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1 THEORETICAL BACKGROUND OF THE TOPIC

Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees and by the employers. Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families. Initially, humanitarianism or social awareness motivated labour welfare activities. Driven by the desire for greater efficiency and output and with a view to attract better workers, employers offer extra incentives in the form of labour welfare schemes. The objectives that lie behind labour welfare schemes are often complex for human nature and varies from person to person. Labour welfare measures are undertaken with a view to avoid payment of tax on surplus and building up better relations with employees. Social justice and human dignity are the prime concerns of International Labour Organization which was set up on April 19, 1919 to look at ways and means to improve labour conditions. This objective is enshrined in the ILO constitution. It reaffirms that the war against want requires to be carried out with vigor within each nation and by continuous and concerted international effort in which the representatives of the workers and employees enjoying equal status with those of governments join with them in free discussion and democratic decisions with a view to the promotion of the common welfare. Objectives of Welfare

 To promote economic development by increasing production and productivity. Improving the efficiency of labour To secure the labour with proper human conditions of work and living The concern for improving the lot of the workers, a philosophy of humanitarianism or what is now termed as internal social responsibility, a feeling of concerns, of caring providing some of lifes basic amenities, besides the basic pay packet, such as overture of caring is supposed to build sense of loyalty on the part of the employee towards the organization The humanitarianism approach has given way to a more practical utilitarian approach. The utilitarian approach views investment in welfare through an economic framework where the possible cost benefit to the organization gains greater concern through improved or quicker services from the employees. The welfare package by taking care of the basis of living, frees the worker to devote his time and attention to the organizations task and thus enhance efficiency and output. An attractive package, which provides benefits throughout the course of an employees career, serves to attract and retain the better workers and simultaneously enhance their moral. The organization is also eligible to certain tax concession by spending on welfare. Why Welfare? In India, welfare is of statutory and non-statutory nature. Though statutory welfare ensures a bare minimum of facilities and reasonably good working condition, employers are free to provide, non statutory welfare. However, practically all organizations in India provide non-statutory measures in varying degree.

From the view point of workers, welfare measures must eliminate risk and insecurity. This is to ensure their personnel safety and provide them with the equipment and atmosphere needed to draw a fair days wage without any feeling of guilt. Given the workers economic constraints, probably due to large families, organizations should provide facilities such as transport, medical aid, crches, and subsidized food required by the worker. The role of unions in welfare has also been influenced by the socio-political and legal environment and the economy. Their role in labour welfare stems from the workers need for welfare services apart from those available to them as citizens and members of the community. Therefore unions feel that such services ought to be providing either by the Government or employers. However much depends on the initiative of the unions, their bargaining strength and the priority given by them to the rights of the workers. In organizations where unions have been assertive, welfare activities have been considerable, while in organized sector workers have been able to derive sufficient benefits from their employers. Employers provide amenities to discharge their social responsibility raise the employees moral is the work force more effectively and reduce turnover and absenteeism. Though paternalism may be out-dated, many managers feel, while others are convinced that welfare benefits not only raise employee morale but make it easiest for employees to attract and hire competent personnel. Welfare helps build a positive image of the organization and facilities dealings with the union. Classification of Labour Welfare Statutory Welfare Measures Non Statutory Welfare Measures

Statutory welfare amenities It includes all activities undertaken under the provisions of law, passed by central and state government for general welfare of workers, which are compulsory provisions relating to the living condition, minimum wages, sanitary conditions, hours of work lighting etc. The employees are legally bound to adapt welfare measures under different employee legislation.