Labour Welfare
Labour Welfare - Concept
• Robert Orwell was the father of Labour Welfare Administration.
• 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. The welfare measures need not be in
monetary terms only but in any kind/forms.
• Labour 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, services, facilities and amenities like canteens, rest and
recreational facilities, sanitary and medical facilities, arrangements for
travel to and from place of work, accommodation of workers etc enabling
the persons employed to perform their work in healthy, congenial
surroundings and conducive to good health.
Labor welfare has the following objectives:
• 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,
cultural and material conditions of living of the workers.
Importance of Labour Welfare
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Providing welfare schemes helps to create efficient, healthy, loyal and
satisfied labor force in the organization. The purpose of providing such
facilities is to make their work life better and also to raise their standard of
living.
The important benefits of welfare measures can be summarized as follows:
They lead to better physical and mental health of workers and thus promote
a healthy work environment
Housing schemes, medical benefits, education and recreation facilities for
workers’ families help in raising their standards of living. Workers pay more
attention towards work and this increases their productivity.
By providing welfare facilities employers get a more stable labor force as
workers take active interest in their jobs and work with a feeling of
involvement and participation.
Employee welfare measures increase the productivity of organization and
promote healthy industrial relations thereby maintaining industrial peace.
The social evils prevalent among the labors such as substance abuse, etc are
reduced to a greater extent by the welfare policies.
Basic Features
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The basic features of labor welfare measures are as follows:
Labor welfare includes various facilities, services and amenities provided to
workers for improving their health, efficiency, economic betterment and
social status.
Welfare measures are in addition to regular wages and other economic
benefits available to workers due to legal provisions and collective
bargaining
Labor welfare schemes are flexible and ever-changing. New welfare
measures are added to the existing ones from time to time.
Welfare measures may be introduced by the employers, government,
employees or by any social or charitable agency.
The purpose of labor welfare is to bring about the development of the
whole personality of the workers to make a better workforce.
It is the work usually undertaken within the premises or in the vicinity of
the undertakings for the benefit of the employees and members of their
families.
It is a broad term which covers social security along with items like medical
aid, crèches, canteens, recreation, housing, adult education etc
Need for Labour Welfare
• The need for labour welfare arises from the very nature of the industrial system
characterised by 2 basic factors– The conditions under which the work is carried on are not congenial for health
– When a laborer joins an industry, he has to work in an entirely strange
atmosphere, which creates problems of adjustments.
• The need was emphasized in free India, by the Constitution of India in
– Article 41: The State shall within the limits of its economic capacity and
development, make effective provision for securing the right to work, to
education and to public assistance in cases of unemployment, old age, sickness
and disablement and in other cases, of undeserved want.
– Article 42: The State shall make provision for securing just and humane
conditions of work and for maternity relief.
– Article 43: The State shall endeavour to secure, by suitable legislation or
economic organisation or in any other way, to all workers, agricultural,
industrial or otherwise, work , a wage, conditions of work ensuring a decent
standard of life and full enjoyment of leisure and social and cultural
opportunities; and in particular, the State shall endeavour to promote cottage
industries on an individual or co-operative basis in rural areas.
Aims of Labour Welfare Work
• The labour Welfare Work aims at providing such
service facilities and amenities as would enable
the employees to perform their work in healthy,
congenial surroundings conducive to good health
and high morale.
1. Its aim is partly humanistic as it enables the workers
to enjoy a fuller and richer life
2. It is partly economic because it improves the
efficiency of the worker and keeps him contented. It
minimises strikes or protests
3. It is partly civic because it develops a sense of
responsibility and dignity aiming the workers and
thus makes them worthy citizens of the nation.
Approaches to Labour Welfare
The issues of labour welfare may be studied from different angles• The location, where the amenities are provided, within and outside the
industrial undertakings. This has been classified in 2 categories
(a) Intramural - within the organisation
(b) Extra mural – outside the organisation
• The nature of amenities such as
a. ‘conditions of employment’ – hours of work, wages, holiday with pay, rest
intervals, sanitation, safely, recruitment of female, child labour etc
b. ‘living conditions of work people’ – cooperative societies, legal & medical aids,
housing etc
• The welfare activities are classified into 3 categories
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Statutory – Their implementation depends on the coercive power of the
government. The govt. enacts certain laws for the provision of labour welfare
and the employers have to observe the rules
Voluntary – Welfare activities that the employers, or philanthropic bodies
e.g. Y.M.C.A. or Trade Unions undertake on a voluntary basis
Mutual – All parties join hands together to bring about social and economic
upliftment of workers.
Intramural and Extramural Activities
Intra-mural – Welfare
amenities within the precincts
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Drinking water
Toilets
Crèche
Rest rooms
Health services
Washing facilities
Occupational safety
Uniforms and protective clothing
Shift allowance
Canteen
Recreation facilities
Extra-mural - Welfare amenities outside
the organisation
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Social insurance (gratuity, pension, PF, etc.)
Benevolent fund
Maternity benefits
Health and medical facilities
Education facilities
Housing facilities
Recreation facilities
Leave travel facilities
Workers cooperatives
Vocational training
Transport to and from place of work
Scope of labour welfare works
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Some of the items under which welfare work should be
conducted are:
Conditions of work environment – sanitation, cleanliness,
humidity, ventilation, lighting, sitting arrangements, operative
postures, rest time, breaks, drinking water etc
Workers’ health service –factory health centres, dispensary,
medical examinations, woman & child welfare work, crèches,
family welfare, education provision, cultural activities etc
Labour welfare programme – factory council, arbitration
council, social welfare departments etc
Labour’s economic welfare programmes – cooperatives, fair
price shops, health insurance, bonus schemes, transport
facilities etc
General welfare work – housing and family care
Techniques of Labour Welfare Work
• For the purpose of welfare work the labourer and his family need
to be treated as one unit, while the respective needs of each have
also to be kept in mind. Every item of welfare work should be
linked as progressive activities i.e. one activity must be related to
another simultaneously or as the next step.
• The workers should be actively associated in welfare work and
every activity should be conducted with their full consent and
cooperation.
• It is essential for formation of bipartite welfare committee
consisting of representatives of workers and management. The
committee should be entrusted with the duties of formulating
programmes and carrying them out. This creates confidence in the
minds of workers and once the welfare work is achieved the
workers themselves plan and carry out the welfare schemes.
• The welfare officer who is in charge of the welfare function should
correct, discipline, guide, counsel, instruct and inspire the welfare
committee.
Labour Welfare Activities undertaken in India:
• Indian Organisations – Various types of labour welfare activities
undertaken by Indian organisations are related to – Educational facilities
to children, medical facilities, transport facilities, recreational facilities,
housing facilities, consumer cooperative societies. Great stress is now laid
on supply of nutritive meals at subsidized rates, fair price grain shops,
preventive health measures etc
• Workers’ Organisation – Most Indian Trade Unions have not been able to
provide much welfare to its community. Some of the organisations that
have done notable work in the field of labour welfare are – The Textile
Labour Association of Ahmedabad, The Mill Mazdoor Union, Indore, The
Mazdoor Sabha, Kanpur, The Railwaymen’s, Union, Indian Federation of
Labour, U.P., The Rashtriya Mill Mazdoor Sangh, Bombay.
• Government – Labour Welfare has been included in all the Five Year
Plans. The Government of India has also laid down elaborate provisions
for labour welfare under various labor laws – The Factories Act, 1948, The
Plantations Act, 1951, The Mines Act, 1951, The Motor Transport Workers
Act, 1961, The merchant Shipping Act, 1958, The Dock Worker’s
Scheme,1961, The Contract Labour Act, 1970, The Inter State Migrant
Workmen Act, 1979. etc
Important Welfare Laws
1.
The Factories Act, 1948
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The Plantations Act, 1951
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The Mines Act, 1951
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Workmen’s Compensation Act, 1923
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Maternity Benefit Acts, 1941-1961
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The Industrial Disputes Act, 1947
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The Employees State Insurance Act, 1948
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Employees Provident Fund (EPF) Act, 1952
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Employees Family Pension Scheme, 1971
10. Payment of Gratuity Act, 1972
11. Central Government Health Scheme, 1954
12. The Motor Transport Workers Act, 1961
13. The Merchant Shipping Act, 1958
14. Dock Worker’s (Safety, Health and Welfare) Scheme, 1961
15. The Contract Labour (Regulation and Abolition) Act, 1970
Some of the statutory acts dealing with labour
welfare
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Workmen’s Compensation Act, 1923
Maternity Benefit Acts, 1941-1961
Coal Mines Provident Fund and Bonus Scheme Act, 1948
The Scaman’s Provident fund Act, 1966
The Plantation Labour Act, 1951
The Industrial Disputes Act, 1947
The Employees State Insurance Act, 1948
Employees Provident Fund (EPF) Act, 1952
Employees Family Pension Scheme, 1971
Payment of Gratuity Act, 1972
Central Government Health Scheme, 1954
Deposit Linked Insurance Scheme, August, 1976
Labour Welfare Officer
• The post of labour welfare officer was instituted
initially to
1. Eliminate the evils and malpractices in the
recruitment of labour
2. Develop and improve labour administration
3. Serve as a liaison with the State Labour
Commissioner
The legislative provision for the appointment of
welfare officers under the factories act was
made in 1948 under Section 49 (1) and (2)
Qualifications and functions of labour welfare officer
• Qualifications - A labour officer should have
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A university degree
Degree or diploma in social sciences or social work or social welfare
from any recognised institution
Adequate knowledge of the language spoken by a majority of the
workers in the area where the organisation is situated
• Functions –
– Supervision of safety, health and welfare programmes, working of joint
committees, redressal of workers’ grievances
– Counselling workers on personnel and family problem, their rights &
privileges
– Advising management regarding labour & welfare policies, training
programmes, fringe benefits etc
– Establishing liaison with workers to understand their needs, limitations
etc
– Working with management and workers to maintain harmonious
industrial relations, improve productivity
– Working with public for proper enforcement of various Acts, use of
community services etc.
Ethical Codes & Industrial Relations
Business ethics is a form of professional ethics that examines ethical principles and moral or ethical
problems that arise in a business environment. It applies to all aspects of business conduct and is
relevant to the conduct of individuals and entire organizations.
Ethical Codes are statements of the ethical principles, values and behaviours expected of employees and
employers in an industrial organisation. It is intended to assist workers and management to identify and
resolve ethical issues that might arise during their employment or in the course of their work. It is
designed to guide them in their dealings with colleagues, superiors, juniors and also the community.
The Industry is a complex organisation comprising diverse groups that have different relationships to
one another. It is essential that all members recognise and respect not only their own rights and
responsibilities, but also the rights and responsibilities of other members within the industry.
Ethical Codes are generally based on three universal ethical principles. These are:
1. Equity and Justice - People are to be treated fairly – not discriminated against, abused or exploited.
Justice is concerned with power sharing and preventing the abuse of power. In a just organisation all
members can access opportunities that allow for their full participation in the work place.
2. Respect for People - People should be treated as individuals with rights to be honoured and defended.
Respect empowers others to claim their rights and to achieve their potential. Respect for the rights of
other people is the basis on which individuals become members of the industry and accept their social
responsibilities to behave with integrity.
3. Personal and Professional Responsibility - The principle of taking personal and professional
responsibility requires that they exhibit courteous behaviour by upholding the standards expected of all
members of the Industry as part of achieving a common goal. They are expected to protect the rights of
others and respect the diversity of cultures and peoples. Those well-positioned to assert their rights
have a reciprocal duty to exercise care towards those who depend on them for their well-being.
Ethical Codes leads to good Industrial Relations
• It provide direction to employers and employees
around expected conduct in the Industry;
• Assist members in dealing with ethical issues in ways
that reflect the organisation’s values and standards;
• Promote professionalism and excellence;
• Express shared assumptions and organisational values;
• Provide workers and management with direction in
ethically ambiguous situations;
• Detail the Organisation’s social responsibilities; and
• Provide a statement on public accountability and
corporate governance.