CHAPTER 1

Meaning and definition of labour welfare

Labour welfare means anything done for the comfort and improvement, intellectual and social, of the employees over and above the wages paid which is not a necessity of the Industry.

According to Industrial Labour Organisation (ILO) Labour welfare may be understood and including such services facilities and amenities which may be established in vicinity of undertaking to perform their work in healthy and congenial environment and to avail of facilities which improve their health and bring high morale.

Meaning and definition of social security

Social security is a concept enshrined in Article 22 of the Universal Declaration of Human Rights which states that Everyone, as a member of society, has the right to social security and is entitled to

realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality. In simple term, this means that the signatories agree that society in which a person lives should help them to develop and to make the most of all the advantages (culture, work, social welfare) which are offered to them in the country. Social security may also refer to the action programs of government intended to promote the welfare of the population through assistance measures guaranteeing access to sufficient resources for food and shelter and to promote health and wellbeing for the population at large and potentially vulnerable segments such as children, the elderly, the sick and the unemployed. Services providing social security are often called social services.

Social security and labour welfare in india

1. Introduction One of the major concerns of the Government has been the improvement of labour welfare with increasing productivity and provision of a reasonable level of social security. The situation of surplus labour, coupled with employment of most of the workers in the unorganized segments of the economy, has given rise to unhealthy social practises like bonded labour, child labour and adverse working conditions faced by the migrant labour. Within the available resources, a limited effort at handling these problems has not been feasible. 2. Minimum Wage Act The wages of the workers in the unorganized sector of employment are primarily fixed under the Minimum Wages Act, 1948. Under the Act both Central and State Governments are appropriate governments

for fixation/ revision of minimum rates of wages in respect of the scheduled employments falling under their respective jurisdiction. 3. Payments of Wagers Act, 1936 This Act was enacted to regulate the payment of wages to certain classes of person (whose monthly wage is below Rs. 1600) employed in industry with the object to provide for a speedy and effective remedy to the employees arising out of illegal deductions or unjustified delay made in paying the wages to them. 4. Wage Board for Newspaper Employees The Working Journalists and Other Newspaper Employees

(Conditions of Service) and Miscellaneous Provisions Act, 1955 regulates conditions of service of working journalists and other persons employed in newspaper establishments. 5. Contract Labour (regulation and Abolition Act, 1970, and bonus Act, 1965 This Act was enacted to regulate the employment of contract labour in certain establishments and for matters connected therewith. The Act provides for the Constitution of Central and State Advisory Boards to advise the concerned governments on matters arising out of the administration of the Act. This Act provides for payment of bonus to employees as defined under the Act. Bonded Labour System (Abolition) Act, 1976

This act envisages release of all bonded labourers, liquidation of their debts and their rehabilitation. Under this Act, identification and release of bonded labourers and rehabilitation of freed bonded labourers is the direct responsibility of the State Government concerned. 6. Industrial Relations Trade Union Act, 1926 This Act provides for registration of trade unions. Any seven or more workers may, by subscribing their names to the rules of a trade union and otherwise complying with the provisions of the Act with respect to registration, apply for registration of the trade union under the Act. Code of Discipline The Code of Discipline was evolved at the Indian Labour Conference in 1958 requiring employers and workers to utilize the existing machinery for the settlement of disputes. Industrial Disputes Act, 1947 The layoffs, retrenchments and closures are regulated under the provisions of the Industrial Disputes Act, 1947. The Government has taken steps to further regulate lay offs, retrenchments and closures through the Industrial Disputes (Amendment) Acts of 1982 and 1984. 7. Social Security

Workmen's Compensation Act, 1923 This Act provides for payment of compensation to workmen and their dependents in case of injury and accident (including certain occupational disease) arising out of and in the course of employment and resulting in disablement or death. Maternity Benefit Act, 1961 It regulates employment of women in certain establishments for a certain period before and after childbirth and provides for maternity and other benefits. The Act applies to mines, factories, circus, industry, plantation, shops and establishments employing ten or more persons, except employees covered under the Employees State Insurance Act, 1948. Payment of Gratuity Act, 1972 It is applicable to factories, mines, oil fields, plantations, ports, railways, motor transport undertakings, companies, shops and other establishments. The Act provides for the payment of gratuity at the rate of 15 days' wages for each completed year of service subject to a maximum of Rs. 3,50,000. Employees State Insurance Act This Act is applicable in the first instance to non- seasonal factories using power and employing 10 or more persons and non-power using factories employing 20 or more persons. It covers employees drawing wages not exceeding Rs. 6,500 with effect from 1 January 1997.

Provident Fund and Miscellaneous Provisions Act, 1952 Under this Act, retirement benefits in the form of provident fund, family pension and deposit linked insurance are available to employees. Employees' Deposit Insurance Scheme, 1976 It was introduced for members of the Employees' Provident Fund and exempted provident funds with effect from 1 August, 1976. Employees Pension Scheme, 1995 Under this scheme pension at the rate of 50% pay is payable to the employees on retirement/superannuation on completion of 33 years' contributory service. A minimum of 10 years' service is required for entitlement to pension. Emigration Act, 1983 This Act regulates immigration of citizens of India for employment in other countries on contractual basis and seeks to safeguard the interest of such workers. Under the provisions of the Act, an employer can recruit any citizen of India for employment in any country or place outside India either through Recruiting Agent competent under the Act to make such recruitment or directly in accordance with a valid permit issued by the Central Government under the Act. 8. Vocational Training

Industrial Training Institutes were set up all over the country to impart skills' in 42 engineering and 18 non- engineering trades to young men and women in the age group of 15-25 years. Advanced Training Institutes (ATls) at Howrah, Mumbai, Kanpur, Ludhiana, and Hyderabad and the Central Training Institute for instructors at Chennai, were established in 1960s to train instructor trainees in the techniques of imparting skills, who in turn train and make available skilled manpower for industry. Advanced Vocational Training Scheme (AVTS) was launched in October 1977 for training of highly skilled workers and technicians in a variety of advanced and sophisticated skills not available for other vocational training programmes. 9. Womens Vocatonal Training Programme In 1996, National Council for Vocational Training

recommended that in general ITIs, up to 25 per cent of the sanctioned seats might be reserved for women candidates. Under the vocational training programme managed directly by the Ministry of Labour DGE&T, a National Vocational Training Institute at Noida as an apex centre and ten Regional Vocational Training Institutes at Mumbai, Bangalore, Thiruvananthapuram, Calcutta, Hissar, Tura, Allahabad, Indore, Vadodara and Jaipur have been set up with an intake capacity of .one thousand nine hundred and twenty in basic, advanced and instructional skills.

Central Instructional Media Institute (CIMI) which was granted autonomy from 1 April, 1999, has been set up in Chennai to make available instructional materials in the form of Media Packages (MPs) for the use of trainers and trainees in the ITIs and apprentices under the Apprenticeship Training Scheme. The Apprentices Act, 1961, makes it mandatory for employers in specified industries to engage apprentices for undergoing

Apprenticeship Training, which varies from one year to four years. 10. Working Conditions and Welfare To provide housing, medical, recreational, educational family welfare and other welfare facilities, welfare funds have been created like: (a) Mica Mines Labour Welfare Fund Act, 1946 (b) Limestone and Dolomite Mines Labour Welfare Fund Act, 1972 (c) Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines, Labour Welfare Fund Act, 1976. (d) Beedi Workers' Welfare Fund Act, 1976 (e) Cine-Workers' Welfare Fund Act, 1981. 11. National Employment Services It has a network of nine hundred and forty five employment exchanges/University Employment Information and Guidance

Bureaux (UEIGBX) at the end of February 1999. It assists all

employment seekers through placement against job notified by employers. Under the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959, it is obligatory for all establishments in the public sector and such of those non- agricultural establishments in the private sector which employ twenty five or more workers to notify their vacancies (with certain exemptions), to employment exchanges and supply periodic information as prescribed in the Act and in the rules thereunder. There are thirty seven special exchanges for the physically handicapped. 12. Workers Safety The Factories Act 1948 is the principal legislation for regulating various aspects relating to safety, health and welfare of workers employed in factories. This Act is a Central enactment which aims at protecting workers employed in factories from industrial and occupational hazards. The Directorate General, Factory Advice Service and Labour Institute (DGFASLI), Mumbai, an attached office of the Ministry of Labour, renders technical advice to the States/UTs in regard to administration and enforcement of the Factories Act. Provisions relating to safety, health and welfare of workers employed in docks are contained in the Dock Workers (Safety, Health, and Welfare) Act, 1986 and rules and regulations framed thereunder. The Act came into force on 15 April, 1987.

The National Safety Council was set up in 1966 to promote safety consciousness workers to prevent accidents,minimise dangers and mitigate human sufferings. National Safety Day is celebrated on 4 March, every year to mark the foundation day of the National Safety Council. Prime Minister's Shram Awards (Shram Ratna Rs. 2 lakh, Shram Bhushan Rs. 1 lakh, Sharm Vir Rs. 60,000 and Shram Shri/Devi Rs. 40000) are given to workmen of the departmental undertakings and the public sector undertakings of the Central Government and State Governments in recognition of their outstanding contribution to production and for showing exemplary zeal in the discharge of their duties. Shram Vir awards which are now known as Vishwakarma Puruskar were instituted in 1965. The Government instituted in 1965 the National Safety Awards. The National Safety Awards for mines were instituted in 1983, under the purview of the Mines Act, 1952. 13. Five-Year Plan and Labour Welfare Five-Year Plan will aim at reducing the number of laws which determine relations between workers and employers, with the objective that a much smaller number of laws can reach the entire work force. Second National Commission on Labour

The First National Commission on Labour was constituted on 24th December 1966 and it submitted its report on August 1969. Different far-reaching changes have taken place. The reform measures of 1991 have brought about radical transformations in the domestic industrial scenario and the labour market. Accordingly, the Government decided to set up the Second National Commission on Labour on 24th December 1998, for suggesting appropriate changes in labour legislation/policy. The resolution for setting up the Commission was issued on 15th October, 1999. The Second- National Commission is headed by Chairman and two full- time Members, including Member Secretary. There are seven part time Members representing trade unions, industry, women-expert etc. The Commission is required to give its final report within twenty four months from the date of its constitution.

CHAPTER 2 INTRODUCTION TO MIS ICT LTD

Management Information systems Company Ltd (MIS) is a conglomerate and one of the foremost Nigerian ICT, Chemical Analysis, Test and Measurement Equipment, Medical

Equipment, B2B, Be-spoke and Portal Design, Systems Integration companies with over two decade track record.

A leading integrator of competitive, innovative business solutions based on Information and Communications

Technology (ICT), MIS has offices in major locations in Nigeria. The company employs over 100 highly skilled employees.

Management signaled a clear commitment to transformation when the company created two subsidiaries with specialization in their core areas of operation to provide our customers with specialized service in their niche segment. Thus early in 2007, MIS group created the following subsidiaries; MIS Software Nigeria Limited Synapse Technologies Limited

In terms of human resources and skills, we have over 45 technical staff most of whom are highly qualified and experienced Engineers handling Hardware, Software, Network implementation, installation, maintenance, Systems Integration and Consulting as well as corporate and end-user training services. Over 80% of our Engineers have one recognized professional certification or the other.

In order to deliver a world class service, MIS nurtures strong relationships with many of the world's leading ICT companies including HP, Agilent, IBM, BICC, Microsoft, Cisco Systems, AutoDesk, and Netsupport.

MIS Co. Limited became Hewlett Packard Authorized Distributor in 1985 covering from the basic Handheld to the most sophisticated and powerful Servers in HP range. The relationship also included HP's Authorization for sales, installation, and maintenance of Medical Equipment, Test & Measurement Instruments, and Chemical Analysis products making MIS Co. Limited the Sole Full Function HP Partner in Nigeria at the time.

In September 1997, MIS Company Limited was appointed IBM Authorized Business Partner for her PCs, RS/6000 Servers and Workstations, Networking solutions, Mass storage solutions, Automatic Teller Machines, and electronic payment

solutions etc.

In the same year MIS Co. Limited was also authorized as the BICC Installer and Support Centre for Millennium Structured Cabling Scheme based on our installation expertise and volume of business generated.

MIS in 1998 was appointed Microsoft Authorized Senior Partner and in less than one year became Microsoft Certified Solution Provider with a plethora of over 15 Microsoft Certified Systems Engineers.

MIS has been appointed the sole NetSupport Partner in Nigeria and currently covers all NetSupport Software which includes, NetSupport DNA, NetSupport Manager, NetSupport School and NetSupport Helpdesk.

MIS was invited by Autodesk in 2005 to be a Value Added partner for its AutoCAD products and services. Within 6 months, MIS had the biggest Autodesk order ever in Nigeria thereby setting the pace. Autodesk has since become one of our favorite portfolios where we offer presales advice and after sales support to our numerous CAD customers.

Our Cisco partnership has been weak despite our strong commitment both in terms of human development and sales.

Cisco

partnership

is

one

of

our

focus

this

year.

MIS Software Nigeria Limited has developed a premium Nigerian Accounting Package known as the ExpressBook. This product was developed to provide our old and new customers with the best accounting package Nigerianized and affordable.

In our on going quest to deliver innovative solutions that add real business value to our clients, MIS combines our own expertise, tools, resources and vertical sector knowledge with that of our partners. The group believes that innovation will shape the sustainability of the 21st century enterprise and an innovation program is a key element of the company's internal business improvement strategy.

Currently, we have over 30 (Thirty) high net-worth customers in the Oil & Gas, Service, Hospitality, Manufacturing, Government, Telecom (PTT), Power Generation &

Distribution, and Banking/Financial sectors that we are servicing in Hardware and Software supply, installation, and services, LAN and WAN design, implementation, and support as well as training, IT out-sourcing, help-desk solution, and overall IT advisory services.

OBJECTIVES
provide customized products and services of quality and value that satisfy their requirements. Our business is focused on customers and a commitment to quality. Our core values are integrity, innovation, flexibility and high-level achievement through teamwork.

reward

staff

that

through

exceptional

effort

and

attitudecontribute to the success of the company.

individual freedom in attaining well-defined objectives.

company growth and achieve company objectives. Profit is the responsibility of all staff within the company.

:: Our differentiation

The difference between MIS and its competitors is twofold. Firstly, in the value-add that it provides, and secondly services will make up a large portion of the company's revenue. The traditional Information Technology business derives zero revenue from services and provides little or no value-add in terms of providing a solution to the customer. They tend to rely more on demand created by the vendors for commodity type

products and then merely fulfil the logistics function of stocking and delivery. MIS will focus on value-add and services encompassing pre and post sales activities.

:: Value-add and Services

"Value-add" and "Services" at MIS are not merely buzzwords! MIS will act as the "One-Stop-Shop" for pre sales, sales, post sales support and services to the Customer. Our primarily goal is to be "THE TRUSTED ADVISOR" to the customer.

MIS offers a comprehensive range of services to the Reseller and thereby enabling the Reseller to increase their revenue streams. MIS services encompass a full range of product and service offerings, ranging from business consulting, system development, decision support systems and end-user support. For those services that MIS is not able to satisfy in-house, our partners' resources are then called in giving the customer a truly one-stop-shopping

Labor 1. 2. To To

welfare provide make

has better the life

the and

following health happy to

objectives: the and workers satisfied

workers

3. To relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers.

The basic features of labor welfare measures are as follows:

1. Labor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status.

2. Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining

3. Labor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time.

4. Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency.

5. The purpose of labor welfare is to bring about the development

of the whole personality of the workers to make a better workforce. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living.

The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus promote a healthy work environment Facilities like housing schemes, medical benefits, and education and recreation facilities for workers families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation. Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies.

Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can

be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory schemes differ from organization to organization and from industry to industry.

STATUTORY WELFARE SCHEMES The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water should be provided.

2. Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.

4. Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.

6. Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.

9. Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc.

NON STATUTORY SCHEMES Many non statutory welfare schemes may include the following schemes:

1. Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-up

2. Flexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needs

3. Employee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.

4. Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.

5. Maternity & Adoption Leave Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.

6. Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy.

7. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization.

Basic

Principles

of

successful

Labor

Welfare

Programs:
1. Workers should always be paid their expected salaries. Labour welfare should not be replaced by inadequate income or health benefits. Rather labour welfare is a sum of adequate income, benefits and related entities. 2. A nurturing and responsible environment must be created by the industrial sector. 3. The industry should aim toward increasing the overall efficiency of its workforce. Efficiency is the key to a successful business. Efficiency can be increased by the industry by ensuring that its workers are provided with proper housing, education, training, and a well balanced diet. 4. Industrial labour must be treated like human beings with wants and needs. Labour in an industry must be respected as people, and not used as tools. 5. Everyone in the industry should equally be aware of and accept the concept of labour welfare. 6. Welfare should not only encompass a person's work life, but also his/her life at home, educational institution, and community. 7. Individuals involved in the creation and implementation of welfare programs must use democratic values to make their

decisions. The voice of the majority must be considered. Furthermore, workers must be involved in making decisions on welfare management. 8. Everyone involved in welfare management must accept the full responsibility and implement it. Labour unions, together must be involved with the senior management, must take up the responsibility of labour welfare. In addition, various committees must be assigned smaller tasks and must be held responsible for 9. Labor welfare programmes must be constantly reviewed and scrutinized. All the parties involved must submit to the periodic reviews and offer their honest opinions. 10. Welfare schemes must be carried out at the correct time. Timeliness is extremely important. 11. Welfare schemes must be aimed at simple-minded individuals. All individuals receiving welfare must be comfortable with the scheme and must be able to help themselves if need arises.

LAWS

RELATING

TO

LABOUR

WELFARE
Labour welfare refers to all such services,amenities and facilities to the employees that improves their working conditions as well as standard of living. The term labour welfare bears a different interpretation from country to country and from time to time, and even in the same country, according to its value system, social institution, degree of industrialisation and general level of social and economic development. Generally, the labour welfare services are divided into two groups:

Welfare within the precincts of an establishment - It includes medical aid, creches, canteens, supply of clean drinking water, health services, uniforms and protective clothing, rest shelters, etc. It is the employer's responsibility to provide these facilities to his/ her employees and several legislations have been enacted to set certain minimum standards for provision of these facilities.

Welfare outside the establishment - It includes social insurance measures like gratuity,pension fund, provident fund,etc; educational facilities; housing facilities; recreational facilities; workers' cooperatives; vocational training, etc.

In order to extend a measure of social assistance to workers in the

unorganised sector, the concept of 'Labour Welfare Fund' was evolved. Accordingly, five welfare funds have been set up under the Ministry of Labour and Employment to provide housing, medical care, educational and recreational facilities to workers employed in beedi industry, certain non-coal mines and cine workers. These funds are financed out of the proceeds of cess levied under respective Cess/Fund Acts. The various legislation so enacted include:

The Mica Mines Labour Welfare Fund Act, 1946 - was enacted to provide for constitution of a fund for financing the activities which promote welfare of labour employed in the mica mining industry.

The Limestone and Dolomite Mines Labour Welfare Fund Act, 1972 - was enacted to provide for the levy and collection of a cess on limestone and dolomite for financing the activities which promote the welfare of persons employed in the limestone and dolomite mines.

The Iron Ore Mines, Manganese Ore Mines & Chrome Ore Mines Labour Welfare Fund Act, 1976- was enacted to provide for financing the activities which promote the welfare of persons employed in the iron ore mines, manganese ore mines and chrome ore mines.

The Beedi Workers Welfare Fund Act, 1976 - was enacted to provide for financing the measures which promote the welfare of persons engaged in beedi establishments.; and

The Cine Workers Welfare Fund Act, 1981- was enacted to provide for financing the activities which promote the welfare

of certain cine-workers. The above Acts provide that the fund may be applied by the Central Government to meet the expenditure incurred in connection with measures and facilities which are necessary to provide the welfare of the respective workers. The Labour Welfare Organization administers these funds and is headed by a Director General (Labour Welfare) / Joint Secretary. He is assisted by the Welfare Commissioner (Headquarters) of Director rank, who supervises nine Regional Welfare Commissioners for the purpose of administration of these funds in the States. These offices of regional Commissioners are located at Allahabad, Bangalore, Bhilwara, Bhubaneshwar, Kolkata, Hyderabad, Jabalpur, Karma (Jharkhand) and Nagpur. They are responsible for providing welfare facilities to the workers employed in mica, limestone and dolomite, iron ore, manganese and chrome ore mines and in the beedi and cinema industries. The Chief Adviser (Labour Welfare) supervises the functioning of Assistant Labour Welfare Commissioners (ALWCs), Deputy Labour Welfare Commissioners (DLWCs) and Labour Welfare

Commissioners (LWCs). The ALWCs and DLWCs are posted in Defence and other establishments, such as, CPWD, Security Presses, Mints, Ordnance Factories, Telecom Factories, and Hospitals etc., which are under the control of Central Government. The LWCs are posted at the Head Quarters of these establishments. Together these officers ensure harmonious Industrial Relations in their respective

establishments. They also look after the welfare and redressal of grievances of the workers, administration of Welfare Schemes and advise the managements on various Labour Matters including constitution of bilateral committees, such as, Shop Councils, Works Committees etc. The scheme of Welfare Funds is outside the framework of specific employer and employee relationship, in as much as the resources are raised by the Government on a non-contributory basis and delivery of welfare services affected without linkage to individual workers contribution. To advise the Central Government on matters related to

administration of the above Funds, tripartite Central Advisory Committees have been set up under the respective Welfare Fund Acts. These Committees are headed by Union Labour & Employment Minister.

3.5.1 The productivity of labour is an essential condition for the prosperity of enterprises and the well being of the workers and their families. While the production facilities at workplace and the remuneration are important, attitudes towards work, and the value placed by the society on dignity of labour are equally important in influencing the productivity of labour.

A STUDY ON EMPLOYEE WELFARE MEASURES

The current financial year is expected to add 10 million tones further. Productionf o r t h e f u l l ye a r t o b e e x p e c t e d t o b e r a i s e d b y 1 0 - 1 2 % . Of t h i s, s o u t h i s t o b e t h e maximum gainer with around 10% growth.Th e c e me n t industry wi t n e s s e d a

c o n t r a c t i o n . I n o p e r a t i n g p r o f i t ma r g i n s nationally. In the year ended March97 due to a slowdown in demand growth rate, higher supplies for new commission capacitates and cost increases. Housing sector is yielding aminimum cement demand growth rate, of 6%.T h e R a k e s h M o h a n c o m m i t t e e h a s f o r e c a s t the investment outlays o n infrastructure to rise to

4000-4500billion rupees over the next 5 years. Beyond 2003 2004, these requirements would be in the range of 7500 billion rupees. The industrialgrowth rate too is expected to rise from 8 to 8.5% in the past 10-12%.The per capital consumption is expected to touch 85Kg by 2004 by possibly 13Kgin 2012. If the present growth trend continues. To achieve even 75% of world average oninvestment of 40,000 Crores rupees on plants besides additional investment of same order on adequate infrastructure will be required over 10-15years. The demand by 2012 is placed at 140 million -150 million tons in the wake of the industrial and economic growthunleashed by the liberalization process. The growth prospects of the industry are thusassured.

METHODOLY AND ANALYSIS OF DATA RESEARCH METHODOLY

Research methodology is a way of systematically solving the research problem. Research methodology deals with the research design used and methods used to present the study.

1. R e s e a r c h D e s i g n A research design is a detailed blue print used to guide a research study toward its o b j e c t i v e . T h e p r o c e s s o f d e s i g n i n g a research study involves manyinterrelated

decisions. The most significant decision is the choice of research approach, because it determines how the

information will be obtained. The choice of the research approach depends on the nature of the research that one wants to do.The research design adopted for this study is Descriptive Research. Descriptive method was adopted because it deals with description of the state of affairs as it exists at present.

Sampling Techniques
The next step in research study after collecting data is the sampling process. When adecision is made to use the sample, a number of factors must be taken into consideration.The various steps involved in the sampling process are: Identifying target population. Determining sample frame.

Selecting sampling procedure. Determine sample size. Execute sampling. Obtaining information from respondents. Generating information for decision making.

Tools for data collection There are several ways of colleting the appropriate data. While deciding about the method of data collection to be used for the study, the researcher should keep in mind, that there are 2 types of data.1.Primary data2.Secondary data

Primary data are those which are collected a fresh and for the first time and thus happen to be original in character. Primary data can be collected either through experiment or through survey. The secondary data on the other hand are those which have already been collected by someone else and which have already been passed through the statistical process. In this study, the data was collected from the primary source through interview schedule.

OVERVIEW WHY DO WE NEED SOCIAL SECURITY

Social Security protects not just the subscriber but also his/her entire family by giving benefit packages in financial security and health care. Social Security schemes are designed to guarantee at least longterm sustenance to families when the earning member retires, dies or suffers a disability. Thus the main strength of the Social Security system is that it acts as a facilitator - it helps people to plan their own future through insurance and assistance. The success of Social Security schemes however requires the active support and involvement of employees and employers.

As a worker/employee, you are a source of Social Security protection for yourself and your family. As an employer you are responsible for providing adequate social security coverage to all your workers. Background information on Social Security

India has always had a Joint Family system that took care of the social security needs of all the members provided it had access/ownership of material assets like land. In keeping with its cultural traditions, family members and relatives have always discharged a sense of shared responsibility towards one another. To the extent that the family has resources to draw upon, this is often the best relief for the special needs and care required by the aged and those in poor health. However with increasing migration, urbanization and demographic changes there has been a decrease in large family units. This is where the formal system of social security gains importance. However, information and awareness are the vital factors in widening the

coverage

of

Social

Security

schemes.

Social Security Benefits in India are Need-based i.e. the component of social assistance is more important in the publicly-managed schemes-

In the Indian context, Social Security is a comprehensive approach designed to prevent deprivation, assure the individual of a basic minimum income for himself and his dependents and to protect the individual from any uncertainties. The State bears the primary responsibility for developing appropriate system for providing protection and assistance to its workforce. Social Security is increasingly viewed as an integral part of the development process. It helps to create a more positive attitude to the challenge of globalization and the consequent structural and technological changes.

WORKFORCE IN INDIA

The dimensions and complexities of the problem in India can be better appreciated by taking into consideration the extent of the labour force in the organized and unorganized sectors. The latest NSSO survey of 1999-2000 has brought out the vast dichotomy between these two sectors into sharp focus. While as per the 1991 census, the total workforce was about 314 million and the organized sector accounted for only 27 million out of this workforce, the NSSOs survey of 19992000 has estimated that the workforce may have increased to about 397 million out of which only 28 million were in the organized sector. Thus, it can be concluded from these findings that there has been a

growth of only about one million in the organized sector in comparison the growth of about 55 million in the unorganized sector.

Organized and Unorganized Sectors

The organized sector includes primarily those establishments which are covered by the Factories Act, 1948, the Shops and Commercial Establishments Acts of State Governments, the Industrial

Employment Standing Orders Act, 1946 etc. This sector already has a structure through which social security benefits are extended to workers covered under these legislations.

The unorganized sector on the other hand, is characterized by the lack of labour law coverage, seasonal and temporary nature ofoccupations, high labour mobility, dispersed functioning of operations,

casualization of labour, lack of organizational support, low bargaining power, etc. all of which make it vulnerable to socio-economic hardships. The nature of work in the unorganized sector varies between regions and also between the rural areas and the urban areas, which may include the remote rural areas as well as sometimes the most inhospitable urban concentrations. In the rural areas it comprises of landless agricultural labourers, small and marginal farmers, share croppers, persons engaged in animal husbandry, fishing, horticulture, bee-keeping, toddy tapping, forest workers, rural artisans, etc. where as in the urban areas, it comprises mainly of manual labourers in construction, carpentry, trade, transport, communication etc. and also

includes street vendors, hawkers, head load workers, cobblers, tin smiths, garment makers, etc.

SYNOPSIS OF SOCIAL SECURITY LAWS

The principal social security laws enacted in India are the following: (i) The Employees State Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10 or more employees and provides for comprehensive medical care to the employees and their families as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement. (ii) The Employees Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for the workers in the coal mines and tea plantations. (iii) The Workmens Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or his family in cases of employment related injuries resulting in death or disability. (iv) The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies.

(v) The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages for each year of service to employees who have worked for five years or more in establishments having a minimum of 10 workers.

Separate Provident fund legislation exists for workers employed in Coal Mines and Tea Plantations in the State of Assam and for seamen.

Measures

being

undertaken

at

present

The various Central Acts on Social Security are being examined in the light of the recommendations of the 2nd National Commission on Labour. Relevant amendments are proposed in the EPF and MP Act as also the ESI Act. The consultation process is on with reference to the amendment suggestions received in case of the Maternity Benefit Act and the Workmens Compensation Act. Innovative measures are proposed in the running of the Social Security Schemes of EPFO and ESIC. This includes flexible benefit schemes tailored to the specific requirements of different segments of the population.

SUMMARY

OF

PRESENT

INITIATIVES

IN

WORKING OF EPFO & ESIC

The profiles of the Employees Provident Fund Organization and the

Employees State Insurance Corporation are being changed towards greater accessibility and client satisfaction.

The EPFO extends to the entire country covering over 393824 establishments. At present, over 3.9 crore EPF Members and their families get benefits under the social security schemes administeredby the EPFO. The total corpus of the EPF Scheme 1952, EDLI Scheme, 1976 and Employees Pension Scheme 1995 together amounts to about Rs.1,39,000 crores. Over the years, the volume of service rendered to subscribers as well as investments made, etc. by EPFO have grown manifold. With a view to provide better services to subscribers and employers, the organization has launched the Project RE-

INVENTING EPF, INDIA since June, 2001. The prime objectives of this Project are to provide the subscribers better and efficient services, to help the employers by reducing the cost of compliance and to benefit the organization to register geometric growth in all fields. An important part of this Project is the allotment of the UNIQUE IDENTIFICATION NUMBER-the SOCIAL SECURITY NUMBER to the EPF subscribers, issuing of BUSINESS NUMBERS to the employers and Business Process Re-engineering.

The strategy for implementation has been evolved and the allotment of the Social Security Number has begun with the entire activity being carried out in smaller phases for effective data collection. The criteria considered for the allotment of SSN include the centralized control of Uniqueness, ensuring the least manual intervention during allotment and near 100% Uniqueness accuracy levels. The Social Security Number in a nutshell is a big effort towards solving the problem of providing social protection to migrant labour and to make the data

base of EPFO adaptable to the present trend of high job mobility among workers.

The Employees State Insurance Scheme provides need based social security benefits to insured workers in the organized sector. As in the case of the EPFO, the ESIC has also taken up the daunting task of tailoring different benefit schemes for the needs of different worker groups. The scheme, which was first introduced at two centers in 1952 with an initial coverage of 1.20 lakh workers, today covers 71.59 lakh workers in about 678 centers in the country. It benefits about 310. 54 lakh beneficiaries including the family workers of the insured persons, across the country. The scheme is being gradually to cover new centers and steps are being taken for creation of requisite infrastructure for providing medical care to a larger number of insured persons and their families. While the cash benefits under the scheme are administered through a network ofabout 850 local offices and pay offices, medical care is provided through 141 ESI Hospitals, 43 ESI Annexes, 1451 ESI Dispensaries and 2789 Clinics of Insurance Medical Practitioners. The total number of medical officers under the Scheme is about 10,480.

There have been a number of new developments in the ESIS during the past five years. Each year, it is extended to new areas to cover additional employees. The new employees covered varied from 30,500 in 1998, 89030 in 2000 to 46430 till Jan., 2003. Low paid workers in receipt of daily wages up to Rs. 40/- have been exempted from payment of their share of contribution. Earlier this limit was Rs. 25/-. This measure has benefited about six lakh insured workers across the country. In order to provide relief to insured persons

suffering from chronic and long term diseases, the list of diseases for which Sickness Benefit is available for an extended period up to two years at an enhanced rate of 70% of daily wages, was enlarged by adding four new diseases, keeping in view the international classification of disease profiles and the quantum of malignancies of some diseases which had come to light over the last few years. The contributory conditions for this benefit were also reduced from 183 days to 156 days in the two-year period preceding the diagnosis. The ESIC has made plans to commission Model hospitals in each State. Thirteen States/ UTs have so far agreed, in principle, to hand over one hospital each to the ESIC for setting up of Model hospital. Two Hospitals have been earmarked for being developed for superspeciality medical care in cardiology, i.e., Rohini at Delhi and Chinchwad in Maharashtra.

In order to improve the standard of medical care in the States, the amount reimbursable to the State Governments for running the medical care scheme has been increased to 87.5 % of Rs. 700 per capita with effect from 1.4.2003. The ESIC has formulated action plans for improving medical services under the ESI scheme with focus on modernization of hospitals by upgrading their emergency and diagnostic facilities, development of departments as per disease profiles, waste management, provision of intensive care services, revamping of grievance handling services, continuing education programme, computerization and upgradation of laboratories etc. The action plans have been in operation since 1998. The ESIC has also taken certain new initiatives to promote and popularize Indian Systems of Medicines (ISM) along with Yoga and have drawn up

programmes for establishing these facilities in ESI hospitals and dispensaries in a phased manner.

SOCIAL SECURITY TO THE WORKERS IN THE ORGANIZED SECTOR

Social Security to the workers in the Organized Sector is provided through five Central Acts, namely, the ESI Act, the EPF & MP Act, the Workmens Compensation Act, the Maternity Benefit Act, and the Payment of Gratuity Act. In addition, there are a large number of welfare funds for certain specified segments of workers such as beedi workers, cine workers, construction workers etc.

SOCIAL SECURITY AND ILO/ISSA

Government of India has accepted the international commitment that arises from the ratification of the Covenant of Social, Economic and Cultural Rights of the united nations. This Covenant, inter alia recognises the right of everyone to social security including social insurance. India has also ratified some Conventions of the ILO including Workmens Compensation, (Occupational Diseases) (No. 18 and revised Convention No. 42 of 1934); Equality of Treatment (Accident Compensation) No. 19 of 1925; and Equality of Treatment (Social Security) No. 1 & 8 of 1962.

ILO CONVENTION 102 has however not been ratified by India.

The following nine benefits are laid down in the ILO Convention No.102 of 1952 namely, sickness benefit, medical benefit, maternity benefit, employment injury benefit, old-age benefit, invalidity benefit, survivors benefit, unemployment benefit and family benefit.

SOCIAL SECURITY COVERAGE IN INDIA

Most social security systems in developed countries are linked to wage employment. In India our situation is entirely different from that obtaining in developed countries. The key differences are: i) We do not have an existing universal social security system ii) We do not face the problem of exit rate from the workplace being higher than the replacement rate. Rather on the contrary lack of employment opportunities is the key concern,

iii) 92% of the workforce is in the informal sector which is largely unrecorded and the system of pay roll deduction is difficult to apply. Even today 1/8th of the worlds older people live in India. The overwhelming majority of these depend on transfers from their children. Addressing social security concerns with particular reference to retirement income for workers within the coverage gap has been exercising policy makers across the world. In India the coverage gap i.e. workers who do not have access to any formal scheme for old-age income provisioning constitute about 92% of the estimated workforce of 400 million people. Hence the global debate and evaluation of

options for closing the coverage gap is of special significance to India. The gradual breakdown of the family system has only underscored the urgency to evolve an appropriate policy that would help current participants in the labour force to build up a minimum retirement income for themselves.

4. The coverage gap in India is broadly categorized under the following a) b) c) & d) ___________ Total = 370 million Agricultural Contract, Trade, services, sector = = 180 60 groups: million. million. storage million. million.

construction

Commerce, = =

transport, 100 30

Communications Others

HOWEVER ONE IMPORTANT FACTOR TO BE KEPT IN MIND ON THE COVERAGE ISSUE IS THAT THIS CLASSIFICATION DOES NOT INCLUDE THE VARIOUS SOCIAL SECURITY SCHEMES RUN BY OTHER MINISTRIES FOR DIFFERENT TARGET GROUPS. WE HAVE ALSO NOT INCLUDED

INDIRECT FUNDING THROUGH SUBSIDIES, PDS, SOCIAL ASSISTANCE PROGRAMMES, EXTENSION PROGRAMMES, TAX OF FOOD-FOR-WORK ETC. COVERAGE

CONCESSIONS

Currently, social security policy makers and administrators are engaged in a wide-ranging debate to redress the problems in providing social security in the country. This debate has thrown up various

arguments on the efficacy of publicly managed social security schemes as opposed to privately managed schemes. There is no standard model that can be adopted on this issue. In the Indian context the privately managed schemes can at best be considered as supplementary schemes after the mandatory schemes managed publicly. It is only the publicly managed scheme, which will extend to all the sectors of the workforce. The challenge of closing the coverage gap in social security provisions has to be developed at two levels. The first level involves the re-engineering of the institutional arrangements to increase efficiency. The second level is to create an appropriate legislative and administrative framework for significant increase in the social security coverage especially in the unorganized sector. In India currently only about 35 million out of a workforce of 400 million have access to formal social security in the form of old-age income protection. This includes private sector workers, civil servants, military personnel and employees of State Public Sector Undertakings. Out of these 35 million, 26 million workers are members of the Employees Provident Fund Organization. As such the current publicly managed system in India is more or less entirely anchored by the Employees Provident Fund Organisation. It may be noted that in the last 50 years, the Employees Provident Fund Organisation has been in existence, there has been no instance of any scam or a situation where the Fund has been exposed to speculation and risk. Another important contribution of EPF is now proposed to extend to the critical life benefit of providing shelter. The Shramik Awas Yojana aims at providing a cost effective Housing Scheme

specific for EPF numbers. This involves cooperation between organizations such as HUDCO, Housing Agencies, State

Governments, Employers and EPF Members with the EPFO playing the role of facilitator. The investments are directed into the prescribed securities and portfolios as per the pattern laid down by the Finance Ministry. FUNCTIONS List OF SOCIAL of SECURITY DIVISION subjects

1. Matters concerning framing of social security policy especially for the 3. organized Administration of the sector Employees of Provident workers. Funds & 2. Administration of Employees State Insurance Act, 1948.

Miscellaneous Provisions Act, 1952 and three schemes framed there under, i. ii. 4. 5. 6. The The Employees Provident Fund Scheme, scheme, Act, Act, Act, Employees namely:1952 1995 1923. 1961. 1972

Pension

iii. The Employees Deposit linked Insurance Scheme, 1976. Workmens Maternity Payment of Compensation Benefits Gratuity,

7. Establishment matters relating to the Employees State Insurance Corporation Constitution of ESI Corporation, Standing Committee and Medical Benefit Council of ESIC as also Regional Board. 8. Administrative matters of ESI Corporation including

implementation of ESI Scheme in New Geographical Areas, opening of Sub-Regional Offices of ESIC and up-gradation of Medical

facilities. 9. Annual report, Budget and accounts, and matters connected with auditing of accounts of the ESIC and EPFO

10. Issues relating to International Social Security Association(ISSA) ; and other international Social Security organizations. Processing of ILO Conventions relating to Social Security.

11. All Parliamentary matters and MP/VIP References in relation to the above as also legislative matters/ amendment in respect of the aforesaid Acts.

12. Vigilance matters/ Disciplinary proceedings relating to officers of EPFO and ESIC.

13. Representations from employees of ESIC and EPFO, and general public grievances on ESIC/ EPFO/Social Security measures in India. 14. All matters relating to setting up of EPF Appellate Tribunal Establishment matters and appointment of Staff.

15. Constitution of the Central Board of Trustees and Regional Committees, 16. i. Pattern All of matters investment of relating provident to fund EPFO. : money;

ii. Declaration of rate of interest on the provident fund; iii. Enhancement of the rate of provident fund contributions; iv. Budget of the EDLI Scheme and EPS;

v. Payment of Central Government contribution and administrative charges for Family Pension Scheme, Deposit Linked Insurance under the EPF Act as well as the Assam Tea Plantation Provident Fund Act. vi. References relating and to recovery from the of EPF/ESI Act

dues/Exemptions

Exclusions

EPF&MP

and EPFO Program Program Financing Coverage

also Programs

the At

ESI A

Act. Glance name Type

ESI EmployeesEmployersState

Contribution 1.75% 4.75% share of of of

Rates wages wages expenditure

Govts.-1/8th

NEW

INITIATIVE

IN

SOCIAL

SECURITY

Varishtha Pension Bima Yojana (VPBY): This scheme proposed in the 2003-04 budget by the Ministry of Finance is to be administered by the Life Insurance Corporation of India (LIC). Its main featues are summarized below: Under VPBY, any citizen above 55 years of age, could pay a lumpsum, and get a monthly pensions are pegged at Rs. 250 and Rs. 2000 per month respectively. These amounts are not indexed to inflation. There is a guaranteed return of 9 percent per annum for this scheme. The difference between the actual yield earned by the LIC under this scheme and the 9 percent will be made up by the Central Government. THE EPF & MP ACT IS PROPOSED TO BE AMENDED SUITABLY TO ALLOW EPF SUBSCRIBERS TO INVEST IN THE VBPY.