LABOUR WELFARE ITS PURPOSE, SCOPE AND IMPORTANCE OF THE STUDY

Transcription

1 ... 1 CHAPTER 1 LABOUR WELFARE ITS PURPOSE, SCOPE AND IMPORTANCE OF THE STUDY INTRODUCTION 1.1 PURPOSE OF THE STUDY 1.2 OBJECTIVES OF THE STUDY 1.3 HYPOTHESIS 1.4 IMPORTANCE AND SIGNIFICANCE OF LABOUR WELFARE 1.5 AGENCIES OF LABOUR WELFARE 1.6 TYPES OF LABOUR WELFARE 1.7 IMPORTANCE OF THE STUDY

2 INTRODUCTION Labour welfare is one of the major aspects of national programmes towards betterment of the majority of labour creating population. The term 'labour welfare' is very flexible as well as comprehensive. Labour welfare is a part of social welfare, conceptually and operationally. It covers a broad field and connotes a state of well-being happiness, satisfaction, conservation and development of human resources. The Government has inacted various rules and regulations for the betterment of the worker's life. The ideal of the welfare state has added new dimensions to the labour welfare philosophy. The changing scenario has thrown for labour new challenges to cope up in regard to technical skills and know-how etc. This welfare approach has become necessary because of the social problems that have emerged as a result of industrialisation in a capitalistic setting. As against there social problem, many social welfare amenities have been provided for the benefit of the employees in various industrial units. There is an increasing awareness of recognition in developed as well as developing countries of the need for such welfare measures in industrial employment. The significance of labour welfare has been increasingly recognised in the context of economic development and industrialisation. 1.1 PURPOSE OF THE STUDY Development oi any country mostly depends upon the growth of industries and business. The growth of industries largely related to the welfare of the worker. Labour Welfare may include anything done for the intellectual, physical, moral and economic betterment of the workers, whether by employers, by Government or by other agencies such as. Trade Unions, Trusts etc.

3 ... 3 Welfare work enable the workers to enjoy a richer and fuller life by providing them basic facilities and amenities of life which they themselves can not provide. Labour welfare improves the morality and efficiency of worker and ultimately the productivity of industrial worker and organization. It also helps to reduce the chances of industrial dispute like strikes and lockouts. It develops a sense of responsibility and dignity among the workers and motivate the workers to higher production. It also help to make workmen worthy citizens and important part of the national development. Though the Government has enacted number of Labour Laws, still the life of worker is miserable and they have to work in risky and dangerous conditions. In this study and attempt has been made : 1. To make an analytical interpretation of the labour welfare schemes provided by the various agencies and the state of labour welfare in selected public limited companies in and around Pune. 2. To find out some remedies and suggestion regarding the labour welfare in the public limited companies in Pune. 1.2 OBJECTIVES OF THE STUDY Though the purpose of the study is analysis and interpretation of labour welfare scheme introduced by some selected public limited companies. The detailed objectives of the study is as under: 1. To make analytical study and the interpretation of the labour welfare schemes introduced by the various agencies in public limited companies. 2. To find out the facts regarding the labour welfare in the selected public limited companies situated in and around Pune region.

4 To study the role of labour welfare officers appointed by the Companies, their duties and responsibilities for the implementation of labour laws and labour welfare. 4. To study the Acts and Regulations regarding the labour welfare schemes. 5. To find out whether there is any relation in labour welfare and efficiency and productivity of the labour as well as organizations. 6. To find out relation between the labour welfare schemes and labour absenteeism in public limited companies. 7. To study the actual labour welfare activities in the selected public limited companies. 8. To make analysis of the labour welfare scheme provided by the Trade Union of the workers. 9. To find out the need of labour welfare with the changed context of economic reform, such as globalization, privatization and liberalization. 10. To find out whether the Labour Laws are successful in providing welfare and adequate standard of living to the workers. 11. To find out statutory and non-statutory welfare provided and implemented by the various agencies related to the workers. 12. To make suggestions and recommendations regarding the labour welfare schemes in public limited companies.

5 ...5 By all these objectives an attempt has been made to find out actual position of labour welfare and the suggestions thereto after accepting new economic reforms, improvement of labour welfare and better standard living of the worker and also an attempt has been made to find out other problems of workers whether organised or unorganized. 1.3 HYPOTHESIS Labour welfare is one of the major aspects of national programmes towards betterment of the majority of labour creating a life and work environment of direct comfort for the class of population. The term welfare is very flexible as well as comprehensive. The Government has framed various rules and regulations and Acts for the betterment of the workers life. The ideal of a welfare state has added new dimensions to the labour welfare philosophy. In the Public Limited Company, Labour Welfare officer has to examine whether labour welfare schemes are properly implemented or not. As India has taken to the path of rapid industrialisation and economic growth under liberalisation, privatisation and globalisation. There is vast scope, variety and dynamics in welfare activities and it cannotes a state of well-being, happiness, satisfaction, conservation and development of human resources. CHARACTERISTICS OF LABOUR Labour is an important factor of production. It is different from other factors of production. All factors i.e. land, capital, material and machines are non-living things whereas, labour is a living human being. This makes all the differences. No production is possible without labour, at least one person would require to handle the switch and to start the machine for work in the age of cent percent mechanisation of automisation.

6 ... 6 The important characteristics of labour can be stated as : 1. Labour cannot be stored If a worker does not work for a particular day he loses that very day which would never come back to him in future. So it is always said labour is perishable. 2. Labour cannot be separated The labour has to go himself to deliver the goods. He has to go to the place of work in which he is employed. Hence, labour is inseparable. 3. Labour is his own property The investment in labour, i.e. training and efficiency are of great importance, because he himself retains his own property. 4. Labour has a very weak bargaining power Labour has to work on the terms and conditions as laid down by their employers. Since the state of the labour is generally poor and has no reserve fund, they cannot easily withhold it from the labour market. 5. Labour is not so mobile as capital Labour cannot be mobile easily from one place to another place like capital. The differences in environments, languages, habits, customs and traditions, religions etc. at different places put a great hindrance of the mobility of labour from one place to another.

7 The supply of labour is rigid The supply of labour cannot be curtailed immediately even if wages fall and it also takes time for children to grow up or for people to get trained in order to increase the supply of labour. 7. Labour is a human factor Labour is not an article or commodity to be purchased and sold like other commodities, so handling of labour issues requires human touch. 8. Labour is the ultimate goal or end of production Labour is not only a factor of production. What is being produced by the co-operation of all the factors of production is ultimately meant for the consumption of the people including the labour. All the aforesaid peculiarities of labour give rise to many problems. Every nation should seek to solve the labour problems providing better facilities to the worker. 1.4 IMPORTANCE OR SIGNIFICANCE OF LABOUR WELFARE Labour Welfare is very important in every nation as it helps to bring about all round development in workers. Welfare measures are important on the following grounds : (i) It improve the Health of worker : Adequate provisions of welfare facilities are greatly helpful to create healthy worker provisions of canteen, balanced food must improve the physical standard of the worker.

8 ...8 (ii) Modernization and Automation : Modernization, automation is the important part for growth of organization satisfied and healthy worker always helps to implement the scheme of modernization and automation. But if workers are unsatisfied they always oppose the schemes of modernization. Labour welfare plays very important role in the implementation of new schemes and to develop the organizations. (iii) National Economic Development : Labour welfare also helps to develop National Economy. It helps to increase productivity of organization. It makes effect on National productivity, Industrial growth rate etc. Indirectly, Labour Welfare helps to national economic development. (iv) Positive Image of the Organization : The image of the organization depends upon the welfare scheme introduced by the employer adequate labour welfare creates positive image of organization among the workers. (v) Co-operation Rise Co-operation : The success oi any organization depends upon the mutual efforts and co-operation of the workers and managerial persons. Labour welfare helps to increase the feeling of co-operation among the workers. (vl) Workers Personal Safety : Labour welfare ensures workers personal safety and provides them with the equipment and atmosphere needed to draw a fair days wage without any feeling of guilt.

9 ...9 (vii) Satisfy the Needs of Workers : Basically, workers are financially weak and the wages paid to workers were quite inadequate to meet their basic needs. Labour welfare satisfies the needs through entertainment, recreation, medical, education etc. (viii) Job Satisfaction : Works on same industries was hazardous with long hours duty no rest and no recreation. The worker had to work in slum and in unhygienic conditions. But labour welfare gives job satisfaction to the worker and motivates them through best efforts to achieve the goals of organization. (ix) Improve Industrial Relations : Welfare facilities like provision of good housing, minimum wages and other benefits create a feeling of satisfaction and contentment amongst the workers, which helps to avoid conflicts. They feel that they are not ignored as they are the weaker sections of the society thus, industrial relations will be improved. It will bring industrial peace and cordial relations. (x) Increase in Efficiency Productivity and Income : Labour welfare provisions help to relieve the workers from basic worries like housing health, education facilities means of recreation etc. All this results in increasing the efficiency and productivity of the workers. (xi) Improvement in Mental and Moral Health : Incidence of social evils of industrialization like drinking, gambling, prostitution etc. can be minimized. Hence, Labour welfare is useful in improving the mental and moral health of workers.

10 (xii) Increase in Morale : The willing co-operation of the workers becomes possible. Satisfied workers will be less tempted by immoral and anti-social activities. The workers can extend their whole-hearted co-operation. (xiii) Sense of Belonging : Labour welfare measures help to protect the interest of the workers. Once the workers realize that they are not ignored and are the part and parcel of the organization then their devotion to the job will also increase. Sense of belonging is a psychological aspect. (xiv) Reduction in Labour Absenteeism and Labour Turnover : Adequate provisions of welfare facilities are greatly helpful in reducing the extent of labour absenteeism and labour turnover to the minimum. (xv) Change in Outlook of Employers : Once employers will find that workers are co-operative, their outlook will also change. They would become more and more sympathetic towards workers and the workers may be allowed to participate in the management. (xvi) Social Advantages : There are many social advantages of Labour welfare. According to Labour Investigation Committee "Provision of canteens where cheap, clean and balanced food is available to workers must improve their physique, medical aid and child welfare must improve the health of workers and their families

11 and bring down the rates of general and infant morality and educational facilities must increase the mental efficiency and economic productivity ". In this way, these measures help in raising the status, efficiency as well as standard of living of workers. 1.5 AGENCIES OF LABOUR WELFARE In India, the main agencies engaged in labour welfare include (a) Central Government, (b) State Government, (c) Employers, and (d) Workers organisations. The contribution of these agencies can be stated as under. (a) Central Government : A number of Acts have been passed by the Central Government for the welfare of different types of workers. It also administers the implementation of. industrial and labour laws. The important Acts which incorporate measures for the welfare of the workers are : Factories Act, Indian Mines Act, Employment of Children Act, Maternity Benefits Act, Plantation Labour Act etc. Under these Acts, employers are bound to provide certain basic welfare facilities to the workers. For example, under the Factories Act, 1948, employer has to provide canteen, rest and lunch rooms, creches, medical aid, proper lighting, ventilation, drinking water, etc. at the work place. The

12 Welfare Officer is compulsorily required to be appointed e.g. Coal mines. The Coal Mines Labour Welfare Fund. This fund is to be utilised for providing housing, medical, educational and recreation facilities to the workers in mines. Under the Mica Mines Labour Welfare Fund Act, In the case of dock workers the Government also provides housing, medical care, canteens, educational aid to children and workers. Similarly, under different statutes the workers of other industries are provided with welfare facilities. (b) State Governments : The State Governments have to implement many provisions of various labour laws. The State Governments run health centres, educational centres, etc. for the welfare of the workers. They also keep a vigil on the employers that they are operating the welfare schemes made obligatory by the Central or State Government. The State Government have been empowered to prescribe rules for the welfare of workers and appoint appropriate authorities for the enforcement of welfare provisions under various laws. (c) Trade Unions Trade unions have to took after the welfare of the workers and thus they are expected to provide welfare facilities to their members. Unions can provide educational, cultural and other facilities to their members. In Mumbai some unions provide sport and educational facilities. Co-operative stores are also run by some unions. Some trade unions like the Rashtriya Mill Mazdoor Sangh are doing good work in the field of labour welfare. In addition to this, Textile Labour Association, Ahmedabad provide certain facilities like schools, social centres, libraries, legal aid, etc. to the textile workers. Thus, Textile Labour Association of Ahmedabad is doing remarkable work in the labour welfare field.

13 WELFARE ACTIVITIES OF TRADE UNIONS : Labour welfare activities of trade unions include the different types of services or programnnes developed by them for their members. Obviously, these services are developed by unions out of their own resources and are administered by them. The activities of trade unions include the following : 1. Consumer's co-operative, co-operative credit societies, producer's co-operatives etc. 2. Health and Family Planning Programmes. 3. Literacy, adult education and social education classes. 4. Workers Education and Leadership training courses. 5. Social Cultural and Recreational activities. 6. Welfare centres / Workers Institutes. 7. Vocational guidance services. 8. Safety education. 9. Participating in or campaigning for civic social services for members such as schooling of children and transport. 10. Building houses for workers through co-operatives. 11. National Savings Schemes. 12. Civil Defence, and campaigns for the national integration, communal harmony etc.

14 THE ROLE OF THE UNION : It seems that the role of the union in relation to the labour welfare activities emerges from an acceptance of the fact that workers need welfare services apart from those available to them as citizens and members of the community. The unions think that such services should be provided by the Government either from its own resources or by further taxing the employers. This peculiar role of the Unions in the welfare activities has been influenced among other things by the socio-political environment, the state of the economy and the legal framework of the country. It is often said that trade unions do not engage in labour welfare activities due to inadequacy of funds. The argument is valid only to a certain extent. But that is only apart of the story. The phenomenon of unequal interest in non-bargaining activities on the part of different unions also has to be recognised. Two reasons seems to explain this situation. First, the state of labour management relations is relevant to the Union's motivation or lack of it to undertake non-bargaining activities. Secondly, the ideological commitment oi a union also influences its desires to undertake non-bargaining activities. The trade unions have not been able to do much mainly due to the fact that they are concentrating their activities on the maintenance of industrial relations and agitating for increase in wages, allowance and bonus etc. In the near future also it is doubtful whether they will be able to do much. Their indifference is also due to the paucity of funds. The financial conditions of the majority of unions are quite deplorable and they do not have adequate funds to take up welfare measures. But looking at the conditions prevailing in the country, it is imperative that they must diversify their activities and confine to the maintenance of industrial relations mainly. In the near future they will be required to shoulder greater burdens and should not hesitate in accepting the challenge.

15 "Efforts are necessary to awaken the trade unions to the facts that unless they lay proper stress on other factor besides industrial relations, all are doomed to a dismal failure ". They should take up those measures which may be helpful in making the lives oi the members happier and richer and should not merely look to the Government and the employers. For the time being they may take the following measures : They should : (i) Assist the employers and the Government in the formulation and administration of welfare schemes. (ii) Find out the needs of the workers and bring them to the notice of the employers and the Government. (iii) Educate different workers to avail of the facilities offered to them. (iv) Organise simple and inexpensive programmes. (v) Serve as a watch-dog of worker's interests and see that the statutory measures are duly implemented. EMPLOYERS Many employers provide voluntarily welfare facilities alongwith the statutory welfare facilities. These include residential accommodation to the employees medical and transport facilities, reading rooms, scholarships to children of the workers, patronise teams of the employees for hockey, football, etc. Employers can provide welfare facilities individually or collectively i.e. through their

16 associations. Employers have to play a major role in providing v^elfare facilities to industrial workers. The welfare facilities offered by the employers on their own are called voluntary welfare facilities. Some associations of employers also provide welfare facilities collectively, for e.g. Indian Jute Mills Association. CHARITABLE TRUSTS : Charitable Trusts conduct social welfare activities which are useful to all sections of the society including industrial workers. These agencies provide educational facilities medical facilities, scholarships, etc. However, the contribution of such organization in labour welfare is insignificant. 1.6 TYPES OF WELFARE SERVICE Welfare services are concerned with physical and social well-being of the employees both within and outside the organisation. The provision of medical benefits, recreational facilities, libraries, canteens, rest rooms are included within the organization etc. They may also include meals and refreshments supplied free of cost or at subsidised rates to the employees. But outside the organization welfare arrangements include provision of housing accommodation, education of children of employees, sports fields, medical advice for the family, etc. On the whole, these services may be basically of three types : 1. Economic 2. Recreational 3. Facilitative. These are discussed below.

17 Economic Services : Economic services provide some additional economic security over and above wages or salaries, such as pension, life assurance, credit facilities, etc. Establishing a proper pension programme will reduce dissatisfaction in the area of economic security. Pension is a kind of deferred payment to meet the needs of the employees in their old age. Generally, the amount of pension is related to the last pay drawn and the total number of years of service. Some organizations have a family pension scheme which provides for payment of pension to the family members, in case of death of an employee. Similarly, the employer may contribute towards the premium of life insurance of each employee. Some organizations also help the employees to start co-operative credit societies to meet the urgent financial needs of the employees or consumers co-operative stores to provide the workers with consumers goods at low margin of profit. 2. Recreational Services : There is need of occasional diversion for employees. Their attitude improves when the routine of everyday living is broken occasionally. The management, may provide for recreational facilities for this purpose. More agreeable, informal atmosphere is promoted through the contacts and relationships built up in the recreational events. The management may provide for indoor games like Table Tennis in the common room for employees. In case of big organisations, management may provide playgrounds for outdoor games and induce the workers to prepare a team to play matches with other similar teams which will increase co-operation and understanding among the employees. The management may also provide for reading rooms, libraries, radios, T.V., Computer facility for the recreation oi the employees.

18 Facilitative Services : These are conveniences which the employees ordinarily require such as : (i) Canteen, rest rooms and lunch rooms : Unless proper facilities for good, tea and rest rooms are available, health ahd consequential efficiency of the workers will decrease. Hence, almost all the Stores are required to provide canteens where food can be obtained either at a fair price or at subsidised rates. In the same manner, lunch rooms may be provided where workers may take their food which they bring form their homes. Workers also need some place or shelter for taking ffest during leisure hours. This is also required for proper upkeep of health and efficiency. (ii) Housing facilities : Some organisations provide housing facilities for their employees and provide the same either free or at a nominal rent. In some cases cash compensations are provided while in other cases, loans are given to the employees so that they can construct or purchase their own houses or flats. (ill) Medical facilities : First aid facilities must be provided for within the factory premises. In addition, medical scheme is generally in operation under which reimbursement of medical expenses actually incurred is allowed. The organization may also provide doctors from whom the employees may get medical facilities. (iv) Education facilities : Educational facilities may be provided by the organization to the employees child by starting a school for them. (v) Leave Travel Concession (LTC) : Many organisations reimburse actual fares incurred by the employee in undertaking a tour alongwith his or her spouse and minor children once during a specified number of years.

19 IMPORTANCE OF THE STUDY This study is mostly related to the welfare of labour, working in the public limited companies in Pune region. Since long, Pune is the city of cultural and educational activities now it became a city of industries also. This became possible because of rapid industrial development in and around Pune. There are number of Government and private companies situated in and around Pune. These companies have provided large number of employment opportunities to the people living in Pune District and also to the people in rural areas in other Districts of Maharashtra. Large number of people from Latur, Osmanabad, Ahmednagar and Beed and other parts of the Nation migrated to Pune for their daily bread, but now this situation has created many problems like over population, poverty, pollution etc. The standard of living of the people particularly labourers and workers in Pune region affected by depression occured after economic reforms introduced in A standard of living of worker are unsatisfactory, they are working in pitiable work condition. Some of the companies have not provided minimum facilities like water, latrine, urinals at work place. There are insufficient provisions for the security of workers. In this study, an attempt has been made to analyse labour welfare schemes in public limited companies in Pune region and few suggestions have been advocated regarding labour welfare. The importance of this study can be explained as follows. 1. Public limited companies have provided employment to the people coming from rural area of Maharashtra, so this study will provide actual information about labour welfare position in Maharashtra.

20 Industrialisation is one of the factors of development of nation and labour is an important factor of industrialization and labour relation and development of society thus, this study will provide information regarding the importance of labour welfare to the Government. 3. The problems of the workers working in the small companies may be similar all over India. This study will help to solve such types of problems particularly those are related with the welfare of labour. In short, the finding and suggestions of this study may be useful in applying other states too. 4. This study contributes to the area of research concerning the economic problems and the standard of living and the welfare of the workers. The main focus of this study is on the welfare facilities of the workers. 5. The study would be most useful to the research scholars, particularly to those who are interested in welfare activities of the workers. 6. This study will provide new information and dimension to the policymakers and the Government in order to determine the labour welfare schemes. 7. After knowing the welfare problems oi the worker and the factors responsible for the same, one would be in a position to suggest proper measures for the improvement of standard of living of the workers. 8. This study would provide a clue to the social reformer and the policymaker to prepare or develope appropriate labour welfare policy in future.