Labour Welfare at Gupta Overseas Agra

OVERVIEW OF CURRENT INDIAN SITUATION

1. Introduction

1.1. The Constitution of India (“Constitution”) provides the jural basis for laws

regulating employment and labour in India (which are collectively also referred to

as „industrial laws‟ or „labour laws‟). The fundamental rights enshrined in the

Constitution provide inter alia for equality before the law and for prohibition of

discrimination on the basis of religion, caste, sex, etc. Similarly, the „Directive

Principles of State Policy‟ laid down in Part IV of the Constitution adjure the State

to inter alia ensure that all citizens have an adequate means of livelihood, right to

education, and just and humane conditions of work, and to further ensure

participation of workers in the management of industries.

1.2. The Constitution hence places emphasis on the concept of social justice as one

of the fundamental objects of State policy, and these protective provisions edify the

spirit of Indian industrial laws.

1.3. Labour welfare1, „trade union; industrial and labour disputes‟2 and factories3

are items found in the Concurrent List of the Constitution. This means that subject

to certain conditions, both the Parliament of India as well as the individual State

legislatures have the power to enact laws on these matters.

Social Security and Labour Welfare in India: A review

Social security is one of the pillars on which the structure of a welfare state rests, and it

constitutes the hard core of social policy in most countries. It is through social security

measures that the state attempts to maintain every citizen at a certain prescribed level

below which no one is allowed to fall. It is the security that society furnishes through

appropriate organization, against certain risks to which its members are exposed (ILO,

1942). Social security system comprises health and unemployment insurance, family

allowances, provident funds, pensions and gratuity schemes, and widows’ and

survivors’ allowances. The essential characteristics of social insurance schemes include

their compulsory and contributory nature; the members must first subscribe to a fund

from which benefits could be drawn later. On the other hand, social assistance is a

method according to which benefits are given to the needy persons, fulfilling the

prescribed conditions, by the government out of its own resources.

The present section reviews labour welfare activities in India with

particular emphasis on the unorganized sector. Although provisions for workmen’s

compensation in case of industrial accidents and maternity benefits for women

workforce had existed for long, a major breakthrough in the field of social security

came only after independence. The Constitution of India (Article 41) laid down that the

State shall make effective provision for securing the right to public assistance in case of

unemployment, old age, sickness and disablement and in other cases of underserved

want. The Government took several steps in compliance of the constitutional

requirements. The Workmen’s Compensation Act (1926) was suitably revised and

social insurance programmes were developed for industrial workers. Provident funds

and gratuity schemes were introduced in most industries, and maternity legislation was

overhauled. Subsequently, State governments instituted their own social assistance

programmes. The provisions for old age comprise pension, provident fund, and gratuity

schemes. All the three provisions are different forms of retirement benefits. Gratuity is a

lump sum payment made to a worker or to his/her heirs by the company on termination

of his/her service due to retirement, invalidity, retrenchment or death (Vajpayee and

Shanker, 1950).

Welfare

Welfare is the provision and maintenance of the conditions of life for individuals

by the community.

Welfare has a positive and negative aspect. Negative welfare is the provision by the

state or other institutions of a “safety net” or the distribution of benefits according

to some criteria; so-called positive welfare is the provision of opportunities for

people to “help themselves”. This contrast lies behind foreign-aid strategies which

concentrate on providing skills or “seed capital” rather than food parcels, for

example. The concept of positive and negative welfare is related to the concepts of

positive and negative freedom.

Marxists support both positive and negative welfare, but recognise that the market

inevitably generates inequality and a class of people inevitably the recipients of

welfare, who have nothing to sell but their labour power, alongside a class of

people who live off the proceeds of exploitation, invariably the providers of

welfare. Only by bringing the means of production under thorough going

proletarian democracy can the very need for welfare be abolished.

Concept of labour welfare

The concept of labour welfare is flexible and elastic and differs widely with

time, region, industry, social values and customs, degree of industrialization, the

general socio-economic development of the people and the political ideologies

prevailing at a particular time. It is also moulded according to the age-groups,

socio-cultural background, marital and economic status and educational level of

the workers in various industries

In its broad connotation, the term welfare refers to a state of living of an

individual or group in a desirable relationship with total environment – ecological,

economic, and social. Conceptually as well as operationally, labour welfare is a

part of social welfare which, in turn, is closely linked to the concept and the role of

the State. The concept of social welfare, in its narrow contours, has been equated

with economic welfare. As these goals are not always be realised by individuals

through their efforts alone, the government came into the picture and gradually

began to take over the responsibility for the free and full development of human

personality of its population.

Labour welfare is an extension of the term Welfare and its application

to labour. During the industrialisation process, the stress on labour productivity

increased; and brought about changes in the thinking on labour welfare. An early

study under the UN observed as follows “in our opinion most underdeveloped

countries are in the situation that investment in people is likely to prove as

productive, in the purely material sense, as any investment in material resources

and in many cases, investment in people would lead to a greater increase of the

flow of goods and services than would follow upon any comparable investment in

material capital” (UN, 1951). The theory that welfare expenditure, especially

expenditure on health and education, is productive investment has led to the view

that workers could work more productively if they were given a fair deal both at

the work place and in the community.

The concept of labour welfare has received inspiration from the

concepts of democracy and welfare state. Democracy does not simply denote a

form of government; it is rather a way of life based on certain values such as equal

rights and privileges for all. The operation of welfare services, in actual practice,

brings to bear on it different reflections representing the broad cultural and social

conditions. In short, labour welfare is the voluntary efforts of the employers to

establish, within the existing industrial system, working and sometimes living and

cultural conditions of the employees beyond what is required by law, the custom of

the industry and the conditions of the market (A. J. Todd, 1933).

The constituents of labour welfare included working hours, working

conditions, safety, industrial health insurance, workmen’s compensation, provident

funds, gratuity, pensions, protection against indebtedness, industrial housing, rest

rooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres,

music, reading rooms, holiday rooms, workers’ education, co-operative stores,

excursions, playgrounds, and scholarships and other help for education of

employees’ children.

However, labour welfare has both positive and negative sides

associated to it. On the positive side, it deals with the provision of opportunities

which enable the worker and his family to lead a good life, socially and personally,

as well as help him to adjust social transition in his work life, family life and social

life. On the negative side it functions in order to nutralise the baneful effects of

large scale industrialization and provide a

counterbalance to the undesirable social consequences and labour problems which

have evolved in the process of this transition.

The word labour means any productive activity. 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 working population.

Welfare work in any industry aims, or should aim, at improving the working and

living conditions of workers and their families.

Definitions:

Labour welfare has been defined in various ways, though unfortunately no

single definition has found universal acceptance. The Oxford Dictionary defines

labour welfare as “efforts to make life worth living for worker”

Chamber’s Dictionary defines welfare as “a state of faring or doing

well; freedom from calamity, enjoyment of health, prosperity.”

The ILO report refers to labour welfare as “such services, facilities, and

amenities, which may be established in, or in the vicinity of undertakings to

enable persons employed therein to perform their work in healthy and congenial

surroundings and provided with amenities conducive to good health and high

morale”.

Features:

On the basis of the various definitions, the basic characteristics of labour

welfare work may be noted thus:

1. It is the work which is usually undertaken within the premises or in the vicinity

of the undertakings for the benefit of the benefit of the employees and the members

of their families.

2. The work generally includes those items of welfare which are over and above

what the employees expect as a result of the contract of service from the

employers.

3. The purpose of providing welfare amenities is to bring about development of the

whole personality of the worker -his social, psychological, economic, moral,

cultural and intellectual development to make him a good worker, a good citizen

and a good member of the family.

4. These facilities may be provided voluntarily by progressive and enlightened

entrepreneurs at their own accord out of their realization of social responsibility

towards labour, or statutory provisions may compel them to make these facilities

available; or these may be undertaken by the government or trade unions, if they

have the necessary funds for the purpose.

5. Labour welfare is a very broad term, covering social security and such other

activities as medical aid, crèches, canteens, recreation, housing, adult education,

arrangements for the transport of labour to and from the work place.

6. It may be noted that not only intra-mural but also extra-mural, statutory as well

as non-statutory activities, undertaken by any of the three agencies- the employers,

trade unions or the government- for the physical and mental development of the

worker, both as a compensation for wear and tear that he undergoes as a part of the

production process and also to enable him to sustain and improve upon the basic

capacity of contribution to the processes of production, “which are all the species

of the longer family encompassed by the term ‘labour welfare’.


In its broad connotation, the term welfare refers to a state of living of an individual

or group in a desirable relationship with total environment – ecological, economic,

and social.

Conceptually as well as operationally, labour welfare is a part of social welfare

which, in turn, is closely linked to the concept and the role of the State. The

concept of social welfare, in its narrow contours, has been equated with economic

welfare. Pigou defined it as “that part of general welfare which can be brought

directly or indirectly into relations with the measuring rod of money” (Pigou,

1962). According to

Willensky and Labeaux, social welfare alludes to “those formally organised and

socially sponsored institutions, agencies and programmes which function to

maintain or improve the economic conditions, health or interpersonal

competence of some parts or all of a population” (Willensky and Labeaux,

1918). As these goals may not always be realised by individuals through their

efforts alone, the government came into the picture and gradually began to take

over the responsibility for the free and full development of human personality of its

population.





























Labour and Labour Welfare

Labour sector addresses multidimensional socio-economic aspects affecting labour

welfare, productivity, raising living standard of labour force and social security. To

raise earnings of work force and achieve higher productivity, skill upgradation

through suitable training is of utmost importance. Manpower development to

provide adequate labour force of appropriate skills and quality to different sectors

essential for rapid socio-economic development and elimination of the mismatch

between skills required and skills available has been a major focus of human

resource development activities during the last fifty years. Employment generation

in all the productive sectors is one of the basic objectives. In this context,

providing enabling environment for self employment has received special attention

both in urban and rural areas. Objective is also to eliminate bonded labour,

employment of children and women in hazardous industries, and minimize

occupational health hazards. During the Ninth Plan period, elimination of such

undesirable practices as child labour, bonded labour, ensuring workers’ safety and

social security, looking after labour welfare and providing of the necessary support

measures for sorting out problem relating to employment of both men and women

workers in different sectors will receive priority attention. It is also envisaged that

the employment exchanges will be reoriented so that they become the source of

labour related information, employment opportunities and provide counseling and

guidance to employment seekers.

All labour welfare measures have the following objectives:

1. Enabling workers to live richer and more satisfactory lives;

2. Contributing to the productivity of labour and efficiency of the enterprise;

3. Enhancing the standard of living of workers by indirectly reducing the burden

on their purse;

4. Enabling workers to live in tune and harmony with services for workers

obtaining in the neighbourhood community where similar enterprises are situated;

5. Based on an intelligent prediction of the future needs of the industrial workers,

designing policies to cushion off and absorb the shocks of industrialisation and

urbanisation to workers;

6. Fostering administratively viable and essentially developmental outlook among

the workforce; and

7. Discharging social responsibilities.

Principles of labour welfare

Certain fundamental considerations are involved in the concept of labour welfare.

The following are the more important among them.

Social responsibility of industry

This principle is based on the social conception of industry and its role in the

society that is, the understanding that social responsibility of the state is manifested

through industry. It is assumed that labour welfare is an expression of industry’s

duty towards its employees.

Social responsibility means that the obligation of the industry to pursue those

policies, to take such decisions, and to follow those lines of action which are

desirable in terms of the objectives and values currently obtaining in the society.

The values of the Indian community are enshrined in the constitution of the

country. Labour welfare is not embroidery on capitalism nor the external dressing

of an exploitative management; rather, it is an expression of the assumption by

industry of its responsibility for its employees (Maurioce Bruce, 1961). Industry is

expected to win the co-operation of the workers, provide them security of

employment, fair wage, and equal opportunity for personal growth and

advancement, and make welfare facilities available to them.

Democratic values

The principle of democratic values of labour welfare concedes that workers may

have certain unmet needs for no fault of their own, that industry has an obligation

to render them help in gratifying those needs, and that workers have a right of

determining the manner in which these needs can be met and of participating in the

administration of the mechanism of need gratification. The underlying assumption

to this approach is that the worker is a mature and rational individual who is

capable of taking decisions for himself/herself.

Adequacy of wages

The third principle of labour welfare is adequacy of wages; it implies that labour

welfare measures are not a substitute for wages. It will be wrong to argue that since

workers are given a variety of labour welfare services, they need be paid only low

wages. Right to adequate wage is beyond dispute.

Efficiency

The fourth principle of labour welfare lays stress on the dictum that to cultivate

welfare is to cultivate efficiency. Even those who deny any social responsibility for

industry do accept that an enterprise must introduce all such labour welfare

measures which promote efficiency (Marshall, 1950). It has been often mentioned

that workers’ education and training, housing, and diet are the three most important

aspects of labour welfare, which always accentuate labour efficiency.

Re-personalization

Since industrial organisation is rigid and impersonal, the goal of welfare in

industry is the enrichment and growth of human personality. The labour welfare

movement seeks to bring cheer, comfort, and warmth in the human relationship by

treating man as an individual, with quiet distinct needs and aspirations. Social and

cultural programmes, recreation and other measures designed after taking into

consideration the workers’ interests go a long way in counteracting the effects of

monotony, boredom, and cheerlessness.

Co-responsibility

The sixth principle of labour welfare recognises that the responsibility for labour

welfare lies on both employers and workers and not on employers alone

(Moorthy, 1958). Labour welfare measures are likely to be of little success unless

mutuality of interest and responsibilities are accepted and understood by both the

parties, in particular the quality of responsibility at the attitudinal and

organisational level.

Totality of welfare

The final principle of labour welfare is that the concept of labour welfare must

permeate throughout the hierarchy of an organisation, and accepted by all levels of

functionaries in the enterprise.

Approaches

The issue of labour welfare may be studied from different angles, such as:

The location, where these amenities are provided, within and outside the

industrial undertakings;

The nature of amenities such as those concerned conditions of employment

and

The welfare activities termed as ‘statutory’, ‘voluntary’ and ‘mutual’.

The agencies which provide living conditions of work people; these

amenities.

On the basis of location of welfare activities, labour welfare work has been

classified by Broughton in two specific categories, namely,

(a)intramural(b)extra-mural

(a)Intra-mural activities: consist of such welfare schemes provided within the

factories as medical facilities, provision of crèches, and canteens, supply of

drinking water, washing and bathing facilities, provision of safety measures such

as fencing and covering of machines, good lay-out of machinery and plant,

sufficient lighting, first-aid appliances; activities relating to improving conditions

of employment, recruitment and discipline and provision of provident fund and

gratuity, maternity benefits,etc.

(b)Extra-mural activities: cover the services and facilities provided outside the

factory such as, housing accommodation, indoor and outdoor recreation facilities,

amusement and sports, educational facilities for adults and children, provision of

libraries and reading rooms.

In the welfare activities concerned with conditions of employment are

included activities for the management of problems arising out of hours of work,

wages, holidays with pay, rest intervals, sanitation, continuity of employment,

control over the recruitment of female and juvenile labour, while all such schemes

of benefits as co-operative societies, legal and medical aid, and housing are

included in the category of activities concerned with conditions of workers.

Labour welfare work may be statutory, voluntary or mutual. It is

statutory when such activities have to be undertaken in furtherance of the

legislation adopted by the government. It is voluntary when the activities are

undertaken at their own accord by the employers or some philanthropic bodies or

when a labour organisation undertakes such activities for the welfare of their

members. It is mutual, when all parties join hands to bring about the social and

economic uplift of the workers.

The National Commission on labour has classified various labour welfare

measures under two distinct classes:

(1)those which have to be provided, irrespective of the size of the establishment or

the number of the persons employed therein such as facilities relating to washing,

storing, drying the clothing, first-aid, drinking water, latrines and urinals

(2)those which are to be provided subject to the employment of a specified number

of persons, such as canteen, rest shelter, crèche, ambulance,etc.

According to the Encyclopedia of social sciences, “industrial welfare work

”has taken numerous forms such as:

(a)those dealing with immediate working conditions are special provisions for

adequate light, heat, ventilation, toilet facilities, accident and occupational disease

prevention, lunch room, rest room, maximum hours, minimum wages,etc.;

(b)those concerned with less immediate working conditions and group interests,

are gymnasiums ,club rooms, play grounds, gardens, dancing, music, house organs,

mutual aid societies, vacation with pay, profit-sharing, stockownership, disability

and unemployment funds, pensions, savings banks, provisions for conciliation and

arbitration, shop committees and workers councils;

(c)those designed to improve community conditions, such as housing, retail stores,

schools, libraries, kinder gardens, lectures on Social Security and Labour

Welfare in India: A review

Social security is one of the pillars on which the structure of a welfare state rests, and it

constitutes the hard core of social policy in most countries. It is through social security

measures that the state attempts to maintain every citizen at a certain prescribed level

below which no one is allowed to fall. It is the security that society furnishes through

appropriate organization, against certain risks to which its members are exposed (ILO,

1942). Social security system comprises health and unemployment insurance, family

allowances, provident funds, pensions and gratuity schemes, and widows’ and

survivors’ allowances. The essential characteristics of social insurance schemes include

their compulsory and contributory nature; the members must first subscribe to a fund

from which benefits could be drawn later. On the other hand, social assistance is a

method according to which benefits are given to the needy persons, fulfilling the

prescribed conditions, by the government out of its own resources.

The present section reviews labour welfare activities in India with

particular emphasis on the unorganized sector. Although provisions for workmen’s

compensation in case of industrial accidents and maternity benefits for women

workforce had existed for long, a major breakthrough in the field of social security

came only after independence. The Constitution of India (Article 41) laid down that the

State shall make effective provision for securing the right to public assistance in case of

unemployment, old age, sickness and disablement and in other cases of underserved

want. The Government took several steps in compliance of the constitutional

requirements. The Workmen’s Compensation Act (1926) was suitably revised and

social insurance programmes were developed for industrial workers. Provident funds

and gratuity schemes were introduced in most industries, and maternity legislation was

overhauled. Subsequently, State governments instituted their own social assistance

programmes. The provisions for old age comprise pension, provident fund, and gratuity

schemes. All the three provisions are different forms of retirement benefits. Gratuity is a

lump sum payment made to a worker or to his/her heirs by the company on termination

of his/her service due to retirement, invalidity, retrenchment or death (Vajpayee and

Shanker, 1950).

Welfare

Welfare is the provision and maintenance of the conditions of life for individuals

by the community.

Welfare has a positive and negative aspect. Negative welfare is the provision by the

state or other institutions of a “safety net” or the distribution of benefits according

to some criteria; so-called positive welfare is the provision of opportunities for

people to “help themselves”. This contrast lies behind foreign-aid strategies which

concentrate on providing skills or “seed capital” rather than food parcels, for

example. The concept of positive and negative welfare is related to the concepts of

positive and negative freedom.

Marxists support both positive and negative welfare, but recognise that the market

inevitably generates inequality and a class of people inevitably the recipients of

welfare, who have nothing to sell but their labour power, alongside a class of

people who live off the proceeds of exploitation, invariably the providers of

welfare. Only by bringing the means of production under thorough going

proletarian democracy can the very need for welfare be abolished.


The concept of labour welfare is flexible and elastic and differs widely with

time, region, industry, social values and customs, degree of industrialization, the

general socio-economic development of the people and the political ideologies

prevailing at a particular time. It is also moulded according to the age-groups,

socio-cultural background, marital and economic status and educational level of

the workers in various industries

In its broad connotation, the term welfare refers to a state of living of an

individual or group in a desirable relationship with total environment – ecological,

economic, and social. Conceptually as well as operationally, labour welfare is a

part of social welfare which, in turn, is closely linked to the concept and the role of

the State. The concept of social welfare, in its narrow contours, has been equated

with economic welfare. As these goals are not always be realised by individuals

through their efforts alone, the government came into the picture and gradually

began to take over the responsibility for the free and full development of human

personality of its population.





























However, labour welfare has both positive and negative sides

associated to it. On the positive side, it deals with the provision of opportunities

which enable the worker and his family to lead a good life, socially and personally,

as well as help him to adjust social transition in his work life, family life and social

life. On the negative side it functions in order to nutralise the baneful effects of

large scale industrialization and provide a

counterbalance to the undesirable social consequences and labour problems which

have evolved in the process of this transition.

The word labour means any productive activity. 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 working population.

Welfare work in any industry aims, or should aim, at improving the working and

living conditions of workers and their families.

Definitions:

Labour welfare has been defined in various ways, though unfortunately no

single definition has found universal acceptance. The Oxford Dictionary defines

labour welfare as “efforts to make life worth living for worker”

Chamber’s Dictionary defines welfare as “a state of faring or doing

well; freedom from calamity, enjoyment of health, prosperity.”

The ILO report refers to labour welfare as “such services, facilities, and

amenities, which may be established in, or in the vicinity of undertakings to

enable persons employed therein to perform their work in healthy and congenial

surroundings and provided with amenities conducive to good health and high

morale”.

Features:

On the basis of the various definitions, the basic characteristics of labour

welfare work may be noted thus:

1. It is the work which is usually undertaken within the premises or in the vicinity

of the undertakings for the benefit of the benefit of the employees and the members

of their families.

2. The work generally includes those items of welfare which are over and above

what the employees expect as a result of the contract of service from the

employers.

3. The purpose of providing welfare amenities is to bring about development of the

whole personality of the worker -his social, psychological, economic, moral,

cultural and intellectual development to make him a good worker, a good citizen

and a good member of the family.

4. These facilities may be provided voluntarily by progressive and enlightened

entrepreneurs at their own accord out of their realization of social responsibility

towards labour, or statutory provisions may compel them to make these facilities

available; or these may be undertaken by the government or trade unions, if they

have the necessary funds for the purpose.

5. Labour welfare is a very broad term, covering social security and such other

activities as medical aid, crèches, canteens, recreation, housing, adult education,

arrangements for the transport of labour to and from the work place.

6. It may be noted that not only intra-mural but also extra-mural, statutory as well

as non-statutory activities, undertaken by any of the three agencies- the employers,

trade unions or the government- for the physical and mental development of the

worker, both as a compensation for wear and tear that he undergoes as a part of the

production process and also to enable him to sustain and improve upon the basic

capacity of contribution to the processes of production, “which are all the species

of the longer family encompassed by the term ‘labour welfare’.


In its broad connotation, the term welfare refers to a state of living of an individual

or group in a desirable relationship with total environment – ecological, economic,

and social.

Conceptually as well as operationally, labour welfare is a part of social welfare

which, in turn, is closely linked to the concept and the role of the State. The

concept of social welfare, in its narrow contours, has been equated with economic

welfare. Pigou defined it as “that part of general welfare which can be brought

directly or indirectly into relations with the measuring rod of money” (Pigou,

1962). According to

Willensky and Labeaux, social welfare alludes to “those formally organised and

socially sponsored institutions, agencies and programmes which function to

maintain or improve the economic conditions, health or interpersonal

competence of some parts or all of a population” (Willensky and Labeaux,

1918). As these goals may not always be realised by individuals through their

efforts alone, the government came into the picture and gradually began to take

over the responsibility for the free and full development of human personality of its

population.





























Labour and Labour Welfare

Labour sector addresses multidimensional socio-economic aspects affecting labour

welfare, productivity, raising living standard of labour force and social security. To

raise earnings of work force and achieve higher productivity, skill upgradation

through suitable training is of utmost importance. Manpower development to

provide adequate labour force of appropriate skills and quality to different sectors

essential for rapid socio-economic development and elimination of the mismatch

between skills required and skills available has been a major focus of human

resource development activities during the last fifty years. Employment generation

in all the productive sectors is one of the basic objectives. In this context,

providing enabling environment for self employment has received special attention

both in urban and rural areas. Objective is also to eliminate bonded labour,

employment of children and women in hazardous industries, and minimize

occupational health hazards. During the Ninth Plan period, elimination of such

undesirable practices as child labour, bonded labour, ensuring workers’ safety and

social security, looking after labour welfare and providing of the necessary support

measures for sorting out problem relating to employment of both men and women

workers in different sectors will receive priority attention. It is also envisaged that

the employment exchanges will be reoriented so that they become the source of

labour related information, employment opportunities and provide counseling and

guidance to employment seekers.

All labour welfare measures have the following objectives:

1. Enabling workers to live richer and more satisfactory lives;

2. Contributing to the productivity of labour and efficiency of the enterprise;

3. Enhancing the standard of living of workers by indirectly reducing the burden

on their purse;

4. Enabling workers to live in tune and harmony with services for workers

obtaining in the neighbourhood community where similar enterprises are situated;

5. Based on an intelligent prediction of the future needs of the industrial workers,

designing policies to cushion off and absorb the shocks of industrialisation and

urbanisation to workers;

6. Fostering administratively viable and essentially developmental outlook among

the workforce; and

7. Discharging social responsibilities.

Principles of labour welfare

Certain fundamental considerations are involved in the concept of labour welfare.

The following are the more important among them.

Social responsibility of industry

This principle is based on the social conception of industry and its role in the

society that is, the understanding that social responsibility of the state is manifested

through industry. It is assumed that labour welfare is an expression of industry’s

duty towards its employees.

Social responsibility means that the obligation of the industry to pursue those

policies, to take such decisions, and to follow those lines of action which are

desirable in terms of the objectives and values currently obtaining in the society.

The values of the Indian community are enshrined in the constitution of the

country. Labour welfare is not embroidery on capitalism nor the external dressing

of an exploitative management; rather, it is an expression of the assumption by

industry of its responsibility for its employees (Maurioce Bruce, 1961). Industry is

expected to win the co-operation of the workers, provide them security of

employment, fair wage, and equal opportunity for personal growth and

advancement, and make welfare facilities available to them.

Democratic values

The principle of democratic values of labour welfare concedes that workers may

have certain unmet needs for no fault of their own, that industry has an obligation

to render them help in gratifying those needs, and that workers have a right of

determining the manner in which these needs can be met and of participating in the

administration of the mechanism of need gratification. The underlying assumption

to this approach is that the worker is a mature and rational individual who is

capable of taking decisions for himself/herself.

Adequacy of wages

The third principle of labour welfare is adequacy of wages; it implies that labour

welfare measures are not a substitute for wages. It will be wrong to argue that since

workers are given a variety of labour welfare services, they need be paid only low

wages. Right to adequate wage is beyond dispute

Efficiency

The fourth principle of labour welfare lays stress on the dictum that to cultivate

welfare is to cultivate efficiency. Even those who deny any social responsibility for

industry do accept that an enterprise must introduce all such labour welfare

measures which promote efficiency (Marshall, 1950). It has been often mentioned

that workers’ education and training, housing, and diet are the three most important

aspects of labour welfare, which always accentuate labour efficiency.

Re-personalization

Since industrial organisation is rigid and impersonal, the goal of welfare in

industry is the enrichment and growth of human personality. The labour welfare

movement seeks to bring cheer, comfort, and warmth in the human relationship by

treating man as an individual, with quiet distinct needs and aspirations. Social and

cultural programmes, recreation and other measures designed after taking into

consideration the workers’ interests go a long way in counteracting the effects of

monotony, boredom, and cheerlessness.

Co-responsibility

The sixth principle of labour welfare recognises that the responsibility for labour

welfare lies on both employers and workers and not on employers alone

(Moorthy, 1958). Labour welfare measures are likely to be of little success unless

mutuality of interest and responsibilities are accepted and understood by both the

parties, in particular the quality of responsibility at the attitudinal and

organisational level.

Totality of welfare

The final principle of labour welfare is that the concept of labour welfare must

permeate throughout the hierarchy of an organisation, and accepted by all levels of

functionaries in the enterprise.

Approaches

The issue of labour welfare may be studied from different angles, such as:

The location, where these amenities are provided, within and outside the

industrial undertakings;

The nature of amenities such as those concerned conditions of employment

and

The welfare activities termed as ‘statutory’, ‘voluntary’ and ‘mutual’.

The agencies which provide living conditions of work people; these

amenities.

On the basis of location of welfare activities, labour welfare work has been

classified by Broughton in two specific categories, namely,

(a)intramural(b)extra-mural

(a)Intra-mural activities: consist of such welfare schemes provided within the

factories as medical facilities, provision of crèches, and canteens, supply of

drinking water, washing and bathing facilities, provision of safety measures such

as fencing and covering of machines, good lay-out of machinery and plant,

sufficient lighting, first-aid appliances; activities relating to improving conditions

of employment, recruitment and discipline and provision of provident fund and

gratuity, maternity benefits,etc.

(b)Extra-mural activities: cover the services and facilities provided outside the

factory such as, housing accommodation, indoor and outdoor recreation facilities,

amusement and sports, educational facilities for adults and children, provision of

libraries and reading rooms.

In the welfare activities concerned with conditions of employment are

included activities for the management of problems arising out of hours of work,

wages, holidays with pay, rest intervals, sanitation, continuity of employment,

control over the recruitment of female and juvenile labour, while all such schemes

of benefits as co-operative societies, legal and medical aid, and housing are

included in the category of activities concerned with conditions of workers.

Labour welfare work may be statutory, voluntary or mutual. It is

statutory when such activities have to be undertaken in furtherance of the

legislation adopted by the government. It is voluntary when the activities are

undertaken at their own accord by the employers or some philanthropic bodies or

when a labour organisation undertakes such activities for the welfare of their

members. It is mutual, when all parties join hands to bring about the social and

economic uplift of the workers.

The National Commission on labour has classified various labour welfare

measures under two distinct classes:

(1)those which have to be provided, irrespective of the size of the establishment or

the number of the persons employed therein such as facilities relating to washing,

storing, drying the clothing, first-aid, drinking water, latrines and urinals

(2)those which are to be provided subject to the employment of a specified number

of persons, such as canteen, rest shelter, crèche, ambulance,etc.

According to the Encyclopedia of social sciences, “industrial welfare work

”has taken numerous forms such as:

(a)those dealing with immediate working conditions are special provisions for

adequate light, heat, ventilation, toilet facilities, accident and occupational disease

prevention, lunch room, rest room, maximum hours, minimum wages,etc.;

(b)those concerned with less immediate working conditions and group interests,

are gymnasiums ,club rooms, play grounds, gardens, dancing, music, house organs,

mutual aid societies, vacation with pay, profit-sharing, stockownership, disability

and unemployment funds, pensions, savings banks, provisions for conciliation and

arbitration, shop committees and workers councils;

(c)those designed to improve community conditions, such as housing, retail stores,

schools, libraries, kinder gardens, lectures on domestic sciences, day nurseries,

dispensary and dental service screening of motion pictures, arranging athletic

contests and picnics and summer camps.

domestic sciences, day nurseries, dispensary and dental service screening of

motion pictures, arranging athletic contests and picnics and summer camps.

Company profile

Established in 1987 Wholly owned 100% export Production Capacity: * Unit I :

4000 pairs a day * Unit II : 3000 pairs a day * (Makes more than 1.5 million pairs

in a year) Current Export Markets: * UK, Italy, Spain, France, Germany, Holland

& Scandinavia Social Strengths: * An equal opportunity employer * Company

with a human face * Hazard free work environment * Abides by the compliance

issues of buyers Technical Strengths: * State of art facility equipped with ultra

modern Italian, German & Indian Machines * Assembly line production facility

with online quality checks * Italian & Spanish designers * R & D focus on design,

finish & durability Primary Competitive Advantage: * Experienced R & D

Department * CAD System Installed * Large Production Capacity * Reliability &

Transparency

Fact Sheet

Year of Establishment : 1987

Nature of Business : Exporter

Major Markets : Indian Subcontinent, East Europe, North Europe and

South/West Europe

Company Name: Gupta H.C. Overseas (I) Pvt. Ltd.

Contact Person: Mr. Gopal Gupta

Telephone: +(91)-(562)-4017900

Mobile / Cell Phone: +(91)-9837065456

Fax No: +(91)-(562)-2600300

Address: Bye-Pass Road, Agra, Uttar Pradesh - 282007 (India)

Products

Ladies High Fashion Footwear (Boots, Shoes & Bags)

Production Capacity

1.8 million pairs in a year

Unit I : 4000 pairs a day Unit II : 4000 pairs a day

Technical Strengths

State of art facility equipped with ultra modern machines

Collections designed by leading Italian & Spanish design houses

R & D focus on authentic designs, finish & sturdiness

In-house permanent Italian technicians

Equipped with lab for Clark Shoes(UK)

Primary Competitive Advantages

Experienced R & D Department (Certified by DSIR, Ministry of Science &

Technology,

Govt. of India - First footwear unit in India to get this certification)

Large Production Capacity

Reliability & Transparen

Social Responsibility

In house training institute in collaboration with IL&FS (supported by Ministry of

Rural Development, Govt. of India). Aimed at providing employment & skills to

people of village settlement and BPL category.

Equipped with 100 KW Solar Power Generating System. Saving appx. 80,000 Kg.

CO2 emissionper year.

International Affiliations

First ISO 9001 shoe company in the region SA 8000

Awards & Accredtions

By Provincial Govt.

State Export Award 1998

By Council of Leather Exports, India

Certificate of Merit 2001

Best Performance Award 2003

Best Design Award 2005

Certificate of Merit :

SA-8000 Social Accountability 2006

By Govt. of India, Ministry of MSME

National Award 2007

(Special Recognition Award)

International Exhibitions

Garda and Micam Fairs

India Franchisee & Licensee of

Miss Sixty Shoes & Accessories, Italy

STENS, France. (Extensible Sole)

www.stens.

History of Labour Law in India

Labour legislations enacted post independence of India have sought to tackle

various problems relating to working conditions, industrial safety, hygiene and

welfare, wages, trade unionism, social security, etc. Laws were also enacted to

meet the special needs of specific industries and commercial establishments, such

as mines, plantations, factories, shops and establishments, etc. With the declaration

of a national emergency in 1975, anti-inflationary laws like Payment of Bonus

(Amendment) Act, 1975, the Equal Remuneration Ordinance, 1975, etc. were

enacted which led to further amelioration of workers in the country.

1 Entry 24, List III, VII Schedule, Constitution.



2.2. In the year 1991, the Indian Government adopted a policy of economic

liberalisation. The resultant enhancement of competition in the fast-changing

markets raised a new set of challenges since Indian labour laws (including the

social security laws) were traditionally inclined to be protective of labour and not

conducive to competition in the labour markets.

2.3. With greater mobility and flexibility in the labour markets becoming the need

of the hour, employers have consistently argued in the last decade or so that the

excessively pro-worker nature of Indian labour laws in the organised sector is a

cause for concern.

2.4. This has caused the Government to consider reforms in labour laws in India.

Recommendations designed to give the labour markets appropriate flexibility for it

to be in a position to compete in the international markets are under consideration.

It can consequently be said that the Indian job / labour market has started moving

away from a „protectionist‟ and closed model towards a more competitive and

open model.

3. Structure of the Indian Labour Market

3.1. The Indian labour market can be broadly divided into three categories: (i)

organised sector; (ii) urban informal (i.e. unorganised) sector; and (iii) rural labour

(i.e. labour engaged mostly in agriculture). Wages in the urban informal (i.e.

unorganised) sector are marginally higher than those in rural areas but much lower

than those in the organised sector, varying significantly across skills, occupations,

experience and location. This Report on Labour Laws in India (“Report”)

examines in detail the legal regime which governs and regulates matters related to

employment in the organised sector of the Indian labour market.

Individual labor law

Contract of employment

The basic feature of labor law in almost every country is that the rights and

obligations of the worker and the employer between one another are mediated

through the contract of employment between the two. This has been the case since

the collapse of feudalism and is the core reality of modern economic relations.

Many terms and conditions of the contract are however implied by legislation or

common law, in such a way as to restrict the freedom of people to agree to certain

things to protect employees, and facilitate a fluid labor market. In the U.S. for

example, majority of state laws allow for employment to be "at will", meaning the

employer can terminate an employee from a position for any reason, so long as the

reason is not an illegal reason, including a termination in violation of public policy.

One example in many countries is the duty to provide written particulars of

employment with the essentialia negotii (Latin for essential terms) to an employee.

This aims to allow the employee to know concretely what to expect and is

expected; in terms of wages, holiday rights, notice in the event of dismissal, job

description and so on. An employer may not legally offer a contract in which the

employer pays the worker less than a minimum wage. An employee may not for

instance agree to a contract which allows an employer to dismiss them unfairly.

There are certain categories that people may simply not agree to because they are

deemed categorically unfair. However, this depends entirely on the particular

legislation of the country in which the work is.

Minimum wage

There may be law stating the minimum amount that a worker can be paid per hour.

Australia, Belgium, Brazil, Canada, China, France, Greece, Hungary, India,

Ireland, Japan, Korea, Luxembourg, the Netherlands, New Zealand, Paraguay,

Portugal, Poland, Romania, Spain, Taiwan, the United Kingdom, the United States

and others have laws of this kind. The minimum wage is usually different from the

lowest wage determined by the forces of supply and demand in a free market, and

therefore acts as a price floor. Each country sets its own minimum wage laws and

regulations, and while a majority of industrialized countries has a minimum wage,

many developing countries have not.

1. Minimum wages are regulated and stipulated also in some countries that

lack specific laws. In Sweden, for instance, minimum wages are negotiated

between the labor market parties (unions and employer organizations)

through collective agreements that also cover non-union workers and non-

organized employers.

India in 1948, France in 1950, and in the United Kingdom in 1998. In the

European Union, 18 out of 25 member states currently have national minimum

wages.

Working time

Before the Industrial Revolution, the workday varied between 11 and 14 hours.

With the growth of industrialism and the introduction of machinery, longer hours

became far more common, with 14–15 hours being the norm, and 16 not at all

uncommon. Use of child labor was commonplace, often in factories. In England

and Scotland in 1788, about two-thirds of persons working in the new water-

powered textile factories were children.[8] The eight-hour movement's struggle

finally led to the first law on the length of a working day, passed in 1833 in

England, limiting miners to 12 hours, and children to 8 hours. The 10-hour day was

established in 1848, and shorter hours with the same pay were gradually accepted

thereafter. The 1802 Factory Act was the first labour law in the UK.

After England, Germany was the first European country to pass labour laws;

Chancellor Bismarck's main goal being to undermine the Social Democratic Party

of Germany (SPD). In 1878, Bismarck instituted a variety of anti-socialist

measures, but despite this, socialists continued gaining seats in the Reichstag. The

Chancellor, then, adopted a different approach to tackling socialism. To appease

the working class, he enacted a variety of paternalistic social reforms, which

became the first type of social security. The year 1883 saw the passage of the

Health Insurance Act, which entitled workers to health insurance; the worker paid

two-thirds, and the employer one-third, of the premiums. Accident insurance was

provided in 1884, while old age pensions and disability insurance were established

in 1889. Other laws restricted the employment of women and children. These

efforts, however, were not entirely successful; the working class largely remained

unreconciled with Bismarck's conservative government.

In France, the first labor law was voted in 1841. However, it limited only under-

age miners' hours, and it was not until the Third Republic that labour law was

effectively enforced, in particular after Waldeck-Rousseau 1884 law legalizing

trade unions. With the Matignon Accords, the Popular Front (1936–38) enacted the

laws mandating 12 days (2 weeks) each year of paid vacations for workers and the

law limiting to 40 hours the workweek (outside of overtime).

Health and safety

Other labor laws involve safety concerning workers. The earliest English factory

law was drafted in 1802 and dealt with the safety and health of child textile

workers.

Anti-discrimination

This clause means that discrimination against employees is morally unacceptable

and illegal, on a variety of grounds, in particular racial discrimination or sexist

discrimination.

Unfair dismissal

Convention no. 158 of the International Labor Organization states that an

employee "can't be fired without any legitimate motive" and "before offering him

the possibility to defend himself". Thus, on April 28, 2006, after the unofficial

repeal of the French First Employment Contract (CPE), the Longjumeau (Essonne)

conseil des prud'hommes (labor law court) judged the New Employment Contract

(CNE) contrary to international law, and therefore "illegitimate" and "without any

juridical value". The court considered that the two-years period of "fire at will"

(without any legal motive) was "unreasonable", and contrary to convention no.

158, ratified by France.

Child labor

Two girls wearing banners in Yiddish and English with the slogan "Abolish child

slavery!!" at the 1909 May Day parade in New York City

Child labor is the employment of children under an age determined by law or

custom. This practice is considered exploitative by many countries and

international organizations. Child labor was not seen as a problem throughout most

of history, only becoming a disputed issue with the beginning of universal

schooling and the concepts of laborers' and children rights. Child labor can be

factory work, mining or quarrying, agriculture, helping in the parents' business,

having one's own small business (for example selling food), or doing odd jobs.

Some children work as guides for tourists, sometimes combined with bringing in

business for shops and restaurants (where they may also work as waiters). Other

children are forced to do tedious and repetitive jobs such as assembling boxes, or

polishing shoes. However, rather than in factories and sweatshops, most child labor

occurs in the informal sector, "selling on the street, at work in agriculture or hidden

away in houses — far from the reach of official inspectors and from media

scrutiny."

http://en.wikipedia.org/wiki/File:Abolish_child_slavery.jpg

Collective labor law

Collective labor law concerns the tripartite relationship between employer,

employee and trade unions. Trade unions, sometimes called "labor unions"

Trade unions

Some countries require unions to follow particular procedures before taking certain

actions. For example, some countries require that unions ballot the membership to

approve a strike or to approve using members' dues for political projects. Laws

may guarantee the right to join a union (banning employer discrimination), or

remain silent in this respect. Some legal codes may allow unions to place a set of

obligations on their members, including the requirement to follow a majority

decision in a strike vote. Some restrict this, such as the 'right to work' legislation in

some of the United States.

Strikes

Strikers gathering in Tyldesley in the 1926 General Strike in the U.K.

http://en.wikipedia.org/wiki/File:Tyldesley_miners_outside_the_Miners_Hall_during_the_1926_General_Strike.jpg

Strike action is the weapon of the workers most associated with industrial disputes,

and certainly among the most powerful. In most countries, strikes are legal under a

circumscribed set of conditions. Among them may be that:

The strike is decided on by a prescribed democratic process. (Wildcat strikes

are illegal).

Sympathy strikes, against a company by which workers are not directly

employed, may be prohibited.

General strikes may be forbidden by a public order.

Certain categories of person may be forbidden to strike (airport personnel,

health personnel, teachers, police or firemen, etc.)

Strikes may be pursued by people continuing to work, as in Japanese strike

actions which increase productivity to disrupt schedules, or in hospitals.

A boycott is a refusal to buy, sell, or otherwise trade with an individual or business

who is generally believed by the participants in the boycott to be doing something

morally wrong. Throughout history, workers have used tactics such as the go-slow,

sabotage, or just not turning up en-masse to gain more control over the workplace

environment, or simply have to work less Some labor law explicitly bans such

activity, none explicitly allows it.

Pickets

Picketing is a tactic which is often used by workers during strikes. They may

congregate outside the business they are striking against to make their presence

felt, increase worker participation, and dissuade (or prevent) strike breakers from

entering the workplace. In many countries, this activity is restricted by labor law,

by more general law restricting demonstrations, or sometimes by injunctions on

particular pickets. For example, labor law may restrict secondary picketing

(picketing a business not directly connected with the dispute, such as a supplier of

materials), or flying pickets (mobile strikers who travel to join a picket). There

may be laws against obstructing others from going about their lawful business

(scabbing, for example, is lawful); making obstructive pickets illegal, and, in some

countries, such as Britain, there may be court orders made from time to time

against pickets being in particular places or behaving in particular ways (shouting

abuse, for example).

Workplace involvement

Workplace consolation statutes exist in many countries, requiring that employers

consult their workers on issues that concern their place in the company. Industrial

democracy refers to the same idea, but taken much further. Not only that workers

should have a voice to be listened to, but that workers have a vote to be counted.

Co-determination

Originating in Germany, some form of co-determination (or Mitbestimmung)

procedure is practised in countries across continental Europe, such as Holland and

the Czech Republic, as well as Scandinavian countries (e.g. Sweden). This

involves the rights of workers to be represented on the boards of companies for

whom they work. The German model involves half the board of directors being

appointed by the company trade union. However, German company law uses a

split board system, with a 'supervisory board' (Aufsichtsrat) which appoints an

'executive board' (Vorstand). Shareholders and unions elect the supervisory board

in equal number, except that the head of the supervisory board is, under co-

determination law, a shareholder representative. While not gaining complete

parity, there has been solid political consensus since the Helmut Schmidt social

democrat government introduced the measure in 1976.

In the United Kingdom, the similar proposals were drawn up, and a command

paper produced named the Bullock Report (Industrial democracy). This was

released in 1977 by the James Callaghan Labour government. This proposal

involved a similar split on the board, but its effect would have been even more

radical. Because British company law requires no split in the boards of directors,

unions would have directly elected the management of the company. Furthermore,

rather than giving shareholders the slight upper hand as happened in Germany, a

debated 'independent' element would be added to the board, reaching the formula

2x + y. However, no action was ever taken as the UK slid into the winter of

discontent. This tied into the European Commission's proposals for worker

participation in the 'fifth company law directive', which was also never

implemented.

In Sweden, this is regulated through the 'Law on board representation' (Lagen om

styrelserepresentation). The law covers all private companies with 25 or more

employees. In these companies, workers (usually through unions) have a right to

appoint two board members and two substitutes. If the company has more than

1,000 employees, three members and three substitutes are appointed by

workers/unions. It is common practice that seats are divided between

representatives from the major union coalitions

International labor law

One of the crucial concerns of workers and those who believe that labor rights are

importantis that in a globalizing economy, common social standards ought to

support economic development in common markets. However, there is nothing in

the way of international enforcement of labor rights, with the notable exception of

labor law within the European Union. At the Doha round of trade talks through the

World Trade Organization one of the items for discussion was the inclusion of

some kind of minimum standard of worker protection. The chief question is

whether, with the breaking down of trade barriers in the international economy,

while this can benefit consumers it can also make the ability of multinational

companies to bargain down wage costs even greater, in wealthier Western

countries and developing nations alike. The ability of corporations to shift their

supply chains from one country to another with relative ease could be the starting

gun for a "regulatory race to the bottom", whereby nation states are forced into a

merciless downward spiral, not only slashing tax rates and public services with it

but also laws that in the short term cost employers money. Countries are forced to

follow suit, on this view, because should they not foreign investment will dry up,

move places with lower "burdens" and leave more people jobless and poor. This

argument is by no means uncontested. The opposing viewsuggests that free

competition for capital investment between different countries increases the

dynamic efficiency of the market place. Faced with the discipline that markets

enforce, countries are incentivized to invest in education, training, and skills in

their workforce to obtain a comparative advantage. Government initiative is

spurred, because rational long term investment will be perceived as the better

choice to increasing regulation. This theory concludes that an emphasis on

deregulation is more beneficial than not. That said, neither the International Labor

Organization (see below), nor the European Union takes this view.

Impact of ILO on Labor Laws in India

The ILO (International Labor Organization) was set up in the year 1919, with an

aim to improve the conditions of labors around the world.India was the founding

member of ILO, which has now expanded its membership to 145 nations. ILO

through its conventions and recommendations helps nations to draw their own set

of labor laws for the better treatment of the working class, and the preservation of

their rights. The principal means of action in the ILO is the setting up the

International Labor Standards in the form of Conventions and Recommendations.

Conventions are international treaties and are instruments, which create legally

binding obligations on the countries that ratify them. Recommendations are non-

binding and set out guidelines orienting national policies and actions.

Labor Law regulates matters, such as, labor employment, remunerations, and

conditions of work, trade unions, and labor management relations. They also

include social laws regulating such aspects as compensation for accident caused to

a worker at work, fixation of minimum wages, maternity benefits, sharing of the

company’s profit by the workers, and so on. Most of these legal instruments

regulate rights and responsibilities of the working people.

The approach of India with regard to International Labor Standards has always

been positive. The ILO instruments have provided guidelines and useful

framework for the evolution of legislative and administrative measures for the

protection and advancement of the interest of labor. To that extent the influence of

ILO Conventions as a standard for reference for labor legislation and practices in

India, rather than as a legally binding norm, has been significant. Ratification of a

Convention imposes legally binding obligations on the country concerned and,

therefore, India has been careful in ratifying Conventions. It has always been the

practice in India that we ratify a Convention when we are fully satisfied that our

laws and practices are in conformity with the relevant ILO Convention. It is now

considered that a better course of action is to proceed with progressive

implementation of the standards, leave the formal ratification for consideration at a

later stage when it becomes practicable. We have so far rat

ified 39 Conventions of the ILO, which is much better than the position obtaining

in many other countries. Even where for special reasons, India may not be in a

position to ratify a Convention, India has generally voted in favor of the

Conventions reserving its position as far as its future ratification is concerned.

The Effect of Labor Market Regulations

A number of studies have attempted to estimate the effects of labor market

regulations on economic outcomes in India. Fallon and Lucas (1991) and (1993)

studied the effect of job security laws by analyzing the effects of the 1976

introduction of chapter Vb in the Industrial Disputes Act (IDA), which mandated

firms employing 300 or more workers to request permission from the government

prior to retrench. They found a large impact on manufacturing jobs: formal

employment for a given level of output declined by 17.5 percent. Similarly, Dutta

Roy (2004) examined the effects of the 1982 central amendment to the IDA, which

extended the prohibition to retrench workers without government authorization to

firms that employed hundred or more workers. The author found evidence of

substantial adjustment costs in employment but no evidence that such costs are

driven or altered by the IDA legislative amendment. Both studies however do not

control for other macro or policy change that could confound the before-after

comparison. Besley and Burgess (2004) isolate the effect of a labor reform in a

given state, from changes in policies and macroeconomic variables that are

common across states, thus better identifying the effect of labor laws, however

their measure of regulations aggregates different types of labor regulations and

therefore their results are not directly comparable to the other studies. They find

labor regulations to have important adverse effects on output and employment,

particularly in the registered manufacturing sector.

Hasan, Mitra and Ramaswamy (2003) examine whether differences in labor laws

explain differences in the way labor markets adjusted to trade reforms. They find

that states with more stringent labor regulations (measured as in Besley and

Burgess 2004) have lower demand elasticities and these elasticities are less

affected by trade reforms. Finally Lall and Mengistae (2005) examine the influence

of labor market regulations –as perceived by employers—on plant productivity

differences across Indian cities. They find that differences in the degree of labor

regulations, jointly with differences in the severity of power shortages, explain a

large share of the productivity gaps between cities. As in Bestley and Burgess

(2004) by aggregating different labor laws into one unique measure, they cannot

identify which labor laws are the ones responsible for adverse economic outcomes.

From the policy perspective, understanding which laws and regulation have

more adverse effects is an important question. Since labor laws have proven very

difficult to change, focusing precious political capital in reforming some aspects of

the law may be one way to mobilize support behind reforms.

Why Different Labor Laws may have Different Effects on Economic

Outcomes?

Different labor regulations are expected to cause differential impacts on economic

variables because each may involve a different combination of at least three

effects: (1) a price effect, (2) an expropriation effect, and (3) a rigidity effect. Price

effects occur when regulations increase the cost of labor. Expropriation effects are

related to holdup problems that occur when regulations make it easier for workers

to appropriate part of the return of an employers’ investment once that investment

is sunk7. This is the case, for instance, when regulations increase workers’ ability

to initiate and sustain industrial disputes. Finally rigidity effects occur when

regulations make the adjustment of labor (or other factors) more costly and

difficult. Regulations that increase the price of labor or generate expropriation

effects are expected to have a negative effect on the demand for labor. Instead,

regulations that increase the cost of adjusting employment have ambiguous effects

since they may cause a reduction of both job creation and job See Besley and

Burgess (2002) for a simple model of the expropriation effect. destruction (Bertola,

1990). Thus ultimately, whether regulations have a positive or

negative effect on employment depends on whether their dampening effects on job

creation are offset by a reduction in job destruction. The effects on capital will also

depend on which of the three effects dominate. While the price and rigidity effect

may lead firms to substitute labor for capital, the fear of expropriation may create

strong disincentives on investment and capital formation.

Regulations that specifically target employment adjustment such as chapter Vb are

likely to induce large price and rigidity effects, and possibly some expropriation

effects as workers’ bargaining power vis-à-vis employers increases the more

secure workers feel in their job. On the other hand, regulations that increase the

cost of solving industrial disputes are likely to generate expropriation effects

associated with the increased uncertainty regarding firms’ ability to solve

industrial conflict in their favor. They also create price effects as the price of labor

involves the additional costs of handling labor disputes. Finally, they may also

create some rigidity effects as dismissal related labor disputes become more costly

for firms. The former implies that the effects of a given regulation on outcomes are

ambiguous and depend on which of the three effects dominate. Therefore, the issue

of what are the effects of different pieces of regulation on employment.

Research Methodology

Research is the process of systematic and in-depth study or search for any

particular topic, subject or area of investigation, backed by collection, compilation,

presentation and interpretation of relevant details or data. Research methodology is

a way to systematically solve the research problem. It may be understood as a

science of studying how research is done scientifically.

Research may develop hypothesis and test it. In it we study the various steps

that are generally adopted by the researcher in studying his research problem along

with the logic behind them.

Research must be based on fact observable data forms a sound basis for

research inductive investigation lead better support to research finding for

analyzing facts a scientific methodology of analysis must be developed and result

interpreted logically.

It is necessary for the researcher to know not only the research method or

techniques but also the methodology. Thus, when we talk of research methodology

we not only talk of the research methods but also consider the logic behind the

methods we use in the context of our research study and explain why we are using

a particular method or technique and why we are not using others so that research

results are capable of being evaluated either by the researcher himself or by others.

Research problems would result in certain conclusions by means of logical

analysis which the decision-maker may use for his action or solution.

OBJECTIVES OF STUDY:

1) To study the LABOUR LAW provided to employees

2) To study how the organization motivate the employees by identifying and

satisfying their unsatisfied needs.

3) To know which special facilities are provided to reserved class categories

like SC, ST, OBC etc.. by the organization.

RESEARCH PROCESS:

In research process, the first and foremost step is selecting and defining a

research problem. A researcher should at first find the problem. Then he should

formulate it so that it becomes susceptible to research. For a systematic

presentation, the process of research may be classified under three stages-

primary stage, secondary stage, and the tertiary stage.

The primary stage includes:-

i) Observation

ii) Interest

iii) Formulating research problem

iv) Documentation

v) Preparation of a bibliography &

vi) Research design

The secondary stage includes:-

i) Project planning

ii) Data collection

iii) Analysis of data

iv) Testing of hypothesis

v) Interpretation

vi) Questionnaire preparation

The tertiary stage includes:-

i) Report writing

ii) Observation, suggestions, and conclusions.

iii) Preparation of a bibliography

OBSERVATION

Research starts with observation, which leads to curiosity to learn more

about what has been observed. While observation leads to research the

research results in elaborate observations and conclusions; or even further

research.

The observation method is widely used mainly because of its simplicity,

usefulness in the framing of hypothesis, its accuracy; the possibility of

getting convincing results, the possibility of the test of validity etc. to be

precise, observation tends to be the basic of any research.

INTEREST

The observation of certain occurrences creates an interest and

inquisitiveness in the mind of the research to study it future. This is the basis

of interest to study the subject matter of observation. The interest is the

guiding force behind any research.

FORMULATING RESEARCH PROBLEM

The research problem undertaken for study must be carefully selected.

The problem must be defined thoroughly and should be framed into

meaningful terms from the analytical point of view. The area of working must

be decided.

I had got the information from the HOD of HR department and from some

of the employees.

Industrial progress largely depend on committee labour force the benefits

which go under this nomenclature are of great importance to the employee and

which he is enable to secure by himself. The scheme of labour welfare may be

regarded as a wise investment which should on usually does brings profitable

return in the form of greater efficiency.

Thus we can say that welfare facilities are the base of effective and

efficient working of the employees in the organization in my opinion welfare

has a great importance in the organization.

DOCUMENTATION

The documentary source is an important source of information for a

researcher. A document is any thing in writing a record, files or diaries,

published or unpublished- which can be extracted and used in research. It is a

very valuable source of information for a research. Documentation is the

process of collecting & extracting the documents which are relevant to

research.

RESEARCH DESIGN

After formulating the problem the research design has to be prepared.

Preparation of research design involves selection of means of obtaining

information, time available for research and selection of method of tabulation

& presentation of data.

The research of my project is descriptive study. I have obtained

information by the HOD of the HR Department and some of the employees of

the organization & also from annual reports of company, newspapers,

magazines and websites.

PROJECT PLANNING

Project planning is the first step in actually conducting & directing a

research project. It is one of the most important tasks of a researcher. This

includes formulation of the research objectives & goals and determining ways

of achieving them.

DATA COLLECTION

Data collection is one of the most important aspects of research. For the

success of any project accurate data is very important and necessary. The

information collected through research methodology must be accurate and

relevant.

The data collection method can be classified into two methods:-

- Primary Data

- Secondary Data

- Primary Data:

Data collected by a researcher is known as primary data. It is collected by

a person for his own use obtained from findings. This is considered as

first hand information. This is that data which is collected by us to meet

our own specific purpose. The data is collected by the means of

questionnaire filled in by the employees at different posts of Nagpur area

office. This method of data collection is very popular particularly in big

organizations.

THE RESEARCH APPROACH:

Survey Method

THE RESEARCH INSTRUMENT:

Questionnaire

THE RESPONDENTS:

The employees of the organization.

- Secondary Data:

Secondary data means data that are already available ie, they refer to data

which has already been collected and analyzed by some one else. This

type of data information can also be used by the researcher for his use as

second hand information sources through which secondary data can be

collected.

Secondary data may either be published data or unpublished data.

Published data used here is from:-

i) Magazines

ii) Annual reports of the company

iii) Newspapers etc.

The sources of unpublished data are diaries, letters, unpublished internal

records made available by staff members etc.

Thus, the primary source of data collection was the interview and

questionnaire methods. The secondary data was collected through

magazines, annual reports of the company, internal records of the

organization and through websites.

ANALYSIS OF DATA

Once the collection of data is complete, it should be analyzed and

processed through classification tabulation etc in accordance with the

subject matter. A careful planning of the analytical framework should

therefore be done by the researcher. Data analysis is carried out by

arranging the data received by the employees in an excel sheet. This data

is then converted into graphical forms. Pie charts have also been used for

the tabulation and interpretation of data collected.

INTERPRETATION

After testing the hypothesis the researcher comes out with his

conclusions. The explanation of theory can also be considered as

interpretation.

QUESTIONNAIRE PREPARATION

The basic requisite of any research study is the appropriate data which

can be collected with the help of a schedule or a questionnaire. With the

help of questionnaire it is easy to determine the satisfaction level of so

many employees in the organization.

SAMPLING SIZE

The sampling size on which the analysis is based is 72.

SAMPLING TECHNIQUES

The sampling technique used for carrying out this study is RANDOM

sampling technique.

the researcher has to prepare a final report along with conclusion and

suggestions.

PREPARATION OF A BIBLIOGRAPHY

At the end of any research report a bibliography is generally added.

This is the list of books, publications, periodicals, journals, reports, etc

which are used by the researcher in connection with the study.

DATA ANALYSIS AND INTERPRETATION

Q. 1) How many facilities provided by the company to you?

25%

25%25%

25%

Canteen Housing

Education Medical

Conclusion:- Basic facilities are provided to the employees in the form of above

mentioned facilities.

Q.2) How many special facilities have you availed?

62%

30%

8%

2 to 5 5 to 6 6 and above

Conclusion:- More than six special facilities are availed by 62% employees.

Q.3) How many facilities are you availing on routine basis?

Conclusion:- all the employees availing routine welfare facility 60% are saying

that they are availing 10 and above facilities on routine basis rest 25 % and 15%

saying that they are availing 5 to 10 and 1 to 5 respectively.

60%25%

15%

1 to 5 5 to 10

10 and above

Q.4) How many facilities are provided for education of children to employees?

35%

25%

40%

Bus facility

School facility

Education loan facil-ity

Conclusion:- This suggest employees are quit satisfied with the facilities provided

to them and it also help in improving their morale.

Q.5) Are you getting wages as per basic minimum criteria allotted by

government?

75%

20%

5%

Yes No

No Suggestions

Conclusion:- 75% of the employees are accepted that they are getting wages as per

the basic minimum criteria allotted by government.

Q.6) How much time it will take for sanctioning special welfare facilities?

10%

50%

40%1 week

2 to 3 week

3 to 4 week

Conclusion:-Welfare facility can those be sanctioned within a time period of 2 to 3

week making the progress. Quite easy for employees.

Q.7) Is there suitable ventilation and good environment in the work place?

65%

20%

15%

Yes

No

No Suggestions

Q.8) Is the work place regularly cleaned?

YES NO0

10

20

30

40

50

60

70

80

90

Q.9) How much are you satisfied by the procedure of availing routine welfare

facilities?

30%

60%

5% 5%

highly satisfied

satisfied

partly satisfied

not satisfied

Conclusion:- The 30% of the employees are highly satisfied, 60% are satisfied and

rest of the employees is 5% partly satisfied and 5% are not satisfied.

Q.10) How much are you satisfied by the procedure of availing special welfare

facilities?

62%

28%

6%4%

highly satisfied

satisfied

partly satisfied

not satisfied

Conclusion:- 62% employees are highly satisfied, 28% are satisfied and rest of the

employees are 6% partly satisfied and 4% are not satisfied.

Q.11) Kindly suggest the methods of improving or adding special welfare

facilities?

17%

75%

8%No improvement

early action should be taken

proper time should be taken

Q.12) Does welfare benefits provided by the organization plays as a

motivational factor?

53%45%

2%

highly agree

agree

disagree

Conclusion:- 53% employees are highly agree that the welfare benefits provided by

the organization plays a motivational factor.

Q.13) Do you get medical reimbursement on time?

53%

30%

2%15%

yes and with full re-imbursementyes but with reduced reimbursementNoNot applicable

Conclusion:- 53% employees agree that they gets full medical reimbursement.

Q.14) Briefly explain the procedure of availing routine welfare facilities in

points?

25%

70%

5%making appli,submit prof n imme sanc

only application is required

just an approach

Conclusion:- 5% employees says that just an approach is required to avail the

routine welfare facility while 25% employees says that to make the application

submit the proof and the 70% employees says that only application is required.

Q.15) Briefly explain the procedure availing the special welfare facilities in

points?

75%

5%

20%lengthy process

not availed

apply take approval n show proof

Conclusion:- 5% of the employees of organization says that they had not availed

any special welfare facility 75% says that the procedure is apply the approval and

show proof and the other 20% says that the procedure is too lengthy process.

OBSERVATION AND CONCLUSION

The employees of the organization are found to be satisfied with the facilities

provided to them by the company.

They still want more focus on family welfare. They want that the time period for

sanctioning special welfare facility should be reduced.

- More than 70% of the employees agree that the welfare facilities are

provided to them and they are availing special welfare facilities according

to their need.

- A neat, clean and peaceful environment of the organization helps in

maintaining satisfaction and enthusiasm to perform work among the

employees.

- The employees of the Nagpur Area Office of WCL are highly satisfied

with the routine welfare facilities which they are availing on a regular

basis.

- The routine welfare facilities are availed by each employee in the

organization by simply filling an application, without any proof and the

time required is also nominal.

- The time required for sanctioning the special welfare facilities is 2-3 week.

- The process of availing special welfare facility is very lengthy and hence it

can be availed by following simple process.

Conclusions

Labor regulations are generally introduced to improve the lot of workers.

However our results suggest that in India they are not achieving this goal. Not

only regulations have created large costs for society, but they haven’t raised

workers’ labor share. Instead, workers have been left with an equal share of a

much smaller cake. In the process a large number of job opportunities in the

registered sector have been lost, and while some workers have found refuge in

the informal sector, the swelling ranks in this sector are likely to be associated

with lower earnings in this sector.

We also find that while regulations such as chapter Vb of IDA tend to get all

the attention, there are important costs associated with regulations that

increase the cost of settling industrial disputes. If anything, our findings

suggest that their costs for society and for registered sector workers may be

higher than those associated with job security laws. By reducing investment,

employment and wages, they generate pure costs for workers and for the

society as a whole. Improving the conciliation-arbitrationadjudication

is a pending reform that could bear important gains for all parties involved

Nonetheless, the attention on chapter Vb is well placed. Our results suggest

important employment effects associated with the enactment of amendments

to this chapter.

Moreover, even when earnings may increase somewhat as a result of such

policies, registered sector workers lose as employment opportunities dwindle

and their wage bill declines with employment. Labor intensive sectors such as

textiles are the hardest hit eroding the comparative advantage of India in labor

intensive industries, and in the process removing viable job opportunities for a

large number of people. Perhaps not surprisingly, contract labor has become a

common way to deal with these problems. Yet, such solution is no panacea. It

further expands the degree of labor market segmentation by generating first

and second-class workers within the manufacturing registered sector.

Secondly, the widespread use of contract labor does not seem alleviate the

adverse effects of labor regulations, particularly in regards to employment.

Nonetheless, it has some positive direct effects on employment independently

on labor regulations. Therefore, while further liberalization of the use of

contract labor is likely to create some additional jobs and increase output and

investment, it is unlikely to bring back the jobs lost due to inappropriate labor

regulations.

India must find alternative way to improve labor conditions for the majority of

workers. While traditionally portrayed as labor advances against the abuses of

capital, current labor regulations favor no one. The answer to this conundrum

does not involve a complete deregulation of the labor market. Instead, it

requires better regulation (and appropriate enforcement) so workers’

fundamental rights can be protected and jobs can be created.

SUGGESTIONS AND LIMITATIONS

SUGGESTIONS

1) Sanctioning time of special welfare facility should be reduced.

2) New facilities should be added to the existing ones by early action taken by

management.

3) Medical reimbursement should also be continued after the retirement.

LIMITATIONS

1) The study does not cover the entire work for as sample size is 72.

2) The study is based on a particular class of employees i.e. Officer, clerk etc.

3) The result depends on the answers received from respondent which may be

biased.

BIBLIOGRAPHY

Sr.No Authors Year Title City of

publication

Publisher

1 V.S.P.Rao 2000 Human

Resource

New Delhi Excel Books

2 K.Ashwathappa 1997 Human

Resource and

Personal

Management

New Delhi Tata Mc

Graw-Hill

Publishing

Co. Ltd.

3 Company

Magazines-

Khanan Bharti

Pragati

Nagpur WCL Coal

Estate, Civil

Lines, Nagpur

Annual Reports of Organization

Internal Records of Organization

Documents

Labour Welfare at Gupta Overseas Agra