Feature Welfare at the Time of Recession Should hospitals cut down on employee welfare initiatives in these tough times

or in fact do just the reverse? Sonal Shukla tries to understand the dilemma that HR managers face today As the recession has cloaked the world economy at large, bed closures, layoffs, decline in elective procedures and patient volume have affected the healthcare industry. Experts agree that this is one of the tougher times when human resources professionals get sleepless nights as the companies get tougher on its employees. Recession thus changes the world of work culture where cost-cutting plays a predominant part. The first affected are the salaries, perks and employee welfare initiatives. All the luxuries enjoyed by the employees are either reduced or may come to a standstill. Understandbly, this does not go down with any employee, in spite of them understanding the recession or shift in economics of the organisation. However, an interesting approach is that a careful approach and planning on welfare initiatives in the slump period can actually earn great laurels for the organisation. "It is extremely important to practice employee welfare initiatives at every level. Issues like employee engagement, grievance redressal, counseling, and learning and development on a continuous basis are crucial to hospitals today," shares Sharabani Basu, Management Consultant, Sharabani Basu Associates, Bangaluru. Magnitude of Employee Welfare Apart from a good team, good work environment and a great boss, what motivate the employees 'secretly' is the welfare schemes an organisation offers. "Employee welfare initiatives, in its wider sense therefore, are a key driver for motivating and engaging employees," quips Pankaj Mittal, Vice President - Human Resources and Chief People Officer, Fortis Healthcare Limited. Apparently, recession seems like a big dent on 'expenses' perceived in the above welfare activities. However, according to experts, it is not so. "It is important for administrators to realise that employees make organisations. Hard-working and content employees make a loyal and efficient work force. This would translate into satisfied customers and goodwill for the healthcare institution. Time and money spent on employee welfare is an important and fruitful investment that any organisation should seriously consider," shares Dr Sanjeev Singh, Senior Hospital Administrator, AIMS, Kochi. Welfare Not To Be Ignored

It is important to think before deciding on obligatory cost cutting, whether it helps the company and its reputation in the long run. Will the organisation be able to attract talent when troubled times are over? During tough times, employee welfare measures should at least be maintained, if not increased to give a sense of confidence to the employees. The reason is logical-when the employee is already under financial hardship because of the adverse effects of the recession, if the hospital resorts to cost cutting measures directed at employees' welfare, it would demotivate him further. "The organisation has to look beyond short-term profits and ensure continuation of employee welfare to build real loyalty," shares Col Manesh Masand, CEO, Jaslok Hospital, Mumbai. Experts feel that when cost cutting is obligatory, it is always best to get the consensus of the employees. Employees must be made to understand that the decisions taken are temporary and to participate in good spirits. At such times, organisations must listen to employees and involve them in the process. "Employees also must be made to understand that recession is a learning time and that it helps to redesign work and work culture positively," believes C Shobhana, General Manager-HR, BGS Global Hospitals, Bangaluru. Recession is also a time when employees assess the security levels offered by the organisation. Business may demand adopting cost effective measure to operate but pink slips are not the right answers. An approach of caring, looking after, mentoring and coaching from the organisation to the employee works best in adverse times. Impacting Productivity More than the recession it is the fear that bothers the employees. If a hospital decides to cut down the employee welfare activities, it might send a wrong signal to the employees that it has started facing issues related to recession. According to Ankush Gupta, Senior Manager, HR, PD Hinduja Hospital, Mumbai, this might lead to employees becoming distressful and full of worries which in turn would divert their concentration from service to finding mechanism for self defense, in case, if they face crisis. This may lead to dip in the quality of service delivery. "It is better for the organisations to be prudent in better times, so that problems are not faced during difficult times like this," shares Shobhana. Case Studies

P D Hinduja Hospital, Mumbai Hinduja Hospital has an Employee Welfare Committee which is managed by the employees. Welfare committee conducts

carrier counseling sessions for the wards of the employees. Once in year, the committee also organises singing and drawing competition for the employees and their wards. In case of small requirement, the committee also provides soft loans to the employees. Felicitation of meritorious children from Grade 1 to Grade 12, graduation and professional education are also done by the committee once in a year. BGS Global Hospital, Bangaluru The hospital has initiated few programmes for different aspects of employee welfare. Employee Skill Up gradation Programmes (ESUP) such as trainings on various skills required for the job, upgrading qualifications are given. Employees are assisted in such programmes. This is done in view of empowering every employee. Global Employee Support system in place takes care of any grievance and employee counseling. This is done in view of showing that every employee is an asset to the organisation. We have an open door policy where employees are encouraged to voice their concerns and suggestions,shares C Shobhana, General Manager-HR, BGS Global Hospitals, Bangaluru. Jaslok Hospital, Mumbai Jaslok Hospital's welfare programme addresses ill health, counseling for work related stress relief, staff wellness and education assistance by way of personal loan. The hospital provides statutory welfare like Provident Fund, gratuity and also leave travel assistance, housing loan, festival advance and sponsor sports events like Times Shield and Girnar Cup Cricket Tournaments. Fortis Healthcare The hospital provides employee discounts on OPD and diagnostics that are common across hierarchy levels. Laying a special emphasis on

culture, an employee engagement model that the hospital has been practicing every week in every unit is the weekly 'Hum Tum MiLenge. It gives a platform to the employees to interact and know their co-workers better. This onehour event has rewards and recognition, presentations by rotation of every department, and then team games generating lots of positive energy. AIMS , Kochi The institution provides support for two national conferences and one international conference, subject to oral presentation. This motivates the faculty and department to undertake original studies. Sabbatical for a period of one to two years are given to faculty especially if the programme is likely to benefit the institution. By this mechanism they are able to visit other premiere facilities around the globe, imbibe and learn best practices, take part in international publications etc. The hospital university helps to organise fellowships with other foreign universities where it has institutional collaboration. Festival bonuses, transportation during strikes or out of duty working hours are given. All departments are encouraged to have annual get together/ picnic, which the hospital facilitates by providing logistics and other arrangements.

Ideal Approach "It is extremely important to practice employee welfare initiatives at every level" - Sharabani Basu Management Consultant

Sharabani Basu Associates It is an illusion to wait for recession to 'get over' and Bangaluru then 'start' caring about the welfare of the employees. Probably, this is the right and most appropriate time "Employee where the employee welfare initiatives should be welfare plugged in to retain, develop and chart out growth initiatives are a tracks for prospective employees. This is also a time key driver for when there is a complete dearth of monetary motivating and motivational tools and hence employee initiatives are the engaging employees" only and the best solution. Moreover, it is very widely accepted that a satisfied, secure and happy employee during times of a recession, gives back much more to - Pankaj Mittal the organisation in terms of loyalty and performance. Vice President - Human Resources Employee welfare measures should continue in the Chief People Officer organisations and the magnitude can be decided based Fortis Healthcare Limited on the organisational assessment. "Organisations must continue to keep the goodwill and should not let the economic climate affect the employees badly," agrees Shobhana. In view of the recession, additional financial measures for welfare may not be possible, but certain non-financial measures can definitely be worked out. Like training, recognition of star of the month, small scale celebration of success and good counseling for managing the employees' personal finances and removing the stress. "Take time to show appreciation and recognition to employees. For many staff members, appreciation and recognition are more important and meaningful than a financial pay raise or a position promotion. Have a training session, and discuss handling stress, improving office relationships, creating a positive attitude and problem solving," states Col Masand. All these will have longer lasting effects on better employer employee relationship. In Fortis Hospital, Mohali regular meetings are held to decide on 'Best Doctor of the month', 'Best Nurse of Month and Best employee of Month'. These results are announced in front of the whole hospital and the awards are given away, together with a cash gift. The reasons for declaring them best employee are also stated for all to hear. It boosts morale and gives a feeling that the employees are appreciated if they do well. According to Dr Ashish Banerji, Director, Fortis Hospital, Mohali such initiatives are not only important in tough times like these, but they are actually important at all times. "The employees who are rewarded feel proud, everyone gets to know them, they enjoy their moment of glory and feel the hospital cares about them. The money spent on this is catered for in our budgets, and we feel it is money well spent," shares Dr Banerji. There are also alternate measures to benefits. For example, the number of external trainings can be reduced and encourage in-house trainings. Benefit of this being that the hospital would strengthen the inhouse training team as well as reduce cost during pressing times. Secondly, elaborate parties can be

reduced and have a small celebrations. Travels can be reduced and use more of technology to hold meetings and talk to counterparts across the globe. All the benefits can be reduced by half rather than taking drastic cutting measures. Pink slips should be given only if absolutely required. "I would recommend to continue with basic benefits which should have long-term impact on employees like superannuation which is a retirement benefit. One may look at the other options like no hike in the employee welfare budget in comparison to last year or to accommodate the budget cut, one may consider to drop some features from policies which are driving the cost. However, the most important part will be to convince the employees so that they can partner in such initiatives," shares Dr TS Kuckrejja, Executive Vice President, AMRI Hospital, Kolkata. According to Basu, realistically all the above initiatives are virtually cost free, where all that is needed is diligent and expert initiatives within the organisation and perseverance and commitment of high degree. "This does require a huge amount of dedicated and focused share of time, energy and logistic planning by the expert team designated by the organisation. The results though are long-lasting and commercially measurable," shares Basu. Experts also emphasise on the HR professionals making right judgment at the recruitment levels because candidates with skills are definitely an asset to the organisation. So how can an organisation lose skilled workforce during temporary economic slowdowns? Communication is the Key Developing and maintaining the right communication process is essential in these trying times. Any slight negligence or lack of communication might result in a situation that might lead to total deterioration of the work culture and employee morale. Every organisation therefore has to avoid it. In such trying times an organisation should avoid layoffs and cutbacks. Nothing will reduce employee morale more than wondering whether they will have a job tomorrow. If you must cutback as a last resort to survive, communicate the reasons why and the depth of the layoffs upfront. Clarify what steps you are taking to safeguard the employment of the remaining employees and when the bad time is over, they might be called back to rejoin.

EMPLOYEES WELFARE AND SOCIAL SECURITY SCHEME

10.1. WELFARE

Welfare of Coal miners has the same importance as production, productivity and safety. The Coal companies are paying greater attention to the welfare of their workers. Every effort is being made to improve the living conditions of the coal

miners. The thrust is on improving the basic necessities such as housing, water supply and medical care. Emphasis has also been laid on improving the general environmental and ecological conditions in the coalfields areas. In order to create a sense of belonging and involvement at work, top priority is given by the management to provide housing, medical and educational facilities . The results of the welfare measures taken in different areas are as under:

(i) HOUSING

At the time of nationalisation, in Coal India Ltd. and its subsidiaries there were only 1,18,366 houses including sub-standard houses. The availability of these houses has increased to 4,01,795. The housing satisfaction has now reached 70.42%. The coal companies are making all out efforts to further improve these facilities. Employees will be encouraged to form cooperative societies for building their own homes at a place where they would like to finally settle down. The details of houses constructed during 1999-2000 (Upto 1.12.1999) are given in Annexure- XX.

In SCCL as on 30.11.99, 45,483 Nos (including CISF ) quarters have been provided for employees of SCCL and 514 quarters are under construction.

ii.

WATER SUPPLY

In Coal India Ltd. & its subsidiaries as against 2.27 lakhs population having access to potable water at the time of Nationalisation in 1973, presently 23.52 lakhs population has been covered under water supply scheme. This was as a result of the concerted efforts made by the Coal companies. Details of population covered by water supply ( Upto 01.12.1999) are given in Annexure-XXI.

In SCCL, the population covered under water supply is 8,24,800 and all the residential quarters have been provided with water supply as on 30.11.1999.

(iii) MEDICAL FACILITIES

The Coal India Ltd. and its subsidiaries are extending medical facilities to its employees and their families through various medical establishments starting from the Dispensary level to the Central and Apex Hospitals in different parts of the coalfields. There are 86 hospitals with 5,916 beds, 435 dispensaries, 672 ambulances, 1,853 doctors including specialists in CIL and its subsidiaries to provide medical services to the employees. Besides, 26 Ayurvedic dispensaries are also being run in the subsidiaries of Coal India Ltd. to provide indigenous system of treatment to workers. SCCL is running 7 hospitals with a combined strength of 1140 beds, 43 allopathic and 2 Ayurvedic dispensaries situated at different localities. The Health Education progammes and Immunisation drives are also organised in the areas. To promote family planning SCCL has also conducted 1487 operations in its hospitals and dispensaries during April 1999 to Nov., 99. The company is also running a Nursing School recognised by the Andhra Govt.

(iv) EDUCATIONAL FACILITIES The primary responsibility of providing educational facilities lies with the State Governments. However, CIL on its part has been providing financial assistance to certain schools like DAV Public Schools, Kendriya Vidyalaya, Delhi Public School and other educational institutions run by the State Government. In addition, as part of its Community Development Programme, CIL and its Subsidiary Companies are also providing financial assistance by way of grant-in-aid to certain privately managed schools functioning in and around coalfield areas. At present, 1,254 educational institutions are functioning within the operational areas of CIL's subsidiary companies against 287 at the time of nationalisation. Companywise position of educational facilities available in the coalfields are given in the Annexure-XXII.

Welfare of Women The women employees numberings 35273 as on 1.04.99 constitute about 6% of the total employees strength. These women employees are broadly engaged in jobs like security, nursing and para medical staff, wagon loading, shale picking, office attendant, secretarial assistance, etc. Instructions have also been issued for gainful employment for female employees in different jobs like:

Armature winder, Switch Board attendant. i. ii. Shovel, Pump, Fan, Valve operator. Workshop, Cap lamp, EP fitter, Cable Vulcanising helper.

Subsidiary wise position of women employees as on 01.04.1999 is given in the Table A below. It is the endeavour of management that through training/ retraining the women employees are equipped for more gainful employment in the coal companies.

SCCL is running 16 high schools and 1 upper primary school to cater to the educational needs of workers children. Special classes for mentally retarded children are being run in the school at Godavari Khunj. A Womens Junior College is also run by the company.

Table A Company ECL BCCL CCL WCL As on 01.04.1998 9,781 11,163 6,892 3,626 As on 01.04.1999 9,603 10,682 6,282 3,647

SECL MCL NCL NEC CMPDIL DCC CIL Hqrs. Total

3,030 791 389 308 140 21 175 36,316

3,168 844 415 295 140 21 176 35,273

2. STATUTORY/NON-STATUTORY WELFARE ACTIVITIES

a. Statutory Welfare Measures In accordance with the provision of the Mines Act 1952 and Rules and Regulations framed there-under, subsidiaries of Coal India Ltd. are maintaining various statutory welfare facilities for the coal miners. On the surface of mines, canteens, creches, pit head bath and rest shelters are being maintained for the convenience of the employees. There are 466 canteens, 91 creches, 319 Co-operative Institutions and 244 number of bank branches for the need and the benefit of the employees. Under the statutory provisions the following schemes are in operation in the Coal India Ltd. & SCCL:( i ) Coal Mines Provident Fund. (ii) Coal Mines Pension Scheme. (iii) Gratuity.

(iv) Coal Mines Family Pension Scheme.

b) NON-STATUTORY WELFARE MEASURES: i) Co-operative Stores In order to supply essential commodities and consumer goods at a cheaper rate in the collieries, 11 central co-operatives and 153 primary co-operative stores are functioning in the coalfield areas of CIL. For protecting the employees from falling under the trap of money-lenders, 155 co-operative credit societies have also been established in the coal companies. There are 3 Super Bazar Complexes, 18 Sales Depots and 44 Sales Counters working in SCCL areas. The following facilities are also provided by SCCL to its workers. 1. Free supply of 200 Kg. coal per month to the workers not having LPG connection. For those owning the LPG connections, the cost of the LPG Cylinders is reimbursed in a financial year. 53,366 LPG connection holders avail of this facility now. 2. 3 Community Halls at Yellandu, Manuguru and Ramagundem areas. 3. 12 Parks and 114 Canteens are provided in the various areas.

ii) Banking Facilities The Management of coal companies are providing infrastructural facilities to the various nationalised banks for opening their branches and extension counters in the coalfields for the benefit of their workers. Workers are educated to draw their salaries through 244 nos. of banks/extension counters and they are also encouraged to develop saving habits which will ultimately reduce the menace of money-lenders in the coalfields.

10.3. ECOLOGY AND TREE PLANTATION

The Coal India is well aware of the need for improvement in ecological conditions in order to provide a better enviornment to workmen and to local inhabitants in the mining areas. They have been making concerted efforts to keep the environment free from pollution. The subsidiaries of CIL have been undertaking the work of regular development of green belts. The plantation is done on waste and reclaimed land. During the year 1999-2000, the coal companies have planted 32.41 lakhs trees

so far. In SCCL, the company has raised about 76.09 lakh seedlings in the last 31 years. It is proposed to plant 7,84,375 seedlings in 325 Ha. of land during 19992000.

10.4 Developmental Activities in North Eastern States with reference to Coal Industries

North Eastern Region comprises of 7 states having striking similarities in topography, vegetation, food and living habit, social customs, trade and other economic activities. The concept of regional development nowhere appears to be more appropriate than this region. The region is endowed with huge mineral resources including coal, lime stone, gypsum, sillimanite, fireclay, kaolin, quartzite, pyrites, oil and natural gas and even uranium. The region is also very rich in forest resources. Assam is famous for her tea gardens and Arunachal Pradesh, for rare species of orchids.

The history of coal mining in this region is more than a century old. As per GSI document, the coal reserve is around 900 million tonnes, out of which 55% belongs to Meghalaya and 35% to Assam. The rest belongs to Arunachal Pradesh and Nagaland. Due to very difficult geomining conditions, the exploration of these reserves needs special care. The mining constraints are mainly inconsistent seam structure, high inclination, gassiness, weak strata, proneness to self heating, poor slope stability, high and prolonged rain fall, etc.

North Eastern Coalfields have four underground and two opencast mines at Margherita Area in Assam, producing about 6 to 8 lakh tonnes per year. Meghalaya has a huge number of cottage mining units producing about 30 to 40 lakh tonnes per year. The coal has low ash, high heat value, high volatile matter and high sulphur.

Besides mining constraints, there are marketing constraints for NEC coal. Due to lack of coal based industries in the region, the consumption is meagre within the region.

The problem has further accentuated due to availability of cheap Meghalaya coal in the vicinity. Due to presence of sulphur, the coal has no market in the steel industry. The BRK consumers of up-country region, i.e. Chandigarh, Bhatinda, Hissar, Kota etc. are only seasonal. Further, due to high freight charges, the marketing to these destinations needs special efforts and depends on market situation. Due to piling-up of huge coal stock (about one years production), the production level had to be cut down at present.

The old mines of North Eastern Coalfields need some financial assistance by way of investment for mechanising some of old underground mines under the "NorthEastern Package" of Honble Prime Minister. Or the financial loss being incurred by NEC due to poor off-take and high cost of mining from undergound mines be off-set by GOI by providing grant-in-aid till the off-take of coal is improved and an assured linkage is established.

Inspite of poor economic scenario of NEC, some developmental activities have already been taken up. In Margherita, schools and recreation centres have been provided to the employees. There is a well equipped hospital. In Ledo, a garden has been created on old disused area. Every year sports and cultural programmes are organised by NEC.

In Meghalaya, a metalled road has been constructed under CCDA assistance. A stadium, a helipad and an airstrip have also been constructed at Simsong Project. A school in this project is run by NEC. At Tura, NEC has provided technical assistance for construction of a stadium and a hanging bridge connecting a remote village.

Due to insurgency in North Eastern Region, the total project activity of NEC is stopped. State Govts are to be requested for providing security coverage to the employees and officers working there so that the mines which are under development stage are completed and unnecessary expenditure on idleness of workmen is avoided.

10.5 Action Plan for Older People in Coal Companies

In Coal India Limited and its subsidiary companies, various provisions have been made in Welfare Schemes to provide financial security, health related care, housing and shelter etc. for age old employees of these companies after retirement.

(i) Financial Security

The employees on retirement are entitled to receive gratuity, leave encashment and provident fund. In order to provide optimum utilisation of hard earned money the counseling is provided by coal companies on the following matters: i. ii. Practising thrift. To shun unhealthy practices like gambling, drinking etc. which result in draining of one's income.

(ii) Dependent Employment

This is scheme to provide employment to the dependants of employees who die or suffer physical disability during their service in the coal companies. There is also a provision to give monetary compensation to female dependants upto the age of 60 years in case of death of the employee. The present rate of compensation is as under:

Natural Death Accident Death Executive Rs. 4,500 Rs. 6,000 Non-Executive Rs. 3,000 Rs, 4,500

(iii) Health-care

The employees, during their employment, are entitled to both indoor and outdoor treatment. Discussions are on for introduction of contributory health-care scheme through Mediclaim Policy for providing health-care facilities to the employees and their spouses. Under the scheme, the existing employees will also be encouraged to contribute towards the scheme while in service so that they can get the benefits on their superannuation.

(iv) Availing the assistance of NGOs

The assistance of NGOs will be taken in introducing various kinds of services which will help improving the quality of life of the older persons.

The Central Trade Unions and the Officers' Association will be associated in formulation policy guidelines.