Executive summary

I did my summer training in Verka Milk Plant, Mohali. Initially in the report the information
about the PLant is given. Here we come to know that The Ropar District Cooperation Milk
Producers’ Union Limited Milk Plant S.A.S. Nagar (Mohali)MILKFED was established in 1980
by Punjab Diary Development cooperation under the Punjab Sate Co-operative Act,1967 to
safeguard commercial interest of milk producers farmers to save them from exploitation of
middleman, with their participation in its management and to provide quality milk and milk
products to consumers at competitive rates.

Various work fields are describes in the report .. Information about various related facts are also
given. Merger of varios agencies which put impact on verka is also describe.

Objectives, mission and vision of the verka plant are also given from where we can get to know
that verka is a responsible plant.. It is responsible towards its consumers, society, employees,
environment and shareholders. Various schemes are also given which shows what exactly it is
doing for the environment and for the welfare of its employees.

The whole information about the range of the products it provides to its consumers is given and
the historical aspects of the verka is also given.

Thereafter starts the main topic of the study. Labour Welfare is the topic.It provides information
about the concept of labour welfare.After the conceptual study of the topic all the study is apply
to Verka milk Plant and trying to find real application of aspect to the plant.

The concept of Labour welfare is vary wide. It describe that what is the actually welfare of
labour.It covers that what is labour welfare ? What are main constituents of labour welfare in the
verka ?Which are main major agencies of labour welfare in the plant ? What are main principles
of labour welfare?

1
In the research methodology along with the sources of data collection, the limitations and the
constraints which I had to face during my training are also given.

At the end analysis is done of the whole project. Which highlights that what are the actual
application various aspects of labour welfare in the plant.In the end conclusion is done in which
application of labour welfare is judged after taking various factor in consideration.Some
observations and suggestions are also describe.

2
Chapter 1
1.1 Introduction of Verka
THE PUNJAB STATE COOPERATIVE MILK PRODUCERS FEDRATION LIMITED; The
Punjab State Co-operative Milk Producers’ Federation Limited(MILKFED) was established the
in 1973 by Punjab Diary Development cooperation under the Punjab Sate Co-operative
Act,1967 to safeguard commercial interest of milk producers farmers to save them from
exploitation of middleman, with their participation in its management and to provide quality
milk and milk products to consumers at competitive rates. It came into existence with a twin
objective ; First to carry activities for promoting production, procurement and processing of milk
for the economic development of milk producers by providing remunerative milk market to
them at their door step. Second, provide quality milk and milk products to consumers at
reasonable rates.

Although the federation was registered much earlier, but it came to real self in the year 1983
when all the milk plants Punjab Dairy Development corporation Limited were handed over to
cooperative sector and the entire State was covered under operation Food programme to give
farmers to a better deal and our valued customers better products. Today, when we look back,
Verka has fulfilled the promise to great extent.

The setup of the organization is a three tier system, Milk Producers Cooperative Societies at the
village level, Milk Union at District level and Milk Fedration as an apex body at a State level.

Milk production is a very important part of agricultural economy in the State of Punjab. Punjab
is one of smallest state in Indian Union with a total area of 50,362 Sq. km. Dairy Farming is an
old subsidiary profession in the rural area of Punjab. Punjab is the second largest milk producing
state in India, producing 10 % of country’ s milk.

Some fact about verka

1 First Milk Plant of the State was setup at verka near the Amritsar.

2.The brand name of Milk and Milk Products was adopted as verka.

3. The Foundation stone of Milk Plant Ludhiana was laid by Hon. S . Parkash Singh Badal the
CM of Punjab in 1970.

4. Commissioning of the Plant was done by Dairy Development Corporation in 1974.

3
5 Inauguration was done by Late Smt. Indra Gandhi the PM of India.

6 The capacity of plant was 1.00 lac. Liter per day, including power plant of 7MT and now the
milk plant of 4.00 lac Liter per day.

7. Village level cooperative societies were also formed on “Anand Pattern”. The system was run
by the farmers, of the farmers for the farmers.

1.2 HISTORY OF PLANT

This plant has been established in 1980 by Punjab Dairy Development Corporation. The Punjab
Dairy Development Corporation and Milkfed are the two Government Dairy Organizations
which are running parallel to each other at this time. In 1982 these both organizations submerge
into one organization which is named as Milkfed.

Milkfed came into existence with twin objective of providing remunerative milk market to the
milk producers in the state by value addition and marketing of produce one hand and to provide
technical input to the milk producers for the enhancement of milk production on other hand.

Set up of the organization is the three tier system, Milk Produce’s, Cooperative Societies at the
village level, 11 Milk Union at District Level, and Federation as an Apex Body at State Level,

Ropar Milk Union, Mohali includes about 860 milk producers* cooperative societies at the
village level which are distributed under 12 zones.

Milk Plant has installed capacity to process 2,00,000 ltrs of milk per day. Milk procurement is
increasing gradually @ 5% per annum.

1.3 OBJECTIVES
The specific objectives of the Federation are as under:

a) To carry out activities for promoting production, procurement processing and marketing of
milk and milk products for economic development of the farming community.

b) To develop and expand such other allied activities as may be conducive for the promotion of
the dairy industry, improvement and protection of milk animals and economic betterment of
those engaged in milk production.

c) To purchase and erect buildings, plants, machinery and other ancillary equipment to carry out
business.

d)To study problems of mutual interest related to production, procurement and marketing of
dairy and allied products.

4
e) To purchase commodities from the member and deal with non-members for marketing, dairy
and allied products subject to such conditions as may be decided by the Board from time to time.

f) To establish research and quality control laboratories.

g) To make necessary arrangements for transfer of milk, allied milk products and commodities.

h) To market its products under its own trade name/brand name with its Member Union's trade
mark/brand.

i) To promote the organization of primary societies and assist members in organization of the
Primary Societies.

j) To plan development strategies and programme to increase the volume of procurement and
production of the Federation and its members Unions and for its affective marketing.

k) To give remunerative prices to farmers and to ensure permanent market for the whole year.

i) To provide technical inputs like artificial insemination, to improve the breed of animals,
animals health services, preventive disease treatment and awareness regarding farm management
etc.

m) To provide ISI marks good quality balanced Cattle feed and fodder seeds to the farmers.JOB

5
 1.4 JOB FIELDS IN VERKA

General Manager

Manager (D and HRD) Manager acconts Manager procurement

Deputy manager Deputy manager Deputy manager proc.

Labour wefare officer Accountant Milk Procurement supeviser

Sr assistant Jr accountant Milk procurement assitant

Jr.assitant(clerks) peon Helper

Peons Peon

Manager markiting Manager production Manager quntity control

Deputy manager Deputy manager Deputy manager

Sales manager Dairy assitant Chemist

clerk Plant operator Lab asst.

helper jpo Lab attendant

peon Day helper

Manager engineering D. manager purchchse Dy manager material

Deputy manager Purchase assitant Storekeeper

Foreman Clerk Assitant

Mechanic Peon Helper

Jr mechanic

Oilman ,carpainter drivers,helper

6
Dy manager MIS Security Officer

Sr assitant Security inspector

Clerk gate keeper

mali ,sweeper

1.5 Products and packaging

PRODUCTS PACKING
GHEE POLY PACK/MONO CARTON 500 gms. & 1 Kg.
GHEE TIN PACK 500 gms., 1 Kg., 2 Kg., 5 Kg &15 Kg.
TABLE BUTTER 10 gms., 100 gms. & 500 gms.
CHEESE 200/400 gms. Cekatainer, 200 gms. Singles, 400 gms Tin
& 1 Kg. Brick
PIZZA CHEESE 200 gms. & 1 Kg. Pack
VERKA VIGOUR 500 gms. Jar, 500 gms. Refill & 1 Kg. Jar
DAIRY WHITENER 500 gms. Pkt. & 10 Kg. Tin
SKIMMED MILK POWDER 200 gms. & 500 gms. Bottle, 500 gms. Cekatainer
1 Kg. Pkt. & 25 Kg. Bag
WHOLE MILK POWDER 500 gms.Tin, 1 Kg. Tin, 10 Kg. Tin
SWEETENED FLAVOURED MILK 200 ml. Bottle, 200 ml. Tetrapak
SWEET LASSI 200 ml. Tetrapak
MANGO RASEEELA 200 ml. Tetrapak
PINE APPLE RASEEELA 200 ml. Tetrapak
MILK CAKE /PEDA 200 gms Pkt.
KAJU PINNI 50 gms. Pkt.
MILK POUCHES Full Cream, Standardised, Toned, Double Toned & Skimmed.
U.H.T. MILK 1 Lt. Tetrapak Standardised & Toned

7
Chapter 2

Objectives of the study:-

Some of the main objectives of the study are as follows:

1.To gain the knowledge about the concept of “LABOUR WELFARE”.

2. To know how this concept is related with HR.
3.To know the constituents of labour welfare.
4.To know the rules ,laws and policy of labour welfare

8
Chapter 3
3.1 LABOUR WELFARE
“ Labour welfare activities benefit not only the workers but also the management in term of
greater industrial efficiency”

3.2Introduction
Labour play a very important role in the industrial production of the country. The human
resource managers are really concerned with the management of people at work. It is necessary
to secure the cooperation of labour in order to increase the production and earn higher profits.
The of labour force is possible only when the are fully satisfied with their employer and the
working condition on the job. In the course of time with the introduction of the concept of
Human Resource Management ,psychological researches convinced them that the workers
required some thing more important. In addition to providing monetory benefits, human
treatment given to employee play a very important role in seeking their cooperation.

3.3 Labour welfare a review

There are various aspects of labour welfare in India but social security is consider one main of
them in other words we can say 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

9
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 ).

3.4 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
molded 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 which is applicable in verka plant. The concept of social welfare, in its narrow
contours, has been equated with economic welfare. As these goals are not always be realized 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.

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 broughtdirectly or indirectly into relations with the measuring rod of

10
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”. 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 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, restrooms, 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.

3.5 Definitions:(accepted by verka plant)

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”.
11
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’.

3.6Objectives
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

12
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.

3.7 Principles of labour welfare

Certain fundamental considerations are involved in the concept of labour welfare. The following
are the more important among them.

1.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.

2.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.

3.Adequacy of wages

13
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.

4.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 organization 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.

5.Co-responsibility
The fifth 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.

3.8 Scope of labour welfare work

It is somewhat difficult to accurately lay down the scope of labour welfare work, especially
because of the fact that labour class is composed of dynamic individuals with complex needs. In
a world of changing values, where ideologies are rapidly undergoing transformation, rigid
statements about the field of labour welfare need to be revised. Labour welfare work is
increasing with the growing knowledge and experience of techniques. An able welfare officer

14
would , therefore, include in hiswelfare programme the activities that would be conducive to the
well-being of the worker and his family. The test of the welfare activity is that it removes,
directly or indirectly, any hindrance, physical or mental of the worker and restores to him the
peace and joy of living the welfare work embraces the worker and his family The following list,
which is by no means exhaustive, gives the items under which welfare work should be
conducted inside and outside the work place:

(1)Conditions of work environment:

The workshop sanitation and cleanliness, humidity, ventilation, lighting, elimination of dust,
smoke, fumes and gases, convenience and comfort during work, operative postures, sitting
arrangements etc; distribution of work hours and provision for rest times, breaks and workmen’s
safety measures.

(2)Workers health services. These should include factory health centre; medical
examination of workers, factory dispensary and clinic for general treatment; infant welfare;
women’s general education; workers recreation facilities; education, etc;

(3)Labour welfare programme: These should cover factory council consisting of

representatives of labour and employers; social welfare departments; interview and vocational
testing; employment, follow-up, research bureau; workmen’s arbitration council.

(4)Labour’s Economic welfare programme: These should include co-operatives or fair

price shops for consumer necessities; co-operative credit society, thrift schemes and savings
bank; health insurance; employment bureau; etc.

(5)General welfare work:

This should relate to housing and family care.

3.9 Labour welfare and Government

Welfare of labour One of the major concerns of the Government has been the improvement of
labour welfare with increasing productivity and provision of a reasonable level of social
security.

Social Security There are a variety of laws enacted and schemes established by the Central/State
Governments with a view to provide for social security and welfare of specific categories of
working people. The principal social security laws enacted centrally are the following:

1. The Workmen's compensation Act, 1923 (WC.Act.)

15
2. The Employees State Insurance Act, 1948 (ESI Act)

3. The Employees' Provident Funds and Miscellaneous Provisions Act, 1953 (EPF & MP Act)

4. The Maternity Benefit Act, 1961 (MB Act)

5. The Payment of Gratuity Act, 1972 (PG Act) The EPF and MP Act are administered
exclusively by the Government of India through the EPFO. The cash benefits under the ESI Act
are administered by the Central Government through the Employees State Insurance corporation
(ESIC), whereas medical care under the ESI Act is being administered by the State Government
and Union Territory Administration. The Payment of Gratuity Act is administered by the Central
Government in establishments under its control, establishments having branches in more than
one State, major ports, mines, oil fields and the Railways and by the State Governments and
Union Territory Administrations in all other cases. In mines and circus industry, the provisions
of the Maternity Benefit Act are being administered by the Central Government through the
Chief Labour Commissioner (Central) and by the State Governments in factories, plantations
and other establishments. The provisions of the WC Act are being administered exclusively by
State Governments. Programmes of the State Sector Important programmes undertaken by the
State Governments relate to diversification and expansion of the vocational training programme,
improvement in the quality of training and extension of training opportunities for women, the
World Bank-assisted Vocational Training Project, extension and modernisation of employment
services, strengthening of labour administration, rehabilitation of bonded labour, welfare of rural
and urban unorganised labour etc. Social security is the piller of labour welfare

The concept of social security has been mentioned in the early Vedic hymn which wishes
everyone to be happy, free from ill- health, enjoy a bright future and suffer no sorrow. The
phrase social security is, therefore, a new name for an old aspiration. Today is based on the
“ideals of human dignity and social justice”. Social security is defined as “the security that
society furnishes, through appropriate organization, against certain risks to which its members
are exposed”. These risks are essentially contingencies against which the individual, who has
small means, cannot protect himself. These contingencies include employment injury, sickness,
disablement, industrial disease, maternity, old age, burial, widowhood, orphan hood and
unemployment. Social security is also broadly defined as “the endeavour of the community, as a
whole, to render help to the utmost extent possible to any individual during periods of physical
distress inevitable on illness or injury and during economic distress consequent on reduction or
loss of earnings due to illness, disablement, maternity, unemployment, old age or death of
working member”. Social security thus provides a self-balancing social insurance or assistance
from public funds or a combination of both. Though social security programmes vary from
country to country, their three major characteristics are: they are established by law; they
provide some kind of cash payment to individuals to replace atleast a part of their lost income

16
that our due to such contingencies as unemployment, maternity, work injury, invalidism,
sickness, old age and death; the benefits or services are provide in three major ways:

1 Social insurance,

2 Social assistance or

3 Public services.

Social insurance: The features of social insurance are:

• It is financed entirely by or mainly from the common monetary contributions of workers,
employers and the state.

• The state and the employers make major contribution to this fund, while the employees pay
only a nominal amount.

• When there is total or partial loss of income, these benefits, within limits, ensure the
maintenance of the beneficiary’s minimum standard of living.

•Social insurance benefits are granted without an examination of an individual’s need and
without any means test, without affecting the sense of self respect of the beneficiary.

• These benefits are so planned as to cover, on a compulsory basis, all those who are sought to
be covered. • Social insurance reduces the suffering arising out of the contingencies faced by an
individual –contingencies which he cannot prevent.

Social insurance is different from commercial insurance, for the latter is voluntary and is meant
for the better paid section of the population, and its benefits are in proportion to the premiums
paid; it offers protection only against individual risks and does not aim at providing a minimum
standard of living.

Social assistance:
Social assistance is provided as a supplement to social insurance for those needy person who
cannot get social insurance payments, and is offered after a means test. The general revenues of
the government provide the finance for social assistance payments, which is made available as a
legal right to those workers who fulfil given conditions. Social assistance and social insurance
go side by side. Social assistance programmes cover such programmes as unemployment
assistance, oldage assistance, public assistance and national assistance. Social security is the

17
combination of social assistance and social insurance. Social insurance, however, falls midway
between the two, for it is financed by the stste as well as by the insured and their
employers;whereas social assistance is given gratis to the needy by the state or the community.

Public service:
Public service programmes constitute the third main type of social security. They are financed
directly by the government from their general revenues in the form of cash payment and services
to every member of the community falling within the defined category. This kind of public
service is currently available in a number of countries in the form of national health service
providing medical care for every person in the country, old-age pension, pension for invalidism,
survivor’s pension to every widow or orphan, and a family allowance to every family having a
given number of children. Although these social security programmes have different
characteristics, it is not always easy to draw a line of demarcation among them. In many cases,
two or even three programmes have common characteristics. Apart from state there are many
other agencies which provide se4curity against contingencies. In many countries trade union
have their own sickness, old-age, unemployment schemes. Saving funds, sickness benefits and
old-age pensions have also been provided by a large number of organisations to their
employees.“The underlying idea of social security measures is that a citizen, who has
contributed, or is likely to contribute to his country’s welfare, should be given protection against
certain hazards”. The 1952 ILO convention on social security (minimum standard)divided

Component of social security

(a)Medical care: This should cover pregnancy,confinement, and its consequences and any
disease which may lead to a morbid condition. The need for pre-natal and post-natal care, in
addition to hospitalisation, was emphasized. A morbid condition may require general
practitioner care, provision of essential pharmaceuticals and hospitalization.

(b)Sickness benefit:This should cover incapacity to work following morbid condition resulting
in loss of earnings. This calls for periodical payments based on the convention specification. The
worker need not be paid for the first three days of suspension of earnings and the payment of
benefit may be limited to 26 weeks in a year.

(c) Unemployment benefit:This should cover the loss of earning during a worker’s
unemployment period. When he is capable and available for work but remains unemployed
because of lack of suitable employment. This benefit may be limited to 13 weeks payment in a
year, excluding the first seven days of the waiting period.

(d)Old-age benefit: This benefit provides for the payment-the quantum depending upon an
individual’s working capacity during the period before retirement.-of a certain amount beyond a
prescribed age and continues till death.

18
(e)Employment injury benefit: This should cover the following contingencies resulting from
accident or disease during employment: • Morbid condition • Inability to work following a
morbid condition, leading to suspension of earning; • Total o0r partial loss of earning capacity
which may become permanent; • Death of the breadwinner in the family, as a result of which
family is deprived of financial support. Medical care and periodical payment corresponding to
an individual’s need should be available.

(f)Family benefit: This should cover responsibility for the maintenance of children during an
entire period of contingency. Periodical payment, provision of food, housing, clothing, holidays
or domestic help in respect of children should be provided to a needy family.

(g)Maternity benefit: This benefit should cover pregnancy, confinement and their consequences
resulting in the suspension of earnings. Provision should be for medical care, including pre-natal
confinement, post-natal care and hospitalization if necessary. Periodical payment limited to 12
weeks should be made during the period of suspension of earnings. (h) Invalidism benefit: This
benefit, in the form of periodical payments should cover the needs of workers who suffer from
any, disability arising out of sickness or accident and who are unable to engage in any gainful
activity. This benefit should continue till invalidism changes into old-age, when old age benefits
would become payable.

(i) Survivor’s benefit: This should cover periodical payments to the family following the death
of its breadwinner and should continue the entire period of contingency. The ILO has suggested
various methods of organizing, establishing and financing various social security schemes. For
the benefit of the less developed countries, it has fixed the level of benefits fairly low, so that the
schemes may be practicable.

19
Chapter 4

Methodology used in the study:-

There were various sources of data collection used for this study. These are direct and indirect
sources which are referred to as primary and secondary sources. These sources are as follows:

Primary sources: Some of the primary sources of data collection are past records of workers,
oral interviews, interaction with operators and guidance from officers.

Secondary sources: The secondary sources were used to gain basic and extra information
regarding labour welfare. The secondary source used was internet source and the various rules of
Milkfed. Mainly Various sites containing information regarding concerned topic are given in the
bibliography.

During the study of the topic I had to face some limitations and the constraints as well. Some of
these limitations were:

20
1. The biggest limitation which I any HR trainee has to face in Verka Mlik Plant Mohali that no
proper training is provided to HR students. That place is good for engineering and food
technology students only as far as summer training is concerned.

2. Permission for conducting a proper survey was not given.

3. Sufficient time was not given to me to understand the exact nature and the concept of labour
welfare.

4. The whole of the staff was less cooperative with me.

Chapter 5
WELFARE IN VERKA PLANT
Verka is playing very important role in producing and selling milk products. The concept of
labour welfare is fully adopted by the verka plant in order to satisfy employee needs. All the
principles of labour welfare are accepted by the plant .Labuor welfare aspects are highly
regarded with the view of human resources development. The importance of labour welfare has
been recognized by the plant in order to seeking cooperation of employees.

5.1 CONSTITUENTS OF LABOUR WELFARE IN VERKA

Social security is the main constituent of labour welfare in verka and the another are

welfare included working hours,

working conditions, safety,

industrial health insurance,

workmen’s compensation,

provident funds,

21
gratuity,

pensions,

protection against indebtedness,

industrial housing, restrooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas,
theatres, music, reading rooms, holiday rooms, workers’ education,

co-operative stores, excursions, , and scholarships and other help for education of employees’
children.

5.2 AGENCIES OF LABOUR WELFARE IN VERKA MILK PLANT

There are various agencies which are established rules related to labour welfare in verka plant
these are following

1 Central Government

2 The Co-operative Milk Producer Union Employ Service Rules

3 State Government

4 Worker Union

5.Employer

6. Others

All these play important role in establishing labour welfare in verka plant

1 Central Government
The central Government has passed various legislation for the welfare of different types of
workers which are same applicable in verka some important legislation are

1. The Workmen's compensation Act, 1923 (WC.Act.)

2. The Employees State Insurance Act, 1948 (ESI Act)

3. The Employees' Provident Funds and Miscellaneous Provisions Act, 1953 (EPF & MP Act)

4. The Maternity Benefit Act, 1961 (MB Act)

22
5. The Payment of Gratuity Act, 1972 (PG Act) The EPF and MP Act are administered
exclusively by the Government of India through the EPFO. The cash benefits under the ESI Act
are administered by the Central Government through the Employees State Insurance corporation
(ESIC), whereas medical care under the ESI Act is being administered by the State Government
and Union Territory Administration.

Main provision of laws related with welfare

The Factories Act, 1948

The Factories Act, is a social legislation which has been enacted for occupational safety, health
and welfare of workers at work places. This legislation is being enforced by technical officers
i.e. Inspectors of Factories, Dy. Chief Inspectors of Factories who work under the control of the
Chief Inspector of Factories and overall control of the Labour Commissioner, Government of
National Capital Territory of Delhi

It applies to factories covered under the Factories Act, 1948. The industries in which ten (10) or
more than ten workers are employed on any day of the preceeding twelve months and are
engaged in manufacturing process being carried out with the aid of power or twenty or more
than twenty workers are employed in manufacturing process being carried out without the aid of
power, are covered under the provisions of this Act.

I. Health

II. Safety

III. Welfare facilities

IV. Working hours

V. Employment of young persons

VI Annual Leave with wages etc.

42. WASHING FACILITIES. - (1) In every factory - (a) adequate and suitable facilities for
washing shall be provided and maintained for the use of the workers therein;

(b) separate and adequately screened facilities shall be provided for the use of male and female
workers;

(c) such facilities shall be conveniently accessible and shall be kept clean.

(2) The State Government may, in respect of any factory or class or description of factories or of
any manufacturing process, prescribe standards of adequate and suitable facilities for washing.

23
43. FACILITIES FOR STORING AND DRYING CLOTHING. - The State
Government may, in respect of any factory or class or description of factories, make rules
requiring the provision therein of suitable places for keeping clothing not worn during working
hours and for the drying of wet clothing.

44. FACILITIES FOR SITTING. - (1) In every factory suitable arrangements for sitting
shall be provided and maintained for all workers obliged to work in a standing position, in order
that they may take advantage of any opportunities for rest which may occur in the course of their
work.

(2) If, in the opinion of the Chief Inspector, the workers in any factory engaged in a particular
manufacturing process or working in a particular room are able to do their work efficiently in a
sitting position, he may, by order in writing, require the occupier of the factory to provide before
a specified date such seating arrangements as may be practicable for all workers so engaged or
working.

(3) The State Government may, by notification in the Official Gazette, declare that the
provisions of sub-section (1) shall not apply to any specified factory or class or description of
factories or to any specified manufacturing process.

45. FIRST AID APPLIANCES. - (1) There shall in every factory be provided and
maintained so as to be readily accessible during all working hours first-aid boxes or cupboards
equipped with the prescribed contents, and the number of such boxes or cupboards to be
provided and maintained shall not be less than one for every one hundred and fifty workers
ordinarily employed at any one time in the factory.

(2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard.

(3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person
who holds a certificate in first-aid treatment recognized by State Government and who shall
always be readily available during the working hours of the factory.

(4) In every factory wherein more than five hundred workers are ordinarily employed there shall
be provided and maintained an ambulance room of the prescribed size, containing the prescribed
equipment and in the charge of such medical and nursing staff as may be prescribed and those
facilities shall always be made readily available during the working hours of the factory.

46. CANTEENS. - (1) The State Government may make rules requiring that in any specified
factory wherein more than two hundred and, fifty workers are ordinarily employed, a canteen or
canteens shall be provided and maintained by the occupier for the use of the workers.

24
(2) Without prejudice to the generality of the foregoing power, such rules may provide for - (a)
the date by which such canteen shall be provided;

(b) the standards in respect of construction, accommodation, furniture and other equipment of
the canteen;

(c) the foodstuffs to be served therein and the charges which may be made therefor;

(d) the constitution of a managing committee for the canteen and representation of the workers
in the management of the canteen;

(dd) the items of expenditure in the running of the canteen which are not to be taken into account
in fixing the cost of foodstuffs and which shall be borne by the employer;

(e) the delegation to the Chief Inspector, subject to such conditions as may be prescribed, of the
power to make rules under clause (c).

47. SHELTERS, REST ROOMS AND LUNCH ROOMS. - (1) In every factory
wherein more than one hundred and fifty workers are ordinarily employed, adequate and suitable
shelters or rest rooms and a suitable lunch room, with provision for drinking water, where
workers can eat meals brought by them, shall be provided and maintained for the use of the
workers : Provided that any canteen maintained in accordance with the provisions of section 46
shall be regarded as part of the requirements of this sub-section : Provided further that where a
lunch room exists no workers shall eat any food in the work room.

(2) The shelters or rest rooms or lunch rooms to be provided under sub-section (1) shall be
sufficiently lighted and ventilated and shall be maintained in a cool and clean condition.

(3) The State Government may - (a) prescribe the standards in respect of construction,
accommodation, furniture and other equipment of shelters, rest rooms and lunch rooms to be
provided under this section;

(b) by notification in the Official Gazette, exempt any factory or class or description of factories
from the requirements of this section.

48. CRECHES. - (1) In every factory wherein more than thirty women workers are ordinarily
employed there shall be provided and maintained a suitable room or rooms for the use of
children under the age of six years of such women.

(2) Such rooms shall provide adequate accommodation, shall be adequately lighted and
ventilated, shall be maintained in a clean and sanitary condition and shall be under the charge of
women trained in the care of children and infants.

25
(3) The State Government may make rules - (a) prescribing the location and the standards in
respect of construction, accommodation, furniture and other equipment of rooms to be provided,
under this section;

(b) requiring the provision in factories to which this section applies of additional facilities for the
care of children belonging to women workers, including suitable provision of facilities for
washing and changing their clothing;

(c) requiring the provision in any factory of free milk or refreshment or both for such children;

(d) requiring that facilities shall be given in any factory for the mothers of such children to feed
them at the necessary intervals.

49. WELFARE OFFICERS. - (1) In every factory wherein five hundred or more workers are
ordinarily employed the occupier shall employ in the factory such number of Welfare officers as
may be prescribed.

(2) The State Government may prescribe the duties, qualifications and Conditions of service of
officers employed under sub-section (1).

Plantation Labour Act,1951

Welfare aspects
11.Canteens. —
(1)The State Government may make rules requiring that in every plantation wherein one
hundred and fifty workers are ordinarily employed, one or more canteens shall be provided and
maintained by the employer for the use of the workers.

(2)Without prejudice to the generality of the foregoing power such rules may provide for-

(a)The date by which the canteen shall be provided;

(b)The number of canteens that shall be provided and the standards in respect of construction,
accommodation, furniture and other equipment of the canteen;

(c) The foodstuffs which may be served therein and the charges which may be made therefor;

(d)The constitution of a managing committee for the canteen and the representation of the
workers in the management of the canteen;

26
 (e)The delegation to the chief inspector, subject to such conditions as may be prescribed, of the
power to make rules under clause (c).

12. Crèches. —
(1) In every plantation wherein fifty or more women workers (including women workers
employed by any contractor) are employed or were employed on any day of the preceding
twelve months, or where the number of children of women workers (including women workers
employed by any contractor) is twenty or more, there shall be provided and maintained by the
employer suitable rooms for the use of children of such women workers.

Explanation. - For the purposes of this sub-section and sub-section (1-A), “children” means
persons who are below the age of six years.]

(I-A) Notwithstanding anything contained in sub-section (1), if, in respect of any plantation
wherein less than fifty women workers (including women workers employed by any contractor)
are employed or were employed on any day of the preceding twelve months, or where the
number of children of such women workers is less than twenty, the State Government, having
regard to the number of children of such women workers deems it necessary that suitable rooms
for the use of such children should be provided and maintained by the employer, it may, by
order, direct the employer to provide and maintain such rooms and thereupon the employer shall
be bound to comply with such direction.

(2)[The rooms referred to in sub-section (1) or sub-section 1-A] 1 shall-

(a)Provide adequate accommodation;

(b) Be adequately lighted and ventilated;

(c)Be maintained in a clean and sanitary condition; and

(d)Be under the charge of a woman trained in the care of children and infants.

(3)The State Government may make rules prescribing the location and the standards of 3[the
rooms referred to in sub-section (1) or sub-section (1-A) in respect of their construction and
accommodation and the equipment and amenities to be provided therein.

13. Recreational facilities. -The State Government may make rules requiring every
employer to make provision in his plantation for such recreational facilities for the workers and
children employed therein as may be prescribed.

27
 14.Educational facilities. -Where the children between the ages of six and twelve of
workers employed in any plantation exceed twenty-five in number, the State Government may
make rules, requiring every employer to provide educational facilities for the children in such
manner and of such standard as may be prescribed.

15.Housing facilities. -- It shall be the duty of every employer to provide and maintain
necessary housing accommodation-

(a)For every worker (including his family) residing in the plantation;

(b)For every worker (including his family) residing outside the plantation, who has put in six
months of continuous service in such plantation and who has expressed a desire in writing to
reside in the plantation:

Provided that the requirement of continuous service of six months under this clause shall not
apply to a worker who is a member of the family, of a deceased worker who, immediately before
his death, was residing in the plantation.]

16.Power to make rules relating to housing. -The State Government may make rule
for the purposes of giving effect to the provisions of Section 15 and, in particular providing for--

(a)The standard and specification of the accommodation to be provided;

(b)The selection and preparation of sites for the construction of houses and the size of such plot;

(c)The constitution of advisory boards consisting of representatives of the State Government,

the employer and the workers for consultation in regard to matters connected with housing and
the exercise by them of such powers, functions and duties in relation thereto as may be
specified ;

(d)The fixing of rent, if any, for the housing accommodation provided for workers;

(e)The allotment to workers and their families of housing accommodation and suitable strips of
vacant land adjoining such accommodation for the purposes of maintaining kitchen gardens, a
and for the eviction of workers and their families from such accommodation;

(f)Access to the public to those parts of the plantation wherein the workers are housed.

16-A. Liability of employer in respect of accidents resulting from collapse of houses provided
by him. -

28
 (1)If death or injury is caused to any worker or a member of his family as a result of the
collapse of a house provided under Section 15, and the collapse is not solely and directly
attributable to a fault on the part of any occupant of the house or to a natural, calamity, the
employer shall be liable to pay compensation.

(2) The provisions of Section 4 of, and Schedule IV to, the Workmen's Compensation Act, 1923
(8 of 1923), as in force for the time being,, regarding the amount of compensation payable to a
workman under that Act shall, so far as may be, apply for the determination of the amount of
compensation payable under sub-section (1).

16-B. Appointment of Commissioners. - The State Government may, by notification in

the Official Gazette, appoint as many persons, possessing the prescribed qualifications, as it
thinks fit, to be Commissioners to determine the amount of compensation payable under Section
16-A and may define the limits within which each such Commissioner shall exercise the powers
and discharge the functions conferred or imposed on him by, or under this Act.

16-C. Application for compensation. -

(1)An application for payment of compensation under Section 16-A may be made to the
Commissioner-

(a)By the person who has sustained the injury; or

(b)By any agent duly authorised by the person who has sustained the injury; or

(c)Where the person who has sustained the injury is a minor, by his guardian; or

(d)Where death has resulted out of the collapse of the house, by any dependant of the deceased
or by any agent duly authorized by such dependent or, if such dependant is a minor, by his
guardian.

(2)Every application under sub-section (1) shall be in such form and shall contain such
particulars as may be prescribed.

(3)No application for compensation under this section shall be entertained unless it is made
within six months of the collapse of the house:

Provided that the Commissioner may, if he is satisfied that the applicant was prevented by
sufficient cause from making the application within the aforesaid period of six months, entertain
such application within a further period of six months.

Explanation. - In this section, the expression “dependant” has the meaning assigned to it in
clause (d) of Section 2 of the Workmen's Compensation Act, 1923 (8 of 1923).

29
16-D. Procedure and powers. -
(1) On receipt of an application under Section 16-C, the Commissioner may make an inquiry
into the matter covered by the application.

(2)In determining the amount of compensation payable under Section 16-A, the Commissioner
may, subject to any rules that may be-made in this behalf, follow such summary procedure as he
thinks fit.

(3) The Commissioner shall have all the powers of a civil court while trying a suit under the
Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely: -

(a)Summoning and enforcing the attendance of any person and examining him on oath;

(b)Requiring the discovery and production of any document;

(c)Receiving evidence on affidavits;

(d)Requisitioning any public record or copy thereof from I any court or officer;

(e)Issuing commissions for the examination of witnesses or documents;

(f)Any other matter which may be prescribed.

(4)Subject to any rules that may be made in this behalf, the Commissioner may, for the purpose
of determining any claim or compensation, choose one or more persons possessing special
knowledge of any matter relevant to the inquiry to assist him in holding the inquiry.

16-E. Liability to pay compensation, etc., to be decided by Commissioner. -

(1)Any question as to the liability of an employer to pay compensation under Section 16-A, or
as to the amount thereof, or as to the person to whom such compensation is payable, shall be
decided by the Commissioner.

(2)Any person aggrieved by a decision of the Commissioner refusing to grant compensation, or

as to the amount compensation granted to him, or to the apportionment thereof, may prefer an
appeal to the High Court having jurisdiction over the place where the collapse of the house has
occurred, within ninety days of the communication of the order of the Commissioner to such
person:

Provided that the High Court may entertain any such appeal after the expiry of the period
aforesaid if it is satisfied that the appellant was prevented by sufficient cause from preferring the
appeal within such period:

30
 Provided further that nothing in. this sub-section shall be deemed to authorise the High Court to
grant compensation in excess of the amount of Compensation payable under Section 16-A.

(3)Subject to the decision of the High Court in cases in which an appeal is preferred under sub-
section (2), the decision of the Commissioner under sub-section (1) shall be final and shall not
be called in question in any court.

16-F. Saving as to certain rights. -The right of any person to claim compensation under
Section 16-A shall be without prejudice to the right of such person to recover compensation
payable under any other law for the time being in force; but no person shall be entitled to claim
compensation more than once in respect of the same collapse of the house.

16-G. Power to make rules. -

(1)The State Government may, by notification in the Official Gazette, make rules for giving
effect to the provisions of Sections 16-A to 16-F (both inclusive).

(2)In particular, and without prejudice to the generality of the

foregoing power, such rules may provide for-

(i)The qualifications and conditions of service of Commissioners;

(ii) The manner in which claims for compensation may be inquired

into and determined by the Commissioner;

(iii)The matters in respect of which any person may be chosen to assist the Commissioner under
Section 16-D and tile functions that may be performed by such person;

(iv) Generally for the effective exercise of any powers conferred on the Commissioner.]

17.Other facilities. -The State Government may make rules requiring that in every
plantation the employer shall provide the workers with such number and type of umbrellas,
blankets, rain coats or other tile amenities for the protection of workers from rain or cold as may
be prescribed.

18. Welfare officers. -

(1)In every plantation wherein three hundred or more workers are ordinarily employed the
employer shall employ such number of welfare officers as may be prescribed.

(2)The State Government may prescribe the duties, qualifications and conditions of service of
officers employed under sub-section (1).

31
Employees Provident Fund and Miscellaneous Provisions Act, 1952
5. Employees' Provident Funds Scheme
(1) The Central Government may by notification in the Official Gazette frame a Scheme to be
called the Employees' Provident Funds Scheme for the establishment of provident funds under
this Act for employees or for any class of employees and specify the establishments or class of
establishments to which the said Scheme shall apply and there shall be established as soon as
may be after the framing of the Scheme a Fund in accordance with the provisions of this Act and
the Scheme.

(1A) The Fund shall vest in and be administered by the Central Board constituted under section
5A.

(1B) Subject to the provisions of this Act a Scheme framed under sub-section (1) may provide
for all or any of the matters specified in Sch. II.

(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take
effect either prospectively or retrospectively on such date as may be specified in this behalf in
the Scheme.

The Minimum Wages Act, 1948

4. Minimum rate of wages
(1) Any minimum rate of wages fixed or revised by the appropriate government in respect of
scheduled employments under section 3 may consist of -

(i) a basic rate of wages and a special allowance at a rate to be adjusted at such intervals and in
such manner as the appropriate government may direct to accord as nearly as practicable with
the variation in the cost of living index number applicable to such workers (hereinafter referred
to as the "cost of living allowance"); or

(ii) a basic rate of wages with or without the cost of living allowance and the cash value of the
concessions in respect of suppliers of essential commodities at concession rates where so
authorised; or

(iii) an all-inclusive rate allowing for the basic rate the cost of living allowance and the cash
value of the concessions if any.

(2) The cost of living allowance and the cash value of the concessions in respect of supplied of
essential commodities at concession rate shall be computed by the competent authority at such

32
intervals and in accordance with such directions as may be specified or given by the appropriate
government.

5. Procedure for fixing and revising minimum wages

(1) In fixing minimum rates of wages in respect of any scheduled employment for the first time
under this Act or in revising minimum rates of wages so fixed the appropriate government shall
either -

(a) appoint as many committees and sub-committees as it considers necessary to hold enquiries
and advise it in respect of such fixation or revision as the case may be or

(b) by notification in the Official Gazette publish its proposals for the information of persons
likely to be affected thereby and specify a date not less than two months from the date of the
notification on which the proposals will be taken into consideration.

(2) After considering the advice of the committee or committee appointed under clause (a) of
sub-section (1) or as the case may be all representations received by it before the date specified
in the notification under clause (b) of that sub-section the appropriate government shall by
notification in the Official Gazette fix or as the case may be revise the minimum rates of wages
in respect of each scheduled employment and unless such notification otherwise provides it shall
come into force on the expiry of three months from the date of its issue :

Provided that where the appropriate government proposes to revise the

minimum rates of wages by the mode specified in clause (b) of sub-section (1) the appropriate
government shall consult the Advisory Board also.

Apprentices Act, 1961

14. HEALTH, SAFETY AND WELFARE OF APPRENTICES. - Where any
apprentices are undergoing training in a factory, the provisions of Chapters III, IV and V of the
Factories Act, 1948 (63 of 1948), shall apply in relation to the health, safety and welfare of the
apprentices as if they were workers within the meaning of that Act and when any apprentices are
undergoing training in a mine, the provisions of Chapter V of the Mines Act, 1952 (35 of 1952),
shall apply in relation to the health and safety of the apprentices as if they were persons
employed in the mine.

Workmen's Compensation Act, 1923

3. EMPLOYER'S LIABILITY FOR COMPENSATION. - (1) If personal injury is
caused to a workman by accident arising out of and in the course of his employment, his
employer shall be liable to pay compensation in accordance with the provisions of this Chapter :

33
Provided that the employer shall not be so liable - (a) in respect of any injury which does not
result in the total or partial disablement of the workman for a period exceeding three days;

(b) in respect of any injury, not resulting in death or permanent total disablement, caused by an
accident which is directly attributable to - (i) the workman having been at the time thereof under
the influence of drink or drugs, or

(ii) the willful disobedience of the workman to an order expressly given, or to a rule expressly
framed, for the purpose of securing the safety of workmen, or

(iii) the willful removal or disregard by the workman of any safety guard or other device which
he knew to have been provided for the purpose of securing the safety of workmen,

(2) If a workman employed in any employment specified in Part A of Schedule III contracts any
disease specified therein as an occupational disease peculiar to that employment, or if a
workman, whilst in the service of an employer in whose service he has been employed for a
continuous period of not less than six months (which period shall not include a period of service
under any other employer in the same kind of employment) in any employment specified in Part
B of Schedule III, contracts any disease specified therein as an occupational disease peculiar to
that employment, or if a workman whilst in the service of one or more employers in any
employment specified in Part C of Schedule III, for such continuous period as the Central
Government may specify in respect of each such employment, contracts any disease specified
therein as an occupational disease peculiar to that employment, the contracting of the disease
shall be deemed to be an injury by accident within the meaning of this section and, unless the
contrary is proved, the accident shall be deemed to have arisen out of, and in the course of, the
employment :

Provided that if it is proved, - (a) that a workman whilst in the service of one or more employers
in any employment specified in Part C of Schedule III has contracted a disease specified therein
as an occupational disease peculiar to that employment during a continuous period which is less
than the period specified under this sub-section for that employment, and

(b) that the disease has arisen out of and in the course of the employment; the contracting of
such disease shall be deemed to be an injury by accident within the meaning of this section :

Provided further that if it is proved that a workman who having served under any employer in
any employment specified in Part B of Schedule III or who having served under one or more
employers in any employment specified in Part C of that Schedule, for a continuous period
specified under this sub-section for that employment and he has after the cessation of such
service contracted any disease specified in the said Part B or the said Part C, as the case may be,
as an occupational disease peculiar to the employment and that such disease arose out of the

34
employment, the contracting of the disease shall be deemed to be an injury by accident within
the meaning of this section.

(2A) If a workman employed in any employment specified in Part C of Schedule III contracts
any occupational disease peculiar to that employment, the contracting whereof is deemed to be
an injury by accident within the meaning of this section, and such employment was under more
than one employer, all such employers shall be liable for the payment of the compensation in
such proportion as the Commissioner may, in the circumstances, deem just.

(3) The Central Government or the State Government, after giving, by notification in the Official
Gazette, not less than three months' notice of its intention so to do, may, by a like notification,
add any description of employment to the employments specified in Schedule III, and shall
specify in the case of employments so added the diseases which shall be deemed for the
purposes of this section to be occupational diseases peculiar to those employments respectively,
and thereupon the provisions of sub-section (2) shall apply In the case of a notification by the
Central Government, within the territories to which this Act extends or, in case of a notification
by the State Government, within the State as if such diseases had been declared by this Act to be
occupational diseases peculiar to those employments.

(4) Save as provided by Sub-sections (2), (2A) and (3), no compensation shall be payable to a
workman in respect of any disease unless the disease is directly attributable to a specific injury
by accident arising out of and in the course of his employment.

(5) Nothing herein contained shall be deemed to confer any right to compensation on a workman
in respect of any injury if he has instituted in a Civil Court a suit for damages in respect of the
injury against the employer or any other person; and no suit for damages shall be maintainable
by a workman in any Court of law in respect of any injury - (a) if he has instituted a claim to
compensation in respect of the injury before a Commissioner; or

(b) if an agreement has been come to between the workman and his employer providing for the
payment of compensation in respect of the injury in accordance with the provisions of this Act.

4. AMOUNT OF COMPENSATION. - (1) Subject to the provisions of this Act, the

amount of compensation shall be as follows, namely :- (a) where death results an amount equal
to fifty from the injury cent of the monthly wages of the deceased workman multiplied by the
relevant factor; or an amount of fifty thousand rupees, whichever is more;

(b) where permanent total an amount equal to disablement results from sixty the injury per cent
of the monthly wages of the injured workman multiplied by the relevant factor, or an amount of
sixty thousand rupees, whichever is more.

35
Explanation I : For the purposes of clause (a) and clause (b), "relevant factor", in relation to a
workman means the factor specified in the second column of Schedule IV against the entry in
the first column of that Schedule specifying the number of years which are the same as the
completed years of the age of the workman on his last birthday immediately preceding the date
on which the compensation fell due;

Explanation II : Where the monthly wages of a workman exceed two thousand rupees, his
monthly wages for the purposes of clause (a) and clause (b) shall be deemed to be two thousand
rupees only;

(c) where permanent partial disablement results from the injury (i) in the case of an injury
specified in Part II of Schedule I, such percentage of the compensation which would have been
payable in the case of permanent total disablement as is specified therein as being the percentage
of the loss of earning capacity caused by that injury, and

(ii) in the case of an injury not specified in Schedule I, such percentage of the compensation
payable in the case of permanent total disablement as is proportionate to the loss of earning
capacity (as assessed by the qualified medical practitioner) permanently caused by the injury;

Explanation I : Where more injuries than one are caused by the same accident, the amount of
compensation payable under this head shall be aggregated but not so in any case as to exceed the
amount which would have been payable if permanent total disablement had resulted from the
injuries;

Explanation II : In Assessing the loss of earning capacity for the purposes of sub-clause (ii) the
qualified medical practitioner shall have due regard to the percentages of loss of earning
capacity in relation to different injuries specified in Schedule I;

(d) Where temporary a half monthly payment of the sum disablement, whether equivalent to
twenty-five per cent of total or partial, results monthly wages of the workman, to from the injury
be paid in accordance with the provisions of sub-section (2).

(1A) Notwithstanding anything contained in sub-section (1), while fixing the amount of
compensation payable to a workman in respect of an accident occurred outside India, the
Commissioner shall take into account the amount of compensation, if any, awarded to such
workman in accordance with the law of the country in which the accident occurred and shall
reduce the amount fixed by him by the amount of compensation awarded to the workman in
accordance with the law of that country.

(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be payable on the
sixteenth day - (i) from the date of disablement where such disablement lasts for a period of
twenty-eight days or more; or

36
(ii) after the expiry of a waiting period of three days from the date of disablement where such
disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during
the disablement or during a period of five years, whichever period is shorter :

Provided that - (a) there shall be deducted from any lump sum or half-monthly payments to
which the workman is entitled the amount of any payment or allowance which the workman has
received from the employer by way of compensation during the period of disablement prior to
the receipt of such lump sum or of the first half-monthly payment, as the case may be; and

(b) no half-monthly payment shall in any case exceed the amount, if any, by which half the
amount of the monthly wages of the workman before the accident exceeds half the amount of
such wages which he is earning after the accident.

Explanation : Any payment or allowance which the workman has received from the employer
towards his medical treatment shall not be deemed to be a payment or allowance received by
him by way of compensation within the meaning of clause (a) of the proviso.

(3) On the ceasing of the disablement before the date on which any half-monthly payment falls
due, there shall be payable in respect of that half-month a sum proportionate to the duration of
the disablement in that half-month.

(4) If the injury of the workman results in his death, the employer shall, in addition to the
compensation under sub-section (1), deposit with the Commissioner a sum of one thousand
rupees for payment of the same to the eldest surviving dependant of the workman towards the
expenditure of the funeral of such workman or where the workman did not have a dependant or
was not living with his dependant at the time of his death to the person who actually incurred
such expenditure.

Payment of Bonus Act, 1965

Eligibility

i) Every person (other than an apprentice) drawing salary up to RS 3,500 per month.

Ii) Every person drawing salary between RS 2,501/- and RS 3,500/- per month. The bonus
payable to him is to be calculated as if his salary were RS 2,500/- p.m

Benefits
i) Subject to other provisions :— Minimum bonus shall be 8.33% of salary/wages earned or RS
100 whichever is higher.

Ii) If allocable surplus exceeds the amount of minimum bonus, then bonus shall be payable at
higher rate subject to a maximum 20% of salary/wages.

37
Iii) Computation of bonus is to be worked out as per Schedule I to IV of the Act.

Payment of gratuity act,1972

Maximum amount of gratuity payable is Rs The Act provides for the payment of gratuity to
workers employed in every factory, shop & establishments or educational institution employing
10 or more persons on any day of the proceeding 12 months. A shop or establishment to which
the Act has become applicable shall continue to be governed by the Act even if the number of
persons employed falls bellow 10 at any subsequent stage.

All the employees irrespective of status or salary are entitled to the payment of gratuity on
completion of 5 years of service. In case of death or disablement there is no minimum eligibility
period. The amount of gratuity payable shall be at the rate of 17 days wages based on the rate of
wages last drawn, for every completed year of service. The. 3,50,000/-.

2.The Co-operative Milk Producer Union Employ Service Rules

The another main agency of labour welfare in verka is the The Co-operative Milk Producer
Union Employ Service Rules the following are the main provision regarding the labour welfare

Sec. 2(f)- Definition of employee

“Employee” means a person employed on the post under the Milk Union, but does not include a
casual worker or apprentice, trainee or part time.

Sec 15- Pay and allowances

Except as provided otherwise in these rules an employee is appointed to a post shall be allowed
to draw basic pay at the minimum of the pay scale of the post to which he is appointed.

Sec-15.3
The annul increment in the pay scale shall accrue normally to an employee after he has
completed one year’s service at stage in the pay scale unless it has been withheld for reasons of
unsatisfactory work or conduct by authority or any other officer authorized to section annual
increment. The competent authority may withhold the annual increment provisionally in case
where any charges with regard to unsatisfactory work or conduct are under investigation. Annual
increment in the case of employee who is under the probation shall be allowed only after the
concerned employee complete probation period satisfactory.

Sec-16 Travelling allowance

38
Travelling allowances shall be admissible to an employee according to the TA, DA, rules,
instructions approved by RCS Punjab and adopted by board from time to time.

Sec-17 Provident Fund

Employee of the Milk Union shall be entitled to the membership of the employees Provident
Fund and Miscellaneous Act, 1952 irrespective of the pay drawn by him. Reemployed persons
shall be governed by the terms of their appointment.

Sec- 18 Bonus
Employees of the Milk Union shall be entitled to payment of the Bonus under the payment of
Bonus Act,1965 as amended and re-enacted from time to time.

Sec-19 Gratuity
Every employee of the Milk Union irrespective of the post held and salary drawn by him shall
entitle to payment of gratuity as provision

entitled contained in the payment of gratuity Act,1972 and the rules framed hereunder as may be
in the force from time to time. The calculation of gratuity shall be made on the basis of wages
last drawn by him.

Sec-20 Medical Benefits

An employee as and when covered under the EST ACT/ SCHEME shell get medical benefits as
provided therein. An employee not covered under this EST scheme or act shall be entitled to
medical benefits as may be decided by the Board from time to time with concurrence of the
Milkfed.

Provided that as and when an employee not covered the EST act or scheme he shall
automatically cease to get medical benefits admissible under the rules of Milk Union.

Sec -21 Home travelling concession

The employee shall be entitled to Home Travelling Concession as may be decided by the Board
from time to time with concurrence of Milkfed.

Sec-22 Allowances
Dearness Allowances, Additional Dearness allowances, house rent allowances, Rural allowances
and other compensatory allowances shall be admissible to the employee of the Milk Union as
per the decision of the Board with concurrence of the milkfed and approval of the Registrar.

39
Sec -23 Benefits admissible in the event of the death of an employee during service

In the case of death of an employee while in the service of Milk Union his family members shall
be entitled to following benefits/ facilities/ at thte rate scale as termed as approved by the Board
from time to time with concurrence of milkfed.

Ex-gratia grant

House rent allowances

To Encashment of pay leave

Priority of employment to window/ dependent of deceased employee

Special ex gratia grant to the family members of an employee to the Milk Union.

3. State
The State Government provide various welfare facilities to workers. The implementation of
many provision of various labour laws also rest with the state government. The state government
run health and family planning centers, centers for education, vocational guidance ,recreational
activities and training of workers and other welfare centers. The state government also keep a
vigil on the employers that they are operating welfare schemes made obligatory by the state or
central govt. The state government also has been empowered to prescribe rules for welfare of
workers and appoint appropriate authorities for the enforcement of welfare provisions under
various Acts.

4 Worker Union
Worker union is the another main agency of labour welfare in the verka milk plant. He acts as a
care taker of employee’s rights. The worker unions in verka held the care of all the aspects of
welfare. Worker Union always seeks better cooperation from the employer in providing welfare
facilities. The Union may go against the authority if any unsound policy or rule regarding
welfare is passed.

5 Employer
Employer is the another main agency of labour welfare in the verka. Gm of the plant consider
labour welfare thing important. He is act as care taker of all

the aspects of labour welfare.In addition of it a canteen committee is

40
established for taking care of quality of the food. Various problems related the to canteen are
discussed by the committee.GM organizes a meeting of worker union after every 15 days in
which problems of labour are discussed. In addition to it mange-

-ment is paid half of the meal rate on coupon base system.

4.6 Other
The another agency of labour welfare in verka are

1Labour welfare officer

2Employee welfare committee

1 Labour welfare officer

Labour welfare is main consideration for development of labour.Thats why labour welfare
officer is appointed in the verka.Labour welfare officer play an important rule in verka plant.He
has foolowing duties which are helpful in providing welfare

General duties of welfare officer

The general duties of the Welfare Officer shall be-

(a) to ensure rules and laws are properly follow

(b) to ascertain what further welfare facilities are needed, how best they can be provided and
make suggestions for their establishment;

(c) to make sure that the available welfare facilities provided under the Regulation or otherwise
are being properly maintained and utilized.

(d) to ensure adequate supervision of the amenities provided, especially as regards canteens, rest
rooms, washing and toilet facilities and drinking water;

(e) to examine grievances voiced by the workers in respect of welfare facilities and other
amenities;

(f) to ensure first aid, medical treatment and other assistance for workers

who are injured in the course of their employment in work and are in need of vocational
rehabilitation due to disablement caused due to injury;

2 Employee welfare committe

41
The Punjab State Co-operation Milk Producer Fed Ltd constitute a Employee Welfare Fund.
For the purpose of it a committee is constituted which has following members

1 Adminstrative Manager(HR manager)

2 Manager(MIS)

3 Deputy Manager Acconts

4 Working Union Members

Role of employee welfare fund in welfare of employee

1 At the time of accident 1000-2000 Rs. are paid to employee from this fund.

2 A party is organized at the time of retirement of employee from this fund.

3 A ring of gold and ‘kumble” is given to employee at the time of retirement.

42
Chapter 6
Analysis of the study
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.”If we go through the scope of
labour welfare it is vary wide which cover social as well as economic aspect of labour welfare.
So after study of various aspect of labour welfare we come to analysis that verka consider labour
welfare is the subject of paramount importance.Various agencies are responsible for providing
labour welfare like laws, employer, state ,worker union etc.All these are main weapons of labour
welfare in the verka.In other words we can say that all these agencies are care taker of labour
welfare in the plant.Various legislations play a vary important role in providing facilities
regarding welfare of employees.All these laws cover the major portion of labour welfare like the
workshop sanitation and cleanliness, humidity, ventilation, lighting, elimination of dust, smoke,
fumes and gases, convenience and comfort during work, operative postures, sitting arrangements
distribution of work hours and provision for rest times, breaks and workmen’s safety measures.
These also include factory health centre; medical examination of workers, factory dispensary
and clinic for general treatment; infant welfare; women’s general education; workers recreation
facilities; education, etc. All these laws are properly apply in verka milk plant and all the above
facilities are provided in verka. So in this way Government play an important role in establishing
labour welfare in the verka plant. The state government also keep a vigil on the employers that
they are operating welfare schemes made obligatory by the state or central govt.

On the other hand State Government also play an important rules by favoring these
legislation.The state government also has been empowered to prescribe rules for welfare of
workers and appoint appropriate authorities for the enforcement of welfare provisions under
various Acts. Worker unions acts as protector of rights of employees. Worker come together
when any needs arise in regard of it. The Co-operative Milk Producer Union Employ Service
Rules is a written draft of rules which cover various aspects of labourer,s social and economic

43
comforts like paying fare wages, medical leaves , medical benefits, travelling allowances,
gratuity payment, provident funds etc. All these facilities are provided in the plant

In the verka plant labour welfare commatte is also constituted which have only one purpose that
to provide welfare facilities to the employees like At the time of accident 1000-2000 Rs. are
paid to employee from this fund., party is organized at the time of retirement of employee from
this fund and a ring of gold and ‘kumble” is given to employee at the time of retirement.
Management also play a active role in providing welfare to the labour as half of the amount of
the meal is paid by the management by coupen system. Labour welfare officer is a person in the
verka milk plant which is responsible in establishing all these rules and laws.

So in short we say verka milk plant provide almost all the facilities of labour welfare. All the
employee from upper level to lower level are treated under the same roof of welfare. All these
above said agency of verka are responsible for establishing labour welfare. Labour welfare has
properly established by these agencies.

44
Chapter 7

Recommendations and suggestions:-

• Rules and regulations are strictly followed.Everybody is invited to put forward their
ideas for the improvement of the plant good at many things which make it one of best
of all such factories in India. Some of the areas which are really needed to be
appreciated are:
• There is a Co-operative work culture.
• Workers are motivated in good way.

But still I felt some of the things and areas where there is actually required some sort of
improvement. For this some of the suggestions are:

 Foremost important suggestion is that should provide trainees with proper training and
should give the knowledge regarding actual working in the HR department as it is the
core department of any organization.
 A little more cleanliness is required in the area canteen.
 There are some of the parts in the plant where electricity is wasted. This thing should be
taken care of. Motion sensors are suggested by me in such areas which will solve the
problem of energy scarcity.

45
  Special program must be started for creating awareness among the employee related to
labour laws
 There is a need of promoting recreational activities.

Chapter 8

Observations

There were many things which can be observed . Apart from the main topic there were many
other aspects related to HR in the verka plant which came into light not only through my topic
but also through a small interaction with workers. The main observations are:

• Workers are promoted on the basis of experience.

• Mostly employees are satisfy with policies related to welfare.
• As far as job satisfaction is concerned all the employees are not satisfied with their
jobs because of promotion and salary policies.
• Workers in verka are very punctual.
• Cooperation can be seen from upper level to lower level.
• No specific qualification is required to work as a workmen or an operator in the
plant.
• Experience of working comes by working under somebody else’s supervision and
initially no formal training is provided to any worker.
• HR department is less active.

46
Chapter 9

Conclusion:-

This summer training gave a lot to me. With this summer training we got the
exposure to industrial environment. I got the opportunity to closely experience the
working in the big organizations. Talking about the topic for the study which is
‘Labour Welfare’, initially I had no idea what exactly a labour welfare is. My officers
in the verka plant told me about this concept. It is old concept used in various
organizations to protect the rights of employees.

At the end when If we conclude the topic we can say that scope of labour welfare is
vary wide.All the social , economic and other means which satisfy the labour at
during employing and after employing are mian which come under its coverage.
After the study of conceptual aspects I am trying it to apply to verka milk plant. The
concept of Labour welfare has its own importance in the plant. Various agencies of
labour welfare are play a vary active role e.g. Government makes rules and laws
which are follow in the verka and the have there own rules which emphasis on
welfare other agencies like worker union are also very active.

47
Labour welfare in verka milk plant has properly established. That’s why a post of
Labour Welfare is added in the job fields of plant. So agency of labour welfare in verka
efforts to make life worth living for worker.

As for as the topic concern it comes under the scope of HRM. Labour welfare is a
that type of concept which make sure that there rigts are protected durig and after
the job. Surety of welfare motivate the employees to do there work properly
without any partiality and discrimination concern.

So in the end we can say that ‘labour welfare’ is properly established in the VERKA
MILK PLANT,MOHALI.

Bibliography

a. For Books:
Joshi, Rosy (2008);Human resource management, Kalyani, Delhi.

b. Internet resources:
http://www.verkafoods.com/download.htm
http://milkfed.nic.in/
http://www.vakilno1.com/
http://www.scribd.com/

c. Other sources:
The Co-operative Milk Producer Union Employ Service Rules

48
.

49
50