CHAPTER III

LABOUR WELFARE - AN OVER VIEW

3.0. Introduction.

Labour welfare is one of the major determinants of industrial relations.

The development of community and society depends only on the development of
labours. The importance of labour welfare work is beyond the stage of debate and
is recognized as an integral part of industrial tradition in all industrially advanced
countries. Labour welfare is a vital part of business organisation and management
now-a-days attaches more important to human angle. It increases the productivity,
as well as productive efficiency of the workers and induces in them a new spirit of
self-realization and consciousness. The labour welfare scheme may be regarded as
a wise investment

3.1. Concept of Labour Welfare.

The term welfare suggests any ideas, meanings and connotations, such as
the state of well-being, health, happiness, prosperity and the development of
human resources. The concept of welfare can be approached from various angles.
Welfare has been described as a total concept. It is a desirable state of existence
involving physical, mental, moral and emotional well-being. All these four
elements together constitute the structure of welfare on which its totality is based.

The social concept of welfare implies the welfare of man, his family and
his community. There is interconnection of these three aspects, in the sense that
all the three work together or individually supplement one another, in a three-
dimensional approach, each serving as ends and means.

Welfare is called a relative concept, for it is related to time and space.

Changes in it have an impact on the system of welfare as well. As welfare is
growing and dynamic, the welfare potential changes, as a result of which its
content keeps on varying and has to keep pace with the changing times. Also, the
characteristics of welfare vary, for it depends largely on the development of a
nation in all fields. Its meaning and components, therefore, differ from country to
country and from place to place.

Welfare is also a positive concept. In order to establish a minimum level

of welfare, it demands certain minimum acceptable conditions of existence,
biologically and socially. This positive nature calls for the setting-up of the
minimum desirable standards necessary for certain components of welfare, such
as health, food, clothing, housing, medical assistance, insurance, education,
recreation, job security, and so on. Thus it has to specify the starting point for
building levels of welfare.

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 adjust to social transition in his work like, family life and social life. On
the negative side, it functions in order to neutralize the baneful effects of large-
scale industrialisation and provides 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 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.

The concept of labour welfare, however, is flexible, elastic and differs

from time to time, region to region, industry to industry and country to country,
depending upon the value system, level of education, social customs, degree of
industrialization and the general standard of the socio-economic development of
people. It also relates to the political situation in a country. Further, it depends
upon the kinds of problems with which society is confronted as well as on the
structure of the industry. It is moulded according to the age-group, sex, socio-

38
cultural background, marital status, economic status and educational level of the
employees in various industries. This nature of the concept of labour welfare
makes it very difficult for us to give a precise, all-inclusive single definition of the
phrase.

The concept of labour welfare originated in the desire for a humanitarian

approach to the sufferings of the working class. Later, it became a utilization
philosophy which worked as a motivating force for labour and for those who were
interested in it.

3.2. Interpretations of Labour Welfare.

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 of worker Another definition implies that welfare is fundamentally
an attitude of mind on the part of management, influencing the method by which
management activities are undertaken1. The emphasis obviously is on the
Attitude of mind.

In the Encyclopedia of Social Sciences welfare is defined as 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 customers of the industry and the conditions
of the market.2

Yet another definition is Anything done for the comfort and improvement,
intellectual and social, of the employees over and above the wages paid, which is
not a necessity of the industry.3.

Labour welfare is also understood to mean 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

39
surroundings and to provide them with amenities conducive to good health and
good morals.4

Some prefer to include under welfare activities, anything done for the
intellectual, physical, moral and economic betterment of the workers, whether by
employers, by Government or by other agencies, over and above what is laid
down by law or what is normally expected as part of the contractual benefits for
which their workers may have bargained.5

It is for the benefit of their employees over and above the minimum
standard of working conditions fixed by the Factories Act and over and above the
provision of social legislation providing against accident, old age, unemployment
and sickness.6

labour welfare is nothing but such services, facilities and amenities as

adequate canteens, rest and recreation facilities, sanitary and medical facilities,
arrangements for travel to an from work and for the accommodation of the
workers employed at a distance from their homes, and such other services,
amenities and facilities, including social security measures, as contribute to an
improvement in the conditions under which workers are employed.7

Here, it may be pointed out that social security is considered to be one of

the important aspects of labour welfare8 These services are rendered to workers
and their families by an industrial enterprise with the purpose of raising their
moral, material, social and cultural levels and so that they may adjust to better
life.9

The whole field of welfare is said to be one in which much can be done
to combat the sense of frustration of the industrial workers, to relieve them of
personal and family worries, to improve their health, to afford them means of self-
expression, to offer them some sphere in which they can excel others, and to help
them to a wider conception of life.10

40
 Thus, it would appear as if a series of sharply divergent opinions exist on
the motives and merits of industrial welfare work.11

A significant definition describes labour welfare work as the voluntary

effort of the employer to improve the living and working conditions of his
employees; the underlying assumption, of course, being that the first essentials to
the welfare of the employees are steady work, a fair wage and reasonable hours of
labour. That the employer has a further obligation and should not attempt to
substitute welfare work for better wages and shorter hours is clear from its added
pronouncement that the spirit of the age has thrown upon the employers, duties
involving a proper regard for the comfort, health, safety and well-being of the
employees.12

Anyhow, the meaning or connotation of labour welfare must necessarily

be elastic, bearing a some-what different interpretation in one country from
another, according to different social circumstances, the degree of
industrialization and the educational development of the worker.13

When we go through the above definitions, it is apparent that none is

complete or comprehensive. There is no precise, definite outline or demarcation
in this subject. More often that many of them give rise to ambiguity and overlap
in certain areas of action. However, what is definite is that labour welfare
promotes the well-being of workers in a variety of ways. Any kind of voluntary
service will come under the purview of labour welfare if it aims at helping the
worker to work better and in more congenial surroundings, and also to live better
in a more meaningful manner, physically, socially, morally, economically and
intellectually.

3.3. Labour Welfare and Social Work

It has to be noted that, in one respect, welfare work is fundamentally

distinct from social work. The latter implies no relation between employer and

41
employee, but rather suggest the activities of a state department or a volunteer
organisation.14 Social work reaches the entire society, whereas labour welfare
work, which is mostly the work of an employer, provides coverage only for
industrial society. Social work offers advice and assistance in the solution of
individual or family problems. Labour welfare work aims at solving the problems
related to adjustment and corresponding activities. However, though labour
welfare is not entirely social work, it is a resultant area of the latter and make use
of the scientific techniques and body of knowledge which have been evolved in
the science of social work, particularly in the solution of various problems where
the human factor plays a predominant role. Labour welfare thus becomes a
specialized branch of social work, offering assistance to a special group of people
consisting of industrial labourers and their families.

3.4. Theories of Labour Welfare.

Seven theories, constituting the conceptual framework of labour welfare,

have so far been outlined 15 These are:-

3.4.1. The Police theory of Labour Welfare

This is based on the contention that a minimum standard of welfare is

necessary for labourers. Here, assumption is that without compulsion, periodical
supervision and fear of the punishment, employers will not provide even the
minimum welfare facilities for workers. Apparently, this theory assumes that man
is selfish and self-centered, and always tries to achieve his own ends, even at the
cost of the welfare of others. In this theory, the emphasis is unfortunately on fear
and not on the spirit of welfare which should be the guiding factor.

3.4.2. The Religious Theory.

This is based on the concept that man is essentially a religious animal.

Even today, many acts of man are related to religious sentiments and beliefs.
These religious feelings sometimes prompt an employer to take up welfare

42
activities in the expectation of future benefit, either in this life or in eternal life.
The religious basis of welfare, however, cannot be rational. It is neither universal
nor continuous.

3.4.3. Philanthropic Theory.

This theory is based on mans love for mankind. In Greek, Philos means
loving and anthropes means man. So instinctive urge by which he strives to
remove the suffering of others and promote their well-being. This drive may be a
rather powerful one and may impel him to perform noble sacrifices. This theory
thus depends largely on mans love or other, and therefore cannot be universal or
continuous.

3.4.4. Trusteeship Theory.

This is also called the paternalistic Theory of Labour Welfare, according to

which the industrialist or employer holds the total industrial estate, properties,
and profits accruing from them in trust. In other words, he uses it for himself, for
the benefit of his workers, and also for society. Here, too, labour welfare depends
on the initiative of the top management, since it has no legal sanction, its value is
related to the moral conscience of the industrialist.

3.4.5. The Placating Theory.

This theory is based on the fact that labour groups are becoming
demanding and militant, and are more conscious of their rights and privileges than
ever before. Their demand for higher wages and better standards cannot be
ignored. Psychologically, this theory is unsound, though it has often been acted
upon to secure the workers co-operation.

3.4.6. Public Relations Theory.

This theory provides the basis for an atmosphere of goodwill between

labour and management and also between management and the public. Labour

43
welfare programmes, under this theory, work as a sort of an advertisement and
help an industrialist to build up good and healthy public relations. Here welfare
may tend to become a publicity stunt. Nevertheless, these programmes do
improve industrial relations.

3.4.7. The Functional Theory.

This is also called the Efficiency Theory. Here welfare work is used as a
means to secure, preserve and develop the efficiency and productivity of labour.
It is obvious that if an employer takes good care of his workers, they will tend to
become more efficient and will thereby step up production. This theory is a
reflection of contemporary support for labour welfare. It can work well if both the
parties have an identical aim in views that is, higher production through better
welfare.

3.5. Principles of Labour Welfare.

Labour welfare is dependent on certain basic principles, which must be

kept in mind and properly followed to achieve a successful implementation of
welfare programmes. The Underlying rules of Labour welfare are explained under
the following points

The labour welfare activities should pervade the entire hierarchy of an

organisation. Management should be welfare-oriented at every level.
The employer should not bargain labour welfare as a substitute for wages
or monetary incentives. In other words, the workers have a right to
adequate wages in addition to welfare measures.
The employer should look after the welfare of his employees as a matter of
social obligation. The Constitution of India, in its Directive Principles of
State Policy, also emphasizes this aspect of labour welfare.
Labour Welfare must aim at helping employees to help themselves in the
long run. This principle of self-help will enable them to become more
responsible and more efficient.

44
 There should be proper co-ordination, harmony and integration of all
labour welfare services in an undertaking.
The labour welfare work of an organisation must be administratively
viable and essentially development oriented.
The management should ensure co-operation and active participation of
unions and workers in formulating and implementing labour welfare
programmes.
There should be periodical assessment or evaluation of welfare measure
and necessary timely improvements on the basis of feedback.

3.6. Evolution of the Concept of Labour Welfare

Labour welfare activity in India was largely influenced by humanitarian

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

3.6.1. Before Independence.

The earliest legislative approach could be traced back to the passing of

the Apprentices Act of 1850. This Act was enacted with the objective of helping
poor and orphaned children to learn various trades and crafts. The next Act was
the Fatal Accidents Act of 1853 which aimed at providing compensation to the
families of workmen who lost their life as a result of actionable wrong. Then
came the Merchants Shipping Act of 1859, which regulated the employment of
seamen and proved for their health, accommodation, and necessary articles of
personal use. The deplorable conditions in which labour worked in the textile
mills in Bombay during those days, as testified by the Factory Commission of
1875 was the immediate cause for the passing of the Act. The Act applied to

45
factories employing not less than 100 persons and using power. Under this Act,
the employment of children below the age of 7 years was prohibited, while those
between 7 and 12 years were not to work for more than 9 hours a day. An hours
daily rest and 4 holidays in a month were prescribed for children. Adult labour,
however, was not protected in any manner. It was found inadequate in many
respects. Anyhow; it recognized the right of the government to safeguard the
interests of the workers by means of suitable legislation. The movement to
improve the working conditions of Indian labour started with the passing of the
first Indian Factories act in 1881. Earlier attempts at legislation in this country
were mainly aimed at regulation of employment.

The Mulock Commission was appointed by the Government of Bombay

Mill Hands Association brought the workmen together on two different occasions
in 1884 and presented on their behalf a charter of demands to the Commission.
Under pressure from labour, the Bombay Mill Owners Association conceded the
demand for a weekly holiday.

The Factories (Amendment) Act, 1891 was passed as a result of the

recommendations of the Bombay Factory Commission of 1884 and the Factory
Labour Commission of 1890. It applied to all factories employing 50 persons or
more. The lower and upper age limits for children were raised to 9 and 14
respectively and their hours of work were limited to 7 hours. Women were
followed to work for 11 hours in a day with one and a half hours rest. Provisions
relating to better ventilation, cleanliness and for preventing overcrowding in
factories were also made. In the meanwhile, voluntary action in the field of labour
welfare also made considerable progress. Group efforts came to the forefront. The
Amalgamated Society of Railway Servants of India and Burma (1897) started a
number of friendly benefit schemes. The Printers Union , Calcutta (1905) and the
Bombay Postal Union (1907), introduced mutual insurance schemes, night
schools, educational stipends, unreal allowances, and so on. The Government of
India appointed a Commission in 1907 to study the working conditions of labour
in industry and make recommendations. A more comprehensive Act was

46
introduced in 1911 on the basis of the recommendations of this Commission. The
Indian Factories Act of 1911 was made applicable also to seasonal factories
working for less than 4 months in a year. The hours of work for children were
reduced to 6 per day. The hours of work of an adult male worker were specified
for the first time to 12 hours a day. Certain provisions were also made for the
health and safety of the industrial workers.

In 1910, the Kamgar Hitvardhak Sabha was established which helped the
workers in various ways. The outbreak of the First World War in 1914 led to a
number of new developments. The Russian Revolution had a tremendous impact
on the attitudes of government and society towards labour. During the war years
(1914-18) the number of factories and the number of persons employed therein
increased. Wages did not keep pace with the rising prices and profits. The
working class became more conscious as a result of the general unrest following
the war. The establishment of the International Labour Organisation in 1919 was
another important landmark in the history of labour welfare movement in our
country. The ILO declared that universal peace can be established only if it is
based upon social justice. The formation of AITUC (1920), the first central trade
union organisation in our country, also helped in furthering the cause of welfare
movement.

As a result of all these developments, the importance of labour in

economic and social reconstruction of the world was recognized. All these factors
created the background for a new factory law. Following industrial unrest in 1919
and 1920, the Government of India passed the Indian Factories (Amendment) Act,
1922 which was made applicable to all the factories using power and employing
not les than 20 persons. Children below 12 years of age were not to work in
factories and those between the years of 12 and 14 were not to work for more than
6 hours a day. Children and women were not to be employed between 7.00 pm
and 5.30 a.m. The hours of work for adults were limited to 60 in a week, and 11
in a day. Factory inspection was improved by the appointment of full time factory
inspectors possessing technical qualifications.

47
 The Royal Commission on Labour under the chairmanship of J.H Whitley
was appointed in 1929 to enquire into and report on the existing conditions of
labour in industrial undertakings, plantations, mines, and so on. The Commission
made an in-depth survey of different aspects of health, efficiency, welfare,
standard of living, conditions of work and relations between employers and
employees and submitted its monumental report on March 14, 1931. It
recommended the enactment of a number of legislations relating to payment of
wages in time, minimum wages, need for health insurance for industrial workers,
and improvement of working conditions of plantation workers. Most of the
recommendations of this Commission were accepted by the government and they
constituted the powerful influence that led to the enactment of the Factories Act of
1934.

Apart from amending and consolidating all the previous enactments, the
Factories Act , 1934 introduced a number of prominent changes. It drew a
distinction between perennial and seasonal factories. The hours of work for
children between 12 and 15 were reduced from 6 to 5 per day, while those for
women from 11 to 10 in all kinds of factories. The Act also made provision for
the improvement of working conditions within a factory. For the first time in
factories legislation, welfares measures were also thought of and provision was
made to provide rest sheds and crches by big factories.

A number of committees also were set up by the provincial governments to

enquire into the working conditions of labour including the provisions of housing
facilities. Some of these committees were: Bombay Textile Labour Enquiry
Committee (1937), the Kanpur Labour Enquiry Committee (1937), the Central
Provinces Textile Labour Enquiry Committee (1938) and the Bihar Labour
Enquiry Committee (1938). These Committees conducted detailed investigations
regarding housing facilities available in various industries and drew pointed
attention of the government towards inadequate and unsatisfactory housing
conditions of industrial workers.

48
 Another milestone in the field of labour welfare was reached with the
appointment of Labour Investigation Committee (Rege Committee) in 1944. The
Committee was asked to investigate the problems relating to wages and earnings,
employment, housing and social conditions of workers. The Committee went into
details of the working conditions, including welfare measures available for
workers employed in a large number of industries. The Committee covered
different areas in labour welfare such as housing policy, rest and recreation,
occupational diseases, relief in the case of old age and death, crches, canteens,
medical aid, washing and bathing facilities, educational facilities, and so on. For
the first time in India, this Committee highlighted the importance of welfare
measures for workers in improving their social and economic life. It also
emphasized the need for strengthening the enforcement machinery for effective
implementation of various laws.

In May 1944, the grand Charter of Labour, popularly known as the

Declaration of Philadelphia, was adopted by the member states of the ILO.
Amongst its aims and objects, the Declaration said that labour is not a commodity
and that it is entitled to a fair deal as an active participant in any programme of
economic development or social reconstruction.

The Second World War brought about far-reaching consequences in all

fields of activities. The need for sustained and increased production gave a fillip
to Indian industry. The number of factories and factory employees increased
enormously. The government took the initiative and actively promoted various
welfare activities among the industrial employees. A number of legislations for
the welfare of the working classes were also enacted.

3.6.2. After Independence.

After independence, the labour welfare movement acquired new

dimensions. It was realized that labour welfare had a positive role to play in
increasing productivity and reducing industrial tensions. The State began to
realize its social responsibilities towards weaker sections of the society. The

49
emergence of different central trade union organisations like INTUC (1947),
HMS (1948), UTUC (1949), BMS (1955), CITU (1970), NLO (1969) gave a
further fillip to the growth of labour welfare movement.

Mainly on the basis of the recommendations of the Rege Committee, the

Government of India enacted the Factories Act, 1948. To draft this important
piece of legislation, the services of Sir Wilfred Garrett were utilized. He drafted
the legislation in detail using his wide experience of Factories Law. The
Factories Act of 1948 came into effect from 1st April, 1949. It is a comprehensive
piece of legislation. The Act applies to all establishments employing 10 or more
workers where power is used and 20 or more workers where power is not used
and where a manufacturing processes being carried on. However, Section 85 of
the Act empowers the state governments to extend all or any provisions of the Act
to any premise. It contains many important provision regarding health, safety,
welfare, employment of young persons and children, hours of work for adults and
children, holidays, and leave with wages. The responsibility of administration of
the Act rests with the State Government who administers it through their own
Factory Inspectorate. The compliance with the provisions of the Act wholly rests
on the occupier of the factory, though certain obligations were also imposed on
workers. The Directorate General of Factory Advice Service and Labour Institute
coordinate the work of enforcement of the Factories Act throughout the country,
frame Model Rules and suggest amendments to the Act and the Rules in
consultation with the State Chief Inspectors of Factories. The Constitution of
India framed a list of Fundamental Rights and Directive Principles of State Policy
for the achievement of a social order based on Justice, Liberty, Equality and
Fraternity. It is stated in the chapter embodying the Directive principles that the
State, shall strive to promote the welfare of the people by ensuring and protecting
as effectively as it may a social order in which justice, social, economic and
political, shall inform all the institutions of national life.

50
3.7. Labour Welfare in Five year Plans

The phenomenon of labour welfare is considered as an important issue by

all Governments. Since it aims to achieve the welfare of public at large in a labour
abundant country. So the concept got importance in various five year plans of the
government. The First Five Year Plan (1951-56) paid considerable attention to
the welfare of the working classes. It laid emphasis on the development of welfare
facilities, for avoidance of industrial disputes and for creating mutual goodwill
and understanding. During this period the Plantations Labour Act, 1951, the
Mines Act, 1952 and the Employees Provident Fund Act, 1952, were enacted. A
subsidized housing scheme for industrial workers was evolved in 1952. The state
governments passed various laws regarding housing for industrial labour, e.g, the
Bombay Housing Board Act, 1948.

During the Second Five Year Plan (1956-61) the importance of better
working conditions had been progressively recognized. Greater stress was laid on
the creation of an industrial democracy. The second Five Year Plan saw further
developments in the field of labour welfare. New enactments were made to cover
seamen and motor transport workers. The coverage of the Employees State
Insurance Scheme was also extended ringing to more workers. A comprehensive
Scheme known as Dock Workers (Safety, Health and Welfare) was drawn up in
1961. In 1959, the Government of Assam passed an Act called the Assam Tea
Plantations Employees Welfare Fund Act. In April 1956, a new Plantation
Labour Housing Scheme was evolved which envisages a certain amount of loan
for construction of house for workers. Various states enacted legislation to
regulate the working conditions in shops and establishments. The Second Five
yean Plan period also saw a number of enactments in the field of industrial
housing by various state governments.

51
 The Third Five Year Plan (1961-66) stresses the need for more effective
implementation of various statutory welfare provisions. It recommended
improvement in working conditions and emphasized greater productivity and
more efficiency on the part of workers. It called upon the state governments to
strengthen the factory inspectorates for effective implementation of various labour
enactments. The plan also recommended stetting up of co-operative credit
societies and consumers stores for industrial workers, and emphasized the role of
trade unions and voluntary organisations in administering such co-operatives.
Some of the legislative measures during this period include the Maternity Benefit
Act, 1961, Apprentices Act, 1961, Iron-Ore Mines Labour Welfare Cess Act,
1961 and Payment of Bonus Act, 1965, Some of the state governments have also
passed labour welfare fund enactments.

The Fourth Five Year Plan (1969-74) provided for the expansion of the
Employees State Insurance Scheme to cover medical facilities to the families or
insured persons, and to cover shops and commercial establishments in selected
centres. During the Fourth Plan period, the Contract Labour (Regulation and
Abolition) Act, 1970, the Payment of Gratuity Act, 1972 and the Employees
Family Pension Scheme 1971 were passed. The plan directed the programmes for
welfare centres, holiday homes, and recreational centres should be included under
the state plan and stress be laid on strengthening labour administration machinery
for effective enforcement of labour laws. For labour welfare programmes, a
provision of Rs.37.11 crore was made in the plan.

The fifth five year plan (1974-79) also laid down programmes for labour
welfare. For promoting industrial safety in increasing measure, the Plan provided
for setting up of safety cells in various states. An amount of Rs. 57 crores was
provided for labour welfare including craftsmen training and employment service.

52
 In the Sixth Plan (1980-85) according to the Planning Commission, the
thrust of the programmes should be on implementing effectively the measures
contemplated in different legislative enactment and in extending the coverage of
the Employees State Insurance Scheme, the Employees Provident Fund and
Family Pension Scheme; Special Programmes would also need to be undertaken
by the state governments for the benefit of agricultural labour, artisans, handloom
weavers, fishermen, leather workers and other unorganized workers in the rural
and urban areas.16.

In the Seventh Five Year Plan (1985-90) emphasis was given on labour
welfare, improvement in working and living conditions of unorganized labour-not
only in rural areas but also in the urban areas. According to the Plan, effective
implementation of the existing legislation would greatly improve matters for the
unorganized urban workers. Efforts would be made not only to train and upgrade
the skills of the workers but also to educate them and make them aware of the
programmatic and legislative provisions available for them. Genuine and effective
voluntary organisations would be involved in the process of organizing and in
actual implementation of the schemes

The plan laid down certain major tasks for women labour. These are:-

To treat them as specific target groups in all rural development

programmes
To ensure that in all asset endowment programmes, women have rights
over asset and resources
To properly diversify vocational training facilities of women to suit their
varied need and skills
To encourage appropriate technologies, equipment and practices for
reducing their drudgery and increasing their productivity.
To provide crche facilities and family planning centers

53
 To establish marketing estates at the Sate level
To increase womens participation in trade unions and in decision
making and
To improve and enlarge the scope of the existing legislation for women
workers.

The Eight Five Year Plan (1992-97) laid stress on strategic improvement
in the quality of labour, productivity, skills and working conditions and provision
of welfare and social security measures, especially of those working in the
unorganized sector for quantitative and qualitative enhancement of employment
opportunities.

The Ninth Five year Plan (1997-2002), the planning process attempts to
create conditions for improvement in labour productivity and for provision of
social security to supplement the operations of the labour market.

The objective of Tenth Plan (2002-2007) was to increase the coverage of

the labour market institutions. The present infrastructure for improving labour
productivity and for ensuring the welfare of workers covers only a very small
segment of the labour force. The essential condition for this is the provision of
gainful employment to the entire labour force. The planning process supports the
attainment of economic and social objectives in the labour sector through a set of
strategies. Appropriate conditions at work are ensured by measures taken to
promote safety at the workplace and minimizing occupational hazards. A
reasonable return on labour is facilitated by labour laws that regulate payment of
wages and provision of social security to workers. because number of jobs in the
public sector (which has a three-fourth share in organised sector jobs) has reduced
and employment elasticity in the private sector has decreased significantly.

54
 The following table shows the plan outlay for labour welfare in various
five year plans.
Table 3.1
Plan outlay for Labour Welfare.
Plan Period Outlay(Rs. In Lakhs)
First Plan 1951-56 160

Second Plan 1956-60 1,344

Third Plan 1961-65 1,940

Annual Plan 1966-69 1,156

Fourth Plan 1970-74 7,639

Fifth Plan 1974-79 5,700

Annual Plan 1980-81 4

Annual Plan 1981-82 5

Sixth Plan 1980-85 2,709

Seventh Plan 1985-90 3,330

Eighth Plan 1992-97 1,315

Ninth Plan 1998-02 2812

Tenth Plan 2002-07 3416

Source: Various Plan Documents

55
 The Committee on Labour Welfare (1966-69), set up by the Government
of India under the chairmanship of R.K Malavya reviewed at length the
functioning of various statutory and non-statutory welfare schemes in industrial
establishments, both in the public and private sector, including mines plantations,
railways, and made comprehensive recommendations for their improvement. The
National Commission on Labour (1966-69) also covered several aspects of
welfare services in different establishments and made useful suggestions of their
improvement.

The above survey of the labour welfare movement shows that there are
schemes of two types in the development of labour welfare . Firstly, a movement
through voluntary effort by some of the employers and secondly, the legislative
movement. In the field of labour welfare the government is now playing a triple
role-that of a legislator, administrator and promoter. In spite of all these efforts,
the welfare work in India is still considerably below the standard set up than in
other countries. However, it has come to stay as an accepted feature of
employment conditions and is bound to make rapid progress in the years to come,
especially when the Indian Republic is wedded to the ideal of a welfare state with
socialistic objectives.

3.8. Labour Welfare Practices in Europe.

An ILO study on Welfare Facilities for Workers in Industry in Western

and Eastern Europe, released in 1964, gives us a fairly comprehensive account of
the Labour welfare measures existing in European Countries. Among these
countries, some are the oldest industrialized states in the world and enjoy high
standards of living. They also have very well developed social institutions. In
most of these countries, minimum protective measures are provided through
legislation and through labour administration services, and cover accident risks
and health hazards of industrial employment. Over and above these protective
minimum standards of legislation in these developed countries, some measures,
ensuring the comfort and positive well-being of workers during working hours

56
and outside working hours, have been considered. Drinking water, washing
facilities and sanitary conveniences come under health measures, and have been
made available to industrial labour as a result of legal provisions.

Due to general rise in the standards of living and increased and improved
social services and benefits which the state provides in Western European
countries, social welfare schemes on the part of industrial undertakings may not
be all that necessary. National schemes providing medical care benefits cover a
majority of workers in industry as well as their dependents. In most Western
Europe17, national social security systems are well developed and cover various
social contingencies which concern workers and their families such as
unemployment, old age, sickness and death. Social service in the past had been
offered by several employers to their workers. But now personal social work that
is, professional social work in industrial undertakings has become quite popular in
Western European countries.

In Eastern European countries18, the means of production have been

socialized on the basis of national planning. There is no separate class of private
employers, for there is no private ownership of capital. Trade unions look after
workers welfare by negotiating collective agreements and by participating in
national economic plans at different levels. Governments and trade unions in
Eastern European countries take keen interest in the improvement of the health
and nutritional standards of workers. Trade unions also look after the workers
transport facilities to and from work, and offer cultural and recreational facilities
for them and their families. Statutory provisions have been made to enforce the
responsibility of undertakings for these matters.

Educational facilities and vocational training are the responsibility of the

state and of public authorities at the national, regional and local levels. As regards
their health, governments and trade unions in Eastern European countries organize
medical services for the protection of the workers health.

57
 Statutory provisions emphasize the responsibility of trade union in the
administration of welfare facilities. There is a certain amount of uniformity of
practice in all the countries. Industrial undertakings play an important role in
administering certain facilities provided at the places of work, such as sanitary and
hygienic facilities, canteens and other feeding arrangements. They have a partial
responsibility for the construction of housing accommodation, rest homes and
holiday resort. Trade union are directly responsible for the administration of
housing allocations and maintenance, for recreation and cultural facilities,
workers clubs, holiday resorts, sports associations and places of culture. They
administer and supervise all the services provided for the community as a whole.
A large number of officials, some of them paid and others on an honorary basis,
are employed by trade unions to discharge administrative responsibilities and
supervise welfare facilities. The management directly pays for sanitary facilities,
seats for workers, first-aid and measures for health protections at the place of
work. Works-funds are set up by industrial undertakings and economic
organisations in order to provide incentives to workers and to improve the cultural
and welfare facilities which have been provided for them. The five main sources
of finance for workers welfare amenities and services are :

The workers funds of an industrial undertaking

Grants from trade union funds
State social insurance funds
Grants by managements, either voluntary or in accordance with the
agreements collectively entered into
Workers payments for such facilities as meals in canteens, house rent, club
fees, etc,.

We could see that most of these services are offered by employers with a
view to insuring good working conditions for their employees and very few of
these services however, involves any expenditure on the part of workers.

58
3.9. Necessity of Labour Welfare in India.

Since a developing country like India is still going through the process of
economic development, it is of great consequence and somewhat easier for her to
counteract effectively the harmful effects of the Industrial Revolution which have
adversely affected the people all over the world. The need for labour welfare was
strongly felt by the Committee of the Royal Commission on Labour as far back as
in 19831, primarily because of a lack of commitment to industrial work among
factory workers and also the harsh treatment they received from employers. This
need was emphasized by the Constitution of India in the Chapter on the Directive
principles of State Policy, particularly in the following Articles.

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 of securing just and humane
conditions of work and for maternity relief.

Article 43:- The state shall endeavor to secure, by suitable legislation or economic
organisation or in any other way, to all workers, agricultural industrial or
otherwise, work, a living wage, conditions of work ensuring a decent standard of
life and full employment of leisure and social and cultural opportunities, and in
particular, the state shall endeavour to promote cottage industries on an individual
or cooperative basis in rural areas.

The need for labour welfare in all sectors is clearly enunciated in the
Directive Principles of State Policy. Industrial workers today constitute
functionally a very significant and vulnerable element; they also contribute
substantially to the nations economy. But if we make an overall survey of the
living and working conditions of these industrial workers, the need for, and the
necessity of welfare services have become necessary to counteract the handicaps

59
to which the workers are employed, both in their work-life and folk-life, and to
provide opportunities and facilities for a harmonious development to the workers
personalities19.

In their work-life, workers have to put in long hours of work in unhealthy

surroundings. The drudgery of factory work continues to have an adverse effect
on them even after they knock off for the day. They are also far from their village
community. As most of them have migrated from rural areas, they are thrown into
an uncongenial environment which is also strange to them. As a result they fall a
prey to alcoholism, gambling and other vices, which demoralize them and
sometimes completely ruin them. The high rate of labour absenteeism in Indian
industries is indicative of the lack of commitment on the part of workers, for they
want to escape from their environment whenever possible. This absenteeism can
be reduced by the provision of good housing, family care, or canteens where
healthy; balanced diet is made available in congenial surroundings.

Good educational and training facilities for workers are also very
necessary in Indian industries because of the high rate of illiteracy and lack of
proper educational background among them. These facilities would also help in
decreasing the number of industrial accidents, increasing the worker efficiency
and their sense of commitment, and made it possible for them not to be exploited
by moneylenders. The close association between efficiency and welfare has been
recognized and discussed at various conferences, such as the Indian labour
Conference, and in the meetings of the National Productivity Council , Sports,
entertainment and other recreational facilities help workers to develop their health
and personality, and enable them to feel that the state and their employers are
interested in their welfare. These also would help in reducing the effect of the
drudgery of their work.

Family planning, child-welfare facilities and maternity care assist workers

in a variety of ways. They reduce infant mortality, improve the health of the
spouse and keep the family size to the required minimum. They also reduce the

60
workers anxiety and absenteeism because of sickness in the family. These
welfare programmes are indispensable in Indian conditions.

In these and many other ways labour welfare has an important, positive
and dynamic part to play in the industrial economy, particularly in developing
countries where, paradoxically, sub-standard socio-economic conditions, exist
despite the vast programmes of industrial development undertake in a planned
way. The provision for suitable labour welfare facilities designed to meet the
needs of migrant workers can help them settle down more easily in their new
working and living environment. A proper organisation and administration of
welfare facilities can play a vital role in promoting better working conditions and
living standards for industrial workers and also increasing their productivity,
especially in developing countries. It is obvious, however, that the scope of
labour welfare would depend on the kind of labour problems in existence and on
the types of welfare services which are needed in different situations.

3.10. Labour Welfare in India.

Labour welfare , by its very nature, must necessarily be elastic; bearing a

somewhat different interpretation in one country from another, according to the
different social customs, the degree of industrialisation and the educational
development of the worker20 limits, therefore, cannot be rigidly laid down for
the scope of labour welfare for all industries and for all times. They have to be
elastic and flexible enough to suit the existing conditions of the workers, and to
include all the essential prerequisites of life, and the minimum basis amenities.
Our Constitution, in its Directive Principles of State Policy, refers generally to
the promotion of the welfare of the people. In its specific application to the
working class, the necessity of securing just and humane conditions of work for
them has been highlighted; but what these conditions actually imply cannot be
specified in rigid terms for all times.

In the Report of the Committee on Labour Welfare, 1969, the scope of

labour welfare covered such services, facilities and amenities as adequate

61
canteens, rest and recreation facilities, sanitary and medical facilities,
arrangements for travel to and from work, for the accommodation of workers
employed at a distance from their homes, and such other services, amenities, and
facilities, including social security measures, as contribute to improvement of the
conditions under which workers are employed.21

While offering its own interpretation of the meaning of the scope of

welfare, the International Labour Organisation (ILO) observes: The term is one
which lends itself to various interpretations, and it has not always the same
significance in different countries. Sometimes, the concept is a very wide one and
it is more or less synonymous with conditions of work as a whole. It may include
not only the minimum standard of hygiene and safety laid down in general labour
legislation, but also such aspects of working life as social insurance schemes,
measure for the protection of women and young workers , limitation of hours of
work, paid vacations, etc. In other cases, the definition is much more limited, and
welfare, in addition to general physical working conditions, is mainly concerned
with the day-to-day problems of the workers and the social relationships at the
place of work. In some countries, the use of welfare facilities provided is confined
to the workers employed in the undertakings concerned, while in others, the
workers families are allowed to share in most of the benefits which are made
available22. On the other hand, Moorthy holds that labour welfare has two
sides, negative and positive. On the one side, it is associated with the
counteracting of the harmful effects of large-scale industrialization on the
personal, family and social life of the workers, while, on the other, and positive
side, it deals with the provision of opportunities for the worker and his family for
socially and personally good life.23.

The subject of labour welfare is thus fairly wide and it not limited to any
one country, one region, one industry or occupation. Its scope has been
described by writers and institutions of different shade in different ways and
from different angles. The line of demarcation cannot be very precise; but what
should be common is that a welfare measure should ameliorate the working and

62
living conditions of the workers and their families and make their lives more
meaningful. Labour services should:

Enable workers to live a richer and more satisfactory life.

Contribute to the productivity of labour and efficiency of the enterprise
Raises the standard of living of workers by indirectly reducing the
burden on their purse.
Be in tune and harmony with similar services obtaining in a
neighboring community where an enterprise is situated.
Be based on an intelligent prediction of the future needs of industrial
work, and be so designed as to offer a cushion to absorb the shock of
industrialization and urbanization on workers; and
Be administratively viable and essentially developmental in outlook.24

The scope of labour welfare, however, cannot be limited to facilities,

within or near the undertaking nor can it be so comprehensive as embrace the
whole range of social welfare or social services. It follows therefore, that all
extra-mural and intra-mural welfare activities as statutory and non-statutory
welfare measures undertaken by employers, the government, trade unions or
voluntary organisations fall with the scope of labour welfare. It brings under its
purview all welfare activities and amenities related to canteen, rest and recreation
facilities medical assistance, better health, nutrition and sanitation, travel to an
from work, education, housing holiday facilities, and so on. It can also include
social security measures which contribute to workers welfare such as industrial
health insurance, provident fund, gratuity, maternity benefits, workmens
compensation, pension, retirement benefits, etc. which are the species of the
larger family encompassed by the term labour welfare25.

3.11. Benefits of Welfare Activities.

Promotion of sound industrial relation by creating a feeling among

employees that they are in no way ignored by the management, so as to

63
 increase their co-operation and reduce unrest and conflict which
ultimately establish industrial harmony and peace.
Improvement in the workers capacity and efficiency thus leads to higher
productivity and reduced wastage and inefficiency in their part.
Motivating employees to remain with the organisation as its dependable
permanent workforce by reducing labour turnover and absenteeism with
enhanced interest in the job.
Imbibing in the employees a sense of commitment and loyalty towards
their enterprise
Improvement in the employees health and morality by motivating them
to be away from alcoholism, gambling, prostitution, criminal activities in
slums and so on.
Improvement in the motivation and morale of workers which in turn
create a sense of responsibility, self confidence and self respect in them.
Promotional and social advantage through higher industrial efficiency,
harmony and industrial democracy with a satisfied family life, higher
standard of living and good status in the society.

3.12. Statutory Welfare Provisions in India.

Employers in India are statutorily required to comply with the provisions

of various welfare amenities under different legislations. The Statutory Welfare
Facilities provided under the Factories Act, 1948, Plantations Labour Act, 1951,
Mines Act, 1952, Motor Transport Workers Act, 1961, and Contract Labour
(Regulation and Abolition) Act, 1970, have been discussed in this chapter.

3.11.1. Washing Facilities.

It was the Royal Commission on Labour which noted that the provisions of
suitable washing facilities for all employees though desirable were deficient in
many factories. The worker who lives in a crowded area has inadequate facilities
for washing, and bathing at home. Provisions of such facilities would add to his

64
comfort, health and efficiency. Section 42 of the Factories Act lays down that
every factory has to provide adequate and suitable washing facilities separately for
the use of male and female workers. Section 18(c) of the Contract Labour
(Regulation and Abolition) Act, provides that every contractor employing contract
labour in connection with the work of an establishment has to provide and
maintain washing facilities. Similarly Contract Labour Central Rules 1971 and the
Maharashtra Contract Labour Rules, 1971, the contractor has to provide and
maintain adequate and suitable washing facilities.

3.12.2. Facilities for Storing and Drying Clothing.

It is only the Factories Act which has incorporated such provision. Under
Section 43 of the Act a state Government may make rules for the provision of
suitable places for keeping clothing not worn during working hours and for the
drying of wet clothing. As per the Maharashtra Factories Rules, 1963, such
facilities shall include the provisions of separate rooms, pegs, lockers, or other
arrangements approved by the Chief Inspector in all classes of factories such as
engineering workshops, iron and steel works, oil mills, chemical factories, motor
garages, tanneries, and the like.

3.12.3. Facilities for sitting.

Every factory has to provide necessary sitting arrangements, particularly

for workers who are obliged to work in a standing position. It enables them to
take advantage of any opportunity for rest which may occur in the course of their
work. The chief Inspector of Factories may direct the occupier of any factory to
provide suitable seating arrangements as far as practicable.

3.12.4. First Aid Appliances.

The Royal Commission on Labour recommended that, in the case of all

factories where mechanical power is used, a first-aid-box of prescribed standard,
which need not involve any great outlay, should be provided and maintained in

65
different departments according to the number of workers employed, on the basis
to be laid down by the local governments. Section 21 of the Mines Act provides
for first-aid boxes and medical appliances on the same lines as that of the
Factories Act. Section 12 of the Motor Transport Workers Act has laid down a
statutory obligation on the employer to provide first-aid boxes equipped with the
prescribed contents in every transport vehicle, under the charge of the driver or the
conductor. Under Section 19 of the Contract Labour (Regulation and Abolition)
Act, the contractor is required to provide and maintain a first-aid box equipped
with the prescribed contents at every place where contract labour is employed so
as to be readily accessible during all working hours.

3.12.5 Shelters , Rest Rooms and Lunch Rooms.

Every factory employing more than 75 workers must provide adequate and
suitable shelters or rest rooms and a lunch room, with provision for drinking
water, where workers can eat meals brought by them. According to Section 9 of
the Motor Transport Workers Act, the employer is required to provide rest rooms
or any other suitable alternative accommodation at places where motor transport
workers employed in a motor transport undertaking are required to halt at night.
Section 17 of the Contract Labour (Regulation and Abolition)Act also made it
obligatory on the part of the contractor to provide for rest rooms or such other
alternative accommodation where contract labour is required to halt at night, in
connection with the work of an establishment. The Mines Rules have laid down
that in every mine where more than 50 persons are ordinarily employed, adequate
and suitable shelters at or near loading wharves, open vast workings, workshops,
and space are to be provided for taking food and rest.

3.12.6. Canteen.

According to Section 46 of the Factories Act, a state government may

make rules for provision of canteen by the occupier in any specified factory where
in more than 75 workers are ordinarily employed. The Royal Commission on
Labour and Labour Investigation Committee have laid considerable emphasis on

66
the provision of canteen at the work place. The ILO recommendation No. 102
adopted in 1956 in its 39th session gave further direction to the establishment and
improvement in the existing canteens in factory establishments in the various
countries.

3.12.7. Creche.

The need for setting up creches in industrial establishments was stressed

by the Royal Commission on Labour in its report way in 1931. The crche
facilities in different countries are provided either under law or by public
authorities or by local bodies as a part of the community facilities. Section 48 of
the Factories Act provides for the setting up of creches in every factory wherein
more than 30 women workers are ordinarily employed for the use of children
under the age of 6 years of such women.

3.12.8. Occupational Health Services.

These are essentially preventive, very common in the industrially

advanced countries of the West, and are gaining in importance and recognition in
large sized undertakings in our country. One of the main functions of these health
services is to protect workers against the health hazards arising out of the nature of
their work or the work environment. The service includes carrying out periodical
medical checks of certain outbreak of serious health complaints. Section 87 of the
Factories Act refers to dangerous occupations and states that the State
Government is empowered to make rules for any factory or class of factories in
which any operation exposes persons to a serious risk of bodily injury, poisoning
or disease.

3.12.9. Welfare Officer.

The Factories Act, 1948 provides for the statutory appointment of a

welfare officer in a factory, Section 49(1) and (2) of Factories Act, lays down
that:-

67
 In every factory wherein hundred or more workers are ordinarily employed
the occupier shall employ in the factory such number of welfare officers as may
be prescribed.
The State Government may prescribe the duties, qualifications and
conditions of service of officers employed under sub-section (i)
accordingly those persons who have obtained a post-graduate degree or
diploma in social science which is recognized by the State Government are
eligible for appointment as welfare officers.

The table 3.2 shows how assistant or additional welfare officers are
appointed.

Table 3.2
Appointment of Assistant or Additional Welfare Officers
Where the Number But Does Not Number of Assistant or Additional Welfare
of Workers Exceed Officers.
Exceeds
2500 3500 One Assistant Welfare Officer
3500 4500 One Additional Welfare Officer
One Additional Welfare Officer and One
4500 6500
Assistant Welfare Officer
6500 8500 Two Additional Welfare Officers
Two Additional Welfare Officers and One
8500 10500
Assistant Welfare Officer
>10500 Three Additional Welfare Officers.

Source: Report of the National Commission on Labour

3.12.9.1. Duties of welfare officers under the Factories Act of 1948.

Supervision of safety, health and welfare programmes, including housing,

recreation, sanitation services, as provided under the law or otherwise;
working of joint committees; grant of leave with wages as provided; and
redressal of workers grievances.

68
 Counselling workers in personal and family problems; helping them to
adjust to their environment; and to understand their rights and privileges.
Advise management on formulating labour and welfare policies,
apprenticeship training programme, meeting statutory obligations to
workers; etc.
Liaison with workers so that they may understand the various limitations
under which they work; appreciate the need for harmonious industrial
relations in the plant; welfare officers should interpret company policies to
workers; and persuade workers to come to a settlement when disputes
arise.
Liaison with management so that the latter may appreciate the workers
viewpoint on various matters connected with the plant; welfare officer
should intervene on behalf of workers in matters under the consideration
of the management;
Liaison with workers and management for harmonious industrial relations
in the plant; for prompt redress of grievances and quick settlement of
disputes; and for improving the productive efficiency of the enterprise.
Liaison with outside agencies such as factory inspectors, medical officers,
and other inspectors with a view to securing a proper enforcement of the
various Acts as applicable to the plant.

3.13. Act-Wise Outline of Welfare Facilities.

A brief outline of various welfare facilities provided under different labour

enactments is given below;

3.13.1. The factories Act, 1948

a) Washing facilities (S.42)

b) Facilities for storing and dry clothing (S.43)
c) Sitting facilities for occasional rest for workers who are obliged to work
standing (S.44)

69
 d) First-aid boxes or cupboards-one for every 150 workers and ambulance
facilities if there are more than 500 workers (S. 45)
e) Canteens, if employing more than 250 workers (S.46)
f) Shelters, rest rooms and lunch rooms, if employing over 150 workers (S.
47)
g) Creche, if employing more than 30 women ( S. 48)
h) Welfare Officer, if employing 100 or more workers (S. 49)

3.13.2. The Mines Act, 1952 and the Mines Rules.

a) Maintenance of crches, where 50 women workers are employed

b) Provision of shelters for taking food and rest if 150 or more person are
employed.
c) Provisions of shelters for taking food and rest, if 150 or more persons are
employed.
d) Provision of a canteen, in mines employing 250 or more workers
e) Maintenance of first-aid-boxes and first aid rooms in mines employing
more than 150 workers.
f) Appointment of Welfare Officer in mines employing more than 500 or
more persons to look after the matters relating to the welfare of the
workers.

3.13.3. Plantations Labour Act, 1951.

The following welfare measures are to be provided to the plantation

workers;

a) Canteens in plantations employing 150 or more workers (S.11)

b) Creches in plantations employing 50 or more women workers (S.12)
c) Recreational facilities for the workers and their children (S.13)
d) Educational facilities in the estate for the children of workers, where there
are 25 workers children between the age of 6 and 12 (S.14)

70
 e) Housing facilities for every worker and his family residing in the
plantation. The standard and specification of the accommodation,
procedure for allotment and rent chargeable from workers, are to be
prescribed in the Rules by the sate governments (S.15 and 16)
f) The state government may make rules requiring every plantation employer
to provide the workers with such number and type of umbrellas, blanket,
raincoats or other like amenities for the protection of workers from rain or
cold as may be prescribed ( S.17)
g) Appointment of a Welfare Officer in plantations employing 300 or more
workers (S.18)

3.13.4. The Motor Transport Workers Act, 1961

The Motor Transport Undertakings are required to provide cerain welfare

and health measures as given below;

a) Canteens of prescribed standard, if employing 100 or more workers (S.8)

b) Clean, ventilated, well-lighted and comfortable rest rooms at every place
wherein motor transport workers are required to halt at night ( S.9)
c) Uniforms, raincoats to drivers, conductors and line checking staff for
protection against rain and cold. A prescribed amount of washing
allowance is to be given to the above-mentioned categories of staff ( S.10)
d) Medical facilities are to be provided to the motor transport workers at the
operating centres and at halting stations as may be prescribed by the state
governments ( S.11)
e) First-aid facilities equipped with the prescribed contents are to be provided
in every transport vehicle (S.12)

3.13.5. The Contact labour (Regulation and Abolition) Act, 1970

The following welfare and health measures are to be provided to the

contract workers by the contractor;

71
 a) A canteen in every establishment employing 100 or more workers ( S. 16)
b) Rest rooms or other suitable alternative accommodation where the contract
labour is required to halt at night in connection with the work of an
establishment ( S.17)
c) Provision for sufficient supply of wholesome drinking water, sufficient
number of latrines and urinals of prescribed types and washing facilities
( S.18)
d) Provision for first-aid-box equipped with the prescribed contents (S.19)

3.13.6. The Merchant Shipping Act, 1958)

Provisions in the Act relating to health and welfare cover.

a) Crew accommodation.
b) Supply of sufficient drinking water.
c) Supply of necessities like beddings, towels, mess utensils.
d) Supply of medicines, medical stores, and provisions of surgical and
medical advice.
e) Maintenance of proper weights and measures on board, and grant of relief
to distressed seamen aboard a ship.
f) Every foreign-going ship carrying more than the prescribed number of
persons, including the crew is required to have on board a qualified
medical officer.
g) Appointment of Seamens Welfare Officer at such ports in or outside India
as the government may consider necessary.
h) Establishment of hostels, clubs, canteens, and libraries.
i) Provision of medical treatment and hospitals. and
j) Provision of educational facilities

72
3.13.7. Dock Workers (Safety, Health and Welfare) Scheme, 1961

A comprehensive Dock Workers (Safety, Health and Welfare) Scheme,

1961, has been framed for all major ports and is administered by the Chief
Advisor, Factories (Factory Advice Service and Labour Institutes). It is framed
under the Dock Workers (Regulation of Employment ) Act, 1948. Amenities
provided in the port premises include provision of

a) Urinals and Latrines

b) Drinking water
c) Washing Facilities
d) Bathing facilities
e) Canteens
f) Rest Shelters
g) Call Stands
h) First Aid Arrangements

3.13.8. Other welfare measures provided are

a) Housing
b) Schools
c) Educational facilities
d) Grant of scholarships
e) Libraries
f) Sports and recreation
g) Fair price shops
h) Co-operative Societies

73
3.13.9. Inter State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act. 1979

Section 16 of the Act stipulates that every contractor employing inter-state

migrant worker men in connection with the work of an establishment to which this
Act applied will have to provide the following facilities.

a) To ensure regular payment of wage to such workmen (at least minimum

wage have to be paid as fixed under the Minimum Wages Act, 1948)
b) To ensure equal pay for equal work irrespective of sex
c) To ensure suitable conditions of work to such workmen having regard to
the fact that they are required to work in a State different from their own
State
d) To provide and maintain suitable residential accommodation to such
workers working during the period of their employment
e) To provide the prescribed medical facilities to the workmen, free of charge
f) To provide such protective clothing to the workmen as may be prescribed
and
g) In case of fatal accident or serious bodily injury to any such workman, to
report to the specified authorities of both the States and also the next of kin
of the workman.

3.14. Voluntary Welfare Measures in India.

There are certain employers especially in the organized sector of industry,

who have promised a wide variety of welfare amenities and services to their
employees. A brief account of such welfare measures given below;

3.14.1 Educational Facilities.

The pace of economic and social progress of a particular country largely

depends upon the quality of its work force. Education plays a very important role
in motivating and enabling the working population for their mental and physical

74
development. Improvement in the quality of the industrial work force demands
accelerated pace of economic development for which education of workers, their
families and their children is very essential.

3.14.2. Medical Facilities.

Employers whether in private or in public sectors have been providing

medical facilities for their workers and their families, even before the introduction
of ESI Scheme. The workers in departmental undertakings are more or less
governed by the medical rule applicable to government servants, or such other
facilities, both indoor and outdoor. In the case of public sector undertakings, it has
been a matter of rule that the provisions of adequate indoor and outdoor medical
facilities should form an integral part of the project plan itself. These undertakings
have provide by and large, suitably equipped first-aid-centres, ambulance rooms
and even regular hospitals either in the factory premises or inside the township.

3.14.3 Transport Facilities.

. The provision of transport facilities to industrial workers forms and

integral part of the general transport facility and is, by and large, the responsibility
of the public authorities like the local bodies, transport corporations, and state
Governments. Hence many of the employers provide transport facilities
voluntarily.

3.14.4. Recreational Facilities.

It has an important bearing on the individuals personality as well as his

capacity to contribute to social development. It affords the worker an opportunity
to develop his sense of physical and mental discipline.

e) Housing Facilities.

Some of the industrial employers both in public and private sectors have
provided housing facilities to their employees. The employees who are not

75
provided corporations quarters are paid house rent allowance at some of the
places. The community centres that have developed around the public sector
townships are the focus of recreational, cultural, sports, literary and many other
activities.

3.14.5. Consumer Co-Operative Societies.

The institution of co-operative stores/fair price ships has a definite role to

play in providing workers with essential items of need. The objectives of the
consumers co-operative stores are;

To provide to the members good quality food grains, cloth and all
necessary articles of daily consumption
To keep the prices at a fair and reasonable level, lower than the market
rate.
To protect the consumers from the vagaries of market and middlemen
and from rising prices and adulteration of food products
To protect factory workers from the clutches of the money lenders and
to inculcate in them the habit of thrift and saving
To develop habits of mutual aid, intimate knowledge and honesty in
dealing
To inculcate and pursue group interest jointly rather than individual
self-interest
To strengthen the public distribution system to ensure availability of
scarce-commodities and help to bring down their prices in the open
market.

Apart from the economic benefits, the consumer co-operatives have some
important social benefits which have morel and social effects on the members.

76
3.14.6. Counselling Services

By means of this service, workers are able to receive advice and counsel
on some of the personnel and sometimes also on personal problems, inside and
outside their place of work. Many a time, a trained social worker is appointed for
this purpose in large industrial undertakings. In small concerns welfare officers or
labour officers attached to an undertaking are also known to perform this function.

3.15. Agencies of Labour Welfare in India.

The importance of labour welfare activities in India has been recognized

very recently by the employers, by the Government and by other agencies. The
main agencies engaged in labour welfare, in India includes:-

3.15.1. Central Government.

Till the Second World War, the Government of India did very little in the
field of labour welfare. It was during the Second World War that the Government
of India, for the first time, launched schemes for labour welfare in their ordinance,
ammunition and other war industries to increase the productivity of the workers
and to keep up their morale. With the achievement of independence and
emergence of India as a Republic, wedded to the idea of a welfare state and to a
socialistic pattern of society, efforts in this direction were intensified. Since then,
various legislations were passed for the welfare of different types of workers. The
important Acts which incorporate measures for the welfare of the workers are,
Factories Act, Indian Mines Act, Employment of Children Act, Maternity Benefits
Act, Plantation Labour Act. Under these Acts, employers have to provide certain
basic welfare facilities to the workers.

3.15.2. State Governments.

Various State Governments and Union Territories provide welfare

facilities to workers. The implementation of many provisions of various labour

77
laws also rests with the state governments. The state governments run health and
family planning centres, centers for education, vocational guidance, recreation and
training of workers and other welfare centers. The state governments also keep a
vigil on the employers that they are operating the welfare schemes made
obligatory by the central or state government. The state governments have also
been empowered to prescribe rules for the welfare of workers and appoint
appropriate authorities for the enforcement of welfare provisions under various
Acts.

3.15.3. Employers.

At present, the welfare activities are being brought more and more under
the legislation rather than being left to the good sense of the employers. The
government has made certain facilities obligatory on the part of employers. Most
of the employers consider the expenditure on labour welfare activities as waste of
money rather than an investment. Even then, some enlightened employers, on
their own initiative have been doing a bit in the direction of welfare. They have
provided medical facilities, hospital and dispensary facilities, canteens, fair price
shops, recreation clubs etc. These facilities are apart from their liability under
various central or state legislations.

3.15.4. Trade Unions.

In India, trade unions have done very little for the welfare of workers.
They have not taken much interest in welfare work because of lack of proper
leadership and trends. However, a few sound and strong unions have been the
pioneers in this respect. They are Ahmedabad Textile Labour Association and the
Mazdoor Sabha, Kanpur.

3.15.5. Other Agencies.

Apart from the agencies closely associated with the industries

(Government, Employees and Trade Unions) several other agencies have also

78
done some work in the field of labour welfare. Philanthropic charitable and social
service organisations like Bombay Social Service League, Seva Sadan Society, the
Depressed Classes Mission Society, the Y.M.C.A etc provide facilities for the
welfare of the working class on a voluntary basis.

3.16. Conclusion.

Labour welfare has become essential because of the very nature of the
industrial system. The approach to this problem or movement differs from
country to country, according to the degree of development in a particular country.
However, the need for labour welfare in some way or the other is realized all over
the world because of the socio-economic conditions and problems which the
industrial society has thrown up.

The aims and objectives of labour welfare have progressively changed

during, the last few decades. From the primitive policing and placating
philosophy of labour welfare, it gradually moved to the era of paternalism with
philanthropic objectives. Even today there is evidence of humanitarian outlook of
some of the employers in many employee-welfare programmes. The recent
thinking in labour welfare however is more oriented towards increasing
productivity and efficiency of the work people. An outstanding trend today is that
it has become a comprehensive concept concerned with the development of the
total human personality embracing physical, mental, social psychological and
spiritual aspects of the employees well being.

Be that as it may be, well-organised labour welfare efforts can and do

solve some of the labour problems that have resulted from industrialisation. There
may be divergent views about the implementation of labour welfare programmes,
about who should undertake responsibility for them and who should bear the cost.
But what is invariably called of is sincerity of purpose. However there has been a
growing appreciation and acceptance of utility of welfare work on the part of
employers. As long as this appreciation exists, charity, as one of the motives,
cannot undermine the purpose of labour welfare. In this context, the question of

79
benevolence does not arise at all. An industry is certainly not a place where
workers and employers try to get the maximum from each other. Both labour and
management can do a lot more if and when they work together as partners in an
enterprise, and if they have sympathy with, and understanding of each others
problems. This is the basic problem in labour welfare, and it has been solved, at
least to some extent, over the years. It is sincerely hoped that the welfare concept
will help the industrial community better, in future, to maintain harmonious
industrial relations and lasting industrial peace, to tackle effectively the resultant
problems of social transition, and to strive for and attain human welfare.

The government is now playing a triple role-that of a legislator,

administrator and promoter. In spite of all these efforts, the welfare work in India
is still considerably below the standard set up in other countries. However, it has
come to stay as an accepted feature of employment conditions and is bound to
make rapid progress in the years to come, especially when the Indian Republic is
wedded to the ideal of a Welfare State with socialistic objectives.

80
 REFERENCES
1. R.R. Hopkin, A Handbook of Industrial Welfare, 1955, p.1

2. Encyclopedia of Social Sciences, Vol, XV, 1935, p.395

3. Arthur James Todd, Industry and Society-A Sociological Appraisal of

Modern Industrialisation, New York, H.Holt &Co.1933, p.250

4. ILO, Asian Regional Conference, Report II, 1947, p.3

5. Government of India, Ministry of Labour and Employment, Main Report

of the Labour Investigation Committee, Delhi, 1946,p.336

6. N.M Joshi, Trade Union Movement in India, Sagar Publishing Co,

Bombay, 1927,p.26

7. Report of the Committee on Labour Welfare, Vol.1,1969,p.24

8. Report of the Study Team on Labour Welfare, 1937 p. 19

9. Indian Conference of Social Work, Industrialisation and Social Work,

Bombay. p.11

10. H.S Kirkaldy, The Spirit of Industrial Relations, Global publications,

Ludiyana, pp. 77-88

11. Arthur James Todd, Quoted by the Labour Investigation Committee, 1948
Report, p. 345

12. National Civic Federation, Quoted in Final Report, Vol.2, Textile Labour
Enquiry Committee, Government of Bombay, Ch. X,p.264

13. The Royal Commission on Labour Report, 1931 p. 261

14. H.L Herring, Welfare Work in Mill Villages, Rastogi Publications, Delhi
pp. 9-10.

15. M.V Moorthy, Principles of Labour Welfare, Oxford & I B H

Publishing Co, New Delhi.1968. p.28

16. Sixth Five Year Plan, p.402 and 410

17. International Labour Organisation, Welfare Facilities for Workers in
Industry in Western Europe, MEWEL,1964,R,1, Geneva, I.L.O, 1964.

18. International Labour Organisation, Welfare Facilities for Workers in

Industry in Eastern Europe, MEWEL,1964,R,3, Geneva, I.L.O, 1964.

19. Tyagi, B.P (1986), Labour Economics and Social Welfare Jai Prakash
Nath& Co Publishers, Meerut,

20. The Royal Commission on Labour Report, 1931, p.261

21. Malaviya Committee Report on Labour Welfare, 1969,p.24

22. ILO Report 11, Provision of Facilities for the Promotion of Workers
Welfare, Asian Regional Conference, Nuwara Sliya, Ceylon, 1919, p. 3

23. M.V Moorthy, Principles of Labour Welfare, Visakhapatnam, Gupta

Brothers, 1968, p.10

24. K.N. Vaid, Labour Welfare in India, Shri Ram Centre for Industrial
Relations, New Delhi, 1970pp.16-17

25. Pearson, H.S, Welfare Work-Industrial, Encyclopedia of Social

Sciences, Vol. XV,p.396