labour legislations and ir-m-1,2,3

8/3/2019 Labour Legislations and IR-M-1,2,3

1/29

Definition and Evolution of IndustrialRelations

What are Industrial Relations?

Industrial relations define relationships between employers and employees toward each other in terms ofsupervision, direction, planning and coordination of organizational activities, with minimal human effortand functions; all this done with an enthusiastic spirit taking into consideration the safety of all employees.

Industrial relations may also be defined as relations between employees and management.

Evolution of Industrial Relations:

The evolution of industrial relations in India began a long time ago. The caste system greatly influencedthe ancient industries and their development. Due to successive foreign invasions in India, the living

conditions of slave and artesian couldn't be differentiated. Furthermore, under the autocratic regime ofMuslim rulers, the conditions of employees worsened. Wages were not guaranteed, the living conditions ofworkers were harsh, and there was no proper management. The coming of the British didn't improve theworking conditions. After some time, however, most Indian industries were modeled after the British

system of business, and this led to growth in various sectors.

Industrial Relations under British Rule:

During British rule, India was expected to be a colonial market for British goods up until a cotton mill wasestablished in Mumbai in 1853 and a jute mill was established in Kolkatta in 1955. The working conditions

of workers, however, were still very harsh with low pay, and this gave rise to various disputes involvingthe management and employees. On the other hand, Tata Iron and Steel industry was also established inJamshedpur in 1911. While there was great demand of iron and steel before and during the First WorldWar, the working conditions of workers hadn't improved. Hence, the Factories Act of 1881 was

established, and it granted workers certain rights.

Industrial Relations in First World War:

The First World War was an opportunity in disguise for local factories in India. Prices of virtually allproducts went up and profits soared, however, wages of lower employees were still the same. There werevarious strikes and disputes between management and employees. During this time, the Workmen'sCompensation Act (1923), the Trade Union Act (1926), and the Trade Disputes Act (1917) were

established. While the wages of employees remained the same, they were given a certain share of profitsmade by their hiring industry. Strikes, however, were sometimes prohibited under the Emergency Rules.

The years following World War II involved the most workers' upheaval, and saw the establishment ofIndustrial Employment Act (1946) and Industrial Disputes Act (1947).

Post-Independence Industrial Relations:

The post-independence era saw a developing relation between industry and labor. A conference called the

Industrial Truce Resolution took place in 1947, and foresaw the establishment of the Minimum Wages Act,Factories Act, and Employees State Insurance Act in 1948. This ensured peace between labor and

industry. While industrial relations in India have evolved a long way, some features of the early systemstill exist today. Modern industrial relations are dynamic, and may integrate industrial policies of Americanand British businesses.

Concept, Scope and Objectives ofIndustrial Relations


2/29

What are Industrial Relations?

The concept of Industrial relations has been defined using various terminologies, but in the strictest sense,

it is essentially the relationship between management and labor. The full concept of industrial relations isthe organization and practice of multi-pronged relationships between labor and management, unions andlabor, unions and management in an industry. Dale Yoder defines it as a "whole field of relationships thatexists because of the necessary collaboration of men and women in the employment process of an

industry."

Role of Industrial Relations:

Industrial relations are associated with labor, management, labor unions, and the state. The scene ofindustrial relations has grown tremendously, and cannot be represented merely by relations betweenmanagement and labor. It has become a comprehensive and total concept embracing the sum total ofrelationship that exists at various levels of the organizational structure. Additionally, it connotes

relationships between workers themselves within the labor class, and relations among the managementwithin the managerial class. In an open sense, industrial relations denote all types of relations within a

group and outside a group - both formal and informal relations.

Objectives of Industrial Relations:

1. Protect management and labor interests by securing mutual relations between the two groups.

2. Avoid disputes between management and labor, and create a harmonizing relationship between thegroups so productivity can be increased.

3. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits.

4. Emphasize labor employer partnership to establish and maintain industrial democracy. This is done toensure the sharing of profit gains, and personal developmental of all all employees.

5. Provide better wages and living conditions to labor, so misunderstandings between management andlabor are reduced to a minimum.

6. To bring about government control over plants where losses are running high, or where products areproduced in the public interest.

7. To bridge a gap between various public factions and reshape the complex social relationships emergingout of technological advances by controlling and disciplining members, and adjusting their conflicts of

interests.

Conceptual Model of Industrial Relations


3/29

Role of State Intervention:

State intervention in business is necessary in a developing country because of the following reasons:

1. Developing countries lack powerful labor unions, enabling organizations to exploit workers and evenignore their demands. This is why governments have to step in and play a role in delineating certain

parameters of industrial relations.

2. When the conditions of laborers worsen, and/or disputations arise, the government cannot be a silentbystander. It has to intervene in the situation and try to satisfy both sides by being a preceptor or anintermediary, and establish peace.

3. The federal nature of the constitution has made it imperative for the state to intervene in matters oflabor to ensure a smooth and continuous operation. The state and the central governments have

established certain laws that have to be followed by businesses. These are: the Plantations Act of 1952,the Minimum Wages Act of 1948, the Industrial Disputes Act, the Payment of Bonus Act of 1965, theContract Labor Act of 1970, the Payment of Gratuity Act of 1972, the Bonded Labor System Act and theRemuneration Act of 1978.

4. The Directive Principals of the Constitution enjoin upon the state to establish a welfare state and to lookafter the interests of the weaker sections of the society, for example, the physically disabled.

Industrial Unrest: Industrial unrest is the term used to describe activities undertaken bythe workforce when they protest against pay or conditions of their employment.

Casues of Industrial Unrest:

The disputes between the management and the workers may arise on account of the following factors:

1. Economic Cause: These causes may be classified as:

Demand for increase in wages on account of increase in all-India Consumer Price Index for

Industrial Workers.

Demand for higher gratuity and other retirement benefits.


4/29

Demand for higher bonus.

Demand for certain allowances such as:

House rent allowance

Medical allowance

Night shift allowance

Conveyance allowance

Demand for paid holidays.

Reduction of working hours.

Better working conditions, etc.

2. Political Causes: Various political parties control Trade unions in India. In many cases, their leadership

vests in the hands of persons who are more interested in achieving their political interests rather than theinterests of the workers.

3. Personnel Causes: Sometimes, industrial disputes arise because of personnel problems like dismissal,

retrenchment, layoff, transfer, promotion, etc.

4.lndiscipline: Industrial disputes also take place because of indiscipline and violence on the part of the

workforce. The managements to curb indiscipline and violence resort to lock -outs

5.Misc. causes: Some of the other causes of industrial disputes can be:

Workers' resistance to rationalization introduction of new machinery and change of place

Non- recognition of trade unionRumours spread out by undesirable elements

Working conditions and working methodsLack of proper communication

Behaviour of supervisorsInter trade union Rivalry etc

Minimising Industrial Unrest/ Measures to improve industrial Relations:

Now enough of disputes!! Let us find out the ways of improving Industrial relations,

that is what steps should be taken to improve industrial relations.

The following measures should be taken to achieve good industrial relations:

(i)Progressive Management Outlook. There should be progressive outlook of the

management of

each industrial enterprise. It should be conscious of its obligations and

responsibilities to the ownersof the business, the employees, the consumers and


5/29

the nation. The management must recognize therights of workers to organize

unions to protect their economic and social interests. (Dont you agree?)

(ii)Strong and Stable Union. A strong and stable union in each industrial

enterprise is essential for

good industrial relations. The employers can easily ignore a weak union on the plea

that it hardlyrepresents the workers. The agreement with such a union will hardly

be honoured by a large sectionof workforce. Therefore, there must be a strong and

stable union in every enterprise to represent ehmajority of workers and negotiate

with the management about the terms and conditions of service.Please understand

that the workers should realize that they have to be united and

representthemselves strongly.

(iii) Atmosphere of Mutual Trust. Both management and labour should help in

the development of an

atmosphere of mutual cooperation, confidence, and respect. Management should

adopt a progressive

outlook and should recognize the rights of workers. Similarly, labour unions should

persuade theirmembers to work for the common objectives of the organization.

Both the management and theunions should have faith in collective bargaining and

other peaceful methods of settling disputes.

(iv) Mutual Accommodation. The employers must recognize the right of

collective bargaining of the

trade unions. In any organization, there must be a great emphasis on mutualaccommodation ratherthan conflict or uncompromising attitude.One must clearly

understand that conflicting attitude doesnot lead to amicable labour relations; it

may foster union militancy as the union reacts by engagingin pressure tactics. The

approach must be of mutual give and take rather than Take or

leave.Themanagement should be willing to co-operate rather than blackmail the

workers.

(v) Sincere Implementation of Agreements. The management should sincerely

implement the

settlements reached with the trade unions. The agreements between themanagement and the unionsshould be enforced both in letter and spirit. If the

agreements are not implemented then both theunion and management stop

trusting each other. An environment of uncertainty is created. To avoidthis, efforts

should be made at both ends to ensure the follow up of the agreements.

(vi) Workers Participation in Management. The participation of workers in the

management of the


6/29

industrial unit should be encouraged by making effective use of works committees,

joint consultationand other methods. This will improve communication between

managers and workers, increaseproductivity and lead to greater effectiveness. (This

will be discussed later in much detail.

(vii)Sound Personnel Policies. The following points should be noted regardingthe personnel policies.

The policies should be:

Formulated in consultation with the workers and their representatives if they are to

be implemented

effectively.

Clearly stated so that there is no confusion in the mind of anybody

Implementation of the policies should be uniform throughout the organization toensure fair treatment to each worker.

Last but not the least, is the role of the government.

(viii)Governments Role. The Government should play an active role for promoting

industrial peace. Itshould make law for the compulsory recognition of a

representative union in each industrial unit. Itshould intervene to settle disputes if

the management and the workers are unable to settle theirdisputes. This will

restore industrial harmony

What is Collective Bargaining?

Collective bargaining is a technique adopted employers and employees of an organisation to resolve their existing or

future differences with or without assistance of a third party. Its ultimate aim is to reach to a decision which is

acceptable to both the parties involved in labour-management relation.

Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between an organized

body of employees and an employer, or an association of employers usually acting through organized agents. The

essence of collective bargaining is a bargain between interested parties, and not a decree from outside parties.

- Hoxie

Collective Bargaining takes place when a number of work-people enter into a negotiation as bargaining unit with an

employer or group of employers with the object of reaching an agreement on the conditions of employment of the

work-people.

- Richardson.

Collective bargaining may be decided as a process of negotiation between the employers and the organized workers

represented by their union in order to determine the terms and conditions of employment.

In the process of Collective Bargaining employees and management collectively bargain for their common interests

and benefits and reach to an amicable solution jointly through negotiation. Collective bargaining is based on the

principal of balance of power


7/29

Importance of collective Bargaining:

Collective bargaining includes not only negotiations between the employersand unions but also includes the process of resolving labor-management

conflicts. Thus, collective bargaining is, essentially, a recognized way of

creating a system of industrial jurisprudence. It acts as a method of introducing

civil rights in the industry, that is, the management should be conducted by

rules rather than arbitrary decision making. It establishes rules which define

and restrict the traditional authority exercised by the management.

Importance to employees

Collective bargaining develops a sense of self respect and responsibility

among the employees.

It increases the strength of the workforce, thereby, increasing their

bargaining capacity as a group.

Collective bargaining increases the morale and productivity of employees.

It restricts managements freedom for arbitrary action against the

employees. Moreover, unilateral actions by the employer are also

discouraged.

Effective collective bargaining machinery strengthens the trade unions

movement.

The workers feel motivated as they can approach the management on

various matters and bargain for higher benefits.

It helps in securing a prompt and fair settlement of grievances. It provides

a flexible means for the adjustment of wages and employment conditions

to economic and technological changes in the industry, as a result of which

the chances for conflicts are reduced.

Importance to employers

1. It becomes easier for the management to resolve issues at the bargaining

level rather than taking up complaints of individual workers.

2. Collective bargaining tends to promote a sense of job security among

employees and thereby tends to reduce the cost of labor turnover to

management.


8/29

3. Collective bargaining opens up the channel of communication between the

workers and the management and increases worker participation in

decision making.

4. Collective bargaining plays a vital role in settling and preventing industrial

disputes.

Importance to society

1. Collective bargaining leads to industrial peace in the country

2. It results in establishment of a harmonious industrial climate which

supports which helps the pace of a nations efforts towards economic and

social development since the obstacles to such a development can be

reduced considerably.

3. The discrimination and exploitation of workers is constantly being checked.

4. It provides a method or the regulation of the conditions of employment of

those who are directly concerned about them.

Forms of Collective Bargaining:

Bargaining Form And Tactics

Industrial Relations Home Bargaining Forms and Tactics

A collective bargaining process generally consists of four types of activities- distributive

bargaining, integrative bargaining, attitudinal restructuring and intra-organizational

bargaining. Distributive bargaining: It involves haggling over the distribution of surplus. Under

it, the economic issues like wages, salaries and bonus are discussed. In distributive

bargaining, one partys gain is another partys loss. This is most commonly explained in terms

of a pie. Disputants can work together to make the pie bigger, so there is enough for both ofthem to have as much as they want, or they can focus on cutting the pie up, trying to get as

much as they can for themselves. In general, distributive bargaining tends to be more

competitive. This type of bargaining is also

known as conjunctive bargaining.

Integrative bargaining:

This involves negotiation of an issue on which both the parties may
http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/


9/29

gain, or at least neither party loses. For example, representatives of

employer and employee sides may bargain over the better training

programme or a better job evaluation method. Here, both the parties

are trying to make more of something. In general, it tends to be more

cooperative than distributive bargaining. This type of bargaining is also

known as cooperative bargaining.

Attitudinal restructuring:

This involves shaping and reshaping some attitudes like trust or

distrust, friendliness or hostility between labor and management. When

there is a backlog of bitterness between both the parties, attitudinal

restructuring is required to maintain smooth and harmonious industrial

relations. It develops a bargaining environment and creates trust and

cooperation among the parties.

Intra-organizational bargaining:

It generally aims at resolving internal conflicts. This is a type of

maneuvering to achieve consensus with the workers and management.

Even within the union, there may be differences between groups. For

example, skilled workers may feel that they are neglected or women

workers may feel that their interests are not looked after properly.

Within the management also, there may be differences. Trade unions

maneuver to achieve consensus among the conflicting groups.

Characteristics of Bargaining:

Characterstics Of Collective Bargaining

Industrial Relations Home Characterstics Of Collective BargainingIt is a group process, wherein one group,

representing the employers, and the other,

representing the employees, sit together to

negotiate terms of employment.

Negotiations form an important aspect of

the process of collective bargaining i.e., there

is considerable scope for discussion,

compromise or mutual give and take in

collective bargaining.

Collective bargaining is a formalized

process by which employers and independent

trade unions negotiate terms and conditions
http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/http://industrialrelations.naukrihub.com/


10/29

of employment and the ways in which certain

employment-related issues are to be

regulated at national, organizational and

workplace levels.

Collective bargaining is a process in the sense that it consists of a number of

steps. It begins with the presentation of the charter of demands and ends with

reaching an agreement, which would serve as the basic law governing labor

management relations over a period of time in an enterprise. Moreover, it is

flexible process and not fixed or static. Mutual trust and understanding serve as

the by products of harmonious relations between the two parties.

It a bipartite process. This means there are always two parties involved in the

process of collective bargaining. The negotiations generally take place between

the employees and the management. It is a form of participation.

Collective bargaining is a complementary process i.e. each party needs

something that the other party has; labor can increase productivity and

management can pay better for their efforts.

Collective bargaining tends to improve the relations between workers and the

union on the one hand and the employer on the other.

Collective Bargaining is continuous process. It enables industrial democracy to

be effective. It uses cooperation and consensus for settling disputes rather than

conflict and confrontation.

Collective bargaining takes into account day to day changes, policies,

potentialities, capacities and interests.

It is a political activity frequently undertaken by professional negotiators.

Process of Collective Bargaining:


11/29

Collective Bargaining Process

Industrial Relations Home Collective Bargaining ProcessCollective bargaining generally includes negotiations between the two parties

(employees representatives and employers representatives). Collective bargainingconsists of negotiations between an employer and a group of employees that

determine the conditions of employment. Often employees are represented in the

bargaining by a union or other labor organization. The result of collective bargaining

procedure is called the collective bargaining agreement (CBA). Collective agreements

may be in the form of procedural agreements or substantive agreements. Procedural

agreements deal with the relationship between workers and management and the

procedures to be adopted for resolving individual or group disputes.

This will normally include procedures in respect of individual grievances, disputes and

discipline. Frequently, procedural agreements are put into the company rule book which

provides information on the overall terms and conditions of employment and codes ofbehavior. A substantive agreement deals with specific issues, such as basic pay,

overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In

many companies, agreements have a fixed time scale and a collective bargaining

process will review the procedural agreement when negotiations take place on pay and

conditions of employment.

The collective bargaining process comprises of five core steps:

1. Prepare: This phase involves composition of a negotiation team. The negotiation

team should consist of representatives of both the parties with adequate

knowledge and skills for negotiation. In this phase both the employers

representatives and the union examine their own situation in order to develop

the issues that they believe will be most important. The first thing to be done is

to determine whether there is actually any reason to negotiate at all. A correct

understanding of the main issues to be covered and intimate knowledge of

operations, working conditions, production norms and other relevant conditions

is required.

2. Discuss: Here, the parties decide the ground rules that will guide the

negotiations. A process well begun is half done and this is no less true in case of

collective bargaining. An environment of mutual trust and understanding is also

created so that the collective bargaining agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible

options that exist to resolve them. In a word, this phase could be described as

brainstorming. The exchange of messages takes place and opinion of both the


12/29

parties is sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. Thisstage comprises the time when what ifs and supposals are set forth and the

drafting of agreements take place.

5. Settlement: Once the parties are through with the bargaining process, a

consensual agreement is reached upon wherein both the parties agree to a

common decision regarding the problem or the issue. This stage is described as

consisting of effective joint implementation of the agreement through shared

visions, strategic planning and negotiated change.

Levels of Collective Bargaining

Industrial Relations Home Levels Of Collective BargainingCollective bargaining operates at three levels:

1. National level

2. Sector or industry level

3. Company/enterprise level

Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation

between union confederations, central employer associations and government

agencies. It aims at providing a floor for lower-level bargaining on the terms of

employment, often taking into account macroeconomic goals.

Sectoral bargaining, which aims at the standardization of the terms of employment

in one industry, includes a range of

bargaining patterns. Bargaining may be either broadly or narrowly defined in terms of

the industrial activities covered and may be either split up according to territorial

subunits or conducted nationally.


13/29

The third bargaining level involves the company and/or establishment. As a

supplementary type of bargaining, it emphasizes the point that bargaining levels need

not be mutually exclusive.

Module -2

Concept of Labour Welfare:

Labour Welfare

The concept of Labour Welfare emphasizes on skill formation anddevelopment, strengthening and modernization of employment service,

promotion of industrial and mines safety, workers' education, promotion of self-

employment, rehabilitation of bonded labour, enforcement of labour laws

especially those relating to unorganised labour and women and child labour,

promotion of a healthy industrial relations situation and encouragement of

workers' participation in management. Improvement in the quality of labour,

productivity, skills and working conditions and provision of welfare and social


14/29

security measures, especially of those working in the unorganised sector are

crucial elements of the strategy for labour welfare.

There are Institutional mechanisms which ensure a minimum level of social

security benefits the workers in the organised sector of the economy. However,

workers in the unorganised sector who constitute 90 per cent of the totalworkforce do not have access to such benefits. Steps need to be taken on a

larger scale than before to improve the quality of working life of the unorganised

workers, including women workers. The unorganized workers does not have the

benefit of the social security cover provided to the workers in the organized

sector through a legal framework and institutional infrastructure created under

the Employees State Insurance Act, 1948 and the Employees Provident Fund and

Miscellaneous Provisions Act, 1952.

Due to the nature of employment it has not been possible to extend to them the

benefits of a contribution oriented or employers liability oriented social security

scheme enjoyed by their counterparts in the organized sector, except to a small

section of beedi workers and that too on a limited scale in respect of provident

fund and Employees State Insurance Corporation Schemes. The recently

introduced Unorganised Sector Workers Social Security Bill, 2007 holds great

expectation for the unorganised workers. The prime objectives concerning social

and economic policy of the Government is improvement of labour welfare and

increasing productivity with reasonable level of social security. . In 1999 the

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.

Various plan schemes of the Ministry of Labour aim at achievement of welfare

and social security of the working class. 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

The National Employment Service covers all the States and Union Territories

except Sikkim, and functions within the framework of the Employment Exchanges

(compulsory notification of vacancies) Act 1959. It has a network of 953

Employment Exchanges as on 30.6.99.


15/29

The Employees Pension Scheme, 1995 was amended in February, 1999 to

provide for pension to dependent father/mother in respect of a deceased

member, who has no eligible family members and if no nomination was executed

by him during his life time.

For workers of poor families not covered under any insurance scheme or any lawthe Central Government has introduced a scheme of Personal Accident Insurance

Social Security Scheme. The Scheme is applicable to all persons in the age group

of 18-55 who are earning members of poor families and meet with fatal

accidents. The quantum of benefit is Rs.3,000. The Scheme is implemented

through the General Insurance Corporation.

A new initiative has been taken by the Ministry of Agriculture and Cooperation by

providing insurance cover to unorganised labour working in construction industry,

agriculture fields and forests where the insurance cover will be provided through

the Co-operatives on basis through the national insurance cover and Labour Co-

operatives. A premium of Rs.5.25 per annum will be paid by the Co-operatives.

The insurance cover has the provision that in the case of death of a labourer, his

family will be paid Rs.25,000

DEFINITION OF LABOUR WELFARE

Labour welfare has been defined in various ways, though no single definition has

found universal acceptance. The Oxford dictionary defines labour welfare as "Efforts

to make life worth living for workmen." Chambers dictionary defines welfare as "A

state of faring or doing well. Freedom from calamity, enjoyment of health and

prosperity.

The Encyclopedia of Social Science defines it as "the voluntary efforts of the

employers to establish, within the existing industrial system, working and

sometimes living and cultural conditions of employees beyond what is required by

law, the customs of the industry and the condition of market"[3].

In the Report II of the ILO Asian Regional conference, it has been stated that

worker's welfare may be understood to mean "such services, facilities and

amenities, which may be established outside or in the vicinity of undertakings, to

enable the persons employed therein to perform their work in healthy and congenialsurroundings and to provide them with the amenities conducive to good health and

high morale.

The Labour Investigation committee (1944-46) includes under labour welfare

activities "anything done for the intellectual, physical, moral and economic

betterment of the workers, whether by employers, by government or by other


16/29

agencies, over and above what is laid down by law or what is normally expected as

per of the contractual benefits for which the workers may have bargained." [5]

The Report of the Committee on Labour welfare (1969) includes under it "such

services, facilities and amenities as adequate canteens, rest and recreation

facilities, sanitary and medical facilities, arrangements for travel to and from workand for the accommodation of workers employed at a distance from their homes

and such other services, amenities and facilities including social security measures

as contribute to improve the conditions under which worker are employer." [6]

Thus, the whole field of welfare is said to be one "in which much can be done to

combat the sense of frustration of the industrial workers, to relieve them of

personal and family worries, to improve their health, to afford them means of self

expression, to offer them some sphere in which they can excel others and to help

them to a wider conception of life". [7] It promotes the well-being of workers in

variety of ways.

SCOPE OF LABOUR WELFARE ACTIVITIES

Labour welfare Activities is combinations of various steps, the cumulative effect of

which is to grease the wheels of industry and society. Sound industrial relations can

only be based on human relations and good human relations dictate that labour

being, human being should be treated humanly which includes respect for labour

dignity, fair dealing and concern for the human beings physical and social needs. In

any industry good relations between the management and workers depend upon

the degree of mutual confidence, which can be established. This, in turn, depends

upon the recognition by the labour of the goodwill and integrity of the organizationin the day to day handling of questions which are of mutual concern.

The basic needs of a labour are freedom from fear, security of employment and

freedom from want. Adequate food, better health, clothing and housing are human

requirements. The human heart harbors secret pride and invariably responds to

courtesy and kindness just as it revolts to tyranny and fear. An environment where

he is contended with his job, assured of a bright future and provided with his basic

needs in life means an atmosphere of good working condition and satisfaction to

labour.

Labour welfare activities are based on the plea that higher productivity requires

more than modern machinery and hard work. It requires co-operative endeavor of

both the parties, labour and management. This is possible only when labour is given

due importance and human element is taken into account at every stage.

The worker has a fund of knowledge and experience at his job. If rightly directed

and fully used, it would make a great contribution to the prosperity of the


17/29

organization. This can only be achieved through satisfaction of the labour as the

worker feels that he is an active participant in the production process, and he does

at most for increasing the production and its productivity.

OBJECTIVES OF LABOUR WELFARE ACTIVITIESThe object of welfare activities is to promote economic development by increasing

production and productivity. The underlying principle is to make the workers given

their loyal services ungrudgingly in genuine spirit of co-operation, in return for

obligations, voluntary and compulsory, accepted by the employee towards the

general well-being of the employees.

Improving the efficiency of the labour is another objective of labour welfare

activities. Efficiency gives double reward, one in the form of increased production

and the other in the shape of higher wages due to achievement of higher

productivity. Welfare activities add to their efficiency and efficiency in turn help the

worker to earn more wages. Therefore, welfare activities in an organization are

twice blessed. It helps the employer and the employee both.

Another objective of welfare activities is to secure the labour proper human

conditions of work and living. Working conditions of organization may be led by an

artificial environment which features are dust, fumes, noise, unhealthy

temperature, etc. It is generally found that these conditions impose strain on the

body.

The welfare activities are done to minimize the hazardous effect on the life of the

workers and their family members. It is the duty of the employer to see thesehuman needs. If welfare activities are viewed in this light, it can be seen that they

are guided by purposes of humanitarian and social justice.

The next objective of welfare activities is to add in a real way to the low earning of

the labour. The facilities are provided to supplement the income of the workers by

services such as housing, medical assistance, school, co-operative, canteens,

stores, play grounds etc.

Thus, the objective of activities are to promote greater efficiency of the workers,

assure proper human conditions to the workers and their family members,

supplement their wages in monetary teams, give more real wages and foster better

industrial relations.

PHILOSOPHY OF LABOUR WELFARE ACTIVITIES

The philosophy of labour welfare activities is based on the theory that success of

industrial development depends upon harmonious relations and co-operation

between labour and management (employer ). The labour has a fund of knowledge


18/29

and experience at his jobs. If rightly directed and fully used, it would make a good

contribution to the prosperity of the organization this can be achieved only through

the satisfaction of the labour.

Efficiency in the matter of running an organization and maintenance of productivity

at rising rate and higher level, call for good labour relations throughout the processof production. It enables all those engaged in the organization to make their

maximum personal contribution to its effective working.

M. V. Pylee and Simon George has pointed out that "Even one discontented

employee or an employee nursing a grievance can eventually infect an

entire organization with the germ of discontent which, in turn, will result

in lower efficiency, poor morale and reduction in overall production".

The labour welfare activities in the form of health services centers are provided with

the philosophy that a good medical service center will help in ensuring sturdy

improvement of job satisfaction and productivity. A healthy worker is a basic

requirement of an organization.

It is, therefore, incumbent on the part of the employer to look after the health of the

workers and to provide such facilities which would ensure minimum health hazards.

The concerning law prescribes the minimum standard but progressive employer

must extend his activities to protect the health of the labourers and their

dependents. In return, their co-operation will be wholehearted, efficiency will be

maximum and attitude will be proper and congenial.

THEORIES OF LABOUR WELFAREThe form of labor 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 centered and always tries to achieve his own ends, even at

the cost of the welfare of others.


19/29

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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.


20/29

7. 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 anidentical aim in view; that is, higher production through better welfare. And

this will encourage labour's partcipation in welfare programmes.

8.

PRINCIPLES FOR SUCCESSFUL IMPLEMENTATION OF WELFARE

ACTIVITIES

The success of welfare activities depends on the approach which has been taken

into account in providing such activities to the employees. Welfare policy should beguided by idealistic morale and human value. Every effort should be made to give

workers/ employees some voice in the choice of welfare activities so long as it does

not amount to dictation from workers.

There are employers who consider all labour welfare activities as distasteful legal

liability. There are workers who look upon welfare activities in terms of their

inherent right. Both parties have to accept welfare as activities of mutual concern.

Constructive and lasting Progress in the matter of social justice can be achieved

only if welfare activities are accepted as essential factors in the progress of the

business organization

Labour welfare is dependent on certain basic principles. The following are the

principles on which successful implementation of welfare programmes depends:

Adequacy of Wages: Labour welfare measures cannot be a substitute for wages.

Workers have a right to adequate wages. But high wage rates alone cannot create

healthy atmosphere, nor bring about a sense of commitment on the part of workers.

A combination of social welfare, emotional welfare and economic welfare together

would achieve good results.

1. Social Liability of Industry: Industry, according to this principle, has anobligation or duty towards its employees to look after their welfare. The

constitution of India also emphasizes this aspect of labour welfare.

2. Impact on Efficiency: This plays an important role in welfare services, and

is based on the relationship between welfare and efficiency, though it is

difficult to measure this relationship. Programmes for housing, education and

training, the provision of balanced diet and family planning measures are


21/29

some of the important programmes of labour welfare which increases the

efficiency of the workers, especially in underdeveloped or developing

countries.

3. Increase in Personality: The development of the human personality is

given here as the goal of industrial welfare which, according to this principle,should counteract the baneful effects of the industrial system. Therefore, it is

necessary to implement labour welfare services. Both inside and outside the

factory, that is, provide intra-mural and extra-mural labour welfare services.

4. Totality of Welfare: This emphasizes that the concept of labour welfare

must spread throughout the hierarchy of an organization. Employees at all

levels must accept this total concept of labour welfare programme will never

really get off the ground.

5. Co-ordination or Integration: This plays an important role in the success

of welfare services. From this angle, a co-ordinated approach will promote a

healthy development of the worker in his work, home and community. This is

essential for the sake of harmony and continuity in labour welfare services.

6. Democratic Values: The co-operation of the worker is the basis of this

principle. Consultation with, and the agreement of workers in, the formulation

and implementation of labour welfare services are very necessary for their

success. This principle is based on the assumption that the worker is "a

mature and rational individual." Industrial democracy is the driving force

here. Workers also develop a sense of pride when they are made to feel that

labour welfare programmes are created by them and for them.

7. Responsibility: This recognizes the fact that both employers and workers

are responsible for labour welfare. Trade unions, too, are involved in these

programmes in healthy manner, for basically labour welfare belongs to the

domain of trade union activity. Further, when responsibility is shared by

different groups, labour welfare work becomes simpler and easier.

8. Accountability: This may also be called the Principle of Evaluation. Here,

one responsible person gives an assessment or evaluation of existing welfare

services on a periodical basis to a higher authority. This is very necessary, for

then one can judge and analyze the success of labour welfare programmes.

9. Timely: The timeliness of any service helps in its success. To identify the

labour problem and to discover what kind of help is necessary to solve it and

when to provide this help are all very necessary in planning labour welfare

programmes. Timely action in the proper direction is essential in any kind of

social work.


22/29


23/29

The high rate of labour absenteeism in Indian industries is indicative of the lack of

commitment on the part of the workers. This can be reduced to a great extent by

provision of good housing, health and family care canteens, educational and

training facilities, provision of welfare activities enables the workers to live a richer

and more satisfactory life and contributes to the productivity of labour, efficiency ofthe enterprise and helps in maintaining industrial peace. Hence steps need to be

taken on a larger scale to improve the quality of life of the workers.

Duties of Labour Welfare Officer:

Duties of Welfare Officers.- The duties of a Welfare Officer shall be -

(a)to establish contacts and hold consultations with a view to maintaining

harmonious relations between the factory management and workers;

(b)to bring to the notice of the factory management the grievances of workers,

individual as well as collective, with a view to securing their expeditious redress and

to act as a liason officer between the management and labour ;

to study and understand the point of view of labour in order to help the factory

management to shape and formulate labour policies and to interpret these policies

and to interpret these policies to the workers in a language they can understand;

(d)to watch industrial relations with a view to using his influence in the event of a

dispute between the factory management and workers and to help to bring about a

settlement by persuasive effort;

(e)to advise on fulfilment by time management and the concerned departments of

the factory of obligations, statutary or otherwise, concerning regulation of working

hours, maternity benfit, medical care, compensation for injuries and sickness and

other welfare and social benfit measures;

(f)to advise and assist the mangement in the fulfilment of its obligations,statutory

or otherwise, concerning prevention of personal injuries and maintaining a safe

work environment, in such factories where a Safety Officer is not required to be

appointed under the enabling provisions under section 40 B;

(g)to promote relations between the concerned departments of the factory and

workers which will bring about productive efficiency as well as ameliioration in the

working conditions and to help workers to adjust and adapt themselves to their

working environments;

(h)to encourage the formation of Works and Joint Production Committees, Co-

operative Societies and Welfare Committees, and to supervise their work;


24/29

(i)to encourage provision of amenities such as centeens, shelters for rest, creches,

adequate latrine facilities, drinking water, sickness and benevolent scheme

payments, pension and superannuation funds, gratuity payments, granting of loans

and legal advice to workers;

(j)to help the factory management in regulating the grant of leave with wages andexplain to the workers the provisions relating to leave with wages and other leave

privileges and to guide the workers in the matter of submission of application for

grant of leave for regulating authorised absence;

(k)to advise on provision of welfare facilities, such as housing facilities, foodstuffs,

social and recreational facilities, sanitation, advice on individual personnel problems

and education of children;

(l)to advise the factory management on questions relating to training of new

starters, apprentices, workers on transfer and promotion, instructors and

supervisors, supervision and control of noticeboard and information bulletins to

further education of workers and to encourage their attendance at technical

institutes; and

(m)to suggest measures which will serve to raise the standard of living of workers

and in general promote their well-being.

(6)Welfare officers not to deal with disciplinary cases or appear on behalf of the

management against workers.- No Welfare Officer

Should deal with any disciplinary cases against workers or appear before a

conciliation officer in a court or tribunal on behalf of the factory management

against a worker or workers.

(7)Powers of exemption. - The State Government may, by notification in the official

gazette, exempt any factory or class or description of factories from the operation

of all or any of the provisions of these rules subject to compliance with such

alternative arrangements as may be approved.

Welfare Provisions under Factories Act-1948:

Present Factory Act has provided several measures under the sectino V for the

welfare of the workers under section 42 to 48.

Important aspects of this section are as follows :

* washing facilities

* sitting facilities

* Firs Aid Appliances


25/29

* Canteen

* Stores, Lunch rooms and rest rooms

* Creche

* Welfare Officers

Washing Facilities

(Section 42 )

According to this section there must be adequate washing facilities separately

provided especially for the male and female.

These washing places should be easily accessible.

Section 43 says that the occupier has to provide a separate room for the workers

can keep their clothes without any fear of theft.

Sitting Facilities

(Section 44)

This section emphasizes that there should be places for employees to sit and take

rest where the work involves standing posture.

In order to relax and increase the productivity facilities for sitting is must in the

factories.

Firs Aid Supplies

(Section 45)

Firs aid at work is very vital where the factory handles the manufacturing of

products.

A factory employing not less than 150 employees should provide the first aid

supplies as a kind of medical aid.

First aid kit should contain the medical services and cotton as well to aid the

injuries.

If there are more than 500 employees in the factory, ambulance service is must forthe provision. The factory in charge must provide the ambulance equipment and

other required ambulance room so that relevant services will be provided in case of

serious injuries.

Canteen


26/29

(Section 46)

Canteen facility is compulsory for the employees when their head count is more

than 250 in the factory.

A management committee should be formed with the representatives from the

employer and employee and they should manage the canteen.

Stores, Lunch rooms and Rest rooms

(Section 47)

Adequate stores, rest rooms and lunch rooms along with the good drinking water

supplies must be provided to the workers of the factory.

Creche

(Section 48)

It is mandatory of the factory to take of the employees' children under the age of

six.

Creche collective should be well equipped and ventilated.

Children should be taken care in a hygienic environment by the well trained creche

associative and staffs.

Welfare Officers

(Section 49)

Factory should appoint the number of welfare officers when there are more than

150 employees working in the company.

Workers compensation insurance is being assured by these occupiers under

Employee insurance and other welfare.

Importance aspect of this section is the workers comp insurance.

Unit -III

Evolution of Social Security

The concept of social security is as old as the history of man. Stories of Bible tell us how, during the

years of famine, Joseph tried to tide over the situation by making use of surplus stocks of grain which

he had stocked during the earlier years of plenty. The oldest institution of social security is family that

includes the extended family. Industrial revolution in the Europe has seen the growth of urban and


27/29

industrial centers that affected the rural joint families thereby disturbing the institution of social

security in the joint family system.

When individual was unable to take care of his own needs, the society realized the importance ofprotecting the individual and his family. In great Britain the poor laws were enacted to provideminimal food and shelter in a workhouse to the poor. Private savings, compensation by employers

medieval guilds, mutual aid or mutual benefit societies, private insurance and life insurance are someof the evolutionary forms of social security efforts.

Need for Social Security

Modernization and urbanization have resulted in radical socio-economic changes and give rise to new

conflicts and tensions consequent upon the erosion of age old family and fraternal security. The

transition from agricultural economy to an industrial economy brought in special accompanied

problems that called for social security.

Purpose and Contingencies of Social Security

The purpose of any social security measure is to give individuals and families the confidence that their

level of living and quality of life will not erode by social or economic eventuality; provide medical care

and income security against the consequences of defined contingencies; facilitate the victims physicaland vocational rehabilitation; prevent or reduce ill health and accidents in the occupations; protect

against unemployment by maintenance and promotion of job creation and provide benefit for the

maintenance of any children.

The contingencies of social security as delineated by ILO are medical care, sickness benefit,

unemployment benefit, old age benefit, employment injury benefit, family benefit, maternity benefit,invalidity benefit and survivors benefit.

Top

Social Security Strategy in India

The social security strategies include the following:

Social insurance with the participation of the beneficiary pooling risks and resources

Social assistance financed from general revenues and granting benefits on the basis of meanstest

Employers liability schemes where there is an identifiable employer and within the economic

capacity of the employer

National Provident Funds

Universal schemes for social security.

Social Security in India

Article 43 of the Constitution speaks of state's responsibility to provide social security to the citizens of

this country. In India, we find all the above strategies in practice. For the purpose of discussion, wemay categorize the social security schemes available in India as Preventive Schemes, Promotional

Schemes, and Protective Schemes.

Top

Preventive Schemes
http://www.disabilityindia.org/socialsecurity.cfm#sshttp://www.disabilityindia.org/socialsecurity.cfm#sshttp://www.disabilityindia.org/socialsecurity.cfm#sshttp://www.disabilityindia.org/socialsecurity.cfm#ss


28/29

Preventive Schemes are the Schemes aimed at risk prevention. In the strategy of social management

of risks, preventive approach tries to prevent poverty and helps people under below poverty line to

come above poverty line. Preventive health care, vaccinations against diseases forms part of he

preventive strategies. Majority of the schemes are of social assistance in nature.

Promotional Schemes

Promotional social security schemes are mainly of Means tested Social Assistance type, where to

guarantee minimum standards of living to vulnerable groups of population, the Governments at the

State and Center draft schemes financed from the general revenues of the Government. These are the

strategies of risk mitigation. These guarantee:

Food and Nutritional Security by ensuring per capita availability of food grains, access to food,developing agriculture sector, targeted Public Distribution system etc.

Employment security by ensuring employment by generating employment, redeploying thesurplus manpower in any sector, creating rural employment opportunities, encouragingtechnological up gradation.

Health Security by ensuring availability of medical facilities, maintaining standards of

sanitation and drinking water, eradication and control of communicable diseases, timelyvaccination of children and child bearing women, health insurance, old age homes and socialinsurance for the elderly.

Education Security by ensuring opening of schools, Encouraging children to attend classes,making education compulsory upto certain age, opening adult learning centers or formulatingschemes like Sakshara, running schemes like mid day meals etc.

Women Security: by empowering women, encouraging women literacy, banning dowry,designing widow pension schemes.

Assistance to the disabled by undertaking programmes to promote health and educationamong the disabled persons, providing rehabilitation services and reservations in services soas to enable them to participate in social and economic activity.

All the above form part of promotional social security schemes where State Governments are more

involved than the Central Government. Examples of schemes in the promotional social security area

include:

Food for work

Jawahar Rojgar Yojana

Antyodaya

Rural Landless Labourers Employment Guarantee Schemes

programmes of Integrated Rural Development Project

Drought prone area Programmes

Sakshara

Integrated Child Development Scheme (ICDS)

Public Distribution System

reservations for the disabled in services

special educational institutions for the disabled persons etc.

Top

Protective Social Security Programmes

The protective social security programmes help the poor in removing/reducing contingent poverty. In

India, the protective social security programmes have been designed to address the contingent
http://www.disabilityindia.org/socialsecurity.cfm#sshttp://www.disabilityindia.org/socialsecurity.cfm#ss


29/29

poverty or the contingencies d defined by the ILO. These programmes take care of old-age income

needs (Old age pension), survival benefits (Provident Funds), medical need of insured families

(Medical Insurance), widow and children/dependant economic needs (Widow/Children/orphan, and

dependent pension), maternity benefits, compensation for loss of employment and work injury

benefits.

The benefits are extended only to working population majority of whom are in the organized sectorthrough legislations like:

Employees State Insurance Act 1948

Workmen's Compensation Act 1923

Employees Provident Fund and Miscellaneous Provisions Act 1952

Payment of Gratuity Act 1972

Maternity Benefits Act 1976

labour legislations and ir-m-1,2,3

Documents