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BASICS OF MANAGEMENT

BASICS OF MANAGEMENT. Labour Welfare Schemes. By:- Harjinder Pal Singh Lect. Mech. Dated:04-04-2013 Govt. Polytechnic College Batala. Labour Welfare Schemes. LEGAL ASPECT OF BUSINESS:

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BASICS OF MANAGEMENT

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  1. BASICS OF MANAGEMENT Labour Welfare Schemes By:- Harjinder Pal Singh Lect. Mech. Dated:04-04-2013 Govt. Polytechnic College Batala

  2. Labour Welfare Schemes LEGAL ASPECT OF BUSINESS: The interests of employees and the entrepreneurs are often contradictory and conflicting. Due to continuously increasing cost of living, the labour force expects higher wages, allowances and other facilities etc. The employers on other hand try to keep the cost of production at the lowest possible level. They try to pay the lowest possible wages to workers and get the maximum possible work out of them. The result is a clash of interests. 93

  3. Labour Welfare Schemes LEGAL ASPECT OF BUSINESS: If the employer is not able to satisfy the needs of the workers, the workers also don’t perform at the optimum level. Unsatisfied workers becomes the cause of industrial unrest which may take the form of a strike, ghereo, bandh etc.- 92

  4. Labour Welfare Schemes LEGAL ASPECT OF BUSINESS: The entrepreneur on the other hand can be forced to a lockout. Thus, the interests of both the parties are put at stake. Industrial laws serve to safeguard the interests of both and ensure industrial peace and development. 91

  5. Labour Welfare Schemes HISTORY OF LABOUR LEGISLATION IN INDIA: Upto 1881, there was no law related to labour welfare in India. The Indian factories act was passed in the year 1881. After this a number of such laws were passed to regulate the working conditions in industries. Prior to this law, the workers were exploited for the following reasons: (i) Labour was available in abundance. They badly needed work to fulfil their requirements, basic needs can’t wait for their satisfaction. The workers had no other source of livelihood. They 90

  6. Labour Welfare Schemes HISTORY OF LABOUR LEGISLATION IN INDIA: only had their labour and skill to sell. (ii) Labour was ill educated, too poor and ignorant. They didn,t know about their contribution to profit and their importance in the process of production, nor could they think because being poor they couldn’t think of anything other than earning for their basic needs. (iii) Industrialization and employment in factories was a comparatively new process for Indian workers and so it didn’t provide them with much 89

  7. Labour Welfare Schemes HISTORY OF LABOUR LEGISLATION IN INDIA: experience. Due to lack of contact with other parts of the world, they didn’t know what rights their counterparts in other parts of the world enjoy. (iv) Workers feared their employers. They were compelled to work as directed by the employers who sometimes even used physical force to compel them. Even greater was the fear of retrenchment. 88

  8. Labour Welfare Schemes HISTORY OF LABOUR LEGISLATION IN INDIA: (v) The entrepreneurs enjoyed greater proximity to political power circles. They were financially sound and so could twist the situation their way.(vi) If work came to a halt, the entrepreneurs lost only their profits where as the worker lost their livelihood and had to suffer from hunger. 87

  9. Labour Welfare Schemes HISTORY OF LABOUR LEGISLATION IN INDIA: WORKING CONDITIONS: The workers had to work under miserable working conditions which can be termed as inhuman. 1. The work places were insufficient, there was no provision of drinking water, urinals, bathrooms, waiting rooms, canteens etc. 86

  10. Labour Welfare Schemes HISTORY OF LABOUR LEGISLATION IN INDIA: WORKING CONDITIONS: 2. There was no provision for overtime payment. 3. Leave facility was not provided to workers. Deduction was made in their wages for the amount of leave taken. 4. In case of worker met an accident in the working hours, no compensation was paid to him 85

  11. Labour Welfare Schemes HISTORY OF LABOUR LEGISLATION IN INDIA: WORKING CONDITIONS: 5. Women and children were made to work for long hours under unsafe and unhygienic conditions. 84

  12. Labour Welfare Schemes INDUSTRIAL LEGISLATION AND LAWS: The laws framed by the Government for providing economic and social justice to the workers in industries are called Industrial laws or labour laws. Industrial legislation can be divided into two categories: General legislation. Specific legislation. 83

  13. Labour Welfare Schemes INDUSTRIAL LEGISLATION AND LAWS: 1. General legislation: General legislation takes care of the general labour problems like social welfare, insurance and industrial disputes. 2. Specific legislation : Specific legislation looks after the work of specific industries like transport, mines, electricity generation, plantation, waste disposal etc. 82

  14. Labour Welfare Schemes NEED OF INDUSTRIAL OR LABOUR LAWS: In modern industrial organisation, labour laws are necessary and their main aim is; (i) To save the workers from exploitation and to protect their rights: Government showed a human concern in passing these laws so that workers get their due rights and are not exploited. 81

  15. Labour Welfare Schemes NEED OF INDUSTRIAL OR LABOUR LAWS: (ii) To minimize and settle industrial disputes: These laws serve to improve relations among management and workers so that a peaceful atmosphere is created for maximum production. 80

  16. Labour Welfare Schemes NEED OF INDUSTRIAL OR LABOUR LAWS: (iii) To provide better and safe working conditions for the workers: Laws make sure that work, machines, equipment, tools and the environment of an industry is safe for the working of human beings. 79

  17. Labour Welfare Schemes NEED OF INDUSTRIAL OR LABOUR LAWS: (iv) To determine timely and justified payment of wages, incentives and compensation : Various labour laws provide that payment of wages is on a fair basis and that the wages are sufficient to meet the need of workers. 78

  18. Labour Welfare Schemes NEED OF INDUSTRIAL OR LABOUR LAWS: (iv) To provide security of job: In the service of a worker are to be terminated, laws provide for the compensation or any other monetarily benefit to be paid by the employer, failing which the worker can go in the court. 77

  19. Labour Welfare Schemes ORIGIN AND GROWTH OF LABOUR WELFARE CONCEPT IN INDIA: The transference of rural population to the urban areas, as a result of industrialization, brought with it certain sociological problems. Having been up rooted from their rural mornings, the new class of industrial workers required welfare services to be provided to them in their new surroundings so as to enable them to adapt themselves to changing situations. 76

  20. Labour Welfare Schemes ORIGIN AND GROWTH OF LABOUR WELFARE CONCEPT IN INDIA: Originally conceived as a humanitarian approach, the employers realised the value of providing better working and living conditions to their employees. What was, therefore, essentially a humanitarian approach in the initial stages, gave rise to utilitarian philosophy as motivating force for providing welfare amenities to the working population. 75

  21. Labour Welfare Schemes ORIGIN AND GROWTH OF LABOUR WELFARE CONCEPT IN INDIA: Mahatma Gandhi, through his general programme for upliftment of the toiling masses of the country made a considerable impact upon the concept of Labour welfare in India. “I do not want any thing more for the workers and farmer class then enough to eat and house and clothes themselves and live in ordinary comfort as self respecting human beings”. 74

  22. Labour Welfare Schemes Labour Welfare Schemes: Organization provide welfare facilities to their employees to keep their motivation level high. Welfare means the comfort and improvement of employees and is provided over and above the wages. Welfare keeps the morale and motivation of the employees high so as to retain the employees for longer duration. It is not necessary that the welfare measures to be in monetary terms but in any kind/forms. Employee welfare includes monitoring of - 73

  23. Labour Welfare Schemes Labour Welfare Schemes: - working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployement for the workers and their families. Labour welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages of salaries. 72

  24. Labour Welfare Schemes Labour Welfare has the following objectives: 1) Labourwelfare provides social comfort to employees. 2) It provides intellectual improvement of employees. 3) To develop sense of responsibility and belongingness among employees. 4) To ensures that the working conditions for employees are of higher standard. 5) To build stable work force. 71

  25. Labour Welfare Schemes Labour Welfare has the following objectives: 6) To reduce absenteeism and labour turnover. 7) To make employees lives good and worth living. 8) To boost productivity and efficiency at the workplace. 9) To provide healthy and proper working conditions. 10) To ensure well being of employees and families. 70

  26. Labour Welfare Schemes IMPORTANCE OF LABOUR WELFARE: In India, industrial workers get the benefit of various welfare facilities. The purpose is to provide them better life and to make them happy. The important benefit of welfare services are given below: Welfare facilities provide scope for better physical and mental health to the workers. Labour welfare brings industrial peace and cordial relations between labour and management. 69

  27. Labour Welfare Schemes IMPORTANCE OF LABOUR WELFARE: 3) The social evil in the labour force such as gambling, drinking etc. are reduced. 4) Employer gets stable labour force due to provision of welfare facilities. 5) Workers take active interest in their jobs. 6) Employer secures the benefits of high efficiency and low labour absenteeism and minimum employee turnover. Facilities like housing, medical benefits and education facilities help to increase productivity of workers 68

  28. Labour Welfare Schemes PROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE: Factories Act, 1948, contains specific provisions relating to welfare of labour in factories. These provisions are discussed below: Washing facility: In every factory, suitable facilities for working shall be provided for the use of workers. Such facilities shall be kept clean. 67

  29. Labour Welfare Schemes PROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE: (2) Facility for storing clothes/uniforms: A suitable place should be provided to the workers for keeping clothes during the time of work and uniforms overnight. 66

  30. Labour Welfare Schemes PROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE: (3) Facilities for sitting: In every factory, suitable arrangement for sitting shall be provided and maintained, for all workers. 65

  31. Labour Welfare Schemes PROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE: (4) First Aid Facility: The arrangement for first-aid shall be made in every factory. One first-aid box is to be provided for every 150 workers. First-aid facility has always to be made available during the working hours of the factory. 64

  32. Labour Welfare Schemes PROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE: (5) Canteens: A canteen shall be provided in each factory employing over 250 workers. Suitable shelter, lunch room and rest room shall be provided for the use of the workers where more than 150 workers are employed. 63

  33. Labour Welfare Schemes PROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE: (6) Creches: Every factory shall provide clean, well lighted creches (room) for the use of children of women workers. 62

  34. Labour Welfare Schemes PROVISIONS OF THE FACTORIES ACT, 1948 REGARDING LABOUR WELFARE: (7) Welfare Officer: In every factory where 500 or more workers are employed, the employer shall employ Welfare Officer in the factory. 61

  35. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: The Study appointed by the Government of India in 1959 to examine labour welfare activities then existing, divided the entire range of these activities into three groups, i.e. (1) Welfare work within the boundary of an establishment- medical aid, creches, canteens, supply of drinking water etc. It means that the welfare activities are undertaken within boundary of an establishment. 60

  36. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (2) Welfare work outside the boundary of an establishment- provision for indoor and outdoor recreation, housing, adult education, visual instructions, etc. and; (3) Social Security measures etc. 59

  37. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: The committee of experts on Welfare Facilities for Industrial Workers called meeting by ILO in 1963 had divided welfare services into following groups: Intra-Mural Activities. Extra-Mural Activities. Statutory, voluntary and Mutual Welfare Facilities. 58

  38. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: Intra-Mural Activities: The labour welfare activities that are provided inside the industry are known as Intra-Mural activities. According to the recommendations of the ILO, the welfare activities within the boundary of the establishment includes the facilities such as; Latrines and Urinals, Washing and bathing facilities. Creches, 57

  39. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: Intra-Mural Activities: (4) Rests shelters and Canteens, (5) Arrangement for drinking water, (6) Arrangement for prevention of fatigue, (7) Health services including occupational safety, (8) Administrative arrangement within a plant to look after welfare, (9) Uniform and protective clothing and, (10) Shifting allowance. 56

  40. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (b) Extra-Mural Activities: The welfare activities that are provided outside the establishment are known as extra-mural activities. According to the recommendations of the ILO, the welfare activities outside the establishment include facilities such as : Maternity benefits, Social Insurance measures including gratuity, pension, provident fund and rehabilitation, 55

  41. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (b) Extra-Mural Activities: (3) Benevolent fund, (4) Medical facilities including programmes for physical fitness and efficiency, family planning and child-welfare, (5) Educational facilities including adult education, (6) Housing facilities, 54

  42. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (b) Extra-Mural Activities: (7) Recreation facilities, including sports, cultural activities, library and reading room, (8) Holiday homes and leave and travel facilities, (9) Workers cooperatives including consumer cooperative stores, fair price shops and co-operative thrift and credit societies. (10) Vocational training for dependents of workers, 53

  43. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (b) Extra-Mural Activities: (11) Other programmes for the welfare of women, youth and children and (12) Transport to and from the place of work. 52

  44. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (b) Statutory, Voluntary and Mutual Welfare Facilities: Labour welfare work may also be divided into three categories: Statutory ; Voluntary and Mutual. 51

  45. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (b) Statutory, Voluntary and Mutual Welfare Facilities: Statutory: Statutory welfare work constitute those provisions of welfare work which are provided in different factory Acts and it is obligatory on the part of the employers to observe these provisions. 50

  46. Labour Welfare Schemes CLASSIFICATION OF LABOUR WELFARE FACILITIES: (b) Statutory, Voluntary and Mutual Welfare Facilities: (2) Voluntary Welfare: Voluntary Welfare works includes those activities which are undertaken by employers for their workers voluntarily. (3) Mutual Welfare: Mutual Welfare is a corporate enterprise of the workers themselves. For instance, if workers decide to improve their lot on the basis of mutual help, it may be called a mutual welfare work. Trade unions for this purpose undertake many provisions for the welfare of the workers. 49

  47. Labour Welfare Schemes IMPORTANCE OF LABOUR WELFARE WORK: The usefulness of welfare work in India can not be over emphasized. Welfare activities influence the sentiments of the workers. When worker feels that the employers and the State are interested in their happiness, his tendency to grouse and grumble will steadily disappear. The development of such a feeling makes the way for industrial peace. 48

  48. Labour Welfare Schemes IMPORTANCE OF LABOUR WELFARE WORK: Secondly, the provision of various welfare measures such as good housing, canteens, medical and sickness benefits etc. makes them realise that they also stake in the undertaking in which they are engaged and so they think thrice before taking any reckless action. Thirdly, welfare measures, such as cheap food in canteens, free medical and educational facilities, etc. indirectly increase the real income of the - 47

  49. Labour Welfare Schemes IMPORTANCE OF LABOUR WELFARE WORK: workers. If the workers go on strike they will be deprived of all these facilities. Hence they try to avoid industrial disputes as possible and do not go strike on flimsy grounds. Fourthly, welfare activities will reduce labour turnover and absenteesim and create permanent settled labour force by making service attractive to the labour. Fifthly, welfare activities will go a long way to better the mental and moral health of workers- 46

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