A CRITICAL APPRAISAL OF LABOUR WELFARE MEASURES. Estelar LARGE SCALE INDUSTRIES OF KUMAUN REGION. (with special reference to large scale industries)

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1 A CRITICAL APPRAISAL OF LABOUR WELFARE MEASURES IN LARGE SCALE INDUSTRIES OF KUMAUN REGION (with special reference to large scale industries) T H E S I S Submitted to: KUMAUN UNIVERSITY, NAINITAL For the Award of the Degree of DOCTOR OF PHILOSOPHY In COMMERCE 2013 Supervisor: Dr. P.C. Suyal M.Com, Ph.D Associate Professor in Commerce R.H.Govermment Post-Graduate College Kashipur (U.S.Nagar) Uttarakhand Researcher: Rohit Sharma

2 Supervisor s Certificate This is to certify that- (i) (ii) (iii) (iv) (v) The thesis titled A Critical Appraisal of Labour Welfare Measures in Large Scale Industries of Kumaun Region which is being submitted by Shri Rohit Sharma for the award of the degree of DOCTOR OF PHILOSOPHY in COMMERCE of KUMAUN UNIVERSITY, NAINITAL embodies his original work done under my supervision and guidance; The researcher has worked under my supervision for the period prescribed under Ordinance 6 of the KUMAUN UNIVERSITY ORDINANCES for the degrees of Ph.D. etc; The researcher has put in the required attendance of 200 days in the Department of Commerce of the College during that period; No part of the thesis has been submitted for any degree in any other University and the work is strictly on the lines of the synopsis as approved by the Research Degree Committee (RDC); and The researcher has cleared all the dues of the research centre and the University as well. It is further certified that the thesis is a unique piece of research work characterized by innovative approach towards the interpretation of facts. It also justifies the ability of the candidate of critical appraisal and sound & logical judgement. Dr [ P.C. SUYAL ]

3 P R E F A C E The topic under study A Critical Appraisal of Labour Welfare Measures in Large Scale Industries of Kumaun Region is of paramount importance as labour welfare measures influence the attitude of the workers towards work resulting in impact on their productivity. These labour welfare measures constitute an important factor in raising productivity in association with other factors of production including an efficient management. The industrial productivity may be enhanced in two ways-one direct and the other indirect. The direct way aims at increasing productivity through technological improvements, systematic planning of work and technical know-how. All these improvements fall in the sphere of management. The indirect way relates to the elimination of wastages in labour, material and time which are the outcome of defective planning of work, imperfect labour policy, low wage rates and inadequate non-wage benefits. The harmful effect of these factors reflects in strikes, low productivity etc. In this way, the increase in productivity to a large extent depends upon the role and attitude of labour in the production process. As profit maximization is the ultimate objective of business enterprises. In case of manufacturing concerns the objective of profit maximisation may not be achieved without the contribution of labour in the form of enhanced labour productivity. The desired objective of enhanced labour productivity cannot be achieved unless some other incentives apart from money wages are also offered. Housing facilities, clothing, holiday with wages. Subsidized canteens for breakfast and lunch, educational facilities to children, crenches sports, games and plays for recreation cleanliness, health and medical facilities, transportation facilities and all other facilities whose objective is mental, physical, moral, economic, social and cultural upliftment of workers are covered by welfare measures. These labour welfare measures may be classified as extra-mural and intra-mural as well as

4 statutory and non-statutory and may be undertaken by the employers, Government, trade unions or voluntary organizations. The happiness and the efficiency of workers are the mirror of the prosperity of an industry which is the end result of productivity. To neglect the workers is to neglect the productivity. In this way, labour welfare measures become all the more important because of the reasons like low level of wages, irregular working hours, inability of trade union to undertake welfare work, to build-up a stable labour force for creating a genuine welfare state, to create good moral habits. Under such conditions labour welfare can be the only relief to working class. In recent years, labour welfare measures have got huge importance because of the following reasons:- (i) The welfare activities influence the sentiments of the workers. When the workers feel that the employers as well as the Government are interested in their happiness, their tendency to grouse and grumble will steadily disappear. The development of such feeling paves the way for industrial peace. (ii) The provision of various measures makes the workers realize that they also have some stake in the undertaking in which they are engaged thus avoid any reckless action injurious to the interest of the undertaking. (iii) The welfare measures like subsidized food in canteens, free medical and educational facilities etc. indirectly increase real income of the workers resulting in avoidance of industrial disputes and strikes. (iv) Welfare activities will go a long way to better the mental and moral health to workers by reducing the incidence of vices of industrialization. (v) Welfare activities help in reducing labour turnover and absenteeism and create permanent settled labour force by making service attractive to the workers. (vi) Lastly, welfare measures improve the physique, intelligence, morality and standard of living of the workers which in turn will improve their efficiency and productivity. The Kumaun region of Uttarakhand has limited number of large scale industries. These industries are enjoying various fiscal incentives, concessions and rebates granted by both the Union government as well as the Government of Uttarakhand. The SIDCUL (State Industrial Development Corporation of

5 Uttarakhand Limited) is striving and attracting more and more large scale industries in the region so that industrialization of the region may be strengthened. Large scale industries act as an engine to industrial development of a region. Inspite of large number of fiscal incentives, concessions and rebates being granted to these industrial units, the state of labour welfare measures is very poor. Frequent strikes by the workers, agitations and dharnas show that the workers are not satisfied with management of these units. The workers often complain that the management is reluctant to welfare measures which has resulted in fall in labour productivity and hence profitability of these units. Labour productivity is much crucial for the development of an industrial enterprise. It may be enhanced through sound labour welfare measures alongwith other performance-improving techniques. The study of the present topic is not only burning and reluctant in the present day conditions in which labour-management relations are worsening day-to-day but is also crucial and beneficial to the large scale industries of the Kumaun region of Uttarakhand. The present study is based on both the primary and the secondary data as well. Secondary data chance been collected from various authentic sources but the study heavily depends upon primary data which have been collected through questionnaires, schedule, personal interviews, personal discussions, field survey and indirect oral discussions. The study is divided into eight chapters. The first chapter is introductory and explains -concept and need of labour welfare measures, labour productivity and its measurement, importance, objectives, hypotheses, scope, research design and methodology of the study. The second chapter puts relationship between labour welfare measures and labour productivity. The third chapter deals with analyses of labour welfare measures adopted by the Government. The fourth chapter evaluates labour welfare measures adopted by the employers. The fifth chapter reveals the labour welfare measures adopted by the trade unions and the voluntary organizations. The sixth chapter assesses workers responsiveness to labour welfare measures. The seventh chapter deals with deterrents of labour welfare measures. Lastly, eight chapter exhibits findings and suggestions. After evaluating

6 the labour welfare measures adopted by the large scale industries of Kumaun region, its impact on labour productivity has also been assessed. The leakages, obstacles and weak spots inherent in the effective enforcement of welfare measures have also been identified. The suggestions made to improve the effectiveness of welfare measures would surely help in enhancing labour productivity which in turn would increase profitability of the large scale industries of Kumaun region. It is hoped that the suggestions made to improve the effectiveness of labour welfare measures would not only be found useful by the students of Management, Commerce and Economics but also by the executives of the large scale industries of Kumaun region of Uttarakhand and the officials of all concerned Government organizations and institution who have extended me considerable cooperation in completing this study. The respondents deserve a sense of great respect who cooperated me much in conducting the survey work by sparing their valuable time for me. I must acknowledge my deep dept of gratitude to my learned Supervisor Dr P. C. Suyal for his keen interest, valuable suggestions and constant encouragement. I also gratefully acknowledge my obligation to all Faculty Members, Faculty of Commerce, R.H. Government P.G. college, Kashipur alongwith Principal and the Librarian for extending necessary help and guidance in completing this valuable research work. Further, I also express a sense of deep respect to the numerous authors, both Indian and foreign whose work work has been consulted with profit in the course of the present study. Station: Kashipur (U.S. Nagar) Dated: 21/03/2013 Rohit Sharma

7 CONTENTS Page No. Chapter I Introduction 1-29 Chapter II Relationship between Labour Welfare Measures and Labour Productivity Chapter III Labour Welfare Measures adopted by the Government: An Analysis Chapter IV Labour Welfare Measures adopted by the Employers: An Evaluation Chapter V An Analysis of Labour Welfare Measures Adopted by the Trade Unions and the Voluntary Organisation Chapter VI Workers Responsiveness to Labour Welfare Measures Chapter VII Deterrents of Labour Welfare Measures Chapter VIII Findings and Suggestions Appendices I For the Executives of the Large Scale Industries of Kumaun Region II For the Workers Employed in Large Scale Industries of Kumaun Region to find out their attitudinal Characteristics III For the workers for the Evaluation of Labour Welfare Measures SELECT BIBLIOGRAPHY