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LABOUR AND EMPLOYMENT DEPARTMENT POLICY NOTE INTRODUCTION The avowed objective of the Government of Tamil Nadu is to ensure an atmosphere of industrial peace and harmonious relations between employers and employees. The Labour Department has been striving hard to create a congenial atmosphere free from work stoppages in which both the workers and the employers are motivated to meet their mutual obligations and also improve productivity. The Chief Inspectorate of Factories strives to improve safety in Factories. Social Security for workers in the organized sector is provided by two Central Organisations viz., The Employees Provident Fund Organisation and Employees State Insurance Corporation. The Welfare of the unorganised workers is looked after by the Construction Workers Board and the Manual Workers Welfare Board. Training needs of these organizations are met by the Tamil Nadu Institute of Labour Studies. The Commissionerate of Employment and Training has two wings. The Employment Wing provides Employment services through a network of Employment Exchanges. The Training Wing supervises technical training offered in Industrial Training Institutes and Industrial schools. The State Child Labour Rehabilitation cum Welfare Society is coordinating activities to eradicate child labour in our State. The Overseas Manpower Corporation helps to find placements for workers willing to work overseas. 2) The functions of the above departments are outlined in the Chapters below. The New Schemes approved under Part II Schemes 2004-2005 are given below- S.No. Details of the Scheme Expenditure (Rupees in lakhs) 1. Secretariat (L & E Dept) Establishment of a Computer Cell in Labour and Employment Department of Secretariat. 15.50 2. Purchase of one Xerox machine 1.50 3. Commissionerate of Labour Computerisation and E-Governance including purchase of Fax 10.20 4. Replacement of existing 10 manually operated Working Standard physical balance into digital type Working Standard balances. 30.00 5. Purchase of Mobile Wagon for Verification of Weighbridges. 7.90 6. Repairs and Renovation of Labour Officers' Quarters in the State. 10.93 7 Employment and Training (Employment Wing) Upgradation of Computer system in 12 Employment Offices. 46.62 8. Purchase of Computer systems for Commissionerate of Employment and Training (Employment Wing) 1.70
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Page 1: labour and employment department

LABOUR AND EMPLOYMENT DEPARTMENT

POLICY NOTE

INTRODUCTION The avowed objective of the Government of Tamil Nadu is to ensure an atmosphere of industrial peace and harmonious relations between employers and employees. The Labour Department has been striving hard to create a congenial atmosphere free from work stoppages in which both the workers and the employers are motivated to meet their mutual obligations and also improve productivity. The Chief Inspectorate of Factories strives to improve safety in Factories. Social Security for workers in the organized sector is provided by two Central Organisations viz., The Employees Provident Fund Organisation and Employees State Insurance Corporation. The Welfare of the unorganised workers is looked after by the Construction Workers Board and the Manual Workers Welfare Board. Training needs of these organizations are met by the Tamil Nadu Institute of Labour Studies. The Commissionerate of Employment and Training has two wings. The Employment Wing provides Employment services through a network of Employment Exchanges. The Training Wing supervises technical training offered in Industrial Training Institutes and Industrial schools. The State Child Labour Rehabilitation cum Welfare Society is coordinating activities to eradicate child labour in our State. The Overseas Manpower Corporation helps to find placements for workers willing to work overseas. 2) The functions of the above departments are outlined in the Chapters below. The New Schemes approved under Part II Schemes 2004-2005 are given below-

S.No. Details of the Scheme Expenditure (Rupees in

lakhs)

1.

Secretariat (L & E Dept) Establishment of a Computer Cell in Labour and Employment Department of Secretariat.

15.50

2. Purchase of one Xerox machine 1.50

3.

Commissionerate of Labour Computerisation and E-Governance including purchase of Fax

10.20

4.

Replacement of existing 10 manually operated Working Standard physical balance into digital type Working Standard balances.

30.00

5. Purchase of Mobile Wagon for Verification of Weighbridges.

7.90

6. Repairs and Renovation of Labour Officers' Quarters in the State.

10.93

7

Employment and Training (Employment Wing) Upgradation of Computer system in 12 Employment Offices.

46.62

8. Purchase of Computer systems for Commissionerate of Employment and Training (Employment Wing)

1.70

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9. Purchase of Computer systems Special Employment Office for Physically Handicapped (SEOPH)

0.85

10. Provision of Wide Area Network connecting Employment Exchanges with Directorate.

5.00

11.

Employment and Training (Training Wing) Introduction of Information Technology and Electronics System Maintenance (IT & ESM) and cutting & Sewing Trades in Government ITI Dindigul (W) by diversification of existing Trades.

19.05

12. Computerisation of the Officers of the 10 Government ITIs.

20.00

13. Construction of own building for Government ITI, Dindigul.

61.00

14. Provision of Telephone facilities to 13 ITIs / Centres.

3.71

15. Provision of deep borewell with pumpset in 10 Govt. ITIs

15.00

16.

Purchase of Tools and Equipments as per the revised syllabus for the Trade Mechanic (Motor Vehicle) in 30 ITIs.

100.00

17.

Purchase of CNC Turning Lathe with accessories to Government ITI Pettai and CAM programming and simulation for CNC turning units with PC to 17 ITIs.

34.43

18. Construction of buildings for Government ITI for women at Andipatti.

70.00

19.

Inspectorate of Factories Provision of Fax machines to 5 offices of the Joint Inspector of Factories (Productivity Cell, Deputy Chief Inspector of Factories, I Division, II Dvision, Chennai, Tiruchi and Vellore.)

1.10

20.

Provision of 6 computers to office of the Inspectorate of Factories, Vellore, Sivaganga, Kovilpatti, Ooty, Mettur and Pollachi.

5.00

21.

Provision of 30 Hydrostatic Testing Pressure Vessels and 10 Ultrosonic testing machines to the Testing and Safety Divisions.

5.40

22.

Directorate of Medical and Rural Health Services (ESI) Procurement of 15 computers.

15.00

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23. Procurement of equipments to ESI hospitals and dispensaries

280.00

24. Procurement of one Fax machine to Directorate

0.20

25. Procurement of EPABX system and 3 lines of telephones to Directorate.

3.15

26. Procurement of EPABX to ESI Hospital, Ayanavaram.

4.67

Total 767.91

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CHAPTER – 1

INDUSTRIAL RELATIONS

1.1 Maintenance of Industrial peace is essential for achieving the objectives of growth and prosperity. Progressive management and responsible labour behaviour are the prerequisites for harmonious industrial relations. There should, therefore, be the closest collaboration at all levels between the employer and the employees for increased production, improvement of quality and reduction of cost. Machinery and procedure for resolving of disputes between management and workers is laid down by the Industrial Disputes Act, 1947 and Rules under the Act. The role of the Labour Department is to aid in maintaining a harmonious relationship between labour and management so that there is a conducive atmosphere for achieving the objective of growth and prosperity for both the employer and the workers. The officers of the Labour Department achieve this important task through a delicate mechanism of intervention at the appropriate time to conciliate and settle industrial disputes. Officers of the Labour Department have effectively intervened to end many strikes and lockouts. During the year 2003, there was an appreciable decline in the loss of man-days due to strikes or lock-outs when compared with the year 2002, as follows:-

Mandays Lost due to YEAR

STRIKES LOCKOUTS TOTAL

2002 665262 1188502 18537642003 540155 1030708 1570863

01.01.2004 to 31.03.04

24,678 2,82,716 3,07,394

A majority of the lock-outs were due to financial problems and not due to Labour

disputes. The total number of strikes and lock-outs settled during the year 2003 were 56 and 52 respectively and 5 strikes and 11 lockouts were settled during the quarter ended 31.03.2004. 1.2 During the year 2003, 9,034 disputes were settled. This figure includes dispute raised

during this period and during the previous year. During the quarter ended 31.03.04, 1833 disputes were settled

1.3 During the year 2003, the officials of Labour Department took prompt action regarding

disputes relating to Bonus. As a result, most of the issues relating to Bonus were solved amicably in the minimum possible time and the Bonus period went off peacefully.

TRIPARTITE COMMITTEES 1.4. In G.O.(D) No. 133, Labour and Employment dated 12.02.2002, the Government have constituted a Tripartite Committee at District Level to find out the possibility of reopening closed industrial units. The Chairman of the Committee is the Collector of the District. The concerned Labour Officer/Assistant Commissioner of Labour is the Member-Secretary. Members of Legislative Assembly and Members of Parliament of the District and three representatives each of employers and employees are the other members. This committee has to meet once in three months to discuss cases of closed units in the district.

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GOOD INDUSTRIAL RELATIONS AWARD SCHEME 1.5. A Tripartite Committee, appointed by the Government consisting of four representatives each from the employers and the Trade Unions, selects the award winners. This scheme is being implemented from the year 1978. RELIEF FOR WORKMEN OF INDUSTRIAL UNITS WHICH REMAIN CLOSED FOR A LONG TIME 1.6. The Government had announced a scheme for the payment of monthly cash relief of Rs.250/- to workers of industrial units in Tamilnadu, which remain closed for a long time. The Government have approved 69 units, which satisfied the conditions laid down in the Scheme. So far, 8975 workers have been benefited under this Scheme. During the year 2003, a sum of Rs. 13,17,000/- has been disbursed to 880 workers. SPECIAL INDUSTRIAL TRIBUNAL 1.7. A special Industrial Tribunal has been constituted by the Government vide G.O. (D) No. 569, Labour & Employment Department, dated 19.07.2002 to hear and decide cases relating to wage increase and general demands of the Textile workers.

The Government have also referred the dispute relating to reduction in daily wages of plantation workers and other service conditions to the Special Industrial Tribunal for early disposal. COMPUTERISATION OF THE DEPARTMENT 1.8. Computers have been installed in the Head Office, Welfare Boards and other District offices. During this year, a sum of Rs.10.20 lakhs has been sanctioned in Part-II Scheme for the purchase of new Computers including Fax for this Department. A separate Website for the Labour Department has been created. This Website provides of Labour related information such as Government Orders of Minimum Wages, Payment Wages, etc., and the activities of all Welfare Boards and Tamilnadu Institute of Labour Studies. LABOUR COURTS 1.9. There are 10 Labour Courts throughout the State, which adjudicate on matters specified in the Second Schedule to the Industrial Disputes Act, 1947. 1.10. There is also an Industrial Tribunal with its Head quarters at Chennai. The Industrial Tribunal can adjudicate on matters specified in the Second and Third Schedule to the Industrial Disputes Act, 1947. LOK ADALAT 1.11. To settle workmen’s claims pending under the Workmen’s Compensation Act, 1923

in an expeditious and effective manner, the Labour Department in co-ordination with the Tamilnadu State Legal Services Authority has constituted the Lok Adalat. During the year 2003, 29 cases have been disposed and a compensation amount of Rs.41,04,198/- has been ordered by the Lok Adalat.

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CHAPTER – 2

ENFORCEMENT

2.1. Enforcement of labour legislations is an important activity of Labour Department. Since Independence, in addition to Industrial Disputes Act, a number of other laws have been enacted by Parliament and the State Legislature to protect rights of workers and provide for their welfare. Many of the laws are being enforced by the Labour Department. They are briefly discussed below:- THE TAMILNADU SHOPS AND ESTABLISHMENTS ACT,1947 2.2 There are 3,45,507 Shops and establishments in the State. During the year 2003, 3,81,829 inspections were made. In all, 50,102 cases were disposed, out of which 31,654 cases were compounded and a sum of Rs.18,27,410/- was realized by the Department. Remaining 18,448 were filed in the Court and a sum of Rs.75,570/- was levied as fine. During the quarter ended 31.03.04, 88,923 inspections were made. In all, 8,508 cases were disposed, out of which 7,475 cases were compounded and a sum of Rs.5,48,822/- was realized by the Department. Remaining 1,033 were filed in the Court and a sum of Rs.13,375/- was levied as fine. THE TAMILNADU CATERING ESTABLISHMENTS ACT, 1958 2.3. There are 29,772 catering establishments in the State. During the year 2003, a sum of Rs.11,98,355/- has been collected as registration fee from the employers of catering establishments. 43,208 inspections were made, 3,670 cases were compounded, a sum of Rs.2,97,050/- was collected by the department as compounding fee and a sum of Rs.25,090/- was levied as fine by the Courts in 1159 cases. During the quarter ended 31.03.04, a sum of Rs.3,01,307/- has been collected as registration fee from the employers of catering establishments, 9,842 inspections were made, 917 cases were compounded and a sum of Rs.75,035/- was collected by the department as compounding fee. A sum of Rs. 6,905/- was levied as fine by the Courts in 327 cases. THE TAMILNADU INDUSTRIAL ESTABLISHMENTS (NATIONAL AND FESTIVAL HOLIDAYS) ACT, 1958 2.4. During the year 2003, totally 1,09,253 inspections were made, 6,678 cases were disposed of, out of which 6,335 cases were compounded and a sum of Rs.3,28,254/- was collected as compounding fee. 343 cases were disposed by the Courts and a sum of Rs.11,885/-was levied as fine. During the quarter ended 31.03.04, 29,629 inspections were made, 2,258 cases were disposed of, out of which 1,977 cases were compounded and a sum of Rs.1,07,060/- was collected as compounding fee. 281 cases were disposed by the Courts and a sum of Rs.2,745/-was levied as fine. THE TRADE UNIONS ACT, 1926 2.5. During the year 2003, 297 Trade Unions were registered and a sum of Rs.46,175/- was collected as fees for registering the Trade Unions and as Amendment fees. During the quarter ended 31.03.04, 101 Trade Unions were registered and a sum of Rs.11,950/- was

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collected as registration and Amendment fees. The total number of Trade Unions registered upto 31.03.04 is 9,715. THE PAYMENT OF WAGES ACT, 1936 2.6. During the year 2003, out of 210 claims, 149 claims were disposed and a sum of Rs.26,64,364/- was ordered to be paid as wages to the claimants and during the quarter ended 31.03.04, out of 68 claims, 35 claims were disposed of and a sum of Rs.30,13,476/- was ordered. THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS) ACT, 1946 2.7. During the year 2003, Standing Orders of 326 Industrial Establishments were certified and during the quarter ended 31.03.04, 84 Standing Orders were certified. THE PLANTATIONS LABOUR ACT, 1951 2.8. The total plantation area in Tamilnadu is 61,439 hectares and the total number of workers is 91,211. (36,496 are men and 54,715 are women). Total number of registered plantations is 687. During the year 2003, 5,050 inspections were made. 194 cases were disposed and a sum of Rs.74,700/- was levied as fine by Courts. During the quarter ended 31.03.04, 906 inspections were made, 39 cases were disposed, out of which a sum of Rs.11,950/- was levied as fine by Courts. THE WORKING JOURNALISTS AND OTHER NEWSPAPER EMPLOYEES (CONDITIONS OF SERVICE AND MISCELLANEOUS PROVISIONS) ACT, 1955 2.9. During the year 2003, 129 inspections and during the quarter ended 31.03.04, 27 inspections were made by the Enforcement officers to enforce the above Act. THE MOTOR TRANSPORT WORKERS ACT, 1961 2.10. The number of registered motor transport undertakings at the end of the year 2003 is 1867. The number of workers employed in the said undertakings is 1,18,382. A sum of Rs.4,42,781/- was collected by way of registration fee and other charges. 6029 inspections were made, 400 cases were disposed through Courts resulted in realization of fine amount of Rs.1,22,440/- The number of motor transport registered during the quarter ended 31.03.04 is 17. The number of workers employed in the said undertakings is 119. A sum of Rs.80,047/- was collected by way of registration fee and other charges. 1,466 inspections were made and 103 cases were disposed through Courts by realization of fine amount of Rs.36,350/- BEEDI AND CIGAR WORKERS (CONDITIONS OF EMPLOYMENT) ACT, 1966 2.11. At the end of the year 2003, there were 2020 Registered Beedi establishments in the State. 4,774 inspections were made, 646 cases were disposed by Courts and a sum of Rs.55,950/- was levied as fine. 2,48,722 Beedi workers are provided with photo identity cards. During the quarter ended 31.03.04, thirty Beedi establishments were registered. 1,349 inspections were made, 144 cases were disposed by Courts and a sum of Rs.26,275/- was levied as fine. INTEGRATED BEEDI WORKER’S HOUSING SCHEME IN TAMILNADU 2.12. The Government of India’s Integrated Housing Scheme for Beedi Workers is being implemented in Tamil Nadu. As per this Scheme, the Central Government is giving Subsidy

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to each Beedi Worker upto a sum of Rs.20,000/- or 50% of the construction cost of a house whichever is less. Under this Scheme, the Government have decided to construct 10,000 houses within 5 years and to give Rs.5,000/- for every house by way of State Subsidy. The estimated cost of each house is Rs.40,000/-, out of which Rs.25,000/- will be the amount of Subsidy given by the Central and State Governments and Rs.15,000/- will be borne by each beneficiary.

Accordingly, for the year 2002-2003, the Government of Tamil Nadu have sanctioned a sum of Rs.18.75 Lakhs as State Subsidy at the rate of Rs.5,000/- per house for 375 houses in Tiruvallur, Vellore, and Trichy Districts and the Subsidy amount has been disbursed to 277 beneficiaries. Out of 277, the Government of India have sanctioned their Subsidy for 160 beneficiaries. A sum of Rs.14.56 Lakhs has been received from Government of India for 160 beneficiaries being the first / second instalment as Government of India's Subsidy.

Likewise, for the year 2003-2004, the Government of India have given Administrative Approval for 124 houses and the State Government have sanctioned Rs.6.20 Lakhs as Subsidy at the rate of Rs.5,000/- per house for 124 houses in Namakkal and Erode Districts. Out of 124, the State Subsidy has been disbursed to 92 beneficiaries and orders for Government of India's Subsidy are awaited.

Apart from this, 2715 beneficiaries have been identified during the year 2003-2004 and a proposal for construction of 2715 houses has been sent to Government of India requesting Rs.5.43 Crores as Subsidy. On receipt of Administrative Approval from the Government of India, the State Subsidy will be sanctioned to the beneficiaries. For the year 2004-2005, the process of identification of 2786 beneficiaries is under progress. CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970 2.13 During the year 2003, 3,029 inspections were made. 120 establishments were

registered as Principal Employers and 172 contractors were issued licenses and during the quarter ended 31.03.04, 605 inspections were made, 24 establishments were registered as Principal Employers and 66 contractors were issued licenses.

THE TAMILNADU INDUSTRIAL ESTABLISHMENT (CONFERMENT OF PERMANENT STATUS TO WORKMEN ) ACT, 1981 2.14. During the year 2003, 803 applications were disposed and 1187 workers were benefited and during the quarter ended 31.03.04, 50 applications were disposed and 157 workers were benefited. THE STANDARDS OF WEIGHTS AND MEASURES (ENFORCEMENT) ACT,1985 2.15. During the year 2003, 8,44,285 inspections were made, 30,141 cases were disposed of out of which 30,050 cases were compounded and fee amount of Rs. 61,90,792/- was collected by the Department. 91 cases were disposed by Courts and a sum of Rs. 31,175/- was levied as fine. During the quarter ended 31.03.04, 1,63,275 inspections were made, cases disposed were 12,379 out of which 12,364 cases were compounded and a sum of Rs.26,76,794/- was collected as compounding fee by the Department. 15 cases were disposed by Courts and a sum of Rs.15,660/- was levied as fine.

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STATE LABOUR ADVISORY BOARD 2.16. The State Labour Advisory Board is functioning under the Chairmanship of the Hon’ble Minister for Labour with the representatives of Managements, Trade Unions and Government officials. It is a High Level Tripartite Committee. The Board discusses the issues concerning labour and makes suggestions to Government in framing of Labour Policy.

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CHAPTER- 3

MINIMUM WAGES

3.1 During the year 2003, the minimum rates of wages were revised for the

following employments: 1. Food Processing Industry 2. Tobacco (Beedi Rolling) Manufactory 3. Bricks & Tiles Manufactory 4. Tobacco (Scented and Chewing Tobacco) Manufactory 5. Tobacco (Snuff Industry) Manufactory 6. Rice Mills, Flour Mills & Dhall Mills 7. Auto Rickshaws & Taxis 8. Public Motor Transport 9. Sea Food Processing Industry 10. Soap Manufactory 11. Coffee Curing Works 12. Coir Manufactory

3.2 During the year 2003, the Government have issued Preliminary Notifications regarding the revision of minimum wages for the following employments:-

1. Construction or maintenance of Roads or in Building Operation 2. Cinema Industry. 3. Silk Twisting Industry 4. Cotton Ginning, Pressing and Cotton Waste Industry 5. Coconut Peeling Industry 6. Any Oil Mill 7. Cashewnut Industry 8. Hotels and Restaurants 9. Tanneries and Leather Manufactory 10. Bakeries and Biscuit Manufactory 11. Shops and Commercial Establishments 12. Loading and Unloading Operations 13. Printing Presses 14. Security Guards 15. Tailoring Industry 16. Sericulture 3.3 During the year 2003, the Government vide G.O. (2D) No.34, Labour &

Employment Department, dated 05.05.2003, have fixed the minimum rates of wages for the first time in respect of the Employment in Coaching Academies, i.e., Tutorial Colleges, Technical Institutes, Primary or Nursery Schools, English Medium Schools run on commercial lines without Government grant other than those run by Government and Local Bodies. The Tamilnadu Tamil & English Schools Association, Saligramam, Chennai-93 has filed a Writ Petition (W.P. No. 6858/2004) in the High Court of Madras praying to stay the operation of all further proceedings pursuant to the issuance of the above said G.O. pending disposal of the above Writ Petition. The High Court, Madras, has granted interim stay in W.M.P. No. 8082/2004 in W.P. No. 6858/04 in its order, dated 19.03.2004.

3.4 During the quarter ended 31.03.04, Government have issued Preliminary Notifications in respect of the following employments.

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1. Automobile Workshop 2. Carpentary & Blacksmithy 3. Salt Pans

3.5. During the year 2003, the Government have constituted an Advisory Committee for the employment in Leather Goods Manufactory. 3.6. During the year 2003, 2171 claims were disposed of and a sum of Rs.2,04,19,554/- was ordered to be paid to the claimants. During the quarter ended 31.03.04, 794 claims were disposed of and a sum of Rs.8,18,20,068/- was ordered.

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CHAPTER- 4

SOCIAL SECURITY THE WORKMEN’S COMPENSATION ACT, 1923 4.1. During the year 2003, 3,186 claims were filed, and 3,449 claims (including those filed during the previous years) were disposed of. A sum of Rs. 16,97,67,033/- was ordered as compensation. During the quarter ended 31.03.04, 1,061 claims were filed, 1,069 (including cases filed during the previous years) claims were disposed of and a sum of Rs. 5,93,17,017/- was ordered to be paid as compensation to the claimants. THE MATERNITY BENEFIT ACT, 1961 4.2. The Act provides for maternity benefits like 12 weeks leave for childbirth, one-month medical leave on Medical Certificate, 6 weeks leave for miscarriage. This Act also provides for the payment of medical bonus of Rs. 250/- if no pre-natal confinement and post-natal care is provided by the employer free of cost. THE PAYMENT OF BONUS ACT, 1965 4.3.This Act applies to persons employed in every factory and establishment where 10 or more persons are employed. The establishments covered under the Act shall continue to pay bonus even if the number of employees fall below 10 subsequently. They have to pay minimum bonus (i.e.) 8.33% even when they have incurred loss. Maximum bonus payable under the Act is 20%. THE PAYMENT OF GRATUITY ACT, 1972 4.4. During the year 2003, 2,381 claims were disposed of and a sum of Rs. 3,80,02,957/- was ordered to be paid. During the quarter ended 31.03.04, 432 claims were disposed of and a sum of Rs.63,410/- was ordered to be paid to the claimants. THE EQUAL REMUNERATION ACT, 1976 4.5. During the year 2003, 11,586 inspections have been conducted, 4 prosecutions were launched and a fine amount of Rs. 2000/- has been realized. During the quarter ended 31.03.04, 3,439 inspections have been conducted and prosecution has been launched in 1 case and a fine amount of Rs.400/- has been realized. THE TAMILNADU PAYMENT OF SUBSISTENCE ALLOWANCE ACT, 1981. 4.6. During the year 2003, 406 claims were disposed of and a sum of Rs. 52,90,139/- was ordered to be paid. During the quarter ended 31.03.04, 106 claims were disposed of and a sum of Rs. 73,61,113/- was ordered to be paid to the claimants. CITIZENS’ CHARTER 4.7. The Commissionerate of Labour has published a Citizen’s Charter. This contains details of schemes administered by Labour Department and also the manner in which the benefits of laws and schemes can be availed by the public.

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CHAPTER – 5

CHILD LABOUR

ERADICATION OF CHILD LABOUR IN TAMILNADU

ACTION PLAN

5.1 The Hon’ble Chief Minister had announced a 15-point programme for making Tamilnadu the best State in the Country in every sphere. Eradication of child labour is one of the 15 points. To achieve this goal, an Action Plan for Eradication of Child Labour in Tamilnadu has been launched by the Government as per G.O.(Ms).No.53, Labour and Employment Department, dated 12.5.03. This State Action Plan aims at eradication of child labour in hazardous employments by the year 2005 and in non-hazardous employments by the year 2007.

Government accorded sanction for the formation of a State Level Child Labour Rehabilitation-cum-Welfare Society and allotted a grant of Rs.25 lakhs in 2003-2004 to the Society to implement the Action Plan. The State Child Labour Rehabilitation-cum-Welfare Society was formed and registered under the Societies Registration Act on 21.10.03. In all the Districts, District Child Labour Rehabilitation-cum-Welfare Societies have been formed. 5.2. STRATEGIES TO ACHIEVE THE GOALS OF THE ACTION PLAN

a. Survey and identify working children. b. Rescue child workers and admit them in special Schools. c. Mainstream the children from special schools into formal schools. d. Conduct special drives to en-roll in schools all children in the age group of 5 to 7

years. e. Strengthen formal education. f. Enforce strictly laws prohibiting child labour. g. Generate social awareness that children should go to school and not to work. h. Target implementation of development schemes to benefit families of rescued child

labour. i. Achieve convergence of services of departments and of NGOs. j. Reward Panchayats and Municipalities which become free of child labour.

SURVEY

5.3 As per the recommendations made in Case No.3295/03 of the State Human Rights Commission, a State-wide survey on child labour was conducted during March 2003 and 70,344 child labourers were identified. The survey details are available at www.tnchildlabour.tn.gov.in 5.4. REHABILITATION OF CHILD LABOUR

District Collectors have been asked to enroll all the Children identified in the age

group 5 to 8 years immediately Children in the age group 9 to 14 years are being enrolled in NCLP special schools/

SSA Alternate Day Schools/Residential Camps/Bridge Course.

NATIONAL CHILD LABOUR PROJECT IN TAMILNADU 5.5 National Child Labour Projects are functioning in Thoothukkudi, Pudukkottai, Trichy, Coimbatore, Salem, Vellore, Dharmapuri and Virudhunagar Districts from 1995-96 and in

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Tirunelveli District since the year 2000. Now, Chennai, Erode and Dindigul Districts have been sanctioned the projects. Proposals have been sent to Government of India to include Theni and Krishnagiri Districts also. FUNCTIONING OF SPECIAL SCHOOLS 5.6 20,330 child labourers are presently studying in 484 special schools. A teacher, craft teacher and a clerk manage each school. DPEP and DIET staff train the teachers. The children are taught at three levels. Children are taught through play way method and they are mainstreamed into formal education. Special schools function smoothly with dedicated team of teachers. Nutritious meal is provided to the children of the special schools. Stipend of Rs.100/- p.m. has been given to each child. Free bus passes and uniform are also provided to special school children. New NCLP guidelines are being adopted from 2004-2005 onwards. PRE-VOCATIONAL TRAINING 5.7 Pre-Vocational Training is imparted to the special school children. Tailoring, Fabric painting, wire basket making, woolen work, handicrafts, candle making, chalk piece making, mushroom cultivation, soft toy making, book binding, bead work, basket making, palm leaf products, fibre products, house wiring, carpentry and doll making are taught to children. Children are given facilities to play indoor and outdoor games. MAINSTREAMING OF CHILDREN INTO FORMAL SCHOOLS 5.8 There is a close coordination with the State Education Department for facilitating the enrollment of children passing out of the special schools to the formal schools. Instructions have been issued to school authorities to admit special school children into 6th std once they finish the stage equivalent to 5th std syllabus. So far 8432 children have been mainstreamed into formal schools.

INDUS PROJECT 5.9 The Government of India and the United States Department of Labour had signed a joint agreement namely, “Enhanced Indo-US Co-operation on Eliminating Child Labour” in August 2000. In pursuance to this, a project viz, INDUS PROJECT has been developed which is to be funded by the Government of India and US Government. This Project strategy envisages complete elimination of child labour on a priority basis, through multi sectoral services in the identified districts of Kancheepuram, Thiruvannamalai, Namakkal, Virudhunagar and Thiruvallur. The project is to be launched shortly. ENFORCEMENT OF LAWS REGARDING ERADICATION OF CHILD LABOUR 5.10 The provisions prohibiting employment of children under the following labour enactments are implemented in the State by the Inspectors of Labour Department, and Inspectorate of Factories

1. The Child Labour (Prohibition & Regulation) Act 1986 2. The Factories Act 1948 3. The Motor Transport Workers Act 1961 4. The Beedi and Cigar Workers(Conditions of Employment)Act 1966 5. The Tamilnadu Shops and Establishments Act 1947 6. The Tamilnadu Catering Establishments Act 1958

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After the initiation of “Action Plan”, Special drives (surprise, special inspections and joint raids) were made by the Enforcement Machinery of both the Labour and Factories Department for eradication of Child Labour. As a result, 1,79,238 establishments/factories were inspected by the enforcement officers and 1650 prosecutions were launched, and 268 convictions secured against the erring employers during 2003. During the year 2002, 413 prosecutions were launched and 108 convictions secured against erring employers. DISTRICT CHILD LABOUR PREVENTION SQUADS 5.11 All the District Collectors have been requested to form a squad in their districts with the Inspectors of Labour / Factories, Authorized Volunteers, NGOs and the Civil Assistant Surgeon to undertake effective inspections and submit reports. Special Squads have been formed in all the Districts of the State. These squads organize frequent joint raids. AWARENESS GENERATION ANTI CHILD LABOUR DAY 5.12 June 12 was observed as “Anti Child Labour Day” and on that day activities were held in all the districts to create awareness among the public about the problem of child labour and the steps needed to eradicate this practice. The activities included rallies, public meeting, media campaign, competition, etc. Similar activities were also taken up on Children’s Day, November 14 to repeat the message for greater importance.

The following books/magazines were published by the State Child Labour Rehabilitation cum Welfare Society:

1. Action Plan for Eradication of Child Labour 2. Hand book for Enforcement Officials 3. Booklet on Children’s Day Celebration 4. Brochure on INDUS Project 5. Stickers on Child Labour Eradication.

5.13 During the quarter ended 31.03.04, a Conference was held with 500 Women Self Helf Groups on 08.03.04 on “International Women’s Day” at Chennai. This was organized to make women conscious of their rights and also to stress their role in Eradication of Child Labour. AWARENESS GENERATION FOR EMPLOYERS 5.14 The enforcement officials have been instructed to conduct meetings with the Employers' Associations/Organizations, Trade Union leaders, Hotel owners, Traders etc., for creating awareness on the issue of child labour. The enforcement officials have been conducting meetings with the Employers Associations and consequent to which the Employers’ Associations have been issuing circulars to their members not to employ children in their establishments. In particular, meetings were conducted with Silver Chain Manufacturers Association in Salem, Beedi Manufacturers Associations in Tirunelveli and Vellore, Silk weavers in Kancheepuram and Match and Fire works Manufacturers Associations in Virdhunagar.

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TRAINING 5.15 District level workshop for enforcement officials and District Level Officers of Education, Revenue, Rural Development and other departments in 27 districts was conducted in the month of May 2003. They were exposed to laws/enactments, different concepts and ideas, programmes and activities in the eradication of child labour.

State Level Workshop for Convergence of Services of various Departments for

Elimination of Child Labour was conducted on 26th June 2003. This workshop emphasized the convergence among various Government Departments, Non Governmental Organizations, Employers, Trade Unions etc., TRAINING OF TRAINERS PROGRAMME

5.16 During the quarter ended 31.03.04, Training of Trainers (for Enforcement Officials) was conducted from 15.03.04 to 19.03.04 at Chennai. This training was given to the Inspectors of Labour and Inspectors of Factories in order to create trainers, who will in turn conduct training programmes in the districts.

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CHAPTER – 6

WELFARE BOARDS TAMILNADU LABOUR WELFARE BOARD. 6.1. The Tamil Nadu Labour Welfare Board which was constituted under the provisions of Tamil Nadu Labour Welfare Fund Act, 1972 has been executing several Labour Welfare Schemes for the benefit of the workers and their dependants. The Board is receiving contributions from the employers of the Factories, Plantations, Motor Transport undertakings and Shops and Establishments and Hotels. The employers of these establishments are contributing yearly Rs.10/- per worker and the workers of these establishments are also contributing Rs.5/- per year. The Government is also contributing Rs.5/- per employee per year. The Board is also receiving fine amounts imposed by the Courts on the employers for the contravention of the Labour Acts.

Statement showing Labour Welfare Fund Collection for the years 2002-2003 & 2003-

2004

2002-2003 2003-2004 Labour Welfare Fund 3,73,92,772 3,74,81,894 Court Fine 1,02,33,464 58,05,833 Total 4,76,26,236 4,32,87,727

6.2. The details of the benefits extended are given below:-

a) Book allowance ranging from Rs.35/- to Rs.150/- is sanctioned to the children of the workers for pursuing their studies from 9th standard to Master Degree Course.

b) Scholarship is given to the children of the workers for pursuing their education at the

rates as indicated below:-

Per year 1. Bachelor Degree in Medical Rs.1,200/- 2. Bachelor Degree in Engineering Rs.1,200/- 3. Bachelor Degree in Law Rs.1,200/- 4. Bachelor Degree in Agriculture Rs.1,200/- 5. I.T.I. Rs.500/- 6. Higher Secondary Rs.600/- 7. Diploma in Engineering Rs.720/- 8. Diploma in Medical Rs.720/-

c) Cash Awards of Rs.1000/- and Rs.500/- are being awarded to the children of the

workers who come first and second in 10th and 12th examinations in each Educational District .

d) Reimbursement of cost of spectacles upto Rs.200/- is given to the workers on

production of Medical Certificate.

e) Workers' children who passed typewriting and shorthand are reimbursed at Rs.15/- per month of study and Government prescribed examination fees.

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f) Reimbursement of cost of Hearing Aids upto Rs.1000/- are given to hearing-impaired

workers and their children. Similarly Artificial Limbs cost are also reimbursed and Three Wheelers are supplied to the Handicapped Workers and their children.

g) When a worker dies in harness, his dependent is paid Rs.500/- towards funeral

expenses. During the year 2003, the Board has given benefits to the about 6103 workers / nominees to the extent of Rs.21,06,996/- During the quarter ended 31.3.2004 about 1,082 workers and their dependents were given benefits to the extent of Rs.7,48,606/-. 6.3. The Tamilnadu Labour Welfare Board is running 71 Labour Welfare Centres throughout the state in which tailoring classes, Creches and Reading rooms are provided. 19 Creches and 63 Reading Rooms are functioning in the Labfour Welfare Centres. 6.4. The children of the workers in the age group of 2 to 5 years are admitted in the creches. Nutritious mid-day meals and milk are provided daily. Eggs and fruits are also provided twice in a week. Two sets of terricotton uniform are also supplied to the children admitted in the creches. The children are also medically checked-up by the Doctors periodically. 6.5. Holiday Homes are functioning in Mamallapuram, Courtallam and Valparai for the stay of the workers along with their family members at a nominal rate. During this year, 5,678 workers and their dependents availed this facility. 6.6. In Chennai, a rest house for the stay of the Trade Union leaders is functioning in DMS Campus at Teynampet. A nominal rent of Rs. 20/- per day per worker is charged. During this year 5,199 workers availed this rest house for their stay. 6.7. Separate T.B. Wards have been provided in Government Hospitals in Tambaram T.B. Sanatorium (26 Beds), Asaripallam (30 Beds), Tirupur (26 Beds), Austinpatti (20 Beds) and Kilpennathur (24 Beds) for the benefit of the workers. 6.8. A monthly magazine by name “Uzhaippavar Ulagam” is published by this Board for the benefit of the workers, employers and public. 3,286 subscribers are getting this magazine. THE TAMILNADU CONSTRUCTION WORKERS WELFARE BOARD 6.9. Upto the year 2003, the number of construction workers who have registered their names with this Board is 5,19,870 and a sum of Rs.1,29,96,750/- has been collected as Registration Fee at the rate of Rs.25/- per worker. During the quarter ended 31.03.04, 16,360 construction workers have registered their names with this Board and a sum of Rs.4,09,000/- has been collected as Registration Fee. Identity Cards are issued to all registered construction workers free of cost. Every construction worker whose name has been registered shall renew his/her registration once in two years by paying Rs.10/- to the Board as Renewal Fee 6.10. The Board also receives contribution from all persons and agencies taking up construction work at the rate of 0.3% of the estimated cost. This is collected by local bodies while approving the building plan and remitted to this Board. During the year 2003, a sum of Rs.20,15,21,855/- has been received as contribution. During the quarter ended 31.03.04, a sum of Rs.6,54,58,827/- has been received as contribution .

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SCHEMES IMPLEMENTED BY THE BOARD GROUP PERSONAL ACCIDENT INSURANCE SCHEME 6.11 All Registered Construction Workers have been insured under Group Personal Accident Insurance Scheme. Every year, the premium for renewal to the insurance company is paid by the Board. 6.12. The registered Construction Workers are entitled to the following benefits.

BENEFIT AMOUNT (Rs.)

A Accident death 1,00,000/-

1.

B Loss of Limbs, eyes, etc.

upto 1,00,000/-

2 Natural Death 10,000/- 3 Funeral Expenses 2,000/-

Educational Assistance (for Two Children of the Employee) (i) 10th Std

Pass 1,000/-

(ii) 12th Std Pass

1,500/-

Regular Degree Course For Each Academic Year 1,500/-

(iii)

For the Hostel Students 1,750/- Regular Post Graduate Course

For Each Academic Year 2,000/- (iv)

For the Hostel Students 3,000/- Law, Engineering, Medicine, Veterinary Medicine & allied Professional course For Each Academic Year 2,000/-

4

(v)

For the Hostel Students 4,000/- Post Graduate Professional Course

For Each Academic Year 4,000/-

(vi)

For the Hostel Students 6,000/- I.T.I. or Polytechnic Education

For Each Academic Year 1,000/-

(vii)

For the Hostel Students 1,200/- 5 Marriage Assistance (Two times) 2,000/- 6 Maternity Assistance (Two times) 2,000/-

7. Reimbursement of cost of Spectacles (1000 workers per year on first-cum-first serve basis)

250/-

6.13. During the year 2003, totally, a sum of Rs. 3,86,66,750/- has been disbursed to the 12,988 beneficiaries under the various welfare schemes. During the quarter ended 31.03.04, a sum of Rs. 1,54,65,275/- has been disbursed to 4,312 beneficiaries.

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TAMILNADU MANUAL WORKERS SOCIAL SECURITY AND WELFARE BOARD AND OTHER WELFARE BOARDS 6.14 The Government have formed the following Welfare Boards for the workers in the Unorganized Sector.

1. Tamilnadu Manual Workers Social Security and Welfare Board. 2. Tamilnadu Auto Rickshaws and Taxi Drivers Social Security and Welfare Board. 3. Tamilnadu Washermen Social Security and Welfare Board. 4. Tamilnadu Hair Dressers Social Security and Welfare Board 5. Tamilnadu Tailoring Workers Social Security and Welfare Board. 6. Tamilnadu Palm Tree Workers Social Security and Welfare Board. 7. Tamilnadu Handicraft Workers Social Security and Welfare Board. 8. Tamilnadu Footwear and Leather Goods Manufacturers and Tannery Workers

Social Security and Welfare Board. 9. Tamilnadu Artists Social Security and Welfare Board. 10. Tamilnadu Handlooms and Handlooms Silk Weaving workers Social Security and

Welfare Board.

AMALGAMATION OF BOARDS

6.15. Observing that it would not be economically, administratively and financially viable to have separate welfare boards for separate employments for administering similar schemes, Government have decided to amalgamate the Tamilnadu Auto Rickshaw and Taxi Drivers Welfare Board and 8 other Welfare Boards with the Tamilnadu Manual Workers Social Security and Welfare Board. Statutory process for amalgamation is in the final stage. 6.16 A manual worker has to pay one time contribution of Rs.100/- at the time of registration and has to pay Rs.10/- once in two years for renewal of registration. 6.17 Upto the year 2003, the total number of workers registered is 6,42,882. and a sum of Rs.60,32,051/- has been collected as registration fee. Upto the quarter ended, the total number of workers registered is 6,54,616 and a sum of Rs. 18,56,145/- has been collected as registration fee. 6.18 A major source of revenue is the recovery of 1% on Motor Vehicle Tax paid by Transport vehicles. This is collected by Regional Transport Officers while collecting Motor Vehicle Tax and remitted to this Board. During the year 2003, a sum of Rs.5,46,11,987/- has been received as contribution and during the quarter ended 31.03.04, a sum of Rs.1,14,45,769/- has been received as contribution to the Board. 6.19 The registered manual workers in the above said Boards are entitled to the following benefits.

BENEFIT AMOUNT (Rs.)

A Accident death 1,00,000/- (i) Both Hands (ii) Both Feet (iii) One Hand & One Foot

B Loss of

(iv) Total and irrecoverable loss of sight both Eyes

1,00,000/-

1.

C Loss of One Hand, One Foot or Loss of Sight in One Eye

50,000/-

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D Permanent Partial Disablement Percentage as assessed by

Doctor 2 Natural Death 10,000/- 3 Funeral Expenses 2,000/-

Educational Assistance (for Two Children of the Employee) (i) 10th Std

Pass 1,000/-

(ii) 12th Std Pass

1,500/-

Regular Degree Course For Each Academic Year 1,500/-

(iii)

For the Hostel Students 1,750/- Regular Post Graduate Course

For Each Academic Year 2,000/-

(iv)

For the Hostel Students 3,000/-

4

(v) Law, Engineering, Medicine, Veterinary Medicine & allied Professional course For Each Academic Year 2,000/- For the Hostel Students 4,000/-

Post Graduate Professional Course

For Each Academic Year 4,000/-

(vi)

For the Hostel Students 6,000/- I.T.I. or Polytechnic Education

For Each Academic Year 1,000/-

(vii)

For the Hostel Students 1,200/- 5 Marriage Assistance (Two times) 2,000/- 6 Maternity Assistance (Two times) 2,000/-

6.20. During the year 2003, totally, a sum of Rs. 84,16,200/- has been disbursed to the 2,866 beneficiaries and during the quarter ended 31.03.04, a sum of Rs. 60,91,000/- has been disbursed to 1,565 beneficiaries under the various welfare schemes.

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CHAPTER- 7

THE TAMILNADU INSTITUTE OF LABOUR STUDIES 7.1. This Institute conducts Training Programmes, Seminars, Refresher Courses, Orientation Programmes, etc., periodically to suit the needs of supervisory and managerial personnel of private and public sector industries, Trade Unionists and officials of Labour & Factories Departments. This Institute also offers a Part-Time one-year course called " Post Graduate Diploma in Labour Administration” (P.G.D.L.A.) and two full time academic courses viz. “B.L.M” and “M.L.M”. Both these courses are affiliated to the University of Madras. As advised by the University, the courses have been redesignated as B.A. (Labour Management) and M.A. (Labour Management). 7.2. The number of candidates who have successfully completed the above academic courses during this year, is given below: -

B.L.M. 47 M.L.M. 35 P.G.D.L.A. 27

TOTAL 109 7.3. During the year 2003, 41 seminars / training programmes were conducted for the workers, managerial persons and traders in Tamilnadu and nearly 2,362 participants were benefited and during the quarter ended 31.03.04. 19 seminars / training programmes were conducted and nearly 846 participants were benefited through these training programmes.

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CHAPTER-8

INSPECTORATE OF FACTORIES

ADMINISTRATION 8.1 The Inspectorate of Factories is playing a key role in protecting the safety, health and welfare of the workers in organized factories. This Department is enforcing the Factories Act, 1948 and 13 other Labour Enactments in the State to achieve the above policy. The administration and enforcement of various Labour Laws by the Inspectorate is under the overall charge of the Chief Inspector of Factories. This Inspectorate has been carrying out broadly the following two functions:

i) Regulatory functions (Implementation of Acts); ii) Health, Safety, Training and Development functions.

REGULATORY FUNCTIONS Inspections 8.2 The Factories Act, 1948 is a highly technical Act intended to secure the safety, health and welfare of the workers in organized factories. With the existing officers, all efforts are taken to ensure the benefits of Labour Laws to the workers employed in all sections of factories. Factories not engaged in dangerous operations and certified as Small Scale Industries are inspected only once in a period of five years provided no complaints are received either from the workers or from the trade unions. All Industries engaged in dangerous operations, though certified as Small Scale Industries, are however inspected once in a period of six months so as to ensure health and safety. Match and Fire Works factories are inspected once in every three months because of the risk involved in the nature of work. In addition, special, holiday and check inspections are also undertaken for better monitoring of the safety, health and welfare provisions. By the effective measures taken by the Inspectorate of Factories through inspections, safe and good working environment is ensured for the workers in the factories. Squad Inspections 8.3 Fire Works manufacturing will be in peak before Deepavali festival as most of the crackers are manufactured and sold during this time only. Due to large-scale activities, there are chances for explosion and accidents in fire works during the season. So, apart from routine and regular inspections, special squads are formed to monitor the safe working conditions and safe methods of work during this season. By these squad inspections, no major fires and explosions have occurred in Sivakasi during the festival season, in 2003. Accidents 8.4 Because of constant and ceaseless efforts put in by the officers of this Factory Inspectorate by way of increased safety promotional activities like conducting safety surveys and safety courses, the number of accidents has declined even though the number of registered factories and workers have increased when compared with the previous year. The details of accidents during 2001, 2002, 2003 and 2004 (upto 31-03-2004) are given below:

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Year No. of Factories

No. of workers

Fatal Non-fatal

2001 31,343 12,23,060 37 2,140 2002 32,723 12,37,653 36 2,136 2003 34,071 12,56,120 35 1,908 2004 (Upto 31-03-04)

34,101 12,56,402 9 454

Complaint enquiry 8.5 Complaints received from the workers and Trade Union leaders are given top priority and they are enquired into immediately and suitable action taken to settle the grievances. In the year 2003, as many as 563 complaints have been received and all the 563 Complaints were enquired and disposed of. Further, during the quarter ended 31-03-2004, 127 complaints were received and all the 127 were enquired and disposed of. In addition, meetings with the Trade Union leaders are also conducted by the Joint Chief Inspector of Factories at Chennai and by Deputy Chief Inspector of Factories in the districts every month to sort out the grievances of the workers and the Trade Unions. The grievances expressed by them are enquired into immediately by the Inspectors concerned. Hazardous Process Industries 8.6 As per Schedule - I to the Factories Act, 1948, 29 processes have been listed as hazardous process industries wherein, if special care is not taken, the raw materials used therein are likely to cause material impairment to the safety and health of the persons engaged in or connected therewith or result in the pollution of the general environment. These factories are inspected with greater concentration to ensure operational safety. Among these, in certain chemical factories, uncontrolled developments in the industrial activity carried on by them may cause serious dangers to workers employed in the factory and also to the people living nearby, in addition to the adverse effect on environment. Such units have been classified as Major Accident Hazard Units and special care is taken by this Inspectorate to ensure operational safety in these factories. 120 units have been classified as MAH units in our State.

A Major Accident Hazard Control Cell was formed in the year 1988 at Headquarters headed by the Additional Chief Inspector of Factories. This Cell recommends suitable safety measures to the managements of Major Accident Hazard factories to prevent any industrial disaster and monitor the compliance of the suggestions given by this Cell.

Upto the year 2003, as many as 120 On Site Emergency Plans have been received from MAH Units and 99 were recorded subject to certain conditions. District Collectors have been nominated as the District Emergency Authority in respect of Off-site Emergency Plans and the Chief Inspector of Factories as the authority for the On-site Emergency Plans. Government in G.O. Ms. No.109, Environment and Forest Department, dated 23.04.1998 have constituted State, District and Local Crisis Groups to assess the Emergency Preparedness of MAH units and assist the State Government in planning emergency preparedness and mitigation of major chemical accidents in the MAH units in the State. The officers of this Inspectorate serve as Member Secretaries in the District Crisis Group, while the Chief Inspector of Factories is the Secretary of the State Crisis Group.

In order to assess and update the operational efficiency in the event of real

emergency, Mock Drills are conducted periodically in the factories under the supervision of the Officers of the Inspectorate of Factories. During the year 2003, 94 Mock Drills have been conducted. 8 more Mock Drills have been conducted upto 31-03-2004. In addition to

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the above measures, to ensure safety in the process, Safety Reports are called for from Hazardous Industries and are monitored by the Department of Inspectorate of Factories.

The Site Appraisal Committee has been constituted as per section 41A of the Factories Act for the purpose of advising the Government to consider the application for grant of permission for the initial location of the factories involving hazardous process. Site Appraisal Committee has considered six applications in the year 2003 and one application during the quarter ended 31-03-2004. Action is taken by this Inspectorate to monitor the conditions imposed by the Government, while approving the applications, thereby ensuring plant vicinity safety at the erection stage itself. Enforcement of Minimum Wages Act, 1948 8.7 Apart from the routine inspections, special efforts are taken to protect the wage conditions of the workers and special raids are conducted under Minimum Wages Act. More number of cases have been launched against the erring factory management and more number of claim petitions filed under Minimum Wages Act. During the year 2003, 131 prosecutions were launched and 102 Claim petitions were filed under the Act. During the quarter ended 31-03-2004, 17 prosecutions were launched and 6 claim petitions were filed. Child Labour Elimination 8.8 One among the provisions of Factories Act, strictly enforced by this Department is prohibition of Child Labour in Factories, as mandated under Section 67 of Factories Act, 1948. In filing prosecutions against the defaulting employers, the penal provisions under Section 14 and 15 of Child Labour (Prohibition and Regulation) Act, 1986 are invoked as punishment contemplated under these Sections are more deterrent than what is contemplated under Section 92 of Factories Act. In this way, 236 cases have been filed against the defaulting employers under Section 67 of the Factories Act, 1948 and fine amount of Rs.7,15,500/- have been realized during the year 2003. Moreover, during the quarter ended 31-03-2004, 34 cases have been filed and fine amount of Rs.1,94,000/- realised in regard to child employment. Apart from this, Squad inspections are conducted every month and concerted action is taken in this field to eliminate the child labour in hazardous industries. During the year 2003, 2,138 squad inspections have been conducted. 223 squad inspections have been conducted during the quarter ended 31-03-2004. Allied Acts 8.9 In addition to the above Acts, the Inspectorate of Factories is also enforcing Payment of Wages Act, National and Festival Holidays Act, Labour Welfare Fund Act, Payment of Subsistence Allowance Act, Contract Labour (Regulation and Abolition) Act, Tamil Nadu Industrial Establishments (Conferment of Permanent Status to Workmen) Act and other labour related enactments. HEALTH, SAFETY, TRAINING AND DEVELOPMENT Health Promotion Functions 8.10 A medical wing is functioning in this department to monitor the occupational health of the workers employed in Chemical factories, which have potential health risks to the workers. These Medical Officers conduct health surveys at periodical intervals to monitor the health of the workers and suggest both clinical and other preventive measures for them.

An Industrial Hygiene Unit is functioning in this Department to monitor the environment in chemical industries for the presence of chemical pollutants like Ammonia, Chlorine, Sulphur-di-oxide, Hydrogen-sulfide, etc. causing harm to the workers. It also

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assesses the clinical manifestations of these chemicals on the health of the workers and suggests preventive measures. The effects of physical agents like noise, dust, ventilation, etc. are also studied by Industrial Hygiene Unit. High noise level is a major problem in industries and the workers exposed to the noise pollution are susceptible to noise induced deafness and other psychological disorders. To combat the problem of noise pollution, the Inspectorate of Factories is taking concerted efforts. To measure the noise level in the various plants of the factory, the Inspectors have been provided with Sound Level Meters. The Inspectors are measuring the sound during their inspections to monitor the noise level in areas where workers are exposed to high noise level and are taking steps to safeguard the workers from exposure to high level noise. Testing and Safety Functions 8.11 With a view to reorient its activities in ensuring safety, health of workers and also the environmental safety, apart from regular enforcement of Factories Act, 10 Testing and Safety Divisions are functioning in the Inspectorate of Factories from 1988 onwards. These Testing and Safety Divisions are entrusted with the prime task of ensuring operational safety of the pressure vessels working at high pressures. These divisions are also vested with the responsibility of conducting training programmes at the unit level to create safety awareness both among the workers and the managements. Surveillance of safety performance of the accident prone factories is also taken up by them through periodical safety surveys. Medical surveillance on the health of the workers engaged in hazardous industries is taken up by 8 Assistant Civil Surgeons attached to the Testing and Safety Divisions. Presentation of State Safety Awards 8.12 To enthuse the managements for better safety performance, State Safety Awards are presented to the managements every year based on their performance in reducing accidents in their factories. For a better comparison, the factories are classified into 3 groups depending upon the man-hours worked and awards are presented based on factors like highest reduction in Accident Frequency Rate when compared with the previous year, Lowest Weighted Frequency Rate and Longest Accident Free Period in man-hours during the award year. Every year 90 managements are given first prize (Silver Shields) worth Rs.2,500/= each; 90 managements are given second prize (Silver Shields) worth Rs.1,500/= each.

Similarly, to encourage the workers in actively participating in the accident preventions, every year Shram Vir Awards, popularly styled as “Tamilaga Arasin Uyarntha Uzhaipalar Virudhu” in Tamil, are presented to the workmen for their outstanding and useful suggestions for the improvement of safety standards, working environments and increase in productivity. The State Safety Awards and Uyarntha Uzhaipalar Virudhu for the year 1998, 1999 and 2000 were distributed to the managements and workers respectively in the function held on 31-03-2003 at Chennai. 101 workers from various managements received Uyarndha Uzhaipalar Virudhu. 198 factory managements received State Safety Awards as follows :

Prize 1998 1999 2000 No. of factories which received Silver Shields worth Rs. 2500/- and Certificates as 1st Prize.

55

70

73

No. of factories which received Silver Shields worth Rs. 1500/- and

40

49

45

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Certificates as 2st Prize. No. of factories which received Certificates as 3st Prize.

33

30

38

Group Personal Accident Insurance Scheme 8.13 A Group Personal Accident Insurance Scheme has been formulated for the benefit of workers of Match and Fire Works Industries in Tamil Nadu. The Scheme is designed to give relief in case of death, loss of limbs, loss of eye-sight, etc., of the insured persons due to accidents. Accident Insurance is given to the insured persons on 24 hours basis and this is not confined to accidents arising out of or in the course of actual occupation alone. Under this Scheme, coverage for death is Rs.50,000/-. 1,09,633 workers in Match and Fire Works factories have been covered under this scheme upto 2002. In addition to this, during the year 2003, 21,315 workers and during the quarter ended 31-03-2004 4,996 workers in Match and Fire Works factories have been covered under this scheme. An amount of Rs.7,00,000 /= has been paid to the claimants, during 2003. TRAINING AND SEMINAR Safety Training Functions 8.14 In addition to the regulatory functions carried out in factories, the workers and managements need to be trained on the importance of safe work in the work environment, if accidents are to be avoided. Testing and Safety Division of this Department is carrying out this training function in the factories with specific concentration on factories reporting large number of accidents.

Training classes are periodically conducted in the factories to educate and inculcate safety awareness among workers and managements in the factory premises itself free of cost. These training classes are conducted in Tamil and they are welcomed by both the workers and managements as these training programmes have greatly helped in creating safety awareness both among workers and managements and in reduction of accidents. In the year 2003, as many as 272 programmes have been conducted benefiting 7,998 persons. During the quarter ended 31-03-2004, 92 Safety programmes have been conducted benefiting 3,194 workers. Training Centre at Sivakasi 8.15 The workers employed in Match and Fire Works Factories are handling many hazardous explosive chemicals without knowing as to how these should be handled safely. This has caused many accidents in those factories. So, a Training Centre headed by a Deputy Chief Inspector of Factories has been created in Sivakasi exclusively to apprise the workers on the safe methods to be adopted in handling, processing, transporting, storing of the chemicals and safe methods of working. This Training Centre has greatly helped in reduction of accidents in Match and Fire Works industries. During the year, 2003, as many as 71 training classes were conducted and 3124 workers in Match and Fire Works industries benefited. During the quarter ended 31-03-2004, 32 Classes were conducted and 1,073 workers benefited. Seminars 8.16 Apart from the training activities carried on by this department, the Department is also coordinating with the other non-Governmental voluntary organisations like National

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Safety Council involved in safety promotional activities for creating safety awareness among the managements and workers including contract workers. In future, the Inspectorate has also proposed to improve the participation of National Safety Council and other agencies like Loss Prevention Association of India in the furtherance of safety promotional activities. State Level High Power Tripartite Safety Committee and the State Level Task Force / Expert Committee 8.17 The State Level High Power Tripartite Safety Committee and the State Level Task Force / Expert Committee are functioning since 1988 with a full time member in the cadre of Chief Inspector of Factories. Hon’ble Minister for Labour is the Chairman of the State Level High Power Tripartite Safety Committee. Representatives from various Government Departments, Hazardous Industries and Trade Unions as well as Experts in the field of Chemical Industrial Safety are the Members. The tenure of this Committee has been extended upto 31-08-2004. Similarly, the Secretary to Government, Labour and Employment Department is the Chairman of the State Level Task Force / Expert Committee. Representatives from various Government Departments and Association of Industries as well as Experts in Industrial Safety are its Members. The Chief Inspector of Factories / Member Secretary functions as Member Secretary of this Committee. The tenure of this Committee has been extended upto 31-08-2004.

In conformity with the decision taken at the meeting of the State Level High Power Tripartite Safety Committee, sub-committees to study the Safety, Health and pollution aspects in Tanneries, Paper Industries, Sugar Distillaries and Breweries, Thermal Power Stations and for the MAH factories were constituted by the Government under the Chairmanship of the Chief Inspector of Factories/ Member Secretary duly appointing the experts who are in the field of safety, Health and Environment as members of the sub-committee. The sub-committees conducted study in the respective industries and submitted their reports to the Government. As directed by the Government, the recommendations of the sub-committees were communicated to the factories concerned for implementation.

Follow-up action on the minutes of the X meeting of the State Level Task Force/ Expert Committee held on 8.1.2004 under the Chairmanship of the Principal Secretary to Government, Labour and Employment Department was taken by the Chief Inspectorate of Factories.

In addition to the Sub-committees detailed above, the following sub-committees have been constituted under the Chairmanship of the Chief Inspector of Factories/ Member Secretary comprising of Members who are in the field of Safety, Health and Environment.

1) To give shape to the decision of the State Level High Power Tripartite Safety Committee and with a view to conduct rapid survey in the remaining MAH factories, Government have reconstituted the sub committee on MAH factories in G.O.Ms.No. 2, Labour and Employment Department, Dated: 03-01-2003.

The sub-committee visited several MAH factories, which are storing and handling LPG and conducted study. Based on the study, a safety schedule for liquified / compressed flammable gases to be framed under Rule 95 of the Tamil Nadu Factories Rules, 1950 has been prepared and it is under consideration of the Government.

2) Sub-committee on Textile Industries constituted in the G.O.Ms.No.3, Labour and Employment Department, Dated.7.1.2003 has completed its field visits in 30 Textile Mills and Processing Mills in the State. It has observed and collected necessary particulars for the

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improvement of Safety, Health and Environment in those industries. The report submitted by the Sub-Committee is under scrutiny of the Government.

3) Sub-Committee on Cement Industry reconstituted in G.O.Ms.No.8, Labour and Employment Department, Dated.14.1.2003 has conducted study by making field visits to 14 cement factories and has collected information / data apart from the field level observations on the aspects of Safety, Health and Pollution. The report is under finalization. State Level Audit Cell 8.18 Based on the recommendations of the State Level Task Force/ Expert Committee, the State Level Safety Audit Cell has been constituted by the Government under the Chairmanship of the Chief Inspector of Factories/ Member Secretary with the objective of scrutinising the Safety Audit Reports submitted by the MAH Factories annually. The Cell makes suggestions for improvements in Safety, Health and Environment aspects.

The Safety Audit Cell has the distinction of conducting 38 meetings and scrutinizing 45 Safety Audit Reports submitted by the MAH factories so far. The recommendations are sent to the Chief Inspector of Factories for onward communication to the respective managements. Meetings are being conducted by the Cell at regular intervals. State Level Productivity Cell 8.19 The Productivity Cell has been formed vide G.O.Ms.No. 1866, Labour and Employment Department, Dated: 04-09-1985. The functions of the State level Productivity Cell are mainly on three fronts : 1) To create an amenable and conducive atmosphere both at the employer and

employees level by imparting the required training as well as educating the people concerned and also to bridge the yawning gap between the diversified levels of thinking of the various people concerned.

2) To synthesise the seemingly conflicting nature of demands of the concepts of

productivity and safety as they are only inter-related and interdependent and also complementary to each other but not in confrontation to each other.

3) To co-ordinate the Government, Management, employees and also organizations

concerned with productivity to broaden the activities of the Cell to a wider spectrum for each year to come.

Even-though the infrastructure facilities and resources at hand are very much limited

to conduct programmes in factories situated in various nooks and corners of the State, the Cell has registered a commendable result oriented programme during the past few years. MODERNISATION 8.20 There is a tremendous growth of industries in our State. Multi National Companies with Foreign investments have entered with new and modern technology. Industrial safety has to be integrated with such technology to ensure the safe operation of plant and Occupational Safety of Plant personnel. The Departmental Officers who are technical graduates and basically Engineers have to update and develop their technical knowledge to be in tune with the technological development in the industrial field. With this intention, the Inspectorate is modernising its activities by way of computerization, development of Information Technology and Training methodology. The Inspectorate has taken its future

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long term policy to step up its modernization activities in Administration, Technical skill and Training and Development activities. FUTURE PROGRAMME 8.21 Proposal to frame state Rules under the “Building and other Construction Workers (Regulation and Conditions of Service) Act, 1996” is under consideration. Once the “Tamil Nadu Building and other Construction Workers (Regulation and Conditions of Service) Rules” are notified, enforcement activities to ensure occupational safety, industrial hygiene, welfare and better working conditions for the building and other construction workers will be launched.

To implement e-Governance effectively in the Department, the National Informatics Centre has done a study on the Department. Based on the study report, action is being taken by this Department for creating a network system connecting all the subordinate officers with the Head Office.

Combined Annual return has been prescribed and Draft Notification to that effect has been issued in G.O.Ms.No.128, Labour and Employment Department, Dated.14.11.2003. This will enable easy and speedier submission of returns by the managements under various Acts in common application form.

DISTINCT ACHIEVEMENTS 8.22 The performance report shows an appreciable upward growth in all the sphere of activities of the Inspectorate. The number of factories registered under the Factories Act has risen from 32,723 in 2002 to 34,071 in 2003 covering 12,56,120 workers in 2003 as against 12,37,653 workers in 2002. During the year 2003, the number of Inspections made by the Inspectorate is 27,752 Regular Inspections, 926 Check Inspections, 339 Surprise Inspections and 7,863 Special, Holiday and Night Inspections. Such Inspections are conducted to make sure that benefits accruing to the sweated labour from Factories Act, 1948 and other allied Acts are conferred on them. Apart from the routine inspections, special raids were also conducted under Minimum Wages Act. By these efforts, 131 prosecutions were launched and 102 claim petitions were filed under the Act.

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CHAPTER-9

DEPARTMENT OF EMPLOYMENT AND TRAINING

(EMPLOYMENT WING) EMPLOYMENT SERVICES FUNCTIONS OF EMPLOYMENT EXCHANGES 9.1 The important functions of the Employment Wing are registration of job seekers, their nomination against notified vacancies, Vocational Guidance for students and unemployed, periodical collection, compilation and preparation of data on employment and unemployment etc. ORGANISATIONAL SET-UP OF EMPLOYMENT WING 9.2 Under the Employment Wing the Commissioner is assited by three Joint Directors - each looking after different functional areas, namely Employment, Employment Programmes and Career Study. Regional Deputy Directors Offices are functioning in Chennai, Trichy, Coimbatore and Madurai to supervise the activities of the District Employment Offices and Special Offices. Out of the 30 revenue districts in the state, 29 districts have separate District Employment Offices. For the newly bifurcated Dharmapuri District, the existing Sub Employment Office functioning at Hosur is going to be upgraded to District Employment Office at Dharmapuri. Besides, the following special offices are also functioning under the Employment Wing.

a. Professional and Executive Employment Office, Santhome, Chennai.

1

b. District Employment .Office for unskilled persons at Adyar, Chennai.

1

c. District Employment Office for Technical Personnel,Santhome, Chennai. and another at Coimbatore

2

d.. Special Employment Office for the Physically Handicapped, Anna Nagar, Chennai .

1

e.. Coaching-cum-Guidance Centre for Scheduled Caste/ Scheduled Tribe at Cuddalore, Coimbatore, Tiruchirapalli, Tirunelveli and Vellore Districts.

5

f. Special Vocational Guidance Centre for Tribal Population at Salem,Sankarapuram (Villupuram), Tiruvannamalai and Uthagamandalam

4

Total

14

PERFORMANCE RECORD OF THE EMPLOYMENT SERVICES DURING 2003-2004. REGISTRATION AND REFERRAL WORK 9.3 From 1.1.2003 to 31.03.2004, all the Employment Exchanges in Tamilnadu registered 3,89,367 persons for employment assistance and 35,504 registrants were placed in Employment.

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As on 31.03.2004, totally 49.85 lakhs persons were waiting on the Live Registers of the Employment Exchanges. Of them, 18.29 lakhs are women, 11.68 lakhs are Scheduled Caste applicants and 13,566 persons are from Scheduled Tribes. IMPLEMENTATION OF THE EMPLOYMENT EXCHANGES (COMPULSORY NOTIFICATION OF VACANCIES) ACT 1959. 9.4 As per the Employment Exchanges (Compulsory Notification of Vacancies) Act 1959, information on employment trend is collected from employers. The number of establishments addressed and the number of employees in the establishments covered in respect of Public and Private Sector for the year ended 31.3.2002 and 31.3.2003 are given below.

Year Ended 31.3.2002

Year Ended 31.3.2003

Sector Sector

Sl.No

Item

Public Private Public Private

1. Number of Establishments addressed

12,242 13,258 12,256 13,528

2. Number of Establishments responded

12,214 12,460 12,223 12,657

3. Total Employment (Persons)

16,12,297 9,04,061 15,70,322 8,31,888

PROVISION OF VOCATIONAL GUIDANCE SERVICES TO STUDENTS AND JOB SEEKERS. 9.5 In Tamilnadu, 18 Vocational Guidance Units are functioning for the purpose of disseminating occupational and training information to the needy jobseekers registered with Employment Exchanges. These Vocational Guidance activities include registration guidance, individual information, review of old registrants, group discussions, dissemination of career information,. apprenticeship placements, training placements, career talks in schools and colleges, development and maintenance of employer contacts, conduct of Career Exhibitions / Seminars, coaching for the Tamil Nadu Professional Courses Entrance Examinations for Scheduled Caste candidates etc.

The number of training placement from 1.1.2003 to 31.03.2004 was 1,454. The number of Career talks delivered by Employment Officers stood at 1,709 and 29 Career Exhibitions were conducted. COACHING CLASSES FOR SCHEDULED CASTE APPLICANTS APPEARING FOR THE TAMILNADU PROFESSIONAL COURSES ENTRANCE EXAMINATION. 9.6 From 1.1.2003 to 31.3.2004, 1,025 Hindu Adi-dravidar candidates were trained for appearing for the entrance examinations intended for the professional courses conducted during 2003 and an amount of Rs. 5.85 lakhs was spent. SELF EMPLOYMENT 9.7 From 01.01.2003 to 31.03.2004, Employment Exchanges assisted 2,196 candidates in getting loans to the tune of Rs. 788.43 lakhs from various banks through various agencies to set up Self Employment ventures.

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PLACEMENT/REHABILITATION OF THE DISABLED JOB SEEKERS. 9.8 The Special Employment Office for the Physically Handicapped at Anna Nagar, Chennai and the 13 Special Cells for Physically Handicapped attached to the District Employment Offices at Tiruchirapalli, Madurai, Thanjavur, Nagercoil, Coimbatore, Salem, Kancheepuram, Vellore, Erode, Uthagamandalam, Tuticorin, Tirunelveli, and Cuddalore adopt selective placement techniques for promoting the placement/rehabilitation of the disabled registrants.

As on 31.03.2004. totally 74,180 Physically Handicapped job seekers were waiting on the Live Register. which comprised of 7,699 Blind, 6,106 Deaf and 60,375 Orthopaedically Handicapped persons. From 1.1.2003 to 31.03.2004, 213 blind, 201 deaf and 3315 Orthopaedically Handicapped persons were registered. UNEMPLOYMENT RELIEF SCHEME FOR THE BLIND. 9.9 During 2003-2004, an amount of Rs. 30.00 lakhs was allotted under this scheme and an amount of Rs, 24.70 lakhs was spent during the financial year. 1,056 candidates benefited. SCHEMES IMPLEMENTED UNDER THE TRIBAL SUB PLAN Special Vocational Guidance Centres 9..10 There are four Special Vocational Guidance Centres for Tribal Population functioning at Uthagamandalam, Sankarapuram, Thiruvannamalai and Salem. The major functions of the above centres are as follows.

1. Collection, compilation and dissemination of information on occupations and training facilities to Scheduled Tribes.

2. Issue of Career Information bulletins at quarterly intervals which serve as guides for

student population as well as job seekers among Scheduled Tribes.

3. Visits to the Hostels and Schools run for the benefit of Scheduled Tribes and other Schools where a large number of Scheduled Tribe students are studying, to deliver career guidance talks, providing them with information about higher education, professional courses, training facilities, courses abroad, careers, scholarships and employment opportunities in shortage occupations. (Example: Steno-Typist, Secondary Grade Teacher).

4. Identification of vacancies for which suitable Scheduled Tribe applicants are not

available,and arranging for their training in these occupations to fill up the reserved vacancies.

5. Spot registration of Scheduled Tribe job seekers.

6. Motivation of Scheduled Tribe applicants to take up self-employment and

arrange for loans through various banks and other agencies.

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Details of activities carried out under Tribal Sub Plan. Sl.No. Details of activities for the period 2003-04 (Upto 31.03.2004) 1. Number of Scheduled Tribe applicants registered from various remote

areas. 246

2. Number of Scheduled Tribe applicants guided during registration 432 3. Number of applicants who were given individual guidance information 1443 4. Number of Group discussions held 161 5. Number of Scheduled Tribe applicants attended the group discussion 5600 6. Number of Career talks given 129 7. Number of Employers/institutions contacted 89 8. Number of Schools and Scheduled Tribe hostels visited 86 9. Number of Scheduled Tribe applicants placed in job 39 10. Number of Career Exhibitions conducted 17 SCHEMES IMPLEMENTED UNDER SPECIAL COMPONENT PLAN COACHING-CUM-GUIDANCE CENTRES 9.11 There are five Coaching-cum-Guidance Centres for Scheduled Castes/Scheduled Tribes functioning at Coimbatore, Tiruchirapalli, Tirunelveli, Vellore and Cuddalore. The major objectives of coaching-cum-guidance centres are as follows:-

a) to provide Vocational Guidance and disseminate career information to Scheduled Caste/Scheduled Tribe job seekers. b) to plan and execute confidence building and related programmes for Scheduled Caste/Scheduled Tribe. c) to organise and conduct job-development programmes. d) to arrange facilities to Scheduled Caste/Scheduled Tribe job seekers for practising shorthand/typing d) to establish close linkage with the local Employment Exchange for similar other Career Guidance specially meant for Scheduled Caste/Scheduled Tribe.

Besides these valuable counseling services, these Centres are also periodically

organising Pre-Examination Training Courses to Scheduled Caste youth appearing for various Competitive Examinations conducted by recruiting agencies These coaching classes enable the Scheduled Caste youth to compete more successfully.

The number of Scheduled caste beneficiaries benefited from out of the fund allotted

to this Department under Special Component Plan through the Coaching-cum-Guidance Centres is as below:-

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Sl. No

Details of activities for the period 2003-2004 ( as on 31.03.2004)

1. Number of senior Scheduled Caste registrants who were given Vocational and Training information.

2,454

2. Number of confidence building programmes conducted for Scheduled Caste registrants 143

3. Number of Career talks given 314 4. Number of applications forwarded to

Nationalised Banks for Self Employment

458

FORMATION OF STUDY CIRCLES IN RURAL AREAS 9.12 For the benefit of rural educated, the Government issued orders in G.O.Ms.No.57 Labour and Employment (R1) Department, Dated 26.6.2002 to open Study Circles in 6 Panchayat Unions. Subsequently, orders were issued in G.O.Ms.No.114, Labour and Employment (R1) Department, dated 29.9.2003 to extend the study circles to the remaining 379 Panchayat Unions all over TamilNadu. The Hon'ble Chief Minister of Tamil Nadu has dedicated the above 379 Panchayat Union study Circles at Sivaganga on 23.09.2003 Study Circles promote and enhance capacities of the unemployed youth to take up various competitive examinations. Sufficient number of Books, Periodicals, daily News Papers and study materials are made available to the students besides conduct of special coaching classes for preparation for Competitive Examinations conducted by various recruiting agencies.

Government have sanctioned Rs 53.06 Lakhs towards purchase of books, magazines and required furniture's for the above Rural Study Circles. 7316. candidates enrolled their names upto 31.03.2004. During the year 2003-2004, a sum of Rs. 51.96 lakhs was spent upto 31.03.2004. PRIVATE SECTOR PLACEMENT 9.13 In the context of declining trend in placement in public sector, Employment Exchanges in Tamilnadu have now targeted private sector for securing placement for the unemployed registered with them. Private placement campaigns have been successfully conducted by all the respective District Employment Offices. In all the District Employment Offices, second Friday of the month is designated as private placement day. During these campaigns, local employers and candidates willing to take up private sector employment meet at the premises of Employment Exchanges. Private sector employers complete recruitment on the same day. These campaigns have been widely welcomed because private sector employers save recruitment cost and time. This service is rendered to private sector employers and job-seekers free of cost. During the period from 1.1.2003 to 31.03.2004, 9118 candidates were placed in private sector by all the District Employment Offices in the state. COMPUTERISATION OF EMPLOYMENT EXCHANGE OPERATIONS. 9.14 Computerisation was introduced in a phased manner in the Employment Exchanges in Tamilnadu from 1986. All the 33 Employment Exchanges have since been computerized.

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INSTALLATION OF ONLINE INTERACTIVE JOB PORTAL TO FACILITATE PLACEMENT IN PRIVATE SECTOR: .9.15 The Website cum Interactive Job Portal for the Employment Exchanges (www.employment.tn.gov.in) is functioning at Professional and Executive Employment Office, Chennai from 06.06.2003 with the assistance of National Informatics Centre, Chennai at a cost of Rs. 7.05 lakh sanctioned by Government during the financial year 2002-2003.

This job portal hosts a bank of 2.85 lakh registrants of Professional and Executive Employment Office. This Website has become an instant success among the net users and within a short span the portal received more than 109038 hits and 935 employers had registered with it till 31.03.04. A salient feature of the Website is online renewal facility available to the registrants of Professional and Executive Employment Office.

Besides the information relating to various Higher Education, Competitive Examination and other related areas are fully available for use by the net browsers. The highlight of the Vocational information available in the site is providing job alerts to the candidates. Another unique feature of the portal is the regular updation of the information posted in it.

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CHAPTER-10

OVERSEAS MANPOWER CORPORATION LIMITED

10.1 Overseas Manpower Corporation Limited, is a Company registered under the Companies Act, 1956. It was incorporated on 30.11.1978. It is wholly owned by Government of Tamilnadu. The main objective of the Corporation is to assist Indian job seekers in securing suitable placements abroad. The authorized share capital of the Corporation is Rs.50 lakhs. Its paid up capital is Rs.15 lakhs. 10.2 It is one of the profit making Corporations. As on 31.3.2003, its accumulated profit is Rs. 22.75 lakhs. 10.3 From the date of its inception upto 31.3.2004, the Corporation has deployed 5,793 candidates on employment abroad. During the year 2003-2004 49 candidates have been deployed. The beneficiaries are mostly skilled, semi-skilled and medical personnel. During the period from April 2003 to March 2004, this organisation has received 298 provisional selections from various countries, especially for Doctors and Para-medical personnel from the Ministry of Health, Saudi Arabia. This Corporation is one of the major sourcing agencies in India for recruitment of Doctors and medical technicians by the Ministry of Health, Saudi Arabia. 10.4 By way of diversification of its activities, the Corporation is doing the following:- 1. Provides passport services for the candidates as well as the general public who are

residing within the jurisdiction of the Regional Passport Officer, Chennai.

2. Provides Visa stamping service for the candidates who are recruited directly by the employers abroad and who secure employment abroad on their own efforts.

3. Sells air-tickets both domestic and international. The Corporation is having a full-

fledged Travel Division. It is IATA (International Air Transport Association) accredited. It is having stock of airtickets, both domestic and international and has Computerized Reservation Facility of its own for booking both domestic and international Airtickets. The Corporation has earned a contribution of Rs.4.73 lakhs. This Contribution is 0.27 lakhs more than the contribution of Rs.4.46 lakhs earned during the previous year.

4. The Corporation is implementing a Social Security Scheme for Non Resident Tamils

to provide for Accident and Hospitalization covers to the Non Resident Indians and their families for a period of five years against one time payment of affordable premium.

The Social Security scheme was launched by the Hon’ble Chief Minister of Tamilnadu on 13.5.02. The Corporation arranged to issue 58 policies during the financial year 2003-2004 to the Non Resident Indians, and collected a premium of Rs. 2.63 Lakhs, and earned a contribution of Rs. 0.62 lakhs as on 31.3.2004. The Corporation has appointed 37 Insurance Market Promoters in all the districts of Tamilnadu for promoting this scheme further. 10.5 During the year 2003-04, the Corporation has earned a net profit of Rs.9.26 lakhs and declared a dividend of 8% as against 7% in the previous year.

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CHAPTER-11

DEPARTMENT OF EMPLOYMENT AND TRAINING

( TRAINING WING ) TECHNICAL TRAINING OBJECTIVE OF THE DEPARTMENT. 11.1 Industry is in need of trained man power with multi-skills to cope with the modern technological advancement . The economy of a country revolves around its industrial development. Five Year Plans aimed at implementation of number of Schemes for the development of industries has resulted in significant demand for skilled personnel in various trades. Craftsmen Training Scheme plays an important role in providing skilled craftsmen in different trades through systematic industrial training in Government as well as Private Industrial Training Institutes . The Industrial Training Institutes attract a large number of applicants every year since the Craftsmen having the National Trade Certificate awarded by this Department enjoy a good reputation in seeking jobs not only in our country but also in foreign countries. GOVERNMENT INDUSTRIAL TRAINING INSTITUTES 11.2 The Craftsmen Training Scheme is shaping Craftsmen through the vast net work of Government Industrial Training Institutes established throughout Tamil Nadu. There are 56 Government Industrial Training Institutes spread all over Tamil Nadu imparting training in 39 Engineering and 16 Non- Engineering trades. The total seating capacity is 18394 trainees ( Both Boys and Girls) . The duration of training is ranging from one year to three years according to the trades. Nearly 15636 boys and girls are undergoing training in these Industrial Training Institutes. Out of 56 Government Industrial Training Institutes, 13 Industrial Training Institutes are functioning exclusively for women, one Industrial Training Institute at Chidambaram for Scheduled Castes and another one exclusively for Tribals at Sankarapuram are also functioning in the State. For the development of women welfare, 3 women Industrial Training Institutes one each at Andipatti, Karur and Namakkal and 3 women wings in existing I.T.Is at Hosur, Thanjavur and Ramanathapuram were started with a seating capacity of 616 from January 2004 . The annual intake of the Government I.T.Is for 2003-04 is 13205 . 11.3. Admission to Government Industrial Training Institutes is made once in a year strictly on merit, following the rule of communal reservations. The minimum educational qualification for admission to the Industrial Training Institutes is from 8th standard to plus two according to the trades. The duration of courses varies from one year to three years. The selection of trades and syllabus of the courses are designed by the National Council for Vocational Training for ensuring uniformity and standard throughout India. At the end of training , Trade Test is conducted during the month of July on All India basis and the successful candidates are awarded National Trade Certificates. Supplementary Trade Test is also conducted every year during the month of January to enable the failed trainees to appear for the examination . The results are published in the Government Web site viz. www.employment.tn.gov.in/iti and successful candidates are awarded National Trade Certificates. 11.4 In view of the emerging need of industries, usage of sophisticated machinery and equipments and changes in technology, new trades such as Desk Top Publishing Operator, Mechanic Industrial Electronics, Mechanic Mechatronics, Information Technology and Electronic System Maintenance are introduced in various Government Industrial Training

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Institutes during 2003-04. In an effort to promote Industry –Institute interaction and to facilitate training and development of skilled man-power in the State, a Memorandum of understanding (MOU) was Signed between the Confederation of Indian Industry and Directorate of Employment and Training and another one between five Industrial Training Institutes and Industrial Establishments. Apart from this, Institute Managing Committee (IMC) is also formed for effective functioning of Industrial Training Institutes and to make a dynamic linkage between training in Industrial Training Institutes and labour market. As a first phase, Institute Managing Committee (IMC)is established in two Industrial Training Institutes viz . Ambattur and Hosur. Stipend is paid to the trainees of Industrial Training Institutes as detailed below: a) Scheduled Castes : Rs. 150/- per month b) Scheduled Tribes : Rs. 175/- per month c) Denotified Communities : Rs. 140/- per month d) Burma / Sri Lanka/ Vietnam repatriate : Rs. 175/- per month e) 1/3 of the total trainees whose parental income does not exceed Rs.16,100/- : Rs.50/- per month AFFILIATED PRIVATE INDUSTRIAL TRAINING CENTRES 11.5 To supplement the efforts of the State in producing more skilled man power required for the industry , private participation in industrial training is encouraged. There are 615 private Industrial Training centers affiliated to National Council for Vocational Training with a seating capacity of 60213 trainees functioning in this State. Fifty percent of the seats in affiliated Private Industrial Training Institutes are filled up by Government quota following the communal rotation and marks now in force. INDUSTRIAL SCHOOLS 11.6 Besides Government and affiliated Private Industrial Training Institutes, there are 416 Private Industrial Schools functioning in Tamil Nadu with a seating capacity of 37480 trainees. The Industrial Schools are imparting training in 70 trades. In Industrial Schools, training is offered mainly in the areas like catering , tailoring , Computer software, beauty culture, Office Automation besides Engineering and Non- Engineering trades . Training period is from 45 days to three years. Candidates studied from 8th standard to SSLC (passed/ failed) are admitted for training . Examination is conducted at State level and certificates are issued to the successful candidates by State Government. Out of 416 Industrial Schools, 49 Schools are receiving maintenance grant from Government . APPRENTICESHIP TRAINING SCHEME 11.7 To acquire more skills, the passed out trainees from Industrial Training Institutes/ Private Industrial Training centres are sponsored as apprentices to industrial establishments for a period ranging from 1 year to 4 years. In Tamil Nadu, Apprenticeship training is given in 153 trades in 1984 Industrial Establishments. As of now (31.3.2004), 14858 apprentices are undergoing training. While the apprentices get shop-floor training in the establishments, theoretical training is given in 11 Related Instruction Centres which are under the control of this Department. During apprenticeship training, the apprentices are given stipend ranging

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from Rs.820/- to Rs.1230/- per month by the establishments. At the end of training, Trade Test at All India level is conducted by this Department during the month of April and October and results published in the Government Website . The passed out candidates are issued National Apprenticeship Certificate . Every year, nearly 12,500 apprentices are appearing for the All India Trade Test. The apprentices who are engaged as freshers by the employers have to undergo basic training. The basic training in some of the trade groups which are not available under Craftsmen Training Scheme is arranged by the Basic Training Centres under Apprenticeship Training Scheme. Two Basic Training Centres one at Ambattur for Hotel and catering group of trades and another one at Ranipet for Chemical Group of trades are functioning in this State . Apprentices undergoing training in Hotel and Chemical Industries are given basic training in these Centres. WELFARE SCHEME FOR SCHEDULED CASTE S / SCHEDULED TRIBES 11.8 To assist the Scheduled Castes and Scheduled Tribes to improve their Socio- Economic conditions by giving them employable Industrial Training in different trades a Government Industrial Training Institute with 96 seats at Chidambaram in Cuddalore district is exclusively functioning for Scheduled Castes. Training is imparted in three trades . ' Tribal Sub-Plan ' is an Area oriented Plan to focus Tribals into Industrial Training . A Government Industrial Training Institute with 80 seats exclusively for Scheduled Tribes is functioning at Sankarapuram in Villupuram District under this Scheme. Training is imparted in three trades . Apart from this, 18% of the seats are reserved for Scheduled Castes and 1% of the seats for Scheduled Tribes in the admission in all the Government Industrial Training Institutes ALL INDIA SKILL COMPETITION 11.9 All India Skill competition was started in the year 1964 with a view to fostering the spirit of healthy competition among the trainees of Industrial Training Institutes of various States. The All India Skill Competition is conducted in 10 different trades every year and successful trainee in each trade is given a cash award of Rs.10,000/- each and a merit certificate by Government of India. Out of 39 All India Skill Competitions held so far, Tamil Nadu had the unique distinction of winning the BEST STATE Award for 19 times and received The PRESIDENT’S SHIELD also for 19 years. The Trainees in the trade of Instrument Mechanic and Mechanic Motor Vehicle were adjudged as the Best Trainees at All India level in the 39th All India Skill Competition held during January 2003. A cash prize of Rs.10,000/- and a Merit certificate will be awarded to the above Best trainees by Government of India. This achievement indicates the best training imparted in the Industrial Training Institutes in Tamil Nadu and also the efficiency of the trainees. HON’BLE CHIEF MINISTER AWARD 11.10 To motivate the trainees, skill competition is conducted in 14 trades at the State level and the best trainee in each trade is awarded a cash prize of Rs.5000/- each and also merit certificate . The Instructors who are instrumental in bringing out the best trainees are also awarded cash prize as follows: 1. Best Trainee Rs. 5000/- 2. Principal Rs. 1000/- 3. Junior Training officer /

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Assistant Training officer Rs. 1750/- 4. Instructor in workshop calculation and Science. Rs.500/- 5. Instructor in Engineering Drawing Rs. 500/- The trainees who secure second and third positions are awarded merit certificates. DR. RADHAKRISHNAN AWARD 11.11 Dr. Radhakrishnan award is given to Instructors who show exemplary performance in imparting training. Every year 10 Instructors(Training Officer-2, Assistant Training Officer-4 and Junior Training Officer-4) and 2 Principals are selected under this Scheme and awarded Kissan Vikas Pathra to a value of Rs.500/- each and a merit certificate TRAINING TO INSTRUCTIONAL STAFF 11.12 To keep pace with the rapid technological development , Instructional staff are deputed for training to various institutions run by Government of India like Central Training Institutes and Advanced Training Institutes in the country. Every year, 25 Junior Training Officers are deputed for Instructor's training in Central Training Institute/ Advanced Training Institute. The duration of training is one year. This training equips them with the latest technology and skill . Specialised training in teaching techniques, use of Audio Visual Aids, Class room management etc. are given to Junior Training Officers / Assistant Training Officers in Government Industrial Training Institute at Ambattur for a period of 2 weeks. This re-orientation training programme sharpens their teaching skills. This training is useful to offer unique training to the trainees of Industrial Training Institutes. ADVANCED VOCATIONAL TRAINING SYSTEM 11.13 Advanced Vocational Training is given in Government Industrial Training Institutes at Ambattur and Coimbatore for the benefit of industrial workers. The industrial workers are exposed to CNC machines and other sophisticated machines and equipments for a period of 2 to 3 weeks. This will equip the workers with the latest technology. HI – TECH TRAINING PROGRAMME 11.14 The impact of Hi- Technology in the process of Industrial Development and automation is becoming more prominent. Hence, to make a new generation of skilled workers for servicing, maintaining and operating new range of machineries and equipments, the following Hi-Tech training courses have been introduced in Government Industrial Training Institute at Ambattur:- 1) Industrial Automation. 2) Computer Aided Drafting. 3) Analogue and Digital Electronics. 4) Personal Computer Maintenance.

WIREMAN HELPER COMPETENCY EXAMINATION 11.15 Candidates who have attained 21 years of age and who are having a minimum work experience of 5 years under an electrical contractor or in a recognized establishment are eligible to appear for this examination. The examination is conducted once in 3 years and the last examination was held in December 2003. 5036 candidates appeared for this and 4186 passed in the examination. Successful candidates are awarded “ Wireman Helper Competency” certificate.

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CHAPTER-12

EMPLOYEES’’ PROVIDENT FUND ORGANISATION

Introduction 12.1 Under the Employees’ Provident Fund and Miscellaneous Provisions Act 1952 the Employees’ Provident Fund Organisation is vested with the responsibility of administering the following three Social Security Schemes:-

i) Employees’ Provident Funds Scheme, 1952 ii) Employees’ Deposit Linked Insurance Scheme, 1976 iii) Employees’ Pension Scheme, 1995 The primary objective of these three schemes is to provide social security and to

inculcate amongst the workers a spirit of savings while they are gainfully employed and to make provision for their benefit after they retire from service and their family members if they die in harness. Tamil Nadu Regional Office in Chennai serves the members in the State of Tamil Nadu and the Union Territory of Pondicherry. It is headed by a Regional Provident Fund Commissioner (Grade-I). EMPLOYEES’ PROVIDENT FUNDS SCHEME, 1952 12.2 The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is applicable to Factories and Establishments engaged in 180 specified industries/classes of establishments. Earlier the Act was applicable to establishments on completion of three years of existence and employing 20 or more persons. This provision was amended with effect from 22.09.1997. Now, any factory falling in the category of the notified industry/class of establishments employing 20 or more persons from the very date of its set up is coverable under the Act. 12.3. The number of establishments covered under the Act as on 31.3.2004 in Tamil Nadu and Pondicherry Region is 51398. The number of members in this region as on 31.3.2004 is 45,46,404. Service to Members 12.4. Every member is entitled to annual income distribution benefit in the form of interest on the monthly balance outstanding to his credit (including employers’ share of contribution). The rate of interest, which was only 3% per annum in 1952-53, was 9% per annum on monthly running balances w.e.f. 1.4.2003. In addition a bonus of 0.5% was given to outgoing members during the year 2003-04. 12.5 On fulfillment of the minimum required membership period, partial withdrawals in the form of advances are allowed to members for:

i) Financing of Life Insurance Policy, ii) Meeting expenses of marriage of self, children/brother/sister, iii) Post-Matriculation education of children, iv) Acquiring dwelling house/site, v) Repaying housing loans vi) Meeting expenses on sickness,

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vii) Overcoming temporary un-employment period, viii) Purchasing necessary auxiliary aids for handicapped members, and ix) Overcoming the distress due to natural calamities.

12.6. A member is entitled for full and final settlement of claim:

a. On retirement from service after attaining the age of 55 years, b. On account of permanent and total incapacity for work, c. On termination of service on a voluntary scheme or on retrenchment, d. On cessation of membership under certain other circumstances.

12.7 Following are the details of settlement made (during the past four years) to the members under different categories of Employees’ Provident Fund Scheme, 1952. Final Settlement of EPF dues.

1999-2000 2000-01 2001-02 2002-03 2003-04

No. of cases settled

254570 269218 293919 318644 4,08,263

Amount settled (Rs.in lakhs)

42867.87 48403.90

59308.60

75134.08

80865.00

Partial Withdrawals/Advances

No. of cases sanctioned 60766 77919 80800 75555 95168

Amount granted (Rs.in lakhs)

9391.44 16411.67 23104.83 26701.64 24645.18

Transfers

No. of cases transferred 35784 38891 31698 20564 28944

Issue of Annual Statement of Accounts 12.8. The following number of Annual Statement of Accounts were issued to the members during the past years : EMPLOYEES’ DEPOSIT LINKED INSRUANCE SCHEME, 1976

1999-2000

2000-01 2001-02 2002-03 2003-04

39,63,615 45,34,377 44,50,731 51,27,581 50,62,641

Page 44: labour and employment department

Applicability 12.9 The scheme came into force with effect from 01.08.1976, and applies to the employees of all factories and other establishment to which the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 applied. Contribution 12.10 While the employees are not required to contribute to the Insurance Fund, the employers are required to pay contributions @ 0.5% of the pay of the employees who are Provident Fund members. The Central Government also contributed to the Insurance Fund an amount equivalent to one half of the amount of employers’ contribution. Benefit 12.11. On the death of the member while in service, who is a member of the Employees’ Provident Fund, the claimant will be paid an additional amount equal to the average balance in the Provident Fund account of the deceased during the preceeding 12 months, restricted to a maximum amount of Rs. 60,000/. 12.12 The following settlements were made during the past years towards EDLI benefit to the heirs of the deceased members:

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

No. of settlements 3519 3258 3076 3389 2974

Amount settled (Rs. in lakhs)

320.97 348.82 417.70 541.41 427.48

EMPLOYEES’ PENSION SCHEME, 1995 12.13 The Employees’ Pension Scheme, 1995 replacing the Employees’ Family Pension Scheme, 1971 was framed under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 on 16.11.1995. The Employees’ Pension Scheme, 1995 provides the following benefits:

Sl.No. Eligibility Type of Pension

1. On attaining the age of 58 years, whether in service or not

Superannuation Pension

2. On attaining the age of 50 years but below 58 years and left service

Reduced Pension

3. Left service on account of total and permanent disablement

Disablement Pension

4. On the death of the member Widow - Children Pension

5. On the death of the parents or on re-marriage of the spouse, after the death of the member

Orphan Pension

6.

On the death of the member and in the absence of spouse and eligible children below 25 years on the date of death of the

Nominee Pension

Page 45: labour and employment department

member 12.14 No. of Pensioners as on 31.3.2004

Other Pensions

Mem

ber

Pen

sion

Wid

ow/

Wid

ower

P

ensi

on C

hild

ren

Pen

sion

O

rpha

n P

ensi

on

Nom

inee

P

ensi

on

Dis

able

d P

i To

tal

Gra

nd T

otal

136564

56001

46612

1071

1124

1087

3282

243887

12.15 The Employees’ Pension Scheme 1995 provides for valuation of the Pension Fund on annual basis. Consequent to the annual valuations the pensioners have been allowed relief of 4%, 5.5%, 4% and 4% from 16.11.1996, 01.04.1998, 01.04.1999 and 01.04.2000 respectively. 12.16 The pension is being disbursed through the Nationalised banks and some other banks. For this purpose; agreement has been entered into with the Indian Bank, State Bank of India, Indian Overseas Bank, ICICI, UTI, and HDFC in Tamil Nadu and Pondicherry. Agreement has also been entered with the Postal Department for disbursement of pension through the Post Offices. 12.17 In addition to Pension benefits under the Employees’ Pension Scheme, 1995 the scheme provides for issue of Scheme Certificates to the members who leave an establishment. On joining another establishment, their pension membership is carried over. Those members who have not rendered 10 years service on exercising option, are being allowed withdrawal benefit, based on the wages drawn on the date of exit and the period of service . 12.18 Number of withdrawal benefits sanctioned / Scheme Certificates issued during the past years is given below:

99-2000

2000-01

2001-02

2002-03

2003-04

No. of withdrawal cases settled

207787 215861 233919 324363 332295

No. of Scheme Certificates issued

16129 20836 22814 28449 22372

Page 46: labour and employment department

CHAPTER-13

EMPLOYEES STATE INSURANCE SCHEME

13.1 Employees State Insurance Scheme of India is an integrated Social Security scheme tailored to provide protection to workers in the organised sector and their dependents in contingencies such as sickness, maternity, death and disablement due to an employment injury or occupational disease as detailed below:-

1 Medical Benefit

Medical facilities for self and dependents are admissible from the day of entering insurable employment. Primary, Specialist and Super Speciality services are provided through a network of ESI Dispensaries and ESI Hospitals.

2 Sickness Benefit

Sickness Benefit is payable to an Insured Person in cash in the event of Sickness resulting in absence from work and duly certified by an authorised Insurance Medical Officer.

3 Maternity Benefit

Maternity Benefit is payable to Insured Women in case of confinement or miscarriage or sickness related to Maternity (Maximum 85 Days)

4 Disablement Benefit (By Cash)

Disablement Benefit is payable to Insured Employees suffering from physical disablement due to employment injury or occupational disease. In addition, the Insured Person is eligible for coverage under Workman's Compensation Act.

5 Dependent's Benefit (By Cash)

Dependent's Benefit is payable to dependent of a deceased Insured Person where death occurs due to Employment injury or occupational disease.

6

Extended Sickness Benefit (By Cash)

Extended Sickness Benefit is payable to Insured Persons for the period of certified sickness in case of specified 34 long term diseases that need prolonged treatment and absence from work on Medical advice.

7

Enhanced Sickness Benefit (By Cash)

Enhanced Sickness Benefit is payable to Insured Persons in the productive age group for undergoing Sterilization operation viz. Vasectomy / Tubectomy.

8

Temporary Disablement Benefit (By Cash)

Temporary Disablement Benefit at 70% of wages is payable till temporary disablement lasts and is duly certified by authorised Insurance Medical Officer.

9

Permanent Disablement Benefit (By Cash)

Permanent Disablement Benefit is payable for life

10 Funeral Benefit (By Cash)

Funeral Benefit on death of an Insured Person is payable to a maximum of Rs. 2500/-

13.2 Free supply of physical aids such as Crutches, Wheel Chairs, Dentures, Spectacles and such physical aids are offered under this scheme. Preventive Health Care Services such as Immunisation, Family Welfare Services, HIV/AIDS Detection Treatment etc are available. Medical Bonus at Rs. 250/- is paid to an Insured Woman or the wife of an Insured Person, in case she does not avail hospital facilities of the scheme for child delivery.

Page 47: labour and employment department

13.3 The Scheme is implemented in this State in accordance with the provisions of the ESI Act 1948. Towards this objective, the scheme of health insurance provides full medical facilities to insured persons and their dependents, as well as cash benefits to compensate for any loss of wages or earning capacity in times of physical distress. 13.4 The scheme is administered by a duly constituted corporate body called the Employees State Insurance Corporation as provided under the ESI Act 1948. 13.5 Employees of covered units and establishments drawing wages up to Rs.7500/- per month come under the purview of the ESI Act 1948 for multi-dimensional social security benefits. The ESI Scheme is mainly financed by contributions raised from employees covered under the scheme and their employers at a fixed percentage on wages, a sum equivalent to 1.75% and 4.75% of wages respectively. 13.6 In Tamil Nadu, medical facilities are provided through a network of 181 ESI Dispensaries, 9 ESI Hospitals, 5 Mobile Dispensaries, and 2 Utilisation Dispensaries with 2363 beds. 13.7 Utilisation Dispensaries are run by the employer. The standards of equipments and treatment provided at the Dispensaries shall be as normally provided by the State Government to the beneficiaries under ESI Scheme at the ESI Dispensaries. The employer is paid capitation fee at the rates prescribed by ESI Corporation from time to time. At present, the rate is Rs.60/- per Insured Person / Year. At present, there are 2 Utilisation Dispensaries in Tamil Nadu.

1. Utilisation Dispensary, Dalmia Cements (Bharat) Limited, Dalmiapuram, Tiruchirapalli District

2. Utilisation Dispensary, E.I.D. Parry (India) Ltd., Ranipet, Vellore District.

Expenditure on the medical facilities is initially borne by the State Government. 7/8th of the expenditure subject to a ceiling of Rs.750/- per Insured Persons is reimbursed by the ESI Corporation. ESI HOSPITAL, K.K. NAGAR (Occupational Research Centre) 13.8 ESI Hospital, K.K. Nagar is run by ESI Corporation, New Delhi. The Occupational Research Centre for South is established in this hospital. The Bed Strength of this hospital is 330. 13.9 Employees covered under the scheme are entitled to medical benefits for self and their family members. They are also entitled to cash benefits in the event of specified contingencies; resulting in loss of wages or earning capacity. The insured women are entitled to maternity benefit for confinement. In the event of death of an insured employee due to employment injury or occupational disease, the dependents are entitled to family pension. NEW COVERAGES 13.10 A new ESI Dispensary was opened at Singampuneri, Sivaganga District on 1.10.2003. 13.11 During the year 2003-2004, the following new areas were covered by attachment with the existing ESI Dispensaries.

Page 48: labour and employment department

Sl. No

Name of the areas/District

Name of the ESI Dispensary to which attached

Date from which functioning

1. Kalikkampatti Dindigul District

ESI Dispensary Begambur

1.4.2003

2. Thirumudivakkam Kancheepuram District

ESI Dispensary Pallavaram

1.5.2003

3. R.Vadipatti and Pappampatti Peripheral villages Dindigul District

ESI Dispensary Neikkarapatti

1.6.2003

4. Injar Virudhunagar District

ESI Dispensary Sivakasi

1.10.2003

5. Sivakasi suburbs T.Salvarpatti Virudhunagar District

ESI Dispensary Sivakasi and Thayalpatti

1.12.2003

6. Madurai, Ponnagaram Madurai District

ESI Dispensary Ponnagaram

1.1.2004

7.

Pollachi Suburbs Sholavampalaiyam and Sozhanur Coimbatore Dt.

ESI Dispensary Pollachi Othakalmandabam

1.2.2004

8 Nilavarapatti Salem

ESI Dispensary Annadanapatti at Seelanaickenpatti

1.3.2004

13.12 Proposals for extending ESI Scheme to the following new areas by attachment in a phased manner during the year 2004-2005 are under active consideration of the Government.

Sl. No.

Name of the Areas/District

Name of the ESI Dispensary to which attached/ to be attached

1. Uthamacholapuram (Nagapattinam)

ESI Dispensary Nagapattinam and shifting to Nagore

2. Vedasanthur suburbs (Dindigul)

Vedasanthur (implemented with effect from 1.4.2004)

3. Thiruchengode suburbs (Namakkal)

Thiruchengode

4 Coimbatore areas (Coimbatore)

Tiruppur.I, Avinashi, Chinnampalayam, Karamadai and Mettupalayam

5 Gangaikondan area (Tirunelveli)

Upgradation of ESI Dispensary at Thalayuthu from one doctor to two doctor type

6 Tirunelveli suburbs (Tirunelveli)

Vannarpet

7 Tiruvallore suburbs (Tiruvallore)

Tiruvallore

8 Peripheral area of Kanyakumari (Kanyakumari)

Nagercoil

Page 49: labour and employment department

13.13 The Government of India have given their concurrence for opening of two doctor type Dispensary at Sriperumbudur in Kancheepuram District. 13.14 The proposals for extending ESI Scheme under IMP system to the following new areas are under consideration of the Government during the year 2004-2005.

S.No. Name of the Place District 1 Panruti Cuddalore

2 Vaduganthangal & Pallikonda

Vellore

3 Tindivanam Villupuram

4 Paramakudi Ramanathapuram

5 Sivaganga Sivaganga

6 Seshanchavadi (Vazhappadi & Karipatti)

Salem

7 Ramanathapuram Ramanathapuram

SUPER SPECIALITY SERVICES 13.15 Government have issued orders sanctioning equipments to open Nephrology Department in ESI Hospital, Ayanavaram and Coimbatore. The medical arrangements are under process. On completion of medical arrangements and draft notification from the ESI Corporation, New Delhi, Nephrology units will be opened. DIAGNOSTIC CENTRES 13.16 ESI Corporation, New Delhi has given its concurrence for opening of five diagnostic centres in ESI Dispensaries, Ambattur, Pallavaram, Rajapalayam, Thudiyalur and Ranipet and the same is under the active consideration of the Government. SIDDHA SYSTEMS 13.17 Siddha units are at present functioning in ESI Hospitals at Ayanavaram and Coimbatore. ESI Corporation has given its concurrence to start Siddha wing in three more ESI Hospitals, namely Madurai, Vellore, and Salem and are under active consideration of the Government. Opening of Siddha units at ESI Hospital, Sivakasi, Trichy and Hosur will be considered by the ESI Corporation and the Government in due course. YOGA 13.18 YOGA is the best practice to cure most of the diseases. The proposals for inclusion of YOGA in ESI Hospital, Ayanavaram and Coimbatore are under active consideration. REVOLVING FUND 13.19 The Government have examined the long procedures of sanctioning reimbursement of medical expenses to ESI patients. To reduce the delay, Government have ordered to operate Revolving Fund. The Regional Director, ESI Corporation, Chennai, will operate the fund and issue the cheques in the name of the Insured Person through the Medical Officer in charge of the ESI Dispensary. Further, the financial powers of the Director of Medical and

Page 50: labour and employment department

Rural Health Services (ESI) to sanction reimbursement claims have been enhanced from Rs. 5,000/- to 75,000/- per Insured Person. Due to this, the bills are sanctioned immediately. Time limit has been fixed for processing the Reimbursement claim at different stages for early settlement of claims to the Insured Persons concerned. A number of diseases and investigations have been included in the purview of Revolving Fund, besides adopting the diseases and Hospitals mentioned in G. O. Ms. No. 400, Finance (Salaries) Department, Dated. 29.8.2000. REIMBURSEMENT OF MEDICAL EXPENSES 13.20 During the year 2003-04, a sum of Rs.2,14,69,575 /- has been sanctioned to Insured Persons who underwent major surgeries related to Heart, Kidney Transplantation, Ortho Transplantation, Spinal Cord and Cancer.

ESI SCHEME (PARTICULARS AT A GLANCE)

1. Date of Implementation of the Scheme : 23rd January 1955. 2. Total No. of ESI Dispensaries as on 31.03.2004 : 188 Region wise Break up details:

Dispensary Building

Sl,N

o

Nam

e of

the

Reg

ion

Stat

ic D

ispe

n-sa

ry

Mob

ile

Dis

pen-

sary

Util

isat

ion

Dis

pen-

sary

Ow

n

Ren

ted

Tota

l Dis

pen-

sa

ries

1 Chennai 39 27 12 39 2 Madurai 55 1 - 14 42 56 3 Coimbator

e 37 2 - 14 25 39

4 Salem 50 2 2 12 42 54 Total 181 5 2 67 121 188

3. Total No. of Insured Persons as on 1.1.2004 : 11,24,679 4. Total No. of Beneficiaries as on 1.1.2004 : 43,52,508 5. Total No. of ESI Hospitals : 8 + 1 6. Total No. of Beds available : 2363

Page 51: labour and employment department

7. Break up Details of Beds - Hospital wise

Sl. No.

Name of the Hospital Place Bed

Strength 1 ESI Hospital Ayanavaram, Chennai-23 616 2 ESI Hospital Coimbatore 506 3 ESI Hospital Madurai 209 4 ESI Hospital Vellore 50 5 ESI Hospital Salem 50 6 ESI Hospital Sivakasi 100 7 ESI Hospital Hosur 50 8 ESI Hospital Trichy 50 9 ESI Hospital K.K. Nagar, Chennai-78

(Under the Control of ESI Corporation, New Delhi)

330

10 ESI Annexes 136 11 Allotted in Govt. Hospitals 266 Total 2363

8. Treatment Particulars:

S. No Details 2001-2002 2002-2003

1 No.of Out-Patients treated

73,44,038 65,44 ,208

2 No. of In-patients treated

3,14,413 3,09,272

3 Total No. of cases treated 76,58,451 68,53,480

P. ANNAVI Minister for Labour