OVERVIEW OF CURRENT INDIAN SITUATION1. Introduction 1.1. The Constitution of India (“Constitution”) provides the jural basis for laws regulating employment and labour in India (which are collectively also referred to as „industrial laws‟ or „labour laws‟). The fundamental rights enshrined in the Constitution provide inter alia for equality before the law and for prohibition of discrimination on the basis of religion, caste, sex, etc. Similarly, the „Directive Principles of State Policy‟ laid down in Part IV of the Constitution adjure the State to inter alia ensure that all citizens have an adequate means of livelihood, right to education, and just and humane conditions of work, and to further ensure participation of workers in the management of industries. 1.2. The Constitution hence places emphasis on the concept of social justice as one of the fundamental objects of State policy, and these protective provisions edify the spirit of Indian industrial laws. 1.3. Labour welfare1, „trade union; industrial and labour disputes‟2 and factories3 are items found in the Concurrent List of the Constitution. This means that subject to certain conditions, both the Parliament of India as well as the individual State legislatures have the power to enact laws on these matters. Social Security and Labour Welfare in India: A review Social security is one of the pillars on which the structure of a welfare state rests, and it constitutes the hard core of social policy in most countries. It is through social security measures that the state attempts to maintain every citizen at a certain prescribed level below which no one is allowed to fall. It is the security that society furnishes through appropriate organization, against certain risks to which its members are exposed (ILO, 1942). Social security system comprises health and unemployment insurance, family allowances, provident funds, pensions and gratuity schemes, and widows’ and survivors’ allowances. The essential characteristics of social insurance schemes include their compulsory and contributory nature; the members must first subscribe to a fund from which benefits could be drawn later. On the other hand, social assistance is a method according to which benefits are given to the needy persons, fulfilling the prescribed conditions, by the government out of its own resources. The present section reviews labour welfare activities in India with particular emphasis on the unorganized sector. Although provisions for workmen’s compensation in case of industrial accidents and maternity benefits for women workforce had existed for long, a major breakthrough in the field of social security came only after independence. The Constitution of India (Article 41) laid down that the State shall make effective provision for securing the right to public assistance in case of unemployment, old age, sickness and disablement and in other cases of underserved want. The Government took several steps in compliance of the constitutional requirements. The Workmen’s Compensation Act (1926) was suitably revised and social insurance programmes were developed for industrial workers. Provident funds and gratuity schemes were introduced in most industries, and maternity legislation was overhauled. Subsequently, State governments instituted their own social assistance programmes. The provisions for old age comprise pension, provident fund, and gratuity schemes. All the three provisions are different forms of retirement benefits. Gratuity is a lump sum payment made to a worker or to his/her heirs by the company on termination of his/her service due to retirement, invalidity, retrenchment or death (Vajpayee and Shanker, 1950). Welfare Welfare is the provision and maintenance of the conditions of life for individuals by the community. Welfare has a positive and negative aspect. Negative welfare is the provision by the state or other institutions of a “safety net” or the distribution of benefits according to some criteria; so-called positive welfare is the provision of opportunities for people to “help themselves”. This contrast lies behind foreign-aid strategies which concentrate on providing skills or “seed capital” rather than food parcels, for example. The concept of positive and negative welfare is related to the concepts of positive and negative freedom. Marxists support both positive and negative welfare, but recognise that the market inevitably generates inequality and a class of people inevitably the recipients of welfare, who have nothing to sell but their labour power, alongside a class of people who live off the proceeds of exploitation, invariably the providers of welfare. Only by bringing the means of production under thorough going proletarian democracy can the very need for welfare be abolished. Concept of labour welfare The concept of labour welfare is flexible and elastic and differs widely with time, region, industry, social values and customs, degree of industrialization, the general socio-economic development of the people and the political ideologies prevailing at a particular time. It is also moulded according to the age-groups, socio-cultural background, marital and economic status and educational level of the workers in various industries In its broad connotation, the term welfare refers to a state of living of an individual or group in a desirable relationship with total environment – ecological, economic, and social. Conceptually as well as operationally, labour welfare is a part of social welfare which, in turn, is closely linked to the concept and the role of the State. The concept of social welfare, in its narrow contours, has been equated with economic welfare. As these goals are not always be realised by individuals through their efforts alone, the government came into the picture and gradually began to take over the responsibility for the free and full development of human personality of its population. Labour welfare is an extension of the term Welfare and its application to labour. During the industrialisation process, the stress on labour productivity increased; and brought about changes in the thinking on labour welfare. An early study under the UN observed as follows “in our opinion most underdeveloped countries are in the situation that investment in people is likely to prove as productive, in the purely material sense, as any investment in material resources and in many cases, investment in people would lead to a greater increase of the flow of goods and services than would follow upon any comparable investment in material capital” (UN, 1951). The theory that welfare expenditure, especially expenditure on health and education, is productive investment has led to the view that workers could work more productively if they were given a fair deal both at the work place and in the community. The concept of labour welfare has received inspiration from the concepts of democracy and welfare state. Democracy does not simply denote a form of government; it is rather a way of life based on certain values such as equal rights and privileges for all. The operation of welfare services, in actual practice, brings to bear on it different reflections representing the broad cultural and social conditions. In short, labour welfare is the voluntary efforts of the employers to establish, within the existing industrial system, working and sometimes living and cultural conditions of the employees beyond what is required by law, the custom of the industry and the conditions of the market (A. J. Todd, 1933). The constituents of labour welfare included working hours, working conditions, safety, industrial health insurance, workmen’s compensation, provident funds, gratuity, pensions, protection against indebtedness, industrial housing, rest rooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres, music, reading rooms, holiday rooms, workers’ education, co-operative stores, excursions, playgrounds, and scholarships and other help for education of employees’ children. However, labour welfare has both positive and negative sides associated to it. On the positive side, it deals with the provision of opportunities which enable the worker and his family to lead a good life, socially and personally, as well as help him to adjust social transition in his work life, family life and social life. On the negative side it functions in order to nutralise the baneful effects of large scale industrialization and provide a counterbalance to the undesirable social consequences and labour problems which have evolved in the process of this transition. The word labour means any productive activity. In a broader sense, therefore, the phrase labour welfare means the adoption of measures to promote the physical, social, psychological and general well-being of the working population. Welfare work in any industry aims, or should aim, at improving the working and living conditions of workers and their families. Definitions: Labour welfare has been defined in various ways, though unfortunately no single definition has found universal acceptance. The Oxford Dictionary defines labour welfare as “efforts to make life worth living for worker” Chamber’s Dictionary defines welfare as “a state of faring or doing well; freedom from calamity, enjoyment of health, prosperity.” The ILO report refers to labour welfare as “such services, facilities, and amenities, which may be established in, or in the vicinity of undertakings to enable persons employed therein to perform their work in healthy and congenial surroundings and provided with amenities conducive to good health and high morale”. Features: On the basis of the various definitions, the basic characteristics of labour welfare work may be noted thus: 1. It is the work which is usually undertaken within the premises or in the vicinity of the undertakings for the benefit of the benefit of the employees and the members of their families. 2. The work generally includes those items of welfare which are over and above what the employees expect as a result of the contract of service from the employers. 3. The purpose of providing welfare amenities is to bring about development of the whole personality of the worker -his social, psychological, economic, moral, cultural and intellectual development to make him a good worker, a good citizen and a good member of the family. 4. These facilities may be provided voluntarily by progressive and enlightened entrepreneurs at their own accord out of their realization of social responsibility towards labour, or statutory provisions may compel them to make these facilities available; or these may be undertaken by the government or trade unions, if they have the necessary funds for the purpose. 5. Labour welfare is a very broad term, covering social security and such other activities as medical aid, crèches, canteens, recreation, housing, adult education, arrangements for the transport of labour to and from the work place. 6. It may be noted that not only intra-mural but also extra-mural, statutory as well as non-statutory activities, undertaken by any of the three agencies- the employers, trade unions or the government- for the physical and mental development of the worker, both as a compensation for wear and tear that he undergoes as a part of the production process and also to enable him to sustain and improve upon the basic capacity of contribution to the processes of production, “which are all the species of the longer family encompassed by the term ‘labour welfare’. Concept of labour welfare In its broad connotation, the term welfare refers to a state of living of an individual or group in a desirable relationship with total environment – ecological, economic, and social. Conceptually as well as operationally, labour welfare is a part of social welfare which, in turn, is closely linked to the concept and the role of the State. The concept of social welfare, in its narrow contours, has been equated with economic welfare. Pigou defined it as “that part of general welfare which can be brought directly or indirectly into relations with the measuring rod of money” (Pigou, 1962). According to Willensky and Labeaux, social welfare alludes to “those formally organised and socially sponsored institutions, agencies and programmes which function to maintain or improve the economic conditions, health or interpersonal competence of some parts or all of a population” (Willensky and Labeaux, 1918). As these goals may not always be realised by individuals through their efforts alone, the government came into the picture and gradually began to take over the responsibility for the free and full development of human personality of its population. Labour welfare is an extension of the term Welfare and its application to labour. During the industrialisation process, the stress on labour productivity increased; and brought about changes in the thinking on labour welfare. An early study under the UN observed as follows “in our opinion most underdeveloped countries are in the situation that investment in people is likely to prove as productive, in the purely material sense, as any investment in material resources and in many cases, investment in people would lead to a greater increase of the flow of goods and services than would follow upon any comparable investment in material capital” (UN, 1951). The theory that welfare expenditure, especially expenditure on health and education, is productive investment has led to the view that workers could work more productively if they were given a fair deal both at the work place and in the community. The concept of labour welfare has received inspiration from the concepts of democracy and welfare state. Democracy does not simply denote a form of government; it is rather a way of life based on certain values such as equal rights and privileges for all. The operation of welfare services, in actual practice, brings to bear on it different reflections representing the broad cultural and social conditions. In short, labour welfare is the voluntary efforts of the employers to establish, within the existing industrial system, working and sometimes living and cultural conditions of the employees beyond what is required by law, the custom of the industry and the conditions of the market (A. J. Todd, 1933). The constituents of labour welfare included working hours, working conditions, safety, industrial health insurance, workmen’s compensation, provident funds, gratuity, pensions, protection against indebtedness, industrial housing, rest rooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres, music, reading rooms, holiday rooms, workers’ education, co-operative stores, excursions, playgrounds, and scholarships and other help for education of employees’ children. Labour and Labour Welfare Labour sector addresses multidimensional socio-economic aspects affecting labour welfare, productivity, raising living standard of labour force and social security. To raise earnings of work force and achieve higher productivity, skill upgradation through suitable training is of utmost importance. Manpower development to provide adequate labour force of appropriate skills and quality to different sectors essential for rapid socio-economic development and elimination of the mismatch between skills required and skills available has been a major focus of human resource development activities during the last fifty years. Employment generation in all the productive sectors is one of the basic objectives. In this context, providing enabling environment for self employment has received special attention both in urban and rural areas. Objective is also to eliminate bonded labour, employment of children and women in hazardous industries, and minimize occupational health hazards. During the Ninth Plan period, elimination of such undesirable practices as child labour, bonded labour, ensuring workers’ safety and social security, looking after labour welfare and providing of the necessary support measures for sorting out problem relating to employment of both men and women workers in different sectors will receive priority attention. It is also envisaged that the employment exchanges will be reoriented so that they become the source of labour related information, employment opportunities and provide counseling and guidance to employment seekers. All labour welfare measures have the following objectives: 1. Enabling workers to live richer and more satisfactory lives; 2. Contributing to the productivity of labour and efficiency of the enterprise; 3. Enhancing the standard of living of workers by indirectly reducing the burden on their purse; 4. Enabling workers to live in tune and harmony with services for workers obtaining in the neighbourhood community where similar enterprises are situated; 5. Based on an intelligent prediction of the future needs of the industrial workers, designing policies to cushion off and absorb the shocks of industrialisation and urbanisation to workers; 6. Fostering administratively viable and essentially developmental outlook among the workforce; and 7. Discharging social responsibilities. Principles of labour welfare Certain fundamental considerations are involved in the concept of labour welfare. The following are the more important among them. Social responsibility of industry This principle is based on the social conception of industry and its role in the society that is, the understanding that social responsibility of the state is manifested through industry. It is assumed that labour welfare is an expression of industry’s duty towards its employees. Social responsibility means that the obligation of the industry to pursue those policies, to take such decisions, and to follow those lines of action which are desirable in terms of the objectives and values currently obtaining in the society. The values of the Indian community are enshrined in the constitution of the country. Labour welfare is not embroidery on capitalism nor the external dressing of an exploitative management; rather, it is an expression of the assumption by industry of its responsibility for its employees (Maurioce Bruce, 1961). Industry is expected to win the co-operation of the workers, provide them security of employment, fair wage, and equal opportunity for personal growth and advancement, and make welfare facilities available to them. Democratic values The principle of democratic values of labour welfare concedes that workers may have certain unmet needs for no fault of their own, that industry has an obligation to render them help in gratifying those needs, and that workers have a right of determining the manner in which these needs can be met and of participating in the administration of the mechanism of need gratification. The underlying assumption to this approach is that the worker is a mature and rational individual who is capable of taking decisions for himself/herself. Adequacy of wages The third principle of labour welfare is adequacy of wages; it implies that labour welfare measures are not a substitute for wages. It will be wrong to argue that since workers are given a variety of labour welfare services, they need be paid only low wages. Right to adequate wage is beyond dispute. Efficiency The fourth principle of labour welfare lays stress on the dictum that to cultivate welfare is to cultivate efficiency. Even those who deny any social responsibility for industry do accept that an enterprise must introduce all such labour welfare measures which promote efficiency (Marshall, 1950). It has been often mentioned that workers’ education and training, housing, and diet are the three most important aspects of labour welfare, which always accentuate labour efficiency. Re-personalization Since industrial organisation is rigid and impersonal, the goal of welfare in industry is the enrichment and growth of human personality. The labour welfare movement seeks to bring cheer, comfort, and warmth in the human relationship by treating man as an individual, with quiet distinct needs and aspirations. Social and cultural programmes, recreation and other measures designed after taking into consideration the workers’ interests go a long way in counteracting the effects of monotony, boredom, and cheerlessness. Co-responsibility The sixth principle of labour welfare recognises that the responsibility for labour welfare lies on both employers and workers and not on employers alone (Moorthy, 1958). Labour welfare measures are likely to be of little success unless mutuality of interest and responsibilities are accepted and understood by both the parties, in particular the quality of responsibility at the attitudinal and organisational level. Totality of welfare The final principle of labour welfare is that the concept of labour welfare must permeate throughout the hierarchy of an organisation, and accepted by all levels of functionaries in the enterprise. Approaches The issue of labour welfare may be studied from different angles, such as: The location, where these amenities are provided, within and outside the industrial undertakings; The nature of amenities such as those concerned conditions of employment and The welfare activities termed as ‘statutory’, ‘voluntary’ and ‘mutual’. The agencies which provide living conditions of work people; these amenities. On the basis of location of welfare activities, labour welfare work has been classified by Broughton in two specific categories, namely, (a)intramural(b)extra-mural (a)Intra-mural activities: consist of such welfare schemes provided within the factories as medical facilities, provision of crèches, and canteens, supply of drinking water, washing and bathing facilities, provision of safety measures such as fencing and covering of machines, good lay-out of machinery and plant, sufficient lighting, first-aid appliances; activities relating to improving conditions of employment, recruitment and discipline and provision of provident fund and gratuity, maternity benefits,etc. (b)Extra-mural activities: cover the services and facilities provided outside the factory such as, housing accommodation, indoor and outdoor recreation facilities, amusement and sports, educational facilities for adults and children, provision of libraries and reading rooms. In the welfare activities concerned with conditions of employment are included activities for the management of problems arising out of hours of work, wages, holidays with pay, rest intervals, sanitation, continuity of employment, control over the recruitment of female and juvenile labour, while all such schemes of benefits as co-operative societies, legal and medical aid, and housing are included in the category of activities concerned with conditions of workers. Labour welfare work may be statutory, voluntary or mutual. It is statutory when such activities have to be undertaken in furtherance of the legislation adopted by the government. It is voluntary when the activities are undertaken at their own accord by the employers or some philanthropic bodies or when a labour organisation undertakes such activities for the welfare of their members. It is mutual, when all parties join hands to bring about the social and economic uplift of the workers. The National Commission on labour has classified various labour welfare measures under two distinct classes: (1)those which have to be provided, irrespective of the size of the establishment or the number of the persons employed therein such as facilities relating to washing, storing, drying the clothing, first-aid, drinking water, latrines and urinals (2)those which are to be provided subject to the employment of a specified number of persons, such as canteen, rest shelter, crèche, ambulance,etc. According to the Encyclopedia of social sciences, “industrial welfare work ”has taken numerous forms such as: (a)those dealing with immediate working conditions are special provisions for adequate light, heat, ventilation, toilet facilities, accident and occupational disease prevention, lunch room, rest room, maximum hours, minimum wages,etc.; (b)those concerned with less immediate working conditions and group interests, are gymnasiums ,club rooms, play grounds, gardens, dancing, music, house organs, mutual aid societies, vacation with pay, profit-sharing, stockownership, disability and unemployment funds, pensions, savings banks, provisions for conciliation and arbitration, shop committees and workers councils; (c)those designed to improve community conditions, such as housing, retail stores, schools, libraries, kinder gardens, lectures on Social Security and Labour Welfare in India: A review Social security is one of the pillars on which the structure of a welfare state rests, and it constitutes the hard core of social policy in most countries. It is through social security measures that the state attempts to maintain every citizen at a certain prescribed level below which no one is allowed to fall. It is the security that society furnishes through appropriate organization, against certain risks to which its members are exposed (ILO, 1942). Social security system comprises health and unemployment insurance, family allowances, provident funds, pensions and gratuity schemes, and widows’ and survivors’ allowances. The essential characteristics of social insurance schemes include their compulsory and contributory nature; the members must first subscribe to a fund from which benefits could be drawn later. On the other hand, social assistance is a method according to which benefits are given to the needy persons, fulfilling the prescribed conditions, by the government out of its own resources. The present section reviews labour welfare activities in India with particular emphasis on the unorganized sector. Although provisions for workmen’s compensation in case of industrial accidents and maternity benefits for women workforce had existed for long, a major breakthrough in the field of social security came only after independence. The Constitution of India (Article 41) laid down that the State shall make effective provision for securing the right to public assistance in case of unemployment, old age, sickness and disablement and in other cases of underserved want. The Government took several steps in compliance of the constitutional requirements. The Workmen’s Compensation Act (1926) was suitably revised and social insurance programmes were developed for industrial workers. Provident funds and gratuity schemes were introduced in most industries, and maternity legislation was overhauled. Subsequently, State governments instituted their own social assistance programmes. The provisions for old age comprise pension, provident fund, and gratuity schemes. All the three provisions are different forms of retirement benefits. Gratuity is a lump sum payment made to a worker or to his/her heirs by the company on termination of his/her service due to retirement, invalidity, retrenchment or death (Vajpayee and Shanker, 1950). Welfare Welfare is the provision and maintenance of the conditions of life for individuals by the community. Welfare has a positive and negative aspect. Negative welfare is the provision by the state or other institutions of a “safety net” or the distribution of benefits according to some criteria; so-called positive welfare is the provision of opportunities for people to “help themselves”. This contrast lies behind foreign-aid strategies which concentrate on providing skills or “seed capital” rather than food parcels, for example. The concept of positive and negative welfare is related to the concepts of positive and negative freedom. Marxists support both positive and negative welfare, but recognise that the market inevitably generates inequality and a class of people inevitably the recipients of welfare, who have nothing to sell but their labour power, alongside a class of people who live off the proceeds of exploitation, invariably the providers of welfare. Only by bringing the means of production under thorough going proletarian democracy can the very need for welfare be abolished. Concept of labour welfare The concept of labour welfare is flexible and elastic and differs widely with time, region, industry, social values and customs, degree of industrialization, the general socio-economic development of the people and the political ideologies prevailing at a particular time. It is also moulded according to the age-groups, socio-cultural background, marital and economic status and educational level of the workers in various industries In its broad connotation, the term welfare refers to a state of living of an individual or group in a desirable relationship with total environment – ecological, economic, and social. Conceptually as well as operationally, labour welfare is a part of social welfare which, in turn, is closely linked to the concept and the role of the State. The concept of social welfare, in its narrow contours, has been equated with economic welfare. As these goals are not always be realised by individuals through their efforts alone, the government came into the picture and gradually began to take over the responsibility for the free and full development of human personality of its population. Labour welfare is an extension of the term Welfare and its application to labour. During the industrialisation process, the stress on labour productivity increased; and brought about changes in the thinking on labour welfare. An early study under the UN observed as follows “in our opinion most underdeveloped countries are in the situation that investment in people is likely to prove as productive, in the purely material sense, as any investment in material resources and in many cases, investment in people would lead to a greater increase of the flow of goods and services than would follow upon any comparable investment in material capital” (UN, 1951). The theory that welfare expenditure, especially expenditure on health and education, is productive investment has led to the view that workers could work more productively if they were given a fair deal both at the work place and in the community. The concept of labour welfare has received inspiration from the concepts of democracy and welfare state. Democracy does not simply denote a form of government; it is rather a way of life based on certain values such as equal rights and privileges for all. The operation of welfare services, in actual practice, brings to bear on it different reflections representing the broad cultural and social conditions. In short, labour welfare is the voluntary efforts of the employers to establish, within the existing industrial system, working and sometimes living and cultural conditions of the employees beyond what is required by law, the custom of the industry and the conditions of the market (A. J. Todd, 1933). The constituents of labour welfare included working hours, working conditions, safety, industrial health insurance, workmen’s compensation, provident funds, gratuity, pensions, protection against indebtedness, industrial housing, rest rooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres, music, reading rooms, holiday rooms, workers’ education, co-operative stores, excursions, playgrounds, and scholarships and other help for education of employees’ children. However, labour welfare has both positive and negative sides associated to it. On the positive side, it deals with the provision of opportunities which enable the worker and his family to lead a good life, socially and personally, as well as help him to adjust social transition in his work life, family life and social life. On the negative side it functions in order to nutralise the baneful effects of large scale industrialization and provide a counterbalance to the undesirable social consequences and labour problems which have evolved in the process of this transition. The word labour means any productive activity. In a broader sense, therefore, the phrase labour welfare means the adoption of measures to promote the physical, social, psychological and general well-being of the working population. Welfare work in any industry aims, or should aim, at improving the working and living conditions of workers and their families. Definitions: Labour welfare has been defined in various ways, though unfortunately no single definition has found universal acceptance. The Oxford Dictionary defines labour welfare as “efforts to make life worth living for worker” Chamber’s Dictionary defines welfare as “a state of faring or doing well; freedom from calamity, enjoyment of health, prosperity.” The ILO report refers to labour welfare as “such services, facilities, and amenities, which may be established in, or in the vicinity of undertakings to enable persons employed therein to perform their work in healthy and congenial surroundings and provided with amenities conducive to good health and high morale”. Features: On the basis of the various definitions, the basic characteristics of labour welfare work may be noted thus: 1. It is the work which is usually undertaken within the premises or in the vicinity of the undertakings for the benefit of the benefit of the employees and the members of their families. 2. The work generally includes those items of welfare which are over and above what the employees expect as a result of the contract of service from the employers. 3. The purpose of providing welfare amenities is to bring about development of the whole personality of the worker -his social, psychological, economic, moral, cultural and intellectual development to make him a good worker, a good citizen and a good member of the family. 4. These facilities may be provided voluntarily by progressive and enlightened entrepreneurs at their own accord out of their realization of social responsibility towards labour, or statutory provisions may compel them to make these facilities available; or these may be undertaken by the government or trade unions, if they have the necessary funds for the purpose. 5. Labour welfare is a very broad term, covering social security and such other activities as medical aid, crèches, canteens, recreation, housing, adult education, arrangements for the transport of labour to and from the work place. 6. It may be noted that not only intra-mural but also extra-mural, statutory as well as non-statutory activities, undertaken by any of the three agencies- the employers, trade unions or the government- for the physical and mental development of the worker, both as a compensation for wear and tear that he undergoes as a part of the production process and also to enable him to sustain and improve upon the basic capacity of contribution to the processes of production, “which are all the species of the longer family encompassed by the term ‘labour welfare’. Concept of labour welfare In its broad connotation, the term welfare refers to a state of living of an individual or group in a desirable relationship with total environment – ecological, economic, and social. Conceptually as well as operationally, labour welfare is a part of social welfare which, in turn, is closely linked to the concept and the role of the State. The concept of social welfare, in its narrow contours, has been equated with economic welfare. Pigou defined it as “that part of general welfare which can be brought directly or indirectly into relations with the measuring rod of money” (Pigou, 1962). According to Willensky and Labeaux, social welfare alludes to “those formally organised and socially sponsored institutions, agencies and programmes which function to maintain or improve the economic conditions, health or interpersonal competence of some parts or all of a population” (Willensky and Labeaux, 1918). As these goals may not always be realised by individuals through their efforts alone, the government came into the picture and gradually began to take over the responsibility for the free and full development of human personality of its population. Labour welfare is an extension of the term Welfare and its application to labour. During the industrialisation process, the stress on labour productivity increased; and brought about changes in the thinking on labour welfare. An early study under the UN observed as follows “in our opinion most underdeveloped countries are in the situation that investment in people is likely to prove as productive, in the purely material sense, as any investment in material resources and in many cases, investment in people would lead to a greater increase of the flow of goods and services than would follow upon any comparable investment in material capital” (UN, 1951). The theory that welfare expenditure, especially expenditure on health and education, is productive investment has led to the view that workers could work more productively if they were given a fair deal both at the work place and in the community. The concept of labour welfare has received inspiration from the concepts of democracy and welfare state. Democracy does not simply denote a form of government; it is rather a way of life based on certain values such as equal rights and privileges for all. The operation of welfare services, in actual practice, brings to bear on it different reflections representing the broad cultural and social conditions. In short, labour welfare is the voluntary efforts of the employers to establish, within the existing industrial system, working and sometimes living and cultural conditions of the employees beyond what is required by law, the custom of the industry and the conditions of the market (A. J. Todd, 1933). The constituents of labour welfare included working hours, working conditions, safety, industrial health insurance, workmen’s compensation, provident funds, gratuity, pensions, protection against indebtedness, industrial housing, rest rooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres, music, reading rooms, holiday rooms, workers’ education, co-operative stores, excursions, playgrounds, and scholarships and other help for education of employees’ children. Labour and Labour Welfare Labour sector addresses multidimensional socio-economic aspects affecting labour welfare, productivity, raising living standard of labour force and social security. To raise earnings of work force and achieve higher productivity, skill upgradation through suitable training is of utmost importance. Manpower development to provide adequate labour force of appropriate skills and quality to different sectors essential for rapid socio-economic development and elimination of the mismatch between skills required and skills available has been a major focus of human resource development activities during the last fifty years. Employment generation in all the productive sectors is one of the basic objectives. In this context, providing enabling environment for self employment has received special attention both in urban and rural areas. Objective is also to eliminate bonded labour, employment of children and women in hazardous industries, and minimize occupational health hazards. During the Ninth Plan period, elimination of such undesirable practices as child labour, bonded labour, ensuring workers’ safety and social security, looking after labour welfare and providing of the necessary support measures for sorting out problem relating to employment of both men and women workers in different sectors will receive priority attention. It is also envisaged that the employment exchanges will be reoriented so that they become the source of labour related information, employment opportunities and provide counseling and guidance to employment seekers. All labour welfare measures have the following objectives: 1. Enabling workers to live richer and more satisfactory lives; 2. Contributing to the productivity of labour and efficiency of the enterprise; 3. Enhancing the standard of living of workers by indirectly reducing the burden on their purse; 4. Enabling workers to live in tune and harmony with services for workers obtaining in the neighbourhood community where similar enterprises are situated; 5. Based on an intelligent prediction of the future needs of the industrial workers, designing policies to cushion off and absorb the shocks of industrialisation and urbanisation to workers; 6. Fostering administratively viable and essentially developmental outlook among the workforce; and 7. Discharging social responsibilities. Principles of labour welfare Certain fundamental considerations are involved in the concept of labour welfare. The following are the more important among them. Social responsibility of industry This principle is based on the social conception of industry and its role in the society that is, the understanding that social responsibility of the state is manifested through industry. It is assumed that labour welfare is an expression of industry’s duty towards its employees. Social responsibility means that the obligation of the industry to pursue those policies, to take such decisions, and to follow those lines of action which are desirable in terms of the objectives and values currently obtaining in the society. The values of the Indian community are enshrined in the constitution of the country. Labour welfare is not embroidery on capitalism nor the external dressing of an exploitative management; rather, it is an expression of the assumption by industry of its responsibility for its employees (Maurioce Bruce, 1961). Industry is expected to win the co-operation of the workers, provide them security of employment, fair wage, and equal opportunity for personal growth and advancement, and make welfare facilities available to them. Democratic values The principle of democratic values of labour welfare concedes that workers may have certain unmet needs for no fault of their own, that industry has an obligation to render them help in gratifying those needs, and that workers have a right of determining the manner in which these needs can be met and of participating in the administration of the mechanism of need gratification. The underlying assumption to this approach is that the worker is a mature and rational individual who is capable of taking decisions for himself/herself. Adequacy of wages The third principle of labour welfare is adequacy of wages; it implies that labour welfare measures are not a substitute for wages. It will be wrong to argue that since workers are given a variety of labour welfare services, they need be paid only low wages. Right to adequate wage is beyond dispute Efficiency The fourth principle of labour welfare lays stress on the dictum that to cultivate welfare is to cultivate efficiency. Even those who deny any social responsibility for industry do accept that an enterprise must introduce all such labour welfare measures which promote efficiency (Marshall, 1950). It has been often mentioned that workers’ education and training, housing, and diet are the three most important aspects of labour welfare, which always accentuate labour efficiency. Re-personalization Since industrial organisation is rigid and impersonal, the goal of welfare in industry is the enrichment and growth of human personality. The labour welfare movement seeks to bring cheer, comfort, and warmth in the human relationship by treating man as an individual, with quiet distinct needs and aspirations. Social and cultural programmes, recreation and other measures designed after taking into consideration the workers’ interests go a long way in counteracting the effects of monotony, boredom, and cheerlessness. Co-responsibility The sixth principle of labour welfare recognises that the responsibility for labour welfare lies on both employers and workers and not on employers alone (Moorthy, 1958). Labour welfare measures are likely to be of little success unless mutuality of interest and responsibilities are accepted and understood by both the parties, in particular the quality of responsibility at the attitudinal and organisational level. Totality of welfare The final principle of labour welfare is that the concept of labour welfare must permeate throughout the hierarchy of an organisation, and accepted by all levels of functionaries in the enterprise. Approaches The issue of labour welfare may be studied from different angles, such as: The location, where these amenities are provided, within and outside the industrial undertakings; The nature of amenities such as those concerned conditions of employment and The welfare activities termed as ‘statutory’, ‘voluntary’ and ‘mutual’. The agencies which provide living conditions of work people; these amenities. On the basis of location of welfare activities, labour welfare work has been classified by Broughton in two specific categories, namely, (a)intramural(b)extra-mural (a)Intra-mural activities: consist of such welfare schemes provided within the factories as medical facilities, provision of crèches, and canteens, supply of drinking water, washing and bathing facilities, provision of safety measures such as fencing and covering of machines, good lay-out of machinery and plant, sufficient lighting, first-aid appliances; activities relating to improving conditions of employment, recruitment and discipline and provision of provident fund and gratuity, maternity benefits,etc. (b)Extra-mural activities: cover the services and facilities provided outside the factory such as, housing accommodation, indoor and outdoor recreation facilities, amusement and sports, educational facilities for adults and children, provision of libraries and reading rooms. In the welfare activities concerned with conditions of employment are included activities for the management of problems arising out of hours of work, wages, holidays with pay, rest intervals, sanitation, continuity of employment, control over the recruitment of female and juvenile labour, while all such schemes of benefits as co-operative societies, legal and medical aid, and housing are included in the category of activities concerned with conditions of workers. Labour welfare work may be statutory, voluntary or mutual. It is statutory when such activities have to be undertaken in furtherance of the legislation adopted by the government. It is voluntary when the activities are undertaken at their own accord by the employers or some philanthropic bodies or when a labour organisation undertakes such activities for the welfare of their members. It is mutual, when all parties join hands to bring about the social and economic uplift of the workers. The National Commission on labour has classified various labour welfare measures under two distinct classes: (1)those which have to be provided, irrespective of the size of the establishment or the number of the persons employed therein such as facilities relating to washing, storing, drying the clothing, first-aid, drinking water, latrines and urinals (2)those which are to be provided subject to the employment of a specified number of persons, such as canteen, rest shelter, crèche, ambulance,etc. According to the Encyclopedia of social sciences, “industrial welfare work ”has taken numerous forms such as: (a)those dealing with immediate working conditions are special provisions for adequate light, heat, ventilation, toilet facilities, accident and occupational disease prevention, lunch room, rest room, maximum hours, minimum wages,etc.; (b)those concerned with less immediate working conditions and group interests, are gymnasiums ,club rooms, play grounds, gardens, dancing, music, house organs, mutual aid societies, vacation with pay, profit-sharing, stockownership, disability and unemployment funds, pensions, savings banks, provisions for conciliation and arbitration, shop committees and workers councils; (c)those designed to improve community conditions, such as housing, retail stores, schools, libraries, kinder gardens, lectures on domestic sciences, day nurseries, dispensary and dental service screening of motion pictures, arranging athletic contests and picnics and summer camps. domestic sciences, day nurseries, dispensary and dental service screening of motion pictures, arranging athletic contests and picnics and summer camps. Company profile Established in 1987 Wholly owned 100% export Production Capacity: * Unit I : 4000 pairs a day * Unit II : 3000 pairs a day * (Makes more than 1.5 million pairs in a year) Current Export Markets: * UK, Italy, Spain, France, Germany, Holland & Scandinavia Social Strengths: * An equal opportunity employer * Company with a human face * Hazard free work environment * Abides by the compliance issues of buyers Technical Strengths: * State of art facility equipped with ultra modern Italian, German & Indian Machines * Assembly line production facility with online quality checks * Italian & Spanish designers * R & D focus on design, finish & durability Primary Competitive Advantage: * Experienced R & D Department * CAD System Installed * Large Production Capacity * Reliability & Transparency Fact Sheet Year of Establishment : Nature of Business : Exporter Major Markets Indian Subcontinent, East Europe, North Europe and : 1987 South/West Europe Company Name: Gupta H.C. Overseas (I) Pvt. Ltd. Contact Person: Mr. Gopal Gupta Telephone: +(91)-(562)-4017900 Mobile / Cell Phone: +(91)-9837065456 Fax No: +(91)-(562)-2600300 Address: Bye-Pass Road, Agra, Uttar Pradesh - 282007 (India) Products Ladies High Fashion Footwear (Boots, Shoes & Bags) Production Capacity 1.8 million pairs in a year Unit I : 4000 pairs a day Unit II : 4000 pairs a day Technical Strengths State of art facility equipped with ultra modern machines Collections designed by leading Italian & Spanish design houses R & D focus on authentic designs, finish & sturdiness In-house permanent Italian technicians Equipped with lab for Clark Shoes(UK) Primary Competitive Advantages Experienced R & D Department (Certified by DSIR, Ministry of Science & Technology, Govt. of India - First footwear unit in India to get this certification) Large Production Capacity Reliability & Transparen Social Responsibility In house training institute in collaboration with IL&FS (supported by Ministry of Rural Development, Govt. of India). Aimed at providing employment & skills to people of village settlement and BPL category. Equipped with 100 KW Solar Power Generating System. Saving appx. 80,000 Kg. CO2 emissionper year. International Affiliations First ISO 9001 shoe company in the region SA 8000 Awards & Accredtions By Provincial Govt. State Export Award 1998 By Council of Leather Exports, India Certificate of Merit 2001 Best Performance Award 2003 Best Design Award 2005 Certificate of Merit : SA-8000 Social Accountability 2006 By Govt. of India, Ministry of MSME National Award 2007 (Special Recognition Award) International Exhibitions Garda and Micam Fairs India Franchisee & Licensee of Miss Sixty Shoes & Accessories, Italy STENS, France. (Extensible Sole) www.stens. History of Labour Law in India Labour legislations enacted post independence of India have sought to tackle various problems relating to working conditions, industrial safety, hygiene and welfare, wages, trade unionism, social security, etc. Laws were also enacted to meet the special needs of specific industries and commercial establishments, such as mines, plantations, factories, shops and establishments, etc. With the declaration of a national emergency in 1975, anti-inflationary laws like Payment of Bonus (Amendment) Act, 1975, the Equal Remuneration Ordinance, 1975, etc. were enacted which led to further amelioration of workers in the country. 1 Entry 24, List III, VII Schedule, Constitution. 2 Entry 22, List III, VII Schedule, Constitution. 3 Entry 36, List III, VII Schedule, Constitution. 2.2. In the year 1991, the Indian Government adopted a policy of economic liberalisation. The resultant enhancement of competition in the fast-changing markets raised a new set of challenges since Indian labour laws (including the social security laws) were traditionally inclined to be protective of labour and not conducive to competition in the labour markets. 2.3. With greater mobility and flexibility in the labour markets becoming the need of the hour, employers have consistently argued in the last decade or so that the excessively pro-worker nature of Indian labour laws in the organised sector is a cause for concern. 2.4. This has caused the Government to consider reforms in labour laws in India. Recommendations designed to give the labour markets appropriate flexibility for it to be in a position to compete in the international markets are under consideration. It can consequently be said that the Indian job / labour market has started moving away from a „protectionist‟ and closed model towards a more competitive and open model. 3. Structure of the Indian Labour Market 3.1. The Indian labour market can be broadly divided into three categories: (i) organised sector; (ii) urban informal (i.e. unorganised) sector; and (iii) rural labour (i.e. labour engaged mostly in agriculture). Wages in the urban informal (i.e. unorganised) sector are marginally higher than those in rural areas but much lower than those in the organised sector, varying significantly across skills, occupations, experience and location. This Report on Labour Laws in India (“Report”) examines in detail the legal regime which governs and regulates matters related to employment in the organised sector of the Indian labour market. Individual labor law Contract of employment The basic feature of labor law in almost every country is that the rights and obligations of the worker and the employer between one another are mediated through the contract of employment between the two. This has been the case since the collapse of feudalism and is the core reality of modern economic relations. Many terms and conditions of the contract are however implied by legislation or common law, in such a way as to restrict the freedom of people to agree to certain things to protect employees, and facilitate a fluid labor market. In the U.S. for example, majority of state laws allow for employment to be "at will", meaning the employer can terminate an employee from a position for any reason, so long as the reason is not an illegal reason, including a termination in violation of public policy. One example in many countries is the duty to provide written particulars of employment with the essentialia negotii (Latin for essential terms) to an employee. This aims to allow the employee to know concretely what to expect and is expected; in terms of wages, holiday rights, notice in the event of dismissal, job description and so on. An employer may not legally offer a contract in which the employer pays the worker less than a minimum wage. An employee may not for instance agree to a contract which allows an employer to dismiss them unfairly. There are certain categories that people may simply not agree to because they are deemed categorically unfair. However, this depends entirely on the particular legislation of the country in which the work is. Minimum wage There may be law stating the minimum amount that a worker can be paid per hour. Australia, Belgium, Brazil, Canada, China, France, Greece, Hungary, India, Ireland, Japan, Korea, Luxembourg, the Netherlands, New Zealand, Paraguay, Portugal, Poland, Romania, Spain, Taiwan, the United Kingdom, the United States and others have laws of this kind. The minimum wage is usually different from the lowest wage determined by the forces of supply and demand in a free market, and therefore acts as a price floor. Each country sets its own minimum wage laws and regulations, and while a majority of industrialized countries has a minimum wage, many developing countries have not. 1. Minimum wages are regulated and stipulated also in some countries that lack specific laws. In Sweden, for instance, minimum wages are negotiated between the labor market parties (unions and employer organizations) through collective agreements that also cover non-union workers and nonorganized employers. India in 1948, France in 1950, and in the United Kingdom in 1998. In the European Union, 18 out of 25 member states currently have national minimum wages. Working time Before the Industrial Revolution, the workday varied between 11 and 14 hours. With the growth of industrialism and the introduction of machinery, longer hours became far more common, with 14–15 hours being the norm, and 16 not at all uncommon. Use of child labor was commonplace, often in factories. In England and Scotland in 1788, about two-thirds of persons working in the new waterpowered textile factories were children.[8] The eight-hour movement's struggle finally led to the first law on the length of a working day, passed in 1833 in England, limiting miners to 12 hours, and children to 8 hours. The 10-hour day was established in 1848, and shorter hours with the same pay were gradually accepted thereafter. The 1802 Factory Act was the first labour law in the UK. After England, Germany was the first European country to pass labour laws; Chancellor Bismarck's main goal being to undermine the Social Democratic Party of Germany (SPD). In 1878, Bismarck instituted a variety of anti-socialist measures, but despite this, socialists continued gaining seats in the Reichstag. The Chancellor, then, adopted a different approach to tackling socialism. To appease the working class, he enacted a variety of paternalistic social reforms, which became the first type of social security. The year 1883 saw the passage of the Health Insurance Act, which entitled workers to health insurance; the worker paid two-thirds, and the employer one-third, of the premiums. Accident insurance was provided in 1884, while old age pensions and disability insurance were established in 1889. Other laws restricted the employment of women and children. These efforts, however, were not entirely successful; the working class largely remained unreconciled with Bismarck's conservative government. In France, the first labor law was voted in 1841. However, it limited only underage miners' hours, and it was not until the Third Republic that labour law was effectively enforced, in particular after Waldeck-Rousseau 1884 law legalizing trade unions. With the Matignon Accords, the Popular Front (1936–38) enacted the laws mandating 12 days (2 weeks) each year of paid vacations for workers and the law limiting to 40 hours the workweek (outside of overtime). Health and safety Other labor laws involve safety concerning workers. The earliest English factory law was drafted in 1802 and dealt with the safety and health of child textile workers. Anti-discrimination This clause means that discrimination against employees is morally unacceptable and illegal, on a variety of grounds, in particular racial discrimination or sexist discrimination. Unfair dismissal Convention no. 158 of the International Labor Organization states that an employee "can't be fired without any legitimate motive" and "before offering him the possibility to defend himself". Thus, on April 28, 2006, after the unofficial repeal of the French First Employment Contract (CPE), the Longjumeau (Essonne) conseil des prud'hommes (labor law court) judged the New Employment Contract (CNE) contrary to international law, and therefore "illegitimate" and "without any juridical value". The court considered that the two-years period of "fire at will" (without any legal motive) was "unreasonable", and contrary to convention no. 158, ratified by France. Child labor Two girls wearing banners in Yiddish and English with the slogan "Abolish child slavery!!" at the 1909 May Day parade in New York City Child labor is the employment of children under an age determined by law or custom. This practice is considered exploitative by many countries and international organizations. Child labor was not seen as a problem throughout most of history, only becoming a disputed issue with the beginning of universal schooling and the concepts of laborers' and children rights. Child labor can be factory work, mining or quarrying, agriculture, helping in the parents' business, having one's own small business (for example selling food), or doing odd jobs. Some children work as guides for tourists, sometimes combined with bringing in business for shops and restaurants (where they may also work as waiters). Other children are forced to do tedious and repetitive jobs such as assembling boxes, or polishing shoes. However, rather than in factories and sweatshops, most child labor occurs in the informal sector, "selling on the street, at work in agriculture or hidden away in houses — far from the reach of official inspectors and from media scrutiny." Collective labor law Collective labor law concerns the tripartite relationship between employer, employee and trade unions. Trade unions, sometimes called "labor unions" Trade unions Some countries require unions to follow particular procedures before taking certain actions. For example, some countries require that unions ballot the membership to approve a strike or to approve using members' dues for political projects. Laws may guarantee the right to join a union (banning employer discrimination), or remain silent in this respect. Some legal codes may allow unions to place a set of obligations on their members, including the requirement to follow a majority decision in a strike vote. Some restrict this, such as the 'right to work' legislation in some of the United States. Strikes Strikers gathering in Tyldesley in the 1926 General Strike in the U.K. Strike action is the weapon of the workers most associated with industrial disputes, and certainly among the most powerful. In most countries, strikes are legal under a circumscribed set of conditions. Among them may be that: The strike is decided on by a prescribed democratic process. (Wildcat strikes are illegal). Sympathy strikes, against a company by which workers are not directly employed, may be prohibited. General strikes may be forbidden by a public order. Certain categories of person may be forbidden to strike (airport personnel, health personnel, teachers, police or firemen, etc.) Strikes may be pursued by people continuing to work, as in Japanese strike actions which increase productivity to disrupt schedules, or in hospitals. A boycott is a refusal to buy, sell, or otherwise trade with an individual or business who is generally believed by the participants in the boycott to be doing something morally wrong. Throughout history, workers have used tactics such as the go-slow, sabotage, or just not turning up en-masse to gain more control over the workplace environment, or simply have to work less Some labor law explicitly bans such activity, none explicitly allows it. Pickets Picketing is a tactic which is often used by workers during strikes. They may congregate outside the business they are striking against to make their presence felt, increase worker participation, and dissuade (or prevent) strike breakers from entering the workplace. In many countries, this activity is restricted by labor law, by more general law restricting demonstrations, or sometimes by injunctions on particular pickets. For example, labor law may restrict secondary picketing (picketing a business not directly connected with the dispute, such as a supplier of materials), or flying pickets (mobile strikers who travel to join a picket). There may be laws against obstructing others from going about their lawful business (scabbing, for example, is lawful); making obstructive pickets illegal, and, in some countries, such as Britain, there may be court orders made from time to time against pickets being in particular places or behaving in particular ways (shouting abuse, for example). Workplace involvement Workplace consolation statutes exist in many countries, requiring that employers consult their workers on issues that concern their place in the company. Industrial democracy refers to the same idea, but taken much further. Not only that workers should have a voice to be listened to, but that workers have a vote to be counted. Co-determination Originating in Germany, some form of co-determination (or Mitbestimmung) procedure is practised in countries across continental Europe, such as Holland and the Czech Republic, as well as Scandinavian countries (e.g. Sweden). This involves the rights of workers to be represented on the boards of companies for whom they work. The German model involves half the board of directors being appointed by the company trade union. However, German company law uses a split board system, with a 'supervisory board' (Aufsichtsrat) which appoints an 'executive board' (Vorstand). Shareholders and unions elect the supervisory board in equal number, except that the head of the supervisory board is, under codetermination law, a shareholder representative. While not gaining complete parity, there has been solid political consensus since the Helmut Schmidt social democrat government introduced the measure in 1976. In the United Kingdom, the similar proposals were drawn up, and a command paper produced named the Bullock Report (Industrial democracy). This was released in 1977 by the James Callaghan Labour government. This proposal involved a similar split on the board, but its effect would have been even more radical. Because British company law requires no split in the boards of directors, unions would have directly elected the management of the company. Furthermore, rather than giving shareholders the slight upper hand as happened in Germany, a debated 'independent' element would be added to the board, reaching the formula 2x + y. However, no action was ever taken as the UK slid into the winter of discontent. This tied into the European Commission's proposals for worker participation in the 'fifth company law directive', which was also never implemented. In Sweden, this is regulated through the 'Law on board representation' (Lagen om styrelserepresentation). The law covers all private companies with 25 or more employees. In these companies, workers (usually through unions) have a right to appoint two board members and two substitutes. If the company has more than 1,000 employees, three members and three substitutes are appointed by workers/unions. It is common practice that seats are divided between representatives from the major union coalitions International labor law One of the crucial concerns of workers and those who believe that labor rights are importantis that in a globalizing economy, common social standards ought to support economic development in common markets. However, there is nothing in the way of international enforcement of labor rights, with the notable exception of labor law within the European Union. At the Doha round of trade talks through the World Trade Organization one of the items for discussion was the inclusion of some kind of minimum standard of worker protection. The chief question is whether, with the breaking down of trade barriers in the international economy, while this can benefit consumers it can also make the ability of multinational companies to bargain down wage costs even greater, in wealthier Western countries and developing nations alike. The ability of corporations to shift their supply chains from one country to another with relative ease could be the starting gun for a "regulatory race to the bottom", whereby nation states are forced into a merciless downward spiral, not only slashing tax rates and public services with it but also laws that in the short term cost employers money. Countries are forced to follow suit, on this view, because should they not foreign investment will dry up, move places with lower "burdens" and leave more people jobless and poor. This argument is by no means uncontested. The opposing viewsuggests that free competition for capital investment between different countries increases the dynamic efficiency of the market place. Faced with the discipline that markets enforce, countries are incentivized to invest in education, training, and skills in their workforce to obtain a comparative advantage. Government initiative is spurred, because rational long term investment will be perceived as the better choice to increasing regulation. This theory concludes that an emphasis on deregulation is more beneficial than not. That said, neither the International Labor Organization (see below), nor the European Union takes this view. Impact of ILO on Labor Laws in India The ILO (International Labor Organization) was set up in the year 1919, with an aim to improve the conditions of labors around the world.India was the founding member of ILO, which has now expanded its membership to 145 nations. ILO through its conventions and recommendations helps nations to draw their own set of labor laws for the better treatment of the working class, and the preservation of their rights. The principal means of action in the ILO is the setting up the International Labor Standards in the form of Conventions and Recommendations. Conventions are international treaties and are instruments, which create legally binding obligations on the countries that ratify them. Recommendations are nonbinding and set out guidelines orienting national policies and actions. Labor Law regulates matters, such as, labor employment, remunerations, and conditions of work, trade unions, and labor management relations. They also include social laws regulating such aspects as compensation for accident caused to a worker at work, fixation of minimum wages, maternity benefits, sharing of the company’s profit by the workers, and so on. Most of these legal instruments regulate rights and responsibilities of the working people. The approach of India with regard to International Labor Standards has always been positive. The ILO instruments have provided guidelines and useful framework for the evolution of legislative and administrative measures for the protection and advancement of the interest of labor. To that extent the influence of ILO Conventions as a standard for reference for labor legislation and practices in India, rather than as a legally binding norm, has been significant. Ratification of a Convention imposes legally binding obligations on the country concerned and, therefore, India has been careful in ratifying Conventions. It has always been the practice in India that we ratify a Convention when we are fully satisfied that our laws and practices are in conformity with the relevant ILO Convention. It is now considered that a better course of action is to proceed with progressive implementation of the standards, leave the formal ratification for consideration at a later stage when it becomes practicable. We have so far rat ified 39 Conventions of the ILO, which is much better than the position obtaining in many other countries. Even where for special reasons, India may not be in a position to ratify a Convention, India has generally voted in favor of the Conventions reserving its position as far as its future ratification is concerned. The Effect of Labor Market Regulations A number of studies have attempted to estimate the effects of labor market regulations on economic outcomes in India. Fallon and Lucas (1991) and (1993) studied the effect of job security laws by analyzing the effects of the 1976 introduction of chapter Vb in the Industrial Disputes Act (IDA), which mandated firms employing 300 or more workers to request permission from the government prior to retrench. They found a large impact on manufacturing jobs: formal employment for a given level of output declined by 17.5 percent. Similarly, Dutta Roy (2004) examined the effects of the 1982 central amendment to the IDA, which extended the prohibition to retrench workers without government authorization to firms that employed hundred or more workers. The author found evidence of substantial adjustment costs in employment but no evidence that such costs are driven or altered by the IDA legislative amendment. Both studies however do not control for other macro or policy change that could confound the before-after comparison. Besley and Burgess (2004) isolate the effect of a labor reform in a given state, from changes in policies and macroeconomic variables that are common across states, thus better identifying the effect of labor laws, however their measure of regulations aggregates different types of labor regulations and therefore their results are not directly comparable to the other studies. They find labor regulations to have important adverse effects on output and employment, particularly in the registered manufacturing sector. Hasan, Mitra and Ramaswamy (2003) examine whether differences in labor laws explain differences in the way labor markets adjusted to trade reforms. They find that states with more stringent labor regulations (measured as in Besley and Burgess 2004) have lower demand elasticities and these elasticities are less affected by trade reforms. Finally Lall and Mengistae (2005) examine the influence of labor market regulations –as perceived by employers—on plant productivity differences across Indian cities. They find that differences in the degree of labor regulations, jointly with differences in the severity of power shortages, explain a large share of the productivity gaps between cities. As in Bestley and Burgess (2004) by aggregating different labor laws into one unique measure, they cannot identify which labor laws are the ones responsible for adverse economic outcomes. From the policy perspective, understanding which laws and regulation have more adverse effects is an important question. Since labor laws have proven very difficult to change, focusing precious political capital in reforming some aspects of the law may be one way to mobilize support behind reforms. Why Different Labor Laws may have Different Effects on Economic Outcomes? Different labor regulations are expected to cause differential impacts on economic variables because each may involve a different combination of at least three effects: (1) a price effect, (2) an expropriation effect, and (3) a rigidity effect. Price effects occur when regulations increase the cost of labor. Expropriation effects are related to holdup problems that occur when regulations make it easier for workers to appropriate part of the return of an employers’ investment once that investment is sunk7. This is the case, for instance, when regulations increase workers’ ability to initiate and sustain industrial disputes. Finally rigidity effects occur when regulations make the adjustment of labor (or other factors) more costly and difficult. Regulations that increase the price of labor or generate expropriation effects are expected to have a negative effect on the demand for labor. Instead, regulations that increase the cost of adjusting employment have ambiguous effects since they may cause a reduction of both job creation and job See Besley and Burgess (2002) for a simple model of the expropriation effect. destruction (Bertola, 1990). Thus ultimately, whether regulations have a positive or negative effect on employment depends on whether their dampening effects on job creation are offset by a reduction in job destruction. The effects on capital will also depend on which of the three effects dominate. While the price and rigidity effect may lead firms to substitute labor for capital, the fear of expropriation may create strong disincentives on investment and capital formation. Regulations that specifically target employment adjustment such as chapter Vb are likely to induce large price and rigidity effects, and possibly some expropriation effects as workers’ bargaining power vis-à-vis employers increases the more secure workers feel in their job. On the other hand, regulations that increase the cost of solving industrial disputes are likely to generate expropriation effects associated with the increased uncertainty regarding firms’ ability to solve industrial conflict in their favor. They also create price effects as the price of labor involves the additional costs of handling labor disputes. Finally, they may also create some rigidity effects as dismissal related labor disputes become more costly for firms. The former implies that the effects of a given regulation on outcomes are ambiguous and depend on which of the three effects dominate. Therefore, the issue of what are the effects of different pieces of regulation on employment. Research Methodology Research is the process of systematic and in-depth study or search for any particular topic, subject or area of investigation, backed by collection, compilation, presentation and interpretation of relevant details or data. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Research may develop hypothesis and test it. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with the logic behind them. Research must be based on fact observable data forms a sound basis for research inductive investigation lead better support to research finding for analyzing facts a scientific methodology of analysis must be developed and result interpreted logically. It is necessary for the researcher to know not only the research method or techniques but also the methodology. Thus, when we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. Research problems would result in certain conclusions by means of logical analysis which the decision-maker may use for his action or solution. OBJECTIVES OF STUDY: 1) To study the LABOUR LAW provided to employees 2) To study how the organization motivate the employees by identifying and satisfying their unsatisfied needs. 3) To know which special facilities are provided to reserved class categories like SC, ST, OBC etc.. by the organization. RESEARCH PROCESS: In research process, the first and foremost step is selecting and defining a research problem. A researcher should at first find the problem. Then he should formulate it so that it becomes susceptible to research. For a systematic presentation, the process of research may be classified under three stagesprimary stage, secondary stage, and the tertiary stage. The primary stage includes:i) Observation ii) Interest iii) Formulating research problem iv) Documentation v) Preparation of a bibliography & vi) Research design The secondary stage includes:i) Project planning ii) Data collection iii) Analysis of data iv) Testing of hypothesis v) Interpretation vi) Questionnaire preparation The tertiary stage includes:i) Report writing ii) Observation, suggestions, and conclusions. iii) Preparation of a bibliography OBSERVATION Research starts with observation, which leads to curiosity to learn more about what has been observed. While observation leads to research the research results in elaborate observations and conclusions; or even further research. The observation method is widely used mainly because of its simplicity, usefulness in the framing of hypothesis, its accuracy; the possibility of getting convincing results, the possibility of the test of validity etc. to be precise, observation tends to be the basic of any research. INTEREST The observation of certain occurrences creates an interest and inquisitiveness in the mind of the research to study it future. This is the basis of interest to study the subject matter of observation. The interest is the guiding force behind any research. FORMULATING RESEARCH PROBLEM The research problem undertaken for study must be carefully selected. The problem must be defined thoroughly and should be framed into meaningful terms from the analytical point of view. The area of working must be decided. I had got the information from the HOD of HR department and from some of the employees. Industrial progress largely depend on committee labour force the benefits which go under this nomenclature are of great importance to the employee and which he is enable to secure by himself. The scheme of labour welfare may be regarded as a wise investment which should on usually does brings profitable return in the form of greater efficiency. Thus we can say that welfare facilities are the base of effective and efficient working of the employees in the organization in my opinion welfare has a great importance in the organization. DOCUMENTATION The documentary source is an important source of information for a researcher. A document is any thing in writing a record, files or diaries, published or unpublished- which can be extracted and used in research. It is a very valuable source of information for a research. Documentation is the process of collecting & extracting the documents which are relevant to research. RESEARCH DESIGN After formulating the problem the research design has to be prepared. Preparation of research design involves selection of means of obtaining information, time available for research and selection of method of tabulation & presentation of data. The research of my project is descriptive study. I have obtained information by the HOD of the HR Department and some of the employees of the organization & also from annual reports of company, newspapers, magazines and websites. PROJECT PLANNING Project planning is the first step in actually conducting & directing a research project. It is one of the most important tasks of a researcher. This includes formulation of the research objectives & goals and determining ways of achieving them. DATA COLLECTION Data collection is one of the most important aspects of research. For the success of any project accurate data is very important and necessary. The information collected through research methodology must be accurate and relevant. The data collection method can be classified into two methods:- Primary Data - Secondary Data - Primary Data: Data collected by a researcher is known as primary data. It is collected by a person for his own use obtained from findings. This is considered as first hand information. This is that data which is collected by us to meet our own specific purpose. The data is collected by the means of questionnaire filled in by the employees at different posts of Nagpur area office. This method of data collection is very popular particularly in big organizations. THE RESEARCH APPROACH: Survey Method THE RESEARCH INSTRUMENT: Questionnaire THE RESPONDENTS: The employees of the organization. - Secondary Data: Secondary data means data that are already available ie, they refer to data which has already been collected and analyzed by some one else. This type of data information can also be used by the researcher for his use as second hand information sources through which secondary data can be collected. Secondary data may either be published data or unpublished data. Published data used here is from:i) Magazines ii) Annual reports of the company iii) Newspapers etc. The sources of unpublished data are diaries, letters, unpublished internal records made available by staff members etc. Thus, the primary source of data collection was the interview and questionnaire methods. The secondary data was collected through magazines, annual reports of the company, internal records of the organization and through websites. ANALYSIS OF DATA Once the collection of data is complete, it should be analyzed and processed through classification tabulation etc in accordance with the subject matter. A careful planning of the analytical framework should therefore be done by the researcher. Data analysis is carried out by arranging the data received by the employees in an excel sheet. This data is then converted into graphical forms. Pie charts have also been used for the tabulation and interpretation of data collected. INTERPRETATION After testing the hypothesis the researcher comes out with his conclusions. The explanation of theory can also be considered as interpretation. QUESTIONNAIRE PREPARATION The basic requisite of any research study is the appropriate data which can be collected with the help of a schedule or a questionnaire. With the help of questionnaire it is easy to determine the satisfaction level of so many employees in the organization. SAMPLING SIZE The sampling size on which the analysis is based is 72. SAMPLING TECHNIQUES The sampling technique used for carrying out this study is RANDOM sampling technique. the researcher has to prepare a final report along with conclusion and suggestions. PREPARATION OF A BIBLIOGRAPHY At the end of any research report a bibliography is generally added. This is the list of books, publications, periodicals, journals, reports, etc which are used by the researcher in connection with the study. DATA ANALYSIS AND INTERPRETATION Q. 1) How many facilities provided by the company to you? 25% Canteen Housing 25% 25% Education Medical 25% Conclusion:- Basic facilities are provided to the employees in the form of above mentioned facilities. Q.2) How many special facilities have you availed? 8% 2 to 5 30% 5 to 6 6 and above 62% Conclusion:- More than six special facilities are availed by 62% employees.Q.3) How many facilities are you availing on routine basis? 15% 1 to 5 25% 5 to 10 10 and above 60% Conclusion:- all the employees availing routine welfare facility 60% are saying that they are availing 10 and above facilities on routine basis rest 25 % and 15% saying that they are availing 5 to 10 and 1 to 5 respectively. Q.4) How many facilities are provided for education of children to employees? 35% 40% Bus facility School facility 25% Education loan facility Conclusion:- This suggest employees are quit satisfied with the facilities provided to them and it also help in improving their morale. Q.5) Are you getting wages as per basic minimum criteria allotted by government? 5% 20% Yes No No Suggestions 75% Conclusion:- 75% of the employees are accepted that they are getting wages as per the basic minimum criteria allotted by government. Q.6) How much time it will take for sanctioning special welfare facilities? 10% 40% 1 week 2 to 3 week 3 to 4 week 50% Conclusion:-Welfare facility can those be sanctioned within a time period of 2 to 3 week making the progress. Quite easy for employees. Q.7) Is there suitable ventilation and good environment in the work place? 15% Yes 20% No No Suggestions 65% Q.8) Is the work place regularly cleaned? 90 80 70 60 50 40 30 20 10 0 YES NO Q.9) How much are you satisfied by the procedure of availing routine welfare facilities? 5% 5% 30% highly satisfied satisfied partly satisfied not satisfied 60% Conclusion:- The 30% of the employees are highly satisfied, 60% are satisfied and rest of the employees is 5% partly satisfied and 5% are not satisfied. Q.10) How much are you satisfied by the procedure of availing special welfare facilities? 6% 4% highly satisfied 28%satisfied partly satisfied not satisfied 62% Conclusion:- 62% employees are highly satisfied, 28% are satisfied and rest of the employees are 6% partly satisfied and 4% are not satisfied. Q.11) Kindly suggest the methods of improving or adding special welfare facilities? 8% 17% No improvement early action should be taken proper time should be taken 75% Q.12) Does welfare benefits provided by the organization plays as a motivational factor? 2% highly agree 45% agree 53% disagree Conclusion:- 53% employees are highly agree that the welfare benefits provided by the organization plays a motivational factor. Q.13) Do you get medical reimbursement on time? 15% 2% 53% 30% yes and with full reimbursement yes but with reduced reimbursement No Not applicable Conclusion:- 53% employees agree that they gets full medical reimbursement. Q.14) Briefly explain the procedure of availing routine welfare facilities in points? 5%sanc 25% making appli,submit prof n imme only application is required just an approach 70% Conclusion:- 5% employees says that just an approach is required to avail the routine welfare facility while 25% employees says that to make the application submit the proof and the 70% employees says that only application is required. Q.15) Briefly explain the procedure availing the special welfare facilities in points? 20% lengthy process 5% not availed apply take approval n show proof 75% Conclusion:- 5% of the employees of organization says that they had not availed any special welfare facility 75% says that the procedure is apply the approval and show proof and the other 20% says that the procedure is too lengthy process. OBSERVATION AND CONCLUSION The employees of the organization are found to be satisfied with the facilities provided to them by the company. They still want more focus on family welfare. They want that the time period for sanctioning special welfare facility should be reduced. - More than 70% of the employees agree that the welfare facilities are provided to them and they are availing special welfare facilities according to their need. - A neat, clean and peaceful environment of the organization helps in maintaining satisfaction and enthusiasm to perform work among the employees. - The employees of the Nagpur Area Office of WCL are highly satisfied with the routine welfare facilities which they are availing on a regular basis. - The routine welfare facilities are availed by each employee in the organization by simply filling an application, without any proof and the time required is also nominal. - The time required for sanctioning the special welfare facilities is 2-3 week. - The process of availing special welfare facility is very lengthy and hence it can be availed by following simple process. Conclusions Labor regulations are generally introduced to improve the lot of workers. However our results suggest that in India they are not achieving this goal. Not only regulations have created large costs for society, but they haven’t raised workers’ labor share. Instead, workers have been left with an equal share of a much smaller cake. In the process a large number of job opportunities in the registered sector have been lost, and while some workers have found refuge in the informal sector, the swelling ranks in this sector are likely to be associated with lower earnings in this sector. We also find that while regulations such as chapter Vb of IDA tend to get all the attention, there are important costs associated with regulations that increase the cost of settling industrial disputes. If anything, our findings suggest that their costs for society and for registered sector workers may be higher than those associated with job security laws. By reducing investment, employment and wages, they generate pure costs for workers and for the society as a whole. Improving the conciliation-arbitrationadjudication is a pending reform that could bear important gains for all parties involved Nonetheless, the attention on chapter Vb is well placed. Our results suggest important employment effects associated with the enactment of amendments to this chapter. Moreover, even when earnings may increase somewhat as a result of such policies, registered sector workers lose as employment opportunities dwindle and their wage bill declines with employment. Labor intensive sectors such as textiles are the hardest hit eroding the comparative advantage of India in labor intensive industries, and in the process removing viable job opportunities for a large number of people. Perhaps not surprisingly, contract labor has become a common way to deal with these problems. Yet, such solution is no panacea. It further expands the degree of labor market segmentation by generating first and second-class workers within the manufacturing registered sector. Secondly, the widespread use of contract labor does not seem alleviate the adverse effects of labor regulations, particularly in regards to employment. Nonetheless, it has some positive direct effects on employment independently on labor regulations. Therefore, while further liberalization of the use of contract labor is likely to create some additional jobs and increase output and investment, it is unlikely to bring back the jobs lost due to inappropriate labor regulations. India must find alternative way to improve labor conditions for the majority of workers. While traditionally portrayed as labor advances against the abuses of capital, current labor regulations favor no one. The answer to this conundrum does not involve a complete deregulation of the labor market. Instead, it requires better regulation (and appropriate enforcement) so workers’ fundamental rights can be protected and jobs can be created. SUGGESTIONS AND LIMITATIONS SUGGESTIONS 1) Sanctioning time of special welfare facility should be reduced. 2) New facilities should be added to the existing ones by early action taken by management. 3) Medical reimbursement should also be continued after the retirement. LIMITATIONS 1) The study does not cover the entire work for as sample size is 72. 2) The study is based on a particular class of employees i.e. Officer, clerk etc. 3) The result depends on the answers received from respondent which may be biased. BIBLIOGRAPHY Sr.No Authors Year Title City of Publisher publicatio n 1 V.S.P.Rao 2000 Human New Delhi Excel Books Resource 2 K.Ashwathappa 1997 Human Resource and Personal Management New Delhi Tata Graw-Hill Publishing Co. Ltd. Mc 3 Company Magazines Khanan Bharti - Pragati Nagpur WCL Coal Estate, Civil Lines, Nagpur Annual Reports of Organization Internal Records of Organization