Social Security and Labour Welfare in India: A review

Social security is one of the pillars on which the structure of a welfare state rests, and it
constitutes the hard core of social policy in most countries. It is through social security
measures that the state attempts to maintain every citizen at a certain prescribed level
below which no one is allowed to fall. It is the security that society furnishes through
appropriate organization, against certain risks to which its members are exposed (ILO,
1942). Social security system comprises health and unemployment insurance, family
allowances, provident funds, pensions and gratuity schemes, and widows’ and
survivors’ allowances. The essential characteristics of social insurance schemes include
their compulsory and contributory nature; the members must first subscribe to a fund
from which benefits could be drawn later. On the other hand, social assistance is a
method according to which benefits are given to the needy persons, fulfilling the
prescribed conditions, by the government out of its own resources.
The present section reviews labour welfare activities in India with
particular emphasis on the unorganized sector. Although provisions for workmen’s
compensation in case of industrial accidents and maternity benefits for women
workforce had existed for long, a major breakthrough in the field of social security
came only after independence. The Constitution of India (Article 41) laid down that the
State shall make effective provision for securing the right to public assistance in case of
unemployment, old age, sickness and disablement and in other cases of underserved
want. The Government took several steps in compliance of the constitutional
requirements. The Workmen’s Compensation Act (1926) was suitably revised and social
insurance programmes were developed for industrial workers. Provident funds and
gratuity schemes were introduced in most industries, and maternity legislation was
overhauled. Subsequently, State governments instituted their own social assistance
programmes. The provisions for old age comprise pension, provident fund, and gratuity
schemes. All the three provisions are different forms of retirement benefits. Gratuity is a
lump sum payment made to a worker or to his/her heirs by the company on termination
of his/her service due to retirement, invalidity, retrenchment or death (Vajpayee and
Shanker, 1950).
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Welfare

Welfare is the provision and maintenance of the conditions of life for individuals
by the community.
Welfare has a positive and negative aspect. Negative welfare is the provision by the
state or other institutions of a “safety net” or the distribution of benefits according
to some criteria; so-called positive welfare is the provision of opportunities for
people to “help themselves”. This contrast lies behind foreign-aid strategies which
concentrate on providing skills or “seed capital” rather than food parcels, for
example. The concept of positive and negative welfare is related to the concepts of
positive and negative freedom.
Marxists support both positive and negative welfare, but recognise that the market
inevitably generates inequality and a class of people inevitably the recipients of
welfare, who have nothing to sell but their labour power, alongside a class of
people who live off the proceeds of exploitation, invariably the providers of
welfare. Only by bringing the means of production under thorough going
proletarian democracy can the very need for welfare be abolished.

Concept of labour welfare

The concept of labour welfare is flexible and elastic and differs widely with
time, region, industry, social values and customs, degree of industrialization, the
general socio-economic development of the people and the political ideologies
prevailing at a particular time. It is also moulded according to the age-groups,
socio-cultural background, marital and economic status and educational level of
the workers in various industries
In its broad connotation, the term welfare refers to a state of living of an
individual or group in a desirable relationship with total environment – ecological,
economic, and social. Conceptually as well as operationally, labour welfare is a
part of social welfare which, in turn, is closely linked to the concept and the role of
the State. The concept of social welfare, in its narrow contours, has been equated
with economic welfare. As these goals are not always be realised by individuals
through their efforts alone, the government came into the picture and gradually
began to take over the responsibility for the free and full development of human
personality of its population.
Labour welfare is an extension of the term Welfare and its application
to labour. During the industrialisation process, the stress on labour productivity
increased; and brought about changes in the thinking on labour welfare. An early
study under the UN observed as follows “in our opinion most underdeveloped
countries are in the situation that investment in people is likely to prove as
productive, in the purely material sense, as any investment in material resources
and in many cases, investment in people would lead to a greater increase of the
flow of goods and services than would follow upon any comparable investment in
material capital” (UN, 1951). The theory that welfare expenditure, especially
expenditure on health and education, is productive investment has led to the view
that workers could work more productively if they were given a fair deal both at
the work place and in the community.
The concept of labour welfare has received inspiration from the
concepts of democracy and welfare state. Democracy does not simply denote a
form of government; it is rather a way of life based on certain values such as equal
rights and privileges for all. The operation of welfare services, in actual practice,
brings to bear on it different reflections representing the broad cultural and social
conditions. In short, labour welfare is the voluntary efforts of the employers to
establish, within the existing industrial system, working and sometimes living and
cultural conditions of the employees beyond what is required by law, the custom of
the industry and the conditions of the market (A. J. Todd, 1933).
The constituents of labour welfare included working hours, working
conditions, safety, industrial health insurance, workmen’s compensation, provident
funds, gratuity, pensions, protection against indebtedness, industrial housing, rest
rooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres,
music, reading rooms, holiday rooms, workers’ education, co-operative stores,
excursions, playgrounds, and scholarships and other help for education of
employees’ children.
However, labour welfare has both positive and negative sides
associated to it. On the positive side, it deals with the provision of opportunities
which enable the worker and his family to lead a good life, socially and personally,
as well as help him to adjust social transition in his work life, family life and social
life. On the negative side it functions in order to nutralise the baneful effects of
large scale industrialization and provide a
counterbalance to the undesirable social consequences and labour problems which
have evolved in the process of this transition.
The word labour means any productive activity. In a broader sense,
therefore, the phrase labour welfare means the adoption of measures to promote the
physical, social, psychological and general well-being of the working population.
Welfare work in any industry aims, or should aim, at improving the working and
living conditions of workers and their families.

Definitions:
Labour welfare has been defined in various ways, though unfortunately no
single definition has found universal acceptance. The Oxford Dictionary defines
labour welfare as “efforts to make life worth living for worker”
Chamber’s Dictionary defines welfare as “a state of faring or doing
well; freedom from calamity, enjoyment of health, prosperity.”
The ILO report refers to labour welfare as “such services, facilities, and
amenities, which may be established in, or in the vicinity of undertakings to
enable persons employed therein to perform their work in healthy and congenial
surroundings and provided with amenities conducive to good health and high
morale”.

Features:
On the basis of the various definitions, the basic characteristics of labour
welfare work may be noted thus:
1. It is the work which is usually undertaken within the premises or in the vicinity
of the undertakings for the benefit of the benefit of the employees and the members
of their families.
2. The work generally includes those items of welfare which are over and above
what the employees expect as a result of the contract of service from the
employers.
3. The purpose of providing welfare amenities is to bring about development of the
whole personality of the worker -his social, psychological, economic, moral,
cultural and intellectual development to make him a good worker, a good citizen
and a good member of the family.
4. These facilities may be provided voluntarily by progressive and enlightened
entrepreneurs at their own accord out of their realization of social responsibility
towards labour, or statutory provisions may compel them to make these facilities
available; or these may be undertaken by the government or trade unions, if they
have the necessary funds for the purpose.
5. Labour welfare is a very broad term, covering social security and such
otheractivities as medical aid, crèches, canteens, recreation, housing, adult
education, arrangements for the transport of labour to and from the work place.
6. It may be noted that not only intra-mural but also extra-mural, statutory as well
as non-statutory activities, undertaken by any of the three agencies- the employers,
trade unions or the government- for the physical and mental development of the
worker, both as a compensation for wear and tear that he undergoes as a part of the
production process and also to enable him to sustain and improve upon the basic
capacity of contribution to the processes of production, “which are all the species
of the longer family encompassed by the term ‘labour welfare’.

Concept of labour welfare

In its broad connotation, the term welfare refers to a state of living of an individual
or group in a desirable relationship with total environment – ecological, economic,
and social.
Conceptually as well as operationally, labour welfare is a part of social welfare
which, in turn, is closely linked to the concept and the role of the State. The
concept of social welfare, in its narrow contours, has been equated with economic
welfare. Pigou defined it as “that part of general welfare which can be brought
directly or indirectly into relations with the measuring rod of money” (Pigou,
1962). According to
Willensky and Labeaux, social welfare alludes to “those formally organised and
socially sponsored institutions, agencies and programmes which function to
maintain or improve the economic conditions, health or interpersonal
competence of some parts or all of a population” (Willensky and Labeaux, 1918).
As these goals may not always be realised by individuals through their efforts
alone, the government came into the picture and gradually began to take over the
responsibility for the free and full development of human personality of its
population.
Labour welfare is an extension of the term Welfare and its application
to labour. During the industrialisation process, the stress on labour productivity
increased; and brought about changes in the thinking on labour welfare. An early
study under the UN observed as follows “in our opinion most underdeveloped
countries are in the situation that investment in people is likely to prove as
productive, in the purely material sense, as any investment in material resources
and in many cases, investment in people would lead to a greater increase of the
flow of goods and services than would follow upon any comparable investment in
material capital” (UN, 1951). The theory that welfare expenditure, especially
expenditure on health and education, is productive investment has led to the view
that workers could work more productively if they were given a fair deal both at
the work place and in the community.
The concept of labour welfare has received inspiration from the
concepts of democracy and welfare state. Democracy does not simply denote a
form of government; it is rather a way of life based on certain values such as equal
rights and privileges for all. The operation of welfare services, in actual practice,
brings to bear on it different reflections representing the broad cultural and social
conditions. In short, labour welfare is the voluntary efforts of the employers to
establish, within the existing industrial system, working and sometimes living and
cultural conditions of the employees beyond what is required by law, the custom of
the industry and the conditions of the market (A. J. Todd, 1933).
The constituents of labour welfare included working hours, working
conditions, safety, industrial health insurance, workmen’s compensation, provident
funds, gratuity, pensions, protection against indebtedness, industrial housing, rest
rooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres,
music, reading rooms, holiday rooms, workers’ education, co-operative stores,
excursions, playgrounds, and scholarships and other help for education of
employees’ children.

Labour and Labour Welfare

Labour sector addresses multidimensional socio-economic aspects affecting labour
welfare, productivity, raising living standard of labour force and social security. To
raise earnings of work force and achieve higher productivity, skill upgradation
through suitable training is of utmost importance. Manpower development to
provide adequate labour force of appropriate skills and quality to different sectors
essential for rapid socio-economic development and elimination of the mismatch
between skills required and skills available has been a major focus of human
resource development activities during the last fifty years. Employment generation
in all the productive sectors is one of the basic objectives. In this context,
providing enabling environment for self employment has received special attention
both in urban and rural areas. Objective is also to eliminate bonded labour,
employment of children and women in hazardous industries, and minimize
occupational health hazards. During the Ninth Plan period, elimination of such
undesirable practices as child labour, bonded labour, ensuring workers’ safety and
social security, looking after labour welfare and providing of the necessary support
measures for sorting out problem relating to employment of both men and women
workers in different sectors will receive priority attention. It is also envisaged that
the employment exchanges will be reoriented so that they become the source of
labour related information, employment opportunities and provide counseling and
guidance to employment seekers.

All labour welfare measures have the following objectives:

1. Enabling workers to live richer and more satisfactory lives;
2. Contributing to the productivity of labour and efficiency of the enterprise;
3. Enhancing the standard of living of workers by indirectly reducing the burden
on their purse;
4. Enabling workers to live in tune and harmony with services for workers
obtaining in the neighbourhood community where similar enterprises are situated;
5. Based on an intelligent prediction of the future needs of the industrial workers,
designing policies to cushion off and absorb the shocks of industrialisation and
urbanisation to workers;
6. Fostering administratively viable and essentially developmental outlook among
the workforce; and
7. Discharging social responsibilities.

Principles of labour welfare

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

Social responsibility of industry

This principle is based on the social conception of industry and its role in the
society that is, the understanding that social responsibility of the state is manifested
through industry. It is assumed that labour welfare is an expression of industry’s
duty towards its employees.
Social responsibility means that the obligation of the industry to pursue those
policies, to take such decisions, and to follow those lines of action which are
desirable in terms of the objectives and values currently obtaining in the society.
The values of the Indian community are enshrined in the constitution of the
country. Labour welfare is not embroidery on capitalism nor the external dressing
of an exploitative management; rather, it is an expression of the assumption by
industry of its responsibility for its employees (Maurioce Bruce, 1961). Industry is
expected to win the co-operation of the workers, provide them security of
employment, fair wage, and equal opportunity for personal growth and
advancement, and make welfare facilities available to them.

Democratic values
The principle of democratic values of labour welfare concedes that workers may
have certain unmet needs for no fault of their own, that industry has an obligation
to render them help in gratifying those needs, and that workers have a right of
determining the manner in which these needs can be met and of participating in the
administration of the mechanism of need gratification. The underlying assumption
to this approach is that the worker is a mature and rational individual who is
capable of taking decisions for himself/herself.

Adequacy of wages
The third principle of labour welfare is adequacy of wages; it implies that labour
welfare measures are not a substitute for wages. It will be wrong to argue that since
workers are given a variety of labour welfare services, they need be paid only low
wages. Right to adequate wage is beyond dispute.

Efficiency
The fourth principle of labour welfare lays stress on the dictum that to cultivate
welfare is to cultivate efficiency. Even those who deny any social responsibility for
industry do accept that an enterprise must introduce all such labour welfare
measures which promote efficiency (Marshall, 1950). It has been often mentioned
that workers’ education and training, housing, and diet are the three most important
aspects of labour welfare, which always accentuate labour efficiency.

Re-personalization
Since industrial organisation is rigid and impersonal, the goal of welfare in
industry is the enrichment and growth of human personality. The labour welfare
movement seeks to bring cheer, comfort, and warmth in the human relationship by
treating man as an individual, with quiet distinct needs and aspirations. Social and
cultural programmes, recreation and other measures designed after taking into
consideration the workers’ interests go a long way in counteracting the effects of
monotony, boredom, and cheerlessness.

Co-responsibility
The sixth principle of labour welfare recognises that the responsibility for
labourwelfare lies on both employers and workers and not on employers alone
(Moorthy, 1958). Labour welfare measures are likely to be of little success unless
mutuality of interest and responsibilities are accepted and understood by both the
parties, in particular the quality of responsibility at the attitudinal and
organisational level.

Totality of welfare
The final principle of labour welfare is that the concept of labour welfare must
permeate throughout the hierarchy of an organisation, and accepted by all levels of
functionaries in the enterprise.

Approaches
The issue of labour welfare may be studied from different angles, such as:
• The location, where these amenities are provided, within and outside the
industrial undertakings;
 • The nature of amenities such as those concerned conditions of employment
and
• The welfare activities termed as ‘statutory’, ‘voluntary’ and ‘mutual’.

• The agencies which provide living conditions of work people; these

amenities.
• On the basis of location of welfare activities, labour welfare work has been
classified by Broughton in two specific categories, namely,
(a)intramural(b)extra-mural
(a)Intra-mural activities: consist of such welfare schemes provided within the
factories as medical facilities, provision of crèches, and canteens, supply of
drinking water, washing and bathing facilities, provision of safety measures such
as fencing and covering of machines, good lay-out of machinery and plant,
sufficient lighting, first-aid appliances; activities relating to improving conditions
of employment, recruitment and discipline and provision of provident fund and
gratuity, maternity benefits,etc.
(b)Extra-mural activities: cover the services and facilities provided outside the
factory such as, housing accommodation, indoor and outdoor recreation facilities,
amusement and sports, educational facilities for adults and children, provision of
libraries and reading rooms.
In the welfare activities concerned with conditions of employment are
included activities for the management of problems arising out of hours of work,
wages, holidays with pay, rest intervals, sanitation, continuity of employment,
control over the recruitment of female and juvenile labour, while all such schemes
of benefits as co-operative societies, legal and medical aid, and housing are
included in the category of activities concerned with conditions of workers.
Labourwelfare work may be statutory, voluntary or mutual. It is
statutory when such activities have to be undertaken in furtherance of the
legislation adopted by the government. It is voluntary when the activities are
undertaken at their own accord by the employers or some philanthropic bodies or
when a labour organisation undertakes such activities for the welfare of their
members. It is mutual, when all parties join hands to bring about the social and
economic uplift of the workers.
 The National Commission on labour has classified various labour welfare
measures under two distinct classes:
(1)those which have to be provided, irrespective of the size of the establishment or
the number of the persons employed therein such as facilities relating to washing,
storing, drying the clothing, first-aid, drinking water, latrines and urinals
(2)those which are to be provided subject to the employment of a specified number
of persons, such as canteen, rest shelter, crèche, ambulance,etc.
According to the Encyclopedia of social sciences, “industrial welfare work
”has taken numerous forms such as:
(a)those dealing with immediate working conditions are special provisions for
adequate light, heat, ventilation, toilet facilities, accident and occupational disease
prevention, lunch room, rest room, maximum hours, minimum wages,etc.;
(b)those concerned with less immediate working conditions and group interests,
are gymnasiums ,club rooms, play grounds, gardens, dancing, music, house organs,
mutual aid societies, vacation with pay, profit-sharing, stockownership, disability
and unemployment funds, pensions, savings banks, provisions for conciliation and
arbitration, shop committees and workers councils;
(c)those designed to improve community conditions, such as housing, retail stores,
schools, libraries, kinder gardens, lectures on domestic sciences, day nurseries,
dispensary and dental service screening of motion pictures, arranging athletic
contests and picnics and summer camps.

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 would , therefore, include in his
welfare 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.

Central Sector
There are Four types of initiatives through the Plan for the Labour and Labour
Welfare Sector. They are:
i. Training for skills development
ii. Services to job seekers
iii. Welfare of Labour
iv. Administration of Labour regulations
Many initiatives are taken for the benefit of workers through the plans of a number
of Labour Intensive Sectors. These are not discussed here because they fall under
the purview of respective sectoral programmes of the plan.
Vocational Training/Skill Development Training
The primary purpose of vocational training is to prepare individuals, especially the
youth in the age group of 15-25 years, for the world of work and make them
employable for a broad group of occupations. The main vocational training
schemes comprise of Craftsmen Training scheme, Apprenticeship Training scheme,
Training of Skilled Workers, Training of Women as a special target group, Training
of Craft Instructors, Training of Supervisors and Foremen. Applied research on
vocational training problems is carried out. Preparation and development of
instructional material is another area where appropriate attention is being paid.
Craftsmen Training scheme and Apprenticeship Training scheme, which are
adequately dovetailed and meant to bring maximum benefit to the youth in their
formative years, form the core of the vocational training schemes. Other vocational
training schemes, though smaller in magnitude, also serve a very useful and
essential purpose in the overall sphere of vocational training. In spite of difficulties
and shortcomings, the vocational training schemes have continued to make
progress specially in term of being the primary source of manpower for industry.
The schemes being well standardized and having national coverage, enjoy a fairly
high crediability.
The Central Government mainly concentrates on laying down the policies,
procedures and training standards while the administrative aspect of the Industrial
Training Institutes (ITIs) is taken care of by the concerned State Governments/UTs.
In this process, the Central Government is advised by two advisory tripartite bodies
namely, National Council for Vocational Training (NCVT) and the Central
Apprenticeship Council (CAC). Both the councils have the Union Labour Minister
as the Chairman.
Craftsmen Training Scheme
Craftsmen Training Scheme(CTS)under the National Vocational Training System
was introduced in 1950 for imparting skill training.
Training is imparted mainly in engineering trades. A few trades out side the
engineering field are also covered but the bulk of the services sector and other
needs of industries other than manufacturing, are not handled by DGE&T.
Two major resources for such training are the Industrial Training Institutes (ITIs)
and the 25000 industrial establishments that take part in Apprentice Training. There
has been a significant growth and expansion in the network of ITIs which have
grown to 4086 in the public and private sector with a seating capacity of 6.41 lakh
as on 31.12.1998 (State-wise details presented in Annexure 5.7.3) and another 2.59
lakh under the Trade Apprentice Scheme. Apprenticeship training scheme provides
practical training in 135 designated trades to train apprentices in 97 subject fields
in engineering and technology for graduates and diploma holders and 94 subject
fields for technicians.
The National Vocational Training Institute at NOIDA (UP) and the Regional
vocational Training Institutes for Women in different parts of India impart basic
and advance levels of vocational training to women. A women's cell under the
office of DGE&T is also coordinating with the states in the matter of vocational
training for women. In the Ninth Plan, a Centrally Sponsored Scheme
"Establishment of new ITIs in the North Eastern States and in Jammu and
Kashmir" is proposed.
The existing training institutions have, no doubt, been meeting a significant part of
the requirements of the skilled manpower of the organised industry. It, however,
seems necessary that the processes of restructuring and reorientation of their
courses are made more dynamic with a view to quickly respond to the labour
market. A greater involvement of industry in planning and running the training
system would also be necessary for this purpose. For skill upgradation of the
workers in the unorganised sector, flexibility in the duration, timing and location of
training courses would need to be introduced. Since a sizeable proportion of
employment would have to be self-employment the in the tiny and small units in
various sectors, the training system should also gear up not only for providing hard
skills for suitable trades, but also the soft skills of entrepreneurship, management
and marketing, as part of the training courses.
In the changed economic scenario, where displacement of labour is inevitable and
existing labour force is expected to get retrenched, a special training scheme is also
being implemented by the Ministry of labour, so that, the workers thus retrenched
are not affected adversely. This scheme is funded out of the National Revival fund
(NRF). Under this scheme, payment are made to the workers who are voluntarily
retiring and also for retraining and redeployment of retrenched workers.
Services to job seekers
To provide services to job seekers is another important initiative taken by the
Labour and Labour Welfare Plan. To achieve this objective, the National
Employment Service has been established.
National Employment Service
It consists of a network of 942 (as on 30.6.98) Employment Exchanges spread
throughout the country. These Employment Exchanges continue to provide
placement vocational guidance services to job seekers registered with them. During
the period January - June,1998, the Employment Exchanges effected 1.18 lakh
placements (statewise details are in annexure 4). Special emphasis was laid on
promotion of self employment by suitably motivating and guiding job seekers.
Twenty three special cells have been set up for this purpose in selected District
Employment exchanges. Out of 165.8 thousand applicants on the live registers of
these 23 cells about 61.1 thousand have been placed in self employment up to
December 1997, by these cell. Besides placement, Employment Exchanges also
handle Employment Market Information. The function of identifying job seekers
has been assumed now primarily by the organisations where jobs arise. The
governments now reach the job seekers directly when a sizable job demand
arises.The number of jobs in public sector has reduced sharply with the
reorientation of the role of economic planning.
The National Employment Service in the context of the newly emerging market
scenario has to be reoriented. The Employment Services has now accepted its
enhanced role and is paying greater attention to compilation and dissemination of
comprehensive labour market information. The important reports generated by
EMI are "The Quarterly Employment Review", "Occupational and Educational
Pattern in India" etc.
The Employment Service continued to pay special attention to the needs of the
weaker section of society. A comprehensive package of services to the handicapped
is provided by 17 Vocational Rehaibilitation Centres for the Handicapped. The
centre at Vadodara caters exclusively to the needs of handicapped women.
Vocational guidance and training in confidence building is provided to job seekers
belonging to the Scheduled Castes and the Scheduled Tribes at 22 coaching cum
guidance centres. Besides, the scheme to provide facilities to SC/ST job seekers for
practising shorthand and typing is in operation in CGCs.
In addition, there are also plan schemes for modernisation and computerisation of
employment exchanges.

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. The planning process attempts to achieve these goals by monitoring
working conditions and creation of industrial harmony through an infrastructure
for healthy industrial relations.
Special drives for inspections under the Crash Programmes & Task Force
inspections were organised during the year for extending coverage of labour laws
like the Minimum Wages Act, Payment of Wages Act, Equal Remuneration Act &
Contract Labour (Regulation & Abolition) Act to workers in the
unorganised/informal sector. A total of 1074(P) inspections under the above
enactments were carried out during the year 1998 as a result of which 15938(P)
irregularities and 489(P) cases of under payments/non payments were detected.
There are at present 12 Industrial Tribunals cum Labour Courts constituted by
Ministry of Labour dealing with industrial disputes in respect of which the Central
Govt. is the appropriate authority. Two CGIT cum Labour Courts,one each at
Lucknow and Nagpur have been set-up. It is also proposed to open three new
CGITs at Hyderabad, Bhubaneswar and Chennai, and provide computer facilities
in all the CGITs in a phased manner. The number of Industrial Tribunals and
Labour Courts set up by the State Governments and the Administrations of the
Union Territories as on 31.10.1998 was 331.
Labour Welfare Funds
The Ministry of Labour is administering five welfare funds for beedi, cine and
certain categories of non coal mine workers. the funds have been and set up under
the following Acts of Parliament:
1. The mica mines Labour Welfare Fund Act, 1946.
2. The Limestone and Dolomite Mines Labour Welfare Fund Act.
3. The Iron Ore, Manganese Ore and Chrome Ore Mines Labour Welfare Fund
Act 1976.
4. The Beedi Workers' Welfare fund Act, 1976
5. The Cine Workers Welfare Fund Act, 1981
The fund created by these acts, is used by the Central Government for the Welfare
of Workers under these occupations.
Agriculture Workers
Agriculture Workers constitute by far the largest segment of workers in the
unorganised sector. These workers get employment for less then six months in a
year and have to migrate to other ares for alternative employment.
Several measures have been taken to protect the interests of the agricultural
workers. The very first legislation-the Minimum Wages Act, 1948 is applied to the
agriculture sector also. Measures have also been taken to look into the interest of
construction workers. Many enactments were extended to the include construction
workers.
Child Labour
According to the 1991 Census, the number of working children in the country was
of the order of 11.28 million (State wise details are available in annexure 5.7.5).
The existence of child labour in hazardous industries is a great problem in India.
Non availability of accurate, authentic and up to date data on child labour has been
a major handicap in planned intervention for eradication of this social evil. Efforts
are underway in the Ninth Plan, to modify and improve the existing National Child
Labour Project. A major activity undertaken under this scheme is the establishment
of special schools to provide non-formal education, vocational training,
supplementary nutrition, stipend, health care etc. to children withdrawn from
employment in hazardous industries. Under the existing scheme 76 National Child
Labour Projects were sanctioned in the Child Labour endemic States to cover
nearly 1.55 lakh children. According to the available information, about 1.05 lakh
children have benefitted from the special schools. State wise coverage under
National Child Labour Project is furnished at Annexure 5.7.6.
The revised scheme approved by Govternment of India in January, 1999 provides
for 100 National Child Labour Projects to cover more children.

Rehabilitation of Bonded Labour

A Centrally Sponsored Scheme was launched by the Ministry of Labour in 1978-
79 for the identification, release and rehabilitation of bonded labourers. The
scheme envisages provision of rehabilitation grant up to a ceiling limit of Rs.
10,000/- per freed bonded labourer, half of which is given as central share.
Women Labour
The Ministry of Labour has set up a Women Labour Cell in 1975. The intention
was to focus attention on the lot of working women with a view to improving it.
An important activity of the Cell is to convene the meeting of the Central Advisory
Committee which has been constituted under the Equal Remuneration Act, 1976
and follow up the recommendations made by the Committee. Another important
activity of the Women Cell is to examine and process project proposals to carry out
studies on matters affecting women workers and also to fund programmes aimed at
improving their economic well being. Several projects aimed at improving the
working conditions of women and raising their economic level were processed by
the Women Cell of the Ministry of Labour during 1998-99. The Cell also give
grants-in-aid to voluntary organisation to carry out research studies on problems of
women workers, their employability and the extent of their displacement on
account of technological and various other changes. This scheme was introduced
with the intention of furthering Government’s policy of helping women workers to
become aware of their rights and opportunities and also become economically
independent.
Occupational Safety and Health
The Constitution of India contains specific provisions on Occupational Safety and
Health of workers. The Directorate General of Mines Safety (DGMS) and
Directorate General of Factory Advice Service and Labour Institutes(DGFASLI)
strives to achieve occupational safety and health in mines factories and ports. The
schemes relating to occupational safety concentrate on improvement of work
environment, man-machinery interface, control and prevention of chemical
hazards, development of protective gears and equipment, training in safety
measures and development of safety and health information system.
Directorate General of Factory Advise, Service and Labour Institutes (DGFASLI)
This organisation functions as the technical arm of the ministry in matters
concerning with safety, health and welfare of workers in factories and ports/docks.
Directorate General of Mines Safety (DGMS)
The Directorate General of Mines Safety which is a subordinate office of the
Ministry of Labour is entrusted with the responsibility of enforcing the provisions
of the Mines Act, 1952. With a view to ensuring enforcement of necessary safety
measures in mines, inspections and enquiries are carried out by the inspecting
officers. During the period April, 1998 to September 1998, 17 notices and 11
orders were issued to coal mines and 4 notices and 15 orders were issued to non-
coal mines. The number of inspections and enquiries carried out during this period
was 4181.
Labour Statistics
The Labour Bureau is responsible for collection, compilation and publication of
statistical and other information regarding employment, wages, earnings, industrial
relations, working conditions etc. It also compiles and publishes the consumer
Price Index Numbers for industrial and agricultural workers. The Bureau further
renders necessary assistance to the States for conducting training programmes in
Labour Statistics of State/District/Unit levels.
Workers' Education
The Central Board of Workers Education is dealing with schemes for training of
workers in the techniques of trade unionism and in bringing about consciousness
among workers about their rights, duties and responsibilities. The Board has also
undertaken programmes for rural workers' education and functional adult
education.
Labour Research and Training
The V.V. Giri National Labour Institute, a fully funded autonomous body of the
Ministry of labour, conducts action oriented research and provides training to grass
root level workers in the trade union movement, both in the urban and rural areas
and also to officers dealing with industrial relations, personnel management, labour
welfare etc.
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.)
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.
Some of the State Governments have attempted to enhance the utility of the
employment service set-up. The Government of Gujarat has attempted to utilise the
employment service set-up at the Taluka level by bringing the job seekers and the
job providers together in Bharti Melas. The Maharashtra Government, in its
programme of State-wide employment guarantee, intends to use the employment
exchanges to identify the beneficiaries. The West Bangal Government has provided
unemployment allowance to those registered, and in the process has generated
some information on the number of unemployed persons in the State, by
identifying them.
States have also introduced various social security schemes. The Governments of
Gujarat, Kerala, Karnataka and Madhya Pradesh have insurance schemes for the
landless agricultural labourers. This needs to be extended to the entire country.
Karnataka, Kerala and Tamil Nadu demonstrated the viability and potential of the
old age pension scheme. Some form of social assistance is also given to the
workers in the unorganised sector. This could be considered by the other states.
Most of the States have strengthened their enforcement machinery to implement
various labour laws. The Assam Government has been implementing the Minimum
Wages Act very meticulously. Many States and Union Territories have appointed
competent authorities under the Equal Remuneration Act, 1976 and have also set-
up Advisory Committees under the Act. Kerala State has introduced the
'Regulation of Employment d Conditions of Service Act' for building and other
construction workers. There are various welfare schemes operated in some states.
The Assam Government has the Assam Tea Welfare Board to promote the welfare
of plantation workers. The State of Kerala has introduced many Welfare Fund Acts
for unorganised workers and has schemes to implement them. These Acts relate to
Handloom Workers, Agricultural Workers, Abkari Workers, Auto Rikshaw
Workers, Tailoring Workers, Kerala Etta, Kattuvalli, Thazha workers and Beedi
and Cigar Workers.

Social security measures

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 organisation, 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, orphanhood 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 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: social insurance, social assistance or 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, old-
age assistance, public assistance and national assistance.
Social security is the 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
social security into nine components:

(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.

(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.

Social security and unorganised labour

Social security is the protection which society provides for its members, through a
series of public measures, against the economic and social distress that otherwise
would be caused by the stoppage or substantial reduction in earnings resulting
from sickness, maternity, employment injury, unemployment, invalidity, old age
and death; provision of medical care, and the provision of subsidies for families
with children (ILO, 1989). The system of social security was started with the
organised sector. However, owing to pressures brought on the state and the society
by the growing awareness within the unorganised sector, concern is increasingly
being expressed and attention given to expanding legislative and social security
protection to the unorganised sector.
Social security schemes should be linked to economic security,
including employment, in-come, and assets. There should be a convergence of the
ways of reaching sustainability and of attaining expanded coverage. The growing
demands of the unorganised labour force and their attempts to organise themselves
can be met by a decentralised participatory social security system. It will lead to a
release of the people’s creative energies and a rapid growth of social security for
the organised sector. Extending social security to the unorganised sector is not
merely a matter of extending existing organised sector schemes to new groups for
the following reasons (Getupig, et al, 1992).
1. Unorganised sector is not a homogenous category;
2. Identifying the employer in this sector is difficult;
3. Unlike the organised sector, where steady and regular employment is a given
fact, unorganised sector workers need employment security, income security, and
social security simultaneously; and
4. Needs of the unorganised sector workers vary from those of the organised sector.
Welfare amenities stipulated in the Factories Act, Mines Act, Plantations Labour
Act, etc., are employment-based, in the sense that such Acts are applicable to
undertakings employing the minimum prescribed number of workers. Outside the
realm of these Acts, there are a large number of small-scale establishments, which
have no obligation, statutory or other-wise, to provide welfare amenities to their
workers. These establishments are located in both urban and rural areas, and are
engaged mostly in processing primary products or in supplementing the existing
large-scale industries in transportation, construction, and retail trade. (Ghosh
Subratesh, 1996). The precise estimate of their employment strength and their
wage, welfare and working conditions are not known. The very nature of industry,
the frequent collusion between the employer and his workmen and place of work
often being in the backyard of the employers’ dwelling are some of the social
problems which stand in the way of bringing the real picture of labour conditions
to light. In the absence of any reliable data necessary for policy recommendations,
one could take stock of the situation only in terms of opinions expressed by
knowledgeable sources.
DEFINITION
The first National Commission on Labour (1966-69) defined
unorganised labour as those who have not been able to organise
themselves in pursuit of common objectives on account of constraints
like casual nature of employment, ignorance and illiteracy, small and
scattered size of establishments and position of power enjoyed by
employers because of the nature of industry etc. Nearly 20 years later the
National Commission on Rural Labour (NCRL: 1987-91) visualised the
same scenario and the same contributory factors leading to the present
status of unorganised rural labour in India.
EXTENT OF UNORGANISED LABOUR
The 1991 Census has classified workers in this country into two
distinct categories as main workers and marginal workers. The main
workers are those workers who work for the major part of the year (296
days) and marginal workers are those who work for less that 6 months
(183 days). Out of a total work force of 314 million in India, about 286
million (i.e. about 91%) were main workers and about 28 million (i.e.9%)
were marginal workers. The data of the Census of India also shows that
the bulk of the working population is in the unorganised sector (i.e. 91%
of the total population) and this workforce is as yet not actively
unionised. The organised sector, which is generally extant around urban
settlements, accounts for only 9% of the total work force.

CATEGORIES OF UNORGANISED LABOUR

Unorganised workers can be categorised broadly under the following
four heads, namely –
1. In terms of occupation
Small and marginal farmers, landless agricultural labourers, share
croppers, fishermen, those engaged in animal husbandry, in beedi rolling,
beedi labelling and beedi packing, building and other construction
workers, leather workers, weavers, artisans, salt workers, workers in
brick kilns and stone quarries, workers in saw mills, oil mills etc. may
come in this category.
 2. In terms of nature of employment
3. Attached agricultural labourers, bonded labourers, migrant
workers, contract and casual labourers come under this
category.
4. In terms of specially distressed categories
Toddy tappers, scavengers, carriers of head loads, drivers of animal
driven vehicles, loaders and unloaders, belong to this category.
5. In terms of service categories
Midwives, domestic workers, fishermen and women, barbers,
vegetable and fruit vendors, newspaper vendors etc. come under this
category.

Social security measures in unorganised sector in India

Social security comprises two types of measures, promotional and protective.
Promotional measures consist mainly of employment, training, and nutrition
schemes, by which persons are enabled to work and earn a livelihood. On the other
hand, protective measures consist of schemes by which the State provides the
means of livelihood when a person is not able to work (Sankaran, T.S, 1993). ILO
standards relating to social security are mainly protective and have been designed
primarily for workers in the organised sector. Both promotional and protective
measures are necessary to provide adequate social security facilities.

Medical care
According to ILO recommendation No.69, medical care should be provided either
through a social service medical care service, with supplementary provisions by
way of social assistance, to meet the requirements of people in need who are not
covered by social insurance, or through a public medical service (ILO, 1984). It
requires that complete preventive and curative care be available, care which is
rationally organised and coordinated with general health services. In India, medical
care is provided largely by the public medical service, by private doctors and
hospitals, and to a limited extent by social insurance schemes, welfare funds, and
voluntary health associations. Some of the Welfare Funds in Kerala have adopted
the reimbursement of the cost of medical care at standard rates or actual, whereas
the Employees State Insurance Scheme is based on providing the service directly
under an integrated arrangement in which the financing and the medical services
vest with the same organisation. On the other hand, some of the public sector
establishments provide service indirectly by entering into contract with doctors,
diagnostic centres, and hospitals.

Sickness benefit
Sickness benefit is payable when an insured person has to stop work due to his
poor health conditions, and such a stop in work usually entails reduction or
stoppage of earnings. Cash benefit is designed to replace in whole, or in part, the
lost earnings. In India, there is provision for payment of sickness benefit under the
Employees State Insurance Scheme (Government of India, 1996). Employees of
Central and State governments and some public and private sector establishments
are entitled to medical leave on half-pay.

Maternity benefit
One of the earliest conventions adopted by ILO was the Maternity Protection
Convention in
1919. The purpose of this Convention was to ensure that a woman worker would
be able to sustain herself and her baby during the period immediately before and
after her confinement. Maternity benefit is usually provided under a social
insurance scheme along with medical care and sickness benefit. In India maternity
benefit is provided under the Maternity Benefit Act (as an employers’ liability) the
Employees State Insurance Act (as a part of the health insurance scheme), the
Beedi and Cigar (Conditions of Employment) Act, Beedi and Cigar Labour Welfare
Fund Act, and the various State government schemes for social assistance. The
National Social Assistance Programme also provides for payment of maternity
benefits in lump sum.

Employment injury benefit

Employment Injury Benefit is the most widely adopted branch of social security,
and is also known as workmen’s compensation. According to ILO
Recommendation No.67 concern in income security, the contingency for which
compensation for employment injury should be paid, is traumatic injury, or disease
in the course of employment, and not injury brought about deliberately, or by
serious and willful misconduct of the victim, which results in temporary or
permanent disability or death (ILO, 1984). This is a cash benefit but is often
associated with medical care. In India, employment injury benefit is provided
under the
Workmen’s Compensation Act and the Employees State Insurance Act. While the
former
Act is applicable to some employment in the unorganised sector, such as the
construction industry, the latter Act is applicable mainly to workers in the
organised sector.

Old-age benefit
Old age, invalidity, and survivors’ benefits are the main long-term social security
benefits, which are of great importance in any social security scheme. ILO
conventions stipulate that the pensionable age should not be more than 65 years,
unless required by demographic, economic, and social criteria, and that there
should be a lower age for persons engaged in arduous occupations. Old age
pension may be at a flat rate, or be related to one’s past earnings. The current trend
appears to be toward building a multi-tiered system consisting of a basic minimum
pension and one or more earnings-related pensions. In India old-age benefit is
provided as follows (Ministry of Labour, 1996).
(a) Government employees: Paid by respective governments on the basis of
employers’ liability.
(b) Employees’ pension scheme:
Workers covered under the Employees Provident and Miscellaneous Provisions
Act.
(c) Destitutes and persons below the poverty line:
Paid under national old age pension scheme and old age pension schemes of State
governments.
There exist no pension schemes for the self-employed, or for workers employed on
a casual, temporary or intermittent basis who are not destitute, and who are not
covered by the Employees Provident Fund and Miscellaneous Provisions Act.

Invalidity benefit
Invalidity benefit is meant for people who have permanently lost their capacity to
earn to the extent prescribed. According to ILO Recommendation No.67
concerning income security, the contingency in which invalidity benefit is payable
is the inability to engage in any substantially gainful activity, because of a chronic
condition due to disease or injury, or because of the loss of a member or its proper
functioning. The relevant ILO convention specifies 15 years of contribution or
employment or 10 years of insurance. But usually one requires only a few years’
insurance, say five years, a part of which needs to be immediately preceding the
invalidity. In India, the Employees Pension Scheme introduced in 1995 provides
for invalidity benefits.

Survivors’ benefit
This benefit is meant primarily for widows and children of persons covered by
Social Security Schemes who cease to have any financial support on the death of
their breadwinner. However, national legislation often recognises claims of other
dependents provided there are no primary beneficiaries. A widespread practice is to
base the survivors’ pension on the rate of the old age pension the deceased was
receiving or would have received (Sankaran, T.S, 1993). In India, survivors’
benefit is provided under the Employees State Insurance Act and Workman’s
Compensation Act in case of death of a person engaged in any employment
covered under these Acts. This benefit is provided under the Employees Provident
Fund and Miscellaneous Provisions Act in case of the death of a member of the
scheme for any reason. Insurance schemes of the Life Insurance Corporation and
General Insurance Corporation also provide this benefit. The National Family
Benefit Scheme extends this benefit in case of the death of the breadwinner of a
family which lies below the poverty line.

Unemployment benefit
The underlying principle of unemployment benefit is that if a person, through no
fault of his, is deprived of his income, he has a right to expect income support, at
least for the necessities of life while he remains available for work. According to
ILO recommendations No.67, the contingency in which unemployment benefit
should be paid is loss of earnings due to a state of unemployment of an insured
person who is ordinarily employed, a person who is capable of regular employment
in some occupation and is searching for suitable employment or due to part time
unemployment (Government of India, 1995-‘96). Its main purpose is to deal with
temporary unemployment of employed persons and not the extensive and
prolonged unemployment and under-employment found in many developing
countries. The payment of the benefits depends on satisfying the qualifying clause
of covered employment, and a waiting period may also be applied.

Family benefit
ILO Recommendation No.67 says that society should co-operate with parents, and
give general assistance designed to secure the wellbeing of children. This benefit is
intended to assist families in raising their children. Although there are no family
benefit schemes in India, which provide for the payment of cash allowances to
families for the maintenance of children, there exist many schemes which help
families of Scheduled Castes/Tribes, minorities and other weaker sections of
society, in the discharge of their responsibilities for education of their children,
marriage of their daughters, construction of houses, and meeting funeral expenses.

Strategies for social security in unorganised sector

The majority of the Social security schemes implemented in the country were in
the organised sector, keeping large numbers outside the realm of the Social security
net (Berman, 1995). A beginning has been made lately to provide social insurance
for workers in the unorganised sector, with the help of the Central and the State
governments. These schemes are administered by government agencies, co-
operatives or NGOs, and are a combination of social assistance and social
insurance.
Insurance schemes
The Life Insurance Corporation of India has developed group insurance, which is
akin to social insurance based on large numbers, and has the potential to provide
social security to persons in the unorganised industrial and agricultural sectors.
There exist now several other group insurance schemes for the unorganised sector
workers such as milk producers, handloom weavers, rickshaw pullers, shop
assistants, beedi workers, and fish farmers. The schemes of the LIC provide mainly
survivor benefits; however, some also provide old-age pensions. The General
Insurance Corporation (GIC) of India also administers a few social security
schemes for poor families, a Hut Insurance Scheme, and a Solatium Fund. In
addition, GIC has introduced a Health Insurance Scheme, and has been
administering the comprehensive Group Insurance Scheme for the Central
Government. The schemes of the
General Insurance Corporation provide invalidity benefits, or health insurance, or
protection against loss of property.

National Social Assistance Programme

Of the various protective schemes in existence for workers in the unorganised
sector, the most important is the National Social Assistance Programme introduced
in 1955 (Wadhawan, 1989). It provides social assistance to poor households in the
case of old age, death of the breadwinner, and maternity through the National Old
Age Pension Scheme, National Family Benefit Scheme, and the National
Maternity Benefit Scheme respectively. Under the National Old Age Pension
Scheme, Central assistance is provided to States for payment of old age pension to
persons who are of the age of 65 years or more. In addition to the National Old
Age Pension Scheme, all State governments and Union territories have their own
old-age pension schemes.

Other pension schemes

Apart from the old-age pension schemes already referred to, the States Kerala,
Tamil Nadu,
Karnataka, Andhra Pradesh, Maharashtra, and Gujarat have pension schemes for
agricultural workers. Many states have extended the old-age pension scheme
benefits to destitute widows, physically and mentally retarded persons, freedom
fighters and indigent artists; and some have also set up homes for destitute widows
and deserted /divorced women. Under the Family Benefit scheme assistance is
given to families below the poverty line on the death of their breadwinner; under
the National Maternity Benefit scheme assistance is given to pregnant women for
the first two childbirths.

Welfare Funds
Welfare funds represent one of the models tried in India for providing social
security protection to workers in the unorganised sector. There exist broadly two
types of welfare funds– contributory and tax-based. The Government of India has
set up tax-based welfare funds for mine workers, beedi rollers, cine workers, and
workers in the building industry; these funds are financed by cess levied on the
production or export of specified goods. They provide mainly medical care,
assistance for the education of children, housing and water supply, and recreational
facilities. There are nearly 20 Welfare Funds constituted by Government of Kerala
for the benefit of different target groups such as agricultural workers, head-load
workers, construction workers, coir workers, cashew workers, motor transport
workers, autorickshaw workers, toddy workers, and artisans the majority of which
are contributory.

Existing models of social security and labour welfare

Since India has committed to the welfare of the marginalized sections of the
society the government has taken upon itself the delivery of all types of social
services and social security. This pattern is reflected in existing models of social
security delivery as may be seen from Table 2.1. There are mainly three types of
social security models: employers’ liability, social insurance, and social assistance.
The last category includes welfare funds of
Central government, welfare funds of State government, subsidised insurance
schemes, and other forms of social assistance. The beneficiaries of the first
(employers’ liability) are mainly workers in the organised sector, whereas under
social assistance the beneficiaries are both workers in the organised sector and
workers in the informal sector. The latter belong in generally to the marginalised
sectors. In the context of growing privatizations of services on the one hand and
the growing awareness and organisation of the oppressed sections of workers on
the other, it is necessary to search for models of effective social security provision
to all the unorganisedsector workers. Breadwinner and maternity through the
National Old Age Pension Scheme, National Family Benefit Scheme, and the
National Maternity Benefit Scheme respectively. Under the National Old Age
Pension Scheme, Central assistance is provided to States for payment of old age
pension to persons who are of the age of 65 years or more. In addition to the
National OldAge Pension Scheme, all State governments and Union territories
have their own old-age pension schemes.

Table 2.1 Existing Models of Social Security

Model Nature of Beneficiaries Administrative/

Benefit
Arrangement Financial
1.Employers’ 1. Workers in the Employers
Liability Workermen’s manage
Organized
comp.
Sector
2.Maternity
Benefit
3.Gratuity
4.Retrenchment
comp.
2.Social (A) 1.Medical Workers in the Administered by
Insurance Care
Organised Employees’
2.Sickness sector State
3.Maternity Insurance
Corporation
4.Occupational
financed out of
Injury
contributions
from
employers,
employees
and State
Governments
(B)1.Old-age Workers in the Administered by
benefit organized
central Board of
sector and
2.Invalidity
some sections Trustees,
benefit
of the workers financed by
3.Survivors’ in organized contributions
benefit sectors. from
4.Provident
employers,
Fund
employees
and central
government.
3.Social (A) 1.Medical 1. Mine Administered
care workers Depart-mentally
(a)Welfare
Funds of 2.Education 2. Beedi financed by
workers
Central 3.Housing special levies in
Government 3. Cine the form of
4.Water Supply
workers cesses.
4. Building
works

(B)
1.Education
2.Old-age
Benefit
3.Survivors’
Benefit
(b) Welfare 1.Old-age Workers in the Administered by
Funds of Benefit
unorganised autonomous
state 2.Medical Care sector, boards
Government
3.Education such as financed by
handloom contributors
4.Assistance
for workers, Coir from employers,
marriage, Workers and workers and
housing etc. others
Cashew
Workers.
.
(c) 1.Survivors’ Vulnerable Administered by
Subsidized benefit groups LIC
Insurance
2. Invalidity of workers and GIC,
benefit such as financed by
agricultural contributions
 workers from
and handloom central and state
workers. Governments

(d) Other 1.Old-age Persons outside Administered

Forms of benefit the Depart-mentally
Social 2.Maternity job market and financial from
Assistance benefit
below the general
3.Surviovrs’ poverty revenues
benefit
line, destitutes,
4. Assistance
orphans,
for:
deserted,
employment
and divorced
training
women,
education etc. widows,
disabled
persons,
SCs., STs.,
OBCs,
etc.

Social security for the unorganised workers cannot be reached by centralizing and
standardizing schemes; they can be reached by workers themselves to take
initiative (Subramanya, 1994). People remain weak and vulnerable partly because
they are unorganised and hence isolated and powerless. The provision social
security can itself be a means that would lead the unorganised sector workers to
organise and become empowered. Security of needs like food, health care, housing
and child care, is empowering for vulnerable unorganised sector workers and helps
them to alter their bar-gaining positions in the market (Sen and Dreze,
1990).Centralised non-participatory systems tend to be disempowering, while
participatory and beneficiary-run systems lead the workers to organise themselves.
LEGISLATIVE PROTECTION
The Government has taken various initiatives through enactment of
legislations, creation of welfare funds, spreading workers education and
through supporting non-governmental organisations to bring this deprived
class into the mainstream of our work force. Some of the important
legislations which help unorganised workers are as under:-
➢ Minimum Wages Act, 1948.
➢ Workmen’s Compensation Act, 1923.
➢ Maternity Benefit Act, 1961
➢ The Employees State Insurance Act, 1948.
Bonded Labour System (Abolition) Act, 1976.

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