Anna University Chennai Industrial Relations Notes

NOTES
1 ANNA UNIVERSITY CHENNAI

INDUSTRIAL RELATIONS AND LABOUR WELFARE
UNIT I
INDUSTRIAL RELATIONS
Learning Objectives
After going though this unit you should be in a position to explain the following terminologies:
Concept of Industrial Relations
Importance of IR
Labour Turnover
Absenteeism
Trade Union
Codes of Conduct
1.1 INTRODUCTION
Industrial relations has become one of the most delicate and complex problems of
modern industrial society. Industrial progress is impossible without cooperation of labours
and harmonious relationships. Therefore, it is in the interest of all to create and maintain
good relations between employees (labour) and employers (management).
1.2 CONCEPT OF INDUSTRIAL RELATIONS
The termIndustrial Relations comprises of two terms: Industry and Relations.
Industry refers to any productive activity in which an individual (or a group of individuals)
is (are) engaged. By relations we mean the relationships that exist within the industry
between the employer and his workmen.
The term industrial relations explain the relationship between employees and
management which stemdirectly or indirectly fromunion-employer relationship.
Industrial relations are the relationships between employees and employers within the
organizational settings. The field of industrial relations looks at the relationship between
management and workers, particularly groups of workers represented by a union. Industrial
relations are basically the interactions between employers, employees and the government,
and the institutions and associations through which such interactions are mediated.
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NOTES
The term industrial relations have a broad as well as a narrow outlook. Originally,
industrial relations were broadly defined to include the relationships and interactions between
employers and employees. Fromthis perspective, industrial relations covers all aspects of
the employment relationship, including human resource management, employee relations,
and union-management (or labour) relations. Now its meaning has become more specific
and restricted. Accordingly, industrial relations pertains to the study and practice of collective
bargaining, trade unionism, and labour-management relations, while human resource
management is a separate, largely distinct field that deals with nonunion employment
relationships and the personnel practices and policies of employers.
The relationships which arise at and out of the workplace generally include the
relationships between individual workers, the relationships between workers and their
employer, the relationships between employers, the relationships employers and workers
have with the organizations formed to promote their respective interests, and the relations
between those organizations, at all levels. Industrial Relations also includes the processes
through which these relationships are expressed (such as, collective bargaining, workers
participation in decision-making, and grievance and dispute settlement), and the management
of conflict between employers, workers and trade unions, when it arises.
The industrial situation as reflected in the statement of mandays lost on account of
strikes and lockouts has shown improvement in recent years. Despite increase in the number
of strikes and lockouts in 1997 compared to 1996, the mandays lost due to these agitations
have actually declined. The total number of strikes and lockouts increased from 1166 in
1996 to 1305 in 1997, but the mandays lost on account of these strikes and lockouts
declined from 20.3 million in 1996 to 17 million in 1997 (Table 1.1). Among the states,
Andhra pradesh, Tamil Nadu, Gujarat and West Bengal recorded most of the agitations.
Cotton textiles, engineering and jute hemp and Mesta textiles were the industrial groups
which witnessed maximumloss of mandays on account of strikes and lockouts.
Wage and wage related issues, personnel issues, retrenchment and indiscipline have
been identified as major reasons behind strikes and lockouts. Protests against privatization
and entries of multinationals are issues that have gained importance in recent years. The
steady improvement in industrial relations has been possible mainly because of the
Governments proactive role through timely and effective conciliation of industrial disputes
and involvement of the social partners at various bipartite-tripartite fora for the formulation
of labour and industrial policies. One important issue, which needs to be addressed, is the
extant labour laws especially Industrial Disputes Act (IDA) 1947, which governs lay off,
retrenchment and closure. Central and State Governments have often been inhibited in
granting necessary permissions for closure, even when economic compulsions justified
granting of such permissions. It has often been observed that the present legal provisions
and procedures restrict labour market flexibility and thereby discourage growth of
employment. A thorough review of the provisions of the IDA and other labour legislations
NOTES
is called for to impart greater flexibility to the labour market and thereby encourage more
employment.
Considering the radical changes that have taken place in the domestic industrial scenario
and the labour market, the Government has decided to set up the Second National
Commission on Labour to suggest among others, rationalization of the existing laws in the
organized sector so as to make themmore relevant and appropriate in the changing context
of globalization and opening up of the Indian economy.
MEANING AND DEFINITION OF INDUSTRIAL RELATION
The relationship between Employer and employee or trade unions is called Industrial
Relation. Harmonious relationship is necessary for both employers and employees to
safeguard the interests of the both the parties of the production. In order to maintain good
relationship with the employees, the main functions of every organization should avoid any
dispute with themor settle it as early as possible so as to ensure industrial peace and higher
productivity. Personnel management is mainly concerned with the human relation in industry
because the main theme of personnel management is to get the work done by the human
power and it fails in its objectives if good industrial relation is maintained. In other words
good Industrial Relation means industrial peace which is necessary for better and higher
productions.
Other commonly referred definitions:
i. Industrial Relation is that part of management which is concerned with the manpower
of the enterprise whether machine operator, skilled worker or manager.
ii. Industrial Relation is a relation between employer and employees, employees and
employees and employees and trade unions. - Industrial dispute Act 1947
iii. While moving fromjungle of the definitions, here, Industrial Relation is viewed as
the process by which people and their organizations interact at the place of work
to
Establish the terms and conditions of employment.
The Industrial Relation relations also called as labor - management, employee-employers
relations.
A few notable features pertaining to Industrial Relations are as under:
1. Industrial Relation do not emerge in vacuumthey are born of employment relationship
in an industrial setting. Without the existence of the two parties, i.e., labour and
management, this relationship cannot exist. It is the industry, which provides the
environment for industrial relations.
2. Industrial Relation are characterized by both conflict and co-operations. This is
the basis of adverse relationship. So the focus of Industrial Relations in on the
study of the attitudes, relationships, practices and procedure developed by the
contending parties to resolve or at least minimize conflicts.
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NOTES
3. As the labor and management do not operate in isolations but are parts of large
system, so the study of Industrial Relation also includes vital environment issues
like technology of the workplace, countrys socio-economic and political
environment, nations labor policy, attitude of trade unions workers and employers.
4. Industrial Relation also involve the study of conditions conductive to the labor,
managements co-operations as well as the practices and procedures required to
elicit the desired co-operation fromboth the parties.
5. Industrial Relations also study the laws, rules regulations agreements, awards of
courts, customs and traditions, as well as policy framework laid down by the
governments for eliciting co-operations between labor and management. Besides
this, it makes an in-depth analysis of the interference patterns of the executive and
judiciary in the regulations of labormanagements relations.
In fact the concepts of Industrial Relations are very broad-based, drawing heavily
froma variety of discipline like social sciences, humanities, behavioral sciences, laws
etc.
Industrial Relation encompasses all such factors that influence behavior of people at
work. A few such important factors are details below:
1. Institution: It includes government, employers, trade unions, unions federations or
associations, government bodies, labor courts, tribunals and other organizations
which have direct or indirect impact on the industrial relations systems.
2. Characters : It aims to study the role of workers unions and employers federations
officials, shop stewards, industrial relations officers/ manager, mediator/conciliators
/ arbitrator, judges of labor court, tribunal etc.
3. Methods : Focus on collective bargaining, workers participation in the Industrial
Relation schemes, discipline procedure, grievance re-dressal machinery, dispute
settlements machinery working of closed shops, union reorganization, organizations
of protests through methods like revisions of existing rules, regulations, policies,
procedures, hearing of labor courts, tribunals etc.
4. Contents : Includes matter pertaining to employment conditions like pay, hours of
works, leave with wages, health, and safety disciplinary actions, lay-off, dismissals
retirements etc., laws relating to such activities, regulations governing labor welfare,
social security, industrial relations, issues concerning with workers participation in
management, collective bargaining, etc.,
Objectives of Industrial Relation:
A. To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
B. To avoid industrial conflict or strife and develop harmonious relations, which are
an essential factor in the productivity of workers and the industrial progress of a
country.
NOTES
C. To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
D. To establish and nurse the growth of an Industrial Democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban
individuals personality may grow its full stature for the benefit of the industry and
of the country as well.
E. To eliminate, as far as is possible and practicable, strikes, lockouts and gheraos by
providing reasonable wages, improved living and working conditions, said fringe
benefits.
F. To establish government control of such plants and units as are running at a loss or
in which productions has to be regulated in the public interest.
G. Improvements in the economic conditions of workers in the existing state of industrial
managements and political government.
H. Control exercised by the state over industrial undertaking with a view to regulating
production and promoting harmonious industrial relations.
I. Socializations or rationalization of industries by making he state itself a major
employer
J. Vesting of a proprietary interest of the workers in the industries in which they are
employed.
The main aspects of Industrial Relations are:-
i. Labor Relations, i.e. relations between union and management
ii. Employer-employees relations, i.e. relations between management and employees
iii. Group relations, i.e. relations between various groups of workmen
iv. Community or Public relations, i.e. relations between industry and society.
v. Promotions and development of healthy labor-managements relations.
vi. Maintenance of industrial peace and avoidance of industrial strife
vii. Development of true industrial Democracy
Effects of poor Industrial Relations
Poor Industrial Relation produces highly disquieting effects on the economic life of
the country. We may enumerate the ill-effects of poor Industrial Relations as under:
1. Multiplier effects:
Modern industry and for that matter modern economy are interdependent. Hence
although the direct loss caused due to industrial conflict in any one plant may not be
very great, the total loss caused due to its multipliers effect on the total economy is
always very great.
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NOTES
2. Fall in normal tempo:
Poor Industrial Relations adversely effect the normal tempo of work so that work ar
below the optimum level. Costs build up. Absenteeismand labor turnover increase.
Plants discipline breaks down and both the quality and quality of production suffer.
3. Resistance of change:
Dynamic industrial situation calls for change more or less continuously. Methods have
to be improved. Economics have to be introduced. New products have to be designed,
produced and put in the market. Each of these tasks involves a whole chain of changes
and this is resisted bitterly if these are industrial conflict.
4. Frustration and social cost:
Every man comes to the work place not only to earn a living. He wants to satisfy his
social and egoistic needs also. When he finds difficulty in satisfying these needs he
feels frustrated. Poor Industrial Relations take a heavy toll in terms of human frustration.
They reduce cordiality and aggravate social tension.
Suggestions to Improve Industrial Relation
a. Both management and unions should develop constructive attitudes towards each
other
b. All basic policies and procedures relating to Industrial Relation should be clear to
everybody in the organization and to the union leader. The personnel manager
must make certain that line people will understand and agree with these policies.
c. The personnel manager should remove any distrust by convincing the union of the
companys integrity and his own sincerity and honesty. Suspicious, rumors and
doubts should all be put to rest.
d. The personnel manager should not vie with the union to gain workers loyal to both
the organization. Several research studies also confirmthe idea of dual allegiance.
There is strong evidence to discard the belief that one can owe allegiance to one
group only.
e. Management should encourage right kind of union leadership. While it is not for
the management to interfere with union activities, or choose the union leadership,
its action and attitude will go a long way towards developing the right kind of union
leadership. Management gets the union it deserves is not just an empty phrase.
Managements
IMPORTANCE OF INDUSTRIAL RELATIONS:
The healthy industrial relations are key to the progress. Their significance may be
discussed as under
1. Uninterrupted Production
The most important benefit of industrial relations is that this ensures continuity of
production. This means, continuous employment for all frommanager to workers.
The resources are fully utilized, resulting in the maximumpossible production. There
NOTES
is uninterrupted flow of income for all. Smooth running of an industry is of vital
importance for several other industries; to other industries if the products are
intermediaries or inputs; to exporters if these are export goods; to consumers and
workers, if these are goods of mass consumption.
2. Reduction in Industrial Disputes
Good industrial relation reduces the industrial disputes. Disputes are reflections of the
failure of basic human urges or motivations to secure adequate satisfaction or expression
which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics,
gherao and grievances are some of the reflections of industrial unrest which do not
spring up in an atmosphere of industrial peace. It helps promoting co-operation and
increasing production.
3. High morale
Good industrial relations improve the morale of the employees. Employees work
with great zeal with the feeling in mind that the interest of employer and employees is
one and the same, i.e. to increase production. Every worker feels that he is a co-
owner of the gains of industry. The employer in his turn must realize that the gains of
industry are not for himalong but they should be shared equally and generously with
his workers. In other words, complete unity of thought and action is the main
achievement of industrial peace. It increases the place of workers in the society and
their ego is satisfied. It naturally affects production because mighty co-operative efforts
alone can produce great results.
4. Mental Revolution
The main object of industrial relation is a complete mental revolution of workers and
employees. The industrial peace lies ultimately in a transformed outlook on the part of
both. It is the business of leadership in the ranks of workers, employees and Government
to work out a new relationship in consonance with a spirit of true democracy. Both
should think themselves as partners of the industry and the role of workers in such a
partnership should be recognized. On the other hand, workers must recognize
employers authority. It will naturally have impact on production because they recognize
the interest of each other.
5. New Programmes
New programmes for workers development are introduced in an atmosphere of peace
such as training facilities, labor welfare facilities etc. It increases the efficiency of
workers resulting in higher and better production at lower costs.
6. Reduced Wastage
Good industrial relations are maintained on the basis of cooperation and recognition
of each other. It will help increase production. Wastages of man, material and machines
are reduced to the minimum and thus national interest is protected.
Thus, fromthe above discussion, it is evident that good industrial relation is the basis
of higher production with minimum cost and higher profits. It also results in increased
efficiency of workers. New and new projects may be introduced for the welfare of the
workers and to promote the morale of the people at work.
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NOTES
An economy organized for planned production and distribution, aiming at the realization
of social justice and welfare of the massage can function effectively only in an atmosphere
of industrial peace. If the twin objectives of rapid national development and increased
social justice are to be achieved, there must be harmonious relationship between management
and labor.
DIFFERENCE BETWEEN INDUSTRIAL RELATIONS AND HUMAN
RELATIONS:
The termIndustrial Relations is different fromHuman Relations. Industrial relations
refer to the relations between the employees and the employer in an industry. Human
relations refer to a personnel-management policy to be adopted in industrial organizations
to develop a sense of belongingness in the workers improves their efficiency and treat
themas human beings and make a partner in industry.
Industrial relations cover the matters regulated by law or by collective agreement
between employees and employers. On the other hand, problems of human relations are
personal in character and are related to the behavior of worker where morale and social
elements predominated. Human relations approach is personnel philosophy which can be
applied by the management of an undertaking. The problemof industrial relations is usually
dealt with a three levels the level of undertaking, the industry and at the national level. To
sum up the term Industrial Relations is more wide and comprehensive and the term
Human Relations is a part of it.
Determining factors of industrial relations
Good industrial relations depend on a great variety of factors. Some of the more
obvious ones are listed below:
1. History of industrial relations
No enterprise can escape its good and bad history of industrial relations. A good
history is marked by harmonious relationship between management and workers. A
bad history by contrast is characterized by militant strikes and lockouts. Both types
of history have a tendency to perpetuate themselves. Once militancy is established as
a mode of operations there is a tendency for militancy to continue. Or once harmonious
relationship is established there is a tendency for harmony to continue.
2. Economic satisfaction of workers
Psychologists recognize that human needs have a certain priority. Need number one
is the basic survival need. Much of men conducted are dominated by this need. Man
works because he wants to survive. This is all the more for underdeveloped countries
where workers are still living under subsistence conditions. Hence economic satisfaction
of workers is another important prerequisite for good industrial relations.
NOTES
3. Social and Psychological satisfaction
Identifying the social and psychological urges of workers is a very important steps in
the direction of building good industrial relations. A man does not live by bread alone.
He has several other needs besides his physical needs which should also be given due
attention by the employer. An organization is a joint venture involving a climate of
human and social relationships wherein each participant feels that he is fulfilling his
needs and contributing to the needs of others. This supportive climate requires
economic rewards as well as social and psychological rewards such as workers
participation in management, job enrichment, suggestion schemes, re-dressal of
grievances etc.
4. Off-the-Job Conditions
An employer employs a whole person rather than certain separate characteristics. A
persons traits are all part of one systemmaking up a whole man. His home life is not
separable from his work life and his emotional condition is not separate from his
physical condition. Hence for good industrial relations it is not enough that the workers
factory life alone should be taken care of his off-the-job conditions should also be
improved to make the industrial relations better.
5. Enlightened Trade Unions
The most important condition necessary for good industrial relations is a strong and
enlightened labor movement which may help to promote the status of labor without
harming the interests of management, Unions should talk of employee contribution
and responsibility. Unions should exhort workers to produce more, persuade
management to pay more, mobilize public opinion on vital labor issues and help
Government to enact progressive labor laws.
6. Negotiating skills and attitudes of management and workers
Both management and workers representation in the area of industrial relations come
from a great variety of backgrounds in terms of training, education, experience and
attitudes. These varying backgrounds play a major role in shaping the character of
industrial relations. Generally speaking, well-trained and experienced negotiators who
are motivated by a desire for industrial peace create a bargaining atmosphere conducive
to the writing of a just and equitable collective agreement. On the other hand, ignorant,
inexperienced and ill-trained persons fail because they do not recognize that collective
bargaining is a difficult human activity which deals as much in the emotions of people
as in their economic interests. It requires careful preparation and top notch executive
competence. It is not usually accomplished by some easy trick or gimmick. Parties
must have trust and confidence in each other. They must possess empathy, i.e. they
should be able to perceive a problem from the opposite angle with an open mind.
They should put themselves in the shoes of the other party and then diagnose the
problem. Other factors which help to create mutual trust are respect for the law and
breadth of the vision. Both parties should show full respect for legal and voluntary
obligations and should avoid the tendency to make a mountain of a mole hill.
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NOTES
7. Public policy and legislation
When Government, regulates employee relations, it becomes a third major force
determining industrial relations the first two being the employer and the union. Human
behavior is then further complicated as all three forces interact in a single employee
relation situation. Nonetheless, government in all countries intervenes in management
union relationship by enforcing labor laws and by insisting that the goals of whole
society shall take precedence over those of either of the parties. Government
intervention helps in three different ways 1) it helps in catching and solving problems
before they become serious. Almost every one agrees that it is better to prevent fires
them to try stopping themafter they start; 2) It provides a formalized means to the
workers and employers to give emotional release to their dissatisfaction; and 3) It
acts as a check and balance upon arbitrary and capricious management action.
8. Better education
With rising skills and workers education expectations in respect of rewards increases.
It is a common knowledge that the industrial worker in India is generally illiterate and
is misled by outside trade union leaders who have their own axe to grind. Better
workers education can be a solution to this problem. This alone can provide worker
with a proper sense of responsibility, which they owe to the organization in particular,
and to the community in general.
9. Nature of industry
In those industries where the costs constitute a major proportion of the total cast,
lowering down the labor costs become important when the product is not a necessity
and therefore, there is a little possibility to pass additional costs on to consumer. Such
periods, level of employment and wages rise in decline in employment and wages.
This makes workers unhappy and destroys good industrial relations.
INDUSTRIAL RELATIONS PROGRAMME
Todays professional industrial relations director, or by whatever title he is designated,
no longer views his job as personalizing management, or that of a social worker in a
factory, or a union buster, he looks upon his department as an adjunct to management
supervision at all levels; he keeps other executives informed about new discoveries,
programme trends and needs. At the same time, he provides efficient service in the operation
of several centralized services
A successful industrial relations programme reflects the personnel viewpoint, which is
influenced by three main considerations:
a. Individual thinking
b. Policy awareness and
c. Expected group reaction
Individualized thinking makes if imperative for the administrator to consider the entire
situation in which the affected individual is placed. Policy awareness underscores the idea
NOTES
of the consistency of treatment and the precedent value of any decision which a management
takes; while expected group reaction balances what we know of human nature in groups
against an individuals situation in the light of the policy that has been formulated and
implemented. In all these different circumstances, reality demands that all the three aspects
of the personnel viewpoint should be considered at once in terms of the past, the present
and the future. This viewpoint is held at all the levels of management from the top to the
bottom, fromthe top executives and staff to the line and supervisory personnel.
SCOPE OF INDUSTRIAL RELATIONS WORK:
The staff employed in the industrial relations department should know the limitations
within which it has to function. The industrial relations director generally has several assistants
who help him to perform his functions effectively, and he usually reports directly to the
president or chairman of the board of directors of an organization.
The functions of the industrial relations staff are
1. Administration, including overall organization, supervision and co-ordination of industrial
relations policies and programmes.
2. Liaison with outside groups and personnel departments as well as with various cadres
of the management staff.
3. The drafting of regulations, rules, laws or orders and their construction and interpretation.
4. Position classification, including overall direction of job analysis, salary and wage
administration, wage survey and pay schedules.
5. Recruitment and employment of workers and other staff.
6. Employment testing, including intelligence tests, mechanical aptitude tests and
achievement tests.
7. Placement, including induction and assignment.
8. Training of apprentices, production workers, foremen and executives.
9. Employee counseling on all types of personnel problems-educational, vocational, health
or behavior problems.
10. Medical and health services.
11. Safety services, including first aid training
12. Group activities, including group health insurance, housing, cafeterial programmes and
social clubs.
13. Suggestion plans and their uses in labor, management and production committees.
14. Employee relations, especially collective bargaining with representatives and settling
grievances.
15. Public relations.
16. Research in occupational trends and employee attitudes, and analysis of labor turnover.
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NOTES
17. Employee records for all purposes.
18. Control of operation surveys, fiscal research and analysis.
19. Benefit, retirement and pension programmes.
FUNCTIONAL REQUIREMENTS OF A SUCCESSFUL INDUSTRIAL
RELATIONS PROGRAMME
The basic requirements on which a successful industrial relations programme is based
are:-
a) Top Management Support:
Since industrial relations is a functional staff service, it must necessarily derive its
authority fromthe line organization. This is ensured by providing that the industrial
relations director should report to a top line authority to the president, chairman or
vice president of an organization.
b) Sound Personnel Policies:
These constitute the business philosophy of an organization and guide it in arriving at
its human relations decisions. The purpose of such policies is to decide, before any
emergency arises, what shall be done about the large number of problems which crop
up every day during the working of an organization. Policies can be successful only
when they are followed at all the level of an enterprise, from top to bottom.
c) Adequate Practices should be developed by professionals:
In the field to assist in the implementation of the policies of an organization, a system
of procedures is essential if intention is to be properly translated into action. The
procedures and practices of an industrial relations department are the tool of
management which enables a supervisor to keep ahead of his job that of the time-
keeper, rate adjuster, grievance reporter and merit rater.
d) Detailed Supervisory Training:
To ensure the organizational policies and practices are properly implemented and
carried into effect by the industrial relations staff, job supervisors should be trained
thoroughly, so that they may convey to the employees the significance of those policies
and practices. They should, moreover, be trained in leadership and in communications.
e) Follow-up of Results:
A constant review of an industrial relations programme is essential, so that existing
practices may be properly evaluated and a check may be exercised on certain
undesirable tendencies, should they manifest themselves. A follow up of turnover,
absenteeism, departmental morale, employee grievances and suggestion; wage
administration, etc. should be supplemented by continuous research to ensure that
the policies that have been pursued are best fitted to company needs and employee
satisfaction. Hints of problem areas may be found in exit interviews, in trade union
demands and in management meetings, as well as in formal social sciences research.
NOTES
1.3 TRADE UNION AND ITS IMPORTANCE
The existence of a strong and recognized trade union is a pre-requisite to industrial
peace. Decisions taken through the process of collective bargaining and negotiations
between employer and unions are more influential. Trade unions play an important role and
are helpful in effective communication between the workers and the management. They
provide the advice and support to ensure that the differences of opinion do not turn into
major conflicts. The central function of a trade union is to represent people at work. But
they also have a wider role in protecting their interests. They also play an important
educational role, organizing courses for their members on a wide range of matters. Seeking
a healthy and safe working environment is also prominent feature of union activity.
Trade unions help in accelerated pace of economic development in many ways as
follows:
by helping in the recruitment and selection of workers.
by inculcating discipline among the workforce
by enabling settlement of industrial disputes in a rational manner
by helping social adjustments. Workers have to adjust themselves to the new
working conditions, the new rules and policies. Workers coming fromdifferent
backgrounds may become disorganized, unsatisfied and frustrated. Unions help
themin such adjustment.
Trade unions are a part of society and as such, have to take into consideration the
national integration as well. Some important social responsibilities of trade unions include:
promoting and maintaining national integration by reducing the number of industrial
disputes
incorporating a sense of corporate social responsibility in workers
achieving industrial peace
1.4 TREND IN NUMBER OF REPORTING FACTORIES
EMPLOYMENT
Absenteeism & Labour Turnover, Average Labour Cost and Average Wages/Salaries of
Employees
Sl. No. Parameters Year
2000 01 2001-02 2002-03 2003-04 2004-05
1. No. of Reporting Factories 128339 125834 125834 125844 136356

2. Average Daily Employment
a. All Employees 7988233 7751095 7935948 7870081 8453624
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NOTES
b. All Workers 6135675 5958492 6161493 6086908 6599298
c. Male Workers 4000370 3771435 3809037 3695860 3863691
d. Female Workers 881171 889292 929745 894992 987497
e. Child Workers 666 306 557 385 45
f. Contract Workers 1253468 1297458 1422155 1495671 1748065
3. Absenteeism Rate (%) @ 10.08 9.44 9.61 10.01 8.96
4. Labour Turnover
a. Accession Rate (%) @ 15.97 15.26 15.44 16.79 18.45
b. Separation Rate (%) @ 17.16 17.43 16.57 18.11 16.94
5. Labour Cost on Employees
per Manday Worked (Rs.) 256.45 271.96 285.05 305.89 307.76
6. Percentage of Labour Cost to
Total Cost of Production 7.78 4.35 7.15 6.82 5.81
7. Percentage of Components of Labour Cost to Total Labour Cost
a. Wages/Salaries 77.5576.2976.5976.4077.95
b. Bonus 4.44 4.19 4.12 4.11 4.29
c. Provident Fund 10.7512.3011.9312.1210.31
d. Welfare Expenses 7.25 7.22 7.36 7.36 7.45
8. Wages/Salaries per Man-day Worked (Rs.) by
a. All Employees 198.88 207.47 218.31 233.71 239.91
b. All Workers 148.86 152.38 158.75 165.55 168.58
c. Male Workers 180.02 187.84 197.85 207.72 212.30
d. Female Workers 78.4579.1382.1787.3391.00
e. Child Workers 55.6338.7861.8751.5728.86
f. Contract Workers 90.1090.9596.68100.96109.71
@AmongDirectlyEmployedRegular Workers during the calendar year.

NB:1.Workersaredefinedtoincludeallpersonsemployeddirectlyorthroughany
agency, whether for wages or not, in any manufacturing process or in cleaning any part of
machinery or premises used for manufacturing process or in any other kind of work,
incidental to, or connected with the manufacturing process or the subject of manufacturing
process. Labour engaged in repair and maintenance or production of fixed assets for
factorys own use or labour employed for generating electricity, etc. is also included.
NOTES
2. Employees include all workers and persons receiving wage/salary and holding
supervisory or managerial positions engaged in administrative office, store keeping
and welfare sections, sales department as also those engaged in purchase of raw
materials, etc or purchase of fixed assets for the factory and watch and ward staff.
1.5 TRADE UNION CONCEPT
The classic definition of trade union was given by Sidney and Beatrice Webb states
that it is a continuous association of wage earners for the purpose of maintaining and
improving conditions of their working lives. In their time, the brand to trade union
organizations that existed was small and local representating a specific skill or trade. The
definition refers to a permanent organization of workers rather than one which is created
for a particular purpose and died later on. The termwage earner in its purview includes
salary earns. The objectives of such association is to maintain and improve the working
conditions of its members
1.5.1 A few commonly cited definitions trade union are
Dale Yoder, A trade union is a continuous association of wage-earners for the purpose
maintaining of improving the conditions of their working lives.
S.D. Puneker, A trade union is a monopolistic combination of wage-earners who as
individual producers are complementary to one another but who stand to employers in a
relation of dependence for the sale of their labour and production, and that the general
purpose of association is in view of that dependence to strengthen their power to bargain
with the employers of bargaining collectively.
However, for the sake of discussion, these definitions may sound good, but a legalistic
definition of trade union is desirable in understanding its concept as prevalent in a particular
society. This is because in the case of industrial dispute or on all union matter, on has to go
by what the letter of laws says and not by what people perceive the union to be.
The British Trade Union Act views it thus, A trade union is a combination with the
main objective of regulating the relation between workmen and masters or between
workmen and workmen or between masters and masters for imposing of restrictive
conditions on the conduct of any trade or business and also provision of benefits to members
In the words of India Trade Union Act, 1926, A trade union is any combination,
whether temporary or permanent, formed primarily for the purpose of regulating the relations
between workmen and employers, or between workmen and workmen, between employees
and employers, or for imposing restrictive conditions on the conduct of any trade or business,
and includes any federation of two or more trade unions.
DBA 1748
NOTES
This definition is defective because it allows even non-workers to forma trade union;
also it is narrow and vague about the aims and purpose of forming such a union. Yet the
definition with a clear and legal wording is certainly important in relation to getting a trade
union registered with the Registrar of Trade Unions and when legal interpretation of trade
union is required in the case of industrial disputes etc.
The characteristic which define a trade union includes
i) A Statement that the organization is a trade union.
ii) A Statement of its principal objectives, clearly specifying the fact that the organization
formed is for the betterment of its members, i.e workers.
iii) Registration with the Registrar of Trade Unions having jurisdiction on the area
where Trade Union functions
iv) Independence fromthe employer, which may be evident formthe certificate issued
by the Registrar of Trade Unions.
v) Affiliation with the central trade union organization
All the trade unions do not necessarily shown these characteristics, yet many of the
large trade unions do.
1.5.2 General Features of Trade Unions
Coming out of a vast array of literature on the subject, here a few general features
trade unions are detailed out:
(1) The trade union is an association either of employers or employees or of independent
workers. Accordingly, in India such unions may consist of
i. Merchants or employers associations (like the Employers Federation of India,
the All-India Manufacturers Organisations, the All India Organisation of Industrial
Employers, the Tea Planters Association of North India, the United Planters
Association of South India, the Indian Jute Mills Association, the Indian Sugar
Mills Association the Bombsy Mill Owners Association, and the Indian Paper
Mills Association;
ii. The general labour unions
iii. The friendly societies and
iv. Combination of intellectual labour like (the All-India Teachers Association; the
All-India Bank Employees Association; the All-India Medical Doctors
Association; the Railway mens Federation; National Federation of Posts and
Telegraphs Workers; the All-India Mine Workers Federation etc.)
On the other hand, in England, the termtrade union also refers to the associations
of professional persons such as artists federations, musicians union etc.
In China, they refer to the trade union as an association of members of manual wage-
earners in enterprises, institutions schools and also working class engaged in irregular
employments.
NOTES
In the erstwhile USSR, they were a mass non-party public organization which units
on a voluntary basis, the workers and other employees of all occupations. They are really
the masses of workers and others employees around the party which are mobilized for the
struggle to build a communist society.
In USA, theses organizations are combinations of all persons in a given trade with the
purpose of demanding and securing for each and all of them a definite minimumstandard
of wages, hours and conditions of works.
It may , however , be noted that all similar organizations cannot truly be regarded as
trade unions, because the associations of employers are concerned with influencing the
terms of purchase of services in favour of their members which they need for performing
particular tasks. The associations of professional persons, too cannot be regarded as true
trade unions because their main objectives are to improve the training and education of
their members. Further, such associations include the self-employed as well as the employees.
The trade union should, therefore, be regarded as an association only of workers or
employees.
Thinkers like the Webbs, Cunnison and others do not recognize the employers
associations and professional bodies as trade unions because they differ fundamentally
fromthe workers organizations. They are of the view that if professional associations are
treated as trade unions, a similar problemmay arise for associations of sellers of services,
like traveling and commission agents, bankers, insurance and property brokers and hotel-
owners, and to include themwithin the fold of the trade unions would be cumbersome and
undesirable.
Sometimes, workers allow their employers to join their unions and vice versa. Such
organization may be called trade combinations or mixed combinations as provided in the
statutory provisions in Chile, France, Hungary and Romania. In India, such organizations
have been referred to as quasi-unions.
(2) Labour unions are relatively permanent association of workers and are not temporary
or casual: They persist throughout the years and conceive of their purpose as on
which is not merely immediate but continues. They do not expect to attain their
objectives in a day because they anticipate and contemplate continuing streamof
additional objectives to be adopted from time to time. The most frequently used
techniques by trade union is collective bargaining by which is meant the subordination
of individual employer-employee relationships, in so far as the latter involve
determination of wages and other conditions of employment-agreements affecting
all workers in a group, arrived at by means of bargaining carried on not by workers
themselves but by their union representatives.
(3) A Trade union is an association of workers who are engaged in securing economic
benefits for its members: In other words it is essentially a cooperative labour
marketing association. Its purpose is to secure control of the supply of labour in
DBA 1748
NOTES
one or more markets and to maintain that control as a means of fixing the price of
labour as well as the conditions under which it works. But this does not mean that
the advancement of the economic interests of its members is the sole purpose of a
trade union. As they also try to advance the social political and cultural complex co
economic, legal, ethical and social problems, which can be understood and met
only by knowing the facts and genesis of the viewpoint of organized labour in all its
diversity, contradictions and shifting character and by considering this viewpoint in
relation to developing social contradictions and social traditions. The trade unions
of to-day are plurist in character and by so slowly changing environment. The
traditional concept of trade union functions which was to defend the workers
rights and interests against the employers and the state has now changed and been
replaced by a new approach to its functions, namely:
(i) Protection of workers and provision for their security;
(ii) Improving the wages, conditions of work and standards of living;
(iii) Raising the status of the workers as a part of industry and citizen of society;
and
(iv) Contributing in nations socio-economic development
(4) The character of trade unions has been constantly changing: The changes in
technology and systemof production create fresh problems. Trade unions change
their methods and their working to adjust themselves to changing circumstances.
Therefore, there has been no finality about trade unions their working and their
methods. They have gradually evolved and have now come to occupy an important
place in modern industrial order. Fromcriminal and illegal associations, they have
now become legalized and recognized institutions; frominstitutions which were
only very small bodies, they have how become gigantic associations; forminstitutions
that were primarily interested in the advancement of the cause of their own
membership, they have now become institutions which are interested in the social,
cultural and political development of the country. The trade unions, thus, have
made remarkable progress since their inception
(5) The origin and growth of trade unions have been i8nfluenced by a number of
ideologies: The socio economic and even political movements have influenced
trade unions in one or the other way. The Marx and Engles Theory of Class War
influenced trade unionismin a number of ways. Their theory of class-conflict and
dialectical materialism created a class of trade unionists who regarded labour
organization as absolutely essential for bringing about a revolutionary and
fundamental change in the social order. The proletariat must overthrow the present
bourgeois class, capture state power and usher in a classless society because the
capitalistic class has long defensive, namely, to fight for the maintenance of the
existing wages, to demand (relatively) higher wages, and the betterment of the
conditions of work.
The socialists, followed by the Webbs, consider trade unionismto be an extension of
the principle of democracy in the sphere of industry. They require trade unions to be
NOTES
institutions for overcoming managerial dictatorship to strengthen individual labourers and
to give thema voice in the determination of the conditions under which they have to work.
The Webbs observed: If the democratic State is to attain its fullest and finest development,
it is essential that the actual needs and desires of the human agents concerned should be
the main consideration in determining the conditions of employment. Here, then, we find
the special function of the trade union in the administration of industry.
India, too has accepted the creation of industry democracy as a prerequisite of the
establishment of a socialist society. Lenin characterized the trade union as an educational
organization, a school administration, a school of economic management, a school of
communism. In all socialist countries, it has been accepted that the trade unions have to
take an active part in preparing laws concerning labour, production, the way of life, culture
and the implementation of these laws. There is no doubt there is a class conflict, but it is
sought to be met through equality and collective agreements and joint consultations. The
state recognizes the rights of the people to work, rest and leisure and maintenance in old
age, sickness and disability, education and equal pay of equal work. The workers and
managers have the same common purpose, namely, to promote the interests of the socialist
state with which their own interest are bound up.
Prof. Ghosh observers, Although modern unions interest is the production problem
of the industry or their concern with the broader social affairs like employment of price
stabilization, may be explained as derivations from their primary interest-maintaining or
improving or improving the conditions of their members working lives it cannot explain the
keenness with which many of the modern trade unions in different countries demand not
only the right to be consulted in production problems and workers welfare arrangements
by the management, but also a direct share in the management itself. Demand for industrial
democracy has always influenced a section of the working class, but, in the fifties of the
20
th
century the demand has gained particular intensity in the trade union circles of a large
numbers of countries, including some underdeveloped ones.
In fine, it can be said that the modern trade union retains four characteristics fromits
early origins:
(i) It is economically oriented
(ii) It is an instrument of defense.
(iii) It implies class distinction
(iv) It is an outcome of an individualistic society.
1.5.3 Functions of Trade Unions
The functions of modern trade unions are wide and more comprehensive than those
of their forerunners. Generally speaking, these functions have been termed as (i) militant
of protection functions, and (ii) fraternal, ministrant of positive functions. The former functions
DBA 1748
NOTES
aimat securing better conditions of work and employment for members through militant
activities such as strikes, gherao, etc. if there is failure of collective bargaining. The latter
functions provide benefits to their members and support to themduring strikes/lockouts or
during periods so temporary unemployment by giving them financial support out of the
funds raised with their contributions.
One author has categorized the functions of trade union as intra-mural and extra-
mural functions. The former include the welfare schemes of the unions within factory premises
to improve workers conditions of employment; regulation of hours of work, and provision
of rest intervals, adequate wages, sanitation, safety and security; continuity of employment,
etc. For performing theses functions, collective bargaining, negotiations and resort to a
strike/lockout may be adopted. The latter include welfare schemes carried on with a view
to help workers when in need of such assistance (medical of financial) during casualties,
provision of education, recreational and housing facilities; provision of social and religious
benefits, including payment of expenses of funeral or religious ceremonies for the deceased
members of their dependants. All theses measures are designed to inculcate the spirit of
cooperation among the workers.
According to Samuel Gompers, Trade unions were born of the necessity of workers
to protect and defend themselves fromencroachment, injustice, and protect the workers
in their inalienable right to higher and better life; to protect them, not only as equal before
the law, but also in their rights to the product of labour, to protect their lives, their limbs,
their health, the homes, their firesides, their liberties as men, as workers, as citizens, to
overcome and conquer prejudice and antagonism, to secure themthe fight to life, and the
opportunity to maintain the result of their brain and brawn, and the civilization of which
they are the founders and the mainstay.
Before we give a consolidate picture of the functions/objectives of a trade union, it
would be useful to glance at their functions in some countries
1.6 GROWTH AND DEVELOPMENT OF THE TRADE UNION
MOVEMENT
The growth and development of the labour movement, and for that part of the trade
unions, in India, can be divided into following periods, each of them revealing different
tendencies that mark it from others.
1. Social Welfare period, from1875 to 1918
2. Early Trade Union period, from1918 to 1924
3. Left-wing Trade Unionism period, from 1924 to 1934
4. Trade Unions Unity period from 1935 to 1938
5. Second World War period from 1939 to 1945
6. Post independence period from 1947 to date
NOTES
1.6.1 Social Welfare period, from 1875 to 1918
The development of industries led to large scale production on the one hand and
social evils like employment and exploitation of women and child labour and the deplorable
working conditions, the governments attitude of complete indifference in respect of
protection of labour fromsuch evils, on the other. Some of the worst features of industrialism
market the history of early factory systemin India. In certain respects, conditions of labour
in India factories were worse than in the early factories in England. Unfortunately there
was no effective public opinion part villagers endeavoring to improve their position by a
temporary alliance to industry were submissive and unorganized; and if conditions become
too distasteful, the natural remedy was not a strike but abandonment by individuals of the
mill or of industry generally or they migrated to other industrial centers or want back to
their villages. There was no attempt at collective bargaining or at obtaining redress through
concerted action. It was at this juncture that the Indian humanitarians, like Sorabjee Shapurji
Bengali (1875) and N.M Lokhanday (in 1884) who themselves were factory workers,
drew attention of the government towards the unhappy working conditions of the labourers
and demeaned an early legislation to protect their interests. At the same time , the Lancashire
interests also forced the British government to British the employment of women and child
labour in India industries, not on any humanitarian ground, but on the was passed in 1881,
and then amended in 1891 and 1911, respectively. Theses Acts introduced some
improvements in regard to shorter hours, and conditions of work for children and women
labour.
The most noticeable features of the period, 1875-1918, were:
(1) Complete absence of radicalism in the labour movement. The methods used by
the workers were characterized by a tendency to petition, memorials and seek
redress of grievances by mild pressure.
These methods reflect the influence of leaders like Naryan Meghajee Lokhanday,
Shapurjee Bengali, S.N.Banerjee, and others who were all political moderates and law
abiding persons. They were rather social workers desirous to serve the society through
amelioration. With theses characteristics, writes Punekar, the labour movement could
hardly tackle such problems as excessive hours of work, few holiday, irregular payment of
wages, incompetency of mill managers, inadequate fencing of machinery and the ill-ventilated
and filthy sate of many work places.
(2) The movement depended greatly on external philanthropy. Philanthropic agitation
was the fore-runner of labour movement in India and having originated in
philanthropy its motive force was sympathy rather than justice. Born of
philanthropy, it was a movement for the workers rather than by the workers.
(3) Most of the organizations were unstable and of loose type, as they lacked definite
aims and constitution. Once the particular grievance was settled the association
would disband.
DBA 1748
NOTES
(4) There was little conception of permanent trade union membership, the payment
of dues or organized collective bargaining. About the Bombay mill hands
Association, Dutt observed, The Association has no existence as an organized
body, having no roll or membership, no funds no rule
(5) The movement developed mostly among the educated class of workers such as
the postal clerks and railway employees. It, however, did not make much progress
in organized industries like textiles, mining and plantations.
(6) The early leadership was provided by three types of persons. First, intellectuals
such as lawyers, reformers, editors, teachers and preachers, who readily came
forwarded to organize and lead the workers. Second, the careerists, who saw in
the needs of workers opportunities for furthering their own ends, jumped in
masquerading as labour leaders. The third group from M.Vardarajulu Naidu,
B.Shiv Rao, Annie Basant and B.G.Talak, N.M.Joshi.
1.6.2 Early Trade Union period, from 1918 to 1924
The year 1918 was an important one for the Indian trade union movement. It market
the start of a new era, an era of growth and one in which the leadership of the trade unions
was to pass from the hands of the social workers into the hands of the politicians. The
movement could take permanent roots in the Indian soil only after the close of World War
I. This situation was due to : (i) The industrial unrest that few up as a result of grave
economic difficulties created by war. The rising cost of leaving prompted the workers to
demand reasonable wages for which purpose they united to take resort to collective action.
(ii) The Swaraj movement intensified the movement, widened the gulf between the employees
and te employees and brought about a mass awakening among the workers demanding
racial equality with their British employers. The new consciousness produced restlessness,
discontent, a spirit of defiance as well as new ideal and aspirations. (iii) the success of the
Russian Revolution of 1971 created a revolutionary wave of ideas and a new self-respect
and enlightenment, and added momentum to the feeling of class-consciousness among
labourers. (iv) The establishment of the I.L.O., in 1919, gave dignity to the working class
and also an opportunity to send a delegation to the annual conference of this body. It is
was from this body that labour movement in various countries derived their inspiration,
help and guidance. (v) Immediately after the war many Indian soldiers (who previously
belonged to the working class) in the British army were demobilized and forced into the
labour market. Theses ex-soldiers who had seen workers and the working conditions in
Europe found that Western workers enjoyed better conditions of living because of their
greater solidarity and of more opportunities available to them but Indian workers were
denied these opportunities. By 1920, a large class of genuine proletariat developed. Hence,
theses were new opportunities for the creation of trade unions. (vi) The non-co-operative
movement of Gandhiji during 1920-21 and his support to the demand of industrial labour
also greatly influenced the working class movement.
NOTES
1.6.3 Left-wing Trade Unionism period , from 1924 to 1934
In 1924, a violent and long-draw-out strike by unions led to the arrest, prosecution,
conviction and imprisonment of many communist leaders. The AITUC emerged as the
representative of the Indian working class. By 1927 it united 57 unions with a membership
of 150,555. the rapid growth of the trade unionismwas facilitated by several factors, such
as: (i) the growth anti-imperialist national movement; (ii) the brutal violence and repressive
measures let loose by the British government, particularly the Jallianwala Bagh massacre,
Rowlatt Act, indiscriminate arrest and imprisonment of national leaders and Satyagrahis;
(iii) the phenomenal profits earned by the capitalist in the face of falling real ages during the
post-war period.
1.6.4 Trade Unions Unity period - 1935 to 1938
In mid-thirties of the 20
th
century the state of divided labour movement was natural
thought undesirable and soon after the first split, attempts at trade union unity began to be
made through the efforts of the Roy Group on the basis of a platform of unity. The
imitative taken by All-India Railwaymens Federation (s neutral body) had shown fruitful
results. This Federation in its conference at Bombay, formed a Trade Union Unity committee
in 1932. The Committee adopted the following platformof unity. A trade union is an
orange of class-struggle; its basis task is to organize the workers for advancing and defending
their rights and interests. Negotiation, representations and other methods of collective
bargaining must remain an integral part of the trade union activates.
It also laid down certain broad conclusions agreeable to both wings of labour-the
AITUF and the INTUC. The final decision was taken in Delhi in 1933, when National
Federation of Labour (NFL) was formed to facilitate the attempt towards unity. The AITUF
and the railway unions amalgamated themselves with NFL under the name of the National
Trade Union Federation (NTUF). The AITUC and the RTUC, however, remained aloof
fromtheses efforts.
1.6.5 Second World War period - 1939 to 1945
The Second World War, which broke out in September 1939, created new strains in
the united trade union movement. These strains arose because of the different political
factions in the AITUC related in different ways to the role of India as a protagonist in the
war. A large group of trade unionists led by the members of the Radical Democratic Party
(such as M.N.Roy, J.Mehra, Miss Maniben Kera and V.B.Karnik) was of the opinion that
the AITUC should support and participate in the anti-fascist war irrespective of the acts of
omission and commission of the British government. An equally large number (supported
by S.C. Bose, and others) were opposed to that view on the ground that it was an imperialist
war of Great Britain with which Indian had no unions with a membership of 3,00,000 and
formed a new central federation known as the Indian Federation of Labour. In 1942, his
DBA 1748
NOTES
Federation was recognized by the government as an organ representing Indian labour
class. The IFL called : (i) for mobilization of Indian labour for conscious for securing for the
workers bare minimumof wages and amenities which the wartime conditions effort if was
aided by the Government of India, by providing large funds at the rate of Rs. 13,000 per
month. The IFL grew very rapidly and by 1944, it claimed 222 unions with a membership
of 407,773 workers.
1.6.6 Post independence period - 1947 to 2000
As pointed out earlier, when attempts to restructure the AITUC failed, those believing
in the aims and ideals other than those of the AITUC separated fromthe organization and
established the Indian National Trade Union Congress (INTUC) in May, 1947. the reason
for forming a new union was expressed in the communication of G.L. Nada (the Secretary
of the H.M.S.S.) addressed to all the congress-minded trade unionists. It reads:
Congressmen in general and particularly those working in the field of labour, have found
it very difficult to co-operate any longer with the AITUC which has repeatedly been adopting
a course completely disregarding, or even in opposition to the declared policy and advice
of the Indian National Congress.
The Hindustan Mazdoor Sevak Sangh convened a conference in New Delhi on May
3 and 4, 1947. a resolution was adopted to set up another central organization. On
September 25, 1947, the Working Committee of the Indian National Congress
recommended to all Congressmen to get those unions, which they organized and of which
they were the members, affiliated to the newly formed Indian National Trade Union. On
January 20, 1984, Sardar Vallabhbhai Patel, while addressing a labour rally at Bombay,
exhorted the workers to do away with the destructive leadership of the leftists who had
been exploiting them for their own political ends and asked themto join the INTUC. The
Creation of the INTUC was a confession both of the failure to create favorable conditions
in the AITUC, and of the government and Congress party impatient with the leadership of
the AITUC which had come completely under the domination of the communists.
The INTUC was formed by Hindustan Mazdoor Sevak Sangh, a creation of the
Pro-Gandhi wing in the Congress, who were associated with the Textile Labour Association
of Ahmedabad. The ATLA became the guiding and driving force behind the INTUC. It
also supplied 55,000 of the INTUCs intial membership of 575,000. the long experience
of the ATLA in trade union affairs also resulted in a large proportion of the INTUC leaders
coming from Ahmedabad. As Oranti puts it, Ideologically as well as administratively the
bloodstream of the INTUC flows from Ahmedabad. Here the ATLA provides it with a
strong membership nucleus, a rich treasury, and a cadre with a long experience in labour
work. The INTUC itself joined the International Confederation of Free Trade Unions
(ICFTU) as an affiliate. The INTUC had at the time of its inception 200 unions affiliated
with it with a membership of 575,000. it grew rapidly in strength and it had the claim of
NOTES
being recognized as the most representative central organization of organized labour in
India. The AITUC, which for nearly 30 years had been considered as the Voice of
Indian Labour. Thus lost ist premier position. According to its sponsors, the INTUC
represented an attempt to go to the working class with a new and fresh approach to the
solution of the problems.
The INTUC was founded for establishing an order of society which is free from
hindrances to al-round development of its individual members which fosters the growth of
human personality in all its aspects and which goes to the utmost limit in progressively
eliminating social, political and economic exploitation and inequality, the profit motive and
economic activity and organization of society and the anti-social concentration of power in
any form.
Since the beginning the INTUC shared and supported the political outlook of the
Indian National Congress its popular image was identified with that of the Congress, and
hence, its policies are subject to directives of the Congress party. The constitution of the
INTUC emphasizes democratic and peaceful methods, which are in harmony with the
tradition, culture and aspirations of the people.
1.7 FUNCTIONS OF TRADE UNIONS
The functions of modern trade unions are wide and more comprehensive than those
of their forerunners. Generally speaking, these functions have been termed as (i) militant
or protection function, and (ii) fraternal, ministrant or positive functions. The former functions
aimat securing better conditions of work and employment for members through militant
activities such as strikes, gherao, etc. if there is a failure of collective bargaining. The latter
functions provide benefits to their members and support to themduring strikes/lockouts or
during periods of temporary unemployment by giving them financial support out of the
funds raised with their contributions.
One author has categorized the functions of trade union as intra-mural and extra-
mural functions. The former include the welfare schemes of the unions within factory
premised to improve workers conditions of employment; regulation of hours of work, and
provision of rest intervals, adequate wages, sanitation, safety and security; continuity of
employment, etc. For performing these functions, collective bargaining, negotiations and
resort to a strike/lockout may be adopted. The latter include welfare schemes carried on
with a view to help workers when in need of such assistance (medical or financial) during
casualties, provision of education, recreational and housing facilities; provision of social
and religious benefits, including payment of expenses of funeral or religious ceremonies for
the deceased members or their dependents.
9
All these measures are designed to inculcate
the spirit of cooperation among the workers.
DBA 1748
NOTES
According to Samuel Gompers, Trade unions were born of the necessity of workers
to protect and defend themselves fromencroachment, injustice, and protect the workers
in their inalienable right to higher and better life; to protect them, not only as equal before
the law, but also in their rights to the product of labour, to protect their lives, their limbs,
their health, their homes, their firesides, their liberties as men, as workers, as citizen, to
overcome and conquer prejudice and antagonism, to secure themthe right to life, and the
opportunity to maintain that result of their brain and brawn, and the civilization of which
they are the founders and the mainstay.
10
Before we give a consolidated picture of the functions/objectives of a trade union, it
would be useful to glance at their functions in some countries.
1.8 FUNCTIONS OF TRADE UNIONS IN INDIA
As per the Indian Trade Union Act, 1926, the primary functions of a trade union are
to protect and promote the interests of the workers and the conditions of their employment.
They can also have other objectives, which are not inconsistent with this primary purpose
or opposed to any law. In India, trade unions generally undertake the following functions:
(i) To achieve higher wages and better working and living conditions for the members.
(ii) To acquire control over industry by workers.
(iii) To minimize the helplessness of the individual workers by making themstand-up
unitedly and increasing their resistance power through collective bargaining;
protecting the members against victimization and injustice by employers.
(iv) To raise the status of the workers as partners in industry and citizens of society by
demanding an increasing share for themin the management of industrial enterprises.
(v) To generate self-confidence among the workers.
(vi) To encourage sincerity and discipline among workers.
(vii) To take up welfare measures for improving the morale of the workers.
The National Commission on Labour has underscored certain basic functions to which
trade unions have to pay greater attention such as:
i. To secure fair wages for workers.
ii. To safeguard the security or tenure and improve conditions of service.
iii. To enlarge opportunities for promotion and training.
iv. To improve working and living conditions.
v. To provide for educational, cultural and recreational facilities.
vi. To cooperate and facilitate technological advancement by broadening the
understanding of workers in the issues involved in their jobs.
vii. To promote identity of interests of the workers with their industry.
viii. To offer responsive cooperation in improving levels of production and productivity,
discipline and high standards of quality.
ix. To promote individual and collective welfare.
NOTES
Besides these basic functions of trade unions, the Commission enjoined the following
responsibilities upon the unions:
(i) Promotion of national integration.
(ii) Generally, influencing the socio-economic policies of the community through
the active participation in their formulation at various levels.
(iii) Instilling in their members a sense of responsibility to industry and the community.
The First Five-Year-Plan while spelling our the role of trade unions emphasized that
they should:
(a) Present plans to workers so as to create enthusiasm among them for the plans.
(b) Exercise the utmost restraint in regard to work stoppage.
(c) formulate wage demands which are attuned to the requirements of economic
development and are in keeping with considerations of social justice.
(d) Assume greater responsibility for the success of the productive effort.
20
A responsible trade union should cooperate in all crucial areas so that the tempo of
growth, particularly in the industrial sector, can be speeded up. Thus, trade unions should
maintain:
(A) A reasonable degree of peace in industry: These conditions by promoting an
uninterrupted flow of industrial output, adds to the national income and creates
the needed investment climate. A responsible union balances the short-term
workers gain with their long-run gain originating from a stable growth of the
industry where they are employed.
(B) Supporting technological change, i.e: to cooperate in the introduction of new
technology, new processes, new managerial techniques etc. These technological
changes by promoting an increase in the productivity of the concern also boost its
efficiency and effectiveness.
(C) Accept a growth-oriented wage payment system: The adoption of growth-
oriented wage system enables the management to utilize workers untapped
potential.
By extending co-operation in the above areas, the trade unions will be able to promote
industrial growth, in particular and economic growth, in general. The improved productivity
brought about by the promotion of technological changes and better utilization of labour
would generate higher profits which can be ploughed back into industry.
In fine, we can say that the role and functions of trade unions varies fromcountry to
country depending on its socio-economic development, political system, extent of trade
unionism, extent of wage employment etc. In capitalist countries, they are defensive in
character. There is generally some antagonismbetween the workers and the employers on
basic issues relating to wage participation. In democratic countries, besides being defensive,
the trade unions also assist the Government in executing their plans for the well-being of
DBA 1748
NOTES
the working class. In erstwhile communist countries, they were dependent on the state for
their functioning.
The trade unions in countries like France and the Netherlands are statutorily required
to be consulted on any draft legislation dealing with economic and social issues. In Sweden,
unions participated at the highest level of planning. They are responsible for the
implementation of labour and social security legislation. In Germany and Yugoslavia, trade
unions take part in management under co-determination. In the USA and Australia, the
unions are not very formal with the Government. In Britain, the role of the trade union as a
partner in social control is played in an informal manner.
Here the main point is to emphasize the fact that trade unions change their outlook,
functions and practices to suit the prevailing conditions.
That is why it has been said: The trade unions of to-day are not content with protecting
and improving wages and conditions of labour; they concern themselves with all matters
by which the workers are likely to be affected, whether as producers or consumers, whether
as units of industrial manpower or as citizens.
21
In India, the role of trade unions has been perceived differently by the different national
unions. For instance, according to the All India Trade Union Congress (AITUC), a trade
union is an organization of the working class in its struggle against the all-pervading power
of the capitalist class. It has to struggle with employers in order to secure better living
and working conditions and to serve the interests of the working class in the given capitalist
society, to mitigate the burden of exploitation. In its struggle, it used economic, political,
moral and ideological means to attain its demands and objectives. The ultimate aimof the
trade union movement is to abolish capitalism and wage slavery and establish socialism in
which not only the working class but all layers of society are freed from exploitation.
22
The Indian National Trade Union Congress (INTUC) is of the view that union should:
(i) Serve their members and cater to the many-sided requirements of workers as
responsible citizens.
(ii) Plan for sustaining the interests of their members during times of industrial
peace by organizing intellectual, social, cultural and recreational activities,
consumer cooperatives, credit cooperatives and co-operative housing societies.
(iii) Educate the rank and file so that the traditional agitational role should gradually
be transformed into one of understanding. The unions should be given an
effective role in the affairs of the industry.
23
The Hind Mazdoor Sabha (HMS) has pointed out that if trade unions allow themselves
to be diverted from their traditional role in the name of requirements of economic
development, the weaker and exploited sections of the working class will find themselves
terrorized and deprived of safeguards to an even greater extent.
24
NOTES
The principal function of the trade union is the regulation of relations between the
employers (management) and employees (workmen), and also the provision of benefit to
its members. In this vein, it carries out the following objectives:
(1) To organization of all eligible members under one platform.
(2) To represent the workers to management in cases of disputes or differences.
(3) To enter in the collective bargaining and other agreement on behalf of workers.
(4) To represent workers on various participative forums.
(5) To undertake various activities for the welfare of its members.
(6) To provide benefit to members in case of sickness, old age, trade disputes,
unemployment, litigation and also to provide funeral expenses.
(7) Furtherance of political objectives.
(8) To participate in the work of any association that furthers the activities of trade
unions and its members.
(9) To arrange the necessary activities for the social and moral upliftment of workers.
(10) To arrange for printing or publishing facilities for the benefit of workers.
It is to be noted that the functions undertaken by the trade unions are not static but
changes with the changes in the economic and social set up of the country. The institutional
set-up of the society in which they operate also determine the functions of the unions. In
the initial stages, they undertake functions which are primarily concerned with safeguarding
the members interests but with the passage of time and the pace of industrialization, change
in technology and the systemof production create new complex problems, the functions
have been widened to meet the changing circumstances. According to Daker, Unions aim
at securing economic security and betterment, industrial and social status, and the role as
political institution.
1.9 TYPES AND STRUCTURE OF TRADE UNIONS
Ever since the dawn of industrialization there has emerged a wide variety of unions
across the globe. These are classed under two heads.
1.9.1 The purpose for which unions are formed.
1.9.2 Trade Unions based on their membership structure
A brief discussion of different types of unions is given below.
1.9.1 The Union Classified According to Purpose
Under this heads, normally two types of union exist. They are;
(1) Reformist (2) Revolutionary.
DBA 1748
NOTES
1.9.1.1. Reformist Unions
These unions are those which aimat the preservation of the capitalist society and the
maintenance of the usual employer-employee relationship, elimination of competitive system
of production.
They neither seek comprehensive change nor wish to destroy the existing social,
economic or political structure of the State. They desire only to modify these in accordance
with what their members consider to be current modes in society. For example, they may
wish to increase labours share in the increased production or they may aimat improving
working conditions by enforcing safety measures. They may try to generate increased
purchasing power by providing for workers various cooperative ventures, insurance
associations and educational programmes. They generally seek to dignify labour by forcing
upon the public and its leaders a recognition of the importance of labour in modern society.
All these objectives, they believe, can be attained without any extensive change in the
present economic, social and political institutions. In the USA, the unions affiliated with
A.F.L. (American Federation of Labour) and the C.I.O. (Congress for Industrial
Organization) are predominantly of this type.
They reformist unions have been sub-divided by Hoxie according to the objectives,
into Business Unionismand Uplift Unionism
71
which are discussed here.
a. Business Unionism is that formof labour cooperation in which employees enter
the successful business relationships with employers. In other words, business
unions are those that are maintained primarily to represent workers in collective
bargaining with their employers. They have generally been craft-conscious rather
than class-conscious. They are distinctively reformist which try to bring economic
advantages to their members, including increased wages and improved working
conditions. They use peaceful means to attain these ends and depend primarily
upon collective bargaining for this purpose. Such unions favour voluntary arbitration,
deprecate strikes and avoid political action, but when they serve their interests,
they may use the weapon of strike and resort to political action also.
b. Friendly or Uplift Unionismis idealistic in nature and aspires to elevate the moral,
intellectual and social life of workers and advocates idealistic plans for social
regeneration. It emphasizes such other considerations as education, health,
insurance and benefits. It is not craft-conscious but interest conscious of the
workers. It is conservative and law-abiding and employs the method of collective
bargaining, but emphasizes the need of mutual insurance and drifts easily into
political action, advocacy of cooperative enterprises, profit-sharing and other
idealistic plans.
1.9.1.2 Revolutionary Unions
hese unions aim at destroying the present structure completely and replacing it with
new and different institutions according to the ideals that are regarded as preferable. The
NOTES
revolutionary labour unionismgenerally seeks to destroy capitalist industry, to abolish the
wage systemand private property, to put and end to society based primarily upon competition
and individual rights, and to substitute some other system, generally socialist and communist.
It is extremely class-conscious rather than trade-conscious. In the USA, the most common
example of this type of unionism is the Industrial workers of the World (I.W.W.).
The revolutionary unionismis also of two types, namely, anarchist and political.
(i) Anarchist Unions are those unions which try to destroy the existing economic
systemby revolutionary means.
(ii) Political Unions are those which gain power through political action, the enactment
of laws eliminating the power of capital and capitalists, redistributing wealth and
giving effective power to workers.
Dr. Hoxie also enumerates a third type of union, namely, the predatory union, and the
guerrilla union. Both these he had referred to as labour racketeering.
(iii) Predatory unionismdoes not subscribe to any ideology. It can adopt any method
which will deliver the goods and it sticks at nothing. Its distinguishing characteristic
is the ruthless pursuit of the matter in hand by whatever means seem most
appropriate at the time, regardless of ethical and legal codes or the affect upon
those outside its own membership. It is dominated by gangsters and is a tool for
the enrichment of its leaders. It may employ business, friendly or revolutionary
methods for the achievement of its goals.
(a) A hold-up union represents a combination of unscrupulous business agents of a labour
organization with equally unscrupulous employers to thrust exorbitant prices upon
customers. When a craft is sufficiently organized so as virtually to control the local
market, the bosses in an agreement with employers set excessive prices for the services
they render to the public. The workers generally receive only a small part of the increase
in charges, for their bosses and employers retain the larger portion.
(b) A guerrilla union does not believe in cooperation with employers. It aims at exploiting
whatever and whatsoever it can. It is generally not democratic but boss-ridden. Its
leaders are unscrupulous, ruthless and irresponsible, and they frequently make use of
all sorts of violence in their programmes of exploitation. This type of unionismmostly
resorts to terrorismin its efforts to enforce its demands.
A fourth type of union has also been added by the followers of Prof. Hoxie, namely,
the dependent union. The existence of this type of union is dependent wholly or party on
the other unions or the employees.
1.9.2 Union Classified on the Basis of Membership Structure
The unions have also been classified according to variations in the composition of
their members. On this basis, four types of unions have been recognized, namely, craft
unions, staff unions, industrial unions, and general unions.
DBA 1748
NOTES
1.9.2.1. Craft Union
It is an organization of workers employed in a particular craft or trade or in a single or
two or three related trades/crafts/occupations. Such organizations link together those
workers who have similar skills, craft training and specialization. Historically speaking, it
were the craft unions that lent stability to the trade union movement because of their relative
stability in employment and higher earnings. the craft unions are mostly found amongst
non-manual employees and professional workers. The Ahmedabad Weavers Union, the
Kanpur Suti Mill Mazdoor Sabha, the International Wood Carvers Association and the
Indian Pilots Guild are the outstanding examples of such unions. Others are the trade
unions of employees in the commercial and banking industry, government establishments,
and of the journalists, teachers, engineers, actors, barbers, doctors, mechanics, etc.
Their members are generally craft-conscious rather than class-conscious. They derive
their strength fromthe strategic position of their workers. Such unions are horizontal in
character, for they enroll workers engaged in one or a single group of processes, such as
spinning, weaving, warping, watch and ward; or carpenters, joiners, frame-makers.
These unions aimat safeguarding the interests of the members against the onslaughts
of employers. They may try to exploit the workers. Such unions provide only the barest
minimumof associative integration.
1.9.2.2 Staff Union
The termstaff union is popularly used to refer both craft and industrial unions. It is
an organization or rather a formof organization based on the sense of
72
common status
and common need for help. It implies communality of outlook and presupposes some
solidarity between workers of different trades. The staff union seeks to recruit members
from of non-manual sectors including clerks, supervisors, draughtsmen, computerists,
operators, technicians, managers etc. As the teritiary sector emerges on the economic
platform, the number of employees working in such a sector (like health, services, local
services etc) also increases, the persons working therein join such unions. Yet anther factor
that leads to its popularity is the increasing participation of women in such unions. These
unions tend to adopt more sophisticated bargaining than other types of unions.
1.9.2.3 Industrial Union
It is an organization of workers which links all craftsmen and skilled workers in any
one industry (such as coal, engineering, plantation, textiles) regardless of the differences in
craft, skill, grade, position or sex. The common bond here is the industry in which the
workers are employed. It is organized upon an industry-wise rather than a craft-wise
basis. The membership is large; and it makes workers class-conscious and increases the
feeling of solidarity among them. The Textile Labour Association of Ahmedabad, the
Rashtriya Mill Mazdoor Sangh, Bombay, the Engineering Mazdoor Sabha, Bombay, the
Labour Mines Mazdoor Sangh, Udaipur, are important examples.
NOTES
Such organizations are vertical in character because they enroll all types of workers
who are engaged in preparing raw materials for consumption.
1.9.2.4 General Union
It is that organization which covers various industries and labourers having different
types of skills. The objectives of these unions are all embarrassing in character. They have
numerical superiority, for they are open to all classes of workers; and this is the source of
their strength. From the point of view of solidarity, this type is ideal. The Jamshedpur
Labour Union, Jamshedpur, the National Union of Municipal and General workers, the
Transport and General Workers Union in the UK are examples of this type of unions.
1.10 CRAFTS VERSUS INDUSTRIAL UNIONS
There has been a controversy regarding the union type whether craft unions or
industrial unions should be developed.
In the early days of the trade union movement, craft unions in the UK (New Model
Union) and the IFL in the USA were developed, for in that period of instability, these
provided a firmer basis. The crafts are compact groups; long training and apprenticeship
develop cohesiveness in attitude, outlook and perception of problems. These unions enjoy
many advantages. Some of these are:
(i) It may give the most stable relationship; it may give the best service in securing
desirable jobs; it is most likely to provide the needed training through apprenticeship
and to control supply of labour.
(ii) Such a union, comprising skilled workers, has a great striking power and therefore,
a strong bargaining power; and consequently enjoys many advantages. e.g., help
wage-earners to achieve a higher status and easier recognition.
On the other hand, a craft union suffers fromcertain weaknesses. These are:
(a) It can be easily broken by employers joint action because of different agreements
expiring at different times. The employers may play one union against the other.
(b) With rapidly expanding technology, the craft unions are being gradually displaced.
(c) A craft union keeps a majority of the unskilled workers out of the main streamof
the union movement.
The Royal Commission of Trade Unions and Employers Associations (1965-1968)
of the UK considered the merits and demerits of craft unions and concluded: The present
craft system can be very prejudicial to efficiency and to the needs and aspirations of the
workers outside the craft. The gathering speed of technological change will make it still
more obsolete.
DBA 1748
NOTES
Thus, in the UK and the USA, where modern industry started early, the craft/
occupational trade became the organization. In the USSR and in India, industrial unionism
has been the rule, partly for political and partly for industrial reasons. The craft unions cut
across skill and craft distinction of the workers employed in an industry and attempt to
solidify theminto one union. It is easy for the workers, believing in class-conflict, to fight a
single employer or a group of employers through industrial unions. The national Commission
on Labour mentions these advantages of industry wise unions.
73
(i) The facility that they afford for collective bargaining;
(ii) Introduction of a measure of uniformity in the principle governing all aspects of
working conditions; and
(iii) Reconciliation of sectional claims of different levels of workers within an
industry.
1.11 ALL INDIA CENTRAL COUNCIL OF TRADE UNIONS (AICCTU)
All India Central Council of Trade Unions (AICCTU) is a fighting trade union centre
of the Indian working class.
Its founding conference was held in Chennai in May 1989. The second and third all-
India conferences were held respectively in Calcutta (May 1992) and Patna (September
1995). Now the Fourth All India Conference was held in Delhi fromSeptember 22 to 24.
This was preceded by an all-India workers rally in the capital on September 21. The
1990s has been the most challenging decade for the Indian trade union movement. Far
fromreversing the course of Indias economic stagnation and decline, the New Economic
and Industrial Policies being followed since July 1991 seemonly to have aggravated the
situation. And for the working class, the new policies have led to large-scale disappearance
of jobs, extensive erosion of wages and working conditions and severe curtailment of
basic trade union rights.
Through its own affiliates and as a consistent constituent of the sponsoring Committee
of Indian Trade Unions, it has been AICCTUs sincere effort to enable the trade union
movement in India to face this growing threat to Indias economic sovereignty and to the
basic rights and interests of our workers.
AICCTUs motto of organizing the unorganized and unionizing the ununionised has
established it as a trusted trade union centre among large sections of the most exploited
and oppressed workers in different corners of India. Fromthe small and mediumfactory
workers in Chennai to the jute mill workers around Calcutta, from the textile workers in
Kanpur and Ahmedabad to the transport workers of Delhi, from the power loom and
beedi workers of Tamil Nadu to the tea plantation workers of Assam, fromthe coal miners
of Bihar to the contract labourers and quarry workers of Chhattishgarh, fromthe low-paid
migrant labourers in Ludhiana to the construction workers in Jaipur, AICCTU has been
steadily expanding its fighting network.
NOTES
With its growing profile as an emerging centre of revolutionary trade unionism in
India, AICCTU has also established solidarity links with the trade union movements in
other parts of the world. They are altogether nearly a thousand leading activists, men as
well as women, fromdifferent industries/occupations in different parts of the country. Trade
union leaders fromsome foreign countries are also expected to participate.
1.11.1 Aims and Objectives
(1) AICCTU stands for a resolute resistance to the offensive of capital against the Indian
working class and the trade union movement. It is determined to put up a consistent
fight in defense and for the extension of the rights and dignity of all workers and strive
for the establishment of a socialist order in the country through the complete
democratization of political, economic and socio-cultural life.
(2) Thorough democratization of economic life entails:
(a) encouragement of rapid and balanced development of the Indian economy
through unleashing the productive energies of the working people, utilising the
full potential of other productive resources, extending the control of the direct
producers over the means of production and enhancing the say of the working
people in economic decision-making at every level.
(b) Checking the indiscriminate entry of foreign capital and breaking the hold of
big business houses over joint stock companies.
(c) Reinvigorating and restructuring the state sectors with particular emphasis on
democratic management comprising the representatives of workers,
technocrats and professionals.
(d) Confiscation of all illegal assets and black money in the country and abroad.
(e) Thorough growing land reforms and infrastructure development in rural areas;
(f) Ensuring minimumwages, round the year employment opportunities
(g) The coming September Conference in Delhi is expected to bring and sufficient
landholdings for housing and sideline production to be provided for each
agrarian labourer household.
(3) AICCTU will rally the Indian working class to fight for the overthrow of the domination
of the Indian economy by multinational capital and its domestic allies.
(4) AICCTU fights against all fundamentalist-obscurantist ideas and organisations and
strives to develop a scientific outlook and modern cultural values among the working
class.
(5) AICCTU fights
(a) for full democratic rights of the Indian people particularly of the rural poor,
oppressed nationalities, women, national minorities and dalits.
(b) for enforcing the right to work and provision of social insurance for the old, weak
and disabled.
DBA 1748
NOTES
(c) for a needs-based minimumwage leading to the formulation of a uniformnational
wage policy and for implementation of the principle of equal pay for equal work.
(d) for proper education, housing and health care services.
(e) for introducing a six-hour working day with overall improvement in working
conditions.
(f) for greater participation of women in organized production, the eradication of
gender discrimination and sexual harassment in the workplace, and for securing
equal rights and full maternity benefits to all women workers.
(g) for abolition of child labour and all forms of bonded labour.
(h) Against the contract labour and all forms of bonded labour.
(i) against industrial pollution, environmental degradation and industrial health hazards
and for adequate safety measures to prevent industrial accidents
(j) for abolition of all occupations which go against basic human dignity and full
provision of alternative employment for the affected workers.
(6) AICCTU strives to build up solidarity with working class movements in other countries,
particularly in the Asia-Pacific region, against imperialist plunder and domination and
to promote class unity among workers of South Asian countries against the regional
hegemonismof Indian ruling classes.
1.12 CODES OF CONDUCT TRADE UNIONS
Corporate codes of conduct on workers rights and labour standards hold out a third
way to promote labour rights in the global economy. Advocates argue that codes of conduct
can harness the market power of informed consumers to halt abuses against workers in
developing countries. Many supporters see such codes as a civil society alternative to
first way government regulation or second way trade union organizing and collective
bargaining to protect workers rights.
Governments cannot possibly inspect every workplace and catch every lawbreaker,
goes the argument. And trade unions face a worldwide crisis of organizing and bargaining,
especially in sweatshop industries. Codes of conduct offer a new option through private
sector self-regulation using civil society vigilance. And like cereal boxes on a supermarket
aisle, a daunting variety of worker rights codes of conduct have entered the public policy
marketplace in just the past two years the Fair Labour Association (FLA), the Workers
Rights Consortium (WRC), Social Accountability 8000 (SA8000), the Ethical Trading
Initiative (ETI), the Clean Clothes Campaign (CCC) and more.
In the year 2001, the Clean Clothes Campaign has conducted an extensive evaluation
and strategic discussion. During a conference, in Barcelona, Spain, a common agenda for
the different spheres of action was developed with international partners of the CCC network.
High on the list of priorities for the years to come is the improvement and clarification of the
relationship between active organisations, both NGOs and trade unions, in Western Europe
and partners in producing countries.
NOTES
Within Asia, India is both in size and in its share of international garment production an
important player. Until now, contacts between the CCC and Indian trade unions and NGOs
have been fragmented and were mainly related to specific projects. Besides, there is relatively
little co-operation between these organizations at the national level. Large differences exist
between trade unions and NGOs as well as between different Indian regions.
As a result of the Barcelona conference, CEC (Centre for Education and
Communication, based in New Delhi) offered to facilitate meetings in Delhi, Mumbai and
Tirupur in which the CCC, Indian trade unions and NGOs could participate. The aim of
the meetings was to stimulate interaction, increase understanding of each others work and
to exchange ideas.
CEC is working on a big research project on working conditions in the garment
industry in India within the changing global context. A major development for India is the
phase out of the Agreement on Textiles and Clothing (MFA). The research is conducted in
three areas, Delhi, Mumbai and Tirupur and will provide input for a multi-stakeholder
dialogue to be organised by CEC in the three cities at the beginning of 2002. CEC felt that
an exchange with the CCC would also benefit this process.
The meetings facilitated by CEC, each lasting half a day, took place in the last two
weeks of October and the first week of November 2001. On the CCC side Ms Jantien
Meijer fromthe India Committee of the Netherlands, coalition partner of the CCC and Ms
Ineke Zeldenrust from the CCC International secretariat were present. CEC sent a team
of two to each meeting: In Tirupur, the T-shirt town in Tamil Nadu, a fourth strategy meeting
was organised by SAVE, an NGO that has been a long term partner of the CCC. This
meeting took place at the beginning of November 2001. About twenty NGOs from the
region participated and the meeting led to the establishment of the CCC Tamil Nadu
Taskforce.
1.12.1 Labour conditions in India
In India over 90% of the workforce is employed in the informal sector. Also a large
share of the workers in the garment industry formpart of the informal sector. One definition
of the informal sector refers to the activities of the working poor who are not recognized,
recorded, protected or regulated by the public authorities. An example of informal sector
workers are so-called self-employed workers who run their own micro-enterprise or
homeworkers. Another example of the informal sector are small workshops where people
consider themselves as working for a boss but where workers have no contract. One of
the consequences is that these workers cannot prove that an employer-employee relationship
exists, and subsequently cant make any claims related to job security, social benefits, or
other legal claims. If they try to organise or demand improvements in their labour situation
they can easily be dismissed. In general it can be said that informal sector workers are in a
vulnerable position.
DBA 1748
NOTES
Living and working conditions of garment workers in general are bad. In the meetings
several problems concerning labour conditions were mentioned; wages are low and often
based on a piece rate system, workers have to work long hours in order to make a living.
The government violates its own statutes by not enforcing the labour act in FTZs.
Complex chains of subcontracting are present within the country and the sector is
characterized by a high number of small units. Even in larger factories minimumwages are
not paid. The large majority of garment workers in India is not organised in trade unions.
The industry is organised along layers of middlemen and sub-contracting chains. Often the
real owner is not known to the trade unions. Any intervention by the trade unions, for
example if they try to organise the workers, in any of those layers is followed by the
collapse of the entire chain. As a result the workers lose their jobs. The fact that most
workers work in the informal sector hampers the formation of trade unions.
In every meeting it was mentioned that India has to export in large volumes, maintain
quality and offer competitive prices if it wants to stay in business. Cheap labour has always
been Indias competitive advantage. Trade union representatives felt that this point can not
be disregarded.
1.12.2 The possible effects of CCC
Several times the question was raised as to what the effect of an international campaign
like the CCC, which is focussed on companies with global supply chains, is on companies
which produce for the local market and consequently for workers in these facilities. The
response of CCC was that the campaign aims to improve working conditions in the garment
industry by supporting local organisations. One of the central demands of the campaign is
the right to organise and collective bargaining. It is up to the labour movement to command
respect for worker rights fromemployers and the government on behalf of the workers
who they represent.
The strategy of international pressure is of course most effective when workers in the
export sector are concerned. There are however strategies of international solidarity, for
example when governments are addressed with demands to implement the labour law,
which can also affect the situation of those workers who produce for the domestic market.
Besides, in the experience of the CCC, often the division between facilities that produce
for the local market and those producing for export is less clear than is assumed. Companies
can produce partly for the domestic market and partly for export, directly or via a contractor.
At the same time, we have seen examples of big foreign brands producing and selling in
India. The products are sold in India for huge prices that dont have any relation to the
production costs in India, while profits leave the country. One can really question the local
character of the domestic market.
NOTES
Many representatives of trade unions and NGOs fear that international campaigns
single out a specific region or country as violating labour standards, which may cause even
more business to go elsewhere because their image may be damaged. A way to avoid this
is to focus on one retailer or brand, while the information about labour rights violations that
is made public in such a case describes the situation in several countries simultaneously. In
such a way it can be shown that labour rights violations are central to the dynamics of the
garment industry rather than a characteristic of a country or region.
1.12.3 General conclusions
Some common conclusions can be drawn from the meetings in Delhi, Mumbai and
Tirupur. In the next section some specific outcomes per meeting will be described.
In the global organisation of industry, the local market may not be local anymore,
therefore the globalized industry needs global intervention through international labour
solidarity. Many of the participants in the meetings felt the need for international solidarity
work and appreciated the work done by CCC. It was felt that more co-operation between
Indian trade unions, NGOs and CCC is needed. A majority found the work on a voluntary
code of conduct for industry acceptable, though some felt the need to discuss this strategy
more elaborately. Several participants wanted to start the interaction with the CCC by an
exchange of information.
Due to particular local circumstances and power dynamics a successful campaign
strategy can only be developed locally. Many participants felt for instance that in India for
a labour rights campaign to be effective it will be key to raise awareness among employers
as part of a larger strategy.
Because large brands are making a clear effort to conquer the Indian market and
because there is a large Indian middle class there seems to be ground for awareness raising
activities in India. By making these consumers aware political support for worker rights
could be generated.
1.12.4 About every meeting some distinct remarks were made
Delhi
In Delhi the secretaries of the national trade union federations came to the meeting,
which meant that we had the chance to discuss the work of CCC with high level
representatives. They responded positively to the work of the campaign. It was the first
meeting between trade union representatives at this level and a foreign campaign.
A major point of discussion in Delhi was the question whether the CCC highlights the
link between trade and labour standards, and what the consequences of such a strategy
are. It was explained that promoting a linkage between labour standards and trade
agreements is not part of the CCC strategy. Instead, CCC focuses on the responsibility of
corporations; garment retailers and producers (brands) who operate internationally, because
DBA 1748
NOTES
it is these corporations who control the international supply chain of garments and who set
the standards of production. Such a strategy has enabled trade unions and NGOs in
Western Europe to co-operate without getting caught up in the social clause divide (many
NGOs in Western Europe oppose the social clause, while many Western European trade
unions are in favour of the social clause).The outcome of this meeting was the willingness
of both trade unions and CCC to ensure information exchange in the future.
Mumbai
At this meeting both representatives from trade unions and NGOs were present.
Several of the participants had quite some understanding about the CCC already. The
result was a lively group discussion, leading to several suggestions for local activities which
could be supported by the international CCC network.
The garment industry in Mumbai is characterized by many small scale units, supplying
buying houses or traders, both for export and for the domestic market. Garment workers
in Mumbai are hardly organized. The trade unions have traditionally focussed on textiles,
while the mills are closing down or have closed already. Unemployment rates are high and
create great problems for the laid off workers. Some of themhave managed to shift to the
garment industry. Attempts to organize garment workers are usually met by an immediate
shift of production to a different unit. The factory owners constantly pass on the message
that the sector is in trouble, that therefore they cant improve the situation for workers and
that the situation will deteriorate after the phase out of the MFA in 2005.
One suggestion made in the meeting was to start a broad based local campaign on a
specific issue, for example on social security or the demand for a sectoral minimumwage.
To prevent that factory owners in response to these demands shift production to another
facility and dismiss the workers, the campaign should not target on one company but on
the sector as a whole. Neither should such a campaign address industry alone but also the
local- or state government. It could benefit frominternational support, pressuring government
and industry organizations via the large buyers.
Existing local regulation concerning head loaders provides an example of regulation
that has allowed for recognition of the so-called self-employed as workers. A special
government board oversees the implementation of the head loaders act while local bodies
pool workers and divide the work.
Certification systems were mentioned as another possibility for improving conditions,
if a genuine systemwould be developed whereby those companies that do provide good
conditions and space to organize would receive such a certificate, and buyers would commit
to preferring these, this would definitely be a benefit. Some criticism was raised regarding
existing certifying initiatives such as for example Rugmark. Participants felt that this initiative
failed because it does not sufficiently involve trade unions and civil society.
NOTES
A third suggestion was to make sure that a good code of conduct is included in the
contract between buyer and supplier, thereby making observance of the standards outlined
in the code part of the national law. If trade unions and NGOs in India know in which
factories this is the case, they can monitor certain suppliers and the companies concerned
can be taken to court also internationally. Contract law is very strong, and can be a valuable
tool for trade unions and NGOs in India to use and would also focus more on the legal
obligations of companies and less on voluntary initiatives, with their inherent risks.
The outcome of this meeting is that trade union representatives and NGOs came up
with some inspiring strategies to improve the situation of garment workers in Mumbai.
Trade union meeting in Tirupur
A major point that was raised in Tirupur was the very low level of organisation in the
area called the T-shirt belt, which is Tirupur and surrounding towns. The problemof this
very low organisation rate was recognized by all present in the meeting.
The main worry for those working on behalf of workers in Tirupur is the process of
relocation, both within the region as well as abroad, leading to job losses and insecurity of
employment. Consequences of the WTO entry of China plus phase-out of MFA are
considered to be extremely important developments.
Obviously the CCC cannot stop the process of constant relocation. What it can do is
raise the issue of cut & run at all levels, and address it as one of the major causes of bad
labour conditions in the garment industry. The risk of campaigning is that it can single out
Tirupur as violating labour standards, giving it a bad reputation and leading to more
relocation. A way to prevent this is to always present the situation in Tirupur within the
national and international context and by giving information about several regions
simultaneously. In that way it can be shown that Tirupur is not an exceptional case but that
poor working conditions are a central dynamic of the garment industry.
The outcome of this meeting was the agreement to ensure information exchange in the
future.
NGO meeting in Tirupur
SAVE invited a broad group of NGO representatives from the region for a strategy
meeting in Tirupur. The NGOs who participated in the meeting work on issues like child
labour, development and human rights. Because the textile and garment industry is shifting
from Tirupur to other towns in the region and because the participants are frequently
confronted with problems of the workers in these sectors they feel the importance for joint
action.
DBA 1748
NOTES
Different NGO representatives feel that if a relationship with trade unions could be
developed a strong movement could exist. They see the work done in Europe as an example
of how trade unions and NGOs can work on shared issues. The problems between trade
unions and NGOs in Tirupur can partly be explained by the fact that employers actively
drive a wedge between them. NGOs should consider the question how this gap can be
filled and how a new campaign can be started.
As a result of this meeting, 19 non-governmental organizations fromthe state of Tamil
Nadu launched a network to work for the interest of workers in the garment- and allied
industries. The network will work in tandemwith the Clean Clothes Campaign. A taskforce
was created to consolidate this Clean Clothes Campaign network in Tamil Nadu. The
taskforce has planned the following activities:
Publish a poster and a calendar for the year 2002, highlighting the concepts of
CCC among trade unions, non-governmental organizations, labour agencies,
consumer groups and other networks in order to attract more membership.
Organise a two-day workshop on labour standards in garment and allied industries
with 50 participants fromnon-governmental organizations, trade unions, consumer
organizations and governmental institutions from Tamil Nadu, New Delhi and
Mumbai. Representatives fromregional ILO office, state labour officials, labour
researchers, Asian CCC network partners and International CCC will be invited
to address the workshop.
Launch a network for worker education involving all NGOs and trade unions
working in the textile and garment manufacturing region in Tamil Nadu to mobilise
women workers and home based workers.
1.13 THE INDIA COMMITTEE OF THE NETHERLANDS (ICN)
1.13.1 Organisation
The ICN is an association of people who share their involvement in India and its
people. The association works with a small paid staff and with a number of volunteers.
ICNs activities are financed by membership contributions, private donations and subsidies.
The ICN carries out research, owns a public library, publishes and distributes books,
booklets and a bimonthly magazine India Nu (India Today). The ICN also lends out
video tapes, slide shows, and organizes seminars, exhibitions, conferences, information
and discussion meetings and other educational activities for and with a wide variety of
individuals and groups.
The India Committee of the Netherlands (ICN) is an independent NGO (non-
governmental organization). The ICN informs the public in the Netherlands about India
and how social, economic and political developments in the West influence the daily lives
of millions of Indians. The ICN is based on solidarity with deprived groups in Indian
society: the poor, dalits (the so-called untouchables), child labourers, victims of
NOTES
environmental degradation, landless people and countless women and girls. The ICN
supports their struggle against poverty, oppression, unequal treatment and degradation of
their environment.
1.13.2 Awareness raising
The ICNs main strategy is to influence public opinion and political decision-making
processes in the Netherlands and Europe. The ICN does this through lobbying, generating
publicity in the media, and organising public meetings and campaigns. The committee works
with a wide variety of target groups, ranging fromteachers, company managers to students
and housewives. The ICN does not provide direct financial support to development projects.
Being a small-scale and low-budget organisation, it does not have the means to do this.
The ICN takes the position that the disadvantaged groups in India should benefit
from development co-operation initiatives. It therefore exposes the sometimes harmful
effects of development aid on the living conditions of the poor, and argues in favour of a
larger share of development aid to be dedicated to sectors such as primary education and
health care.
In addition, the ICN alerts western consumers and companies about the effects of
their behaviour. In these days of globalisation, the social and environmental conditions in
developing countries such as India are increasingly the responsibility of every citizen in the
world. The ICN finds it of paramount importance to informconsumers and companies in
the Netherlands and Europe about these conditions and the measures that can be taken to
improve them.
1.13.3 Campaigns
In the past, the ICN has successfully campaigned against large-scale European dairy
aid to India as part of the so-called Operation Flood, and the delivery of big fishery
trawlers and fertiliser shipments funded by Dutch development aid. These types of aid had
proven harmful rather than beneficial to small peasants and local fishermen.
The ICN has also supported the national campaign for the right to work staged by
Indian organisations of agricultural labourers. With the slogan Work Against Poverty, the
ICN urged the Dutch government and the European Union to support employment guarantee
programs. Womens rights and Adivasis rights, and the consequences of the Bhopal disaster
are other examples of issues taken up by the ICN in its campaign work.
At present, the ICN is campaigning against child labour, and in favour of decent
primary education for all children. The committee is campaigning for socially responsible
business and fair trade, for womens rights and for human rights for Dalits.
1.13.4 Social labels and codes of conduct
Under the impact of globalisation, governments are increasingly inclined to allow
markets to regulate themselves. At the same time, trade and investment by multinational
DBA 1748
NOTES
companies are increasingly affecting labour standards and environmental conditions
worldwide. Governments compete to attract trade and investment, and in doing so often
lower standards. The ICN takes the position that governments, international organisations
and business are responsible for maintaining and improving social and environmental
conditions.
The ICN is promoting social labels and codes of conduct to help improve labour
conditions in India and elsewhere. Of course, voluntary labels and codes of conduct are
no substitute for legislation and binding international agreements. However, they can be
helpful in promoting fundamental labour and human rights all over the world. One crucial
condition is that independent monitoring should be in place, in order to determine if the
standards set by the social label or code of conduct are being met in practice.
Among other things the ICN is promoting Rugmark, a social label for carpets produced
in India and Nepal without child labour. The ICN is also campaigning with other NGOs
and unions in favour of a so-called Fair Trade Charter for Garments. This charter is a
combination of a social label and a code of conduct. It guarantees clean clothes for the
consumer: garments produced in line with internationally accepted fundamental labour
standards.
1.13.5 Co-operation
The input of Indian partners is essential for the ICN. Consequently, the ICN co-
operates with various organisations all over India. In the Netherlands, and Europe in general,
the ICN co-operates with many social organisations, NGOs and trade unions. A broad
social basis makes or breaks campaigns. Broad coalitions are therefore needed in India,
the Netherlands and Europe.
1.14 CONCLUSION
The Unit lucidly describes the concept and importance of Trade Unions with particular
reference to India. The specific problems faced by the public sector organizations in India
have also been discussed. The concepts of trade union, the history and growth of Trade
unions have also been elaborated to give a first hand feeling of the formation and functioning
of trade unions. Finally the unit concludes with the Codes of Conduct for the effective
working of Trade Unions that has been formulated and audited.
Questions for Discussion
1. What do you understand by Industrial Relations?
2. Discuss the concept of Industrial Relations
3. What is the need and importance of Industrial Relations
4. Trace the history and growth of trade unions in India
5. What is Clean Clothing Campaign (CCC) and its audit report in India
6. List the functions of Indian Committee of Netherlands(ICN)
NOTES
UNIT II
INDUSTRIAL CONFLICTS
Learning Objectives
After going though this unit you should be in a position to explain the following terminologies
Industrial Dispute
Mediation
Conciliation
Arbitration
Adjudication
Labour Court
Industrial Tribunal
National Tribunal
Government Machinery to resolve Industrial Disputes
National Arbitration Promotion Boar
Central Industrial Relations Machinery in India
2.1 INTRODUCTION
This unit discusses in detail the meaning and definition of Industrial disputes and the
government machinery to resolve the issues of the disputes.
2.2 INDUSTRIAL DISPUTE
Industrial Dispute has been defined as any dispute or difference between employers
and employers or between employers and workmen or between and workmen which is
connected with the employment of non-employment, or the terms of employment or the
conditions of labour, of any person.(Sec.2(k), Indian Trade Unions Act, 1926)
The definition very wide and takes within its fold many disputes between an employer
and a workman. A dispute is an industrial dispute provided it satisfies these conditions,
DBA 1748
NOTES
(a) There should be an industry, employer and workman. There must be a collective
will of substantial or appreciable number of workmen taking up the cause of the
aggrieved workman. It must be in a position to redress the grievance.
(b) There should be a real and substantial dispute or difference and should be one in
which the workman is substantially interested, i.e., there must be community of
interest.
(c) The dispute should be between the employer and his workman, between employers
and employers or between workman and workmen.
(d) The dispute must be connected with: (i) the employment or (ii) non employment,
or (iii) terms of employment or with conditions of labour. Non employment
includes retrenchment and refusal to reinstate.
(e) There should be a contractual relationship between the employer and the workman.
The former following a trade, business and manufacture and the latter following
any calling, service, or employment in aid of employers enterprise.
(f) The dispute should relate to existing industry, and not a dead on one which is not
even in existence.
(g) An individual dispute could assume the character of an industrial dispute provided
it is sponsored either by the trade union or by a number of workmen.
Collective support by the workmen is essential for making an individual dispute an
industrial dispute, i.e., the workman as a body or a considerable section of them make
common cause with the individual workman.
For any industrial dispute it is not necessary that there must be any undertaking with
a profit motive or trade or business in a commercial sense. However, for a dispute, it is
necessary that a demand must be raised by the employees or their unions and rejected by
the employer.
In fact the term industrial dispute denotes a real and substantial difference having
some elements of persistence and continuity till resolved and likely, if not adjusted, to
endanger the industrial peace of the undertaking or the community.
2.3 CERTAIN ASPECTS OF INDUSTRIAL DISPUTES ARE DISCUSSED AS
BELOW
(a)Employment and non employment: Besides employment, conditions relating to
non employment also constitute a dispute. The termnon employment includes
retrenchment as well as refusal to reinstate.
(b)Individual dispute and industrial dispute: Before introduction of the Section
2-A of the Act an individual dispute could not attain the status of dispute unless
raised by the trade union or a number of workmen. However, Section 2- A has its
own limitation. If fact all individual disputes cannot be termed as industrial dispute.
The disputes connected with the discharge, dismissal retrenchment or termination
cannot be termed as industrial dispute. These disputes connected with other matters
will have to satisfy the basic conditions of industrial dispute.
NOTES
(c) Disputes regarding facilities: For any industrial dispute the tribunals and court
has adequate jurisdiction to pass proper and reasonable order. But the facilities
like housing, education and medical are the responsibilities of the state. Therefore,
such obligations cannot be imposed on the employer. Hence any dispute pertaining
to the facilities cannot be termed as industrial disputes.
(d)Withdrawal of privilege of trade union leader: In case where any privilege is
given to a trade union leader and its withdrawn by the management it cannot from
a subject matter of dispute. As such granting of privilege is managements
discretionary right and it cannot be treated as part of the service condition. So
whenever any concession or privilege is to be withdrawn the beneficiate cannot
raise a dispute.
(e)Dispute relating to workmen employed by the contractor: The question
whether the disputes relating to workmen employed by the contractor, can be
regarded as dispute is quite controversial. In this context the case of Vacuum
Refining Company, is leading one. The company in question used to give annual
contract for maintenance of plants and premises. In the year 1970 it employed 67
workers whereas in the next year only 40 workers were employed. The workers
employed on a contract basis raised a dispute demanding abolishing of the contract
system. It was observed by the Supreme Court, that there is an industrial dispute
between the company and the workmen, on the question of employment of contract
labour, for the work of the company.
The very fact that the workmen are employed by the contractor would not alter the
nature of dispute as long as party raising a dispute has a direct interest in the subject matter
of dispute.
(f) Lay off (Section 2 kkk): It means the failure, refusal or inability of an employer
on account of shortage of coal, power or raw material of the accumulation of
stocks of the breakdown of machinery; natural calamity or for any other connected
reasons to give employment to a workman whose name is borne on the muster
rolls of his industrial establishment and who has not been retrenched.
Every workman whose name is borne on the muster rolls of the industrial establishment
and who present himself for work at the establishment at the time appointed for the purpose
during normal working hours on any day and is not given employment by the employer
within 2 hours of his so presenting himself shall be deemed to have been laid off within the
meaning of the clause. But where a workman after attendance at the commencement of
any shift for day, is asked to present himself for the purpose of second half that shift, and is
given employment, the workman shall be deemed to have laid off only for one half of that
day. When after presenting himself for the second half of the shift the employee is not given
employment he shall be deemed to have been laid for the day and not for the second half
of the shift of that day. In such circumstances, the laid off workman shall be entitled to full
basic wages and dearness allowance for the part of the day.
DBA 1748
NOTES
Lay off is not a right conferred but an obligation imposed on the employer for the
benefit of workmen. The very genesis of the lay off is that it is break in the service of the
employee and within a reasonable time, the employer expects that, the business or industry
would restore its normal situation and the laid off persons would be reinstated. A leading
case in this context is of Nutan Mills Ltd., v S.I.C the question came for the consideration
was in case of laid off employee whether relation of master and servant continue. It was
held by the Bombay High Court that during period of lay off the relationship between
master and servant is suspended and the employee is entitled for wages.
(g) Lockout (Section 21) : Lockout means the temporary closing of place of
employment, or the suspension of work, or temporary refusal by an employer to
continue to employ any number of person employed by him.
In cash of a lay-off, owing to the reasons specified in the definition, the employer is
unable to give employment to one or more persons. But in case of lockout the employer
closes the place of business and locks out the whole body of workmen for reasons which
have no relevance, to causes specified in the definition of lay-off.
In case of closure, the employer does not merely close down the place of business
but he also closes the business itself.
Lockout is often used by an employer as a weapon in his armory to compel the
workmen to accept his proposals just as a strike is a weapon in the armory of the workmen
to compel the employer to accept their demands.
Lockout has been described by the Supreme Court as the anti thesis of strike. The
Madras High Court is of opinion that whatever be the circumstances in which the employer
find himself placed and whatever be the strength of the agencies which forced on himthe
steps and however impotent he may be to avoid the result if an employer closes the place
of employment or suspends work on his premises, a lockout would come into existence.
2.4 GOVERNMENT MACHINERY TO RESOLVE INDUSTRIAL DISPUTES
The main object of the Industrial Disputes Act is the investigation of and management
of industrial disputes.
2.4.1 Introduction
One of the principal aims of the Industrial Disputes Act is to harmonise the conflicting
interest of employers and employees engaged in industrial establishments as defined in the
Act. The advent of the doctrine of welfare has cast responsibilities on the State to participate
actively in the prevention and settlement of industrial conflicts which are of common
occurrence under the present economic set-up. The old doctrine of laissez faire has become
absolute in the present socio-economic context mainly due to the reason that active
participation of the State in necessary in order to protect the interest of the weaker section
NOTES
of the society who always look upon the State as their benefactor. The traditional theory of
hire and fire as well as the theory of supply and demand are outmoded concepts in the
present socio-economic context. In the present context the goal is to achieve social and
economic justice in the community. One of the methods for achieving this goal is to evolve
a systemof industrial adjudication and arbitration whereby industrial disputes can be settled
peaceably, justly and as far as possible uniformly.
Industry adjudication needs different philosophy, outlook, attitude and behavior on
the part of the authorities associated in the task to harmonies the conflicting interest of
capital and labour as compared to settling civil disputes where set rules of law govern the
justice. Whereas prevent, as far as possible, and if they fail in this fask than to solve the
disputes to the satisfaction of both the parties involved in the dispute by narrowing down
the differences to the minimumpossible in the ever changing complex of social needs and
necessities by using his own sense of justice, equity and good conscience. The law as
already evolved in the labour field is also subject to stress and strains of the changes in
outlook of the employers and employers and employees. In certain fields of conflicts there
is no codified law of rights and liabilities of the disputants and, therefore, the persons
vested with the authority to adjudicate the industrial disputes are to depend upon the
reasoning of common sense suited best under the prevailing circumstances. The industrial
adjudication requires a pragmatic approach rather a dogmatic approach to the problems
which vitally affect the entire social structure of the society.
The various methods and machinery under the industrial disputes act can be classified
as under the following heads:
(I) Conciliation
a. Works committee
b. Conciliation officer
c. Board of conciliation
(II) Arbitration
d. Court of inquiry
(III) Adjudication
e. Labour court
f. Industrial tribunal and
g. National tribunal
Of these settlement machineries the first one can be described as quasi-administrative
machinery, because it is governed and guided mainly by administrative principles and
policy. Further, the persons constituting these machineries are generally chosen fromthose
having administrative experience or qualities. They apply normally administrative mind to
resolve an industrial dispute. On the other hand, the last two are quasi-judicial machineries
for these are mainly governed and guided by judicial principles. The persons constituting
theses machineries are chosen from those having judicial background.
DBA 1748
NOTES
2.4.2 A. Conciliation
Conciliation is an important method for the settlement of industrial disputes through
third party intervention. It is an attempt to reconcile the views of disputants, to bring them
to an agreement. Conciliation is generally understood as the friendly intervention of a neutral
person, in a dispute, to help the parties to settle their differences peacefully.
Conciliation may be described as The practice by which the services of neutral third
party are used in a dispute as a means of helping the disputing parties to reduce the extend
of their differences and to arrive at an amicable settlement or agreed solution. It is a process
of rational and orderly discussion of differences between the parties to a dispute under the
guidance of a conciliator.
As a process of peace-making in industrial relations, conciliation aims to bring about
the speedy settlement of disputes without resorting to strikes or lock-outs, and to hasten
the termination of work-stoppages when these have occurred. Its function is to assist the
parties towards a mutually acceptable compromise or solution. For this he relies on reasoning
and persuasion.
The conciliator is a natural party, who without using force, seeks to find some middle
course for mutual agreement between the disputants so that the deadlock is brought to an
end at the earliest possible moment and normal peace restored.
Various methods of conciliation are discussed below:
(a) Works committee (Section 3): the following are the objectives of the works
committee:
(1) To promote measure for securing and preserving good relations between employer
and employees.
(2) To strive for minimizing the difference of opinion in regard to matters of mutual
interest between the employees and the employer. It is meant to create a sense of
partnership or comradeship between the employers and workmen.
The decision of works committee is neither agreement nor compromise. Further it is
neither binding on the parties nor enforceable under the act. It may however by noted that
the works committee is entitled to:
(a) Discuss grievances arising out of the disciplinary action, or
(b) Take up such matters which fall under the purview of Standing orders, or
(c) Enter into agreement with the employer on changes in conditions of service, or
(d) Supplant or supersede the unions for the purpose, of collective bargaining.
(e) To compose difference by making recommendations, the final decision rests
with the union and the employer.
NOTES
It task is only to smooth away friction that might arise between the workmen and the
management in day to day work.
The Act requires that a works committee shall be constituted in every establishment
where 100 or more workmen are employed or have been employed on any day in the
preceding 12 months; to promoted measures for securing and preserving amity and good
relations between the employers and workmen and to comment upon such matters of
common interest or concern and endeavour to compose any material difference of opinion
on such matters. It shall consist of any equal number of representatives of employers and
also elected representatives of workmen ( the total number not to exceed 20 ), the
representatives of the employer are to be nominated by the employers and those of workmen
by registered trade unions of by non-members, if there is no trade union. The tenure of
office of the representatives is for two years, and they lose membership, if they fail to
attend three consecutive meetings. The committee may meet as often as possible but not
less than once in 3 months.
The committee shall represent various categories, groups and classes of workmen
engaged in different sections, shops or departments of the establishment. It shall have
among its office bearers a Chairman, a Vice Chairman, a Secretary. If a vacancy occurs
for membership, the newly elected member will continue in office of the residual term in
whose place he has been elected. The employers are required to provide accommodation
for holding meetings of the committee.
The works Committee is set up with a definite objective, limited power and scope but
without any defined subjects over which it can exercise jurisdiction. For this reason, in
many cases they have mere instruments without teeth or sharpness, and a large number of
themhave proved to be ineffective in practice.
(b) Conciliation Officer (Section 4): Under the act, the appropriate government is
empowered to appoint desired number of conciliation officers, by notification in
the Official Gazette, for the settlement of industrial disputes.
The number of Conciliation Officers to be appointed, is determined by the appropriate
government, taking into account the volume of work and the quality of industrial disputes
that actually exist or may arise. A Conciliation Office may be appointed for a specified area
or for specified industries of for one or more specified industries and either permanently or
for a specified area or for specified industries or for one or more specified industries and
either permanently of for a limited time.
His duty is to induce the parties to come to a fair and amicable decision on matters in
dispute. He is an independent person who investigates the dispute and all matters affecting
thereto. He is not an adjudication body but is merely a suggesting body. He goes from
camp to camp and finds out the greatest common measures of agreement. He is charged
with the duty of mediating in and promoting settlement of industrial disputes.
DBA 1748
NOTES
Duties of the Conciliation Officer: The Act provides (under Sec.12) that (i) if an
industrial dispute exist or is apprehended in a public utility industry, the Conciliation Officer
shall hold conciliation proceedings: and (ii) in case of other industry, his power is discretionary,
i.e he may or may not hold such proceedings.
The Conciliation Officer has wide powers of making investigation without delay, into
an industrial dispute and all matters affecting the merits and rights of settlement thereof and
may do all such things as he thinks fit, to induce the parties to come to a fair and amicable
settlement of the dispute. The Conciliation Office can send only report but has no authority
to pass a final order. Any order passed by him requiring the parties to act in particular
manner is without jurisdiction and therefore, illegal and imperative.
If a settlement is arrived at in the course of conciliation proceedings, the conciliation
officer must submit its report within 14 days or within such short period as may be fixed by
the appropriate government duly signed by the parties to dispute. A conciliation proceeding
is deemed to have commenced on the date on which a notice of strike or lock-out is
received by the conciliation officer. In the other cases, it is deemed to have commenced
fromthe date when conciliation officer holds proceedings. A settlement brought through
the conciliation officer is an administrative act and not a quasi judicial one.
If no settlement is reached at, then the conciliation office is required to immediately
send to the appropriate government, a full report setting forth the steps taken by him for
ascertaining the facts and circumstances relating to the dispute and for bringing about a
settlement thereof and the probable reasons for failure.
A conciliation proceeding is not concluded and its deemed to be pending until any of
the following conditions are fulfilled:
(a)where a settlement is arrived, at a memorandumof the settlement is signed by the
parties of the dispute;
(b)where no settlement is arrived at, the report of conciliation officer is received by
the appropriate government; and
(c)a reference is made to the Court of Inquiry, labour court, tribunal or national tribunal,
during the pendency of the conciliation proceedings. The time of submission of
the report may be extended by such period as may be agreed upon in wiring by
the parties to the dispute, subject to the approval of the conciliation officer.
If, on consideration of the report submitted by the conciliation officer, appropriate
government is satisfied that there is a case for reference to any authority under the Act, it
may make such reference. Where the appropriate government chooses not to make such
a reference, it shall record and communicate the reasons recorded for not referring the
dispute to the contending parties.
Thus , a wide discretion has been conferred on the government either to refer or not
to refer in industrial dispute. But in exercise of its discretion three thing must be satisfied:
NOTES
(a) The exercise of the discretion must be bona fide;
(b) It must be inconsideration of relevant and material facts; and
(c) The reasons must be of such a character as will show that the question was carefully
and properly considered by the government
(c) Board of conciliation (Section 5): A board of conciliation is constituted as an adhoc
body by the appropriate government. Its purpose is to medicate and to induce the parties
to come to a fair and amicable settlement, so the appropriate government is not empowered
to constitute a Board for the purpose of referring criminal proceedings. The board cannot
enforce an award. It also cannot thrust upon the contending parties its own terms and
conditions of settlement. It can take action only when a dispute has been refereed to it by
the government.
The board may be constituted by the appropriate government by notification in the
Official Gazette. It shall consist of a chairman (who shall be an independent person: i.e not
connected with the dispute or with any industry directly affected by such dispute) and two
or four members, as the government thinks fit, who shall be appointed to represent the
party. If any party fails to recommend any name within the prescribed time, the appropriate
government shall appoint such persons as it thinks fit to represent to party. The act requires
that the appointment of board of conciliation together with the names of persons constituting
it, shall be notified in the Official Gazette. The notice to the employer shall be sent to him
personally or if the employer is an incorporated body to the agent, manager or the principle
officer of such corporation. The notice of workmen shall be sent:
(1) to the president or secretary of the trade union if the workers are members of
trade union and
(2) in case the workmen who are not members of trade union to any five representatives
of the workers who have attested the application.
A board, having the prescribed quorummay act notwithstanding the absence of the
chairman or any of its members or any vacancy in its number.
Duties of the Board
(1) A conciliation Board cannot admit a dispute in conciliation on its own; the board
has more powers than those enjoyed by a conciliation officer.
(2) The board shall endeavour to bring settlement between the parties; and for this
purpose it shall, without delay, investigate the dispute and all matters affecting the
merits and rights of settlement and shall do all such things as it thinks fit for the
purpose of inducing the parties to come to a fair and amicable settlement of the
dispute.
(3) If a settlement is arrived at in the course of the conciliation proceedings, the Board
shall send a report thereof to the appropriate government with a memorandumof
settlement signed by the parties.
DBA 1748
NOTES
(4) If no settlement is arrived at the board shall, as soon as practicable after the close
of the investigation, send a report to the appropriate government stating the facts
and circumstances, the steps taken, the reasons why no settlement was arrived at,
and its recommendations for the determination of the dispute.
(5) A board of must submit its report within 2 months of the data (on which the
dispute was referred to it) or with such shorter time as the government may fix.
The time may be extended by the government up 2 months, with the consent of
both the parties in writing.
The report must be signed by all the members. Any member can submit a dissenting
minute. Every report together with the minute of dissent must be published by the appropriate
government within 3 days fromits receipt.
In case no settlement is arrived at, the government may refer the matter to the labour
court, tribunal or national tribunal. If it does not do so, it shall record and communicate the
parties concerned it reasons therefore.
Every board has the same powers as are vested in a civil court (under the code of
civil Procedure, 1980) when trying a suit, in respect of the following matters:
(1) enforcing the attendance of any person and examining himon oath;
(2) compelling the production of documents and material objects;
(3) issuing commissions for the examination of any witness
(4) in respect of such other matters as may be prescribed
2.4.3 B. Arbitration
(A) Court of Inquiry (section 6): A court of inquiry is constituted, as an ad hoc
body as the occasion may arise, by the appropriate government. It can inquire into any
matter connected with or relevant to industrial dispute; but not into the dispute itself. The
constitution of the court has to notified in the Official Gazette. It may consist of one
independence person or such number of independent persons as the appropriate
government thinks fit. If there are more than two persons, one of themshall be appointed
as the chairman. The appointment of court together with the names of persons constituting
it requires to be notified in the official gazette. A court having the prescribed quorum, may
act notwithstanding the absence of the chairman or any of its members of any vacancy in its
number. The court of inquiry is not required to make any recommendations for resolving
disputes. It is seldomappointed, as it is a superfluous and ad hoc body. It has no power to
impose any settlement upon the parties. Its merely a fact finding machinery.
Its duty is to inquire into the matter referred to it by the appropriate government and
to make a report on it on the inquiry held on matters refereed to it within a period of six
months from the commencement of the enquiry. It must be signed by all the members. A
member can submit a government within 30 days from its receipt.
NOTES
The section 22,23 and 33 lays down that during the pendency of the proceeding
before a court of inquiry, the following rights of works remain unaffected viz.
(1) The right of the worker to go on strike:
(2) The right of employer to resort to lockout and
(3) The right of employer to dismiss or otherwise to punish the worker in certain cases
under section 33.
2.4.4 C. Adjudication
The ultimate legal remedy for the settlement of an unresolved dispute is its reference
to adjudication by the government. The adjudication involves intervention in the dispute by
a third party appointed by the government for the purpose of deciding the nature of final
settlement.
On getting a report for the failure of conciliation, the government has to decide whether
it would be appropriate to refer the dispute to adjudication. The rational behind this is that
the developing countries can ill-afford to suffer fromloss of production due to long-draw
strikes and lockouts. Further, the trade union movement is yet not storing and mature
enough to adopt and rely on only collective bargaining for protecting the interest of the
workers. Therefore, the necessity for intervention by the government is felt. Thus, the
government does by making references of the dispute to the adjudication machinery.
The importance of adjudication has been emphasized by the Supreme Court and has
been considered at par with decisions on fundamental rights under the Constitution in the
following words.
As in the decision of the Constitutional question of this kind, so in adjudication it is
always a matte of making reasonable adjustments between the two competing claims. The
fundamental right of the individual citizen is guaranteed and its reasonable restriction is
permissible in the interest of general public, so the claims of the interest of general public
have to be weighed and balanced against the claims of the individual citizens in regard to
his fundamental right. So too in the case of adjudication, the case of adjudication, the
claims of the employer based on the freedomof contract have be adjusted with the claims
of industrial employees for social justice.
Accordingly, the adjudication machinery has to consider not only the demands of
social justice but also the claims of national economy required that attempts should be
made to secure to workmen a fair share of the national income. On the other hand, the
adjudication machinery has to take care to see that the attempt at a fair distribution does
not tend to dry up the source of national income itself.
Here the various methods of adjudication are discussed:
(a) Labour Court (Section 7) : One or more labour curt may be constituted by the
appropriate government by notification in the Official Gazette, for adjudication on industrial
DBA 1748
NOTES
disputes relating to any matter specified in the Second Schedule of the Act, and for
performing such other functions as may be assigned to them.
A labour court shall consist of one person only, to be appointed by the appropriate
government. Such a person should have been, for a period of not less than 3 years, a
district judge or an additional district judge or has held any judicial office in India for not
less than 7 years; or has been a presiding officer of a lobour court for not less than 5 years.
No person shall be appointed or continue in the office of the labour court if he is not an
independent person, or he has attained the age of 65 years.
The duties of the labour courts are (i) to hold adjudication proceedings expeditiously,
and (ii) submit the award to the appropriate government as soon as practicable on the
conclusion of the proceedings. The labour court usually deals with matters which arise in
day-to-day working.
The matters specified in the Second Schedule are:
(1) The propriety or legality an employer to pass an order under the Standing Orders;
(2) The application and interpretation of Standing Orders;
(3) Discharge or dismissal or termination of services including reinstatement of or grant
of relief to employees wrong fully dismissed;
(4) Withdrawal of any customary concession or privilege;
(5) Illegality or otherwise of a strike or lockout;
(6) All matters other than those specified in the Third Schedule which fall within the
jurisdiction of Industrial Tribunal. It shall performsuch other functions as may be
assigned to it under the Industrial Disputes Act.
The labour court has no power whatsoever except those which can be traced to
Statute, to a statutory rule or a statutory instrument. It has no supervisory jurisdiction i.e. it
cannot act as the guardian of an industrial establishment.
The jurisdiction of the labour court is very much circumscribed. It does not sit as an
appellate court to weigh the pros and cons and apply its mind to find our if a different
conclusion is possible. Its duty is to see whether the enquiry satisfies the principles of
natural justice and whether there was material for the management to act in the manner
they did and whether their act was not favour of any malpractices as victimization. In the
absence of such an indication the labour court normally approves the decision of the domestic
enquiry and grants the permission asked. But if there is no domestic enquire the proceedings
are vitiated, the labour court has the jurisdiction to undertake an inquiry, accept fresh
evidence, re-appraise the same and render a new decision there on. Commenting upon the
jurisdiction of the labour court, the Supreme Court in Anand Bazar Patrika.v. Its Employees,
held that if the termination of an industrial employees service has been preceded by a
proper domestic enquiry perverse the tribunal is not entitled to consider proprietary of the
NOTES
said conclusion. If one the other hand in terminating the service of the employee the
management has acted maliciously or vindictively or has been actuated by a desire to
punish the employee for the trade union activities, the tribunal would be entitled to give
adequate protection to the employee by ordering his reinstatement.
(D) Industrial Tribunal (section 7 A) : The appropriate government may appoint one or
more Industrial Tribunals for the adjudication of industrial disputes relating to any matter
whether specified in the Second Schedule of the Third Schedule. The matters which are in
the formof new demands and give rise to industrial disputes, which affect the working of a
company or industry, are usually referred to an industrial tribunal.
An industrial tribunal may be appointed for a limited period on an ad hoc basic or
permanently.
The matters specified in the third Schedule are:
1. Wages, including the period and mode of payment:
2. Compensatory and other allowances
3. Hours of Work and rest intervals
4. Leave with wages and holidays
5. Bones, profit sharing, provident fund and gratuity
6. Shift working otherwise than in accordance with standing orders
7. Classification of grades
8. Rules of discipline
9. Rationalization
10. Retrenchment of workmen and closure of an establishment or undertaking
11. Any other matter that may be assigned to themunder Act.
The tribunal shall consist of one person only, who shall be appointed by the appropriate
government. He should be an independent person and below the age of 65 years; he is or
has been, the judge of a High Court, or has for a period of not less than 3 years, been a
District Judge; or he has held the office of the chairman or as any other member of the
labour appellate tribunal or any tribunal, for a period of not less than 2 years, unless he is
or has been a Judge of a High Court.
The appropriate government may, if it so thinks fit, appoint two persons as assessors,
to advise the tribunal in the proceeding before it. Its duty is to hold adjudication proceedings
expeditiously, and to submit award to the appropriate government as soon as practicable,
on the conclusion of the proceedings. The award shall be in writing and shall be signed by
its presiding officer.
DBA 1748
NOTES
On reference of an industrial dispute to a tribunal, government can interfere, subject
to the provisions of the Act, on four grounds: (i) there is want of good faith; (ii) there is
victimization or unfair labour practice; (iii) the management has been guilty of violation of
principle of natural justice; or (iv) the finding is completely baseless and perverse.
The functions of the industrial tribunal are essentially quasi judicial and as such, are
subject to the overriding jurisdiction of the Supreme Court. The powers of the tribunals
are derived from the statue that creates them and they have to function within the limit
imposed thereon and to act according to its provisions.
Power of Industrial Tribunal: The tribunal is a judicial body or at least a quasi-judicial
body. Therefore, it must serve notice serve notice to the parties by name. Any award made
without serving of proper notice is basically wrong.
It is obvious from the act that tribunals are constituted when an industrial dispute
arises and normally functions as long as dispute is not settled. Whenever a new tribunal is
appointed, it is required to start hearing a fresh, specially when it is felt that any prejudice
is likely to be caused to any party. The tribunals are supposed to decide the case without
any bias.
In the Lipton Ltd. Case, the award of the Industrial Tribunal, Delhi, was confirmed by
the Labour Appellate Tribunal. However, when a similar dispute between the same company
and their workmen of madras arose, the company contended that the award of Delhi
tribunal is not binding on the employee, working in madras. The madras high court held
that Delhis tribunal decision is certainly not enforceable on the workman.
In this context, it is desirable to know, whether any objection pertaining to jurisdiction
of a tribunal, be raised before the high court or the tribunal itself. In fact, the difficulty of
jurisdiction actually arises where the question of jurisdiction is mixed up with laws and
facts. The proceedings before the tribunal, come to end if it finds that is has no jurisdiction
over it. If the tribunal finds that the matter falls well within its jurisdiction, it may take up the
case. However, the decision the tribunal can be set aside by the courts, if it is found that
tribunal has acted without jurisdiction.
(c) National Tribunal (Section 7 B): The Central Government may, by notification in
the official gazette, constitute one or more national tribunals for adjudication of industrial
disputes: (i) involving questions of national importance; or (ii) which are of such a nature
that idsutries in more than one state are likely to be interested in, or affected by such,
disputes.
It consists of one person only, who is an independent person and below 65 years of
age. He should be or has been judge of a high court or held the office of chairman or any
other member of the Labour Appellate tribunal for a period of not less than 2 years.
NOTES
The Central Government may, if it thinks fit, appoint two persons as assessors to
advise the National Tribunal Duties of a national tribunal are to hold proceedings of an
industrial disputes referred to it by the Central Government expeditiously, and to submit
the award to the referred on the conclusion thereof.
When a national tribunal has been referred to, no Labour Court or Industrial tribunal
shall have any jurisdiction to adjudicate upon such a matter
2.5 MEDIATION
Mediation is the ancient art of the peace-maker. It has been practiced in a number of
areas when people disagree. It is an ancient and honorable process for the settlement of
disputes disputes between two warring nations, disputes between litigants, disputes
between labour and management, and in general, disputes between people. It has been
most usefully employed to smooth out serious disagreements which threaten the rupture of
established relations, such as those between husbands and wives, among associates and
friends, and among partners in common endeavors.
As a formalized activity, its justification lies in the danger that the consequences of
disagreement will have an adverse effect on bystanders, whether as individuals or as a
community. Warren (a former Director of the United States Conciliation Service) has stated.
Despite the fact that other forms of settlement of labour disputes are more dramatic and
have captured the headlines more often, the process of mediation has proved successful in
reaching settlement in the great majority of those cases in which agreement had not been
reached by direct negotiation between the parties.
2.5.1 Kinds of Mediator
There are three kinds of mediators, according to Prof. Pigou, namely
(i) The eminent outsider;
(ii) The non-governmental board; and
(iii) The board connected with some part of the government systemof the country.
Theses are not mutually incompatible but can be advantageously used to supplement
one another. For a certain class of disputes, the eminent outsider cannot be dispensed
with, provided that his services are available as and when needed. The non-governmental
board has the advantage over the eminent outsider that, on being constituted as an ad hoc
body, it is more readily brought into play and has a better chance of making its voice heard
in that breathing space before a strike or lockout actually beings. There are various
advantages inaccessible to non-governmental boards but which are readily available to the
boards attached with governmental machinery of the country, because:
DBA 1748
NOTES
(i) They Possess exceptional facilities for ascertaining the existence of difference at
the earliest possible moment through administrative officers;
(ii) They are endowed with greater intellectual and financial resources and can use
themmore liberally ; and
(iii) When mediators are sent out, they are likely to wield a modicumof power which
may enable them to work well.
Different types of these mediators are valuable in their own spheres. But they are
sometimes dangerous. The development of a pace-promoting machinery within separate
industries may be checked by the actions of the intervening body.
2.6 CONCILIATION
Conciliation is the most important method for the prevention and settlement of industrial
disputes through third party intervention. It is an attempt to reconcile the views of the
disputants and bring them to an agreement. Conciliation is generally understood as the
friendly intervention of a neutral person in a dispute to help the parties to settle their
differences peacefully.
Conciliation may be described as the practice by which the services of a neutral third
party are used in a dispute as a means of helping the disputing parties to reduce the extent
of their differences and to arrive at an amicable settlement or agreed solution. It is a process
of rational and orderly discussion of difference between the parties to a dispute under the
guidance of a conciliator.
It is a process by which representatives of workers and employers are brought together
before a third person or a group of persons with a view to persuading themto arrive at an
agreement by mutual discussion between them.
As a process of peace-making in industrial relations, conciliation tends to bring about
a speedy settlement of disputes without resort to strikes or lockouts, and to hasten the
termination of work-stoppages when these have accrued. Its function is to assist the parties
to move towards a mutually acceptable compromise or solution. For this purpose , the
conciliator relies on reasoning and persuasion.
The conciliator is a neutral party who, without using force, seeks to find some middle
course for mutual agreement between the disputants so that the deadlock us brought to an
end at the earliest possible moment and normal peace restored. He tries to bridge the gulf
between the two contending parties; and if he does not succeed, he at least tries to reduce
the differences, as far as possible, by tendering advice to the parties and bring themclose
to a settlement. Thus m he is a mere go between; the catalytic agent who creates an
opportunity for the parties to meet face to face- to - resolve their difference amicably.
His duty is not to suggest solutions for the dispute, but to make suggestion for alternative
solutions. He tries to persuade the parties to have a fresh viewpoint and different outlook.
NOTES
He supposed to act as a catalyst to the process of reaching an agreement. The element of
compromise, of give and take is still present. He persuades rather than orders or forces
the party to accept his viewpoint. He never gives his judgment on the issues. The conciliator
substitutes his judgment for that of the parties with regard to the desirable terms of settlement.
He may suggest possible lines of solution, or himself purpose terms of settlement if such a
course is in accordance with national practice; but it is for the parties to accept or not to
accept his suggestion or proposals; he cannot impose terms of settlement upon them.
A unique and essential characteristic of the conciliation process is its flexibility,
informality and simplicity which sets it apart fromother methods of settling industrial disputes.
A conciliator generally does not follow the same procedure in every case; he adjusts his
approaches, strategy and techniques to the circumstances of each dispute. Probably for
this reason in has sometimes been said that, conciliation is an art and the conciliator is a
solitary artist recognizing, at most, a few guiding stars and depending mainly on his personal
power of divination.
2.6.1 Qualities of Conciliator
There are certain basic characteristics which are essential to the work of conciliation.
A conciliator must have these if he is to win the trust and confidence of the parties.
(i) Independence and impartiality are the two attributes which every conciliator should
possess. It is essential that he should not only possess these qualities but be also
seen to possess them. He must be above suspicion; and both parties must have
confidence in his integrity and neutrality. He should be independent enough not to
be swayed or influenced by others. He should be able to resist undue pressures of
persuasion frompowerful employees or unions.
(ii) Since conciliation, in certain cases, involves arduous work, a conciliator should be
physically and psychologically fit for the rigours of his task. He must have a strong
and deeply held conviction of importance and usefulness of conciliation. It has
been noted that conviction is an expression of one of the highest virtues which
can be praised the desire to understand and be just to one another. Each time that
one attempts to the resolve a conflict without force, one renders to men an enormous
service and lead themalong the path of wisdomand of respect for themselves and
for each other.
(iii) A conciliator should never allow conciliation proceedings before himto constitute
a mere formality or a step on the road to arbitration. He must be able to offer to
the parties inducements that will persuade them to prefer a settlement with his
assistance, and to make serious efforts to reach an agreement.
(iv) Because of the nature of his work, a conciliator must have the ability to get along
well with people. He must be, to a certain extent, a specialist in human relations, in
the relations between the parties when they come face-to-face, and in his own
relations with them. He must be honest, polite, tactful, self-confident, even-tempered
and patient in trying to achieve results. He should have powers of persuasion,
DBA 1748
NOTES
including a good command of language and a facility for expression, and should be
able to communicate with the parties in the language they understand.
(v) Since a conciliator has to deal with different persons and has to preside over their
meetings in conciliation proceedings, he does not only have to have tact and ability
to guide and control their joint discussions, but must also give an impression of
responsibility, clear-headedness and mature judgment. He must be able to show
others that he possesses enough common sense and practical mindedness.
(vi) A conciliator should have a friendly personality, a sense of humour, and have a gift
for relieving tensions at joint discussion. A nimbleness of mind will enable himto
grasp quickly and analyze rapidly the main elements of controversy.
(vii)A conciliator should be well acquainted with law and regulations concerning industrial
relations and the settlement of industrial disputes. He should be familiar with the
industrial relations system, e.g., the development and structure of trade union and
employers associations; the development and structure of trade union and
procedures and practices; the operation of agreed negotiation bodies set up by
the parties; the main causes and patterns of disputes; knowledge of human resource
management, functioning of trade unions within undertakings grievance and
disciplinary procedures and joint consultancy machinery.
(viii)He should be well-trained in different aspect of the management process. He
should have some knowledge of products and services, the production methods,
practices, etc. knowledge about wage rates and other financial matters, incentive
schemes; and an understanding of traditional outlooks and cultural peculiarities,
and of the way in which they after labour relations.
(ix) He must have the ability and versatility to form judgments. He should, therefore,
acquire knowledge from personal experience and observation; besides getting
knowledge of social sciences, psychology, social institutions, group behavior and
cultural changes.
2.6.2 Role of the Conciliator
The role of a conciliator may be discussed under following heads:
(a) As a Discussion Leader
As a discussion leader, the conciliator reduces irrationality and antagonismbetween
the parties. He guides themtowards a problem-solving approach to their dispute; he ensures
that they discuss their difference in as friendly a manner as possible he helps them to
analyze their problemalways striving to keep the analysis on a rational plane; he identifies
the elements of the problem, both for the parties, benefit and for his own
(b) As a Safety Valve
The conciliator places himin the position of an alternative target when he feels that the
parties are in an aggressive mood. By setting a substitute target, the parties can achieve an
emotional release without direct and immediate damage to the negotiations.
NOTES
(c) As a Communication Link
The conciliator fulfils an important function as a communication link between the parties:
serving as a communication link may either constitute his main conciliatory effort or be a
contribution to it. He not only works as a conduit through which messages are relayed
fromone side to the other, but he also provides a through explanation and interprets the
intentions of either party.
(d) As an Innovator
The conciliator acts as an invaluable source of new information and new thoughts,
particularly in providing the parties with different views of the issues, with possible alternative
solutions and possibly an entirely new approach.
(e) As a Sounding Board
He is often described as a flying ambulance squad appearing whenever or wherever
a collision or conflict, which threatens to disturb harmonious relations, occurs or is
apprehended to occur between the interests of the parties. He may indicate the parties
which of their own arguments, defenses and supports cannot stand under a rational searching
enquiry.
(f) As a Protector
The conciliator plays a protecting role, for he readies the parties for collective bargaining
positions by exploring alternative solutions during separate meetings.
(g) As a Fail-Safe Device
The conciliator often assists a party which has overstated its position to the extent of
bluff or exaggeration of its reaction to some move on the part of the other, or taken a
clearly untenable stance to withdraw gracefully under the banner of reason.
(h) As a Stimulator
Sensing the need for positive action, the conciliator can provide the necessary impulse
to a settlement; he makes a concise statement, supplies some data, gives a hint or suggestion.
He moment and giving such ideas a concrete form.
(i) As an Adviser
The conciliator tires to remove misunderstandings regarding the others positions and
capabilities. He tries to see that misinterpretations do not occur and that each side thoroughly
understands the others point of view obtains a picture of the opponents strength and
realizes
(j) As a Face Saver
The conciliator often functions as a face saver. When a party knows at the outset or
realizes during the course of proceedings that it has a week case and can hope for title
DBA 1748
NOTES
success in pursuing the dispute. The people concerned are often reluctant to admit defeat,
because they feel that this will involve themin a loss of face, or prestige, with their members
or with the public. In such situations, the conciliator may devise a form of announcing
settlement, which apparently makes some small concession to party concerned but which
in reality gives it little or nothing.
As a Promoter of Collective Bargaining
While intervening in a dispute, he not only concerned with promoting a settlement,
but often assists in collective bargaining and guides the parties in the development of their
relationship.
Thus, a conciliator has to play a wide variety of roles. When a strike or lock-out is
threatened, it is his duty to advise the party concerned on the legality of the proposed
action and to use all his powers of persuasion so that the action may be postponed while
conciliation is going on. He makes efforts to persuade the parties against violent or disorderly
behaviour in carrying out the proposed action which might lead to bitterness. He also tries
to bring the parties together to the negotiating table before the factory is shut down or any
damage to equipment or property is done. And he ensures that work is immediately resumed
when the strike or lockout is terminated.
2.6.3 Sequential Pattern of Conciliation
The process of conciliation generally follows a sequence consisting of three major
phases:
(i) The Hard Posture Phase: The parties come to conciliation as adversaries in an
openly declared dispute. They come with hardened attitudes, which may be
indicated in many ways inflexibility, adamant defense of position, efforts to
discredit the other side, out-of-hand rejection of opposing views. During this phase,
each party invariably takes the stand that is wholly right and the other side wholly
unreasonable or wrong; neither party can see or will admit any merit in any argument
or proposition put forward by the other side. There may not only be antagonismin
any argument or proposition put forward by the other side. There may not only be
antagonismbut open hostility between the parties. Instead of verbal assaults or
expressive gestures, there may be coolness or stiffness in one partys attitude to
the other. During this phase, the conciliator acquires information of the parties
position and of the gap which separates them; and on that basis, he begins his
efforts.
(ii) Search for Accommodation: In this phase, each party is primarily concerned
with protecting its own bargaining position. Neither party normally takes the initiative
in adopting an accommodation attitude. The conciliators objective is to induce
them to adopt a more flexible attitude and to move closer towards each other.
Here, he is concerned with preventing the discussion from developing into a
stalemate which will spell the failure for his efforts.
NOTES
(iii) Emergence of Appropriate Mood for Settlement of Compromise: During
this phase, the conciliator prods, encourages, and assists the parties to make
modified proposals and counter-proposals. The symptoms, which might indicate
the areas of agreement within reach, are the acknowledgement, by one side that it
understands the views expressed by the opposite side. A friendlier tone may be
there, i.e. there might be a direct exchange of comments, which was formerly
entirely absent; or a partial or fragmentary acceptance of the proposal
Conciliation is an art, which includes the art of listening, the art of asking question, the
art of timing, and the art of persuasion. To use this art, various techniques are employed.
These techniques are as varied as the personalities of conciliators. As such many conciliators
rely upon a strength forward approach to the parties; others prefer to work in a subtle and
calculated manner. There may be conciliators who may be forcefully active in taking initiatives;
and others who play a relatively passive or less aggressive role.
The techniques most frequently used are:
(i) Listening attentively to the parties so that information/facts be gathered;
(ii) Asking questions to obtain information;
(iii) Persuading the parties to overcome their differences and agree upon a compromise
by bringing reason and objectivity to bear on the discussion; by winning their
confidence through such qualities as impartiality, trustworthiness and expertise;
and by inducing either party to abandon a position, or by convincing a party to
accept a certain point of view, suggestions or proposal, or to agree to proposed
terms of settlement,
In any dispute, the parties are usually subjected to a multiple reaction of different
pressures some of which are inherent in industrial, disputes; others are created by the
conciliator himself. Such pressures are:
(a) Personal
(b) Social and political
(c) Economic
(a) Personal pressure from the conciliator:
It is based on his personal relationship with the parties. Personal relationship and
pressures are generally considered the mainstay of conciliation statement of facts to a
detailed reasoning and exposition; from appeal to reason to coaxing, wheedling, flattery,
cajolery, and ,at times, criticism, fromholding a short meeting to keeping the negotiation in
continuous sessions.
(b) Social and political pressure:
This includes the opinions of outsiders whose views are important, and environmental
influences. The parties to a dispute may be influenced by the views of other employers or
trade unions, or of employers organizations. Public opinion tends to be important in disputes
DBA 1748
NOTES
effecting the supply of essential goods and services to the community. In some situations
such as national emergencies, or when inflation running wild, there is a greater public concern
over the way disputes are settled and wage claims dealt with.
(c) Economic pressure:
This relates to market conditions and the parties bargaining strength. This is the pressure
which parties themselves seek to exert on each other. Pressure for a particular type of
settlement will be generated by the factual situation rise in living costs, wage increases
granted by comparable firms, wages rates paid by competitors, comparative productivity
levels. Economic pressure is more generally associated with the resort to a strike or lockout.
2.7 ARBITRATION
2.7.1 Concept
Arbitration is a means of securing an award on a conflict issue by reference to a third
party. It is process in which a dispute is submitted to an impartial outsider who makes a
decision which is usually binding on both the parties. It is a process where there is a hearing
and a determination of a cause between parties in controversy by a person or persons
chosen by them, or appointed under a statutory provision. The parties submit their disputes/
issues and are bound by the award of an arbitrator in relation to the matter which is in
dispute between them.
Arbitration is to be distinguished fromconciliation not only by the fact that its decision
is binding on the parties but also by its different approach and spirit.
1
The main objective
of arbitration is adjudication and, hence, there is no place for compromise in awards though
the parties are at liberty to do so. While the conciliator has to reconcile the recommendations
of the parties, sometimes against his own discretion, as long as he brings about an agreement
between the contending parties, the arbitrator enforces his own point of view on the
contending parties and the opinions of the disputants are not given any predominance.
Moreover, arbitration is more judicial in character than conciliation.
Arbitration is also to be distinguished frommediation. Arbitration is a judicial process,
while mediation has a legislative tinge. The award of the arbitrator rests on equity and
justice, i.e., there is no scope for compromise, while compromise is the very essence of
mediation. The arbitrators award is binding while that of the mediator is not. Arbitration
often leads to the termination of the dispute, but mediator may or may not bring about this
termination. Arbitration is best suited for the settlement of contractual rights, whereas
mediation is suited to the adjustment of disputes over interests.
(i) Approaches to Arbitration
(ii) Arguments for and Advantages of Arbitration
(iii) Evils of Arbitration
NOTES
2.7.2 Types of Arbitration
Arbitration may be voluntary or compulsory.
Voluntary arbitration implies that the two contending parties, unable to compose their
differences by themselves or with the help of the mediator or conciliator, agree to submit
the conflict/dispute to an impartial authority, whose decision they are ready to accept. In
other works, under voluntary arbitration, the parties to the dispute can and do themselves
refer voluntarily any dispute to arbitration before it is referred for adjudication. This type of
reference is known as a voluntary reference, for the parties themselves volunteer to
come to a settlement through arbitration machinery.
The essential elements in voluntary arbitration are:
The voluntary submission of dispute to an arbitrator
The subsequent attendance of witnesses and investigations;
The enforcement of an award may not be necessary and binding because there is no
compulsion. But, generally, the acceptance of arbitration implies the acceptance of its
award-be it favorable or unfavorable; and
Voluntary arbitration may be specially needed for disputes arising under agreements.
Compulsory arbitration, on the other hand, is one where the parties are required to
accept arbitration without any willingness on their part. When one of the parties to an
industrial dispute feels aggrieved by an act of the other, it may apply to the appropriate
government to refer the dispute to adjudication machinery. Such reference of a dispute is
known as compulsory or involuntary reference, because reference in such circumstances
does not depend on the sweet will of both the contending parties or any party to the
dispute. It is entirely the discretion of the appropriate government based on the question of
existing dispute, or on the apprehension that an industrial dispute will emerge in a particular
establishment.
Under compulsory arbitration, the parties are forced to arbitration by the state when:
(i) The parties fail to arrive at a settlement by a voluntary method; or
(ii) When there is a national emergency which requires that the wheels of production
should not be obstructed by frequent work-stoppages; or
(iii) The country is passing through grave economic crisis; or
(iv) There is a grave public dissatisfaction with the existing industrial relations; or
(v) Industries of strategic importance are involved; or
(vi) Parties are ill balanced, i.e., where the unions are weak, ill-organised, and powerless
and the means of production are in the hands of the capitalists who are well-
organised and powerful; or
DBA 1748
NOTES
(vii)Public interest and the working conditions have to be safeguarded and regulated
by the state.
Compulsory arbitration leaves no scope for strikes and lockouts; it deprives both the
parties of their very important and fundamental rights.
The government considers whether an industrial dispute exists or is apprehended in
an industrial establishment; and if it is satisfied, it may, at any time, by an order in writing,
refer the dispute to a Board of Conciliation or a Court of Inquiry, or a labour court or a
tribunal. The dispute is said to be referred at any time when it commences with the issue of
demand notice or with any legal steps by which the proceedings are instituted for making
a reference and terminates with an order of the appropriate government in writing. Sometimes
the government may make a reference for any valid reason.
Where any industrial dispute exists or is apprehended and the management and workers
agree, under a written agreement, to refer the dispute to arbitration, they may do so. Since
the parties to the agreement are the trade union and the employer, either of them would
ordinarily be responsible for initiating proceedings to settle differences through arbitration.
Where arbitration is voluntary, only the issues that have been agreed upon by the parties as
arbitrable can be submitted to arbitration under the agreement. Conceivably the parties
might agree to a coverage so broad as to embrace any and all disputes between the
parties. The agreement may specify questions that shall not be subject to arbitration (such
as certain management prerogatives); or it may otherwise limit the scope of the arbitrators
authority. The arbitrator, then, shall have no power to add to, subtract from, alter or otherwise
change or modify the terms and conditions of agreement.
2.8 REFERENCE OF DISPUTE TO ARBITRATION UNDER INDUSTRIAL
DISPUTES ACT, 1947
Under the Industrial Disputes Act, 1947, a dispute may be referred to arbitration
under the following conditions:
(a) An industrial dispute exists or is apprehended in an establishment;
(b) The employer and the workers agree, in writing, to refer the dispute to arbitration;
(c) The arbitration agreement is in the prescribed formand signed by the parties to it
in the prescribed manner;
(d) The agreement must be accompanied by the consent, in writing, of the arbitrator
or arbitrators;
(e) The dispute must be referred to arbitration at any time before it has been referred
to a labour court or tribunal or a national tribunal;
(f) The reference must be to the person or persons specified in the arbitration agreement
to act as arbitrator/arbitrators;
NOTES
(g) The arbitration agreement must set forth the issue/issues to be decided by the
arbitration procedure and a copy of the agreement is forwarded to the government
and the conciliation officer.
2.8.1 Qualification of Arbitrators
If arbitration is to be successful, the arbitrators must have the qualifications to ensure
that the parties entrust themwith the responsibilities for making decisions on the questions
at issue. They should have the following qualifications;
(i) an understanding of the complexities of the labour-management relationship;
(ii) a knowledge of collective bargaining and the operation of arbitration procedures,
as well as skill and experience in the interpretation of collective agreements; and
familiarity with personnel policies, industrial discipline and human relations;
(iii) high integrity, that is, they should be non-partisan persons with a deep sense of
impartiality, which requires that they should be free fromany commitment to, or
prejudice in favour of, one side or the other;
(iv) they must be committed to the maintenance of harmonious labour management
relations and have a strong belief in the importance of successful arbitration;
(v) They must be acceptable to the parties.
2.8.2 Procedure for Investigation
After the dispute has been referred to the arbitrator, he will hear both the parties.
Hearing involves mastery of the facts of a particular dispute as well as the relevant provisions
of the collective agreement and of the past practices of the parties in relation to matters
relevant to the dispute. An investigation of the facts and circumstances of the dispute is of
great importance. The investigation should aimat ascertaining who and what are involved
in the dispute. The arbitrator may call witnesses, get evidence and relevant records and
documents, current and the past agreements; ordinances, court decisions, statutes (bearing
on the case) and arbitration decisions by other arbitrators in similar cases, that may suggest
a line of reasoning. When an important witness is unable to attend, sworn affidavit is often
used.
After the collection of facts and supporting materials, arguments take place. Certain
principles are followed by an arbitrator while dealing with a particular dispute, namely:
(i) Fair hearing, which demands that an opportunity should be given to both the parties
to be heard and cross-examined.
(ii) Principle of natural justice requires that a party should have due notice of
proceedings, and it must know what are the issues involved and what part it has to
play.
(iii) The party should be free to give any evidence which is relevant to the enquiry and
on which it relies for its arguments. The evidence given by one party should be
taken in the presence of the other party so that the other party may rebut and
place counter evidence, if necessary.
DBA 1748
NOTES
(iv) The arbitrator should not rely on any document which is not shown and explained
to the other party and to which a reply has not been received. He has to be
completely impartial without any bias or prejudice against anybody.
2.8.3 Submission of Award
The arbitrator, after investigating the dispute, has to submit his award to the government.
The award will have the same legal force as the judgment of a labour court or tribunal. The
award must be signed by the arbitrator.
While writing his award, the arbitrator has to ensure that:
(i) The award is in line with the terms of reference and that it does not go beyond its
jurisdiction;
(ii) It must be precise and definite, that is, it must be clear, unambiguous and without
any, vagueness, and that it is not in any way capable of being misunderstood or
misinterpreted;
(iii) It should be capable of being enforced or implemented; in other words, it should
not contain directives or provision which apparently seem impossible of
enforcement;
(iv) The award should contain a date or a specific period for its implementation;
(v) The award should not violate any provision of any existing law or settlement legally
arrived at, or one which is binding on parties;
(vi) The award should contain sufficient justification or reasons for the settlement arrived
at by the arbitrator.
2.8.4 Criticism of Compulsory Arbitration
The system of compulsory arbitration has been tried in Australia, New Zealand and
America; but, in the last country, it has now been inoperative because of severe opposition
by workers, who consider compulsory arbitration equivalent to involuntary servitude and
denial of civil liberty and loss of personnel freedom.
The American labour movement is opposed to compulsory arbitration because;
(i) Resort to compulsory arbitration promotes and prolongs industrial disputes;
(ii) Compulsory arbitration undermines self-government in industry, i.e it hampers the
development of industrial democracy;
(iii) It takes away from the employers and unions the responsibility of working out
their mutual problems and transfers it to government-created tribunals;
(iv) It kills collective bargaining and replaces it with litigation; it allows the parties to
avoid unpleasant confrontation of their difficulties, creating a dependency upon
public authority;
(v) By requiring even an air of compulsory labour, it subjects workers to involuntary
servitude;
NOTES
(vi) It exposes workers to arbitrary restraints and penalties before trail and correction;
(vii)It denies the working people the right to protect themselves and resist a wrong,
and to strive peacefully for improvement in their conditions;
(viii)Decisions handed down through arbitration might be coloured by political
expediency. Thus, both employers and the unions would become deeply involved
in political pressures and efforts to win favors;
(ix) It means loss of personal freedom, loss of mobility, loss of power of initiative, loss
of hope and aspiration for self-betterment;
(x) The prohibition of strikes is not readily enforceable; lower productive efficiency,
and shuts of all productive possibilities.
2.8.5 National Arbitration Promotion Board
To make voluntary arbitration more acceptable to the parties and to co-ordinate
efforts for its promotion, the government appointed, in July 1967, a National Arbitration
Promotion Board with a tripartite composition. The functions of the Board are:
(i) to review the position periodically;
(ii) to examine the factors inhibiting a wider acceptance of this procedure and suggest
measures to make it more popular;
(iii) to compile and maintain up-to-date panels of suitable arbitrators for different areas
and industries and to lay down their fees;
(iv) to evolve principles, norms and procedures for the guidance of the arbitrator and
the parties;
(v) to advise parties, in important cases, to accept arbitration for resolving disputes so
that litigation in courts may be avoided;
(vi) to look into the cause or causes of delay and expedite arbitration proceedings,
wherever necessary;
(vii)to specify, fromtime to time, the types of disputes which would normally be settled
by arbitration in tripartite decisions.
2.9 ADJUDICATION
Adjudication involves intervention in the dispute by a third party appointed by the
government for the purpose of deciding the nature of final settlement.
2.9.1 Types of Adjudication
When the government gets a report of the failure of conciliation proceedings, it has to
decide whether it would be appropriate to refer the dispute to arbitration. The reference of
dispute to adjudicating is at the discretion of the government
When both parties, at their own accord, agree to refer the dispute to adjudication, it
is obligatory on the part of the government to make a reference. When a reference to
adjudication is made by the parties, it is called Voluntary Adjudication.
DBA 1748
NOTES
On the other hand, when reference is made to adjudication by the government without
the consent of either or both the parties to the dispute, it is known as Compulsory
Adjudication.
Three-Tier System of Adjudication
The Industrial Disputes Act, 1947 provides for a three-tier system of adjudication
(1) Labour Courts;
(2) Industrial Tribunals; and
(3) National Tribunals.
These are the adjudication bodies which decide the disputes refereed to themby the
appropriate government and pass their awards.
The Labour Courts adjudicate upon disputes listed in Schedule II of the Act.
The Industrial Tribunals adjudicate upon disputes which are of national importance,
or when the dispute is of such a nature as to effect industrial establishment situated in more
than one state.
LABOUR COURTS
One or more labour courts may be constituted by the appropriate government for
adjudicating on industrial disputes relating to any matter specified in the second schedule
to the Act, and for performing such other functions as may be assigned to them.
Constitution
A labour court shall consist of one person only, who:
(a) Is or has been a judge of a High Court; or
(b) Has been, for a period of not less than 3 years, a District Judge; or
(c) Has held any judicial office in India for not less than 7 years.
No person shall be appointed or continue in the office of the labour curt if he is not an
independent person, or if he has attained the age of 65.
The duties of the labour court are:
(i) To hold adjudication proceeding expeditiously; and
(ii) Submit its award to the appropriate government as soon as practicable on the
conclusion of the proceedings.
The labour court usually deals with matters which arise out of the day-to-day working
of an undertaking.
NOTES
Jurisdiction
The jurisdiction of labour courts extends to the adjudication of the following disputes
relating to matters specified in the Second Schedule:
(1) The propriety or legality of an order passed by an employer under the Standing
Orders.
(2) The application and interpretation of Standing Orders.
(3) Discharge or dismissal or workers, including reinstatement of, or grant of relief to,
workers wrongfully dismissed.
(4) Withdrawal of any customary concession or privilege.
(5) Illegality or otherwise of a strike or lockout.
(6) All maters other than those specified in the Third Schedule of the Act (i.e., those
matters which are within the jurisdiction of industrial tribunals).
The labour court has no power whatever except those powers which can be traced
to a Statue, to a statutory rule or a statutory instrument. It has no supervisory jurisdiction,
i.e., it cannot act as a guardian of an industrial establishment.
Further, though the labour court does not have jurisdiction over the matters specified
in the Third Schedule, where the dispute relates to any matter specified in the Third Schedule
and is not likely to effect more than 100 workers, the appropriate government may, if it
thinks fit, refer the dispute to a labour court.
The jurisdiction of the labour court is circumscribed. It does not sit as an Appellate
Court to weigh the pros and cons and apply its mind to find out if a different conclusion is
possible. Its duty is to see whether the enquiry satisfies the principles of natural justice;
whether there was material for the managements to act in the manner they did and whether
their act was savoured of any malpractice or victimization. In the absence of such an
indication ex facie in the proceedings of the enquiry officer, the labour court is normally
expected to approve the decision of the domestic enquiry and grant the permission asked
for.
Only in cases where there was no domestic enquiry or the proceedings at the domestic
enquiry were in any way vitiated would the labour court have jurisdiction to undertake a
re-enquiry accept fresh evidence, re-appraise the same and render a new decision thereon.
2.10 INDUSTRIAL TRIBUNALS
The appropriate government may appoint one or more industry tribunals for the
adjudication of industrial disputes relating to any matter, whether specified in the Second
Scheduler or the Third Schedule. The matters which are in the formof new demands and
give rise to industrial disputes which affect the working of a company or industry are
usually refereed to an industrial tribunal. The industrial tribunal may be appointed for a
limited period on an ad hoc basis or permanently.
DBA 1748
NOTES
2.10.1 Constitution
A tribunal shall consist of one or more persons, such as
(a) Are or have been judge(s) of High Court
(b) Are or have been District Judge(s) for a period of not less than 3 years;
(c) Hold or have held the office of the chairman or any other member of labour
appellate tribunal or any tribunal for a period of not less than 2 years.
The government may, if it thinks fit, also appoint two persons as assessors to advise
the tribunal in the proceedings before it.
The functions and duties of the industrial tribunal are very similar to those of a body
discharging judicial functions. Although it is not a court, it has all the necessary attributes of
a court of justice. It may create new obligations or modify contracts in the interest of
industrial peace; protect legitimate trade union activities and prevent unfair practices and
victimization. The tribunals are required to give awards based on circumstances peculiar to
each dispute; and they are, to a large extent, free fromrestrictions of technical consideration
or rules oe evidence imposed on courts.
2.10.2 Jurisdiction
An industrial tribunal has a wider jurisdiction than labour courts. It has jurisdiction
over any matter specified in the Second Schedule or Third Schedule. The jurisdiction
covers the promoting of social justice, that is, fairness in the adjudication proceedings to all
concerned parties.
The matters specified in the Third Schedule are:
(1) Wages, including the period and mode of payment
(2) Compensatory and other allowances
(3) Hours of work and rest intervals.
(4) Leave with wages and holidays.
(5) Bonus, profit-sharing, provident fund and gratuity.
(6) Shift working, otherwise than in accordance with the standing orders.
(7) Classification of grades.
(8) Rules of discipline.
(9) Rationalization
(10)Retrenchment of workman and closure of an establishment
(11)Any other matter than may be prescribed.
The industrial tribunal has to hold judicial proceedings expeditiously and submit its
award to the appropriate government as soon as practicable on the conclusion of the
proceedings.
NOTES
In the country there are twelve Central Government Industrial Tribunals-cum-Labour
Courts, two of each of which are located at Dhanbad and Bombay and one each at
Asansol, Calcutta, Jabalpur, New Delhi, Jipur, Chandigarh, Kanpur and Bangalore. The
Industrial Tribunals and Labour Courts are set up by the State Government and U.T
administration are also utilized by the Central Government for the adjudication of disputes,
if the need arises.
2.10.3 National Tribunals
The Central Government may, by Notification in the Official Gazette, constitute one
or more national tribunals for the adjudication of industrial disputes which, in the opinion of
the Central Government, involve questions of national importance or are of such nature
that industrial establishment situated in more than one state are likely to be interested in, or
affected by, such disputes.
Constitution
A national tribunal shall consist of one person only to be appointed by the Central
Government, who: (a) is or has been a judge of a High Court or (b) has held the office of
the Chairman or any other member of the Labour Appellate Tribunal for a period of not
less than 2 years.
If the Central Government thinks fit, it may appoint two persons as assessors to
advise the national tribunal on the proceedings before it.
2.11 MODEL PRINCIPLES FOR REFERENCE OF DISPUTES TO
ADJUDICATION
The Indian Labour Conference (held in Madras in July 1959) evolved a set of model
principles for reference of disputes to adjudication, according to which the central industrial
relations machinery is to take these principles into consideration before recommending
adjudication, and the government it required to consider them before referring to
adjudication. These principles were:
(1) All Duties ordinarily be refereed to adjudication on request.
(2) Disputes may, not, however, be ordinarily referred to adjudication:
(a) Unless efforts at conciliation have failed and there us no further scope for conciliation
and the parties are not agreeable to arbitration;
(b) If there is a strike or lockout declared illegal by a court, or a strike or lockout
resorted to without seeking settlement by means provided by law and without
proper notice or in breach of the Code of Discipline as determined by the machinery
set up for the purpose, unless such a strike or lockout, as the case may be, is
called off;
DBA 1748
NOTES
(c) If the issues involved are such as have been the subject matter of recent judicial
decisions or in respect of which an unduly long time has elapsed since the origin of
the cause of action; and
(d) If, in respect of demands, other legal remedies are available, that is, matters covered
by the Factories Act, Workmens Compensation Act, payment of wages Act, etc:
(3) Industrial disputes raised in regard to individual cases, that is, cases of dismissal,
discharge or any other action of management on disciplinary grounds, may be
referred for adjudication when the legality or propriety of such action is questioned,
and in particular:
Whenever an industrial dispute exists, or even where there is a mere apprehension
that it will arise, the government may make a reference of the dispute for adjudication.
2.12 COMMENCEMENT AND CONCLUSION OF PROCEEDINGS
The proceeding before a labour court, tribunal or national tribunal is deemed to have
commenced on the date of the reference of the dispute for adjudication.
The proceedings before the labour court, tribunal or national tribunal are deemed to
have concluded on the date on which the award becomes enforceable.
The Act provides that any information obtained by the labour court, tribunal or national
tribunal is not to be included in nay report or award.
(i) in the course of any investigation or enquiry as to a trade union or as to any other
individual business:
(ii) if such information is not available otherwise than through evidence before such
officer or court or tribunal.
(iii) If the trade union, person, firm or company in question has made a request in
writing to the authority concerned that such information shall be treated as
confidential.
Neither the authority nor any person present at or concerned in the proceedings is
allowed to disclose any information, or contents of any document claimed to be confidential,
without the consent in writing of the secretary of the trade union or other person, firmor
company , as the case may be.
2.13 CENTRAL INDUSTRIAL RELATIONS MACHINERY IN INDIA
The Central Industrial Relations Machinery was set up in 1945, with the Chief Labour
Commissioner as Head of the Department. The purpose was to give effect to the various
provision of the Industrial Disputes Act for the prevention, investigation and settlement of
disputes in the industries in the Central sphere and the enforcement of awards, settlement
of other labour laws of which the responsibility is vested in the Central Government. The
specific functions of C.I.R.M are as under.
NOTES
(1) Prevention and settlement of industrial disputes in industries located in the central
sphere (for which the Central Government is appropriate government under the
Industrial Disputes Act, 1947)
(2) Enforcement of labour laws in industries and establishments located in the central
sphere ((for which the Central Government is appropriate government under
the relevant labour laws).
(3) Verification of Membership of trade unions in nationalized banks for identification
of the representative union to facilitate the appointment of workers director on the
board of directors.
(4) ad hoc verification of membership of trade unions in major prots.
(5) Verification of membership of registered trade unions affiliated to the Central
Trade Union Organisations (CTUOs) to determine the strength of CTUOs for the
purpose of giving representation to CTUOs on national and international force.
(6) Enforcement of awards and settlements.
(7) Conduct of enquiries into the breaches of code of discipline.
(8) Promotion of Works Committees and workers participation in management
(9) Collection of statistical information in the central sphere pertaining to industrial
disputes, work stoppages ages, labour situation and labour regulation.
(10)Defence of Court cases and writ petitions arising out of implementation of labour
laws
The C.I.R.M is located at Delhi, headed by the Chief Labour Commissioner (Central)
(C/L/C (C)). He is assisted by 31 officers who performline and staff functions. In the field
set-up, C.L.C had 18 (RLC), 70 Assistant Labour Commissioners and 160 Labour
Enforcement Officers. So it can be said that C.I.R.M. is well spread in different parts of
country with zonal, regional and unit level formation as depicted in the organ gram.
The central machinery operates in 18 regions each headed by Regional Commissioner
with headquarters at Ajmer, Ahmedabad, Asansol, Bombay , Bangalore, Bhubaneshwar,
Chandigarh, Calcutta, Cochin, Dhanbad, Guwahati, Hyderabad, jabalpur, Kanpur, Madras,
New Delhi, Nagpur and Patna.
The central machinery also includes Courts of Enquiry, labour courts, Indistrial and
National tribunal and the State Arbitration Board.
The CIRM with a view to check the exploitation of unorganized workers undertakes
inspection of the establishments with specific reference to enforcement of labour laws.
DBA 1748
NOTES
Industrial Disputes A Statiscal Report
( P ) = Provisional
N.B.: Only those work stoppages which are on account of industrial disputes and which
involves 10 or more workers, whether directly and /or indirectly are included in the statistics
of Industrial disputes.
1) What constitutes an Industrial Dispute ?
2) What is Mediation? Who are the different kinds of mediator?
3) List the qualities necessary for a Conciliator
4) What are the different facets / role played by a conciliator ?
5) Explain the sequential pattern of Conciliation
6) Explain the TWO different types of Arbitration
7) List a few of the instances where a dispute can be referred to arbitration under the
ID Act of 1947
8) What is National Arbitration Promotion Board ?
9) Explain the THREE-TIER systemof Adjudication
10) Explain the role played by the Central Industrial Relations Machinery in India
Item
Description
2002 2003 2004 2005 2006 (P)
No. of Strikes 295 255 236 227 246
No. of
Workers
Involved
900,386 1,010,976 1,903,054 2,722,784 1,701,891
No. of
Mandays lost
9,664,537 3,205,950 4,828,737 10,800,686 5,581,705
No. of
Lockouts
284 297 241 229 214
No. of
Workers
Involved
179,048 804,969 169,167 190,817 107,533
No. of
Mandays lost
16,921,382 2,70,49,961 19,037,630 18,864,313 16,592,163

NOTES
UNIT III
LABOUR WELFARE
Learning Objectives
Concept of Labour welfare
Welfare Measures voluntary & non-voluntary
Statutory welfare measures
Welfare Funds
Workers Education
Training Schemes
3.1 INTRODUCTION
Industrial progress of country depends on its committed labour force. In this regard
the importance of labour welfare was recognized as early as 1931, when the Royal
Commission on Labour stated that the benefits which go under this nomenclature are of
great importance to the worker who is unable to secure by himself. The schemes of labour
welfare may be regarded as a wise investment which should and usually does bring a
profitable return in the formof greater efficiency. Twenty years later, the Planning commission
realized the importance of labour welfare, when it observed that In order to get the best
out of a worker in the matter of production, working conditions require to be improved to
a large extent. The worker should at least have the means and facilities to keep himself in
a state of health and efficiency. This is primarily a question of adequate nutrition and suitable
housing conditions. The working condition should be such as to safeguard his health and
protect him against occupational hazards. The work place should provide reasonable
amenities for his essential needs. The worker should be quipped with the necessary technical
training and certain level of general education.
Labour and Labour Welfare sub-sector consists of six main programmes viz. Labour
Administration, Rehabilitation of bonded labour, Assistance to Labour Cooperatives,
Craftsmen training programme, Apprenticeship training programme, Employment Services
and Sanjay Gandhi Swavalamban Yojana.
DBA 1748
NOTES
3.2 WELFARE AND WORKING CONDITIONS
The Encyclopedia of Social Science (Vol. XV, 1935) defines labour welfare as The
voluntary efforts of the employers to establish within the existing industrial system, working
and sometimes living and cultural conditions of the employees beyond that which is required
by law, the customof the industry and the conditions of the market
The report of the Committee on Labour Welfare set up the Government of India in
1969 refers to welfare as a broad concept, a condition of well-being. It speaks of measures
which promote the physical, psychological and general well-being of the working
population. Welfare covers the families of workers, especially in India, well-being
encompasses that of their families.
Labour welfare implies providing better work conditions, such as proper lighting,
heat control, cleanliness, low noise level, toilet and drinking-water facilities, canteen and
rest rooms, health and safety measures reasonable hours of work and holidays, and welfare
services, such as housing, education, recreation, transportation, and counseling.
3.3 IMPORTANCE OF LABOUR WELFARE
In India, welfare is of the statutory and the non-statutory kinds. Though statutory
welfare ensures a bare minimum of facilities and reasonably good working conditions,
employers are free to provide, or not to provide, non-statutory welfare. However, practically
all organizations in India provide non-statutory measures in varying degrees. Why are
such organizations involved in extensive welfare measures? These questions can be viewed
fromthe point of view of the workers, the unions and the employers.
Fromthe viewpoint of workers, welfare measures must eliminate risk and insecurity.
This is to ensure their personal safety and provide themwith equipment and atmosphere
needed to draw a fair days wage without any feeling of guilt. Given the workers economic
constraints, probably due to large families, organizations should provide facilities such as
transport, medical aid, crches, and subsidized food required by worker.
Unions would like to secure several benefits to maintain their image. The role of
unions in welfare has also been influenced by the sociopolitical and legal environment and
the economy. Their role in labour welfare stems economy. Their role in labour welfare
services apart from those available to them as citizens and members of the community.
Therefore, unions feel that such services apart fromthose available to themas citizens and
members of community. Therefore, unions feel that such services ought to be provided
either by the Government or the employers. However, much depends on the initiative of
the unions, their bargaining strength and the priority given by the to the rights of the workers.
In organizations where unions have been assertive, welfare activities have been considerable,
while in unorganized sectors workers have not been able to derive sufficient benefit from
their employers.
NOTES
Employers provide amenities to discharge their social responsibility, raise the
employees morale, use the work force more effectively and reduce turnover and
absenteeism. Benefits such as bonuses, etc., are bound by length of service, thus ensuring
that an employee will remain for a certain minimum period at least. Though paternalism
may be out-modelled, many managers feel, while others are convinced, that welfare benefits
not only raise employee morale but make it easier for employers to attract and hire competent
personnel. Welfare helps build a positive image of the organization and facilitates dealings
with the union.
3.3.1 A Labour
Labour Administration
A brief description of the important schemes under the Labour Administration Sub-
Sector is given below. During Tenth Five Year Plan, 2002-2007 outlay of Rs. 568.00 lakh
is provided and Rs.40.00 lakhs is provided for Annual Plan 2002-2003.
(1) Training & Research Programme
It is proposed to train officers of the Labour Department in connection with various
Labour Laws implemented in the State. A provision of Rs.1.00 lakh is provided in
2002-2003 and outlay for Tenth Five Year Plan 2002-2007 is Rs.10.00 lakh.
(2) Scheme for wide Publicity to various Labour Laws.
It is proposed under this Scheme to regulate service conditions of workers and to
give publicity to various labour laws through the media like television, radio, short
documentaries, display of slides in rural theatres, video films, posters, folders and
newspapers etc. An outlay of Rs. 10.00 lakh is provided for Tenth Five Year Plan
2002-2007, and Rs.1.00 lakh for 2002-2003.
(3) Strengthening of Medical wing of the Directorate of Industrial Safetyand
Health
There are different types of industries in Maharashtra like heavy and light engineering,
heavy and light chemical industries, petrochemicals, pesticides, fertilizers, textile and
Electronic Industries. All these pose their own potential hazards, which may cause
acute And chronic side effects on the health of the workers. In Maharashtra, the
chemical factories which include heavy chemical complexes or small chemical factories
which may produce acute effects on the health of the workers to such an extent that
it may result in death. Pesticides spilled on the body of the workers are equally
dangerous. An outlay for Tenth Five Year Plan 2002-2007 Rs.200.00 lakh, out of
that an outlay Rs.5.00 lakh is provided in the Annual Plan 2002-2003.
(4) Improvement of communications, mobility of Factory Inspectors
For the quick transmission of messages relating to factory accidents, gas leaks, fires
and
DBA 1748
NOTES
Disasters in the area a broad network of office/ residential telephones is an essential
Pre-requisite for the Factory Inspector, the concerned Dy.Chief Inspector of Factories,
the Chief Inspector and fromC.I.F.to higher authorities. Quick transmission of such messages
to the area Factory Inspector and others not only facilitates a prompt inquiry into the
mishap and its causes but also enables the concerned authorities to bring into action the
various control measures in the case of disaster. An outlay for Tenth Five Year Plan 2002-
2007 is Rs.150.00 lakh. Out of that an outlay Rs.5.00 lakh is provided for Annual Plan
2002-2003.
Rehabilitation of Bonded Labour
The Bonded Labour System (Abolition) Act, 1976 which came into force with effect
from 25th October 1975.
The work pertaining to rehabilitation of bonded labour is entrusted to Revenue and
Forests Department. The Collectors have been instructed to take suitable action for
rehabilitation. The bonded labourers freed from bondage are to be rehabilitated in the
ongoing works of Government like IRDP, EGS etc. The Government of India has enhanced
the subsidy to Rs.6250. This scheme is a part of 20 Point Programme. 50% Central
assistance is admissible for this scheme.
At the end of March, 1998, 1364 bonded labourers were identified, 1287 were
rehabilitated and 77 were not required to be rehabilitated for some or the other reasons.
As on today not a single identified bonded labour remains to be rehabilitated. An outlay for
Tenth Five Year Plan 2002-2007 is Rs.20.00 lakh. Out of that an outlay Rs.4.00 lakh is
provided for Annual Plan 2002-2003.
Assistance to Labour Cooperatives
There are 4,422 Labour Contract Societies in the State with a total membership of
2,20,000. The membership of labour contract societies are mainly from weaker section
community. These societies organize scattered and unorganized labourers together and
provide themgainful employment in various works obtained on contract fromGovernment
Departments and other agencies. This systemhas eliminated the exploitation of labourers
from private contractors. An outlay for Tenth Five Year Plan 2002-2007 is Rs.5.00 lakh.
Out of that an outlay Rs.1.36 lakh is provided for Annual Plan 2002-2003.
3.3.2 B Training
CRAFTSMEN TRAINING PROGRAMME (Industrial Training Institutes)
The Craftsmen Training Programme is controlled by the Directorate General of
Employment and Training (DGET), Ministry of Labour, Government of India and the
curriculumin various vocations is executed as per directives received from it. Thus the
training programme is chalked out on National basis and at State level, it is administered
on the basis of norms and guidelines laid down by National Council for Vocational Training
NOTES
(NCVT). This programme mainly deals with the training of craftsmen in various engineering
and non-engineering trades.
The syllabi for the various trade courses which are introduced in ITIs are prepared
by NCVT. The courses are of one or two years duration. Some of the trade courses are
started under the aegis of State Council for Vocational Training (SCVT) to meet the local
needs. Accordingly at present training is being imparted in 58 different trades out of which
28 are of two years duration and remaining 30 are of one year duration. Out of these 58
trades, 41 are Engineering trades while remaining 17 are non-engineering trades. At present,
out of 58 trades, 4 are covered under the aegis of SCVT and remaining are as per syllabi
laid down by NCVT. The training in Its is aimed at equipping the trainees with adequate
practical and theoretical knowledge of the concerned trades and to develop them into
semi-skilled craftsmen suitable for Industrial Employment or as an apprentice in the
designated trades under the Apprenticeship Act or to undertake self-employment ventures.
At present, there are 347 Government I.T.Is. and 269 non Government ITIs, with
intake capacity of 65704 and 30724 respectively. Government ITIs includes 15 ITIs for
women with intake of 3648 Women. There are 56 Government ITIs in tribal sub-plan area
with an intake capacity of 8692 trainees. 75% of the available seats in these ITIs are
reserved for scheduled tribes. In the ITIs in the general plan area 25% of seats in each
trade are reserved for women. Thus the total Number of ITIs in the State is 616 with
intake capacity of 94656. In order to extend the feasibility for vocational training to the
people, the State Government has taken a decision to set up in phased manner, one
Government I.T.I. in every taluka where no I.T.I. exists at present. In view of this out of
326 total talukas, all talukas are already covered by establishing mini ITIs.
Main Thrust Areas
(i) Modernisation of Existing Trades,
(ii) Maximumutilisation of Existing Infrastructure,
(iii) Creating facilities for Training of Instructors,
(iv) Creation of Post of Training and Placement Officer to facilitate placement of ITI
pass-outs and to promote better interaction with industries.
(v) Implementation of Government decision to established ITIs at each Taluka and
promote womens Participation in C.T.S. training.
(vi) Creation of additional Training facilities in the popular trades under Apprentice
ship Act, 1961.
(vii)Creation of INTERNET facilities to develop better MIS.
The Training imparted in ITIs is skill oriented and in order to avoid any mismatch
between what is taught and what is needed, a systematic plan to improve upon the existing
training system was required to be evolved. Government of India in collaboration with
DBA 1748
NOTES
World Bank has undertaken Vocational Training Project Phase II for skill development
in ITIs and Maharashtra is participating in this project. Every care is therefore, taken to
fund adequately every activity covered under this programme.
Replacement of deficient equipments in Existing ITIs
The ITIs training is need-based and unless it is constantly updated, the same cannot
be of any use to the Industrial world. Updating of curriculumresults in new requirement of
tools and gadgets, shop outfits and machineries. Further normal usage of such tools lead to
their wear and tear which ultimately results in the need for new tools. Thus, technological
advance, revision of syllabi and normal wear and tear results in deficiency of tools and
equipment. Outlay for Tenth Five Year Plan 2002-2007 is Rs.3082.00 lakhs, outlay for
Annual Plan 2002-2003 is Rs.786.26 lakhs.
Removal of deficiency of staff in existing ITIs.
Staff is created in ITIs as per the norms laid down by DGE T in its training manual.
The requirements of staff in ITIs are related to its strength and additional staff is required to
be created with the increase in intake. However, the required staff is not provided at the
time of establishing new ITIs as well as introduction of additional seats. A review of staff
position has revealed that teaching as well as non-teaching posts are required to be created
immediately. Further to facilitate placement of ITI pass-outs and to promote their better
interaction with industries, posts of Training and Placement Officer in each ITI in the State
is created. Outlay for Tenth Five Year Plan 2002-2007 and Annual Plan 2002-2003 is Rs.
200.00 lakhs and Rs.10.21 lakhs respectively.
Acquisition of Land
In order to acquire land for the construction of ITI buildings, an outlay of Rs.100.00
is provided in Tenth Five Year Plan 2002-2007. The outlay for Annual Plan 2002-2003 is
Rs.17.06 lakhs.
Construction of workshops and Administrative buildings
At present, there are 347 Government ITIs out of which 95 institutes have their own
buildings and workshops. An outlay of Rs.9273.00 lakhs is provided for Tenth Five Year
Plan 2002-2007 and an outlay for Annual Plan 2002-2003 is Rs.4173.59 lakhs.
Construction of Staff Quarters
As per norms laid down by NCVT 50 percent of the staff is required to be provided
with residential facility. The provision of such facility is particularly essential because costly
equipment is installed in ITI workshops hence presence of some responsible staff members
is essential on the premises. Further ITIs normally work in two shifts and for maintaining
punctuality, provision of quarters for some essential staff is of utmost importance. An outlay
NOTES
of Rs.100.00 lakhs is provided for Tenth Five Year Plan 2002-2007. An outlay for Annual
Plan 2002-2003 is Rs.19.49 lakhs.
Construction of Hostel Buildings for Trainees
The Trainees of ITIs come generally fromeconomically lower strata of the Society.
Many of the trainees come fromtheir villages to undertake ITI training and do not find
suitable place to reside. NCTVT has also fixed norms according to which 20 percent of
the trainees are to be provided with hostel facilities. An outlay of Rs.400.00 lakhs is provided
for Tenth Five Year Plan 2002-2007. An outlay for Annual Plan 2002-2003 is Rs.40.79
lakhs.
Introduction of additional seats in existing ITIs
In order to take proper care of certain skill areas in the context of technological
advancement as well as development in other sectors viz: Electronic Industry, creation of
TV transmission centres, Refrigeration and Air Conditioning, development of petro-chemical
complexes, Plastic technology as also to train manpower in the field of Electronics with
particular reference to Computer Service etc., about 50,000 additional seats are to be
provided for. An outlay for Tenth Five Year Plan 2002-2007 is Rs. 6735.00 lakhs. An
outlay for Annual Plan 2002-2003 is Rs.403.36 lakhs.
Establishment of New ITIs
In order to reduce flow of unemployed youth to big cities, Government of Maharashtra
has decided to provide Vocational Education at Taluka level by establishment of ITI at
each Taluka level and to motivate themto start their employment/self-employment venture
incommensurate with local needs in rural area with the concept of disposal of industries to
cope-up with the local needs and promote self-employment in each sector. An outlay in
Tenth Five Year Plan 2002-2007 is Rs.2498.10 lakhs. An outlay for Annual Plan 2002-
2003 is Rs.275.75 lakhs.
Introduction of trade of more demand in lieu of trades of less demand
For arranging need based training programme and to establish a strong linkage between
training and employment opportunities, review of the training courses in different ITIs
particularly old ITIs, for starting new trades becomes essential. For introducing popular
and upcoming trades in place of trades having less demand an outlay for Tenth Five Year
Plan 2002-2007 is Rs.3911.00 lakhs and an outlay for Annual Plan 2002-2003 is Rs.120.87
lakhs.
Expansion of Evening Classes for Industrial Workers
The scheme for imparting part-time training to industrial workers (evening classes)
was initially introduced in the year 1950 in order to improve the theoretical knowledge of
the industrial workers who could not get benefit of systematic institutional training. The
DBA 1748
NOTES
training under this scheme is arranged in the evening and there are 12 such centres. An
outlay of Rs.1.50 lakh is provided for Tenth Five Year Plan 2002-2007.
Opening of Book Banks
Outlay for Tenth Five Year Plan 2002-2007 is Rs.275.00 lakhs. Outlay for Annual
Plan 2002-2003 is Rs.52.80 lakhs.
Removal of Backlog
With a view to remove the remaining financial backlog for construction of Administrative
Buildings and workshops under backlog programme, outlay provided for 2002-2003 is
Rs.3622.00 lakhs.
Apprenticeship Training Programme
The Apprenticeship Training Programme is implemented under Apprenticeship Act,
1961 enacted by the Government of India under which training facilities in industrial
establishments and manufacturing process are to be utilised for the purpose of training
candidates in the skilled and semi-skilled areas. Govt. of India has already designated 128
trades in the various areas such as Engineering, Chemical, Food, Agriculture, Electronics,
Textiles, etc. The training programme is divided in 3 phases (1) Basic Training (2)
Shop floor Training and (3) Related Instructions. There are 48 Government and 64 private
Basic Training and Related Instructions Centres set up so far. The intake capacity of Basic
Training is 5921 and Related Instructions is 21,259. In Maharashtra State, 29000 seats
are located in 2288 industries and 20900 apprentices are undergoing training at present, in
various trades. Large number of chemical industries is coming up in the State and the Basic
Training and Related Instruction Centres where the Training is imparted in these trades are
not having sufficient tools and equipment for the purpose so also there is deficiency in
equipment in printing trade. Facilities in the existing Basic Training and Related Instructions
Centres are inadequate. Outlay for Tenth Five Year Plan 2002-2007 is Rs.117.50 lakhs.
Outlay for Annual Plan 2002-2003 is Rs.12.14 lakhs.
Direction and Administration (State Level) Strengthening of the Directorate of
Vocational Education Training, Six Regional Offices, Establishment of Project Management
unit in the Directorate.
Training activities related to Craftsmen Training and Apprenticeship, etc. have increased
tremendously since last 2-3 decades. However, the Directorate is not adequately
strengthened. For smooth and effective functioning of the organisation at State Level,
continuous evaluation and monitoring is essential, to know any defects in the process and
the feed back which enable to take corrective action for maintaining both effectiveness and
efficiency. For this purpose the offices of the Director and Regional Deputy Directors are
required to be strengthened adequately. An outlay for Tenth Five Year Plan 2002-2007 is
Rs.55.00 lakh. An outlay of Rs.11.00 lakh is provided for Annual Plan 2002-2003 is
Rs.11.00 lakhs.
NOTES
Replacement of Worn-out Machine Tools and Modernisation of Equipment in
existing ITIs.
The machinery which is in use in ITIs, established prior to 1965, has gone old and has
lost its accuracy due to normal wear and tear and is not keeping pace with the technological
advances which have taken place in last two decades. It is also affecting the training adversely
and the training imparted is not as per needs of industrial world. It has, therefore, become
a pressing need to undertake programme of replacement of machine tools and equipment
and its modernisation. A study undertaken in this regard has revealed that an amount of
Rs.1351.40 lakhs will be needed to replace and modernise the machine tools and other
equipment in the 32 ITIs established prior to 1969. The programme of modernisation has
already been initiated. Outlays for Tenth Five Year Plan 2002-2007 and 2002-2003 is
Rs.2187.90 lakhs and238.00 lakhs respectively.
Discretionary grants for Minor Works
Outlay for Tenth Five Year Plan 2002-2007 is Rs.250.00 and outlay for Annual Plan
2002-2003 is Rs.40.00 lakhs.
Instructors Training Programme
In the field of Vocational Training updating of skills and knowledge is highly essential
to meet the challenge of changing technology and production techniques. Further, in order
to develop teaching skill training is essential to teachers. Therefore, one year duration
Trade Instructors Training is given through Advanced Training Institutes. Refresher training
programme in AVTS/AVIS Centres, special training programme arranged by CSTARI
Calcutta, Machine Maintenance Training etc. It is proposed to expose at least 400 instructors
every year for short duration (6 to 12 weeks) Programmes.
Establishment of Research and Development Cell
As far as I.T.I. training is concerned, due to diversified nature of trades, the work
related to development of training material, analysis of syllabii preparation of training aids
etc. being vast that separate cells for research and development activities and trade testing
are essential. Many technical issues and problems arise in daily working. Such issues and
problems can be properly tackled through Research and Development Cells.
The outlay for ITI in Tenth Five Year Plan 2002-2007 is Rs.30651.00 lakhs and
2002- 2003 is Rs.8913.16 lakhs.. This includes Rs.816.08 lakhs under TSP, Rs.56.66
lakh under
SCP & Rs.3622.00 lakh for removal of backlog.
DBA 1748
NOTES
3.3.3 C Employment
Employment Services
The Employment Organization deals with rendering of Employment assistance to
employment seekers and collection of employment market information which is very useful
for manpower planning like starting of training and technical education programme. The
outlay in the Tenth Five Year Plan is Rs. 2498.00 lakh and the outlay for 2002-2003 is
Rs.212.07 lakh. The important schemes are discussed below:
Setting up of Employment Coaching-cum-Guidance Centres in Tribal Areas:-
At present, in 8 tribal districts such centres are functioning. An outlay of Rs.0.25 lakh
is provided for 2001-2002 and Rs.7.26 lakh for Annual Plan 2002-2003 and the outlay
for Tenth Five Year Plan 2002-2007 is Rs.282.80 lakh.
3.3.4 D- Special Employment Scheme
Sanjay Gandhi Swavalamban Yojana
This scheme is in operation since 2nd October 1980 and it gives coverage to both
educated and uneducated, unemployed/underemployed persons who are not able to get
financial assistance from Banks or other financial institutions because of their inability to
provide adequate security or margin for loans. The scheme envisages grant of interest free
small loans not exceeding Rs. 2500 to the needy persons so as to enable them to have a
gainful employment/ self-employment by setting up their own ventures in small trade /
business/ services/ tiny industry etc. An outlay of Rs.1362.00 lakh is provided for Tenth
Five Year Plan 2002-2007, out of which Rs.284.57 lakh is for the Annual Plan 2002-
2003.
Tribal Sub Plan
Under the Labour & Labour Welfare Sector, total Tribal Sub Plan outlay provided
for 2002-2003 was Rs.836.41 lakhs and Rs.37.24 lakhs for Annual Plan 2002-2003.
Special Component Plan
Under the Labour & Labour Welfare Sector, Special Component Plan outlay provided
for 2002-2003 was Rs. 156.86 lakhs and Rs.155.16 lakhs for Annual Plan 2002-2003.
3.4 WELFARE MEASURES VOLUNTARY
ALL INDIA ORGANIZATION OF EMPLOYERS AWARD
All India Organization of Employers, an allied body of FICCI has been serving the
cause of Indian enterprises by promoting sound industrial relations and better understanding
between employers and workers on the mutuality of interests, for about 75 years AIOE,
NOTES
which celebrated its Golden Jubilee in 1983, had instituted an award for outstanding
contribution in the field of industrial relations. The Award, which is open to companies, will
be given for innovative work done in the field of industrial relations. The concept of
Outstanding Organisation - Industrial Relations will include innovative approaches to foster
harmonious industrial relations through bipartite mechanism, reducing conflicts and Mandays
lost and promoting employers welfare and development avenues, contributing to higher
motivation, morale and productivity improvement. The quality of industrial relations climate
or environment in the place or area in which an establishment operates, will also be a
deciding factor while judging the performance. Eligibility for Award, criteria and general
guidelines, will be the same as given for FICCI awards. The Award is a plaque with
suitable citation.
AWARD SPECIFIC INFORMATION
OUTSTANDING ORGANISATION - INDUSTRIAL RELATIONS
Besides the General Information of the organization, the following Award Specific
Information should also be submitted:
Nature of Activity-manufacturing, trading, investment, etc.
Number of establishments
Information about history of the organisation, various stages of its development
and evaluation of industrial relations practice over last 10 years.
Whether resort is taken to bipartite collective bargaining with properly recognized
unions.
Number of unions & unionised workforce.
No. of Strikes & lockouts and their intensity mandays / manhours lost &
production loss during last five years
Copy of agreements to indicate whether industrial peace is bought or there is a
give & take.
Productivity improvement initiatives and result achieved.
Latest agreement that the nominee might have entered into with their recognized
unions may also be furnished.
Welfare measures and training initiatives taken by the company for employees
development.
Stresses and strains, if any, through which industrial relations have gone at any
period during the running of the company.
Number of Industrial Disputes pending
Information about grievance machinery set up by the management at various levels
for redressal of genuine grievances of workers.
DBA 1748
NOTES
Whether Works Committees have been set up: if so, details about their composition,
functioning and settlement of issues referred to it.
State of industrial relations in the place/area in which the industrial establishments
of the applicant are situated and impact thereof if any, on the industrial relations
situation of the company.
Voluntary welfare measures initiated by the company.
Whether the company has initiated steps towards involving workers in various
decision making process.
Formal as well as informal forums & number of committees.
The system of communication adopted with employees & its relevance in the
industrial relations.
Record of the company with reference to various clauses of standing orders.
PAST AWARD WINNERS
2004-05 The Arvind Mills Ltd, Ahmedabad
2005-06 Gujarat Alkalies & Chemicals Ltd, P. O. Petrochemicals, Dist:
Vadodara, Gujarat
2006-07 T V SundaramIyengar & Sons Ltd, Madurai, Tamil Nadu
STATUATORY WELFARE MEASURES
Introduction
3.5 STATUTORY WELFARE
After Independence the Government of India passed several acts, e.g., the Factories
Act, the Employees State Insurance Act, the Minimumwages Act, the Payment of Wage
Act, and the Industrial Dispute Act, to ensure fair deal employees in various aspects of
their jobs. We will concern ourselves with the Factories Act and Employees State Insurance
Act. An attempt will be made to briefly describe themand then comment on them.
The Factories Act 1948
The Factories 1948, was conceived in 1881 when legislation was enacted to protect
children and to provide health and safety measures. In 1911, the hours of work were
regulated and incorporated in the act. In 1934, following the recommendations of the
Royal Commission of Labour, the act was amended. A more comprehensive legislation to
regulate working conditions replaced the act in 1948.
The 1948 amendment lays down basic minimum requirements for the safety, health
and welfare of factory workers. In is applicable to industries and factories in India employing
10 or more persons and using power. Industries and factories not using power but employing
20 or more persons on any day of the preceding 12 months are covered by the act. Mined
NOTES
and plantations are excluded because they have their own legislations. Although the act is
a central legislation, state governments administer and enforce it through their inspectorates.
The Factories Act, 1948 comprises 11 chapters and 120 sections with a schedule
listing notifiable diseases. Sections 42 to 50 of the Factories Act, 1948 list the statutory
welfare measures to be provided for the welfare of its workers. They are as follows: The
number mentioned in the left extreme are the actual section number as found in the Act.
Section 42. WASHING FACILITIES
1) In every factory
(a) adequate and suitable facilities for washing shall be provided and maintained for
the use of the workers therein;
(b) separate and adequately screened facilities shall be provided for the use of male
and female workers;
(c) such facilities shall be conveniently accessible and shall be kept clean.
(2) The State Government may, in respect of any factory or class or description of factories
or of any manufacturing process, prescribe standards of adequate and suitable facilities
for washing.
Section 43. FACILITIES FOR STORING AND DRYING CLOTHING
The State Government may, in respect of any factory or class or description of factories,
make rules requiring the provision therein of suitable places for keeping clothing not worn
during working hours and for the drying of wet clothing.
Section 44. FACILITIES FOR SITTING
1) In every factory suitable arrangements for sitting shall be provided and maintained
for all workers obliged to work in a standing position, in order that they may take
advantage of any opportunities for rest which may occur in the course of their
work.
2) If, in the opinion of the Chief Inspector, the workers in any factory engaged in a
particular manufacturing process or working in a particular room are able to do
their work efficiently in a sitting position, he may, by order in writing, require the
occupier of the factory to provide before a specified date such seating arrangements
as may be practicable for all workers so engaged or working.
3) The State Government may, by notification in the Official Gazette, declare that the
provisions of sub-section (1) shall not apply to any specified factory or class or
description of factories or to any specified manufacturing process.
DBA 1748
NOTES
Section 45. FIRST AID APPLIANCES
1) There shall in every factory be provided and maintained so as to be readily accessible
during all working hours first-aid boxes or cupboards equipped with the prescribed
contents, and the number of such boxes or cupboards to be provided and
maintained shall not be less than one for every one hundred and fifty workers
ordinarily employed at any one time in the factory.
2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard.
3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible
person who holds a certificate in first-aid treatment recognized by State Government
and who shall always be readily available during the working hours of the factory.
4) In every factory wherein more than five hundred workers are ordinarily employed
there shall be provided and maintained an ambulance room of the prescribed size,
containing the prescribed equipment and in the charge of such medical and nursing
staff as may be prescribed and those facilities shall always be made readily available
during the working hours of the factory.
Section 46. CANTEENS
1) The State Government may make rules requiring that in any specified factory wherein
more than two hundred and, fifty workers are ordinarily employed, a canteen or
canteens shall be provided and maintained by the occupier for the use of the
workers.
2) Without prejudice to the generality of the foregoing power, such rules may provide
for
(a) the date by which such canteen shall be provided;
(b) the standards in respect of construction, accommodation, furniture and other
equipment of the canteen;
(c) the foodstuffs to be served therein and the charges which may be made therefor;
(d) the constitution of a managing committee for the canteen and representation of the
workers in the management of the canteen;
(e) the items of expenditure in the running of the canteen which are not to be taken into
account in fixing the cost of foodstuffs and which shall be borne by the employer;
(f) the delegation to the Chief Inspector, subject to such conditions as may be
prescribed, of the power to make rules under clause (c).
Section 47. SHELTERS, REST ROOMS AND LUNCH ROOMS
(1) In every factory wherein more than one hundred and fifty workers are ordinarily
employed, adequate and suitable shelters or rest rooms and a suitable lunch room,
with provision for drinking water, where workers can eat meals brought by them,
shall be provided and maintained for the use of the workers : Provided that any
canteen maintained in accordance with the provisions of section 46 shall be
regarded as part of the requirements of this sub-section : Provided further that
where a lunch roomexists no workers shall eat any food in the work room.
NOTES
(2) The shelters or rest rooms or lunch rooms to be provided under sub-section (1)
shall be sufficiently lighted and ventilated and shall be maintained in a cool and
clean condition.
(3) The State Government may
(a) prescribe the standards in respect of construction, accommodation, furniture
and other equipment of shelters, rest rooms and lunch rooms to be provided
under this section;
(b) by notification in the Official Gazette, exempt any factory or class or description
of factories fromthe requirements of this section.
Section 48. CRECHES
1) In every factory wherein more than thirty women workers are ordinarily employed
there shall be provided and maintained a suitable room or rooms for the use of
children under the age of six years of such women.
2) Such rooms shall provide adequate accommodation, shall be adequately lighted
and ventilated, shall be maintained in a clean and sanitary condition and shall be
under the charge of women trained in the care of children and infants.
3) The State Government may make rules
(a) prescribing the location and the standards in respect of construction,
accommodation, furniture and other equipment of rooms to be provided,
under this section;
(b) requiring the provision in factories to which this section applies of additional
facilities for the care of children belonging to women workers, including suitable
provision of facilities for washing and changing their clothing;
(c) requiring the provision in any factory of free milk or refreshment or both for
such children;
(d) requiring that facilities shall be given in any factory for the mothers of such
children to feed them at the necessary intervals.
Section 49. WELFARE OFFICERS
1) In every factory wherein five hundred or more workers are ordinarily employed
the occupier shall employ in the factory such number of Welfare officers as may
be prescribed.
2) The State Government may prescribe the duties, qualifications and Conditions of
service of officers employed under sub-section (1)
DBA 1748
NOTES
Section 50. POWER TO MAKE RULES TO SUPPLEMENT THIS CHAPTER
The State Government may make rules
(a) exempting, subject to compliance with such alternative arrangements for the welfare
of workers as may be prescribed, any factory or class or description of factories
fromcompliance with any of the provisions of this Chapter;
(b) requiring in any factory or class or description of factories that representatives of
the workers employed in the factory shall be associated with the management of
the welfare arrangements of the workers.
3.6 NON-STATUTORY WELFARE MEASURES
As earlier stated, welfare in India can be classified as statutory. Statutory welfare
comprises those provisions whose observance is binding on employers by law. These
relate to certain essential working conditions and standards of health. Non - statutory
welfare, on the other hand, concerns those activities which are undertaken voluntarily by
employers, e.g., housing, education, recreation, transportation and cooperatives.
3.6.1 Non-statutory Welfare in Indian Industry: Some Examples
Although the variety of non-statutory welfare activities sis large, their effectiveness in
achieving productivity is not very well established. Most organizations in India either have
contributed money to these activities or have recycled the contributions of workers to
maximize welfare programmes for them. We will present examples fromthem. We will
present examples from three organizations-one each from the public sector, the private
sector, and a multinational-to indicate the extent of non-statutory welfare provided.
Bhilai Steel Plant Non-statutory welfare programmes in the Bhilai steel Plant (BSP)
initially emerged because of its geographic location. Housing was the main problem. Though
BSP undertook extensive construction programmes, it also provided loans to its employees
to construct their own houses. Medical and educational facilities followed.
BSP now has a 520-bed hospital with the most modern facilities. Persons suffering
from cancer or requiring artificial limbs are sent out to other hospitals with an escort and
the expenses are reimbursed. BSP spends Rs 3 crores annually on this operation. There
are 40,000 children receiving free education with 1,800 teachers on the roll. Care, scooter,
and cycle loans are easily available with long-terminterest free payment plans. BSP also
supports and Bhilai Cooperatives. It has also initiated a village adaptation scheme.
3.6.2 Comments on Non-Statutory Welfare
Although many non-statutory welfare activities either started as paternalism or on
account of the aggressiveness of unions in India, the workers and unions today take them
very seriously as an important compensation for their work. In some cases they have
almost become property rights and any hint of eliminating themcauses serious concern and
frustration among the workers, often leading to go-slows, gheraos, and strikes. The
management, thus, has to be concerned with the efficacy and cost of non-statutory benefits.
NOTES
Non-statutory welfare activities are more difficult to budget than salary. They often
turn out to be more expensive than had been visualized. Under such circumstances, the
management becomes extremely critical of this activity.
3.6.3 Non-Statutory Welfare: A Model
A new model is suggested to orient non-statutory welfare activities froma different
perspective. The purpose is to make such activities more meaningful for organizational
productivity. It should be clarified at the outset that management is concerned with
productivity and not job satisfaction. A general fallacy is that job satisfaction and productivity
are synonymous, or that high job satisfaction will lead to high productivity. Evidence, in
fact, points to the contrary. The two are very different and one does not necessarily
determine the other. In fact, even the conditions that determine the two are very different
and one does not necessarily determine the two are very different.
1. Personal adjustment of worker.
2. Nature of work.
3. Relationship with other workers.
4. Nature of supervision.
5. Companys set up and its relationship with unions.
6. The social status of his job in the community.
Productivity, on the other hand, has been found to be determined largely by the
quality of be determined largely by the quality of machines and raw materials, R&D, industrial
relations, institutional set-up, ability and skills of work force, incentive systems, etc.
Individuals are motivated to achieve certain goals which result in satisfaction.
Productivity is seldoma goal itself but is more a means to goal attainment. In most cases,
productivity and job satisfaction are unrelated except when productivity is perceived as a
path to certain important goals. Thus job satisfaction is more broad-based and encompasses
various conditions and situations and sometimes productivity it also included in it. However,
the bulk of the evidence suggests no relationship between job satisfaction and productivity.
Since productivity is of prime concern to an organization, we will deal here with productivity
and not with job satisfaction.
Publications on non-statutory welfare in Indian industry are meager, hence not mush
is known of the expenditure incurred by industries. Most of the data available are an
amalgamof the expenses of both statutory and non-statutory welfare activities. The report
of the Committee on Labour Welfare cites some figures on the expenditure incurred by
various steel plants and railways on non-statutory welfare activities.
The major welfare activities of railways are housing, education, co-operatives, and
co-operative credit and store. In addition, health resorts and holiday houses are provided.
DBA 1748
NOTES
Over the last 15 years, starting 1951, the average expenditure on staff welfare has increased
fromRs 34 per employee in 1950-51 to Rs 148 per employee in 1966-67. In 1966 - 67.
It constituted approximately 0.6 per cent or the total cost of staff for as many as 13.6 lakh
employees. In other words, an expenditure of about Rs. 20 crores on non-statutory
welfare.
Why has such heavy expenditure been incurred on something not directly related to
productivity? Goyal suggests that these are investment in men which are expected to bring
a change in their attitude, which may in turn be reflected in turnover and absenteeism.
They are compensations, or a price to reduce the workers alienation from work.
The model that is followed for non-statutory welfare is represented below:
Company satisfaction is a state of positive feeling towards the company, a feeling
expressed in loyalty, faith and an attitude that the company is concerned with the welfare of
its employees. This maintains that welfare activities will generate company loyalties, and
assumes that such allegiance will lead to productivity. It is a paternalistic approach. The
non-statutory welfare provisions, thus, are made to generate a pride and satisfaction with
the organization, an organization which is generous enough to be concerned with the care
and well-being of its employees.
Although increased productivity is one of the objectives of non-statutory welfare in
Indian industry by and large, the motivation for such measures has been philanthropic; a
feeling that workers suffer from poverty and need to be cared for. It is felt that if they
are properly looked after they will be loyal to the company.
Thus, non-statutory welfare has been perceived to being allegiance to the organization
to being allegiance the organization that has bestowed facilities to the employees. The
assumption generally has been that increased allegiance and loyalty to the organization will
result in high productivity. Even if we assume that there is a high positive correlation
between company satisfaction and productivity is not all that obvious.
Is satisfaction with the company or company loyalty and allegiance a passport to high
productivity? The answer is not very clear cut. Several surveys and studies on the
relationship between company satisfaction and productivity have given very inconsistent
between the two while others have found some indication of a positive relationship mediated
through moderator variables.
Thus, in the existing model, through it may be true that non-statutory welfare can
lead to high company satisfaction; it is doubtful if high company satisfaction will necessarily

Non-
statutory
Welfare

Company
Satisfaction

Productivity
NOTES
lead to high productivity. Hence, if the concern is with increasing productivity, the existing
model has to be modified. The model suggested here reverses the position of productivity
and company satisfaction. The new model is represented below:
This model suggests that non-statutory welfare will directly influence productivity.
Once this relationship is established, high productivity may lead to high satisfaction.
Non-statutory welfare, in addition to providing the usual social benefits, should be
linked with such concepts as workers participation and job enrichment. This call for a
shift in emphasis. Let an increase in productivity be not the indirect function of welfare but
a direct outcome of this measure. The concept of welfare has to be delinked fromsocial
service. It has to be broad based to include job contents. Most welfare measures have
been concerned with job context activities. If organizations are genuinely interested in the
workers welfare, they have to provide meaning in their jobs by increased participation
and greater discretion and variety.
Despite variations in the interpretation of workers participation, there is consensus
that participation means sharing an appropriate manner, the decision-making power with
the lower ranks of the organizations. Such a process will elicit greater we feeling and
involvement in the work. Thus the worker will be encouraged and be able to contribute to
the overall effectiveness of the organization. There are indications of the viability of such a
proposition. In a cross cultural study, Holter has reported industrial experiments in USA,
UK, and India (Engineering, Coal Mining and Textile Industries, respectively) showing
that the democratic sharing of power at the lower grades of industrial, workers can be
stable and effective because it furthers the ends of both employees and employers.
Job enrichment as a process of making a job more meaningful has caught the attention
of a large number of industrial organizations. Job enrichment has the potential to enhance
productivity and employee satisfaction if changes in jobs are perceived as opportunities
rather than as demands. As a process of making a job more interesting and providing
opportunities for achievement and growth, it concerns discretion and contents of the job.
Increase in both leads to variety, les, boredom, and less alienation. Experience with this
process in both Indian and foreign industries have been very encouraging6. It has shown
a definite increase in productivity and employee morale.
If the concept of welfare is to be extended to include job content orientations, its
viability for increased productivity will be enhanced manifold. On the other hand, its purpose
of decreasing alienation both physical and psychological and increasing the general
well being of the working population can be more meaningfully achieved.

Productivity
Non-statutory
welfare
Company
satisfaction
DBA 1748
NOTES
3.7 WORK ENVIRONMENT
Two important factors have potential to affect the performance of a job: provision of
appropriate working conditions and the physical environment? A word of caution is
necessary here. When changes are brought about, tow things might happen: there is a
changed environment: and there is a response to change in general. The second is often
also called the Hawthorne effect. This means that a change in physical working environment
brings about a temporary improvement in morale leading to increased productivity. This is
a response to change in general and should not take as a response to specific changes.
Hence a manager has to be careful in generalizing from the temporary increasing in
productivity.
An interesting example is seen in the classical Hawthorne experiments conducted in
the 1930s in the Western Electric Plant by Roethlisberger and others. One of the two
equated groups of workers worked under three different illumination intensities (24; 46
and 70 foot candles), while the other group (control group) worked under a more or less
constant illumination level of 16 28 foot candles. The test resulted in very appreciable
production increases almost identical in magnitude in both groups. The differences in the
efficacy of the two groups were negligible. This was explained in terms of the fact the
control group preformed as well as the experimental group because it perceive itself to be
the chosen group and the one in which the management was interested. This interpretation
was responsible for the development of a favorable attitude and the consequent desire to
performat maximumcapacity even in low illumination.
Various features of physical environment have been manipulated in both field and
laboratory experiences to understand their effect on output. Such physical features as
illumination, noise, vibration, colour and music have been experimented with extensively.
We will discuss illumination and noise to give an idea of their impact. The discussion will
take into account research generalization without going into details of methodology.
Illumination daylights is the best illumination for work. In absence of daylight, artificial
light is needed. However, if this artificial light does not approximate daylight it might put a
severe strain on the eyes.
Two characteristics of light have been found to be important-intensity and distribution.
The intensity of light should vary according to the nature of the task.
Tasks requiring precise manipulation require more intense illumination than tasks
involving the manipulation of large objects. Distribution of light is equally important. A
situation where illumination covers the total work environment rather than concentrating a
single aspect of the work area is better. In the case of the latter, whenever the visual field
is shifted to a poorly illuminated surrounding, it dilates the pupils. Excessive papillary
activity causes fatigue and eye strain.
NOTES
Noise is generally considered a destructor. When the noise level is high an employee
has to concentrate more or exert greater efforts to perform. Similarly, if the noise is
intermittent greater efforts are required unlike in a situation where it is constant. In fact, the
constancy of noise reduces its distracting characteristic and the person adapts himself to it
more easily. In such cases sudden silence may become more distractive than continuous
noise. However, if noise is part of the work it does not affect workers as much as it does
when it is extraneous. A typist, for example, may not find the clatter of the typewriter
distracting unlike the person sitting next to him. In addition to illumination and noise, such
factors as colours, vibrations and music have also been found to affect performance.
Whether it is noise or bad illumination, the maintenance of productivity is at the expense of
the worker. He must exert additional efforts to maintain his output. Noise and bad
illumination, for example, lead to increased muscle tension and metabolic rate. The
physiological change brings about accumulation of waste products and depletion of
carbohydrate reserves leading to fatigue with a consequent effect on output.
The following section will look briefly at fatigue and boredomas effects of increased
illumination, noise, vibration, etc.
Fatigue and boredomboth fatigue and boredomis important phenomena because of
their affect on industry. Their effect often becomes apparent in increased spoilage and
decreased output in addition to a greater possibility of accidents and high absenteeism.
Fatigue is rather complex to understand, particularly because muscular fatigue, which
is an effect of prolonged muscular activity, may not correspond with the subjective feeling
of fatigue. Thus a person fatigued physiologically may not feel tired and may continue to
work and maintain his normal level of productivity because of his strong motivation and
desire to complete his work. Conversely, a poorly motivated person may get a subjective
feeling of fatigue and his out put may reduce. An age-old method to measure the effect of
fatigue is to plot the output curve every half an hour. The curve every half an hour. The
curve will show an initial warmup period rising to peak performance and then a steady
decline in output suggesting that finally fatigue is setting in. This method is useful where
output can be plotted as in piece-rate jobs with countable units. White collar, secretarial,
and other jobs do not lend themselves to this analysis. Therefore, the existence of fatigue
has to be verified differently.
The physiological component of fatigue is usually measured by a device called an
ergo graph which consists of a recording system with a cord for suspending weight. Te
weight, which can be increased or decreased, is pulled by the individual using one finger.
The recording called an ergogramshows the changes in performance.
The reduction of fatigue is of extreme practical importance to industry. Several methods
have been tested and operated to alleviate fatigue. Since people have different fatigue
levels, efforts are made when selecting and place individuals, to minimize fatigue by reducing
DBA 1748
NOTES
the length of work periods, introducing several rest pauses, job rotation, job enrichment
and work teams. Boredom, sometimes referred as mental fatigue refers to the subjective
aspect of fatigue.
It results when an activity is perceived to be boring, monotonous, repetitive, and not
requiring much attention. Boredomis highly specific, unlike fatigue. Fatigue is generalized.
A physically tired person will not be able to carry out any other work effectively while a
bored person may show tremendous increase in output because of a change of job. The
character of the work determines, to a large extent, the feeling of boredom. Less challenging
jobs demotivate the individual induce boredom.
Some of the measures to reduce boredomhave been limited by varied factors such
as the level of intelligence, complexity of the task, and the personality of the employee.
Extroverts tend to experience boredommore easily because of their dependence on outside
stimulation, while older employees and those who prefer regularity in their activities are
less bored doing repetitive work. Work that does not provide job satisfaction in most
cases has been found to cause boredom. Again, job enrichment, worker participation,
job enlargement, etc., are some of the ways to increase both job satisfaction and productivity.
3.7.1 Arousal Hypothesis
Variations in performance because of variations in the elements of the work environment,
subjective feeling of the work environment, subjective feelings of fatigue and boredomare
often explained in terms of an individuals need for stimulation. All living organisms are
stimulus-seeking. At the lower levels this tendency is characterized by the desire to reproduce
while at the higher levels in the phylogenic scale, it shows no maintenance function. Yet
novelty, complexity, change, etc., catch our attention and could our behaviour.
Several research studies have shown that living organ isms brought up in enriched, as
compared to impoverished environments, show marked changes in abilities and skills. For
example, a longitudinal study conducted on the intellectual development of adopted orphans
in Beirut showed that while in the orphanage their I.Q. remained at approximately 50
(showing a very show growth rate of intelligence), on adoption by families their intelligence
developed at a normal rate. The stimulation by way of attention in adopted homes was
found to explain the normal growth of intelligence.
In our day-to-day life we find several examples of stimulus-seeking behavior among
individuals such as changing the physical arrangements in the house or office, the hippie
culture, smoking, and movie-going. An important aspect of this behaviour is that individuals
should maintain stimulation or tension within a certain range to function at an optimal level.
This range varies fromperson to person. Some stimulation is necessary but an excess of
it causes pain, distraction, demotivation, and a drop in performance. This is shown in the
following figure.
NOTES
As shown in the figure, increasing stimulation leads to increased output, out only up to
a point. Beyond this, increase in stimulation lead to decrease in performance. Thus the
relationship between performance and stimulation is curvilinear. Changes in working
environment can bring about an increase in output if these are carried to an extreme they
can influence output negatively. Some illumination, noise, colour, etc., may be good for
output but an excess of the same can be good for output but in excess the same can
produce negative effects. The explanation is simple. Man wants to control his environments
and also the degree of stimulation he is exposed to in this case his work environment,
e.g., when this control is out of his hands it is illumination, noise flow of raw material, etc.
hardly a source of enjoyment.
3.8 LABOUR WELFARE FUNDS
3.8.1 Tripartite Labour Welfare Fund Advisory Committee
With a view to catalyze labour welfare activities, a separate tripartite advisory committee
has been constituted by the government both at the Central and State level under each
labour welfare fund scheme. At the central level, the scheme is looked after by the union
ministry of labour. The state advisory/committee is headed by the concerned State Labour
Minister. Most of the welfare activities are organized directly by labour welfare organizations
for undertaking welfare work, adequate financial assistance is made available to themand
the employers through subsidies
Level of assistance
The central Government has taken several steps to streamline the various welfare
activities with a view to increase their welfare Content and extend their coverage. The
report of the task force appointed by the government for looking into the problems of
labour welfare was examined by a high level empowered committee. It look a series of
decisions for enhancing the scope of welfare activities. One of the important
recommendations of the Committee was that the various welfare schemes undertaken
against different welfare funds need to be adequately financed by the government.
Labour Welfare Facilities under Welfare Funds
The annual reports of Ministry of labour have given a detailed account of various
labour welfare facilities made available to workers under different welfare funds. A gist of
which is discussed here in somewhat detail.
(a) Assistance of Medical Facilities: There exist a elaborate systemunder which
a variety of medical facilities are provided to mine workers.
(b) Assistance for Educational Facilities: The workers education and training
been recognized as one of the key areas of labour welfare. In the changed socio-
economic milieu, in the recent past, the need for effective educational programmes
for working class in general and that of women, ST/SC workers in particular, has
increased manifold. It is heartening to note that the government has well responded
to this need of workers, which obvious from the fact that during 1993 94 as
DBA 1748
NOTES
much as Rs. 455.99 lakhs were incurred on this head from the labour welfare
fund. As a result of this, 1,38,427 beedi, mine and cine workers were benefited.
(c) Assistance for Recreational Facilities: With a view to cater recreational
requirement of workers, the labour welfare organization provides a variety of
recreational and cultural facilities to themthrough a Multipurpose Institute (MPI)
and Development Multipurpose Institute (DMPI) and Welfare Centers. The labour
welfare activities undertaken by these institutes include:
(1) Education of children and adults.
(2) Sports and games for adult and children.
(3) Motivation or workers.
(4) Mid-day meals to children.
(5) Training for female dependants of miners in tailoring and embroidery
For the recreation miners and beedi workers during 1922 93, a sumof Rs.11.89
lakhs was incurred on various recreational activities.
(d) Assistance for Housing Facility: Under the various welfare programmes, top
priority is accorded to housing facilities. Towards this end, the financial assistance
is given to workers under all the housing schemes. Besides this, and additional
subsidy of Rs. 1700/- is also made available to workers under Build your own
house scheme for beedi and mine workers. The workers who have adopted a
planned family aso enjoy a corresponding reduction in the loan liability.
ILO/UNFPA Assisted Project on Family Welfare Education
An ILO/UNFPA assisted project on family welfare education for Beedi workers is
under implementation in the major beedi producing, states namely Madhya Pradesh, Uttar
Pradesh, Orissa and the West Bengal since February 1992. The main features of project
as specified by the annual report of Ministry of Labour 1944 95 are as under.
(a) The abject of the project is to educate, motivate and provide health and family
welfare services to the Beedi workers and their families through the 58 dispensaries
being run in these States under the Beedi Workers Fund. The target is to bring
abut improvement in couple protection rate by 25% of the level existing at the start
of project and to meet the national goal of 60% protection and net reproduction of
one by 2000 AD.
(b) Field workers numbering 390, have been selected fromamongst the Beedi Workers
trained and deployed under the project. Refreshing training has also been imparted
to them. Further, 900 TBAS (Training Birth Attendants) have been identified and
are being trained. Dispensable delivery kits are being procured from DWACRA
(Development of Women and Children in Rural Areas) groups fro supplying to the
TBAS have also been trained under the project; health camps are also being
organized at the dispensaries. Fifty four Mahila Mandals have been formed at all
static and static cum mobile dispensaries. The workers are holding monthly
motivational meeting. Along with stress on also been included in the project.
NOTES
State Welfare fund Scheme
Certain state governments have created welfare funds for the benefits of different
categories or workers.
Group Insurance Scheme of LIC for Unorganized Labour
The Life Insurance Corporation of India has implemented a social security scheme
for unorganized workers in Twenty three occupations, by creating a social security fund
fromits contribution and that of Government of India. The occupations which are covered
under the scheme are:
(1) Beedi Workers
(2) Brick Kiln Workers
(3) Carpenters
(4) Cobblers
(5) Fishermen
(6) Hemals
(7) Handicraft Artisans
(8) Handloom Weavers
(9) Handloom and Khadi Weavers
(10)Lady Tailors
(11)Leather and Tannery Workers
(12)Physically Handicapped Self-employed Persons
(13)Primary Milk Producers
(14)Risckshaw Pullers/Auto Drivers.
(15)Safai Karmacharis
(16)Salt Growers
(17)Tendu Leaf Collectors
(18)The Urban Poor
(19)Forest Workers
(20)Sericulture
(21)Toddy Tappers
(22)Powerloom Workers
3.8.2 Conclusion
Prof. Krakaldy observed, The whole field of welfare is one in which much can be
done to combat the sense of frustration of the industrial worker, relieve him of personal
and family worries, to improve his health, to afford hima means of self-expression, to offer
DBA 1748
NOTES
himsome sphere in which he can excel all others. If within the field of welfare and particularly
that part of which comprises sports and games a large measure of self-government can be
left to the workers, even in the management of facilities provided by the employer , a sense
of responsibility, imitative and co-operation can be fosterd and often among those whose
daily tasks afford them the least opportunity of developing characteristics so essential to
industrial enterprise and wise citizen.
Labour welfare has tremendous potentialities for fostering good industrial relations in
India. Hence, we knight use scientific procedures for labour welfare and organization and
the labour force must be directed in right channels in our fast developing technological
machinery.
Ignorance, ill-health and dirt are the three giants labour warfare ahs to fight in the
home life, personal life, work life and community life of the workers. They have to be
fought our steadily on all sides. In the coming years, the labourers shall be made mightier
than the machine with which he works, more fruitful than the dust on which he treads and
richer that the earth into which the digs.
Decent wages, adequate perquisites, and safe and clean work environment are basic
to all other actives in the area of human welfare, and therefore, the enterprises which
reduce the wages bill on these counts are sure to lose the goodwill of employees.
3.9 WORKERS EDUCATION AND TRAINING SCHEMES
3.9.1 Workers Education: Concept
Workers; education connotes different meanings for different countries on account
of developmental, cultural and historical reasons. For instance, in the United States of
America, workers education is considered as synonymous with training in trade union
leadership whereas the U.K., it covers trade unionism, in general, adult education, and
vocational education. In many Western European countries, the term, workers education
refers to education in citizenship (folk schools in Denmark, Laven schools in Germany). In
developing countries like India, the term, workers education is used in its wider
connotation and aims at making the worker a better operative, a better union member and
a better citizen.
In the words of William Flayed, workers education is an attempt on the part of
organized labour to educate its own members under an educational system in which the
workers prescribe the courses of instructions, select the teachers and in a considerable
measure, furnish the finance.
In this context, Florence Peterson observed: The term workers education, as
commonly used, is not a generic termbut has specific connotation. It is a special kind of
adult education designed to give workers a better understanding of their status problems,
rights and responsibilities as workers, as union members, as consumers and as citizens.
NOTES
On the basis of analysis of various conflicting concepts of workers education, some
of its notable features that have been identified are as under:
i. The scope of workers education is much wider than that of trade union education
but is narrower than that of adult education.
ii. The workers education is designed to create trade union consciousness among
workers, besides making themgood citizens and training themto understand their
status, rights and responsibilities.
iii. In workers education, the workers themselves prescribe the curriculumand select
the teachers who have full sympathy with the working class.
iv. The institutions providing workers education are owned, financed and managed
by the workers.
v. It is aimed at increasing the bargaining power of trade unions and making the
working class more sensible and cooperative.
vi. It differs fromvocational and professional education, for its main aimis to train a
worker for his group advancement and increasing individual creativity, whereas
vocational and professional education aims at individual development.
vii. The approach in workers education is psychological and philosophical.
viii. It includes general education, vocational education, technical education, social
education and training in trade unionism.
3.9.2 Objective of Workers Education
The basic objective of workers education is to make the worker an efficient individual,
disciplined trade union member and an intelligent corporate citizen, so that he plays a vital
role in the socio-economic development of the country. Traditionally, workers education
programme can be viewed as one which intends to strive for objectives like:
(i) To foster workers loyalty towards the union and imparting the necessary training
to themfor intelligent and efficient participation in union activities. Besides teaching
themtrade union dynamics, history etc., which they need to know as trade union
members.
(ii) To develop the worker for good and respectable civic life.
(iii) To promote among workers a greater understanding of the problemof the countrys
economic environment and their privileges, rights and obligations as union members
and citizens.
(iv) To develop trade union leadership from among the rank and file thereby keeping
the union away fromthe clutches of politicians, leading to democratization of trade
union administration.
(v) To familiarize the workers with the capitalist culture and philosophy this is the soul
of modern industrial system.
(vi) To inculcate among workers a better understanding of their duties responsibilities
and intricacies of work, so that they can effectively carry out their jobs.
DBA 1748
NOTES
(vii)To enable the worker to realize the purpose of human life and raise him to the
height of achievement.
(viii)To equip organized labour to take its place in a democratic society so that it plays
a dominant role in the process of economic development and fulfils effectively its
social and economic functions and responsibilities.
In the view of National Commission on Labour, workers education should make a
worker.
(a) A responsibly committed and disciplined operative;
(b) To understand the basic economic and technical aspects of the industry and the
plant where he is employed so that he can take an intelligent interest in its affairs;
(c) Aware of his rights and obligations;
(d) To understand the organization and functioning of the union as well as develop
qualities of leadership, loyalty and devotion to trade unionism, so that he may
intelligently participate in the affairs of his union;
(e) To lead a clean and healthy life based on a firm ethical foundation; and
(f) To make the worker responsible and alert citizen.
3.9.3 Techniques of Workers Education
The workers education programmes may be organized in the industry premises itself.
The workers may also be given practical training in the field. The extension work too, may
forma part of the programme of workers education.
The techniques employed in imparting workers education are:
(i) General lectures, delivered in simple, direct and unambiguous language;
(ii) Discussions on the topics/issues involved;
(iii) Organization of study groups; and
(iv) Correspondence course.
Besides, these modern teaching methods are also deployed and for this purpose, a
number of educational aids can be used-video tapes, films, filmstrips, recordings, pictorial
charts, flash cards, posters, graphs, maps and diagrams, wall newspapers, etc.
The demonstrations, talks, tests, seminars, debates, role-playing, symposia, case studies
and two-way communication methods are also encouraged. The educational visits and
study tours of the trainees to union offices, factories and multipurpose projects are important
aspects of workers education.
3.9.4 Workers Education in India
In India, where the level of general education is low and trade unions suffer froma
number of maladies, the scope for workers education is very great. The maintenance of
NOTES
industrial peace and harmony, the development of healthy labour management relations,
quality of citizenship, awareness of ones rights and responsibilities, and the need for the
development of solidarity among workers these call for a varied programme of workers
education which the resources at the disposal of the trade unions cannot undertake.
These qualities on the part of the workers would be forthcoming more easily if they
are made better workers and better citizens through a programme of workers education.
The Royal Commission on Labour remarked thus; In India, nearly the whole mass
of industrial labour is illiterate, a state of affairs which is unknown in any other country of
industrial importance. It is almost impossible to overestimate the consequences of this
disability, which are obvious in wages, in health, in productivity, in organization and in
several other directions. Modern machine industry depends in a peculiar degree on
education, and the attempt to build it up with an illiterate body of workers must be difficult
and perilous. We would emphasize the fact that precisely because of this; the education of
industrial labour should receive special attention.
3.9.5 The Scheme for Workers Education
The Workers Education Scheme was launched in 1958 by the Central Board of
Workers Education (CBWE). The Board is a tripartite body registered under the Societies
Registration Act, 1860, which consists of a Chairman (nominated by the Government),
representatives of the Central and State Governments, representatives of the Central Trade
Unions and the employers organizations, representatives of University Grants Commission
Indian adult education association and one independent trade unionist nominated by the
Ministry of Labour and Employment. The total number of members does not exceed 20.
At present, the board consist of one Chairman, one ex-office secretary and 14 members.
The board has a network of 48 regional centers located in for zones, with offices at
Bombay, Calcutta, Delhi and Madras, and 14 sub-regional centers located in different
parts of the country. For each regional centre, a regional advisory committee has been
constituted to review the progress of the scheme in the region to suggest measures for the
proper implementation of the programme and to guide the centre.
The board aims at:
(i) Inculcating among all sections of workers a sense of patriotism, national integrity,
secularismand pride in being an Indian;
(ii) Equipping themfor their intelligent participation in social and economic development:
(iii) Developing among themthe Nation First approach; and
(iv) Instilling in themgreater understanding of the problemof their social and economic
environment, their rights and obligations as citizens, as workers in industry and
responsibility towards family members. The board also aims at developing among
workers a sense of responsibility so that they can shoulder responsibility of trade
union leadership.
DBA 1748
NOTES
3.9.6 Three Levels of Workers Education
The workers education programme operates at three level:
1. The National Level: It is the top most level of workers education. At this level,
Education Officers are trained. The participants for the programme are selected
by C.B.W.E. and are trained at a central place by the Board officials.
2. The Regional Level: The regional level programmes are aimed at imparting
necessary training to selected workers. The workers so educated are known as
workers teacher.
3. The Unit/Village Level: This is the final stage of the programme. The workers
teachers on completion of their training return to their work place and conducts
programme for rank and file of workers at their respective units.
(1) The National Level
It is the most important level of the workers education programme, as it aims at the
education of members of central trade union organizations and federations, pre-
employment training of educational officers (also known as teacher administrators)
and refresher courses for board officials. The prospective educational officers are
directly selected fromthe open market. Generally, persons with the masters degree
in economics, commerce or education with three years of work experience in the
field of human resources management, are chosen for the task. They are given six
months intensive training before being placed on the job in different regional centres.
The training staff includes union leaders, employers representatives, educationists,
administrators and the like. These officials in turn after the successful completion of
their training courses are posted at regional centres on the basis of their regional
linguistic proficiency. With each batch of education officers, to be trained, generally
its boards practice to include a fair number of trade union workers from central
organizations, so that the trainers may be acquainted with trade union problems. The
union problems. The union nominees also get the facilities to widen their interests and
add theoretical knowledge to their practical background.
(2) The Regional Level
The board through a network of 48 regional centres and 14 sub-regional centres
conducts this programme. At the regional level worker teachers are trained, who in
turn educate the rank and file worker at the unit/village level. The regional level activities
are monitored by the four zonal offices located at Delhi, Calcutta, Madras, and
Bombay. For each regional centre, there is an advisory committee which reviews its
progress of the scheme and recommends measures for its effective working. The
worker-teachers forma very strong link between the education officers and workers
at the unit level. The education officers, on completion of their training, are posted to
different centres and are entrusted with the training of prospective teachers from
NOTES
among the workers in a full-time training course of three months duration in batches
of about 25-30 persons. These selected workers are known as worker-teachers.
they are selected by the local committee and by the director of regional centres from
various industrial units and workshops in the region and are sponsored by their
respective employers or trade unions. These selected workers deputed for training
by the employers are considered to be on duty and are paid their usual wages and
allowance.
(3) The Unit Level
The third level in the programme of the workers education scheme relates to the
training of rank-and-file workers by the specially trained worker-teachers at the unit
level. The workers so trained at the regional level revert to their places of employment
and conduct programmes at the unit level, largely after working hours. The regional
centres closely supervise the work at different units and assist and guide worker
teachers in conducting their classes efficiently and smoothly.
Since no hard and fast rules have been framed for the selection of workers for classes
at the unit level, worker-teachers have to exercise their discretion while selecting the workers.
As most of the workers are illiterate, there is no hard and fast rule for their selection for the
course. Generally, preference is given to workers having some educational background.
Further, workers in the age group of 24-45 years of age are given priority. The selection of
the workers for the course is exclusively prerogative of worker-teachers as they have
close association with the units of workers.
The worker-teachers conduct three months part-time course for workers at the unit
level, besides three weeks full-time course in those units which deputes workers for the
course. The syllabus for the course is trade union-oriented and covers subjects; workers
and trade unions, workers and industry, worker, his family and his country etc. The
honorarium for the worker-teachers are decided and revised by the board.
At the unit level, the management usually provides facilities of accommodations,
furniture, etc. Some of the organizations also give 45 minutes time-off to workers to enable
them to attend classes. Every trainee at the unit level who puts in more than 90 per cent
attendance and takes keen interest in training is awarded a certificate by the regional centre
after the successful completion of training.
3.9.7 Special Category Programmes
Besides the aforesaid three levels of workers education, a host of special educational
programmes are also organized for the benefit of workers. Against of such programmes is
discussed here in some detail:
3.9.7.1 Programme for Women Workers
With the Governments increased emphasis on the betterment of women workers,
the board has started a separate programme for them. During 1986-1987, 62 women
worker-teachers, 448 women workers at the unit level, 29 women worker teachers in
DBA 1748
NOTES
refresher courses, 24,616 in rural programmes, 4, 350 in the unorganized sector and 156
stone quarry workers have been trained. A special cell, for the training of women workers
was set up at the Indian Institute of Workers Education (Bombay) in November 1991.
For the training of women workers, a modular syllabus for advanced training and special
training material has been prepared. During 1993-94, under the programme, 70, 004
women workers have been trained.
3.9.7.2 Programme for Unorganized Workers
For the education of unorganized workers, a programme was started way back on
October 1, 1979. This programme is basically meant for the workers of handlooms, power
looms, khadi and village industries, industrial estates, SSI, sericulture, coir and beedi
industries. The programme is generally of five days duration and is conducted at the regional/
sub-regional or semi-urban areas. During the period between January and December,
1994, the board conducted 244 five-day programmes in which 9,675 women workers
participated.
3.9.7.3 Programme for Rural Workers
In 1977-78, the board launched a pilot project for the education of rural workers. It
intends to create awareness among rural workers about their soci-economic environment
the need for developing their organization and the benefit available under the various credit
schemes. The C.B.W.E has developed this programme keeping in view the needs of
workers, especially in the field of industrial health, safety and environment. These
programmes cover landless labour, agricultural workers, rural artisans, forest workers and
unemployed workers in rural areas. As a part of nations effort to increase the literacy of
workers, especially among women and persons belonging to ST/SC and other educationally
backward classes. The programme includes.
(1) One months training course for rural educators.
(2) Five-day training programme for rural volunteers.
(3) Two-day non-residential awareness camps at the village level.
In the programme, selected workers are trained at the regional and sub-regional
centres by worker-teachers in full-time continuous training courses of three months duration.
These worker-teachers conduct classes for the workers at the unit level.
During the period between January and December 1994, the board trained 241 rural
educators in 12 courses, 8,322 rural volunteers in 248 camps and 1, 00, 999 workers in
2,579 awareness camps.
3.9.7.4 Functional Adult Literacy Programme
The C.B.W.E. also conducts special programmes of functional literacy for workers
engaged in plantation and mines, where the level of literacy level is exceptionally low,
During January, December 1994 in 385 sessions, 9,098 workers were trained.
NOTES
3.9.7.5 Training for Workers of Weaker Sections
This programme is aimed at the training workers of weaker sections. For the purpose,
the board organizes five-day tailor-made programme for the functional and educational
needs of special categories of workers such as women workers, handicapped workers,
young workers, rickshaw drivers, hand/load drivers, construction and civil and sanitation
workers. Between January/December 1994 in 62 five/day camps, 2,433 workers were
trained.
3.9.7.6 Leadership Development Courses
The board also organizes leadership development courses to equip the trade union
activities with the necessary knowledge, understanding and skills of leadership to enable
themto function effectively and also to participate in different programmes at community
and enterprise levels. This scheme was started during Sixth Plan between January /October
1993, in 112 programmes organized in which were 2,433 workers participated.
3.10 WORKERS TRAINING: CONCEPT
In India, there is an acute shortage of skilled and trained workers for a number of
industrial occupations and a majority of workers suffer fromlow efficiency, which necessarily
means that the rate of skill formulation has been low. Besides, factors like social attitude to
industrial work, differentials between the income of skilled and unskilled workers, and the
training and educational facilities available in the country, the educational systemhas been
responsible for this state of affairs. To bring about any change in these is an uphill task. But
for rapid industrial development, the provision of training facilities for workers is the need
of hour. This training pre/supposes a sound bases of universal literacy, proper planning and
utilization of trained personnel, and properly and designed training programmes. Needless
to say, training leads to efficiency and increased productivity, less waste, reduced
supervision, higher employee earnings, reduced accidents, increased organizational stability
and flexibility, heightened moral and vertical job mobility.
Various schemes of vocational training and apprentice ship were in operation such as:
(a) The apprenticeship and higher training in railway workshops, a technical school
and the staff college for the railways;
(b) The well/defined apprenticeship schemes in Sone Valley Portland Cement
Company; the Assam Oil Company; the Tata Oil Mills Co., the Tata iron and
Steel Company, the Tinplate Company of India and some engineering works in
Bombay, Bengal, U.P. and Punjab.
(c) The training was also organized in the dockyards at Bombay and Calcutta Port
Trusts, and port workshops at Calcutta, Madras and Vishakapatnam and some
municipalities; and
DBA 1748
NOTES
(d) In several unorganized industries, such as carpet weaving, bidi and cigar-making,
and mica-splitting, training was provided to working children in the process of
getting help fromthem.
On the basis of the recommendations of the Committee, the government constituted
in 1957 the National Council for Training in Vocational Trades (NCTVT), consisting of
representatives of employers, employees, technical institutions, representatives of the Central
and State Governments and labour, and sought advice on all aspects of vocational training
and correlating training facilities with the requirements of industry. The NCTVT is assisted
by a member of trade committees, separately for each of the 40 engineering and 27 non-
engineering trades. These committees advise the NCTVT on matters relating to the standard
of teaching the quality of instruction and on the problems relating to each specific trade.
3.10.1 Training Schemes of DGET
To build up the career of young persons and to supply a constant stream of trained
personnel to industries, the Director-General of Employment and Training (DGET) has
designed a number of training programmes.
A few important programmes are:
(1) Craftsmens Training Programme.
(2) Craft Instructors Training.
(3) Advanced Vocational Training.
(4) Foremans Training.
(5) Apprenticeship Training Scheme.
(6) Part-Time Training for Industrial Workers, and
(7) Vocational Training Programme for Women.
3.10.1.1 Craftsmens Training
The DGET has set up industrial Training Institutes and Centres (ITIs/ITCs) to provide
training to those young men and women who are in the age group of 14 to 25 years. By
Oct, 1993 there were 2,651 such institutes with an intake capacity of 3.98 lakh workers
which are permanently or provisionally affiliated to the National Council for Vocational
Training (NCVT) that impart training in 41 engineering and 22 non-engineering trades. The
modular ITIs (MITIs) at Haldwani (U.P.), Calicut (Kerala), Jodhpur (Rajasthan) and
Choudwar (Orissa) have been setup by the Government to organize craftsmen training on
a modular basis. Besides the courses in these trades, shot-termcourses are also conducted
by ITIs in some States and Union Territories. There are six modular training institute. They
also advise Government on the standards and norms of training, prescribe curriculum,
trade testing and certification. The period of training varies from one to two years. The
entry qualifications vary fromVIII standard pass to XII standard depending on trade. The
NOTES
training is provided either free or on a nominal tuition fee. Every trainee is provided a
stipend of Rs. 40 per month besides free workshop clothings, hostel accommodation and
medical facilities. Up to July 31, 1992, the total number of ITIs where such training is
provided were 1,028 with an intake capacity of 3,97,716.
3.10.1 2 Craft Instructors Training
Six training institutes, each located at Bombay, Calcutta, Hyderabad, Kanpur, Ludhiana
and Central Training Institute at madras train craft instructors required by it is and apprentice-
training establishments. In 1982 these were upgraded to Advanced Training Institute (ATI),
which impart one-year comprehensive training both in skill development and principles of
training. The modular pattern of training for craft instructors is being imparted at C.T.I.,
Madras and A.T.I., Hyderabad. The trades in which training is imparted is like this, for
printing trades ATI, Kanpur. Farm mechanics at ATI, Ludhiana, millwright trade at ATI,
Kanpur, Howrah and Ludhiana and at ATI, Bombay, chemicals and weaving. As on October
93, the total intake capacity of all these centres is 1,115. During period expired on October,
there was full utilization of capacity.
3.10.1 3 Advanced Vocational Training
This scheme was started in October 1977 to provide training to highly-skilled workers
and technicians in a variety of advanced and sophisticated skills not available under the
vocational training programme. This scheme was undertaken with the assistance of UNDP/
I.L.O. under which six ATIs of State Governments were modernized. The advanced skill
training courses are offered at 6 ATIs located at Bombay, Kanpur, Calcutta, Hyderabad,
Ludhiana and Madras and at 16 selected it is located at Ambattar, Bangalore, Vadodara,
Dhanbad, Durgapur, Faridabad, Gauhati, Jabalpur, Jammu, Jodhpur, Kalamassery, Meerut,
Patiala, Pune, Rai Bareilly and Vishakhapatnam under 15 State Governments. These
institutes were modernized to conduct various advanced courses under the scheme. About
10,000 workers are trained every year. The Advanced Training Institute at Madras serves
as an apex institute. In 1974, an advanced training institute for electronics and process
instrumentation was established in Hyderabad to train highly skilled technicians in such
fields as consumer/industrial/medical electronics.
Since 1981, two advanced training institutes have been working in the field of electronics
and process instrumentation at Dehradun and Hyderabad. In order to meet the requirements
of technical workers in hitech areas, a NC/CNC training centre was established at ATI,
Madras, with the assistance of UNDP/ILO. Looking to the success of ATI, Madras, one
centre each at Bombay and Kanpur is being set up. under the World Bank vocational
Training Project, 33 it is of different States and UTs have been covered. Till September
1993, in 6 ATIs, as many as 59,600 industrial workers/ technicians have been trained.
DBA 1748
NOTES
Evolution of Vocational Training Scheme
1941 War Technician Training Scheme. Training Institutes for
Women at Mumbai and
Bangalore
1945 Training Scheme for Ex-Servicemen. 1981 Model Industrial Training
Institute at Haldwani and
Calicut; Advanced Training
Institute for Electronics and
Process Instrumentation,
Dehradun.
1948 Training Scheme for Craft
Instructors
1982 Foremen Training Institute
at J amshedpur, Model
Industrial Training Institute
at J odhpur and Chowdwar.
1950 Craftsmen Training Scheme. 1983 Regional Vocational
Training Institute for
Women, Trivandrum;
Regional Directorate of
Apprenticeship Training.
Hyderabad.
1958 Evening Classes for Industrial
Workers.
1985 Regional Directorate of
Apprenticeship Training at
Fariadbad.
1959 national Apprenticeship Scheme
(Voluntary now discontinued)
1986 Apprentices (Amendment)
Bill, 1986, (passed by both
Houses of Parliament) for
10+2
1961 Apprentices Act, 1961 (passed by
Parliament).
Vocational Stream Students
as Technician (Vocational)
Apprentices.
1963 Implementation of the Apprentices
Act.
1987 Apprentices Amendment
Act 1986 for 10+2
Vocational Stream came
into force on 16.12.1987.
1965 Mine mechanization Training
Scheme Supervisory Training
Scheme.
1987 RVTIs for Women at
Hissar, Calcutta, Tura,
(Meghalaya).
1967 Part-time Training of Industrial
Workers (Modified).
1987 Central Instructional Media
Institute at Madras.
1968 Central Staff Training and Research
Institute, Howrah; Advanced
Training Institute, Madras, All India
Skill Competition for Apprentices.
1988 Central Population
Education Cell at DGE & T
Headquarters.
1971 Diversification of Training
Programmes, Training in the trades
of Chemical and Hotel Catering; Part
time Training of Industrial Workers
1989 Central Project
Implementation Unit at
D.G.E. & T. Headquarters
for Vocational Training
NOTES
3.10.1 4 Supervisors/Foremens Training
The supervisors/foremen are the frontline managers, hence, they are of paramount
importance due to their unique position in the organizational hierarchy. In India, for the
training of foremen, two institutes are functioning, one at Bangalore (1971) and another at
Jamshedpur (1986). Here training is provided to existing and potential foremen in technical
and managerial skills, besides routine matters pertaining to manpower management. In the
programme both tailor-made and general programmes of both short and long termduration
are organized. Generally, industries sponsor their candidates for the long courses on the
modular pattern. The short-termcourses are of one to twelve weeks duration, whereas
long-termcourses are of two years duration, which are of three types:
(i) Diploma in foremanship for NAC/NTC candidates.
(ii) Post-Diploma in foremanship for fresh diploma-holders and
(iii) Post diploma in foremanship (maintenance, engineering) for fresh diploma holders.
Since its inception to October 1993, about 15,202 foremen have been trained in
long-termand shout-termcourses.
3.10.1 5 Apprenticeship Training Scheme
Under the apprentices Act, 1961, it is obligatory on the part of the employer to
engage apprentices in certain trades. The apprentice training consists of basic training in
the specific filed, followed by shop-floor training. The training of graduates and diploma-
holders in engineering/technology as graduate technical apprentices was brought under the
purview of the amended Apprenticeship Act of 1973. The scheme is implemented by
D.G.E.T. with the assistance of six regional directorates of apprenticeship training (RDATs)
located at Calcutta, Bombay, Madras, Kanpur, Hyderabad and Faridabad. The State
1972 Apprentices (Amendment) Bill 1971
(passed by Rajya Sabha); Pre-release
training of other ranks in Indian
Army in Industrial Training
Institutes.
1992 Regional Vocational
Training Institute for
Women at Indore &
Allahabad.
1974 Advanced Training Institute for
Electronics and Process
Instrumentation. Hyderabad,
Apprentices Act as amended came
into force w.e.f.01.12.1974
1992 Apex Hi-Tech Institute at
Bangalore.
1977 Advanced Vocational Training
Scheme; National Vocational
Training Institute Women, New
Delhi; and Regional Vocational
Training Institutes for Women at
Bombay and Bangalore.
1993 RVTI Vadodara;
Sanctioned RVTI J aipur.

DBA 1748
NOTES
Governments and UT administrators are responsible for implementing the scheme in the
respective departments, P.S.Us and private undertakings. The duration of training for trade
apprentices varies fromsix months to four years, depending on the requirements of trade.
The educational qualifications for apprentices vary from 8
th
pass or equivalent to higher
secondary, P.U.C. or equivalent. Till October 1993, the numbers of trades covered under
the Act were 147, the number of industries having the scheme was 6,158, the seats located
were 43,100 and the numbers of seats utilized were 20,976 only. The syllabi for training
under the Apprenticeship Act, 1961 are periodically reviewed by the trade committees
keeping in view the technological requirement of industry. The apprentices receive a stipend
varying between Rs. 460 and Rs. 1,120/- per month, depending on their skill and programme
undertaken.
As on 30
th
June, 1993, there were 20,976 graduates and technician apprentices
undergoing training, out of which 5,114 belonged to weaker sections of society, namely,
SC-1217, ST-258, minorities 1,270, women 2,317 and physically-handicapped 52.
3.10.1 6 Part-Time Training for Industrial Workers
The scheme for imparting part-time training was introduced in 1958 with a view to
improve knowledge and skill of workers who did not have the benefit of systematic training
in institutes. Under the scheme, the workers, irrespective of their age but with two years of
work experience, are sponsored by their employers for the course. The duration of training
is of two years and it is organized during evening hours. The training programme is conducted
at the Central Training Institute of Madras, 5 ATIs and various ITIs.
3.10.1.7 Vocational Training Programme for Women
A special project for the development of women workers was undertaken by the
Government in 1977 with the assistance the Swedish International Development Authority
(SIDA) and Implemented through the ILO. The basic objectives of this project is to assess
the training needs of women workers, both in urban and rural areas and to upgrade the
Central Training Institute for Women Instructors, New Delhi into the National Vocational
Training Institute (NVTI) for women.
3.11 EVALUATION OF THE TRAINING SCHEMES
The study group of the National Commission on Labour has made many observations
on the working of the various training schemes for workers. Some of the important ones
are:
(a) Substantial training capacities have remained unutilized.
(b) No new trades have been added.
(c) The training programmes do not take into account local and regional needs.
NOTES
(d) Three has not been adequate expansion in some trades in which there has been a
persistent shortage.
(e) The selection of trainees is made by inexperienced and non-technical persons and
considerations other than the suitability of the candidates become important.
(f) Many instructors do not have any experience of working conditions and production
techniques in industry.
(g) The quality of training is poor, which may be due to lack of counseling arrangements.
(h) The training provided does not conform to the needs of industries and the rapid
expansion of the training programme.
QUESTIONS FOR DISCUSSION
1. Explain the concept of Labour Welfare
2. What are the thrust areas of Labour training ?
3. List a few of the special welfare schemes for Labour initiated by the Government
of India
4. Explain the statutory welfare measures which an Industry is bound to provide to
labour under the Factories Act, 1948
5. What are the Labour Welfare Facilities under Welfare Funds ?
6. What are the objectives and techniques of labour education ?
7. Enumerate some special category programmes for the workers of India
8. Explain the training schemes offered to labour under the Director-General of
Employment and Training (DGET)
9. What is the commentary given by the study group of the National Commission of
Labour (NCL) on the Evaluation of the training schemes ?
DBA 1748
NOTES
NOTES
UNIT IV
INDUSTRIAL SAFETY
Learning Objectives
Industrial Safety
Safety Organization
Safety Committees
Statutory Safety Provisions
Statutory Health Measures
Hazardous Processes
Hazardous Occupations
Appraisal Committees
Occupational Health
Notifiable Diseases
Psychological Counselling
Industrial Safety
4.1 INTRODUCTION
Industrial accidents are mainly due to human failure somewhere in the claim of
circumstances which lead to injury, we find the human factor. Specialist sections of
management engineers, electricians, designers, work study officers are often lacking in
an appreciation of the need to apply the principles of accident prevention to their work.
Unsafe method accounts for a very high proportion of accidents. Therefore safety must
be an integral part of any industrial undertaking; it must be built in at the design stage, in
production planning and in operator training. The challenge of true of mind by efficient and
regular safety training for all levels of management and worker. The aimmust be to make
every individual in industry have more regard not only for his own personal safety, but also
for the safety of others.
DBA 1748
NOTES
4.2 FEATURES OF SAFETY ORGANIZATION
Many persons influence safety directly. The chief executive, production managers,
maintenance personnel or industrial relations employees. The plant physician the supervisor
and production employee can affect safety qualitatively. Factors that govern plant safety
effectiveness included choice of equipment, procedures and materials; budgets, the selection
of personnel, the kind of leadership provided, and the work habits of the individual. When
a safety specialist is employed to direct the plant safety programme his function usually is
to assist line managers to control the safety of their operations. Ordinarily he does not
assure any management prerogative but, develops information and materials which enable
managers to optimize the chemical Industry are:
A. Management participation safety programme. (Declaration of company safety
policy)
B. Supervisory responsibility for employee safety. (Each member of the supervisory
staff is held responsible for safety).
C. Assignment of staff functions to safety personnel.
a. Safety department, safety engineer of other designated personnel given recognition
and responsibility
b. Duties include correlation of accident prevention activities, promoting the safety
programme.
D. Provision for safe working conditions, building and equipment
c. Establishment of engineering standards.
d. Review of plans for new processes or equipment from safety and fie protection
engineering point of view.
e. Industrial hygiene surveys to evaluation potential chemical exposure hazards. Safety
education and safety training
f. Education of supervisory personnel to assist them in carrying out their assigned
safety responsibilities.
g. Employee education (New employee safety induction programmes)
h. Development of safety consciousness in all employees (use of bulletins, posters,
films, and other visual aids).
Safety department should have a reasonable Central Location near the dispensary
if possible, and with sufficient space available to provide for group meetings. Facilities
must be available for strong and displaying samples of safety equipment, posters, safe-
practice references, equipment catalogs and for the necessary records, files and charts of
the department.
4.3 SAFETY COMMITTEES
A safety committee or group of plant committees is common to many plant safety
organizations. They are subject to the usual problems of committee operation. When safety
NOTES
committees are established they require executive initiative. The committee size should be
kept small for effective work but large enough to include all involved in plaints operation.
Co-ordination of the committee activities, encouragement of their effectiveness, and provision
of assistance in their studies are leading functions of chief executive of safety.
4.4 ACCIDENT PREVENTION PROGRAMME
Basic steps in safety Programme
In industries, many plans, some of them far reaching, have been formulated for the
prevention of accidents. Some of the useful plans are based on fundamental principles
which start with simple steps undertaken usually in the following order.
(1) Obtain co-operation of plant manager: The managers desire for safety
achievement must be clearly visible through his action to achieve it.
(2) Obtain co-operation of other Heads of Departments: The other heads of
departments must make safety an integral part of the operating organization.
(3) Analyze Accident records: Accident reports for the past year or two should be
analyzed to earn, if possible, the how, who, where, when and why of each accident.
(4) Hold meetings of Operation Executives: All supervisors, sectional heads and
operating heads should than be summoned to a general meeting presided by chief
of safety.
(5) Organize Education Work Formulate a programme to maintain interest and supply
information on safety to management supervisors and workers.
4.5 ROLE OF SAFETY DIRECTOR
One man must be responsible for development and codification of safety information,
counseling managers on safety implementation methods, and developing progress
measurement data in every plant regardless of its size or the type of safety organization. He
may be called safety engineer, safety specialist, safety inspector, safety manger of safety
director. The chief operating executive in effect directs the plant safety effort. A safety
directors actual position in the plant organization varies with the general organization of
the individual plant. The following are general functions performed by the safety director
whether he is a line executive or head of a separate department.
4.6 STATUTORY SAFETY PROVISIONS
The statutory safety provisions as applicable to factories in India are found in sections
21 through 40 of the Factories Act, 1948. A detailed version of each of these sections are
listed below. The number mentioned in the right hand extreme refers to the actual number
of section as found in the Act.
DBA 1748
NOTES
Section 21. FENCING OF MACHINERY
(1) In every factory the following, namely,
(i) every moving part of a prime mover and every flywheel connected to a prime
mover, whether the prime mover or flywheel is in the engine house or not;
(ii) the headrace and tailrace of every water-wheel and water turbine;
(iii) any part of a stock-bar which projects beyond the head stock of a lathe; and
(iv)unless they are in such position or of such construction as to be safe to every
person employed in the factory as they would be if they were securely fenced, the
following, namely
a. every part of an electric generator, a motor or rotary converter;
b. every part of transmission machinery; and
c. every dangerous part of any other machinery shall be securely fenced by
safeguards of substantial construction which shall be constantly maintained
and kept in position while the parts of machinery they are fencing are in
motion or in use:
Provided that for the purpose of determining whether any part of machinery is in such
position or is of such construction as to be safe as aforesaid, account shall not be taken of
any occasion when
(i) it is necessary to make an examination of any part of the machinery aforesaid while it
is in motion or, as a result of such examination, to carry out lubrication or other adjusting
operation while the machinery is in motion, being an examination or operation which it
is necessary to be carried out while that part of the machinery is in motion, or
(ii) in the case of any part of a transmission machinery used in such process as may be
prescribed (being a process of a continuous nature the carrying on of which shall be,
or is likely to be, substantially interfered with by the stoppage of that part of the
machinery), it is necessary to make an examination of such part of the machinery while
it is in motion or, as a result of such examination, to carry out any mounting or shipping
of belts or lubrication or other adjusting operation while the machinery is in motion,
and such examination or operation is made or carried out in accordance with the
provisions of sub-section (1) of section 22.
2. The State Government may by rules prescribe such further precautions as it may
consider necessary in respect of any particular machinery or part thereof, or exempt,
subject to such condition as may be prescribed, for securing the safety of the workers,
any particular machinery or part thereof fromthe provisions of this section.
Section 22. WORK ON OR NEAR MACHINERY IN MOTION
1. Where in any factory it becomes necessary to examine any part of machinery referred
to in section 21, while the machinery is in motion, or, as a result of such examination, to
carry out
NOTES
a. in a case referred to in clause (i) of the proviso to sub-section (1) of section 21,
lubrication or other adjusting operation; or
b. in a case referred to in clause (ii) of the proviso aforesaid, any mounting or shipping
of belts or lubrication or other adjusting operation, while the machinery is in motion
such examination or operation shall be made or carried out only by a specially
trained adult male worker wearing tight fitting clothing (which shall be supplied by
the occupier) whose name has been recorded in the register prescribed in this
behalf and who has been furnished with a certificate of his appointment, and while
he is so engaged, - (a) such worker shall not handle a belt at a moving pulley unless
(i) the belt is not more than fifteen centimeters in width;

(ii) the pulley is normally for the purpose of drive and not merely a fly-wheel or balance
wheel (in which case a belt is not permissible);
(iii) the belt joint is either laced or flush with the belt;
(iv) the belt, including the joint and the pulley rim, are in good repair;
(v) there is reasonable clearance between the pulley and any fixed plant or structure;
(vi) secure foothold and, where necessary, secure handhold, are provided for the
operator; and
(vii)any ladder in use for carrying out any examination or operation aforesaid is securely
fixed or lashed or is firmly held by a second person.
b. without prejudice to any other provision of this Act relating to the fencing of
machinery, every set screw, bolt and key on any revolving shaft, spindle, wheel
or pinion, and all spur, wormand other toothed or friction gearing in motion with
which such worker would otherwise be liable to come into contact, shall be
securely fenced to prevent such contact.
2. No woman or young person shall be allowed to clean, lubricate or adjust any part of
a prime mover or of any transmission machinery while the prime mover or transmission
machinery is in motion, or to clean, lubricate or adjust any part of any machine if the
cleaning, lubrication or adjustment thereof would expose the woman or young person
to risk of injury fromany moving part either of that machine or of any adjacent machinery.
3. The State Government may, by notification in the official. Gazette, prohibit, in any
specified factory or class or description of factories, the cleaning, lubricating or adjusting
by any person of specified parts of machinery when those parts are in motion.
Section 23. EMPLOYMENT OF YOUNG PERSONS ON DANGEROUS
MACHINES
1. No young person shall be required or allowed to work at any machine to which this
section applies, unless he has been fully instructed as to the dangers arising in connection
with the machine and the precautions to be observed and
a. has received sufficient training in work at the machine, or
DBA 1748
NOTES
b. is under adequate supervision by a person who has a thorough knowledge and
experience of the machine. (2) Sub-section (1) shall apply to such machines as
may be prescribed by the State Government, being machines which in its opinion
are of such a dangerous character that young persons ought not to work at them
unless the foregoing requirements are complied with.
Section 24. SELF-ACTING MACHINES
No traversing part of a self-acting machine in any factory and no material carried
thereon shall, if the space over which it runs is a space over which any person is liable to
pass, whether in the course of his employment or otherwise, be allowed to run on its
outward or inward traverse within a distance of forty-five centimeters fromany fixed structure
which is not part of the machine:
Provided that the Chief Inspector may permit the continued use of a machine installed
before the commencement of this Act which does not comply with the requirements of this
section on such conditions for ensuring safety as he may think fit to impose.
Section 25. CASING OF NEW MACHINERY
1. In all machinery driven by power and installed in any factory after the commencement
of this Act,
a. every set screw, bolt or key on any revolving shaft, spindle, wheel pinion shall be
so sunk, encased or otherwise effectively guarded as to prevent danger;
b. all spur, wormand other toothed or friction gearing which does not require frequent
adjustment while in motion shall be completely encased, unless it is so situated as
to be as safe as it would be if it were completely encased.
2. Whoever sells or lets on hire or, as agent of a seller or hirer, causes or procures to be
sold on let or hire, for use in a factory any machinery driven by power which does not
comply with the provisions of Sub-section (1) or any rules made under sub-section
(3), shall be punishable with imprisonment for a termwhich may extend to three months
or with fine which may extend to five hundred rupees or with both.
3. The State Government may make rules specifying further safeguards to be provided in
respect of any other dangerous part of any particular machine or class or description
of machines.
Section 26. PROHIBITION OF EMPLOYMENT OF WOMEN AND
CHILDREN NEAR COTTON-OPENERS
No woman or child shall be employed in any part of a factory for pressing cotton in
which a cotton-opener is at work.
Provided that if the feed-end of a cotton-opener is in a room separated from the
delivery end by a partition extending to the roof or to such height as the Inspector may in
any particular case specify in writing, women and children may be employed on the side of
the partition where the feed-end is situated.
NOTES
Section 27. HOISTS AND LIFTS
(1) In every factory
(a) every hoist and lift shall be
(i) of good mechanical construction, sound material and adequate strength;
(ii) properly maintained, and shall be thoroughly examined by a competent person
at least once in every period of six months, and a register shall be kept containing
the prescribed particulars of every such examination;
b. every hoist way and lift way shall be sufficiently protected by an enclosure fitted
with gates, and the hoist or lift and every such enclosure shall be so constructed as
to prevent any person or thing frombeing trapped between any part of the hoist or
lift and any fixed structure or moving part;
c. the maximum safe working load shall be plainly marked on every hoist or lift, and
no load greater than such load shall be carried thereon;
d. the cage of every hoist or lift used for carrying persons shall be fitted with a gate
on each side from which access is afforded to a landing;
e. every gate referred to in clause (b) or clause (a) shall be fitted with interlocking or
other efficient device to secure that the gate cannot be opened except when the
cage is at the landing and that the cage cannot be moved unless the gate is closed.
(2) The following additional requirements shall apply to hoists and lifts used for carrying
persons and installed or reconstructed in a factory after the commencement of this
Act, namely : (a) where the cage is supported by rope or chain, there shall be at least
two ropes or chains separately connected with the cage and balance weight, and each
rope or chain with its attachments shall be capable of carrying the whole weight of the
cage together with its maximumload;
b. efficient devices shall be provided and maintained capable of supporting the cage
together with its maximum load in the event of breakage of the ropes, chains or
attachments;
c. an efficient automatic device shall be provided and maintained to prevent the cage
fromover-running.
3. The Chief Inspector may permit the continued use of a hoist or lift installed in a factory
before the commencement of this Act which does not fully comply with the provisions
of sub-section (1) upon such conditions for ensuring safety as he may think fit to
impose.
4. The State Government may, if in respect of any class or description of hoist or lift, it is
of opinion that it would be unreasonable to enforce any requirement of sub-sections.
(1) and (2), by order direct that such requirement shall not apply to such class or
description of hoist or lift.
DBA 1748
NOTES
Explanation : For the purposes of this section, no lifting machine or appliance shall be
deemed to be a hoist or lift unless it has a platform or cage, the direction or movement of
which is restricted by a guide or guides.
Section 28. LIFTING MACHINES, CHAINS, ROPES AND LIFTING TACKLES
1. In any factory the following provisions shall be complied with in respect of every lifting
machine (other than a hoist and lift) and every chain, rope and lifting tackle for the
purpose of raising or lowering persons, goods or materials :-
b. all parts, including the working gear, whether fixed or movable, of every lifting
machine and every chain, rope or lifting tackle shall be
(i) of good construction, sound material and adequate strength and free rom defects;
(ii) properly maintained; and
(iii) thoroughly examined by a competent person at least once in every period of twelve
months, or at such intervals as the Chief Inspector may specify in writing, and a register
shall be kept containing the prescribed particulars of every such examination;
b. no lifting machine and no chain, rope or lifting tackle shall, except for the purpose
of test, be loaded beyond the safe working load which shall be plainly marked
thereon together with an identification mark and duly entered in the prescribed
register, and where this is not practicable, a table showing the safe working loads
of every kind and size of lifting machine or, chain, rope or lifting tackle in use shall
be displayed in prominent positions on the premises;
c. while any person is employed or working on or near the wheel track of a travelling
crane in any place where he would be liable to be struck by the crane, effective
measures shall be taken to ensure that the crane does not approach within [lra-66
six metres lra-66 ] of that place.
2. The State Government may make rules in respect of any lifting machine or any chain,
rope or lifting tackle used in factories
a. prescribing further requirements to be complied with in addition to those set out in
this section;
b. providing for exemption from compliance with all or any of the requirements of
this section, where in its opinion, such compliance is unnecessary or impracticable.
3. For the purposes of this section a lifting machine or a chain, rope or lifting tackle shall
be deemed to have been thoroughly examined if a visual examination supplemented, if
necessary, by other means and by the dismantling of parts of the gear, has been carried
out as carefully as the conditions permit in order to arrive at a reliable conclusion as to
the safety of the parts examined. Explanation : In this section,
a. lifting machine means a crane, crab, winch, toggle, pulley block, gin wheel,
transporter or runway;
b. lifting tackle means any chain, sling, rope sling, hook, shackle, swivel, coupling,
socket, clamp, tray or similar appliance, whether fixed or movable, used in
connection with the raising or lowering of persons, or loads by use of lifting
machines.
NOTES
Section 29. REVOLVING MACHINERY
1. In every factory in which the process of grinding is carried on there shall be
permanently affixed to or placed near each machine in use a notice indicating the
maximumsafe working peripheral speed of every grindstone or abrasive wheel,
the speed of the shaft or spindle upon which the wheel is mounted, and the diameter
of the pulley upon such shaft or spindle necessary to secure such safe working
peripheral speed.
2. The speeds indicated in notices under sub-section (1) shall not be exceeded.
3. Effective measures shall be taken in every factory to ensure that the safe working
peripheral speed of every revolving vessel, cage, basket, flywheel, pulley, disc or
similar appliance driven by power is not exceeded.
Section 30. PRESSURE PLANT
1. If in any factory, any plant or machinery or any part thereof is operated at a
pressure above atmospheric pressure, effective measures shall be taken to ensure
that the safe working pressure of such plant or machinery or part is not exceeded.
2. The State Government may make rules providing for the examination and testing
of any plant or machinery such as is referred to in sub-section (1) and prescribing
such other safety measures in relation thereto as may in its opinion be necessary in
any factory or class or description of factories.
3. The State Government may, by rules, exempt, subject to such conditions as may
be specified therein, any part of any plant or machinery referred to in sub-section
(1) fromthe provisions of this section
Section 31. FLOORS, STAIRS AND MEANS OF ACCESS
In every factory
i. all floors, steps, stairs, passages and gangways shall be of sound construction and
properly maintained and shall be kept free fromobstructions and substances likely
to cause persons to slip, and where it is necessary to ensure safety, steps, stairs,
passages and gangways shall be provided with substantial handrails;
ii. there shall, so far as is reasonably practicable, be provided and maintained safe
means of access to every place at which any person is at any time required to
work.
iii. when any person has to work at a height fromwhere he is likely to fall, provision
shall be made, so far as is reasonably practicable, by fencing or otherwise, to
ensure the safety of the person so working.
Section 32. PITS, SUMPS, OPENINGS IN FLOORS, ETC.
1. In every factory fixed vessel, sump, tank, pit or opening in the ground or in a floor
which, by reasons of its depth, situation, construction or contents, is or may be a
source of danger, shall be either securely covered or securely fenced.
DBA 1748
NOTES
2. The State Government may, by order in writing, exempt, subject to such conditions as
may be prescribed, any factory or class or description of factories in respect of any
vessel, sump, tank, pit or opening fromcompliance with the provisions of this section.
Section 33. EXCESSIVE WEIGHTS
1. No person shall be employed in any factory to lift, carry or move any load so heavy as
to be likely to cause him injury.
2. The State Government may make rules prescribing the maximumweights which may
be lifted, carried or moved by adult men, adult women, adolescents and children
employed in factories or in any class or description of factories or in carrying on any
specified process.
Section 34. PROTECTION OF EYES
In respect of any such manufacturing process carried on in any factory as may be
prescribed, being a process which involves
a. risk of injury to the eyes from particles or fragments thrown off in the course of
the process, or
b. risk to the eyes by reason of exposure to excessive light, the State Government
may by rules require that effective screens or suitable goggles shall be provided
for the protection of persons employed on, or in the immediate vicinity of, the
process.
Section 35. PRECAUTIONS AGAINST DANGEROUS FUMES, GASES, ETC.
1. No person shall be required or allowed to enter any chamber, tank, vat, pit, pipe,
flue or other confined space in any factory in which any gas, fume, vapour or dust
is likely to be present to such an extent as to involve risk to persons being overcome
thereby, unless it is provided with a manhole of adequate size or other effective
means of egress.
2. No person shall be required or allowed to enter any confined space as is referred
to in sub-section (1), until all practicable measures have been taken to remove
any gas, fume, vapour or dust, which may be present so as to bring its level within
the permissible limits and to prevent any ingress of such gas, fume, vapour or dust
and unless
a. a certificate in writing has been given by a competent person, based on a test
carried out by himself that the space is reasonably free fromdangerous gas,
fume, vapour or dust; or
b. such person is wearing suitable breathing apparatus and a belt securely attached
to a rope the free end of which is held by a person outside the confined space.
NOTES
Section 36 A. PRECAUTIONS REGARDING THE USE OF PORTABLE
ELECTRIC LIGHT
In any factory
a. no portable electric light or any other electric appliance of voltage exceeding
twenty-four volts shall be permitted for use inside any chamber, tank, vat, pit,
pipe, flue or other confined space unless adequate safety devices are provided;
and
b. if any inflammable gas, fume or dust is likely to be present in such chamber, tank,
vat, pit, pipe, flue or other confined space, no lamp or light other than that of
flame-proof construction shall be permitted to be used therein.
Section 37. EXPLOSIVE OR INFLAMMABLE DUST, GAS, ETC
1. Where in any factory any manufacturing process produces dust, gas, fume or vapour
of such character and to such extent as to be likely to explode to ignition, all practicable
measures shall be taken to prevent any such explosion by
a. effective enclosure of the plant or machinery used in the process;
b. removal or prevention of the accumulation of such dust, gas, fume or vapour;
c. exclusion or effective enclosure of all possible sources of ignition.
2. Where in any factory the plant or machinery used in a process such as is referred to in
sub-section (1) is not so constructed as to withstand the probable pressure which such
an explosion as aforesaid would produce, all practicable measures shall be taken to
restrict the spread and effects of the explosion by the provisions in the plant or machinery
of chokes, baffles, vents or other effective appliances.
3. Where any part of the plant or machinery in a factory contains any explosive or
inflammable gas or vapour under pressure greater than atmospheric pressure, that part
shall not be opened except in accordance with the following provisions, namely :-
a. before the fastening of any joint of any pipe connected with the part of the fastening
of the cover of any opening into the part is loosened, any flow of the gas or
vapour into the part of any such pipe shall be effectively stopped by a stop valve
or other means;
b. before any such fastening as aforesaid is removed, all practicable measures shall
be taken to reduce the pressure of the gas or vapour in the part or pipe to
atmospheric pressure;
c. where any such fastening as aforesaid has been loosened or removed effective
measures shall be taken to prevent any explosive or inflammable gas or vapour
fromentering the part of pipe until the fastening has been secured, or, as the case
may be, securely replaced : Provided that the provisions of this sub-section shall
not apply in the case of plant or machinery installed in the open air.
4. No plant, tank or vessel which contains or has contained any explosive or inflammable
substance shall be subjected in any factory to any welding, brazing, soldering or cutting
DBA 1748
NOTES
operation which involves the application of heat unless adequate measures have first
been taken to remove such substance and any fumes arising therefrom or to render
such substance and fumes non-explosive or non-inflammable, and no such substance
shall be allowed to enter such plant, tank or vessel after any such operation until the
metal has cooled sufficiently to prevent any risk of igniting the substance.
5. The State Government may by rules exempt, subject to such conditions as may be
prescribed, any factory or class or description of factories fromcompliance with all or
any of the provisions of this section.
Section 38. PRECAUTIONS IN CASE OF FIRE
(1) In every factory, all practicable measures shall be taken to prevent outbreak of fire and
its spread, both internally and externally, and to provide and maintain
a. safe means of escape for all persons in the event of a fire,
b. the necessary equipment and facilities for extinguishing fire.
(2) Effective measures shall be taken to ensure that in every factory all the workers are
familiar with the means of escape in case of fire and have been adequately trained in
the routine to be followed in such cases.
(3) The State Government may make rules, in respect of any factory or class or description
of factories, requiring the measures to be adopted to give effect to the provisions of
sub-sections (1) and (2).
(4) Notwithstanding anything contained in clause (a) of sub-section (1) or sub-section (2),
if the Chief Inspector, having regard to the nature of the work carried on in any factory,
the construction of such factory, special risk to life or safety, or any other circumstances,
is of the opinion that the measures provided in the factory, whether as prescribed or
not, for the purposes of clause (a) of sub-section (1) or sub-section (2), are inadequate,
he may, by, order in writing, require that such additional measures as he may consider
reasonable and necessary, be provided in the factory before such date as is specified
in the order.
Section 39. POWER TO REQUIRE SPECIFICATIONS OF DEFECTIVE
PARTS OR TESTS OF STABILITY
If it appears to the Inspector that any building or part of a building or any part of the
ways, machinery or plant in a factory is in such a condition that it may be dangerous to
human life or safety, he may serve on the occupier or manager or both of the factory an
order in writing requiring him before a specified date
a. to furnish such drawings, specifications and other particulars as may be necessary
to determine whether such building, ways, machinery or plant can be used with
safety, or
b. to carry out such test in such manner as may be specified in the order, and to
inform the Inspector of the results thereof.
NOTES
Section 40. SAFETY OF BUILDINGS AND MACHINERY
(1) If it appears to the Inspector that any building or part of a building or any part of
the ways, machinery or plant in a factory is in such a condition that it is dangerous
to human life or safety, he may serve on the occupier or manager or both of the
factory an order in writing specifying the measures which in his opinion should be
adopted, and requiring them to be carried out before a specified date.
(2) If it appears to the Inspector that the use of any building or part of a building or
any part of the ways, machinery or plant in a factory involves imminent danger to
human life or safety, he may serve on the occupier or manager or both of the
factory an order in writing prohibiting its use until it has been properly repaired or
altered.
Section 40 A. MAINTENANCE OF BUILDINGS
If it appears to the Inspector that any building or part of a building in a factory is in
such a state of disrepair as is likely to lead to conditions detrimental to the health and
welfare of the workers, he may serve on the occupier or manager or both of the factory an
order in writing specifying the measures which in his opinion should be taken and requiring
the same to be carried out before such date as is specified in the order.
Section 40 B. SAFETY OFFICERS
(1) In every factory, -
(i) wherein one thousand or more workers are ordinarily employed, or
(ii) wherein, in the opinion of the State Government, any manufacturing process or
operation is carried on, which process or operation involves any risk of bodily
injury, poisoning or disease, or any other hazard to health, to the persons employed
in the factory, the occupier shall, if so required by the State Government by
notification in the Official Gazette, employ such number of Safety Officers as may
be specified in that notification.
(2) The duties, qualifications and conditions of service of Safety Officers shall be such
as may be prescribed by the State Government.
Section 41. POWERS TO MAKE RULE TO SUPPLEMENT THIS CHAPTER
The State Government may make rules requiring the provision in any factory or in any
class or description of factories of such further devices and measures for securing the
safety of persons employed therein as it may deem necessary.
4.7 WORKERS HEALTH
4.7.1 Statutory Health Measures
The Factories Act, 1948 comprises 11 chapters and 120 sections with a schedule
listing notifiable diseases. Sections 11 to 20 of The Factories Act, 1948 list the Statutory
Health measures to be provided for its workers. They are as follows: The number mentioned
in the left extreme are the actual section number as found in the Act.
DBA 1748
NOTES
Section 11. CLEANLINESS
(2) Every factory shall bekept clean and free from effluvia arising from any drain,
privy or other, nuisance, and in particular
a. accumulations of dirt and refuse shall be removed daily by sweeping or by any
other effective method from the floors and benches of workrooms and from
staircases and passages, and disposed of in a suitable manner;
b. the floor of every workroom shall be cleaned at least once in every week by
washing, using disinfectant, where necessary, or by some other effective method;
c. where a floor is liable to become wet in the course of any manufacturing process
to such extent as is capable of being drained, effective means of drainage shall be
provided and maintained;
d. all inside walls and partitions, all ceilings or tops of rooms and all walls, sides and
tops of passages and staircases shall - (i) where they are painted otherwise than
with washable water-paint or varnished, be repainted or revarnished least once in
every period of five years;
e. where they are painted with washable water paint, be repainted with at least one
coat of such paint at least once in every period of three years and washed at least
once in every period of six months;
(ii) where they are painted or varnished or where they have smooth impervious surfaces,
be cleaned at least once in every period of fourteen months by such method as may be
prescribed;
(iii) in any other case, be kept whitewashed or colourwashed, and the whitewashing or
colourwashing shall be carried out at least once in every period of fourteen months;
(dd) all doors and window frames and other wooden or metallic frame work and
shutters shall be kept painted or varnished and the painting or varnishing shall be carried
out at least once in every period of five years;
(e) the dates on which the processes required by clause (d) are carried out shall be
entered in the prescribed register.
(2) If, in view of the nature of the operations carried on in a factory or class or description
of factories or any part of a factory or class or description of factories, it is not
possible for the occupier to comply with all or any of the provisions of sub-section (1),
the State Government may by order exempt such factory or class or description of
factories or part fromany of the provisions of that sub-section and specify alternative
methods for keeping the factory in a clean state.
Section 12. DISPOSAL OF WASTES AND EFFLUENTS
(1) Effective arrangements shall be made in every factory for the treatment of wastes
and effluents due to the manufacturing process carried on therein, so as to render
them innocuous, and for their disposal.
NOTES
(2) The State Government may make rules prescribing the arrangements to be made
under sub-section (1) or requiring that the arrangements made in accordance with
sub-section (1) shall be approved by such authority as may be prescribed
Section 13. VENTILATION AND TEMPERATURE
Effective and suitable provision shall be made in every factory for securing and
maintaining in every workroom
(a) adequate ventilation by the circulation of fresh air, and
(b) such a temperature as will secure to workers therein reasonable conditions of
comfort and prevent injury to health; and in particular, -
(ii) walls and roofs shall be of such material and so designed that such temperature
shall not be exceeded but kept as low as practicable;
(iii) where the nature of the work carried on in the factory involves, or is likely to
involve, the production of excessively high temperatures such adequate measures
as are practicable shall be taken to protect the workers therefrom, by separating
the process which produces such temperatures fromthe workroom, by insulating
the hot parts or by other effective means.
(2) The State Government may prescribe a standard of adequate ventilation and reasonable
temperature for any factory or class or description of factories or parts thereof and
direct that [ lra-48 proper measuring instruments, at such places and in such position
as may be specified, shall be provided and such records, as may be prescribed, shall
be maintained;
(3) If it appears to the Chief Inspector that excessively high temperatures in any factory
can be reduced by the adoption of suitable measures, he may, without prejudice to the
rules made under sub-section (2), serve on the occupier, an order in writing specifying
the measures which, in his opinion, should be adopted, and requiring themto be carried
out before a specified date.
Section 14. DUST AND FUME
(1) In every factory in which, by reason of the manufacturing process carried on, there is
given off any dust or fume or other impurity of such a nature and to such an extent as
is likely to be injurious or offensive to the workers employed therein, or any dust in
substantial quantities, effective measures shall be taken to prevent its inhalation and
accumulation in any workroom, and if any exhaust appliance is necessary for this
purpose, it shall be applied as near as possible to the point of origin of the dust, fume
or other impurity, and such point shall be enclosed so far as possible.
(2) In any factory no stationary internal combustion engine shall be operated unless the
exhaust is conducted into the open air, and no other internal combustion engine shall
be operated in any room unless effective measures have been taken to prevent such
accumulation of fumes therefromas are likely to be injurious to workers employed in
the room.
DBA 1748
NOTES
Section 15. ARTIFICIAL HUMIDIFICATION
In respect of all factories in which the humidity of the air is artificially increased, the
State Government may make rules, -
(a) prescribing standards of humidification;
(b) regulating the methods used for artificially increasing the humidity of the air,
(c) directing prescribed tests for determining the humidity of the air to be correctly
carried out and recorded;
(d) prescribing methods to be adopted for securing adequate ventilation and cooling
of the air in the workrooms.
(2) In any factory in which the humidity of the air is artificially increased, the water used for
the purpose shall be taken froma public supply, or other source of drinking water, or
shall be effectively purified before it is so used.
(3) If it appears to an Inspector that the water used in a factory for increasing humidity
which is required to be effectively purified under sub-section (2) is not effectively
purified he may serve on the manager of the factory an order in writing, specifying the
measures which in his opinion should be adopted, and requiring themto be carried out
before specified date.
Section 16. OVERCROWDING
(1) No roomin any factory shall be overcrowded to an extent injurious to the health of the
workers employed therein.
(2) Without prejudice to the generality of sub-section (1), there shall be in every workroom
of a factory in existence on the date of the commencement of this Act at least 9.9 cubic
metres and of a factory built after the commencement of this Act at least 14.2 cubic
metres or space for every worker employed therein, and for the purposes of this sub-
section no account shall be taken of any space which is more than 4.2 metres above
the level of the floor of the room.
(3) If the Chief Inspector by order in writing so requires, there shall be posted in each
workroomof a factory a notice specifying the maximumnumber of workers who may,
in compliance with the provisions of this section, be employed in the room.
(4) The Chief Inspector may by order in writing exempt, subject to such conditions, if any,
as he may think fit to impose, any workroomfrom the provisions of this section, if he
is satisfied that compliance therewith in respect of the room is unnecessary in the
interest of the health of the workers employed therein.
Section 17. LIGHTING
(1) In every part of a factory where workers are working or passing there shall be provided
and maintained sufficient and suitable lighting, natural or artificial, or both.
NOTES
(2) In every factory all glazed windows and skylights used for the lighting of the workroom
shall be kept clean on both the inner and outer surfaces and, so far as compliance with
the provisions of any rules made, under sub-section (3) of section 13 will allow, free
fromobstruction.
(3) In every factory effective provision shall, so far as is practicable, be made for the
prevention of
(a) glare, either directly from a source of light or by reflection from a smooth or
polished surface;
(b) b) the formation of shadows to such an extent as to cause eye-strain or the risk of
accident to any worker.
(4) The State Government may prescribe standards of sufficient and suitable lighting for
factories or for any class or description of factories or for any manufacturing process.
Section 18. DRINKING WATER
(1) In every factory effective arrangements shall be made to provide and maintain at suitable
points conveniently situated for all workers employed therein a sufficient supply of
wholesome drinking water.
(2) All such points shall be legibly marked drinking water in a language understood by a
majority of the workers employed in the factory, and no such point shall be situated
within six metres of any washing place, urinal, latrine, spittoon, open drain carrying
sullage or effluent or any other source of contamination unless a shorter distance is
approved in writing by the Chief Inspector.
(3) In every factory wherein more than two hundred and fifty workers are ordinarily
employed, provisions shall be made for cooling drinking water during hot weather by
effective means and for distribution thereof.
(4) In respect of all factories or any class or description of factories the State Government
may make rules for securing compliance with the provisions of sub-sections (1), (2)
and (3) and for the examination by prescribed authorities of the supply and distribution
of drinking water in factories.
Section 19. LATRINES AND URINALS
(1) In every factory
(a) sufficient latrine and urinal accommodation of prescribed types shall be provided
conveniently situated and accessible to workers at all times while they are at the
factory;
(b) separate enclosed accommodation shall be provided for male and female workers;
(c) such accommodation shall be adequately lighted and ventilated, and no latrine or
urinal shall, unless specially exempted in writing by the Chief Inspector, communicate
with any workroomexcept through an intervening open space or ventilated passage;
(d) all such accommodation shall be maintained in a clean and sanitary condition at all
times;
DBA 1748
NOTES
(e) sweepers shall be employed whose primary duty it would be to keep clean latrines,
urinals and washing places.
(2) In every factory wherein more than two hundred and fifty workers are ordinarily
employed
(a) all latrine and urinal accommodation shall be of prescribed sanitary types;
(b) the floors and internal walls, up to a height of ninety centimeters, of the latrines and
urinals and the sanitary blocks shall be laid in glazed titles or otherwise finished to
provide a smooth polished impervious surface;
(c) without prejudice to the provisions of clauses (d) and (e) of sub-section (1), the
floors, portions of the walls and blocks so laid or finished and the sanitary pans of
latrines and urinals shall be thoroughly washed and cleaned at least once in every
seven days with suitable detergents or disinfectants or with both.
(3) The State Government may prescribe the number of latrines and urinals to be provided
in any factory in proportion to the numbers of male and female workers ordinarily
employed therein, and provide for such further matters in respect of sanitation in factories,
including the obligation of workers in this regard, as it considers necessary in the interest
of the health of the workers employed therein.
Section 20. SPITTOONS
(1) In every factory there shall be provided a sufficient number of spittoons in convenient
places and they shall be maintained in a clean and hygienic condition.
(2) The State Government may make rules prescribing the type and the number of
spittoons to be provided and their location in any factory and provide for such
further matters relating to their maintenance in a clean and hygienic condition.
(3) No person shall spit within the premises of a factory except in the spittoons provided
for the purpose and a notice containing this provision and the penalty for its violation
shall be prominently displayed at suitable places in the premises.
(4) Whoever spits in contravention of sub-section (3) shall be punishable with fine not
exceeding five rupees.
4.8 HAZARDOUS PROCESSES
The constitution of Hazardous process is given in The Schedule which forms part of
the Factories Act, 1948. This schedule is divided into two parts, namely Part A and Part
B which are given below:
THE SCHEDULE
PART A
Hazardous Occupations
Any occupation concerned with: -
1. Transport of passengers, goods or mails by railways;
NOTES
2. Cinder picking, clearing of an ash pit or building operation in the railway premises;
3. Work in a catering establishment at a railway station, involving the movement of a
vendor or any other employee of the establishment fromthe one platformto another
or in to or out of a moving train;
4. Work relating to the construction of a railway station or with any other work
where such work is done in close proximity to or between the railway lines;
5. A port authority within the limits of any port;
6. Work relating to selling of crackers and fireworks in shops with temporary licenses;
7. Abattoirs/Slaughter House;
8. Automobile workshops and garages;
9. Foundries;
10. Handling of toxic or inflammable substances or explosives;
11. Handloomand power loom industry;
12. Mines (underground and under water) and collieries;
13. Plastic units and fiberglass workshops;
14. Domestic workers or servants and
15. Dhabas (roadside eateries), restaurants, hotels, motels, tea shops, resorts, spas or
other recreational centers.
PART B
INDUSTRIES WHEREIN THE MANUFACTURING PROCESS ARE
HAZARDOUS
1. Beedi - making.
2. Carpet - weaving.
3. Cement manufacture, including bagging of cement.
4. Cloth printing, dyeing and weaving.
5. Manufacture of matches, explosives and fireworks.
6. Mica - cutting and splitting.
7. Shellac manufacture.
8. Soap manufacture.
9. Tanning.
10. Wool - cleaning.
11. Building and construction industry.
12. Manufacture of slate pencils (including packing).
13. Manufacture of products fromagate.
DBA 1748
NOTES
14. Manufacturing processes using toxic metals and substances such as lead, mercury,
manganese, chromium, cadmium, benzene, pesticides and asbestos.
15. hazardous Process as defined in section 2 (cb) and dangerous Operations as
noticed in rules made under section 87 of the Factories Act, 1948 (63 of 1948)
16. Printing as defined in Section 2(k)(vi) of the Factories Act, 1948 (63 of 1948)
17. Cashew and cashew nut descaling and processing.
18. Soldering processes in electronic industries.
19. 19.Aggarbatti manufacturing.
20. Automobile repairs and maintenance including processes incidental
21. thereto namely, welding, lathe work, dent beating and painting.
22. Brick kilns and Roof tiles units.
23. Cotton ginning and processing and production of hosiery goods.
24. Detergent manufacturing.
25. Fabrication workshops (ferrous and non ferrous)
26. Gemcutting and polishing.
27. Handling of chromite and manganese ores.
28. Jute textile manufacture and coir making.
29. Lime Kilns and Manufacture of Lime.
30. Lock Making.
31. Manufacturing processes having exposure to lead such as primary and secondary
smelting, welding and cutting of lead-painted metal constructions, welding of
galvanized or zinc silicate, polyvinyl chloride, mixing (by hand) of crystal glass
mass, sanding or scraping of lead paint, burning of lead in enameling workshops,
lead mining, plumbing, cable making, wiring patenting, lead casting, type founding
in printing shops. Store type setting, assembling of cars, shot making and lead
glass blowing.
32. Manufacture of cement pipes, cement products and other related work.
33. Manufacture of glass, glass ware including bangles, florescent tubes, bulbs and
other similar glass products.
34. Manufacture of dyes and dye stuff.
35. Manufacturing or handling of pesticides and insecticides.
36. Manufacturing or processing and handling of corrosive and toxic substances, metal
cleaning and photo engraving and soldering processes in electronic industry.
37. Manufacturing of burning coal and coal briquettes.
38. Manufacturing of sports goods involving exposure to synthetic materials, chemicals
and leather.
39. Moulding and processing of fiberglass and plastic.
NOTES
40. Oil expelling and refinery.
41. Paper making.
42. Potteries and ceramic industry.
43. Polishing, moulding, cutting, welding and manufacturing of brass goods in all forms.
44. Processes in agriculture where tractors, threshing and harvesting machines are
used and chaff cutting.
45. Saw mill all processes.
46. Sericulture processing.
47. Skinning, dyeing and processes for manufacturing of leather and leather products.
48. Stone breaking and stone crushing.
49. Tobacco processing including manufacturing of tobacco, tobacco paste and handling
of tobacco in any form.
50. Tyre making, repairing, re-treading and graphite benefaction.
51. Utensils making, polishing and metal buffing.
52. Zari making (all processes).
53. Electroplating;
54. Graphite powdering and incidental processing;
55. Grinding or glazing of metals;
56. Diamond cutting and polishing;
57. Extraction of slate frommines;
58. Rag picking and scavenging.
List of Industries involving hazardous processes as defined u/s 2(cb)
Of the Factories Act, 1948
1. Ferrous Metallurgical Industries
1.1. Integrated Iron and Steel
1.2 Ferrow-alloys
1.3 Special Steels
2. Non-ferrous metallurgical Industries
2.1 Primary Metallurgical Industries, namely, zinc, lead, copper, manganese
and aluminium
3. Foundries (ferrous and non-ferrous)
3.1 Castings and forging including cleaning or smoothening/roughening by sand
and shot blasting
4. Coal (including coke) industries
4.1 Coal, Lignite, Coke, etc.
DBA 1748
NOTES
4.2 Fuel Gases (including Coal Gas, Producer Gas, Water Gas)
5. Power Generating Industries
6. Pulp and paper (including paper products) industries
7. Fertilizer Industries
7.1 Nitrogenous
7.2 Phosphatic
7.3 Mixed
8. Cement Industries
8.1Portland Cement (including slag cement, puzzolona cement and their products)
9. PetroleumIndustries
9.1Oil Refining
9.2Lubricating Oils and Greases
10 Petro-chemical Industries
11 Drugs and Pharmaceutical Industries
11.1 Narcotics, Drugs and Pharmaceuticals
12 Fermentation Industries (Distilleries and Breweries)
13 Rubber (Synthetic) Industries
14 Paints and Pigment Industries
15 Leather Tanning Industries
16 Electro-plating Industries
17 Chemical Industries
17.1 Coke Oven by-products and Coaltar Distillation products
17.2 Industrial Gases (nitrogen, oxygen, acetylene, argon, carbon dioxide,
hydrogen, sulphur dioxide, nitrous oxide, halogenated hydrocarbon,
ozone, etc.)
17.3 Industrial Carbon
17.4 Alkalies and Acids
17.5 Chromates and dichromates
17.6 Leads and its compounds
17.7 Electrochemicals (metallic sodium, potassiumand magnesium,
chlorates, perchlorates and peroxides)
17.8 Electrothermal produces (artificial abrasive, calciumcarbide)
17.9 Nitrogenous compounds (cyanides, cyanamides and other nitrogenous
compounds)
17.10Phosphorous and its compounds
NOTES
17.11 Halogens and Halogenated compounds (Chlorine, Flourine,
Bromine and Iodine
17.12 Explosives (including industrial explosives and detonators and fuses)
18 Insecticides, Fungicides, Herbicides and other Pesticides Industries
19 Synthetic Resin and plastics
20 Man-made Fibre (Cellulosic and non-cellulosic) Industry
21 Manufacture and repair of electrical accumulators
22 Glass and Ceramics
23 Grinding or glaxing of metals
24 Manufacture, handling and processing of asbestos and its products
25 Extraction of oils and fats fromvegetable and animal sources
26 Manufacture, handling and use of benzene and substances containing benzene
27 Manufacturing processes and operations involving carbon disulphide
28 Dyes and Dyestuff including their intermediates
29 Highly flammable liquids and gases
4.9 STATUTORY REQUIREMENTS FOR HAZARDOUS MANUFACTURING
PROCESS
Where in a factory a manufacturing process of hazardous nature is carried on, the
factory shall compulsorily comply with sections 41A through 41H of the Factories Act,
1948. These sections are as follows:
Section 41A. CONSTITUTION OF SITE APPRAISAL COMMITTEES
(1) The State Government may, for purposes of advising it to consider applications for
grant of permission for the initial location of a factory involving a hazardous process or
for the expansion of any such factory, appoint a Site Appraisal Committee consisting
of
(a) the Chief Inspector of the State who shall be its Chairman;
(b) a representative of the Central Board for the Prevention and Control of Water
Pollution appointed by the Central Government under section 3 of the Water
(Prevention and Control of Pollution) Act, 1974 (6 of 1974);
(c) a representative of the Central Board for the Prevention and Control of Air Pollution
referred to in section 3 of the Air (Prevention and Control of Pollution) Act, 1981
(14 of 1981);
(d) a representative of the State Board appointed under section 4 of the Water
(Prevention and Control of Pollution) Act, 1974 (6 of 1974);
(e) a representative of the State Board for the Prevention and Control of Air Pollution
referred to in section 5 of the Air (Prevention and Control of Pollution) Act, 1981
(14 of 1981);
(f) a representative of the Department of Environment in the State;
DBA 1748
NOTES
(g) a representative of the Meteorological Department of the Government of India;
(h) an expert in the field of occupational health; and
(i) a representative of the Town Planning Department of the State Government, and
not more than five other members who may be co-opted by the State Government
who shall be - (i) a scientist having specialised knowledge of the hazardous process
which will be involved in the factory,
(ii) a representative of the local authority within whose jurisdiction the factory is to be
established, and (iii) not more than three other persons as deemed fit by the State
Government.
(2) The Site Appraisal Committee shall examine an application for the establishment of a
factory involving hazardous process and make its recommendation to the State
Government within a period of ninety days of the receipt of such applications in the
prescribed form.
(3) Where any process relates to a factory owned or controlled by the Central Government
or to a corporation or a company owned or controlled by the Central Government,
the State Government shall co-opt in the Site Appraisal Committee a representative
nominated by the Central Government as a member of that Committee.
(4) The Site Appraisal Committee shall have power to call for any information fromthe
person making an application for the establishment or expansion of a factory involving
a hazardous process.
(5) Where the State Government has granted approval to an application for the establishment
or expansion of a factory involving hazardous process, it shall not be necessary for an
applicant to obtain a further approval from the Central Board or the State Board
established under the Water (Prevention and Control of Pollution) Act 1974 (6 of
1974) and the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981).
Section 41 B. COMPULSORY DISCLOSURE OF INFORMATION BY THE
OCCUPIER
(1) The occupier of every factory involving a hazardous process shall disclose in the manner
prescribed all information regarding dangers, including health hazards and the measures
to overcome such hazards arising fromthe exposure to or handling of the materials or
substances in the manufacture, transportation, storage and other processes, to the
workers employed in the factory, the Chief Inspector, the local authority within whose
jurisdiction the factory is situate and the general public in the vicinity.
(2) The occupier shall, at the time of registering the factory involving a hazardous process,
lay down a detailed policy with respect to the health and safety of the workers employed
therein and intimate such policy to the Chief Inspector and the local authority and,
thereafter, at such intervals as may be prescribed, informthe Chief Inspector and the
local authority of any change made in the said policy.
(3) The information furnished under sub-section (1) shall include accurate information as
to the quantity, specifications and other characteristics of wastes and the manner of
their disposal.
NOTES
(4) Every occupier shall, with the approval of the Chief Inspector, draw up an on-site
emergency plan and detailed disaster control measures for his factory and make known
to the workers employed therein and to the general public living in the vicinity of the
factory the safety measures required to be taken in the event of an accident taking
place.
(5) Every occupier of a factory shall, - (a) if such factory engaged in a hazardous process
on the commencement of the Factories (Amendment) Act, 1987 (2 of 1987), within a
period of thirty days of such commencement; and (b) if such factory proposes to
engage in a hazardous process at any time after such commencement, within a period
of thirty days before the commencement of such process, inform the Chief Inspector
of the nature and details of the process in such form and in such manner as may be
prescribed.
(6) Where any occupier of a factory contravenes the provisions of sub-section (5), the
license issued under section 6 to such factory shall, notwithstanding any penalty to
which the occupier of factory shall be subjected to under the provisions of this Act, be
liable for cancellation.
(7) The occupier of a factory involving a hazardous process shall, with the previous
approval of the Chief Inspector, lay down measures for the handling, usage,
transportation and storage of hazardous substances inside the factory premises and
the disposal of such substances outside the factory premises and publicize themin the
manner prescribed among the workers and the general public living in the vicinity.
Section 41C. SPECIFIC RESPONSIBILITY OF THE OCCUPIER IN
RELATION TO HAZARDOUS PROCESSES
Every occupier of a factory involving any hazardous process shall - (a) maintain
accurate and up-to-date health records or, as the case may be, medical records, of the
workers in the factory who are exposed to any chemical, toxic or any other harmful
substances which are manufactured, stored, handled or transported and such records shall
be accessible to the workers subject to such conditions as may be prescribed;
(b) appoint persons who possess qualifications and experience in handling hazardous
substances and are competent to supervise such handling within the factory and to
provide at the working place all the necessary facilities for protecting the workers in
the manner prescribed : Provided that where any question arises as to the qualifications
and experience of a person so appointed, the decision of the Chief Inspector shall be
final;
(c) provide for medical examination of every worker
(i) before such worker is assigned to a job involving the handling of, or working with,
a hazardous substance, and
(ii) while continuing in such job, and after he has ceased to work in such job, at
intervals not exceeding twelve months, in such manner as may be prescribed.
DBA 1748
NOTES
Section 41D. POWER OF CENTRAL GOVERNMENT TO APPOINT
INQUIRY COMMITTEE
(1) The Central Government may, in the event of the occurrence of an extraordinary situation
involving a factory engaged in a hazardous process, appoint an Inquiry Committee to
inquire into the standards of health and safety observed in the factory with a view to
finding out the causes of any failure or neglect in the adoption of any measures or
standards prescribed for the health and safety of the workers employed in the factory
or the general public affected, or likely to be affected, due to such failure or neglect
and for the prevention and recurrence of such extraordinary situations in future in such
factory or elsewhere.
(2) The Committee appointed under sub-section (1) shall consist of a chairman and two
other members and the terms of reference of the Committee and the tenure of office of
its members shall be such as may be determined by the Central Government according
to the requirements of the situation.
(3) The recommendations of the Committee shall be advisory in nature
Section 41E. EMERGENCY STANDARDS
(1) Where the Central Government is satisfied that no standards of safety have been
prescribed in respect of a hazardous process or class of hazardous processes, or
where the standards so prescribed are inadequate, it may direct the Director-General
of Factory Advice Service and Labour Institutes or any institution specialised in matters
relating to standards of safety in hazardous processes, to lay down emergency standards
for enforcement of suitable standards in respect of such hazardous processes.
(2) The emergency standards laid down under sub-section (1) shall, until they are
incorporated in the rules made under this Act, be enforceable and have the same effect
as if they had been incorporated in the rules made under this Act.
Section 41F. PERMISSIBLE LIMITS OF EXPOSURE OF CHEMICAL AND
TOXIC SUBSTANCES
(1) The maximumpermissible threshold limits of exposure of chemical and toxic substances
in manufacturing processes (whether hazardous or otherwise) in any factory shall be of
the value indicated in the Second Schedule.
(2) The Central Government may, at any time, for the purpose of giving effect to any
scientific proof obtained fromspecialised institutions or experts in the field,, by notification
in the Official Gazette, make suitable changes in the said Schedule.
Section 41G. WORKERS PARTICIPATION IN SAFETY MANAGEMENT
(1) The occupier shall, in every factory where a hazardous process takes place, or where
hazardous substances are used or handled, set up a Safety Committee consisting of
equal number of representatives of workers and management to promote cooperation
between the workers and the management in maintaining proper safety and health at
work and to review periodically the measures taken in that behalf : Provided that the
NOTES
State Government may, by order in writing and for reasons to be recorded, exempt
the occupier of any factory or class of factories from setting up such committee.
(2) The composition of the Safety Committee, the tenure of office of its members and their
rights and duties shall be such as may be prescribed.
Section 41H. RIGHT OF WORKERS TO WARN ABOUT IMMINENT
DANGER
(1) Where the workers employed in any factory engaged in a hazardous process have
reasonable apprehension that there is a likelihood of imminent danger to their lives or
health due to any accident, they may bring the same to the notice of the occupier,
agent, manager or any other person who is in charge of the factory or the process
concerned directly or through their representatives in the Safety Committee and
simultaneously bring the same to the notice of the Inspector.
(2) It shall be the duty of such occupier, agent, manager or the person in charge of the
factory or process to take immediate remedial action if he is satisfied about the existence
of such imminent danger and send a report forthwith of the action taken to the nearest
Inspector.
(3) If the occupier, agent, manager or the person in charge referred to in sub-section (2) is
not satisfied about the existence of any imminent danger as apprehended by the workers,
he shall, nevertheless, refer the matter forthwith to the nearest Inspector whose decision
on the question of the existence of such imminent danger shall be final.
4.10 OCCUPATIONAL HAZARDS
Every occupation has its own hazards. One should take adequate and proper
precautions to save him/her. Workers of mine and other chemical companies face acute
problems of occupational hazards. Companies should look into the safety of their workers
beforehand. To have proper safety and precautionary measures against occupational hazards
is the fundamental right of all workers. The constitution of India gives immense priority to
the occupational hazards and its safety.
The constitution of India, as a part of the fundamental rights, has laid down that the
State shall direct its policy towards protection of childhood and youth against exploitation
and shall not be employed to work in any factory or mine or engaged in any hazardous
employment. The official statistics of 1983 based on a sample survey taken there are
nearly 17 million children employed in various industries below the age of 15 years. Children
are to be found in almost all sectors of urban and rural economies. Children are engaged in
almost all sectors in cities, towns and the fringe areas in the hotel industries, construction
and chemical workshops, automobile repairing and fuel stations, slate pencil industries,
slate industries, glass industries, carpet industries, gem polishing, lock making industries,
etc. This list of the industries where children are employed is very long and it is not possible
to cover all the occupations.. However, it can be said that in almost of the sectors of urban
economy children are employed. Many of the occupations listed above are hazardous in
DBA 1748
NOTES
nature and not suitable to these children .As such many of them are detrimental to the
physical and mental health of the children. So there is a serious concern of the Government
and society about those children who are working in such hazardous occupations.
The Occupational hazards that workers or children employed in s few of these
Industries are discussed below:
4.10.1 A. Match and firecracker industry in Sivakasi, Tamilnadu:
In and around, Sivakasi, Tamilnadu, there are approximately. 2700 Match works
and 200 fire factories employing more than 2 lakh workers. According to UNICEF (1986),
there are 45,269 children working in this industry. This particular estimate does not cover
home based match work in and around Sivakasi town as well as nearby areas. If they are
also covered in the present statistic then there are 1,25,000 children working in this industry.
Out of this total working children population, 80% are girls and remaining are boys. The
process of match making is labour intensive. Children are employed in various processes
of match making. Major processes are frame filling,, wax dipping, head filling, drying, box
farming & filling , side painting, band rolling, dozen packing and chemical grinding section.
They are exposed to physical, chemical and ergonomic hazards. Physical hazards include
excessive heat superadded by poor ventilation. They are also exposed to high volume
music being played by the employer so those children cannot communicate with each
other and have to be involved fully in the work. They are exposed various chemical hazards
mainly potassium chlorate, commercial sulphur, glue, black & red manganese, red
phosphorus, antimony glass powder etc.
4.11 OCCUPATIONAL HEALTH PROBLEMS
In the long run, due to synergistic effect of above mentioned chemicals in the presence
of excessive heat and lack of ventilation, and improper ergonomic condition, the major
occupational health problems which can be expected are many. Common acute occupational
illnesses observed are allergic skin diseases, allergic lung disorders, and irritation of eyes
with lacrimation, photophobia & conjunctivitis. Long working hours, exposure to excessive
heat, low illumination, improper posture, overcrowded working space, continuous sitting
in one posture can cause health problems like pain in joints, body ache, fatigue and other
muscle-skeletal problems, resulting in stunted physical growth &development etc. over
and above many work induced psychological problems cant be ruled out.
4.11.1 B. Gem polishing Industry, Jaipur, Rajshtan
Gempolishing industry is located mainly in Jaipur, the capital of Rajsthan where there
are 60,000 persons are employed in this industry. Out of total workforce nearly 20 %
(13,000) are children. The process gem making is labour intensive. Normally in the gem
industry, the child labour is being used for making of precious gems, polishing of gems and
giving thema shape. The child labour is used only for polishingthe precious stone by oxides
(usually by Chromic Oxide). Due to this there is no chance of damage to the final product.
NOTES
The workers / children engaged in this industry complain of body ache, pain in knee
and shoulder joints. This can be due to long working hours, continuous sitting in one particular
posture, improper working posture, lack of space, improper tools, improper way of carrying
out the work and lack of training. Many of the children complain frequent injuries, fissures
and cracks of their hands and fingers, especially tip of the finger. Due to very precise and
minute job, frequent complains of eyestrain cant be ruled out. This can be further aggravated
by low illumination and vitamin A deficiency. There is a exposure of chromic oxide and
other oxides being used for shining the gems. This list of the industries where children are
employed is very long and it is not possible to cover all the occupations.. However, it can
be said that in almost of the sectors of urban economy children are employed. Many of the
occupations listed above are hazardous in nature and not suitable to these children .As
such many of them are detrimental to the physical and mental health of the children. So
there is a serious concerns of the Govt. and society about those children who are working
in such hazardous occupations.
4.11.2 C. Hand made Carpet Weaving Industry, Mirzapur & Bhadoi, Uttarpradesh
The art of carpet making has spread from Kashmir to the Southern tip of India. It is
not possible to give exact statistics of workers working in these particular industries as
most of the looms are in small shades employing less than 20 children/workers. These are
not registered under shops and establishment act or factory act and technically there are
no rules and laws are being applied. But by approximation, out of total workers 80%,
15%, 5% are in Uttar Pradesh (96,000 children out of 2,40,000 total employees) Rajasthan
(12,000 children out of total 30,000 employees) Jammu & Kashmir(6,000 out of 15,000
employees) respectively. Out of total production in India, 95% is exported. Weavers are
mostly Muslims or belong to Scheduled Castes such as Khatik, Koli, Raigar, Chamar, etc.
Seventy percent of the children are boys between the ages of 6-14 years, working from
8.00 amto 6.00 pm with an hour break for lunch. They are paid very low wages. Children
having looms in the own houses are working or more than 12 hours per day.
Workers/Children are subjected to skeletal deformities, ergonomic problems, eye
sight problems and health problems due to exposure to toxic chemicals: Skeletal deformities:
The squatting position that the child must occupy on the old type of loom causes very
serious occupational health problems. If a worker is employed froma young age, the legs
may become deformed (genu valgum) or serious crippling arthritis of the knee may develop.
The deformation on the pelvis often in a restricted form, some times occur. The constant
tying of knots and the threading of the weft yarn through the warp may result in swollen
finger joints, arthritis, neuralgia, causing permanent deformities of the fingers, eye sight
disorders. The constant close attention that the weaver must give to the point of weaving
or knotting may cause considerable eye strain particularly if the lightning is inadequate.
Problemis worsened when there is vitamin A deficiency.
DBA 1748
NOTES
4.12 MENTAL HEALTH PROBLEMS
The very fine work requiring a high degree of skill and constant attention leads in
some cases to nervous illness manifesting itself in hand trembling and some times mental
troubles.
4.12.1 Slate - Stone Mines and Industry
The slate stone mines are hard stone mines located in the Markapur, northern part of
Andhra Pradesh. These mines are open, wide and deep. The stones are mined fromthese
areas and taken to the nearby villages in small pieces. These small pieces are again reshaped
in various rectangle sizes of slates.
In the above-mentioned industry, workers / children are exposed almost to each and
every process i.e. frommining of the stone to the final touch of the slate. In mining they are
likely to get minor and major accident injuries resulting in high mortality and morbidity.
Where the stones are cut in various shapes and sizes the children are exposed to dust,
which can cause not only respiratory health problems but also serious disease like silicosis.
While coloring the slate either black or red children are also exposed to the unknown
chemicals. Similarly, while making the wooden frame children might get minor and major
injuries. They are also involved in the fixing of slate with wooden frame where there are
chances of minor injuries to the hands and tip of the finger.
Environmental & Occupational Health Exposure Chart
Chart No. - 1
NOTES
4.13 NOTIFIABLE DISEASES
The Factories Act further declares certain diseases which are particularly attributable
to such industry or the manufacturing process carried out in that particular industry. Sections
89 and 90 of the Act specify them as follows:
Section 89. NOTICE OF CERTAIN DISEASES
(1) Where any worker in a factory contracts any disease specified in the Third Schedule,
the manager of the factory shall send notice thereof to such authorities, and in such
form and within such time as may be prescribed.
(2) If any medical practitioner attends on a person who is or has been employed in a
factory, and who is, or is believed by the medical practitioner to be, suffering fromany
disease, specified in the Third Schedule the medical practitioner shall without delay
send a report in writing to the office of the Chief Inspector stating
(a) the name and full postal address of the patient,
(b) the disease fromwhich he believes the patient to be suffering, and
(c) the name and address of the factory in which the patient is, or was last, employed.
(3) Where the report under sub-section (2) is confirmed to the satisfaction of the Chief
Inspector, by the certificate of a certifying surgeon or otherwise, that the person is
suffering froma disease specified in the Third Schedule, he shall pay to the medical
practitioner such fee as may be prescribed, and the fee so paid shall be recoverable as
an arrear of land revenue fromthe occupier of the factory in which the person contracted
the disease.
(4) If any medical practitioner fails to comply with the provisions of sub-section (2), he
shall be punishable with fine which may extend to one thousand rupees.
(5) The Central Government may, by notification in the Official Gazette, add to or alter the
Third Schedule and any such addition or alteration shall have effect as if it had been
made by this Act.
Section 90. POWER TO DIRECT ENQUIRY INTO CASES OF ACCIDENT
OR DISEASE
(1) The State Government may, if it considers it expedient so to do, appoint a competent
person to inquire into the causes of any accident occurring in a factory or into any case
where a disease specified in the Third Schedule has been, or is suspected to have
been, contracted in a factory, and may also appoint one or more persons possessing
legal or special knowledge to act as assessors in such inquiry.
(2) The person appointed to hold an inquiry under this section shall have all the powers of
a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purposes
of enforcing the attendance of witnesses and compelling the production of documents
and material objects, and may also, so far as may be necessary for the purposes of the
inquiry, exercise any of the powers of an Inspector under this Act; and every person
required by the person making the inquiry to furnish any information shall be deemed
to be legally bound so to do within the meaning of section 176 of the Indian Penal
Code, 1860 (45 of 1860).
DBA 1748
NOTES
(3) The person holding an inquiry under this section shall make a report to the State
Government stating the causes of the accident, or as the case may be, disease, and any
attendant circumstances, and adding any observations which he or any of the assessors
may think fit to make.
(4) The State Government may, if it thinks fit, cause to be published any report made
under this section or any extracts therefrom.
(5) The State Government may make rules for regulating the procedure as Inquiries under
this section.
Section 91. POWER TO TAKE SAMPLES
(1) An Inspector may at any time during the normal working hours of a factory, after
informing the occupier or manager of the factory or other person for the time being
purporting to be in charge of the factory, take in the manner hereinafter provided a
sufficient sample of any substance used or intended to be used in the factory, such use
being
(a) in the belief of the Inspector in contravention of any of the provisions of this
Act or the rules made thereunder, or
(b) in the opinion of the Inspector likely to cause bodily injury to, or injury to the
health of, workers in the factory.
(2) Where the Inspector takes a sample under sub-section (1), he shall, in the presence of
the person informed under that sub-section unless such person wilfully absents himself,
divide the sample into three portions and effectively seal and suitably mark them, and
shall permit such person to add his own seal and mark thereto.
(3) The person informed as aforesaid shall, if the Inspector so requires, provide the
appliances for dividing, sealing and marking the sample taken under this section.
(4) The Inspector shall
(a) forthwith give one portion of the sample to the person informed under sub-section
(1);
(b) forthwith send the second portion to a Government Analyst for analysis and report
thereon;
(c) retain the third portion for production to the Court before which proceedings, if
any, are instituted in respect of the substance.
(5) Any document purporting to be a report under the hand of any Government Analyst
upon any substance submitted to himfor analysis and report under this section, may be
used as evidence in any proceedings instituted in respect of the substance.
Section 91A. SAFETY AND OCCUPATIONAL HEALTH SURVEYS
(1) The Chief Inspector, or the Director General of Factory Advice Service and Labour
Institutes, or the Director General of Health Services, to the Government of India, or
such other officer as may be authorised in this behalf by the State Government or the
Chief Inspector or the Director General of Factory Advice Service and Labour Institutes
NOTES
or the Director General of Health Services may, at any time during the normal working
hours of a factory, or at any other time as is found by himto be necessary, after giving
notice in writing to the occupier or manager of the factory or any other person who for
the time being purports to be in charge of the factory, undertake safety and occupational
health surveys and such occupier or manager or other person shall afford all facilities
for such survey, including facilities for the examination and testing of plant and machinery
and collection of samples and other data relevant to the survey.
(2) For the purpose of facilitating surveys under sub-section (1) every worker shall, if so
required by the person conducting the survey, present himself to undergo such medical
examination as may be considered necessary by such person and furnish all information
in his possession and relevant to the survey.
(3) Any time spent by a worker for undergoing medical examination or furnishing information
under sub-section (2) shall, for the purpose of calculating wages and extra wages for
overtime work, be deemed to be time during which such worker worked in the factory.
Explanation : For the purposes of this section, the report, if any, submitted to the
State Government by the person conducting the survey under sub-section (1) shall be
deemed to be a report submitted by an Inspector under this Act.
The Third schedule of the Act lists the following dieses as notifiable diseases
THE THIRD SCHEDULE
( Sections 89 and 90)
LIST OF NOTIFIABLE DISEASES
1. Lead poisoning, including poisoning by any preparation or compound of lead or
their sequelae.
2. Lead tetra-ethyl poisoning
3. Phosphorus poisoning or its sequelae.
4. Mercury poisoning or its sequelae.
5. Manganese poisoning or its sequelae.
6. Arsenic poisoning or its sequelae.
7. Poisoning by nitrous fumes.
8. Carbon disulphide poisoning.
9. Benzene poisoning, including poisoning by any of its homologues, their nitro or
amido derivatives or its sequelae.
10. Chrome ulceration or its sequelae.
11. Anthrax.
12. Silicosis.
13. Poisoning by halogens or halogen derivatives of the hydrocarbons of the aliphatic
series.
14. Pathological manifestations due to
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NOTES
15. radium or other radio-active substances.
16. X-rays.
17. Primary epitheliomatous cancer of skin.
18. Toxic anemia.
19. Toxic jaundice due to poisonous substances.
20. Oil acne or dermatitis due to mineral oils and compounds containing mineral oil
base.
21. Byssionosis.
22. Asbestosis.
23. Occupational or contract dermatitis caused by direct contract with chemicals and
paints. These are of two types, that is primary irritants and allergic sensitizers.
24. Noise induced hearing loss (exposure to high noise levels).
25. Beriylliumpoisoning.
26. Carbon monoxide
27. Coal miners pneumoconiosis.
28. Phosgene poisoning.
29. Occupational cancer.
30. Isocyanates poisoning.
31. Toxic nephirits.
4.14 PSYCHOLOGICAL COUNSELLING
Psychological Counseling as a psychological specialty is about usually one-on-one
engagement between a trained counsellor, and a client. In terms of its formal instantiation,
its remit may involve facilitatating personal and interpersonal functioning across the life
span with a focus on emotional, social, vocational, educational, health-related,
developmental, and organizational concerns. Through the integration of theory, research,
and practice, and with sensitivity to multicultural issues, this specialty encompasses a broad
range of practices that help people improve their well-being, alleviate distress and
maladjustment, resolve crises, and increase their ability to live more highly functioning
lives.
A key distinction to draw is between counselling psychology, and the modern versions
of psycho-dynamic counselling. Though closely related to clinical psychology, counseling
psychology differs from that field in a several subtle ways. First, counseling psychologists
typically focus on less severe psychopathology (e.g., depression and anxiety), while clinical
psychologists deal with more seriously disturbed individuals (e.g., those with schizophrenia
or personality disorders). In the UK, however, there is less distinction between the types
of cases that clinical and counseling psychologists work with. The difference is emphasized
more in how they work with an individual. Second, counseling psychologists are more
NOTES
likely than clinical psychologists to assume a client-centered or humanistic theoretical
approach. Finally, counseling psychology is unique in its attention both to normal
developmental issues as well as the problems associated with physical, emotional, and
mental disorders. Despite these differences, counseling and clinical psychology are becoming
increasingly indistinguishable, leading some to suggest that these fields be combined.
Populations served by counseling psychologists include persons of all ages and cultural
backgrounds. Examples of those populations would include late adolescents or adults with
career/educational concerns and children or adults facing severe personal difficulties.
Counseling psychologists also consult with organizations seeking to enhance their
effectiveness or the well-being of their members.
Counseling psychologists adhere to the standards and ethics established by the
Psychological Association of their respective countries and the Counseling Association of
such a country. Each professional or trade association has its preferred qualification and
practitioner standards, and also suggest other requirements.
4.14.1 Councelling Methodology
Counseling psychologists participate in a range of activities including teaching, research,
psychotherapeutic and counseling practice, career development, assessment, supervision,
and consultation. They employ a variety of methods closely tied to theory and research to
help individuals, groups and organizations function optimally as well as to mediate
dysfunction/issues. Interventions may be either brief or long-term; they are often problem-
specific and goal-directed. These activities are guided by a philosophy that values individual
differences and diversity and a focus on prevention, development, and adjustment across
the life-span which includes vocational concerns. Counseling Psychology is a psychological
specialty facilitates personal and interpersonal functioning across the life span with a focus
on emotional, social, vocational, educational, health-related, developmental, and
organizational concerns. Through the integration of theory, research, and practice, and
with a sensitivity to multicultural issues, this specialty encompasses a broad range of practices
that help people improve their well-being, alleviate distress and maladjustment, resolve
crises, and increase their ability to live more highly functioning lives. Though closely related
to clinical psychology, counseling psychology differs from that field in a several subtle
ways. First, counseling psychologists typically focus on less severe psychopathology (e.g.,
depression and anxiety), while clinical psychologists deal with more seriously disturbed
individuals (e.g., those with schizophrenia or personality disorders). The difference is
emphasized more in how they work with an individual. Second, counseling psychologists
are more likely than clinical psychologists to assume a client-centered or humanistic theoretical
approach. Finally, counseling psychology is unique in its attention both to normal
developmental issues as well as the problems associated with physical, emotional, and
mental disorders. Despite these differences, counseling and clinical psychology are becoming
DBA 1748
NOTES
increasingly indistinguishable, leading some to suggest that these fields be combined.
Populations served by counseling psychologists include persons of all ages and cultural
backgrounds. Examples of those populations would include late adolescents or adults with
career/educational concerns and children or adults facing severe personal difficulties.
Counseling psychologists also consult with organizations seeking to enhance their
effectiveness or the well-being of their members.
4.14.2 Employment settings
Counseling psychologists are employed in a variety of settings depending on the
services they provide and the client populations they serve. Some are employed in colleges
and universities as teachers, supervisors, researchers, and service providers. Others are
employed in independent practice providing counseling, psychotherapy, assessment, and
consultation services to individuals, couples/families, groups, and organizations. Additional
settings in which counseling psychologists practice include community mental health centers,
Veterans Administration Medical Centers and other facilities, family services, health
maintenance organizations, rehabilitation agencies, business and industrial organizations
and consulting within firms.
QUESTIONS FOR DISCUSSION
1. What are the features of a safety organization ?
2. List some of the statutory safety provisions
3. Discuss the statutory health provisions under the factories act, 1948
4. List a few of the industries which are scheduled as to include hazardous processes
5. What is the constitution of site appraisal committee and in which of the industries
this is mandatory ?
6. What are occupational hazards ?
7. What are notifiable diseases? List a few of such diseases.
8. Safety in Industries often take a back seat Do you agree or disagree to the
statement ? Elaborate
9. If you are appointed as a safety Director of a factory what precautions would you
insist upon your management?
10. What is Psychological Councelling? What are your personal interests if you prefer
to take up such a career?
NOTES
UNIT V
WELFARE OF SPECIAL CATEGORIES OF
LABOUR
Learning Objectives
Child labour Constitutional Rights
Child Labour Technical Advisory committee
National Child Labour Project
Contract Labour
5.1 CHILD LABOUR
Introduction
The rights of a child are protected under various legislations including a mention of
themin the Constitution of India.
5.1.1. Constitutional Rights of a Child
Article 21 A of The Constitution of India, 1950
Right to Education
The State shall provide free and compulsory education to all children of the age of 6
to 14 years in such manner as the State, by law, may determine
Article 24
Prohibition of employment of children in factories, etc.
No child below the age fourteen years shall be employed in work in any factory or
mine or engaged in any other hazardous employment
Article 39
The State shall, in particular, direct its policy towards securing:-
DBA 1748
NOTES
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
Laws pertaining to the prohibition of Child Labour
1. Children (Pledging of Labour] Act (1933)
2. Employment of Children Act (1938)
3. The Bombay Shop and Establishments Act (1948)
4. Child Labour (Prohibition and Regulation Act) 1986
5. The Indian Factories Act (1948)
6. Plantations Labour Act (1951)
7. The Mines Act (1952)
8. Merchant Shipping Act (1958)
9. The Apprentice Act (1961)
10. The Motor Transport Workers Act (1961)
11. The Atomic Energy Act (1962)
12. Bidi and Cigar Workers (Condition of Employment) Act (1966)
13. State Shops and Establishments Act
5.2 THE CHILD LABOUR (PROHIBITION AND REGULATION) ACT, 1986
The Act came into force from23
rd
December 1986. Its main objectives are to prohibit
the employment of children in certain categories of industries and to regulate the conditions
of work of children in certain industries. It was amended in 1988.
(1) Scope
The Act is applicable to all establishments such as workshop, farm, residential hotels,
restaurants, eating houses, theatre or other places of public amusement where child
labour is largely employed. The Act extends to the whole of India.
Important Definitions under the Act: Workshop means any premises (including the
precincts thereof) wherein any industrial process is carried on, but does not include any
premises to which the provisions of Factories Act 1948 applies.
Occupier in relation to an establishment, an occupier means the person who has
ultimate control over the affaires of the establishment or workshop.
Appropriate government means in relation to an establishment under the control of
the Central Government or a railway administration or a major port or a mine or oilfield,
the Central Government, and in all other cases the State Governments
NOTES
Child means a person who had not completed fourteen years of age.
(2) Main Provisions of the Act
(1) Prohibition of employment of children in certain occupations and processes:
(2) No child can be employed, or permitted to work in nay of the occupations set
forth in Part A of the Schedule or in any workshop wherein any of the processes
set forth in Part B of the schedule is carried on.
(3) Hours and period of work:
(a) No child shall be allowed to work in any establishment in excess of such number
of hours as many be prescribed for such establishment or class establishment;
(b) The daily hours or work shall be so fixed that no child shall be allowed to work for
more than three hours without prior interval of an hour:
(c) The hours of work shall be so arranged that inclusive of rest interval, time spread
and the time spend in waiting for the work shall not exceed six hours a day;
(d) No child shall be allowed to work between 7. P.M and 8 P.M
(e) No child shall be allowed to work overtime; and
(f) No child shall be permitted to work in nay establishment on any day on which he
has already worked in some other establishment
(3) Weekly Holiday
Every child employed in any establishment shall be given one weekly holiday of 24
hours.
(4) Healthy and Safety
(i) The appropriate government by notification in the Official Gazette, can make rules
for health and safety of children employed or permitted to work in any establishment
or class of establishment.
(ii) Without any prejudice to the generality of the foregoing provisions, the rules for
health and safety may provided for all or any of the following matters namely;
1. Cleanliness in the place of work and its freedomfromnuisance
2. Disposal of wastes and effluents
3. Ventilation and temperature
4. Dust and fumes
5. Lighting
6. Drinking water
7. Artificial humidification
8. Latrine and urinal
9. Spittoons
10. (10) Fencing of machines
DBA 1748
NOTES
11. Work at or near machinery in motion
12. Employment of children on dangerous machines
13. Instructions training and supervision in relation to employment of children
on dangerous machines
14. Device for cutting off power
15. Self-acting machines
16. Casing of new machinery
17. Floor, stairs and means of access
18. Pits, sumps, opening in floors etc.
19. Excessive weights
20. Protection eyes
21. Explosive or inflammable dist gas etc
22. Precaution in case of fire; maintenance of buildings; and safety of buildings
and machinery.
(5) Child Labour Technical Advisory committee
The Central Government by notification in the Official Gazette may constitute a Child
Labour Technical Adivisory Committee to advise government for the purpose of occupation
and processes to be include in the Schedule. The committee shall consists of a chairman
and such other members not exceeding ten. It can meet as often as it likes to carry on its
business. The committee is empowered constitute one or more sub-committees for general
or any specific function.
(6) Power to Make Rules
The appropriate government by notification in the Official Gazette can make rules for
the proper enforcement of the Act. Such rules may provide for all or any of the following
matters namely:
(a) The termof office and the manner or filling casual vacancies of and the allowances
payable to the chairman and members of the cild labour technical advisory
committee.
(b) Number of hours for which a child worker may be required to work.
(c) Grant of certificate of age in respect of young persons in employment or seeking
employment, the medical authorities which may issue such certificate, the formof
such certificate, the charges which are required to be made in this respect and the
manner of issuance of such certificates.
(7) Appointment of Inspectors
The appropriate government may appoint inspectors for the purpose of securing
compliance of this Act.
NOTES
Penalties: Whosoever employs any child or permits any child to work in contravention
of the provision of Act shall be punishable with imprisonment of a term of not less than
three months but can be extended months but can be extended to one year or with a fine
which shall not be less than ten thousand rupees, however, it can extend to twenty thousand
rupees or with both.
5.3 INITIATIVES TOWARDS ELIMINATION OF CHILD LABOUR ACTION
PLAN AND PRESENT STRATEGY
The problem of child labour continues to pose a challenge before the nation.
Government has been taking various pro-active measures to tackle this problem. However,
considering the magnitude and extent of the problem and that it is essentially a socio-
economic probleminextricably linked to poverty and illiteracy, it requires concerted efforts
fromall sections of the society to make a dent in the problem. In 1979, the Government
formed the first committee called Gurupadswamy Committee to study the issue of child
labour and to suggest measures to tackle it. The Committee examined the problemin detail
and made some far-reaching recommendations. It observed that as long as poverty continued,
it would be difficult to totally eliminate child labour and hence, any attempt to abolish it
through legal recourse would not be a practical proposition. The Committee felt that in the
circumstances, the only alternative left was to ban child labour in hazardous areas and to
regulate and ameliorate the conditions of work in other areas. It recommended that a
multiple policy approach was required in dealing with the problems of working children.
Based on the recommendations of Gurupadaswamy Committee, the Child Labour
(Prohibition & Regulation) Act was enacted in 1986. The Act prohibits employment of
children in certain specified hazardous occupations and processes and regulates the working
conditions in others. The list of hazardous occupations and processes is progressively
being expanded on the recommendation of Child Labour Technical Advisory Committee
constituted under the Act.
In consonance with the above approach, a National Policy on Child Labour was
formulated in 1987. The Policy seeks to adopt a gradual & sequential approach with a
focus on rehabilitation of children working in hazardous occupations & processes in the
first instance. The Action Plan outlined in the Policy for tackling this problemis as follows:
LegislativeActionPlanforstrictenforcementofChildLabourActandotherlabour
laws to ensure that children are not employed in hazardous employments, and that the
working conditions of children working in non-hazardous areas are regulated in accordance
with the provisions of the Child Labour Act. It also entails further identification of additional
occupations and processes, which are detrimental to the health and safety of the children.
5.4 FOCUSING OF GENERAL DEVELOPMENTAL PROGRAMMES FOR
BENEFITING CHILD LABOUR
As poverty is the root cause of child labour, the action plan emphasizes the need to
cover these children and their families also under various poverty alleviation and employment
generation schemes of the government.
DBA 1748
NOTES
Project Based Plan of Action envisages starting of projects in areas of high concentration
of child labour. Pursuant to this, in 1988, the National Child Labour Project (NCLP)
Scheme was launched in 9 districts of high child labour endemicity in the country. The
Scheme envisages running of special schools for child labour withdrawn fromwork. In the
special schools, these children are provided formal/non-formal education along with
vocational training, a stipend of Rs.100 per month; supplementary nutrition and regular
health check ups so as to prepare them to join regular mainstream schools. Under the
Scheme, funds are given to the District Collectors for running special schools for child
labour. Most of these schools are run by the NGOs in the district.
Government has accordingly been taking proactive steps to tackle this problemthrough
strict enforcement of legislative provisions along with simultaneous rehabilitative measures.
State Governments, which are the appropriate implementing authorities, have been
conducting regular inspections and raids to detect cases of violations. Since poverty is the
root cause of this problem, and enforcement alone cannot help solve it, Government has
been laying a lot of emphasis on the rehabilitation of these children and on improving the
economic conditions of their families.
5.5 THE COVERAGE OF THE NCLP SCHEME HAS INCREASED FROM 12
DISTRICTS IN 1988 TO 100 DISTRICTS IN THE 9TH PLAN TO 250
DISTRICTS DURING THE 10TH PLAN.
Strategy for the elimination of child labour under the 10th Plan
An evaluation of the Scheme was carried out by independent agencies in coordination
with V.V. Giri National Labour Institute in 2001. Based on the recommendations of the
evaluation and experience of implementing the scheme since 1988, the strategy for
implementing the scheme during the 10th Plan was devised. It aimed at greater convergence
with the other developmental schemes and bringing qualitative changes in the Scheme.
Some of the salient points of the 10th Plan Strategy are as follows:
Focused and reinforced action to eliminate child labour in the Hazardous occupations
by the end of the Plan period.
Expansion of National Child Labour Projects to additional 150 districts.
Linking the child labour elimination efforts with the Scheme of Sarva Shiksha Abhiyan
of Ministry of Human Resource Development to ensure that children in the age group of 5-
8 years get directly admitted to regular schools and that the older working children are
mainstreamed to the formal education systemthrough special schools functioning under
the NCLP Scheme. Convergence with other Schemes of the Departments of Education,
Rural Development, Health and Women and Child Development for the ultimate attainment
of the objective in a time bound manner.
NOTES
The Government and the Ministry of Labour & Employment in particular, are rather
serious in their efforts to fight and succeed in this direction. The number of districts covered
under the NCLP Scheme has been increased from100 to 250, as mentioned above in this
note. In addition, 21 districts have been covered under INDUS, a similar Scheme for
rehabilitation of child labour in cooperation with US Department of Labour. Implementation
of this Project was recently reviewed during the visit of Mr. Steven Law, Deputy Secretary
of State, fromthe USA. For the Districts not covered under these two Schemes, Government
is also providing funds directly to the NGOs under the Ministrys Grants-in-aid Scheme
for running Special Schools for rehabilitation of child labour, thereby providing for a greater
role and cooperation of the civil society in combating this menace.
Elimination of child labour is the single largest programme in this Ministrys activities.
Apart from a major increase in the number of districts covered under the scheme, the
priority of the Government in this direction is evident in the quantumjump in budgetary
allocation during the 10th Plan. Government has allocated Rs. 602 crores for the Scheme
during the 10th Plan, as against an expenditure of Rs. 178 crores in the 9th Plan. The
resources set aside for combating this evil in the Ministry is around 50 per cent of its total
annual budget.
The implementation of NCLP and INDUS Schemes is being closely monitored through
periodical reports, frequent visits and meetings with the District and State Government
officials. The Governments commitment to achieve tangible results in this direction in a
time bound manner is also evident fromthe fact that in the recent Regional Level Conferences
of District Collectors held in Hyderabad, Pune, Mussoorie and Kolkata district-wise review
of the Scheme was conducted at the level of Secretary. These Conferences provided an
excellent opportunity to have one-to-one interaction with the Collectors, who play a pivotal
role in the implementation of these Schemes in the District. Besides, these Conferences
also helped in a big way in early operationalisation of Scheme in the newly selected 150
districts.
The Government is committed to eliminate child labour in all its forms and is moving in
this direction in a targeted manner. The multipronged strategy being followed by the
Government to achieve this objective also found its echo during the recent discussions held
in the Parliament on the Private Members Bill tabled by Shri Iqbal Ahmed Saradgi. It was
unanimously recognized therein that the problemof child labour, being inextricably linked
with poverty and illiteracy, cannot be solved by legislation alone, and that a holistic,
multipronged and concerted effort to tackle this problemwill bring in the desired results.
5.6 THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970
Scope and Coverage
The Act came into force from 10
th
February 1971. It extends to the whole of India
and applies to every establishment in which twenty or more workmen are or were, employed
on any day during the preceding twelve months as contract labour, and to every contractor
DBA 1748
NOTES
who employs or employed on any day during the preceding twelve months more than
twenty workmen. Both the Central and State Governments which administer this legislation
have the powers to apply the provision of the Act to any establishment or contractor
employing even less than workmen after giving at least two months notice of their intention
to do so.
The Act does not apply to establishments where work is of a casual (irregular or
occasional or intermittent (interrupted or non-continues) nature. The work performed in
an establishment is not considered to be of an intermittent nature:
(i) If it is performed for more than one hundred and twenty days in the preceding
twelve months;
(ii) It is not of seasonal character if it is performed for more than sixty days in a year.
The Act also does not cover persons employed mainly in managerial and administrative
capacities, persons employed as supervisors, drawing wages exceeding five hundred rupees
per month, and out-workers who are given materials or articles for processing of
manufacturing in their own homes, or in the premises which are not under the control and
management of the principal employer. Under this Act, a workman is considered to be
employed as control labour in or in connection with the work of an establishment when
he is hired for this work by or through a contactor with or without the knowledge of the
principal employer. The contractors covered by the Act are persons who undertake to
produce a given result of an establishment, and include sub-contractors. The Act does not
regard persons as contractors who only supply goods or articles of manufacture to an
establishment.
Administration of the Act
Through the Act is a Central legislation, yet it is administered both by the Central and
State Governments. The Central Government administers the Act in regarded to railways,
Cantonment Boards major ports, mines and oil fields, banking and insurance companies
and other establishment which are carrying an industry by the Central Government.
Establishments other than those mentioned above are the concern of State Governments
(Section 2 (1))
THE MAIN PROVISIONS OF THE ACT
The Act provides for the following
(1) Setting Up of Advisory Boards
The Act requires that the Central and State Advisory Boards are to be set up by the
Central and State Governments, respectively to advise themon such matters arising out of
the administration of the Act as may be refereed to them, and carry out any other functions
NOTES
assigned to them under the Act. Besides, the government nominees, the Boards have
members representing industry, contractors, workers, and any other interest that the
government may consider should be represented on the Boards. The number of nominees
of the workers is to be equal to that of industry and contractors, both on the State and the
Central Boards (section 3,4)
(2) Registration of Establishment
Every principal employer who wishes to employ contract labour has to get the
establishment is accepted for registration. the registration officer issues a registration
certificate if the establishment is accepted for registration. This certificate can be cancelled
if it has been obtained by misrepresentation or suppression of any material fact, or if the
registration has become useless or ineffective or requires to be revoked.
The contract labour cannot be employed so long as the registration certificate has not
been issued or after it is revoked. The employer has to play a registration fee of twenty
rupees to five hundred rupees depending on the number of workers to be employed (Section
6, 7, 8, 9)
(3) Prohibition of employment of Contract Labour
Both the Central and State Governments can prohibit the employment of contract
labour in any process, operation or other work in any establishment after consulting their
Advisory Boards, and consider the conditions of work and benefits provided for contract
labour in the establishment. The employment of contract labour may not be permitted for
any process, operation and other work if it is:
(a) incidental to or necessary for the industry, trade, business, manufacture or occupation
that is carried on in the establishment;
(b) of perennial or perpetual nature or of a sufficient duration
(c) done ordinarily through regular workmen in that establishment or an similar thereto:
(d) capable of employing considerable number of wholetime workmen.
If a question arise whether any process, operation or other work is of perpetual or
perennial nature, the decision of the government concerned is to be final.
Some of the important processes, operations and other works for which contract
labour may be employed are loading and unloading stacking and unshackling, construction
and maintenance of buildings and roads, and seasonal works, if theses may satisfy one of
the other above-mentioned conditions for the employment of contract labour
(4) Licensing of Contractors
Every contractor has to obtain a licensing for employing contract labour from the
licensing officer appointed by the government for this purpose. In this application for a
licensing he has to mention the location of his establishment, the nature of the operation or
DBA 1748
NOTES
the work for which contract labour is to be employed, and such other particulars as may
be required by the licensing officer. He is charged a licence fee, which may vary from five
rupees to one hundred and twenty five rupees, depending on the number of workers to be
employed
The licence may prescribe such conditions as hours or work, fixation of wages and
essential amenities in respect of contract labour which the contractor may be required to
comply with while employing contract labour. For ensuring compliance with theses
conditions, the contractor has to deposit a security of the amount required by the licensing
officer.
The license is issued for a specified period, on the expiry of which it has to be renewed.
It can be revoked or suspended after giving to the holder of the license an opportunity to
show cause if it is found that it has been obtained by misrepresentation, or suppression of
material facts or any conditions of the license or any provision of the Act, and if the rules
farmed there under have not been compiled with. The licensing officer may also declare
the whole or a part of the security deposits to be a forfeit (Section 11 to 14)
(5) Welfare and Health of Contract Labour
A contractors are required to provide and maintain:
(e) A Sufficient supply of wholesome drinking water at convenient places;
(f) A sufficient number of latrines and urinals of the prescribed type conveniently situated
and accessible.
(g) Washing facilities;
(h) A first aid box equipped with prescribed contents at every place where contract
labour is employed;
(i) One or more canteens if the work is to continue for more than 6 months and 100
or more workers are employed. The number of canteens, the standard of their
construction, furniture and equipment, and the type of food to be supplied will be
as prescribed under the rules framed by the government
If the contractor fails to provides theses facilities, the principal employer will have to
provide the same and recover the expenses involved fromthe contractor.
(6) Responsibility for payment of Wages
The contractor is also to be responsible for making regular and timely payment of
wages to his workers. The payment is to be made in the presence of the authorized
representative of the principal employer. If the contractor does not make payment, the
principal employer will do the same and recover the amount so paid fromthe contractor
(Section 16 to 21)
NOTES
(7) Penalties
The Act provides for imprisonment for a termof three months of fine ranging fromfive
hundred rupees to one thousand rupees or both for contravention of various provision of
the Act and other offences. Additional fine is also provided for continuing offences and
contraventions (Sections 22, 23, 24)
(8) Inspectors and Rules
The Act provides for the appointment of inspectors and defines their powers and
jurisdiction. There is also a provision for making rules by Central and State Governments
for carrying out the purposes of the Act (Section 28, 35)
Obligations of Principal employers and Contractors: Every principal employer and
contractor who wants to employ contract labour has to:
(j) Get his establishment registered with the registering officer appointed by the
government (Section 7);
(k) Obtain a license fromthe licensing officer for employing contract labour and comply
with the terms and conditions of the grant of the license (Section 12);
(l) Not to employ contract labour without obtaining a registration certificate and license,
or after the registration certificate and license are revoked or suspended (Section
9, 12, 1);
(m)Provide welfare and health facilities as required under the Act and its rules (Section
16, 19);
(n) Pay wages to workers before the expiry of the wages period (Section 21);
(o) Co-operate with the inspectors in the inspection of premises, documents and records
and examining any person to determine if the provisions of the Act and the rules
framed there under are being complied with (Section 28);
(p) Maintain the registers and records with such particulars of contract labour, as
nature of work performed, rates of wages and other information specified in Rules
74 and 78 of the Act (Section 29);
(q) Exhibit in the premises of the establishment where contract labour is employed a
notice showing hours of work, rates of wages, wage periods, dates of payment of
wages, nature of duties and other particulars as mentioned in Rule 81 of the Act
(Section 29 (2)); and
(r) Send a half-yearly return to the licensing officer and yearly return to the registration
officer, and to supply such information and statistics as may be required by the
government fromtime to time.
Rights of Principal Employers and Contractors: The principal employers and
contractors have the right to:
DBA 1748
NOTES
(a) Appeal to the appellate officer against the order of the Registration officer and the
licensing officer, either for refusing or revoking registration or license within thirty
days of receiving such orders (Section 4);
(b) Be represented by their representatives on the Central and State Advisory Boards
(Section 4);
(9) Rights of Contract Labour
The contract labour has the right to:
(a) Claim such working conditions, facilities and other benefits as are provided for
under the Act and the rules framed there under (Section 16 to 22); and
(b) They can be represented by their representatives on the Central and State Advisory
Boards (Section 4)
1. Explain the Constitutional rights guaranteed to a child under the provisions of the
Indian Constitutional Act
2. Explain the office and working of the Child Labour Technical Advisory committee
3. Explain a few of the initiatives taken by the Government of India to eliminate child
labour in India
4. What is licensing of contractors ?
5. Give a brief overview of the Contract labour (Abolition & Prohibition) Act, 1970
NOTES
Table 1.1
Unorganized Sector
SOCIO-ECONOMIC CONDITIONS OF LICENSED RAILWAY PORTERS AT
FIVE SELECTED CENTRES
DBA 1748
NOTES
Table 1.2
Unorganized Surveys in different Industries
NOTES
Table 1.3
Working and Living Conditions of Workers in Artistic Metalware Industry in
India (1999)
S.No. Item Description Value
1. Percentage of Workers
A. Directly Employed
i) Male
ii) Female
iii) Children
iv) Time Rated
v) Piece Rated
B) Through Contractor
C) House Hold Workers
i) Male
ii) Female
iii) Children
93.4
6.6
-
32.0
68.0
-

70.5
17.8
11.7
2. Average Size of Family 5.3
3. Average Number of earners per family 1.8
4. Average monthly income per family Rs. 3,090/-
5. Average monthly expenditure per family
(including savings/investments)
Rs. 3,090/-
6. Literacy level rate in percentage 67.1
7. Number of Migrant Workers 3
8. Percentage of Indebted families 29.1

DBA 1748
NOTES
NOTES

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1 ANNA UNIVERSITY CHENNAI

2000 01 2001-02 2002-03 2003-04 2004-05

1. No. of Reporting Factories 128339 125834 125834 125844 136356

@AmongDirectlyEmployedRegular Workers during the calendar year.

(i) the belt is not more than fifteen centimeters in width;

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