Labor welfare & Social Security

What is Labor Welfare?

ILO defined labor welfare as “such services, facilities and
amenities as adequate canteens, rest and recreation facilities,
arrangements for travel to and from work, and for the
accommodation of workers employed at a distance from their
houses and such other services amenities and facilities that
improve the conditions under which the workers are employed.”
Question : Is training a welfare measure?
Objectives of Labor welfare:
There could be multiple objectives in having a labor welfare
program:-
1. A concern for improving the lot of workers.
2. A philosophy of humanitarianism or what is now termed as
internal social responsibility.
3. A feeling of concern, of caring by providing some of life’s basic
amenities, besides the basic pay packet.
Categories of Labor Welfare – Welfare benefits may be considered under two
basic categories: Intra-mural & extra-mural.
Intra-mural Extra-mural
Drinking water Social insurance(gratuity, pension, PF)
Toilets Benevolent fund
Crèche Maternity benefits
Washing facility Health & medical facilities
Occupational safety Educational facilities
Uniform & protective Housing facilities
clothing Recreational facilities
Shift allowance Leave travel facilities
Canteen Workers’ cooperatives
Vocational training
Transport to & from place of work
 These facilities and benefits can be further classified into those
provided by legislation and those provided voluntarily by
management or as a result of bipartite settlements between the
management and the trade unions.
 Classification of Labor Welfare:
Statutory – as shown below
Voluntary- provided voluntarily by management
Mutual - result of bipartite settlements
 Statutory (Those to be provided compulsorily by law) –
1. Those which have to be provided irrespective of size of
establishment e.g. Drinking water.
2. Those to be provided subject to employment of a specific number
of persons e.g. Crèche.
3. Certain amenities, where there are no minimum standards laid
down as in spheres of – housing, medical treatment, recreation,
transport, and educational facilities. These are left to the discretion of
the employer.
 Labor welfare :
Health and Medical Facilities - A healthy workforce is of
utmost importance to industry. The ILO in its
recommendations has laid down standards, which have had a
contributory effect on legislation in India.
 ILO Convention 25 - concerns sickness insurance and
medical facilities to be provided to an insured person.
 Convention 103 - deals with maternity protection.
 Recommendation No 69 - lays down certain norms of medical
care, including need for preventive care.
 Recommendation No 97 – concerns workers involved in jobs
with special risks.
 Recommendation No 112 – concerns occupational health
services.
The Royal Commission of Labor and the Labor Investigation
Committee, during pre-independence era stressed the
importance of health facilities & social insurance schemes.
 The Factories Act 1948
 The broad area o coverage under this Act are health, hygiene
and sanitation, welfare, safety, working hours, annual leave
with wages and employment of women and children.
 Before starting a factory and periodically thereafter, the chief
inspector of factories and his staff have to approve safety
measures in the plant including proper ventilation of noxious
fumes and protective equipment for eye where necessary.
 The Act lays down detailed measures to be adopted to
safeguard the health of workers such as – cleanliness, waste
disposal, pollution control measures, lighting, drinking water
facilities, latrines, spittoons, etc.
 The Act also lays down general welfare measures such as –
washing and drying facilities, rest shelters, first-aid
appliances, canteens, lunch rooms, crèches etc
 Certain amenities are to be provided depending upon the size
of the establishment e.g. canteen are to be provided if there
are 250 or more workers, crèche if 50 or more women
workers are there, lunch rooms, rest shelters where 150 or
more workers are employed. Where there are 500 or more
workers employed, a welfare officer has to be appointed.
 Canteens – Apart from the requirement of providing canteen
facilities where 250 or more workers are employed, Factories
Act lays down that –
1. Canteen should be well stocked.
2. It should be run on a co-operative basis and employers
can also help with subsidies.
3. State government should make rules to meet the objective
of nutrition of food served in the canteen.
4. Canteen should provide at least one balanced meal to
workers and allow them credit purchase from canteen.
 Crèche –As per Factories Act a crèche is to be provided if
the number of women workers are 50 or more in a
company. Other requirements are :-
1. The crèche should be maintained in clean and sanitary
conditions .
2. It should be under the care of women trained in child care
and should have adequate accommodation, lighting and
ventilation.
3. The state government is empowered to make rules in
respect of standards, equipments and facilities.
4. In case of small units, where women workers are less than
50, the state governments may provide crèche and recover
part of the cost from the employer.
 Employee Labor Welfare Amenities – Extra Murals

Housing – In 1948 the Government of India put forth an

Industrial Housing scheme –
1. The Central Government subsidized the state government to
the extent of 12 ½ % or a maximum of Rs 200 per house. This
was later extended to weaker sections of the community also
under section 2(1) of the Factories Act.
2. The scheme was applicable to workers whose monthly wages
did not exceed Rs 300/- per month and continued till their
wages increased to Rs 500/- per month.
3. The scheme provided that in addition to pucca houses, the
state could also provide development plots, skeleton houses,
hostels, dormitories, and buildings at subsidized rates to
eligible industrial workers.
4. Each state should have an autonomous State Housing Board,
which should earmark 20% of its finances for industrial
housing.
Recreational Facilities
Though there is no statutory provision in this sphere, a good
example has been set by many progressive employers both in the
public sector as well as private sector like Tatas, HUL, TELCO,
Hindustan steel, Air India, BHEL, LIC, the Railways and the
Defense services. The facilities could be –
1. Sports facilities.
2. Clubs
3. Excursions / Adventure sports
4. Any other activity to keep the workforce fit and healthy
Transport Services
The growth of industries outside of cities has made commuting a
problem for workers. In India since public transport system is not
fully developed and hardly efficient, the fatigue of travel to and
from place of work has a detrimental effect to the productivity of
workers. Transport Service for workers is an essential welfare
measure.
 Allied Welfare Measures
 Cooperatives and Saving Facilities – Cooperative consumer
stores are important to industrial workers because they enable
the workers to safeguard to some extent, the real purchasing
power of their money and prevent the erosion of their wages.
The cooperative and credit movement also help the worker to
save for unforeseen domestic crisis.
Indian Labor Conference in 1962 adopted a scheme for setting
up consumer cooperative stores in all industrial establishments
including plantations and mines employing 300 or more workers.
The employer was to give assistance in the form of share
capital, working capital, loan, free accommodation and other
amenities
 Distress Relief and Cash Benefits – There are many non
statutory welfare amenities available to industrial workers. One
is an ex-gratia payment called Distress Relief and Cash Benefit
paid in case of death, injury, sickness, marriage etc. It is a gift
made by employer to his worker.
 Educational Facilities - Education whether for citizen or the
industrial worker, is of equal importance, since the latter even
if he works in a factory has to cope with change which is
most often technical. A literate worker is naturally more
receptive to change.
Educating the workers’ family especially his children, is
essential, since it will be an investment in training the
workforce of future
Surveys on labour education indicate that no tangible effort
have been made to eradicate illiteracy among workers.
Though the government, employers and workers are aware
of the importance of imparting adult education among
workers, there has been no sustained effort towards this end.
Some industrial organizations have opened schools for
children of workers; the government also opened some
central schools(Kendra Vidyalays) in some industrial sectors
but these are far from adequate at present.
 Social Security Legislations:
1. Workmen Compensation Act 1923

2. Maternity Benefit Act 1941 – 61

3. Industrial Disputes Act 1947 – Compensation in case of Lay off or Retrenchment

4. Employee State Insurance Act 1948

5. The Social Security (Minimum Standards) Convention 1952.

6. Employee Provident Fund & Miscellaneous Provisions Act 1952

7. Payment of Gratuity Act 1972

8. Factories Act -1948 – Hygiene and sanitation measures, canteen facilities,

washing and drying facilities, toilet and bathroom facilities etc.