INDUSTRIAL RELATIONS - Dr. D.

Sreenivasa Reddy
Industrial relations has become one of the most delicate and complex problems of modern industrial society. Industrial progress is impossible without cooperation of labors and harmonious relationships. Therefore, it is in the interest of all to create and maintain good relations between employees (labor) and employers (management). Concept of Industrial Relations: The term Industrial Relations comprises of two terms! Industry and Relations . "Industry# refers to "any producti$e acti$ity in which an indi$idual (or a group of indi$iduals) is (are) engaged#. %y "relations# we mean "the relationships that exist within the industry between the employer and his wor&men.# The term industrial relations explains the relationship between employees and management which stem directly or indirectly from union-employer relationship. Industrial relations are the relationships between employees and employers within the organi'ational settings. The field of industrial relations loo&s at the relationship between management and wor&ers, particularly groups of wor&ers represented by a union. Industrial relations are basically the interactions between employers, employees and the go$ernment, and the institutions and associations through which such interactions are mediated. The term industrial relations has a broad as well as a narrow outloo&. (riginally, industrial relations was broadly defined to include the relationships and interactions between employers and employees. )rom this perspecti$e, industrial relations co$ers all aspects of the employment relationship, including human resource management, employee relations, and union-management (or labor) relations. *ow its meaning has become more specific and restricted. +ccordingly, industrial relations pertains to the study and practice of collecti$e bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.
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The relationships which arise at and out of the wor&place generally include the relationships between indi$idual wor&ers, the relationships between wor&ers and their employer, the relationships between employers, the relationships employers and wor&ers ha$e with the organi'ations formed to promote their respecti$e interests, and the relations between those organi'ations, at all le$els. industrial relations also includes the processes through which these relationships are expressed (such as, collecti$e bargaining, wor&ers participation in decision-ma&ing, and grie$ance and dispute settlement), and the management of conflict between employers, wor&ers and trade unions, when it arises. )or better understanding of industrial relations, $arious terms need to be defined here! Industry: Industrial ,isputes +ct -./0 defines an industry as any systematic acti$ity carried on by co-operation between an employer and his wor&men for the production, supply or distribution of goods or ser$ices with a $iew to satisfy human wants or wishes whether or not any capital has been in$ested for the purpose of carrying on such acti$ity1 or such acti$ity is carried on with a moti$e to ma&e any gain or profit. Thus, an industry is a whole gamut of acti$ities that are carried on by an employer with the help of his employees and labors for production and distribution of goods to earn profits. E ployer: +n employer can be defined from different perspecti$es as!

a person or business that pays a wage or fixed payment to other person(s) in exchange for the ser$ices of such persons. a person who directly engages a wor&er2employee in employment. any person who employs, whether directly or through another person or agency, one or more employees in any scheduled employment in respect of which minimum rates of wages ha$e been fixed.

+s per Industrial ,isputes +ct -./0 an employer means!in relation to an industry carried on by or under the authority of department of 3the 4entral 5o$ernment or a 6tate 5o$ernment7, authority prescribed in this behalf, or where no authority is prescribed, head of the department1 in relation to an industry carried on by or on behalf of a local authority, chief executi$e officer of that authority1

any the the the

E ployee: !

8mployee is a person who is hired by another person or business for a wage or fixed payment in exchange for personal ser$ices and who does not pro$ide the ser$ices as part of an independent business. +n employee is any indi$idual employed by an employer. + person who wor&s for a public or pri$ate employer and recei$es remuneration in wages or salary by his employer while wor&ing on a commission basis, piece-rates or time rate. 8mployee, as per 8mployee 6tate Insurance +ct -./9, is any person employed for wages in or in connection with wor& of a factory or establishment to which the act applies.

In order to :ualify to be an employee, under 86I +ct, a person should belong to any of the categories! o those who are directly employed for wages by the principal employer within the premises or outside in connection with wor& of the factory or establishment. o those employed for wages by or through an immediate employer in the premises of the factory or establishment in connection with the wor& thereof
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those employed for wages by or through an immediate employer in connection with the factory or establishment outside the premises of such factory or establishment under the super$ision and control of the principal employer or his agent.
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employees whose ser$ices are temporarily lent or let on hire to the principal employer by an immediate employer under a contract of ser$ice (employees of security contractors, labor contractors, house &eeping contractors etc. come under this category).

E ploy ent: The state of being employed or ha$ing a ;ob. La"or ar#et:

The mar&et in which wor&ers compete for ;obs and employers compete for wor&ers. It acts as the external source from which organi'ations attract employees. These mar&ets occur because different conditions characteri'e different geographical areas, industries, occupations, and professions at any gi$en time. --------------------------------------------------------------------------------------------------------6imply the relationship between employer and employee is called Industrial Relation. %ut it also co$ers the relation between employer $s. employer and employees $s. employees. To safeguard the interests of the all the parties, harmonious relationship is necessary for both employers and employees of the production. In order to maintain good relationship with the employees, the main functions of e$ery organi'ation should a$oid any dispute with them or settle it as early as possible, so as to ensure industrial peace and harmony with higher producti$ity. The Industrial Relation relations also called as labor - management, employee-employers relations. ------------------------------------------------------------------------------------------Definitions:! a. Industrial Relation is deals with the manpower of the enterprise and the management which is concerned with < whether machine operator, s&illed wor&er or manager. b. Industrial Relation is a relation between employer and employees, employees and employees and employees and trade unions. and the "process by which people and their organi'ations interact at the place of wor& to establish the terms and conditions of employment.# - Industrial dispute +ct -./0.

In fact, Industrial Relation encompasses all such factors that influence beha$ior of people at wor&. + few such important factors are details below! $. %rocess & 'et(ods ! The collecti$e bargaining between both the employer and employee. The participation of wor&ers in the Industrial Relation schemes in necessary. (thers are disciplinary procedure, grie$ance readdress machinery, dispute settlements, union reorgani'ation, re$isions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc. ). Contents ! There may be two parts includes the matter pertaining to employment conditions li&e pay, hours of wor&s, lea$e with wages, health, and safety, disciplinary actions, lay-off, dismissals retirements etc., and other part are laws relating to such acti$ities, regulations welfare, social security, industrial relations, etc. *. Institution & Esta"lis( ent ! The direct or indirect impact on the industrial relations systems is it includes go$ernment, employers, trade unions, unions federations or associations, go$ernment bodies, labor courts, tribunals and other organi'ations.

O"+ectives of Industrial Relation in today are:

-. To safeguard the interest of labor and management by securing the highest le$el of mutual understanding and good-will among all those sections in the industry which participate in the process of production. =. To a$oid industrial conflict or strife and de$elop harmonious relations, which are an essential factor in the producti$ity of wor&ers and the industrial progress of a country. >. To raise producti$ity to a higher le$el in an era of full employment by lessening the tendency to high turno$er and fre:uency absenteeism. /. To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions, so that ban indi$iduals personality may grow its full stature for the benefit of the industry and gheraos by pro$iding and of the country as well.
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?. To eliminate or minimi'e the number of stri&es, loc&outs and gheraos by pro$iding reasonable wages, impro$ed li$ing and wor&ing conditions, said fringe benefits. @. To impro$e the economic conditions of wor&ers in the existing state of industrial managements and political go$ernment. 0. 6ociali'ation of industries by ma&ing the state itself a ma;or employer $esting of a proprietary interest of the wor&ers in the industries in which they are employed. Actors in t(e IR syste Three main parties are directly in$ol$ed in industrial relations! E ployers: 8mployers possess certain rights $is-A-$is labors. They ha$e the right to hire and fire them. Banagement can also affect wor&ers interests by exercising their right to relocate, close or merge the factory or to introduce technological changes. E ployees: Cor&ers see& to impro$e the terms and conditions of their employment. They exchange $iews with management and $oice their grie$ances. They also want to share decision ma&ing powers of management. Cor&ers generally unite to form unions against the management and get support from these unions. ,overn ent: The central and state go$ernment influences and regulates industrial relations through laws, rules, agreements, awards of court ad the li&e. It also includes third parties and labor and tribunal courts.

SCO%E
The concept of industrial relations has a $ery wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may pro;ect it to spheres, which may transgress to the areas of :uality control, mar&eting, price fixation and disposition of profits among others. The scope or industrial relations are :uite $ast. The main issues in$ol$ed here include the following! -. 4ollecti$e bargaining =. Bachinery for settlement of industrial disputes >. 6tanding orders /. Cor&ers participation in management ?. Dnfair labor practices

Celfare includes anything that is done for the comfort and impro$ement of employees and is pro$ided o$er and abo$e the wages. Celfare helps in &eeping the morale and moti$ation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any &ind2forms. 8mployee welfare includes monitoring of wor&ing conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the wor&ers and their families.Eabor welfare entails all those acti$ities of employer, which are directed towards pro$iding the employees with certain facilities and ser$ices in addition to wages or salaries. Eabor welfare has the following ob;ecti$es! -. To pro$ide better life and health to the wor&ers. =. To ma&e the wor&ers happy and satisfied >. To relie$e wor&ers from industrial fatigue and to impro$e intellectual, cultural and material conditions of li$ing of the wor&ers. The basic features of labor welfare measures are as follows!

La"our -elfare

-. Eabor welfare includes $arious facilities, ser$ices and amenities pro$ided to wor&ers for impro$ing their health, efficiency, economic betterment and social status. =. Celfare measures are in addition to regular wages and other economic benefits a$ailable to wor&ers due to legal pro$isions and collecti$e bargaining >. Eabor welfare schemes are flexible and e$er-changing. *ew welfare measures are added to the existing ones from time to time. /. Celfare measures may be introduced by the employers, go$ernment, employees or by any social or charitable agency. ?. The purpose of labor welfare is to bring about the de$elopment of the whole personality of the wor&ers to ma&e a better wor&force. The $ery logic behind pro$iding welfare schemes is to create efficient, healthy, loyal and satisfied labor
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force for the organi'ation. The purpose of pro$iding such facilities is to ma&e their wor& life better and also to raise their standard of li$ing. The important benefits of welfare measures can be summari'ed as follows! They pro$ide better physical and mental health to wor&ers and thus promote a healthy wor& en$ironmentF )acilities li&e housing schemes, medical benefits, and education and recreation facilities for wor&ers families help in raising their standards of li$ing. This ma&es wor&ers to pay more attention towards wor& and thus increases their producti$ity.

8mployers get stable labor force by pro$iding welfare facilities. Cor&ers ta&e acti$e interest in their ;obs and wor& with a feeling of in$ol$ement and participation.F 8mployee welfare measures increase the producti$ity of organi'ation and promote healthy industrial relations thereby maintaining industrial peace.FThe social e$ils pre$alent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies. (rgani'ations pro$ide welfare facilities to their employees to &eep their moti$ation le$els high. The employee welfare schemes can be classified into two categories $i'. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to pro$ide by an organi'ation as compliance to the laws go$erning employee health and safety. These include pro$isions pro$ided in industrial acts li&e )actories +ct -./9, ,oc& Cor&ers +ct (safety, health and welfare) -.9@, Bines +ct -.@=. The non statutory schemes differ from organi'ation to organi'ation and from industry to industry. 6T+TDT(RG C8E)+R8 64H8B86! The statutory welfare schemes include the following pro$isions! -. ,rin&ing Cater! +t all the wor&ing places safe hygienic drin&ing water should be pro$ided. =. )acilities for sitting! In e$ery organi'ation, especially factories, suitable seating arrangements are to be pro$ided.
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>. )irst aid appliances! )irst aid appliances are to be pro$ided and should be readily assessable so that in case of any minor accident initial medication can be pro$ided to the needed employee. /. Eatrines and Drinals! + sufficient number of latrines and urinals are to be pro$ided in the office and factory premises and are also to be maintained in a neat and clean condition. ?. 4anteen facilities! 4afeteria or canteens are to be pro$ided by the employer so as to pro$ide hygienic and nutritious food to the employees. @. 6pittoons! In e$ery wor& place, such as ware houses, store places, in the doc& area and office premises spittoons are to be pro$ided in con$enient places and same are to be maintained in a hygienic condition. 0. Eighting! Iroper and sufficient lights are to be pro$ided for employees so that they can wor& safely during the night shifts. 9. Cashing places! +de:uate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are pro$ided in the port area in the $icinity of the wor& places. .. 4hanging rooms! +de:uate changing rooms are to be pro$ided for wor&ers to change their cloth in the factory area and office premises. +de:uate loc&ers are also pro$ided to the wor&ers to &eep their clothes and belongings. -J. Rest rooms! +de:uate numbers of restrooms are pro$ided to the wor&ers with pro$isions of water supply, wash basins, toilets, bathrooms, etc. *(* 6T+TDT(RG 64H8B86 Bany non statutory welfare schemes may include the following schemes! -. Iersonal Health 4are (Regular medical chec&-ups)! 6ome of the companies pro$ide the facility for extensi$e health chec&-up

=. )lexi-time! The main ob;ecti$e of the flextime policy is to pro$ide opportunity to employees to wor& with flexible wor&ing schedules. )lexible wor& schedules are
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initiated by employees and appro$ed by management to meet business commitments while supporting employee personal life needs

>. 8mployee +ssistance Irograms! Karious assistant programs are arranged li&e external counseling ser$ice so that employees or members of their immediate family can get counseling on $arious matters. /. Harassment Iolicy! To protect an employee from harassments of any &ind, guidelines are pro$ided for proper action and also for protecting the aggrie$ed employee. ?. Baternity L +doption Eea$e < 8mployees can a$ail maternity or adoption lea$es. Iaternity lea$e policies ha$e also been introduced by $arious companies. @. Bedi-claim Insurance 6cheme! This insurance scheme pro$ides ade:uate insurance co$erage of employees for expenses related to hospitali'ation due to illness, disease or in;ury or pregnancy.

0. 8mployee Referral 6cheme! In se$eral companies employee referral scheme is implemented to encourage employees to refer friends and relati$es for employment in the organi'ation. La"our .elfare acti$ities in an industriali'ed society has far reaching impact not only on the wor& force but also all the facets of human resources. Eabour welfare includes all such acti$ities, which not only secures existential necessities but also ensures impro$ement in spiritual and emotional :uotient. It comprises of short term and long terms goal toward building a humane society. +s labour welfare is a dynamic concept, changes in its principles acti$ities and the rationale supporting them ha$e not been static. They closely follow the stages of ad$ancement of the industriali'ed society < from police Theory to )unctional Theory. +ccordingly principles for successful implementation of labour welfare acti$ities ranges from ade:uacy of wages to impact on efficiency as well as transformation of personality in nut shell, it is extension of democratic $alues in an industriali'ed society.
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Theories of Eabour welfare +cti$ities ha$e been formulated on the con$iction that it is man behind the machine who is responsible for achie$ing mission of an organi'ation. + person can deli$er at his best only when he is satisfied and committed to the cause. To &eep the employees moti$ated and committed $arious welfare facilities are pro$ided by the organi'ation not only to the employees but also to their family member too. The term MCelfareM expresses many ideas, meanings and connotations, such as the state of well being, health, happiness, prosperity and the de$elopment of human resources. It includes both the social and economic aspects of welfare. The social concept of welfare implies the welfare of man, his family and his community. +ll these three aspects are inter-related and wor& together. The economic aspect of welfare co$ers promotion of economic de$elopment by increasing production and producti$ity. Celfare is also called a relati$e concept, for it is related to time and space. 4hanges in it ha$e an impact on the system of welfare as well. +s welfare is growing and dynamic, the welfare potential changes, as a result of which its content &eeps on $arying and has to &eep pace with the changing times. +lso the characteristics of welfare $ary for it depends of a nation in all fields. Its meaning and components, therefore, differ from country to country and from place to place. The economic welfare acti$ities are such, which can be brought directly or indirectly into relation with money, %i/ou0$1 defined econo ic .elfare as that part of social welfare that can be brought directly or indirectly into relation with the measuring need of money. +ccording to him, 2t(e econo ic .elfare of a co unity of a /iven si3e is li#ely to "e /reater4 t(e lar/er is t(e s(are t(at accrues to t(e poor.2 Howe$er, he admitted that economic welfare was not the index of total welfare. The word labour means any producti$e acti$ity. In a broader sense, therefore the phrase labour welfare means the adoption of measures to promote the physical, social, psychological and general well being of the wor&ing population. Celfare wor& in any industry aims or should aim at impro$ing the wor&ing and li$ing conditions of wor&ers and their families.
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The concept of labour welfare acti$ities, howe$er, is flexible, elastic and differs from time to time, region to region, industry to industry and country to country, depending upon the $alue system, le$el of education, social customs, degree of industriali'ations and the general standard of the socio-economic de$elopment of a people. It is also related to the political situation in a country. )urther it depends upon the &inds of problems with which society is confronted as well as on the structure of the industry. It is molded according to the age group, sex, socio-cultural bac&ground, marital status, economic status and educational le$el of the employees in $arious industries. DE5INITION O5 LA6OUR -EL5ARE: Eabour welfare has been defined in $arious ways, though no single definition has found uni$ersal acceptance. The (xford dictionary defines labour welfare as N8fforts to ma&e life worth li$ing for wor&men.N 4hambers dictionary defines welfare as N+ state of faring or doing well. )reedom from calamity, en;oyment of health and prosperity.# The 8ncyclopedia of 6ocial 6cience defines it as Nthe $oluntary efforts of the employers to establish, within the existing industrial system, wor&ing and sometimes li$ing and cultural conditions of employees beyond what is re:uired by law, the customs of the industry and the condition of mar&etN. In the Report II of the IE( +sian Regional conference, it has been stated that wor&erMs welfare may be understood to mean Nsuch ser$ices, facilities and amenities, which may be established outside or in the $icinity of underta&ings, to enable the persons employed therein to perform their wor& in healthy and congenial surroundings and to pro$ide them with the amenities conduci$e to good health and high morale.N The Eabour In$estigation committee (-.//-/@) includes under labour welfare acti$ities Nanything done for the intellectual, physical, moral and economic betterment of the wor&ers, whether by employers, by go$ernment or by other agencies, o$er and abo$e what is laid down by law or what is normally expected as per of the contractual benefits for which the wor&ers may ha$e bargained.N
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The Report of the 4ommittee on Eabour welfare (-.@.) includes under it Nsuch ser$ices, facilities and amenities as ade:uate canteens, rest and recreation facilities, sanitary and medical facilities, arrangements for tra$el to and from wor& and for the accommodation of wor&ers employed at a distance from their homes and such other ser$ices, amenities and facilities including social security measures as contribute to impro$e the conditions under which wor&er are employer.N Thus, the whole field of welfare is said to be one Nin which much can be done to combat the sense of frustration of the industrial wor&ers, to relie$e them of personal and family worries, to impro$e 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 lifeN. It promotes the well-being of wor&ers in $ariety of ways. SCO%E O5 LA6OUR -EL5ARE ACTI7ITIES: Eabour welfare +cti$ities is combinations of $arious steps, the cumulati$e effect of which is to grease the wheels of industry and society. 6ound 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 wor&ers 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 organi'ation in the day to day handling of :uestions which are of mutual concern. The basic needs of a labour are freedom from fear, security of employment and freedom from want. +de:uate food, better health, clothing and housing are human re:uirements. The human heart harbors secret pride and in$ariably responds to courtesy and &indness ;ust as it re$olts to tyranny and fear. +n en$ironment where he is contended with his ;ob, assured of a bright future and pro$ided with his basic needs in life means an atmosphere of good wor&ing condition and satisfaction to labour. Eabour welfare acti$ities are based on the plea that higher producti$ity re:uires more than modern machinery and hard wor&. It re:uires co-operati$e endea$or of
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both the parties, labour and management. This is possible only when labour is gi$en due importance and human element is ta&en into account at e$ery stage. The wor&er has a fund of &nowledge and experience at his ;ob. If rightly directed and fully used, it would ma&e a great contribution to the prosperity of the organi'ation. This can only be achie$ed through satisfaction of the labour as the wor&er feels that he is an acti$e participant in the production process, and he does at most for increasing the production and its producti$ity. O68ECTI7ES O5 LA6OUR -EL5ARE ACTI7ITIES: The ob;ect of welfare acti$ities is to promote economic de$elopment by increasing production and producti$ity. The underlying principle is to ma&e the wor&ers gi$en their loyal ser$ices ungrudgingly in genuine spirit of co-operation, in return for obligations, $oluntary and compulsory, accepted by the employee towards the general well-being of the employees. Impro$ing the efficiency of the labour is another ob;ecti$e of labour welfare acti$ities. 8fficiency gi$es double reward, one in the form of increased production and the other in the shape of higher wages due to achie$ement of higher producti$ity. Celfare acti$ities add to their efficiency and efficiency in turn help the wor&er to earn more wages. Therefore, welfare acti$ities in an organi'ation are twice blessed. It helps the employer and the employee both. +nother ob;ecti$e of welfare acti$ities is to secure the labour proper human conditions of wor& and li$ing. Cor&ing conditions of organi'ation may be led by an artificial en$ironment which features are dust, fumes, noise, unhealthy temperature, etc. It is generally found that these conditions impose strain on the body. The welfare acti$ities are done to minimi'e the ha'ardous effect on the life of the wor&ers and their family members. It is the duty of the employer to see these human needs. If welfare acti$ities are $iewed in this light, it can be seen that they are guided by purposes of humanitarian and social ;ustice.

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The next ob;ecti$e of welfare acti$ities is to add in a real way to the low earning of the labour. The facilities are pro$ided to supplement the income of the wor&ers by ser$ices such as housing, medical assistance, school, co-operati$e, canteens, stores, play grounds etc. Thus, the ob;ecti$e of acti$ities are to promote greater efficiency of the wor&ers, assure proper human conditions to the wor&ers and their family members, supplement their wages in monetary teams, gi$e more real wages and foster better industrial relations. %9ILOSO%9: O5 LA6OUR -EL5ARE ACTI7ITIES! The philosophy of labour welfare acti$ities is based on the theory that success of industrial de$elopment depends upon harmonious relations and co-operation between labour and management (employer ). The labour has a fund of &nowledge and experience at his ;obs. If rightly directed and fully used, it would ma&e a good contribution to the prosperity of the organi'ation this can be achie$ed only through the satisfaction of the labour. 8fficiency in the matter of running an organi'ation and maintenance of producti$ity at rising rate and higher le$el, call for good labour relations throughout the process of production. It enables all those engaged in the organi'ation to ma&e their maximum personal contribution to its effecti$e wor&ing. '. 7. %ylee and Si on ,eor/e has pointed out that 2Even one discontented e ployee or an e ployee nursin/ a /rievance can eventually infect an entire or/ani3ation .it( t(e /er of discontent .(ic(4 in turn4 .ill result in lo.er efficiency4 poor orale and reduction in overall production2 . The labour welfare acti$ities in the form of health ser$ices centers are pro$ided with the philosophy that a good medical ser$ice center will help in ensuring sturdy impro$ement of ;ob satisfaction and producti$ity. + healthy wor&er is a basic re:uirement of an organi'ation. It is, therefore, incumbent on the part of the employer to loo& after the health of the wor&ers and to pro$ide such facilities which would ensure minimum health ha'ards. The concerning law prescribes the minimum standard but progressi$e
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employer must extend his acti$ities 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.

%RINCI%LES 5OR SUCCESS5UL I'%LE'ENTATION O5 -EL5ARE ACTI7ITIES: The success of welfare acti$ities depends on the approach which has been ta&en into account in pro$iding such acti$ities to the employees. Celfare policy should be guided by idealistic morale and human $alue. 8$ery effort should be made to gi$e wor&ers2 employees some $oice in the choice of welfare acti$ities so long as it does not amount to dictation from wor&ers. There are employers who consider all labour welfare acti$ities as distasteful legal liability. There are wor&ers who loo& upon welfare acti$ities in terms of their inherent right. %oth parties ha$e to accept welfare as acti$ities of mutual concern. 4onstructi$e and lasting Irogress in the matter of social ;ustice can be achie$ed only if welfare acti$ities are accepted as essential factors in the progress of the business organi'ation. Eabour welfare is dependent on certain basic principles. The following are the principles on which successful implementation of welfare programmes depends ! -. Ade;uacy of -a/es! Eabour welfare measures cannot be a substitute for wages. Cor&ers ha$e a right to ade:uate wages. %ut high wage rates alone cannot create healthy atmosphere, nor bring about a sense of commitment on the part of wor&ers. + combination of social welfare, emotional welfare and economic welfare together would achie$e good results.

=. Social Lia"ility of Industry! Industry, according to this principle, has an obligation or duty towards its employees to loo& after their welfare. The constitution of India also emphasi'es this aspect of labour welfare.

>. I pact on Efficiency! This plays an important role in welfare ser$ices, and is based on the relationship between welfare and efficiency, though it is
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difficult to measure this relationship. Irogrammes for housing, education and training, the pro$ision of balanced diet and family planning measures are some of the important programmes of labour welfare which increases the efficiency of the wor&ers, especially in underde$eloped or de$eloping countries.

/. Increase in %ersonality! The de$elopment of the human personality is gi$en 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 ser$ices. %oth inside and outside the factory, that is, pro$ide intra-mural and extra-mural labour welfare ser$ices.

?. Totality of -elfare! This emphasi'es that the concept of labour welfare must spread throughout the hierarchy of an organi'ation. 8mployees at all le$els must accept this total concept of labour welfare programme will ne$er really get off the ground.

@. Co!ordination or Inte/ration! This plays an important role in the success of welfare ser$ices. )rom this angle, a co-ordinated approach will promote a healthy de$elopment of the wor&er in his wor&, home and community. This is essential for the sa&e of harmony and continuity in labour welfare ser$ices.

0. De ocratic 7alues! The co-operation of the wor&er is the basis of this principle. 4onsultation with, and the agreement of wor&ers in, the formulation and implementation of labour welfare ser$ices are $ery necessary for their success. This principle is based on the assumption that the wor&er is Na mature and rational indi$idual.N Industrial democracy is the dri$ing force here. Cor&ers also de$elop a sense of pride when they are made to feel that labour welfare programmes are created by them and for them.

9. Responsi"ility! This recogni'es the fact that both employers and wor&ers are responsible for labour welfare. Trade unions, too, are in$ol$ed in these
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programmes in healthy manner, for basically labour welfare belongs to the domain of trade union acti$ity. )urther, when responsibility is shared by different groups, labour welfare wor& becomes simpler and easier.

.. Accounta"ility! This may also be called the Irinciple of 8$aluation. Here, one responsible person gi$es an assessment or e$aluation of existing welfare ser$ices on a periodical basis to a higher authority. This is $ery necessary, for then one can ;udge and analy'e the success of labour welfare programmes.

-J. Ti ely! The timeliness of any ser$ice helps in its success. To identify the labour problem and to disco$er what &ind of help is necessary to sol$e it and when to pro$ide this help are all $ery necessary in planning labour welfare programmes. Timely action in the proper direction is essential in any &ind of social wor&.

East, but not the least is the fact that labour welfare must aim at helping wor&ers to help themsel$es in the long run. This helps them to become more responsible and more efficient. LABOUR WELFARE SERVICES WITH SPECIAL REFERENCE TO OCCUPATION, SAFETY, HEALTH AND ENVIRONMENT EDUCATION: India has a $ery poor health and safety record. Buch legislation exists to protect wor&ers rights and health but they are not implemented properly and only an elite of wor&ers en;oy the benefits. (f the total wor&force only 9.9 percent are organised. The wor&force is abundant, low s&illed and easily a$ailable and the high rate of unemployment ma&es them susceptible to exploitation. 5etting wor& is more important than the ha'ards in$ol$ed. Constitutional %rovision for Occupational Safety and 9ealt( +rticle =/ < *o child below the age of fourteen years shall be employed to wor& in any factory or mine or engaged in other ha'ardous employment. +rticle >. (e L f) - The state shall in particular direct its policy towards securing
19

e) that the health and strength of wor&ers, men and women, and the tender age of children are not abused and that citi'ens are not forced by economic necessity to enter $ocations unsuited to their age and strength1 f) that children are gi$en opportunities and facilities to de$elop in healthy manner and in conditions of freedom and dignity and that childhood and youth are protected against exploitation and against moral and material abandonment. +rticle /= < The state shall ma&e pro$ision for securing ;ust and humane conditions of wor& and maternity relief. National %olicy 6afety and health occupies a $ery significant position in India s constitution which prohibits employment of children under -/ in factories, mines and in ha'ardous occupations. Iolicy aims to protect the health and strength of all wor&ers. It pre$ents employment in occupations unsuitable for the age and strength of the wor&ers. It is the policy of the state to ma&e pro$isions for securing ;ust and humane conditions of wor&. The constitution pro$ides a broad framewor& under which policies and programmes for occupational health and safety could be established. National Le/islation Eegislation pro$ides an essential foundation for safety. To be meaningful and effecti$e legislation should be re$iewed and updated regularly as scientific &nowledge de$elops. India has had legislation on occupational health and safety for o$er ?J years. India was under %ritish rule in the -.th and the early =Jth century, hence the principal health and safety laws are based on the %ritish )actories +ct. The )actories +ct, -./9 is amended from time to time, and especially after the %hopal 5as disaster 36ee box7, which could ha$e been pre$ented. This demanded a shift from dealing with disaster (or disease) to pre$ent its occurrence. The )actories (+mendment) +ct came into force on - ,ecember -.90. (ther laws ha$e also been framed for wor&ers welfare. OS9 Le/islation
20

The )actories +ct -./9, amended -.?/, -.0J, -.0@, -.90 The Bines +ct, -.?= The ,oc& wor&ers (safety, health and welfare) +ct, -.9@ The Ilantation Eabour +ct, -.?The 8xplosi$es +ct, -99/ The Ietroleum +ct, -.>/ The Insecticide +ct, -.@9 The Indian %oilers +ct, -.=> The Indian 8lectricity +ct, -.-J The ,angerous Bachines (Regulations) +ct, -.9> The Indian +tomic 8nergy +ct, -.@= The Radiological Irotection Rules, -.0The Banufacture, 6torage and Import of Ha'ardous 4hemicals Rules, -.9.

5actories Act (n health this law re:uires employers! to ensure cleanliness of the wor&place1 ma&e effecti$e arrangement for treatment and disposal of waste and effluent1

ma&e suitable and effecti$e pro$isions for ade:uate $entilation1 maintain temperatures to secure reasonable comfort for wor&ers1 remo$e any dust or fumes from the wor&place which may be in;urious to wor&ers1 pre$ent o$ercrowding by maintaining a specific cubic area for each wor&er1 pro$ide sufficient and suitable light1
21

ma&e suitable arrangements to pro$ide clean drin&ing water con$eniently situated for all wor&ers and1 pro$ide suitable latrines and urinals to specified standards.

The )actories +ct re:uires employers to pro$ide basic safety measures including! securely guarding all parts of dangerous machinery1 precautions for wor&ing on machinery1

emergency de$ices for cutting off power1 maintain hoists and lifts1 lifting machines, chains, ropes, and other lifting tac&le must be maintained in good condition1 test pressurised $essels regularly1 ensure wal&ing surfaces are of sound construction1 pro$ide protecti$e e:uipment1 measures to remo$e gas and dust before entering confined places1 measures to pre$ent fires.

The factory occupier must disclose information about! dangers, health ha'ards, and measures to protect wor&ers from substances or materials in manufacture, transportation, storage etc. to the wor&ers, the chief factory inspector, and the local authority1 safety and policy1

:uantity and characteristics and disposal of substances and waste1 emergency plans to wor&ers and the local public1 handling, using, transportation, storage and disposal of ha'ardous substances to wor&ers and the local public.

The )actories +ct also binds the employer to maintain up-to-date health records of wor&ers, and to appoint a person experienced in handling ha'ardous substances to super$ise handling, and pro$ide protecti$e measures and regular medical examinations.
22

The 4hief )actory Inspector of the )actory Inspectorate enforces The )actories +ct. %ut a ma;or problem is poor enforcement of the law. There are too few )actory Inspectors who are not e$en pro$ided with ade:uate resources. 'ines Act This law specifies! minimum age of employment is -91 one day of rest per wee&1

limited wor&ing hours1 no underground wor& for women1 pro$ision of clean water and medical facilities1 constitution of tripartite committees1 no unsafe mines1 right of inspectors to sur$ey safety and health1 emergency plans1 notification of occupational diseases.

Occupational Accidents The IE( estimates that o$er half the world s occupational accidents occur in the +sia-Iacific region. (ccupational accidents are grossly under-reported in India. 8$en so official figures in -../ showed => in;uries per -,JJJ factory wor&ers. This compares with four per -,JJJ wor&ers in Oapan in -..=, and -J per -,JJJ in 6ingapore. In any case the factories +ct does not co$er the $ast ma;ority of wor&ers because they wor& in the informal sector where accidents are not reported at all. This in$alidates go$ernment statistics. Occupational Disease The )actories +ct re:uires notification of occupational diseases to the
23

go$ernment, but they are hardly reported, allowing official statistics to compare well with industrialised countries. Howe$er independent studies report the existence of many occupational diseases, most notably respiratory diseases due to dust. +griculture is India s largest employer. Cor&ers are exposed to a wide $ariety of dust in its fields and factories. The most common disease is bysinossis caused by cotton dust in the textile industry. +sthma and allergies are common among wor&ers in grain and tea production. 4hronic lung diseases such as silicosis and pneumoconiosis are due to mineral dust. Hea$y metal poisoning especially lead, chromium, pesticide and other chemical poisoning are :uite common. ,eafness, largely undiagnosed and unreported, is $ery common in industries li&e engineering, hea$y machinery, textile and manufacturing. )ew doctors are able to diagnose occupational disease. 6ilicosis and bysinossis are often diagnosed as tuberculosis. ,octors are not trained in occupational disease. ,ue largely to po$erty wor&ers continue to wor& e$en when sic& or in;ured. -or# en<s Co pensation There are two main laws for compensating occupational diseases and accidents! Cor&man s 4ompensation +ct 8mployees 6tate Insurance (86I) The procedure for compensation is so cumbersome that $ery few damaged wor&ers recei$e compensation. 8$en though wor&ers are insured under the 86I act getting compensation is enormously difficult. Occupational Safety and 9ealt( Institutions There are two main institutions de$oted to occupational health and safety! 4entral Eabour Institute, Bumbai 3%ombay7 and Regional Eabour Institutes in 4alcutta, Panpur and 4hennai under Binistry of Eabour1

24

*ational Institute of (ccupational Health, +hmedabad and regional institutes in 4alcutta and %angalore under the Indian 4ouncil of Bedical Research (I4BR) ministry of health.

The *ational Institute of (ccupational Health (*I(H) has many facilities this field. It is :uite acti$e as a research institute but has no system for consultation with employers or trade unions.

7oluntary Or/anisations 6ince most Indian wor&ers are unorganised, $oluntary organisations play a $ital role in reaching and highlighting their problems. Howe$er o$er the last decade the $oluntary sector has generated awareness about health and safety. In India *5(s wor&ing on labour rights and occupational health and safety ha$e deciphered technical ;argon and try to ma&e ordinary wor&ers understand that they can handle their own issues with a bit of training and become less dependent on experts who are not always approachable or a$ailable. Conclusion (ccupational health and safety cannot be isolated from other problems li&e wages or ;ob security. The &ey ;ob is to ma&e wor&ers aware of the importance of occupational ha'ards. Trade unions are reluctant to organise on occupational health and safety, mostly due to ignorance and lac& of awareness. It is unli&ely that things will impro$e unless wor&ers participate in the process. 8$en though the )actories +ct specifies wor&er participation in safety management and safety committee membership, such committees are largely a paper exercise. It is almost certain that a wor&er on the shop floor &nows about an ha'ard long before anyone else including the experts . Thus, his in$ol$ement in health and safety matters is essential. 6(opal ,as Disaster
25

This happened on = ,ecember -.9/, when o$er /J tonnes of highly poisonous methyl isocyanate gas lea&ed out of the pesticide factory of Dnion 4arbide at %hopal in Badhya Iradesh state. Thousands immediately died of poisoning. +t least =J,JJJ ha$e died in the years since, and ten more die e$ery month due to exposure-related diseases. In the scandal that followed the disaster the company was ta&en o$er - chairman, Robert Pennedy who had >?,JJJ shares in the company, profited by Q0J,JJJ. Dnion 4arbide s policy at the plant was to switch off the refrigeration unit to sa$e about Rs.0JJ (D6 Q?J) per day. If the cooling unit been switched on, a runaway reaction could ha$e been delayed or pre$ented. The factory wor&force had been hal$ed to maximise profits, training was reduced from six months to -? days, and routine maintenance was $ery slac&. 8:ually o$er-confident was O. Bu&und, 4arbide s wor&s manager, who said, "The gas lea& ;ust can t be from my plant. The plant is shut down. Our tec(nolo/y +ust can<t /o .ron/. -e +ust can<t (ave suc( lea#s.# +s soon as it was confirmed that the gas was from the Dnion 4arbide plant, the chief medical officer denied that the gas was fatal, instead he described it as a minor irritant. The -=J,JJJ $ictims who sur$i$ed howe$er face a future of misery. They suffer from acute breathlessness, brain damage, menstrual chaos, and loss of the body s immune system leading it to be dubbed chemical +I,6. The first claim against Dnion 4arbide sued for damages of up to Q-? billion. Then without any consultation with $ictims representati$es, the go$ernment reduced the claim to ;ust o$er Q> billion. )our years later with no consultation, the go$ernment settled for Q/0J million. + less damaging incident had occurred in -.9=, but despite the warning this should ha$e gi$en the company, T 6 Kiyogi, Eabour Binister at the time said, "+ sum of Rs. =? crore 3D6Q-0.9 million at -.9= exchange rates7 has been in$ested in this unit. The factory is not a small stone, which can be
26

shifted elsewhere. T(ere is no dan/er to 6(opal4 nor .ill t(ere ever "e.#

'eanin/ of la"our The term labour includes any person who puts in physical or mental effort perform any tas&. Eabour is the physical or mental effort engaged in by any person or persons for a stipulated sum of money, or for wages. The persons engaged in the performance of physical wor& are also called labour. The word "labour# means any producti$ity acti$ity. 'eanin/ of .elfare The term welfare suggests the state of well being and implies wholesomeness of the human being. It is desirable state of existence in$ol$ing the mental, physical, moral and emotional facets of a person Therefore the phrase labour welfare means the adoption of measure to promote the physical, emotional, psychological and general well being of the wor&ing population. Celfare wor&s in any industry aims, or should aim, at impro$ing the wor&ing and li$ing conditions of wor&ers and their families. 4oncept of Eabour Celfare

Chile in the early years of industrialisation labour policy was preoccupied mainly with the organi'ed sections of the labour force, growing attention is being paid to the interests of the wor&ers in the unorgani'ed sector without detracting from the concern of 5o$ernment for the impro$ement of the real-earnings and wor&ing conditions of those in the organised sector. o The legislati$e measures adopted during the last decade are e$idence of di$ersification of labour policy to progressi$ely fulfill the ,irecti$e Irinciples of the 4onstitution. The more important of the measures ta&en since -.0J are the 4ontract Eabour (Regulation and +bolition) +ct to regulate the employment of contract labour and to pro$ide for its abolition in certain circumstances1 the %onded Eabour 6ystem (+bolition) +ct for the abolition of the bonded labour system and to free laborers who ha$e incurred a bonded debt1 the %eedi Cor&ers
27

Celfare +cts to, promote the welfare of persons engaged in %eedi establishments, the +cts to promote the welfare of wor&ers in Iron (re, Banganese (re, Eimestone and ,olomite mines, the 6ales Iromotion 8mployees (4onditions of 6er$ice) +ct to regulate conditions of ser$ice of sales promotion employees1 the 8:ual Remuneration +ct for the Iayment of e:ual remuneration to men and women wor&ers and for the pre$ention of discrimination against women in the matter of employment, the 8mployees )amily Iension 6cheme, the 8mployees ,eposit Ein&ed Insurance 6cheme and the Inter-6tate Bigrant Cor&men (Regulation of 8mployment and 4onditions of 6er$ice) +ct. + new +rticle />-+ was also inserted in the 4onstitution under the ,irecti$e Irinciples of 6tate Iolicy to secure the participation of wor&ers in management in order to create better mutual understanding between labour and management and facilitate the adoption, on both sides, of an ob;ecti$e approach towards the problems of industry and the wor&ers.

Eabour welfare is flexible and elastic and differs widely with time, region, industry, social $alue and custom, degree of industriali'ation, the general socio- economic de$elopment of the people and the political ideologies pre$ailing at a particular time. It is also moulded according to the age-group, sex, socio-cultural bac&ground, marital and economic status and education le$el of the wor&ers in $arious industries. Eabour policy deri$es its philosophy and content from the ,irecti$e Irinciples of 6tate Iolicy as laid down in the 4onstitution and has been e$ol$ing in response to the specific needs of the situation and to suit the re:uirements of planned economic de$elopment and social ;ustice. It is the product of tripartite consultations in which representati$es of the wor&ing class, the employers and go$ernments ha$e been participating at $arious le$els. Iarticipation of the parties so $itally concerned lends the product the strength and character of a national policy. The aim is to promote cooperation between wor&ers and employers in order to impro$e production and wor&ing conditions and to promote the interests of the community at large. T(e La"our Investi/ation Co -elfare<: ittee preferred to include under = La"our

28

"+nything done for the intellectual, physical, moral and economics betterment for the wor&ers, whether by employees, by go$ernment or other agencies, o$er and abo$e what is laid down by law or what is normally expected of the contractual benefits for which wor&er may ha$e bargained.#

International La"our Or/ani3ation >ILO? refers to La"our -elfare as!

"such ser$ices, facilities and amenities as may be established in or in the $icinity of underta&ings to enable the persons employed in them to perform their wor& in healthy, congenial surroundings and pro$ided with amenities conduci$e to good health and high morale#
The 8*4G4E(I+8,I+ of 6ocial science has been defined Eabour welfare as"The $oluntary efforts of the employees to establish, within the exiting industrial system, wor&ing and sometimes, li$ing and cultural conditions of employees beyond what is re:uired by law, the custom of the country and the condition of the mar&et.#

UNIT!II LA6OUR %RO6LE'S: a). +%68*T88I6B! The study of absenteeism is $ery important because it affects the production ad$ersely as the wor& schedules are upset and delayed and conse:uently management has to gi$e o$ertime wages which increase the cost of production. The rate of absenteeism may be calculated by applying the following formula! 'an days lost durin/ a period Rate of a"senteeis @ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!A $BB Avera/e nu "er of .or#ers A No. of .or# days
29

Thus absenteeism is the problem from management point of $iew, because it ha to ma&e alternati$e arrangement if wor&er absents himself without any prior notice.

4auses for absenteeism!

)or this purpose, proper record should be maintained by the personnel department for $arious caused fo absenteeism stating age, sex, day of the wee& and classes of ;obs. The following reasons may be accounted for absenteeism in industries! $. 6ic&ness is the main reason of absenteeism running as high as ?J R of the absenteeism in some cases. ). Industrial accidents and occupational diseases bring about absenteeism, depending upon the nature of the process and machines used. *. Eac& of interest or a feeling of responsibility and worth-whileness are fundamental causes of absenteeism. C. +fter pay-day, before and offer a holiday are some of the contributors of a absenteeism. D. *ight shift duties and climates are some of the responsible factors of absenteeism.

E. +ttitude of mind caused by en$ironmental and sociological factors. F. There are miscellaneous groups of causes which promote absenteeism such asreligious and social festi$als, bad weather, lac& of transportation, migratory character of wor&ers, subsidiary li$elihood, search for another ;ob, etc. G. Bisbeha$ior by the super$isor and difference of opinions with the management may also contribute to the absenteeism. 'easure to c(ec# A"senteeis :
30

+bsenteeism can be controlled only when its causes are unco$ered and the measures to be ta&en depend upon its causes.

6ome causes are uncontrollable while some others can easily be controllable. The management may use the following measures to combat the e$il! $. The new employee should be introduced in such a way that their critical attitude is reduced.

). The management should classify the causes of absenteeism and the chronic offenders. The chronic offenders may be ridiculed by publishing their names. ,isciplinary actions may be ta&en against such offends. *. The absent wor&er should be inter$iewed with a $iew to bring about the causes of his absence. 6uper$isor should impress upon the seriousness of his absence. C. Cor&ing condition, shout be impro$ed. D. The rates of wages should be attracti$e to wor&ers. Incenti$e methods of wage payment should be introduced. *ew schemes may also be introduced to moti$ate the wor&ers. La"our Turnover of la"our pro"le s: In e$ery organi'ation employees constantly ;oin and lea$e the institution for one reason or the other.

Ierson may ha$e the organi'ation by tendering his resignation or by retrenchment or by retirement. The rate of turno$er may be calculated on the basis of persons coming to and going from the organi'ations composed to the total number of wor&ers on the pay roll. It may be calculated as follows!

31

No of .or#ers +oined and left La"our Turnover Rate@ !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! A $BB Avera/e nu "er of -or#ers on pay!roll

Eabour in$estigation committee has defined the labour turno$er as "It is a measure of the extent to which old employees lea$e and new wor&ers enter the ser$ice of a concern in a certain period.# Eabour turno$er is an expensi$e method because the experienced and trained wor&ers lea$e the organi'ation and the organisation has to spend much on the training of the new wor&ers. Causes of La"our Turnover! 6eparation of employee from the organisation whether he lea$es on their own accord or they are discharged, is a matter of concern for the organisation.

The management should study the causes of turno$er and ta&e necessary steps to remo$e them, if possible form the control point of $iew, the causes may be classified into two groups-a$oidable and una$oidable.

$. Avoida"le Causes. +mong the a$oidable causes, the most important causes are which may be caused by the seasonal character of he business, shortage of material, inade:uate planning lac& of management foresight and determination etc. The other a$oidable causes may be dissatisfaction with ;ob, remuneration, hours of wor& and wor&ing conditions and bad relations with super$isors etc. ). Unavoida"le Causes. There are certain causes which are not due to the negligence of the management but due to certain other causes which are beyond the control of management . + few are the following! a? Iersonal betterment. "? ,omestic affairs such as marriage and pregnancy in case of women employees.
32

c?

Illness and accident etc.

d? Dnsuitable for ;ob on misconduct or his part. e? Housing or transport problem. f? Retirement of death etc. The reasons for labour turno$er may be ascertained by personal inter$iews with the outgoing employees. Control of La"our turnover: High rate of Eabour Turno$er is detrimental to the interests of wor&ers and employers both.

Remedial measures should be ta&en to control the labour turno$er after ascertaining the causes, if they are a$oidable. Remedial measures may in$ol$e the following! $. Iroper planning of ma power re:uirements to a$id redundancies.

). Eabour policy should be based on sound principles of personnel management in relation to recruitment, promotion, placement and training. *. C. Introduction Iro$ision of of proper-wage reasonable incenti$es and and promotion welfare plans.

amenities

measures.

D. 6etting up f machinery for ascertaining the cause of grie$ance and redress thereof. E. Iro$isions of retirement benefits. F. Iro$isions of proper channel of communication to impro$e the morale of the employees.
33

G.

Cor&ing

conditions

and

wor&

en$ironment

should

be

impro$ed.

H. The attitude of employers should be changed. Their tendency of replacing old wor&ers by the new recruiters to a$oid certain legal pro$isions should be discounted.

34