Labour Welfare

Introduction to Labour Welfare

Labour welfare is an important facet of industrial relations, the extra dimension, giving satisfaction to the worker in a way, which even a good wage cannot. With the growth of industrialization and mechanization, it has acquired added importance. The worker, both in industry and agriculture, cannot cope with the pace of modern life with minimum sustenance amenities. He needs an added stimulus to keep body and soul together. Employers have also realized the importance of their role in providing these extra amenities. And yet, they are not always able to fulfill worker's demands however reasonable they might be. They are primarily concerned with the viability of the enterprise. Labour welfare, though it has been proved to contribute to efficiency in production, is expensive. Each employer depending on his priorities gives varying degrees of importance to labour welfare. It is because the government is not sure that all employers are progressive minded and will provide basic welfare measures that it introduces statutory legislation from time to. time to bring about some measure of uniformity in the basic amenities available to industrial workers.

Today, welfare has been generally accepted by employers. The state only intervenes to “widen the area of applicability”. It is now accepted that it is a social right.

Definition of Labour Welfare

The term ‘Labour Welfare’ has been defined in different ways. In a broad sense, it means the adoption of measures to promote the physical, social, psychological and general well being of the working people.

According to Arther James Todd, “Anything done for the comfort and improvement, intellectual and social well being of the employees over and above the wages paid, which is not a necessity of the industry”. The Oxford dictionary defines employee welfare as “effort to make life worth- living for workmen.”

The Encyclopedia of social science defines welfare as, “voluntary efforts of an employer to establish working and sometime living and cultural conditions of his employees beyond what is required by law, the customs of industry and conditions of the market”.

In 1947, ILO and Delhi Regional Conference defines welfare as, “such services, facilities and amenities, which may be established in or in the vicinity of undertakings to enable persons employed therein to perform his work in healthy and congenial surroundings and to provide them with amenities conducive to good health and good morals”.

The document which as submitted in the international social work conference by the Latin American Countries in 1956 held in Munich describes welfare as “all kinds of services undertaken by the employer to promote the physical, social cultural and living condition of the employees and their families.”

From all these definitions, it is apparent that none is complete or comprehensive. There are no precise definite outline or demarcation in this subject. However, what is defined is that labour welfare promotes the wellbeing of workers in a variety of ways. Any kind of voluntary service will come under the purview of labour welfare if it aims at helping the worker to work better and in more meaningful manner, physically, socially, morally, economically and intellectually.

Scope of Labour Welfare

The scope of labour welfare has to be elastic and flexible enough to suit the existing conditions of the workers and to include all the essential prerequisites of life and the minimum basic amenities. It also differs from time to time, region to region, industry to industry and country depending upon the value system, level of education, social customs, degree of industrialization and general standard of the socio-economic development of a people. It is also related to the political situation in a country. Sometimes, the concept is a very wide one and is more or less synonymous with conditions of work as a whole. It may include not only the minimum standard of hygiene and safety laid down in general Labour legislation, but also such aspects of working life as social insurance schemes, measures for the protection of women and young workers, limitation of hours of work, paid vacation etc. In other cases, the definition is such more limited and welfare, in addition to general physical working conditions, is mainly concerned with the day-to-day problems of the workers and the social relationships at the place of work. In some countries, the use of welfare facilities provided is confined to the workers employed in the undertaking concerned, while in others, the worker’s, families are allowed to share in many of the benefits which are made available.

The scope of Labour welfare has been described by writers and institutions in different ways and from different angles. The line of demarcation cannot be very precise but what should be the common characteristics is that a welfare measure should ameliorate the working and living conditions of workers and their families and make their lives more meaningful.

It follows therefore, that an extra-mural and intramural welfare activities as well as statutory or non-statutory welfare measures undertaken by employers, government, trade union or voluntary organizations fall within the Scope of labour welfare.

Objectives of Labour Welfare

The objectives of Labour Welfare are

to increase efficiency and productivity among workers to improve moral & loyalty to build up stable labour force and to lower turnover & absenteeism to earn goodwill and enhance public image to reduce the influence of union to attract efficient employees to reduce the threat of further government intervention.

Classification of Labour Welfare

Labour welfare programs can be classified from different angles. They are as follows:

On the basis of Status: Labour welfare can be considered as: Statutory : Statutory welfare is composed of those provisions of welfare

work implementation, which depend on the coercive power of the government. The Govt. enacts certain rules regarding labour welfare. in order to enforce the minimum standards of healthy and safety of the worker and the employers have to observer these rules.

Voluntary : Voluntary welfare includes all those activities, which employers undertake for their workers on voluntary basis.

Mutual : Mutual welfare is a “Corporate Enterprise” undertaken by the workers themselves.

Labour Welfare is also classified under two categories Intra-mural activities: It includes services provided inside the factory

premises. Infra—mural activities are welfare and amenities within the premise of the

establishment are latrines and urinal facilities, rest rooms, canteens, drinking water, health services Occupational Safety etc. (According to ILO)

Extra-mural activities: It includes services and amenities outside the factory. Extra-mural activities are welfare outside the establishments. i.e. maternity benefit, social insurance, medical facilities, education facilities, recreation facilities, transport to and from place of work etc. (According to ILO)

The above categorization is used by ILO.

General Classification:

Labour welfare service is also classified under the following three heads in general based on type of services.

Economic services - Loans, insurance, gratuity, Provident Fund, Pensions etc. Recreational services - Sports and games, social events etc. Facilitative services - Medical service, housing, Educational facility, canteen, Co-

operative store, ' Transport facility, Legal counselling etc.

Need for Labour Welfare:

Many management are sensitive to the needs and problems of their employees. They recognize that at times employees face crisis, which is beyond their resources to handle. Left to their own devices many workers would be unable to provide for themselves in their old age. They need help from other sources. To provide protection against the various risk of living, the employer pays part of the cost. There are two basic arguments for having the employer contribute toward employee services.

One is that they are human beings. This point of view can be bolstered by ethical and religious doctrines.

The other argument is ‘enlightened self-interest’. The employer knows that anxieties, worries and family crisis that happen to a man outside his working hours tend to affect his job performance in the plant. Therefore it is to the Company own advantage to help its people out, financially and with personal assistance, when adversity strikes.

Quite frequently management will establish certain benefits and services because it believe that these will enhance moral and create more positive attitudes towards the company.

Sometimes Companies establish attractive fringe benefit programme in order to enhance their public relations image. The Company may accept thereby to improve its market position and enhance product acceptance in the minds of the buying public. The Company may also expect to gain greater respect from the community because it has demonstrated a considerable measure of social responsibility by establishing a sound benefit programme. Union bargaining power is often the main reason; a Company adopts a particular benefit programme.

Principles of Labour Welfare

Firstly, every type of welfare service should be subjected to periodic review and evaluation so as to see the effectiveness of the existing services.

Secondly, services available at the community level should always be watched to avoid the duplication of services so as to utilize them effectively for the welfare of their employees.

Thirdly, employee’s welfare plans will be of no good if the wage, structure and working conditions are bad. These are foundations until this is sound, service plan should be delayed.

Fourthly, a plan should not be taken up unless they are willing to support it with their time, effort and sometimes money. Free service is seldom appreciated.

Fifthly, a plan should be started with minimum of financial allotment otherwise there is danger that employees will wonder whether or not plans are being financed at the expense of their low wages.

Sixthly, communication between worker and management should also be improved through suggestion system in order to obtain the views of employees, reactions to management’s methods and practices.

Lastly, administration of welfare service must be done jointly, the Labour Welfare Officer, should only assist in a staff capacity- he plans the programme, arranges technical services, mobilizes the existing resources and generates participation by workers.

The above labour welfare principles can be summarized in the following way

1. The welfare service should satisfy real needs of the worker. 2. The welfare service should be such as can be handled best by a group approach. 3. The welfare service should be such as to avoid duplication. 4. The welfare service should be established and implemented with the active support & cooperation of management and employees. 5. The cost of the welfare service should be calculable and it’s financing established on a sound basis. 6. There should be periodical assessment or evaluation of welfare services for timely improvement on the basis of feedback. 7. Administration of welfare services must be done jointly.

Characteristics of Labour Welfare Programme

Firstly, they are of primary advantage and value to the employee. The many of course, also prove helpful to the employer in getting and holding better employees but their immediate and most obvious value is to employees.

Secondly, they are distinctly supplemental to regular wages and salaries. They are provided as benefits or services beyond the annual, monthly or hourly salary or wages.

Thirdly, they are supported or financed in part of altogether by the employer.

Fourthly, they provide a type of assistance or aid that an employee in his own initiative and as an individual either cannot or is not likely to secure.

Benefits from/for Labour Welfare

Increased productivity More effective recruitment Improved morale and loyalty Lower turnover and absenteeism Good public relations Reduced influence of unions Reduced threat of further governmental intervention.

Reasons for the rapid growth of Labour Welfare ProgrammesThe rapid growth of welfare programme can be traced to such sources as:

A changed employee attitude Labour employer demands Statutory requirements Competition that forces other employers to match benefits to attract and keep Labour High company income tax rates have also stimulated the offering of services.