the workers withprovisions of water supply, wash basins, toilets, bathrooms, etc.

Non statutory schemes

Many non statutory welfare schemes may include the followingschemes:

1. Personal Health Care (Regular medical check-ups):

Some of the companies provide the facility for extensive health check-up

2. Flexi-time:

The main objective of the flextime policy is to provide opportunity toemployees to work with flexible working schedules. Flexible workschedules are initiated by employees and approved by management tomeet business commitments while supporting employee personal life

needs

3. Employee Assistance Programs:

Various assistant programs are arranged like external counselingservice so that employees or members of their immediate family canget counseling on various matters.


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4. Harassment Policy:

To protect an employee from harassments of any kind, guidelines are

provided for proper action and also for protecting the aggrievedemployee.

5. Maternity & Adoption Leave:

Employees can avail maternity or adoption leaves. Paternity leavepolicies have also been introduced by various companies.

6. Medi-claim Insurance Scheme:

This insurance scheme provides adequate insurance coverage of

employees for expenses related to hospitalization due to illness, diseaseor injury or pregnancy.

7. Employee Referral Scheme:

In several companies employee referral scheme is implemented toencourage employees to refer friends and relatives for employment inthe organization.


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Webliography

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