LABOUR WELFARE

Welfare includes anything that is done for the comfort and improvement of employees
and is provided over and above the wages. Welfare helps in keeping the morale and
motivation of the employees high so as to retain the employees for longer duration.
Labour welfare is a flexible and elastic concept. Its meaning and implications differ
widely with times, regions, industries, countries, social values and customs, the general
economic development of the people and the political ideologies prevailing at particular
moments.
In the words of Prof. H.S. Kirkaldy, “The whole field of welfare is one in which much can
be done to combat the sense of frustration of the industrial workers, to relieve them of
the personal and family worries, to improve their health, to offer them some sphere in
which they can excel others and to help them to a wider conception of life.”
In the second Asian Regional Conference of ILO, it was stated that workers’ welfare may
be understood to mean “such services, facilities and amenities which may be established
in or in the vicinity of undertakings to enable the persons employed in them to perform
their work in healthy and peaceful surroundings and to avail of facilities which improve
their health and high morale.”
In the conclude form 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. Labour welfare entails all those activities of employer, which are directed
towards providing the employees with certain facilities and services in addition to wages
or salaries.

HISTORY OF LABOUR WELFARE:

During the early period of industrial development, efforts towards workers’ welfare was
made largely by social workers, philanthropists and other religious leaders, mostly on
humanitarian grounds. Before the introduction of welfare and other legislation in India,
the conditions of labour were miserable. Exploitation of child labour, long hours of work,
bad sanitation, absence of safety measures etc., were the regular features of the factory
life.
 Pre- Independence Era: The movement to improve the working conditions of
Indian labour started with the passing of the first Indian Factories Act in 1881. The
 deplorable conditions in which labour worked in the textile mills in Bombay during
those days, as testified by the factory commission of 1875 was the immediate
cause for the passing of the Act. Adult labour, however, was not protected in any
manner. It was found inadequate in many respects. Anyhow, it recognized the
right of the government to safeguard the interests of the workers by means of a
suitable legislation. Therefore, the Mulock Commission was appointed by the
Government of Bombay in 1884 to review the working of the Factories Act of
1881.

 Post-Independence Period: After independence, the labour welfare movement

acquired new dimensions. It was realized that labour welfare had a positive role
to play in the increasing productivity and reducing industrial tensions. The
emergence of different central trade union organizations. Various Labour Welfare
Activities were incorporated in different five year plans.

 Present situation: In spite of all these efforts, the welfare work in India is still
considerably below the standard setup in other countries. However, it has come
to stay as an accepted feature of employment conditions and is bound to make
rapid progress in the years to come, especially when the Indian Republic is
wedded to the ideal of a welfare state with socialistic objectives.

Concept:
The concept of labour welfare originated in the desire for a humanitarian approach to
ameliorate the sufferings of the workers and their families on account of the baneful
effects of large-scale industrialisation like undesirable social consequences and the
labour problems which have evolved in the process of transition from tradition to
modernity. Later it became a utilitarian philosophy which worked as a motivating force
for labour and for those who were interested in it. Lastly, labour welfare received
inspiration from the evolution of the social thought in regard to democracy and welfare
state. With such a varied background and changing values, labour welfare and its
contents have acquired a kaleidoscopic nature.

Need for Labour Welfare:

 Necessary for Industrial System.
 Rural and agriculture turns to urban and Industry.
  Key role in Economic Development.
 Need felt seriously by the Royal Commission of labour in 1931.
 Increases the employees belonging towards organization.
 Encourages Healthy and cordial relationships.

OBJECTIVES OF THE LABOUR WELFARE:

 To provide better life and health to the workers.
 To make the workers happy and satisfied.
 To relieve workers from industrial fatigue and to improve intellectual, cultural and
material conditions of living of the workers.
 Improvement in Quality of work life.
 Enhance sense of belonging, responsibility and dignity among the employees.
 Labour welfare provides social comfort to employees
 To provide healthy and proper working conditions.
 To ensure well-being of employees and families.

Scope of Labour Welfare:

Labour welfare is a dynamic concept which acquires new dimensions with the changes
in the environment of industry. It was as early as 1931 that „Whitley Commission
observed‟, “Labour welfare is one which must necessarily be elastic, bearing a
somewhat different interpretation in one country from another, according to the
different social customs, the degree of industrialisation and the educational
development of the workers”. The Rege Committee (1946) observed that, “We prefer to
include under welfare activities anything done for intellectual, physical, moral and
economic betterment of workers whether by employer, Government or other agencies,
over and above provided by law or under some contract and what is normally over and
above provided by law or under some contract and what is normally expected as part of
the contract for service”. The Study Team, appointed by the Government of India in 1959
to examine labour welfare activities then existing, divided the entire range of these
activities into three groups, viz.,
 Welfare within the precincts of an establishment: medical aid, crèches, canteens,
supply of drinking water, etc.,
 Welfare outside the establishment: provision for indoor and outdoor recreation,
housing, adult education, visual instructions, etc.
  Social security

PHILOSOPHY OF LABOUR WELFARE:

The philosophy of labour welfare activities are based on the success of industrial
development and the theory of harmony depends on the cooperation and relationship
between labour and management (employer). Worker has a fund of knowledge and
experience to perform his job. If his ability and skill to be properly utilized with the right
direction, the worker can be a working good contributor in the prosperity of the
organization. And it can be achieve by work satisfaction of the worker. It is part of the
facilities provided by the employer, that would associated with well-being of workers
and it would ensure their minimum security from hazardous. The concerning law
prescribes the minimum standard, but a progressive employer to expand its activities
must protect their workers and their dependents. In return, their cooperation will be
wholehearted, work to maximum efficiency and attitude will be fair and friendly towards
them.

SOCIAL SECURITY
Social Security describes a program that uses public funds to provide a degree of
economic security for the public.
Social security may also refer to the action programs of government intended to
promote the welfare of the population through assistance measures guaranteeing
access to sufficient resources for food and shelter and to promote health and well-being
for the population at large and potentially vulnerable segments such as children, the
elderly, the sick and the unemployed.

RISK COVERED UNDER SOCIAL SECURITY AND CONCERNING PROTECTIVE

LEGISLATION:
1. Disablement
 Workmen’s Compensation Act, 1923
 Employees’ State Insurance Act, 1948
 2. Death
 Workmen’s Compensation Act, 1923
 Employees’ State Insurance Act, 1948

3. Maternity
 Maternity Benefit Act, 1961
 Employees’ State Insurance Act, 1948

4. Old-age Income Security and Pension

 Coal Mines P. F. & Bonus Scheme Act, 1948
 Employees’ P. F. & Miscellaneous Act, 1952
 Assam Tea Plantations P. F. Scheme Act, 1955
 Seamen’s Provident Fund Scheme Act, 1955

5. Medical, Unemployment Benefit and Disable Pension

 Employees’ State Insurance Act, 1948

SOCIAL SECURITY MAY REFER TO:

 SOCIAL INSURANCE: Where people receive benefits or services in

recognition of contributions to an insurance program. These services typically
include provision for retirement pensions, disability insurance, survivor benefits
and unemployment insurance.

 SERVICES: Provided by government or designated agencies responsible for

social security provision. In different countries, that may include medical care,
financial support during unemployment, sickness, or retirement, health and
safety at work, aspects of social work and even industrial relations.

 BASIC SECURITY: Irrespective of participation in specific insurance programs

where eligibility may otherwise be an issue. For instance, assistance given to
 newly arrived refugees for basic necessities such
as food, clothing, housing, education, money, and medical care.

INITIATIVES FOR INFORMAL SECTOR- PUBLIC:

1. National/ State Social Assistance Programs (1995)
2. Public Distribution System
3. Varishta Pension Bima (2003)
4. Janshree Bima Yojana (2000)
5. Universal Health Insurance Scheme (UHIS), 2004
6. National Rural Employment Guarantee Scheme, 2005

IMPORTANT PRIVATE INITIATIVES:

1. SEWA
 Women working in informal sector employment-Healthcare and insurance
benefits

2. NIDAN- life insurance

3. YESHASVINI- medical benefits
4. SPARC- medical and disability benefits for slum
5. ACCORD- life, health and property insurance
6. SIFFS –health and life insurance

TYPES OF WELFARE SERVICES:

The Committee of Experts on Welfare Facilities for Industrial Workers set up by the ILO
in 1963 divided welfare services into two groups –
(a) Within the precincts of the establishment and
(b) Outside the establishment
  Intramural: Welfare amenities within the precincts of the establishment
(intramural) such as latrines and urinals; washing and bathing facilities; crèches,
rest shelters and canteens, arrangements for drinking water, arrangements for
prevention of fatigue, health services including occupation safety, administrative
arrangements to look artery uniform and protective clothing and shift allowances.

 Extramural: Welfare amenities outside the establishment such as maternity

benefits, social insurance measures including gratuity, pension, provident fund
and rehabilitation, benevolent funds; medical facilities including programmes for
physical fitness and efficiency; family planning and child welfare; education
facilities including adult education; housing facilities; recreational facilities
including sports, cultural activities, library and reading room, holiday homes and
leave travel facilities; workers‟ cooperative stores, fair price shops and
cooperative thrift and credit societies; vocational training for dependants of
workers; welfare programmes for welfare of women, youth and children; and
transport to and from the place of work.

Classification of Welfare
1. Statutory
2. Non-Statutory

1. Statutory: Those which have to be provided irrespective of size of establishment,

say, drinking water. Also, those which have to be provided subject to the
employment of a specified number of people, e.g. Crèche are also part of statutory
welfare amenities.

Statutory Welfare Amenities

 Washing Facility
 Facilities for Storing and Drying Clothing
 Facilities for Sitting
 First-Aid Appliances
 Canteens
 Shelters, Rest Rooms and Lunch Rooms
 Creches
  Welfare Officers

2. Non-Statutory: In the case of certain amenities, there are no minimum standard laid
down as in the sphere of housing, medical treatment, recreation, transport and
educational facilities. This is left to the discretion of the employer
Non-Statutory Amenities
 Economic Services
 Recreational Services
 Facilitative Services
 Housing Facilities
 Medical Facilities
 Educational Facilities
 Leave Travel Concession

Labour Welfare Agencies in India

In India, the main agencies engaged in labour welfare include:
(a) Central Government;
(b) State Governments;
(c) Employers;
(d) Workers‟ organisations; and
(e) Voluntary organisations.
The contributions of these agencies are discussed below:

 CENTRAL GOVERNMENT: The Central Government has passed a number of

Acts for the welfare of different types of workers. It also administers the
implementation of industrial and labour laws. The important Acts which
incorporate measures for the welfare of the workers are: Factories Act, Indian
Mines Act, Employment of Children Act, Maternity Benefits Act, Plantation Labour
Act, etc. Under these Acts, employers have to provide certain basic welfare
facilities to the workers.

 STATE GOVERNMENT: The implementation of many provisions of various

labour laws rests with the State Governments. The State Governments run health
centres, educational centres, etc. for the welfare of the workers. They also keep a
vigil on the employers that they are operating the welfare schemes made
 obligatory by the Central or State Government. The State Governments have been
empowered to prescribe rules for the welfare of workers and appoint appropriate
authorities for the enforcement of welfare provisions under various labour laws.

 EMPLOYERS: Many employers provide voluntarily welfare facilities along with

the statutory welfare facilities. These include residential lease accommodation to
employees, medical and transport facilities, reading rooms, scholarships to
children of workers, patronize teams of employees for hockey, football, etc.
Employers can provide welfare facilities individually or collectively i.e., through
their associations. Employers have to play a major role in providing welfare
facilities to industrial workers.

 TRADE UNIONS: Trade Unions are supposed to raise the welfare of workers and
naturally they are expected to provide certain welfare facilities to their members.
Unions can provide educational cultural another facilities to their members. Some
trade unions like the Rashtriya Mill Mazdoor Sangh are doing good work in the
field of labour welfare. In addition, Textile Labour Association, Ahmedabad
provides certain facilities like schools, social centres, libraries, legal aid, etc. to the
textile workers.

 VOLUNTARY ORGANISATION: Some social-welfare and charitable

organisations conduct social welfare activities which are useful to all sections of
the society including industrial workers. These agencies provide medical aid,
educational facilities, scholarships, etc. However, the contribution of such
organisations in labour welfare is not so significant