Definition and Evolution of Industrial Relations

What are Industrial Relations?

Industrial relations define relationships between employers and employees toward each other in terms of supervision, direction, planning and coordination of organizational activities, with minimal human effort and functions; all this done with an enthusiastic spirit taking into consideration the safety of all employees. Industrial relations may also be defined as relations between employees and management.

Evolution of Industrial Relations:

The evolution of industrial relations in India began a long time ago. The caste system greatly influenced the ancient industries and their development. Due to successive foreign invasions in India, the living conditions of slave and artesian couldn't be differentiated. Furthermore, under the autocratic regime of Muslim rulers, the conditions of employees worsened. Wages were not guaranteed, the living conditions of workers were harsh, and there was no proper management. The coming of the British didn't improve the working conditions. After some time, however, most Indian industries were modeled after the British system of business, and this led to growth in various sectors.

Industrial Relations under British Rule:

During British rule, India was expected to be a colonial market for British goods up until a cotton mill was established in Mumbai in 1853 and a jute mill was established in Kolkatta in 1955. The working conditions of workers, however, were still very harsh with low pay, and this gave rise to various disputes involving the management and employees. On the other hand, Tata Iron and Steel industry was also established in Jamshedpur in 1911. While there was great demand of iron and steel before and during the First World War, the working conditions of workers hadn't improved. Hence, the Factories Act of 1881 was established, and it granted workers certain rights.

Industrial Relations in First World War:

The First World War was an opportunity in disguise for local factories in India. Prices of virtually all products went up and profits soared, however, wages of lower employees were still the same. There were various strikes and disputes between management and employees. During this time, the Workmen's Compensation Act (1923), the Trade Union Act (1926), and the Trade Disputes Act (1917) were established. While the wages of employees remained the same, they were given a certain share of profits made by their hiring industry. Strikes, however, were sometimes prohibited under the Emergency Rules. The years following World War II involved the most workers' upheaval, and saw the establishment of Industrial Employment Act (1946) and Industrial Disputes Act (1947).

Post-Independence Industrial Relations:

The post-independence era saw a developing relation between industry and labor. A conference called the Industrial Truce Resolution took place in 1947, and foresaw the establishment of the Minimum Wages Act, Factories Act, and Employees State Insurance Act in 1948. This ensured peace between labor and industry. While industrial relations in India have evolved a long way, some features of the early system still exist today. Modern industrial relations are dynamic, and may integrate industrial policies of American and British businesses.

Concept, Scope and Objectives of Industrial Relations

What are Industrial Relations?

The concept of Industrial relations has been defined using various terminologies, but in the strictest sense, it is essentially the relationship between management and labor. The full concept of industrial relations is the organization and practice of multi-pronged relationships between labor and management, unions and labor, unions and management in an industry. Dale Yoder defines it as a "whole field of relationships that exists because of the necessary collaboration of men and women in the employment process of an industry."

Role of Industrial Relations:

Industrial relations are associated with labor, management, labor unions, and the state. The scene of industrial relations has grown tremendously, and cannot be represented merely by relations between management and labor. It has become a comprehensive and total concept embracing the sum total of relationship that exists at various levels of the organizational structure. Additionally, it connotes relationships between workers themselves within the labor class, and relations among the management within the managerial class. In an open sense, industrial relations denote all types of relations within a group and outside a group - both formal and informal relations.

Objectives of Industrial Relations:

1. Protect management and labor interests by securing mutual relations between the two groups. 2. Avoid disputes between management and labor, and create a harmonizing relationship between the groups so productivity can be increased. 3. Ensure full employment and reduce absenteeism, hence, increasing productivity and profits. 4. Emphasize labor employer partnership to establish and maintain industrial democracy. This is done to ensure the sharing of profit gains, and personal developmental of all all employees. 5. Provide better wages and living conditions to labor, so misunderstandings between management and labor are reduced to a minimum. 6. To bring about government control over plants where losses are running high, or where products are produced in the public interest. 7. To bridge a gap between various public factions and reshape the complex social relationships emerging out of technological advances by controlling and disciplining members, and adjusting their conflicts of interests.

Conceptual Model of Industrial Relations

Role of State Intervention:

State intervention in business is necessary in a developing country because of the following reasons: 1. Developing countries lack powerful labor unions, enabling organizations to exploit workers and even ignore their demands. This is why governments have to step in and play a role in delineating certain parameters of industrial relations. 2. When the conditions of laborers worsen, and/or disputations arise, the government cannot be a silent bystander. It has to intervene in the situation and try to satisfy both sides by being a preceptor or an intermediary, and establish peace. 3. The federal nature of the constitution has made it imperative for the state to intervene in matters of labor to ensure a smooth and continuous operation. The state and the central governments have established certain laws that have to be followed by businesses. These are: the Plantations Act of 1952, the Minimum Wages Act of 1948, the Industrial Disputes Act, the Payment of Bonus Act of 1965, the Contract Labor Act of 1970, the Payment of Gratuity Act of 1972, the Bonded Labor System Act and the Remuneration Act of 1978. 4. The Directive Principals of the Constitution enjoin upon the state to establish a welfare state and to look after the interests of the weaker sections of the society, for example, the physically disabled. Industrial Unrest: Industrial unrest is the term used to describe activities undertaken by the workforce when they protest against pay or conditions of their employment. Casues of Industrial Unrest: The disputes between the management and the workers may arise on account of the following factors: 1. Economic Cause: These causes may be classified as: Demand for increase in wages on account of increase in all-India Consumer Price Index for Industrial Workers. Demand for higher gratuity and other retirement benefits.

Demand for higher bonus. Demand for certain allowances such as: House rent allowance Medical allowance Night shift allowance Conveyance allowance Demand for paid holidays. Reduction of working hours. Better working conditions, etc. 2. Political Causes: Various political parties control Trade unions in India. In many cases, their leadership vests in the hands of persons who are more interested in achieving their political interests rather than the interests of the workers. 3. Personnel Causes: Sometimes, industrial disputes arise because of personnel problems like dismissal, retrenchment, layoff, transfer, promotion, etc. 4.lndiscipline: Industrial disputes also take place because of indiscipline and violence on the part of the workforce. The managements to curb indiscipline and violence resort to lock -outs 5.Misc. causes: Some of the other causes of industrial disputes can be: Workers' resistance to rationalization introduction of new machinery and change of place Non- recognition of trade union Rumours spread out by undesirable elements Working conditions and working methods Lack of proper communication Behaviour of supervisors Inter trade union Rivalry etc

Minimising Industrial Unrest/ Measures to improve industrial Relations: Now enough of disputes!! Let us find out the ways of improving Industrial relations, that is what steps should be taken to improve industrial relations. The following measures should be taken to achieve good industrial relations: (i)Progressive Management Outlook. There should be progressive outlook of the management of each industrial enterprise. It should be conscious of its obligations and responsibilities to the ownersof the business, the employees, the consumers and

the nation. The management must recognize therights of workers to organize unions to protect their economic and social interests. (Dont you agree?) (ii)Strong and Stable Union. A strong and stable union in each industrial enterprise is essential for good industrial relations. The employers can easily ignore a weak union on the plea that it hardlyrepresents the workers. The agreement with such a union will hardly be honoured by a large sectionof workforce. Therefore, there must be a strong and stable union in every enterprise to represent ehmajority of workers and negotiate with the management about the terms and conditions of service.Please understand that the workers should realize that they have to be united and representthemselves strongly. (iii) Atmosphere of Mutual Trust. Both management and labour should help in the development of an atmosphere of mutual cooperation, confidence, and respect. Management should adopt a progressive outlook and should recognize the rights of workers. Similarly, labour unions should persuade theirmembers to work for the common objectives of the organization. Both the management and theunions should have faith in collective bargaining and other peaceful methods of settling disputes. (iv) Mutual Accommodation. The employers must recognize the right of collective bargaining of the trade unions. In any organization, there must be a great emphasis on mutual accommodation ratherthan conflict or uncompromising attitude.One must clearly understand that conflicting attitude doesnot lead to amicable labour relations; it may foster union militancy as the union reacts by engagingin pressure tactics. The approach must be of mutual give and take rather than Take or leave. Themanagement should be willing to co-operate rather than blackmail the workers. (v) Sincere Implementation of Agreements. The management should sincerely implement the settlements reached with the trade unions. The agreements between the management and the unionsshould be enforced both in letter and spirit. If the agreements are not implemented then both theunion and management stop trusting each other. An environment of uncertainty is created. To avoidthis, efforts should be made at both ends to ensure the follow up of the agreements. (vi) Workers Participation in Management. The participation of workers in the management of the

industrial unit should be encouraged by making effective use of works committees, joint consultationand other methods. This will improve communication between managers and workers, increaseproductivity and lead to greater effectiveness. (This will be discussed later in much detail. (vii)Sound Personnel Policies. The following points should be noted regarding the personnel policies. The policies should be: Formulated in consultation with the workers and their representatives if they are to be implemented effectively. Clearly stated so that there is no confusion in the mind of anybody Implementation of the policies should be uniform throughout the organization to ensure fair treatment to each worker. Last but not the least, is the role of the government. (viii)Governments Role. The Government should play an active role for promoting industrial peace. Itshould make law for the compulsory recognition of a representative union in each industrial unit. Itshould intervene to settle disputes if the management and the workers are unable to settle theirdisputes. This will restore industrial harmony
What is Collective Bargaining? Collective bargaining is a technique adopted employers and employees of an organisation to resolve their existing or future differences with or without assistance of a third party. Its ultimate aim is to reach to a decision which is acceptable to both the parties involved in labour-management relation. Collective Bargaining is a mode of fixing the terms of employment by means of bargaining between an organized body of employees and an employer, or an association of employers usually acting through organized agents. The essence of collective bargaining is a bargain between interested parties, and not a decree from outside parties. - Hoxie Collective Bargaining takes place when a number of work-people enter into a negotiation as bargaining unit with an employer or group of employers with the object of reaching an agreement on the conditions of employment of the work-people. - Richardson. Collective bargaining may be decided as a process of negotiation between the employers and the organized workers represented by their union in order to determine the terms and conditions of employment. In the process of Collective Bargaining employees and management collectively bargain for their common interests and benefits and reach to an amicable solution jointly through negotiation. Collective bargaining is based on the principal of balance of power

Importance of collective Bargaining: Collective bargaining includes not only negotiations between the employers and unions but also includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary decision making. It establishes rules which define and restrict the traditional authority exercised by the management. Importance to employees Collective bargaining develops a sense of self respect and responsibility among the employees.

It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group. Collective bargaining increases the morale and productivity of employees. It restricts managements freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged. Effective collective bargaining machinery strengthens the trade unions movement. The workers feel motivated as they can approach the management on various matters and bargain for higher benefits. It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.

Importance to employers 1. It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers. 2. Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management.

3. Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making. 4. Collective bargaining plays a vital role in settling and preventing industrial disputes. Importance to society 1. Collective bargaining leads to industrial peace in the country 2. It results in establishment of a harmonious industrial climate which supports which helps the pace of a nations efforts towards economic and social development since the obstacles to such a development can be reduced considerably. 3. The discrimination and exploitation of workers is constantly being checked. 4. It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.

Forms of Collective Bargaining: Bargaining Form And Tactics

Industrial Relations Home Bargaining Forms and Tactics

A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining. Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one partys gain is another partys loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. This type of bargaining is also

known as conjunctive bargaining. Integrative bargaining: This involves negotiation of an issue on which both the parties may

gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining. Attitudinal restructuring: This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties. Intra-organizational bargaining: It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups.

Characteristics of Bargaining:

Characterstics Of Collective Bargaining

Industrial Relations Home Characterstics Of Collective Bargaining

It is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment. Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining. Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions

of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels.

Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products of harmonious relations between the two parties.

It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation.

Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts.

Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other.

Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation.

Collective

bargaining

takes

into

account

day

to

day

changes,

policies,

potentialities, capacities and interests.

It is a political activity frequently undertaken by professional negotiators.

Process of Collective Bargaining:

Collective Bargaining Process

Industrial Relations Home Collective Bargaining Process

Collective bargaining generally includes negotiations between the two parties (employees representatives and employers representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes. This will normally include procedures in respect of individual grievances, disputes and discipline. Frequently, procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. A substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a fixed time scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment. The collective bargaining process comprises of five core steps: 1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employers representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.

2.

Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.

3.

Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming. The exchange of messages takes place and opinion of both the

parties is sought.

4.

Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place.

5.

Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Levels of Collective Bargaining

Industrial Relations Home Levels Of Collective Bargaining

Collective bargaining operates at three levels: 1. National level 2. Sector or industry level 3. Company/enterprise level Economy-wide (national) bargaining is a bipartite or tripartite form of negotiation between union confederations, central employer associations and government agencies. It aims at providing a floor for lower-level bargaining on the terms of employment, often taking into account macroeconomic goals. Sectoral bargaining, which aims at the standardization of the terms of employment in one industry, includes a range of bargaining patterns. Bargaining may be either broadly or narrowly defined in terms of the industrial activities covered and may be either split up according to territorial subunits or conducted nationally.

The third bargaining level involves the company and/or establishment. As a supplementary type of bargaining, it emphasizes the point that bargaining levels need not be mutually exclusive.

Module -2 Concept of Labour Welfare: Labour Welfare The concept of Labour Welfare emphasizes on skill formation and development, strengthening and modernization of employment service, promotion of industrial and mines safety, workers' education, promotion of selfemployment, rehabilitation of bonded labour, enforcement of labour laws especially those relating to unorganised labour and women and child labour, promotion of a healthy industrial relations situation and encouragement of workers' participation in management. Improvement in the quality of labour, productivity, skills and working conditions and provision of welfare and social

security measures, especially of those working in the unorganised sector are crucial elements of the strategy for labour welfare. There are Institutional mechanisms which ensure a minimum level of social security benefits the workers in the organised sector of the economy. However, workers in the unorganised sector who constitute 90 per cent of the total workforce do not have access to such benefits. Steps need to be taken on a larger scale than before to improve the quality of working life of the unorganised workers, including women workers. The unorganized workers does not have the benefit of the social security cover provided to the workers in the organized sector through a legal framework and institutional infrastructure created under the Employees State Insurance Act, 1948 and the Employees Provident Fund and Miscellaneous Provisions Act, 1952. Due to the nature of employment it has not been possible to extend to them the benefits of a contribution oriented or employers liability oriented social security scheme enjoyed by their counterparts in the organized sector, except to a small section of beedi workers and that too on a limited scale in respect of provident fund and Employees State Insurance Corporation Schemes. The recently introduced Unorganised Sector Workers Social Security Bill, 2007 holds great expectation for the unorganised workers. The prime objectives concerning social and economic policy of the Government is improvement of labour welfare and increasing productivity with reasonable level of social security. . In 1999 the Workmen Compensation Act has been revised to benefit the workers and their families in the case of death/disability. The labour laws enforcement machinery in the States and at the Centre are working to amend the laws which require changes, revise rules, regulations orders and notifications. Various plan schemes of the Ministry of Labour aim at achievement of welfare and social security of the working class. Plan initiatives in the Labour & Labour Welfare Sector are as under: i. ii. iii. iv. Training for skill development Services to job seekers Welfare of labour Administration of labour regulations

The National Employment Service covers all the States and Union Territories except Sikkim, and functions within the framework of the Employment Exchanges (compulsory notification of vacancies) Act 1959. It has a network of 953 Employment Exchanges as on 30.6.99.

The Employees Pension Scheme, 1995 was amended in February, 1999 to provide for pension to dependent father/mother in respect of a deceased member, who has no eligible family members and if no nomination was executed by him during his life time. For workers of poor families not covered under any insurance scheme or any law the Central Government has introduced a scheme of Personal Accident Insurance Social Security Scheme. The Scheme is applicable to all persons in the age group of 18-55 who are earning members of poor families and meet with fatal accidents. The quantum of benefit is Rs.3,000. The Scheme is implemented through the General Insurance Corporation. A new initiative has been taken by the Ministry of Agriculture and Cooperation by providing insurance cover to unorganised labour working in construction industry, agriculture fields and forests where the insurance cover will be provided through the Co-operatives on basis through the national insurance cover and Labour Cooperatives. A premium of Rs.5.25 per annum will be paid by the Co-operatives. The insurance cover has the provision that in the case of death of a labourer, his family will be paid Rs.25,000

DEFINITION OF LABOUR WELFARE Labour welfare has been defined in various ways, though no single definition has found universal acceptance. The Oxford dictionary defines labour welfare as "Efforts to make life worth living for workmen." Chambers dictionary defines welfare as "A state of faring or doing well. Freedom from calamity, enjoyment of health and prosperity. The Encyclopedia of Social Science defines it as "the voluntary efforts of the employers to establish, within the existing industrial system, working and sometimes living and cultural conditions of employees beyond what is required by law, the customs of the industry and the condition of market"[3]. In the Report II of the ILO Asian Regional conference, it has been stated that worker's welfare may be understood to mean "such services, facilities and amenities, which may be established outside or in the vicinity of undertakings, to enable the persons employed therein to perform their work in healthy and congenial surroundings and to provide them with the amenities conducive to good health and high morale. 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." [5] The Report of 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 worker are employer." [6] 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 to help them to a wider conception of life". [7] It promotes the well-being of workers in variety of ways.

SCOPE OF LABOUR WELFARE ACTIVITIES Labour welfare Activities is combinations of various steps, the cumulative effect of which is to grease the wheels of industry and society. Sound industrial relations can only be based on human relations and good human relations dictate that labour being, human being should be treated humanly which includes respect for labour dignity, fair dealing and concern for the human beings physical and social needs. In any industry good relations between the management and workers depend upon the degree of mutual confidence, which can be established. This, in turn, depends upon the recognition by the labour of the goodwill and integrity of the organization in the day to day handling of questions which are of mutual concern. The basic needs of a labour are freedom from fear, security of employment and freedom from want. Adequate food, better health, clothing and housing are human requirements. The human heart harbors secret pride and invariably responds to courtesy and kindness just as it revolts to tyranny and fear. An environment where he is contended with his job, assured of a bright future and provided with his basic needs in life means an atmosphere of good working condition and satisfaction to labour. Labour welfare activities are based on the plea that higher productivity requires more than modern machinery and hard work. It requires co-operative endeavor of both the parties, labour and management. This is possible only when labour is given due importance and human element is taken into account at every stage. The worker has a fund of knowledge and experience at his job. If rightly directed and fully used, 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 its productivity. OBJECTIVES OF LABOUR WELFARE ACTIVITIES The object of welfare activities is to promote economic development by increasing production and productivity. The underlying principle is to make the workers given their loyal services ungrudgingly in genuine spirit of co-operation, in return for obligations, voluntary and compulsory, accepted by the employee towards the general well-being of the employees. Improving the efficiency of the labour is another objective of labour welfare activities. Efficiency gives double reward, one in the form of increased production and the other in the shape of higher wages due to achievement of higher productivity. Welfare activities add to their efficiency and efficiency in turn help the worker to earn more wages. Therefore, welfare activities in an organization are twice blessed. It helps the employer and the employee both. Another objective of welfare activities is to secure the labour proper human conditions of work and living. Working conditions of organization may be led by an artificial environment which features are dust, fumes, noise, unhealthy temperature, etc. It is generally found that these conditions 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. It is the duty of the employer to see these human needs. If welfare activities are viewed in this light, it can be seen that they are guided by purposes of humanitarian and social justice. The next objective of welfare activities is to add in a real way to the low earning of the labour. The facilities are provided to supplement the income of the workers by services such as housing, medical assistance, school, co-operative, canteens, stores, play grounds etc. Thus, the objective of activities are to promote greater efficiency of the workers, assure proper human conditions to the workers and their family members, supplement their wages in monetary teams, give more real wages and foster better industrial relations. PHILOSOPHY OF LABOUR WELFARE ACTIVITIES The philosophy of labour welfare activities is based on the theory that success of industrial development depends upon harmonious relations and co-operation between labour and management (employer ). The labour has a fund of knowledge

and experience at his jobs. If rightly directed and fully used, it would make a good contribution to the prosperity of the organization this can be achieved only through the satisfaction of the labour. Efficiency in the matter of running an organization and maintenance of productivity at rising rate and higher level, call for good labour relations throughout the process of production. It enables all those engaged in the organization to make their maximum personal contribution to its effective working. M. V. Pylee and Simon George has pointed out that "Even one discontented employee or an employee nursing a grievance can eventually infect an entire organization with the germ of discontent which, in turn, will result in lower efficiency, poor morale and reduction in overall production". The labour welfare activities in the form of health services centers are provided with the philosophy that a good medical service center will help in ensuring sturdy improvement of job satisfaction and productivity. A healthy worker is a basic requirement of an organization. It is, therefore, incumbent on the part of the employer to look after the health of the workers and to provide such facilities which would ensure minimum health hazards. The concerning law prescribes the minimum standard but progressive employer must extend his activities to protect the health of the labourers and their dependents. In return, their co-operation will be wholehearted, efficiency will be maximum and attitude will be proper and congenial. THEORIES OF LABOUR WELFARE The form of labor welfare activities is flexible, elastic and differs from time to time, region to region, industry to industry and country to country depending upon the value system, level of education, social customs, degree of industrialization and general standard of the socio-economic development of the nation. Seven theories constituting the conceptual frame work of labour welfare activities are the following:-

1. The Police Theory: This is based on the contention that a minimum standard of welfare is necessary for labourers. Here the assumption is that without policing, that is, without compulsion, employers do not provide even the minimum facilities for workers. Apparently, this theory assumes that man is selfish and self centered and always tries to achieve his own ends, even at the cost of the welfare of others.

According to this theory, owners and managers of industrial undertakings get many opportunities for exploitation of labour. Hence, the state has to intervene to provide minimum standard of welfare to the working class.

2. The Religious Theory: This is based on the concept that man is essentially "a religious animal." Even today, many acts of man are related to religious sentiments and beliefs. These religious feelings sometimes prompt an employer to take up welfare activities in the expectation of future emancipation either in this life or after it.

3. The Philanthropic Theory: This theory is based on man's love for mankind. Philanthropy means "Loving mankind." Man is believed to have an instinctive urge by which he strives to remove the suffering of others and promote their well-being. In fact, the labour welfare movement began in the early years of the industrial revolution with the support of philanthropists.

4. The Trusteeship Theory: This is also called the Paternalistic Theory of Labour Welfare. According to this the industrialist or employer holds the total industrial estate, properties, and profits accruing from them in a trust. In other words, the employer should hold the industrial assets for himself, for the benefit of his workers, and also for society. The main emphasis of this theory is that employers should provide funds on an ongoing basis for the well-being of their employees.

5. The Placating Theory: This theory is based on the fact that the labour groups are becoming demanding and militant and are more conscious of their rights and privileges than ever before. Their demand for higher wages and better standards of living cannot be ignored. According to this theory, timely and periodical acts of labour welfare can appease the workers. They are some kind of pacifiers which come with a friendly gesture.

6. The Public Relation Theory: This theory provides the basis for an atmosphere of goodwill between labour and management, and also between management and the public, labour welfare programmes under this theory, work as a sort of an advertisement and help an organization to project its good image and build up and promote good and healthy public relations.

7. The Functional Theory: This is also called the Efficiency Theory. Here, welfare work is used as a means to secure, preserve and develop the efficiency and productivity of labour, It is obvious that if an employer takes good care of his workers, they will tend to become more efficient and will thereby step up production. This theory is a reflection of contemporary support for labour welfare. It can work well if both the parties have an identical aim in view; that is, higher production through better welfare. And this will encourage labour's partcipation in welfare programmes. 8.

PRINCIPLES FOR SUCCESSFUL IMPLEMENTATION OF WELFARE ACTIVITIES The success of welfare activities depends on the approach which has been taken into account in providing such activities to the employees. Welfare policy should be guided by idealistic morale and human value. Every effort should be made to give workers/ employees some voice in the choice of welfare activities so long as it does not amount to dictation from workers. There are employers who consider all labour welfare activities as distasteful legal liability. There are workers who look upon welfare activities in terms of their inherent right. Both parties have to accept welfare as activities of mutual concern. Constructive and lasting Progress in the matter of social justice can be achieved only if welfare activities are accepted as essential factors in the progress of the business organization Labour welfare is dependent on certain basic principles. The following are the principles on which successful implementation of welfare programmes depends: Adequacy of Wages: Labour welfare measures cannot be a substitute for wages. Workers have a right to adequate wages. But high wage rates alone cannot create healthy atmosphere, nor bring about a sense of commitment on the part of workers. A combination of social welfare, emotional welfare and economic welfare together would achieve good results. 1. Social Liability of Industry: Industry, according to this principle, has an obligation or duty towards its employees to look after their welfare. The constitution of India also emphasizes this aspect of labour welfare. 2. Impact on Efficiency: This plays an important role in welfare services, and is based on the relationship between welfare and efficiency, though it is difficult to measure this relationship. Programmes for housing, education and training, the provision of balanced diet and family planning measures are

some of the important programmes of labour welfare which increases the efficiency of the workers, especially in underdeveloped or developing countries. 3. Increase in Personality: The development of the human personality is given here as the goal of industrial welfare which, according to this principle, should counteract the baneful effects of the industrial system. Therefore, it is necessary to implement labour welfare services. Both inside and outside the factory, that is, provide intra-mural and extra-mural labour welfare services. 4. Totality of Welfare: This emphasizes that the concept of labour welfare must spread throughout the hierarchy of an organization. Employees at all levels must accept this total concept of labour welfare programme will never really get off the ground. 5. Co-ordination or Integration: This plays an important role in the success of welfare services. From this angle, a co-ordinated approach will promote a healthy development of the worker in his work, home and community. This is essential for the sake of harmony and continuity in labour welfare services. 6. Democratic Values: The co-operation of the worker is the basis of this principle. Consultation with, and the agreement of workers in, the formulation and implementation of labour welfare services are very necessary for their success. This principle is based on the assumption that the worker is "a mature and rational individual." Industrial democracy is the driving force here. Workers also develop a sense of pride when they are made to feel that labour welfare programmes are created by them and for them. 7. Responsibility: This recognizes the fact that both employers and workers are responsible for labour welfare. Trade unions, too, are involved in these programmes in healthy manner, for basically labour welfare belongs to the domain of trade union activity. Further, when responsibility is shared by different groups, labour welfare work becomes simpler and easier. 8. Accountability: This may also be called the Principle of Evaluation. Here, one responsible person gives an assessment or evaluation of existing welfare services on a periodical basis to a higher authority. This is very necessary, for then one can judge and analyze the success of labour welfare programmes. 9. Timely: The timeliness of any service helps in its success. To identify the labour problem and to discover what kind of help is necessary to solve it and when to provide this help are all very necessary in planning labour welfare programmes. Timely action in the proper direction is essential in any kind of social work.

Last, but not the least is the fact that labour welfare must aim at helping workers to help themselves in the long run. This helps them to become more responsible and more efficient. PERCEPTIVE OF LABOUR WELFARE ACTIVITIES The focus on the labour welfare Activities has led to a growing interest by stakeholders who have started to identify the problem of the labour welfare and formulate their position. The main stake holders are the enterprises investors, employees, trade urions and governments. They are, therefore, gradually becoming aware of the potential of labour welfare activities, albeit from different prospective. The basic questions in this prospective are the followings: Should labour welfare activities be mandatory for enterprises ? 1. If mandatory should law and/or social organization should regulate the labour welfare activities? 2. If voluntary, how to secure the interests of the employees at enterprise level ? OBSERVATION Industrial development in recent years has resulted in the advent of large enterprises with large labour force. Obviously, the larger the labour force, the greater are the potential problems. Besides, the recent trends indicate that the employee can no longer be viewed as commodity. The socialistic pattern of society, the advent of invention by the nation and the idea of a welfare state must & move to the recognition of labour welfare activities. Enterprises can use the labour in proper direction for maximum utilizations through their satisfaction which is possible only when labour is satisfied. To keep the employees motivated and committed various activities are needed.

CONCLUSION India introduced literal industrial policy which is aimed at stepping up industrial growth promoting modernization and technological up gradation to make industrial competitive in both domestic and global market. In this perspective enterprises have to improve their production and productivity which is possible with the satisfaction of labour. Even today's scientific development of modern techno- production methods higher productivity depends on workers. If they are rightly directed and fully used, it would make a great contribution to the prosperity of the enterprise.

The high rate of labour absenteeism in Indian industries is indicative of the lack of commitment on the part of the workers. This can be reduced to a great extent by provision of good housing, health and family care canteens, educational and training facilities, provision of welfare activities enables the workers to live a richer and more satisfactory life and contributes to the productivity of labour, efficiency of the enterprise and helps in maintaining industrial peace. Hence steps need to be taken on a larger scale to improve the quality of life of the workers.

Duties of Labour Welfare Officer: Duties of Welfare Officers.- The duties of a Welfare Officer shall be (a)to establish contacts and hold consultations with a view to maintaining harmonious relations between the factory management and workers; (b)to bring to the notice of the factory management the grievances of workers, individual as well as collective, with a view to securing their expeditious redress and to act as a liason officer between the management and labour ; to study and understand the point of view of labour in order to help the factory management to shape and formulate labour policies and to interpret these policies and to interpret these policies to the workers in a language they can understand; (d)to watch industrial relations with a view to using his influence in the event of a dispute between the factory management and workers and to help to bring about a settlement by persuasive effort; (e)to advise on fulfilment by time management and the concerned departments of the factory of obligations, statutary or otherwise, concerning regulation of working hours, maternity benfit, medical care, compensation for injuries and sickness and other welfare and social benfit measures; (f)to advise and assist the mangement in the fulfilment of its obligations,statutory or otherwise, concerning prevention of personal injuries and maintaining a safe work environment, in such factories where a Safety Officer is not required to be appointed under the enabling provisions under section 40 B; (g)to promote relations between the concerned departments of the factory and workers which will bring about productive efficiency as well as ameliioration in the working conditions and to help workers to adjust and adapt themselves to their working environments; (h)to encourage the formation of Works and Joint Production Committees, Cooperative Societies and Welfare Committees, and to supervise their work;

(i)to encourage provision of amenities such as centeens, shelters for rest, creches, adequate latrine facilities, drinking water, sickness and benevolent scheme payments, pension and superannuation funds, gratuity payments, granting of loans and legal advice to workers; (j)to help the factory management in regulating the grant of leave with wages and explain to the workers the provisions relating to leave with wages and other leave privileges and to guide the workers in the matter of submission of application for grant of leave for regulating authorised absence; (k)to advise on provision of welfare facilities, such as housing facilities, foodstuffs, social and recreational facilities, sanitation, advice on individual personnel problems and education of children; (l)to advise the factory management on questions relating to training of new starters, apprentices, workers on transfer and promotion, instructors and supervisors, supervision and control of noticeboard and information bulletins to further education of workers and to encourage their attendance at technical institutes; and (m)to suggest measures which will serve to raise the standard of living of workers and in general promote their well-being. (6)Welfare officers not to deal with disciplinary cases or appear on behalf of the management against workers.- No Welfare Officer Should deal with any disciplinary cases against workers or appear before a conciliation officer in a court or tribunal on behalf of the factory management against a worker or workers. (7)Powers of exemption. - The State Government may, by notification in the official gazette, exempt any factory or class or description of factories from the operation of all or any of the provisions of these rules subject to compliance with such alternative arrangements as may be approved. Welfare Provisions under Factories Act-1948: Present Factory Act has provided several measures under the sectino V for the welfare of the workers under section 42 to 48. Important aspects of this section are as follows : * washing facilities * sitting facilities * Firs Aid Appliances

* Canteen * Stores, Lunch rooms and rest rooms * Creche * Welfare Officers Washing Facilities (Section 42 ) According to this section there must be adequate washing facilities separately provided especially for the male and female. These washing places should be easily accessible. Section 43 says that the occupier has to provide a separate room for the workers can keep their clothes without any fear of theft. Sitting Facilities (Section 44) This section emphasizes that there should be places for employees to sit and take rest where the work involves standing posture. In order to relax and increase the productivity facilities for sitting is must in the factories. Firs Aid Supplies (Section 45) Firs aid at work is very vital where the factory handles the manufacturing of products. A factory employing not less than 150 employees should provide the first aid supplies as a kind of medical aid. First aid kit should contain the medical services and cotton as well to aid the injuries. If there are more than 500 employees in the factory, ambulance service is must for the provision. The factory in charge must provide the ambulance equipment and other required ambulance room so that relevant services will be provided in case of serious injuries. Canteen

(Section 46) Canteen facility is compulsory for the employees when their head count is more than 250 in the factory. A management committee should be formed with the representatives from the employer and employee and they should manage the canteen. Stores, Lunch rooms and Rest rooms (Section 47) Adequate stores, rest rooms and lunch rooms along with the good drinking water supplies must be provided to the workers of the factory. Creche (Section 48) It is mandatory of the factory to take of the employees' children under the age of six. Creche collective should be well equipped and ventilated. Children should be taken care in a hygienic environment by the well trained creche associative and staffs. Welfare Officers (Section 49) Factory should appoint the number of welfare officers when there are more than 150 employees working in the company. Workers compensation insurance is being assured by these occupiers under Employee insurance and other welfare. Importance aspect of this section is the workers comp insurance.

Unit -III
Evolution of Social Security The concept of social security is as old as the history of man. Stories of Bible tell us how, during the years of famine, Joseph tried to tide over the situation by making use of surplus stocks of grain which he had stocked during the earlier years of plenty. The oldest institution of social security is family that includes the extended family. Industrial revolution in the Europe has seen the growth of urban and

industrial centers that affected the rural joint families thereby disturbing the institution of social security in the joint family system. When individual was unable to take care of his own needs, the society realized the importance of protecting the individual and his family. In great Britain the poor laws were enacted to provide minimal food and shelter in a workhouse to the poor. Private savings, compensation by employers medieval guilds, mutual aid or mutual benefit societies, private insurance and life insurance are some of the evolutionary forms of social security efforts. Need for Social Security Modernization and urbanization have resulted in radical socio-economic changes and give rise to new conflicts and tensions consequent upon the erosion of age old family and fraternal security. The transition from agricultural economy to an industrial economy brought in special accompanied problems that called for social security. Purpose and Contingencies of Social Security The purpose of any social security measure is to give individuals and families the confidence that their level of living and quality of life will not erode by social or economic eventuality; provide medical care and income security against the consequences of defined contingencies; facilitate the victims physical and vocational rehabilitation; prevent or reduce ill health and accidents in the occupations; protect against unemployment by maintenance and promotion of job creation and provide benefit for the maintenance of any children. The contingencies of social security as delineated by ILO are medical care, sickness benefit, unemployment benefit, old age benefit, employment injury benefit, family benefit, maternity benefit, invalidity benefit and survivors benefit. Top Social Security Strategy in India The social security strategies include the following:

Social insurance with the participation of the beneficiary pooling risks and resources Social assistance financed from general revenues and granting benefits on the basis of means test Employers liability schemes where there is an identifiable employer and within the economic capacity of the employer National Provident Funds Universal schemes for social security.

Social Security in India Article 43 of the Constitution speaks of state's responsibility to provide social security to the citizens of this country. In India, we find all the above strategies in practice. For the purpose of discussion, we may categorize the social security schemes available in India as Preventive Schemes, Promotional Schemes, and Protective Schemes. Top

Preventive Schemes

Preventive Schemes are the Schemes aimed at risk prevention. In the strategy of social management of risks, preventive approach tries to prevent poverty and helps people under below poverty line to come above poverty line. Preventive health care, vaccinations against diseases forms part of he preventive strategies. Majority of the schemes are of social assistance in nature.

Promotional Schemes
Promotional social security schemes are mainly of Means tested Social Assistance type, where to guarantee minimum standards of living to vulnerable groups of population, the Governments at the State and Center draft schemes financed from the general revenues of the Government. These are the strategies of risk mitigation. These guarantee:

Food and Nutritional Security by ensuring per capita availability of food grains, access to food, developing agriculture sector, targeted Public Distribution system etc. Employment security by ensuring employment by generating employment, redeploying the surplus manpower in any sector, creating rural employment opportunities, encouraging technological up gradation. Health Security by ensuring availability of medical facilities, maintaining standards of sanitation and drinking water, eradication and control of communicable diseases, timely vaccination of children and child bearing women, health insurance, old age homes and social insurance for the elderly. Education Security by ensuring opening of schools, Encouraging children to attend classes, making education compulsory upto certain age, opening adult learning centers or formulating schemes like Sakshara, running schemes like mid day meals etc. Women Security: by empowering women, encouraging women literacy, banning dowry, designing widow pension schemes. Assistance to the disabled by undertaking programmes to promote health and education among the disabled persons, providing rehabilitation services and reservations in services so as to enable them to participate in social and economic activity.

All the above form part of promotional social security schemes where State Governments are more involved than the Central Government. Examples of schemes in the promotional social security area include:

Food for work Jawahar Rojgar Yojana Antyodaya Rural Landless Labourers Employment Guarantee Schemes programmes of Integrated Rural Development Project Drought prone area Programmes Sakshara Integrated Child Development Scheme (ICDS) Public Distribution System reservations for the disabled in services special educational institutions for the disabled persons etc. Top

Protective Social Security Programmes

The protective social security programmes help the poor in removing/reducing contingent poverty. In India, the protective social security programmes have been designed to address the contingent

poverty or the contingencies d defined by the ILO. These programmes take care of old-age income needs (Old age pension), survival benefits (Provident Funds), medical need of insured families (Medical Insurance), widow and children/dependant economic needs (Widow/Children/orphan, and dependent pension), maternity benefits, compensation for loss of employment and work injury benefits. The benefits are extended only to working population majority of whom are in the organized sector through legislations like:

Employees State Insurance Act 1948 Workmen's Compensation Act 1923 Employees Provident Fund and Miscellaneous Provisions Act 1952 Payment of Gratuity Act 1972 Maternity Benefits Act 1976