A project report on labour welfare

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A project report on labour welfare

  1. 1. Projectsformba.blogspot.comSocial Security and Labour Welfare in India: A reviewSocial security is one of the pillars on which the structure of a welfare state rests,and it constitutes the hard core of social policy in most countries. It is throughsocial security measures that the state attempts to maintain every citizen at acertain prescribed level below which no one is allowed to fall. It is the securitythat society furnishes through appropriate organization, against certain risks towhich its members are exposed (ILO, 1942). Social security system compriseshealth and unemployment insurance, family allowances, provident funds,pensions and gratuity schemes, and widows’ and survivors’ allowances. Theessential characteristics of social insurance schemes include their compulsory andcontributory nature; the members must first subscribe to a fund from whichbenefits could be drawn later. On the other hand, social assistance is a methodaccording to which benefits are given to the needy persons, fulfilling theprescribed conditions, by the government out of its own resources. The present section reviews labour welfare activities in India withparticular emphasis on the unorganized sector. Although provisions forworkmen’s compensation in case of industrial accidents and maternity benefitsfor women workforce had existed for long, a major breakthrough in the field ofsocial security came only after independence. The Constitution of India (Article41) laid down that the State shall make effective provision for securing the rightto public assistance in case of unemployment, old age, sickness and disablementand in other cases of underserved want. The Government took several steps incompliance of the constitutional requirements. The Workmen’s CompensationAct (1926) was suitably revised and social insurance programmes weredeveloped for industrial workers. Provident funds and gratuity schemes wereintroduced in most industries, and maternity legislation was overhauled.Subsequently, State governments instituted their own social assistanceprogrammes. The provisions for old age comprise pension, provident fund, andgratuity schemes. All the three provisions are different forms of retirementbenefits. Gratuity is a lump sum payment made to a worker or to his/her heirs bythe company on termination of his/her service due to retirement, invalidity,retrenchment or death (Vajpayee and Shanker, 1950).Projectsformba.blogspot.com
  2. 2. Projectsformba.blogspot.comWelfareWelfare is the provision and maintenance of the conditions of life forindividuals by the community.Welfare has a positive and negative aspect. Negative welfare is the provisionby the state or other institutions of a “safety net” or the distribution ofbenefits according to some criteria; so-called positive welfare is theprovision of opportunities for people to “help themselves”. This contrast liesbehind foreign-aid strategies which concentrate on providing skills or “seedcapital” rather than food parcels, for example. The concept of positive andnegative welfare is related to the concepts of positive and negative freedom.Marxists support both positive and negative welfare, but recognise that themarket inevitably generates inequality and a class of people inevitably therecipients of welfare, who have nothing to sell but their labour power,alongside a class of people who live off the proceeds of exploitation,invariably the providers of welfare. Only by bringing the means ofproduction under thorough going proletarian democracy can the very needfor welfare be abolished.Concept of labour welfare The concept of labour welfare is flexible and elastic and differswidely with time, region, industry, social values and customs, degree ofindustrialization, the general socio-economic development of the people andthe political ideologies prevailing at a particular time. It is also mouldedaccording to the age-groups, socio-cultural background, marital andeconomic status and educational level of the workers in various industries In its broad connotation, the term welfare refers to a state of livingof an individual or group in a desirable relationship with total environment –ecological, economic, and social. Conceptually as well as operationally,labour welfare is a part of social welfare which, in turn, is closely linked tothe concept and the role of the State. The concept of social welfare, in itsnarrow contours, has been equated with economic welfare. As these goalsare not always be realised by individuals through their efforts alone, thegovernment came into the picture and gradually began to take over theresponsibility for the free and full development of human personality of itspopulation.Projectsformba.blogspot.com
  3. 3. Projectsformba.blogspot.com Labour welfare is an extension of the term Welfare and itsapplication to labour. During the industrialisation process, the stress onlabour productivity increased; and brought about changes in the thinking onlabour welfare. An early study under the UN observed as follows “in ouropinion most underdeveloped countries are in the situation that investmentin people is likely to prove as productive, in the purely material sense, as anyinvestment in material resources and in many cases, investment in peoplewould lead to a greater increase of the flow of goods and services thanwould follow upon any comparable investment in material capital” (UN,1951). The theory that welfare expenditure, especially expenditure on healthand education, is productive investment has led to the view that workerscould work more productively if they were given a fair deal both at the workplace and in the community. The concept of labour welfare has received inspiration from theconcepts of democracy and welfare state. Democracy does not simply denotea form of government; it is rather a way of life based on certain values suchas equal rights and privileges for all. The operation of welfare services, inactual practice, brings to bear on it different reflections representing thebroad cultural and social conditions. In short, labour welfare is the voluntaryefforts of the employers to establish, within the existing industrial system,working and sometimes living and cultural conditions of the employeesbeyond what is required by law, the custom of the industry and theconditions of the market (A. J. Todd, 1933). The constituents of labour welfare included working hours,working conditions, safety, industrial health insurance, workmen’scompensation, provident funds, gratuity, pensions, protection againstindebtedness, industrial housing, rest rooms, canteens, crèches, wash places,toilet facilities, lunches, cinemas, theatres, music, reading rooms, holidayrooms, workers’ education, co-operative stores, excursions, playgrounds,and scholarships and other help for education of employees’ children. However, labour welfare has both positive and negative sidesassociated to it. On the positive side, it deals with the provision ofopportunities which enable the worker and his family to lead a good life,socially and personally, as well as help him to adjust social transition in hiswork life, family life and social life. On the negative side it functions inorder to nutralise the baneful effects of large scale industrialization andprovide acounterbalance to the undesirable social consequences and labour problemswhich have evolved in the process of this transition.Projectsformba.blogspot.com
  4. 4. Projectsformba.blogspot.com The word labour means any productive activity. In a broadersense, therefore, the phrase labour welfare means the adoption of measuresto promote the physical, social, psychological and general well-being of theworking population. Welfare work in any industry aims, or should aim, atimproving the working and living conditions of workers and their families.Definitions: Labour welfare has been defined in various ways, thoughunfortunately no single definition has found universal acceptance. TheOxford Dictionary defines labour welfare as “efforts to make life worthliving for worker” Chamber’s Dictionary defines welfare as “a state of faring ordoing well; freedom from calamity, enjoyment of health, prosperity.” The ILO report refers to labour welfare as “such services,facilities, and amenities, which may be established in, or in the vicinity ofundertakings to enable persons employed therein to perform their work inhealthy and congenial surroundings and provided with amenitiesconducive to good health and high morale”. Features: On the basis of the various definitions, the basic characteristics oflabour welfare work may be noted thus:1. It is the work which is usually undertaken within the premises or in thevicinity of the undertakings for the benefit of the benefit of the employeesand the members of their families.2. The work generally includes those items of welfare which are over andabove what the employees expect as a result of the contract of service fromthe employers.3. The purpose of providing welfare amenities is to bring about developmentof the whole personality of the worker -his social, psychological, economic,moral, cultural and intellectual development to make him a good worker, agood citizen and a good member of the family.4. These facilities may be provided voluntarily by progressive andenlightened entrepreneurs at their own accord out of their realization ofsocial responsibility towards labour, or statutory provisions may compelthem to make these facilities available; or these may be undertaken by theProjectsformba.blogspot.com
  5. 5. Projectsformba.blogspot.comgovernment or trade unions, if they have the necessary funds for thepurpose.5. Labour welfare is a very broad term, covering social security and suchother activities as medical aid, crèches, canteens, recreation, housing, adulteducation, arrangements for the transport of labour to and from the workplace.6. It may be noted that not only intra-mural but also extra-mural, statutory aswell as non-statutory activities, undertaken by any of the three agencies- theemployers, trade unions or the government- for the physical and mentaldevelopment of the worker, both as a compensation for wear and tear that heundergoes as a part of the production process and also to enable him tosustain and improve upon the basic capacity of contribution to the processesof production, “which are all the species of the longer family encompassedby the term ‘labour welfare’.Concept of labour welfareIn its broad connotation, the term welfare refers to a state of living of anindividual or group in a desirable relationship with total environment –ecological, economic, and social.Conceptually as well as operationally, labour welfare is a part of socialwelfare which, in turn, is closely linked to the concept and the role of theState. The concept of social welfare, in its narrow contours, has beenequated with economic welfare. Pigou defined it as “that part of generalwelfare which can be brought directly or indirectly into relations with themeasuring rod of money” (Pigou, 1962). According toWillensky and Labeaux, social welfare alludes to “those formallyorganised and socially sponsored institutions, agencies and programmeswhich function to maintain or improve the economic conditions, health orinterpersonal competence of some parts or all of a population” (Willenskyand Labeaux, 1918). As these goals may not always be realised byindividuals through their efforts alone, the government came into the pictureand gradually began to take over the responsibility for the free and fulldevelopment of human personality of its population. Labour welfare is an extension of the term Welfare and itsapplication to labour. During the industrialisation process, the stress onProjectsformba.blogspot.com
  6. 6. Projectsformba.blogspot.comlabour productivity increased; and brought about changes in the thinking onlabour welfare. An early study under the UN observed as follows “in ouropinion most underdeveloped countries are in the situation that investmentin people is likely to prove as productive, in the purely material sense, as anyinvestment in material resources and in many cases, investment in peoplewould lead to a greater increase of the flow of goods and services thanwould follow upon any comparable investment in material capital” (UN,1951). The theory that welfare expenditure, especially expenditure on healthand education, is productive investment has led to the view that workerscould work more productively if they were given a fair deal both at the workplace and in the community. The concept of labour welfare has received inspiration from theconcepts of democracy and welfare state. Democracy does not simply denotea form of government; it is rather a way of life based on certain values suchas equal rights and privileges for all. The operation of welfare services, inactual practice, brings to bear on it different reflections representing thebroad cultural and social conditions. In short, labour welfare is the voluntaryefforts of the employers to establish, within the existing industrial system,working and sometimes living and cultural conditions of the employeesbeyond what is required by law, the custom of the industry and theconditions of the market (A. J. Todd, 1933). The constituents of labour welfare included working hours,working conditions, safety, industrial health insurance, workmen’scompensation, provident funds, gratuity, pensions, protection againstindebtedness, industrial housing, rest rooms, canteens, crèches, wash places,toilet facilities, lunches, cinemas, theatres, music, reading rooms, holidayrooms, workers’ education, co-operative stores, excursions, playgrounds,and scholarships and other help for education of employees’ children.Labour and Labour WelfareLabour sector addresses multidimensional socio-economic aspects affectinglabour welfare, productivity, raising living standard of labour force andsocial security. To raise earnings of work force and achieve higherproductivity, skill upgradation through suitable training is of utmostimportance. Manpower development to provide adequate labour force ofappropriate skills and quality to different sectors essential for rapid socio-economic development and elimination of the mismatch between skillsrequired and skills available has been a major focus of human resourceProjectsformba.blogspot.com
  7. 7. Projectsformba.blogspot.comdevelopment activities during the last fifty years. Employment generation inall the productive sectors is one of the basic objectives. In this context,providing enabling environment for self employment has received specialattention both in urban and rural areas. Objective is also to eliminate bondedlabour, employment of children and women in hazardous industries, andminimize occupational health hazards. During the Ninth Plan period,elimination of such undesirable practices as child labour, bonded labour,ensuring workers’ safety and social security, looking after labour welfareand providing of the necessary support measures for sorting out problemrelating to employment of both men and women workers in different sectorswill receive priority attention. It is also envisaged that the employmentexchanges will be reoriented so that they become the source of labourrelated information, employment opportunities and provide counseling andguidance to employment seekers. All labour welfare measures have the following objectives:1. Enabling workers to live richer and more satisfactory lives;2. Contributing to the productivity of labour and efficiency of the enterprise;3. Enhancing the standard of living of workers by indirectly reducing theburden on their purse;4. Enabling workers to live in tune and harmony with services for workersobtaining in the neighbourhood community where similar enterprises aresituated;5. Based on an intelligent prediction of the future needs of the industrialworkers, designing policies to cushion off and absorb the shocks ofindustrialisation and urbanisation to workers;6. Fostering administratively viable and essentially developmental outlookamong the workforce; and7. Discharging social responsibilities.Projectsformba.blogspot.com
  8. 8. Projectsformba.blogspot.comPrinciples of labour welfareCertain fundamental considerations are involved in the concept of labourwelfare. The following are the more important among them.Social responsibility of industryThis principle is based on the social conception of industry and its role in thesociety that is, the understanding that social responsibility of the state ismanifested through industry. It is assumed that labour welfare is anexpression of industry’s duty towards its employees.Social responsibility means that the obligation of the industry to pursuethose policies, to take such decisions, and to follow those lines of actionwhich are desirable in terms of the objectives and values currently obtainingin the society. The values of the Indian community are enshrined in theconstitution of the country. Labour welfare is not embroidery on capitalismnor the external dressing of an exploitative management; rather, it is anexpression of the assumption by industry of its responsibility for itsemployees (Maurioce Bruce, 1961). Industry is expected to win the co-operation of the workers, provide them security of employment, fair wage,and equal opportunity for personal growth and advancement, and makewelfare facilities available to them.Democratic valuesThe principle of democratic values of labour welfare concedes that workersmay have certain unmet needs for no fault of their own, that industry has anobligation to render them help in gratifying those needs, and that workershave a right of determining the manner in which these needs can be met andof participating in the administration of the mechanism of need gratification.The underlying assumption to this approach is that the worker is a matureand rational individual who is capable of taking decisions forhimself/herself.Adequacy of wagesThe third principle of labour welfare is adequacy of wages; it implies thatlabour welfare measures are not a substitute for wages. It will be wrong toargue that since workers are given a variety of labour welfare services, theyneed be paid only low wages. Right to adequate wage is beyond dispute.Projectsformba.blogspot.com
  9. 9. Projectsformba.blogspot.comEfficiencyThe fourth principle of labour welfare lays stress on the dictum that tocultivate welfare is to cultivate efficiency. Even those who deny any socialresponsibility for industry do accept that an enterprise must introduce allsuch labour welfare measures which promote efficiency (Marshall, 1950). Ithas been often mentioned that workers’ education and training, housing, anddiet are the three most important aspects of labour welfare, which alwaysaccentuate labour efficiency.Re-personalizationSince industrial organisation is rigid and impersonal, the goal of welfare inindustry is the enrichment and growth of human personality. The labourwelfare movement seeks to bring cheer, comfort, and warmth in the humanrelationship by treating man as an individual, with quiet distinct needs andaspirations. Social and cultural programmes, recreation and other measuresdesigned after taking into consideration the workers’ interests go a long wayin counteracting the effects of monotony, boredom, and cheerlessness.Co-responsibilityThe sixth principle of labour welfare recognises that the responsibility forlabour welfare lies on both employers and workers and not on employersalone (Moorthy, 1958). Labour welfare measures are likely to be of littlesuccess unless mutuality of interest and responsibilities are accepted andunderstood by both the parties, in particular the quality of responsibility atthe attitudinal and organisational level.Totality of welfareThe final principle of labour welfare is that the concept of labour welfaremust permeate throughout the hierarchy of an organisation, and accepted byall levels of functionaries in the enterprise.ApproachesThe issue of labour welfare may be studied from different angles, such as: • The location, where these amenities are provided, within and outside the industrial undertakings; • The nature of amenities such as those concerned conditions of employment and • The welfare activities termed as ‘statutory’, ‘voluntary’ and ‘mutual’.Projectsformba.blogspot.com
  10. 10. Projectsformba.blogspot.com • The agencies which provide living conditions of work people; these amenities. • On the basis of location of welfare activities, labour welfare work has been classified by Broughton in two specific categories, namely, (a)intramural(b)extra-mural (a)Intra-mural activities: consist of such welfare schemes provided withinthe factories as medical facilities, provision of crèches, and canteens, supplyof drinking water, washing and bathing facilities, provision of safetymeasures such as fencing and covering of machines, good lay-out ofmachinery and plant, sufficient lighting, first-aid appliances; activitiesrelating to improving conditions of employment, recruitment and disciplineand provision of provident fund and gratuity, maternity benefits,etc.(b)Extra-mural activities: cover the services and facilities provided outsidethe factory such as, housing accommodation, indoor and outdoor recreationfacilities, amusement and sports, educational facilities for adults andchildren, provision of libraries and reading rooms. In the welfare activities concerned with conditions of employmentare included activities for the management of problems arising out of hoursof work, wages, holidays with pay, rest intervals, sanitation, continuity ofemployment, control over the recruitment of female and juvenile labour,while all such schemes of benefits as co-operative societies, legal andmedical aid, and housing are included in the category of activities concernedwith conditions of workers. Labour welfare work may be statutory, voluntary or mutual. It isstatutory when such activities have to be undertaken in furtherance of thelegislation adopted by the government. It is voluntary when the activities areundertaken at their own accord by the employers or some philanthropicbodies or when a labour organisation undertakes such activities for thewelfare of their members. It is mutual, when all parties join hands to bringabout the social and economic uplift of the workers. The National Commission on labour has classified various labourwelfare measures under two distinct classes:(1)those which have to be provided, irrespective of the size of theestablishment or the number of the persons employed therein such asfacilities relating to washing, storing, drying the clothing, first-aid, drinkingwater, latrines and urinals(2)those which are to be provided subject to the employment of a specifiednumber of persons, such as canteen, rest shelter, crèche, ambulance,etc. According to the Encyclopedia of social sciences, “industrialwelfare work ”has taken numerous forms such as:Projectsformba.blogspot.com
  11. 11. Projectsformba.blogspot.com(a)those dealing with immediate working conditions are special provisionsfor adequate light, heat, ventilation, toilet facilities, accident andoccupational disease prevention, lunch room, rest room, maximum hours,minimum wages,etc.;(b)those concerned with less immediate working conditions and groupinterests, are gymnasiums ,club rooms, play grounds, gardens, dancing,music, house organs, mutual aid societies, vacation with pay, profit-sharing,stockownership, disability and unemployment funds, pensions, savingsbanks, provisions for conciliation and arbitration, shop committees andworkers councils;(c)those designed to improve community conditions, such as housing, retailstores, schools, libraries, kinder gardens, lectures on domestic sciences, daynurseries, dispensary and dental service screening of motion pictures,arranging athletic contests and picnics and summer camps.Scope of labour welfare workIt is somewhat difficult to accurately lay down the scope of labour welfarework, especially because of the fact that labour class is composed ofdynamic individuals with complex needs. In a world of changing values, where ideologies are rapidlyundergoing transformation, rigid statements about the field of labour welfareneed to be revised. Labour welfare work is increasing with the growingknowledge and experience of techniques. An able welfare officer would ,therefore, include in his welfare programme the activities that would beconducive to the well-being of the worker and his family. The test of thewelfare activity is that it removes, directly or indirectly, any hindrance,physical or mental of the worker and restores to him the peace and joy ofliving the welfare work embraces the worker and his family The following list, which is by no means exhaustive, gives the itemsunder which welfare work should be conducted inside and outside the workplace:(1)Conditions of work environment:The workshop sanitation and cleanliness, humidity, ventilation, lighting,elimination of dust, smoke, fumes and gases, convenience and comfortduring work, operative postures, sitting arrangements etc; distribution ofwork hours and provision for rest times, breaks and workmen’s safetymeasures.Projectsformba.blogspot.com
  12. 12. Projectsformba.blogspot.com(2)Workers health services.These should include factory health centre; medical examination of workers,factory dispensary and clinic for general treatment; infant welfare; women’sgeneral education; workers recreation facilities; education, etc; (3)Labour welfare programme:These should cover factory council consisting of representatives of labourand employers; social welfare departments; interview and vocational testing;employment, follow-up, research bureau; workmen’s arbitration council.(4)Labour’s Economic welfare programme:These should include co-operatives or fair price shops for consumernecessities; co-operative credit society, thrift schemes and savings bank;health insurance; employment bureau; etc.(5)General welfare work:This should relate to housing and family care.Central SectorThere are Four types of initiatives through the Plan for the Labour andLabour Welfare Sector. They are: i. Training for skills development ii. Services to job seekersiii. Welfare of Labouriv. Administration of Labour regulationsMany initiatives are taken for the benefit of workers through the plans of anumber of Labour Intensive Sectors. These are not discussed here becausethey fall under the purview of respective sectoral programmes of the plan.Vocational Training/Skill Development TrainingThe primary purpose of vocational training is to prepare individuals,especially the youth in the age group of 15-25 years, for the world of workand make them employable for a broad group of occupations. The mainProjectsformba.blogspot.com
  13. 13. Projectsformba.blogspot.comvocational training schemes comprise of Craftsmen Training scheme,Apprenticeship Training scheme, Training of Skilled Workers, Training ofWomen as a special target group, Training of Craft Instructors, Training ofSupervisors and Foremen. Applied research on vocational training problemsis carried out. Preparation and development of instructional material isanother area where appropriate attention is being paid.Craftsmen Training scheme and Apprenticeship Training scheme, which areadequately dovetailed and meant to bring maximum benefit to the youth intheir formative years, form the core of the vocational training schemes.Other vocational training schemes, though smaller in magnitude, also serve avery useful and essential purpose in the overall sphere of vocational training.In spite of difficulties and shortcomings, the vocational training schemeshave continued to make progress specially in term of being the primarysource of manpower for industry. The schemes being well standardized andhaving national coverage, enjoy a fairly high crediability.The Central Government mainly concentrates on laying down the policies,procedures and training standards while the administrative aspect of theIndustrial Training Institutes (ITIs) is taken care of by the concerned StateGovernments/UTs. In this process, the Central Government is advised bytwo advisory tripartite bodies namely, National Council for VocationalTraining (NCVT) and the Central Apprenticeship Council (CAC). Both thecouncils have the Union Labour Minister as the Chairman.Craftsmen Training SchemeCraftsmen Training Scheme(CTS)under the National Vocational TrainingSystem was introduced in 1950 for imparting skill training.Training is imparted mainly in engineering trades. A few trades out side theengineering field are also covered but the bulk of the services sector andother needs of industries other than manufacturing, are not handled byDGE&T.Two major resources for such training are the Industrial Training Institutes(ITIs) and the 25000 industrial establishments that take part in ApprenticeTraining. There has been a significant growth and expansion in the networkof ITIs which have grown to 4086 in the public and private sector with aseating capacity of 6.41 lakh as on 31.12.1998 (State-wise details presentedin Annexure 5.7.3) and another 2.59 lakh under the Trade ApprenticeProjectsformba.blogspot.com
  14. 14. Projectsformba.blogspot.comScheme. Apprenticeship training scheme provides practical training in 135designated trades to train apprentices in 97 subject fields in engineering andtechnology for graduates and diploma holders and 94 subject fields fortechnicians.The National Vocational Training Institute at NOIDA (UP) and the Regionalvocational Training Institutes for Women in different parts of India impartbasic and advance levels of vocational training to women. A womens cellunder the office of DGE&T is also coordinating with the states in the matterof vocational training for women. In the Ninth Plan, a Centrally SponsoredScheme "Establishment of new ITIs in the North Eastern States and inJammu and Kashmir" is proposed.The existing training institutions have, no doubt, been meeting a significantpart of the requirements of the skilled manpower of the organised industry.It, however, seems necessary that the processes of restructuring andreorientation of their courses are made more dynamic with a view to quicklyrespond to the labour market. A greater involvement of industry in planningand running the training system would also be necessary for this purpose.For skill upgradation of the workers in the unorganised sector, flexibility inthe duration, timing and location of training courses would need to beintroduced. Since a sizeable proportion of employment would have to beself-employment the in the tiny and small units in various sectors, thetraining system should also gear up not only for providing hard skills forsuitable trades, but also the soft skills of entrepreneurship, management andmarketing, as part of the training courses.In the changed economic scenario, where displacement of labour isinevitable and existing labour force is expected to get retrenched, a specialtraining scheme is also being implemented by the Ministry of labour, so that,the workers thus retrenched are not affected adversely. This scheme isfunded out of the National Revival fund (NRF). Under this scheme, paymentare made to the workers who are voluntarily retiring and also for retrainingand redeployment of retrenched workers.Services to job seekersTo provide services to job seekers is another important initiative taken bythe Labour and Labour Welfare Plan. To achieve this objective, the NationalEmployment Service has been established.Projectsformba.blogspot.com
  15. 15. Projectsformba.blogspot.comNational Employment ServiceIt consists of a network of 942 (as on 30.6.98) Employment Exchangesspread throughout the country. These Employment Exchanges continue toprovide placement vocational guidance services to job seekers registeredwith them. During the period January - June,1998, the EmploymentExchanges effected 1.18 lakh placements (statewise details are in annexure4). Special emphasis was laid on promotion of self employment by suitablymotivating and guiding job seekers. Twenty three special cells have been setup for this purpose in selected District Employment exchanges. Out of 165.8thousand applicants on the live registers of these 23 cells about 61.1thousand have been placed in self employment up to December 1997, bythese cell. Besides placement, Employment Exchanges also handleEmployment Market Information. The function of identifying job seekershas been assumed now primarily by the organisations where jobs arise. Thegovernments now reach the job seekers directly when a sizable job demandarises.The number of jobs in public sector has reduced sharply with thereorientation of the role of economic planning.The National Employment Service in the context of the newly emergingmarket scenario has to be reoriented. The Employment Services has nowaccepted its enhanced role and is paying greater attention to compilation anddissemination of comprehensive labour market information. The importantreports generated by EMI are "The Quarterly Employment Review","Occupational and Educational Pattern in India" etc.The Employment Service continued to pay special attention to the needs ofthe weaker section of society. A comprehensive package of services to thehandicapped is provided by 17 Vocational Rehaibilitation Centres for theHandicapped. The centre at Vadodara caters exclusively to the needs ofhandicapped women. Vocational guidance and training in confidencebuilding is provided to job seekers belonging to the Scheduled Castes andthe Scheduled Tribes at 22 coaching cum guidance centres. Besides, thescheme to provide facilities to SC/ST job seekers for practising shorthandand typing is in operation in CGCs.In addition, there are also plan schemes for modernisation andcomputerisation of employment exchanges.Projectsformba.blogspot.com
  16. 16. Projectsformba.blogspot.comWelfare of labourOne of the major concerns of the Government has been the improvement oflabour welfare with increasing productivity and provision of a reasonablelevel of social security. The planning process attempts to achieve these goalsby monitoring working conditions and creation of industrial harmonythrough an infrastructure for healthy industrial relations.Special drives for inspections under the Crash Programmes & Task Forceinspections were organised during the year for extending coverage of labourlaws like the Minimum Wages Act, Payment of Wages Act, EqualRemuneration Act & Contract Labour (Regulation & Abolition) Act toworkers in the unorganised/informal sector. A total of 1074(P) inspectionsunder the above enactments were carried out during the year 1998 as a resultof which 15938(P) irregularities and 489(P) cases of under payments/nonpayments were detected.There are at present 12 Industrial Tribunals cum Labour Courts constitutedby Ministry of Labour dealing with industrial disputes in respect of whichthe Central Govt. is the appropriate authority. Two CGIT cum LabourCourts,one each at Lucknow and Nagpur have been set-up. It is alsoproposed to open three new CGITs at Hyderabad, Bhubaneswar andChennai, and provide computer facilities in all the CGITs in a phasedmanner. The number of Industrial Tribunals and Labour Courts set up by theState Governments and the Administrations of the Union Territories as on31.10.1998 was 331.Labour Welfare FundsThe Ministry of Labour is administering five welfare funds for beedi, cineand certain categories of non coal mine workers. the funds have been and setup under the following Acts of Parliament: 1. The mica mines Labour Welfare Fund Act, 1946. 2. The Limestone and Dolomite Mines Labour Welfare Fund Act. 3. The Iron Ore, Manganese Ore and Chrome Ore Mines Labour Welfare Fund Act 1976. 4. The Beedi Workers Welfare fund Act, 1976 5. The Cine Workers Welfare Fund Act, 1981Projectsformba.blogspot.com
  17. 17. Projectsformba.blogspot.comThe fund created by these acts, is used by the Central Government for theWelfare of Workers under these occupations.Agriculture WorkersAgriculture Workers constitute by far the largest segment of workers in theunorganised sector. These workers get employment for less then six monthsin a year and have to migrate to other ares for alternative employment.Several measures have been taken to protect the interests of the agriculturalworkers. The very first legislation-the Minimum Wages Act, 1948 is appliedto the agriculture sector also. Measures have also been taken to look into theinterest of construction workers. Many enactments were extended to theinclude construction workers.Child LabourAccording to the 1991 Census, the number of working children in thecountry was of the order of 11.28 million (State wise details are available inannexure 5.7.5). The existence of child labour in hazardous industries is agreat problem in India. Non availability of accurate, authentic and up to datedata on child labour has been a major handicap in planned intervention foreradication of this social evil. Efforts are underway in the Ninth Plan, tomodify and improve the existing National Child Labour Project. A majoractivity undertaken under this scheme is the establishment of special schoolsto provide non-formal education, vocational training, supplementarynutrition, stipend, health care etc. to children withdrawn from employmentin hazardous industries. Under the existing scheme 76 National ChildLabour Projects were sanctioned in the Child Labour endemic States tocover nearly 1.55 lakh children. According to the available information,about 1.05 lakh children have benefitted from the special schools. State wisecoverage under National Child Labour Project is furnished at Annexure5.7.6.The revised scheme approved by Govternment of India in January, 1999provides for 100 National Child Labour Projects to cover more children.Projectsformba.blogspot.com
  18. 18. Projectsformba.blogspot.comRehabilitation of Bonded LabourA Centrally Sponsored Scheme was launched by the Ministry of Labour in1978-79 for the identification, release and rehabilitation of bonded labourers.The scheme envisages provision of rehabilitation grant up to a ceiling limitof Rs. 10,000/- per freed bonded labourer, half of which is given as centralshare.Women LabourThe Ministry of Labour has set up a Women Labour Cell in 1975. Theintention was to focus attention on the lot of working women with a view toimproving it. An important activity of the Cell is to convene the meeting ofthe Central Advisory Committee which has been constituted under the EqualRemuneration Act, 1976 and follow up the recommendations made by theCommittee. Another important activity of the Women Cell is to examine andprocess project proposals to carry out studies on matters affecting womenworkers and also to fund programmes aimed at improving their economicwell being. Several projects aimed at improving the working conditions ofwomen and raising their economic level were processed by the Women Cellof the Ministry of Labour during 1998-99. The Cell also give grants-in-aid tovoluntary organisation to carry out research studies on problems of womenworkers, their employability and the extent of their displacement on accountof technological and various other changes. This scheme was introducedwith the intention of furthering Government’s policy of helping womenworkers to become aware of their rights and opportunities and also becomeeconomically independent.Occupational Safety and HealthThe Constitution of India contains specific provisions on OccupationalSafety and Health of workers. The Directorate General of Mines Safety(DGMS) and Directorate General of Factory Advice Service and LabourInstitutes(DGFASLI) strives to achieve occupational safety and health inmines factories and ports. The schemes relating to occupational safetyconcentrate on improvement of work environment, man-machineryinterface, control and prevention of chemical hazards, development ofprotective gears and equipment, training in safety measures anddevelopment of safety and health information system.Projectsformba.blogspot.com
  19. 19. Projectsformba.blogspot.comDirectorate General of Factory Advise, Service and Labour Institutes(DGFASLI)This organisation functions as the technical arm of the ministry in mattersconcerning with safety, health and welfare of workers in factories and ports/docks.Directorate General of Mines Safety (DGMS)The Directorate General of Mines Safety which is a subordinate office of theMinistry of Labour is entrusted with the responsibility of enforcing theprovisions of the Mines Act, 1952. With a view to ensuring enforcement ofnecessary safety measures in mines, inspections and enquiries are carried outby the inspecting officers. During the period April, 1998 to September 1998,17 notices and 11 orders were issued to coal mines and 4 notices and 15orders were issued to non-coal mines. The number of inspections andenquiries carried out during this period was 4181.Labour StatisticsThe Labour Bureau is responsible for collection, compilation andpublication of statistical and other information regarding employment,wages, earnings, industrial relations, working conditions etc. It alsocompiles and publishes the consumer Price Index Numbers for industrial andagricultural workers. The Bureau further renders necessary assistance to theStates for conducting training programmes in Labour Statistics ofState/District/Unit levels.Workers EducationThe Central Board of Workers Education is dealing with schemes fortraining of workers in the techniques of trade unionism and in bringing aboutconsciousness among workers about their rights, duties and responsibilities.The Board has also undertaken programmes for rural workers education andfunctional adult education.Labour Research and TrainingThe V.V. Giri National Labour Institute, a fully funded autonomous body ofthe Ministry of labour, conducts action oriented research and providestraining to grass root level workers in the trade union movement, both in theProjectsformba.blogspot.com
  20. 20. Projectsformba.blogspot.comurban and rural areas and also to officers dealing with industrial relations,personnel management, labour welfare etc.Social SecurityThere are a variety of laws enacted and schemes established by theCentral/State Governments with a view to provide for social security andwelfare of specific categories of working people.The principal social security laws enacted centrally are the following: 1. The Workmens compensation Act, 1923 (WC.Act.) 2. The Employees State Insurance Act, 1948 (ESI Act) 3. The Employees Provident Funds and Miscellaneous Provisions Act, 1953 (EPF & MP Act) 4. The Maternity Benefit Act, 1961 (MB Act) 5. The Payment of Gratuity Act, 1972 (PG Act)The EPF and MP Act are administered exclusively by the Government ofIndia through the EPFO. The cash benefits under the ESI Act areadministered by the Central Government through the Employees StateInsurance corporation (ESIC), whereas medical care under the ESI Act isbeing administered by the State Government and Union TerritoryAdministration. The Payment of Gratuity Act is administered by the CentralGovernment in establishments under its control, establishments havingbranches in more than one State, major ports, mines, oil fields and theRailways and by the State Governments and Union TerritoryAdministrations in all other cases. In mines and circus industry, theprovisions of the Maternity Benefit Act are being administered by theCentral Government through the Chief Labour Commissioner (Central) andby the State Governments in factories, plantations and other establishments.The provisions of the WC Act are being administered exclusively by StateGovernments.Programmes of the State SectorImportant programmes undertaken by the State Governments relate todiversification and expansion of the vocational training programme,improvement in the quality of training and extension of trainingopportunities for women, the World Bank-assisted Vocational TrainingProject, extension and modernisation of employment services, strengtheningProjectsformba.blogspot.com
  21. 21. Projectsformba.blogspot.comof labour administration, rehabilitation of bonded labour, welfare of ruraland urban unorganised labour etc.Some of the State Governments have attempted to enhance the utility of theemployment service set-up. The Government of Gujarat has attempted toutilise the employment service set-up at the Taluka level by bringing the jobseekers and the job providers together in Bharti Melas. The MaharashtraGovernment, in its programme of State-wide employment guarantee, intendsto use the employment exchanges to identify the beneficiaries. The WestBangal Government has provided unemployment allowance to thoseregistered, and in the process has generated some information on the numberof unemployed persons in the State, by identifying them.States have also introduced various social security schemes. TheGovernments of Gujarat, Kerala, Karnataka and Madhya Pradesh haveinsurance schemes for the landless agricultural labourers. This needs to beextended to the entire country. Karnataka, Kerala and Tamil Nadudemonstrated the viability and potential of the old age pension scheme.Some form of social assistance is also given to the workers in theunorganised sector. This could be considered by the other states.Most of the States have strengthened their enforcement machinery toimplement various labour laws. The Assam Government has beenimplementing the Minimum Wages Act very meticulously. Many States andUnion Territories have appointed competent authorities under the EqualRemuneration Act, 1976 and have also set-up Advisory Committees underthe Act. Kerala State has introduced the Regulation of Employment dConditions of Service Act for building and other construction workers.There are various welfare schemes operated in some states. The AssamGovernment has the Assam Tea Welfare Board to promote the welfare ofplantation workers. The State of Kerala has introduced many Welfare FundActs for unorganised workers and has schemes to implement them. TheseActs relate to Handloom Workers, Agricultural Workers, Abkari Workers,Auto Rikshaw Workers, Tailoring Workers, Kerala Etta, Kattuvalli, Thazhaworkers and Beedi and Cigar Workers.Projectsformba.blogspot.com
  22. 22. Projectsformba.blogspot.comSocial security measuresThe concept of social security has been mentioned in the early Vedic hymnwhich wishes everyone to be happy, free from ill- health, enjoy a brightfuture and suffer no sorrow. The phrase social security is, therefore, a newname for an old aspiration. Today is based on the “ideals of human dignityand social justice”. Social security is defined as “the security that society furnishes,through appropriate organisation, against certain risks to which its membersare exposed”. These risks are essentially contingencies against which theindividual, who has small means, cannot protect himself. Thesecontingencies include employment injury, sickness, disablement, industrialdisease, maternity, old age, burial, widowhood, orphanhood andunemployment. Social security is also broadly defined as “the endeavour of thecommunity, as a whole, to render help to the utmost extent possible to anyindividual during periods of physical distress inevitable on illness or injuryand during economic distress consequent on reduction or loss of earningsdue to illness, disablement, maternity, unemployment, old age or death ofworking member”. Social security thus provides a self-balancing socialinsurance or assistance from public funds or a combination of both. Though social security programmes vary from country to country,their three major characteristics are: they are established by law; theyprovide some kind of cash payment to individuals to replace atleast a part oftheir lost income that our due to such contingencies as unemployment,maternity, work injury, invalidism, sickness, old age and death; the benefitsor services are provide in three major ways: social insurance, socialassistance or public services.Social insurance:The features of social insurance are: • It is financed entirely by or mainly from the common monetary contributions of workers, employers and the state. • The state and the employers make major contribution to this fund, while the employees pay only a nominal amount.Projectsformba.blogspot.com
  23. 23. Projectsformba.blogspot.com • When there is total or partial loss of income, these benefits, within limits, ensure the maintenance of the beneficiary’s minimum standard of living. • Social insurance benefits are granted without an examination of an individual’s need and without any means test, without affecting the sense of self respect of the beneficiary. • These benefits are so planned as to cover, on a compulsory basis, all those who are sought to be covered. • Social insurance reduces the suffering arising out of the contingencies faced by an individual –contingencies which he cannot prevent. Social insurance is different from commercial insurance, for the latteris voluntary and is meant for the better paid section of the population, and itsbenefits are in proportion to the premiums paid; it offers protection onlyagainst individual risks and does not aim at providing a minimum standardof living.Social assistance:Social assistance is provided as a supplement to social insurance for thoseneedy person who cannot get social insurance payments, and is offered aftera means test. The general revenues of the government provide the financefor social assistance payments, which is made available as a legal right tothose workers who fulfil given conditions. Social assistance and socialinsurance go side by side. Social assistance programmes cover suchprogrammes as unemployment assistance, old- age assistance, publicassistance and national assistance. Social security is the combination of social assistance and socialinsurance. Social insurance, however, falls midway between the two, for it isfinanced by the stste as well as by the insured and their employers;whereassocial assistance is given gratis to the needy by the state or the community.Public service:Public service programmes constitute the third main type of social security.They are financed directly by the government from their general revenues inthe form of cash payment and services to every member of the communityfalling within the defined category. This kind of public service is currentlyavailable in a number of countries in the form of national health serviceproviding medical care for every person in the country, old-age pension,Projectsformba.blogspot.com
  24. 24. Projectsformba.blogspot.compension for invalidism, survivor’s pension to every widow or orphan, and afamily allowance to every family having a given number of children. Although these social security programmes have differentcharacteristics, it is not always easy to draw a line of demarcation amongthem. In many cases, two or even three programmes have commoncharacteristics. Apart from state there are many other agencies whichprovide se4curity against contingencies. In many countries trade union havetheir own sickness, old-age, unemployment schemes. Saving funds, sicknessbenefits and old-age pensions have also been provided by a large number oforganisations to their employees.“ The underlying idea of social securitymeasures is that a citizen, who has contributed, or is likely to contribute tohis country’s welfare, should be given protection against certain hazards”. The 1952 ILO convention on social security (minimumstandard)divided social security into nine components:(a)Medical care: This should cover pregnancy,confinement, and itsconsequences and any disease which may lead to a morbid condition. Theneed for pre-natal and post-natal care, in addition to hospitalisation, wasemphasized. A morbid condition may require general practitioner care,provision of essential pharmaceuticals and hospitalization.(b)Sickness benefit:This should cover incapacity to work following morbidcondition resulting in loss of earnings. This calls for periodical paymentsbased on the convention specification. The worker need not be paid for thefirst three days of suspension of earnings and the payment of benefit may belimited to 26 weeks in a year.(c) Unemployment benefit:This should cover the loss of earning during aworker’s unemployment period. When he is capable and available for workbut remains unemployed because of lack of suitable employment. Thisbenefit may be limited to 13 weeks payment in a year, excluding the firstseven days of the waiting period.(d)Old-age benefit: This benefit provides for the payment-the quantumdepending upon an individual’s working capacity during the period beforeretirement.-of a certain amount beyond a prescribed age and continues tilldeath.Projectsformba.blogspot.com
  25. 25. Projectsformba.blogspot.com(e)Employment injury benefit: This should cover the followingcontingencies resulting from accident or disease during employment: • Morbid condition • Inability to work following a morbid condition, leading to suspension of earning; • Total o0r partial loss of earning capacity which may become permanent; • Death of the breadwinner in the family, as a result of which family is deprived of financial support. Medical care and periodical payment corresponding to an individual’s need should be available.(f)Family benefit: This should cover responsibility for the maintenance ofchildren during an entire period of contingency. Periodical payment,provision of food, housing, clothing, holidays or domestic help in respect ofchildren should be provided to a needy family.(g)Maternity benefit: This benefit should cover pregnancy, confinementand their consequences resulting in the suspension of earnings. Provisionshould be for medical care, including pre-natal confinement, post-natal careand hospitalization if necessary. Periodical payment limited to 12 weeksshould be made during the period of suspension of earnings.(h) Invalidism benefit: This benefit, in the form of periodical paymentsshould cover the needs of workers who suffer from any, disability arising outof sickness or accident and who are unable to engage in any gainful activity.This benefit should continue till invalidism changes into old-age, when oldage benefits would become payable.(i) Survivor’s benefit: This should cover periodical payments to the familyfollowing the death of its breadwinner and should continue the entire periodof contingency. The ILO has suggested various methods of organizing, establishingand financing various social security schemes. For the benefit of the lessdeveloped countries, it has fixed the level of benefits fairly low, so that theschemes may be practicable.Projectsformba.blogspot.com
  26. 26. Projectsformba.blogspot.comSocial security and unorganised labourSocial security is the protection which society provides for its members,through a series of public measures, against the economic and social distressthat otherwise would be caused by the stoppage or substantial reduction inearnings resulting from sickness, maternity, employment injury,unemployment, invalidity, old age and death; provision of medical care, andthe provision of subsidies for families with children (ILO, 1989). Thesystem of social security was started with the organised sector. However,owing to pressures brought on the state and the society by the growingawareness within the unorganised sector, concern is increasingly beingexpressed and attention given to expanding legislative and social securityprotection to the unorganised sector. Social security schemes should be linked to economic security,including employment, in-come, and assets. There should be a convergenceof the ways of reaching sustainability and of attaining expanded coverage.The growing demands of the unorganised labour force and their attempts toorganise themselves can be met by a decentralised participatory socialsecurity system. It will lead to a release of the people’s creative energies anda rapid growth of social security for the organised sector. Extending socialsecurity to the unorganised sector is not merely a matter of extendingexisting organised sector schemes to new groups for the following reasons(Getupig, et al, 1992).1. Unorganised sector is not a homogenous category;2. Identifying the employer in this sector is difficult;3. Unlike the organised sector, where steady and regular employment is agiven fact, unorganised sector workers need employment security, incomesecurity, and social security simultaneously; and4. Needs of the unorganised sector workers vary from those of the organisedsector.Welfare amenities stipulated in the Factories Act, Mines Act, PlantationsLabour Act, etc., are employment-based, in the sense that such Acts areapplicable to undertakings employing the minimum prescribed number ofworkers. Outside the realm of these Acts, there are a large number of small-scale establishments, which have no obligation, statutory or other-wise, toprovide welfare amenities to their workers. These establishments are locatedin both urban and rural areas, and are engaged mostly in processing primaryproducts or in supplementing the existing large-scale industries intransportation, construction, and retail trade. (Ghosh Subratesh, 1996). TheProjectsformba.blogspot.com
  27. 27. Projectsformba.blogspot.comprecise estimate of their employment strength and their wage, welfare andworking conditions are not known. The very nature of industry, the frequentcollusion between the employer and his workmen and place of work oftenbeing in the backyard of the employers’ dwelling are some of the socialproblems which stand in the way of bringing the real picture of labourconditions to light. In the absence of any reliable data necessary for policyrecommendations, one could take stock of the situation only in terms ofopinions expressed by knowledgeable sources.DEFINITION The first National Commission on Labour (1966-69) defined unorganised labour as those who have not been able to organise themselves in pursuit of common objectives on account of constraints like casual nature of employment, ignorance and illiteracy, small and scattered size of establishments and position of power enjoyed by employers because of the nature of industry etc. Nearly 20 years later the National Commission on Rural Labour (NCRL: 1987-91) visualised the same scenario and the same contributory factors leading to the present status of unorganised rural labour in India. EXTENT OF UNORGANISED LABOUR The 1991 Census has classified workers in this country into two distinct categories as main workers and marginal workers. The main workers are those workers who work for the major part of the year (296 days) and marginal workers are those who work for less that 6 months (183 days). Out of a total work force of 314 million in India, about 286 million (i.e. about 91%) were main workers and about 28 million (i.e.9%) were marginal workers. The data of the Census of India also shows that the bulk of the working population is in the unorganised sector (i.e. 91% of the total population) and this workforce is as yet not actively unionised. The organised sector, which is generally extant around urban settlements, accounts for only 9% of the total work force.CATEGORIES OF UNORGANISED LABOURProjectsformba.blogspot.com
  28. 28. Projectsformba.blogspot.com Unorganised workers can be categorised broadly under the following four heads, namely – 1. In terms of occupation Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged in animal husbandry, in beedi rolling, beedi labelling and beedi packing, building and other construction workers, leather workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw mills, oil mills etc. may come in this category. 2. In terms of nature of employment 3. Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers come under this category. 4. In terms of specially distressed categories Toddy tappers, scavengers, carriers of head loads, drivers of animal driven vehicles, loaders and unloaders, belong to this category. 5. In terms of service categories Midwives, domestic workers, fishermen and women, barbers, vegetable and fruit vendors, newspaper vendors etc. come under this category.Social security measures in unorganised sector in IndiaSocial security comprises two types of measures, promotional andprotective. Promotional measures consist mainly of employment, training,and nutrition schemes, by which persons are enabled to work and earn alivelihood. On the other hand, protective measures consist of schemes bywhich the State provides the means of livelihood when a person is not ableto work (Sankaran, T.S, 1993). ILO standards relating to social security aremainly protective and have been designed primarily for workers in theorganised sector. Both promotional and protective measures are necessary toprovide adequate social security facilities.Projectsformba.blogspot.com
  29. 29. Projectsformba.blogspot.comMedical careAccording to ILO recommendation No.69, medical care should be providedeither through a social service medical care service, with supplementaryprovisions by way of social assistance, to meet the requirements of people inneed who are not covered by social insurance, or through a public medicalservice (ILO, 1984). It requires that complete preventive and curative carebe available, care which is rationally organised and coordinated with generalhealth services. In India, medical care is provided largely by the publicmedical service, by private doctors and hospitals, and to a limited extent bysocial insurance schemes, welfare funds, and voluntary health associations.Some of the Welfare Funds in Kerala have adopted the reimbursement of thecost of medical care at standard rates or actual, whereas the Employees StateInsurance Scheme is based on providing the service directly under anintegrated arrangement in which the financing and the medical services vestwith the same organisation. On the other hand, some of the public sectorestablishments provide service indirectly by entering into contract withdoctors, diagnostic centres, and hospitals. Sickness benefitSickness benefit is payable when an insured person has to stop work due tohis poor health conditions, and such a stop in work usually entails reductionor stoppage of earnings. Cash benefit is designed to replace in whole, or inpart, the lost earnings. In India, there is provision for payment of sicknessbenefit under the Employees State Insurance Scheme (Government of India,1996). Employees of Central and State governments and some public andprivate sector establishments are entitled to medical leave on half-pay.Maternity benefitOne of the earliest conventions adopted by ILO was the Maternity ProtectionConvention in1919. The purpose of this Convention was to ensure that a woman workerwould be able to sustain herself and her baby during the period immediatelybefore and after her confinement. Maternity benefit is usually providedunder a social insurance scheme along with medical care and sicknessbenefit. In India maternity benefit is provided under the Maternity BenefitAct (as an employers’ liability) the Employees State Insurance Act (as a partof the health insurance scheme), the Beedi and Cigar (Conditions ofEmployment) Act, Beedi and Cigar Labour Welfare Fund Act, and thevarious State government schemes for social assistance. The National SocialProjectsformba.blogspot.com
  30. 30. Projectsformba.blogspot.comAssistance Programme also provides for payment of maternity benefits inlump sum.Employment injury benefitEmployment Injury Benefit is the most widely adopted branch of socialsecurity, and is also known as workmen’s compensation. According to ILORecommendation No.67 concern in income security, the contingency forwhich compensation for employment injury should be paid, is traumaticinjury, or disease in the course of employment, and not injury brought aboutdeliberately, or by serious and willful misconduct of the victim, whichresults in temporary or permanent disability or death (ILO, 1984). This is acash benefit but is often associated with medical care. In India, employmentinjury benefit is provided under theWorkmen’s Compensation Act and the Employees State Insurance Act.While the formerAct is applicable to some employment in the unorganised sector, such as theconstruction industry, the latter Act is applicable mainly to workers in theorganised sector.Old-age benefitOld age, invalidity, and survivors’ benefits are the main long-term socialsecurity benefits, which are of great importance in any social securityscheme. ILO conventions stipulate that the pensionable age should not bemore than 65 years, unless required by demographic, economic, and socialcriteria, and that there should be a lower age for persons engaged in arduousoccupations. Old age pension may be at a flat rate, or be related to one’s pastearnings. The current trend appears to be toward building a multi-tieredsystem consisting of a basic minimum pension and one or more earnings-related pensions. In India old-age benefit is provided as follows (Ministry ofLabour, 1996).(a) Government employees: Paid by respective governments on the basis ofemployers’ liability.(b) Employees’ pension scheme:Workers covered under the Employees Provident and MiscellaneousProvisions Act.(c) Destitutes and persons below the poverty line:Paid under national old age pension scheme and old age pension schemes ofState governments.There exist no pension schemes for the self-employed, or for workersemployed on a casual, temporary or intermittent basis who are not destitute,Projectsformba.blogspot.com
  31. 31. Projectsformba.blogspot.comand who are not covered by the Employees Provident Fund andMiscellaneous Provisions Act.Invalidity benefitInvalidity benefit is meant for people who have permanently lost theircapacity to earn to the extent prescribed. According to ILORecommendation No.67 concerning income security, the contingency inwhich invalidity benefit is payable is the inability to engage in anysubstantially gainful activity, because of a chronic condition due to diseaseor injury, or because of the loss of a member or its proper functioning. Therelevant ILO convention specifies 15 years of contribution or employment or10 years of insurance. But usually one requires only a few years’ insurance,say five years, a part of which needs to be immediately preceding theinvalidity. In India, the Employees Pension Scheme introduced in 1995provides for invalidity benefits.Survivors’ benefitThis benefit is meant primarily for widows and children of persons coveredby Social Security Schemes who cease to have any financial support on thedeath of their breadwinner. However, national legislation often recognisesclaims of other dependents provided there are no primary beneficiaries. Awidespread practice is to base the survivors’ pension on the rate of the oldage pension the deceased was receiving or would have received (Sankaran,T.S, 1993). In India, survivors’ benefit is provided under the EmployeesState Insurance Act and Workman’s Compensation Act in case of death of aperson engaged in any employment covered under these Acts. This benefit isprovided under the Employees Provident Fund and MiscellaneousProvisions Act in case of the death of a member of the scheme for anyreason. Insurance schemes of the Life Insurance Corporation and GeneralInsurance Corporation also provide this benefit. The National FamilyBenefit Scheme extends this benefit in case of the death of the breadwinnerof a family which lies below the poverty line.Unemployment benefitThe underlying principle of unemployment benefit is that if a person,through no fault of his, is deprived of his income, he has a right to expectincome support, at least for the necessities of life while he remains availablefor work. According to ILO recommendations No.67, the contingency inwhich unemployment benefit should be paid is loss of earnings due to a stateof unemployment of an insured person who is ordinarily employed, a personProjectsformba.blogspot.com
  32. 32. Projectsformba.blogspot.comwho is capable of regular employment in some occupation and is searchingfor suitable employment or due to part time unemployment (Government ofIndia, 1995-‘96). Its main purpose is to deal with temporary unemploymentof employed persons and not the extensive and prolonged unemploymentand under-employment found in many developing countries. The payment ofthe benefits depends on satisfying the qualifying clause of coveredemployment, and a waiting period may also be applied.Family benefitILO Recommendation No.67 says that society should co-operate withparents, and give general assistance designed to secure the wellbeing ofchildren. This benefit is intended to assist families in raising their children.Although there are no family benefit schemes in India, which provide for thepayment of cash allowances to families for the maintenance of children,there exist many schemes which help families of Scheduled Castes/Tribes,minorities and other weaker sections of society, in the discharge of theirresponsibilities for education of their children, marriage of their daughters,construction of houses, and meeting funeral expenses.Strategies for social security in unorganised sectorThe majority of the Social security schemes implemented in the countrywere in the organised sector, keeping large numbers outside the realm of theSocial security net (Berman, 1995). A beginning has been made lately toprovide social insurance for workers in the unorganised sector, with the helpof the Central and the State governments. These schemes are administeredby government agencies, co-operatives or NGOs, and are a combination ofsocial assistance and social insurance.Insurance schemesThe Life Insurance Corporation of India has developed group insurance,which is akin to social insurance based on large numbers, and has thepotential to provide social security to persons in the unorganised industrialand agricultural sectors. There exist now several other group insuranceschemes for the unorganised sector workers such as milk producers,handloom weavers, rickshaw pullers, shop assistants, beedi workers, andfish farmers. The schemes of the LIC provide mainly survivor benefits;however, some also provide old-age pensions. The General InsuranceCorporation (GIC) of India also administers a few social security schemesfor poor families, a Hut Insurance Scheme, and a Solatium Fund. InProjectsformba.blogspot.com
  33. 33. Projectsformba.blogspot.comaddition, GIC has introduced a Health Insurance Scheme, and has beenadministering the comprehensive Group Insurance Scheme for the CentralGovernment. The schemes of theGeneral Insurance Corporation provide invalidity benefits, or healthinsurance, or protection against loss of property.National Social Assistance ProgrammeOf the various protective schemes in existence for workers in theunorganised sector, the most important is the National Social AssistanceProgramme introduced in 1955 (Wadhawan, 1989). It provides socialassistance to poor households in the case of old age, death of thebreadwinner, and maternity through the National Old Age Pension Scheme,National Family Benefit Scheme, and the National Maternity BenefitScheme respectively. Under the National Old Age Pension Scheme, Centralassistance is provided to States for payment of old age pension to personswho are of the age of 65 years or more. In addition to the National Old AgePension Scheme, all State governments and Union territories have their ownold-age pension schemes.Other pension schemesApart from the old-age pension schemes already referred to, the StatesKerala, Tamil Nadu,Karnataka, Andhra Pradesh, Maharashtra, and Gujarat have pension schemesfor agricultural workers. Many states have extended the old-age pensionscheme benefits to destitute widows, physically and mentally retardedpersons, freedom fighters and indigent artists; and some have also set uphomes for destitute widows and deserted /divorced women. Under theFamily Benefit scheme assistance is given to families below the poverty lineon the death of their breadwinner; under the National Maternity Benefitscheme assistance is given to pregnant women for the first two childbirths.Welfare FundsWelfare funds represent one of the models tried in India for providing socialsecurity protection to workers in the unorganised sector. There exist broadlytwo types of welfare funds– contributory and tax-based. The Government ofIndia has set up tax-based welfare funds for mine workers, beedi rollers, cineworkers, and workers in the building industry; these funds are financed bycess levied on the production or export of specified goods. They providemainly medical care, assistance for the education of children, housing andProjectsformba.blogspot.com
  34. 34. Projectsformba.blogspot.comwater supply, and recreational facilities. There are nearly 20 Welfare Fundsconstituted by Government of Kerala for the benefit of different targetgroups such as agricultural workers, head-load workers, constructionworkers, coir workers, cashew workers, motor transport workers,autorickshaw workers, toddy workers, and artisans the majority of which arecontributory.Existing models of social security and labour welfareSince India has committed to the welfare of the marginalized sections of thesociety the government has taken upon itself the delivery of all types ofsocial services and social security. This pattern is reflected in existingmodels of social security delivery as may be seen from Table 2.1. There aremainly three types of social security models: employers’ liability, socialinsurance, and social assistance. The last category includes welfare funds ofCentral government, welfare funds of State government, subsidisedinsurance schemes, and other forms of social assistance. The beneficiaries ofthe first (employers’ liability) are mainly workers in the organised sector,whereas under social assistance the beneficiaries are both workers in theorganised sector and workers in the informal sector. The latter belong ingenerally to the marginalised sectors. In the context of growingprivatizations of services on the one hand and the growing awareness andorganisation of the oppressed sections of workers on the other, it isnecessary to search for models of effective social security provision to allthe unorganised sector workers. Breadwinner and maternity through theNational Old Age Pension Scheme, National Family Benefit Scheme, andthe National Maternity Benefit Scheme respectively. Under the National OldAge Pension Scheme, Central assistance is provided to States for payment ofold age pension to persons who are of the age of 65 years or more. Inaddition to the National OldAge Pension Scheme, all State governments andUnion territories have their own old-age pension schemes..Table 2.1 Existing Models of Social Security Model Nature of Beneficiaries Administrative/ Benefit Arrangement Financial 1.Employers’ 1. Workers in the Employers Liability Workermen’s Organized manageProjectsformba.blogspot.com
  35. 35. Projectsformba.blogspot.com comp. Sector 2.Maternity Benefit 3.Gratuity 4.Retrenchment comp. 2.Social (A) 1.Medical Workers in the Administered by Insurance Care Organised Employees’ 2.Sickness sector State 3.Maternity Insurance 4.Occupational Corporation Injury financed out of contributions from employers, employees and State Governments (B)1.Old-age Workers in the Administered by benefit organized central Board of 2.Invalidity sector and Trustees, benefit some sections financed by 3.Survivors’ of the workers contributions benefit in organized from 4.Provident sectors. employers, Fund employees and central government.Projectsformba.blogspot.com
  36. 36. Projectsformba.blogspot.com 3.Social (A) 1.Medical 1. Mine Administered (a)Welfare care workers Depart-mentally Funds of 2.Education 2. Beedi financed by Central 3.Housing workers special levies in Government 4.Water Supply 3. Cine the form of workers cesses. 4. Building works (B) 1.Education 2.Old-age Benefit 3.Survivors’ Benefit (b) Welfare 1.Old-age Workers in the Administered by Funds of Benefit unorganised autonomous state 2.Medical Care sector, boards Government 3.Education such as financed by 4.Assistance handloom contributors for workers, Coir from employers, marriage, Workers and workers and housing etc. Cashew others Workers. . (c) 1.Survivors’ Vulnerable Administered by Subsidized benefit groups LIC Insurance 2. Invalidity of workers and GIC, benefit such as financed by agricultural contributions workers from and handloom central and state workers. Governments (d) Other 1.Old-age Persons outside Administered Forms of benefit the Depart-mentally Social 2.Maternity job market and financial from Assistance benefit below the general revenues 3.Surviovrs’ poverty benefit line, destitutes,Projectsformba.blogspot.com
  37. 37. Projectsformba.blogspot.com 4. Assistance orphans, for: deserted, employment and divorced training women, education etc. widows, disabled persons, SCs., STs., OBCs, etc.Social security for the unorganised workers cannot be reached bycentralizing and standardizing schemes; they can be reached by workersthemselves to take initiative (Subramanya, 1994). People remain weak andvulnerable partly because they are unorganised and hence isolated andpowerless. The provision social security can itself be a means that wouldlead the unorganised sector workers to organise and become empowered.Security of needs like food, health care, housing and child care, isempowering for vulnerable unorganised sector workers and helps them toalter their bar-gaining positions in the market (Sen and Dreze,1990).Centralised non-participatory systems tend to be disempowering,while participatory and beneficiary-run systems lead the workers to organisethemselves. LEGISLATIVE PROTECTION The Government has taken various initiatives through enactment of legislations, creation of welfare funds, spreading workers education and through supporting non-governmental organisations to bring this deprived class into the mainstream of our work force. Some of the important legislations which help unorganised workers are as under:-  Minimum Wages Act, 1948.  Workmen’s Compensation Act, 1923.  Maternity Benefit Act, 1961Projectsformba.blogspot.com
  38. 38. Projectsformba.blogspot.com  The Employees State Insurance Act, 1948.  Bonded Labour System (Abolition) Act, 1976.  Contract Labour (Regulation & Abolition) Act, 1970.  Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979. Indian social security system SALIENT FEATURES OF VARIOUS ACTS FOR WHICH THE CENTRAL INDUSTRIAL RELATION MACHINERY IS THE ENFORCING AGENCY. The Central Industrial Relation Machinery (CIRM) is the responsiblefor enforcing the following labour Laws in the industries andestablishments for which the Central Government is the appropriateGovernment.  PAYMENT OF WAGES ACt 1936. The Central Government is the Appropriate Government under the Actin respect of the establishments of Railways, Mines/oil-fields, AirTransport and major ports. Employers cannot withhold wages earned byworkers nor can they make any unauthorised deduction. Payment must bemade before expiry of a specified day after the last day of the wageperiod. Fines can be imposed for only those acts or omissions, whichhave been approved by an appropriate authority and must not exceed anamount equal to three per cent of wages payable. If payment of wages isdelayed or wrongful deductions are made, workers or their trade unionscan file a claim.  MINIMUM WAGES ACT, 1948 The Minimum Wages Act, empowers the Government to fix minimumwages for employees working in specified employments. It provides forreview and revision of minimum wages already fixed after suitableintervals not exceeding five years. Central Government is the appropriateagency in relation to any scheduled employment carried on by or underits authority or in railway administration or in relation to mines, oilfieldsProjectsformba.blogspot.com
  39. 39. Projectsformba.blogspot.comor major ports or any corporation established under the Central Act. Stategovernments are the appropriate agencies in relation to other scheduledemployment. The Central Government is concerned to a limited extentwith building and construction activities mostly carried on by CentralPublic Works Department, Ministry of Defence etc, and agriculturalfarms under the Ministries of Defence and Agriculture. Bulk of suchemployment fall in the state spheres and state governments are requiredto fix/revise wages and ensure their implementation in respect ofscheduled employment within their spheres. Enforcement of Minimum wages in Central sphere is secured [throughthe Central Industrial Relations Machinery (CIRM). The CentralGovernment has fixed Minimum Wages under the Minimum Wages Act,1948 for 40 scheduled employment under the Central Sphere.  PAYMENT OF BONUS ACT 1965 :The Act Applies to all Factories and every other establishments, whichemploys twenty or more workmen. The Payment of Bonus Act, 1965provides for a minimum bonus of 8.33 percent of wages. The salarylimited fixed for eligibility purposes in Rs. 3,500 per month and thepayment is subject to the stipulation that the bonus payable to employeesdrawing wages or salary between Rs2,500 and Rs. 3,500 per monthwould be calculated as if their salary or wages is Rs. 2,500 per month.The Central Government is the Appropriate authority in respect of theindustries /establishments for which it is appropriate Government underthe industrial Disputes Act, 1947.  EQUAL REMUNERATION ACT 1979 :Equal Remuneration Act 1979 Provides for payment of equal wages forwork of same and similar nature to male and female workers and for notmaking discrimination against female employees in the matters oftransfers, training and promotion etc. Central Government is theappropriate Govt. in respect of industries/establishments for which it isappropriate Govt. under the Industrial Disputes Act. 1947.Projectsformba.blogspot.com
  40. 40. Projectsformba.blogspot.com  CONTRACT LABOURThe Contract Labour (Regulation and Abolition) Act, 1970 has beenenacted to regulate the employment of contract labour in certainestablishments and to provide for its abolition in certain circumstancesand for matters connected therewith. It applies to all establishmentsemploying 20 or more contract labour and to all contractors who employs20 or more contract labors. It applies to all establishments 20 or morecontract Labour and to all contractors who employer, 20 or moreContract Labour. The Act provides for the constitution of Central andState Advisory Boards to advise the concerned governments on mattersarising out of the administration of the Act.The Central Government has issued a number of notifications prohibitingemployment of Contract Labour in different categories of works, job andprocess as in mines, Food Corporation of Indias godowns, port trusts andmany other industries/ establishments for which it is the AppropriateGovernment. The Central Advisory Contract Labour Board has alsoconstituted a number of committees to enquire into the question ofprohibition of contract labour system in different establishments.Central Government is the Appropriate Government in respect ofindustries and establishments for which it is Appropriate Governmentunder the industrial Disputes Act,1947  CHILD LABOUR (Prohibition and Regulation) Act,1986.The Child Labour (Prohibition & Regulation) Act, 1986 prohibitsemployment of children in certain hazardous occupations and processesand regulates their employment in some other areas.Central Government is the Appropriate Government in relation to anestablishment under the Control of the Central Government or a railwaysadministration or a major port or a mine or oilfield. The Honble SupremeCourt in their Judgement dated 10.12.1996 in the Writ Petition (Civil)No.465/86 has given certain directions regarding the manner in whichchildren working in hazardous occupations are to be withdrawn andrehabilitated. One of the important directions of the Supreme Courtrelates to conduct of survey of Child Labour. The issue of conductingsurvey came up for discussion in the Conference of Labour Ministers,Projectsformba.blogspot.com
  41. 41. Projectsformba.blogspot.comLabour Secretaries, Labour Commissioner of all the States/UTs whichwas held in New Delhi on 22.1.1997 under the Chairmanship of theUnion Labour Minister.After the deliberation in the conference guidelines to the StateGovernments for implementing the judgement of the Honble SupremeCourt have been issued by the Ministry of Labour.  CERTIFICATION OF STANDING ORDERS:The Industrial Employment (standing orders) Act 1946 is an Act torequire employers in industrial establishments to formally defineconditions of employment under them. It applies to every industrialestablishment wherein 100 (reduced to 50 by the Central Government inrespect of the establishments for which it is the Appropriate Government)or more workmen are employed. And the Central Government is theappropriate Government in respect of establishments under the control ofCentral Government or a Railway Administration or in a major port,mine or oil field. Under the Industrial Employment (Standing Orders)Act, 1946, all RLCs(C) have been declared Certifying Officers to certifythe standing orders in respect of the establishments falling in the CentralSphere. CLC(C), Jt. CLC(C) and all Dy.CLCs(C) have been declaredAppellate Authorities under the Act.  HOURS OF EMPLOYMENT REGULATIONS 1961.The Hours of Employment Regulations are applicable to all railwayservants excepting those governed by the Factories Act, Mines Act andthe Indian Merchant, Shipping Act as well as those specifically excluded.The Hours of Employment Regulation provides for classification ofrailways workers depending upon nature of duties as intensive,continuos, essentially intermittent and excluded.It regulates hours of work and periods of rest. workers aggrieved byclassification can approach RLCs who is empowered to decide suchcases.  MATERNITY BENEFIT ACT , 1961The Maternity Benefit Act, 1961 regulates employment of women incertain establishments for a certain period before and after child birth andProjectsformba.blogspot.com
  42. 42. Projectsformba.blogspot.comprovides for maternity and other benefits. The Act applies to mines,factories, circus, industry, plantation and shops and establishmentsemploying ten or more persons, except employees covered under theEmployees State Insurance act, 1948. It can be extended to otherestablishments by the state governments. There is no wage limit forcoverage under the Act. The Central Government is AppropriateGovernment in respect of the Circus Industry and Mines  GRATUITY ACT, 1972The Payment of Gratuity Act, 1972 is applicable, to factories, mines, oilfields, plantations, ports, railways, motor transport undertakings,companies, and to shops and other establishments, Employing 10 or moreworkmen. The Act provides for payment of gratuity at the rate of 15 dayswages for each completed year of service subject to a maximum of Rs.two lakh. In the case of seasonal establishment, gratuity is payable at therate of seven days wages for each season. The Act does not affect theright of an employee to receive better terms of gratuity under any awardor agreement or contract with the employer. Central Government is theAppropriate Government in relation to an establishment belonging to theor under the control of the Central Government or having branches inmore than states or an establishment of a factory belonging to or underthe control of Central Government or of a major port, oilfield railway ormine.  INDUSTRIAL DISPUTE ACT. 1947 The Industrial Disputes Act. 1947 is an act to make provision for the investigation and settlement of industrial disputes and for certain other purposes. It provides for a special machinery of conciliation officers, work committees, court of inquiry, Labour courts, Industrial Tribunals and national Tribunals, defining their powers, functions and duties and also the procedure to be followed by them. It also enumerates the contingencies when a strike or lock-out can be lawfully resorted to, when they can be declared illegal orProjectsformba.blogspot.com
  43. 43. Projectsformba.blogspot.com unlawful, conditions for laying off, retrenching discharging or dismissing a workman, circumstances under which an industrial can be closed down and several other matters related to industrial employees and employers. The central government is appropriate government for the industries which are carried on:(a) By or under the authority of Central Govt.(b) By a railway company:(c) A controlled industry, specified for this purpose :(d) In relation to certain industries enumerated in sec 2(a) of the act Employees State Insurance Scheme: This scheme offers both direct and indirect medical care. The direct method is called the “service system” by which the ESI corporation provides medical care, either through its own Employee’s State Insurance hospital or through reservation of beds in State Government hospital. The indirect method is known as the “Panel system”, under which medical care is provided through private doctors selected by the State government with the approval of the ESI Corporation. The benefits provided under the act are: • Sickness benefit • Maternity benefit • Disablement benefit • Dependents benefit • Funeral benefit and • Medical benefit All the workers, earning less than 3000 per month and employed in power run factories employing 20 or more persons are covered by this scheme. However, it does not cover workers employed by seasonal factories. An insured person under ESI Scheme is not eligible for similar benefits under the Workmen’s Compensation Act and State Acts relating to Maternity benefitsProjectsformba.blogspot.com
  44. 44. Projectsformba.blogspot.com  Employees Provident Fund Act, 1952: The act applies to, mines other than coal mines and commercial establishment employing more than 20 workers. All the workers earning not exceeding Rs 3,500 are covered under this Act. All accumulations of the Provident Fund are invested in Central and State Government securities and other government approved securities. Interest on these securities accrues to the worker’s account. The Provident Fund Act ,1952 was amended following with the Employee’s Family Pension Scheme has been enforced from March 1,1971, with a view to protecting the family of the workers after his death.  Plantation Labour Act, 1951. Every tea, coffee, rubber and cinchona plantation, measuring 10,117 hectares or more and employing atleast 30 workers, is covered by this act, which has since been extended to the cardamom plantation in Tamil Nadu and Kerala. The Act lays great emphasis on the medical care of the workers and their families. According to the rule prescribed by the State Government, workers covered under this act are eligible for cash benefit in sickness and maternity.  Employer’s Family Pension Scheme, 1971: This scheme was notified by the government of India under the Employee’s Provident Fund and Family Pension Act. Here, family pension means a regular monthly amount payable to the person belonging to the family of the member of the Pension Fund Scheme. In the event of his death during the period of reckonable service. The definition of the word, Family covers wife or husband, minor son and unmarried daughter of the member of the Family Pension Fund. .Projectsformba.blogspot.com
  45. 45. Projectsformba.blogspot.comList Of ActsApprentices ActChild Labour (Prohibition and Regulation) ActContract Labour (Regulation & Abolition) ActDangerous Machines (Regulation) ActEmployee State Insurance ActEmployees Provident Fund and Miscellaneous Provisions ActEmployers Liability ActEmployment Exchanges (Compulsory Notification of Vacancies) ActEqual Remuneration ActFactories ActFatal Accidents ActIndustrial Disputes (Banking and Insurance Companies) ActIndustrial Disputes ActIndustrial Employment and Standing Orders ActLabour Laws (Exemption from Furnishing Returns and MaintainingRegisters by Certain Establishments) ActMaternity Benefit ActMines ActMinimum Wages ActMotor Transport Workers ActPayment of Bonus ActProjectsformba.blogspot.com

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