Labour WelfareLabour Welfare

Smita.S.KumarSmita.S.KumarSr. ConsultantSr. ConsultantWorld Class Productivity Services World Class Productivity Services Pune Pune

Meaning Of Labour WelfareMeaning Of Labour Welfare

““Labour welfare means the effort to make life worth living for workmen”Labour welfare means the effort to make life worth living for workmen”

Welfare includes anything that is done for the comfort and improvement of Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages.employees and is provided over and above the wages.

Welfare helps in keeping the morale and motivation of the employees high Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration .so as to retain the employees for longer duration .

The welfare measures need not be in monetary terms only but in any kind The welfare measures need not be in monetary terms only but in any kind forms .forms .

Meaning Of Labour WelfareMeaning Of Labour Welfare

Employee welfare includes monitoring of working conditions ,creation of Employee welfare includes monitoring of working conditions ,creation of industrial harmony through infrastructure for health ,industrial relations and industrial harmony through infrastructure for health ,industrial relations and insurance against disease, accident and unemployment for the workers and insurance against disease, accident and unemployment for the workers and their families .their families .

Labour welfare entails all those activities of employers,which are directed Labour welfare entails all those activities of employers,which are directed towards providing the employees with certain facilities and services in addition towards providing the employees with certain facilities and services in addition to wages or salaries.to wages or salaries.

The concept of labour welfare is flexible and elastic and differs widely with The concept of labour welfare is flexible and elastic and differs widely with times,regions,industry,country,social values and customs, degree of times,regions,industry,country,social values and customs, degree of industrialization. industrialization.

Rapid industrialization and urbanization have made employees dependent on Rapid industrialization and urbanization have made employees dependent on capitalists.capitalists.

Meaning Of Labour WelfareMeaning Of Labour Welfare

Labour welfare implies the services, facilities and amenities Labour welfare implies the services, facilities and amenities provided to workers within or outside the establishment for their provided to workers within or outside the establishment for their physical ,mental and social wellbeing.physical ,mental and social wellbeing.

Definition Of Labour WelfareDefinition Of Labour Welfare

In the words of Arthur James toddIn the words of Arthur James todd

“ “ Labour Welfare means anything done for the comfort and Labour Welfare means anything done for the comfort and improvement , intellectual and social of the employees over and improvement , intellectual and social of the employees over and

above the wages paid which is not necessity of the industry”above the wages paid which is not necessity of the industry”

According to an ILOAccording to an ILO

“ “ Labour Welfare may be understood as including such services Labour Welfare may be understood as including such services facilities and amenities which may be established in or in the facilities and amenities which may be established in or in the

vicinity of undertaking to perform their work in healthy and vicinity of undertaking to perform their work in healthy and congenial environment and to avail of facilities which improve their congenial environment and to avail of facilities which improve their

health and bring high morale”health and bring high morale”

The committee on Labour The committee on Labour Welfare ( 1946 )Welfare ( 1946 )

Defined it Defined it

“ “ Such Services ,facilities and amenities as adequate Such Services ,facilities and amenities as adequate canteen, rest and recreation facilities ,sanitary and canteen, rest and recreation facilities ,sanitary and medical facilities, arrangements for travel to and from medical facilities, arrangements for travel to and from work and for the accommodation of workers employed work and for the accommodation of workers employed at a distance from their homes ,and such other at a distance from their homes ,and such other services, amenities and facilities ,including social services, amenities and facilities ,including social security measures as contribute to improve the security measures as contribute to improve the condition under which workers are employed.”condition under which workers are employed.”

Features of Labour WelfareFeatures of Labour Welfare On the basis of these definitions, the following features of employees welfareOn the basis of these definitions, the following features of employees welfarecan be identified :-can be identified :-

Labour welfare includes various facilities ,services and amenities provided to Labour welfare includes various facilities ,services and amenities provided to workers for improving their health ,efficiency ,economic betterment and social workers for improving their health ,efficiency ,economic betterment and social status .status .

Welfare measures are in addition to regular wages and other economic benefits Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargaining .available to workers due to legal provisions and collective bargaining .

Labour welfare schemes are flexible and ever changing .New welfare measures Labour welfare schemes are flexible and ever changing .New welfare measures are added to the existing ones from time to time.are added to the existing ones from time to time.

Welfare measures may be both voluntary and statutory.Welfare measures may be both voluntary and statutory.

Features of Labour WelfareFeatures of Labour Welfare

Welfare measures may be introduced by the employers , Welfare measures may be introduced by the employers , government ,employees or by any social or charitable agency.government ,employees or by any social or charitable agency.

The purpose of labour welfare is to bring about development of The purpose of labour welfare is to bring about development of the whole personality of the workers to make a better workforce.the whole personality of the workers to make a better workforce.

The very logic of providing welfare schemes is to create efficient , The very logic of providing welfare schemes is to create efficient , healthy ,loyal and satisfied labour force for the organization.healthy ,loyal and satisfied labour force for the organization.

The purpose of providing such facilities Is to make their work The purpose of providing such facilities Is to make their work better and also to raise their standard of living better and also to raise their standard of living

Importance of labour welfareImportance of labour welfare The important benefits of welfare measures can be summarized The important benefits of welfare measures can be summarized

as follows :- as follows :-

They provide better physical and mental health to workers and They provide better physical and mental health to workers and thus promote a healthy work environment .thus promote a healthy work environment .

Facilities like housing schemes ,medical benefits and education Facilities like housing schemes ,medical benefits and education and recreation facilities for workers families help rising their and recreation facilities for workers families help rising their standards of living .this makes workersto pay more attention standards of living .this makes workersto pay more attention towards work and thus increases their productivity.towards work and thus increases their productivity.

Employers get stable labour force by providing welfare Employers get stable labour force by providing welfare facilities .workers take active interest in their jobs and work with a facilities .workers take active interest in their jobs and work with a feeling of involvement and participation.feeling of involvement and participation.

Employee welfare measures increase the productivity of Employee welfare measures increase the productivity of organisation and promote healthy industrial relations thereby organisation and promote healthy industrial relations thereby maintaining industrial peace. The social evils prevalent among the maintaining industrial peace. The social evils prevalent among the labour such as substance abuse , etc are reduced to a greater labour such as substance abuse , etc are reduced to a greater extent by the welfare policies.extent by the welfare policies.

The employee welfare schemes can be classified into two The employee welfare schemes can be classified into two categories vizcategories viz . .

Statutory schemes.Statutory schemes. Non –Statutory welfare schemes .Non –Statutory welfare schemes .

The statutory schemes are those schemes that are compulsory to The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the law governing provide by an organization as compliance to the law governing employee health and safety .these include provisions provided in employee health and safety .these include provisions provided in industrial acts like Factories Act 1948 , Dock Workers Act ( Safety, industrial acts like Factories Act 1948 , Dock Workers Act ( Safety, Health and Welfare )1986 , Mines Act 1962.Health and Welfare )1986 , Mines Act 1962.

The Non – Statutory schemes differ from organization to organization The Non – Statutory schemes differ from organization to organization and from industry to industry.and from industry to industry.

Benefits / Objectives Of Labour WelfareBenefits / Objectives Of Labour Welfare

1.1. It helps improve recruitment.It helps improve recruitment.

2.2. It improves the morale and loyalty of worker by making them It improves the morale and loyalty of worker by making them happy and satisfied.happy and satisfied.

3.3. It reduces labour turnover and absenteeism thereby building a It reduces labour turnover and absenteeism thereby building a stable workforce .stable workforce .

4.4. It helps to increase the employee productivity or efficiency by It helps to increase the employee productivity or efficiency by improving their physical and mental health.improving their physical and mental health.

5.5. Improvement in material ,intellectual and cultural conditions of Improvement in material ,intellectual and cultural conditions of life protects workers from social evils like drinking ,gambling etc.life protects workers from social evils like drinking ,gambling etc.

Benefits / Objectives Of Labour WelfareBenefits / Objectives Of Labour Welfare

6.6. Employee welfare helps to improve industrial relations and Employee welfare helps to improve industrial relations and industrial peace.industrial peace.

7.7. Welfare measures help to improve the goodwill and public Welfare measures help to improve the goodwill and public image of the enterprise.image of the enterprise.

8.8. Voluntary efforts for the welfare of workers reduce the threat of Voluntary efforts for the welfare of workers reduce the threat of further government intervention.further government intervention.

9.9. It enables the workers to enjoy a fuller and richer life.It enables the workers to enjoy a fuller and richer life.

10.10. It develops a sense of responsibility and dignity among workers It develops a sense of responsibility and dignity among workers and thus to make them worthy citizens of the nation.and thus to make them worthy citizens of the nation.

Principles Of Labour Welfare ServicesPrinciples Of Labour Welfare Services

The services should satisfy real needs of the workers .this means The services should satisfy real needs of the workers .this means that the manager must first determine what the employee’s real that the manager must first determine what the employee’s real needs are with the active participation of worker.needs are with the active participation of worker.

Services should such as can be handled by cafeteria approach .Due Services should such as can be handled by cafeteria approach .Due to the difference in age,marital status ,number of children ,type of to the difference in age,marital status ,number of children ,type of jobs and the income level of the employees there are large jobs and the income level of the employees there are large differences in their choice of a particular benefit system though it differences in their choice of a particular benefit system though it may be difficult to operte and administer.may be difficult to operte and administer.

The employer should not assume a benevolent posture.The employer should not assume a benevolent posture.

The cost of the service should be calculated and its financing The cost of the service should be calculated and its financing established on a sound basis.established on a sound basis.

There should be periodical assessment or evaluation of the service There should be periodical assessment or evaluation of the service and necessary timely on the basis of feedback.and necessary timely on the basis of feedback.

Theories of Labour WelfareTheories of Labour Welfare

The policy theory .The policy theory . The religious theory.The religious theory. The philanthropic theory.The philanthropic theory. The trusteeship theory.The trusteeship theory. The placating theory.The placating theory. The public relation theory.The public relation theory. The functional theory.The functional theory.

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