12 – Welfare

Introduction

Every organisation hears what employees say; good companies listen to what employees say, while employee welfare organisations listen to what employees don’t have to say.

Employers, trade unions, governments, and non-governmental organisations are all responsible for the well-being of their employees. This responsibility refers to enhancing employee benefits.

Employee welfare is “efforts to make workmen’s lives worth living.” These efforts may result from a state-enacted statute, a local custom, a collective bargaining agreement, or the employer’s initiative.

Employee or labour welfare is a broad phrase that refers to various services, perks, and facilities the company provides to its employees. The employer makes life worth living for employees by offering significant fringe benefits. The welfare benefits are provided in addition to the regular pay and other financial benefits that employees are entitled to under the law. “Labour welfare work,” according to Dr Parandikar, “is work aimed at increasing the health, safety, and general well-being of workers, as well as their industrial efficiency, beyond the minimum standard set by labour regulations.” In addition to the employer, welfare measures may be given by the government, trade unions, and non-governmental organisations. The primary goal of labour welfare is to improve workers’ lives and keep them happy. Statutory and volunteer welfare interventions are also possible. In addition to salaries, employers are required by law to provide certain employee benefits. Employer generosity, enlightenment, and philanthropic attitudes result in voluntary benefits.

According to the Royal Commission on Labour, “labour welfare” must be flexible and have varied meanings in different countries, depending on social conventions, the degree of industrialization, and the educational level of employees.

“Efforts to make life worth living for workers,” according to the Oxford Dictionary. “A state of faring or doing well; freedom from misfortune, enjoyment of health, wealth,” according to Chamber’s Dictionary. “Such services, facilities, and amenities, which may be established in, or in the vicinity of undertakings, enable persons employed therein to execute their work in healthy and congenial settings and to provide amenities conducive to good health and high morale,” according to the ILO study. (Mamoria; Sharma)

12.1 Importance

The relevance of welfare measures was recognised as early as 1931 when the Royal Commission on Labour stated: The benefits are of enormous value to workers who cannot get them on his own. Labour welfare schemes may be considered a prudent investment because they would result in a profitable return through increased efficiency.

Harsh times are never long-lasting, but the status quo appears to be going on indefinitely. Employee wellness programmes should not be sacrificed in the name of cost-cutting. The goal is to be frugal with your money while maintaining frequent contact to avoid negative rumours and protect employee morale.

The working environment in a factory hurts employees’ health because of extreme heat or cold, noise, fumes, dust, and a lack of cleanliness and clear air. Workers’ health suffers as a result of such demanding situations. These must be contained through preventative measures aimed at enhancing the working conditions of employees.

The ‘social invasion of the factory’ is a second argument favouring welfare work. When workers start working in factories, they encounter numerous challenges. Congested environments, noisy machinery, slum areas, and monotonous jobs impact the mindset of rural people who move to cities in search of work. To escape such challenging circumstances, the worker disappears, becomes erratic, and displays signs of indiscipline. Such shifts, dubbed the “social invasion of the factory,” necessitate additional incentives in the workplace and standard compensation so that the worker can begin to live a fuller and more prosperous life.

“The provision of canteens improves the physique; entertainment reduces the incidence of vices; medical aid, maternity and child welfare services improve the health of the workers and reduce the rates of general, maternal, and infantile mortality; and educational facilities increase their mental efficiency and economic productivity,” according to another social reason cited by the Labour Investigation Committee.

It’s not easy to look beyond profit margins and focus on employee well-being when the bottom line is dwindling, but it may be the need of the hour. Many organisations, on the other hand, regard employee welfare as a hygiene concern.

12.2 Nature

1. The employer performs labour welfare work to improve the living conditions of employees.
2. The work often includes elements of welfare that go above and beyond what the employees expect due to the employer’s service contract.
3. Providing welfare services aims to help the worker develop his or her entire personality, including social, psychological, economic, moral, cultural, and intellectual growth.
4. Welfare work is an exception to the rule book, as it is not necessarily required by law and is carried out by progressive businesses.
5. If the government or trade unions have the resources available, they may pursue these initiatives.
6. It should be highlighted that not only intramural but also extramural, statutory and non-statutory activities for workers’ physical and mental development are carried out by any of the three bodies – employers, trade unions, or the government (Punekar; Vaid).

12.3 Types

(a) Canteens, (b) Consumer Societies, (c) Credit Societies, (d) Credit Societies, (e) Credit Societies, (f) Credit Societies, (g) Credit Societies, h) vacation homes, i) housing, j) legal aid, k) employee counselling, l) welfare organisations, m) vacation homes, n) educational facilities; (o) transportation; (p) parties and picnics; and (q) other.

1. Canteens: Under Section 46 of the Workplaces Act of 1948, employers must provide canteens in factories with more than 250 employees. Food is provided at subsidised costs in these canteens.
2. Consumer Stores: The most prominent companies, far from towns, set up consumer stores in the employee colonies and offered all necessary goods at fair prices.
3. Credit Societies: Some companies encourage employees to create cooperative credit societies to stimulate self-help rather than relying on money lenders, while others provide loans directly to employees.
4. Accommodation: Most companies developed quarters closer to the factory and provided affordable and decent housing for their employees, while a few companies supply and arrange housing loans for employees and encourage them to build their own homes.
5. Legal Aid: Organizations also provide support or aid to employees in legal matters as needed through a company lawyer or other means.
6. Employee Counselling: Organizations provide trained counsellors to employees to help them with personal issues. Employee counselling lowers absenteeism, turnover, and tardiness, among other things.
7. Welfare Organizations and Welfare Officials: Give all sorts of welfare facilities at one location and designate welfare officers to provide welfare benefits to all employees fairly and consistently.
8. Holiday Homes: To encourage employees to use these facilities for relaxation, a few large organisations established holiday homes at various hill stations, health resorts, and other locations with low lodging prices.
9. Educational Facilities include fee reimbursement and the establishment of schools, colleges, and hostels. Employees also have access to rooms and libraries provided by the organisations.
10. Transportation: Because most factories are located outside of town and not all employees can access quarters, companies provide transportation from their homes to their workplaces.
11. Parties and picnics: Companies provide these amenities to foster a sense of connection, openness, and freedom among their employees.

12.4 Statutory Requirements

The Plan for the Labour and Labour Welfare Sector includes four categories of projects. They are as follows: I Skill development training, (ii) Job seeker services, (iii) Labor Welfare, (iv) Labor Regulations Administration. Through the strategies of several labour-intensive sectors, several measures are taken to improve the welfare of workers. Different labour regulations require employers to provide welfare benefits to their employees. These are described in the following sections (Labour Laws 2009):

12.4.1 The Factories Act of 1948

Workers are provided with the following services under the Act:

• Separate washing facilities for male and female workers.
• Clothing storage and drying facilities are available.
• Facilities for workers working in a standing position for long periods to take a break.
• If there are more than 500 workers, there should be one first aid box or cupboard for every 150 workers and an ambulance service.
• Canteens, which employ more than 250 people.
• Over 150 people are working in shelters, restrooms, and lunch rooms.
• If there are 30 or more workers, a creche is required; if there are 500 or more workers, a welfare officer is needed.

12.4.2 The 1951 Plantation Labour Act

• The Act provides for a canteen if there are 150 or more workers;
• A creche if there are 50 or more women workers;
• Recreational facilities for workers and their children;
• Educational arrangements in the estate if there are 25 or more workers’ children aged 6 to 12.
• Medical aid to workers and their families;
• sickness and maternity allowance. Providing umbrellas, blankets, and raincoats to workers as protection against rain or cold – as required by the State government if 300 or more people are employed

12.4.3 The Mines Act of 1951

If 50 or more workers are employed, the Act provides for the following:

• Shelters for eating and resting if 50 or more workers are employed;
• First-aid boxes and first-aid rooms if 150 or more workers are employed;
• A canteen if 250 or more workers are employed;
• A creche if 50 or more females are employed;
• Pit-head baths equipped with showers and sanitary latrines if 500 or more workers are employed;
• A welfare officer with 500 or more

12.4.4 The 1961 Motor Transport Workers Act

The following provisions are included in the Act:

• First aid equipment in each transport vehicle, etc.
• Medical facilities at the operating and halting centres
• Canteen if employing 100 or more workers
• Comfortable, clean, ventilated, and well-lit restrooms at every place where motor transport workers are required to halt at night
• Uniforms and raincoats for conductors, drivers, and line-checking staff for protection against cold and rain
• The laundry allowance is allotted to the employees mentioned above.

The Contract Labor (Regulation and Abolition) Act of 1970 regulates and abolishes contract labour.

The Act requires the contractor to provide the following benefits to workers: a canteen if there are 100 or more workers; restrooms or other suitable alternative accommodation where contract labour is required to stop at night in connection with an establishment’s work; washing facilities; and first aid boxes with prescribed contents.

12.5 Workplace Welfare Officer

If a unit employs more than 500 people, the Factories Act of 1948, the Plantation Labour Act of 1951, and the Mines Act of 1951 require the appointment of a Labour Welfare Officer (300 as per the Plantation Act). The position was formed primarily to (i) reduce jobber system recruitment malpractices, (ii) strengthen factory labour administration, and (iii) function as a liaison with the State Labour Commissioner. In terms of law and order within an organisation, the Labour Welfare Officer was also required to perform the duties of a police officer. The individual state governments may impose duties, qualifications, and service conditions on such officers in each situation.

The Labour Welfare Officer is required to have a university degree, degree, or diploma in social service/social work from a recognised institution and an adequate understanding of the local language in the area where the factory is located.

Advisory: He can provide advice and recommendations on how to formulate firm labour policies, promote training programmes, promote welfare schemes, secure housing, recreational and educational facilities for employees, and so on.

Service Oriented: He can assist workers in resolving family and personal issues, adjusting to the workplace, recognising their rights and advantages, and sending leave applications, among other things. He can assist management by helping employees understand various issues.

Supervisory: He has the authority to oversee, inspect, and control welfare, health, and safety programmes, joint committee meetings, and paid vacations.

Functional: He is functional in that he can supervise the application of labour rules to benefit workers.

Policing: He can communicate workers’ problems to management, affect the mood of industrial relations when disputes emerge, and prevent workers and management from engaging in illegal strikes and lockouts.

Mediation: He can mediate and foster harmony between labour and management, ensuring prompt redress of employees’ grievances, settling disputes by persuasive efforts, maintaining a neutral attitude during strikes and lockouts, and thus assisting in the peaceful resolution of troublesome situations.

12.6 Welfare Benefits and Drawbacks

Merits

1. Allows workers to live a fuller and more fulfilling life.
2. Welfare initiatives improve workers’ standard of living by easing their financial strain. As a result, employees’ physical and psychological health will improve, which will boost their efficiency and output.
3. Absorbs the shocks imposed on employees by industrialization and urbanisation.
4. Fosters a sense of belonging among employees, discouraging them from engaging in unhealthy behaviours such as absenteeism, labour turnover, strike action, etc. Welfare work makes mill work more appealing to employees. It strengthens the bond between employers and employees. “It encourages employers and employees to have a genuine change of heart and perspective.”
5. Improves labour’s material, social, and cultural circumstances to prevent social evils such as drinking, gambling, and prostitution. Welfare measures will create a more pleasant environment, which will deter such social problems.

Demerits

1. Significant financial outlay.
2. Employee dissatisfaction.