UNIT -4

Labour welfare in India

Labour welfare

Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration.

Labour welfare is a flexible and elastic concept. Its meaning and implications differ widely with times, regions, industries, countries, social values and customs, the general economic development of the people and the political ideologies prevailing at particular moments.

Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Labour welfare entails all those activities of employer, which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

History of labour welfare:

During the early period of industrial development, efforts towards workers’ welfare was made largely by social workers, philanthropists and other religious leaders, mostly on humanitarian grounds. Before the introduction of welfare and other legislation in India, the conditions of labour were miserable. Exploitation of child labour, long hours of work, bad sanitation, absence of safety measures etc., were the regular features of the factory life.

 Pre- Independence Era: The movement to improve the working conditions of Indian labour started with the passing of the first Indian Factories Act in 1881. The deplorable conditions in which labour worked in the textile mills in Bombay during those days, as testified by the factory commission of 1875 was the immediate cause for the passing of the Act. Adult labour, however, was not protected in any manner. It was found inadequate in many respects. Anyhow, it recognized the right of the government to safeguard the interests of the workers by means of a suitable legislation. Therefore, the Mulock Commission was appointed by the Government of Bombay in 1884 to review the working of the Factories Act of 1881.

 Post-Independence Period: After independence, the labour welfare movement acquired new dimensions. It was realized that labour welfare had a positive role to play in the increasing productivity and reducing industrial tensions. The emergence of different central trade union organizations. Various Labour Welfare Activities were incorporated in different five-year plans.

 Present situation: In spite of all these efforts, the welfare work in India is still considerably below the standard setup in other countries. However, it has come to stay as an accepted feature of employment conditions and is bound to makerapid progress in the years to come, especially when the Indian Republic is wedded to the ideal of a welfare state with socialistic objectives.

Concept:

The concept of labour welfare originated in the desire for a humanitarian approach to ameliorate the sufferings of the workers and their families on account of the baneful effects of large-scale industrialisation like undesirable social consequences and the labour problems which have evolved in the process of transition from tradition to modernity. Later it became a utilitarian philosophy which worked as a motivating force for labour and for those who were interested in it. Lastly, labour welfare received inspiration from the evolution of the social thought in regard to democracy and welfare state. With such a varied background and changing values, labour welfare and its contents have acquired a kaleidoscopic nature.

4.1 Welfare Measures

It can be classified into 2 broad categories: 

1. Welfare measures inside the work place and 

2. Welfare measures outside the work place. 

1. Welfare Measures inside the Work Place: 

• Conditions of work environment –

(a) Neighbourhood safety and cleanliness. 

(b) Up-keeping campus, walls, gardens, doors etc. 

(c) Workshop sanitation, temperature and humidity control, lighting, ventilation, elimination of dust and smoke. 

(d) Control of effluents. 

(e) Comfort during work, i.e., good seating arrangements. 

(f) Work distribution genuine i.e. time for lunch break, rest hours, coffee break etc. 

(g) Workman safety measures. 

(h) Supply of necessary beverages. 

• Safety measures like guards, helmets, aprons, goggles etc. to be provided to employees for safety. 
• Conveniences like Toilets, Restrooms, Wash basin, Water cooler, Canteen etc., Management of workers cloak room and library. 
• Worker’s health safety measures, e.g. Factory health centre, medi­cal exam for workers, education, research etc. 
• Women and Child welfare – Antenatal and postnatal care, maternity aid, creche, and child care, women’s education facility, separate tea rooms, wash rooms, rec­reation rooms, family planning services etc. 
• Worker’s recreation facilities like clubs, indoor games etc. 
• Employment follow up, e.g. Making an effort to see whether train­ees have adjusted to the organizational culture or not. If not, help them in being comfortable. 
• Economic services – co-operative loans, grants, thrifts and saving schemes, pensions, rewards, transport facilities, compensation for injury. 
• Labour-Management participation – Formation and working of certain committees like safety committee, works committee, con­sultation in area of public relations etc. 
• Workers education – reading room, library, visual education, adult education, factory news bulletin etc. 

2. Welfare Measures outside Workplace: 

• Houses, bachelor’s quarters. 
• Water, sanitation, waste disposal.
• Roads, parks, lightings, gardens etc. 
• Schools, nurseries, banks, transport etc. 
• Health and medical services like hospitals, dispensary, emergency ward etc. 
• Gymnasium, study circles. 
• Watch and ward security. 
• Recreation – games, clubs, craft centres, cultural programs i.e. music clubs, interest and hobby circles, festival celebrations, study circles, library, swimming pool theatre etc. 
• Community leadership development, committee of representa­tives, women’s club etc. 

Need for Labour Welfare:

1. Necessary for Industrial System.
2. Rural and agriculture turns to urban and Industry.
3. Key role in Economic Development.
4. Need felt seriously by the Royal Commission of labour in 1931.
5. Increases the employees belonging towards organization.
6. Encourages Healthy and cordial relationships.

Objectives of the labour welfare:

 To provide better life and health to the workers.

 To make the workers happy and satisfied.

 To relieve workers from industrial fatigue and to improve intellectual, culturaland material conditions of living of the workers.

 Improvement in Quality of work life.

 Enhance sense of belonging, responsibility and dignity among the employees.

 Labour welfare provides social comfort to employees

 To provide healthy and proper working conditions.

 To ensure well-being of employees and families.

Types of welfare services:

The Committee of Experts on Welfare Facilities for Industrial Workers set up by the ILO in 1963 divided welfare services into two groups –

(a) Within the precincts of the establishment and

(b) Outside the establishment

 Intramural: Welfare amenities within the precincts of the establishment (intramural) such as latrines and urinals; washing and bathing facilities; crèches, rest shelters and canteens, arrangements for drinking water, arrangements for prevention of fatigue, health services including occupation safety, administrative arrangements to look artery uniform and protective clothing and shift allowances.

 Extramural: Welfare amenities outside the establishment such as maternity benefits, social insurance measures including gratuity, pension, provident fund and rehabilitation, benevolent funds; medical facilities including programmes for physical fitness and efficiency; family planning and child welfare; education facilities including adult education; housing facilities; recreational facilities including sports, cultural activities, library and reading room, holiday homes and leave travel facilities; workers‟ cooperative stores, fair price shops and cooperative thrift and credit societies; vocational training for dependants of workers; welfare programmes for welfare of women, youth and children; and transport to and from the place of work.

Classification of Welfare

1. Statutory

2. Non-Statutory

1. Statutory: Those which have to be provided irrespective of size of establishment, say, drinking water. Also, those which have to be provided subject to the employment of a specified number of people, e.g. Crèche are also part of statutory welfare amenities.

Statutory Welfare Amenities

 Washing Facility

 Facilities for Storing and Drying Clothing

 Facilities for Sitting

 First-Aid Appliances

 Canteens

 Shelters, Rest Rooms and Lunchrooms

 Creches

 Welfare Officers

2. Non-Statutory: In the case of certain amenities, there are no minimum standard laid down as in the sphere of housing, medical treatment, recreation, transport and educational facilities. This is left to the discretion of the employer

Non-Statutory Amenities

 Economic Services

 Recreational Services

 Facilitative Services

 Housing Facilities

 Medical Facilities

 Educational Facilities

 Leave Travel Concession

Labour Welfare Agencies in India

In India, the main agencies engaged in labour welfare include:

(a) Central Government.

(b) State Governments.

(c) Employers.

(d) Workers‟ organisations; and

(e) Voluntary organisations.

The contributions of these agencies are discussed below:

 CENTRAL GOVERNMENT: The Central Government has passed a number of Acts 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 have to provide certain basic welfare facilities to the workers.

 STATE GOVERNMENT: The implementation of many provisions of various labour laws rests with the State Governments. 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 Governments have been empowered to prescribe rules for the welfare of workers and appoint appropriate authorities for the enforcement of welfare provisions under various labour laws.

 EMPLOYERS: Many employers provide voluntarily welfare facilities along with the statutory welfare facilities. These include residential lease accommodation to employees, medical and transport facilities, reading rooms, scholarships to children of workers, patronize teams of employees for hockey, football, etc. Employers can provide welfare facilities individually or collectively i.e., through their associations. Employers have to play a major role in providing welfare facilities to industrial workers.

 TRADE UNIONS: Trade Unions are supposed to raise the welfare of workers and naturally they are expected to provide certain welfare facilities to their members. Unions can provide educational cultural another facilities to their members. Some trade unions like the Rashtriya Mill Mazdoor Sangh are doing good work in the field of labour welfare. In addition, Textile Labour Association, Ahmedabad provides certain facilities like schools, social centres, libraries, legal aid, etc. to the textile workers.

 VOLUNTARY ORGANISATION: Some social-welfare and charitable organisations conduct social welfare activities which are useful to all sections of the society including industrial workers. These agencies provide medical aid, educational facilities, scholarships, etc. However, the contribution of such organisations in labour welfare is not so significant

Scope of Labour Welfare:

Labour welfare is a dynamic concept which acquires new dimensions with the changes in the environment of industry. It was as early as 1931 that Whitley Commission observed“Labour welfare is one which must necessarily be elastic, bearing a somewhat different interpretation in one country from another, according to the different social customs, the degree of industrialisation and the educational development of the workers”. The Rege Committee (1946) observed that, “We prefer to include under welfare activities anything done for intellectual, physical, moral and economic betterment of workers whether by employer, Government or other agencies, over and above provided by law or under some contract and what is normally over and above provided by law or under some contract and what is normally expected as part of the contract for service”. The Study Team, appointed by the Government of India in 1959 to examine labour welfare activities then existing, divided the entire range of these activities into three groups, viz.,

 Welfare within the precincts of an establishment: medical aid, crèches, canteens, supply of drinking water, etc.,

 Welfare outside the establishment: provision for indoor and outdoor recreation, housing, adult education, visual instructions, etc.

 Social security

4.2 Social Security

It describes a program that uses public funds to provide a degree of economic security for the public.

Social security may also refer to the action programs of government intended to promote the welfare of the population through assistance measures guaranteeing access to sufficient resources for food and shelter and to promote health and well-being for the population at large and potentially vulnerable segments such as children, the elderly, the sick and the unemployed.

Risk covered under social security and concerning protective legislation:

1. Disablement

 Workmen’s Compensation Act,1923

 Employees’ State Insurance Act, 1948

2. Death

 Workmen’s Compensation Act, 1923

 Employees’ State Insurance Act, 1948

3. Maternity

 Maternity Benefit Act, 1961

Employees’ State Insurance Act, 1948

4. Old age Income Security and Pension

Coal Mines P. F. &Bonus Scheme Act, 1948

 Employees’ P.F.& Miscellaneous Act, 1952

 Assam Tea Plantations P. F. Scheme Act,1955

 Seamen’s Provident Fund Scheme Act, 1955

5. Medical, Unemployment Benefit and Disable Pension

Employees’ State Insurance Act, 1948

Social security may refer to:

• Social insurance: Where people receive benefits or services in recognition of contributions to an insurance program. These services typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance.

• Services: Provided by government or designated agencies responsible for social security provision. In different countries, that may include medical care, financial support during unemployment, sickness, or retirement, health and safety at work, aspects of social work and even industrial relations.

• Basic security: Irrespective of participation in specific insurance programs where eligibility may otherwise be an issue. For instance, assistance given to newly arrived refugees for basic necessities such as food, clothing, housing, education, money, and medical care.

Initiatives for informal sector- public:

1. National/ State Social Assistance Programs (1995)

2. Public Distribution System

3. Varishta Pension Bima (2003)

4. Janshree Bima Yojana (2000)

5. Universal Health Insurance Scheme (UHIS), 2004

6. National Rural Employment Guarantee Scheme, 2005

Important private initiatives:

1. SEWA-Women working in informal sector employment-Healthcare and insurance benefits

2. NIDAN- life insurance

3. YESHASVINI- medical benefits

4. SPARC- medical and disability benefits for slum

5. ACCORD- life, health and property insurance

6. SIFFS –health and life insurance

Key Takeaway

Labour welfare is a flexible and elastic concept. Its meaning and implications differ widely with times, regions, industries, countries, social values and customs, the general economic development of the people and the political ideologies prevailing at particular moments.

Welfare Measures

It can be classified into 2 broad categories: 

1. Welfare measures inside the work place and 

2. Welfare measures outside the work place. 

Intramural: Welfare amenities within the precincts of the establishment (intramural) such as latrines and urinals; washing and bathing facilities; crèches, rest shelters and canteens, arrangements for drinking water, arrangements for prevention of fatigue, health services including occupation safety, administrative arrangements to look artery uniform and protective clothing and shift allowances.

Extramural: Welfare amenities outside the establishment such as maternity benefits, social insurance measures including gratuity, pension, provident fund and rehabilitation, benevolent funds; medical facilities including programmes for physical fitness and efficiency; family planning and child welfare; education facilities including adult education; housing facilities; recreational facilities including sports, cultural activities, library and reading room, holiday homes and leave travel facilities; workers‟ cooperative stores, fair price shops and cooperative thrift and credit societies; vocational training for dependants of workers; welfare programmes for welfare of women, youth and children; and transport to and from the place of work.

Reference:

1. Labour Economics by G.P. Sinha

2. Labour Economics by T.N.B Bragoliwal