68

CHAPTER-I I I

PROFILE OF THE SAMPLE UNITS AND WORKERS

This chapter describes the profile of the two

units and their employees so as to form a backdrop of

the entire study. In this connection, importance,

progress and problems of the cement industry and the

salient aspects of the histories of the two units have

been narrated. Further, the socio-economic background

of the workers employed in these units has also been

presented.

IMPORTANCE AND PROGRESS OF CEMENT INDUSTRY

Cement contributes a basic ingredient in the

contribution of anything from a small factory to a

mammoth multipurpose project. It is known to be one of

the key industries for economic development. The

cement industry occupies an important position in the

industrial scene of any country as its growth, the

prosperity as well as adequacy of the infrastructure

required of an industrial economy. Cement is regarded

as synonymous with the progress of a nation and modern

life cannot be conceived without it. The development

of the cement industry in the country vis-a-vis the

demand would also indicate the economic progress of a

country.

The origin of the cement industry in the country

dates back to 1904 wh.en an attempt was made to

manufacture cement at Madras by South Indian Industries

Limited. However, it was not until October, 1914 when

the first bag of cement was packed at Porbundar

(Gujarat) by the Indian Cement Company Limited which

had an installed capacity of only 1,000 tonnes. From

such a humble beginning, the industry has grown into a

major basic industry with an investment of 850 crores

in 126 units spread all over the country providing

employment to 2,90,000 persons.

With the ushering era of planned development, the

cement industry was assigned an important role and it

has made rapid strides during the last four decades.

The progress achieved by the industry is evident from

the fact that the installed capacity of cement

increased from 9.47 million tonnes in 1961 to 34.25

million tonnes in 1984. The installed capacity went

 70

upto 61.9 million tonnes in 1989-90. The corresponding

increase in cement production went upto 49 million

tonnes. The demand and supply of cement from 1988-89

to 1994-95 is as follows:

Demand and SuppIv

(Mi I I ion tonnes)

Year Capacity Production Demand (Kg)

1989-90 58.80 44 42

1990-91 61.09 49 44

1991-92 66.30 51 48

1992-93 66.50 54 52

1993-94 70.50 60 56

1994-95 74.90 63 63

Source: Financial Express

UNDER FIVE YEAR PLANS:

The production targets achieved vary between a low

of 61.5 per cent in the second plan and a high of 95.8

per cent in the first plan. The target of production

 72

could not be achieved in those years owing to the

constraints like shortage of power and coal. The

seventh plan target for production has been fixed at 49

million tonnes. Targets and achievements during five

year plans are as follows:

Targets and Achievements during the Plans

(Mi I I ion Tonnes)

Plan Year InstaI Ied Capacity Production Achieve

Target Achievement Target ment

First Plan 5.3 5.0 4.8 4.6

1951-56

Second Plan 16.0 9.3 13.0 8.0

1956-61

Third Plan 15.0 12.0 13.0 11 .0

1961-66

Annual Plans 3.1 2.8 3.0 2.2

1966-69
Fourth Plan 21 .5 19.8 18.0 14.7
1969-74
Fifth Plan 23.5 22.6 20.8 19.4
1974-79

Sixth Plan 43.0 41 .2 32.5 30.2

1980-85

Seventh Plan 62.0 59.6 49.0 47.5

1985-90

Source: Financial Express

 72

CONSUMPTION

The per capita consumption of cement in India is

43 kgs. as compared with world average of about 200

kgs. But the per capita consumption is seen to have

come a long way from 7 kgs in 1950. The Cement

Manufacturers Association has taken steps to boost the

use of cement in techno-economicaliy superior sectors

like housing, pre-caste and pre-fab construction,

cement concrete roads and cement canal linings. The

per capita consumption of cement in various countries

is as foilows:

Per capita cement consumption

(in Kgs.)

Country Per capita consumption

Japan 561

Korea 533
MaI aysia 268
United Kingdom 242

Ch i na 135

India 43
 73

PROBLEMS OF CEMENT INDUSTRY

The main impediments to the growth of cement

industry in India may be broadly listed as follows:

1. SHORTAGE OF CAPITAL: The private sector runs short

of capital, because the cement industry is capital-

intensive in nature. This was perhaps one reason

for slow growth in the pre-independence era.

2. POWER SHORTAGE: Cement industry requires lot of

power and the frequent power cut affects the

production. Though many industries try to tied over

the power crisis by installing their own generators,

they seem to suffer due to high cost of such an

effort.

3. LOCATIONAL PROBLEM : Cement industry is mainly

situated in Western and Southern regions producing

71 per cent of the total output, while the northern

and Eastern accounts for about 29 per cent of the

total output. The Southern and Western regions

consume only 57 per cent of their total output,

while the Northern and Eastern regions consume 43

 74

per cent of their total production. These factors

lead to heavy transport cost.

4. SHORTAGE OF COAL : Coal shortage affects production

of cement industry resulting in idle capacity and

under utilisation of capacity. The impurities and

low quality coal affects the furnaces and quality of

cement.

5. NON-AVAILABILITY OF RAILWAY WAGONS : Non

availability of Railway Wagons leads to considerable

delay in bringing the raw materials and in

dispatching the cement to various potential markets.

Sending cement by open Railway Wagons leads to

pilferage and damage by train.

6. TECHNICAL OBSOLESCENCE : The industry is in need of

change in the production process. There is a need

for conversion from wet process to dry process. Two

thirds of the industry have "wet process kilns'* and

lack of modern technology hinders growth process.1

1. Naveen Chandra Joshi, Cement Industry: Problems and

Prospects, Yojana, 16th March, 1982, pp. 8-10.
 75

7. INDUSTRIAL UNREST : This is one of the major

problems faced by the cement industry. Problems

with labour are increasing because of the influence

of considerable changes coming in the social and

environmental factors. There is a considerable need

for research programmes in this area.

Hence, it is needless to say that better

utilisation of the resources and introduction of new

techniques in industrial organisation are possible,

only with the willing cooperation of the work force.

As such, the employers should recognise the

significance of human resource and the need for

providing better work environment besides undertaking

various welfare programmes.

FUTURE OF THE CEMENT INDUSTRY

The future of the Cement Industry appears to be

potentially good as the present day concentration has

been more on cement roads. Though cement roads cost

more, they have longer life. All over the world cement

roads have proved their superiority over the bitumenous

ones. The private sector has been permitted to

 76

construct express highways of 2000 kms. length. The

shortage of housing is likely to go upto 34.2 million

units in 1996 and 40.2 million units by the turn of

this century. Water is becoming a scarce resource and

need for better water management is keenly felt.

Advantages of canal lining must be taken note of.

Water loss in cement lining canal can be only 0.03 per

cent of an unlined canal. The carrying capacity of

water increases by over 75 per cent and alkalinity of

land adjoining the canal area is avoided. All these,

together with rapid industrialisation are bound to

create additional demand and better future for cement

industry.

A PROFILE OF RAMAKRISHNA

Late Velagapudi Ramakrishna, a noted industrialist

of the region, who started Krishna Confectionery

Products Limited (K.C.P. Ltd.,), a Sugar factory at

Vuyyuru and an Engineering Unit at Tiruvottiyur (Tamil

Nadu), started Ramakrishna Cements at Macherla, Guntur

District of Andhra Pradesh in the year, 1955.

 77

The reason for the establishment of Ramarksihna

Cements at Macherla was the availability of lime-stone

which is primary raw material to produce cement. Many

limestone mines are located in this area. They have

two limestone mines, one at Macherla at a distance of

one kilometer from the factory and the other at

Polepalli, 6 kms. from the factory. Another important

reason for locating the factory at Macherla was to

supply cement to Nagarjuna Sagar dam then under

construction. In the initial stages, 90 per cent of

the Companys production was supplied to Nagarjuna

Sagar dam and this continued upto 1967. After that a

major portion of the production was suppIied to

Srisailam Project.

The installed capacity of the production stands at

4 lakh tonnes per year. The plan has been of late

totally computerised using the latest dust bags which

avoids dust pollution besides curtailing the waste of

cement through smoke.

A PROFILE OF DURGA

Durga Cement Works, a unit of Andhra Cement

Company, Vijayawada, managed by Jains came into

 78

existence in the year 1981. This is one of the well

established cement units in Andhra Pradesh and is

situated at DachepalIi, in North West of Guntur

District. The unit came into Commercial production in

the month of December, 1983. This is one of the modern

plants operating with the concept of centralised

control for the operation of the machinery. The basic

idea of central control involves the use of

programmable logical control panels (PLCs) along with

the basic instrumentation. Limestone, chief raw

material in the production of cement is available near

by the factory. The installed capacity of this unit

stands at 4 lakh tonnes per annum.

PROFILE OF WORKERS AT SAMPLE UNITS

The requirements of various we Ifare measures in an

industrial unit is very much influenced by the socio

economic conditions of the work-force therein. Hence,

it is considered necessary to examine the socio

economic profile of the workers in the selected units.

Various characteristics like age, religion, mother

tongue, marital status, nativity, experience, literacy

level, nature of job, type of the job, reasons for

 79

migration, income level, savings, number of dependents,

indebtedness etc., of the respondents in the selected

units have been analysed.

AGE : The age composition of the work force in an

Industrial Unit influences the need and the extent of

welfare facilities to be provided. While the employees

advancing in age begin to take more interest in the

welfare of their family members and the retirement

benefits, the employees of younger age group show more

interest in monetary emoluments and working conditions.

The age groups of workers may also have their own

impact on their productive efficiency and wage bill in

any organisat ion.

As revealed by Table 3.1, the majority of 29.57

per cent of the total respondents are in the age group

of 41-45 years, followed by 25.65 per cent in 36-40

years age groups. Unit-wise classification of

respondents reveals a significant difference with

regard to age group. In case of Ramakrishna, a

majority of 36.67 per cent of the employees are in 41-

45 age group while a majority of 24.55 per cent of the

 80

respondents at Durga are in 36.40 years age group. The

employees of younger age group are 1.67 per cent at

Ramakrishna while such workers accounts for 10 per cent

at Durga. The spread of respondents over different age

groups in these two units clearly establishes the fact

that the younger age group dominates Durga Cements. As

revealed by the Table 3.1, 61.82 per cent of the total

workers fall within 20-40 years age group at Durga

while it is 40.83 per cent at Ramakrishna. This is

perhaps the younger generation joining in Durga Cements

which was established 13 years back, while the

Ramakrishna Cements was established more than 40 years

back.

As such, there is dissimilarity over the

composition of age, unit-wise and, therefore, these

differences in the age composition of work force are to

be kept in mind while considering the welfare

programmes already provided or to be provided.

NATIVITY : The employees who are natives have certain

advantages Over the immigrants. They are likely to

have the house of their own, local base and influence,

 T ab le 3.1
P e rc e n ta g e d is tr ib u tio n o f s e le c te d w o rk ers c la s s if ie d a c c o rd in g to
5
th e ir a g e -g ro u p s
R am akrishna Durga O veraI I
S I.N o. Age

o
o
o
1 5 .6 5

20 - 25 .67

O
O)
7 .3 9

CM
26 - 30 4 .1 6

i
CO
in

CO

CO
8 .3 3 16.36 12.17
36 - 40 2 6 .6 7 2 4 .5 5 25.65

1
CO
CM

r*
CM

to

T*

in
3 6 .6 7 29.57
19.57

CO
46 and above 2 2 .5 0 16.36
o
o

o
o

o
o
o
o

o
o
o
o
T o tal
81
 82

financial support and cooperation from the local

community in times of need. On the other hand, the

immigrants find the local environment very strange and

at times difficult to adjust. Hence, naturally they

require support in various ways from the management.

In view of. this, the welfare needs of the natives and

immigrants are likely to differ.

An enquiry into the nativity of work force reveals

the magnitude of influence exercised by the industrial

establishments in attracting people from different

areas. A worker is considered to be native if he hails

from the town, where the factory is located. He is

considered to be an immigrant if he comes from other

places. Table 3.2 reveals that 42.17 per cent of the

total workers are natives and 30.87 per cent of the

employees are from within the district. As such,

nearly 73 per cent of the respondents hailed from the

places within the district in which the units are

located. Regarding the employees from the outside the

district, Durga accounts for 30 per cent, while at

Ramakrishna the percentage of such workers accounts for

24.17. This may be due to the recent establishment of

 Table-3.2

Percentage distribution of selected workers classified according to

their nativity

Durga Overal 1
S 1. No . Native/Immigrant Ramakrishna
T
r-
CM

39.09

Natives 45.00

CM
Immigrants within
CO

CO
o

CO
CD

the District 30.83 o

'M-
r-
26.96

CM
30.00

CO
Outside the District
o
o
o
o

o
o

o
o

Total 100.00
83
 84

Durga Cements offering opportunities for the people

outside the district in certain categories.

However, it could be observed from the table that

in respect of nativity and immigrant characteristic no

significant differences are noticed.

RELIG / ON : Religion, as one of the important

constituents of the socia I-economic profile of work

force deserves to be examined. It can be seen from the

Table 3.3 that Hindus accounts for 71.30 per cent of

the total respondents while Muslims and Christians

account for 7.83 per cent and 20.87 per cent

respectively. Almost the same composition can be

observed from the individual units. It can be observed

from the table that the proportion of the respondents

belonging to the Hindu religion is very high. This may

be the clear reflection of the religious composition of

the overall composition in the State of Andhra Pradesh.

Considerable percentage of respondents belongs to

Christianity. The same has been the trend with

individual units also.

 t
Tab e 3.3

Percentage distribution of selected workers classified according to

their religion

SI.No. Re 1 igion Ramakrishna Durga O v e r a 11

70.91 71.30

T~
Hindu 71 .67

8.18 7.83

CM
MusIim 7.50

r
CD

CM
o
20.87

CO
Christian 20.83
i
i

i
i

i
i
Any o t h e r
O
O

o
o

o
o

o
o

o
o
o

o
Total
85
 86

MOTHER TONGUE : In any organisation the linguistic

composition of the work force is an important factor in

deciding and communicating the various welfare

programmes and the philosophy behind them. Therefore,

it is necessary to enquire into the mother tongue of

the employees in the selected industrial units. Andhra

Pradesh is a state where majority of the population

speak 'Telugu. This is evidently reflected in Table

3.4 which provides the classification of respondents by

mother tongue. As all the sample units are located in

predominantly Telugu speaking areas of the State, 88.70

per cent of the total respondents have Telugu as mother

tongue.

The other mother tongue which is popular in Andhra

Pradesh is either Hindi or Urdu. The remaining 11.30

per cent of the respondents have Hindi or Urdu as their

mother tongue. The unit-wise composition of mother

tongue is not found different. At Durga, the

respondents having Telugu as their mother tongue

accounts for 89.09 per cent while at Ramakrishna

percentage of such respondents accounts for 88.33.

However, even those who have Hindi/Urdu as their mother

 T a b le 3 .4
P e rc e n ta g e d is t r ib u t io n o f s e le c te d w o rk e rs c la s s if ie d a c c o r d in g to
t h e ir m o th e r to n g u e

D u rg a O v e ra l 1
S I.N o . M o th e r to n g u e R a m a k ris h n a

CD
O

CO
CD

CO
CO
CO

00
8 8 .7 0

T e iu g u

T
CD

T
O

co
r-
1 1 .3 0

CM
Hi n d u /U rd u
o

o
o
o

o
o

o
o
1 0 0 .0 0

I
0
(0
87
 88

tongue are found speaking Telugu, the regional

Ianguage.

MARITAL STATUS : Marriage is an important event in the

life of the employee that gives rise to a family with

its own far reaching effects on the provisions of

welfare amenities by the employer. As such, the

marital status of employee is an important factor to be

considered by the management while designing the

welfare programmes.

As revealed by Table 3.5, 89.13 per cent of the

total respondents were married while the unmarried

accounted for 10.87 per cent. The percentage of

unmarried at Durga accounted for 11.67 while at

Ramakrishna it was 10 per cent. As such, there is no

significant difference in the marital status of the

workers unit-wise. In both the units, nearly 90 per

cent of the workers are married which may be explained

by the fact that most of the workers get married soon

after becoming earning members.

 Tab Ie 3.5

Percentage distribution of selected workers classified' according to

their marital status

S 1.No . Marita 1 Status Ramakrishna Durga Overa11

89.13

o
o
o
0)
88.33

r*
Married
v
o
OD

CQ
h-

v
o
O
o

CM
Unmarried
O
O
O
o

o
o
o
o

o
o
o
o
Total
89
 90

EDUCATION : It is believed that literacy enables the

workers to understand their role in the organisation.

The education background of an employee influences his

understanding, evaluation and reaction towards welfare

amenities provided by the management. As such, an

enquiry is made into this aspect among the workers of

the selected units.

It can be observed from the Table 3.6 that 26.52

per cent of the total respondents were uneducated while

26.96 per cent and 19.56 per cent of the respondents

have technical and Matriculation and above

qualifications respectively. While Ramakrishna

accounted for 26.67 per cent of uneducated employees,

it was 26.36 at Durga. While the percentage of

respondents below Matriculation accounted for 27.50 at

Ramakrishna, it was 26.36 at Durga. 20 per cent of the

employees at Ramakrishna had Matriculation and above

qualifications while percentage of such workers

accounted for 19.10 at Durga. 25.83 per cent of

employees had technical qualifications at Ramakrishna

while the percentage of such employees accounted for

28.18 at Durga. As such, the unit-wise analysis

 T a b le 3 .6
P e rc e n ta g e , d is t r ib u t io n o f s e le c te d w o rk e rs c la s s if ie d a c c o r d in g to
t h e ir E d u c a tio n

S I.N o . E d u c a tio n a l Q u a lif ic a t io n R a m a k ris h n a D u rg a O v e ra

No fo rm a l e d u c a tio n 2 6 .6 7 2 6 .3 6 2 6 .5 2

2 . Be Iow M at r ic u I a tio n 2 7 .5 0 2 6 .3 6 2 6 .9 6

3 . M a t r ic u la t io n a n d a b o v e 2 0 .0 0 1 9 .1 0 1 9 .5 6

4 . T e c h n ic a I 2 5 .8 3 2 8 .1 8 2 6 .9 6

0 0 .0 0 I 0 0 .0 0 100.00
T o ta
91
 92

clearly reveals that there is no significant difference

in the educational qualifications of the respondents.

EXPERIENCE : A study of length of experience of

employees in the selected units is considered relevant

as the expectations and reaction of employees regarding

welfare amenities vary depending upon their length of

experience.

As revealed by Table 3.7, a majority of 46.96 per

cent of the total respondents in both the units had

work experience of more than 16 years while 26.09 per

cent of the total respondents had the experience of 11-

15 years. As low as 10.43 per cent of the workers had

less than 5 years of experience. Unit-wise comparision

of length of experience of workers reveals that there

is no significant difference between the units except

that Durga had a slightly more number of workers with

less than 10 years experience because of the fact that

Durga was established much later to Ramakrishna and

thereby providing employment opportunity to younger

generation.
 T a b le 3 .7

4
-
m
m
ID
o

05
P e rc e n ta g e d is t r ib u t io n o f s e le c te d w o rk e rs c l a c c o rd in g to
t h e ir le n g th o f s e r v ic e
D urga O v e ra l 1
S 1. N o. E x p e rie n c e R a m a k ris h n a
r
Tfr
o
o

co
r~-

CO
1 4 .5 4

.
Less th a n 5 y e a rs
m
T
CD
CM

o
o

o
2 3 .6 4

CM
6 -1 0 y e a rs
o
CM
CD
O)

v
oo

oo
CM

CO
11 - 15 y e a rs 2 4 .1 7
96 9 *
16 and above 5 9 .1 6 3 3 .6 4

o
o

o
o

o
o

o
o

o
o
o

T o ta l
93
 94

DEPENDENTS : The number of dependents determine the

size of the workers family which in turn influence the

degree of economic burden and the level of standard of

Ji.ving. As revealed by Table 3.8, as high as 31.31 per

cent of the total respondents in both the units had

more than 5 dependents while 30.43 per cent of the

total respondents had 4 dependents. Unit-wise analysis

does not appear to be much significant. However,

majority of the employees in both the units are

dominated by workers with big families.

INCOME FROM EMPLOYMENT : Income from employment has an

important bearing on the nature and extent of welfare

programmes to be offered by the managements. As

revealed by Table 3.9, majority of the workers (31.30

per cent) are found earning between Rs.1501-2500 per

month while 26.09 per cent of the workers are found

drawing less than Rs.1500 per month. The percentage of

workers drawing between Rs.2501-4000 accounted for

29.57 per cent while 13.04 per cent of the workers were

drawing more than Rs.4000. There is no significant

difference in both the units drawing monthly income

from empIoyment.
 T a b le 3 .8
P e r c e n ta g e ' d i s t r i b u t i o n o f s e l e c t e d w o rk e rs c l a s s i f i e d a c c o r d in g to
num ber o f d e p e n d e n ts

D u rg a O v e ra 1 1
S I.N o . No. o f D e p e n d e n ts R a m a k rish n a

(0
r-

<r
1 2 .7 3 1 2 .1 7

T
U pto two
03
O
(0
CM

2 6 .3 6

CM
,, th r e e 2 5 .8 3
o
o
O

CO

o
00
CO

CO
3 0 .4 3

CO
,, fo u r

e'
en

i
CO
F iv e an d ab o v e 3 0 .9 1 . 31 .31
o
o

o
o

o
o

v
o
T o ta l o 1 0 0 .0 0
95
 Table 3.9

Percentage distribution of selected workers classified according to

monthly income from employment

Durga Over a 11
SI.No. Particulars of Income Ramakrishna
O
CD

CM
CO

25.00 27.27

Upto 1500
31 .67 30.91 31.30

CM
1501 to 2500

30.00 29.09 29.57

co
2501 to 4000
CO
CO
CO

Y*
12.73 13.04

''t
Above 4000
o

o
o
o

o
o
o

Total 100.00
96
 97

INCOME FROM SUBSIDIARY SOURCES : An enquiry into the

income from subsidiary sources is considered useful for

the present study as it will have supplemental effect

and would influence the need for welfare programmes.

As revealed by Table 3.10, 91.30 per cent of the total

respondents did not have subsidiary income while 8.70

per cent of the respondents accepted that they had

subsidiary income. The unit-wise analysis reveals that

91.82 per cent of the workers at Durga and 90.83 per

cent of the workers at Ramakrishna had no subsidiary

income. The workers who had subsidiary income at

Ramakrishna and Durga accounted for 9.17 per cent and

8.18 per cent respectively.

As such, it can be concluded that majority of the

workers at both the units, the source of livelihood is

only employment. Even in case of those having other

sources of income, the earnings are quite meagre as

revealed by Table 3.11.

EXPENDITURE PATTERN : The study of expenditure pattern

of employees would enable us to assess their ability to

meet the basic needs and also indicate the scope of

 Table 3.10

Percentage distribution of selected workers, classified according to

their opinion about subsidiary income

Overa II
SI.No. Subsidiary Income Ramakrishna Durga 00

CO
9.17 8.70

T
Yes
.
00
CM

CD

90.83 91 30

C\J
No
i
1

1
1
1

1
1
1

1
1
1

1
1
1

1
1
1
1
1

1
1
1

1
!

l
1
t
o
1 o
o
i
1 o

1 o
1 o
1 o

l o
1

1 o
1 o

1 o
1 o
Total
98
 T a b le 3 .1 1
P e rc e n ta g e d is t r ib u t io n o f s e le c te d w o rk e rs c la s s if ie d a c c o r d in g to
th e a m o u n t o f a n n u a l s u b s id ia r y in co m e

SI . N o . Incom e ( R s .) R a m a k ris h n a D u rg a O v e ra I

U p to 500 9 3 .3 3 9 8 .1 8 9 5 .6 5
2 . 501 - 1000 6 .6 7 1 .8 2 4 .3 5
3. 1001 and a b o v e

T o ta l 1 0 0 .0 0 1 0 0 .0 0 1 0 0 .0 0
99
 100

welfare programmes to be organised by the managements.

Basic needs like food, clothing and shelter have to be

satisfied for bare subsistence living. The pay packet

of any worker should be sufficient enough at least to

meet the elementary needs. Income remaining if any,

can be spent for other purposes. As such, the standard

of living of a worker can be understood from his

expenditure pattern.

It can be understood from the Table 3.12 that

nearly 85 per cent of the earnings of the respondents

go to meet the basic needs like food and provisions,

rent and clothing. There is no dissimilarity of the

expenditure pattern of the workers between the units.

SAVING HABIT : Saving habit of the employees would

enable to assess their ability to meet the contingent

needs and also indicate the scope of welfare programmes

to be organised by the management.

It is most disheartening to note from Table 3.13

that as high as 92.61 per cent of the total respondents

do not have the habit of saving. There is no

 T a b le 3 .1 2

"O
0)

<0
(0
(0
<*-
P e r c e n ta g e d i s t r i b u t i o n o f s e l e c t e d w o rk e rs cl a c c o r d in g to
t h e i r e x p e n d itu r e p a t t e r n

S I.N o . E x p e n d itu re P a t t e r n R a m a k rish n a D u rg a O v e ra lI

CD
O
r-

Food an d p r o v is io n s . 6 9 .1 7 7 0 .0 0

co
r-

CD
6 .3 6 6 .5 2

CM
R en t
CO
CO

r~

7 .2 7

CO
C lo th in g 8 .3 3
r-

CM
T

00
CM

Y
y

o
lO
CM
1
S o c ia h a b i t s
<*
CD
CO

3 .4 8

lO
O th e r ite rn s 3 .3 3
o
o
o

o
o
o

o
o
o

T"
o

T o ta l
101
 Table 3.13

Percentage distribution of selected workers classified according to

their saving habit

Durga OveraI I
SI.No. Saving habit Ramakrishna

7.39

r-
in
7.27

Yes
0)
CO
i

CM

92.73

CM
No 92.5

O
O

O
O

O
O
O

o
o
o
Total
102
 103

dissimilarity between the units in this regard as 92.5

per cent and 92.73 per cent of the employees at

Ramakrishna and Durga respectively had no saving habit.

A meagre of 7.39 per cent of the total respondents had

the habit of saving.

INCREASING COST OF LIVING - EMPLOYEES REACTIONS : As

the cost of living has been increasing day by day and

the increase in real wage in general has not been in

parity with the inflation, an enquiry had been

conducted to ascertain how the employees were coping

with the burden of increasing cost of living. As

revealed by the respondents, the steps they would take

include minimisation of expenditure on consumption,

shifting to cheaper varieties, resorting to borrowing

and dissaving.

As revealed by the data in Table 3.14, a majority

of 72.61 per cent of the respondents resorted to

borrowings. This is clearly an indication of

indebtedness among workers. Only 9.13 per cent of the

respondents stated that they can cut down their

consumption. The recourse to cheaper variety of goods

 T a b le 3 .1 4
P e rc e n ta g e d is t r ib u t io n o f s e le c te d w o rk e rs c la s s if ie d a c c o rd in g to
t h e ir o p in io n on th e s te p s to be ta k e n in tim e s o f
in c re a s in g c o s t o f liv in g

R a m a k ris h n a D u rg a O vera I I
S I.N o . O p in io n

By m in im is in g c o n s u m p tio n 9 .1 7 9 .0 9 9 .1 3
CO
r-

CNJ

r
CO
CO
CO
1 3 .0 4

c\l
By g o in g f o r c h e e p e r v a r ie t ie s
7 2 .6 1

CO
By b o rro w in g 7 0 .8 3 7 4 .5 4
By d is s a v in g 6 .6 7 3 .6 4 5 .2 2
o
o

o
o

o
o
o

o
o
o

T o ta l
104
 105

is another step favoured by 13.04 per cent of the

workers. Only 5.22 per cent of the respondents

preferred dissaving. Unit-wise analysis also did not

show any dissimilarity in this regard. As such, it can

be concluded that workers in general, resort to debt

for meeting the increased cost of living or unforeseen

contingencies.

INDEBTEDNESS : Increased cost of living, large families

and changing habits of people etc., would force the

employees to be caught in the net of indebtedness. It

is assumed that indebtedness is of greater worry to the

workers and it may lead to adverse impact on the

efficiency of the indebted workers. Therefore, it

requires managements to protect the employees through

the implementation of suitable welfare measures. Table

3.15 indicates that as much as 87.83 per cent of the

total respondents were undebted. Even the unit-wise

analysis reveals that the percentage of employees

indebted accounted for 86.67 and 89.09 at Ramakrishna

and Durga respectively.

 T a b le 3 .1 5
P e rc e n ta g e d is t r ib u t io n o f s e le c te d w o rk e rs c la s s if ie d a c c o rd in g to
th e in d e b te d n e s s

S I.N o . In d e b te d n e s s R a m a k ris h n a D urga O v e ra lI

CO

Is
CO
CO

CD
CD
CD

r-

CO
CO
C0

r*
I n d e b te d Y

o
O)
1 2 .1 7

CM
N ot in d e b te d 1 3 .3 3
o

o
o

100.00

o
o
o

I
(0
*->

o
106
 107

The state of indebtedness in the respondents was

very much supported by the large number of families and

lack of subsidiary income. When the means are

inadequate to meet both the ends, it is perhaps natural

that many workers burry themselves deep in debts.

There are 12.17 per cent of the total respondents who

are not indebted. As mentioned earlier, there are 8.70

per cent of the total respondents who are having

subsidiary income (Table 3.10) and roughly 12 per cent

of the respondents are having only one or two

dependents (Table 3.8). Perhaps, these are the groups

of the people who are capable of living within their

means without resorting to debts.

EXTENT OF INDEBTEDNESS : Table 3.16 reveals the extent

of indebtedness among respondents. Nearly 30 per cent

of the total respondents indebted were within the

bracket of Rs. 3001 -5000 while 22.61 per cent of them

were indebted for more than Rs.5000 each. While the

respondents indebted in Rs.2001-3000 and Rs.1001-2000

accounted for 26.09 per cent and 11.30 per cent

respectively, only 10.43 per cent of the total

respondents were indebted within the minimum bracket of

less than Rs.1000.

 T a b le 3 .1 6
P e rc e n ta g e d is t r ib u t io n o f s e le c te d w o rk e rs c la s s if ie d a c c o rd in g to
th e e x te n t o f in d e b te d n e s s

R a m a k ris h n a D urga O v e ra I I
S I.N o . Am ount In d e b te d (R s .) o

o
o
K

CO

o
CO

T~
1 0 .4 3

o
o
o

Z)
a
o
0)

c-
co

T
1 1 .3 0

eg
1001 - 2000

1
2 6 .0 9

o
o
0
CO
2 6 .3 6

eg
o
o

CO
2 5 .8 3
3001 - 5000 2 9 .1 7 3 0 .0 0 2 9 .5 7
eg
CO

eg
T"*

2 2 .7 3

CO
2 2 .5 0
'

5001 and above

o

o
o
o

o
o

o
o
o

T o ta l
108
 109

The most interesting observation of the Table 3.16

is such that there is no dissimilarity in unit-wise

analysis with regard to indebtedness. Though the

employees at Durga Cements were slightly more younger

in age. As such, it can be concluded that there is no

direct bearing of age on the indebtedness and what

mattered was larger families, changing habits,

contingencies etc.

SOURCES OF BORROWING : The sources of borrowing are

very important in the study of indebtedness as they

influence the case in repayment of principal and

interest. Table 3.17 reveals that as much as 66.09 per

cent of the total respondents.borrowed from money

lenders and hence it appears to be the main source of

borrowing. Whenever the source of debt was money

lenders, indebtedness would always be higher because of

usurious rates of interest charged by them. 11.30 per

cent of the respondents borrowed money from their

provident fund account. 14.17 per cent of the

employees of the Ramakrishna borrowed from employees

credit society while there is no such source at Durga.

 T a b le 3 .1 7
P e rc e n ta g e d is tr ib u tio n o f s e le c te d w o rk ers c la s s if ie d a c c o rd in g to
th e so u rc e s of. b o rro w in g (0
a)
>
Durga o
S I.N o. S o u rces R am akrishna

i
i

r*

T-
r-
7 .3 9

C re d it S o c ie ty
13.64 11.30

CM
P ro v id e n t Fund 9 .1 7
05

CO
O

CO

CO
M oney-Lenders 63.33 6 9 .0 9
o
o
o

10.91

-t
F rie n d s /R e la tiv e s 9 .1 6
5 .2 2

in
EmpI o y er 4 .1 7 6 .3 6

o
o

o
o
T o tal 100.00 100.00
110
 Ill

PURPOSE OF BORROWING : Table 3.18 reveals the purposes

for which loans were borrowed. Majority of employees

in both the units borrowed money to meet family needs

which shows the erosion of money wages especially

during the last two decades of spiraling inflation

coupled with imperfect and ineffective distribution of

essential commodities. 28.26 per cent of the total

respondents borrowed money for performing the marriage

of their family members while 14.35 per cent of them

borrowed loans for the construction of houses of their

own. There is no significant difference unit-wise as

regards the purpose for which respondents borrowed

money.

MAJOR FINDINGS i It is considered necessary to examine

the socio-economic profile of the employees working in

the selected units as the requirement of various

welfare measures in an industrial unit is very much

influenced by the socio-economic conditions of the work

force. With regard to the age composition workers,

Ramakrishna was clearly dominated by the workers

belonging to upper age group of 41-45 years while Durga

was found having workers predominantly belonging to the

 T a b le 3 .1 8

T>
<D
<4-

cn
<0
m
P e rc e n ta g e d is t r ib u t io n o f s e le c te d w o rk e rs c l a c c o rd in g to
th e p u rp o s e o f b o rro w in g

R a m a kris h n a D urga O v e ra I I
S I . N o. P u rp o s e
CO
lO

"*$
CO
CD

T
1. House C o n s tru c tio n 1 5 .0 0 .

2. M e d ic a l 2 2 .5 0 2 1 .8 2 2 2 .1 7
CO

CD
CM

CM

3. M a rria g e s 2 9 .1 7 2 7 .2 7
4. D o m e s tic c o n s u m p tio n 3 3 .3 3 3 7 .2 7 3 5 .2 2
o

o
o

o
T~
T o ta l 1 0 0 .0 0 1 0 0 .0 0
112
 113

age group of 36-40 years. The considerable percentage

of workers at Durga was also found in the age group of

41-45 years.

Wi'h regard to the nativity, majority of the

workers are found hailing from within the area or

district in which the sample units are located. Durga

Cements is having the workers from outside the district

slightly more than that of Ramakrishna. This may be

due to the recent establ ishment of Durga Cements

offering opportunities to the people out side the

district in certain categories.

In both the sample units, majority of the

respondents are Hindus by religion, followed by a

considerable percentage of respondents belonging to

Christian religion. This trend reflects the overall

composition of the people of the State by religion.

So far as the mother tongue is concerned, more

than 88 per cent of the workers in the sample units had

Telugu as their mother tongue. This may be because the

sample units are located in the midst of predominantly

Telugu speaking area of the State.

 114

As regards the marital status, most of the

respondents (89.13 per cent) are married as these units

are mostly having workers of more than 25 years of age.

Earning members of such age are deemed ideal for

marriage. There is no dissimilarity in respect of

literacy level between two units.

Ramakrishna had the workers having more work

experience than at Durga because of the fact that

Ramakrishna was established thirty years earlier.

Majority of- the workers in the sample units are

dominated by the workers with big fami I i es. The

reasons for big families at Durga inspite of a slightly

more younger employees may be due to the social customs

and beliefs. As far as the earnings are considered,

majority of the workers in both the units are found

earning between Rs.1501 to 2500 per month followed by

the workers earning between Rs.2501 to 4000. Most of

the workers in the sample units do not have any

subsidiary income.

The expenditure pattern of the respondents

revealed that a major part of their income is spent on

 115

basic needs like food, clothing and shelter. Majority

of the workers in both the units had no habit of

saving. Perhaps it is the reason why most of the

workers in the sample units are resorting to borrowing

for the purpose of meeting the increased cost of

I i v i ng.

The extent of indebtedness is found severe in both

the units as nearly 88 per cent of the workers an

indebted. Majority of the workers are resorting to

borrowing from money-lenders as it is an easy and

immediate source. The purpose for which they borrow is

mainly to meet the consumption needs leading to the

conclusion that their income is quite insufficient to

meet the daily needs.

Thus the above analysis reveals that in majority

of the cases there is no dissimilarity between the two

units.

TESTING OF HYPOTHESIS NUMBER-1 : The analysis of the

profile of the workers enables us (as revealed by Table

3.19) to conclude the acceptabi I ity or non

acceptability of the Hypothesis in respect of different

 T a b le 3 .1 9
S ta te m e n t s h o w in g a c c e p t a b ilit y or N o n - a c c e p ta b ility of H y p o th e s is
N um ber I

S I.N o , N a tu re o f th e I tern A c c e p ta b Ie /N o n - a c c e p ta b Ie

Age N o n -a c c e p ta b I e
2 Re I ig io n a c c e p ta b Ie
3 N a t iv it y a c c e p ta b Ie
4 M o th e r to n g u e a c c e p ta b Ie
5 M a r ita I s ta tu s a c c e p ta b Ie
6 E d u c a tio n a c c e p ta b Ie
7 E x p e rie n c e n o n -a c c e p ta b Ie
8 D e p e n d e n ts a c c e p ta b Ie
9 Incom e fro m E m p lo y m e n t a c c e p ta b Ie
10 Incom e fro m s u b s id ia r y s o u rc e s a c c e p ta b Ie
11 E x p e n d itu r e p a tte r n s a c c e p ta b Ie
12 In d e b te d n e s s a c c e p ta b le
116
 H

items of socio-economic characteristics of employees of

the two units under study. It could be observed from

the table that the socio-economic characteristics of

employees in two units are similar in respect of

religion, nativity, mother tongue, marital status,

education, dependents, income from employment and

subsidiary resources, expenditure pattern and

indebtedness. However, in respect of age and

experience differences are noticed. Thus, similarities

were found in case of ten items and dissimilarities in

respect of two items of socio-economic characteristics

of work force. However, the items which are similar in

both the units are crucial which require serious

attention of the managements in order to provide

appropriate welfare amenities.

As such, the above analysis reveals that in

majority of the cases, the hypothesis formulated in the

beginning of the chapter is proved correct. In view of

this, it may be presumed that the welfare needs of the

employees in both the units are more or less the same.