Labour welfare and employee relations term

95/HRO/131020

MHROM

LABOUR WELFARE AND

EMPLOYEE RELATIONS

The Human Resource is the potential of any country and the economic development of

any nation depends on the effective mobilization of these resources. In order to make this

resource effectively, the government of India has set up an Independent Ministry of HRD

to improve the development of human resource. Labour, is a factor of production has

certain characteristics apart from others assets like capital and land. The attitude of a labour

towards his work holds the key performance and unless a labour is enthusiastic, committed and devoted.

Labour welfare is and integral part of the larger gamut of industrial relations . But unlike the

various other areas that are deemed necessary in industrial relations, one can say that labour

welfare and human resource management are something that often gets the least attention of the

management, unless any crisis takes a precipitous turn and gets noticed when it hurts the

company's balance sheet.

it is mandatory for the government policymakers to lay down statutory obligations for the companies with regards to the

labour welfare and reforms.

INTRODUCTION -

Some of the key areas of contemplation are as listed below -

Improvement of labour standards, linking wages to productivity.

Trade union recognition.

Vocational training and skills development.

Worker's participation.

Social security benefits, including pension, occupational health and safety, and many

others.

Labour law reforms.

Upholding international labour standards and enforcing labour legislation.

EMPLOYEE RELATIONS is an approach which is a branch of industrial

relations, which involves the activities that involve recognizing, understanding and finally

mitigating the employee employee relations. Employee relations is a relatively vague concept,

since most of the concept in it often overlaps with the other familiar concepts of industrial

relations. But as the conflicts between employee and employer as been growing ever since,

especially in the Indian industrial sectors which have been plagued by the frequent lockouts,

strikes, etc.

Thus the necessity of a separate branch of study to address this matters, led to the evolution of

the field of study that is employee relations.

EMPLOYEE RELATIONS

OBJECTIVES OF THE EMPLOYEE RELATIONS APPROACH: -

• To maintain industrial democracy based on participation of labour in the management

• gains of industry.

• To raise productivity by reducing tendency of high labour turnover and absenteeism.

• To ensure workers’ participation in management of the company by giving them a fair

say in

• Decision-making and framing policies.

• To establish a proper channel of communication.

• To increase the morale and discipline of the employees

• To safeguard the interests of the labour as well as management by securing the highest

• Level of mutual understanding and goodwill between all sections in an industry.

• To avoid all forms of industrial conflicts so as to ensure industrial peace by providing

better

• living and working standards for the workers.

• To bring about government control over such industrial units which are running at a loss

for

• Protecting the livelihood of the employees.

In order to execute an create an environment towards sustaining healthy employee relations on a national scale, the constitution provides for following acts to safeguard healthy employee relations –

1.Article 38 – the state shall strive to promote the welfare of the people by the

securing and protecting as effectively as it may a social order in which justice – social,

economic, and political- shall inform all the institutions of the national life.

2. Article 39 – the state shall in particular direct its policy towards securing inter alia, that

the health and strength of workers, men and women, and the tender age of children are

not abused and that citizens are not forced by economic necessity to enter avocations

unsuited to their age or strength.

3. Article 41 – the state shall make provisions for securing just and humane conditions of

work and for maternity benefits.

4. Article 43 – the state should endeavor to secure to all workers work , a living wage,

conditions o f work ensuring a decent standard of life and full enjoyment of leisure and

social and cultural opportunities , etc.

5. Article 47 – the state should regard the raising of the level of nutrition and the standard

of living of its people and the improvement of public health as among its primary duties.

Laws in relation to industrial relations –

• The Trade Unions Act, 1926

• The Industrial Employment (Standing Orders) Act, 1946;

• The Industrial Employment (Standing Orders) Rules, 1946

• The Industrial Disputes Act, 1947

Laws relating to wages –

• The Payment of Wages Act, 1936

• The Payment of Wages Rules, 1937

• The Minimum Wages Act, 1948; The Minimum Wages (Central) Rules, 1950

• The Working Journalist (Fixation of Rates of Wages)Act, 1958; Working Journalist

(Conditions of service) and Miscellaneous Provisions Rules, 1957

• The Payment of Bonus Act, 1965;The Payment of BonusRules, 1975

There are various legislations that are laid down throughout the years after independence, some of

them are as mentioned -

Laws related to equality of and empowerment of women • The Maternity Benefit Act, 1961

• The Equal Remuneration Act, 1976

Laws related to disadvantaged and disabled sections of society –• The Bonded Labour System (Abolition) Act, 1976

• The Child Labour (Prohibition & Regulation) Act, 1986

Laws related to social security –• The Workmen’s Compensation Act, 1923

• The Employees’ State Insurance Act, 1948

• The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952

Laws related to specific industries –

• The Factories Act, 1948

• The Dock Workers (Regulation of Employment) Act, 1948

• The Plantation Labour Act, 1951

• The Mines Act, 1952

• The Merchant Shipping Act, 1958

A nation if aims at implementing various strategies towards healthy industrial relations, cannot do so in isolation. The environment of a country’s workspace must meet international practices and not arbitrary regulations . To achieve that there must be a recognized common standard that are internationally obligatory in nature and all labour laws must be in coherence to the guidelines set by the norms of ILO.

The ILO is a unique organization in the United Nations system which provides for tripartite –employers, unions, and governments- representations. India is a founder member of the ILO . In 2004 the ILO had 175 member countries. At every level in the organization , besides governments two ot5her social partners, namely the workers and employers, namely, the workers and employers are involved. All three groups, are represented in all the organs of the ILO and are responsibility in conducting its working.

The three organs of the ILO are -

The international labour conference

. The governing body

The international labour office

The work of the conference and the governing body adopts international labourstandards in the form of conventions and recommendations and provides a forum for discussing social, economic and labour related issues.

The governing body of the ILO is the executive wing of the organisation. It is also a tripartite in character. Since 1992 an Indian has been holding a non elective seat on the governing body as one of the 10 countries of chief industrial importance.

The ILO has four strategic objectives

• Promote and realize standards and fundamental principles and rights at work

• Create greater opportunities for women and men to decent employment and income

• Enhance the coverage and effectiveness of social protection for all

• Strengthen tripartism and social dialogue

To attain its above mentioned objectives it employs various activities as an international body of labour . They are , as follows –

• Formulation of international policies and programmes to promote basic human rights, improve working and living conditions, and enhance employment opportunities

• Creation of international labour standards backed by a unique system to supervise their application

• An extensive programme of international technical cooperation formulated and implemented in an active partnership with constituents, to help countries put these policies into practice in an effective manner

• Training, education and research activities to help advance all of these efforts

OBJECTIVES OF ILO -

• Freedom of Association and Protection of the Right to Organise Convention (No.87) 1948:

• Right to organise and collective bargaining convention (No.98) 1949

• Abolition of Forced Labour Convention (convention 105, 1957)

• Convention No. 100 of 1951: Equal Remuneration for Men and Women Workers for Work of Equal Value:

VARIOUS OTHER IMPORTANT ILO CONVENTIONS –

• Convention No.15 Minimum Age (Trimmers and Stockers)

• Convention No.18 Workmen’s Compensation (Occupational diseases)

• Convention No. 19 Equality of treatment (Accident compensation)

• Convention No.1 Hours of work (Industry)

• Convention No. 32 Protection against accidents (Doctors)

IMPORTANT CONVENTIONS OF ILO -

The I.L.O Conventions and Recommendations have been greatly honoured by the working class

all over the world for their benefiting humanitarian and missionary zeal. These I.L.O standards

are considered the embodiment of social justice by the underprivileged, a magna carta of their

liberty and proclamation of their freedom and dignity against tyranny, whether social or economic or political.

It can be mentioned here that the I.L.O standards have been ratified by all the countries

irrespective of their political complexions or economic development and also varying forms and

number depending upon many factors. India is also greatly benefited by the I.L.O standards for

the welfare of the workers.

There is a detailed procedure for ratification of the Conventions and Recommendations and the

Conventions analogues to International Treaties with required ratification by competent authority

within a period of 18 months at the latest from the closing session of the conference. The time

limit is intended to induce quicker action by the members’ state. In India the treaty making

power is regarded as ‘Executive Act’ within the competency of the Government of India.

RATIFICATION OF ILO STANDARDS BY INDIA -

However the power to exact implementation of legislation lies in hands of Parliament, in contrast

to the situation obtaining in the U.S.A., Canada and Australia. Article 253 of the Indian

Constitution expressly provides that "Notwithstanding anything in the foregoing provisions of this chapter.Parliament has power to make any law for the whole or any part of the territory of India for implementing anytreaty, agreement or convention with any other decisions made at any international conference association orother body”.

According the scope of implementing legislation in India not limited to subjects with in the legislativejurisdiction of the union parliament.

Therefore the making of the treaty in India is unlimited. As regards the subject matter perhaps

the only limitation is that legislation to give effect to treaties and agreements or decision cannot

be violate the fundamental rights mentioned in part III of the Constitution of India.

Under Article 13 of the Constitution, any law which violates rights guaranteed under part-III of theConstitution of India is void to the extent of repugnancy. In other words, there are no constitutional limitationsupon the powers of the Union Government to enter into treaties with other States or internationalorganizations except those provided in part III of the constitution.

The treaty enables the parliament to override the federal distribution of the powers under

the Constitution of India. This concept has been borrowed from the American constitution.

The scope of the treaty power was considered by the Supreme Court of the United States.

TWO- FOLD IMPACT

IMPACT OF ILO ACTIVITIES ON INDIAN LABOUR PROBLEMS -

Firstly, the I.L.O was an important source for the labourlegislation in India through the ratification of the I.L.O standards which are incorporated into existing labour laws. Labour Law regulates matters, such as, labour employment, remunerations, and conditions of work, trade unions, and labourmanagement relations. They also include social laws regulating such aspects as compensation for accident caused to a worker at work, fixation of minimum wages, maternity benefits, sharing of the company’s profit by the workers and so on. Most of these legal instruments regulate rights and responsibilities of the working people.

Secondly, The approach of India with regard to International

Labour Standards has always been positive. The ILO

instruments have provided guidelines and useful framework for

the evolution of legislative and administrative measures for the

protection and advancement of the interest of labour. To that

extent the influence of ILO Conventions as a standard for

reference for labour legislation and practices in India, rather

than as a legally binding norm, has been significant.

Ratification of a Convention imposes legally bindingobligations

on the country concerned and, therefore, India has been careful

in ratifying Conventions. It has always been the practice in

India that we ratify a Convention when we are fully satisfied

that our laws and practices are in conformity with the relevant

ILO Convention. It is now considered that a better course of

action is to proceed with progressive implementation of the

standards, leave the formal ratification for consideration at a

later stage when it becomes practicable. We have so far ratified

39 Conventions of the ILO, which is much better than the

position obtaining in many other

countries.

A STUDY ON LABOUR WELFARE MEASURES

AT TAMIL NADU STATE TRANSPORT CORPORATION, VILLIPURAM DIVISION

INTRODUCTION –

Transport development plays a vital in the context of economic development. For further development, the corporation has to provide the labour welfare facilities pointed out in the labour law. Once the labours are satisfied with the facilities provided to them, automatically the output from the workers will be a tremendous one. But after the globalization process and the News Economic Policy, the Government of India, particularly the Government of Tamil Nadu neither their fill up the existing vacancies nor increase the number of labourvacancies. This not only affected the labour welfare facilities and also increased the burden of the present labours. In this context, it is necessary to study the labour welfare facilities available in the Tamil Nadu State Transport Corporation. This study analyses the various dimensions of labour welfare measures that are perceived by the labours. It highlights the perception of the labours regarding the various welfare measures provided to them. This study suggest suitable recommendations to i mprove labour welfare measures in public sector transport corporation

CASE – STUDY

Labour welfare has become essential because of the very nature of the industrial system. The approach to this problem of movement differs from country to country according to the degree of development in a particular country. However, the need for labour welfare in some way or the other is realized all over the world because of

the socio-economic conditions and problems, which the industrial society has thrown up. The specific transport setor is a high priority sector as far as the labour welfare are concerned because , a transport company has many types of workers operating in it. There are many supporting staff other than the drivers or the navigators. Even the main employee, that is the drivers are subjected to various rigorous journeys across states and even countries. And in a highly uncertain and risky job given the sordid road infrastructure of India, mere monetary remuneration is not enough to highlights the overall need of an employee. A good transport corporation should be responsible in monitoring and mitigating the rising grievances to keep the wheels running smoother at all times of the year. This cannot be done by mere hunches, but by a systematic manner via which the laborers can input their expectations. This intricate research on the various shortfalls in the welfare state of the workers is the most vital part to address the issue of labour welfare. Otherwise , any measure , would be mis-directed, incompetent and eventually fail to address the core issues.

NEED FOR STUDY -

FINDINGS -`

AGE OF EMPLOYEES

This data depicts that in the specific transport sector , the majority of employees are between the range of 36-45 years of age. That is most of the workers are in thyeir mid- career stage. But even then we find that the mean age of the total workers pools ranges between 30 - 40. thus one can understnd that the expectations and job maturity is quite high in this organisation.

0%

5%

10%

15%

20%

25%

30%

35%

40%

26-35 36-45 45 - ABOVE

• The figure depicts the different salary ranges in the company, along with the employee that fall inderthe respective categories.

• This data tells us that even though there is hardly any wide dispersion in the age of the employee in the various departments, there is a wide gap with regards to the wages that are being paidin the organisaton.

• This tells us that most of the workers are less or semi skilled ,

percentage

0%

10%

20%

30%

40%

50%

60%

70%

below 5000

6000-8000

above 9000

From the above diagram we can say that the majority of workforce are non- technical

graduates, and they definitely desire a certain standard of living that the corporation is

responsible to provide. So a majority of welfare measures will be driven by the

expectations and suggestions of these workers. The fact that most of them are above the

age 0f 36 and 40 , implies that most of them are married . Hence a big part the welfare

measures were needed to be family oriented.

percentage

0%

10%

20%

30%

40%

50%

60%

70%

non-technicaldiploma

graduate

• From the above figures we can judge that most of the workers in the transport corporation are graduates with a high skills . Most of these educated workers have a work experience of 11- 15 years and this is a important aspect to consider when we go to review there employment status.

• It is so because, at this stage of one’s professional life, the money is not incentive enough to feel satisfied in an organization. The challenges at workplace and their position is a big aspect apart of the various benefits that they might feel as entitled to. So it is the prerogative of the organisation to satsfy their needs and expectations , otherwise in this specific organization, employees have a option to take jobs elsewhere with better compensations and benefits,, since they now are hard- core professionals and not just new recruits. Thus the welfare measures should be more calculated and directed to cater their needs as per their social stature and economic obligation, to retaiin their trained and experienced employee pool.

percentage

0%

10%

20%

30%

40%

50%

60%

6-10 yrs 11-15 yrs 16 yrs

Chart showing the working experience of the employees

Now we take note of the degree of satisfaction and dissatisfaction among employees with

regards to the prevailing conditions in the corporation

SATISFIED

workinf environment

workers education

canteen facility

night duty

rest rooms

medical facility

workinfg allowances

NEUTRAL

workinf environment

workers education

canteen facility

night duty

rest rooms

medical facility

workinfg allowances

DISSATISFIED

workinf environment

workers education

canteen facility

night duty

rest rooms

medical facility

workinfg allowances

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NEUTRAL

DISSATISFIED

SATISFIED

CHART SHOWS THE DEGREE TO WHICH TH EMPLOYEES ARE STAISFIED WITH THE LABOUR WELFARE MEASURES

THAT HAVE BEEN TAKEN BY THE ORGANISATION’S MANAGEMNT SO FAR

THE DATE HAS BEEN SEGREGATED INTO 3 CATEGORY OF FEEDBACK. THY ARE DIVIDED INTO, SATISFIED ,

DISSATISFIED AND EMPLOYEES WHO ARE RELUCTANT OR INDIFFERENT TO THE WELFARE ACTIVITIES OF THE

TRANSPORT CORPORATION.

• Majority of respondents to the survey had 11 to 15 years of age.

• Most of the respondents are highly satisfied with the prevailing working conditions. But even then the management overlooked the minor elements of contention like the canteen facilities. Etc.

• Night duty was a major issue of irritation.

• 89% of the respondents claimed to have experienced very high work load and long hour of operation.

• This was aggravated by the acute shortage of the restrooms at workplace.

• 65% of the respondents mentioned that the leave facility are at moderate level.

• Most of them are satisfied with the post- retirement benefits.

• Though the corporation has taken care of the medical facility , a substantial section claims dissatisfaction regarding the prevailing medical facility and practices.

• In the 2007 settlement majority of respondents were dissatisfied with the implementation gratuity.

• The employees are equally divided with regards to the educational facility in the organization.

INFERENCES FROM THE STUDY

• The State Transport Undertakings are implementing the following welfare measures for

• the welfare of the workers and their families

• Due weight age to experience

• Free Travel passes to the children of the employee

• Subsidized canteen facilities

• Education allowances

• Allowances with wages

• Reimbursement of legal fees

• Providing uniforms to employees

• Family Benefit Fund

• Loan for Marriages

• Steering Allowance

• Voluntary Retirement Scheme

• Leave benefits

• Holiday Homes

• Special Health Fund Scheme

• Preferential Admission in Medical College, Engineering College and Polytechnics

run by the

• Institute of Road Transport for the children of employees

• The Pension Scheme for Transport employees

• Employees' Post-Retirement Benefit Fund Scheme

• Funeral expenses

LABOUR WELFARE MEASURES -

Thank you