Thesis Overall

LABOUR WELFARE PRACTICES IN THE
PRIVATE ENTERPRISES. ‘A STUDY OF

PITHAMPUR INDUSTRIAL ESTATE OF M.P’.
A
THESIS
Submitted to
Devi Ahilya Vishwavidyalaya, Indore
for the Degree of
DOCTOR OF PHILOSOPHY
In
ECONOMICS
2014
Under the Supervision of :- Submitted by :-
Dr. Vivek S. Kushwaha Shreshth Chhabra

Director Lecturer
IBMR, I.P.S. Academy Daly College Business
Rajendra Nagar School, Residency Area
Indore (M.P) Indore (M.P)
SCHOOL OF ECONOMICS
DEVI AHILYA VISHWAVIDYALAYA
INDORE (M.P)
DECLARATION
I declare that the thesis entitled LABOUR WELFARE PRACTICES IN THE

PRIVATE ENTERPRISES. ‘A STUDY OF PITHAMPUR INDUSTRIAL
ESTATE OF M.P.’. Is my own work conducted under the supervision of
Dr.Vivek S Kushwaha at School of Economics as approved by research
degree committee. I have put in more than 200 days of attendance with the
supervisor at the centre.
I further declare that to the best of my knowledge the thesis does not contain
any part of any work which has been submitted for the award of any degree
either in this university or in any other university / deemed university without
proper citation.
Signature of Supervisor Signature of Candidate

Dr. Vivek S. Kushwaha Shreshth Chhabra
Forwarded
Head of the Department
School of Economics
Devi Ahilya Vishwavidyalaya
Indore (M.P.)
CERTIFICATE
This is to certify that the work entitled LABOUR WELFARE PRACTICES IN

THE PRIVATE ENTERPRISES. ‘A STUDY OF PITHAMPUR INDUSTRIAL
ESTATE OF M.P.’. is a piece of research work done by Mr. Shreshth
Chhabra under my guidance and supervision for the degree of Doctor of
Philosophy of Devi Ahilya Vishwavidyalaya, Indore (M.P.), India. The
candidate has put in an attendance of more than 200 days with me.
To the best of my knowledge and belief the Thesis;
(1) Embodies the work of the candidate himself;

(2) Has duly been completed;
(3) Fulfills the requirements of the Ordinance relating to the Ph.D degree of
the University; and
(4) Is upto the standard both in respect of contents and language for being
referred to the examiner.
Signature of Supervisor
Dr.Vivek S. Kushwaha
PREFACE
The present study is an attempt to analyse the labour welfare practices followed
by private sector enterprises in the Pithampur industrial estate. In order to draw
a comprehensive picture of welfare the study has taken into account five
welfare constituents – statutory welfare facilities, non – statutory welfare
benefits, social security measures, provision of weekly and annual paid leaves
and health & safety measures and their impact has been measured on job
satisfaction.
The first chapter covered the concept of labour, welfare, labour welfare,
viewpoint of researchers, national and international committees’
recommendations and inclusions on labour welfare. The chapter also includes
the rationale and objectives of the study.
The second chapter includes research methodology. This chapter covers how
the study has been carried out. It explains the research design, variables of
the study, the sampling plan, sample characteristics, tools of data collection,
area of study, tools for data analysis and ethical considerations. The chapter
also includes limitations of the study and hypotheses framed for the study.
The studies done in past were reviewed in chapter three. The topics covered
under review of literature were changing labour scenario, which explained the
changing workforce composition in India, labour welfare facilities both
mandatory and voluntary as provided by companies nationally and few
examples from other countries too, studies done with reference to a particular
sector which are in accord with the present studies, availability of social
security measures in companies and to different categories of workers, status
of health and safety, importance of a healthy and safe workplace and cost
associated with unhealthy practices, importance and availability of leaves
were studied. It also covered the impact of welfare facilities on job satisfaction
and the outcomes of job satisfaction.
Chapter four covered the study of labour welfare enactments. Various laws
and provisions of act regarding welfare, health and safety, leaves, social
security were critically analysed. It also highlighted the voluntary welfare
measures which are extended by the company on the suo - motto basis.
Labour inspection system through which the laws are enforced was also the
part of discussion in the chapter. Several researches done were used to
highlight the importance of provisions, its applicability and lacuna in the
present state of enactments.
The present state of welfare to workers forms chapter five. This chapter
attempts to comprehend the workers’ perception regarding the adequacy of
facilities. Workers responded to all five components of welfare used in the
study. The results indicate that there are certain areas where workers
perceive the facilities to be inadequate and with others they opine that has
been sufficiently taken care of by the company. Health & safety emerged as a
variable which most of the workers perceive has been ensured by the almost
all companies. The discussion explains the probable reasons for perceptual
inadequacy.
Chapter six covered the study of welfare from a sectoral perspective. It

includes the difference in perception of workers across five sectors. The
results from the analysis also indicate the differences existent in various
welfare measures. However no significant difference was indicated in health
and safety across the sectors. The chapter ends with plausible explanation of
such sectoral differences.
Seventh chapter is dedicated to the study of job satisfaction as a job attitude

and the impact of welfare facilities on it. The results indicate that welfare has a
positive impact on job satisfaction. The chapter also concluded that
organisational investment in employee's well being results in the higher
satisfaction in employees. Company would enjoy many benefits of a satisfied
workforce like longer stay, less absenteeism and more involvement.
Companies represented through manager’s approach toward welfare and

perception of benefit was covered in chapter eight. The chapter is divided into
four sections – the first tries to look into the approach or the intention of
companies (represented by manager) towards welfare, the second identifies
the perceived benefits of providing welfare measures and third & fourth are
intended to probe into the question that do managers across all sectors
surveyed have the same intention and have the same perception of benefits
from welfare activities. The results indicate that most of the managers had a
positive approach towards welfare and positively perceived benefits derived
from welfare and there is no significant difference across the sectors in
managers’ approach and perception of benefits.
Chapter ninth covers the major findings based on the objectives of the study,
suggestions related to them overall conclusion and areas of future research
are also identified. The references and appendices are included after the
chapter.
Shreshth Chhabra
Dedicated to
My Papa
&
My Guruji
EXPRESSION OF GRATITUDE
Completion of research and writing of the thesis is satisfying event and the
pleasant part is the opportunity to thank to those who inspired, contributed
and cooperated to it. I have received invaluable guidance, encouragement,
inspiration, support, help and assistance from a large number of friends,
institutions and corporate. Although it is impossible to acknowledge all
individuals who helped me to complete the task, I would put some efforts to
remember them with apologies to those whose names couldn’t be included
only because of negligence on my part.
At the outset, I offer my heartiest gratitude to my guide, Dr. Vivek S Kushwah,

Director, IBMR, IPS Academy, Indore, for showing me the path and guiding
me in each and every phase of this study. He has been a source of inspiration
and knowledge to me. I find no word to express the depth of my gratitude
towards him. Without his direction and guidance, the study would not have
taken the present shape.
The valuable guidance that I have got from Dr. Ganesh Kawadia, Professor &
Head, School of Economics is worth mentioning here, the discipline and
precision in his words inspire many. Here I would also like to thank Dr.
Kanhaiya Ahuja, Professor, School of Economics for being the source of
inspiration to me in completing my research.
I wish to express my sincere gratitude to Dr. Sachin Mittal and Dr. Vipin
Chaudhary for their guidance during my study. My gratitude to them can’t be
expressed in words.
I would also like to thank Ms Neha Sachin Sharma, Dr Megha Jain, Dr Nidhi
Vyas, Dr Vardhan Choube, Dr C. K. Goyal, Dr Smriti Yash Verma, Dr Sanjay
Upadhyay, Dr Pooja Kushwah, Mr Subhash Mathur, Mr. Utkarsh Trivedi, Col.
Mathur, Mr Sanjay Jain, Mr Gautam Kothari, Mr D N Jhamb, Mr Mitesh Vyas
and Mr Panchal. Without their committed support, this study couldn’t have
taken place at all. I am highly obliged for the support received from their side.
My heartfelt thanks are due to all the managers and workers of various
factories at Pithampur, who not only participated by means of filling the
questionnaire, but also shared their views with me regarding labour welfare
and thus inspired me to go into minute details of various issues involved. I will
always remain obliged to them.
I am indebted to Dr Sumer Singh, Director and Dr Manish Mittal, Program

Coordinator, Daly College Business School, Indore.
I would fail in my duty, if I don’t remember my family members at this juncture,

who have always supported me particularly my wife Mrs Nitu Chhabra and my
son Tanuj who has always been patient and supported me during my
research and my friends for encouraging me.
Shreshth Chhabra
Indore
CONTENTS
CHAPTERS PAGE NO.
1. INTRODUCTION 1 - 19
1.1 Labour
1.2 Welfare
1.3 Labour welfare
1.4 Scope of labour welfare
1.5 Theories of labour welfare
1.6 Benefits of providing welfare
1.7 Rationale of the study
1.8 Objectives of the study
1.9 Conclusion
2. RESEARCH METHODOLOGY 20 - 38
2.1 The Study
2.2 Sampling Plan
2.3 Sample Characteristics
2.4 Tools for data collection
2.5 Area of study
2.6 Tools for Data Analysis
2.7 Ethical consideration
2.8 Limitations of the study
2.9 Hypotheses of the study
3. REVIEW OF LITERATURE 39 - 64
3.1 Changing Labour Scenario
3.2 Labour Welfare
3.3 Labour Welfare – Sectoral
3.4 Social Security
3.5 Health and Safety
3.6 Provision of Leave
3.7 Factors affecting Job Satisfaction
3.8 Job satisfaction and its impact
3.9 Conclusion
4. STATUTORY WELFARE PROVISIONS AND 65 - 115
INSPECTION SYSTEM
4.1 Indian constitution and labour
4.2 Important terms & definitions as per acts
4.3 Introduction to the Factories act, 1948
4.4 Main provisions of Factories Act 1948 and
Madhya Pradesh/ Chhattisgarh factories rule
1962.
4.5 Contract labour (regulation and abolition) act
1970
4.6 Social security Acts
4.8 SEZ & labour laws
4.9 Non-statutory provisions
4.10 Inspection system
4.11 Need to relook - the way forward and
Conclusion
5. LABOUR WELFARE IN PRACTICE 116 - 161

5.1 Statutory Benefits
5.2 Social Security Measures
5.3 Leaves (Weekly & Annual Leaves)
5.4 Non – Statutory Benefits
5.6 Discussion
5.7 Conclusion
6. LABOUR WELFARE PRACTICES ACROSS 162 - 205

DIFFERENT SECTORS
6.1 Statutory welfare measures
6.2 Social Security
6.3 Provision of Leaves
6.4 Non - Statutory
6.6 Summary of results obtained through Anova
and subsequent Post Hoc
6.7 Discussion
6.8 Conclusion
7. WELFARE & JOB SATISFACTION OF LABOURS 206 - 219
7.1 Impact of welfare measures on job satisfaction

7.2 Discussion
7.3 Conclusion
8. WELFARE BENEFIT ANALYSIS 220 - 243

8.1 Approach towards Welfare
8.2 Perceived benefits from welfare
8.3 Difference in approach towards welfare across
sectors
8. 4 Difference in perceived benefits derived from
labour welfare across sectors
8.5 Discussion
8.6 Conclusion
9. FINDINGS, SUGGESTIONS AND CONCLUSION 244 -256

9.1 Major findings and suggestions
9.2 Overall Conclusion
9.3 Areas for future research
10. REFERENCES i - xxviii
11. APPENDICES A-J

LIST OF TABLES
Table No. Title of the table Page No.
2.1 Distribution of companies 21
2.2 Distribution of workers – sector wise 22
2.3 Distribution of workers as per Company status 23
2.4 Distribution of workers- Company – sub status 23
2.5 Gender distribution 23
2.6 Sector wise distribution of Gender 24
2.7 Distribution of workers – Skill level wise 25
2.8 Distribution of workers – Worker status 25
2.9 Sectors * worker status cross – tabulation 26
2.10 Worker status * Skill level cross - tabulation 27
2.11 Distribution of workers – Age wise 28
2.12 Distribution of workers – Education wise 28
Distribution of workers – Experience wise

2.13 (within the company) 28
Distribution of workers – Experience wise

2.14 (overall) 28
2.15 Distribution of workers – wage wise 28
2.16 Industrial climate of MP 32
5.1 Washing facility 116
5.2 Shelter/ rest rooms 119
5.3 Medical facility 122
5.4 Canteen facility 125
5.5 Labour welfare officer 127
5.6 Crèche facility 128
5.7 Statutory Welfare Consolidated 130
5.8 Social security 131

5.9 Leaves 135
5.10 Cooperative shop 137
5.11 Educational support 138
5.12 Loan facility 139
5.13 Conveyance facility 141
5.14 Recreational facility 143
5.15 Housing facility 145
5.16 Non-Statutory facilities - consolidated 148
5.17 Health and safety measures 149
6.1 Descriptive : Statutory welfare measures 162
6.2 ANOVA : Statutory welfare measures 162
Descriptive : Statutory welfare measures’

6.3 constituents 164 - 165
ANOVA: Statutory welfare measures’

6.4 constituents 166
Post Hoc analysis of statutory welfare

6.5 constituents across sectors 167 - 172
Post Hoc summary - statutory welfare

6.6 measure constituents 172 - 174
6.7 Descriptive : Social security 176
6.8 ANOVA: Social security 176
Post Hoc analysis of social security measures

6.9 across sectors 178
Post Hoc summary – Social security

6.10 measures 179
6.11 Descriptive: Provision of leaves 180
6.12 ANOVA: Provision of leaves 181
6.13 Post Hoc analysis of leaves across sectors 182 - 183
6.14 Post Hoc summary: Provision of leaves 183

6.15 Descriptive : Non – statutory welfare 184
6.16 ANOVA: Non-statutory welfare 185
6.17 Descriptive: Non statutory welfare constituents 186 - 187
6.18 ANOVA: Non statutory welfare constituents 187 - 188
Post Hoc analysis of non-statutory welfare

6.19 constituents across sectors 188 - 191
Post Hoc summary – Non-statutory welfare

6.20 benefits constituents 191 - 192
6.21 Descriptive: Health and safety 193
6.22 ANOVA: Health and safety 194
7.1 Correlation among independent variables 207
7.2 Variance inflation factors 207
Correlation between Job satisfaction &

7.3 independent variables 208
7.4 Model summary 209
7.5 ANOVA 209
7.6 Coefficients 210
8.1 Approach towards welfare 221
Perceived benefits from providing labour

8.2 welfare 224
Descriptive: Difference in approach towards

8.3 welfare across sectors 234
Difference in approach towards welfare across

8.4 sectors 234
Descriptive: Difference in perceived benefits

8.5 derived from labour welfare across sectors 235
ANOVA: Difference in perceived benefits

8.6 derived from labour welfare across sectors 236
LIST OF CHARTS
Chart No. Title of the chart Page No.
5.1.1 Facility for washing 117
5.1.2 Separate washing facility for male and female

workers 117
5.1.3 Availability of water 118
5.1.4 Place for keeping clothes 118
5.2.1 Availability of shelter 120
5.2.2 Quality of shelter 120
5.2.3 Sitting arrangement 121
5.3.1 First aid facility 122
5.3.2 Sick room 123
5.3.3 Medical officer 123
5.3.4 Worker is taken to hospital 124
5.4.1 Food/ snacks at concessional rate 125
5.4.2 Sitting arrangement in canteen 126
5.4.3 Drinking water 126
5.5.1 Labour welfare officer carries welfare

programmes 127
5.6.1 Crèche 128
5.6.2 Availability of Aya 129
5.8.1 Provident fund 132
5.8.2 Gratuity 132
5.8.3 Compensation 133
5.8.4 Insurance 133
5.8.5 Employee State Insurance 134
5.8.6 Maternity benefit 134
5.9.1 Weekly off 136
5.9.2 Annual leaves 136

5.10.1 Cooperative shop 138
5.11.1 Educational Support 139
5.12.1 Loan availability 140
5.12.2 Easy EMI 140
5.13.1 Conveyance availability 141
5.13.2 Conveyance allowance 142
5.14.1 Cultural activities 143
5.14.2 Sports 144
5.14.3 General reading 144
5.15.1 Housing facility 146
5.15.2 Maintenance of housing 146
5.15.3 House Rent Allowance 147
5.17.1 Health and safety measures 150
5.17.2 Latrines and urinals 150
5.17.3 Protective clothes 151
5.17.4 Safety equipment 151
5.17.5 Safety training 152
8.1.1 Welfare measure only as a norm 221
8.1.2 Beyond law for welfare 222
8.1.3 Continue & further welfare 222
8.2.1 No strikes/ lockouts/ slowdown 225
8.2.2 Added in earning 225
8.2.3 Positive attitude 226
8.2.4 Belongingness 226
8.2.5 Workers voluntary participation 227
8.2.6 Better quality of work-life 228
8.2.7 Cooperative attitude 228

8.2.8 Improved HR 229
8.2.9 Improved productivity 229
8.2.10 Increased job satisfaction 230
8.2.11 Decreased voluntary turnover 230
8.2.12 Decreased Absenteeism 231
8.2.13 My company, my work 231
8.2.14 Reduction in wasteful practices 232
8.2.15 Addition to profitability 232
8.2.16 Benefits over weigh cost 233

1. INTRODUCTION……….………….……1 - 19
1.1 Labour
1.2 Welfare
1.3 Labour welfare
1.9 Conclusion
CHAPTER - 1 : INTRODUCTION
INTRODUCTION
This section of chapter is devoted to understand the various concepts

associated with labour, welfare, labour welfare, activities included under the
gamut of labour welfare and benefits of providing welfare.
1.1 Labour
Man has undergone several evolutionary changes from primitive times to

present day. Their economic activity centres on production. Since time
immemorial labour has played a significant role in yielding production
irrespective of the modes (Chauhan, 1993). The term labour has different
meanings. Marx’s philosophy of labour was being “practical human activity”
(Uberoi, 2012).
As per business dictionary (2014), labour can be defined as “The aggregate of

all human physical and mental effort used in creation of goods and services.”
Labour as in economics is the general body of wage earners. It is in this

sense, for example, that one speaks of “organized labour.” It includes the
services of manual labourers, and also covers many other kinds of services
as well. It is not synonymous with toil or exertion, and it has only a remote
relation to “work done” in the physical or physiological senses. The application
of the physical energies of people to the work of production is, of course, an
element in labour, but skill and self-direction, within a larger or smaller sphere,
are also elements (Britannica encyclopedia, 2014). In classical economics,
labour is one of the three factors of production, along with capital and land.
Labour can also be used to describe work performed, including any valuable
service rendered by a human agent in the production of wealth, other than
accumulating and providing capital. Labour is performed for the sake of its
product or, in modern economic life, for the sake of a share of the aggregate
product of the community's industry (Merriam Webster, 2014).
As per NSSO 67th round the term labour include formal hired worker and
informal hired worker. A formal hired worker is one having continuity of job
and eligible for paid annual leave and also eligible for social security benefits
like provident fund or insurance provided by the employer whereas an
informal hired worker is not having continuity of job and/or not eligible for paid
1
annual leave and/or not eligible for social security benefits like provident fund
or insurance provided by the employer (NSS survey reports, 2011).
Section 2(l) of Factories Act defines Worker as a person employed, directly or

through any agency, whether for wages or not in any manufacturing process
or in cleaning any part of the machinery or premises used for a manufacturing
process in any other kind of work incidental to, or connected with the
manufacturing process, or the subject of the manufacturing process. (Mallick,
2009) The amendment by Act 94 of 1976 furthers that if a work in the factory
has been given on contract to be executed by the contractor and the
contractor in execution of the work employs workmen, such workmen would
be workers within the definition of worker under the act (Srivastava, 2000).In
Shri Chintaman Rao and another. vs. State of Madhya Pradesh the Supreme
Court gave a restricted meaning to the words "directly through an agency" in
section 2(1) and held that a worker was a person employed by the
management and that there must be a contract of service and a relationship
of master and servant between them. (Supreme Court, 1958) Besides this,
Contract labour Regulation and abolition Act, 1970, defines Workman as any
person employed in or in connection with the work of any establishment to do
any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical
work for hire or reward, whether the terms of the employment be expressed or
implied but does not include a person in managerial or administrative capacity
or out – worker (Saraf, 2010). To add, a workman shall be deemed to be
employed as “contract labour” in or in connection with the work of an
establishment when he is hired in or in connection with such work by or
through a contractor, with or without the knowledge of principal employer
(Mallick, 2009). As per Employees Provident funds and Miscellaneous
provisions Act, 1952, employee means any person who is employed for
wages in any kind of work, manual otherwise, in or in connection with the
work of (an establishment), and who gets his wages directly or indirectly from
the employer, and includes any person – employed by or through a contractor
in or in connection with the work of the establishment or engaged as an
apprentice, not being an apprentice engaged under the apprentices act, 1961
or under standing orders of the establishment (Mallick, 2009). For Payment of
2
Gratuity Act, 1972, includes the above other than apprentice (Payment of
gratuity (amendment) act, 2009, No. 47, Mallick, 2009).
1.2 Welfare
The term welfare is derived from the phrase ‘welfare’ which means “to fare
well”. (Rawat,1988). Williams (1976), describes it as “well in its still familiar
sense and fare, primarily understood as a journey or arrival but later also as a
supply of food”. The word welfare has historically been related to happiness
and prosperity. Chambers' Twentieth Century Dictionary defines welfare as
“state of faring or doing well: freedom from any calamity, enjoyment of health,
prosperity (Fine Dictionary, 2013).
In economics, welfare is mainly connected to individual’s perception and the

use of income. In this context, Aristotle said that “wealth is evidently not the
good we are seeking; for it is merely useful and for the sake of something
else”. Ricardo referred it to as “the way in which the gains from economic
growth are distributed”. Money is thus not the end goal, but an instrument for
achieving welfare. In sociological theory, “welfare means well-being” (Greve,
2008). In industrial context, encyclopedia of social sciences defined welfare
work as “voluntary efforts of an employer to establish, within the existing
industrial limits, working and sometimes living and cultural conditions of
employees beyond what is required by law, the customs of the industry and
the conditions of market”. (Kumar, 2003),
The term 'Welfare' expresses many ideas, meanings and connotations, such
as the state of well being, health, happiness, prosperity and the development
of human resources. It includes the three inter-related aspects - social,
economic and relative. The social concept of welfare implies the welfare of
man, his family and his community. The economic aspect of welfare covers
promotion of economic development by increasing production and
productivity. Welfare is also a relative concept, as it is related to time and
space. Thereby the term suggests the state of well being and implies
wholesomeness of the human being. It is a desirable state of existence
involving the mental, physical, moral and emotional factor of a person
(Srivastava, 2005).
3
Hence, welfare is a broad concept referring to a state of an individual or a

group, in a desirable relationship with the total environment, ecological,
economic and social.
1.3 Labour welfare
The concept of labour welfare varies from time to time, region to region,
industry to industry and country to country, depending upon various factors
such as educational level, social customs, degree of industrialization and the
general standard of socio-economic development.
The Oxford dictionary defines labour welfare as ‘‘Efforts to make life worth
living for workers’’ (Rao, 2010).
Another definition states labour welfare as, ‘‘Anything done for the comfort
and improvement, intellectual and social, of the employees over and above
the wages paid, which is not a necessity of the industry (Punekar, Deodhar,
and Sankaran, 2004).
The Labour Investigation Committee (1944-46) includes under labour welfare

activities "anything done for the intellectual, physical, moral and economic
betterment of the workers, whether by employers, by government or by other
agencies, over and above what is laid down by law or what is normally
expected as per of the contractual benefits for which the workers may have
bargained." (Sivarethinamohan, 2010)
According to the Committee on Labour Welfare (1969) includes under it "such

services, facilities and amenities as adequate canteens, rest and recreation
facilities, sanitary and medical facilities, arrangements for travel to and from
work and for the accommodation of workers employed at a distance from their
homes and such other services, amenities and facilities including social
security measures as contribute to improve the conditions under which
workers are employed."(Kumar, 2011).
N.M. Joshi observed that labour welfare “covers all the efforts which
employers make for the benefit of their employees over and above the
minimum standards of working conditions laid down by the Factories Act and
the provisions of the social legislations providing against accident, old age,
unemployment and sickness” (Gupta, 2007).
4
International Labour Organization defined welfare as a “term which is

understood to include such services and amenities as may be established in
or the vicinity of undertaking to perform their work in healthy, congenial
surrounding and to provide them with amenities conductive to good health
and high morale.” (Suri and Chhabra, 2009)
Hence, labour welfare implies 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. Adequate levels of
earnings, safe and humane conditions of work and access to some minimum
social security benefits are the major qualitative dimensions of employment
which enhance quality of life of workers and their productivity.
Employee welfare facilities enable workers to live a richer and more

satisfactory life. After employees have been hired, trained and remunerated
they need to be retained and maintained to serve the organization better.
Welfare facilities are designed to take care of the well being of the employees,
they do not generally result in any monetary benefits to the employees nor are
these facilities provided by employers alone, government and non-
governmental agencies and trade unions too contribute towards employee’s
benefits.
Employee welfare includes both the social and economic contents of

welfare. Social Welfare is primarily concerned with the solution of the weaker
sections of the society like prevention of poverty. It aims at social
development by such means its social legislation, social reform, social
services, social work, social action, the object of economic welfare is to
promote economic development by increasing producing an productivity
and through equitable distribution.
Thus, the whole field of welfare is said to be one "in which much can be done
to combat the sense of frustration of the industrial workers, to relieve them of
personal and family worries, to improve their health, to afford them means of
self expression, to offer them some sphere in which they can excel others and
5
to help them to a wider conception of life". (Agalgatti, 2008)
ILO’ expert committee on welfare facilities, 1963, divided the entire welfare
services into two broad categories –
Welfare and amenities within the precincts of the establishment (intra mural)
which includes latrines and urinals, washing and bathing facilities, crèches,
rest shelters and canteens, arrangements for drinking water, arrangements for
prevention of fatigue, health services including occupational safety,
administrative arrangement within a plant to look after welfare, uniforms and
protective clothing and shift allowance.
Welfare outside the establishment (extra mural) including maternity benefit,

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, recreation facilities
including sports, cultural activities, library and reading room, holiday homes
and leave travel facilities, workers' cooperatives including consumers'
cooperative stores, fair price shops and cooperative thrift and credit societies,
vocational training for dependants of workers, other programmes for the
welfare of women, youth and children and transport to and from the place of
work (National Commission on Labour, 1967).
Government of India appointed a study team in 1959 which classified welfare

activities into three categories – First, welfare work within the premises of an
establishment, second, welfare work outside the precincts of an establishment
and third, social security measures (Reddy, 2004).
On the basis of liability, welfare activities are again classified as statutory

welfare work (those which are prescribed by the law to maintain minimum
standard of working conditions), voluntary activities (undertaken due to
altruistic attitude of employer – both are detailed in chapter 4) and mutual
(involving trade unions – limited in Indian context). (Kulshrestha, 2011)
Employee welfare implies the setting up to minimum desirable standards and

the provisions of facilities like health, food, clothing, housing, medical
assistance, education, insurance, job security, recreation, etc. such facilities
6
enable the worker and his family to lead a good work life, family life and social
life. Employee welfare measures are an effort towards revolving the industrial
worker of his worries and making them happy.
However it is important to note that whether all these programs are found in
all the organization or not but, it is very important to know how the employees
perceive about the adequacy of these benefits provided by their employer and
the attitude of management towards welfare. R R Hopkins viewed “welfare is
fundamentally an attitude of mind on the part of management, influencing the
methods by which management activities are undertaken” (Rawat, 1988).
To sum up the scope of activities we can say that it includes mandatory and
voluntary activities, extra and intra – mural amenities but not as
comprehensive to include all social services. Institutional mechanisms exist
for ensuring the welfare to workers in the organized sector of the economy.
These are being strengthened or expanded to the extent possible but still
there is a need to revitalize it.
Seven theories conceptualizing welfare work are as follows -
Policy theory:
The basic argument of the theory is that a minimum standard of welfare is

necessary for workers and this cannot be ensured without compulsion,
supervision and fear of punishment, no employer will provide even the barest
minimum of welfare facilities for workers.The need of such compulsion arises
because man is selfish and self –centered, and always tries to achieve his
own ends, even at the cost of the welfare of others. The state has therefore to
step in to prevent exploitation by enacting stiff laws to pressurize industrialists
to offer a bare minimum standard of welfare like minimum wages, congenial
working conditions and reasonable hours of work and social security to their
workers.The theory suggest that for effective implementation there should be
enactments (laws), periodical supervision (inspection) and punishment (for
non – compliance).
7
Religious theory
Employer takes up welfare activities with a religious belief that ‘do good and
good will happen to you’ i.e. the benefits done to others will benefit him either
his life or in support after life. Any good work is considered an investment,
because both the benefactor and the beneficiary are benefited by the good
work done by the benefactor.
Philanthropic theory
Philanthropy is the voluntary promotion of human welfare and it is the love for
mankind that promotes welfare activities.
Trusteeship theory
This theory highlights the moral responsibility of employer towards the

employees. The owner of enterprise holds resources and profits accruing form
them in trust of the workmen, himself and society. It assumes that the
workmen are like minors and are not able to look after their own interests as
they are ignorant. Therefore owner is a trustee and should have a
paternalistic approach.
Placating theory
Labour groups are becoming organized and demanding. They are more
conscious of their rights and privileges than before. The theory advocates
timely and periodical acts of labour welfare to appease and pacify the
workers.
Public relations theory
Labour welfare programmes under this theory, are seen as an advertisement

for companies that helps in building up good and healthy public relations. An
advertisement or an exhibition of alabour welfare programmemay help the
management project a good image of the company and also to improve
relations between management and labour.
8
Functional theory
Also known as efficiency theory is based on the postulate that a happy and
healthy person is more productive worker. Welfare is used as a means to
secure, preserve and develop the efficiency and productivity of labour.
(Singh, 2008)
The purpose of welfare activities is to encourage economic development by

escalating production and productivity. If we do not narrow ourselves to the
legal compulsion (which was enforced to ensure humanitarian work
conditions), welfare should also be viewed as the return of workers’ loyal
services which are provided ungrudgingly and in genuine spirit of co-operation
which are carried on by the employers towards the general well-being of the
employees. The benefits of welfare are accrued both by employers and
workers. The following discussion highlights the benefits of labour welfare
activities to the beneficiary (worker) and the benefactor.
Benefits to the workers –
Welfare activities are aimed at ensuring proper human conditions of work and
living. Workingconditions of organization which may be led by an artificial
environment with features like dust, fumes, noise, unhealthy temperature etc
impose strain on the body. The welfare activities are done to minimize the
hazardous effect on the life of the workers and their family members. Thus
maintaining sound state of health, which is a prerequisite to lead a good life.
Welfare activities add in a real way to the little earning of the labour. The
facilities provided such as housing, medical assistance, school, co-operative,
canteens, stores, play grounds etc, complement the income of the workers.
The social security measures support workers and their family during their
non – productive time arising due to disability, retirement or death. These
measures not only provide with them continued financial support (which is
essential for survival, status and self-esteem) but also medical –aid to them
and their dependant (which may be fairly expensive).
9
In general welfare facilities will keep workers and their families happy and
satisfied. This satisfaction would drag them to work rather than indulging in
social evils and anti – industrial activities which can curtail their career.
By and large the worker can secure a better life for himself as well as his
family. This is the social advantage of welfare i.e. nutritious food through
canteen would him healthy and maintains a steady state of health, maternity
benefits would help the mother and her child; educational facilities would give
the worker a new dimension to think and understand the importance of
education for his children too.
Nyakwara and Goerge (2014) concluded from their research that the welfare
services may not directly relate to an employee's job but the presence of
these services is notable through proper human conditions of work and living
that can minimise stress related to the employees’ social life and that of their
family members.
Rajendran and Kumar (2011) argue that given the poor state of labour, they
look forward not only to the welfare facilities but also a healthy and safe
working condition. These facilities coupled with adequate training, nutritious
food, cordial atmosphere would make them more productive and useful for not
only for the industry but also for the nation by adding to their potential.
Benefits to the employer –
Welfare facilities provided by organisation would have a direct bearing on job

satisfaction of workers. A satisfied worker would be more productive worker.
KT (2013) stressed that management should provide labour welfare facilities
to all workers in such way that workers become satisfied. It increases
productivity as well as quality and quantity. It leads to improve profitability and
products of the organization.
Labor welfare is the key to smooth employer-employee relations. This can be

understood in two ways. First, welfare facilities would give the feel of caring
attitude of the employer. Being cared, the worker will be more cooperative,
least grudged and more satisfied with their job. Upadhyay and Gupta (2012),
avow that in today era welfare facilities are necessary for business to have
10
sustainable, efficient and satisfied workforce. The findings of their study also
supported the notion that a positive relationship exist between employee
morale and job satisfaction and also between the welfare measures and
satisfaction. Two, unions would also support management since their
members would be happy and even if the union turns hostile probably its
members (workers) would be least interested in their anti-management
activities as they realize that company cares for them and such activities will
only bring disruption in the present state of welfare. If the company won’t earn
so does the worker. This would make the Industrial relations environment
more peaceful. Kalluraya and Kumar (2010) hold the view that Industries have
realised that welfare of the labour is important both for increasing their
contribution and it also builds smooth relation between employee and
employers. Therefore, employers and employer’s organizations are
undertaking labor welfare activities. Bhavani and Selvan (2011), highlighting
the benefits of cordial industrial relations state that as a result of improved
industrial relations among the employees and management their involvement
in job gets increased and results in increased productivity of the organization.
The organizations maintaining smooth relationship between workers and
management, which leads to attainment of organization efforts.
Labour welfare activities (in terms of healthy and safe working conditions)
increase the efficiency of the labour. Efficiency results into double reward, first
in the form of increased production and second in the shape of higher wages
due to achievement of higher productivity. Therefore, welfare activities in an
organization create a win – win situation for both employee and employer.
Companies can avoid the indices of tax on the surplus profit by investing it on
the well-being of workers.
Since workers will be satisfied with their job, they would not look for job
switch. This will induce loyalty and would reduce the cost of turnover for the
company (in terms of advertisement, selection, training, and productivity loss
during the time when the new worker actually starts contributing). This would
reduce the rate of absenteeism too. Shah (Nd) puts it as the very logic behind
providing welfare schemes is to create efficient, healthy, loyal and satisfied
labor force for the organization. Bais (2014) affirms that company buy a
11
worker’s time, his/her physical presence at a given place but not his
enthusiasm, initiative and loyalty. The management thus has to maintain such
environment at work place so that worker may perform his duties willingly.
Other benefits would include a strong and positive employer’s brand image in
the employment market. A happy and satisfied worker is an advertisement in
himself i.e. it will establish a strong employer image in the market. This would
help the company to attract right talent. It would also make workers accept
new challenges and lower down their resistance to change. The desire to get
greater efficiency and output from workers and a motive to attract better
workers, that make the employers offer extra- incentives in the form of labour
welfare schemes. Such schemes also make it possible for employers to
persuade workers to accept mechanisation (Kaur, 2012).
In order to realize these benefits management should link welfare and the
resulting satisfaction to productivity. Kumar and Kumar (2013) concluded from
their study that company should improve welfare facilities to increase the
productivity and it should channelize the satisfaction of workforce into
efficiency and productivity.
The need for promoting the welfare of labour has been widely recognised and
innumerable speeches have also been made on the need for industrial peace
and higher labour productivity to raise the standard of living (Chhatrapati,
1953).
Welfare facilities are intended to bring in well – being of worker. The

Chartered Institute of Personnel and Development (2007, P4), defines well
being as “creating an environment to promote a state of contentment which
allows an employee to flourish and achieve their full potential for the benefit of
themselves and their organisation”. If employees are in state of well-being
they contribute efficiently to the fulfillment of their goals and organizational
objectives.
However, owing to constrain of financial resources and apathetic attitude

towards labor some employer consider the expenditure on labor welfare
activities as waste of money rather than an investment. The necessity of labor
welfare work in India can easily be realized if we look into the working
12
conditions of the labor class in Indian industries. Largely labour is treated as a

commodity or merely as a resource. Worker is a resource to the extent of his
contribution in the production process beyond this he is a human which
should be treated humanely.
In this context, government has a definitive role to play in terms of a policy

maker and implementer and also as a welfare state. Planning commission
(Nd), addressing labour welfare issue reported that “The improvement of
labour welfare and increasing productivity with reasonable level of social
security is one of the prime objectives concerning social and economic policy
of the government. The resources have been directed through the plan
programmes towards skill formation and development, 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 then families”. The focus should also be
on promoting the virtuous cycle i.e skill upgradation would lead to more
productivity that would lead to socio-economic development; which would give
thrust to industries and nation thereby creating new jobs that would translate
into welfare facilities being extended to more workers and strengthening of
existing facilities (Martin, 2010).
Employers need to comprehend that despite of the technological

development in production; achieving higher productivity is still
dependent on workers. Sweeney (2006), clarifies that companies
should not only bring ion innovative business practices but should
also focus on ‘ordinary’ worker. It is the worker that learns about
products and processes every day. Companies that fail to reward
workers fully or provide incentives will not win the workers'
commitment to share that knowledge. They will be unable to harness
the unique firm-specific knowledge needed to improve quality,
productivity and build sustained competitive advantage.
Workers need to appreciate the benefits derived from the welfare

facilities to themselves and their families. This appreciation should
13
translate into commitment towards work and organisation, loyalty,

efficiency and productivity. If the company grows, the benefits will
also increase and this would call for a positive attitude towards work
and workplace.
As a progressive country, the foregoing on welfare aspects can be summed

up in words of Kautilya (nd, p52) “In the happiness of his subjects lies king’s
happiness, in their welfare his welfare, whatever pleases himself he shall not
consider as good, but whatever pleases his subjects he shall consider as
good”.
In the State of the Union address that President Bush* delivered to the
American Congress on the 29th of January, 2002, he emphasized on - When
America works, America prospers, so my economic security plan can be
summed up in one word: jobs”
“Good jobs must be the aim of welfare reform. As we consider these important
reforms, we must always remember the goal is to reduce depending on
government and offer every American the dignity of a job”.
This calls for a dual role of any state – not only to create jobs but also to
ensure welfare. Government through laws tries to promote and safeguard the
well being of the labours but it also needs to be found that how laws are being
implemented i.e. what welfare activities are undertaken by companies and the
practices of different companies depending on their variable differences like
years of operation, size, industry, labour strength and so on. In nutshell how
much does welfare percolates at the beneficiary level – not only in terms of
statutory requirement but also with a larger commitment to create a win-win
situation.
Higher productivity not only requires modern machinery and hard work, but it
also calls for co-operative endeavor of the parties- labour and management.
All organizations wish to excel in their field of operations. This is possible only
when labour is given due importance and human element is taken into
account at every stage besides other resources. With experience the worker
14
develops a fund of knowledge and experience at his job. If directed rightly and
utilized fully, it would make a great contribution to the prosperity of the
organization. This can only be achieved through satisfaction of the labour as
the worker feels that he is an active participant in the production process, and
he does at most for increasing the production and his/her productivity.
Equally there is the need of information regarding working conditions, welfare

practices, social security arrangements, worker participation in management,
assessing the effectiveness of laws, institutions and procedures and practices
in the various domains pertaining to work and workers. Thereby the study
gathered and analyzed such data.
The present study focuses on labour welfare in the private enterprises at

Pithampur industrial estate of Madhya Pradesh. The state has undergone a
rapid industrialization after an initial slow down. It was a commonly held belief
that industrial growth in state is slow if not stagnate. In order to boost the
share of industries government has created industrial growth centers, estates
and SEZ. Number of medium and large industrial units established in the state
has increased steadily over the years, however the noted growth has been
observed only after 2004-05. This growth has resulted out of the efforts of the
state government for promoting industrialisation in the state following the
adoption of ‘New Industrial Policy-2004’. As per MP economic survey 2013-
14, the industrial sector recorded a growth of 2.15 percent. (WebIndia 123,
2014, Planning Commission, 2011, Jalaja, 2004). Owing to industialisation,
the numbers of workers has also steadily increased in the concentrated areas,
especially in the area of study (which is eighty thousand plus – in terms of ESI
registered members only) (Dainik Bhaskar, 2014). Based on the literature
search and to the best of the knowledge, no study till date has focused on this
part of state. The studies done so far have focused on different parts of India
but no formal research has been carried on labour welfare at Pithampur.
Hence probably this is the first formal attempt in the Pithampur industrial
estate.
Survey of literature shows that researcher have focused on different aspects

of welfare. Mostly the studies have focused on theoretical aspects of labour
welfare, study of statutory provisions for welfare, statutory and non-statutory
15
welfare activities, labour welfare and social security, welfare activities and
health and safety, welfare and job satisfaction, job satisfaction studies with
welfare as one of the components and / or combinations of some of the issues
listed above. This study is comprehensive in the nature because it includes,
statutory welfare facilities (as per Factories act and contract labour act), social
security (including PF, ESIC, Insurance, Maternity, Gratuity, compensation),
Voluntary welfare measures (non – mandatory facilities like cooperative,
educational support, recreation, housing, loan), leaves (weekly and annual),
health and safety and job satisfaction. Thereby the study includes five
variables of welfare and its impact on job satisfaction.
Inclusion of these variables or components of welfare has lead to study of

various labour enactments. This study not only lists the various provisions in
the legal structure but critically analysing them, drawing best practices from
other Indian states and other countries.
The studies done so far focused on a particular company as a case study, a

sector (auto, textile, engineering, pharmaceutical, SEZ etc) and comparison
between public and privates sector industries. The advantage that area of
study offers is that it is house of many industries viz concentration of auto and
auto ancillaries, (commonly known as Detroit of India), textile,
pharmaceuticals, engineering, gems and jewelry, packaging etc. It also has
large, medium, small and micro industries, Indian and MNCs too. These
advantages have been harnessed in the study. The data was collected from
different sectors and status of companies to get the ‘feel’ of entire estate. All
the components of welfare were analysed from the perspective of different
sectors as well. Hence the present study is more informative in the sense that
it represents data from different cross-section of the industry of varying sizes,
nature of business and location (SEZ and non – SEZ).
The study also focuses on the perception of benefits derived by companies

from welfare activities. It is obvious that providing welfare faculties involves
cost. Every business would treat cost as an investment and thereby would
look forward to return on investment. The investment magnitude would
depend on the attitude of management towards workers and their welfare. It is
this attitude that would determine the quantity and quality of welfare. Hence
16
the study focused on the attitude and perceptual benefits from the welfare
facilities. Some studies have shown that industries take up welfare work
based on the availability of workforce, characteristics of workforce and so on.
The present study in order to highlight the sectoral difference also undertook a
comparison in managerial perception across the sectors to identify differences
in attitude and perception towards benefits of welfare. Companies don’t exist
for charity – i.e. the basis of employee – employer relationship is grounded on
the concept of interest. This study also aims to look at the cost incurred by the
company in providing the welfare and then its impact on two broad areas.
First, does it help to increase the satisfaction of labour towards job and
thereby not only affecting his/her attitude towards company but also the work
– Positive bent of mind. Second, what benefit in real and absolute terms the
companies gain out of the expenditure made – cost effectiveness of the
welfare program.
In nutshell the present study is an attempt based in the research gaps

identified and also to add to the existing pool of knowledge on labour welfare.
Benefits of present study –
The present study based on primary and secondary research would prove to
be beneficial both at the macro and micro level. At macro level it addresses
the question of labour law reforms, implementation issues, sectoral
representation of labours, and benefits to industry. At micro level, it addresses
the issue of a particular industrial estate (Pithampur), the state of welfare in
various companies, and welfare measures based on the status of worker.
The study is useful for government (central and state) to know the welfare
status of the workers, amendments required in the law and machinery for
smooth functioning and shaping of policies.
It will give clarity to employers about the perception of workers towards the
welfare facilities provided by them, their adequacy and most importantly the
level of satisfaction of workers arising out of welfare. It would also help them
identify the gaps in the present system and the measures to improve the
same. The study also through research and real life examples draws
17
benchmarks of best practices followed which can guide the industry in

designing and implementing their own welfare policies.
To workers this study is useful in terms of understanding or better to say

realizing that government and companies are doing things for their well-being.
Sometimes we don’t realize it since we are a part of it every day. This
realization can make them more cooperative and instill a positive attitude
towards their work and company. Though not explicitly intended, but this
study can make them better aware of the facilities i.e. their legal rights to
welfare under different legislations.
The overall suggestions offered are given keeping in mind that the three
parties involved – employer, worker and government emerge as a winner,
Rather than adopting a pro – attitude or a bias towards any party concerned,
the study tries to balance the concerns – the cost and productivity concern of
employer, welfare concern of workers and promotion and balance of interest
of employer and workers as a concern of government. Hence the study would
interest and benefit all the concerned parties to welfare.
Keeping in mind the wider concept and nature of welfare, the present study
focused on the following objectives-
1. To study the various welfare practices under different labour

enactments.
2. To study the labor welfare practices in the chosen area of the study.
3. To study the perception of workers towards labor welfare practices

across different sectors.
4. To study the impact of welfare activities on labours’ attitude and job

satisfaction.
5. To study the perception of managers towards the benefits of

implementation of labor welfare activities.
18
1.9 Conclusion
Given the importance of human in the production cycle, worker should be

treated as a partner rather than only a resource. This concept gives strength
to the welfare. Welfare includes all activities done for the betterment of
workforce and includes statutory, voluntary, social security measures, health
and safety and leisure time (leave). These activities will drive the manpower to
be more productive, efficient, committed to work and organisation. Different
theories explain the concept of welfare from different perspectives. On one
hand, paternalistic concept urges the role of employer to be the head of family
and take care of workers as family member i.e. self – driven approach
towards treating people at work well and on the other hand, policing approach
lays emphasis on role of state to force the welfare norms because employers
being self – centered would exploit labours.
Welfare activities are beneficial to all the parties concerned – for workers it
would mean a better life for themselves and their family, for employers it
would mean satisfied, efficient, healthy, loyal and productive workforce and for
government it would mean peaceful industrial climate which would attract
investment and promotion of interest of workers and companies.
The present study focused on the perception of various components of

variables. The study not only looks on to the adequacy but perceptual
adequacy. An adequacy study may have yielded probably a checklist telling
us about what facilities are present or absent. Perceptual adequacy tells us
how the workers feel about the facilities provided i.e. it reflects the quality and
adequacy of welfare facilities. The study also takes into account the different
companies belonging to different sectors, varying size, status (Indian or
MNC), workforce characteristics (gender, skill level and workmen status). The
perception of managers and their attitude towards welfare is also taken into
account. Finally the suggestions do take into account workers, employers and
government and are based on the spirit on symbiosis.
19
2. RESEARCH METHODOLOGY………… 20-38
2.1 The Study
2.2 Sampling Plan
2.3 Sample Characteristics
2.5 Area of study

CHAPTER - 2 : RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
2.1 The Study
The present study is descriptive in nature which is a part of formal research

design. Formal studies start with hypothesis research questions and involve
precise procedure and data sources. The objective of formal research design
is to test hypothesis (es) or answer the research questions posed.
When researcher is aware of the problem or phenomenon but not completely

knowledgeable about the situation, descriptive research is usually conducted.
It primarily describes what is going on or what exits.
According to Robson (2002), “the object of descriptive research is to portray

an accurate profile of persons, events or situations”. Formal studies serve a
variety of research objectives –
a. Description of phenomena or characteristics associated with a subject

population – finding out who, what, where, when or how much.
b. Estimates of the proportions of a population that have these
characteristics.
c. Discovery of associations among different variables (co-relational
study) (Cooper & Schindler; 2007).
Therefore, in this study a descriptive research is undertaken to identify the

dimensions of labour welfare in the area of study. To discover the factors
affecting welfare, survey of the area was carried. Survey is a common and
popular strategy to answer who, what, where, how much and how many,
questions. It allows collecting a large amount of data from a sizeable
population in a highly economical way (Saunders, Lewis & Thornhill, 2007).
The data was obtained using standard questionnaire administered to the
sample which was later analysed using statistical tools. The data and analysis
done helped to suggest possible reasons for particular relationship between
variables. Besides questionnaire, observations & interviews were also used to
collect data and develop further understanding. The independent variables in
the study were statutory welfare measures, social security measures, leave,
non-statutory welfare measure and health & safety and the dependent
variable was job satisfaction.
20
2.2 Sampling Plan
Sampling is selecting some of the elements in a population, so that we may

draw conclusions about the entire population. Sampling is done because it
lowers cost; accuracy of result is higher than the census (Deming, 1990 &
Henry, 1990), speedy data collection & saves time.
The present study used non- probability – convenient sampling.
The sample of the study is constituted on 21 companies and 632 workers

(representing around 40 companies including most of the companies
surveyed too) in the area of study. Companies and workers represent all the
major sectors. The data was collected from end of 2011 to the beginning of
2013. The distribution of companies corresponding to different sectors is
shown in table no, – 2.1
Table No. – 2.1 Distribution of companies
Number of
Sector Percentage
companies
Textile 5 23.8
Auto & Ancillary 5 23.8
Engineering 4 19.0
Pharmaceutical 4 19.0
Miscellaneous 3 14.3
Total 21 100.0
Source: Author’s calculation
21
Distribution of workers is shown through the following tables –
Table No. - 2.2 - Distribution of workers - Sectors wise
Number of
Sector Percentage
workers
Auto & Ancillary 206 32.6
Textile 170 26.9
Engineering 97 15.3
Pharmaceutical 94 14.9
Miscellaneous 65 10.3
Total 632 100.0
Data collected represent various sectors (cross – section of industries).

Pithampur is popularly known as “Detroit of India”, with a large concentration
of automobiles and auto ancillaries producing HCV, LCV, earth movers and
two wheelers. Hence 33% respondents were from auto and auto ancillaries.
The auto companies include Indian, MNCs, large, medium and small scale
units. The ancillaries are usually component manufacturers for large scale
producers which produce engine or other components as an outsource
agency, usually concentrated in sector 1 and 2. The industrial estate
comprises of a variety of industries including textile (apparels and technical
textile) – 27%, engineering – 15%, pharmaceuticals (located in SEZ too) –
15%, other sector including aluminum sheets, packaging, gems and jewelry
etc – 10%.
The workers represented both Indain & MNC companies (Table 2.3) and
some of these companies were joint ventures, located in SEZ and also
belonged to small sector (Table 2.4)
22
Table No. - 2.3 Distribution of workers as per Company status
Company Number of
status Percentage
workers
Indian 543 85.9
MNC 89 14.1
Total 632 100.0
Table No. 2.4 Distribution of workers – Company sub - status
Company sub-status Number of

Percentage
workers
JV 23 3.6
SEZ Located 90 14.2
Small scale (Auto Ancillary) 22 3.5
Total 135 21.4
2.3 Sample Characteristics – The following tables depicts the various

demographic characteristics of workers’ sample
Table No. – 2.5 Gender Distribution
Number of
Gender Percentage
workers
Male 555 87.8
Female 77 12.2
Total 632 100.0
23
Table No. - 2.6 Sector wise distribution of Gender
Gender
Male Female Total
Sector Textile Count 124 46 170
% within Demographic 72.9% 27.1% 100.0%
% of Total 19.6% 7.3% 26.9%
Auto & Ancillary Count 199 7 206
% of Total 31.5% 1.1% 32.6%
Engineering Count 97 0 97
% within Demographic 100.0% .0% 100.0%
% of Total 15.3% .0% 15.3%
Pharmaceutical Count 82 12 94
% of Total 13.0% 1.9% 14.9%
Miscellaneous Count 53 12 65
% of Total 8.4% 1.9% 10.3%
Total Count 555 77 632
% of Total 87.8% 12.2% 100.0%

Nearly half of the sample is drawn from of automobile, auto ancillary and
engineering companies. Females are hardly seen in these sectors may be
because of their strenuous nature of work. Mostly females are seen employed
with ‘soft work’ like textile or technical textiles, gems & jewelry, packaging
material, pharmaceutical etc and even in this case also the gender ratio (male
: female) is 75 : 25. Hence 88% of sample is male & only 12% female.
Further being a male researcher it sometimes became difficult to approach a
female worker.
24
Table No. – 2.7 Distribution of workers –Skill level wise
Number of
Skill level Percentage
workers
Skilled 390 61.7
Semi Skilled 137 21.7
Unskilled 105 16.6
Total 632 100.0
Experienced workers and/or those with vocational training fall into the skilled
category (62%). The less experienced, new entrants can be treated as semi-
skilled (22%) and the rest (17%) unskilled perform peripheral jobs like
packaging, loading – unloading, checking for stitches in the woven bags etc.
The concept of skilled or unskilled largely depends on the nature of work. For
example an auto company has only two categories of workers those who work
on production line (skilled) and the non – production workers (unskilled).
Another auto company has all the three categories and the work is
segregated accordingly. A technical textile company has stitchers as skilled,
helper to the stitcher (who folds & holds the bag as per the instruction of
stitcher) semi skilled, and those unskilled would check the stitch line & wrap
the bags.
Table No. 2.8 Distribution of workers – Worker status
Number of
Worker Status Percentage
workers
Permanent 455 72.0
Temporary 34 5.4
Contractual 143 22.6
Total 632 100.0
72% of workers are permanent. These are those people who largely enjoy all
the benefits. 22.5 are contractual i.e. they work under some contractors and
are largely covered under The Contract Labour (Regulation & Abolition) Act,
25
1970. A group of company does not employ workers through contractors

rather they would put fresher on the roll of a sister concern and with
upgradation of skills, they are shifted to company’s roll with grade benefits
applicable. This category falls under temporary or some contractual workers
may have identified themselves as temporary.
Table number 2.9 and 2.10 represents the distribution of permanent and
contractual workers
Table No. – 2.9 Sectors * worker status Cross-tabulation
Worker status
Permanent Temporary Contractual Total
Sector Textile Count 135 7 28 170
% within
79.4% 4.1% 16.5% 100.0%
Demographic
% of Total 21.4% 1.1% 4.4% 26.9%

Auto & Ancillary Count 133 18 55 206
% within
64.6% 8.7% 26.7% 100.0%
Demographic
% of Total 21.0% 2.8% 8.7% 32.6%

Engineering Count 53 4 40 97
% within
54.6% 4.1% 41.2% 100.0%
Demographic
% of Total 8.4% .6% 6.3% 15.3%
Pharmaceutical Count 78 1 15 94
% within
83.0% 1.1% 16.0% 100.0%
Demographic
% of Total 12.3% .2% 2.4% 14.9%
Miscellaneous Count 57 4 4 65
% within
87.7% 6.2% 6.2% 100.0%
Demographic
% of Total 9.0% .6% .6% 10.3%

Total Count 456 34 142 632
% within
72.2% 5.4% 22.5% 100.0%
Demographic
% of Total 72.2% 5.4% 22.5% 100.0%
26
As evident from table no. – 2.9, contractual workers are seen employed
mostly with engineering and auto and auto ancillaries. Textile and
pharmaceuticals are almost equal and least with miscellaneous sector.
Table No. – 2.10 Worker status * Skill level Cross-tabulation
Skill Level
Skilled Semi Skilled Unskilled Total
Worker Permanent Count 344 83 29 456

Status % within Wstatus1 75.4% 18.2% 6.4% 100.0%
% within Wstatus 88.2% 60.6% 27.6% 72.2%
% of Total 54.4% 13.1% 4.6% 72.2%
Temporary Count 15 10 9 34
% within Wstatus1 44.1% 29.4% 26.5% 100.0%
% within Wstatus 3.8% 7.3% 8.6% 5.4%
% of Total 2.4% 1.6% 1.4% 5.4%
Contractual Count 31 44 67 142
% within Wstatus1 21.8% 31.0% 47.2% 100.0%
% within Wstatus 7.9% 32.1% 63.8% 22.5%
% of Total 4.9% 7.0% 10.6% 22.5%
Total Count 390 137 105 632
% within Wstatus1 61.7% 21.7% 16.6% 100.0%
% within Wstatus 100.0% 100.0% 100.0% 100.0%
% of Total 61.7% 21.7% 16.6% 100.0%

The cross tabulation was done to find relationship between these two variable
– Skill level (skilled, semi-skilled & unskilled) and worker status (permanent,
temporary & contractual). The results indicate that most of the skilled workers
are permanent (overall 54%). However division of labour & experience of
worker also necessitates people who are semi-skilled or unskilled (13% & 5%
respectively). However most of the semi - skilled & unskilled jobs are
performed by contractual workers, owing to three reasons. First, the contract
worker act permits the use of such workers in non-core activities, second, the
27
experience & expertise of these workers may be low than required and third
and perhaps a strong reason may be ‘Cost’. As suggested by earlier
researches too there are growing trend of employing contractual workers for
cost effectiveness and flexibility in workforce strength.
The other characteristics of workforce are represented through table no. –

2.11 to table no. – 2.15 based on Author’s Calculations.
Table No. – 2.11 Table No. – 2.12

Distribution of workers – Distribution of workers –
Age wise Education wise
Age Education
Number of Number of
workers Percentage workers Percentage
Upto 24yrs 140 22.2 Upto9th 143 22.6
25-40Yrs 410 64.9 10to12 350 55.4
40&Above 82 13.0 Vocational & Other 139 22.0
Total 632 100.0 Total 632 100.0
Table No. 2.13 Table No. 2.14

Distribution of workers – Experience Distribution of workers – Experience
wise (within the company) wise (overall)
Frequency Percent Frequency Percent
Below 2 years 142 22.5 Below 5 years 220 34.8
2 - 7 years 316 50.0 5 - 10 years 271 42.9
Above 7 years 174 27.5 Above 10 years 141 22.3
Total 632 100.0 Total 632 100.0
Table No. 2.15

Distribution of workers – Wage wise
Frequency Percent
Below Rs. 5,000 143 22.6
Rs. 5,000 - Rs 10,000 326 51.6
Above 10,000 163 25.8
Total 632 100.0
28
The data of this study was collected from both primary and secondary
sources.
After reviewing relevant literature on the subject, certain attributes were

identified. This data may either be published or unpublished. Published data
for the study are available in: (a) Various publications of the central, state or
local governments; (b) publications of foreign governments or of international
bodies and their subsidiary organizations; (c) technical & trade journals; (d)
books, magazines and news papers; (e) reports & publications of various
associations connected with business & industry, (f) reports prepared by
research scholars, universities, economists, etc.; (g) public record & statistics,
historical documents, and other sources of published information. The
sources of unpublished data are many; they may be available with scholars
and research workers, trade associations and other public / private individuals
and organizations.
Minute scrutiny & testing of primary and secondary data is done so reliability,
suitability and adequacy is to be maintained. Inorder to present indepth
analysis and better comprehension Mixed Method research was used.
Tashakkari & Teddlie (2003) are of opinion that multi-method are used if they
provide better opportunity to the researcher to answer questions and better
evaluate the extent to which the research findings can be trusted & inferences
made from them. For this study, the researcher has used observation, semi-
structured interviews and questionnaire. Observations were done when going
across the factory to meet people. Few HRs also took around the factory for
site visit to show the facilities like canteen, crèche, sports, wash area, first aid
boxes, sick room, safety measures adopted etc. observations helps in gaining
many insights about the claims people make. Semi-structured interview was
carried with different stake holders in the welfare like entrepreneurs, HR or
welfare officers representing the entrepreneurs, workers, union leaders,
government officials (assistant labour commissioner, Health & safety
department, Labour inspector), Chairman – MP Welfare board, Bhopal. These
interviews were meant to get divergent but full circle view and the meaning
behind the data. The questions put were – How is the labour scenario in MP
(by & large)?, How is it at Pithampur?, “Report says we have moved from
29
license raj to inspector raj” Your opinion please?, What issues do you see in
compliance of Factories Act?, Do you think Factories Act need changes
especially the welfare provisions? If yes what changes?, How do you see the
role of provider (employer), beneficiary (labour) and regulator (Government)
with respect to welfare?, As a provider what benefits have you experienced
through welfare measures (say change in attitude of workers)?, Some are of
the demanding that workers are always demanding but the equation is not
balanced by their contribution to company or how do you balance organisation
contribution to workers & vice-versa?, Some companies go beyond the
statutory norms, some just comply it – how do you explain that (is it affected
by factors like turnover, size of operations, profitability, whether the company
is Indian or MNC, years of operations (old/new), attitude towards workforce
etc.)? There is a growing trend of employing contractual workers. How about
their status of welfare?,
Tow standard questionnaires were used to have quantitative data which can
be analysed statistically to comprehend the position of welfare and job
satisfaction (Shram Kalyan Prashanavali – for labours and Labour welfare
questionnaire – for company) These questionnaires have been placed in
Appendix - 1 & 2 . According to deVaus (2002), questionnaire includes
techniques of data collection in which each respondent is asked to answer the
same set of question in a particular order..
The questionnaire was made referring to different scales available.

Srivastava, S.K. (2002), Labour Welfare Inventory, Kapoor, K.D. (1972)
Attitude Scale for Locating Pro and Anti Management, Srivastava, S.K. (1996)
Job Satisfaction Scale, Minnesota Satisfaction Questionnaire (1977), Cook J
and Wall T (1980) measures (a) interpersonal trust at work, (b) organizational
commitment ,and (c) personal need non-fulfillment, Hackman JR and Oldham
GR (1975) Job Diagnostic Survey. The different acts referred were Factories
Act, 1948 & MP CG Rules 1962, The Contract Labour (Regulation & Abolition)
Act, 1970, Employees' State Insurance Act, 1948, Maternity Benefit Act, 1961,
Workmen Compensation Act, 1923, Employee Provident Fund Act,1952,
Payment of gratuity,1972 and ILO welfare facilities recommendations , 1956,
ILO expert committee on welfare facilities, 1963.
30
Questionnaire went through many changes before taking the final shape.
Initially questionnaire had around 106 questions besides the demographic
information. The questionnaire was discussed with HR, Welfare officers,
Workers and Academicians. Researcher was fortunate enough to meet and
discuss academicians who had done research on labour issues during his
stay at V.V. Giri National Labour Institute, Noida. Based on the inputs from
different sources appropriate changes were made. The number of questions
was brought down to the present form of 70 questions. For some questions
language was also changed to make it appropriately worded. While finalizing
the questionnaire, the time taken for a respondent was also taken into
consideration. Then they were grouped within six different categories –
statutory welfare provisions based on acts, Social Security, Leaves, Non –
Statutory Welfare measures, Health & Safety, and Job Satisfaction & Attitude.
It was also seen that similar nature of questions are placed together. Once
finalized, the questionnaire was pilot tested on 65 respondents representing
two different sectors and mix of worker status (permanent/ contractual, skilled,
semi-skilled & unskilled). Some of them were involved in the first phase too.
Based on the feedback from respondents two changes were made. It was
also cut on “perceptual length”.
The reliability of the labour’s scale was calculated through Cronbach's Alpha
indicated a reliability of 0.925. The reliability of company’s scale was 0.921.
The second questionnaire constructed for the company also went through
the more or less the same process. The statements on approach towards
welfare and perceptual benefits of welfare were made after looking into the
theories and available researches.
Both the questionnaires were self administered.
2.5 Area of study
Madhya Pradesh at a glance
On November 1, 1956, the existing states of Madhya Bharat, Vindhya

Pradesh and Bhopal, made up of former princely states, were merged to form
Madhya Pradesh. With an area of 308,000 KM it’s the second largest state in
India. (Government of MP, 2013) or the best way to put 3,08,000 sq. kms. of
31
sheer opportunity (MPAKVN, 2011) with a total population of 72.6 million..

(Census of India, 2011).
Industries & industrial climate
The industrial panorama seems to be quite encouraging and reflects the

emergence of considerable potential for further growth in the industrial sector
of the state (Pani, 2007). Besides these, MP as is one of the leading states in
terms of perceived improvement in delivery of government services through e-
governance. (Varma A, 2010)
State government has initiated steps to strengthen and reinforce favorable

investment climate for potential investors through progressive policies,
simplification of procedures and implementation of the industrial promotion
policy, 2010 (amended in 2012). The new policy aims to strengthen and
further industrial promotion policy of 2004 and to accelerate economic
development and to generate employment through sustainable use of
resources available in the state. Special packages have been announced for
bio-technology, Textile, Pharmaceutical and herbal industries. (Department of
commerce, industry and employment, 2013).
As per the Labour Department of Madhya Pradesh, 14456 factories were

registered as per Factories Act, 1948, employing about 7, 77,512 people.
1,578 Number of factories and 5,933 contractors are registered under
Contract Worker Act 1970, employing around 29, 4116 people (Annual
Administrative Report 2012).
Excellent rapport between the workforce and the industry has accelerated
M.P.'s industrialization even further i.e by and large peaceful industrial climate
as represented through table no. 2.15.
Table No. 2.16 – Industrial climate of MP
Strikes and Lockouts (January to June, 2012)

No. of No. of No. of
Disputes Workers Mandays
State Involved Lost
Madhya Pradesh 6 70502 70502

Source: Ministry of Labour and Employment, Govt. of India
32
The cost of basic infrastructure and skilled manpower is relatively low as

compared to other states. Madhya Pradesh offers one of the lowest labour
cost-to-sales ratios in the country. (IBEF, 2010)
Dhar District
Dhar is located in the Malwa region of western Madhya Pradesh state in

central India (NIC, 2013). Worker participation rate in the district (46.52
percent) is relatively higher than the state average of 31.7 percent.
Pithampur Industrial Estate
An industrial estate can be defined as a tract of land developed and

subdivided into plots according to a comprehensive plan with provision for
roads, transport and public utilities with or without built-up (advance) factories,
sometimes with common facilities and sometimes without them, for the use of
group of industrialists.
Two points in the above definition need amplification. The comprehensive

plan refers not only to the physical planning of the estate, but also to its
immediate economic and social environment, and the role assigned to it in the
regional or urban development plan. The common facilities mentioned may be
needed to improve the productivity of tenant enterprises, to provide technical
and non- technical services to clients, or to upgrade the social infrastructure
and amenities in the area. (UNIDO, 1997)
The World Bank Group defines Industrial estate as, “specific areas zoned for
industrial activity in which infrastructure such as roads, power, and other utility
services is provided to facilitate the growth of industries and to minimize
impacts on the environment. The infrastructure may include effluent
treatment; solid and toxic waste collection, treatment, and disposal; air
pollution and effluent monitoring; technical services on pollution prevention;
quality management (quality assurance and control); and laboratory services
(World Bank. 1995)
The state has developed a 5,000 hectare industrial estate at Pithampur, which
provides readily available infrastructure for companies willing to set up
manufacturing facilities. Perhaps it is the biggest industrial estate in the state
(Sati, 2004). It has both large and small scale industries. A large number of
33
nationally and internationally reputed companies are functioning in Pithampur.

(NA, 2008). It mainly comprises of sector 1,2,3, Kheda growth centre and
India’s first Greenfield Special Economic Zone (SEZ) (NA, 2012). The Apparel
Park for exports, Pithampur, is spread over 56 hectare. The Rs 29 crore
project will be equipped with training centre, service providers like transport
and courier service, business and trade centre, warehouse and effluent
treatment plant.
In 1990, Exclusive DIC office has been setup for Pithampur besides Dhar.
The allotment of land for industrial use and maintenance of relevant facilities
is taken care by MPAKVN. (District Industry Centre, 2012)
Majority of the vehicle-producing companies of India have their factories in

Pithampur. It is considered as a hub for the automobile manufacturing
industry. It is also referred to as the 'Detroit of India'. The automobile
industries are closely followed by textile units. Several small and large textile
units have started their production in not only yarn but technical textile also.
These industries have expansion plans which give Pithampur a new face as
an emerging centre of textile industry. (Kothari, Nd)
Pithampur is a good destination for exporters. Container Corporation of India

(CONCOR) has developed Dry Port and has executed its depot which is
operating since 1st September, 1994. Two more private operators have
started their operations in the area and approximately one lakh containers’
movement take place every year. Besides this, availability of full fledged air
cargo facility at Indore airport, proposed railway line, dedicated freight corridor
as a part of Delhi-Mumbai Industrial Corridor (DMIC) and being surrounded by
three national highways – Agra Mumbai (NH 3), Ahemdabad- Indore (NH 59),
Ajmer – Ghatabillod (NH 79) paves the path of exports from Pithampur
(Kothari, Nd). Exports are mainly done to Europe, Uganda, Germany,
Newzeland, Israel, Malaysia, Nepal, Srilanka, Canada, Australia to name a
few(DIC, 2012).
Pithampur also offers many added advantage to the industries. The gas pipe
line laid by GAIL India ltd with a capacity of 3 MQM/day, 4,163 acres of Auto
testing Track developed by NATRIP (division of Ministry of heavy industries,
34
GOI), 370 sq. km. area of excellence under DMIC project where all amentias
will be provided by state and central government (Kothari, Nd).
Though Pithampur offers many facilities to industrialist through the industrial

promotion policy but lacks in infrastructure including roads, regular water
supply, electricity, hygiene, hospital and others. (Jha, 2011, Kothari N.d.,
DNA, 2013). Arif Sheikh CEO & ED, entertainment world developers opined
that “attracting quality investment requires that MP delivers enough
satisfactory rewards to make investors agree to transfer funds to MP
businesses and entrepreneurs/opportunities. Those rewards cannot be
generated by simple incentives, but from the readiness of economic factors,
the quality of physical infrastructure (I am sure we don't want to create
another Pithampur with first world dream and third world infrastructure)
factors, and the environment that is conducive to quality investment” (Shiekh,
2012)..
Government is trying to improve on the situation. MD, AKVN (I) Manish Singh,
said, "I agree that not much infrastructure development work has been done
in Sector-3 and Khera areas of the Pithampur Industrial area. But, we have
got fund amounting to Rs 93 crore sanctioned by the state government for the
infrastructure development. Also, we are planning to construct a road
connecting the area directly to the airport in Indore” (Das, 2012).
Though some development is observed and planned too. But still much needs
to be done to transform dreams on paper to reality under sun.
In order to derive meaningful conclusion from data different statistical tools

have been employed by the researcher. The tools used were frequency
distribution, Anova, post hoc, correlation & regression. All the tools used were
meant to answer specific questions in other words to fulfill certain objectives
of this study. These tools were applied through SPSS.
In the conduct of the research, the questionnaire did not ask the name of the
respondent or the company for which they worked or any such question that
can reveal their identity as many respondents were averse to give response
35
initially as they felt that the data would be shared with the company / labour
department and they would land in problems. This was done to skip the
respondents’ issue regarding the confidentiality of their identity and the
information that they did not wish to disclose. This problem was faced mostly
with the labours and less with the company and hence such information was
removed from both the questionnaires after pilot study. They were assured
that the data gathered would be treated with the strictest confidence, so that
they would be more open. This was done with the hope that this would
promote trust between the researcher and the respondents. Respondents
were given an ample time to respond to the questions posed to them to shun
errors and inaccuracies in their answers.
The study did not meant to be particular on any sample characteristic but
definitely more inclusive so that a comprehensive and representative
sampling and analysis could be done. However, the limitations of the study
are as follows -
Despite of the fact that many small scale industries are functional in the area,
the data from small scale industries is limited. When contacted, most of the
industries refused to participate in the survey owing to probably two main
reasons. First, most of the welfare norms don’t apply to them because of the
strength of worker. As Pangariya (2008) also reported that labour laws are
applicable in terms of strength of workers, as the size of factory, in terms of
the number of workers employed, increases it increasingly becomes subject
to more legislations. But the researcher had no issues with it. But the second
and probably a strong reason to avoid could have been that the survey would
educate the workers. When convincing a pharmaceutical company having two
units employing roughly 45 workers, the MD rejected the idea of study. “My
workforce strength in a unit is around 17 and PF rules apply to strength of 20
or more but workers created a havoc on this issue and I had to accept to keep
my business running”. Researcher enquired “does this means that they are
unaware about the law as it clearly states which facilities apply at what
strength?” “They know mostly but it will educate them further and I would land
up in soup for your study. You better approach medium or large scale
36
operations where you would find the requisite strength of workers and
facilities too. That would make a good ground for your study as well”. Some of
the companies in this category wanted a change in questionnaire (removing
questions or reframing or have a separate questionnaire altogether) which the
researcher did not agreed because the essence of the study would have been
lost. However researcher managed to get some data.
The study has mostly permanent and less contractual workers sample. Some
contractual workers were diffident towards the study and the best known
reason was the apprehension that they would lose the job if company comes
to know of their participation. Though the researcher tried to assure them that
their identity would not be disclosed but still they would come up with one –
another reason for not participating. Some contractual workers took the
questionnaires but never returned due to their shift in working place (in some
cases outside the state).
H01 – There is no significant difference in the perception of workers employed

in different sectors regarding the statutory welfare facilities provided.

in different sectors regarding social security measures provided.

in different sectors regarding leaves provided.

in different sectors regarding non-statutory welfare facilities provided.

in different sectors regarding health & safety measures provided.
H06 – There is no significant impact of various welfare facilities on workers’ job

satisfaction.
37
H07– There is no significant difference in the approach of managers towards

labour welfare across the sectors
H08– There is no significant difference in the perception of managers

regarding the benefits derived from labour welfare activities across the
sectors.
38
3. REVIEW OF LITERATURE…………............. 39-64
3.1 Changing Labour Scenario

3.2 Labour Welfare
3.3 Labour Welfare – Sectoral

3.4 Social Security
3.6 Provision of Leave
3.7 Factors affecting Job Satisfaction

3.8 Job satisfaction and its impact
3.9 Conclusion
CHAPTER - 3 : REVIEW OF LITERATURE
REVIEW OF LITERATURE
Being labour intensive country, labour supply is abundant but getting skilled
labour force and retaining them is becoming challenging for companies.
Hence companies have started focusing on welfare facilities to add comfort to
the life of workers. This has two fold advantages – first the existing workforce
is satisfied and retained and second workers and their families lead a better &
healthy life. Providing welfare facilities does not only helps the employer to
discharge his legal obligation but also proves beneficial to all the parties
concern in long run thereby sustaining the profitability and wealth creation for
the stake holders.
The aim of this chapter is to uncover the studies already done in the field of
labour welfare and job satisfaction. This has helped the researcher in
identifying the research gap and a place where a new contribution could be
made. The studies done so far in the concerned field has been grouped under
heads like – the changing scenario of workforce in India, labour welfare in
general, welfare perspectives from different sectors, different dimensions of
welfare included in the study like social security, health and safety and leave,
factors leading to job satisfaction and the impact of satisfaction on
performance of workers and company.
3.1 Changing Labour Scenario It explains the changing workforce

composition in many countries and in India. This change has impacted
welfare i.e. different categories of workmen (permanent and contractual) are
treated differently in the same organisation.
Over past few decades, many countries all over the globe are either
amending the labour laws or making non-stringent labour laws for their
organizations, in order to increase the flexibility of employment and their
organizational investments. However, this change has had an adverse affect
on job security and collective bargaining. (Agarwal, 2001). For instance in
Bangladesh, globalisation period witnessed a remarkable reduction in number
of permanent employees working within organizations, and created a room for
unconventional employment structures such as part time, casual and
contractual labour. (Khan, 2005). In another example of Phillipines, McGovern
39
(2005) mentions that “…labour flexibilization is used synonymously with

contractualization or casualization of labour”. Even India has noticed a
remarkable increase in the non-traditional employment practices viz casual,
contractual or other informal labour hire. Contract labour is a significant and
growing form of employment. It is prevalent in almost all industries, in
agriculture and allied operations and in service sector. (Deshpande et al 2004,
Rajeev, 2006).
Srivastava (2012), in his paper changing employment conditions of the Indian

workforce and implications for decent work, focuses on the macro economic
trends to indicate that employment in India is more towards informalisation /
casualisation of the workforce and its implications for deterioration in the
quality of work. The condition of casual workers is different from ‘regular’ or
salaried employment has been seen to be associated with better quality or
decent work due to its general association with higher job security, better
remuneration and conditions of work, and social security.
Based on the analysis of National Sample Survey Organisation (NSSO) data

the changes in employment and the labour market is that while the formal
sector of the economy, particularly the services sector has grown rapidly,
employment relations have become more informal and flexible, and informality
and flexibility are experienced in relation to all forms of employment, including
those forms not normally associated with informality/flexibility. In the
organized non-agricultural sector, regular workers formed 74.3 percent of total
employment. While there is an increase in regular employment but formal
employment among such workers contracted at an annual rate of 0.75
percent whereas informal employment expanded at an annual rate of 12.42
percent. There is increased urban-wards migration, including urban-urban
migration; higher migration for employment and inter-state migration. There is
increase in the percentage of the workers employed without any written job
contract, or a job contract of less than one year duration. NCEUS report on
conditions of work indicated that the quality of work has also declined for
regular workers. Increased informalisation has implied lack of social security
and contractual security for even this category of workers. Thus, among
workers, who are directly or indirectly linked to employers, vulnerability is no
40
longer confined to casual or contract labourers but also encompasses home

workers and the low paid informal regular workers. The increased
flexibilisation of labour and extraction of surplus value through lengthening of
working hours, greater seasonal mobility, poor working conditions, denial of
social security, even where it is due under legislation. Post -2008, economic
slowdown has given strength to the philosophy of ‘inclusive growth’ to fuel the
expansion of demand at the bottom of pyramid. To do so, factor payments
and social security cover are must which provides a greater possibility of
improving labour’s prospects for decent work and a decent life.
3.2 Labour Welfare – It highlights the welfare facilities both mandatory and
voluntary as provided by companies nationally and few examples from other
countries too.
Sen (2000) in his study said that it is not adequate to concentrate only on
labour legislation since people do not live and work in a compartmentalized
environment. The linkages between economic, political and social actions can
be critical to the realization of rights and to the pursuit of the broad objectives
of decent work and adequate living for working people.
Song and Girard (2002) explored the employment probability of recent

welfare recipients in U.S. after implementation of a fundamental change in
U.S. welfare system. The revised Act now was designed to reduce the size of
the welfare caseload in order to reduce federal funding of welfare, decrease
welfare dependency and move welfare recipients into the paid workforce so
that welfare recipients can bear the responsibility of obtaining self-sufficiency
rather than simply relying on federal welfare. The study revealed that welfare
recipients’ health problems had significant negative effects on their
employment attainment. Further, their results showed that higher welfare
recipients’ education attainment was, the more likely they would be employed.
Other important variables like welfare recipients’ age, and racial and ethnic
background were also found to be statistically significant in determining a
welfare recipient’s employability. Further, it was found that welfare recipients
with self-reported disabilities have a significant disadvantage with respect to
being employed compared to welfare recipients who did not report disabilities.
The study concluded with the suggestions that welfare policymakers should
41
consider the impact of the labor market on welfare recipients’ abilities for
finding a job when making welfare policy. The federal and the state
government therefore, should increase funding to education programs and job
training programs for welfare recipients.
Ghai (2003), in his study, stressed on the need of Information regarding

remuneration and working conditions, social security arrangements, and the
nature and mechanisms for negotiation, representation and worker
participation. A good deal of this information is of necessity of a qualitative
nature, assessing the effectiveness of laws, institutions and procedures and
practices in the various domains pertaining to decent work (The concept of
“decent work” was launched in these terms in 1999, in the Report of the
Director-General to the International Labour Conference meeting in its 87th
Session and comprises of employment, social protection, workers’ rights and
social dialogue)
Mishra and Bhagat (2007) said that principles for successful implementation
of labor welfare activities ranges from adequacy of wages to impact on
efficiency as well as transformation of personality. In nut shell, it is extension
of democratic values in an industrialized society. They found a high rate of
labor absenteeism in Indian industries which is indicative of the lack of
commitment on the part of the workers- But it can be reduced to a great
extent by provision of good housing, health and family care, canteens,
educational and training facilities and provision of welfare activities. These
enable the workers to live a richer and more satisfactory life and contribute
not only to the productivity of labor, efficiency of the enterprise and but also
helps in maintaining industrial peace. Hence, steps need to be taken on a
larger scale to improve the quality of life of the workers.
Aggarwal (2007) examined the impact of Special Economic Zones (SEZs) on

human development and poverty reduction in India. The study identifies three
channels through which SEZs address these issues: employment generation,
skill formation (human capital development), and technology and knowledge
upgradation. Along with secondary sources, the primary survey based data
was generated through extensive interviews of entrepreneurs and workers
across the three largest SEZs (in terms of their contribution to exports and
42
employment): SEEPZ, Madras and Noida. The analysis reveals that

‘employment generation’ has been the most important channel through which
SEZs lend themselves to human development concerns, in India.
Employment generated by zones is remunerative. Wage rates are not lower
than those prevailing outside the zones. Besides, working conditions, non
monetary benefits (such as transport, health and food facilities), incentive
packages and social security systems are better than those prevailing outside
the zones, in particular, in the small/informal sector. The role of SEZs in
human capital formation and technology up-gradation is found to be rather
limited as the zones’ potential could not be exploited fully in India.
The Annual Report (2007 – 2008) of Ministry of Labour & Employment,

states that the Government provides the social security cover to most of the
workers in the organized sector through the Employees Provident Fund
Organization (EPFO) and Employees State Insurance Corporation (ESIC)
within the legal framework. The concept of Labour Welfare Fund was,
therefore, evolved in order to extend a measure of social assistance to
workers in the unorganized sector. Towards this end, separate legislations
have been enacted by Parliament to set up five Welfare Funds to be
administered by Ministry of Labour & Employment to provide housing, medical
care, educational and recreational facilities to workers employed in beedi
industry, certain non-coal mines, and cine workers.
Joseph, Joseph & Varghese (2009), state that labour welfare activities in
India started in 1837 and it has shaped itself through steps taken by planning
commission, central & state government, public & private sector organizations
and trade unions. Labour welfare includes all the methods adopted to promote
the physical, social, and psychological well-being of the working population.
There are many difference in the practices based on company, nature of
work, region and country. The paper discuses about the various steps
government has taken to promote the welfare of workers. Private sector
organizations have taken initiatives to promote workers welfare like
educational facilities (for promoting their mental & physical development),
medical facilities, transport facilities (especially for those workers residing at a
43
long distance), recreational facilities and housing are notable. However lot
more needs to be done.
Devi (2010) did her research on labour welfare facilities in Tamilnadu. She is
of opinion that five year plans have improved industrialization in India and
hence there is a need for labour welfare because it increases the efficiency of
worker, creates the healthy working environment, keeps the workforce stable,
satisfied and helps in maintaining industrial peace. It includes all services and
amenities conducive for good health and high morale. Legislations like factory
act have improved welfare of labour and have attracted more significance to
the human side in the industrial economy. The welfare work calls for the
change of heart & outlook both on the part of employer and workers.
Venugopal, Bhaskar & Usha, (2011) in their study of employee welfare

activities on stress that adequate levels of earnings, safe and humane
conditions of work and access to some minimum social security benefits are
the major qualitative dimensions of employment which enhance quality of life
of workers and their productivity. They carried out research at industrial
cluster at Chittor district to know about the welfare programmes conducted by
the industries, overall satisfaction level of employee regarding welfare
programmes, and correlation between statutory & non-statutory welfare
activates at industries. They found that there is a positive correlation between
statutory activities and Non – statutory welfare activities. Employees are
availing welfare measures such as recreational, medical, educational,
housing, transportation, sanitation, safety and also statutory welfare measures
such as Workmen Compensation, ESI, Sickness, P.F and Maternity benefits
but these industries have to provide some more welfare facilities to their
employees such as Gratuity, Pension, Welfare fund, so that they may retain
the employees and their quality of work life. This would also help in
maintaining smooth relationship between employees and management, which
leads to attainment of organizational goals
Pedicini (2011), drawing from various reports the author suggested that if the
corporations provide for the welfare facilities, the good effects of this would
flow back to them. Welfare provision not only affects workers and their
families, but also has wider implications for the economy and society at large
44
From an economic perspective, it adversely affects the worker’s ability to

engage in the labour market and positively contribute to and participate in the
economy in a productive manner. This inability, combined with inadequate
wages and vulnerabilities such as poor health and educational attainment,
can lead to extreme economic poverty, which in turn affects the economy in
general by reducing the aggregate demand for goods and services.
Corporations operating in India are thinking of and investing in their ‘workforce
of tomorrow’, to ensure that they will be educated and healthy. Corporations
are concerned for their own future and believe that ‘their’ virtue will pay off,
ultimately ensuring that they themselves can continue to reap the benefits of
economic growth.
Bhardwaj (2012), in his paper labour welfare in India: an overview tracks the
annals of welfare system from Arthasastra and reign of Asoka where
labourers were treated kindly and were regularly paid too. But the conditions
of workers deteriorated under the Muslim rule, especially in the Royal
factories known as Shahi Karkhanas. The king knew little about the working of
such factories. Workers were treated very harshly and were even flogged.
The modern industrial working class grew up in the country after the advent of
large scale industries. Most of the early industries were started by the
Europeans. The temptation of cheap, helpless and submissive labour, used to
long hours of work and a low standard of living, proved too strong for many
who secured enormous profits by terrible sweating of men, women and
children. Many attempts were made to improve their conditions by organising
the workers. Government of the day also interfered by passing various laws in
this direction. But it proved to be a futile exercise because of the fact that the
object of the laws was not wholly the welfare of the workers but the measures
were adopted either from the political point of view or from the point of view of
increasing the cost of production of Indian industries. Industrialization gives
birth to so many labour problems. Therefore, it is the paramount obligation of
the State to deal with all such labour problems effectively and to enact laws
relating to labour welfare.
Gupta (2013) in his review labour welfare and social security in globalizing
economy stresses that welfare of labor is an important aspect today which
45
we cannot ignore if we want progress of our industry. It is essential to

make safety and other welfare arrangements for labour. Freedom from want
and security against economic fear is the minimum that has to be secured to
its people in the country. The quest for social security and freedom from want
and distress has been the consistent urge of man through the ages. The
Government and the factory owners must fully understand the labor
psychology and a change in their outlook and attitude is desired to secure
the industrial peace. Nothing should be done under threat but on a clear
understanding that whatever is good and is due to the labor, must be given.
Industry owners should treat the workers as co-partners. Similarly, workers’
duty is to improve the work efficiency and help in securing better production
resulting in greater profits and prosperity of the industry. Then alone a
socialist democracy is possible in this country and industrial relations of a
higher order can be maintained for the benefit of the country and the
community.
3.3 Labour Welfare – Sectoral – The studies done with reference to a

particular sector which are in accord with the present studies are presented
below.
Bahadur and Randhawa (2007) had attempted to measure and compare the
job satisfaction of workers in the public and private sector textile factories in
Nepal. They also tried to measure the overall job satisfaction of the textile
workers in Nepal. Data were collected from a sample of 372 workers (238
from public sector and 134 from private sector textile factories respectively).
The results of the study reveal that both the public and private sector textile
workers were, by and large, similar in their perceptions towards the facets of
the job. Along with this, the results reveal that the textile workers in Nepal had
a high dissatisfaction with the facets of the job that involved the monetary
expenditure of the organisation, the behavioral aspects of management and
employment policy of the organization.
Sabarirajan, Meharajan, Arun (2010), are of opinion that textile industry

being a highly labor intensive, needs to concentrate more on employee
welfare. The findings of the research suggest that there is a significant
positive relationship between welfare measures and level of work satisfaction.
46
Most of the employees are highly benefited with the welfare measures
provided by the mills. The employees show positive attitude towards the
provision of the welfare measures. The study concludes that every
organization provides statutory welfare measures but some organization
provides beyond the statutory norms to the employees so that they may retain
the employees and their quality of work life. By the result of improved quality
of work life among the employees their involvement in job gets increased and
results in increased productivity.
Poongavanam (2011) undertook research at Anglo French textile Mills, a

large well established textile mills in Pondicherry, to study working
condition(drinking water, temperature ventilation and lighting facilities,
prevention of dust frames and smoke in the work spot, maintenance of
urinals and lavatories), health and safety facilities (medical facilities given, first
aid facilities, ambulance facilities), employee state insurance (sickness
benefits and extended sickness benefit, medical benefit reimbursement,
maternity\fraternity benefit, depended and funeral benefit), retirement benefits
(gratuity, provident fund, pension), other benefits (canteen facilities, uniform
facilities, schooling facilities, employee co-operative store and credit society).
He found that company has to give more attention to prevention of dust
frames & smoke at the workplace and equally maintenance of urinals and
lavatories. The expectation of employees regarding good health and safety
facilities are provided by the company. The analysis also showed that the
company should concentrate to Maternity/Fraternity benefit, Medical benefit
reimbursement and Dependent and Funeral Benefit. Overall welfare measure
shows that 68% were satisfied with the available welfare facilities. The study
also revealed that Sex, Dependent, Education Qualification has no significant
relationship with their respective welfare scores but age has significant
relationship with welfare scores. He concluded that the welfare measure will
improve the physique, intelligence, morality and standard of living of the
workers, which in turn will improve their efficiency and productivity.
Fatimah et al (2012) have studied job security as a moderating variable to

job satisfaction and well being among workers in the banking sectors and
manufacturing sectors who were most affected by the economic downturn.
47
Randomly selected participants were 600 workers of which 200 represented

the workers who work in the bank, 200 in electronic industry and 200 in
textile industry. These sectors were the most affected by the economic
downturn. Economic instability around the world has resulted in many
organizations having to lay off workers and also shut down to save their
business. This economic strain and stress have impact on the worker’s job
satisfaction and well being through job insecurity. In order to measure the
variables a set of questionnaire comprising of Employment Security Scale,
Job Security Scale, Job Satisfaction Scale and Well-Being Scale were used.
Results from the multiple regression analysis showed that job security had a
direct relationship with job satisfaction and well being of workers. Thus, result
from this study draws that if the workers perceived that their job security was
threatened and in jeopardy, this will affect their job satisfaction and well-
being, thus, affecting their job performance.
Ranjit (2012) carried his study on job satisfaction of textile mill workers. The
author has drawn the picture from the boom years, when textile factories in
Tamil Nadu’s Coimbatore region could not get enough workers. They sent
buses to nearby villages, picking up workers for thrice-daily shifts. In 2005,
mills began holding recruitment fairs hundreds of kilometers/miles away, in
Tamil Nadu’s impoverished south. Laborers poured in from poor states like
Bihar and Orissa. However declining market had seen many of the factory
buses stopped operating and migrants have gone home. The crisis not only
influenced the decline of textile export but also has influenced the life of the
textile labour as a whole. More number of textile mills saw heavy loss on one
side and on the other side workers in these mills were ready to quit if they get
a better employment and adequate compensation. If this is the case, then
there arises a question on the job satisfaction of these workers. It had to be
studied whether these workers are really satisfied with the present job or they
continue to work owing to lack of opportunity despite the lack of job
satisfaction
The researcher used interview and standardized job satisfaction scales for
data collecting. Findings suggested that more than two-third (67.1 percent) of
the respondents stated that the welfare facilities available in the mill were
48
normal, 21.3 percent of them opined as good and 11.6 percent opined poor
on welfare facilities. It is true that always there is possibility of exploitation of
workers by the management even in providing statutory provisions, but in this
study the workers were satisfied with the statutory welfare facilities provided
by the management. This shows that the management was able to satisfy the
workers through meeting statutory requirements to avoid labour turnover.
More than half (53.7 percent) of the respondents had opinioned “normal” on
their working conditions, less than one-third (30.5 percent) opinioned “poor”
and the rest 15.9 percent opinioned “good” on their working condition. This
shows that majority of the respondents are satisfied with their working
condition. The reason is that majority of the respondents were working for
more than 10 years, they are conditioned with their work place because of
their routine work, which it is not the same for the new comers and less
experienced workers. Further it was found that statutory welfare influences
the level of job satisfaction of the respondents and higher the goodness on
working condition higher is the level of job satisfaction. It was concluded that
welfare facilities and working condition influences the level of job satisfaction
of the respondents.
Saini (2006) has studied two cases of companies from Tata Group; Tata
Steel and NDPL Ltd. and found that the organization’s expectation from
employees is increasing in their efforts to survive and stay competitive.
Employees are expected to provide high-quality products and services at the
lowest possible prices. He also brought to the notice that there is a paradigm
shift in the way of doing business in front-running companies. These
companies are now busy in building their intangibles so as to improve their
long-term market value; some of the most significant HR intangibles in this
regard include: shared mindset, talent, speed, learning, accountability,
collaboration, and quality of leadership (Ulrich and Smallwood, 2003:14;
Ulrich and.Brockbank, 2005). Companies are now focusing on policies of
cooperation with employees and unions for building these intangibles. In the
architecture of intangibles, managing talent and creation of future
competencies has assumed critical importance. In terms of Mckinsey’s 7-S
framework, most strategy gurus and corporate stalwarts have been shifting
49
their focus from strategy, structure and systems to staff, style, skills, and
shared values
Bhati & Kumar (2013), carried out study on provision of welfare under
Factories Act & Its impact on employee satisfaction in five engineering
companies from Gujarat drawing a sample of 250 employees. The research
focused on employee satisfaction towards welfare facilities under Factories
Act 1948. The impact of welfare provisions on employee satisfaction was
studied by the way of correlation technique and it also measures the
difference in terms of employee satisfaction towards welfare provision through
one way Annova test. It was found that washing facility, facility for storing &
drying clothes, sitting arrangement, first-aid facility, canteen, shelters,
lunchroom, rest room and welfare officer are correlated with employee
satisfaction. None of the organization from which the sample was drawn gets
affected by crèche facility because as a part of the act, this provision is to be
made only if 30 or more female workers are employed. The researchers
suggested that the provisions provided to the employees in each industry
should always be made more beneficiary for their welfare. So, for this each
industry should appoint the welfare officer who can take better care for the
welfare facility of the employees in an industry. The study found that the
employees have positive attitude towards their industry for the welfare
provisions. The reason behind this result is that these are the factors that lead
to satisfaction & if they are not present can sometimes lead to dissatisfaction.
Swarnalatha & Suresh krishna (2012) in their study on Relationship

between Employee Job Satisfaction and Organizational Commitment: An
Empirical Study among employees of automotive industries in India opine
that in the competitive world industry has to perform at their best and job
satisfaction & organizational commitment of the employees would definitely
pave its path to success. Research results indicate that Leader- member
relations and employee training have a positive effect on job satisfaction. The
relationship between job satisfaction and organizational commitment has a
positive effect. It is indicated that if the employee’s job satisfaction improves
they would show greater organizational commitment and it also decreased the
employees’ intention of leaving the company.
50
Salaria & Salaria (2013) have done their study on employee welfare
measures in auto sector in NCR region. The aim of welfare measures is to
promote the physical, social psychological and general well –being of the
working populations. Welfare work in any industry aims at improving the
working and living conditions of workers and their families. The constituents of
labour welfare include working hours, working condition, safety, industrial
health insurance, workmen’s compensation, provident funds, gratuity
pensions, protection against indebtness, industrial housing, rest room,
canteens, and crèches wash places, toilets facilities, lunch, cinemas,
music, reading rooms, co-operatives store, playground etc. Besides these
companies provide loans, employee counseling, holiday homes,
transportation, parties and picnics and other benefits like organizing games,
sports with awards, setting up clubs, gifts on festival, birthday and
anniversary, productivity /performance awards etc.
The study found that 86% employees are know about the welfare facilities,
78% employees are getting subsidised food at canteen or lunch room facilities
and also uniform and protection clothing & I card facilities. 36% employees
are getting recreational facilities and 64% are not getting. All employees are
100% getting drinking water and toilets facilities .36% employees are getting
rest shelter facilities 64% employees are not getting.92% employees are
getting medical aid and 8% are not getting. 56%employees are satisfied, 36%
employees average response about working condition and 8% employees are
dissatisfied. 64% employees are satisfied .22% employee’s average and 14%
employees are dissatisfied with the work timings. 86% employee are satisfied,
8% show average interest and 6% employees are dissatisfied. 50%
employees in auto sector are satisfied with the transportation facilities 30%
employees are showing average opinion and 6% dissatisfied 14% employees
can’t say because some employees are not using transportation facilities.
40% employees are satisfied with the medical facilities 56% average
satisfaction level and 4% employees are dissatisfied. Opinion about safety
measures in work place 76% employees are satisfied, 20% employee’s
average level and 4% employees are dissatisfied with the safety measures.
40% employees are satisfied, 56% employees are showing average
51
perception and 4% employees are dissatisfied. Employees in auto sector are

highly satisfied with the intramural welfare measures and few are dissatisfied
with the extramural welfare measures. Perception of the employees on the
total welfare measures is satisfied very fewer employees are dissatisfied.
Parvin & Kabir (2011), tested factors affecting job satisfaction for
pharmaceuticals companies. Based on the results for the standardized
values, work conditions, fairness, promotion, and pay, are key factors
affecting employees’ job satisfaction. Money is a good motivator, actually all
employees’ work for money, employees need the money, good compensation
is key factors in satisfying the employee and a way one can increase the
service quality and organizational performance. The factor of work conditions
is also proven to have significant influence. The physical design of the place
does have certain impacts on job satisfaction. A good work environment and
good work conditions can increase employee job satisfaction and the
employees will try to give their best which can increase the employee work
performance. In the questionnaires several elements have been defined such
as cleanliness, lighting, noise, and furniture arrangements. These elements
are the determinant of whether it affects employee’s satisfaction. The
employees also expect that they all receive equal treatment with respect to
pay or promotion. If companies create a fair competitive environment, like fair
treatment, fair compensation, fair work hours, these will improve employee job
attitudes; fairness can also motivate employees to be hard working. It was
observed that job security as an aspect of job satisfaction was more important
to male employees than to female employees. Further, employees from
medium and large organizations, compared with those from small staff-sized
organizations, were more likely to cite job security as a very important
contributor to their job satisfaction. The results suggest that the factors had
satisfactorily explained job satisfaction and that the policy makers and
managers should focus on the factors that affect employee job satisfaction, if
they want to enhance their businesses.
3.4 Social Security – Studies shows the availability of social security

measures in companies and to different categories of workers.
52
Neetha and Verma (2004) in their Study on Labour, Employment and Gender
Issues in Export Processing Zones/Noida Export Processing Zone found that
no exemptions are given to EPZs with reference to Labour Laws. The study
also indicates that the key issue is of assuring minimum wages and social
security in the EPZs. Difference exists amongst firms within the zone with
regard to wages and working conditions.
Mini (2010), in her research on social security of labour in the new Indian
economy was of the view that in India , the laws governing social security
laws are quite old and minor amendments on coverage or on contribution
amount are made. The law structure has several drawbacks like multiplicity of
laws, shortage of coverage, lack of policy, scarcity of implementation
mechanism and above all, lack of clarity of principles which need to be
followed.
In organized sector, there are many workers who work on daily wages or on
contract for short period and are virtually out of the “protection net”. To add to
the dismal, the names of these workers may not be on the rolls and there may
be no evidence in the office about their whereabouts as they come, work, get
wages and go. According to the researcher, inorder to effectively implement
social security system corporations should be made more accountable
towards ensuring social security of its workers. The social security net should
be available to all workers without any discrimination. There should be
compulsory methods for all to invest in such plans that neither the government
nor the corporation is burdened at the time of worker’s misery. Rather than
aggregating the existing programmes of social security, all the existing
systems under various enactments should be streamlined to avoid multiplicity
and coverage extended to all workers in a user friendly manner. Under such
system workers will become more confident and efficient.
Swapna and Samuyelu (2011), in their research article Social Security

Regarding Employee or Labour Welfare present the outlook that social
security, in its broad sense, is envisaged by the constitution of India in its
directive principles of state policy. India has also enacted several legislations
that provide for some mandatory benefits in respect of certain employments.
Such benefits include medical care for sickness, employment injury, maternity
53
and invalidity, supervisors’ benefits, and welfare funds or schemes which are
applicable mostly to organized sector. The authors studied satisfaction with
social security schemes in SCCL through a sample size of 400 workers and
found that 39% of respondents are satisfied, 32% of respondents are
moderately satisfied, 20% of respondents are highly satisfied and 9% of
respondents are dissatisfied. Authors conclude that labor welfare and social
security is one of major aspect towards improving the production of the
industry, condition of the worker and income of the society.
3.5 Health and Safety – the status of health and safety, importance of a
healthy and safe workplace and cost associated with unhealthy practices are
reflected through the following studies.
Pandita (N.d.) a labour activist in his article status of occupational safety and
health in India opines that India has a strong legal framework for protecting
health and safety of its workers. The Constitution provides a broad framework
under which policies and programmes for occupational health and safety can
be established. With amendment in Factories Act, special chapter on
occupational health and safety to safeguard workers employed in hazardous
industries was added. The act requires pre-employment and periodic medical
examinations and monitoring of the work environment and also lays down the
maximum permissible limit for a number of chemicals. In spite of having a
good legal framework for the protection of workers, India suffers from the
chronic problem of lax implementation. Regulatory bodies, including the
inspectorates, are ill-equipped and severely understaffed and not many
doctors are able to correctly diagnose an occupational disease. Much needs
to be done on these fronts.
Burton (2008), identified three components of a healthy workplace – the

psychological environment which defines the attitude, beliefs and values of
management, the safe and healthy workplace and the promotion of a healthy
lifestyle adoption. He further identifies three major reasons for promotion of a
healthy workplace – financial cost of unhealthy workplace which would lead to
more absenteeism and low productivity, the legal implications arising out of
accidents and becoming a preferred employer. Thus there are solid financial
benefits for creating a healthy workplace.
54
Kalejaiye (2013), emphaising on the importance of health and safety at work

place put forth the argument that the conservation of health in the
economically active age groups result in increased productivity of the labour
force and also facilitates return on investments. The health and safety of
every employee in an organization is important if the organization is to
continuously operate to meet its stated goals and objectives. The paper
concluded that, a healthy worker is a productive worker and recommended
that health educational programmes should be carried out in various
industries to create awareness and safety measures should be provided for
workers against health hazard. Despite of these efforts if the worker gets
injured, sick or diseased due to occupational hazards then he/she should be
duly compensated.
3.6 Provision of Leave – The natural stress busters, a self retriever,

required for taking care, tool to overcome fatigue but mostly available to
permanent workers – this how studies have reflected the provision of leaves.
Ogura and Okada (2002), In their study of annual leaves at Japan asserts
that inorder to achieve work – family balance and to address issues like house
work and child care, the daily work hours, commuting time or the number of
days off per week are important consideration. This is also necessary
purposes such as recovering from accumulated fatigue, refreshing mind and
body, and spending time with family members. In addition, for such purposes
as taking care of children, sick relatives, or elderly relatives, and retraining to
improve the occupational skills of workers themselves, a certain amount of
long-term holidays or leave is necessary.
Branham (2005), in his work on ‘why employees leave’ identifies that workers
get stressed when they must sacrifice family time to work extra hours and
when they really need a personal day but cannot take one because their
company does not offer them. These are the people who consistently work
late, work through lunch, work through sickness, take work home and express
frustration in innumerable unhealthy ways.
Upadhayay (2008), in his study at garment and hosiery industries at Noida

found that piece rated employees are not entitled to many of the benefits like
55
payment of O.T., casual leaves, annual leaves, earned leaves etc. because
their names are not there on the muster rolls. Similarly other employees
employed through contractors were also not entitled to many of these
benefits. Even the national holidays were not paid holidays in case of all the
piece rate workers and most of the casual workers.
3.7 Factors affecting Job Satisfaction – Studies laid the importance of

welfare facilities, work environment and other factors in making the workforce
satisfied.
Ritter and Anker (2002), how good or bad is a particular job is an important
question, because they go to the heart of the issues of job quality and
personal welfare. One direct way to evaluate the extent to which jobs are
good or bad is to rely on the opinions of workers by asking them about their
own job satisfaction which is an individualistic concept. The article examined
job satisfaction data collected by the People’s Security Surveys (PSSs) of the
ILO in five countries. The surveys used a sequence of questions that invited
the respondent’s evaluation of her or his job satisfaction on six dimensions:
pay, non-wage benefits, nature of work, autonomy or independence,
opportunities for promotion, and opportunities for skill upgrading. Among the
six aspects of job satisfaction, respondents tended to be the most satisfied
with the nature of their work and least satisfied with their pay and benefits.
Authors concluded that, job satisfaction is strongly associated with perceived
job security and worker’s evaluation of workplace safety. Highly educated
workers are more likely to report high job satisfaction levels and employer
attitudes, as perceived by workers, have large and highly significant effects.
Huang and Vliert (2003) in order to understand the differences in work

motivation across different nations, researchers administered questionnaire to
107,292 employees in 49 countries. Results showed that the link between
intrinsic job characteristics and job satisfaction is stronger in richer countries,
countries with better governmental social welfare programs, more
individualistic countries, and smaller power distance countries. By contrast,
extrinsic job characteristics are strongly and positively related to job
satisfaction in all countries. In poorer countries, in less individualistic
countries, and in countries with larger power distances, intrinsic job
56
characteristics such as challenge, recognition, autonomy, and the work itself

are less closely related to job satisfaction, while extrinsic job characteristics
such as pay, job security, and working conditions are more closely linked with
job satisfaction. These findings contradict conventional wisdom that intrinsic
rewards, such as empowerment, participation, more challenge, and more
recognition from one’s boss, are desirable for all workers. Rather, our findings
suggest that implementing management intervention techniques that
overemphasize the intrinsic rewards for workers in countries with poor social
security systems and a large power distance culture could be ineffective,
especially in manufacturing multinational companies
Srivastava (2004) studied the effect of welfare activities / facilities on job

satisfaction and attitude of workers towards management amongst the
workers of private and public sectors in Kanpur. For this study two hundred
workers were selected from private and public sectors with the help of
incidental sampling method from Kanpur city. Results indicate that welfare
activities/facilities affect the workers' attitudes towards management and job
satisfaction in both the sectors. In comparison between the two, the public
sector is providing its workers with better facilities. If laborers/workers are
satisfied, their attitudes are also pro and positive attitude pays a great role in
the development of an organization
Srivastava (2008) studied the effect of two constituents of work environment

(i.e. physical and psychosocial) on employees’ job satisfaction, performance
and organizational effectiveness in 360 technical supervisors and operating
personnel. He found that working conditions, welfare provisions, interpersonal
relations, trust and support play a dominant role in determining job
satisfaction. Employees who perceive and feel the work environment to be
safe, congenial, motivating and adequate; develop positive attitude towards
various job components, which leads to higher job satisfaction and job
involvement. Physical work conditions like lighting, temperature, noise and
atmospheric conditions enhance productivity. Study concluded that psycho-
social environment at workplace has more impact on employees’ job behavior
and organizational effectiveness than physical environment.
57
Poggi (2010) in his study underlined that objective working conditions

(exposure to noise, temperature, vibrations, ability to choose task or change
task variables or methods, discrimination, threat, pace of work depending on
colleagues or performance) affect job satisfactions in a complex way. First,
working conditions affect job satisfaction directly: bad working conditions
reduce directly satisfaction, while good working conditions increase
satisfaction directly. Second, working conditions affect job satisfaction
indirectly by modifying the aspiration biases. Both the direct and the indirect
effects of working conditions on the levels of job satisfaction need to be
considered for designing policies
Wadhwa, Verghese and Wadhwa (2011) were of opinion that jobs help
individuals to determine standards of living, places of residence, status and even
one’s sense of self worth and on the other hand they are important to
organizations as they are the means of accomplishing organizational
objectives. Their study at cement industry of Chhatisgarh focused on
impact of various factors on job satisfaction. It has been found out that all the
three variables that are environmental, organizational and behavioral factors
have a positive impact on job satisfaction. Authors included three variables in
organizational factors – work condition, promotion and opportunities. Work
places must be in normal conditions allowing employee to do their job
properly. In work places where there is not sufficient conditions employee
motivation level decreases and such a situation affects employee job
satisfaction negatively. Promotion opportunities influence job satisfaction in
different ways. The reason is conducting promotion in many different ways. For
example, “employees promoted based on their work experience” are less
satisfied with their jobs than “employees which are promoted on the basis of
their work results”. Job related opportunities increase employee satisfaction.
For example, a job which has an opportunity to participate in projects,
presenting competition and requiring more responsibilities. The next set of
factors identified as Behavioral factors include adequate authority: Giving more
freedom to employees in their job increases their satisfaction. Salary: Material
rewards are very important in job satisfaction. Money meets luxury needs and
wants of people, along with their fundamental needs. Generally, employees
58
accept salary as supervisors’ reward for the work they have performed.
Supervisors: Managers are one of the main factors which affect job satisfaction.
Managers interested in employees’ work, assisting them in solution of their
work related and personal life problems and also developing informal relations
together with the formal ones are increasing employees’ job satisfaction. If
employees are treated equally and fairly and they are properly supervised, their
level of satisfaction can be increased towards their job. Organizational factors
will thus contribute to job satisfaction. Hence from this research it can be
concluded that organizational factors are the most important aspect for job
satisfaction of the employees in a company.
Anitha (2011) conducted her study at paper mills of Udumalpet and Palani
Taluk with a view to analyze the satisfaction level of the employees regarding
working conditions, rewards, welfare measures and Job security. She opined
that job satisfaction increases employee’s morale, productivity, etc. Job
satisfaction creates innovative ideas among the employees. Individuals may
become more loyal towards the organization Employees will be more
satisfied if they get what they expected, job satisfaction relates to inner
feelings of workers. Naturally it is the satisfied worker who shows the
maximum effectiveness and efficiency in his work. Most people generalize
that workers are concerned more about pay rather than other facilities,
such as canteen, working conditions, etc. but they also play a significant
role in satisfying them. The study showed that only 44% of the employees are
satisfied with the working conditions, 31% of them with the welfare facilities,
44% of them with the accident compensation, and 42% of them are satisfied
with the rewards provided and 52% of them are satisfied with the grievance
handling procedure. The organization may give importance to certain factors
such as Canteen, rest room facilities, rewards, recognition and promotion
policy so that satisfaction of the employees may be improved further. The
author concludes that welfare measures and job security should be given
utmost importance, so that the employee’s turnover may be restricted. The
organizations need to modify the reward system of the employees and
promotions must be given based on merit, educational qualification and
experience, and if these factors are given little more care, the company can
59
maintain good workers with high level of satisfaction, organizational

commitment and involvement. This will in turn lead to effectiveness and
efficiency in their work which leads to increased productivity.
Jayanthi, Kumar and Manju (2012) carried out study on labour welfare
measures in Salem steel plant on the attitude of the worker’s towards the
various welfare provided by the industry, and the impact of Labour Welfare
measures on the productivity of the industry. It was found that more than 50%
of workers were satisfied with facilities like canteen, sitting, first-aid, welfare
officer, rest room, gratuity, provident fund, loans and advances, recreation
club, children education, housing, uniform, training and other non-statutory
facilities. Most of the respondents agreed that labour welfare measures have
impact on labour turnover, absenteeism, job satisfaction and industrial
relation. Authors concluded that labour welfare inclusive of social security,
address multi-dimensional socio-economic aspects and also affect
productivity and living standards of labour force.
3.8 Job satisfaction and its impact - studies highlighted the importance of
job satisfaction and the impact of satisfaction on commitment, turnover,
absenteeism, morale and productivity.
Ryan, Schmit and Johnson (1996) in their study of a large automobile

finance company for two consecutive years to find relation between attitude
and effectiveness, found that turnover was related to job satisfaction, stress
and training. They also provide for relationship between morale and
productivity (though weak due to external environmental variables)
Case (1997) argues that relevant information should be shared and

understood by everyone in the organization. Mangers should give autonomy
to employees in work scheduling and how does it reflects on productivity and
cost. Employees should be paid reward for their contribution in success
besides compensation. He studied many companies and found that having
engaged employees, sharing and caring about their needs enhances
productivity and reduces cost of operations
Rucci, Kirn and Quinn (1998) explain how employee – customer – profit
chain has worked at Sears, Reobuck and company. From heavy losses in
60
1992 to profitable position, company created a turnaround not only by

strategic moves but by creating a sense of ownership among employees, a
compelling place to work, to shop and to invest. They found that employee
satisfaction is driven by attitude towards the job and towards the company
and a 5 point improvement in employee attitudes will drive a 1.3 point
improvement in customer satisfaction which in turn will drive a 0.5%
improvement in revenue growth.
Grant (1998) emphasizes that if companies treat their employees well, it

raises their morale which leads to better financial results. She has mentioned
of Gallup organisataion survey of 55,000 workers which found a strong
correlation between attitude of workers (opportunity to do better, participation,
fellow workers commitment to quality and connection between their work and
company’s mission) and higher profits.
Shellenbarger (2007) points that more and more companies are engaging
into attitude surveys because they believe that employee satisfaction will have
an indirect but significant effect on profit. Companies like Sears, Nortel, MCI
communications etc have found a positive correlation between employee
satisfaction, customer satisfaction and productivity.
Koys (2001) surveyed around 700 employees, managers and customers over
a period of 2 years in a regional restaurant and found that profitability and
organizational effectiveness (Customer satisfaction) are influenced by
employee satisfaction, organizational citizenship behavior and voluntary
turnover. He suggests that managers should not ignore employee satisfaction
which leads to OCB and employees’ willingness to stay in the organization.
This adds to organizational effectiveness and lowers the cost of HR
processes (like cost of hiring) and hence increases profitability.
Maister (2001) surveyed cross section of industries and summed up that

some firms place employees on the third priority after clients and
shareholders. But in the most of the financially successful firms employees
feel that management listens to them, values their inputs, treat people with
respect, practices what it preaches and have a fair system of compensation. If
61
employees are satisfied, that would make customers satisfied which would
reflect in the financial performance of the company.
Shikdar and Das (2003) in their research on workers found that higher
worker satisfaction leads to higher productivity through the provision of
participative standards and performance feedback. Workers participation in
setting his/her own standard (autonomy) is an important factor in satisfaction
– productivity relationship. Achievable production standards and monetary
incentives improve productivity. The findings of their research may give useful
insight in industries where operators are engaged in repetitive task.
Fischer and Poza (2007), analyzed the impact of job satisfaction on the
health of persons active in the labour market using a national German panel
dataset using data from the 1992 – 2005. They found that self-reported
measures of health (such as health status and health satisfaction) are
positively influenced by job satisfaction. This result corresponds that can
produce job satisfaction, like improvements in working conditions, would be
beneficial to health perceptions and accrual health state. Thus job satisfaction
may impact not only on workers’ productivity, but would also come along with
large-scale cost savings in the healthcare and lesser sick leaves from work.
Pushpakumari (2008) concluded from her study that there is a significant

impact of job satisfaction on performance of employees in private sector
organizations. Less absenteeism is observed in satisfied workers than the low
satisfied workers. High satisfaction leads to fewer turnovers and satisfied
employees have high commitment to the job rather than the workers who are
dissatisfied.
Fletcher, Baines and Harrison (2008) explain that earlier production

systems relied on technology and job simplification. Workers were considered
as machines. Human relations approach linked worker’s attitude to safety,
quality, effect of shifts, group effectiveness and to cost and productivity.
Authors studied various job related attitudes like work involvement, intrinsic
job motivation, perceived job characteristics, job satisfaction, interpersonal
trust and organizational commitment in workers at automotive component
factory. They found that job, fellow workers and job security produces job
62
satisfaction whereas workhours, shift pattern and nature of job causes job
dissatisfaction. Performance and productivity are not only dependent on
machines/design rather on individual differences and level of satisfaction.
Chandrasekhar (2011) studied 285 employees in a public sector organization

which provides all statutory welfare measures and found that workplace
design, safety measures, health concerns of employees, relationship with
superiors, availability of proper tools and facilities for doing job, fairness,
proper communication, work content, autonomy, friendly and helpful co-
workers, clearly defined responsibilities and good pay motivates employees,
develops a positive attitude towards work and management; improves
productivity and performance.
Swapna (2011), focused her study mainly on the welfare provisions contained
in the factories act, 1948 and was confined to the regular workers only. Study
found that various measures taken by SCCL with the cooperation of workmen
of have resulted not only in industrial peace but also in generating profits
successively.
Padala (2011) studied employees in different cadres at Nagarjuna Fertilizers

and Chemicals, Kakinada, India and found that better compensation, security
of employment, attractive services conditions, active participation in union
activities leads to greater job satisfaction and better organizational
commitment. Male respondents were more committed towards the
organizational development. Age, nature of job, length of service and income
are negatively related to job satisfaction and commitment. Delay in
promotions also decreases job satisfaction. He concluded that greater job
satisfaction leads to organisational commitment.
Nayak, Patra, and Samal (2012), study aimed to evaluate and identify the
relationship between monetary and non-monetary incentives offered on
employee motivation and job satisfaction and to understand workers’
perception of various incentives (Allowances, Labour welfare measures)
offered to them as a tool towards improvement of their productivity. Findings
from the study suggest that there is a direct and positive relationship between
motivational factors (Human resource policy, Allowances, Labour welfare
measures and Job interest and involvement factor) and labours’ productivity
level. The workers of the said industries can be positively driven towards
higher productivity with the provision of better wages, regular promotion,
63
adequate job security and bonus for excellent performance as well as proper
and regular training and education.
Mahdi et al. (2012), studied the effects of intrinsic and extrinsic satisfaction
on turnover intentions. Based on the findings, intrinsic satisfaction (which
include such factors as interesting and challenging work, self-direction and
responsibility, variety and opportunities to use one’s skills and abilities), had a
stronger influence on intentions to leave in the organization. The extrinsic
rewards (tangible rewards that are visible to others and include such factors
like pay, promotions, fringe benefits, security and comfortable working
conditions) also influence the turnover intention within the organization.
However extrinsic satisfaction have less influence on turnover intention, which
mean that if the intrinsic value were fulfilled, the turnover rate among the
employees will be low compared to if only extrinsic values are focused by the
management. In nutshell, job should provide intrinsic and extrinsic
components proportionately to reduce turnover.
3.9 Conclusion
The overall review of literature revealed that some studies are similar to the
study in some aspects and are equally different on many issues. The
commonness lies in changing workforce composition, labour welfare
practices, impact of welfare on job satisfaction and the outcomes of
satisfaction. However there are many uncommon factors. First, none of the
study quoted above used the important variables in labour welfare like
statutory benefits, social security, leaves, non-statutory and health and safety
measures all put together as a welfare measure. Different studies have used
these variables in varying combinations and the depth of inclusion also differs
i.e. not all facilities have been taken into account.
Some of the studies were based on sectors in particular and have reported
the availability of welfare facilities in that particular sector only. This study
looks not only into sectors but also the differences into sectors.
Studies have looked into job satisfaction as an outcome of many variables

and welfare being one of them i.e. not exclusively impact of welfare on
satisfaction. Companies approach towards welfare and the perception of
benefits derived from welfare were not covered extensively in the above
studies.
64
4. STATUTORY WELFARE PROVISIONS AND
INSPECTION SYSTEM……….................. 65-115

4.2 Important terms & definitions as per acts
4.4 Main provisions of Factories Act 1948 and Madhya
Pradesh/ Chhattisgarh factories rule 1962.
4.5 Contract labour (regulation and abolition) act 1970
4.11 Need to relook - the way forward and Conclusion
CHAPTER -4 : STATUTORY WELFARE PROVISIONS AND INSPECTION SYSTEM
STATUTORY WELFARE PROVISIONS AND

INSPECTION SYSTEM
The chapter presents the a critical analysis and provisions of act regarding
health and safety, welfare, leaves, social security and also highlights the
voluntary welfare measures. Labour inspection system through which the laws
are enforced is also the part of discussion.
Mahatma Gandhi once said “A nation may do without its millionaires and
without its capitalists but a nation can never do without its labour. Labour is far
superior to capital because it is less dependent on capital than the latter is on
labour”. (Satyanarayana, Nd). In India, number of labour legislations has
been enacted to promote the condition of the labour. At present, there are 44
labour related statutes enacted by the Central Government dealing with
minimum wages, accidental and social security benefits, occupational safety
and health, conditions of employment, disciplinary action, formation of trade
unions, industrial relations, etc. Government's attention is also focused on
promotion of welfare and providing social security to the labour force. These
objectives are sought to be achieved through implementation of various
labour laws, which regulate the terms and conditions of service and
employment of workers (Ministry of labour and employment, 2011). The spirit
of labour welfare is embodied in constitution of India and several acts carry
forward its essence.
The preamble of our constitution secure to all its citizens: JUSTICE, social,
economic and political; LIBERTY of thought, expression, belief, faith and
worship; EQUALITY of status and of opportunity; and to promote among them
all FRATERNITY assuring the dignity of the individual and the [unity and
integrity of the Nation]; (Ministry of law and justice, 2012). The constitution of
India and the state directive principles laid contain the soul of the benefits to
the labour. Under the Constitution of India, Labour is a subject in the
Concurrent List where both the Central & State Governments are competent
to enact legislation subject to certain matters being reserved for the Centre.
65
(Ministry of labour & employment, 2011). The main provisions which have
paved the path for labour welfare are -
Article 14 in its concept of equality before law implies absence of any special
privilege by reason of birth, creed or biasness towards any individual. The
Supreme Court has held that although the principle of 'equal pay for equal
work' is not expressly declared by our Constitution to be a fundamental right,
but it is certainly a constitutional goal under Articles 14, 16 and 39 (c) of the
Constitution. This right can, therefore, be enforced in cases of unequal scales
of pay based on irrational classification. This has been used in number of
cases like Randhir Singh v. Union of India, Dhirendra Chamoli v. State of
U.P., Daily Rated Casual Labour v. Union of India, F.A.I.C. and C.E.S. v.
Union of India, State of Orissa v. Balaram Sahu. This article has found its
application in resolving cases of contract workers and deciding on ‘equal
wage for equal work’.
While observing on Article 21 courts in number of cases (Olga Tellis v.

Bombay Municipal Corporation, D.K. Yadav v.J.M.A. Industries) have held
that the word 'life' in Article 21 includes the 'right to livelihood' also. Its not only
taking a person’s life should be treated as right to life but an equally important
facet of that right is the right to livelihood as depriving a person of his right to
life would be to deprive him of his means of livelihood. In view of the fact that
Articles 39((a).and 41 require the State to secure to the citizen an adequate
means of livelihood and the right to work, it would be sheer pedantry to
exclude the right to livelihood from the content of the right to life. Right to
livelihood would also include termination of the service of a worker without
giving him reasonable opportunity of hearing in unjust, arbitrary and illegal
(Neelakantapilla, 2010)
Article 23 of our Constitution lays down a prohibition against ‘forced labour’.

The expression ‘forced labour’ includes a prohibition against slavery and
bonded labour as well as trafficking in women, children or disabled people.
This has been implied by hon. Supreme in cases (People’s Union for
Democratic Rights and others v. Union of India16 which was also followed in
Sanjit Roy v. State of Rajasthan) where worker has been paid less than
minimum wages. The court held that its ‘forced labour’.
66
Articles 39(e) and (f) in Part IV of the Constitution which emphasize the need
to protect the health and strength of workers, and also to protect children
against exploitation (Balakrishnan, 2009).
Articles 38, 39, 39-A, 41, 42, 43, 43-A and 47 of the Constitution embody the
Directive Principles of State Policy which though are not enforceable by law
but nevertheless are guiding framework for the state to apply those principles
in making laws. Under these articles it is the duty of the State to promote the
welfare of the people, to make effective provision for securing the right to
work, education and public assistance in cases of employment, etc., subject
to limits of its economic capacity to make provision for just and humane
condition of work and for maternity relief; to endeavor, to secure by suitable
legislation or economic organization to all workers work, living wage,
conditions of work ensuring a decent standard of life and full enjoyment of
leisure and social and cultural opportunities, to promote cottage industries on
an individual or cooperative basis in rural areas, and to raise the level of
nutrition and the standard of living and improve public health etc. (Aarsha,
2013, Department of labour, government of Madhya Pradesh, 2013).
The Constitution hence places emphasis on the concept of social justice as

one of the fundamental objects of State policy, and these protective provisions
edify the spirit of Indian industrial laws (Mangaldas, 2009).
Many acts have been constituted to bring these articles into practice for
example The Factories Act, 1948 (Article 42), Contract Labour [Regulation
and Abolition] Act, 1970, Minimum wages Act, 1948 (Article 43), social
security acts such as ESIC, EPF, Maternity benefits, Social justice ensured
through industrial adjudication are worth mentioning (Welingkar, 2012)
4.2 Important terms & definitions as per acts – The understanding of

various terms & definition is important to understand the implications held.
Though not all definitions are included, however those important are given
under –
Under s. 2(m) of Factories Act, factory means any premises including the
precincts thereof "Whereon twenty or more workers are working, or were
working on any day of the preceding twelve months, and in any part of
67
which a manufacturing process is being carried on with the aid of power, or

is ordinarily so carried on." But does not include a mine or mobile unit
belonging to the armed forces of the union, a railway running shed or a hotel,
restaurant or eating place. In computing number of workers, all workers in
different groups & relays in a day shall be taken into account.
Under s. 2(k) (i) of Factories Act, manufacturing process means any

process for ’making, altering, repairing ornamenting, finishing, packing,
oiling, washing, cleaning, breaking up, demolishing or otherwise treating or
adapting any article or substance with a view to its use, sale, transport,
delivery or disposal or (substituted by Act 94 of 1976, S.2 for sub-cl (ii) (w.e.f.
26-10-1976) pumping oil, water, sewage, or any other substance)or
generating, transforming or transmitting power or (substituted by Act 25 of
1954, S.2 for sub-cl (iv) (w.e.f. 07-05-1954) composing types of printing,
printing by letter press, lithography, photogravure or other similar process or
book binding or constructing, reconstructing, repairing, refitting, finishing or
breaking up ships or vessels or (inserted by Act 94 of 1976, S.2 (w.e.f. 26-
10-1976) preserving or storing any article in cold storage." (Mallick, 2009)The
definition is widely worded
In the case V. P. GOPALA RAO Vs. PUBLIC PROSECUTOR, ANDHRA

PRADESH, M/s. Golden Tobacco Co., Private Ltd had its main factory at
Bombay. In the company’s Eluru premises, sun-cured tobacco leaves
purchased from local producers were subjected to the processes of
moistening, stripping and packing. The tobacco leaves were moistened so
that they could be handled without breakage. The moistening was done for
10 to 14 days by sprinkling water on stacks of tobacco and shifting the top
and bottom layers. The stalks were stripped from the leaves. The Thukku
(wholly spoilt) and Pagu (partly spoilt) leaves were separated. The leaves
were tied up in bundles and stored in the premises. From time to time they
were packed in gunny bags and exported to the company’s factory at Bombay
where they were used for manufacturing cigarettes. Supreme Court held that
as per s 2 (k) (i) Manufacturing process was carried out in the premises and
hence as per section 2 (m) the Eluru premises is factory (Supreme Court of
India, 1970, AIR 66).
68
As per Factories Act, 1948, Adult means a person who has completed the
eighteenth years of age. Adolescent means a person who has completed his
fifteenth year of age but has not completed his eighteenth year. Child means
a person who has not completed his fifteenth year of age. Calendar year
means the period of twelve months beginning with the first day of January in
any year. Week means a period of seven days beginning at midnight on
Saturday night or other such night as approved by Chief Inspector. Day
means a period of 24 hours beginning at midnight. Power means electrical
energy or any other form of energy which is mechanically transmitted and is
not generated by human or animal agency.
As per employees’ sate insurance act, 1948, Wages means all remuneration
paid or payable, in cash to an employee, if the terms of the contract of
employment , express or implied, were fulfilled and include (any payment to
employee in respect of any period of authorized leave, lockout, strike which is
not illegal or lay – off and) other additional remuneration, if any (paid at
intervals not exceeding two months), but does not include – any contribution
paid by the employer to any pension fund or provident fund or under this act
or any travelling allowance or value of any travelling concession or any sum
paid to the person employed to defray special expenses entailed on him by
the nature of his employment or any gratuity payable on discharge. As per
Payment of Gratuity Act, 1972, wages means all emolument which are
earned by an employee while on duty or on leave in accordance with terms
and conditions of his employment and which are paid or are payable to him in
cash and includes dearness allowance does not include any bonus,
commission, house rent allowance, overtime wages and any other allowance.
As per Employees provident funds and miscellaneous provisions act 1952,
basic wages means all emoluments which are earned by an employee while
on duty or (on leave or on holiday with wages in either case) in accordance
with the terms of contract of employment and which are paid or payable in
cash to him, but does not include – the cash value of any food concession,
any dearness allowance (that is to say, all cash payments by whatever name
called paid to an employee on account of a rise in the cost of living) house
rent allowance, bonus, overtime allowance, commissions or any other similar
69
allowance payable to the employee in respect of his employment or of work

done in such employment and any present made by the employer. In Surya
Roshni Limited. vs. Employees Provident Fund and another, It was held that
when special allowances, conveyance allowances etc are paid to all
employees, they should be treated as a part & parcel of basic salary (High
Court of Madhya Pradesh 2011, RP 117,). As per section 3 of Maternity
benefit act, Wages means all remuneration paid or payable in cash to a
woman, which includes cash allowances (including dearness allowance and
house rest allowance), incentive bonus and the money value of the
concessional supply of food grains and other articles but does not include –
any bonus, over time earnings any contribution paid or payable to any
pension fund or provident fund or any gratuity.
Contractor as defined by the contract Labour (Regulation & Abolition) Act,

1970, in relation to an establishment means a person who undertakes to
produce a given result for the establishment, other than a mere supply of
goods or articles of manufacturing to such establishment, through contract
labour or who supplies contract labour for any work of establishment and
includes a sub-contractor. Establishment means any place where any
industry, trade, business, manufacture or occupation is carried on. Principal
employer means the owner or occupier of the factory and where a person
has been named as the manager of the factory under the Factories Act, 1948
(63 of 1948), the person so named.
As per ESI Act 1948, Dependant means any of the following relative of a
deceased insured person namely – a widow or minor legitimate or adopted
son, an unmarried legitimate or adopted daughter, a widowed mother, if
wholly dependant on earning of injured person at the time of his death a
legitimate or adopted son or daughter who has attained the age of 25 years
and is infirm (age of 18 is replaced by 25 through The Employees’ State
Insurance (Amendment) Act, No. 18 of 2010). If wholly or in part dependant
on the earnings of the insured person at the time of his death – a parent other
than widowed mother, a minor brother or an unmarried sister, a widowed
daughter in law, a minor child of a pre-deceased son/ daughter (where no
70
parent of child is alive) or a paternal grand-parent if no parent of the insured

person is alive.
Employment Injury means a personal injury to an employee caused by

accident or any occupational disease arising out of an in the course of his
employment, being an insurable employment, whether the accident occurs or
the occupational disease is contracted within or outside the territorial limits of
India.
Sickness means a condition which requires medical treatment and

attendance and necessitates abstention from work on medical grounds.
Permanent Partial Disablement means such disablement of a permanent

nature, as reduces the earning capacity of an employee in every employment
which he was capable of undertaking at the time of the accident resulting in
the disablement;
Permanent Total Disablement means such disablement of a permanent

nature as incapacitates and employ for all work which he was capable of
performing at the time of the accident resulting in such disablement;
Temporary Disablement means a condition resulting from an employment

injury which requires medical treatment and renders an employee, as a result
of such injury , temporarily incapable of doing the work which he was doing
prior to or at the time of the injury.
Miscarriage means expulsion of the contents of a pregnant uterus at any

period prior to or during the twenty-sixth week of pregnancy but does not
include any miscarriage, the causing of which is punishable under the India
Penal Code (45 of 1860). (Mallick, 2009).
With industrialisation, growing number of factories and no state control over

the conditions of employment, the labour was exploited to the advantage of
the capitalist. Some signs of relief were shown with the first Indian Factories
Act of 1881 which were shown with the employing child under the age of
seven, granting them four holidays per month, rest intervals, fencing
dangerous parts of machines & reporting accidents. This was applicable to
71
manufacturing establishments using power and employing 100 or more

people. However, owing to lack of inspecting staff, the act proved to be futile.
Based on the recommendation of Factory Labour Commission 1890, the

Indian Factories Act was passed in 1891 and came into force from 1st January
1892. This act was clear improvement over the last. The qualification of a
factory was brought down to 50 workers and even 20 workers if the local
Government notifies. It introduced new restrictions on the employment of
children (below the age of nine), mandatory rest interval for half an hour,
weekly off, shift of 7 hours for children between 9 to 14years, 11 hours shift
for women (with break of 1.5 hours if required to work for maximum
permissible hours) and restriction on employing women between 8 PM to 8
AM.
Conditions further deteriorated with the advent of electricity and plague which
broke out in the industrial towns owing to resistance of workers slight
improvements were made in wages and housing provisions. But the working
conditions inside the factory remained unchanged as reported by Freer Smith
Committee (1906) & Factory Labour Commission (1907). In order to improve
on the conditions, Indian Factories Act was enforced from 1st July 1912 which
for the first time restricted the hours of working for adult males to 12 hours per
day. The working shift for children was reduced to 1 hour. The act also
provided for measures to safeguard health and safety and effective inspection
and punishment on the break of act. Local Government was given power of
exemptions.
The period of first world war from 1914-1918 brought with it vast production,
soaring prices and phenomenal profits but the conditions of work and workers
did not showed signs of improvement especially the cash wages. In 1917,
Textile Industries gave “war bonus” and “special allowance” on account of
high prices of food. The bonus continued till 1922 because companies were
making profits. Towards 1923, the demand for cloth & yarn went down and
thereby no bonus was given. The owners failed to clarify the workers that
bonus is not a part of wages but a share in profit, hence no profit, no bonus.
Agitated by this move, workers went on strike on a mass level, demanding
increased wages and reduction in working hours. In order to safeguard the
72
interest of workers, Factory Act was amended in 1923, 1926 & 1931 and
Royal Commission on Indian Labour was appointed in mid 1929.
Based on the recommendations of Royal Commission, consolidated and

amended act was passed in 1934 and bought in operation from January 1,
1935. The act made a distinction between seasonal (working for 6 months or
less in a year) and perennial factories. The working hours (intermittent with
breaks) were prescribed based on the status of factory, adult, child,
adolescent, male & female. Norms regarding health & safety were made more
stringent. Welfare facilities were introduced like rest shelter over 150 workers,
crèches for children below 6 where more than 50 women are employed and
first aid medical appliances.
With subsequent amendments and 1946 and 1947, working hours were
reduced to 8 and 48 hours weekly, provision of 10 days annual paid holiday,
washing facilities to the workers and canteen over 250 persons. (Srivastava,
2001)
4.4 Main provisions of Factories Act 1948 and Madhya Pradesh/

Chhattisgarh factories rule 1962.
As a continuous attempt to improve the welfare, health, cleanliness, safety

and overtime payment and to make factories act upto the international
standards, new amendments were introduced on December 3, 1947. The
U.K. Factories Act of 1937 was the most up-to-date and comprehensive
legislation was taken the most useful framework in revision of the F.A. to
1934. It made several distinctions from the previous acts, regarding the
minimum age of employment being raised from 12 to 13, reduction of their
1/2
working hours from 5 to 4 hrs, the provisions were detailed to ease the
work of inspectors thereby bearing less to their expertise. The act was
designed to bring commonness throughout the states, so the variations in the
states over the issues of health, safety & welfare could be balanced.
However, states are free to frame their rules regarding these provisions to
make them more suitable as per their local conditions.
The act makes a distinction between large and small scale enterprises and all
the factories covered under the act whether perennial or seasonal needs to
73
comply with the provisions regarding safety, health & welfare (Srivastava,
2001). The act was enforced from 1st April 1948 and is applicable to the whole
of India. It applies to establishments in which 10 or more persons are working,
where power is used and twenty or more persons, where no power is used to
carry on manufacturing process. [Potdar & Patwardhan, 2009].
Provisions relating to health –
Health and medical facilities for workers in factories holds a special

significance. The workers are often exposed to occupational risks such as
humidity, temperature, dampness, suffocation due to overcrowding, lighting at
workplace, noise, vibrations, abnormal air pressure, acids and other
chemicals leading to occupational diseases and other harmful impact on
organs, makes it essential to take effective measures to protect workers from
such exposures and health hazards.
Health of workers has been focused on national and international levels. ILO
in 1927, 1944, 1953, 1959 & 1960 had adopted convention number 25 and
recommendation number 29, 97, 114 & 115 respectively. Through these ILO
has emphasized on sickness insurance, medical care, periodical medical
examination, protecting workers against any health hazards, establishment &
maintenance of highest possible degree of physical & mental well-being of
workers and protection against radiations.
Various committees & commissions setup in India like Royal commission,

1929, Health survey & development committee, 1943, labour investigation
committee, 1946, Dr. Thomas Bedford, 1946, Committee on Labour welfare,
1969 and the National Commission on labour, made observations on the state
of workers’ health in establishments and based on the same made
recommendations like flow of fresh air which would add to the comfort of the
operative & improve his output, general cleanliness of factories, periodic white
wash, maintenance of hygiene – absence of which weakens resistance power
and increases susceptibility to diseases, social insurance to provide medical &
health care in respect of three contingencies – sickness, employment injury &
child birth, protection of workers from dust, organic solvents, scheme for
74
convalescent homes & sanatoria & avoid health hazards by preventive &
curative measures (Srivastava, 2002)
These observations & recommendations have found its way in Factories act,
1948, chapter – 3 across sections 11 to 20, which concerns regarding the
health of workers. The major provisions contained are – cleanliness of
premises (S-11), proper disposal of wastes & effluents (S-12), Ventilation &
maintenance of temperature (S-13), measures for exhaust of dust & fumes (S-
14), standards for artificial humidification (S-15), prevention of overcrowding
(S-16), appropriate lighting (S-17), sufficient supply of drinking water (s-18),
sufficient latrines & urinals to be maintained separately for males & females
(S-19) and adequate spittoons (S-20). All these are to be maintained as
prescribed in the Madhya Pradesh/Chhattisgarh factories rules, 1962 as
contained in rules 20 to 58 (Potdar & Patwardhan, 2009)
Safety Measures –
The onus of safety of workers lies on the occupier and he should be careful
enough to see that the safety provisions contained in the act are complied
with (Kumar, 2011).
Accidents are the outcome of several factors such as psychological,

physiological, unguarded & defective machinery, defective equipment,
hazardous environment, fatigue and boredom. Committee on labour welfare,
1969, also observed that carelessness, ignorance, inadequate skills and
improper supervision also lead to accidents.
Industrial accidents can be prevented by adopting measures such as

regulatory prescription regarding matters like working conditions, the design,
construction, maintenance, inspection, testing and operation of industrial
equipment, training, medical supervision, first-aid and medical examination
and official standards regarding safety (Srivastava, 2002).
Chapter – IV of the act comprises of safety measures from section 21 to 41. It

includes fencing of machinery especially the moving parts (S-21), precautions
to be taken while working on or near machinery in motion (S-22), no young
person to be employed on dangerous machines (S-23), suitable striking gear
and devices for cutting off power (S-24), space for self-acting machine (S-25),
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casing of new machinery (S-26), prohibition of employment of women and

children near cotton openers (S-27), protected hosts & lifts )S-28), lifting
machines, chains, ropes & lifting tackles to be made of sound material and not
to be loaded beyond safe working load (S-29), safe working peripheral near
revolving machinery (S-30), effective measures where any plant or machinery
operates above atmospheric pressure (S-31), properly constructed and
maintained floors, stairs and means of access (S-32), securely covered or
fenced pits, sumps, opening in floors (S-33), no person should be made to
carry excessive weights (S-34), protection of eyes (S-35), precaution against
dangerous fumes & gases (S-36), precautions regarding use of portable
electric light (S-36A), preventive measures regarding explosive or
inflammable dust , gas etc (S-37), the power of inspector to check the
specifications of defective parts or test of stability (S-39), safety of building (S-
40), maintenance of building (S-39), appointment of safety officers (S- 40 B),
and power of state government to make rules to supplement the chapter (S-
41). To add to these provisions chapter IV – A details the provisions relating
to hazardous processes which comprises of constitution of site appraisal
committee (S-41 A), compulsory disclosure of information regarding
hazardous process by the occupier (S-41B), health records and appointment
of the person who can handle hazardous process (S-41C), power of central
government to appoint inquiry committee in event of occurrence of
extraordinary situation in a factory engaged in a hazardous process (S-41D),
central government may lay down emergency standards for enforcement of
suitable standards in respect of such hazardous processes (S-41 E),
permissible limit of exposure of chemical and toxic substances as indicated in
second schedule (S-41F), Workers’ participation in safety management (S-41
G) and right of workers to warn about imminent danger (S-41 H). Madhya
Pradesh Factories Rules, 1962 in chapter IV and through rules 59 to 73-J and
schedules for different industries has prescribed details concerning the safety
norms laid down by the act. (Potdar & Patwardhan, 2009)
Keeping up its concern with health & safety at workplace, Ministry of labour &
employment has framed national policy on safety, health and environment at
workplace. Through this policy government looks forward to develop close
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involvement of social partners to meet the challenges ahead in the

assessment and control of workplace risks by mobilising local resources and
extending protection to such working population and vulnerable groups where
social protection is not adequate. Review of the National Policy and
legislations through tripartite consultation, improve enforcement, compilation
and analysis of statistics; develop special programmes for hazardous
operations and other focus sectors, set up training mechanisms, create
nation-wide awareness, arrange for the mobilisation of available resources
and expertise. The National Policy and programme envisages total
commitment and demonstration by all concerned stake holders such as
Government and social partners. Our goals and objectives will be that through
dedicated and concerted efforts consistent with the requirements of safety,
health and environment at work place and thereby improving the quality of
work and working life (Ministry of Labour & Employment, 2009).
Sriraman (Nd), was of the view that there is need to preserve the good health
of workmen by ensuring safe and healthy working conditions and provide
prompt compensation on account of injury or occupational disease.
Subbarao & Selvakumar (Nd) raised two issues regarding occupational health
& safety management System – Requirements with guidance for use, based
on OHSAS 18000 (BIS, 2007). First it is not popular among corporate
especially SME sector and many corporate don’t see it as competitive
advantage and second, lack of serious research makes it difficult to assess
the impact of OSH policy on reduction of accidents.
Pandita (2008) in his observation on SEZ indicated that government in order

to boost exports and more of FDI applies labour laws (which are equally
applicable) in a lax manner should create a balance between ‘investor
friendly’ and health & safety of workers and should also promote facilities for
comfort & healthy life of workers.
Report of the working group on occupational safety and health for the twelfth
five year plan 2012 to 2017, identified constraints in the existing set up like
implementation of the national policy on occupational safety, health &
environment, need for setting up of an apex body on occupational safety &
77
health, need for strengthening of enforcement authorities and DGFASLI

officials, need for enhancement of OSH skills of key personnel in industry,
need for national data base on OSH and need for OSH management systems
in industry (Ministry of Labour & Employment, 2011).
The above discussion suggest that though government is keen to promote the
health & safety of workers and the efforts are seen through the act,
formulation of national OSH policy and other such steps. However policies
and laws yield results only after implementation and hence there is a need for
‘balanced implementation’ and periodic review to make standard more
pragmatic and equally keeping pace with the international developments.
Welfare
Labour welfare occupies an important place in an industrial society. Many

factors have contributed to the development of enactments relating to welfare.
The philanthropist movement on the condition of workers in the factory, the
Philadelphia Declaration of May 1944, the resolution of 1947 and the
recommendation number 102 of International Labour organisation and
International labour Conference of 1956, influenced Indian government to
frame regulations regarding labour welfare. Post independence, an industrial
truce resolution in 1947 was adopted and above all the Indian constitution and
directive principles of state, particularly articles 41, 42 and 43 have also
emphasized on labour welfare.
Before 1934, there was no law regulating welfare amenities to factory

workers. Factories act, 1934 provided for drinking water facilities and rest
shelters. But owing to several inadequacies, the act was re-enacted in 1948
(Srivastava 2002). Chapter V of Factories Act, 1948 and subsequent
amendments provides for six facilities for furthering the well – being of
workers. (Mallick, 2009). These facilities are detailed as under –
Section 42 – washing facilities – every factory should provide for suitable and
adequate and separate washing facilities for males & females workers
(Mallick, 2009). MP Factories rules, 1962 rule 74 prescribes that the washing
facility should provide soap, wash – basins, shower/taps and regular water
supply throughout the year. (Potdar & Patwardhan, 2009).
78
The report of Royal commission on labour observed regarding washing

facility: workers live in overcrowded areas with inadequate facilities for
washing and especially workers employed in dirty process, the provision for
washing places and water should be must. The observations of committee on
labour welfare and the National commission on labour were on similar lines
(Srivastava, 2002).
Section – 43 Facilities for storing and drying clothes- state government can
make rules regarding provision for place to store clothes not worn during
working hours and for drying of wet clothes.
Section – 44 Facilities for sitting – In every factory suitable arrangements for

sitting shall be provided and maintained for workers who work in a standing
position. This can be utilized during any opportunity for rest or interval which
may occur in the course of their work. If the chief inspector opines that
workers would be able to work efficiently in sitting position, he may order the
occupier to make such arrangements. State government may declare through
gazette notification that such facility may not be applicable to specified factory
or any manufacturing process.
Section – 45 First – aid appliances – every factory shall provide and maintain
readily accessible first-aid boxes which shall be not less than one per 150
workers at any one time. Nothing except prescribed content shall be kept in
the box and it should be kept in the charge of a person responsible. Every
factory wherein more than five hundred workers are normally employed, an
ambulance / sick room of the prescribed size, containing prescribed
equipment and in the charge of medical & nursing staff must be provided.
MP factories rules, 1962 rule number 75 prescribes that first-aid boxes or

cupboards to be marked red cross on white background and shall contain –
dressings of different sizes, and various solutions. Notice bearing the name of
person in-charge of first – aid box and also the nearest hospital and its
contact details should be displayed (Rule 75 A). Rule 76 requires the
ambulance room to be under the charge of a qualified medical practitioner,
assisted by at least one qualified nurse or dresser cum compounder and one
nursing attendant. If the factory works more than one shift, chief inspector
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may looking into other conditions allow the same medical officer for one or all
shifts. This facility should be maintained separate from the factory and should
be used for the purpose of first-aid and rest only. Further the rule also
prescribes various equipments for the ambulance room/dispensary (Potdar &
Patwardhan, 2009).
Section – 46 Canteen – State government may make rules requiring a factory

wherein two-hundred & fifty or more workers are ordinarily employed – a
canteen or canteens to be provided and maintained by the occupier. M.P.
Factories Rule 1962, Rules 77 to 82, requires the construction plan to be
approved by the chief inspector and canteen premises to be built according to
the approved plan which is at least fifty feet from washrooms and any source
of dust or fume. The dining hall shall accommodate at least 30 percent of
workers at a time. The canteen should have adequate utensils, cookery,
furniture and other necessary equipments. The canteen prentice, food & food
material should be maintained in clean & hygienic condition. Food, drink and
other items served the canteen shall be sold on a non-profit basis and the
process charged shall be subject to the approval of the canteen managing
committee. The price to be charged can be calculated including rent,
depreciation, purchase cost, water charges, interest, cost of fuel and wage of
canteen employees. Proper accounts & register pertaining canteen should be
maintained. The managing committee will oversee the smooth functioning of
the canteen. (Potdar & Patwardhan, 2009).
ILO mentioned of canteen facility in recommendation no. 102, adopted in its

39th session held in 1956. The Royal commission on labour in India also laid
emphasis on provision of canteen inside the workplace. The Labour
investigating committee (1944-46) observed that canteen benefits from the
view point of health, efficiency and well-being. This would provide nutritional
balance to otherwise deficient and unbalanced dietary of the workers and also
it will provide cheap and clean food and an opportunity to relax in comfort
near workplace, to save time and trouble of worker. The national commission
of labour recommended that the number of workers for the requirement of
canteen should be brought down to 200. (Srivastava, 2002)
Wanjek (2005) in his work food at work: workplace solutions for malnutrition,
80
obesity and chronic diseases highlight the aspects as to why workers’ nutrition
is important. Workplace meal programmes can prevent micronutrient
deficiencies and chronic diseases. Investments in nutrition are repaid through
reduction in sick days and accidents and an increase in productivity and
morale. As per World Bank estimates that the cost of lost productivity, illness
and death due to malnutrition is US$10–28 billion, or 3–9 per cent of GDP
(Measham and Chatterjee, 1999). The cost of illness due to nutrition (which
includes, obesity, heart diseases, malnutrition etc) are indirectly borne by the
employer. Hence workers’ meal programmes are good for workers, good for
business and good for the nations. Section – 47 Shelters, rest rooms and
lunch rooms – in every factory wherein more than one hundred and fifty
workers are ordinarily employed, adequate and suitable shelters or rest rooms
and a suitable lunch room with provision for drinking water, where workers can
eat meals brought by them, shall be provided and maintained for the use of
the workers. Provided that any canteen maintained in accordance with the
provision of section 46 shall be regarded as part of the requirement of this
sub-section: provided a lunch room exist no worker shall eat any food in the
work room. The shelters or rest rooms or lunch rooms should be sufficiently
lighted and ventilated and be maintained in cool and clean condition. (Mallick,
2009). Rule 83 of MP Factories Rule 1962 lays down standards for shelter or
rest rooms and lunch rooms. The room should be well constructed,
adequately ventilated, furnished with chairs or benches and kept clean with
suitable provision of drinking water (Potdar & Patwardhan, 2009).
Section – 48 Crèches - . In every factory wherein more than thirty woman

workers (Substituted by act 94 of 1976 for “fifty women workers”) are ordinarily
employed there shall be provided and maintained suitable room or rooms for
the use of children under the age of six years of such women. Such rooms
should be well lighted and ventilated, maintained in a clean sanitary condition
under the charge of women trained in child care (aya), with facility for
changing children’s clothes and factory shall provide for free milk or
refreshment and necessary intervals to the mothers employed to feed the
children. Rule 84 to 87 of MP Factories Act, 1962, requires the crèche should
be placed away from fumes, dust and noisy process. Chief inspector can
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exempt the factories where the number of married women or widows does not
exceeds 15 or where the factory works for less than 180 days in a calendar
year or where number of children kept in the crèche was less than 5 in the
preceding year. The crèche building should have a sound construction and
adjoining suitable latrine and a wash-room for washing clothes of children.
The children brought in crèche should be provided with milk and adequate
refreshment and mother should be given work interval of at least 15 minutes in
each period of work to feed the child.
Aravanudan (2010) in her work unbound Indian women @ work, raises the
concern that working women lives in many paradoxes. On one hand there is
legal support extended to her and on another hand the working women
especially the mother stretches herself to strike the right work – life balance
which often is a non – issue for her spouse.
Provision of crèche would help her to continue her career aspirations which
may be more of economic compulsion and equally focus on her role as a
mother in upbringing her children.
Section – 49 welfare officers – in every factory wherein five hundred or more

workers are ordinarily employed the occupier shall employ in the factory such
number of welfare officers (Mallick, 2009). The MP state Factories rule, 1962
prescribes the number of welfare officer (rule 88). If the number of workers
exceeds two thousand one additional welfare officer shall be appointed for
every two thousand workers or a fraction there of over five hundred workers.
Rule 89 enlists the duties of welfare officer. The main duties to be performed
are – to maintain harmonious relations between the management and
workers, grievance handling, helping in determining labour policy, resolve
disputes, fulfillment of statutory requirements, to take care of the welfare
programmes & facilities and to take measures which will serve to raise the
standard of living of workers and in general promote their well-being. The
national commission on labour also observed that the management should
ensure that the officer appointed should discharge the statutory obligation and
should have an aptitude for welfare work (Srivastava, 2002). In Sital Kumar
Hemrajani Vs. JC Mangraram and co. and one other, 1973 the court observed
that not only welfare officer should promote well-being but should also be well
behaved and courteous.
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The welfare officer should possess relevant qualification and the terms of
condition shall be same as any other member of staff of his status in the
factory (Potdar & Patwardhan, 2009).
Section – 50 empowers the state government to make rules to supplement

this chapter.
Provision of leaves - long work hours can lead to fatigues, lethargy,

shattered health, loitering and loafing habits. However, appropriate work hours
not only leads in efficiency but the worker is also able to focus on his family
life, thereby maintaining work-life balance. A thumb rule in human resource
suggests that a person who works on the cost of family is actually
unproductive (Dr. C.P. Shrimali, 2003, September 23). According to Amengual
(Nd), working time was the subject of the first International Labour
Organization (ILO) convention in 1919, which defined a work week as 48
hours.
Chapter VI of factories act deals with the working hours of adults. Section 51
requires no adult worker shall be required or allowed to work in a factory for
more than forty – eight hours in any week. As per Section – 52, no adult
worker shall be required or allowed to work in a factory on the first day of the
week unless he has or will have a holiday for a whole day on one of the three
days immediately before or after the said day. The workers are also eligible
for compensatory holidays in case they are deprived of any of the weekly
holiday (Section – 53). A worker will not work for more than five hours before
an interval for rest of at least half an hour (Section – 55). The work hour of a
worker inclusive of rest interval shall not spread over more than ten and half
hours in any day (Section – 56). Section 57 requires worker to be given a
twenty four hour holiday where worker works on a shift which extends beyond
midnight. Section – 58 prohibits the overlapping of shifts.
Chapter VIII covers annual leave with wages. Section 79 entitles annual leave
with wages to every worker who has worked for a period of 240 days or more
in a factory during a calendar year during the subsequent calendar year and
would be calculated on the rate of – one day for every twenty days of work
during previous calendare year for an adult. If the worker does not take the
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leaves allotted to him during the calendar year then the left over leaves shall
be added to the leave to be allowed to him in the succeeding calendar year.
Section 80 entitles a worker to whom the leave is allowed, wages at a rate
equal to the daily average of his full time earnings preceding his leave
(Mallick, 2009).
Supreme Court in Associated cement staff union Vs. Associated cement co.
(1964) observed on work hour that – hours of work have to be fixed in
consideration of many factors including the question of fatigue, the effect on
efficiency, the physical discomfort that may result from long and continuous
strain, the need of leisure in workmen’s lives, the wage scale and the socio –
economic factors have to be taken in consideration (Srivatava, 2002).
Provision of leaves after stipulated work engagement weekly or annually

would prove beneficial both to the worker and company. Working continuously
without adequate break has its own negative impacts. Many researchers have
studied the impact of working for long hours on health and safety. Working for
long hours on a continuous basis (beyond 8 hours), leads to high stress,
depression, fatigue, confusion and cardiovascular problems, more exposure to
toxic chemicals and noises which may prove to be fatal. Evidence also link
working hours with accidents and injury. As per a study the rate of
accident/injury for the first nine hours of working is constant and the rate of
accident increased as the hours were extended to that the rate of
accident/injury tripled after 16 hours of work. Dembe et al (2005) as a result
of their study suggested that working in jobs with overtime schedules was
associated with a 61% higher injury hazard rate compared to jobs without
overtime. Working at least 12 hours per day was associated with a 37%
increased hazard rate and working at least 60 hours per week was associated
with a 23% increased hazard rate. Strategies to prevent work injuries should
consider changes in scheduling practices, job redesign, and health protection
programmes for people working in jobs involving overtime and extended
hours. Fair Labour Association’s (2011) research, assessments and surveys
over the past two years confirm that excessive working hours have a negative
impact on workers, often resulting in physical and psychological stress and
increased turnover.
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4.5 Contract labour (regulation and abolition) act 1970
India is a dual labour market two categories of workers exist-permanent &

contractual (Neethi, 2008). Contract Labour is a significant and growing form
of employment. It is prevalent in almost all industries, in agriculture and allied
operations and in service sector (Chhabra & Kushwah, 2013). Contract labour
has always been there in India even during the times of British Empire. Low
mobility of workers, issues related to religion, language, caste & demand due
to rapid industrialization led the emergence of middleman who helped in
recruitment & control of workers for their ultimate employers (principal
employer).
Contract labour remained ignored for a long time. Neither the contractor nor
the principal employer cared for contract labour. The Parliament, therefore,
passed the Contract Labour (Regulation and Abolition) Act in 1970 to prevent
the exploitation of contract labour & to improve the conditions of work of
contract labour (Kumari & Malhotra, 2012).
The Contract Labour (Regulation and Abolition) Act, 1970 Act and the
Contract Labour (Regulation and Abolition) Central Rules, 1971 came into
force on 10.2.71. The Constitutional validity of the Act and the Central Rules
was challenged before the Supreme Court in Gammon India Limited Vs.
Union of India 1974-I-LLJ-480. The Supreme Court upheld the constitutional
validity of the Act & Rules and held that there is no unreasonableness in the
measure. The Act & Rules were enforced w.e.f. 21.03.1974.
Through this act the government has put up a concrete step to ensure the
well-being of contractual workers. Chapter – V deals with the welfare and
health of contract labour. Section 16 to section 20 lays down the facilities
of canteen, rest rooms, other facilities like drinking water , latrines and
urinals, washing facilities, first – aid and liability of principal employer in
case these facilities are not provided by the contractor i.e. the onus of
providing the facilities lies with the contractor and in case the contractor
fails to provide such services the principal employer is liable to provide the
same and all expense incurred by the principal employer in providing such
amenities may be recovered by the principal employer from the contractor.
85
The central rules of 1971and the Madhya Pradesh rules of 1973 (rule – 40
to 62) further details & prescribes the facilities mentioned under the act.
Though most of them are similar to Factories Act still the condition in
which they become applicable for contract labour differs. They are listed
as under (only those are detailed where it differs from Factories Act in
terms of workers employed or any other condition) –
The facilities like drinking water, first- aid, washing, latrines & urinals shall
be provided by within seven days in an existing establishment. If a contract
worker is required to halt at night in connection with the working of the
establishment and in which employment is likely to continue for 3 months
or more rest rooms shall be provided which is properly ventilated and
separate room to be provide for women workers. In every establishment to
which this act applies and wherein work regarding the employment of
contract labour is likely to continue for six months and wherein contract
labour numbering one hundred or more are ordinarily employed, adequate
canteen facility with appropriate furniture, utensils and equipment should
be maintained. (Mallick, 2009).
But there are lacuna as identified by researchers for example Chhabra &
Kushwah (2013), through their study found that the act is unclear on
issues like core and non – core activity distinction, prohibition of contract
workers in certain circumstances and “Same work, same wage”
implication.
The term "social security" was first officially used in the title of the United
States legislation — the Social Security Act of 1935. It appeared again in an
Act passed in New Zealand in 1938. ILO as a part of social security includes
social insurance; social assistance; benefits financed by general revenue;
family benefits; and provident funds, together with supplementary provisions
made by employers, and the ancillary and complementary programmes which
have developed around social security (ILO. 1984).
Subrahmania (1994) defined the concept of social security in its broadest

sense, as support provided by the society to the individual to enable him to
86
attain a reasonable standard of living and to protect the standard from falling
due to any contingency.
Friedlander (1959) defines social welfare as follows: "'Social welfare' is the

organized system of social services and institutions, designed to aid
individuals and groups to attain satisfying standards of life and health, and
personal and social relationships which permit them to develop their full
capacities and to promote their well-being in harmony with the needs of their
families and the community."
Evolution of Social Security
Owing to industrial revolution, the conditions of workers both inside the factory
and outside too reached lowest ever. Agents would recruit people from poor
places and would employ them as slaves to the factories. Women and
children were exploited to maximum due to their cheap labour and weak
protest. These workers lived in slums around factories with least of facilities
and protection. The rich grew richer at the expense of the poor. Workers were
at the disposal of owners – whatever they paid; howsoever they dwelt and
located them wherever they wanted.
These unrestricted will and freedom of a group at the cost of other individuals
was severely condemned. It therefore called relevant action in form of the
policy from the state to promote collective good, protection and security
(Yadav, 2000).
The roots of present day social security can be traced to the religious and
cultural beliefs. Many religions have a custom of extending alms or charity to
poor. Judaism, Christianity, Islam (Zakat), Hinduism (Daan) and many other
religions of world promoted it. Later it leads to formation of laws like in 1536,
Parish churches in France were to register and support the poor and the
Elizabeth law of Poor, 1601, created a national system of poor relief based on
tax to be collected by parishes. (De Schweinitz, 1943, cited in Midgley, 1997,
p-4). Contributory income protection programs were introduced in Europe
towards the end of nineteenth century. Lead by Germany, soon many
European nations followed and it spread to the entire continent by the end of
World War II. Towards 1930-35, income protection was introduced in U.S. and
87
some of the Latin American countries like Argentina, Chile and Uruguay.
Lately, as many countries achieved independence from colonial rule, their
governments too introduced such measures (Midgley, 1997).
Such measures are meant to ensure minimum standard of health, economic

security and a living which emerges from collective responsibility of
community towards its weaker or less fortunate members to assist them
during state of need or mishap (Sturmey, 1959). It has lead to the concept of
“Welfare State”. A welfare state as characterized by Briggs, “A state in which
organized power is deliberately used, political and administration; to modify
the play of market forces in at least three directions – first, by guaranteeing
individuals and families a minimum income irrespective of the market value of
their work or their property; second by narrowing the extend of insecurity by
individuals and families to meet certain social contingencies (like sickness,
unemployment) which lead otherwise to individual and family crisis and third
by ensuring that all citizens without distinction of status or class are offered
the best standards available in relation to certain agreed range of social
services” (Briggs, 1961).
India as a welfare state
From the time immemorial, social security has been practiced in India through
joint family, panchayat (guilds) and promotion of the concept of extending
alms to the needful (Sarma, 2005). The joint hindu family as a first line of
defense had a limited ability to cope with the misfortunes. Rigveda, upnishads
have reference to the guilds which adopted collective measures during natural
calamities (Yadav, 2000).
Kautilya’s Arthsastra call for the king to provide for social security to his
subjects and help the unfortunate and handicapped (Tisdell, 2003). He also
prescribed for providing wage to wife, son/sons and to help infant or aged
relatives of the deceased government servant. The king should also help his
servants on the occasion of child birth, sickness and funerals (Jha & Jha,
1998).
“The king shall provide the orphans (bala), the aged, the infirm, the afflicted
and the helpless with maintenance. He shall also provide subsistence to
88
helpless women when they are carrying and also children they give birth to”
(Shamasastry, 1961, P.47, cited in Tisdell, 2003, p- 9).
Chankya while laying duties of king has prescribed benevolent kingship with a
motto to provide comprehensive measure of social security. With the passage
of time and industrialisation, the onus of social security lies mainly with the
state and in a contributory form with the industry. The growth of organised
social security measures in India is recent. Social security legislations in India
comprises of mainly five enactments – Workmen’s compensation Act, 1923,
The employees’ state Insurance Act, 1948, The Employees’ Provident Funds
and Miscellaneous Provisions Act, 1952, The Maternity Benefits Act, 1961
and the Payment of Gratuity Act, 1972. The main provisions of these acts are
under –
Workmen’s compensation Act, 1923
With industrilisation and use of power driven machinery, there had been
increase in danger to workmen. Two measures were prominent in this regard.
First by introducing safety norms (as already discussed under the Factories
Act, 1948) and second security to worker in economic terms should any
accident occur. With such acts in place two fold benefits can be thought of.
First and most obvious, it offers a safety of income during the non-productive
time, so that the worker can be assured and can keep the focus on work and
overall it would make the industrial life attractive and increase the supply of
labour. Second benefit can be that the employer would pay more attention to
safety of workers (rather than legal hassles if accidents occur and
compensating workers thereof).
Rather than relying on generosity of employer and after a detailed

examination of issues in July, 1921, a committee was convened to address
the question in June 1922 and finally it took the shape of Act in 1923 which
came into force on 1st July 1924.
There is no wage limit for coverage of workers under the Act. It does not,
however, apply to (i) persons serving in Armed Forces and (ii) workers
covered by the Employees’ State Insurance Act, 1948.
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As per Chapter II, Compensation is payable under Sub-section (i) of Section 3

of the Act by the employers in the case of injury, caused by an accident
arising out of and in the course of employment, exceeding 3 days. In cases
where the disablement prolongs for 28 days or more, compensation is
payable from the date of disablement. No compensation is, however, payable
if the injury, not resulting in death, is caused by the fault of the worker, arising
from factors such as influence of alcoholic drinks and drugs, willful
disobedience of the workmen to an order or rule, willful removal or disregard
by the workmen of any safety guard or other device, etc. Besides, under Sub-
section (2) of Section 3 of the Act, compensation is also payable to such
workers who contract occupational diseases in the course of their
employment as specified in Schedule-III of the Act. (Mallick, 2009, Labour
Bureau, 2009)
Section 4 of the act describes the amount of compensation payable to a

workman depends on the nature of injury caused by accident, the monthly
wages of the workman, and the age of the worker concerned. In case of death
the minimum amount of compensation fixed is Rs.1, 20,000 whereas it is
Rs.1, 40,000 in case of permanent total disablement. The maximum amount
of compensation payable is Rs.4.56 lakhs in the case of death and Rs.5.48
lakhs in the case of permanent total disablement. (Labour Bureau, 2009)
W.e.f. 31.05.2010, under the maximum compensation limit, the monthly wage
limit of Rs. 4,000 has been increased to Rs. 8,000 (Employee Compensation
Act, No. 1047, Notification: 2010).
The Employees’ State Insurance Act, 1948
With industrialisation and increase in employment in India, issues related to

employment like, health, sickness, maternity, employment injury to workmen
has been the matter of concern. In order to address these issues Employees’
State Insurance Act, came into effect in 1948. This act applies to whole India
and to all factories other than seasonal employing 10 or more workmen. The
act will continue to apply even in case the number of persons employed falls
below the limit specified or the manufacturing process ceases to be carried on
with the aid of power (N.A., 2000).
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All factories and establishment covered under this act need to be registered
as per the provisions of this act and employees working in such factories and
establishment needs to be insured. The corporation shall consist of persons
appointed by Central Government, representatives of – State Government,
Employers, Employees, Medical Profession, Members of Lok Sabha, a
member from Rajya Sabha and the Director General of Corporation (ex-
officio). The corporation shall constitute of standing committee and medical
benefit council.
The corporation may accept grants, donations & gifts from Government local
authority or any individual. This all forms part of ESI Fund. The Fund shall be
spend for payment of benefits, provisions of medical treatment, payment of
fees and allowances to Corporation’s committee and council members,
payment of salary and allowances to its employees, establishment and
maintenance of hospitals, dispensaries and other institutions, the cost of
auditing the accounts of Corporation, cost of Employees’ Insurance Code, and
all other purposes as authorized by the Corporation with previous approval of
Central Government.
Under this scheme the Employer and Employee contributes 4.75% and 1.75%
respectively of the wages. The employer contribution can be deducted from
his or her wages. Under this act the contribution is recoverable as an arrear of
land revenue. Employers may be directed to maintain registers & furnish
returns and it can be asked by the inspectors (Mallick, 2009).
Various amendments in Act have been introduced in 2010. The main amongst
them are –
The government by notification in Gazette extends provisions of this act to

any other establishment or class of establishment, industrial, commercial. The
period of such notice of intention has been reduced from six months to one
month (Section -1, Sub-section (5).
Inspectors under this act would be known as “Social Security Officer (s)”
(Section 45).
Introduction of Section 51 E. “An accident occurring to an employee while

commuting from his residence to the place of employment for duty or from the
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place of employment to his residence after performing duty, shall be deemed

to have arisen out of and in the course of employment if the nexus between
the circumstances, time and place in which the accident occurred and the
employment is established”
Substitution of third proviso in the sub section (3) of section 56 – “Provided

that an insured person who has attained the age of superannuation, a person
who retires under a voluntary retirement scheme or takes a premature
retirement, his spouse shall be eligible to receive medical benefits subject to
payment of contribution and other condition as prescribed”. (The Employees’
State Insurance (Amendment) Act, No. 18 of 2010).
The wage-ceiling limit has also been increased from 10,000/- to 15,000/- per
month. In order to offer hassle free services to its employees have been
issues biometric Pehchan Cards through its computerization project
‘Panchdeep’, one of the largest e-governance projects in the country. This will
enable its beneficiaries to avail ESI services ‘anywhere-anytime’ throughout
the country. Permanent Disablement and Dependants Benefits are being
directly credited to the bank account of the beneficiaries, through ECS
system. ESIC is providing medical benefits to more than 6.64 crore
beneficiaries. The Corporation has one of the largest medical infrastructures
in the country under one umbrella. It has 151 hospitals, 1463 ESI
Dispensaries/ISM Units, 812 Branch Offices/Pay Offices and 61
Regional/Sub-Regional/Divisional Offices. Besides these ESIC also has
empanelment/tie up with private hospitals About 807 implemented centres
and more than 5.80 lakh factories/ establishments located in various parts of
the country are covered under ESI Scheme (Kharge, nd, ESIC Samachar,
2013, ESIC, 2013, Gautam, 2012).
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Benefits to insured person -
BENEFITS & ELIGIBILITY CONDITIONS DURATION & SCALE OF BENEFITS

1 SICKNESS BENEFIT
(a) Sickness Benefit : Payment of contribution for 78 days in Upto 91 days in two consecutive benefit periods
corresponding contribution period of six at 70% of the average daily wages for 91 days in
months a year.
(b) Enhanced : Same as above 14 days for Tubectomy & 7 days for Vasectomy,
Sickness Benefit extendable on medical advice. Rate of payment
100% of the average daily wages
(c) Extended : For 34 specified long term diseases. 124 days which may be extended upto 2 years on
Continuous insurable employment for 2 medical advice during a period of 2 years in
years with 156 days contribution in 4 insurable employment.
consecutive contribution periods. Rate: 80% of the average daily wages aprox.
2 DISABLEMENT BENEFIT
(a) Temporary : From day one of entering insurable As long as temporary disablement lasts. Rate:
employment & Disablement Benefit about 90% of the average daily wages approx.
irrespective of having paid any contribution
for disablement due to employment injury.
(b) Permanent : Same as above For whole life. Rate:
Disablement about 90% of the average daily wages depending
Benefits upon loss of earning capacity.
3 DEPENDANTS' : From day one of entering insurable For life to the widow or until her re-marriage. To
BENEFITS employment & irrespective of having paid dependant children till theage of 25 years. To
any contribution in case of death due to dependant parents for life.
employment injury.
Rate: about 190% of average daily wages
approx. shareable in fixed
4 MATERNITY BENEFIT : Payment of contribution of 70 days in two Upto 12 weeks in case of normal delivery. Up to 6
preceding contribution periods (one year) weeks in case of mis-carriage. Extendable by 4
weeks on medical advice.
Rate: Almost 100% of the average daily wages.
5 MEDICAL BENEFIT : Full medical facilities for self and family from Full medical care till disease or disablement lasts.
day one of entering insurable employment. No ceiling or expenditure. Retired insured
persons who have been in insurable employment
for atleast five years before retirement on
superannuation or under VRS or premature
retirement and Disabled Insured Persons are
entitled to full medical care for self and spouse
only on payment of Rs 120/- as annual
contribution.
6 OTHER BENEFITS
- Confinement An insured Woman or an I.P. in respect of Up to 2 confinements only. Rate: Rs /- per case.
his wife in case of Expenses for confinement
occurs at a place where necessary medical
facilities under ESI Scheme are not
available.
- Funeral Expenses From day one of entering insurable For defraying expenses on the funeral of an
employment. insured Person. Rate: Actual fee charged of Rs
123/- a day whichever is higher.
- Vocational In case of physical disablement due to As long as vocational training lasts. Rate: Actual
employment injury. fee charged of Rs 123/- a day whichever is
higher.
- Physical In case of physical disablement due to As long as a person is admitted in an artificial
employment injury. limb centre.
Rate: 100% of the average daily wages.
- Unemployment In case of involuntarily loss of employment Maximum twelve months during lifetime. Rate:
Allowance due to non-employment injury and the 50% of the average daily wages.
(RGSKY) contribution in respect of him have been
paid/ payable for a minimum of three years
prior to the loss of employment.
- Skill Upgradation Same as above. For a short duration-maximum up to six months.
Training under
(RGSKY)
Source – ESIC Samachar, September, 2013. Page - 18
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Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Employees in government jobs had enjoyed the benefits of retirement,

disability and death. In order to bring such benefits to the industrial workers
EPF & MISC. provisions act was introduced in 1952 w.e.f. 4th November.
Initially the act covered few institutions and only provident fund but later with
amendment of 1995 pension scheme was also added to it. This pension is
available to the employee or his nominee at pre-decided amount per month
(N.A., 2002). Apart from benefits accrued during the non-productive age it
instills the habit of savings in the workman. These small savings although may
appear forced initially and the worker may like to have the cash instead of it
being deposited and to some extent the employer may also favour it for
saving his contribution. But these small and forced savings accumulate over a
period of time into a handsome amount which can be used during the time of
any mishap or any other unforeseen event or in the life after retirement. It not
only provides support to the worker during the non-productive age but also his
dependant to lead a dignified life. (N.A., 2000)
As of 31st March 2013, 7.43 lac establishments, 887.62 lac employees and 44
lac pensioners being paid monthly pension (EPFO, 2013)
This act applies to whole India except J&K covering all factories any other
establishments employing 20 or more persons. The appropriate governments
by notification apply the provisions of this act to any establishment employing
persons less than 20, after giving 2 months notice. As per The employees’
provident funds and miscellaneous provisions (amendment) bill, 2012,
introduced in the Rajya Sabha on 23rd November, 2012, for the word “twenty”
the word “five” shall be substituted in sub-section (3) of Section 1.
An employee is eligible for the contribution if his basic wages does not exceed
Rs 6500 / month, if in case it and this benefit is applicable from day one of his
employment. An establishment to which this act applies shall continue to be
governed by this act even if the number of person employed falls below 20.
As per Section 5 the Central Government lay by notification frame a scheme
to be called as Employees Provident Fund Scheme as per the provisions of
this act. The fund shall vest in and administered by the central board
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constituted under Section 5-A. The central board consists of persons

appointed by central government representatives of state government,
representatives of employers and employees’ representative to which the
scheme applies. The Central Provident Fund Commissioner would be ex-
officio & the accounts of central board shall be audited annually by
Comptroller & Auditor-General of India. An executive committee may be
appointed to assist the central board in its functions (Section-5AA). The
Central Government after consultation with the State Government may
constitute for a State Board of Trustees which would perform duties as
assigned by the Central Government (Section 5-B & C). The Central
Government appoints the officers for the smooth functioning of EPF (Section
5-D).
Under Section 6, as per the amendment dated 22-09-1997, the employee and
the employer both would contribute 12% of the basic wages (either employed
directly or through a contractor). 8.33% out of the 12% of the employers’
share would be transferred to the pension (Section 6-A). If an employee wants
to increase the share in contribution the employer shall not be under any
obligation to pay any contribution over and above his contribution payable
under this section. In order to provide life insurance benefits to the employees
of any establishment or class of establishments to which this act applies,
Central Government made Employees’ Deposit –Linked Insurance Scheme
w.e.f. 01-08-1976. A Deposit Link Insurance Fund was made in which the
employer would contribute 0.5% of basic wages. No contribution is to be
made by employee and employer cannot recover his contribution from
employees’ wages (Section 6-C).
Section 7 provides for determination of money due from employers, escaped

amount EPF Appellate Tribunal and the interest payable by the employer
(simple interest at rate of 12 % or more but not more than the lending rate of
any scheduled bank).
Section 8 provides for the recovery of money due from employers &
contractors and the modes of such recovery. In case of insolvency or a
company being ordered for winding up any amount due towards contribution
are to be paid in priority to all other debts in the distribution of property of
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insolvent or the assets of the company being wound up. Employer cannot
reduce the wages (directly or indirectly) of employee in order to pay for any
contribution or charges under this act or this scheme (Section 12). The
Government may appoint inspectors for smooth functioning of the schemes
under this act and for doing so inspectors can ask for an employer or a
contractor to furnish information as he may consider necessary.(Mallick,
2009) Under Section 17 A, any employee can request for the transfer of his
accounts from one employer to another. The employee can also take loan or
advance from the EPF amount.
The important amendments in the act are -
Inclusion of establishment engaged in manufacture, marketing, servicing of

computer [as defined in clause (i) of sub-section (1) of section 2 of the IT Act
2000 or deriving any output there from or employing it for any type of
processing services including software product companies, Internet and e-
commerce companies, IT services and remote maintenance services, R&D
companies, On- site services companies and off-shore software development
companies. (Employees Provident Funds and Miscellaneous Provisions Act
1952, No. 803, Notification: 2006).
Employer shall provide a copy of forms immediately after joining of service or

at the time of leaving the service to the employee. The returns shall be
submitted in electronic format also to the commissioner. The application of
transfer of PF (as mentioned above) should be send to the commissioner
within five days by the employer once the employee has consented.
(Employees Provident Funds and Miscellaneous Provisions Act1952, No. 199,
Notification: 2012).
Maternity Benefit Act, 1961
Gender discrimination has kept women restricted mostly to household

activities and being dependent. Indian judiciary recognizes that framing rules
that help women to take part in economic activity would go long way in
undoing the so called discrimination, give an independent and respectable
status at home and society. (Anand, 1987) Article 42 of Indian Constitution
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requires that the State shall “make provision for securing just and humane
conditions of work and for maternity relief” (NA, 2007)
Air India had following service norms for Air Hostess (Air Hostess was retired
from service in the following contingencies:
(a) On attaining the age of 35 years;
(b) On marriage if it took place within four years of the service; and
(c) On first pregnancy
These were challenged in Supreme Court (AIR INDIA Vs.NERGESH

MEERZA, 1981 AIR 1829). Management held that given the circumstances
prevailing in India, these are reasonable restriction placed in public interest. If
the bar of marriage or pregnancy is removed it will lead to huge practical
difficulties and as a result corporation has to incur heavy expense to make
arrangements. Honorable court held that this provision is unconstitutional,
void and violative of Article 14 of the Constitution and will, therefore, stand
deleted. After having utilized the services of Air Hostess for four years,
terminating her services on being pregnant amounts to compelling the poor
Air Hostess not to have any children and thus interfere with and divert the
ordinary course of human nature. The termination of the services of an Air
Hostess under such circumstances is not only a callous and cruel act but
an open insult to Indian womanhood the most sacrosanct and cherished
institution. Such a course of action is extremely detestable and abhorrent to
the notions of a civilized society. Apart from being grossly unethical, it smacks
of a deep rooted sense of utter selfishness at the cost of all human values.
Honourable Court went on to add “Whether the woman after bearing children
would continue in service or would find it difficult to look after the children is
her personal matter and a problem which affects the Air Hostess concerned
and the Corporation has nothing to do with the same. These are
circumstances which happen in the normal course of business and cannot be
helped. In these circumstances, the reasons given for imposing the bar are
neither logical nor convincing”.
Supreme Court also added that, Pregnancy is not a disability but one of the
natural consequences of marriage. Thus any distinction made on the ground
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of pregnancy cannot but be held to be extremely arbitrary. The hon’ble court

in its judgment also referred to General Electric Company v. Martha V. Gilbert
in which the U.S. Supreme Court judge Brennan, J. with whom Marshall, J.
agreed, observed as follows:"the record as to the history of the employer’s
practices showed that the pregnancy disability exclusion stemmed from a
policy that purposefully downgraded women’s role in the labour force, rather
than from gender neutral risk assignment considerations. Similarly another
Judge, Stevens, J, while endorsing the view of Brennan, J. Observed "The
case presented only a question of statutory construction, and the employers
rule placed the risk of absence caused by pregnancy in a class by itself, thus
violating the statute as discriminating on the basis of sex, since it was the
capacity to become pregnant which primarily differentiated the female from
the male." (Supreme court of India, 1981, AIR INDIA Vs.NERGESH MEERZA,
AIR 1829)
The Maternity Benefit Act is a comprehensive law covering the employment of

women in certain establishment pre & post delivery (even in case of
miscarriage) to provide benefits to an expecting employed mother. As per
section 2 (2) the act applies to every establishment except those covered
under ESI Act, 1948 (Save the sections 5-A & 5-B). Provisions of maternity
leave apply even to woman working on casual basis or on muster roll on daily
wages and not only to regular female workers.
The provisions of the act restricts employer to employ a woman in any

establishment during the six weeks immediately following the day of her
delivery or miscarriage and no woman shall work in any establishment during
the period (Six week). No pregnant woman shall, on a request being made by
her in this behalf be required by her employer to do any work which is of an
arduous nature or which involves long hours of standing, or which in any way
is likely to interfere with her pregnancy or is likely to cause miscarriage or
otherwise adversely affect her health, during the period of one month
immediately preceding the period of six weeks, before the date of her
expected delivery and at any time during this period of six weeks for which
she does not avail of leave of absence.
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Every woman shall be entitled for the payment of maternity benefit by her
employer at the rate of average daily wage (calculated on the basis of three
calendar months before maternity leave date). The woman shall not be
eligible for such benefit if she has not actually worked for a period of 80 days
in the twelve months immediately preceding the date of expected delivery.
The maximum period for which a woman would be eligible to maternity benefit
shall be twelve weeks of which at least six weeks should be preceding her
expected delivery.
As per section 5- A, Women employed in the factories or establishments to

which ESI ACT, 1948 (34 of 1948) applies, continues to be entitled until she
becomes qualified to claim maternity benefit under section 50 of that act.
Section 5-B, specifies that every woman who is employed in a factory or any
establishment to which the provisions of ESI Act, applies and whose wages
(excluding over time payment) for a month exceeds a amount specified in
sub-clause (b) of clause (9) of section 2 of the Act and who fulfills the
conditions specified in sub-section (2) of section 5, shall be entitled to the
payment of maternity benefit under this act. (Mallick, 2009). Woman entitled
for maternity benefit should give notice in writing and in case of death of
woman, the benefit is payable to nominated person. The woman is also
entitled for medical bonus from employer an amount of Rs.2500/- to 3500/-
(The Maternity Benefit Act, 1961 No. 2374, Notification: 2011).
The Planning Commission's working group which had been asked to review
the Maternity Benefit Act 1961 has recommended increasing the duration of
maternity leave and to incorporate a clause in the Act, saying, "No woman
should be discharged from service during the period of pregnancy on any
pretext." (Singh, 2012)
The participation of women in the workforce is increasing. Drawing women on

the crossroads to choose between work and motherhood is unfair. It follows
that employers must adjust to the fact that women will need to take long
periods off for maternity. This is a small price to pay as a society for bringing
in women into the mainstream of paid labour and creating an independent
identity.
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Payment of Gratuity Act, 1972
The Act is a piece of social welfare legislation and deals with the payment of
gratuity which is a kind of retiral benefit like pension, provident fund etc.
Gratuity in its etymological sense is a gift, especially for services rendered, or
return for favours received.' It has now been universally recognized that all
persons in society need protection against loss of income due to
unemployment arising out of incapacity to work due to invalidity, old age etc.
For the wage earning population, security of income, when the worker
becomes old or infirm, is of consequential importance. The Act accepts, in
principle, compulsory payment of gratuity as a social security measure to
wage earning population in industries, factories and establishments.
(Supreme Court of India, 2004, Ahmedabad pvt. Primary teachers' association
vs. Administrative officer and ors.)
Gratuity is payable to employee after continuous service of five years. Section

2-A, defines Continuous service as – An employee shall be said to be
continuous service for a period if he has for that period, been in uninterrupted
service, including service which may be interrupted on account of sickness,
accident, leave, absence from duty without leave, lay-off, strike or a lockout or
cessation of work not due to fault of employee. Section 2-A, adds that
continuous service would mean if he has worked for 240 days.
As per Section -4, Gratuity is payable to an employee on the termination of his

after five years of continuous service in case of superannuation, retirement or
resignation. Continuous service clause does not apply in case of termination
due to death or disablement (which incapacitates the employee).
In Mettur Beardsell Ltd. Madras vs. Regional Labour Commissioner (Central)

Madras & Others, Madras High Court held that an employee who has put in
service for 10 months and 18 days for the fifth year subsequent to first 4 years
should be deemed to have completed continuous s6rvice of five years.
(Madras High Court, 1998 LLR 1072).
For every completed year of service or part thereof in excess of six months
the employer shall pay gratuity at the rate of fifteen days wages based on last
salary drawn. For the computation of fifteen days wages the monthly wages
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last drawn should be treated as wages for 26 days and not 30 days.
(Supreme Court of India, 1984, Jeewanlal ltd. Vs. The appellate authority
under the payment of gratuity act &o, AIR 1842). As per The payment of
gratuity (amendment) bill, 2012, Bill No. LI introduced in Rajya sabha on 23rd
November, 2012 – “In sub-section (2) of Section 4 of Payment of Gratuity Act,
1972, for the words “at the rate of fifteen days’ wages” the words “at the rate
of thirty days’ wages” shall be substituted”. As per amendment of 2010, in
section 4, the limit has been raised to ten lakhs rupees (from three lakhs and
fifty thousand)” (The Payment of Gratuity (Amendment) Act, No. 15 of 2010).
The gratuity of employee may be forfeited – if the services of such employee

have been terminated for his riotous or disorderly conduct or any such act of
violence or if the services are terminated for any act which constitute an
offence involving moral turpitude, provided such offence is committed by him
in the course of his employment.
The employer should obtain an insurance to cover for the liability for payment
toward gratuity (Section 4A). The employer shall pay the amount of gratuity,
within thirty days and if not paid will be charged a simple interest till the
payments are made. (Section 7 sub-sections 3 & 3 A). The arrears are
recoverable as land revenue (Section 8) and further penalties can be imposed
(Section 9). The gratuity payable under the act cannot be liable to attachment
in execution of any decree or order of any civil, revenue or criminal court
(Section 13).
India’s social security system for the ‘industrial workers’ is the result of
massive movements of industrial workers in the first half of the twentieth
century (John, 2010).The results from the research of Justino (2006) show
that policies that strengthen the social and economic security of the Indian
population have been an important endogenous variable to both the reduction
of poverty and the increase in economic growth in India.
The new moves and developments in terms of IT enabled platforms to extend

hassle free services is a commendable step. But his is one part of delivering
the performance. The other part is inclusion of beneficiary for whom such
101
measures are designed. Covering more people under the security net would
eventually lessen the burden of government, society and individual.
The area of study also included SEZ. This SEZ is the only Green Field multi
product SEZ of India as on date and is spread over an area of more than
1100 hectares of land in Phase I & II. Indore SEZ was notified prior to the
enactment of the SEZ Act’ 2005 and became operational W.E.F. 15.08.2003.
Hence some light is thrown on labour law operations with special reference to
welfare. Almost all of the norms fro Health, safety and welfare given in
Factories Act, 1948 applies to SEZ too. However some relaxation in some
manner is given by states in their respective SEZ policies. (MVIRDC world
Trade Centre, 2002)
As per section 49 (1) of SEZ Act 2005, “nothing contained in this section shall
apply to any modifications of any Central Act or any rules or regulations made
thereunder or any notification or order issued or direction given or scheme
made thereunder so far as such modification, rule, regulation, notification,
order or direction or scheme relates to the matters relating to trade unions,
industrial and labour disputes, welfare of labour including conditions of work,
provident funds, employers’ liability, workmen’s compensation, invalidity and
old age pensions and maternity benefits applicable in any Special Economic
Zones. (The Special Economic Zones Act, No. 28 of 2005).
As per ministry of commerce and industry (department of commerce)

notification of 2006 the developer & co-developer shall abide by the labour
laws locally applicable (SEZ India, 2010)
As per the policy of government of MP regarding labours in SEZ the powers of

Labour Commissioner are delegated to the SEZ Development Commissioner
and there would be an officer of the labour Department under the
Development Commissioner. The powers of State Government under various
Labour Laws for the SEZ would also be delegated to Development
Commissioner. There would be a single reporting format for all SEZ units
which would cover all Labour Laws. Appropriate officials of the Zone would be
designated as Inspectors, Conciliation officers and Registration officers under
102
various Labour Laws to provide single window service. For inspections

relating to worker's health and safety and other Labour Laws, the State
Government would use best international practices by permitting units to get
such inspections done through such accredited agencies (outside Labour
Department) as may be notified by the Government. (SEZ India, 2014),
Many researchers have raised their eyebrows over the issue of labour in SEZ.
For example International Confederation of Free Trade Unions (ITUC) (2011
& 2007), Singh (2009), Pandita (2008), Bose (2006) and many articles in
magazines and newspaper. They have issues concerning delegation of labour
powers to development commissioner, woman workers, notification as public
utility service under Industrial Dispute ACT, restriction on trade unions, land
issues, tax loss to government and inspection system for labour laws. Though
these issues raised are of diverse nature and may not interest us directly but
people have apprehension over labour’s status and labour rights.
However, government has clarified its stand time & again that there was no
relief to special economic zones (SEZs) from labour laws (Economic Times,
2012) and the present research also indicates the perception of workers
towards welfare in Indore SEZ (detailed in chapters to follow).
In order to make working condition more humane, to show workers that

company cares for them and to add to their real income, companies extend
welfare facilities beyond the legislation. It should not be seen as charity rather
its in the business interest of the company. Providing transport facility would
ensure that workers arrive on time and are least prone to any accident on the
highway road. Hence going beyond the statutory norms of welfare will benefit
workers as well as organisations. Some companies do it religiously may it be
children education, medical assistance beyond ESIC, ambulance facility to
worker’s family, excursion just to name a few (Chhabra & Kushwah, 2012).
Details of some of the non – statutory provisions are provided as under -
Co-operative society - the role of cooperative stores / fair shops plays the
role of providing essential daily need items to the works. The main objectives
of the consumer cooperative are – to provide members with quality food
103
grains, cloths and daily needs at a fair price (lower than the market rate), to
protect members from the vagaries of middlemen and adulteration, to save
workers from moneylenders, to develop a habit of mutual cooperation, trust &
honesty (the essence of cooperative) and to ensure the supply of scarce
commodity.
Committee on labour welfare had made suggestions regarding improvement

of consumer co-operative stores. The main among them are – employers
should encourage such cooperatives and government should support such
initiatives, if possible such shops to be located in workers colony and trade
unions should play a positive role in the cooperative movement (Sarma,
2005).
Educational Facilities to workers & their children – Education plays an

important role in accelerating our socio-economic progress (Sarma, 2005).
Providing education to workers can be beneficial to both the parties – to
organisation for the reason that the comprehension of matters relating to
workers may increase and it may lead to a better understanding by workers
and hence a cooperative attitude would develop. They cannot be misled. To
workers – advancement in education would lead them to attain new positions
in organization and give a better life to their family. Thus it would increase
their status and since they would be educated they would understand the
importance of education for their children. Hence it would build a virtuous
circle.
Many organisation extend direct and indirect support to workers in this regard.
Providing library facility – where books, magazines and newspapers would
enlighten the workers, some concessions to workers who have enrolled
themselves for further courses and even suggesting workers some vocational
courses which could help them, in their career progression. Madhya Pradesh
labour welfare board provides scholarship to worker’s children, distributes
copies at a concessional rate (10 copies per child- maximum upto two
children), sweater to girl students are note worth efforts (M.P. Labour Welfare
Board, 2010).
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Loan facility - workers will small incomes may need loan facility for various
purposes like purchase of grains, vehicles, house, sickness, marriage of
daughter/son, ceremony etc. MP welfare board provides extends some help in
terms of Rs. 5000/- for marriage of an employed female worker or marriage of
two daughters, treatment of illness or if the worker meets an accident and to
undergo treatment in government or recognized hospital to a maximum of Rs.
5000/-, Rs. 2000/ - as funeral expenses to the dependant and pension of Rs
500/- to the widower of the deceased worker. These benefits are available to
the workers of the registered establishments and provided no other benefits
are available under any other scheme (M.P. Labour Welfare Board, 2010).
Employers also provide for loan facility to workers which is payable in easy
monthly installments. Employers have different criteria to determine the
eligibility of workers like length of service, worker status i.e. permanent or
contractual, company policy and in many cases need basis.
One may question that with banks and other financial institutions already in
place should employers be extending loan facility? Probably if not money
lenders who charge exorbitant interest rates which drains a significant amount
from workers’ income, the next easiest hassle free and quickly available
option to worker is the employer. The company would have its own policy
regarding loan and repayment which would be known to workers too and
which would be far better than any money lender. Availability of loans from
banks and their ‘procedures’ are well known! Hence a simple rule may
govern a friend in need is a friend indeed i.e you take care of me and I would
be there during your tough times.
Transport - Industrial areas and estates are usually established in the

outskirts or a bit far from the town/cities. In initial years commuting of the
workforce to & fro may be an issue till either workers settle in the worker’s
colonies or public transport system develops which connects to nearby
places. Many companies provide vehicle service to pick up and drop facility to
their employees. Some companies provide conveyance allowance to cover up
the expenses by the worker in commuting. Few companies provide petrol
allowance too (Durai, 2010). Providing transport ensures that workers arrive
safely and on time in the premises and reach home safely back. According to
105
ILO’s Recommendation no. 102, “Wherever necessary, undertakings should

arrange for adequate transport facilities to be available, either through the
services of public transport or otherwise, to meet the needs of shift workers at
times of the day and night when ordinary public transport facilities are
inadequate, impracticable or non-existent”. (ILO, 1956)
Recreation Facilities - All work and no play made jack a dull boy. Recreation
facilities like sports, arts, painting, reading and cultural programs are being
provided by companies. Though there is no statutory setup in this regard but
many employers provide for recreation facilities (Kumar, 2011). Recreation facility
brings in a sense of discipline and a climate for industrial peace and harmony
(Sivarethinamohan, 2010). Many researchers have indicated that physical
activities can boost employees’ performance (Rulistia, 2012). Mokaya &
Gitari (2012), in their research on effects of workplace recreation on
employee performance found that the main reasons for engaging in recreation
at workplace were to relax mind and feel great, reduce stress and improve
concentration, build confidence and self-esteem, and improve health.
Workplace recreation has a positive influence on employee performance
variables; job satisfaction (92%), quality of service and customer satisfaction
(72%) and enhanced productivity (77.5%). Participation in recreational
activities was found to be useful in the management of work-life balance with
a correlation of 0.61. Job satisfaction correlated highly with performance at
0.55. Employees view recreation as a form of intrinsic reward; providing a
means of pleasure and enjoyment. The study concluded that recreation is a
significant factor in employee performance; increases the level of
commitment, enhances bonding and improves employee wellbeing with a
consequent positive effect on job satisfaction, service provision, customer
satisfaction and productivity. Therefore, organizations should offer recreation
facilities and activities that are of interest to employees bearing in mind their
different tastes, gender and age among other considerations in order to
enhance employee performance.
As per ILO’s Recommendation no. 102 regarding the welfare of workers

“appropriate measures should be taken to encourage the provision of
recreation facilities for the workers in or near the undertaking in which they
106
are employed, however the workers should not be under any obligation to
participate in the utilisation of any of the facilities provided” (ILO, 1956). Just a
word of caution attached – the facilities like gym, swimming and other facilities
should be made available within the premises only under supervision. A ruling
by Tennessee Supreme Court regarding Worker's Compensation case in
Anderson County where an employee died from a heart attack that doctors
linked to a basketball game he played on company property during his break
indicates that companies should be cautious in providing on-site recreation
facilities (National Organisation of Injured Workers, 2008)
Housing - Recommendation No. 115, 1961 of ILO applies to housing facility

for workers & their families at a reasonable cost. (Vaidyanathan, 1992).
Government in order to bring in a regional balance has identified the so called

sub-urban or rural areas for the formation of industrial clusters and industrial
estates. These areas may be away from the nearby town/city where facilities
are available. The companies setting up operations need to develop housing
provisions for two clear benefits – 1. To attract the workforce from outside
areas, 2. These colonies make sure the availability of workers in case of any
emergency or a smooth supply of workers.
The subsidised industrial housing scheme was at first "approved for industrial
workers governed by the Factories Act. Under the industrial housing scheme
loans and grants are given by the Central Government to State Governments
and public authorities, to employers and to co-operatives of industrial workers
(Planning Commission, Nd)
As per Madhya Pradesh Housing & Habitat Policy - 2007, If Small Industrial
units jointly develops worker’s colonies, then government would provide land
for the purpose (if available), pollution free establishment with workforce of
200 or more shall provide for housing facility for workers within the premises,
housing board will develop housing facility for workers near industrial area on
the land provided at concessional rates by the government and AKVN will
develop & extend township and roads to connect to nearby cities for service
population except for industrial growth centre or SEZ (Housing and
environment department, 2014).
107
The Madhya Pradesh Housing board Act of 1951 authorizes the board to
undertake and execute approved housing schemes for construction of houses
for the industrial workers and to take measures to cheapen the construction of
building (Agalgatti, 2008)
According to G. B. Singh Chief Consultant - System Building Technologists

(2010), government should promote planning and development of industrial
estates along with appropriate labor housing colonies serviced by necessary
basic services
Chhabra & Kushwah (2012) indicate in their research that most of the workers
and HR also agrees that given better opportunity in terms of salary, workers
will switch but welfare beyond norms would be an added advantage in
building ‘loyalty’. All companies would be doing what is required by law, so
the differentiating aspect will be these facilities which are beyond the purview
of legal requirements. Extending welfare facilities- the ‘act of goodness’ to
workers’ family has its own benefits as reaped by few companies who
practice it. Companies organize activities for workers family like picnic, outing,
cooking classes for housewives and many other such events and
competitions for the families. This bond with family has helped the company
to resolve issues relating to workers’ unrest and even their decision to quit.
As per the ILO’s Labour Inspection Convention, 1947 (Recommendation

No. 81), Article 2 - “The system of labour inspection in industrial workplaces
shall apply to all workplaces in respect of which legal provisions relating to
conditions of work and the protection of workers while engaged in their work
are enforceable by labour inspectors” (ILO, 1947).
The primary function of the labour enforcement machinery headed by the

Chief Inspector is to ensure enforcement of statutory provisions with respect
to health, safety, welfare, minimum wages, and other benefits accorded to
workers under various acts and can impose penalties ranging from
imprisonment to fines (Sarma, 2005, Legal India, 2009).
108
Richthofen (2002) has identified three models for labour inspection: a central
authority at federal level, separate central authorities at each unit and a
combination of these two.
India appears to be in the first subgroup. Occupational safety and health

inspectorate operated by central government for the entire country and labour
inspectorates operated by the state governments under their own respective
ministries responsible for labour & social affairs.
India has a complex labour administration system in which a variety of labour

inspectorates ensure compliance of more than 150 laws at both the central
and provincial (state) levels (ILO, 2010).
Inspection systems at the centre include Chief Labour Commissioner

Organisation that is mainly responsible for establishments falling under the
central sphere. Other major agencies entrusted with inspection responsibilities
include: Directorate General of Labour Welfare, Employees Provident Fund
Organisation, Employees State Insurance Corporation, Director General
Mines Safety. State governments ensures the enforcement of around 40
Central Laws and also around 10-15 State Laws. Inspections under the
various central and state enactments are mainly carried out by Labour
Officers or designated inspectors (VVGNLI, 2010).
Labour acts in India generally have the concept of inspection as one of its
ingredients. Factories Act, 1948 chapter II details the inspecting staff. Section
– 8 authorises the state government to appoint as many additional chief
inspectors, joint chief inspectors and deputy chief inspectors and as many
other officers as it thinks fit to assist the Chief Inspector for the smooth
functioning and would be treated as public servant within the meaning of IPC
(45 of 1860). Section – 9 empowers the inspector to make examination, hold
inquiry, look into the registers, take measurement, photographs and ask for
any documentary evidence required within the local limits for which he is
appointed. Such provisions of inspections are also laid under various acts
(Mallick, 2009).
Besides these statutory duties many countries have entrusted other functions
to labour inspectors for example In Niger and Costa Rica, labour inspectors
109
have teaching duties in schools and training centres with an aim to familiarize
students with aspects of their future working conditions and employment
relationships. In Bulgaria placement services are supervised by labour
inspectors. In Tunisia they verify the industrial relations and employment
clauses of procurement contracts of the State and public bodies. (ILO, 2006).
The general process of inspection includes obtaining statements of workers,

checking records and registers and interactions with Trade Unions and
Employer. In central sphere majority of inspections are suo moto whereas
state inspections are complaint based (VVGNLI, 2010).
In Madhya Pradesh, enforcement of the various labour legislations is mainly

carried out through the 52 Labour Offices and 11 Industrial Health & Safety
Offices. For effective functioning of the enforcement wing, the inspections in
establishments are streamlined in such a way that there should not be any
hindrance on the industrial production or commercial activity of the
establishment. No unnecessary inspections are carried out in the State
without a valid reason. Inspections are ordinarily made only on the basis of
complaints from the trade unions, workers, public or the media, that too in a
systematic and controlled manner (Madhya Pradesh Labour Commissioner,
2014). Almost similar things were echoed by Mr. R G Pandey, Deputy Labour
Commissioner, Indore in a conversation in 2012 “The attitude of government
is to balance labour and industry in the sense that on one hand industry
should not be discouraged and on the hand the compliance of labour laws
and welfare of labours has to be ensured”.
Despite these systems and procedures several questions are being raised on
the inspection machinery and methods for example Dr Priya Deshingkar, a
research fellow at the London-based Overseas Development Institute, in her
study points that “On its own, the Indian labour inspection system [laws,
regulation and the labour inspection machinery] is not effective in improving
labour standards”(Ghosh, 2009).
The inspection faces many challenges like lack of resources in terms of the
availability of staff, training of the staff and staff being under paid. The
resources available to staff are meager thereby raising two issues of
110
personnel strength and material resources. The tables given below give us
the glimpse of the issue.
Number of Factories registered and Inspected in Madhya Pradesh – 2008.
No. of Factories No. of Percentage of Factories

on Factories Inspected to Factories
Registered
Register at the end Inspected
of
the year
13543 2721 20.09
Source - Indian labour year book 2009 and 2010, Labour Bureau table 9.01 [c] page
169
Factory inspectors, factories and workers in the state of Madhya Pradesh
Total No. of Estimated Factories Workers per

working Factories Average per Inspector
strength of Daily Inspector
factory Working Employment
inspectors in 2002 in 2002
in 2001
35 7806 392278 223 11208
Source – Sundar (2010) Table 4.2 page – 117
Factories Inspection staff in Madhya Pradesh in 2001
Total Total Percentage

Sanctioned working of Total
Strength Strength Working to
total
sanctioned
43 35 81.4
Source – Pais (2008: Table 4.3, p.76) as refered in Sundar (2010) Table 4.3 page –
118
111
Though some this data may date back to a decade ago (as no recent data
was available) but it gives a glimpse of the issue of labour department being
under staffed not only in the state but in many states of the country.
With the advent of global village the manufacturing facilities are

geographically widespread. Given the shortage of manpower, the labour
department finds it difficult to access places and inadequate resources such
as transport adds to it. As stated above the inspections carried by the state
are mostly complaint based – trade unions raise their voices against labour
department of inspections carried being inadequate if not biased. Serious
allegation of corruption, nepotism, accepting festival gifts, harassment,
intimidation, unreasonable and unethical practices have been levied on labour
officials (Kumar, 2013, Singh, 2011, Times of India, 2009).
This is part one of the issue that raises questions on the working of labour
department. In the other part we go to post inspection. The data generated
from inspection and the overall labour statistics suffers from several
shortcomings like poor response by the companies, absence of well
developed administrative network, delay in compilation of data in the ‘correct
format’ (Sundar, 2010). This delays the compilation of state data into a
national data and even if it is published several states’ data are not included
either for non – submission or submission in an incorrect format. In a ‘recent’
publication of statistics of factory 2010 by Labour bureau, information from ten
states is not included because either the states did not submitted the returns
despite repeated reminders or have submitted defective returns (Labour
Bureau, 2010, p- 10)
In India, several committees and studies (panel on labour policy by planning

commission, second plan, fourth plan, the factory labour commission, Royal
commission on labour, The labour investigating committee, committee on
labour welfare, National commission on labour) have constantly indicated the
deficiencies in the enforcement machinery and have suggested ways to
improve the inspection system.
Since problems are known we should move with taking concrete steps – at
least one at a time rather than waiting to revamp the whole system. Our own
112
experiences, global outcomes and international practices can be used as a

guiding star. Globalization, new technologies, new mechanism of doing
business (outsourcing) and international practices call for balance of business
and labour interests, simplification of process to make it more pragmatic and
most importantly moving from the philosophy of ‘enforcement to
empowerment & education’ because in enforcement we believe that if we
don’t oversee people will flaunt and manipulate but in latter we create an
environment of trust and belief through self disclosure and educate both the
parties of their privileges and duties.
4.11 Need to relook - the way forward and Conclusion
Several researches carried out by individuals, national & international

institutions have raised the issues on Indian labour laws being archaic, have
brought in rigidities in the labour market, issues rather subject matters are
shattered in bits & pieces over different act like ESIC also covers maternity
benefits, wages etc, different acts similar information but different formats,
(Debroy, 2001), women participation in the workforce (Jamwal & Gupta,
2010), varying degree of implementation in different organizations (Sheoran,
2013), laws not been very effective in providing the stipulated benefits even to
workers covered by them (Jha, Golder and Panda, 2012) and may have
actually hurt them ( Basu, 2005), much variation across States (Debroy,
2012), laws being excessively pro-workers (Datta & Sil, 2007), adverse affect
of labor on firm size (Hasan & Jandoc, 2012), lack of incentives for non-
violation (Punj, 2011) and problems with its implementation ( Balakrishnan,
2009)
The issues raised above call for reforms in labour laws. Reforming laws will
bring in more employment & would shift unorganized to organized, as our
employment elasticity of GDP is 0.15. (Sabbarwal, 2005). Labor reforms are
considered to be one of the most politically-difficult reforms that need to be
implemented in India, but there are areas in which useful progress can be
made. For example, the less controversial labor reforms (such as unifying and
harmonization of statutes, and reducing the procedural and transaction costs)
can be carried out with relative ease, and the irrelevant laws can be
eliminated or simplified. For the more contentious regulations, it might
113
perhaps be useful to move them fully to the state list. Allowing the firms
flexibility in conditions under which workers can be reassigned to other tasks;
or allowing for provisions for the speedy resolution of worker-management
disputes might also be easier to carry out. To make the changes in labor
market regulations politically more acceptable the Chinese experience might
offer some useful lessons for India. The large scale labor market reforms and
the large restructuring of public sector enterprises in China were carried out
simultaneously and the sequencing of related reforms, such as social security,
pension reforms etc., was calibrated carefully. Importantly the local and
provincial governments were allowed to carry out the reforms as they deemed
appropriate. It served two purposes, first the programs could be tailored to the
needs of specific geographical areas and industries; and second, opposition,
if any, was localized and could be addressed at that level rather than it
derailing the whole process.
We are looking forward to ‘inclusive growth’, which may not be possible

without updating laws and simplification of procedures. Government should
not only play the role of ‘regulator’ rather it should be ‘facilitator’.
This chapter critically looked into the major labour enactments covering the
welfare. Factories act, 1948, governs the service conditions and employment
in terms of health and safety norms, welfare, provision of work hours and
leaves. Similarly contract labour act also specifies the work conditions and
employment of contractual labours which are more or less similar to factories
act with contractor being the first point of providing them and then the
principal employer. Social security measures which are mostly contributory in
nature ensure the availability of benefits during the non-productive age due to
disability, death and retirement. Such measures not only provide the much
needed support during the time of need but give the worker and the family to
pass the rest of life with dignity. Working for long hours has proven to have
negative impact on workers psychological and physical health. It also
decreases the attention and the worker becomes more prone to accident and
other problems. Hence the provision for working hours and leaves has been
introduced to break the monotony and relax workers of the work related strain.
Weekly and annual leaves provide the much needed break to the workers and
114
they get time off to look into themselves, their family and social engagements
and come refreshed to the work. Employers out of their philanthropy and to
attract and retain workers provide voluntary or statutory measures which are
largely based on ILO’s recommendation of extra mural welfare activities.
Health and safety of workers is of prime importance to all the parties
concerned because it’s the matter of life and death. A healthy workforce
would have several advantages to offer like less absenteeism, more
productive, less cost to company in terms of compensation, legal hassles and
negative image in employment market which would make hiring and retaining
workforce more difficult.
However many researchers found that Indian labour laws need overhauling
and reforms to make the current industries more competitive and attract fresh
investment.
115
5. LABOUR WELFARE IN PRACTICE ………..……… 116 - 161

5.3 Leaves (Weekly & Annual Leaves)

5.6 Discussion
5.7 Conclusion
CHAPTER - 5 :` LABOUR WELFARE IN PRACTICE
LABOUR WELFARE IN PRACTICE
In order to analyse the labour welfare practices in the area of study, the
questions were grouped within five different categories – statutory welfare
provisions (based on acts), non – statutory welfare measures, social security,
health & safety and leave. This was further sub categorized (as detailed in
chapter 2 – under research methodology). Data was collected from 632 workers
and the analysis is presented below on the basis of these broad categories &
sub – categories.
The statutory benefits as detailed in chapter 4 were studied to find out workers’
perception regarding the facilities provided to them. The analysis of the sub –
categories and individual items under these sub categories is as follows.
Washing facility – Factories act has provision for washing i.e. a place where the
workers can wash him after the work before leaving for the home. Separate
facility for male & female (if the factory employee female) and provision for
drying wet clothes and place for keeping clothes which are not worn during the
work hours. The collected data has been presented in the table 5.1. and
subsequent charts – 5.1.1 – 5.1.4 and its analysis is given below.
Table No – 5.1 Washing Facility
Facility \ Response Strongly Disagree Neutral Agree Strongly

Disagree Agree
196 135 17 166 118

Facility for washing
(31.0) (21.4) (2.7) (26.3) (18.7)
Separate washing facility for 259 154 19 121 79
male and female workers (41.0) (24.4) (3.0) (19.1) (12.5)
172 104 13 156 187

Availability of water
(27.2) (16.5) (2.1) (24.7) (29.6)
58 60 15 280 219
Place for keeping clothes
(9.2) (9.5) (2.4) (44.3) (34.7)
The figures in parentheses indicate percentage.
Source – Author’s Calculation
116
Chart No - 5.1.1 Facility for washing

118
196 Strongly Disagree
Disagree
Neutral
166 Agree
Strongly Agree
135
17
It can be depicted from table 5.1 and chart 5.1.1 that around 52% workers either
strongly agree or disagree regarding the facility for washing is not adequate.
Another 45 % strongly agree or agree regarding the facility for washing facility
being adequate.
Chart No - 5.1.2 Separate washing facility for male and

female workers
79
Strongly Disagree
Disagree
259
121
Neutral
Agree
19
Strongly Agree
154
117
Chart No. – 5.1.2 reveal that 65% either strongly disagree or disagree regarding
a separate facility for washing i.e. separate for male & female. Around 33 %
workers either strongly agree or agree that companies in which they are
employed have separate washing facility to be used by males & females and are
labeled accordingly.
Chart No - 5.1.3 Availability of water
172
Disagree
Neutral
Agree
104 Strongly Agree
156
13
As per chart no. – 5.1.3, 44% of workers either strongly disagrees or disagrees
and feels that availability of water for washing purpose is not adequate
throughout the year whereas 54 % strongly agree or agree and were not having
issues regarding supply of water for the purpose.
Chart No.- 5.1.4 Place for keeping clothes
58
219
15 Disagree
Neutral
Agree
Strongly Agree
280
118
As evident from chart no. – 5.1.4, a good percentage of workers either strongly
agrees or agrees to the space availability for keeping clothes and/or other
belongings (79%). 19% either strongly disagree or disagree regarding such
facility in the company.
From the above finding it can be summarized that since more than half of the
respondents perceive washing facilities to be inadequate hence companies need
to improve on the washing facilities as and where they are lacking, so that
workers can clean themselves and do not carry back un-cleanliness to their
homes.
Shelter/ Rest rooms– The analysis of availability of shelter, quality of shelter or

rest rooms (hygienic, temperature) and proper sitting arrangement is presented
in table no – 5.2 and through charts 5.2.1 – 5.2.3
Table No. – 5.2 Shelter/ Rest rooms

Disagree Agree
Availability of Shelter or 62 70 16 271 213
rest rooms (9.8) (11.1) (2.5) (42.9) (33.7)
Quality of Shelter or rest 61 73 11 272 215

rooms (9.7) (11.6) (1.7 ) (43.0) (34.0)
16 23 7 311 275
Sitting Arrangement (49.2)
(2.5) (3.6) (1.1) (43.5)
119
Chart No - 5.2.1 Availability of Shelter
62
Strongly Disagree
70
213 Disagree
16 Neutral
Agree
Strongly Agree
271
Chart – 5.2.1 shows that most of the workers either strongly agrees or agrees
that adequate shelter or rest room facility is available (77%). 21 % workers either
strongly disagrees or disagrees regarding the adequacy of such facility. This
includes those workers either to whom such facility do not apply or is inadequate
as perceived by the workers.
Chart No. - 5.2.2 Quality of Shelter
61
Strongly Disagree
73
215
Disagree
11
Neutral
Agree
Strongly Agree
272
120
It is exhibited from chart 5.2.2 that almost same numbers of workers as shown in
chart 5.2.1 i.e. 77% either strongly agrees or agrees that the shelter or rest room
is well lighted, ventilated and maintained in cool & clean condition. 21% either
strongly disagree or disagree with the quality of shelter/rest room. It includes
workers to whom either these provision do not applies and hence don’t have any
say on the quality of shelter or rest rooms or they perceive that its not well
maintained.
Chart No. - 5.2.3 Sitting Arrangement

16 23
7
Strongly Disagree
Disagree
275
Neutral
Agree
311
Strongly Agree
As per chart no. – 5.2.3, around 93% of workers either strongly agrees or agrees
availability of adequate sitting arrangement which they can use whenever they
get chance to rest. This includes the work which can be done in sitting position.
It can be inferred from the above analysis that those companies whom such
provision applies should maintain the rest room facility and appropriate sitting
arrangements as such facilities are primarily meant for resting and relaxing.
These facilities will alleviate fatigue of workers and increase their efficiency.
Medical Facility – to meet out causality at work the act requires first aid, sick
room, Medical officer based on the number of workers employed and in case of
serious injury the worker is taken to hospital as a practice of company. The data
is presented in table 5.3 and through charts – 5.3.1 to 5.3.4.
121
Table 5.3 – Medical Facility
Facility \ Strongly Strongly

Disagree Neutral Agree
Response Disagree Agree
4 6 2 176 444
First – Aid Facility (0.6) (0.9) (0.3) (27.8) (70.3)
38 50 4 230 310
Sick room
(6.0) (7.9) (0.6) (36.4) (49.1)
27 19 12 269 305
Medical officer (3.0) (1.9) (42.6) (48.3)
(4.3)
Worker is taken to
2 1 1 176 452
hospital.
(0.3) (0.2) (0.2) (27.8) (71.5)
Chart No. - 5.3.1 First - Aid Facility

4 6 2
Strongly Disagree
176
Disagree
Neutral
Agree
444 Strongly Agree
Chart – 5.3.1 testifies as 98 % either strongly agrees or agrees with the first – aid
facility in company. Needless of the legislation, which require one first aid box
per 150 workers almost all companies maintain first – aid boxes.
122
Chart No. - 5.3.2 Sick Room
38
Strongly Disagree
50
4
Disagree
Neutral
310
Agree
230 Strongly Agree
The act also requires availability of sick room in factories employing five hundred
or more workers. Chart 5.3.2 present that 85% workers either strongly agrees or
agrees regarding the facility of sick room. The rest 14% either strongly disagrees
or disagrees because either this provision does not applies because of their
strength or is inadequate.
Chart No. - 5.3.3 Medical Officer
27 19
12
Strongly Disagree
Disagree
Neutral
305
Agree
269
Strongly Agree
123
Chart no. – 5.3.3 depicts that most of the workers (91%) either strongly agrees
or agrees medical officer is available or can be called during work hours usually
during general shift.
Chart No. - 5.3.4 Worker is taken to hospital
2 1 1
Strongly Disagree
176
Disagree
Neutral
Agree
Strongly Agree
452
As evident from chart no. – 5.3.4, 99.3 % workers either strongly agrees or
agrees that in case of any emergency or a major mishap it is preferred to rush
the worker to the nearest or emplaned or ESIC hospital.
It is evident that companies are doing well on the front of providing medical aid to
the workers. This would save companies from further hassles and would comfort
the worker during ailment. However some percentage feels that medical facility
is inadequate (may be based on the workforce strength and company practice).
Canteen Facility – Table no – 5.4 and charts – 5.4.1 – 5.4.3 present the data
followed by the analysis regarding food / snacks available at concessional rate,
sitting arrangement in canteen and drinking water.
124
Table No – 5.4 – Canteen Facility

Food / snacks
56 77 6 229 264
available at
(8.9) (12.2) (0.9) (36.2) (41.8)
concessional rate
32
Sitting arrangement 65 1 241 293
in canteen (5.1) (10.3) (0.2) (38.1 ) (46.4)
3 3 2 152 472
Drinking water (0.5) (0.3) (24.1) (74.7)
(0.5)
The figures in parentheses indicate percentage
Chart 5.4.1 Food / snacks at concessional rate
56
Strongly Disagree
77
Disagree
264 6
Neutral
Agree
Strongly Agree
229
78% workers either strongly agrees or agrees regarding canteen facility where
food/snack is available at concessional rate and/or free (mostly concessional).
21% workers either strongly disagree or disagree with such provision.
125
Chart - 5.4.2 Sitting arrangement in canteen
32
1
Disagree
293 Neutral
Agree
Strongly Agree
241
As evident from chart – 5.4.2, 85% workers either strongly agree or agree that
the sitting arrangement in canteen is adequate as per total workers employed in
a shift. 15 % workers either strongly disagree or disagree that the sitting
arrangement in canteen is inadequate. This may include workers who don’t have
such provisions or its actually not adequate.
Chart - 5.4.3 Drinking Water
3 3 2
Strongly Disagree
152
Disagree
Neutral
Agree
Strongly Agree
472
126
As per chart 5.3.4 almost 99% workers either strongly agree or agree that
drinking water facility is available throughout the year. However the quality of
supply may differ from RO to water purifier to tap to normal to water cooler.
It can be inferred that if organisation is obliged to maintain canteen facility it

should make appropriate sitting facilities and food/snacks should be available on
concession, however more than 80% agreed to it. This would relieve the worker
of inflationary pressure at least a bit.
Labour Welfare Officer – Legislation requires one labour welfare officer on

every five hundred workers. The data regarding the work of labour welfare officer
is shown in table 5.5 and chart 5.5.1.
Table 5.5 Labour welfare officer
Strongly Strongly
Facility \ Response Disagree Neutral Agree
Disagree Agree
Labour welfare officer

156 59 24 256 137
carries welfare
(24.7) (9.3) (3.8) (40.5) (21.7)
programmes
Chart - 5.5.1 Labour welfare officer carries welfare

programmes
Strongly Disagree
137 156
Disagree
Neutral
59 Agree
24 Strongly Agree
256
127
Around 62% workers either strongly agree or agree that welfare officer takes
care of the welfare programmes. Another 34% either strongly disagree or
disagree that the welfare officer does not take care of the welfare programmes
properly. The response includes those companies which are not covered under
this provision and / or workers feel that welfare officer is not carrying the welfare
work to their level of satisfaction.
Crèche Facility – Given that crèche applies when number of female workers is
thirty or more, the companies employing females are limited due to the nature of
work. The data regarding crèche facility and availability of aya is given in table
5.6 and charts 5.6.1 and 5.6.2 and analysis follows it.
Table – 5.6 Crèche Facility
Strongly Strongly
Disagree Agree
336 99 26 135 36
Crèche
(53.2) (15.7) (4.1) (21.4) (5.7)
336 102 34 115 45

Availability of Aya
(53.2) (16.1) (5.4) (18.2) (7.1)
Chart No. 5.6.1 Crèche
39
Strongly Disagree
141 Disagree
Neutral
327
Agree
27
Strongly Agree
98
128
Almost 70 % workers either strongly disagree or disagree regarding crèche

facility. Only to 27% either strongly agree or agree of such facility for children
below 6 year as shown through chart no. – 5.6.1. This facility is dependent on
the number of females employed and another may be the actual availability.
Chart No. 5.6.2 Availability of Aya
46
Strongly Disagree
121 Disagree
Neutral
328
Agree
35
Strongly Agree
102
The crèche facility is required to maintain with aya to take care of the children
brought. Chart 5.6.2 reveal that only 25% either strongly agree or agree that aya
was available whereas majority i.e. 69% of workers either strongly disagree or
disagree regarding the maid/aya. It can either the case that no garden and
hence no gardner (since no crèche in major cases) or crèche may be without the
aya facility.
It may be concluded that since companies may not employ female upto a
stipulated level as required by law and hence the provision does not applies to
them, but to the companies to which this applies should provide facility in its full
fledged form as mandated. This would lower the anxiety of a working mother and
she would be more dedicated towards her work.
129
Table no. – 5.7 Statutory Welfare Consolidated

Disagree Agree
Facility for washing 196 135 17 166 118
(31.0) (21.4) (2.7) (26.3) (18.7)
Separate washing facility
259 154 19 121 79
for male and female
(41.0) (24.4) (3.0) (19.1) (12.5)
workers
172 104 13 156 187
Availability of water (16.5) (2.1) (24.7) (29.6)
(27.2)
Place for keeping & 58 60 15 280 219
drying clothes (9.2) (9.5) (2.4) (44.3) (34.7)
Availability of Shelter or 62 70 16 271 213
rest rooms (9.8) (11.1) (2.5) (42.9) (33.7)
Quality of Shelter or rest 61 73 11 272 215
rooms (9.7) (11.6) (1.7) (43.0) (34.0)
16 23 7 311 275
Sitting Arrangement (3.6) (1.1) (49.2) (43.5)
(2.5)
4 6 2 176 444
First – Aid Facility (0.9) (0.3) (27.8) (70.3)
(0.6)
38 50 4 230 310
Sick room
(6.0) (7.9) (0.6) (36.4) (49.1)
27 19 12 269 305
Medical officer (3.0) (1.9) (42.6) (48.3)
(4.3)
Worker is taken to
2 1 1 176 452
hospital.
(0.3) (0.2) (0.2) (27.8) (71.5)
Food / snacks available at 56 77 6 229 264

concessional rate (8.9) (12.2) (0.9) (36.2) (41.8)
Sitting arrangement in 32 65 1 241 293

canteen (5.1) (10.3) (0.2) (38.1) (46.4)
3 3 2 152 472
Drinking water (0.5) (0.3) (24.1) (74.7)
(0.5)
Labour welfare officer
156 59 24 256 137
carries welfare
(24.7) (9.3) (3.8) (40.5) (21.7)
programmes
336 99 26 135 36
Crèche
(53.2) (15.7) (4.1) (21.4) (5.7)
336 102 34 115 45
Availability of Aya
(53.2) (16.1) (5.4) (18.2) (7.1)

130
Social Security protects not just the subscriber but also his/her entire family by
giving benefit packages in financial security and health care. Social Security
schemes are designed to guarantee at least long-term sustenance to families
when the earning member retires, dies or suffers a disability. (Ministry of labour
and employment, 2013). The idea of security is associated not only as a law and
statutory right but basic security should be given greater prominence in human
wellbeing. Security express an elemental instinct to seek safety for oneself and
valued others, and to avoid fear of uncertainty (Wood, 2006). Bradshaw (2008)
opines that among many explicit objectives of social security systems, there is
the general aspiration to improve welfare, well-being or even the happiness of
working population. In India the principal measures included in social security
are Provident Fund, Gratuity, ESIC, Compensation (in case of disability),
Insurance and Maternity benefits. Table no – 5.8 and charts 5.8.1 to 5.8.6
presents the data for social security measures and analysis follows
Table No. – 5.8 Social Security
Facility \ Strongly Disagree Neutral Agree Strongly

4 7 1 178 442
Provident Fund
(0.6) (1.1) (0.2) (28.2) (69.9)
74 78 51 184 245
Gratuity
(11.7) (12.3) (8.1) (29.1) (38.8)
84 88 56 241 163
Compensation
(13.3) (13.9) (8.9) (38.1) (25.8)
Insurance 92 106 8 235 191
(14.6) (16.8) (1.3) (37.2) (30.2)
Employee State 6 4 5 171 446
Insurance (0.9) (0.6) ( 0.8) (27.1) (70.6)
214 112 75 154 77
Maternity Benefits
(33.9) (17.7) (11.9) (24.4) (12.2)
131
Chart No. - 5.8.1 Provident Fund

4 7 1
Strongly Disagree
178
Disagree
Neutral
Agree
442 Strongly Agree
Chart no. 5.8.1 above depicts that 98% of workers strongly agrees or agrees that
eligible workers get PF either through company or the contractor.
Chart No.- 5.8.2 Gratuity
74
Strongly
Disagree
78 Disagree
245
Neutral
51 Agree
Strongly Agree
184
Chart no. 5.8.2 shows that 68% either strongly agrees or agrees that gratuity as
a social security benefit is provided by the company. 24 % workers either
strongly disagree or disagree of any such benefit. It may be that they are
unaware of such benefit or company does not extend such benefit.
132
Chart No. - 5.8.3 Compensation
84
Disagree
88
Neutral
Agree
56
Strongly Agree
241
It is evident from chart no – 5.8.3 that 64% workers strongly agree or agree that
company provide for compensation in case of disability. However 27% of
workers strongly disagree or disagree regarding such provision. It may be the
case that they may not be adequately compensated or have some grudges.
Chart - 5.8.4 Insurance
92
Strongly Disagree
191
Disagree
106
Neutral
Agree
8
Strongly Agree
235
Chart 5.8.4, indicate that 67% of workers strongly agree or agree to some kind of
insurance (usually group insurance scheme) provided through company. 31 %
133
either strongly disagree or disagree of such provision. It includes workers who

don’t have such policy coverage or the company has stopped the practice or the
policy is not renewed.
Chart No.- 5.8.5 Employee State Insurance

6 4 5
Strongly Disagree
171
Disagree
Neutral
Agree
446 Strongly Agree
Chart no.- 5.8.5 points that almost all workers (98%) either strongly agrees or
agrees have employee state insurance benefits are available to them. This is
provided either through company or through contractor.
Chart No. - 5.8.6 Maternity Benefit
77
Strongly Disagree
214
Disagree
154 Neutral
Agree
Strongly Agree
75 112
134
Chart 5.8.6 shows that 36% workers either strongly agrees or agrees provision
for maternity benefits extended to female workers. With almost half of the
workers either strongly disagree or disagree to such provision.
From the above analysis it can be deduced that most of the organizations
provide for social security measures (PF & ESI) to its workers. These measures
are more available to permanent workers (as discussed later), on completion of
certain years of services (gratuity) and on the basis of gender employed and are
mostly contributory in nature. In many cases of employing contractual workers,
companies prefer hiring through those contractors which have PF & ESIC
reregistered, so that the burden of any mishap is taken care of by medical facility
available through ESI. Additional insurance cover is not available for all the
workers with all the companies.
5.3 Leaves (Weekly & Annual Leaves) - Table 5.9 and charts 5.9.1 and 5.9.2
highlights the data for provision of weekly and annual leaves and analysis
follows
Table 5.9 – Leaves

3 7 3 201 418
Weekly Off
(0.5) (1.1) (0.5) (31.8 ) (66.1)
95 75 18 179 265
Annual Leave
(15.0) (11.9) (2.8) ( 28.3) (41.9 )
135
Chart No. 5.9.1 Weekly Off
3 7 3
Strongly Disagree
Disagree
201
Neutral
Agree
Strongly Agree
418
98% workers either strongly agrees or agrees that have weekly off as shown
through chart no. – 5.9.1.
Chart No. - 5.9.2 Annual Leaves

95
Strongly Disagree
Disagree
265 75
Neutral
18 Agree
Strongly Agree
179
136
70% workers either strongly agree or agree to adequate annual paid leaves,
whereas 27 % either strongly disagree or disagree of such provision being
provided or being inadequate.
It can be summarized from the above analysis that all most all workers agree to
the provision of weekly off which may be on a given day in the week and Sunday
in general. As per the act it is mandated that workers to be allowed rest after
stipulated hours of continuous working because the worker may be physically
exhausted (especially after nightshift). Besides these weekly off, usually
permanent workers also enjoy annual paid leaves in some organizations and are
allowed for other types of leaves like CL, EL, medical etc. 27 % of workers either
feel the provision of annual leaves to be inadequate in terms of number of days
or existence of such provision for them.
Non – statutory benefits or voluntary measures of welfare are provided by

company suo moto i.e they are beyond legal norms. These benefits are largely
based on extra mural activities as categorized by ILO’ expert committee on welfare
facilities, 1963. The analysis of the sub – categories and individual items under
these sub categories is as follows.
Cooperative Shop - data regarding the provision of cooperative shop for daily
needs is presented in Table no – 5.10 and chart no. - 5.10.1
Table No. – 5.10 – Cooperative shop
Strongly Strongly
Disagree Agree
Company runs 485 105 8 9 25

cooperative shop (76.7) (16.6) (1.3) (1.4) (4.0)
137
Chart No. - 5.10.1 Cooperative Shop

25
89
Strongly Disagree
105
Disagree
Neutral
Agree
Strongly Agree
485
Only 5.4% of workers either strongly agree or agree that company runs
cooperative shops where daily needs things are available at a concessional rate.
That means that it may be considered as an unusual practice because the
majority of workers either strongly disagree or disagree of any arrangement of
such type.
Educational Support – data for financial or non – financial support extended by

companies to workers for further studies is presented in table no. – 5.11 and
through chart no. – 5.11.1
Table No. - 5.11 – Educational Support

Furthering
243 195 46 103 45
education of
(38.4) (30.9) (7.3) (16.3) (7.1)
workers
138
Chart No. - 5.11.1 Educational Support
45
Strongly Disagree
103
Disagree
243
Neutral
46 Agree
Strongly Agree
195
As evident from chart no. – 5.11.1 that around 23% workers either strongly agree
or agree that the company provides financial/non-financial incentives for
furthering their education. 69 % either strongly disagree or disagree of such
provision. This may comprise of those workers whose companies either don’t
have any such policy or its case based or are unaware and hence have not
approached the company for any such help.
Loan Facility – data regarding availability of loan and repayment of loan

through easy EMI is presented in table no. – 5.12 and charts – 5.12.1 and
5.12.2.
Table No. – 5.12 Loan Facility
Strongly Strongly
Disagree Agree
142 138 23 217 112

Loan Availability
(22.5) (21.8) ( 3.6) (34.3) (17.7)
Repayment through 145 134 19 236 98
easy EMI (22.9) (21.2) (3.0) (37.3) (15.5)
139
Chart No. 5.12.1 Loan Availability
112
Disagree
Neutral
Agree
138
217 Strongly Agree
23
Chart no. 5.12.1 displays that 52% of workers either strongly agree or agree that
loan facility of any kind extended to them. 45 % either strongly disagree or
disagree to such facility. It can be either due to the reason that they don’t full fill
the criteria or eligibility for loan or the company doesn’t extend any loan facility to
workers or its not easy getting a loan done.
Chart No. 5.12.2 Easy EMI
98
145
Strongly Disagree
Disagree
Neutral
Agree
134 Strongly Agree

236
19
Chart no- 5.12.2 shows that almost the same percentage of workers (53%) as in
the chart above either strongly agrees or agrees that the repayment of loan is
done in easy installments. 44% workers either strongly disagree or disagree
140
regarding the ease of repayment. It may either that loan facility is not available or
the repayment is not quite easy as perceived by workers.
From the above analysis it can be summed that loan facility is not available to
almost half of the workers because of their status (permanent or contractual)
they do not fit in the eligibility criteria laid by the company or the company does
not have any policy per se and hence no loan facility is provided. The repayment
of loan will depend on company policy and other relevant acts which guide the
deduction of amount from wages.
Conveyance Facility - The facility to commute to and fro from the workplace
and conveyance allowance’s data is presented in table no. – 5.13 and through
charts 5.13.1 and 5.13.2
Table no. – 5.13 – Conveyance Facility
Strongly Strongly
Disagree Agree
Availability of 151 56 9 245 171

Conveyance (23.9) ( 8.9) ( 1.4) ( 38.8) ( 27.1)
Conveyance 155 193 31 182 71

Allowance (24.5) ( 30.5) ( 4.9) ( 28.8) ( 11.2)
Chart No. - 5.13.1 Conveyance Availability
151
Disagree
Neutral
56 Agree
9 Strongly Agree
245
141
Chart 5.13.1 depicts that 66% of workers either strongly agree or agree
regarding conveyance facility for to and fro commuting on concessional rate or
free of cost. 33% either strongly disagree or disagree that such facility is not
available. This may include companies who don’t have such facility (like small
scale companies) or conveyance facility is limited i.e. the bus routes are not
extensive to cover all routes.
Chart No. - 5.13.2 Conveyance Allowance
71
155
Strongly Disagree
Disagree
182 Neutral
Agree
Strongly Agree
193
31
40% workers either strongly agree or agree that the conveyance allowance that
they get is sufficient enough to cover their commuting expenses. However 55%
either strongly disagree or disagree regarding the adequacy of conveyance
allowance. It comprises of workers who either don’t get any conveyance
allowance as they avail conveyance facility or the company does not provides or
the allowance amount is insufficient.
Analysis above suggests that conveyance facility may not be extended by all
companies and to all categories or workers or is limited in terms of the area
covered. Conveyance allowance which may often be a part of salary for
permanent workers may be inadequate as perceived by more than half or is not
provided.
Recreational Facility – The data regarding recreational facilities including

cultural & sports programme and availability of general reading material is
presented in table no. – 5.14 and through chart no. – 5.14.1. – 5.14.3.
142
Table No. – 5.14 – Recreational Facility

86 151 16 215 164

Cultural
(13.6) ( 23.9) ( 2.5) ( 34.0) (25.9 )
62 58 18 318 176
Sports
(9.8) ( 9.2) ( 2.8) ( 50.3) ( 27.8)
Magazines,
Newspapers, 220 198 27 120 67
general reading (34.8) ( 31.3) ( 4.3) ( 19.0) (10.6)
books
Chart No.- 5.14.1 Cultural Activities
86
Disagree
151 Neutral
Agree
16 Strongly Agree
215
As per chart no. – 5.14.1, 60% of workers either strongly agree or agree that
company organize some cultural activities. 38 % either strongly disagree or
disagree regarding any such activities.
143
Chart No. - 5.14.2 Sports
62
Strongly Disagree
176 58
Disagree
18
Neutral
Agree
Strongly Agree
318
It is evident from chart no. – 5.14.2 that most of the workers (78%) either
strongly agree or agree that company organizes sports activities for them. Only
19 % either strongly disagree or disagree regarding sports being organized by
the company.
Chart No. - 5.14.3 General Reading
67
Strongly Disagree
220
120 Disagree
Neutral
Agree
27
Strongly Agree
198
144
Close to 30 % workers either strongly agree or agree that some kind of general
reading facility like newspaper, magazines or other general reading books are
available. Majority of workers (70%) either strongly disagree or disagree to
having have access to newspaper, magazines or general reading books as per
chart no. 5.14.3.
In nutshell, the above analysis indicate that majority of workers agree that some
sports activity is organized by the company which is usually annually and is
gender based (if the company employees duo). More than also agree that
cultural activities are arranged for them. Only a less percentage of workers have
any kind of reading arrangements.
Housing Facility – Table no. 5.15 and charts – 5.15.1 to 5.15.3 layout the data
for housing facility provided by the company, it maintenance and House Rent
Allowance (HRA).
Table No. – 5.15 Housing facility
Strongly Strongly
Disagree Agree
346 131 7 75 73
Housing
(54.7) ( 20.7) ( 1.1) ( 11.9) ( 11.6)
347 133 13 85 54
Maintenance of house
(54.9) ( 21.0) ( 2.1) ( 13.4) ( 8.5)
169 173 44 203 43

House Rent Allowance
(26.7) ( 27.4) ( 7.0) ( 32.1) ( 6.8)
145
Chart No. 5.15.1 Housing facility
73
Strongly Disagree
75 Disagree
Neutral
7
346 Agree
Strongly Agree
131
As shown through chart no. – 5.15.1, 75 % of workers either strongly disagree or

disagree regarding any housing facility extended to them by company. Only 24
% either strongly agree or agree of housing facility being provided by the
company.
Chart No. 5.15.2 Maintenance of Housing

54
Strongly Disagree
85
Disagree
13 Neutral
347 Agree
Strongly Agree
133
146
Chart no. – 5.15.2 shows that 22% workers either strongly agree or agree that
company take care of the housing facility provided. A major percentage i.e. 76%
of workers either strongly disagree or disagree that such measure is taken by the
company. This would include workers to whom such facility is not provided and
thereby no question arises of timely repairs, whitewash etc of the house
provided.
Chart No. 5.15.3 House Rent Allowance

43
Strongly Disagree
169
Disagree
203 Neutral
Agree
Strongly Agree
173
44
As shown in chart no. – 5.15.3, 39% of workers either strongly agree or agree
that house rent allowance provided by the company is sufficient. On the other
hand 54% either strongly disagree or disagree of HRA being sufficient. This
comprises of workers to whom no HRA is paid either due to housing facility
being extended or their status or company does not have HRA in the salary
structure or is actually insufficient.
It can be inferred from above that housing facility is extended only to less
percentage of workers as not all companies have such facilities. Either such
facilities are within the premises of companies or companies may also rent some
property for the lodging of workers. HRA is part of remuneration structure mostly
for permanent workers or workers perceive it to be insufficient.
147
Table No. 5.16 - Non Statutory Facilities – Consolidated
Strongly Strongly
Disagree Agree
485 105 8 9 25
Cooperative
(76.7) ( 16.6) ( 1.3) ( 1.4) ( 4.0)
243 195 46 103 45

Education Support
(38.4) ( 30.9) ( 7.3) ( 16.3) ( 7.1)
142 138 23 217 112

Loan Availability
(22.5) ( 21.8) ( 3.6) ( 34.3) ( 17.7)
Repayment through easy 145 134 19 236 98

EMI (22.9) ( 21.2) ( 3.0) ( 37.3) ( 15.5)
Availability of 151 56 9 245 171

conveyance (23.9) ( 8.9) ( 1.4) ( 38.8) ( 27.1)
155 193 31 182 71

Conveyance Allowance
(24.5) ( 30.5) ( 4.9) ( 28.8) ( 11.2)
86 151 16 215 164

Cultural
(13.6) ( 23.9) ( 2.5) ( 34.0) (25.9 )
62 58 18 318 176
Sports
(9.8) ( 9.2) ( 2.8) ( 50.3) ( 27.8)
220 198 27 120 67

Paper
(34.8) ( 31.3) ( 4.3) ( 19.0) (10.6)
322 150 7 78 75
Housing
(50.9) ( 23.7) ( 1.1) ( 12.3) ( 11.9)
323 152 13 86 58
Maintenance of house
(51.1) ( 24.1) ( 2.1) ( 13.6) ( 9.2)
166 176 44 203 43

HRA
(26.3) ( 27.8) ( 7.0) ( 32.1) ( 6.8)
148
When we look at welfare with a holistic view, it encompasses work environment

which is intended to provide not only well being (including statutory welfare
norms and voluntary welfare facilities) but also a safe – healthy workplace so
that they are less vulnerable to diseases, maintain the vitality of body and are
efficient & productive. People still have the same basic physical and mental
needs for social support, physical safety, health and a feeling they are able to
cope with life. Increasingly, they are demanding that employers help them to
achieve this, particularly as a large part of their lives are spent at work.
The data regarding health and safety measures is presented in table no. – 5.17
and through chart no. – 5.17.1 to 5.17.5 and the analysis follows.
Table No. – 5.17 – Health & Safety Measures

Appropriate measure 11 9 4 272 336

for health & safety (1.7) (1.4) (0.6) (43.0) (53.2)
Adequate latrines & 1 4 0 211 416

urinals (0.2) ( 0.6) (0) (33.4) (65.8)
11 14 6 264 337
Protective Clothing
(1.7) ( 2.2) (0 .9) (41.8) (53.3)
4 6 4 253 365
Safety Equipment
(0.6) (0.9) ( 0.6) (40.0) (57.8)
6 12 7 270 337
Safety Training
(0.9) (1.9) (1.1) (42.7) (53.3)
149
Chart No. - 5.17.1 Health & safety measures
11 9 4 Strongly Disagree
Disagree
Neutral
272 Agree
336
Strongly Agree
Chart no. 5.17.1 indicates that 96% of workers either strongly agree or agree
that adequate measures are taken to ensure health & safety of workers in the
work premises.
Chart No.- 5.17.2 Latrines & Urinals
1 4
Strongly Disagree
211 Disagree
Agree
Strongly Agree
416
From chart no. 5.17.2 it can be seen that 99 % workers either strongly agree or
agree that there are sufficient number of latrines & urinals present in the
company.
150
Chart No. - 5.17.3 Protective Clothes
11 14 6
Strongly Disagree
Disagree
Neutral
337 264
Agree
Strongly Agree
Chart no. – 5.17.3 evinces that 95 % workers either strongly agree or agree
regarding protective clothing being provided when handling hazardous work.
Chart No. 5.17.4 Safety Equipment

4 6 4
Strongly Disagree
Disagree
253
Neutral
365 Agree
Strongly Agree
98% workers either strongly agree or agree that company has adequate
equipments for fire fighting, dealing with hazardous chemicals/gas, as depicted
in chart no. 5.17.4.
151
Chart No. - 5.17.5 Safety Training
6 12 7
Strongly Disagree
Disagree
Neutral
270
337
Agree
Strongly Agree
Chart no. – 5.17.5 shows that 96 % workers either strongly agree or agree that
safety training is provided by the company.
From the above analysis it can concluded that ninety percent plus workers agree
that company has undertaken adequate measures to promote a healthy and safe
environment with appropriate safety equipments backed by safety training.
Workers also perceive the number of urinals and latrines to be sufficient in the
company.
5.6 Discussion
As noted in chapter 4, statutory welfare facilities as per Factories Act varies

based on worker’s strength and the gender employed. This discussion derives its
support from observation, discussions with various concerned parties and
research work by different authors.
Half of the workers perceive the washing facility provided to them as
inadequate. Workers would like to clean themselves before leaving for home. By
nature of work pharmaceutical companies, have mandated to sanitize workers
before entering into the workplace and after leaving the work area too. This is
needed to maintain a hygienic environment. Companies which employ females
in significant numbers (as evident from “sector” & “gender” cross-tabulation –
Chapter 2), the provisions for separate washing facility is available based on
152
gender while companies where females are almost negligible such facilities are
only for males. However absence of adequate separate facility may not be
denied. Availability of water throughout the year for washing may be sometimes
an issue because Pithampur during summers face water shortage. Water is
supplied through Sanjay jalashay which is renovated in terms of its water holding
capacity besides the tubewell (s) of the companies. Usually pharmaceutical
companies provide uniforms which are to be worn in the production areas, so
these companies also provide for lockers where workers can keep their clothes
not worn during the work hours. In some companies the uniform is provided only
to workers of a particular department which are fit to size so that even
accidentally the clothes may not get in the moving part of machine leading to any
mishap. Some companies in general provide for the storage facility to keep the
tiffin and any other belongings of the workers. However in others neither do they
provide uniforms and nor any appropriate storage facility.
Rest room/shelter arrangements at workplace are different. For example a

company provides restroom cum lunchroom as worker strength lies between
150-249 workers while for 250 or more canteen comforts them. Yet in another
company the use of restroom by workers depends on season. In winters workers
prefer to be in lawns nearing the canteen rather than be in rooms and in
summers the lawns are empty. However adequacy of the shelter and its quality
is an issue as felt by some workers to whom such facility applies. Since there are
differences in nature of work of the workers employed by different sectors, hence
the sitting arrangements perceived by workers also differ. Owing to nature of
work, some workers work in sitting position like stitching bags or cleaning
precious stones whereas those operating machines or in assembly line work in
standing position, few workers (operators) work on automated machines and
their work is primarily controlling machine through buttons on control panel which
they perform either standing or sitting on chair. In the same company, sitting
facilities can be different in different departments. In a certain department
workers work in sitting position whereas in other department since attention to
work and its nature permits workers to sit only during break times. Workers who
have to work in standing position for long hours get to sit only during breaks
have different view point than who either work in a sitting position or those who
153
spend most of the time on work sitting. Differences are also observed on the
basis of quality of sitting arrangement. Workers perception regarding this also
depends on the space, comfort, chair/ platform and it matters especially they get
to rest after long hours of working in standing position.
Medical facilities extended are of different nature and content. Two

arrangements are more or less common in almost all companies (as observed) –
First aid box and tie up with nearby hospitals in Mhow or Indore. A company
maintains dispensary where all non critical cases can be taken care of. Another
company has doctor visiting every consecutive day (Monday, Wednesday and
Friday). Most of the dispensaries are maintained at the security gate/ entrance
possibly because the patient worker may be kept away from the production line
environment and can be easily transported to hospital if the need arises.
Differences are also evident in the quality and content of the sick room – from a
bench with first aid to oxygen cylinder and a person ‘trained’ (may not be formal
degree) to handle first aid is available. Some companies have ambulance and
one of the company extend this facility to worker’s family too in case of
emergency. In case of serious injuries worker is rushed to the nearest hospital
with which the company has a tie up and the expenses are borne by the
company. Since many workers are covered through ESIC, the expense is taken
care of by the corporation. However researcher also found a company will just
make attempt to get the injured worker to ESIC hospital so that treatment
expenses are not at company’s end. First aid boxes are distributed throughout
the departments or designated places usually one at gate with security or with
the HR or the office in case of small scale company. Workers are usually aware
of its place of availability.
To avail the canteen facility often companies follow coupon system – there are
coupons right from morning tea to evening tea. This facility is available on
concession in most of the case. For companies with large employee base have
lunch in shifts to accommodate the entire strength. In a company the researcher
observed that food items served on a table can be taken only once and in fixed
quantity only. Many companies have a feast in a week/month. On the other
hand a company maintains a shed under which workers can sit and have lunch
box bought or buy stuff from an outsourced agent (which may be at fair price but
154
not concessional). Yet in another company the workers felt that hardly any
concession given, the price is almost same to a ‘bhojnalay’. Some workers have
feel that the food served to management is better than the one given to workers.
Yet another difference is seen amongst workers based on their status. Mostly
permanent workers are allowed to have food through the canteen. Drinking
water is normally available year round. Many companies have provisions for
water purifier and water cooler too which are normally maintained in a hygienic
condition. However in a company researcher saw that the water cooler is under
a shade near the production area and because of improper arrangements water
was spilling around making surrounding muddy. Murty and Abhinov (2012) aver
that canteen facility is neither philanthropy nor charity. They observed that the
workers in the selected units expressed their satisfaction regarding the facility
and the prices were reasonably changed. They also found that canteen and
providing quality food stuff have deep impact on workers psychology and the
presence of such factors always motivate the workers towards their job.
Labour welfare officer as a statutory norm is strength based and hence the
number of welfare officer also differs from nil to 3. Welfare officer is the person in
touch with workers and is primarily responsible for carrying the welfare work i.e.
he/she may be an effective link between the management & workers. Guest et al
(2006) draw a comprehensive picture of Welfare service to include personal visit
to the hospitalized worker, aid to sick employees’ families, solving employee’s
problem, counseling on issues like stress, alcohol, drug abuse, financial as well
as legal crises and retirement coping problems. It also includes social services
like restaurants, sports, clubs, child care or nursery facilities and benevolent
services. In some companies the HR plays a dual role of welfare officer & carries
the HR functions too. The success of welfare programmes carried in the
company is also dependent on the attitude, competence of welfare officer and
how much can he/she connect to the workers and convey the intensions of
management regarding the welfare of workforce. Usually the welfare officer
would be seen on the shop floor or amongst the worker – getting the ‘feel’. HR
managers who carry dual responsibility are mostly in the office.
Factories act requires crèche facility to be provided if the unit employs 30 or

more females. A company allocates space for crèche on the basis of children
155
brought by that particular day i.e. its flexible and provides a unskilled woman
worker to take care or act as aya. A company to which this section applies has
provided for crèche but availability of aya is an issue. A company explained that
females employed are either spinster or the children are above the stipulated
age of crèche. But this may be only one side of the coin. Some female workers
were of the view that either the crèche is provided for the name sake or the aya
is not available to take care of the children so they make their own
arrangements.
Social security measure
Since most of the social security schemes are contributory in nature, employers
see it as additional cost. This may be only one side of the picture. Dethier (Nd)
was of the view that if the enrollment in the social security measure is weakly
enforced or even compulsory too workers may tend to avoid such payments or
may choose a contract job.
However such benefits are mostly available to permanent workers because

length of service is one of the criteria (for example gratuity is available after a
continuous service of five years or more). In general, contractual workers don’t
have all the social security covers available (in most cases PF and ESIC benefits
are available through contractors and that too may not be the case for all).
Bhandari & Heshmati (2006) were of the view that there are differences between
contract and permanent workers in terms of job tenure, hire and fire norm,
wages, job security and working conditions. The casual workers and their
families are deprived of benefits like health, safety, welfare and social security.
Social security is the hallmark of a mature welfare state. However they are
poorly structured and institutionalized despite of many policies, laws and
constitutional mandates (Duggal, 2013).
Since mostly workers are covered under ESI (which not only provides medical
benefits but insurance too), some companies extend additional insurance cover
in form of group insurance and one amongst several reasons - it may be
voluntary.
As already stated, female participation is low in workforce as compared to males

(NSS, 2011). However Slater, Ruhm & Waldfogel (2012) indicated that
156
availability of maternity leave is beneficial because mothers who would otherwise

quit their jobs will stay on them and use leave instead and it extends durations of
breastfeeding, may have a positive impact for children's future health and
development. Warnecke (2008) highlights in his research that policies which
support a mother’s role, recognize the value of the care work performed and thus
enables mothers to take care of their children without complete financial
dependence on a husband. Earle, Mokomane, and Heymann(2011), asserts that
studies carried in United States, Japan, and the United Kingdom show that
women who get paid maternity leave are more likely to return to the same
employer post-delivery. Increased employee retention reduces hiring and
training costs, which can be significant (and include the costs of advertising the
job, conducting selection process, training of new employees, and suboptimal
performance of the new workers during the initial period).
Leaves
Regular work can strain the body and mind and hence provisions are made for
the rest after continuous hours of stipulated hours. Almost all highly competitive
nations including India guarantee at least one day of rest a week. Countries like
Germany, Japan, and Switzerland offer a premium for night work. (Earle,
Mokomane, and Heymann, 2011). Law also mandates for providing day-off to
workers especially after night shifts. Price(2011), citing many researches done
puts forth that night shifts can hamper the normal working of body, cognitive
ability, judgment skills, fatigue and increases the vulnerability to heart disease.
Hence day off (although may not compensate) but still can help the person
tolerate provided such night shifts are not prolonged.
Annual paid leaves are generally available to permanent workers. Similar

examples can be drawn from research in a much developed economy- United
States. In all countries many employers offer, usually as a result of collective
agreements, public holiday entitlements over and above statutory minima.
Government standards play positive role in guaranteeing paid time off. In the
absence of government standards in the United States, almost one in four
workers there have no paid leave and no paid public holidays at all. Moreover, in
the absence of minimum standards, the paid leave and paid public holidays that
U.S. employers do make available are distributed unequally. According to the
157
U.S. government survey data, part-timers are far less likely to have paid leave
than full-timers; and workers in small establishments are less likely to have paid
leave than those in medium and large establishments. Even when lower-wage,
part-time, and small business employees in the United States do receive paid
leave, they typically receive far fewer paid days off than higher-wage, fulltime,
employees in larger establishments (Ray and Schmitt, 2007). Society for Human
resource management (2008), conducted a survey to examine paid leave
policies and practices in the workplace. The survey concluded that paid leave
benefits were an important piece of an employee’s total remuneration package.
A well-designed paid leave program can have a sizeable effect on employees’
productivity and satisfaction while meeting the goals of the organization. Leaves
can act as a natural stress buster and an effective tool in creating work-life
balance.
Non- Statutory welfare measures
Companies which face shortage of skilled manpower provide more of non-

statutory benefits to make employment lucrative and to retain the workers or its
their philanthropic look out. Baring exception of very few companies none of the
companies surveyed runs a cooperative shop which is a unusual and unique
proposition as far as the area of study is concerned. These shops provide for the
daily needs of the workers at a concessional rate. Now they plan to expand the
depth of their offering in terms of the merchandise.
Generally companies don’t have an explicit policy regarding the educational

support for furthering education of the workers. Both the parties were more or
less responsible for the same. Either workers don’t take interest in studying
further especially enrolling themselves in vocational course such as ITI or
company don’t have policy in this regard or were equally least interested.
However in few cases workers wish to continue education which they might have
left either due to financial constraints or non – availability of further education
facility at the native place are supported by managers in terms of not only
suggesting short term course but also would provide time off or shift adjustments
to attend examination. That is if they don’t promote then they don’t inhibit also.
158
To rejuvenate the workers, many companies organize recreational events like

annual sports meet. Generally cricket and some competitions for female workers
like indoor games, cooking etc. some companies also involve worker’s families in
the annual meet. A company by virtue of the area of spread has maintained a
ground which is used exclusively for the annual cricket meet amongst the
departments and between staff & workers. Few companies have ‘art of living’
sessions for workers and their families or cooking tips for workers’ families.
Cultural programmes though less common were organized by some companies
where workers and staff can showcase their talent. Few companies organize for
picnics or short excursion tours for workers and their families.
Loan facilities were seldom ingrained in the company policy. It depends on the
workmen status and length of service or is purely case based.
Very few companies provide housing facility to its workers. This is mainly done
for two reasons – one, the workers which come from distant places can be lured
and they stay with the company. Second being a labour intensive industry
housing colonies always provides them the backup supply of labour in case
need. In short, the facilities provided make “business sense”.
To sum up the discussion on statutory and non – statutory measures we can say
that welfare measures being mandated by law are intended for humane working
condition. Through these statutory norms of well being government tries to
ensure the ‘welfare floor’ on the shop floor. Organizations are bound to provide
welfare but the perceived difference exists in how well they discharge their duty
towards the welfare of workers. In practice difference also exist on the basis of
workmen status – whether the worker is permanent or contractual. Permanent
workers get almost all statutory benefits and are the preferred ones in the non-
statutory as well. Mostly employers view it only as a cost and try to shy away in
extending the benefits especially non – statutory. Kaushik & Madhumita (2012)
in their research found positive correlation exist between statutory norms and
workers whereas in case of non – statutory its less. The possible explanation
could be that either worker does not have proper idea on non statutory welfare
amenities they are receiving from the company or the managers may not help
them understanding the company policies on non statutory welfare measures.
So its not only the matter of cost that company should be worried about rather it
159
should be the effective communication of the intention of worker’s welfare that

should concern managers.
Health & Safety
More or less all companies provide for health and safety so that workers can
work hassle free and to avoid accidents and the complications there after like
legal sanctions, workers unrest, media reporting, image tarnishing and at times
loosing clientele. Most of the companies stress on safety training, organizing
mock safety drills, providing safety equipments and adhering to safety policy.
Nonetheless accidents are reported.
Maintaining a healthy and safe environment is necessary for the well-being of

individual and his/her dependents as it enables him/her to meet their needs,
including financial and psychosocial. It provides the means by which the
individual can contribute to society and participate in work in a meaningful way.
(Health and Safety Authority, 2008). According to Gopinath (2004), health and
safety measures are one of the main functions of HR. Continuous attention to
health and safety is important as ill-health, injuries and accidents inflicted by the
system of work or working conditions cause suffering and loss to individuals,
their dependants and the organization. Every shop floor manager has to
regularly, maintain programmes for improving occupational health, identifying
hazards, analyzing the risks involved. Eliminating them will improve staff morale
and employee relations.
Work has an impact on the health of both the individual in particular and society
in general. Canadian Centre for Management Development (2002) found that
workplace variables which have a negative outcome on employees are poor air
quality, loud noise, high or low temperature (especially high temperature) and
overcrowding. Logasakthi & Rajagopal (2013) in their study on health safety and
welfare were of opinion that the various welfare measures provided by the
employer will have immediate impact on the health, physical and mental
efficiency alertness, morale and overall efficiency of the worker and thereby
contributing to the higher productivity.
160
5.7 Conclusion
People have an important role to play in the growth of any organisation. They
constitute the organization at all levels and are regarded as a dynamic factor of
production. In order to get best results from the employees, management must
be aware of what employees expect from their employees. It is for the
management to see that the workers get economic, social and individual
satisfaction, through the welfare activities that are undertaken by the company.
The concept of ‘employee welfare’ is flexible and elastic and differs widely with
time, region, industry, social values and customs, degree of industrialization, the
general economic development of the people and political ideologies.
Coalesced with demographic variables of age, gender, socio - cultural
background and educational level it can yield different perception for different
employees in different industries. In the ‘broader sense’, employee welfare may
include not only the minimum standard of hygiene and safety laid down in
legislation and also aspects of working life such as social insurance schemes,
measures for the protection of women, paid vacation, etc. In the ‘narrow sense’,
welfare in addition to general physical working conditions is mainly concerned
with the day – to – day problems of the employees.
Welfare in true sense would not just be providing facilities or adopting certain
measures – mandated or non- mandated rather it is ensuring that benefits are
actually passed on to beneficiaries and beneficiaries actually ‘feel’ benefited.
Finally, if a facility is to be maintained whether on a statutory or voluntary basis
should be provided in its full form and true spirit.
Happy worker produces a happy customer, which creates wealth for the company and
adds to the GDP. It is this ‘virtuous cycle’ that should keep moving if individual, business
and nation has to grow (Chhabra, Kushwah & Jain, 2010)
161
6. LABOUR WELFARE PRACTICES ACROSS DIFFERENT
SECTORS ……............ 162 - 205
6.1 Statutory welfare measures

6.2 Social Security
6.3 Provision of Leaves
6.4 Non - Statutory
6.6 Summary of results obtained through Anova and
subsequent Post Hoc
6.7 Discussion
6.8 Conclusion
CHAPTER - 6 : LABOUR WELFARE PRACTICES ACROSS DIFFERENT SECTORS
LABOUR WELFARE PRACTICES ACROSS
DIFFERENT SECTORS
In the previous chapter, the welfare measures were discussed from overall
perspective i.e. taking into consideration all the companies and thereby
drawing the overall picture of welfare in the area of the study. This chapter
clubs the companies into sectors to analyse and compare the labour welfare
practices amongst the different sectors. Six measures of labour welfare were
compared amongst the sectors – statutory welfare, social security, leave, non-
statutory and health and safety.
6.1 Statutory Welfare Measure

in different sectors regarding the statutory welfare facilities provided.
Table no. – 6.1 Descriptive: Statutory welfare measure
Sectors N Mean Std. Deviation Std. Error
Textile 170 3.9035 .60685 .04654
Auto & Ancillary 206 3.5495 .61420 .04279
Engineering 97 3.7196 .60564 .06149
Pharmaceutical 94 3.5298 .53236 .05491
Miscellaneous 65 3.4031 .33679 .04177
Total 632 3.6528 .60005 .02387
Table no. - 6.2 ANOVA: Statutory welfare measure

Sum of Mean
Squares df Square F Sig.
Between Groups 18.793 4 4.698 14.135 .000
Within Groups 208.402 627 .332
Total 227.195 631
162
It is exhibited in table no. – 6.1 that mean score on 5 point scale for statutory
welfare facilities provided by companies belonging to different sectors were –
textile (Mean = 3.90, SD = .607), Auto & auto ancillaries (Mean = 3.5, SD =
.614), engineering (Mean = 3.7, SD = .606), pharmaceutical (Mean = 3.5, SD
= .532), and those belonging to other or miscellaneous sector (Mean = 3.4,
SD = .337). The mean score is presented in the mean’s plot below –
It can also be seen from table no. – 6.2 that F value 14.135 is significant at
1% level whereas degree of freedom is 4. This indicates that the null
hypothesis H01 is rejected, which means that there is significant difference
amongst different sectors in statutory labour welfare facilities in the area of
study.
Since one way ANOVA indicated that differences exist in the sectors which
means that workers employed in these sectors were of perception that the
statutory welfare measure provided by the companies belonging to different
sectors were of different levels. In order to understand and locate these
differences, researcher probed further into the various statutory measures
constituting the statutory welfare measure head. The statutory welfare
measures comprises of washing facility, shelter/restrooms, medical facility,
canteen facility, labour welfare officer & crèche facility.
163
The one way Anova results for the statutory welfare measures’ constituents is
presented in Table no. – 6.3 and 6.4 as under
Table no. – 6.3 Descriptive: Statutory welfare measures’ constituents
Welfare Sector
facility
N Mean Std. Deviation Std. Error
Washing Textile 170 3.6541 .96422 .07395
Auto & Ancillary 206 3.1058 1.09507 .07630
Engineering 97 3.1072 1.13700 .11544
Pharmaceutical 94 2.6330 1.11195 .11469
Miscellaneous 65 1.8985 .87990 .10914
Total 632 3.0590 1.16546 .04636
Shelter Textile 170 3.7741 .96263 .07383
Auto & Ancillary 206 3.6947 1.19830 .08349
Engineering 97 4.3670 .65792 .06680
Pharmaceutical 94 4.3915 .56562 .05834
Miscellaneous 65 4.0292 .87441 .10846
Total 632 3.9573 .99561 .03960
Medical Textile 170 4.4012 .48650 .03731
Auto & Ancillary 206 4.3476 .74570 .05196
Engineering 97 4.7361 .41412 .04205
Pharmaceutical 94 4.5447 .48162 .04968
Miscellaneous 64 4.4641 .45473 .05684
Total 631 4.4629 .58596 .02333
164
Canteen Textile 170 4.1582 .86193 .06611
Auto & Ancillary 206 4.4393 .73773 .05140
Engineering 97 4.2289 .68920 .06998
Pharmaceutical 94 4.0553 1.01596 .10479
Miscellaneous 65 4.0862 .82913 .10284
Total 632 4.2380 .83200 .03310
LWO Textile 170 3.36 1.344 .103
Auto & Ancillary 206 3.42 1.540 .107
Engineering 97 3.08 1.552 .158
Pharmaceutical 94 2.15 1.421 .147
Miscellaneous 65 4.28 .820 .102
Total 632 3.25 1.514 .060
Crèche Textile 170 3.5735 1.09282 .08382
Auto & Ancillary 206 1.4029 .86408 .06020
Engineering 97 1.2629 .51586 .05238
Pharmaceutical 94 1.9468 1.31056 .13517
Miscellaneous 65 1.9615 1.09797 .13619
Total 632 2.1036 1.35467 .05389
Source – Author’s Calculations
165
Table no. – 6.4 ANOVA: Statutory welfare measures’ constituents
Sum of
Squares df Mean Square F Sig.
Washing Between Groups 165.491 4 41.373 37.508 .000
Within Groups 691.598 627 1.103
Total 857.089 631
Shelter Between Groups 54.254 4 13.564 14.888 .000
Total 625.467 631
Medical Between Groups 11.255 4 2.814 8.590 .000
Total 216.312 630
Canteen Between Groups 14.075 4 3.519 5.219 .000
Total 436.789 631
LWO Between Groups 193.243 4 48.311 24.160 .000
Within Groups 1253.756 627 2.000
Total 1446.998 631
Crèche Between Groups 540.638 4 135.160 137.278 .000
Total 1157.962 631
Since result from Anova indicated differences hence post hoc was applied to
locate the differences in each of the constituents of statutory welfare across
the sectors. The result of Post Hoc analysis is presented in Table no. – 6.5
166
Table no. – 6.5 Post Hoc analysis of statutory welfare constituents

across sectors
Mean
Welfare Difference
Facilities Sector 1 Sector 2 (1-2) Std. Error Sig.
Washing Textile Auto & Ancillary .54829* .10883 .000

Facility
Engineering .54690* .13364 .000
Pharmaceutical 1.02114* .13499 .000
Miscellaneous 1.75566* .15316 .000
Auto & Ancillary Textile -.54829* .10883 .000
Engineering -.00139 .12933 1.000
Pharmaceutical .47285* .13072 .003
Miscellaneous 1.20736* .14941 .000
Engineering Textile -.54690* .13364 .000
Auto & Ancillary .00139 .12933 1.000
Miscellaneous 1.20875* .16835 .000
Pharmaceutical Textile -1.02114* .13499 .000
Auto & Ancillary -.47285* .13072 .003
Engineering -.47424* .15201 .016
Miscellaneous .73452* .16942 .000
Miscellaneous Textile -1.75566* .15316 .000
Auto & Ancillary -1.20736* .14941 .000
Engineering -1.20875* .16835 .000
Pharmaceutical -.73452* .16942 .000
167
Shelter Textile Auto & Ancillary .07946 .09890 .930
Engineering -.59289* .12145 .000
Miscellaneous -.25511 .13919 .356
Auto & Ancillary Textile -.07946 .09890 .930
Engineering -.67235* .11753 .000
Miscellaneous -.33457 .13579 .100
Engineering Textile .59289* .12145 .000
Auto & Ancillary .67235* .11753 .000
Pharmaceutical -.02448 .13814 1.000
Miscellaneous .33778 .15300 .178
Pharmaceutical Textile .61737* .12268 .000
Auto & Ancillary .69683* .11880 .000
Engineering .02448 .13814 1.000
Miscellaneous Textile .25511 .13919 .356
Auto & Ancillary .33457 .13579 .100
Engineering -.33778 .15300 .178
Pharmaceutical -.36226 .15397 .130
Medical Textile Auto & Ancillary .05360 .05930 .895

Facility
Engineering -.33491* .07283 .000
Miscellaneous -.06289 .08394 .945
168
Engineering -.38851* .07048 .000
Miscellaneous -.11649 .08190 .613
Engineering Textile .33491* .07283 .000
Auto & Ancillary .38851* .07048 .000
Pharmaceutical .19140 .08284 .143
Miscellaneous .27202* .09217 .027
Pharmaceutical Textile .14350 .07356 .292
Auto & Ancillary .19711* .07124 .046
Engineering -.19140 .08284 .143
Auto & Ancillary .11649 .08190 .613
Engineering -.27202* .09217 .027
Canteen Textile Auto & Ancillary -.28109* .08508 .009

Facility
Engineering -.07063 .10448 .962
Auto & Ancillary Textile .28109* .08508 .009
Engineering .21045 .10111 .229
Miscellaneous .35317* .11681 .022
169
Engineering Textile .07063 .10448 .962
Auto & Ancillary -.21045 .10111 .229
Pharmaceutical Textile -.10292 .10554 .866
Auto & Ancillary -.38400* .10220 .002
Engineering -.17355 .11884 .589
Miscellaneous -.03083 .13245 .999
Miscellaneous Textile -.07208 .11974 .975
Auto & Ancillary -.35317* .11681 .022
Engineering -.14271 .13161 .815
Labour Textile Auto & Ancillary -.053 .147 .996

Welfare
Engineering .282 .180 .518
Officer
Miscellaneous -.912* .206 .000
Auto & Ancillary Textile .053 .147 .996
Miscellaneous -.859* .201 .000
Engineering Textile -.282 .180 .518
Auto & Ancillary -.335 .174 .306
Miscellaneous -1.194* .227 .000
170
Auto & Ancillary -1.269* .176 .000
Engineering -.934* .205 .000
Miscellaneous -2.128* .228 .000
Miscellaneous Textile .912* .206 .000
Auto & Ancillary .859* .201 .000
Engineering 1.194* .227 .000
Crèche Textile Auto & Ancillary 2.17062* .10282 .000

Facility
Engineering 2.31064* .12626 .000
Miscellaneous 1.61199* .14470 .000
Auto & Ancillary Textile -2.17062* .10282 .000
Engineering .14003 .12219 .782
Miscellaneous -.55863* .14116 .001
Engineering Textile -2.31064* .12626 .000
Auto & Ancillary -.14003 .12219 .782
Miscellaneous -.69865* .15905 .000
Auto & Ancillary .54390* .12351 .000
Engineering .68392* .14361 .000
Miscellaneous -.01473 .16007 1.000
171
Miscellaneous Textile -1.61199* .14470 .000
Auto & Ancillary .55863* .14116 .001
Engineering .69865* .15905 .000
Pharmaceutical .01473 .16007 1.000
*. The mean difference is significant at the 0.05 level.
The post hoc results in the table above indicated that differences exist in
sectors. Table no. 6.6 presents the summary of the differences i.e. it includes
and highlights only the differences of statutory welfare constituents across the
sectors.
Table no. – 6.6 Post Hoc summary – Statutory Welfare Measure

Constituents
Mean
Welfare
Sector 1 Sector 2 Difference Sig. Result Remarks
Facility
(1-2)
Washing Textile Auto & auto Sector 1 better than

.54829* .000
Facility ancillary Sector 2
Engineering Sector 1 better than

.54690* .000
Sector 2
Pharmaceutical Sector 1 better than

1.02114* .000
Sector 2
Miscellaneous Sector 1 better than

1.75566* .000
Sector 2
Auto & auto ancillary Pharmaceutical Sector 1 better than

.47285* .003
Sector 2

1.20736* .000
Sector 2
172
Engineering Pharmaceutical Sector 1 better than

.47424* .016
Sector 2

1.20875* .000
Sector 2
Pharmaceutical Miscellaneous Sector 1 better than

.73452* .000
Sector 2
Shelter Textile Engineering Sector 2 better than

-.59289* .000
Facility Sector 1

-.61737* .000
Sector 1
Auto & auto ancillary Engineering Sector 2 better than

-.67235* .000
Sector 1

-.69683* .000
Sector 1
Medical Textile Engineering Sector 2 better than

-.33491* .000
Facility Sector 1
Auto & auto ancillary Engineering Sector 2 better than

-.38851* .000
Sector 1

-.19711* .046
Sector 1
Engineering Miscellaneous Sector 1 better than

.27202* .027
Sector 2
Canteen Textile Auto & auto Sector 2 better than

-.28109* .009

.38400* .002
Sector 2

.35317* .022
Sector 2
173
Labour Textile Pharmaceutical Sector 1 better than

1.216* .000
Welfare Sector 2
Officer Miscellaneous Sector 2 better than
-.912* .000
Sector 1

1.269* .000
Sector 2

-.859* .000
Sector 1

.934* .000
Sector 2

-1.194* .000
Sector 1
Pharmaceutical Miscellaneous Sector 2 better than

-2.128* .000
Sector 1
Crèche Textile Auto & auto Sector 1 better than

2.17062* .000
Engineering Sector 1 better than
2.31064* .000
Sector 2
1.62672* .000
Sector 2
1.61199* .000
Sector 2
-.54390* .000
Sector 1
-.55863* .001
Sector 1
-.68392* .000
Sector 1
-.69865* .000
Sector 1
174
Following inferences can be drawn from table no. – 6.6
 In the opinion of workers employed in textile sector, the washing facility

provided, was perceived to be better than all other sectors. Work of
labour officer is perceived to be better in textile than in pharmaceutical.
Crèche facility provided by textile sector is perceived to be better than
all other sectors.
 Auto & auto ancillary workers perceived that washing facility extended
by the company was better than pharmaceutical & miscellaneous
sector. Similarly, canteen facility was perceived to be better than the
textile, pharmaceutical and sector belonging to miscellaneous sector.
Work of labour officer is perceived to be better than pharmaceuticals.
 Engineering sector was perceived by workers to be better provider of
washing facility than pharmaceutical and miscellaneous sector. Medical
facilities provided were perceived to be better than sector belonging to
miscellaneous sector. Work of labour officer was perceived to be better
than pharmaceutical.
 In the opinion of pharmaceutical workers shelter facility provided was
perceived to be better than the textile and auto & auto ancillary sector.
Medical facilities extended were perceived to be better than the auto &
auto ancillary. Crèche facility provided to women employed was
perceived to be better than auto & auto ancillary & engineering.
 The work of labour welfare officer was perceived to be better in sector
belonging to miscellaneous sector than all other sectors. Crèche facility
provided was perceived to be better than auto & auto ancillary and
engineering.
175
6.2 Social Security

in different sectors regarding social security measures provided.
Table no. – 6.7 Descriptive: Social security
Std.
Sectors N Mean Deviation Std. Error
Textile 170 4.0600 .74678 .05728
Auto & Ancillary 206 3.7034 .77945 .05431
Engineering 97 3.1907 .70947 .07204
Pharmaceutical 94 3.7634 .77087 .07951
Miscellaneous 65 4.1369 .67744 .08403
Total 632 3.7741 .80436 .03200
Table no. – 6.8 ANOVA: Social Security
Sum of Squares df Mean Square F Sig.
Between Groups 56.505 4 14.126 25.180 .000
Total 408.257 631
Source – Author’s calculations
176
It is revealed through table no. – 6.7 that mean score on 5 point scale for
social security measures provided by companies belonging to different
sectors were – textile (Mean = 4.06, SD = .747), Auto & auto ancillaries (Mean
= 3.70, SD = .779), engineering (Mean = 3.19, SD = .709), pharmaceutical
(Mean = 3.76, SD = .770), and those belonging to other or miscellaneous
sector (Mean = 4.14, SD = .677). The mean score is presented in the mean’s
plot below –
amongst different sectors in social security measures in the area of study.
means that workers employed in these sectors perceived that the social
security measures provided by the companies belonging to different sectors
were of different levels. Hence in order to probe it further and locate sectoral
differences post hoc was applied.
The result of Post Hoc analysis is presented in Table no. – 6.9
177
Table no. – 6.9 Post Hoc analysis of social security measures across sectors
Mean
Difference
Sector 1 Sector 2 (1-2) Std. Error Sig.
Textile Auto & Ancillary .35660* .07761 .000*
Engineering .86928* .09531 .000*
Pharmaceutical .29660* .09627 .018*
Miscellaneous -.07692 .10923 .956

Engineering .51268* .09223 .000*
Miscellaneous -.43353* .10656 .001*

Auto & Ancillary -.51268* .09223 .000
Pharmaceutical -.57268* .10841 .000*

Miscellaneous -.94620* .12006 .000*
Pharmaceutical Textile -.29660* .09627 .018
Auto & Ancillary .06001 .09323 .968
Engineering .57268* .10841 .000

Miscellaneous -.37352* .12083 .018*

Auto & Ancillary .43353* .10656 .001
Engineering .94620* .12006 .000

sectors. Table no. - 6.10 present the summary of the differences i.e. it
178
includes and highlights only the differences in social security across the
sectors.
Table No. – 6.10 Post Hoc summary –– Social Security Measure
Mean
(1-2)
Textile Auto & Ancillary .35660* .000* Sector 1 better

than Sector 2
Engineering .86928* .000* Sector 1 better

than Sector 2
Pharmaceutical .29660* .018* Sector 1 better

than Sector 2
Auto & auto ancillary Engineering .51268* 000* Sector 1 better

than Sector 2
Miscellaneous -.43353* 001* Sector 2 better

than Sector 1
Engineering Pharmaceutical -.57268* .000* Sector 2 better

than Sector 1
Miscellaneous -.94620* .000* Sector 2 better

than Sector 1
Pharmaceutical Miscellaneous -.37352* . .018* Sector 2 better

than Sector 1
179
From table 6.10 following illations can be made
 In view of Textile workers social security measures adopted were

perceived to be better than auto & auto ancillary, engineering and
pharmaceutical sectors.
 The perception of auto & auto ancillary workers regarding social
security measures extended were better than engineering companies.
 Workers of pharmaceutical companies perceived social security
measures to be better than the engineering companies.
 Workers of miscellaneous sector had better perception regarding social
security benefits than auto & auto ancillary, engineering and
pharmaceutical sector.
6.3 Provision of Leaves – Annual & Weekly

in different sectors regarding leaves provided.
Table No. – 6.11 Descriptive: Provision of leaves
Sector N Mean Std. Deviation Std. Error
Textile 170 4.2676 .76178 .05843
Auto & Ancillary 206 4.0218 .96310 .06710
Engineering 97 3.9433 .86866 .08820
Pharmaceutical 94 4.3298 .84737 .08740
Miscellaneous 65 4.4077 .68404 .08484
Total 632 4.1614 .86720 .03450
180
Table No. 6.12 ANOVA: Provision of leaves
Between Groups 17.153 4 4.288 5.879 .000
Total 474.538 631
Source – Author’s calculation
It is revealed through table no. – 6.11 that mean score on 5 point scale for
leaves facility provided by companies belonging to different sectors were –
..963), engineering (Mean = 3.94, SD = .869), pharmaceutical (Mean = 4.33,
SD = .847), and those belonging to miscellaneous sector (Mean = 4.41, SD =
.684). The mean score is presented in the mean’s plot below –
181

amongst different sectors in leave facility in the area of study.
means that workers employed in these sectors perceived that the leave facility
provided by the companies belonging to different sectors were of different
levels. Hence in order to probe it further and locate sectoral differences post
hoc was applied.
The result of Post Hoc analysis is presented in Table no. – 6.13
Table no. – 6.13 Post Hoc analysis of leaves across sectors
Mean Difference
Sector 1 Sector 2 (1-2) Std. Error Sig.
Textile Auto & Ancillary .24580* .08850 .045*
Engineering .32435* .10868 .025*
Miscellaneous -.14005 .12455 .794
Engineering .07855 .10517 .945
Pharmaceutical -.30794* .10631 .032*
Miscellaneous -.38585* .12151 .014*
Auto & Ancillary -.07855 .10517 .945
Pharmaceutical -.38649* .12362 .016*
Miscellaneous -.46439* .13691 .007*
Pharmaceutical Textile .06214 .10978 .980
Auto & Ancillary .30794* .10631 .032
Engineering .38649* .12362 .016
Miscellaneous -.07791 .13778 .980
182
Auto & Ancillary .38585* .12151 .014
Engineering .46439* .13691 .007
sectors. Table no. - 6.14 present the summary of the differences i.e. it
includes and highlights only the differences in leaves across the sectors.
Table no. – 6.14 Post Hoc summary– provision of leaves
Mean
(1-2)
Textile Auto & Ancillary .24580* .045* Sector 1 better

than Sector 2
Engineering .32435* .025* Sector 1 better

than Sector 2
Auto & auto ancillary Pharmaceutical -.30794* .032* Sector 2 better

than Sector 1

than Sector 1
Engineering Pharmaceutical -.38649* .016* Sector 2 better

than Sector 1

than Sector 1
Source – Author’s calculations
183
It is evident from table no. - 6.14 that -
 The perception of textile workers regarding leaves provided was better

than the workers of auto & auto ancillaries and engineering.
 Workers of pharmaceutical sector perceived that leaves provided to be
better than auto & auto ancillaries and engineering.
 Perception of workers belonging to miscellaneous sector regarding the
leaves was better than the auto & auto ancillaries and engineering
sector workers.
6.4 Non- Statutory Welfare

in different sectors regarding non-statutory welfare facilities provided.
Table No. – 6.15 Descriptive: Non – statutory welfare
Textile 170 3.0895 .78516 .06022
Auto & Ancillary 206 2.4560 .92362 .06435
Engineering 97 2.6018 .70968 .07206
Pharmaceutical 94 2.7273 .67336 .06945
Miscellaneous 65 2.7680 .81300 .10084
Total 632 2.7212 .84538 .03363
184
Table No. – 6.16 ANOVA: Non – statutory welfare
Between
39.072 4 9.768 14.870 .000
Groups
Total 450.955 631
Table no. – 6.14 show that mean score on 5 point scale for non-statutory
benefits provided by companies belonging to different sectors were – textile
(Mean = 3.09, SD = .785), Auto & auto ancillaries (Mean = 2.46, SD = .924),
engineering (Mean = 2.60, SD = .709), pharmaceutical (Mean = 2.73, SD =
.673), and those belonging to miscellaneous sector (Mean = 2.77, SD = .813).
The mean score is presented in the mean’s plot below –
185
amongst different sectors in non – statutory benefits in the area of study.
means that workers employed in these sectors perceived that the non –
statutory benefits provided by the companies belonging to different sectors
were of different levels. Hence in order to probe it further sub – categories of
non – statutory measures was further analysed.
The one way Anova results for the non - statutory welfare constituents is
presented in Table no. – 6.17 and 6.18 as under
Table no. – 6.17 Descriptive: Non - statutory welfare constituents
Non – Statutory Sectors N Mean Std. Deviation Std. Error
Benefits
Cooperative Shop Textile 170 1.89 1.319 .101
Auto & Ancillary 206 1.28 .788 .055
Engineering 97 1.23 .468 .048
Pharmaceutical 94 1.12 .355 .037
Miscellaneous 65 1.09 .292 .036
Total 632 1.39 .908 .036
Educational support Textile 170 2.32 1.079 .083
Auto & Ancillary 206 2.03 1.374 .096
Engineering 97 2.88 1.379 .140
Pharmaceutical 94 2.11 1.042 .107
Miscellaneous 65 1.82 1.499 .186
Total 632 2.23 1.304 .052
Loan Facility Textile 170 3.5765 1.12267 .08610
Auto & Ancillary 206 2.9903 1.59875 .11139
Engineering 97 2.5567 1.39545 .14169
Pharmaceutical 94 2.7128 1.42838 .14733
Miscellaneous 65 2.8077 1.50699 .18692
Total 632 3.0214 1.45969 .05806
186
Conveyance Facility Textile 170 3.3824 .90902 .06972
Auto & Ancillary 206 2.6286 1.44381 .10060
Engineering 97 2.8505 1.46694 .14894
Pharmaceutical 94 3.1436 1.37493 .14181
Miscellaneous 65 3.5846 .89952 .11157
Total 632 3.0403 1.30810 .05203
Recreational Facility Textile 170 3.1159 .89643 .06875
Auto & Ancillary 206 2.9573 1.21712 .08480
Engineering 97 3.1784 .90326 .09171
Pharmaceutical 94 3.7468 .67405 .06952
Miscellaneous 65 3.1385 1.15009 .14265
Total 632 3.1699 1.04259 .04147
Housing Facility Textile 170 3.202 1.1705 .0898
Auto & Ancillary 206 1.804 1.0947 .0763
Engineering 97 1.815 .8210 .0834
Pharmaceutical 94 2.069 1.0186 .1051
Miscellaneous 65 1.911 .4757 .0590
Total 632 2.232 1.1786 .0469
Table no. 6.18 ANOVA: Non - statutory welfare constituents
Sum of
Cooperative Shop Between Groups 61.192 4 15.298 20.875 .000
Total 520.684 631
Educational Support Between Groups 62.344 4 15.586 9.668 .000
Within Groups 1010.845 627 1.612
Total 1073.190 631
Loan Facility Between Groups 85.446 4 21.362 10.638 .000
Within Groups 1259.015 627 2.008
Total 1344.462 631
187
Conveyance Facility Between Groups 78.555 4 19.639 12.299 .000
Within Groups 1001.166 627 1.597
Total 1079.721 631
Recreational Facility Between Groups 41.165 4 10.291 10.008 .000
Within Groups 644.724 627 1.028
Total 685.889 631
Housing Facility Between Groups 223.576 4 55.894 53.678 .000
Within Groups 652.885 627 1.041
Total 876.462 631
Table no. – 6.19 Post Hoc analysis of non - statutory welfare constituents
across sectors
Mean Difference
Non – statutory Benefits Sector 1 Sector 2 (1-2) Std. Error Sig.
*
Cooperative shop Textile Auto & Ancillary .617 .089 .000*
*
Engineering .667 .109 .000*
*
Pharmaceutical .777 .110 .000*
*
Miscellaneous .802 .125 .000*
*
*
*
Engineering -.110 .124 .902
Miscellaneous .025 .138 1.000
*
Engineering -.134 .137 .864
Pharmaceutical -.025 .138 1.000
188
Educational support Textile Auto & Ancillary .284 .132 .198

Engineering -.559* .162 .005*
*
Engineering -.842 .156 .000*
*
*
Auto & Ancillary .842 .156 .000*
*
Miscellaneous 1.061* .204 .000*
Auto & Ancillary .072 .158 .991
Engineering -.770* .184 .000
*
Engineering -1.061 .204 .000
*
Loan Facility Textile Auto & Ancillary .58618 .14683 .001*
*
Engineering 1.01977 .18031 .000*
*
*
Miscellaneous .76878 .20665 .002*
Engineering .43359 .17450 .095
*
Engineering Textile -1.01977 .18031 .000
Auto & Ancillary -.43359 .17450 .095
Miscellaneous -.25099 .22714 .804
*
Auto & Ancillary -.27753 .17638 .515
Engineering .15606 .20509 .942
Miscellaneous -.09493 .22859 .994
*
Auto & Ancillary -.18260 .20159 .895
Engineering .25099 .22714 .804
Conveyance Facility Textile Auto & Ancillary .75371* .13093 .000*
*
Engineering .53184 .16079 .009*
Miscellaneous -.20226 .18428 .808
*
189
Engineering -.22187 .15560 .611

Pharmaceutical -.51498* .15728 .010*
*
Miscellaneous -.95597 .17977 .000*
*
Auto & Ancillary .22187 .15560 .611
*
Miscellaneous -.73410 .20255 .003*
*
Auto & Ancillary .51498 .15728 .010
Engineering .29310 .18289 .496
Miscellaneous -.44100 .20384 .195
*
Auto & Ancillary .95597 .17977 .000
*
Engineering .73410 .20255 .003
Recreational Facility Textile Auto & Ancillary .15860 .10507 .557
Engineering -.06247 .12903 .989
Pharmaceutical -.63093* .13034 .000*
Miscellaneous -.02258 .14788 1.000
Engineering -.22107 .12487 .392
*
Pharmaceutical -.78953 .12622 .000*
Miscellaneous -.18118 .14426 .718
Auto & Ancillary .22107 .12487 .392
*
Pharmaceutical -.56846 .14676 .001*
Pharmaceutical Textile .63093* .13034 .000
*
Auto & Ancillary .78953 .12622 .000
*
Engineering .56846 .14676 .001
Miscellaneous .60835* .16358 .002*
Miscellaneous Textile .02258 .14788 1.000
Auto & Ancillary .18118 .14426 .718
Engineering -.03989 .16254 .999
*
Housing Facility Textile Auto & Ancillary 1.3974 *
.1057 .000*
*
Engineering 1.3863 .1298 .000*
*
Pharmaceutical 1.1326 .1312 .000*
*
Miscellaneous 1.2910 .1488 .000*
*
Auto & Ancillary Textile -1.3974 .1057 .000
Engineering -.0111 .1257 1.000
Miscellaneous -.1064 .1452 .949
*
Engineering Textile -1.3863 .1298 .000
190
Auto & Ancillary .0111 .1257 1.000

Miscellaneous -.0953 .1636 .978
*
Pharmaceutical Textile -1.1326 .1312 .000
Auto & Ancillary .2648 .1270 .228
Engineering .2537 .1477 .424
*
Miscellaneous Textile -1.2910 .1488 .000
Auto & Ancillary .1064 .1452 .949
Engineering .0953 .1636 .978
* The mean difference is significant at the 0.05 level.
sectors. Table no. 6.20 presents the summary of the differences i.e. it
includes and highlights only the differences of statutory welfare constituents
across the sectors.
Table No. – 6.20 Post Hoc summary – Non - Statutory Welfare benefits
Constituents
Non – Mean
statutory Sector 1 Sector 2 Difference Sig. Result Remarks
Benefits (1-2)
*
Cooperative Textile Auto & auto ancillary .617 .000 Sector 1 better than
Shop Sector 2
*
Engineering .667 .000 Sector 1 better than
Sector 2
*
Pharmaceutical .777 .000 Sector 1 better than
Sector 2
*
Miscellaneous .802 .000 Sector 1 better than
Sector 2
Educational Textile Engineering -.559* .005 Sector 2 better than

Support Sector 1
Auto & auto ancillary Engineering -.842* .156 Sector 2 better than
Sector 1
Engineering Pharmaceutical .770* .000 Sector 1 better than

Sector 2
191
Miscellaneous 1.061* .000 Sector 1 better than

Sector 2
*
Loan Textile Auto & auto ancillary .58618 .001 Sector 1 better than
Facility Sector 2
*
Engineering 1.01977 .000 Sector 1 better than
Sector 2
*
Pharmaceutical .86370 .000 Sector 1 better than
Sector 2
Miscellaneous .76878* .002 Sector 1 better than

Sector 2
Conveyance Textile Auto & auto ancillary .75371* .000 Sector 1 better than
Facility Sector 2
Engineering .53184* .009 Sector 1 better than

Sector 2
Auto & auto ancillary Pharmaceutical -.51498* .010 Sector 2 better than
Sector 1
*
Miscellaneous -.95597 .000 Sector 2 better than
Sector 1
*
Engineering Miscellaneous -.73410 .003 Sector 2 better than
Sector 1
*
Recreational Textile Pharmaceutical -.63093 .000 Sector 2 better than
Facility Sector 1
*
Auto & auto ancillary Pharmaceutical -.78953 .000 Sector 2 better than
Sector 1
Engineering Pharmaceutical -.56846* .001 Sector 2 better than

Sector 1
*
Pharmaceutical Miscellaneous .60835 .002 Sector 1 better than
Sector 2
*
Housing Textile Auto & auto ancillary 1.3974 .000 Sector 1 better than
Facility Sector 2
*
Engineering 1.3863 .000 Sector 1 better than
Sector 2
*
Pharmaceutical 1.1326 .000 Sector 1 better than
Sector 2
*
Miscellaneous 1.2910 .000 Sector 1 better than
Sector 2
192
Following can be inferred from table no. – 6.20
 Workers employed with textile sector perceived the cooperative shop

(where daily needs things are available at a concessional rate) to be
better than all other sectors. Similarly workers perceive that loan facility
extended to be better than all sectors. Conveyance facility provided to
workers was perceived to be better than in auto & auto ancillary and
engineering sector. Housing facility provided was reckoned to be better
than all other sectors.
 Financial/non-financial incentives provided by engineering companies
for furthering education of workers were perceived to be better than all
sectors.
 Perception of pharmaceutical workers regarding conveyance facility
provided was better than the auto & auto ancillary companies.
Recreational facilities were perceived to be better than all the sectors.
 Conveyance facility was perceived to be better in miscellaneous sector
than in auto & auto ancillary and engineering companies.

in different sectors regarding health & safety measures provided.
Table No. – 6.21 Descriptive: Health and Safety
Textile 170 4.4529 .39735 .03048

Auto & Ancillary 206 4.4660 .67014 .04669
Engineering 97 4.5402 .47886 .04862
Pharmaceutical 94 4.6059 .40240 .04150
Miscellaneous 65 4.5200 .40125 .04977
Total 632 4.5002 .51595 .02052
193
Table No. – 6.22 ANOVA: 6.5 Health & Safety
Sum of
Between
1.850 4 .463 1.746 .138
Groups
Total 167.972 631
Table no. – 6.21 depicted that mean score on 5 point scale for health and
safety measures provided by companies belonging to different sectors were –
.670), engineering (Mean = 4.54, SD = ..478), pharmaceutical (Mean = 4.60,
SD = .402), and those belonging to miscellaneous sector (Mean = 4.52, SD =
.401). The mean score is presented in the mean’s plot below –
194
Table no. – 6.22 depicted that F value 1.746 is not significant at 1% level
whereas degree of freedom is 4. This indicated that the null hypothesis H05 is
not rejected, which means that there is no significant difference amongst
different sectors in health and safety measures in the area of study. Therefore
the matter was not probed further.
6.6 Summary of results obtained through Anova and subsequent Post

Hoc
 In the opinion of workers employed in textile sector, the washing facility

provided, is perceived to be better than all other sectors. Work of labour
officer is perceived to be better than pharmaceutical. Crèche facility
provided is perceived to be better than all other sectors. Social security
measures adopted were perceived to be better than auto & auto ancillary,
engineering and pharmaceutical sectors. Leaves provided were better than
the workers of auto & auto ancillaries and engineering. Cooperative shop
(where daily needs things are available at a concessional rate) and loan
facility extended were perceived to be better than all other sectors.
Conveyance facility provided to was perceived to be better than in auto &
auto ancillary and engineering sector. Housing facility provided was
reckoned to be better than all other sectors.
 Auto & auto ancillary workers perceived that washing facility extended by
the company is better than pharmaceutical & miscellaneous sector.
Similarly, canteen facility is perceived to be better than the textile,
pharmaceutical and sector belonging to miscellaneous sector. Work of
labour officer is perceived to be better than pharmaceuticals. The social
security measures extended were perceived to be better than engineering
companies.
 Engineering sector was perceived by workers to be better provider of
washing facility than pharmaceutical and miscellaneous sector. Medical
facilities provided were perceived to be better than sector belonging to
miscellaneous sector. Work of labour officer was perceived to be better than
pharmaceutical. Financial/non-financial incentives provided for furthering
education of workers were perceived to be better than all sectors.
195
 In the opinion of pharmaceutical workers shelter facility provided is

perceived to be better than the textile and auto & auto ancillary sector.
Medical facilities extended were perceived to be better than the auto & auto
ancillary. Crèche facility provided to women employed is perceived to be
better than auto & auto ancillary & engineering. Workers of pharmaceutical
companies perceived social security measures to be better than the
engineering companies. Workers of pharmaceutical sector perceived that
leaves provided to be better than auto & auto ancillaries and engineering.
Perception of pharmaceutical workers regarding conveyance facility
provided was better than the auto & auto ancillary companies. Recreational
facilities were perceived to be better than all the sectors.
 The work of labour welfare officer is perceived to be better in miscellaneous
sector than all other sectors. Crèche facility provided is perceived to be
better than auto & auto ancillary and engineering. Workers had better
perception regarding social security benefits than auto & auto ancillary,
engineering and pharmaceutical sector. Perception of workers regarding the
leaves was better than the auto & auto ancillaries and engineering sector
workers. Conveyance facility was perceived to be better than in auto & auto
ancillary and engineering companies.
 The difference in the sectors studied was not significant in case of health
and safety which means that workers of all sector perceive that appropriate
measures were taken to ensure health & safety.
6.7 Discussion
The tests results of one-way ANOVA & PostHoc subsequently indicate that
difference exist in the welfare facilities provided by different sectors. These
differences existent are attributable to reasons like the gender employed,
composition of workforce (permanent/contractual), workforce strength, nature
of work, clientele, demand – supply equation of labour, company policy and/or
combination of the factors may cast their impact differently on the sectors.
This discussion derives its support from observation, discussions with various
concerned parties and research work by different authors.
196
Textile companies being characterized by ‘softer’ work employing females in

substantial number (as compared to other sectors). Upadhyaya (2006), in his
study of garment & hosiery industry too found the women workforce to be
more than 90%. Amin et. al (1998) while probing into reasons for females to
join textile industry suggested that most workers enter the industry when they
are young and before they are married. But they continue to work even after
their marriage or after their economic needs are met with due to their family’s
support. Due to such workforce composition the sector provides facilities for
women like separate washing facilities separate for the duo genders and
crèche. A working mother is very anxious about her child’s care. Childcare
provisions relieve her of one of her multiple burdens, creates time and space
and work opportunities for her and supports her empowerment. Studies show
that the provision of childcare results in up to 50% enhancement in the
productivity of the mother as well as in lower morbidity and better growth for
the child (Prsindia, Nd). In Indian context a mother would not leave to work till
his child is at least one or one and half year old. After that mother-in-law
would babysit till the parents are not back from work. Datta & Maheshwari
(1996), in their study in Mumbai found that, 43% of the dual earners depend
on their family that is the grandparents for child care. By the age of 2.5 years
the child would start going to a nearby play school and by 3.5 to school. This
pattern is more preferable rather than bringing child to workplace and to
remain ‘mentally engaged’ that would affect productivity (concern for
employer) and equally wages (workers concern). Chhabra & Kushwah (2012),
in their study interviewed workers. While discussing about the crèche facility a
women worker responded –
I have two kids. I never brought them here (company). If I bring

them here would be involved as a mother and as worker. My
work requires attention – knotting the thread at regular intervals
which moves fast on the loom. Even the family is hesitant. My
mother-in-law takes care of them. It’s a lapse of hardly 1.30 hrs
between kids coming from school and my shift timings.
197
Similar observations by other studies also suggest that factory crèches were
used by very few employees (Datta, 2004). Second, the females employed
were either maiden or have kids over 6 years and hence no aya per se is
required. This may appear to be only one side of the coin. Fully fledged
crèche facility is also tangled in a chicken first or egg first dilemma i.e.
management has view point that if females bring children they would provide
the facility accordingly and females have counter argument to the extent that
company employs only those females who do not make up for a need for
crèche or the crèche is only for sake. Dr. Neetha N was of the view that
crèche is one the least enforced welfare measure because of less recognition
for the women’s social reproduction work (Neetha N, personal
communication, 27 July, 2011). Hence effective steps should be taken in this
regard. (Discussed later in chapter 9).
Textile is the second largest employer after Agriculture in India (Lohar & Bide,
2013). It is one of the many labour intensive sectors (Ambekar Institute for
Labour Studies, Nd). To manufacture various categories of products trained
work force is required. This skilled and trained workforce is the major role
player and the strategic resource to organizational success (Srivastava &
Chaterjee, 2014). But textile companies usually face shortage of workers
especially skilled manpower. Getting skilled manpower is a bigger challenge
for textile companies (Chatterjee, 2011). Chartterjee (2011), quoting an
ASSOCHAM survey of 100 textile firms in major production hubs of India,
indicated that the production capacities are underutilized due to shortage of
skilled manpower and some of them are even not able to meet their sales
target. Similarly the textile hub of southern India – Coimbatore also faced
labor shortage (Fibre2fashion News Desk, 2010).
There are two probable ways to overcome this shortage. First by linking
manpower supply with some government scheme like textile ministry had
proposed to link employment guarantee scheme with industry to attract
workers (PTI, 2013). A company at Pithampur would employ 500 tribal youth
being trained by Madhya Pradesh Council of Employment and Training
(MAPCET) being run by Tribal Welfare Department. Such initiative may
provide some influx of talent (MVO News, 2011).
198
Second measure is to attract workers by extending more and better welfare

facilities. The same was echoed by Mr V Regurajan, Joint Secretary (Legal) in
the Southern India Mills Association (SIMA), “The impact of labour shortage
will clearly mean increase in wages and more welfare facilities will have to be
created to attract workers” (Fibre2fashion News Desk, 2010). D’souza (2013)
also reported that labour shortage and attrition has pushed textile companies
to raise wages and offer other benefits to retain labourers. Earlier, these
incentives were only offered by major players but now even those in the small
and medium sectors have been forced to offer incentives for labourers to stay
back. There are offers of subsidised or even free meals, plus accommodation.
Many have also started to offer a bonus if an employee gets others to join the
company. Also, offers of health checks; some have also begun to offer
insurance.
Since statutory norms are mandated hence stress is laid on non-statutory

welfare provisions. Providing for housing mostly within campus and / or
renting dormitories outside ensures workforce availability, cooperative shop
(though hardly seen in the study area), is operated to provide for daily needs
at a concessional rate (which the company plans to expand in terms of the
depth of merchandise), extending loans with easy repayment options, leaves
and conveyance facility (even at times to go for grocery shopping, pick up and
drop at station) and are worth mentioning. Contractual labours are less seen
employed with textile (refer sector-worker status crosstab in chapter 2)
clubbed with the shortage of labour and the gender composition may
eventually move the companies to provide or adopt measures like social
security which are not only mandated but otherwise also helpful in attracting
and retaining workers. this is in contradiction to study by labour resource
centre – SAVE, Trirupurr (Nd) which observed that social security measures
such as ESI, EPF, workmen compensation, etc., promoted by the garment
industries were to be low in status, which was revealed by most (91.67%) of
the workers.
Pithampur is the home for major auto players – Indian as well as MNC. These
giants have outsourced many parts of their operations to small ancillary units.
If we look it as a sector – auto and auto ancillary, then we find differences
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within the sector and with other sectors. As noted above, ancillaries are
usually small companies in terms of workforce employed and hence many of
the mandated welfare provisions do not apply to them. Bose (2012), in his
research on automobile workers has divided the industry into tier1 and tier 2
companies. Tier 1 companies pay good wages and permanent workers are
paid allowances, benefits and welfare. However tier 2 units mostly do not pay
allowance, benefits and welfare. On the basis of observation and interviews
conducted many differences can be noted – large players have many thing
inbuilt in their corporate policy like loan facility, eligibility for loan etc. However
ancillary operations are more person driven than being system driven and
facilities especially the non-statutory are dealt on a person – to person basis.
Salaria and Salaria (2013), asserts that the n o n -statutory schem es differ
f r om organization to organization and from industry to industry. Non-
statutory benefits are the result of employers generosity, enlightenment
and philanthropic feelings. It is one of many ways for people to feel heard,
cared for. Large players offer almost all welfare facilities – statutory and non –
statutory and even some go beyond the law to ensure welfare of family like
mediclaim for the dependants but ancillaries shy away from most of them with
a simple argument that these players have deep pockets and hence can
afford. However this remains debatable and is further taken up in the
concluding chapter.
As a sector, overall, auto and auto ancillary, hardly employs females due to
‘hard’ and ‘heavy’ nature of work (as observed). Therefore welfare provisions
which are gender based are generally not seen. The next characteristic of the
sector is rise in contract workers. May be due to outsourcing and / or global
competition pressure, new vacancies of workers (if created) are seldom filled
with permanent employees (Bose, 2012). This creates a difference in welfare
offerings between permanent and contractual workers. Chhabra & Kushwah,
(2013), in an interview based study at Pithampur found that companies argue
that the tenure of contractual labour is not fixed and moreover they are
employed in “non-core” activities (per se), hence they are allowed in their own
clothes, so neither the uniform nor a place to keep the clothes not worn during
work or a general place where workers can keep their belongings. Similarly
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JCB & Pratap (2012), put forward that permanents get various allowances
which include attendance, house rent allowance (HRA), production incentive,
child education, annual increment, dearness allowance (DA), conveyance,
yearly bonus, city compensatory allowance (CCA), uniform, etc. besides these
they also are entitled for the social security like ESI, medical insurance, PF,
employee accident, maternity, and retrenchment benefit. The welfare
provisioning for them is in terms of subsidised tea and snacks, festival
advances, and home, housing equipment, conveyance loans against salary,
which temporary/ contractual do not get.
According to Dun & Bradstreet India, the Engineering sector is the largest in
the overall industrial sectors in India, with the presence of both large and
small players and can be catagorised into heavy & light engineering. Light
engineering industry is one of the largest segment and is highly labour
intensive (Business Knowledge Resource, Nd).
Engineering sector shares many common features with auto & auto ancillary
sector. First it is labour intensive; second hardly employs females (so crèche
and gender based provisions are not seen), third increasing presence of
contractual labours (so difference in permanent vis – a – vis contractual), and
fourth presence of large and small players. One of the striking features that
emerged from the study was the monetary and non – monetary support
extended to workers for furthering education. Though non – monetary
incentives in this regard like adjustment of shift timings or allowing to go early
(may be compensating the time later on for training programs etc) are
observed by the researcher (while the researcher engaged sessions in MDP
at MSME, he met workers and supervisors undergoing such programs). Many
workers are pursuing ITI other vocational education for betterment in their
career. McCormick (2000) found that education had a statistically significant
effect on satisfaction with opportunities for promotion. The results of Goldar
and Aggarwal’s study (2010) show that education enhances the probability of
getting a regular job. Another reason may be the shortage of readily available
talent in the engineering industry that can be felt across all markets. In many
cases it is due to the need for specialised skills, which existing talents may not
possess (Spring Professional, 2014). Engineering companies may be due to
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nature of work are providing for better medical facilities too. However the need
for other welfare measures is equally stressed. Niemann also stressed the
importance of interaction between management and workers to implement
workers' safety, health, and welfare activities in a more effective and
meaningful manner (ILO, 1989).
The country’s pharma industry accounts for about 1.4 per cent of the global
pharma industry in value terms and 10 per cent in volume terms. Both
domestic and export-led demand contributed towards the robust performance
of the sector (IBEF, 2014). If we look at the sector, it has many characteristics
which are different from other sectors and some similarities too. Looking into
differences – first workforce composition different from auto & auto ancillary
and engineering in terms of employing females (akin to textile but not to the
extend), more of skilled manpower (probably different from all sectors), nature
of work which requires more of hygienic environment, and relatively less
contractual workers (Ananthanarayanan, 2014). Owing to maintenance of
hygienic environment in the production area which is required for the product,
Pharmaceutical companies rather than providing for washing facilities provide
uniforms. Workers before entering into production area have to undergo
detoxification process, change clothes worn to company provided uniforms.
These uniforms are maintained by company itself i.e. they are washed and
ironed at the expense of company and are also provided for lockers where
workers can keep their clothes not worn during the work hours. Looking into
workforce composition – pharma companies employ females too (being softer
work) so provision of crèche is seen but some issues of availability of aya and
other facilities evident as in case with textile. Second less of contractual
workers and mostly in non – core areas because of business nature, ensures
more of mandated welfare facilities being available to workforce. Its financial
performance may be one of the reasons that generally welfare facilities
provided to workers and companies being equally regular in providing for
lessening stress of workers through sports meet and cultural programmes.
De Souza (2009) in her research found that none of the workers
pharmaceutical experienced low level of job satisfaction and were provided
with adequate welfare facilities.
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Companies of different nature and products were clustered to form

miscellaneous sector. The characteristics of this sector were found to be more
similar to textile and pharmaceutical companies. The workforce composition
included female workers and less of contractual workers. Hence provision of
crèche, social security measures and non – statutory welfare facilities were
seen. Welfare officers keep the watch that these welfare facilities are made
available to workers and constantly try to be amongst the workers knowing
and solving their problems.
Analysis in chapter 5 indicated that most of the workers (98%) perceived PF

and ESI facility to be more or less universal i.e. they are provided by
companies. Hence if differences existed in social security measures amongst
the sector that would be in gratuity (dependent on length of service and
worker status), insurance and maternity benefits (based on gender employed
and availability of workforce as discussed earlier also).
The analysis in chapter 5 indicated that 98% workers either strongly agree or
agree to the provision of weekly off. This can be inferred by this analysis that
differences amongst the sector on leave facility would be mainly on provision
of annual leaves which is mainly dependant on the worker status.
Nature of work may also lay impact on the quality of welfare facility like
provision for washing which may be of higher quality with sectors where
workers get greased, oily, dirty or deal with hazardous chemicals as in case of
engineering or automobile. Pharmaceutical may be considered as a different
case owing to the hygienic requirement of the production (as discussed above
too) and therefore the practice of providing uniforms, sanitization, gloves,
head caps/hood etc. are more of product requirement.
Beyond sectors
Researcher found that there are certain characteristics which apply

independent of the sectors i.e. they are found to be true independent of any
sector. First – health & safety measure. Almost all workers of all sectors
surveyed have a positive opinion about the health & safety measures adopted
by companies. The reasons for such adoption may be different like in
pharmaceutical health of worker are important to produce the product in a
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non-contaminated environment. So if the worker is sick then he can go to the

doctor available in company’s premises, take rest and still if he feels unwell,
he can go back to home so that the disease is not communicated to others or
the product quality is not compromised. In other sectors (including pharma),
health & safety measure s are adopted for two primary benefits one, worker
remain fit and the rate of absenteeism due to illness is low and two worker is
less prone to accidents and thereby less cases of compensation (due to
disability) and less of legal hassles and negative publicity. The Bhopal gas
tragedy is still afresh in our memories. The company was not only closed but
had to pay compensation (though meager) and has to face civil and criminal
cases. Mr Anderson (the then head of Union Carbide) faces charges of
"culpable homicide" for cost-cutting at the plant which is alleged to have
compromised safety standards (BBC, 2014, Broughton, 2005). Sardana
(2010) opines that productivity at work is directly influenced by the health
status of workers. An unhealthy workforce is a drag on workplace productivity;
and it also affects the overall national productivity. Poor occupational health
and reduced working capacity of the workers may cause an economic loss of
up to 10–20% of GNP. Hence the cost of poor health & safety measures are
borne by the individual worker, the employer and society as a whole.
Implementing health and safety measures is beneficial for employers at the
first place. According to workplace insurance & safety board (WSIB, 2001),
organizations which have implemented effective safety management systems
not just because of concern for their employees, or for legal compliance, but
because they understand that superior health & safety results leads to lower
costs; improved employee relations and employee trust; improved reliability
and productivity; improved protection from business interruption; increased
public trust and improved public image; and, increased organizational
capability.
Second as observed and through discussion, we can say that if the company
has clientele abroad i.e. they export a significant part of their produce or they
are OEMs, then they have to follow the norms laid down by the client. This is
true in case of some textile, SEZ located & JV companies. These clients
besides providing specifications for product also lay principles for working
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conditions that the supplier company should adhere to. For ensuring the
compliance, audit is also carried. Nike for example is giving more importance
to worker benefits and safety in its grading system for factories. It has asked
its contract manufacturers to adhere to new labor and sustainability standards
or risk losing Nike’s business. The company’s initial approach was to monitor
factories. That didn’t work because factories would improve conditions for the
monitoring and then regress afterward. Nike is now trying to persuade
contract manufacturers that better labor practices and sustainability improves
productivity with lower worker turnover and reduced costs (Townsend, 2012).
Companies too while doing sales pitch not only emphasise on production and
other characteristics that make them a perfect supplier but also include
working conditions, facilities provided to labour and labour climate (Shriram
Deo, personal communication, July, 2012).
6. 8 Conclusion
Statistically and practically too differences does exist across the sectors
surveyed. Workforce composition, size of pocket, nature of business,
requirement of work/product, availability of workforce especially skilled,
workforce strength may be factors attributable to such differences but
intention is more important than cost. The deviations in providing welfare
facilities also indicate difference in approach of management towards
workers, which is evident in adherence to norms and voluntary welfare
facilities. However mandatory facilities as prescribed and as applicable should
be provided and non-voluntary can depend on other factors like pocket size,
workforce availability etc.
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7. WELFARE & JOB SATISFACTION OF LABOURS … 206 - 219
7.2 Discussion
7.3 Conclusion
CHAPTER - 7 : WELFARE & JOB SATISFACTION OF LABOURS
WELFARE & JOB SATISFACTION OF LABOURS
The present study focused on job satisfaction as a job attitude and the impact
of welfare facilities on it.
To understand the relationship, the data was collected with the help of
standardized scale from 632 respondents. The scale has six parts containing
total seventy questions. The average score of each part were taken into
consideration which represents the total sore of statutory welfare, social
security, leave, non-statutory welfare, health & safety and job satisfaction. The
average score of job satisfaction considered as dependent variable and the
remaining five variables’ average score was taken as independent. To check
the null hypothesis namely – H06 – There is no significant impact of various
welfare facilities on workers’ job satisfaction, correlation, test of normality,
variance inflation factor and regression through step wise method to check the
impact of various welfare facilities on workers’ job satisfaction.
Before correlation and regression, it was necessary to check the normality of

data. To check the normality of data we applied Jarcubera test. Jarcubera
value of 7.65 was found to be not significant at 1%. Therefore it can be
concluded that the whole data of independent variable is normally distributed.
Further it applies that the data can be used for further analysis.
Before applying stepwise regression it has also been checked that there is no
issue of multicollinearity amongst the independent variables. This was been
analysed through the bivariate correlation in SPSS. It is inferred from table no.
– 7.1 that none of the independent variables had very high significant
correlation. For further confirmation on the issue of multicollinearity among
independent variables, variance inflation factor test also has been applied
which revealed that all independent variables centred variance inflation factor
(VIF) value is less than 3 (Table no. 7.2). Further it can be concluded that
there is no issue of multicollinearity among independent variables.
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Table 7.1 - Correlation among independent variables

Social Non - Health &
Statutory Security Leave Statutory Safety
Statutory Pearson
1 .325** .188** .435** .267**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
Social Pearson
.325** 1 .659** .640** .280**
Security Correlation
Sig. (2-tailed) .000 .000 .000 .000
Leave Pearson
.188** .659** 1 .481** .258**
Correlation
Sig. (2-tailed) .000 .000 .000 .000
Non Pearson
.435** .640** .481** 1 .224**
Statutory Correlation
Sig. (2-tailed) .000 .000 .000 .000
Health & Pearson
.267** .280** .258** .224** 1
Safety Correlation
Sig. (2-tailed) .000 .000 .000 .000
N 632 632 632 632 632
**. Correlation is significant at the 0.01 level (2-tailed).
Table 7.2 - Variance Inflation Factors

Sample: 1 632
Included observations: 632
Coefficient Uncentered Centered

Variable Variance VIF VIF
Health & Safety 0.000798 88.13557 1.141666

Leave 0.000450 43.74406 1.817867
Non Statutory 0.000496 21.68885 1.906221
Social Security 0.000664 53.48457 2.367363
Statutory 0.000668 49.32557 1.294031
C 0.018442 99.31594 NA
Source – Author’s Calculations - eviews
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Before applying regression, the correlation between each independent

variable and dependent variable has been checked. It can be seen from table
no. 7.3 that job satisfaction is significantly correlated with all the independent
variables.
Table 7.3 – Correlation between Job satisfaction & independent

variables
Statutor Social Non - Health &

y Security Leave Statutory Safety
Job Pearson
.292** .479** .436** .369** .534**
Satisfaction Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 632 632 632 632 632
**. Correlation is significant at the 0.01 level (2-tailed).
To check the absolute relationship between job satisfaction and welfare

facilities related variables following null hypothesis has been made which has
been tested through step wise regression method. The hypothesis and
analysis is as following –
H06 There is no significant impact of various welfare facilities on workers’ job

satisfaction.
Four models have been prepared which are listed from A to D in Table 7.4.
The table also highlighted Durbin – Watson value – 1.583, which is close to 2.
It indicated that these models can be considered for the future estimation of
workers’ job satisfaction. Among all these four models, model D can be
considered as one of the best module because its R2 value highlighted
(0.417). This model includes four independent variables off five variables i.e.
Health & Safety, Social Security, Leave, Statutory benefits. Further it implies
that in the organisation these four factors majorly influence job satisfaction of
workers.
This model summary also revealed that none of the model had non – statutory
which shows that this facility is not affecting job satisfaction whereas Health &
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safety is found in all four models. This indicated that this is one of the most
important facilities that have significant impact on workers’ job satisfaction.
The R2 value in model D is 0.417, that is approximately 42% variation in job

satisfaction is explained by health & safety, social security, leave and
statutory benefits put together.
Table 7.4 - Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
1 .534a .285 .284 .378

2 .629b .395 .393 .348
3 .642c .412 .409 .344
4 .646d .417 .414 .343 1.583
a. Predictors: (Constant), Health & Safety
b. Predictors: (Constant), Health & Safety, Social Security
c. Predictors: (Constant), Health & Safety, Social Security, Leave
d. Predictors: (Constant), Health & Safety, Social Security, Leave, Statutory
e. Dependent Variable: Job satisfaction
It can be analysed from table no – 7.5 that F value of model no. 4 is 111.921
is significant at 1% level. It implies that null hypothesis is rejected, which
means that there is a significant impact of four major welfare facilities (Health
& Safety, Social Security, Leave, Statutory) on workers’ job satisfaction. It can
be concluded that industries must focus on the best possible facilities related
to these variable, as good facilities lead to high job satisfaction.
Table 7.5 - ANOVA

Sum of Mean
Model Squares df Square F Sig.
4 Regression 52.716 4 13.179 112.291 .000d
Residual 73.587 627 .117
Total 126.303 631
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Using regression analysis on data following model is derived from table no.
7.6 which can be used for the forecasting of workers’ job satisfaction. The
table no. 7.6 also revealed that beta value of all variables is significant.
Model (Regression equation) Job Satisfaction = 1.509 + 0.354 (Health &

safety)+ 0.116 (Social security) + 0.091 (Leave) + 0.061 (Statutory).
Table 7. 6 - Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
4 (Constant) 1.509 .134 11.240 .000
Health &
.354 .028 .408 12.525 .000
Safety
Social
.116 .023 .211 4.983 .000
Security
Leave .091 .021 .176 4.324 .000
Statutory .061 .025 .082 2.483 .013
7.1 Discussion
Labour, as a factor of production has certain characteristics apart from others

assets like capital and land. The attitude of a labour towards his work holds
the key to performance. Unless a labour is enthusiastic, committed and
devoted to his/her work, the organizational goals (productivity, efficiency and
a healthy work environment) and personal goals (pay, promotion, well-being
etc.) cannot be met with (Kumar and Vedanthadesikan, 2013).
As an attitude job satisfaction can be defined as ‘‘a positive (or negative)

evaluative judgment one makes about one’s job or job situation” (Weiss,
2002).
Many factors lay an important understanding on job satisfaction i.e. job

satisfaction is determined by various factors. Most managers hold the view
that money is the most important motivator and some take it to the extent that
it’s the sole motivator and everything that can’t be expressed in terms of
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money does not have any impact. Kovach (1995), in his study to examine the
importance of job attributes, found that employees ranked interesting work as
the most important attribute and good wages was ranked fifth, whereas
managers thought employees wanted, good wages and hence it was ranked
first while interesting work ranked fifth. The importance of money can’t be
undermined. People may hold different views regarding money. Its like ‘in the
eye of beholder’ and cam cause satisfaction depending upon on how people
see it. (Tang and Gilbert,1995). Further blue and white collar workers have
different conceptualizations regarding the nature of co-workers, pay, and the
work itself (Hu, Kalpan and Dalal, 2010).
Besides money, learning, job autonomy, visual assessment of performance,

feedback on performance, employee involvement scheme (Petrescu and
Simmons, 2008), job security (Chirumbolo and Areni, 2005), supervision,
conditions of work, social relation on the job, prompt settlement of grievances
and fair treatment by employer (Murugan and Murugesan, 2012) have a
positive impact on job satisfaction.
Many researchers have focused on the money part of the job and satisfaction
derived from it. However focus should be equally on the non-wage aspect of
the job i.e. workers are looking forward to other job contents too (Clark,1998).
That is where this research also contributes to the existing body of
knowledge. The results indicate that working environment including statutory
welfare and health and safety have an impact on job satisfaction. This finding
is in accordance with other studies that have also shown that work
environment is an important factor in shaping workers’ job satisfaction
(Lambert, Hogan and Barton, 2001). It is considered as intrinsic satisfaction
(Mahdi et al, 2012). Work places must be in normal conditions allowing
employee to do their job properly. In work places where there is not sufficient
conditions employee motivation level decreases and such a situation affects
employee job satisfaction negatively. It has been found besides other factors
(organizational and behavioral factors) environmental factors, have a positive
impact on job satisfaction (Wadhwa, Verghese and Wadhwa, 2011). Parvin
and Kabir (2011), in their study found that work conditions have significant
influence on workers. The physical design of the place does have certain
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impacts on job satisfaction. A good work environment and good work

conditions can increase employee job satisfaction and the employees will try
to give their best which can increase the employee work performance. The
importance and the need is therefore describing or defining the physical
environment by identifying those elements or dimensions that make up the
physical environment like cleanliness, lighting, noise. Similar results were
obtained by Dawal and Taha (2006) in their study of job and environmental
factors in automotive industry. They found that there is significant correlation
between job satisfaction, job and environmental factors. The results indicated
that environment condition especially temperature, humidity, noise and light
could affect job satisfaction. Poggi’s (2010), result suggest that working conditions
affect job satisfactions in a complex way. First, working conditions affect job
satisfaction directly: bad working conditions reduce satisfaction, while good
working conditions increase it directly. Second, working conditions affect job
satisfaction indirectly by modifying the aspiration biases. Both the direct and
the indirect effects of working conditions on the levels of job satisfaction need
to be considered for designing policies. Bakotić and Babić (2013), concluded
from their study that workers who work in normal working conditions are more
satisfied with working conditions than workers who work under difficult
working conditions; in the case of workers who work under difficult working
conditions, the working conditions are important factor of their overall job
satisfaction. Improving working conditions relates to the improvement of
safety at work, training of workers, control and improvement of machinery and
tools, and to provide adequate protective equipment. As a result of these
improvements it is possible that satisfaction with working conditions of
workers who work in difficult working conditions increases.
The working conditions need to built on sound principles and managers

should be vigilant about how is it impacting on workers. Balaji (2013) held the
view that workers are likely to be motivated with their work conditions i.e. if
company pays attention to the betterment of working conditions it will motivate
workforce to perform better. Researcher is been told of a company who allows
workers to work for only two hour near the blast furnace i.e. if the worker has
worked near the furnace for two hours he will be shifted to other work in the
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production line. The heat of the furnace may physically exhaust the worker
beyond this and continuous working near furnace may have an adverse
impact on worker’s health.
Good, health and safe working conditions are treated as a bare minimum in
the industry and hence issues regarding it are raised only when they are
unfavourable. Stanely and Kalpan (1995) were of the view that people forget
the workplace when it is not a problem, but when it is vexing they have a
strong complain. Therefore if the physical work conditions are reported on if it
tends to be negative. Highlighting the negative impacts of working conditions,
Ducharme and Martin (2000), assert that job demands and pressures, job
complexity, role overload, decision latitude, oppressive or unpleasant working
conditions, and physical effort—as well as indirect effects of these factors
through job satisfaction—are related to a variety of outcomes including
psychological distress, anxiety, powerlessness, alienation, burnout, and
depression. Similarly Bauer (2004) was of the view that welfare of the workers
increased through work related flexibility and wages tend to reduce through
an increase in work-related health problems. In light of all these works put
together re-affirms the need to maintain and promote the statutory welfare
facilities and health & safety of workers at workplace. The Factories act which
is the principle governing act regarding working conditions has laid the norms
for promotion of humane working condition. Such conditions are necessary to
maintain the health and safety of worker which would directly affect
absenteeism and intention to quit the job. Khandan, Zamir and Maghsoudipour
(2012) did their study setting the background that promotion of workers’ health
and safety is one of the main tasks of managers and planners. Rajkuar (2014)
held the view that most of the welfare facilities pertains to sanitation and
hygiene which is if not provided leads to dissatisfaction among workers. If the
company provides such facilities then it ensures employee satisfaction that
result into increased efficiency.
The other factors that this study suggests are social security and leave. Social
security measures instill a sense of security/protection especially of income
during the non – productive period of the workers. With such measures at
place he/she can be best assured that neither he nor his family/dependants
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would go through any hardships during the period of any unforeseen negative
circumstances or even death. Though money cannot replace the loss of
person or productivity due to disability but can surely help the worker and the
family to come out of distress. If a company addresses this concern of
workers through social security measures then the worker would be mentally
free and would concentrate on the output and its quality. Lee (Nd), found
social welfare benefit to be one of the factors which affect job satisfaction.
Especially in work related welfare benefit, both mandatory welfare and
company welfare service affect on job satisfaction He suggests that statutory
welfare should be monitored by responsible party and social insurance, which
works as a social safe net, should be applied to all working places to improve
the quality.
Shafiulla and Basavaraj (2013) considered social security system as a vital

unit of organizational machinery. Drawing its anal from the Vedic time, the
concept of social security was treated as “wishing everyone to be happy”, free
from ill health, an idea of human dignity and social justice. It is increasingly
given importance because it influences efficiency, productivity, moral attitude
and psychological well-being of workforce.
Madrigal, Pagés, Suaya (2014), found in their study that the benefits resulting
from social security is valued by all employees irrespective of their level of
income. Hence companies should enroll its employees for such benefits and
most importantly explain its benefits. In certain cases young workers may not
value it and is equally likely that they may move towards informal employment
for getting more of cash benefits. Substituting wages for social security
benefits may decrease its impact on job satisfaction. Artz (2008) suggest that
the substitution between wages and benefits can have a negative impact on
job satisfaction if workers find they must sacrifice wages and accept provision
of benefit.
Long hours of work consistently without adequate breaks may yield result in
short run as short term disbalances can be adjusted but in long run it would
have negative impacts on work family balance. The worker may be due to
economic needs agree to work but it would have negative impact on his family
and social life as well. Family – work conflicts would have negative impact on
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the performance and thus would have overall retarding effect. Ahmad (2008),
proposed four models to understand the family-work conflict. The model
proposed were - work-family conflict has a direct and indirect effect on job
performance; work-family conflict tends to increase employees’ emotional
exhaustion which will in turn lower the job performance level; work-family
conflict reduces job satisfaction which will in turn decrease job performance;
work-family conflict leads to emotional exhaustion which will reduce job
satisfaction and consequently decrease job performance.
Breaks are natural stress busters. It helps person to overcome and suspend
work related worries (if not mitigate). Time spend with loved ones, taking
active part in upbringing of kids, relaxing etc. would help worker regain the
inner strength and mental peace which is required to focus on work and
equally on own and others safety. A mentally and physically exhausted worker
is more prone to accident and wastage than otherwise. Worker may develop
antagonist behaviour towards his work and organisation when he/she feels
deprived. The emotional feed derived from family is a strong support to
overcome the odd feeling. Its actually a two way sword – what a worker
carries back to home and back to work. Judge and Ilies (2004), concluded
from their study that mood influences job satisfaction, and that the effect
declines rapidly with the passage of time. Employees’ satisfaction with their
job, measured at work, influences the affective states experienced by
employees at home, and the magnitudes of these influences vary according to
employees’ trait affectivity. Mood does spill over outside the work
environment in that the affective states experienced at work influenced mood
measured later in the day, at home. Gender differences also exist in how
leave is perceived. Females would not like to stay back at work or work on
holidays or work without leave as they would like to spend their time caring for
their family and kids (given the Indian scenario where female has an active
role). Reinforcing the idea with which we started that in short run its OK if
continuous non – break work is pursued but it would have a negative impact
on worker. They are actually tangled between their financial position and
psychological stress. The result from Taylor’s (2002), studies suggest that
people interviewed on weekend report higher levels of job satisfaction and
215
lower levels of mental stress than those interviewed in the middle of the week.
The findings of the study also suggest that over-employment has the largest
negative effect on job satisfaction among both male and female workers,
while a deteriorating financial situation has a large negative impact on mental
well-being.
Finally, long hour of consistent work would lower down the job satisfaction
and increase the intention to quit. Hurley et al (2000), were of the view that
operations that consistently work their employees 60 hours, six to seven
days/week may find it harder to retain those employees.
Non – statutory welfare measure which are voluntary in nature are found to be
least impacting the job satisfaction and hence not been considered in the
proposed model. Possible explanation of this can be – one, it entirely depends
on the wish and whims of the employer. Hence workers don’t always expect
their employer to be generous enough in going beyond the mandated norms
of welfare. Two, most companies prefer offering such benefits on occasions
that may not be preferable to workers. For example sports day on a holiday.
Though some may prefer it but some may feel that it is depriving them of
family time. Attending after – office parties especially cutting on family time
may be taken as extended work hours and more of a ‘duty’ than enjoyment.
Three, how frequently such activities are organized? If such activities are
more frequent (which is least likely), and on the other hand organized once in
a blue moon (most likely) do not have a positive impact. In the former worker
feels pressured and in latter it hardly gets noticed. Fourth, Trade-off between
non – statutory benefits and cash should not be done (if at all). Unless such
trade-offs are more favouring workers. For example swapping in housing and
HRA can be favourable if HRA is just a part of salary and minimal than the
ongoing rentals. In such case, providing housing would be much more than
HRA. Similarly substitution amongst holiday, work (to earn extra) and
activities may be a difficult one. It is most likely that worker may be most
inclined towards premium wages for working on a holiday or time off from
work from engaging in activity. Rothbard (2001) found that attending an event
may deprive employees of family time; it is possible that the resulting
enrichment at work might carry over into the employee exhibiting a more
216
positive affect at home. Powell (Nd), proposed that relationship between

employer sponsored extracurricular events and job satisfaction is moderated
by the employee’s desire for social attachment to the workplace.
Hence it can be said that employers need to examine the impact of voluntary
activities on job satisfaction before initiating such activities. These activities
involve cost and hence every penny count and it should be wisely spent.
Researcher does not necessarily propose that employers should withdraw
such non – statutory activities rather employers should get choosy on it. It
implies that providing benefits beyond law which are actually valued by
employees and diverting funds to essential activities which has significant
impact on workers. Given that employees are looking forward to a social life at
workplace but too less or too much of it can actually render such benefits
been treated as neutral (if not negative).
It can be inferred from above discussion that all these welfare facilities put
together have an impact on job satisfaction of workers. Management should
pursue it religiously to increase the satisfaction level of workers. Chaudhay
and Iqbal (2011) assert that employees’ welfare has acquired an important
place in the modern commercial world. Even today no technical development
has been able to undermine the place of labour in the industrial field. The
main reason behind it is that employees are the only active factor of
production, which can employ other factor of production in the best possible
manner. The purpose of the employees’ welfare is to establish and maintain
relationship at all levels of management by giving satisfactory conditions of
employment. The modern industrial welfare covers the entire gamut of
activities undertaken to secure to the industrial worker an essentially human
status, to make him a better citizen and to improve his efficiency and
economic position. There is a direct and positive relationship between
motivational factors as human resource policy, allowances, labour welfare
measures and job satisfaction and job relation with the labours’ productivity
level (Nayak, Patra and Samal, 2012).
217
7.3 Conclusion
The question can still tickle us that what would company gain from the
satisfaction level of workers? Would it not be balanced in the interest of
company and if yes, then what returns company would get through satisfied
workers?
It is a commonly held belief that ‘happy worker is productive worker’. This

implies that if workers are satisfied then they would not look forward to job
switches easily. They would be like tightly held electrons which need much
energy to get detached from the atom which renders the atom stable under
almost all conditions. The worker would pay more attention to the work and
would take part in company initiative. He is likely to come up ideas that can
add value to company that would increase his job satisfaction (being involved
and heard) and profitability for company. He is also unlikely to remain ‘sick’ for
the sake of not attending work. Pamela and Batoni (2011) summarizing their
research findings state that in developing countries the physical conditions of
the work place, sanitation facilities and the safety of the workplace also
influences employee satisfaction besides intrinsic and extrinsic factors.
Organisations with satisfied employees have lower labour turnover and are
more productive and profitable. Anitha (2011) concluded from her study that
employee’s welfare measures should be given utmost importance, so that the
employee’s turnover may be restricted. Nanda and Browne (1977) were of the
view that employee productivity depends on many factors, including levels of
job satisfaction and motivation. Their study concluded that raising productivity
does not mean workers working longer or harder, but it can be achieved
through improving the organization and management of human resources.
Tandon and Reddy (2013), concluded from their study that job satisfaction
gives impetus to the overall productivity. Management need to continuously
evaluate working environment maintain strong relations with the workers. The
success of enterprise lies not only in satisfaction of workers but also in
increased loyalty and talent retention. Organisational investment in
employee's well being results in the higher satisfaction in employees. Taylor
(2000) suggested that job satisfaction is directly related to company's
investment in employee's well being. When an organisation cares for its
218
employees, it definitely gets their support. On the flip side Saari and Judge
(2004), argue that dissatisfaction resulting from one’s job can spill over into
one’s psychological well-being. It was also found to be related to other
withdrawal behaviors, including lateness, unionization, grievances, drug
abuse, and decision to retire, leave the job and absenteeism.
However the result of this study should be exercised with bearing two things
in mind. First, the welfare facilities selected through model make up for 42 %
variance in job satisfaction, which means that 58% still depends on other
factors listed in the early part of discussion in this chapter. That means that
management should promote welfare and other factors too for overall
satisfaction of workers – one factor cannot be substituted by other. Second,
everything is to be done at one go. All factors may not necessarily have the
same impact i.e. activities are to be handpicked in terms of their affect on
workers. Some managers may argue that the company does so much for
workers but the desired results are not obtained. The probable answer lies in
not discarding the theories for self – prophecy rather in implementation of the
activities. Its not only about the cost incurred in the welfare activities that will
determine the efficacy and outcomes, rather whats on the welfare menu and
how well is it executed would determine its positive impact both for workers
and company. The results from the study of Edgar and Geare (2005), also
suggested that if managers want to maximise employee attitudes, then
implementing lots of practices is not sufficient. Management need to be aware
that the way they implement their HRM practices may be a more important
determinant of employee attitudes than the number of practices they put in
place.
219
8. WELFARE BENEFIT ANALYSIS ……………. 220 - 243
8.1 Approach towards Welfare

8.2 Perceived benefits from welfare
8.3 Difference in approach towards welfare across
sectors
8. 4 Difference in perceived benefits derived from labour
welfare across sectors
8.5 Discussion
8.6 Conclusion
CHAPTER - 8 : WELFARE BENEFIT ANALYSIS
WELFARE BENEFIT ANALYSIS
The rich cannot accumulate wealth without the cooperation of the poor
– M K Gandhi (Boatright and Patra, 2000)
Owing to global competition pressure, manufacturers are looking to new ways

to reduce cost. The most natural way to do so is to reduce the labour cost
which can be done by number of ways but the most popular way is by removing
any form of protection given to workers (Welfare whether statutory or non –
statutory is a cost to management). But on the contrary studies have shown
that investing in labour has increased profitabilityof the companies. Countries
that grantfacilities to the workforce such as childcare,paid leave for childbirth,
paidannualleave, restrictions on work timingsand working hours, premium for
workingextra time are those that haveemerged as highly competitive(Bhowmik,
2012).
Owing to the debatable nature of cost and benefit, researcher was interested in
knowing the perceived benefits of incurring the cost on welfare measures. To
understand this the chapter is divided into four sections – the first tries to look
into the approach or the intention of companies (represented by manager)
towards welfare, the second identifies the perceived benefits of providing
welfare measures and third and fourth are intended to probe into the question
that do managers across all sectors surveyed have the same intention and
have the same perception of benefits from welfare activities.
220
8.1 Approach towards Welfare – Table no – 8.1 and chart no. – 8.1.1 to 8.1.3
represents the data regarding the perception of company represented by its
manager towards labour welfare and the analysis follows.
Table no. – 8.1 Approach towards welfare
Statement \ Response Strongly Disagree Neutral Agree Strongly

Disagree Agree
Welfare measures are

provided not only 1 3 2 6 9
because it’s a statutory (4.8) (14.3) (9.5) (28.6) (42.9)
requirement
Company goes beyond

1 2 2 9 7
law requirement to
(4.8) (9.5) (9.5) (42.9) (33.3)
ensure welfare
Plans to continue and

1 12 8
further all the welfare 0 0
(4.8) (57.1) (38.1)
measures
Chart No. 8.1.1 -Welfare measures only as norm

1
Strongly Disagree
9 Disagree
2
Neutral
Agree
Strongly Agree
Chart no. – 8.1.1 shows that, 71 % of managers either strongly agree or agree
that company provides welfare facilities not only because they are mandated
221
i.e. it is a willful indulgence. However 19 % of managers either strongly

disagree or disagree i.e these companies see welfare only as a norm and their
indulgence is normative.
Chart No. 8.1.2 - Beyond Law for Welfare

1
2
Strongly Disagree
7
2 Disagree
Neutral
Agree
Strongly Agree
As shown in chart no. – 8.1.2, 76 % of managers either strongly agree or agree

that their company ensures the welfare of workers beyond the requirement of
law. 14 % either strongly disagree or disagree thereby sticking to mandated
partonly.
Chart No. 8.1.3 - Continue & Further Welfare

0 0 1
Strongly Disagree
Disagree
8
Neutral
Agree
Strongly Agree
12
222
Chart No. – 8.1.3 depicts that most of the managers (95%) either strongly
agree or agree that the present level of welfare measures would continue being
the same and company has plans to increase it further or take it to next level.
None of the managers either strongly disagree or disagreed.
The above results indicate a positive attitude of most of the managers towards
worker’s welfare. Most of the companies have intention to provide facilities to
workers beyond the requirement of law. It is thus in coherence with the results
in previous chapters. However some managers do not share the same outlook
for two probable reasons - they are doing just what is mandated and don’t want
to go beyond that that means they are doing it just because its requirement of
law and second can be they are contended with whatever they are providing as
a welfare measure (rather some feel that it has been overtly done even in the
present state). Despite of it none of the managers disagreed that company has
plans to continue with the present level of welfare and to add new offerings in
the list of welfare activities.
8.2 Perceived benefits from welfare – welfare is beneficial to both workers

and company. Benefits are at the heart of any policy/activity. Hence companies
were enquired regarding perceived benefits of providing welfare or investing in
welfare of workers. Table No. -8.2 and chart no. – 8.2.1 to 8.2.presents the
data of perceived benefits followed by analysis.
223
Table No. – 8.2 Perceived benefits from providing labour welfare
Facility \ Strongly Disagree Neutral Agree Strongly

No
strikes/lockouts/slowdown 1 0 2 6 12
due to welfare measures (4.8) (9.5) (28.6) (57.1)
during last three years
Added in real way to the 1 2 10 8
earnings of workers 0 (9.5) (47.6) (38.1)
(4.8)
Positive attitude of workers 1 11 9
0 0
towards work and company (4.8) (52.4) (42.9)
Belongingness towards 1 1 3 10 6
company (4.8) (4.8) (14.3) (47.6) (28.6)
Workers’ Voluntary
2 5 6 8
participation in work 0 (9.5) (23.8) (28.6) (38.1)
improvement techniques
Better quality of work-life for 2 9 10
0 0
workers (9.5) (42.9) (47.6)
Cooperative attitude of 1 3 9 8
0
workers (4.8) (14.3) (42.9) (38.1)
Industrial relations have 3 11 7
0 0
improved (14.3) (52.4) (33.3)
1 2 10 8
Productivity has improved 0
(4.80) (9.5) (47.6) (38.1)
Increased the job
4 8 9
satisfaction amongst 0 0
(19.0) (38.1) (42.9)
workers
Decreased voluntary 2 5 7 3 4
turnover rates (9.5) (23.8) (33.3) (14.3) (19.0)
Rate of absenteeism has by 2 4 9 1 5
and large decreased (9.5) (19.0) (42.9) (4.8) (23.8)
Installed the attitude of “My 2 3 9 7
Company, My Work”. 0 (9.5) (14.3) (42.9) (33.3)
Wasteful practices have 4 4 7 6
reduced 0 (19.0) (19.0) (33.3) (28.6)
Overall added to the 1 1 13 6
profitability of company 0 (4.8) (4.8) (61.9) (28.6)
The benefits of providing
3 12 6
welfare facilities over-weigh 0 0
(14.3) (57.1) (28.6)
its cost.
224
Chart No. 8.2.1 - No strikes/lockouts/slowdown

1 0
2
Strongly Disagree
Disagree
Neutral
12 6 Agree
Strongly Agree
Chart 8.2.1 depicts that, 86% of managers either strongly agree or agree that
company had no strikes or lockouts or work slowdown due to welfare measures
during the last three years. Only 5% manager either strongly disagree or
disagree to it which means company had to face the said issue.
Chart No 8.2.2 - Added in Earning

0 1
2
Strongly Disagree
8 Disagree
Neutral
Agree
Strongly Agree
10
225
Chart no. – 8.2.2 shows that 86 % of managers either strongly agree or agree
that welfare adds to the real earning of workers. Only 5% either strongly
disagree or disagree to it.
Chart No. 8.2.3 - Positive Attitude

0 1
Strongly Disagree
Disagree
9
Neutral
Agree
11
Strongly Agree
As per chart 8.2.3 most of the managers (95%)either strongly agree or agree
that workers have developed positive attitude towards their work and the
company. None of the managers either strongly disagree or disagreed.
Chart No. 8.2.4 - Belongingness

1
1
6 Strongly Disagree
3
Disagree
Neutral
Agree
Strongly Agree
10
226
As evident from chart no. 8.2.4, only 10% managers either strongly disagree or
disagree with the proposition that welfare facilities have created belongingness
toward the company in workers. However 76% either strongly agree or agree
on this impact of extending welfare facilities.
Chart No. 8.2.5 - Workers Voluntary Participation

0 2
Strongly Disagree
8 Disagree
5
Neutral
Agree
Strongly Agree
Chart no. – 8.25. reveal that 67% of managers either strongly agree or agree
that worker’s are voluntarily participating in the work related improvement i.e.
they view work as an integral part and participate in the efforts made by the
company towards work improvement. 10% either strongly disagree or disagree
of any such voluntary participation by workers.
227
Chart No. 8.2.6 - Better quality of work-life

0 0 2
Strongly Disagree
Disagree
10
Neutral
9 Agree
Strongly Agree
Chart no. 8.2.6 show that 90% of managers either strongly agree or agree that
welfare measures have lead to better quality of work – life for workers. None of
the managers either strongly disagree or disagreed.
Chart No. 8.2.7 - Cooperative Attitude

1 0
3
Strongly Disagree
8 Disagree
Neutral
Agree
Strongly Agree
228
Chart no. – 8.2.7 depicts that 81 % of managers either strongly agree or agree
that another benefit of welfare measures has been that workers have
developed cooperative attitude towards management. Only 5% manager either
strongly disagree or disagreed.
Chart No. 8.2.8 - Improved IR

0 0
3
7 Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
11
As indicated in chart 8.2.8, 86 % of managers either strongly agree or agree

that welfare facilities provided by the company have lead to better relationship
between management and workers i.e. industrial relations have improved.
None of the managers either strongly disagree or disagree to such benefit.
Chart No. 8.2.9 - Improved Productivity

0 1
2
Strongly Disagree
8
Disagree
Neutral
Agree
Strongly Agree
10
229
Chart no. 8.2.9 show that 86 % of managers either strongly agree or agree that
productivity has improved due to welfare measures. 5% manager either
strongly disagree or disagree that there has been no improvement in
productivity.
Chart No. 8.2.10 - Increased Job Satisfaction
0 0
4
Strongly Disagree
9 Disagree
Neutral
Agree
Strongly Agree
8
Chart 8.2.10 reveal that 81% of managers either strongly agree or agree that
job satisfaction of workers has increased due to welfare facilities. None of the
managers either strongly disagree or disagreed.
Chart No. 8.2.11 - Decreased Voluntary Turnover

2
4
Strongly Disagree
Disagree
5
Neutral
3
Agree
Strongly Agree
230
As shown through chart no. – 8.2.11 33 % of managers either strongly agree or

agree that turnover rate of workers has decreased due to welfare measures
taken by company. 33 % either strongly disagree or disagree that there has
been any impact on the rate of turnover while 33% neither agreed nor
disagreed i.e.they were unsure of any such impact.
Chart No. 8.2.12- Decreased Absenteesim

2
5
Strongly Disagree
4 Disagree
Neutral
1
Agree
Strongly Agree
Chart no. – 8.2.12 depicts that 29 % managers either strongly agree or agree
that rate of absenteeism has gone down due to welfare measures. 28% either
strongly disagree or disagreed with the same and 43% managers were unsure
regarding this.
Chart No. 8.2.13 - My Company, My Work

0 2
7 3
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
9
231
Chart no. – 8.2.13 present that 76% of managers either strongly agree or agree
that welfare measures, have created an attitude of My company and Its my
work in workers i.e. it has created a sense of responsibility, attachment and
well-wishing towards the company and their work. 10% managers either
strongly disagree or disagreed.
Chart No. 8.2.14 - Reduction in wasteful practices

0
4
Strongly Disagree
6
Disagree
Neutral
4 Agree
Strongly Agree
7
As per chart no. 8.2.14 62 % of managers either strongly agree or agree that
workers have reduced wasteful practices i.e. are more careful towards their
work and thereby wastage has reduced. 19% managers either strongly
disagree or disagreed.
Chart No. 8.2.15 - Addition to Profitability
0 1
1
Strongly Disagree
6
Disagree
Neutral
Agree
Strongly Agree
13
232
Chart no. – 8.2.15 reveal that 90% managers either strongly agree or agree
that owing to positive impacts (mentioned above), workers have made better
contribution and hence the overall profitability of company has increased.
5%managereither strongly disagree or disagreed.
Chart No. 8.2.16- Benefits over weigh cost

0 0
3
6 Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
12
When poised with the question of overall benefits derived from providing
welfarevis – a – vis cost incurred, 86 % managers either strongly agree or
agree that benefits over – weigh the cost i.e. benefits derived from welfare
facilities are more than its cost as indicated by chart no. – 8.2.16. However
none of the managers either strongly disagree or disagreed.
From the above analysis we can draw the inference that most of the managers
were optimistic about the welfare facilities provided to workers in the sense that
they feel that it had benefited both the workers and company. However some
managers are skeptical about such benefits especially about the impact of
welfare on decreasing voluntary turnover rates and on the rate of absenteeism.
Yet some managers were placed in the category of neither agree or disagree of
the benefits. Probably it can be due to reasons like they have never evaluated
welfare in these terms or they are unsure of such benefits.
233
8.3 Difference in approach towards welfare across sectors –the study

further probed into any significant difference in the approach of mangers
towards the welfare across the sectors surveyed. To locate the difference, one
way ANOVA was used. Table no. – 8.3 and 8.4 present the results of the test,
followed by analysis.
H07– There is no significant difference in the approach of managers towards

labour welfare across the sectors.
Table no. – 8.3 Descriptive: Difference in approach towards welfare

across sectors

Textile 5 4.1200 .85264 .38131
Auto and
5 4.0000 1.18110 .52820
Ancillary
Engineering 4 4.0000 .72572 .36286
Pharmaceutical 4 4.0750 .83016 .41508
Miscellaneous 3 4.0000 1.00000 .57735
Total 21 4.0429 .84236 .18382
Table 8.4 ANOVA: Difference in approach towards welfare across sectors

Between
.056 4 .014 .016 .999
Groups
Total 14.191 20
It is revealed from table no. 8.3 that the mean score on 5 point scale for
approach of managers belonging to different sectors towards welfare work
were – textile (mean = 4.12, SD = 0.853), Auto and auto ancillaries (mean =
4.00, SD = 1.18), engineering (mean = 4.00, SD = 0.726), pharmaceutical
(mean = 4.07, SD = 0.830), and those belonging to miscellaneous sector
(mean = 4.00, SD = 1.00). The mean values are also represented through the
mean’s plot below
234
It can also be seen from table 8.4 that F value 0.16 is not significant at 1% level
whereas degree of freedom is 4. This indicates that the null hypothesis H07 is
not rejected, which means that there is no significant difference amongst
different sectors in approach towards labour welfare in the area of study.
Therefore the matter was not probed further.
8. 4 Difference in perceived benefits derived from labour welfare across

sectors – the study also looked into any significant difference in the perception
of managers across sectors regarding the benefits from pursuing labour
welfare. To locate the difference, one way ANOVA was used. Table no. 8.5 and
8.6 exhibit the test results followed by analysis.
H08– There is no significant difference in the perception of managers regarding

the benefits derived from labour welfare activities across the sectors.
Table no. – 8.5 Descriptive: Difference in perceived benefits derived from


Textile 5 3.9200 .70143 .31369
Auto and Ancillary 5 4.3000 .44721 .20000
Engineering 4 4.1000 .75277 .37639
Pharmaceutical 4 4.1250 .57373 .28687
Miscellaneous 3 3.4667 .28868 .16667
Total 21 4.0190 .59382 .12958
235
Table no. – 8.6 ANOVA: Difference in perceived benefits derived from


Between
1.430 4 .358 1.018 .428
Groups
Total 7.052 20
Table no. 8.5 reveal that the mean score on 5 point scale for approach of
managers belonging to different sectors regarding the perception of benefits
from labour welfare work were – textile (mean = 3.92, SD = 0.701), Auto and
auto ancillaries (mean = 4.30, SD = 0.447), engineering (mean = 4.10, SD =
0.753), pharmaceutical (mean = 4.12, SD = 0.574), and those belonging to
miscellaneous sector (mean = 3.46, SD = 0.288). The mean values are also
represented through the mean’s plot below
It can also be seen from table 8.6 that F value 1.018 is not significant at 1%
level whereas degree of freedom is 4. This indicates that the null hypothesis
H08 is not rejected, which means that there is no significant difference amongst
236
different sectors in perceived benefits from labour welfare in the area of study.
Therefore the matter was not probed further.
8.5 Discussion
Rather than leaving welfare of the workers to the philanthropic intent of the
employer, government has mandated the norms for providing a humane
condition at work. As a normal inference we understand that since it’s the
requirement of law companies would be indulged in the activities of welfare but
at the first place its not so (as discussed in the previous chapters). There may
be several reasons for the differences in the companies as evident from the
previous chapters, discussions and observations. One of the significant
reasons for providing or “just providing” welfare is the intention of management.
How does the company look at the welfare? Is it a burden since mandated? Or
finding ‘ways’ of doing it? or doing it religiously not only to suffice the
requirement but you actually go beyond it and try whole heartedly for the well
being of the people putting sweat and energy for the company i.e. company
wish to extend them ‘return on efforts’.
Richard and Johnson (2001), argue that it is the quality or effectiveness of the
HRM practices that matter and not the quantity. What appears to be a best
practice on surface is often baseless. It happens because managers implement
the practice half-heartedly. Such treatment can beeither due to compulsion or
because it represents the latest fashion or fad rather than sincerely believing in
the practice to work within the organizational context to improve workforce
effectiveness. Most likely, a simple number count of best practices does not
examine whether these practices make sense in terms of the organization’s
culture and strategy or whether the resources have been effectively instituted
genuinely to implement the policy or practice.
Zhong (2011) states that driven by the desire of creating physical assets
managers tend to cut down investment on labour and instead spend on
marketing or physical investment which can enhance their reputation and
influence. So the intention of managers has an influence on labour welfare.
Moreover, owing to competition, companies choose to manufacture the

demanded products in the most economical and technologically feasible
237
manner. Traditionally welfare has been seen as a cost and manager has to
decide on this aspect keeping in mind the short and long term profitability of the
organisation. The operations of company are controlled by financial
information. Its equally important to account for the economical impact of the
working environment. Bad working conditions affect productivity and efficiency
of workers, thereby lowering the profitability of organisation and shareholders.
The cost implications are also in terms of accidents, sick workers, absenteeism,
compensation and adverse public and corporate image (Ministry of social
affairs and health department for occupational safety and health Finland and
ILO, Nd).
Madhesh (2014), views that highly labour intensive industries need more
concentration in the area of employee welfare to increase productivity.
The managers must realize that cutting on investment as a measure for cost
saving may show in the balance sheet in short run but in long run will curtail the
benefits and then would bring up further investments to just correct the
situation. Companies that take the initiative now and integrate wellbeing
activities into their ongoing operations are more likely to avoid the employee
lawsuits and Government pressures (Pruyne, 2011).
However many companies look forward not only to continue with present status
of welfare facilities but they are equally willing to further welfare facilities like an
organisation had additional insurance cover (besides ESI) for workers but had
stopped due to some operational hurdle. Now they have called for fresh
quotations from insurance companies to restart the practice. Example like this
indicates a progressive thought process. Wright, Gardner and Moynihan (2003)
were of view thatwhen employees are managed with progressive HR practices,
they become more committed to their organisation. This commitmentleads to
exhibition of appropriate behaviour in terms of quality and productivity and they
do not engage in dysfunctional behavior.These operational
performanceoutcomes result in lowering overall operating expenses and higher
profitability.
Success in today's competitive market depends less on advantages associated

with economies of scale, technology, patents but are more derived from high
238
involvement of human resource (Quersh et. al cited in Lambha and Choudhary,

2013). Gelade and Ivery (2003) in their study found a significant correlation
between work climate, human resource practices, and business performance.
Attracting, nurturing, rewarding, and keeping people are challenge. It requires
adequate compensation, realistic performance expectations, manageable
workloads, effective leadership and supervision, training and development
opportunities, and a supportive work environment (The center for the study of
social policy,2002). Singh (2010)found that the firms withan emphasis on
strategic HR orientation performed significantly better than the firms with a
lower emphasis. This indicates that financial pay-offs will be higher if firms
strategically align and invest in their human resources.
The above discussions highlight the aspect that welfare of workers is an

investment and if it is true then it should yield returns both for the worker and
management. According to Rao (2009), cost of welfare expenditure is to be
treated a sound investment. Labour welfare has an important role in
contributing to well- being, prosperity and satisfaction of worker. These help to
preserve the health and safety of workers and also maintain their morale. It is a
fundamental requirement of industrial development and economy because
these give contentment and happiness in a way which even a good wage
cannot. These will also give the employers an image of caring and responsible
employer. With these benefits, workers will be increasingly adapted to their
work which will reduce the absenteeism and labour turnover in the industries
(Tikoo, Gupta and Meenu, 2013).Kerr (Nd), opines that improving employee
physical well-being can reduce workplace injuries, improve the morale of the
workplace, increase productivity, improve absenteeism rates, retain staff and
create a positive corporate image. Anand, Gopi and Shankar (2011)identified in
their study that the effective provisions of welfare measures leads to higher
productivity will lead to ultimately the profit of the organization. Sindhu (2012)
concludes in his study that welfare measures increase the productivity of
organization and promote healthy industrial relations thereby maintaining
industrial peace. Similarly Bhavani and Selvan (2011) were of the opinion that
adequate welfare measures enhance the healthy industrial relations in the
organisations. By the result of improved industrial relations among the
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employees and management their involvement in job gets increased and

results in increased productivity. Baptiste (2008) in his study indicated
consistently that trust in management and support promoted employee
wellbeing at work (commitment, job satisfaction, work-life balance satisfaction)
amongst workers. Trust in management influences the extent to which
employees feel emotionally committed to their organisation. Thus welfare
produces various benefits. The point of discussion still remains that whether
managers have realized these benefits? Have they tried to look into it? Organ
(1988) suggests that the failure to find a strong relationship between job
satisfaction and performance is due to the narrow means often used to define
job performance. He argued that when performance is defined to include
important behaviors not generally reflected in performance appraisals, its
relationship with job satisfaction improves. Most of the managers are convinced
with the benefits associated with providing welfare and therefore not only
provide benefits but also have a positive attitude towards welfare.
Csikszentmihalyi (1990) posited the view that the state of satisfaction and
happiness is achieved by the employees only when they maximally put their
abilities in performing the activities and functions at work. In this way motivated
employees are retained with the organizations thus reducing extra costs of
hiring. Employees are motivated fully when their needs are met. In today’s
dynamic environment the highly motivated employees serve as a synergy for
accomplishment of company’s goals, business plans, high efficiency, growth
and performance.
The other set of arguments presented by some companies is the effectiveness

of welfare measures in retaining workers. They argue that wage increase lure
workers more to switch jobs than facilities offered. A disgruntled HR added “if a
worker gets five hundred rupee hike on a monthly basis then he would change
the job without thinking of the benefits or welfare works”. This appears to be
much in sync with Tachibanaki (2003) who asserts that employees want higher
wage payments, rather than fringe benefits especially non - statutory. We
cannot plainly discard the job hoping attitude of workers. People do look
forward to betterment or better opportunity whether managers or workers.
Another possible explanation can be that when industry in general is not
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performing well or there is a slowdown and the global sentiments are also not
favourable then management is hardly bothered about turnover rather it is seen
as a blessing in disguise. Glebbeek and Bax (2002) were of similar view that
during economic decline when the demand for labour is decreasing, turnover is
not so much considered a problem, rather it is a blessing for the prosperity of
the firm.
Does retention is possible only through cost or cost – related measures?

Nwagbara (2011) argues that without shared leadership organisations
experience high labour turnover. Shared leadership is about collaborative,
participatory leadership that takes employees’ views and interests on board in
decision-making and leadership process. Thus, if the interests and opinions of
employees are not considered in organisational decision-making process, they
will feel disenchanted, alienated from the organisation’s leadership as well as
feel that their welfare is not taken into consideration. This will cause them to
leave for greener pasture. Therefore workers should feel included, heard and
taken care off. A strong characteristic of a professional relationship is give and
take. Thus its even the dexterity of a manager to create a balance. This takes
us back to the larger picture of well-being rather than just staying back with
welfare (which some the managers understand being ‘enforced’ by law).
The next question to probe was whether the attitude of managers towards
welfare measures and the perception of benefits from welfare are similar
across the sectors or do some managers gave more weightage to welfare
owing to workforce availability and workforce characteristics than others (as
discussed in previous chapter). The present research confirms statistically that
managers across sector have similar approach towards welfare and similar
perception regarding the benefits obtained from providing welfare. This is in line
with the findings of Ahmad and Schroeder (2003). Through their study across
the industry and countries, they concluded that ideal-type HRM system is valid
for a plant regardless of the country or industry in which it operates. This finding
indicates that management choices concerning HR practices do indeed make a
difference even after accounting for country and industry factors (which is in
line with the discussion above).
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8.6 Conclusion
Managers may not agree to the arguments present for welfare because the
question is does HR really matters in a country like India where supply of
workforce is abundant. For every single job opening there are probably
hundreds trying to grab it that to agreeing to all terms and conditions. But ‘Kya
koi bhichalega” (will anyone do?). In developing countries, the human resource
is quite easily available but the most unfortunate part is its effective and
efficient management. It is a well established fact that it is human beings
behind the machines which can drive or sink the organizations (Pirzada et. al,
2013).
The onus of utilizing manpower effectively and efficiently lies equally with the
managers. Managers are still perplexed with the question that does welfare
measures helps in reducing absenteeism and retaining workforce? There may
a variety of reasons that have interplay–first, welfare cannot be viewed in
isolation i.e. other HR practices also play an equal role in worker retention like
training programmes to enhance capabilities and efficiency (Gohil, 2012), effect
of working time on productivity and cost (Golden, 2011), human resources
planning, recruitment and selection, training, performance appraisal (Navaratne
et al, 2008) and organizational commitment, person-organizationfit, job
satisfaction, and work stress (Heydarian and Abhar, 2011), overtime which not
only involves extra cost at a premium but also cost like health of workers, rate
of accidents due to human errors, absenteeism, presenteeism (where person
only works to save the job but actually productivity is low) and worker
concentrate more on the spent time at work rather than the output (Seo, 2011).
To sum up the aspect, we are referring to ‘well-being of the worker and not only
welfare as its subset. Second one cost cannot adjust for another i.e. the rise
compensation of worker in form of wages cannot be compensated from the
cost of welfare. Managers argue that if both the costs are taken into account
then the overall cost would be high. If paying good wages could have subside
the need for welfare then policy makers would have never framed laws for it.
Pay for time worked, or basic wages and salaries, accounted for the largest
portion of total compensation in India’s manufacturing sector and hourly
compensation costs in India are among the lowest when compared with the 36
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countries in the BLS (Bureau of Labor Statistics)hourly compensation series

(Sincavage, Haub and Sharma, 2010). So its not a case of either – or, rather its
neither – nor. Third and probably most important, have managers tried to
exactly measure the cost of welfare and even if done so have they looked into
quantifying benefits? Or have they tried their hands in some survey formally
and informally. Small setups are rather better in the sense that the owner
manager is linked with almost every worker. As a SME owner puts it “I know
the inside – out of my workers. I don’t have elaborated policies but I have Man
management. I talk to them on various issues relating to them, our business
and our company. I take into account their views before finalizing an order with
the client and believe me I had seldom been adamant on the deadline because
they know WE earn” (Girdhar Garg, personal conversation, 2013,
17/01/2013).Dawal, Taha and Ismail (2009) suggest that if management
encourages workers by including them in problem solving then this would
increase theirjob satisfaction. In larger setup with thousands of workers, this
responsibility lies with the managers. To communicate to the workers about
what company does, why it does and what lies in for them. Simple truncating it
with “samajhte nahi hai” may not work. Omolayo and Oluwafemi (2012) as an
outcome of their study assert that organizations should enlighten their workers
on the more reason why they have to be contented with their job because a
satisfied worker tends to perform better in his/her work.
The equation between company and employee is two – way process. As an

employee how much you contribute to the overall profitability of company,
working with full efficiency and productivity and as a company how much you
return for the contribution of the employees. Till and until the equation is
balance from both the ends – the production phenomena goes uninterrupted.
All it needs is feedback and corrective measures from both involved.
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9. FINDINGS, SUGGESTIONS AND
CONCLUSION................. 244 - 256
9.2 Overall Conclusion

CHAPTER - 9 : FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS, SUGGESTIONS AND CONCLUSION

The service of India means the service of the millions who suffer. It means the
ending of poverty and ignorance and disease and inequality of opportunity.
The ambition of the greatest man of our generation has been to wipe every
tear from every eye. That may be beyond us but as long as here are tears and
suffering, so long our work will not be over.
Excerpt from Shri J L Nehru’s “A tryst with destiny”(India news, 1997)
This chapter presents major findings, suggestions, overall conclusion and

areas for future research. The suggestions are given keeping in mind three
parties concerned with labour welfare – Company, Labour and government.
The first objective of the study was to study the various welfare practices
under different labour enactments. This objective was fulfilled through chapter
fourth. A critical analysis of various labour enactments governing labour
welfare revealed that concept of labour welfare is embodied in the constitution
of India and various acts carry its essence. Factories act, 1948 is the principal
act governing the working condition and welfare. Employment of contractual
labour is governed by contractual labour act in which the contractor is the
main benefactor and then the principal employer. Social security legislations
in India comprises of mainly five enactments – Workmen’s compensation Act,
1923, The employees’ state Insurance Act, 1948, The Employees’ Provident
Funds and Miscellaneous Provisions Act, 1952, The Maternity Benefits Act,
1961 and the Payment of Gratuity Act, 1972. The terms like worker, wages
etc have been differently defined under different laws. No relaxations have
been given by government in factories act, 1948 in SEZ. However as per MP
SEZ policy, there would be a single reporting format for all SEZ units which
would cover all labour laws. Almost all acts have an inbuilt concept of
inspection and provision for penalty in case of non – compliance. Inorder to
show that company cares, out of philanthropic and business interest
companies extend welfare facilities beyond the mandatory requirements i.e.
voluntary or non-statutory welfare measures. Researchers nationally and
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internationally have constantly shown through their studies that Indian labour
laws need reforms, have not been very effective in providing the stipulated
benefits even to workers covered by them, lack of incentives for non- violation
and there are problems with its implementation. It is suggested that the laws
should be rationalized i.e. being made more consistent with the context,
should be merged wherever they deal with similar provisions like laws relating
to health, safety and welfare of workers (permanent or contractual) should be
brought under Factories Act or similar act like working/employment conditions
act. . With creation of merged act the return required will be simplified in the
sense that single format may suffice requirement under various act or at least
to start with the information to be supplied should be made through singular
formats or merging of many formats into one simple one as implemented by
M.P. government in SEZ. Rather than putting up all facilities at one go they
should be classified under three categories – critical, essential and desirable.
It is also suggested to use IT for making the information available through
single format to all the departments concerned. Government should bring
more clarity in labour laws by appropriately wording and defining it like core
and non – core activities in contract labour act and singular definitions of
terms throughout all laws. The debate on policy should focus on the efficient
design of regulations and institutions, rather than on “less regulation versus
more regulation”. Government should also try to strengthen the enforcement
machinery by adding more of physical and organizational resources. By no
means have we tended to suggest that compliance means creating panic. It
should be educating both to workers and companies and willful partnership.
The penalty clause under labour laws hardly acts as a deterrent for non –
compliance. Either it should be to impose severe fines as seen in Ontario
laws, where penalty for a contravention is the prescribed amount multiplied by
the number of employees affected by the contravention and increases with
every contravention. (Ontario ministry of labour, 2013). or move away from
the penalty mindset and have an incentive system for compliance. Research
showed that in general sanction strategy may work as deterrence but in
context of organisation, incentives work well when desired outcome is linked
to reward (Tyler, 2006). Such incentives can be company of the year
recognition, preferred government supplier status, promotion by government
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in international and national expo, best practices case study, tax benefit on
the amount spends on compliance and so on.
The second objective of the study was to study the labor welfare practices in
the chosen area of the study. This objective was fulfilled through chapter five.
The study found that most of the workers perceive that statutory welfare
measures provided by the companies are adequate except for washing facility
(more than half of the respondents). Most of the workers perceive PF and ESI
been extended to them though some issues with gratuity (which is available
mostly to permanent workers owing to eligibility of certain years of continuous
service). Almost all workers agree to the provision of weekly off but some felt
annual leaves to be inadequate. Non –statutory facilities are perceived to be
inadequate by many workers and ninety percent plus workers agree that
company has undertaken adequate measures to promote a healthy and safe
environment with appropriate safety equipments backed by safety training.
Workers also perceive the number of urinals and latrines to be sufficient in the
company.
Based on the findings, it is suggested that adequate washing facility should be
provided to workers which can be used to clean themselves and maintain
personal hygiene. Gratuity act should be modified to make it more inclusive
either by reducing the minimum service length of continuous service to 3
years or it should be made transferable as in case of PF. This should not only
be treated as a retirement benefit but also as a loyalty payment. Social
security benefits should be clubbed under one umbrella and single smart card
or identity such as unique social security number should be issued to a worker
which remains the same throughout all the social security benefits and
throughout worker’s life. Social security measures should be treated as an
investment providing financial support during the time of need.
Leaves are natural stress busters and worker gets time to spend with his/her
family that would have a positive impact on work-life balance and the worker
would be satisfied, productive and willing to work and stay in company.
Weston et al (2004) in their study on working fathers found that the fathers
who usually worked for 35-40 hours were the most contended and as the work
hours increased, satisfaction with work hours fell. There was increase in
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preference for shorter work hours even knowing that may bring in pay drop.
Even the people, who worked for longer hours for pay alone, were unhappy
about doing so as this would deprive them of time and energy to enjoy their
family life. Hence it is recommended that companies should make appropriate
provisions for adequate leaves for all its workers.
Non- statutory benefits are willful participation by a company towards

extending benefits to add more comfort and real earnings of the workers. It
should be viewed as a business interest (M M Rao, personal communication,
13 June 2012 and also refer Pedcini, 2011 chapter 3) that is providing
facilities makes a business sense like textile provides housing to lure skilled
workforce that may not be available locally or most of the companies provide
transportation to the workers because of the distance factor and worker may
not prefer travelling everyday given the cost and other factors involved and if
company provides petrol expenses to all, then that would be fairly expensive.
Company should continue investing in health & safety not only as a legal
requirement or being moved by good rather by understanding of positive
effects of a good working environment. Costs of accidents at work and work-
related ill-health place a considerable burden on society, companies and
individuals (European Union, 2011). Safety norms yield results only when it
becomes a habit. Habits are formed through continuous re-enforcement.
Such re-enforcement comes through training, monitoring and involving parties
concerned. Placing posters educating workers about do’s and don’ts which
are freely available from DGFLASI site (appendix - 1), company’s policy
regarding health, safety and other matters displayed at prominent places
(appendix - 2),educating workers about safety in premises and outside
premises, breaking the myth “it will never happen to me”, appreciation of
workers who follow safety norms and most importantly the managerial cadre –
right from supervisors to top are showing their concern regarding safety and
following safety norms would be leading by example.
The third objective of the study was to study the perception of workers
towards labor welfare practices across different sectors. This objective was
fulfilled in chapter sixth. The results indicate that workers perceive differences
across the sectors. In providing statutory welfare measures textile sector was
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perceived to be better followed by engineering sector. In extending social

security benefits miscellaneous sector was perceived to be better followed by
textile sector. For provision of leaves, miscellaneous sector was perceived
better followed by pharmaceutical sector. Non – statutory welfare measures
were perceived to be better with textile sector and miscellaneous sector was
the second in lead. Though in depth analysis of each sub – factor of the
constituent through posthoc further reveals that the sectors which are good at
providing one sub-factor may not hold the same perception by workers in the
another one. No significant difference was perceived amongst different sectors
in health and safety measures in the area of study.
There are two obvious implications for the same. One, sectors should improve
the facilities where they are perceptually deficient or should try to correct the
perception of workers through communication or other effective measures (in
case it is believed to be the matter of concern i.e. facilities provided are
perceived to be inadequate or the communication of the intention of welfare is
inadequate). Two, the recommendations which are true for companies may
be taken upto the sector level (because aggregation of companies make
sector. Beyond this two more factors can be notable based on the discussion,
observation and secondary data research and review. First, while employing
contractual labours the gap between permanent and contractual workers
should be minimized in all ways possible and logical ways. Second sectors
which usually employ female workers in a significant number should provide
for gender based facilities. It will ensure availability of workforce and higher
probability of women worker returning to the same employer after maternity.
Several options can be looked into providing such facilities in a cost effective
way. Either sectors can take up a call together or partner in existing
government schemes or government should take up as a welfare state. First
alternative could be mobile crèches presently active in some parts of the
country and engaged with construction sites and urban slum areas. Mobile
crèche has developed three models of service. Model one is based on direct
day care delivery in which crèche staff engages in day care involving health,
nutrition and non-formal education. Model 2 is daycare facilitation in which
employer share the cost of personnel and mobile crèche supervises the
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programme. Model 3 is transfer of ownership to independent crèches where

mobile crèche provides training to staff and other periodic services. The
employer has to provide for the infrastructure under all these models. .Model
1 & 2 are more opted for than model 3. Today it is not only limited to crèche
but have school centres too covering children from 0-12 years in the brackets
of 0-3 years, 3-6 years and 6-12 years group (Mobile Creches, 2013).
Partnering with such initiative could be useful both for company and
employee.
Next could be sector sponsored play school or such sectors joining hands
with government in ‘sarv siksha abhiyaan’ – a programme for universal
elementary education (SSA-MP, 2006). These primary school can be
developed on a PPP model – where a part of expenses to provide
nourishment (besides mid day meal), aya and other staff would be borne by
the sectors put together. Such a move may benefit all the parties concerned.
For government it would mean more enrollments in the school and literacy
rate going up. This would increase the future availability of quality workforce
and less of mal –nutrition. For employers it would mean lessening of burden in
terms of management and expenses due to pooling of resources of all
companies mandated to provide crèche and for workers it would mean that
the child is nourished both physically and mentally. Health, nutrition and
education / psycho-social development are all synergistically inter-related and
this makes a case for addressing all needs of children through a holistic
approach (Kaul & Sankar, 2009).
Maternity benefits could be clubbed with ‘Janani Suraksha Yojana’ (a safe

motherhood intervention under the National Rural Health Mission) (though
details can be worked out). Given the state of Madhya Pradesh being
identified as low performing state where institutional delivery are 25% or less
(National Health Mission, 2013).
Three reasons probably we can look into such amalgamation – world over
countries have successfully implemented in PPP model into various socio-
economic fronts, resource pooling would bring in better benefits in terms of
cost saving, more beneficiaries, and all concerned parties discharging their
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duties and especially, for companies it can mean fulfilling law requirements
and corporate social responsibility too.
Another option can be drawn from Venezuela. The difficult economic and
social situation had affected the low income class and poor households. To
correct this Venezuelan government took steps to help these families by
providing child care from 0- 6 years. The programme operates in conventional
houses equipped to provide adequate attention to groups of up to eight
preschool-aged children. A volunteer "caretaker-mother” is present in the
house every day and tends a group of children who live in nearby areas. She
is responsible for providing children with a clean, secure, and pleasant
environment. The children arrive at the home early in the morning and,
depending on the needs of their families, stay there a few hours or the whole
day. The national government is directly responsible for the coordination and
financing of the programme through the Ministry of the Family. The Ministry
formulates the guidelines of the programme and supervises the
implementation and operation of the homes. Also, the Ministry coordinates the
participation of different public and private institutions that provide technical
and financial support to ensure that the houses meet the basic hygienic and
safety requirements (Consultative Group Secretariat, 1992, UNESCO
International Bureau of Education, 2006).
The fourth objective of the study was to study the impact of welfare activities
on labours’ attitude and job satisfaction. In order to analyse the impact of
welfare measures on labour’s attitude and job satisfaction, correlation and
regression through step wise method were used. The result of correlation
shows that job satisfaction is significantly correlated with all the independent
variables (statutory welfare, social security, leave, non-statutory welfare,
health & safety). Step-wise regression further yielded that there is a significant
impact of four major welfare facilities (Health & Safety, Social Security, Leave,
Statutory Welfare facilities) on workers’ job satisfaction.
This model indicates that not all activities have a positive impact on job
satisfaction of welfare. Hence it is suggested that companies should invest in
those welfare facilities which would translate into job satisfaction. By this we
mean that rather than putting many practices at place companies should
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handpick those which have more impact on job satisfaction. In doing so the
company would make selective and targeted investment in welfare facilities,
this would increase the returns. Thereby it would be benefitting both the
workers and the companies. Vroom (1964), in his theory of expectancy
maintained that people work in expectation of some rewards, and welfare is
one of them. It can be understood in the way that the degree of reward
influences the quality and quantity of work, and in turn productivity. So it is
important to explore how to give the stimulus (welfare) in order to promote
work motivation and productivity.
The fifth objective of the study was to study the perception of managers
towards the benefits of implementation of labor welfare activities. This
objective was fulfilled through chapter eighth. The results indicate that most of
the managers had positive attitude of towards worker’s welfare. They have
intention to provide facilities to workers beyond the requirement of law.
However some managers do not share the same outlook. None of the
managers disagreed that company has plans to continue with the present
level of welfare and to add new offerings in the list of welfare activities. Most
of the managers were optimistic about the welfare facilities provided to
workers in the sense that they feel that it had benefited both the workers and
company. However some managers are skeptical about such benefits
especially about the impact of welfare on decreasing voluntary turnover rates
and on the rate of absenteeism. One way Anova result showed no significant
difference amongst different sectors in approach towards labour welfare and
perceived benefits from labour welfare in the area of study.
A positive outlook of management towards welfare will benefit workers and

companies in long run. Since some managers believe that the impact of
welfare on voluntary turnover rates and absenteeism, one way to deal with it
can be as suggested above that is they should aim at only those welfare
facilities which actually yields results in terms of job satisfaction which would
further result in productivity, lowering absenteeism and intent to leave. Other
could be managers should link welfare with productivity and other bothering
indicators, so that both parties can feel benefited.
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This also takes us to a question that whether managers have tried to look into
such linkage of welfare satisfaction and its outcome. If not, they should carry
on an annual survey of employee to calibrate it against the desired outcomes.
Finally, company can look into providing best to the workers and getting best
out of the workers till the worker stays in the company so that at the end of
day the equation stand balanced and no one feels being overtly used or
overtly kind.
9.2 Overall conclusion
Welfare will be meaningless if its not positively perceived by workers. They

should bear it in mind all times that for the significant time and energy spend
its not only the money they get in return rather they are working in an
environment which is safe, healthy and should look at the company as a
creator of their overall well being. Its then that companies can look forward to
productivity and efficiency. Higher productivity not only requires modern
machinery and hard work, but it also calls for co-operative endeavor of the
parties- labour and management. All organizations wish to excel in their field
of business. This is possible only when labour is given due importance and
human element is taken into account at every stage besides other resources.
(Chhabra, Choudhary & Kushwah, 2014). On the similar lines manufacturing
managers at U.S. have realized that programs to improve productivity must
deal with both the technical and human sides of production. (Stahl, 2013).
This takes us to the F W Taylor’s proposed the concept of ‘mental revolution’

(Buchanan & Huczynski, 2004), that is what we feel every industry need even
today. Workers and management both are the wheels of the same productive
cycle – a positive attitude of cooperation, of sharing the gains, creating equity
and not equality and above all a harmonious environment where people can
give their best to the work and take back best from the work; balancing the
relationship that exist between the workers and the work providers should be
developed and nurtured. . Companies must do whatever they can to promote
the wellness of employees even if its beyond the statutory requirements and
workers should appreciate it not only as a additional cost but the good
intention of management. This all should translate into better industrial
relations and productivity. Kaur & Maheshwari (2005) also concluded from
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their study that solution can be reached if the parties concerned are willing to
cooperate leaving their extreme positions. There has to be meeting ground to
address stakeholders interest. Labour reforms can resolve the anti-labour
stand in the employer’s mindset and preconception of labour. Both of them
should realize that they need each other and harmonious relationships can be
established if they work towards defending mutual interest rather than
repugning for them
Finally we look into the TVS story to understand how management & workers
have jointly put in efforts to create ‘symbioses’.
The TVS group has never faced any serious labour problem in over hundred
years of its existence, even when a nationwide strike was called, employees
preferred to be within premises rather than travelling to & fro from their home
and continued to work. When TVS & sons sought to temporarily reduce
worker’s wages during the global financial crisis of 2008, it left the decision to
workers. Beyond management’s expectation of 5 % reduction, the employees
came up with 15% cut and when the downturn was over, the pay cut decision
was rolled back.
The relationship with its employees has transformed TVS group from a small
family business to a conglomerate employing 25,000 employees and
operations spread in US, Europe, Indonesia and China.
Management treats workers as extended family. MD & Chief of the company

meets the workers across all factories at least thrice a year. The interaction is
followed up with concrete action in redressing workers' grievances and
looking after their needs. The group has been always ahead in workers’
welfare. It started paying PF early in 1940s before it became mandatory in
1952 and gratuity is paid since mid of 1960s (gratuity act came in 1975). It
has always striven to give as much bonus as possible - much more than the
legal minimum requirement of 8.33 per cent even when it did not have enough
profits. Other employee welfare efforts include a health food section started
recently at the Sundram Fasteners factory canteen - providing only health
food at subsidised prices. Indeed, all the TVS Group companies ensure their
employees consume healthy food at the workplace: the choice of cooking oil,
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the quality of the rice used and the quantity of spices used at office canteens
are all monitored closely. Medical costs, including that of employees' family
members, however high, are borne by the company. It also offers
scholarships for employees’ children.
Members of the top management meet employees when they retire; HR

departments help them plan their post-retirement finances. If an employee
dies while in service, his dependents get not only his dues, but also the
proceeds of a 'death fund' created for him, to which every employee of the
company concerned contributes a day's salary and the management matches
the contribution.
Keeping its labour force happy has benefited TVS in many ways. The first four
Indian companies to win the Deming Prize were all from the TVS Group -
Sundaram Clayton, Sundaram Brake Linings, Brakes India, and TVS Motor.
With cooperative employees, TVS companies have had no problems
introducing modern manufacturing practices such as total quality
management, total productive maintenance and lean manufacturing, enabling
them to compete better. Sundram Fasteners was a consistent winner of the
best global supplier of the year award from General Motors for years. Another
group company, Sundaram Clayton wanted to make major alterations in its
production process which would have required a single worker to handle
several machines. Unions then were committed to the principle that a worker
should only specialise in handling one kind of machine but unions did so
without asking for any additional benefit for the workers. Again, while most
labour unions invariably protest if the management takes punitive action
against unproductive or errant employees, TVS unions identify such
employees on their own, and seek to correct them. If they fail, they
themselves bring the worker's conduct to the notice of the management.
Attrition levels at the group are low as well.
TVs group has equally been successful in taking the group values and
concern for employees in their international expansion. At the company's
manufacturing facility in China's Zhejiang province after the initial teething
troubles of large-scale attrition (as private sector Chinese workers are
notorious for switching jobs for a few dollars more) the company has been
254
able to win over employees, and most of them have stayed on for more than
five years (Madhavan, 2011).
Therefore in nutshell it is the attitude of management towards the workforce

that is expressed in well – being (far beyond welfare norms). One may argue
that TVS being a big group can afford such measures or should it be contrary
that its their intention right from being a small company (running a rural
transport service in the temple town of Madurai in southern Tamil Nadu) which
converted them into a group of companies that has kept its commitment
towards employee intact even in all highs and lows.
1. The same kind of study can be conducted at other industrial areas of

Madhya Pradesh separately and/or the findings can be compared with
the present study.
2. Presence of trade union has an impact on the welfare of workers. it can

be explored as an variable impacting welfare. Comparison can be done
in terms of firms with and without trade unions and the position of
welfare of workers.
3. Demographic variables may also be studied in context of welfare and

job satisfaction. In other words, the impact of demographic variables
can be studied on perception of welfare and resulting job satisfaction
i.e. impact of welfare on job satisfaction mediated by demographic
factors.
4. Many researches point out the difference in welfare facilities according

to the workman status. This can be studied in a company as a case
study or an industrial area, drawing comparison between permanent
and contractual labour.
5. Many welfare provisions are being put in place for women with an aim
of increasing the well being of existing women workers and that it
255
would increase workforce participation rate of women. The impact of

such woman benefiting practices on woman workforce can be studied
either at a macro or micro level.
6. Perception of both the two parties (employer and employee) in towards

welfare is important to understand the full circle of benefits. It would
help in knowing the mindset of provider and beneficiary and also
analysing the perceptual gap between managers and workers
regarding welfare can be studied.
त वर फल न हं खात है , सरवर पय ह न पान।

क ह रह म पर काज हत, संप त सँच ह सज
ु ान॥
A tree doesn’t eat its own fruits. A lake doesn’t drink its own water.
Those who are good, accumulate wealth for the welfare of others.
(Gems of spirituality (2011)
256
References …………………………… i - xxviii
Appendices …………………............ A-J

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Appendix - 1
Je dY;k.k iz”ukoyh
fiz;]
d`i;k le; fudkydj iz'ukoyh Hkjus dk d"V djaAs vki ds }kjk fn;s x;s mRrjksa dks
lgh ;k xyr ugha vkdk tk;sxkA vki ds mRrj iw.kZr% vki dh jk; gaSA
izR;sd dFku dk mRrj fn;s x;s 5 ¼ik¡p½ cDlksa ¼dks"Vd½ esa ls fdlh ,d gh dks"Vd
esa lgh ¼½ dk fu'kku yxkdj nsuk gSA d`i;k ;g lqfuf'pr djsa fd dFku ds mRrj esa tks
ckr vf/kd le; ds fy;s jgrh gks mlh eku ls vki fVd djsaA
vki ds }kjk nh xbZ tkudkjh iw.kZr% xksiuh; jgsxh rFkk bl dk mi;ksx dsoy
'kS{kf.kd mís'; ds fy;s fd;k tk;sxkA
jksxtkj dk {ks= %&vkVks eksckby ¼ ½] VsDlVkby ¼ ½] Qkjek ¼ ½] baftfu;fjax ¼ ½ vU; -----------

eSa ftl dEiuh es dke djrk gw¡ oks Hkkjrh; ¼ ½] cgqjk"Vªh; ¼ ½] la;qDr ifj;kstuk ¼ ½]
,l-bZ-tsM+ fLFkr ¼ ½] vU; ¼ ½
fyax %& iq:"k ¼ ½ efgyk ¼ ½
vk;q % ----------------------------------------
f”k{kk % ----------------------------------------
laxBu esa vuqHko &&&&&&&& ¼o"kksZ esa½] dqy vuqHko &&&&&&&& ¼o"kksZ esa½]
ekfld osru %& ------------------------------------
ifjokj esa lnL; %& o;Ld &&&&&&&&&&&& cPps &&&&&&&&&&&&
deZpkjh dh dk;Z fLFkfr %& ¼1½ dq'ky ¼ ½ v)Z dq'ky ¼ ½ vdq'ky ¼ ½
¼2½ LFkk;h ¼ ½ vLFkk;h ¼ ½ vuqcaf/kr ¼ ½
izfrfnu dk;Z ds lkekU; ?kUVs % -----------------------------------------
QSDVªh esa dqy Jfedksa dh la[;k%& iq:"k --------------------- efgyk ------------------¼yxHkx½
A
Øa- iz”u @ dFku iw.kZr% lger vfuf”pr vlger iw.kZr%
lger vlger
,½ oS/kkfud dY;k.k lqfo/kk,¡ %&

1- dEiuh esa Lo;a dh lQkbZ dh O;oLFkk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
2- ;g O;oLFkk iq:"kksa vkSj efgykvksa dh fy;s ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
vyx&vyx gSA
3- lQkbZ ds fy;s ikuh iwjs lky miyC/k jgrk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
4- dk;Z ds nkSjku u iguss tkus okys diM+ksa dks ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
j[kus dh mfpr O;oLFkk gSA
5- dEiuh esa mfpr foJke x`g ¼”ksYVj½ miyC/k gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
6- foJke x`g ¼”ksYVj½ lkQ lqFkja]s jks”kuh okys ,oa ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
goknkj gSA
7- deZpkjh tks [kMs+ jgdj dke djrs gS] foJke dk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
volj feyus ij muds cSBus dh mfpr O;oLFkk
gSA
8- IkzzkFkfed mipkj ¼QLV ,M½ dh lqfo/kk dEiuh esa ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
miyC/k gSA
9- ,EcqysUl d{k ¼chekj d{k½ dh O;oLFkk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
10- dk;Z ds nkSjku vko”;drk iM+us ij MkWDVj ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
miyC/k gSA
11- xEHkhj gkyr esa deZpkjh dks vLirky ys tk;k ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
tkrk gSA
12- dSUVhu esa Hkkstu ,oa uk”rk fj;k;rh njksa ij ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
feyrk gSA
13- dSUVhu esa cSBus dh mfpr O;oLFkk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
14- ihus dk ikuh lky Hkj feyrk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
15- dY;k.k vf/kdkjh }kjk deZpkfj;ksa dh dY;k.k ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
xfrfof/k;ksa dk lapkyu fd;k tkrk gSA
16- efgyk deZpkfj;ksa ds 6 o"kZ ls NksVs cPpksa ds ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
fy;s dEiuh esa >wyk?kj dh O;oLFkk gSA
17- >wyk?kj esa cPpksa dh ns[kHkky ds fy;s vk;k gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
B
lger vlger
ch½ Lkkekftd lqj{kk ekin.M %&

18- ik= deZpkfj;ksa dks ih-,Q-dk ykHk feyrk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
19- dEiuh ik= deZpkfj;ksa dks xzstqVh dk ykHk nsrh gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
20- dEiuh vleFkZrk ykHk nsrh gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
21- dEiuh }kjk deZpkfj;ksa dk chek djk;k x;k gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
22- jkT; deZpkjh chek ¼bZ-,l-vkbZ-½ dk ykHk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
deZpkfj;ksa dks feyrk gSA
23- efgyk deZpkfj;ksa dks izlwfr ykHk feyrk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
24- dEiuh }kjk deZpkfj;ksa dks lkIrkfgd vodk”k ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
fn;k tkrk gSA
25- Lkkykuk vk/kkj ij i;kZIr loSrfud vodk”k ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
feyrk gSA
lh½ voS/kkfud dY;k.k lqfo/kk,¡%&
26- dEiuh }kjk lgdkjh vk/kkj ij mfpr ewY; dh ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
nqdkusa lapkfyr dh tkrh gSA
27- deZpkfj;kas dh f”k{kk c<+kus ds fy;s] dEiuh }kjk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
foRrh; vkSj vfoRrh; izksRlkgu fn;k tkrk gSA
28- Lkjy _.k lqfo/kk miyC/k gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
29- _.k dh okilh vklku fd”rksa esa gksrh gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
30- dEiuh esa vkus&tkus ds fy;s] okgu lqfo/kk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
fj;k;rh nj ij ;k eq¶r esa miyC/k gSA
31- dk;ZLFky ij vkus&tkus ds fy;s feyus okyk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
;k=k HkRrk i;kZIr gSA
32- lkaLd`frd xfrfof/k;k¡ vk;ksftr dh tkrh gSaA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
33- dEiuh }kjk [ksydwn vk;ksftr fd;s tkrs gaSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
34- dEiuh esa i=&if=dk] v[kckj vkfn miyC/k gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
35- dEiuh }kjk vkokl lqfo/kk iznku dh xbZ gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
36- nh xbZ vkokl lqfo/kk esa jax&jksxu vkSj ejEer ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
dEiuh }kjk djk;k tkrh gSA
37- dEiuh }kjk fn;s tkus okyk edku HkRrk i;kZIr gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
C
lger vlger
Mh½ LokLF; rFkk lqj{kk %&
38- dk;Z LFky ij deZpkfj;kas ds LokLF; ,oa lqj{kk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
dh mfpr O;oLFkk gSA
39- dEiuh eas i;kZIr ek=k eas 'kkSpky; ,oa ew=ky; ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
gaSA
40- Tkksf[ke Hkjs dk;Z djus okys deZpkfj;ksa dks ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
dEiuh }kjk lqj{kkRed iks"kkd nh tkrh gSA
41- vkx cq>kus] [krjukd dsfedy ,oa xSlksa ls ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
cpko ds fy;s i;kZIr lk/ku gaSA
42- dEiuh }kjk lqj{kk izf”k{k.k fn;k tkrk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
bZ½ dk;Z larq"Bh ,oa O;ogkj %&
43- dk;ZLFky vPNh fLFkfr esa gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
44- izfrfnu esjs dk;Z djus ds ?k.Vs larks"ktud gSaA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
45- esjk dk;ZHkkj izk;% U;k; laxr gksrk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
46- eSa lkSisa x;s dk;Z ds vuqlkj {kerk vkSj dq”kyrk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
j[krk gw¡A
47- esjk dk;Z Hkh dEiuh dh mUufr esa lgk;d gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
48- dk;Z djus ds fy;s vko”;d lk/ku vkSj ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
midj.k miyC/k gSA
49- eq>s dk;Z djus esa vkuUn vkrk gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
50- dEiuh dh inksUufr uhfr ls eSa larq"B gw¡A ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
51- vf/kdkjh esjs vPNs dk;Z dh iz”kalk djrs gaSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
52- t:jr iM+us ij esjs ofj"B eq>s ekxZn”kZu vkSj ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
lgk;rk nsrs gSaA
53- viuh leL;kvksa ds ckjs esa vius ofj"Bksa ls ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
ckrphr djus esa eSa Lora=rk dk vuqHko djrk
gw¡A
54- Eksjs ofj"B dksbZ HksnHkko ugha djrs gaSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
55- dk;Z ls lacaf/kr esjs }kjk fn;s x;s lq>koksa dks ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
essjs ofj"B egRo nsrs gSaA
56- esjs lkFkh deZpkjh lgk;rk ds fy;s rS;kj jgrs gSa ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
57- lkFkh deZpkfj;kas ds lkFk esjs vPNs laca/k gS ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
D
lger vlger
58- esjh ukSdjh bl dEiuh eas lqjf{kr gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
59- dEiuh }kjk fd;s x;s dY;k.kdkjh mik;ksa dk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
ykHk deZpkfj;ksa dks feyrk gSA
60- dEiuh }kjk viuk;s x;s lkekftd lqj{kk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
ekin.Mksa dks t:jr iM+us ij eq>s ykHk feysxkA
61- dEiuh }kjk pyk;s tk jgs JedY;k.k dk;ksZ ls ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
eS larq"B gw¡A
62- deZpkfj;ksa vkSj izcU/ku esa vPNs lEcU/k gSA ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
63- dk;Z ds eku ls fn;s tkus okys osru ls eS larq"B ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
gw¡
64- eS ,d vPNh dEiuh ds fy;s dk;Z djrk gw¡A ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
65- eS bl dEiuh esa dk;Z djrs gq;s vius ifjokj dks ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
,d vPNk thou ns ldrk gw¡A
66- bl dEiuh esa dk;Z djus ij esjh lkekftd ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
izfr"Bk esa o`f) gqbZ gSA
67- ;fn bl ls vPNk volj feyk rks eSa ;g ukSdjh ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
NksM+ nwaxkA
68- t:jr iM+us ij eaS fdlh Hkh le; dke ij vk ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
ldrk gw¡A
69- eSa vius fj”rsnkjksa vkSj fe=ksa dks bl dEiuh esa ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
ukSdjh djus dh lykg nwaxkA
70- dqy feykdj eSa viuh ukSdjh ls larq"B gw¡A ¼ ½ ¼ ½ ¼ ½ ¼ ½ ¼ ½
E
Appendix - 2
Labour Welfare Questionnaire (Company)
Dear Respondent,
Please find time to fill the questionnaire. We hereby ensure you that, the information provided by
you won’t be disclosed to anyone else & would be used for academic purposes only.
Year of establishment ……………….. Status – Indian/ MNC/JV/SEZ located/any other

…………………………….
Sector ……………………………………………………………
Number of workers normally employed in a year ……………………………… (Total Number)
i) Skilled………………….. ii) Semi – Skilled …………………… iii) Unskilled …………………….

1) Permanent ………………………….. 2) Contractual ………………………………………..
a) Male ………………………….. b) Female…………………..
Number of workers normally employed in a Shift ………………………………
Total Expenditure on welfare measure –
a. 2009-10 ………………………….
b. 2010-11 ………………………….
c. 2011-12 …………………………..
Profit after tax –
a. 2009-10 ………………………….
b. 2010-11 ………………………….
c. 2011-12 …………………………..
1. Number of First – Aid boxes available …………………….

2. The capacity of dining hall is ……………………… % of workers working at a time.
3. Number of rest rooms available ……………………………..
4. Number of Welfare Officers ………………………………….
5. Number of sweepers – Fulltime ……………………. Part time …………………………..
6. Number of – Latrines ………………………. Urinals ………………………………
7. Number of leaves on an annual basis given to workers ……………………………..
8. Overtime Rate Paid – Single 1.5 times Double Other
……………………………………
9. Conveyance allowance (If provided) - …………………………. In Rs. Per month.
10. HRA (if provided) …………………………….. in Rs. Per Month
F
Please indicate your response as –
1- Strongly Disagree, 2- Disagree, 3 – Neither Agree nor Disagree, 4 –Agree, 5 – Strongly Agree.
1. Adequate Washing facility is provided in the company

2. Separate washing facility is available for males & females
3. Water supply throughout the year is sufficient
4. Suitable place is available for keeping clothes not worn during working hours
5. Adequate shelters or rest rooms are available within the company
6. Rooms are well lighted, ventilated and maintained in cool & clean condition
7. Necessary sitting arrangements are available for workers who work in standing position
8. First aid facility with adequate equipments is available within the company
9. Ambulance (sick room) with necessary equipments is available
10. Medical officer is readily available in case of need during working hours
11. In serious cases the employee is taken to hospital
12. Food/snacks is provided at concessional/nominal rate in the Canteen
13. Proper sitting arrangements are available in the canteen
14. Adequate & clean drinking water is available throughout the year
15. Welfare officer takes care of the welfare programmes
16. Proper Crèche facility is available for female workers’ children of under 6 years of age.
17. Aya is available to take care of children in the crèche.
18. Eligible workers get PF benefits
19. Company provides gratuity to eligible employees
20. Company extends disability benefits (temporary/permanent disability)
21. Workers are covered under insurance scheme
22. ESI benefits are available to workers.
23. Maternity benefits are available to the female workers
24. Weekly off is provided by the company.
25. Sufficient leaves with wages are provided on annual basis
26. Company runs cooperative shops where daily needs things are available at a concessional
rate
27. Financial/non-financial incentives are provided by organization for furthering education of
workers
28. Loan facility is provided by the company
29. Repayment of loan is in easy installments
30. Adequate transport facility is available free of cost or at a concessional rate to & fro the
workplace.
31. The Conveyance Allowance(if applicable) is sufficient to cover to & fro expenses to the
workplace
32. Cultural activities are organized on a regular basis
33. Company organises indoor/outdoor sports
34. Magazines, Newspapers, general reading books are available for reading in the company.
G
35. Housing facility is provided by the company
36. The company takes care of timely repairs, whitewash etc.
37. HRA provided by the company is sufficient.
38. Adequate measures are taken to ensure health & safety of workers in the work premises.
39. Sufficient number of latrines & urinals are present
40. Protective clothing is provided by the company for workers handling hazardous work
41. Company has adequate equipments for fire fighting, dealing with hazardous chemicals/gas
42. Safety training is provided by the company
43. Any other welfare measures ………………………………………………………………………………………………
……………………………………………………………………………………………………………………………………………….
....................................................................................................................................................
Please indicate your response as –
1- Strongly Disagree, 2- Disagree, 3 – Neither Agree nor Disagree, 4 –Agree, 5 – Strongly Agree.
44. Company provides the welfare measures not only because it’s a statutory requirement.
45. Company goes beyond law requirement to ensure welfare of its workers
46. Company has plans to continue & further all the welfare measures
47. The impact of welfare measures implemented by the company has been –
a. There has been no strikes/lockouts/slowdown due to welfare measures during last
three years
b. Added in real way to the earnings of workers
c. Positive attitude of workers towards work & company
d. Belongingness towards company
e. Workers’ voluntary participation in work improvement techniques
f. Better quality of work-life for workers
g. Cooperative attitude of workers
h. Industrial relations have improved
i. Productivity has improved
j. Increased the job satisfaction amongst workers
k. Decreased voluntary turnover rates
l. Rate of absenteeism has by & large decreased
m. Installed the attitude of “My Company, My Work”.
n. Wasteful practices have reduced
o. Overall added to the profitability of company
p. The benefits of providing welfare facilities over-weigh its cost.
H
Appendix - 3
Safety & Health Art Gallery, DGFSLAI
I
Appendix – 4
DISPLAY OF COMPANY POLICY REGARDING HEALTH & SAFETY

Thesis Overall

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Thesis Overall

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LABOUR WELFARE PRACTICES IN THE

PRIVATE ENTERPRISES. ‘A STUDY OF

Under the Supervision of :- Submitted by :-

Dr. Vivek S. Kushwaha Shreshth Chhabra

I declare that the thesis entitled LABOUR WELFARE PRACTICES IN THE

Signature of Supervisor Signature of Candidate

This is to certify that the work entitled LABOUR WELFARE PRACTICES IN

To the best of my knowledge and belief the Thesis;

(1) Embodies the work of the candidate himself;

Chapter six covered the study of welfare from a sectoral perspective. It

Seventh chapter is dedicated to the study of job satisfaction as a job attitude

Companies represented through manager’s approach toward welfare and

At the outset, I offer my heartiest gratitude to my guide, Dr. Vivek S Kushwah,

I am indebted to Dr Sumer Singh, Director and Dr Manish Mittal, Program

I would fail in my duty, if I don’t remember my family members at this juncture,

5. LABOUR WELFARE IN PRACTICE 116 - 161

6. LABOUR WELFARE PRACTICES ACROSS 162 - 205

7.1 Impact of welfare measures on job satisfaction

8. WELFARE BENEFIT ANALYSIS 220 - 243

9. FINDINGS, SUGGESTIONS AND CONCLUSION 244 -256

10. REFERENCES i - xxviii

11. APPENDICES A-J

Table No. Title of the table Page No.

2.1 Distribution of companies 21

2.2 Distribution of workers – sector wise 22

2.3 Distribution of workers as per Company status 23

2.4 Distribution of workers- Company – sub status 23

2.5 Gender distribution 23

2.6 Sector wise distribution of Gender 24

2.7 Distribution of workers – Skill level wise 25

2.8 Distribution of workers – Worker status 25

2.9 Sectors * worker status cross – tabulation 26

2.10 Worker status * Skill level cross - tabulation 27

2.11 Distribution of workers – Age wise 28

2.12 Distribution of workers – Education wise 28

Distribution of workers – Experience wise

Distribution of workers – Experience wise

2.15 Distribution of workers – wage wise 28

2.16 Industrial climate of MP 32

5.1 Washing facility 116

5.2 Shelter/ rest rooms 119

5.3 Medical facility 122

5.4 Canteen facility 125

5.5 Labour welfare officer 127

5.6 Crèche facility 128

5.7 Statutory Welfare Consolidated 130

5.8 Social security 131

5.9 Leaves 135

5.10 Cooperative shop 137

5.11 Educational support 138

5.12 Loan facility 139

5.13 Conveyance facility 141

5.14 Recreational facility 143

5.15 Housing facility 145

5.16 Non-Statutory facilities - consolidated 148

5.17 Health and safety measures 149

6.1 Descriptive : Statutory welfare measures 162

6.2 ANOVA : Statutory welfare measures 162

Descriptive : Statutory welfare measures’

ANOVA: Statutory welfare measures’

Post Hoc analysis of statutory welfare

Post Hoc summary - statutory welfare

6.7 Descriptive : Social security 176

6.8 ANOVA: Social security 176