Tag: University of Mumbai BMS Notes

The Central Government of India’s social programmes and welfare expenditures are a substantial portion of the official budget, and state and local governments play roles in developing and implementing social security policies. Additional welfare measure systems are also uniquely operated by various state governments. The government uses the unique identity number (Aadhar) that every Indian possesses to distribute welfare measures in India.

Employees’ Provident Fund Organisation

A provident funding is a kind of pension scheme. It is mandatory for every public, private and self-employee under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. Under this statutory act, every working person has a Universal Account Number (UAN), which is a 12-digit number allotted to employees who are contributing to EPF. It will be generated for each of the PF member by EPFO. The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments and also remains same through the lifetime of an employee. It does not change with the change in jobs. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number. This will help the member to view details of all the Member Identification Numbers (Member Id) linked to it. In this account, an employee contributes 10% of his monthly salary here and his employer contributes a matching amount.

The major benefit of UAN or Universal Account Number will include easy tagging of multiple Employee’s Provident Fund Member Id under a single number, thus reducing the confusion. The UAN will help in easy transfer and withdrawals of claims. Along with this service like Online Pass-Book, SMS Services on each deposit of contribution and Online KYC Update can be provided on the basis of UAN number. One can transfer balance from one EPF to his/her another EPF account with the help of UAN.

There are new UAN portal start to check your EPF balance and nowadays all the details like how to check UAN status, download UAN EPF passbook, check EPF balance, provident fund claim and many more facility provided by new UAN portal.

EPFO has now started to provide the refund of Administrative charges if all the KYC details are updated for all employees. This incentive programme is announced for the Year 2016-2017.

The member who is unable to withdraw PF for any reason can withdraw without consent of employer. They can submit FORM 19 for EPF (Employees Provident Fund) and FORM 10C for EPS (Employees’ Pension Scheme) with any of the following official’s attestation to EPFO office in which their EPF account is maintained and Universal Account Number or UAN provided by EPFO is mainly used to track PF balance and PF claim status. Then, you have to activate this by visiting nearest EPFO office. You will not be able to track your PF status and balance without activation.

National Health Insurances

There are a number of public and private health insurance companies operating in India which caters to the Indian middle class. For vulnerable Indians, the government has Ayushman Bharat Yogna, which is a health insurance programme that has coverage that includes 3 days of pre-hospitalisation and 15 days of post-hospitalisation expenses. Moreover, around 1,400 procedures with all related costs like OT expenses are taken care of. All in all, PMJAY and the e-card provide a coverage of Rs. 5 lakh ($ 6860) per family, per year, thus helping the economically disadvantaged obtain easy access to healthcare services.

Factories Act, 1948:

The principal Act to provide for various labour welfare measures in India is the Factories Act, 1948. The Act applies to all establishments employing 10 or more workers where power is used and 20 or more workers where power is not used, and where a manufacturing process is being carried on.

Employee Welfare Officer:

Section 49 of the factories act provides that in every factory wherein 500 or more workers are ordinarily employed the employer shall appoint at least one welfare officer.

The welfare officer should possess:

(i) A university degree;

(ii) Degree or diploma in social service or social work or social welfare from a recognized institution; and

(iii) Adequate knowledge of the language spoken by the majority of the workers in the area where the factory is situated.

1. Supervision
2. Counselling workers
3. Advising management
4. Establishing liaison with workers
5. Working with management and workers to improve productivity.
6. Working with outside public to secure proper enforcement of various acts.

Health of Employees:

• Cleanliness:

Every factory shall be kept clean by daily sweeping or washing the floors and work rooms and by using disinfectant where necessary.

• Disposal of Wastes and Effluents:

Effective arrangements shall be made for the disposal of wastes and for making them innocuous.

• Ventilation and Temperature:

Effective arrangements shall be made for ventilation and temperature so as to provide comfort to the workers and prevent injury to their health.

• Dust and Fume:

Effective measures shall be taken to prevent the inhalation and accumulation of dust and fumes or other impurities at the work place.

• Artificial Humidification:

The State Government shall make rules prescribing standard of humidification and methods to be adopted for this purpose.

• Overcrowding:

There shall be in every work room of a factory in existence on the date of commencement of this act at least 9.9 cubic meters and of a factory built after the commencement of this act at least 4.2 cubic meters of space for every employee.

• Lighting:

The State Government may prescribe standards of sufficient and suitable lighting.

• Drinking Water:

There shall be effective arrangement for wholesome drinking water for workers at convenient points.

• Latrines and Urinals:

There shall be sufficient number of latrines and urinals, clean, well-ventilated, conveniently situated and built according to prescribed standards separately for male and female workers.

• Spittoons:

There shall be sufficient number of spittoons placed at convenient places in the factory.

Employee welfare can be divided into two categories, namely:

(1) Statutory, and

(2) Voluntary

1. Statutory:

The government has passed a number of legislations in order to set minimum stan­dards of safety and welfare for the employees at their workplace. Provisions have been made for the welfare facilities such as washing, storing, first-aid appliances, hours of work, sanitation, etc.

2. Voluntary:

The employers voluntarily have provided welfare amenities to the employees besides the statutory facilities. They are more concerned with the welfare of their employees. Organizations such as Godrej and L & T provide adequate transport and similar other facilities to their employ­ees. Facilities for recreation, medical treatment, free meals or subsidized meals, schooling facilities for children, and sports and games are provided by many organizations.

Organizations have given opportunities to work with flexible working schedules. It helps to meet business commitments while at the same time supporting one’s personal life needs. Organizations also provide medi-claim insurance coverage to employees for expenses relating to hospitalization due to illness, disease, and injury. Harassment policies are also made to protect harassment of any kind to employees.

The voluntary welfare facilities may also classify into those provided within and outside the factory premises.

(i) Welfare and amenities within the factory premises.

(ii) Welfare and facilities outside the factory premises.

Welfare and amenities within the factory premises include:

(i) provision for latrine and urinals

(ii) wash­ing and bathing

(iii) creches

(iv) rest shelters and canteens

(v) arrangement of drinking water

(vi) arrangement for prevention of fatigue

(vii) administrative arrangement within the plant to look after welfare

(viii) uniforms and protective clothing

(ix) shift allowance.

Welfare and amenities outside the factory premises include:

(i) maternity benefit

(ii) social insurance

(iii) benevolent fund

(iv) medical facilities

(v) education facilities

(vi) housing facilities

(vii) recre­ational facilities

(viii) holiday/leave and travel facilities

(ix) workers’ cooperatives

(x) other programme for the welfare of women, youth, and children

(xi) transport to and from the place of work.

Types of Employee Welfare Services:

1. Safety Services:

Prevention of accidents is an objective which requires on explanation. The costs of accidents are enormous in suffering to the injured, in reduction or loss of earnings, in disabilities and incapacities which afflict those involved and in compensation, insurance and legal costs, in lost time, filling in reports and attending to enquiries, and in spoilage of materials, equipment and tools to management.

Accidents are the consequence of two basic factors: technical and human. Technical factors include all engineering deficiencies, related to plant, tools material and general work environment.

Thus, for example, improper lighting, inadequate ventilation, poor machine guarding and careless housekeeping are some hazards which may cause accidents. Human factors include all unsafe acts on the part of employees. An unsafe act is usually the result of carelessness.

Young and new employees, because of their difficulty in adjusting to the work situation and to life in general, also have many more accidents than do old and nature workers. The Phenomenon of Accident Proneness.

Some persons believe wrongly in the theory that certain individuals are accident prone, that is, they have some personality trait as opposed to some characteristic of the environment which predisposes them to have more accidents than others in work condition where the risk of hazards is equal to all.

Components of a Safety Service:

Among the many components of a safety service the following have proved effective when applied in combination:

Maintenance of the workplace and work equipment Employer must have:

1. Buildings and work equipment kept in good repair;
2. Space for safe movement and access, for example to machinery;
3. Safe glazing, if necessary, for example painted, toughened or thick, which is marked to make it easy to see;
4. Good drainage in wet processes;
5. Weather protection for outdoor workplaces, if practical;
6. Outdoor routes kept safe during icy conditions, for example salted/sanded and swept.

Floors and Traffic Routes:

Employer must have:

1. Floors, corridors and stairs free of obstructions, for example trailing cables;
2. Surfaces that are not slippery;
3. Well-lit outside areas – this will also help security;
4. Safe passages for pedestrians and vehicle the best approach is to keep vehicles and pedestrians apart using separate routes;
5. Level, even surfaces without holes or broken boards;
6. Handrails on stairs and ramps where necessary;
7. Safe doors, for example vision panels in swing doors, and safety devices on power doors.

Transparent and translucent doors, gates, walls and windows

Windows, transparent or translucent surfaces in walls, partitions, doors and gates should, where necessary to protect health and safety, be made of safety material or protected against breakage. Employer must mark these surfaces clearly if there is a danger that people might collide with them.

Windows and Safe Cleaning:

1. Employer must have windows that can be cleaned safely.
2. Open able windows should open safely so that people cannot fall out or bump into them.

Escalators and Moving Walkways:

Escalators and moving walkways should work safely, be equipped with any necessary safety devices and fitted with one or more emergency stop controls which are easily identifiable and accessible.

Appointment of Safety Officer:

In big organizations, the appointment of a safety officer to head the safety department is a must. In small organisations, the personnel manager may look after the functions of this department.

The head of the safety department, who is usually a staff man, is granted power to inspect the plant for unsafe condition, to promote sound safety practices (through posters and safety campaigns), to make safety rules, and to report violations to the plant manager.

Support by Line Management:

The head of the safety department, whether enjoying a staff or a functional position, by himself, cannot make a plan safe. His appointment lulls line management into assuming that all its safety problems have been solved.

Elimination of Hazards:

Although complete elimination of all hazards is virtually an impossibility but following steps can be taken to help reduce them:

Job Safety Analysis:

All job procedures and practices should be analysed by an expert to discover hazards, he should then suggest changes in their motion patterns, sequence and the like.

Placement:

A poorly placed employee is more apt to incur injury than a properly placed employee. Employees should be placed on jobs only after carefully estimating and considering the job requirements with those which the individual apparently possesses.

Personal Protective Equipment:

Endless variety of personal safety equipment is available nowadays which can be used to prevent injuries

Safeguarding Machinery:

Guards must be securely fixed to all power-driven machinery.

Materials Handling:

Though often ignored, the careless handling of heavy and inflammable materials is an important source of several injuries and fire.

Hand Tools:

Minor injuries often result from improperly using a good tool or using a poorly designed tool. Therefore, close supervision and instruction should be given to the employees on the proper tool to use the proper use of the tool.

Safety Training, Education and Publicity:

Safety training is concerned with developing safety skills, whereas safety education is concerned with increasing contest programmes, safety campaigns, suggestion awards, and various audio-visual aids can be considered as different forms of employee education.

Safety Inspection:

An inspection by a trained individual or a committee to detect evidence of possible safety hazards (such as poor lighting, slippery floors, unguarded machines, faulty electrical installations, poor work methods and disregard of safety rules) is a very effective device to promote safety.

2. Health Services:

The prevention of accident constitutes only on segment of the function of employee maintenance. Another equally important segment is the employee’s general health, both physical and mental. There are two aspects of industrial health services

1. Preventive
2. Curative, the former consists of:
3. Pre-employment and periodic medical examination,
4. Removal or reduction of health hazards to the maximum extent possible,
5. Surveillance over certain classes of workers such as women, young persons and persons exposed to special risks.
6. Counselling Services:

An employee very often comes across problems which have emotional content. For example, he may be nearing retirement and feeling insecure or he may be getting promotion and feeling hesitant to shoulder increased responsibility or he may be worried due to some family problem.

Welfare service are divided into two groups:

(a) Welfare services within the premises of the factory (intra-mural) such as drinking and washing facilities, bathing, creche, canteen, rest room, shelter, prevention of fatigue and safety devices and

(b) Welfare amenities outside the establishment (extra-mural) include social security measures like social insurance, social assistance, recreation, sports, workers’ education, etc.

It also includes, cooperative credit societies transportation, housekeeping. Scope of labour welfare takes care of workers’ life from cradle to grave as employees’ state insurance scheme provides medicine to a worker child and provides funeral benefit to a worker after his last minutes in this world. Scope of labour welfare includes statutory and non-statutory welfare amenities which are also increasing day-by-day and in most of workers’ welfare is by and large acceptable to society.

On the whole labour welfare aims at minimizing stress and strains of industrial workers. It observes that workers get clean and neat environment of work. They should get safe working conditions with minimum hazards of work life. They should be able to live a life with dignity, status and self-respect Scope differs from industry-to-industry and country-to-country.

As per 1981 census, women workers constitute about 19 per cent of the total workforce (i.e., 45 million out of 222 million). Out of 45 million a small fraction of about 2 million women workers were employed in the organized sector. They were not covered by any protective labour legislation.

Majority of women are employed in cotton textile, bide making, garment industries, rice mills, tobacco cutting, Cashewnut, matches, construction work, plantations, and household and small-scale industries. On account of scientific and technological development of the country, there is an increase in the employment of women in electronics industries.

The scope of Labour Welfare is very broad because it covers different industries and activities.

However, the researchers have summarized the scope and listed the following facilities covered in the scope are:

Working Environment:

Conducive working environment helps to improve efficiency of workers and includes proper lighting, temperature, ventilation, safety, sanitation, transportation, cleanliness, seating arrangement and canteen facilities. Workplace sanitation and cleanliness is very important for making workplace helpful for workers to work.

Following activities are important to make it conducive for working:

1. Proper ventilation using cross windows and doors, adequate lighting, controlled temperature, regular cleanliness, seating/standing arrangements for working, etc.
2. Proper safety measures for lift, elevators, ropes, cranes, electric and dangerous operating.
3. Sufficient urinals separate for gents and ladies, lavatories and bathing facilities with regular proper cleaning.
4. Proper gardening with watering facilities and cleanliness of surrounding regularly.
5. Pure drinking water facilities with purification and cooling facilities.
6. Well maintained canteen services with good quality of food at nominal rates.

Health Facilities:

Health is wealth. To maintain good health of the workers, the required health facilities should be maintained up to required standard. It includes the following facilities:

1. Health centre for regular check-up for workers and their families should be provided within factory or nearest place.
2. Availability of ambulance service at telephone call itself should be provided in case of emergency.
3. Free and regular medical check-up of workers and counselling regarding health and diet to workers.
4. Availability medical staff and of doctors inside the factory for emergency.
5. Welfare facilities for women and children such as – crèches, checking for pregnancy, etc.
6. Suitable sports and recreation facilities in the premises.
7. Schooling, vocational training facilities and library services

General Welfare Facilities:

1. Housing facilities for workers near to the work facilities.
2. Cleaning and sanitation facilities in housing facilities.
3. To and fro transportation facilities for workers and their children going for schools
4. Sports facilities of indoor and outdoor in the residential location.
5. Family planning and family care counselling.
6. Entertainment facilities in the campus for workers and their families.
7. Transport facilities for tours, picnics and festival celebration.

Economic Welfare Facilities:

1. Subsidized consumer goods including grains, vegetables, milk, oil and other daily requirements through cooperative stores.
2. Banking, postal, services and credit facilities through credit society.
3. Health insurance schemes by employers free of costs.
4. Regular basis bonus and profit-sharing schemes.

The following are generally given as the principles to be followed in setting up a employee welfare programme:

1. The programme should satisfy real needs of the workers:

This means that the manager must first determine what the employees’ real needs are. Extreme care and serious research should go into the decision of whether or not to offer a particular employee service. More evidence is required than a mere unfounded bias of the manager.

2. The programme should be such as can be handled best by a group approach:

For example, life insurance purchased as a group can be obtained at a significantly lower price than some insurance purchased by the individual. But it is argued that depending upon the differences in sex, age, marital status, number of children, type of job and the income level of employees, there are large differences in their choice of a particular benefit.

As a result, it is suggested that a package total value of benefits should be determined and the selection of the mix of benefits should be left to the choice of each individual employee. This is known as the ‘cafeteria approach’. Such an approach individualizes the benefit system though it may be difficult to operate and administer.

3. The employer should not assume a benevolent posture:

Some employers foster dependency on employees which is counter-productive. The paternalistic and benevolent approach has fallen in disrepute as a result of the employee’s desire to gain independence and dignity.

4. The cost of the programme should be calculable and its financing established on a sound basis:

There are several employee services such as pension, provident fund, insurance, etc., which are not cheap to administer. The cost of such benefits can hardly be termed a fringe. It is, therefore, essential that before conceding any such service over the collective bargaining table sound actuarial estimates of costs are made and adequate provisions for financing it are established.

5. The management should ensure cooperation and active participation of unions and workers in formulating and implementing the programme.
6. There should be a periodical assessment or evaluation of the programme and necessary timely improvement on the basis of feedback.

Labour welfare has emerged as a professional discipline.

Just like any other applied profession, it has specific aims and objectives based upon certain principles:

(a) Principle of Integration or Coordination: Welfare programmes cannot be segregated. They cannot be taken up part-by-part. It is a whole programme. For example, health and welfare should cover up all the aspects of health and hygiene, physical, social and moral hygiene.

(b) Principle of Association: Any welfare programme meant for the development of workers’ community should associate workers with the planning and execution of the programme. Workers should be associated for conducting activities.

(c) Principle of Responsibility: Workers should be incorporated and they should be hold responsible for the activities aiming at workers’ welfare. For example, workers participate in safety committees, sports committees, canteen committees, etc.

(d) Principle of Accountability: Every programme, every person and every activity should be answerable. Welfare programme are socially audited and evaluated. Successful programme is retained Weaker programme are straightened.

(e) Principle of Timeliness: Timely help is a valuable help. A stick in time saves nine. When a worker needs economic assistance for trading a sick child or for building a house, there should be reasonable lapse of time but beyond a limit he can’t wait. Appropriate action begins taken for welfare might serve the purpose. In certain circumstances of emergency, delay in assistance means denial of human value and justice.

During the early period of industrial development, efforts towards workers’ welfare was made largely by social workers, philanthropists and other religious leaders, mostly on humanitarian grounds. Before the introduction of welfare and other legislation in India, the conditions of labour were miserable. Exploitation of child labour, long hours of work, bad sanitation, absence of safety measures etc., were the regular features of the factory life. The earliest legislative approach could be tracked back to the passing of the Apprentices Act of 1850. This act was enacted with the objective of helping poor and orphaned children to learn various trades and crafts. The next act was the Fatal Accidents Act of 1853 which aimed at providing compensation to the families of workmen who lost their life as a result of “actionable wrong”. Earlier attempts at legislation in this country were mainly aimed at regulation of employment.

Pre- Independence Era

The movement to improve the working conditions of Indian labour started with the passing of the first Indian Factories Act in 1881. The deplorable conditions in which labour worked in the textile mills in Bombay during those days, as testified by the factory commission of 1875 was the immediate cause for the passing of the Act. Adult labour, however, was not protected in any manner. It was found inadequate in many respects. Any how, it recognized the right of the government to safeguard the interests of the workers by means of a suitable legislation. Therefore, the Mulock Commission was appointed by the Government of Bombay in 1884 to review the working of the Factories Act of 1881.

The Factories (Amendment) Act 1891 applied to all factories employing 50 persons or more. Provisions relating to better ventilation, cleanliness and for preventing over crowding in factories were also made. The hours of work for children were reduced to six per day. Employment of women between 7.00 pm and 5.00 am was prohibited. Women were allowed to work for eleven hours in a day with one and a half hours rest. Certain provisions were also made for the health and safety of the Industrial workers.

The outbreak of First World War in 1914 let to a number of new developments. During the war years (1914 to 1918) the number of factories and the number of persons employed wherein increased. Wages did not keep pace with the rising prices and profits. The establishment of the International Labour Organization (ILO) in 1919 was another important land mark in the history of Labour Welfare Movement in our Country. The formation of AITUC (1920), the first central trade union organization in our country, also helped in furthering the cause of welfare movement.

Another milestone in the field of labour welfare was reached with the appointment of Labour Investigation Committee (Rege Committee) in 1944. The committee was asked to investigate problems relating to wages and earnings, employment, housing and social conditions of workers. It covered different areas in labour welfare such as housing policy, rest and recreation, occupational diseases, relief in the case of old age and death, crushes, canteens, medical aid, washing and bathing facilities , educational facilities etc. For the first time in India, this committee highlighted the importance of welfare measures for workers in improving their social and economic life.

Post Independence Period

After independence, the labour welfare movement acquired new dimensions. It was realized that labour welfare had a positive role to play in the increasing productivity and reducing industrial tensions. The emergence of different central trade union organizations – INTUC (1947), HMS (1943), BMS (1955), CITU (1970), NLO etc. gave a further fillip to the growth of labour welfare movement. Mainly on the basis of the recommendations of the Rege Committee, the Government of India enacted the Factories Act 1948. To draft this important piece of legislation the services of Sir Wilfred Garrett were utilized. Thus, the Factories Act of 1948 came into effect from 1^st April 1949.

Various Labour Welfare Activities were incorporated in different five year plans. The First Five Year plan (1951 to 1956) paid considerable attention to the welfare of working classes. It laid emphasis on the development of welfare facilities, for avoidance of Industrial Disputes and for creating mutual goodwill and understanding. During this period, the Plantations Labour Act, 1951, the Mines Act, 1951, and the Employees’ Provident Fund Act, 1952 were enacted.

The Second Five Year plan (1956 to 1961) saw further developments in the field of labour welfare. New enactments were made to cover seamen and motor transport workers. A comprehensive scheme known as Dock Workers (safety health and welfare) scheme was drawn up in 1951. In 1959, the Government of Assam passed an Act called The Assam Tea Plantations Employees’ Welfare Fund Act. This period also saw number of enactments in the field of industrial housing by various state governments.

The Third Five Year plan (1961 to 1966) stressed the need for effective implementation of various statutory welfare provisions. It recommended improvement in working conditions and emphasized greater productivity on the part of workers. Some of the legislative measures during this period include the Maternity Benefit Act 1961, Apprentices Act 1961, and Payment of Bonus Act 1965.

The Fifth five year plan (1974 to 1979) also laid down programmes for labour welfare. For promoting industrial safety in increasing measure, the plan provided for setting up of safety cells in various states. An amount of Rs.57 crores was provided for labour welfare including craftsmen training and employment service.

The Sixth Five Year plan (1980 to 1985) decided to promote special programmes which would also need to be undertaken by the state governments for the benefit of Agricultural Labour, Artisans, Handloom Weavers, Fishermen, Leather workers and other unorganized workers in the rural and urban areas. An outlay of Rs.161.7 crores was proposed for the labour welfare programmes during this year.

In spite of all these efforts, the welfare work in India is still considerably below the standard setup in other countries. However, it has come to stay as an accepted feature of employment conditions and is bound to make rapid progress in the years to come, especially when the Indian Republic is wedded to the ideal of a welfare state with socialistic objectives.

Paternalism is action that limits a person’s or group’s liberty or autonomy and is intended to promote their own good. Paternalism can also imply that the behavior is against or regardless of the will of a person, or also that the behavior expresses an attitude of superiority. Paternalism, paternalistic and paternalist have all been used as a pejorative.

The word paternalism is from the Latin pater “father” via the adjective paternus “fatherly”, which in Medieval Latin became paternalis. Some such as John Stuart Mill think paternalism to be appropriate towards children, saying: “It is, perhaps, hardly necessary to say that this doctrine is meant to apply only to human beings in the maturity of their faculties. We are not speaking of children, or of young persons below the age which the law may fix as that of manhood or womanhood. “Paternalism towards adults is sometimes thought of as treating them as if they were children.

Criteria for effective paternalism

Thomas Pogge argues that there are a number of criteria for paternalism.

• The concept should work within human flourishing. Generally accepted items such as nutrition, clothing, shelter, certain basic freedoms may be acceptable by a range of religious and social backgrounds.
• The criteria should be minimally intrusive.
• The requirements of the criteria should not be understood as exhaustive; leaving societies the ability to modify the criteria based on their own needs.
• The supplementary considerations introduced by such more ambitious criteria of justice must not be allowed to outweigh the modest considerations.

Types

Soft and hard

Soft paternalism is the view that paternalism is justified only if an action to be committed is involuntary. John Stuart Mill gives the example of a person about to walk across a damaged bridge. We can’t tell the person the bridge is damaged as he doesn’t speak our language. According to soft paternalism, we would be justified in forcing him to not cross the bridge so we could find out whether he knows about the damage. If he knows and wants to jump off the bridge and commit suicide then we should allow him to. Hard paternalists say that at least sometimes we are entitled to prevent him from crossing the bridge and committing suicide.

Pure and impure

Pure paternalism is paternalism where the persons having their liberty or autonomy taken away are those being protected. Impure paternalism occurs when the class of people whose liberty or autonomy is violated by some measure is wider than the group of persons thereby protected.

Moral and welfare

Moral paternalism is where paternalism is justified to promote the moral wellbeing of a person(s) even if their welfare wouldn’t improve. For example, it could be argued that someone should be prevented from prostitution even if they make a decent living off it and their health is protected. A moral paternalist would argue that it is ethical considering they believe prostitution to be morally corrupting.

The Humanistic approach was advocated by Australian sociologist Elton Mayo. He finds that most important thing is to treat labour as a human element of production. Therefore, it became necessary to take a new, modern and sympathetic view of labour welfare measures. Humanistic approach comprises of human values and relationships, which was missing in the other approaches of labour welfare. The human factor was absent in management of the industrial units and Mayo found the significance of informal relations among groups of workers and stressed relief for man. This approach considers attitudes, human personality and feelings of workers, while introducing labour welfare. Therefore it is evident that the humanistic approach to labour, welfare takes a progressive view about labour welfare.

This approach says that every individual should be left as free as he can attain his own best interest if they are left free. Therefore, it was opposed by the state as welfare promoting activities undertaken by the government or any social or public agency contradict with this approach. This approach emphasis that scope of labour welfare activities should be as small as possible. This hypothesis is based on following important principles:

• Society in its natural environment form is comprised of individuals. They are highly unorganized and uncoordinated group. Under such an environment every individual is self-cantered and motivated by self- interest.
• That kind of person will always act in a calculated manner. An individual person always looking for a secure life. This kind of individual person mostly engaged and motivated by activities of self- interest. Therefore, he will act in a manner that leads to maximisation of his self-interest.
• Each and every individual person supposed to act throughout the life which will promote his self-interest. He is always trying to achieve the goal with best of his ability.

The Atomistic approach was established on the independence, individualistic and rationality concept of the early 19th century. This approach did draw strong criticism in the 19^th century mainly due to extreme atomistic views has almost disappeared now. This approach led to perception that there is need of increasingly more liberal and progressive view of welfare activities for labour.

According to an ILO Manual in 1960, the Collective Bargaining is defined as:

“Negotiations about working conditions and terms of employment between an employer, a group of employees or one or more employers organization on the other, with a view to reaching an agreement.”

It is also asserted that “the terms of agreement serve as a code defining the rights and obligations of each party in their employment relations with one another, if fixes large number of detailed conditions of employees and during its validity none of the matters it deals with, internal circumstances give grounds for a dispute counselling and individual workers”.

The collective bargaining reached has been of three types:

(1) Agreement arrived at after voluntary direct negotiations between the parties concerned. Its implementation is purely voluntary;

(2) Agreements between the two parties, though voluntary in nature, are compulsory when registered as settlement before a conciliator; and

(3) Agreement which have legal status negotiated after successful discussion between the parties when the matter of dispute is under reference to industrial tribunal/courts.

The Collective Bargaining is the process wherein the unions (representatives of employees or workers), and the employer (or their representative) meet to discuss the issues related to wage, the number of working hours, work environment and the other terms of the employment.

• Conjunctive or Distributive Bargaining: In this form of collective bargaining, both the parties viz. The employee and the employer try to maximize their respective gains. It is based on the principle, “my gain is your loss, and your gain is my loss” i.e. one party wins over the other.

The economic issues such as wages, bonus, other benefits are discussed, where the employee wishes to have an increased wage or bonus for his work done, whereas the employer wishes to increase the workload and reduce the wages.

• Co-operative or Integrative Bargaining: Both the employee and the employer sit together and try to resolve the problems of their common interest and reach to an amicable solution. In the case of economic crisis, such as recession, which is beyond the control of either party, may enter into a mutual agreement with respect to the working terms.

    For example, the workers may agree for the low wages or the management may agree to adopt the modernized methods, so as to have an increased production.

• Productivity Bargaining: This type of bargaining is done by the management, where the workers are given the incentives or the bonus for the increased productivity. The workers get encouraged and work very hard to reach beyond the standard level of productivity to gain the additional benefits.

    Through this form of collective bargaining, both the employer and the employee enjoy the benefits in the form of increased production and the increased pay respectively.

• Composite Bargaining: In this type of collective bargaining, along with the demand for increased wages the workers also express their concern over the working conditions, recruitment and training policies, environmental issues, mergers and amalgamations with other firms, pricing policies, etc. with the intention to safeguard their interest and protect the dilution of their powers.

Thus, the purpose of the Collective Bargaining is to reach a mutual agreement between the employee and the employer with respect to the employment terms and enjoy a long term relationship with each other.

Need:

The basic need of collective bargaining is to arrive at an agreement between the management and the employees determining mutually beneficial terms and conditions of employment.

1. To foster and maintain cordial and harmonious relations between the employer/management and the employees.
2. To protect the interests of both the employer and the employees.
3. To keep the outside, i.e., the government interventions at bay.
4. To promote industrial democracy.

Importance:

The need for and importance of collective bargaining is felt due to the advantages it offers to an organisation.

The chief ones are as follows:

1. Collective bargaining develops better understanding between the employer and the employ­ees:

It provides a platform to the management and the employees to be at par on negotiation table. As such, while the management gains a better and deep insight into the problems and the aspirations of die employees, on the one hand, die employees do also become better informed about the organisational problems and limitations, on the other. This, in turn, develops better understanding between the two parties.

2. It promotes industrial democracy:

Both the employer and the employees who best know their problems, participate in the negotiation process. Such participation breeds the democratic process in the organisation.

3. It benefits the both-employer and employees:

The negotiation arrived at is acceptable to both parties the employer and the employees.

4. It is adjustable to the changing conditions:

A dynamic environment leads to changes in employment conditions. This requires changes in organisational processes to match with the changed conditions. Among other alternatives available, collective bargaining is found as a better approach to bring changes more amicably.

5. It facilitates the speedy implementation of decisions arrived at collective negotiation:

The direct participation of both parties the employer and the employees in collective decision making process provides an in-built mechanism for speedy implementation of decisions arrived at collective bargaining.