Social secuity and employee walfare

Available ONLINE www.visualsoftindia.com/journal.html
VSRD-IJBMR, Vol. 1 (7), 2011, 397-407
RR EE SS EE AA RR CC HH AA RR TT I II CC L LL EE
Social Security Regarding
Employee or Labour Welfare
1P. Swapna* and 2N. Samuyelu
ABSTRACT
India being a welfare state wedded to the philosophy of socialistic pattern of society, it is imperative to have a
contended workforce, enjoying a reasonable standard of living with adequate facilities and provisions for the
well being of them. The absence of any comprehensive study in the area of welfare and social protection of
workers in the study area of Andhra Pradesh and the growing employment opportunities thrown by the fast
expanding private corporations in this region have encouraged the present study by me.
It is evident for the literature that many efforts have been made to study to the various aspects of welfare and
social security of labour in different wings of Singareni Collieries Company limited. The present study tries to
make a comparison on the provisions and implementation of the overall benefits of the workers in different
wings of the same company and by giving the overall welfare activities of the company. This type of research
has not been done in this area of study. Here it focuses on the social security regarding welfare of employees
rather than profit of the organization.
Keywords : SS: Social Security, ILO: International Labour Organization, SCCL: Singareni Collieries
Company Limited, ICDS: Integrated Child Development Schemes.
1. INTRODUCTION
1.1. Concept of Social Security
"Since Independence (1947) India has extended formal Social Protection Measures such as old age benefits,
insurance, health benefits etc., to the Organized Sector of the Indian Workers."
"Social Security is important for reducing social and economic inequalities and for making direct contributions
to the well being of the poor. Social Security arrangements have long history in India. For example, in Ancient
____________________________
1Research Scholar, 2Professor, 12MBA Department, Acharya Nagarjuna University, Kothagudem, Andhra Pradesh, INDIA.
*Correspondence : swapnaram77@gmail.com

P. Swapna et. al / VSRD International Journal of Business & Management Research Vol. 1 (7), 2011
India, several texts, such as Manusmriti, Sukraniti, Yagnavalkya Smriti, and the Arthasastra, contain detailed
obligations to be followed by kings and the State for the provision of social assistance to the old, sick, widows
and orphans and the blind and disabled.
Social Security is an instrument of social and economic justice as it works for horizontal and vertical
redistribution of incomes in the society.
A citizen who has contributed or is likely to contribute something to his country's welfare should be given
protection against certain hazards. Social Security envisages that the members of a community shall be
protected by collective action against social risks causing undue hardship and privation to individuals whose
private resources can seldom be adequate to meet them. It covers through appropriate organization to certain
risks to which a person is exposed. These risks are such that an individual of small means can't effectively
provide for them by his own ability or foresight alone or even in private combination with his colleagues. All
the five-year plans of the state emphasized the need for social security schemes. At the beginning of every plan
the coverage has been widened and benefit bettered.
2. SOCIAL SECURITY REGARDING EMPLOYEE WELFARE
Social Security manifests the ‘natural desire of communities for protection from life’s problems, from disease
and deprivation …it is the protection which society provides for its members through a series of public
measures- against the economic and social distress that otherwise would be caused by the stoppage, or
substantial reduction, of earnings resulting from sickness, maternity, employment injury, unemployment,
invalidity, old age and death; the provision of medical care; and the provision of subsidies for families with
children’ (ILO, 1998).
The ‘cradle-to-grave’ philosophy envisages social protection to the needy from pre-natal (pre birth and
maternity benefits) to posthumous (death benefits) care.
Workers or employees have two components in their life: social life and work life. Invariably, there is a
reciprocal influence between these two components. Social life enriches work life, while a good social life
reinforces the productive capacity of the workers. A civilized society is expected blend a decent work (ILO
1998) with decent social and family life in this context, the economic and social components of social security
measures need to be carefully integrated. Though there is a broad trend in that direction. The management has
left –out of such measures in certain areas where there is an imbalance of the two components and consequence
stress and strain for the stakeholders. The combination of welfare state, democratic polity and established social
security system pioneered by the government or the employer has influenced the current picture with its
strengths as well as its weaknesses.
ILO Convention no.102, social security (minimum standards), 1952 covers nine branches of social security:
medical care and benefits for sickness, unemployment injury, family size, maternity, invalidity and widowhood.
India has not ratified ILO convention no.102 on social security. However, social security, in its broad sense, is
envisaged by the constitution of India in its directive principles of state policy. India has also enacted several
Page 398 of 407

legislations that provide for some mandatory benefits in respect of certain employments. Such benefits include
medical care for sickness, employment injury, maternity and invalidity, supervisors’ benefits, and welfare funds
or schemes. These are applicable mostly in organized sector employment.
The following provisions of directive principles of state policy lay down the state’s obligation for social
security.
ARTICLE 38: the state should strive to promote the welfare of the people by security and protecting as
effectively as it may a social order in which justice---- social, economic and economic and political --- shall
inform all the institutions of the national life.
3. LITERATURE REVIEW
The directive principles of the state policy in our constitution, refers generally to the promotion of the people. In
its specific application to the working class, securing just and human conditions of work has been highlighted
but what these actually imply cannot be specified in rigid terms for all times.
Welfare facilities and social security schemes are important for the worker. If given in adequate measure, these
improve the conditions of work and also enable a worker to face certain risks in life which he alone can't
provide for. This assurance makes him more satisfied and more efficient.
Social Security, taken in its widest sense means the 'security of the whole society'. However, the term as
commonly used connotes measures for economic security only under government auspicious and such economic
security in underdeveloped countries like India does not extend to all members of the society but only to some
restricted classes of people like industrial labour, government workers etc. Social Security measures involve
a) Providing cash payment to persons and families of a specified class whose income from earnings has
Page 399 of 407
been reduced drastically or ceased temporarily or permanently.
b) Providing medical benefits and medical care to person in specified class in the event of sickness,
maternity etc. and
c) Providing each payment in the form of stipends, pension etc. to the dependents of a worker in the event
of his death.
The necessity and importance of the welfare work in India is greatest as the Indian Industrial Workers are to be
weaned away from their rural links. Indian workers have regarded industrial employment as a "necessary evil"
and they have been to escape from it.
The Government has undertaken various steps in the post independence period to provide social security to
employees and workers. However, we have only made a start so far and much need to be done as these measures
has to take into account the problems. Insufficient coverage, no employment insurance, dangers and exit policy,
overlapping of schemes, and inadequate facilities in relation to the needs of beneficiaries.
Social Security was also one of the topics discussed at the Fifth Asian Trade Union seminar held at New Delhi

for 30th November, to 3rd December, 1977. It made several recommendations, of which some of the important
ones related to (a) provision of basic needs, essential services, medical care and legal aid; (b) work guarantee as
an integral part of social security; (c) adequate and effective measures for rural social security; (d) rate of
interest paid to the provident fund beneficiaries to be well comparable with the bank rates (e) long term social
security benefits to be linked with the cost of living index; (f) creation of voluntary alternative investment
opportunities for the provident fund money into suitable government controlled or guaranteed schemes yielding
higher return. (g) Income redistribution effect of social security programmes; (h) integration of various social
security institutions.
Joshi felt that "Labour Welfare Covers all the efforts which employers make for the benefit of their employees
over and above the minimum standard of working conditions fixed by the Factories Act, and over and above the
provisions of social legislation providing against accident, old age, unemployment and sickness.
According to a paper submitted in International Conference of Social Work, services rendered to workers and
their families by an industrial enterprise with the purpose of raising their morale, social and cultural levels and
to adjust to a better life.
The concept of social justice itself changes with the social, economic and political changes in society.
Industrialization in India as in any other countries implies the growth of a factory system with employers and
wage earners in varying circumstances and with varying characteristics yet having some common features and it
is the common features that are of interest.
In the words of Dr. B.R. Ambedkar, “Bread a house, adequate clothing, education, good health and above all the
right to work with dignity on the world's boulevards.
The International Social Security Association has rightly given the slogan - "No peace without social justice and
no justice without social security".
Protective social security measures are usually divided into two categories: (i) Social Insurance (ii) Social
Assistance Social Insurance Schemes are usually financed through contribution by the employers, employees
and the state. Social assistance schemes seek to provide assistance to the poor and needy persons.
Social Assistance may be defined as "a device to provide benefit for persons of small means granted as of right
and in amounts sufficient to meet a minimum standard of life and financed from taxation or general revenues.
Social Insurance, on the other hand, may be defined as "a device to provide benefit for persons of small earnings
granted as of right in amount which combine the contributive effort of the insured with subsidies from the
employee and the State". Sir William Beveridge defines Social Insurance as "a plan of giving in return for
contributions, benefits upon the subsistence level, as of right and without the means test to that individual may
build upon it freely".
If we analyze these definitions, the following common characteristics of the two will be revealed:
Both the schemes viz, Social Assistance and Social Insurance are intended for persons of small means and
Page 400 of 407

meager resources. The idea is to cover poor sections of people in the society who can't effectively provide
against risks and contingencies to which they are exposed.
Both the schemes grant pensions and the benefits according to the arithmetical rules as of right enforceable by
quasi-judicial process. With the benefits and pensions the idea of charity is not associated to avoid the
humiliation complex. Benefits can be claimed as a matter of right.
The state is to be organizeds to ensure the well being of its citizens and to use their resources to that end i.e., the
welfare of the workers. It is the assumption by the community acting through the state of the responsibility for
providing the means whereby all its members can enjoy minimum standards of health, economic security and
civilized living and can share according to their capacity in its social and cultural heritage.
Constitution of India envisages economic justice as a close companion of social justice is embedded in the
preamble, Part-III & IV of the constitution. The problem of economic justice is virtually related to the concept
of a welfare state which clearly emerged as an ideal government based up on the mutual aid, social welfare,
social justice and re-distribution of income.
(iii) Social Security in India: Article 43 of the Constitution speaks of state's responsibility to provide social
security to the citizens of this country. In India, we find all the above strategies in practice. For the purpose of
discussion, we may categorize the social security schemes available in India as
Page 401 of 407
 Preventive Schemes,
 Promotional Schemes and Protective Schemes.
(a) Preventive Schemes: Preventive Schemes are the Schemes aimed at risk prevention. In the strategy of social
management of risks, preventive approach tries to prevent poverty and helps people under below poverty line to
come above poverty line. Preventive health care, vaccinations against diseases forms part of he preventive
strategies. Majority of the schemes are of social assistance in nature.
(b) Promotional Schemes : Promotional social security schemes are mainly of Means tested Social Assistance
type, where to guarantee minimum standards of living to vulnerable groups of population, the Governments at
the State and Center draft schemes financed from the general revenues of the Government. These are the
strategies of risk mitigation. This guarantee:
Food and Nutritional Security by ensuring per capita availability of food grains, access to food, developing
agriculture sector, targeted Public Distribution system etc.
Employment security by ensuring employment by generating employment, redeploying the surplus manpower in
any sector, creating rural employment opportunities, encourages technological up gradation.
Health Security by ensuring availability of medical facilities, maintaining standards of sanitation and drinking
water, eradication and control of communicable diseases, timely vaccination of children and child bearing
women, health insurance, old age homes and social insurance for the elderly.

Education Security by ensuring opening of schools, Encouraging children to attend classes, making education
compulsory up to certain age, opening adult learning centers or formulating schemes like Sakshara, running
schemes like mid day meals etc.
Women Security: by empowering women, encouraging women literacy, banning dowry, designing widow
pension schemes.
Assistance to the disabled by undertaking programmes to promote health and education among the disabled
persons, providing rehabilitation services and reservations in services so as to enable them to participate in
social and economic activity.
All the above form part of promotional social security schemes where State Governments are more involved
than the Central Government. Examples of schemes in the promotional social security area include:
Page 402 of 407
 Food for work
 Jawahar Rojgar Yojana
 Antyodaya
 Rural Landless Labourers Employment Guarantee Schemes
 Programmes of Integrated Rural Development Project
 Drought prone area Programmes
 Sakshara
 Integrated Child Development Scheme (ICDS)
 Public Distribution System
 Reservations for the disabled in services
 Special educational institutions for the disabled persons
4. RESEARCH AND METHODOLOGY
RESEARCH: Research in common parlance refers to “a search for knowledge”. One can also define research
as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of
scientific investigation. The advanced learner’s dictionary of current English lays down the meaning of research
as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge”.
Redman and Mory define research as a “systematized effort to gain new knowledge”.
RESEARCH METHODOLOGY: It is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the various steps that are

generally adopted by a researcher in studying his research problem along with the logic behind them. It is
necessary for the researcher to know not only the research methods or techniques but also the methodology.
Researchers not only need to know how to develop certain indices or tests, how to calculate the mean, the mode,
the median, or chi-square, how to apply particular research techniques, but they also need to know which of
these methods or techniques, are relevant and which are not, and what would they mean and indicate and why.
All this means that it is necessary for the researcher to design his methodology for his problem as the same may
differ from problem to problem.
5. MATERIALS AND METHODS
Study Area: The Singareni Collieries Company Limited- kothagudem -head quarter of khammam district,
Andhra Pradesh state was chosen for the study purpose. The Singareni Collieries Company Limited is the oldest
public sector company in India, carrying the coal mining activities in the Godavari valley of Andhra Pradesh
and catering to the needs of consumers in southern India by providing the statutory and no statutory benefits to
their employees.
Sample Design and Sample Size: Random sample procedure was followed to select sample respondents. From
the company, looking into the convenience, the total number of respondents was 400 selected from 5 different
WINGS.
Data Collection Procedure: Data were collected from the above respondents by using questionnaire
specifically designed for the purpose.
Processing of Data: Processing of data can be done in different ways, they are explained as follows:
(1) Editing (2) Coding (3) Classification (4) Tabulation.
Analytical Technique: Tabulated data were analyzed with the help of arithmetic mean and converting into
simple percentages to know the extent of welfare provided by the company. Based on the literature survey and
experts opinion, variables which are supposed to influence the welfare were selected. In order to evaluate the
degree of association between different WINGS in the company, the chi-square (X2) TEST was employed.
2 = (f0-fe) 2/fe
Page 403 of 407
Where f0 = Observed Frequency; fe = Expected Frequency.
If the observed frequencies and the expected frequencies are identical, the computed chi square value will be
zero. Therefore the possible value of chi-square ranges upward from zero. The value obtained from the above
procedure was compared with the table value at (r-1) * (c-1) Degree of freedom. Here r and c refer to the
number of rows and columns respectively. If the calculated value is greater than the table value, it would be
inferred that it is significant.

Page 404 of 407
6) DATA ANALYSIS AND INTERPRETATION
(1) Are you satisfied with social security insurance schemes in SCCL?
S
No. Opinion
SCCL No. of
Respo
ndent
s
A.M
%
Chi-Square
&
P Value
Hospital Educatio
n
Openc
ast
Undermi
ne
Personn
el
1)
SATISFIED 64
(82.16)
52
(52.14)
52
(47.4)
118
(110.6)
30
(23.7)
316
0.79
79
2)
M.SATISFIED 40
(19.76)
14
(12.54)
8
(11.4)
14
(26.6)
0
(5.7)
76
0.19
19 55.0716
&
3)
H.SATISFIED
0
(0)
0
(0)
0
(0)
0
(0)
0
(0)
0
0
0 0.0001
4)
DISSATISFIED
0
(2.08)
0
(1.32)
0
(1.2)
8
(2.8)
0
(0.6)
8
0.02
2
Total 104 66 60 140 30 400 1 100
Percentage drawn from different wings:
2
Number of respondents drawn from different wings
79
19
0
1
2
3
4
70
60
50
40
30
20
10
0
Hospital Education Opencast Undermine Personnel

6. INTERPRETATION
The two tailed p value is less than 0.0001 by conventional criteria, this difference is considered to be extremely
statistically signified.
Hence we conclude that 79% of respondents are satisfied, 19% of respondents are moderately satisfied, 0% of
respondents are highly satisfied and 2% of respondents are dissatisfied.
Page 405 of 407
2) How do you feel about the facilities provided under area terminal benefits Cells?
S
No. Opinion
SCCL
No. of
Respondents
A.M
%
Chi-
Square
&
P
Value
1) SATISFIED 26
(40.56)
18
(25.74)
18
(23.4)
78
(4.9)
16
(1.05)
156
0.39
39
64.875
&
0.0001
2) M.SATISFIED 26
(33.28)
30
(21.12)
24
(19.2)
38
(44.8)
10
(9.6)
128
0.32
32
3) H.SATISFIED
38
(20.8)
16
(13.2)
12
(12)
10
(28)
4
(6)
80
0.2
20
4) DISSATISFIED
14
(9.36)
2
(5.94)
6
(5.4)
14
(12.6)
0
(2.7) 36 0.09 9
Total 104 66 60 140 30 400 1 100
Percentage drawn from different wings:
Number of respondents drawn from different wings:
39
32
20
9
1
2
3
4
80
70
60
50
40
30
20
10
0

7. INTERPRETATION
The two tailed p value is less than 0.0001 by conventional criteria, this difference is considered to be extremely
statistically signified.
From the above table it is observed that 39% of respondents are satisfied, 32% of respondents are moderately
satisfied, 20% of respondents are highly satisfied and 9% of respondents are dissatisfied.
8. CONCLUSION
The prime aim of our nation is to achieve maximum possible economic development so as to achieve higher
standard of living for workers in the country. The economic conditions of workers are determined by the wages
that they are able to earn and the economic progress is bound up with industrial peace. One of the basic
prerequisites to attain the necessary success in the field of rapid industrialization is the development of
congenial atmosphere of Co-operation between workers and employers. The need for greater production can be
met only through stable labour force and by recognizing workers as respectable partners in the industrial system.
In industrial economy, both employees and employers have to toil as a team to attain their goals laid down.
In spite of all the modern technology and all the systems of controls coming into widespread use, man still
remains the most important factor in production process. If people do not want to work, it is impossible for any
organization to attain its goals. So, in this direction labor welfare and social security is one of major aspect of
national programmes towards improving the production of the industry, condition of the worker and income of
the society.
9. FUTURE SCOPE
The study has made an effort to appraise the efficiency of the welfare measures and their adequacy in the SCCL
and suggestions were made for betterment. Also, the available social security schemes and their adequacy have
been examined and suggestions to improve them have been given.
The workers’ discontentment manifested through different forms has been analyzed and evaluated to understand
the union-management relations. The evolution, growth and functioning of the trade unions have been studied to
locate the drawbacks among them. Suggestions have been offered for strengthening and reforming the trade
unions keeping in view the opinions of the workers. A critical analysis of the role and scope of the personnel
department has also been attempted. Suggestions have been offered to improve the quality and content of
personnel as well as union management relations.
10. REFERENCES
[1] Brandeis, L.D. Business – A profession, 1933, PP3-5
[2] Bhagoliwala, T.N. Economics of Labour and Industrial Relations (Sahitya Bhavan, Agra 1981) P.59
[3] Charubala Annunico, “The Business of caring “outlook, `1999, June 21, PP 46& 47
[4] Drucker Peter F, “The concept of the Corporation” “Business and Society review, Antumn, 1972, P-16.
[5] Eells, Richard and Clarance Walton, conceptual foundations of business, Richard D.Irwin, Inc., Home
Page 406 of 407
Wood, Illinois, 1961 PP 457-458

[6] Indian Conference of social work, “Industrialisation and social work” Proceedings of the international
Page 407 of 407
conference of social work, Bombay.
[7] Ibid P.5
[8] Indian law institute, Labour law and labour relations P.6
[9] Joshi N.M. “Trade Union Movement in India”., Bombay, 1927, P.26
[10] Keith Devis, “can business afford to ignore social responsibilities?” “California Management review”
spring 1960. P-70
[11] L.M.Prasad, “Principles and practice of Management” P-105
[12] Recommendations of Asian trade unions seminar, New Deligi, 30th Nov. to 3rd Dec., 1977.
[13] “Satya Saran Chatterjee, “Modern business”, 1961 “Satya Saran Chatterjee, “Modern business” 1961
[14] Sharma G.S., Economics Justice and the Indian Constitution some implications of the bonus case, 1966 P.
457.
[15] T.H. Marshall, Citizenship and social class, London, Heinemenn Educational Books, 1963, P.11
[16] Venkata Subba Rao, G.C., Commentaries on the Indian constitution, Part IV PP. 171 to 172 “Article 39”
[17] Vaid K.N. “Labour Welfare in India” 1970 P.22


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