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Industrial relations and labor welfare Unit 3 :Labor welfarePrepared and presented by,N. Ganesha PandianAssistant ProfessorMadurai School of management Madurai

Contents Concept - Objectives Scope Need Voluntary Welfare Measures Statutory Welfare Measures Labour Welfare Funds Education and Training Schemes.

Concept of Labor welfareIn order to get the best out of a worker in the matter of production, working condition required to be improved to a large extent.The working condition should be as such as to safeguard his health and protect him against occupational hazardsLabor and Labor welfare sub-sector consists of 6 programmes:1, Labor Administration 2, Rehabilitation of bonded labor 3, Assistance to labor cooperative 4,Craftsmen training programme 5, Apprenticeship training programme 6, Employment services7, Sanjay Gandhi Swavalambam yojana

Welfare and working conditions Definition: 1.The Encyclopedia of social sciences (Vol. XV 1935) defines labor welfare as The voluntary efforts of the employers to establish within the existing industrial system, working and sometimes living and cultural conditions of the employees beyond that which is required by law, the custom of industry and the conditions of the market 2. The report of the committee on labor welfare setup the government of India in 1969 refers to welfare as a broad concept, a condition of well being. It speaks of measures which promote, the physical, psychological & general well being of the working population

Contd Labor welfare implies providing better working conditions such as proper lightingHeat control CleanlinessLow noise levelToilet and drinking water facilitiesCanteen and restroomsHealth and safety measures Reasonable hours of work and holidaysHousing and educationRecreation, transportation and counseling etc

Importance of labor welfare Welfare measures Statutory or non-statutoryThough statutory welfare ensures a bare minimum facilities and reasonably good working conditions, employers are free to provide or not to provide non-statutory welfare.Welfare measures must eliminate risk and insecurity To ensure their personal safety and provide them with equipment and atmosphere need to draw a fair days wageThe role of unions in welfare has also been influenced by the sociopolitical and legal environment and the economy

Contd4. Employers provide amenities to discharge their social responsibility raise the employees morale, use the work force more effectively and reduce turnover and absenteeism5. Benefits such as bonuses etc., are bound by length of service, thus ensuring that an employee will remain for a certain minimum period at least6. Welfare benefits not only raise employee morale but also make it easier for employers to attract and hire competent personnel 7. Welfare helps build a positive image of the organization and facilities dealings with the union

Labor administrationTraining and research programme to train officers of the labor department in connection with labor laws implemented in stateScheme for wide publicity to various labor laws to regulate service conditions of workers and to give publicity to various labor laws through the mediaStrengthening of medical wing of the directorate of industrial safety and health potential hazards in workplace caused by chemical factories, pesticides and etc., pose heath issue to employees

Contd4. Improvement of communications, mobility of factory inspector - facilitates a prompt inquiry into the mishap and its causes but also enables the concerned authorities to bring into action the various control measures in case of disasters5. Rehabilitation of bonded labor The bonded labor system (Abolition)act 1976 which came into force w.e.f 25 October 1975 The work pertaining to rehabilitation of bonded labor is entrusted to revenue and forest department. The collectors have been instructed to take suitable action for rehabilitation 6. Assistance to labor co-operatives The membership of labor contract societies are mainly from weaker section community. Those societies organize scattered and un organized labor together and provide them gainful employment in various work obtained from government and other agencies

Employment Employment services: The employment organization deals with rendering of employment assistance to employment seekers and collection of employment market information which is very useful for man power planning like starting of training and technical education programme Also employment coaching-cum-guidance centre in tribal areas were setup

Theories of labor welfareLabor welfare TheoryPhilanthropic theoryPublic relations theory Religious theorySocial theoryPolicy theory

Aims and objectives of labor welfareTo build up stable labor force to reduce labor turnover and absenteeism To make the industrial employment more attractive and enable the workers to live comfortably and more satisfactorilyTo increase the mental efficiency and economic productivity of industrial workers and efficiency of the enterprises To raise the standard of living of the workers by indirectly reducing the burden on their means of living To win over employees loyalty and increase their moralTo make recruitment more effective

Labour welfare in TVSAt TVS, care for its employees is a time honoured tradition. From recruitment to retirement, the company is committed to enhancing the quality of their lives.Its welfare initiatives range from continuous training and skill up gradation programmes to well-planned townships, medical centres and educational assistance.Honouring of employees associated with the organisation for a long duration with certificate symbolising the year of service and cash rewardHanding over the settlement payment on the day of retirementSpecial leave with cash given to employees for their children's marriageTVS Primary School, Madurai-11TVS Higher Secondary School, Madurai-11TVS Lakshmi Matric Higher Secondary School, Madurai-11

Source: http://www.tvs.in/about-empwelfare.aspx

Labor Welfare measures Non-statutoryVoluntary welfare includes all those activities which employers undertake for their employees on voluntary basis. It is philanthropic approach on the part of the employer to provide various welfare facilities to the workers over and above the statutory measures(eg) housing, education, recreation, transportation and cooperativesBhilani steel plant non-statutory welfare programmes in the BSP initially emerged because of its geographical locationHousing was the main problem. Though BSP undertook extensive construction programmes, it also provided loans to its employees to construct their own houses, medical and educational facilities followed

Non-statutory welfare: A model A general fallacy is that job satisfaction and productivity are synonymous or that high job satisfaction will lead to high productivityEvidence in fact points to the contrary. Productivity on the other hand has been found to be determined largely by the quality of machines, raw materials, R&D, Industrial relations, institutional setup and etc., largely1 .Personal adjustment of workers2. Nature of work3. Relationship with other workers4. Nature of supervision5. Companys setup6. Social status of his job

Non-statutory welfareProductivityCompany satisfaction

Non-statutory welfare measuresCanteen facility Holidays and leave entitlementEmployment state insurance schemeMedical re-imbursementHousing facilitiesConveyanceTour facilities Residential quartersRecreation facilitiesLibrary facilitiesTelephone ChargesMagazine and newspaper

Work environment Two important factors have potential affect the performance of a job: Provisions of appropriate working conditionPhysical environment Various feature of physical environment have been manipulated in both field and lab experiences to understand their effect on output Such physical features as illumination, noise, vibration, color and music have been experienced with extensively

ContdNoise is generally considered as a destructor. When the noise level is high, an employee has to concentrate more or exert greater efforts to perform Fatigue and boredom are often becomes apparent in increased spoilage and decreased output in addition to a greater possibility of accidents and high absenteeismThe physiological component of fatigue is measured by a device called Ergo graph

Statutory welfare measuresAfter independence the government of India passed several acts (eg) the factories act, the employees state insurance act, the minimum wages act, the payment of wages act, and industrial disputes act to ensure fair deal employees in various aspects of their jobsThe factories act 1948: The factories act 1948, was conceived in 1881 when legislation was enacted to provide health and safety measures and children In 1911, the hours of work were regulated and incorporated in the act In 1934, the royal commission of labor, the act was amended

ContdFinally, a comprehensive legislation to regulate working conditions replaced the act in 1948The 1948 amendment of act lays down basic minimum requirement for the safety, health and welfare of factory workersThe factories act,1948 comprises 11 chapters and 120 sections with a schedule listing notifiable diseasesSection 42 to 50 provides statutory welfare measures to be provided for welfare of its workers

Section 42: Washing facilities 1, Provision of facility A, Adequate and suitable facilities for washing shall be provided and maintained for the use of the workersB, Separate facilities for male and female workers shall be providedC, such facilities shall be conveniently accessible and shall be kept clean2, The state government may, in respect of any factory or class or description of factories or of any manufacturing process, prescribe standards of adequate and suitable facilities for washing

Section 43: Facilities for storing and drying clothing The state government may in respect of any factory or class or description of factories, make rules requiring the provisions therein of suitable places for keeping clothing not worn during working hours and drying of wet clothing

Section 44: Facilities for sittingIn every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position, in order that they take advantage of any opportunities for rest which may occur in the course of their work

Section 45: First-aid appliancesThere shall in every factory be provided and maintained so as to be readily accessible during all working hours first aid boxes or cupboards equipped with prescribed contents, and the no. of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed at any one time in the factory

Section 46: Canteens1. The state government may make rules requiring that in any specific factory wherein more than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of workers.2. Without prejudice, to the generality of the foregoing power, such rules may provide for-A, the date by which such canteen shall be providedB, the standards in respect of constructions, accommodation, furniture and other equipment of the canteen

ContdC, the food stuffs to be served therein and the charges which may be made thereforD, the constitution of a managing committee for the canteen and representation of workers in the management of canteenE, the items of expenditure in the running of the canteen which are not to be taken into account in fixing the cost of food stuffs and which shall be borne by employerF, the delegation to the chief inspector, subject to such conditions as may be prescribed, of the power to make rules under clause(C)

Section 47: Shelters, Restrooms and Lunchrooms1. In every factory where in more than one hundred and fifty workers are ordinarily employed, adequate and suitable shelters or restrooms and a suitable lunchroom, with provision for drinking water, where workers can eat meals brought by them shall be provided and maintained for the use of the workers: Provided that any canteen maintained in accordance with provisions of section 46 shall be regarded as part of the requirements of this sub section Provided further that where a lunch room exists no workers shall eat any food in the work room2. The shelters or rest rooms or lunch rooms exists no workers shall eat any food in the work room

Contd3. The state government may A, prescribe the standards in respect of construction, accommodation, furniture and other equipment of shelters, restrooms and lunchrooms to be provided under this sectionB, By notification in the official gazette, exempt any factory or class or description of factories from the requirements of this section

Section 48: Creches1, In every factory wherein more than thirty women workers are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women2, Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of children and infants

Contd3, The state government may make rules-A, Prescribing the location and the standards in respect of construction, accommodation, furniture and other equipments of rooms to be provided under this sectionB, requiring the provision in factories to which this section applies of additional facilities for the care of children belong to women workers, including suitable provision of facilities for washing and changing their clothesC, requiring the provision in any factory of free milk or refreshment or both for such childrenD, requiring that facilities shall be given in any factory for the mothers of such children to feed them at the necessary intervals

Section 49: welfare officers1, In every factory wherein 500 or more workers are ordinarily employed the occupier shall employ in the factory such number of welfare officers as may be prescribed2, The state Government may prescribe the duties, qualifications and conditions of service of officers employed under subsection (1)

Section 50: Power to make rules to supplement this chapterThe state government may make rules- A, exempting, subject to compliance with such alternative arrangements for the welfare of workers as may be prescribed, any factory or class or description of factories from compliance with any of the provisions of this chapterB, requiring in any factory or class or description of factories that representatives of workers employed in the factory shall be associated with management of welfare arrangement of the workers

Social security measuresILO (International labor organization) defines 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 provisions of subsidies for families with children

The social security (minimum standards) convention (No.102) adopted by ILO in 1952 defines the nine branches of social security benefit:1, Medical care 2, Sickness benefit3, Unemployment benefit4, Old age benefit5, Employment injury benefit 6, Family benefit7, Maternity benefit8, Invalidity benefit

ILO and social securityThe International labor organization was founded in 1919 for the primary purpose of promoting social justice and improving the living and working conditions of workers throughout the worldIn order to implement the measures ILO took certain steps:1, It tried to create international standards by way of recommendations regarding the definitions of social security 2, It collected and spread the information about social security schemes in various countries3, It provided technical assistance and guidance so that social security schemes may be properly formulated by means of co-operation with other social organizations

Various legislative measures have been adopted by the Government of India by ways of social security schemes for industrial workers1, Workmens compensation acts 19232, Employees state insurance acts 19483, The employee provident funds and miscellaneous provisions acts 19524, The payment of gratuity acts 19625, The industrial disputes acts 19476, Maternity benefits acts 19617, coal mines provident funds scheme acts 19488, The seamans provident fund act 19669, The plantation labor act 195110, Employees family pension scheme 1971

Labor welfare fundsTripartite labor welfare fund advisory committee : With a view to catalyze labor welfare activities, a separate tripartite advisory committee has been constituted by the government both at the central and state level under each labor welfare fund scheme At the central level, the scheme is looked after by the union ministry of labor The state advisory/committee is headed by the concerned state labor minister

Level of assistanceThe central government has taken several steps to streamline the various welfare activities with a view to increase their welfare content and extend their coverageOne of the recommendations of the committee was that the various welfare schemes undertaken against different welfare funds needed to be adequately financed by the government

Labor welfare facilities under welfare fundsA, Assistance of medical facilitiesB, Assistance of educational facilitiesC, Assistance of recreational facilitiesD, Assistance for housing facility ILO/UNFPA assisted project on family welfare education - For beedi workers is under implementation in the major beedi producing states namely, MP,UP, Orissa and WB

Group insurance scheme of LIC for unorganized laborLIC has implemented a social security scheme for unorganized workers in 23 occupations, by creating a social security fund its contribution and GOI1, Beedi workers 2, Brick-kiln workers3, Carpenters 4, Cobblers5, Fishermen6, Hemals7, Handicraft artisians8, Handloom weavers9, Handloom and Khadhi workers10, Lady tailors

11, Leather and tannery workers12, physically handicapped self employed persons13, primary milk producers14, Rickshaw pullers/ Auto drivers15, Safai Karmacharis16, Salt growers 17, Tendu leaf collecters18, The urban poor19, Forest workers20, sericulture21, Toddy tappers22, Power loom workers

Workers education and training schemes In the words of William flayed, Workers education is an attempt on the part of organized labor to educate its own member under an educational system in which the workers prescribe the courses of instruction, select the teachers and in a considerable measure furnish the finance Florence Peterson observed: The term workers education as commonly used, is not a generic term, but has specific connotation. It is a special kind of adult education designed to give workers a better understanding of their status problem, rights and responsibilities as workers, as union members, as consumers and as citizens

On the basis of analysis of various conflicting concepts of workers education, some of its notable features that have been identifies are as under:The scope of workers education is much wider than that of TU education. But is narrower than that of adult educationIt aims to create trade union consciousness among the workers, besides making them good citizens and training them to understand their status, rights and responsibilitiesIn workers education, the workers themselves prescribe the curriculum and select the teacher who have full sympathy with the working classThe institution providing workers education are owned, financed and managed by the workers

It is aimed at increasing the bargaining power of TU and making the working class more sensible and co-operativeIt differs from vocational and professional education for its main is to train a worker for his group advancement and increasing individual creativity, whereas vocational and professional education aims at individual development The approach in workers education is psychological and philosophicalIt includes general education, vocational education, technical education, and social education and training in trade unionism

Objectives of workers educationThe basic objective of workers education is to make the worker an efficient individual, disciplined TU member and an intelligent corporate citizenTo foster workers loyalty towards the union and imparting the necessary training to them for intelligent and efficient participation in union activities. Besides teaching them TU dynamics, history, etc,.To develop the worker for good and respectable civic lifeTo promote among workers a greater and understanding of the problem of the countrys economic environment and their privileges rights and obligations as union members and as citizensTo develop TU leadership from among the rank and file thereby keeping the union away from the clutches of politicians, leading to democratization of TU administrations

5. To familiarize the workers with the capitalist culture and this philosophy is the soul of modern industrial system6. To inculcate among workers a better understanding of their duties and responsibilities, and intricacies of work, so that they can effectively carry out their jobs7. To enable the worker to realize the purpose of human life and raise him to the height of achievement 8. To equip organized labor to take its place in a democratic society so that it plays a dominant role in the process of economic development and fulfills effectively its social and economic functions and responsibilities

In the view of National commission on labor, workers education should make a worker:A, A responsibly committed and disciplined operative B, To understand the basic economic and technical aspects of the industry and the plant where he is employed so that he can take and intelligent interest in its affairsC, Aware of his rights and obligationsD, To understand the organization and functioning of the union as well as develop qualities of leadership, loyalty and devotion to trade unionism, so that he may intelligently participate in the affairs of his union E, To lead a clean and healthy life based on a firm ethical foundation and F, To make the worker responsible and alert citizen

Techniques of workers education The techniques employed in imparting workers education are Guest lectures, delivered in simple, direct and unambiguous language Discussions on the topics and issues involvedOrganization of study groups Correspondence course Besides, these modern teaching methods are also developed and for this purpose, a number of educational aids can be used are: Video tapes, film strips, recordings, pictorial charts, flash cards, posters, graphs, maps and diagrams, wall newspaper, etc., The demonstration talks, tests, seminars, debates, role-playing, symposia, case studies and two way communication methods are also encouraged The educational visits and study tours of trainees to union offices, factories and multipurpose projects are important aspects of workers education

Workers education in India In India, the level of general education is low and TU suffers from a number of maladies, the scope for workers education is very greatThe royal commission on labor remarked thus: In India, nearly the whole mass of industrial labor is illiterate, a state of affairs which is unknown in any other country of industrial importance. It is almost impossible to overestimate the consequence of this disability, which are obvious in wages, in health, in productivity, in organization and in several other directions.Modern machine industry depends in a peculiar degree on education, and the attempt to build it up with an illiterate body of workers must be difficult and perilous, we would emphasize the fact that precisely because of this, the education of industrial labor should receive special attention

Scheme for worker educationThe workers education scheme was launched in 1958 by the central board of workers education (CBWE)The board is a tripartite body registered under the societies registration act 1860 which consists of a chairman(nominated by government), representatives of states and central government., representative of central TUs and the employers organizations, representatives of UGC Indian adult education association and one independent Trade unionist nominated by the ministry of labor and employment.

The Board of CBWE aims at:1, Inculcating among all section of workers a sense of patriotism national integrity, secularism and pride in being an Indian;2, Equipping them for their intelligent participation in social and economic development 3, Developing among them the Nation first approach 4, Instilling in them greater understanding of the problem of their social and economic environment, their rights and obligations as citizens, as workers in industry and responsibility towards family members The board also aims at developing among workers a sense of responsibility so that they can shoulder responsibility of TU leadership

Three levels of workers educationThe workers education programme operates at three levels:The national level: It is the top most level workers education. At this level, education officers are trained. The participants for the programme are selected by CBWE and are trained at a central place by the board officials The regional level: The regional level programmes are aimed at imparting necessary training to selected workers. The workers so educated are known as workers teacherThe unit/village level: this is the final stage of the programme. The workers teacher on completion of their return to their work place and conducts programme for rank and file of workers at their respective units

Some special category programmes are: Programme for women workersProgramme for unorganized workersProgramme for rural workersFunctional adult literacy programme Training for workers of weaker sectionsLeadership development courses

Workers training conceptIn India, there is an acute shortage of skilled and trained workers for a number of industrial occupations, and a majority of workers suffer from low efficiency , which necessarily means that the rate of skill formulation has been lowOn the basis of the recommendations of the committee, the government constituted in 1957 the National council for training in vocational trades (NCTVT), consisting of representatives of the central government and state government and labor & sought advice on all aspects of vocational training and correlating training facilities with the request of industry

Training schemes of DGETTo build up the career of young persons and to supply a constant stream of trained personnel to industries, the director-general of Employment and training (DGET) has designed a number of training programmesCraft mens training programme Craft instructors training programmeAdvanced vocational training Foremans training Apprenticeship training schemePart time training for industrial workersVocational training programme for women

1. Craft mens training - The DGET has set up industrial training institutes and centre (ITIs/ITCs) to provide training to those young men and women who are in age group of 14-25 yrs2. Craft instructors training Six training institutes, each located at Bombay, Calcutta, Hyderabad, Kanpur, Ludhiana and central training institute at madras train craft instructors required by it is and apprentice training establishment 3. Advanced vocational training The scheme was started in October 1977 to provide training to rightly skilled workers and technicians in a variety of advanced and sophisticated skills and not available under the vocational training programme

Supervisors/Foremens trainingThe supervisors/ foreman are the frontline managers, hence, they are of paramount importance due to their unique position in the organizational hierarchyIn India, for the training of foremen, two institutes are functioning, one at Bangalore (1971) and another at Jamshedpur (1986)Here training is provided to existing and potential foremen in technical and managerial skills, besides routine matters pertaining to man power management Long term courses of two years duration are:Diploma in foremanship for NAC/NTC candidatesPost Diploma in foremanship for fresh diploma holdersPost diploma in foremanship (maintenance, engineering)

Apprenticeship training scheme Under the apprentices act 1961, it is obligatory on the part of the employer to engage apprentice training consists of basic training in the specified filed followed by shop floor training The scheme is implemented by DGET with the assistance of six regional directorates of apprenticeship training (RDATs) located at Calcutta, Bombay, Madras, Kanpur, Hyderabad, and Faridabad Part time training for industrial workers The scheme for imparting part time training was introduced in 1958.With a view to improve knowledge and skill of workers who did not have the benefit of systematic training in institutesVocational training programme for women A special project for the development of women workers was undertaken by the govt. in 1977 with the assistance the Swedish international development authority (SIDA) and implemented through ILO

Evaluation of training schemesThe study group of NCL observed that: Substantial training capacities have remained unutilized No new trade have been addedThe training programmes do not take into account local and regional needsThere has not been adequate expansion in some trades in which there has been a persistent shortageThe selection of trainees is made by inexperienced and non technical persons and considerations other than the suitability of the candidates become importantThe quality of training is poor, which may due to lack of counseling arrangementsThe training provided does not conform to the needs of industries and rapid expansion of the training programme

Exam point of viewPart AMention the uses of welfare fund?Enlist the objectives of labour welfare?What are the duties of labour welfare measures officers?Explain the difference between voluntary and statutory welfare measures provided by the organizations? Define Labour welfare?Define training?Write any four statutory enactments of welfare of labourers?What is occupational disease?What is mean by fringe benefits?State any four training programs adopted in Labour welfare?What is the benefit of education?Write down two voluntary welfare measures in India?How does education and training play a role in labour welfare?Differentiate Lockout from strike?

Part B Elucidate the objectives, scope and need of the voluntary welfare measures? Explain the importance of labour welfare measures in small scale industries in India?Discuss the significance of labour welfare measures with respect to education and training of labour? List down and explain various education and training schemes which are available in India. Also explain their merits and demerits?Explain the different statutory welfare measures available for welfare of labourers in India?List down and explain the situation and factors lead to voluntary welfare measures?Describe the various sources of agency for welfare funds in detail?