Chapter: Business Science : Industrial Relations and Labour Welfare : Labour Welfare

Labour Welfare

1 Concepts 2 Objectives 3 Scope 4 Need 5 Voluntary measures 6 Statutory welfare measures 7 Labour welfare funds 8 Education and Training programme

LABOUR WELFARE

 

1 Concepts

2 Objectives

3 Scope

4 Need

5 Voluntary measures

6 Statutory welfare measures

7 Labour welfare funds

8 Education and Training programme

 

1 Concept of labour welfare

 

Labour welfare is an important dimension of industrial relation, labour welfare includes overall welfare facilities designed to take care of well being of employee's and in order to increase their living standard.It can also be provided by government, non government agencies and trade unions.

 

The concept of labour welfare is flexible and elastic and differs widely with time, region, industry, social values and customs, degree of industrialization, the general socio – economic development of the people and the political ideologies prevailing at a particular time. It is also molded according to the age – group, sex, socio – cultural background, marital and economic status and educational level of the workers in various industries.

 

Labour Welfare- Definition

 

According to the Committee on  Labour Welfare, welfare services should mean:

 

―Such services, facilities, and amenities as adequate canteens, rest and recreation facilities, sanitary and medical facilities, arrangements for travel to and from place of work, and 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 the conditions under which workers are employed.‖

 

Ø   The employers need welfare activities to discharge their social responsibility, raise the employees morale use the work force more effectively and to reduce

 

function with workers and to avoid Welfare facilities besides removing dissatisfaction help to develop loyalty in workers towards the organization.

 

Ø   Welfare may help minimize social evils, such as alcoholism, gambling, prostitution and drug addiction.

 

Ø   To create harmonious industrial relationship.

 

History Of Labour Welfare

 

Ø   In India the labour welfare started sometime during the 1st world war (1914-1918). Till then wellbeing of workers in factories was hardly thought by anybody.

 

Ø   Industrial Labour Organization has played a very significant role for labour welfare.

 

Ø   Formed by Indian central government and state governments for welfare of labour in Industries

 

Ø   Cntd…

 

Ø   Government has laid down minimum standards for employment and working

 

 

conditions in organizations.

 

Ø   trade unions and various social organizations also function as agencies for implementation of labour welfare measures.

 

2 Objectives of Labour Welfare.

 

Ø   To increase the standard of living of the. Working class The labourer is more prone to exploitation from the capitalists if there is no standardized way of looking after their welfare.

 

Ø   To make the management feel the employees are satisfied about the work and working conditions.

 

Ø   To reduce the labour problems in the orgnisaton: There are various problems affecting the workers, problems like absenteeism, turnover ratio, indebtedness, alcoholism, etc., which make the labourer further weak both physically and psychologically. Labour Welfare looks forward to helping the labourer to overcome these problems.

 

Ø   To recognize human values Every person has his own personality and needs to be recognized and developed. It is in the hands of the management to shape them and help them grow. The management employs various methods to recognize each one's worth as an individual and as an asset to the organization.

 

Ø   Labour Welfare helps to foster a sense of responsibiJjty in the industry: A person works both in a group and as an individual. If the person is given

 

responsibility he will act better or else he will be only a slave to the direction of the superiors and will not show any initiative to prove his worth,

 

Ø Labour Welfare improves industrial relations and reduces industrial disputes: Industrial dispute in any industry is a sign of unsatisfied employees. Labour Welfare measures act as a preventive tool to most of these disputes.

 

Ø   To retain the employees There should be fixed policies: This calls in to prepare the policies, to conduct different training programmes, to have various motivational schemes, to create interest in the job. The employees who feel secure in an organisation, backed by fixed welfare policies have less chance of looking for a job elsewhere.

 

Ø   To show up their positive mind in the work: Positive mind refers to the development of one's attitudes. This is to change the negative attitude into positive.

 

Ø   To influence over other employees: This means Labour Welfare helps to change one's personality - presentation skills, communication skills, inter-personal relationships, etc. This is best achieved when their morale is kept high by the different welfare schemes.

 

Ø   To increase the bargaining power of the employees: Bargaining means to systematically extract something from the opponent. The better bargaining power, the better influence on the opponent. Labour welfare measures like

 

 

formation of works committee, worker's participation, Trade Union, etc., will surely help them to have better bargaining power.

 

 

 

3 Scope of Labor welfare.

 

Working Environment

 

Favourable working environment enhances efficiency of workers and includes proper illumination, safety, temperature, vetilation, sanitation, cleanliness and canteen facilities.

 

Workplace sanitation and cleanliness is very important for making workplace favourable to workers. Following points should be considerdered to make workplace favourable to workers.

Ø  Proper ventilation, lighting, temperature, cleanliness, seating arrangements etc.

 

Ø  Proper safety measures for workers should be there.

 

Ø  Sufficient urinals, lavatories and bathing facilities should be provided and cleaned regularly.

Ø  Proper gardening and cleanliness of open spaces.

 

Ø  Pure drinking water should be provided.

 

Ø  CantSeenservices.

 

Healthfacilities

 

Ø  Health center should be provided within factory.

 

Ø  Ambulance service should be provided within factory in case of any emergency.

 

Ø  Free medical checkup of workers and health and diet counselling of workers.

 

Ø  Availability of Doctor inside the factory for emergency.

 

Ø  Women and child welfare work.

 

Ø  Recreation facilities inside the organization

 

Ø  Education and library services

 

Nature Of Welfare

 

Ø   Schemes of labour welfare shall be updated time to time according to needs of workers.

 

Ø   Labour welfare provides facilities in addition to regular wages and other economic benefits.

 

Ø    Employers, government, NGOs etc. introduce labour welfare measures.

 

Ø    Labour welfare provides facilities which improves workers work-life balance.

 

 

4 Need of Labour welfare

 

Ø   The employers need welfare activities to discharge their social responsibility, raise the employees morale use the work force more effectively and to reduce function with workers and to avoid Welfare facilities besides removing dissatisfaction help to develop loyalty in workers towards the organization.

 

Ø   Welfare may help minimize social evils, such as alcoholism, gambling, prostitution and drug addiction.

 

Ø   To create harmonious industrial relationship.

 

Approaches to labour welfare

 

Ø   Approaches to labour welfare gives a clear idea about the attitudes, beliefs and traditions applied by the labour welfare agencies.

 

Ø   Many  organisations  are  becoming  aware  of  the  welfare  facilities  being

 

provided to its employees.

 

Ø employers are establishing welfare standards voluntarily, willingly an enthusiastically.

Ø   Welfare benefits not only extended to self but the society also.

 

Ø   Many approaches have been designed in this perspective.

 

I)  The Policing Theory

 

Ø   This theory is basically meant for making the employees and the workers availed with the basic facilities needed. E.g- latrines, drinking water, enough rest and lunch intervals, etc.

 

Ø   In this approach the government has introduced the practices to control the exploitation of workers by their management/ employer. E.g- heavy work load and less payments, very small time intervals, no freedom of speech, etc.

 

Ø   In case of non completion of the above, the management is liable to get a severe punishment.

 

II) The religion Theory

Ø   This theory believes in two key approaches:-

 

Ø   The Investment. & The Atonement ( punishment)

 

Ø   The Investment theory explains the welfare benefits provided to the workers is the current Investment made for future progress.

 

Ø   ―Man is a religious animal‖

 

Ø   ―Raw fruit today, flourish to tomorrow.‖

 

Ø   The atonement approach says,

 

Ø   If the employees/workers are not getting availed with the benefits, it is a part of there sins in the past.. They need to be atone for that purpose.

 

III) Philantropic approach

Ø   This is a benevolent approach which has a keen interest in ―giving strategy‖.

 

Ø   Provisions for good conditions of work, day-care facilities for children, canteens, washing facilities. (In regards to the employees)

 

Ø   And rehabilitation of disabled people, working boys/girls hostel facilities, donations to NGO‘s,

 

Ø   Rewards to the educational institutions, etc.

 

Ø   This theory is only encouraged for the well being of internal and external environment.

 

IV) Paternalistic Approach

 

Ø   In this theory, the owner, occupier or the employer, holds the funds of the Industry in a trust.

 

Ø   This trust consist of board or trust members, and any amount to be spent in favor of the employees and the society is first being taken in discussion.

 

Ø   It creates a good moral for the internal and external envoirnment.

 

Ø   Also known as the trusteeship theory of labour welfare.

 

Ø   V) The Placating theory

 

Ø   This theory mainly responds to the peaceful measures applicable for the workers and employees.

 

Ø   Application of this theory is basically meant for the organized and committable/ enthusiastic.

 

Ø   This theory enables the employees to be pleased and oblige with the provided welfare benefits.

 

Ø   VI) Public Relations Theory

 

Ø   This theory basically focuses on the attraction or goodwill for the industry.

 

Ø   In this theory the welfare benefits are directly related to the impression of the Industry.

 

Ø   Impression with the point of view of internal and external envoirnment.

 

Ø   E.g- the In -house employees and the visitors too.

 

Ø   VII) Functional Theory

 

Ø   This theory believes the high productivity/ outcome of employees, by providing them the welfare benefits.

 

Ø   Approach expects the results in the employees/workers efficiency and effectiveness on work.

 

Ø   This concepts is commonly used in nature.

 

Ø   Also known as the efficiency theory of labour welfare.

 

VIII ) Social theory

Ø   This theory believes in well being of the society with the employees.

 

Ø   Various provisions related to the society are to be established with this theory.

 

Ø   Therefore this theory results in enhancing the condition / state of the society .

 

5 Voluntary welfare activities.

 

Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up

 

Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs

 

Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

 

Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.

Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.

 

Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

 

Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

 

 

 

6 Various statutory welfare activities

 

Statutory welfare measures mainly include welfare facilities provided within the precincts of an industrial establishment. They form part of the employers‟ statutory obligations. All welfare states provide welfare to the labour by securing and protecting social order to ensure social, economic and political justice.

 

PROVISIONS REGARDING THE WELFARE OF WORKERS

 

 

Washing. In every factory adequate and suitable facilities for washing shall be provided and maintained. They shatI be conveniently accessible and shall be kept clean. There must be separate provisions for male and female workers.-Sec. 42.

 

Storing and drying. The State Government may make rules requiring the provision of suitable facilities for storing and drying clothing.-Sec. 43.

 

Sitting. Sitting facilities must be provided for workers who have to work in a standing position. so that they may take rest when possible. When work can be done in a sitting position efficiently the Chief Inspector may direct the provision of sitting arrangements. Sec. 44.

 

First aid. Every factory must provide first aid boxes or cupboard. They must contain the prescribed materials and they must be in charge of persons trained in first aid treatment. Factories employing more than 500 persons must maintain an ambulance roam containing the prescribed equipment and in charge of the prescribed medical and nursing staff-Sec. 45.

 

 

 

Canteens. Where more than 250 workers are employed. the state Government may require the opening of canteen or canteens for workers. Rules may be framed regarding the food served. its management etc.,..-Sec.

 

 

Shelters. In every factory where more than 150 workers are employed there must be provided adequate and suitable shelters or rest. rooms and a lunch room (with drinking water supply) where workers may eat meals brought by them. Such rooms must be sufficiently lighted and ventilated and must be maintained in a cool and clean condition~. The standards may be fixed by the State Government. -Sec. 47

 

 

Creches. In every factory where more than 30 women a employed, a room shall be provided for the use of the children (below 6 years) of such women. The room shall be adequate size. well lighted and ventilated, maintained in a clean and sanitary condition and shall be in charge of a woman trained in the care of children and infants. The standards shall be laid down by the State Government.Sec. 48.

 

Welfare officers. Welfare officers must be appointed in every factory where 500 or more workers are employed. The State Government may prescribe the duties, qualifications etc. of such officers. Sec. 49.

 

Rules. The State Government may make rules regarding the welfare of workers.-Sec. 50.

 

NON STATUTORY SCHEMES

 

Many non statutory welfare schemes may include the following schemes:

 

 

Personal Health Care (Regular medical check-ups)

 

Some of the companies provide the facility for extensive health check-up

 

Flexi-time

 

The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs

 

Employee Assistance Programs

 

Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

 

Harassment Policy

 

To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.

 

Maternity & Adoption Leave

Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.

 

Medi-claim Insurance Scheme

 

This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

 

Employee Referral Scheme

 

In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

 

5 Different Categories of Labour Welfare

 

Some of the major categories of labour welfare are: (1) Intra-mural Facilities (2) Extra-mural Facilities (3) Statutory Facilities (4) Mutual Facilities and (5) Voluntary.

 

It is very difficult to classify the welfare activities into certain broad categories.

 

(1) Intra-mural Facilities:

 

The facilities provided inside the factory are known as intra-mural facilities. These facilities include activities relating to minimisation of industrial fatigue, provision of safety measures like fencing and covering of machines, good layout of the plant and machinery, sufficient lighting conditions, provision of first aid appliances etc.

 

Provisions of such facilities are also obligatory in all industrial establishments all over the world.

 

(2) Extra-mural Facilities:

 

Facilities offered to the workers outside the factory are known as extra-mural facilities. They include better housing accommodations, indoor and outdoor recreation sports, educational facilities etc. The provision of these facilities is voluntary. Earlier, due attention was not given to the provision of extra-mural facilities to the workers but now it is realised that these facilities are very important for the general welfare and upliftment of the workers.

 

(3) Statutory Facilities:

 

Under this category, welfare facilities are provided according to the labour legislations passed by the Government. The nature and coverage of these facilities vary from country to country. Again these facilities may be either intra-mural facilities or extra-mural facilities. These facilities must be provided by all the employers and cannot be ignored. Any contravention of the statutory provisions shall render the employer punishable under the Act concerned.

The National Commission of Labour has divided all the statutory measures under two distinct heads:

 

1. Facilities which have to be provided irrespective of the size of the establishment e.g., drinking water.

 

2. Facilities which are to be provided subject to the employment of a specified number of persons, e.g., creches.

 

(4) Mutual Facilities:

 

These facilities are usually outside the scope of the statutory facilities. These activities are voluntarily undertaken by the workers themselves for their own interest. As such the employer has no say in it.

 

(5) Voluntary:

 

The facilities which are voluntarily provided by the employers come under this category. Hence these are not statutory. No doubt, the activities under this category ultimately lead to increase in the efficiency of workers.

 

 

 

 

 

 

7 Labour welfare funds

 

Labour welfare funds are created as a measure of social security provided to the working class. Social security is one of the working class. Social security is one of the three categories of labour welfare activities classified by the study group appointed by the Government of India to examine the labour welfare activities

 

The Government constitutes Labour Welfare Fund, as per section 3, to which the following are credited to –

 

a) All Unpaid Accumulations due to workers

 

b) All fines realised from the workers

 

c)  Deduction made under the proviso to Sub-section(2) of section 9 of the Payment of Wages Act,1936 and the proviso to Sub-section (2) of section 36 of the Tamil Nadu Shops and Establishments Act, 1947.

 

d) Contribution from Employees, Employers and Government,

 

e)  Any interest by way of penalty, paid under Section 14 of the Tamil Nadu Labour Welfare Fund Act, 1972.

 

f)  Any Voluntary Donation.

 

g)  Any amount raised by the Board from other sources to augment the resources of the Board.

 

h)  Any fund transferred under Sub-section 5 of Section 17 of the Tamil Nadu Labour Welfare Fund Act, 1972.

 

i)  Any sum borrowed under Section 18 of Tamil Nadu Labour Welfare Fund Act,1972

 

j)   Any unclaimed amount credited to the Government in accordance with the rules made under the Payment of Wages Act, 1936 and Minimum Wages Act, 1948

 

. k) Grants or Advances made by the Government.

 

8 Education and training programme.

 

Employee’s Education:

 

In the word of William Flayed, ―Worker Education‖ is an attempt on the part of organized labour to educate its own members under an educational system in which the workers prescribe the courses of instructions, select the teachers and in a considerable measure, furnish the finance.‖

 

Features of employees education

 

i.The scope of workers‘ education is much wider than that of trade union education but is narrower than that of adult education.

 

ii.The workers‘ education is designed to create trade union consciousness among workers, besides making them good citizens and training them to understand their status, rights and responsibilities.

 

iii.In workers‘ education, the workers themselves prescribe the curriculum and select the teachers who have full sympathy with the working class.

 

iv.The institutions providing workers‘ education are owned, financed and managed by the workers.

 

v.It is aimed at increasing the bargaining power of trade unions and making the working class more sensible and cooperative.

 

vi.It differs from vocational and professional education, for its main aim is to train a worker for his group advancement and increasing individual creativity, whereas vocational and professional education aims at individual development.

 

vii.The approach in workers‘ education is psychological and philosophical.

 

viii.It includes general education, vocational education, technical education, social education and training in trade unionism.

 

 

 

The Director General of Employment and Training (DGET) has designed a number of training procedures are

 

The Board has developed a need based, three tier training programme for education officers, workers and teachers. In first state education officer are trained. The period or training is four months. Then they give training for different regional centres.

 

Second stage is to get selected workers trained as worker teachers at the regional and sub -regional centres by the educational officers. The duration of training programme is three months.

 

WorkersEducationScheme

 

Aims and Objectives

 

Ø   It is important for Industrial peace and Harmony, healthy Management-labour relations.

 

Ø   Develop Effective trade unions through better trained officials and more enlightened members.

 

Ø   Enhance the leadership skills which enables the worker in his development.

 

Ø   Increase the total labour mass literacy.

 

Ø   Better understanding of the problem, with effective solutions

 

Ø   To fulfill the Organisations requirements through proper responsibility handling.

Ø   The pre-condition of workers education literacy.

 

Ø   Important consideration at the present stage of developing country.

 

Ø   To understand the workers privileges, rights and obligations.

 

Ø   Time-to-time training programs to upgrade the workers knowledge.

 

Ø   Minimize the Industrial Accidents and other mishaps on the shop floor.

 

Ø National Commission on Labour, has said that the labour‘s/ workers education should have the following key areas to be studied:-

Ø   This should employee independent, intelligent and innovative.

 

Ø   He should be responsible, alert, and self-disciplined.

 

Ø   Also Guided the National trade union centers to arrange for the quality programs with the Collaboration with some of the universities and Institutions.

 

 

 

Craftsmens Training Programme.

Ø   To promote the efficiency of craftsmen

 

Ø   To conduct various types of test for selection of craftsmen trainees

 

Ø   The duration of the course is one to two years

 

Ø   National trade certificate is issued for successful candidates

 

Craft Instructors Training.

 

Education- ITI or diploma is required

 

Advanced Vocational Training System.

To give training to advanced skill workers &technicians.

 

Foremans Training.

 

For the training of foreman an institute was set up

 

Training is provided to the existing and potential shop foremen and supervisors in theoretical and managerial skills and workers from industry in advanced technical skills

 

Apprenticeship Training Scheme.

Ø  Apprenticeship act,1961

 

Ø  Employers are required to engage apprentices

 

Part Time Training for Industrial Workers.

 

To conduct part time evening classes are organized to improve the standards of working

 

Vocational Training Programme for Women.

 

It includes instructor training,basic training and advanced training in selected trades particularly suitable for women

 

 

 

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