OVERVIEW OF Unit II.

Employee Relations

EMPLOYEE WELFARE And Welfare.

PRINCIPLES OF EMPLOYEE/
LABOUR WELFARE
The success of welfare activities depends on the approach which has been taken into
account in providing such activities to the employees.
Welfare policy should be based on idealistic morale and human values.
Employers sometime consider such activities as a legal liability. Similarly workers
also look upon welfare activities as a matter of inherent right. However both the
parties have to accept welfare as activities as a matter of mutual concern.
1) Principles of Adequacy of Wages
2) Principles of Social Liability of Industry
3) Principles of Impact on Efficiency
4) Principle of Repersonalization
5) Principle of Totality of Welfare
6) Principle of Co-ordination or Integration
7) Principle of Democratic Values or Association
8. Principle of Responsibility
9. Principle of Accountability
10. Principle of Timeliness
11. Principle of Self- help
SCOPE OF EMPLOYEE/
LABOUR WELFARE IN INDIA
 Labour welfare activities is combination of various steps so as to make the industry
and society more powerful.
 In any industry good relations between the management and workers depend upon
the degree of mutual confidence. This in turn, depends upon the recognition by the
labour of the goodwill and integrity of the organization in the day by day handling of
questions which are of mutual concern.
 The basic needs of labour are freedom from fear, security of employement and
freedom from want.
Labour welfare activities are based on plea that higher productivity requires more
than modern machinery and hard work. It also requires co-operation endeavor of
both the parties, labour and management.
 The worker has a lot of knowledge and experience at his job. If rightly directed
and fully used, it would make a great contribution to the prosperity of the
organization.
 The scope of welfare thus requires comprehensive analysis that has been
considered by the Labour Investigation Committee(1946), Govt. of India.
 In this it has clearly mentioned the scope of such activities “ For our part we prefer to
include under welfare activities anything done for the intellectual, physical, moral and economic
betterment of the workers, whether by employer, by govt. or by other agencies, over and above what
is laid down by law or what is normally expected as part pf contractual benefits for which the
workers may have bargained”.
TYPES OF WELFARE
SERVICES- INDIVIDUAL &
GROUP
1. Statutory Welfare: Statutory provisions relating to welfare of workers have been promulgated by
the govt. of India in different enactments viz.
oFactories Act, 1948
oMines Act, 1952
oThe Motor Transport Workers Act, 1961
oDock workers Safety, Health Act, 1951
oThe Merchant Act 1961
oPlantation Labour Act, 1951
oThe Merchant Shipping Act,1958
oCoal mines Lobour Welfare Fund, 1974
oMine lobour Welfare Fund, etc.
2. Voluntary Welfare:
It includes all those activities which employers undertake for their employees on
voluntary basis.
It is a philanthropic approach on the part of the employer to provide various welfare
facilities to the workers over and above the statutory measures.
1) Welfare amenities within the precincts of the establishment (intra-mural):
These welfare amenities are those provided within the premises of the
establishments such as washing and bathing facilities, rest rooms and canteens,
arrangement for drinking water, health care services like this and other.
2) Welfare amenities outside the precincts of the establishment (extra-mural):
These welfare amenities are those provided outside the premises of the
establishments such as maternity benefit, social insurance measures including
sports, cultural activities, library and reading room, holiday homes like this and
other
HISTORICAL DEVELOPMENTS OF
EMPLOYEE/ LABOUR WELFARE IN
INDIA
 The lobour legislations of India after independence derive strength mainly from the
thought articulated by key national leaders throughout the period of struggle for
independence, partially from the discussion of the meetings, partially from the
provision of the Indian Constitution an the International Labour Resolutions and
Endorsements.
 The fundamental rights include right to work as per one’s choice, right against
discrimination, prohibition of child labour, humane conditions of work, social
security, reasonable wages, redressal of grievances, right to organize and form trade
unions, collective bargaining and participation in management.
 At present, there are over 150 state and central laws in India which govern various
aspects of labour welfare. Unfortunately, while there is a proliferation of legislation,
the implementation has been weak.
PRE- INDEPENDENCE ERA:
The First World War Period: (1914-18)
• Throughout the First World War, there was a fast increase in the number of labour intensive
factories and other allied establishments.
• It is also important to acknowledgement that the establishment of the International
Labour Organization (ILO) in 1919 .
• Due to industrial instability, the Govt. of India enacted the Indian Factories
(Amendments) Act, 1922 which was applicable to all establishments woman worker were
also protected by making suitable welfare provisions for them.
• Eventually it led to the enactment of Factories Act, 1934.
• Formation of Labour Investigation Committee was the next most significant step in the
development of Labour Welfare in India.
P0ST INDEPENDENCE ERA:
• Factories Act, 1948, Plantation Labour Act, 1951 and Mines Act, 1952 were the first
of few legislations with significant welfare provisions for the workers.
• Coal Mines Labour Welfare Fund Act of 1947, the Iron Ore Mines Labour Welfare
Cess Act of 1961, manganese mines in 1978 and Limestone and Dolomite Labour
Welfare Act of 1972.
•Beedi and Cigar workers Act 1966, the Motor Transport Workers Act 1961 and
Contract Labour Act 1970.
•In addition to these welfare measures many other welfare legislations were enacted
by the both Central Govt. and Various State Govt. In this way, the Central Govt. and
the Govt. at various states took an active part in labour welfare activities.
THE FIVE YEARS PLAN AND
LABOUR WELFARE:
During the First Five Year Plan ( 1951- 1956)
Govt. did considerable amount of work for the welfare measures of the labour classes
of society. During this period important Act such as the Plantation Labour Act,1951,
the Employees Provident Fund Act, 1952 the Mines Act, 1952 were enacted.
During Second Five Year Plan ( 1956- 1961)
It provided impetus for further more welfare measures and legislation for labour. New
laws were also established to ensure welfare measures for merchant seamen and motor
transport workers.
The employees state insurance scheme, 1948 was implemented and to cover more
employees in the factories.
 The Third Five year plan ( 1961-66)
Various legislative provisions were also enacted during this plan period which include
the Apprentices Act, 1961; Iron-Ore Mines Labour welfare Cess Act, 1961; Maternity
Benefit Act, 1961 and Payment of Bonus Act, 1965.
During this period, co-operative housing organization also started making their
amendments gradually.
The Fourth Five year Plan ( 1969-19 74)
It was more about the expansion and implementation of the Employees State
Insurance (ESI) Act to provide health related facilities to the families of insured
worker as well as labourers working in shops and commercial establishments.
The Contract Labour Regulation and Abolition Act of 1970.
In 1972 Govt. enacted an important statute as the Payment of Gratuity Act,
1972(bonuses) for the welfare of retiring industrial employees.
 The Fifth Five Year Plan (1974-1979)
• New additional requirement for the most of the existing training institutions, such as
the Central Training Institute, and Central Staff Training and Research Institute;
• Strengthening and expansion of the Advanced Training Institute throughout the
country;
• Extension of the Apprenticeship Training Programme;
• Development and establishment of Vocational Training in Women’s Occupatios;
• All other kinds of schemes related to research, survey and studies to be undertaken
by various organisations and institutes.
The Sixth Five Year Plan ( 1980-1985):
It was more about effective implementation of the welfare measures of prior
legislative enactments, and extension of coverage of Act such as the Employees
Provident Fund, Employees State Insurance Scheme and the Family Pension Scheme,
Special Scheme.
The Seventh Five Year Plan( 1985- 1989)
It focused on enhancement in working conditions of informal sector worker both in
the rural areas and also in the urban areas. During this period the stress was on
improvement in capacity development, efficiency and productive.
The Eight Five Year Plan ( 1992- 1997)
This five year plan put great emphasis on resources mobilisation from public
enterprises. In this period, the great work had been on the aspect of enhancement for
the quality of enhancement for the quality of labour work, productivity, skills
development, working conditions, provisions for welfare measures and the social
security, especially to those working in the unorganised sectors without any socia-
economic security.
The Ninth Five Year Plan ( 1997- 2002)
It emphasised the enhancement of labour welfare measures, increasing productivity
through skills development, and also the adequate provisions were taken for social
security of workers.
The Tenth Five Year Plan(2002- 2007)
It given more weight on improving the working conditions, better industrial
relations, proper enforcement of Labour Legislations and welfare measures, and also
launching various schemes for the welfare activities for all industrial workers and
their families.
The Eleventh Five Year Plan: (2007-2012)
It stressed on unemployment and underemployement issue, the promotion and
generation of regular wage employment opportunities and addressing the continuing
problems of workers employed in unorganized sector all over the country.
The Twelveth Five Year Plan: ( 2012- 2017)
It was more about skill building as an instrument to improve the effectiveness and
contribution of labour to the overall production. Enactments and scheme such as
Mahatma Gandhi National Rural Employment Guarantee Act, Swarnajayanti
Gram Swarojgar Yojana and National rural Livelihood Mission were introduced
to restructure and strengthen the various employmen promotion schemes for the
bottom of the pyramid.
EMPLOYEE/ LOABOUR
WELFARE PRACTICES IN
INDIA:
 The concept of labour welfare in India was mentiones in the resolution passed by
the Indian National Congress on Fundamental Rights and Economic
Programme in its Karachi session in 1931.
 The resolution stated that the economic based life in the country must be in line
with the Principle of Justice.
 Labour welfare is a broad concept referring to a state of living of an individual or a
group as workman within and outside of premises of factory, in an acceptable
interaction with the total environment- ecological, economic and social harmony.
 It can be broadly categorized in five areas:
1. Statutory provision by different legal legislation in forced by central
government.
2. Welfare measures given by state govt. agencies,
3. Welfare measures given by employers,
4. Welfare measures forced by trade unions,
5. Various welfare activities acted upon by the voluntary social agencies.
 Intra- Mural
 Extra- Mural
APPROACHES TO EMPLOYEE/
LABOUR WELFARE IN INDIA:
Paternalisti
c

Approache
Humanistic Atomistic
s

Mechanisti
c
THEORIES OF EMPLOYEE
WELFARE:
1. Policing Theory

2. Philanthropic Theory

3. Trusteeship Theory

4. Public Relations Theory

5. Functional Theory
ADMINISTRATION OF
WELFARE FACILITIES:

Welfare policy Yes or No, Objectives,

EvaluationWelfare
Organisation Trend Analysis
Officer Opinion
Line Manager,
Approach, Range, Timliness
Human Resource Manager
ASSESSMENT OF
EFFECTIVENESS:
1. TREND ANALYSIS:
Welfare is sought to be justified because of its impact on efficiency, turnover and
social evils, HR expert must assess the impact of each of these, before and after a
particular welfare activity is being introduced.
If post-implementation shows a substantial improvement, the welfare is worth
continuing. The scheme deserves to be discontinued if there is no improvement or if
there is a fall in any of the areas.
2.Employee Opinion Survey:
It is also known as staff survey, which gives your organization a measure of
employee attitude, employee satisfaction, employee motivation and other similar
attributes to understand their strengths and weaknesses, their inclination, their
concerns etc.