Labour welfare, social securities & industrial relations

ASSIGNMENT ON Labour welfare

SUBMITTED TO Dr. Archana Singh

SUBMITTED BYSAMIR WARSI Roll no. 42 MBA (HR&IR) 3rdSem

LABOUR WELFARE
Labour welfare implies the setting of minimum desirable standards and the provisions of facilities like health, food, clothing, housing, medical assistance, education, insurance, job security, recreation and so on. Such facilities enable the worker and his family to lead a good work life and social life. Labour welfare also operates to neutralise the harmful effect of large- scale industrialisation and urbanisation. Labour welfare may be viewed as a total concept, social concept and a relative concept. The total concept is desirable state of existence involving the physical, mental and social wellbeing. These four elements together constitute the structure of welfare on which its totality is based. The social concept of welfare implies the welfare e of man, his family and community. All these aspects are inter-related and work together in three dimensional approaches. The relative concept implies that welfare is relative in time and place. It is a dynamic and flexible concept hence its meaning and content differs from time to time, region to region, industry to industry, and country to country, depending upon the value system, level of education, social systems, and political systems, degree of industrialisation and general standards of socio-economic development of the people. Labour sector addresses multi-dimensional socio-economic aspects affecting labour welfare, productivity, living standards of labour force and social security. To raise living standards of the work force and achieve higher productivity, skill up gradation through suitable training is of utmost importance. Manpower development to provide adequate labour force of appropriate skills and quality to different sectors is essential for rapid socioeconomic development. Employment generation in all the productive sectors is one of the basic objectives. In this context, efforts are being made for providing the environment for self-employment both in urban and rural areas. During the Ninth Plan period, elimination of undesirable practices such as child labour, bonded labour, and aspects such as ensuring workers safety and social security, looking after labour welfare and providing of the necessary support measures for sorting out problems relating to employment of both men and women workers in different sectors has received priority attention. Various plan schemes of the Ministry of Labour aim at achievement of welfare and social security of the working class and maintenance of industrial peace. As against the approved outlay of Rs.130 crore for the year 1999-2000, the anticipated expenditure would be Rs.104 crore. The approved outlay for the year 2000-2001 is Rs.123 crore.

The Government has provided the social security cover to most of the workers in the organised sector through the Employees Provident Fund Office and Employees State Insurance Corporation within the legal framework. However, no such social security cover has been provided to the workers in the unorganised sector who constitute 92% of the total work force. The concept of Labour Welfare Fund was, therefore, evolved in order to extend a measure of social assistance to workers in the unorganized sector. Towards this end, following separate legislations have been enacted by Parliament to set up five Welfare Funds to be administered by Ministry of Labour to provide housing, medical care, educational and recreational facilities to about 49 lakh beedi workers, 73,650 mine workers and 68,000 cine workers:1. The Mica Mines Labour Welfare Fund Act, 1946; 2. The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972; 3. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund Act, 1976; 4. The Beedi Workers Welfare Fund Act, 1976; and 5. The Cine Workers Welfare Fund Act, 1981. The Ministry of Labour is administering five Welfare Funds for beedi, cine and certain categories of non-coal mine workers. The Funds have been set up under the Acts of Parliament for the welfare of these workers. The Funds are financed out of the proceeds of cess levied under respective Cess/Fund Acts on manufactured beedis, feature films, export of mica, consumption of limestone & dolomite and consumption and export of iron ore, manganese ore & chrome ore. Rate of cess on manufactured beedis, feature films, Iron Ore, Manganese Ore, Chrome Ore, Limestone & Dolomite and Mica at a glance is given as under: CESS RATES UNDER WELFARE FUNDS-AT A GLANCE 1. Iron Ore Re.1.00 per metric tonne on export/internal consumption w.e.f. 1.8.1990. 2. Manganese Ore Rs.4.00 per metric tonne on export/internal consumption w.e.f. 11.9.2001. 3. Chrome Ore Rs.6.00 per metric tonne on export/internal consumption w.e.f. 11.9.2001. 4. Mica 4.5% ad-valorem on export from 1 st November 1990. 5. Limestone & Dolomite Re.1/- per metric tonne on internal consumption w.e.f. 27.12.2000.

6. Cine Rs.20,000 per Hindi & English Feature and Rs.10,000/- per feature films in all other languages w.e.f. 27.12.2000. 7. Beedi Rs.5/- per 1,000 manufactured beedis w.e.f. 1.4.2006. Eligibility ceiling limit for the workers covered under Limestone & Dolomite Mines Labour Welfare Fund and Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Fund has been revised w.e.f. 26.02.2001 from Rs.6,500/- p.m. to 10,000/- p.m. for the purpose of providing welfare benefits to them. Similarly, family income ceilingfor beedi workers has been enhanced from Rs.3,500/- to Rs.10,000/- p.m. during April, 2003 for extending benefits under various welfare schemes except housing scheme. Income ceiling limit of cine workers has been raised from 1,600/- to upto Rs.8,000/- in case of remuneration by way of monthly wages and from Rs.8,000/- to Rs.1,00,000/- in case of remuneration by way of lump sum w.e.f. 2.5.2002. The details of the schemes under taken by the Welfare V section of the DG Labour Welfare is as follows:

SOCIAL SECURITY SCHEME:

Beedi and Cine Workers in the age group of 18-60 years and who are not subscribers of Employees Provident Fund scheme are covered under the Group Insurance Scheme. The benefits under the scheme are as under. Natural Death Rs.10,000/Accidental Death Rs.25,000/Partial Disability Rs.12,500/- Not applicable for Cine Workers Total Disability Rs.25,000/-The details of the Education, Recreation, Water Supply and other schemes under taken by the Welfare IV section of the DG Labour Welfare is as follows: 1. Providing financial assistance towards funeral expenses of beedi/cine/ mine workers. - Rs. 1500/- is given in cash as to the family members of the deceased beedi/cine/mine worker to meet the funeral expenses. 2. Scheme for financial assistance to a widow/widower of beedi/cine/ mine worker as well as to widow/widower worker (mine/beedi/cine) for meeting the wedding expenses of their daughters. - Rs. 5000/- in each occasion for marriage of 1 st two daughters.

EDUCATION SCHEME:
FINANCIAL ASSISTANCE FOR EDUCATION 1. Financial Assistance for providing Scholarship to the wards of Beedi Workers. Under the Education Scheme financial assistance is provided to the school going children of workers studying from Class 1 to professional courses ranging from Rs.250/- to Rs.8000/- per annum. BOYS GIRLS 1. Class 1 to IV 2. V to VIII Std. 3. IX Std 4. X 5. XI, XII/PUC I & II 7. Professional degree BE/MBBS/BSc. (Agri.) The worker has to submit the application through the School where the children of the worker is studying in the prescribed form along with seal and signatures of the school, copy of Marks Card with a copy of identity card within the prescribed time limit. 2. Financial assistance for purchase of vehicle for school going children Applicability Mine management (Lime Stone & Dolomite Mine & Iron/Manganese/Chrome ore mine Eligibility Minimum children (studying in school/college or other institutions) to be benefited should not be less than 50 for a normal bus and 30 for mini bus. Benefits Financial assistance limited to 75% of the actual or Rs.5 lakh for normal bus/3 lakh for a mini bus.WATER SUPPLY SCHEMES FOR MINE WORKERS. Applicability Mine managements Eligibility In area of concentration of mine workers houses. Benefits 75 % of the actual cost of the scheme providing water supply to the mine workes. GRANT IN AID FOR LIBRARIES FOR MINE WORKERS Applicability Mine managements 250/500/700/250/940/1,140/-

1,400/- 1,840/2,000/- 2,440/8,000/- 8,000/-

6. 3yrs diploma/Graduation/PG 3,000/- 3,000/-

Eligibility Managements should run libraries for the benefit of minimum 100 workers. Benefits Grant-in-aid of maximum of Rs.5000/- per annum.

RECREATIONAL SCHEMES
1. Supply of tv sets Applicability Mine and Beedi Workers Eligibility Mine managements and Beedi Workers Co-operative Societies Benefits Rs.10,000/for colour TV set and Rs.4000/- for B&W TV Set. 2. Grant in aid for purchase of dish antenna Applicabilty Mine Managements Eligibility Mine managements who provide housing facilities to their workers and where such houses form a colony of at least 100 houses. Benefits Payment limited to 50% of the actual cost of the dish antenna including all the accessories or Rs.30,000/- whichever is less. 3. Organising sports/games social & cultural activities Applicability Mine and Beedi workers Eligibility a) Each mine management with a group of mines under their control will be eligible for reimbursement of expenditure. b) Beedi managements or social and cultural organisation of repute. c) Prior approval of the competent authority is required to be obtained.Benefits A For mine managements 1) For purchase of sports gear : 75% of the actual expenditure subject to a limit of Rs.10000/- in a financial year. 2) For Sports/Games/Tournaments activity : 75% of the actual expenditure subject to limit of Rs.10000/- in a financial year . 3) For social activities : Expenditure limited to Rs.3,500/- or 50% of the actual expenditure, whichever is less 4) For cultural activities : Expenditure limited to Rs.3,500/- or 50% of the actual expenditure, whichever is less. B For Beedi Managements 1) 50% of the actual cost of the event subject to a maximum of Rs.2000/- per event.

Plan initiatives in the Labour & Labour Welfare Sector are as under:
(i) Training for skill development. (ii) Services to job seekers. (iii) Welfare of labour. (iv) Administration of labour regulations. Under the Constitution of India, Vocational Training is a concurrent subject. The development of training schemes at National level, evolution of policy, laying of training standards, procedures, conducting of examinations, certification, etc. are the responsibility of the Central Government, where as the implementation of the training schemes largely rests with the State/U.T. governments. The Central Government is advised by the National Council of Vocational Training (NCVT), a tripartite body which has representation from employers, workers and Central/State governments. At the State level, similar councils known as State Councils for Vocational Training are constituted for the same purpose by the respective state governments at state levels. The improvement of labour welfare and increasing productivity with reasonable level of social security is one of the prime objectives concerning social and economic policy of the Government. The resources have been directed through the Plan programmes towards skill formation and development, monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and then families. The situation of surplus labour and workers in the unorganised segment of the economy give rise to unhealthy social practices such as bonded labour, child labour and adverse working conditions. . In the year 1999, Workmen Compensation Act has been revised to benefit the workers and their families in the case of death/disability. The labour laws enforcement machinery in the States and at the Centre are working to amend the laws which require changes, revise rules, regulations orders and notifications.

IMPORTANCE OF LABOUR WELFARE IN INDIA

Compared to other countries, India has much greater need and importance of labour welfare work. Such a condition is caused by certain deficiencies in

Indian labour force that are not found in its counterpart in other countries. It is these defects of deficiencies that increase the importance of labour welfare activity in the country. Briefly, the following are the reasons why labour welfare work in India assumes greater importance than in other countries.

1) LACK OF STRONG LABOUR UNION MOVEMENT: In India, even today the workers are no united into a class. Keeping in view the numbers, labour Union movement is still in its infancy. Even in the labour union that does exist, there is a lack of enlightened leadership, and there is no unity between these unions themselves. In absence of properly organized labour Union the workers can neither, place their demands effectively before the employer, nor can they think clearly and systematically of their own interests. As this is force lacking in India, it is essential that the welfare of labourers in the country be efficiently looked after by the employers and the Government. 2) ILLITERACY: As compared with other countries, the percentage of educated workers is very low, most of them being illiterate. Consequently, they are not in a position to receive advanced industrial training, understand the problems in industries their own interests and those of nation as a whole. This can prove a source of harm not only to the workers but also to the country. Hence efficient, and become responsible citizens of the country. 3) PROBLEM OF ABSENTEEISM AND MIGRATION: Compared to the workers of other countries the Indian labourer is more restless and does tendentious towards frequent migration because life in the town does not provide for his needs, and the atmosphere in general does not suit him. Also due to inadequate level of wages the labourer cannot comfortably settle down in one place. This may in turn also give rise to Absenteeism. This workers migratory tendency can be curbed by providing him with adequate facilities and conditions, and this also shows a positive effect over the absenteeism in the factory.

1. LOW LEVEL OF HEALTH AND NUTRITION: The Indian worker as compared with his counterpart in most European countries is unhealthy and ill fed. This shows a definite affect over the production potential. Hence, he is very great need of inexpensive nutritive food and good facility in case of hospitalization. 2. EXTREME POVERTY:

The percentage of people under the poverty line in our country is comparatively high than other countries. So the standard of living is very low. An Indian worker is unable to provide a healthy living for his family and in the case off female workers she is not provide with assistance in case of need. Hence, the labour welfare has much to do in the country. It must assist them by providing them maternity benefits, in old age i.e., provident fund, pensions and gratuity etc. 3. LACK OF TRAINING: As the percentage of trained workers in India is very low, it is necessary to have training facilities for such a vast labour force.

4. LACK OF HEALTHY RECREATION: Healthy recreation is also at a premium in the country, the efficiency of labour force is diminished by energy being employed in all kinds of undesirable channels. Hence, it is essential that recreation and enjoyment of a healthy kind be provided.

5. INDUSTRIAL BACKWARDNESS OF INDIA: In India, industrial progress is being aimed through the medium of the five year plans, but industrial progress is dependent on the efficiency of the labour

force. The welfare work motivates the workers and maintains efficiency and productivity. So, we can say that the importance of these activities is great for India in comparison to western countries. "During the pre-independence period, industrial relations policy of the British Government was one of laissez faire and also of selective intervention. There were hardly any labour welfare schemes. After independence, labour legislations have formed the basis for industrial relations and social security. These legislations have also provided machinery for bipartite and tripartite consultations for settlement of disputes. Soon after independence, the government at a tripartite conference in December 1947 adopted the industrial truce resolution. Several legislations, including the following, were enacted to maintain industrial peace and harmony: Factories Act, 1948, Employees State Insurance Act, 1948 and Minimum Wages Act, 1948. The payment of bonus act was passed in 1965. In the early 1990s, the process of economic reforms was set in motion when the government introduced a series of measures to reduce control on industries, particularly large industries. The workers have opposed economic liberalisation policy for fear of unemployment while entrepreneurs have welcomed it in the hope of new opportunities to improve Indian industries. The new economic policy has directly affected industrial relations in the country, because the government has to play a dual role, one of protecting the interest of the workers, and second to allow a free interplay of the market forces. Economic reforms, by removing barriers to entry, have created competitive markets. Fiscal stabilisation has resulted in drastic reduction in budgetary support to the public sector commercial enterprises while exposing these enterprises to increased competition from private sector. Labour and Labour Welfare sub-sector consists of six main programmes viz. Labour Administration, Rehabilitation of bonded labour, Assistance to Labour Cooperatives, Craftsmen training programme, Apprenticeship training programme, Employment Services and Sanjay Gandhi Swavalamban Yojana. Manpower, employment policy and labour welfare in India: postindependence developments:

Many researches has been done in the following themes, such as

1. Manpower: trends and magnitude. 2. Employment policies and programmes.

3. Labour welfare: legal framework and initiatives. 4. Women workers: legislations and empowerment. 5. Industrial relations and labour laws. 6. Restructuring of labour laws: the great debate. 7. Labour laws and welfare: India and ILO. 8. Labour reforms: India and WTO. II. India's Five Year Plans at a glance. III. Edited extracts from India's Five Year Plans on employment and labour related matters (I plan to X plan including mid-term appraisal of the X Plan). Strengthening of Medical wing of the Directorate of Industrial Safety and Health There are different types of industries in Maharashtra like heavy and light engineering, heavy and light chemical industries, petrochemicals, pesticides, fertilizers, textile and Electronic Industries. All these pose their own potential hazards, which may cause acute and chronic side effects on the health of the workers. In Maharashtra, the chemical factories which include heavy chemical complexes or small chemical factories which may produce acute effects on the health of the workers to such an extent that it may result in death. Pesticides spilled on the body of the workers are equally dangerous.

Improvement of communications, mobility of Factory Inspectors

For the quick transmission of messages relating to factory accidents, gas leaks, fires and disasters in the area a broad network of office/ residential telephones is an essential-requisite for the Factory Inspector, the concerned Chief Inspector of Factories, the Chief Inspector and from C.I.F.to higher authorities. Quick transmission of such messages to the area Factory Inspector and others not only 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 the case of disaster. An outlay for Tenth Five Year Plan 2002-2007 is Rs.150.00 lakh. Out of that an outlay Rs.5.00 lakh is provided for Annual Plan 2002-2003.

THEORIES OF LABOUR WELFARE

The form of labour welfare activities is flexible, elastic and differs from time to time, region to region, industry to industry and country to country depending upon the value system, level of education, social customs, degree of industrialization and general standard of the socio-economic development of the nation. Seven theories constituting the conceptual frame work of labour welfare activities are the following:1. The Police Theory: This is based on the contention that a minimum standard of welfare is necessary for labourers. Here the assumption is that without policing, that is, without compulsion, employers do not provide even the minimum facilities for workers. Apparently, this theory assumes that man is selfish and self centred and always tries to achieve his own ends, even at the cost of the welfare of others. According to this theory, owners and managers of industrial undertakings get many opportunities for exploitation of labour. Hence, the state has to intervene to provide minimum standard of welfare to the working class.

4) The Religious Theory: This is based on the concept that man is essentially "a religious animal." Even today, many acts of man are related to religious sentiments and beliefs. These religious feelings sometimes prompt an employer to take up welfare activities in the expectation of future emancipation either in this life or after it.

5) The Philanthropic Theory: This theory is based on man's love for mankind. Philanthropy means "Loving mankind." Man is believed to have an instinctive urge by which he strives to remove the suffering of others and promote their well-being. In fact, the labour welfare movement began in the early years of the industrial revolution with the support of philanthropists.

6) The Trusteeship Theory: This is also called the Paternalistic Theory of Labour Welfare. According to this the industrialist or employer holds the total industrial estate, properties, and profits accruing from them in a trust. In other words, the employer should hold the industrial assets for himself, for the benefit of his workers, and also for society. The main emphasis of this theory is that employers should provide funds on an ongoing basis for the well-being of their employees.

7) The Placating Theory: This theory is based on the fact that the labour groups are becoming demanding and militant and are more conscious of their rights and privileges than ever before. Their demand for higher wages and better standards of living cannot be ignored. According to this theory, timely and periodical acts of labour welfare can appease the workers. They are some kind of pacifiers which come with a friendly gesture.

8) The Public Relation Theory: This theory provides the basis for an atmosphere of goodwill between labour and management, and also between management and the public, labour welfare programmes under this theory, work as a sort of an advertisement and help an organization to project its good image and build up and promote good and healthy public relations. 9) The Functional Theory: This is also called the Efficiency Theory. Here, welfare work is used as a means to secure, preserve and develop the efficiency and productivity of labour, It is obvious that if an employer takes good care of his workers, they will tend to become more efficient and will thereby step up production. This theory is a reflection of contemporary support for labour welfare. It can work well if both the parties have an identical aim in view; that is, higher production through better welfare. And this will encourage labour's participation in welfare programmes.

Scope of labour welfare works

In the world of changing values, where ideologies are rapidly undergoing transformation, the labour welfare work is increasing with changing opportunities and need to meet varying situations. It is also increasing with the growing knowledge and experience of techniques. An able welfare officer would, therefore include in the welfare programme the activities that would be conducive to the well-being of the worker and his family. The test of welfare is that it removes, directly or indirectly, any hindrance, physical or mental of the worker and restores to him the peace and joy of living the welfare work embraces the worker and his family. 1.) Condition of work Environment: a) The workshop sanitation and cleanliness must include the regulation of temperature, humidity, and lighting. b) Provision and care of drinking water. c) Canteen services. d) Management of workers cloak room. 2.) Workers health service: a) Workers health centre, playground, health, education. b) Workers recreation facility. c) Education provision. d) Cultural activities. 3.) Labour welfare programme: They should cover; factory council consisting of representative of labour and employers; workmens arbitration council, vocational and job adjustment. 4.) General welfare scheme: There should be housing and welfare scheme.