LABOUR AND LABOUR WELFARE

LABOUR AND LABOUR WELFARE

Labour sector addresses multi-dimensional socio-economic aspects affecting

labour welfare, productivity, living standards of labour force and social security. To raise

living standards of the work force and achieve higher productivity, skill upgradation through

suitable training is of utmost importance. Manpower development to provide adequate

labour force of appropriate skills and quality to different sectors is essential for rapid socioeconomic

development. Employment generation in all the productive sectors is one of the

basic objectives. In this context, efforts are being made for providing the environment for

self-employment both in urban and rural areas. During the Ninth Plan period, elimination of

undesirable practices such as child labour, bonded labour, and aspects such as ensuring

workers’ safety and social security, looking after labour welfare and providing of the

necessary support measures for sorting out problems relating to employment of both men and

women workers in different sectors has received priority attention.

CENTRAL SECTOR

2. Various plan schemes of the Ministry of Labour aim at achievement of welfare

and social security of the working class and maintenance of industrial peace. As against the

approved outlay of Rs.130 crore for the year 1999-2000, the anticipated expenditure would

be Rs.104 crore. The approved outlay for the year 2000-2001 is Rs.123 crore. (Refer

Annexure 5.7.1 for Central Sector and Annexure 5.7.2 for State sector).

3. Plan initiatives in the Labour & Labour Welfare Sector are as under:

(i) Training for skill development.

(ii) Services to job seekers.

(iii)Welfare of labour.

(iv) Administration of labour regulations.

4. Under the Constitution of India, Vocational Training is a concurrent subject. The

development of training schemes at National level, evolution of policy, laying of training

standards, procedures, conducting of examinations, certification, etc. are the responsibility of

the Central Government, where as the implementation of the training schemes largely rests

with the State/U.T. governments. The Central Government is advised by the National

Council of Vocational Training (NCVT), a tripartite body which has representation from

employers, workers and Central/State governments. At the State level, similar councils

known as State Councils for Vocational Training are constituted for the same purpose by the

respective state governments at state levels.

5. The main objectives of the scheme are as under:

(i) To ensure steady flow of skilled workers.

(ii) To raise the quality and quantity of industrial production by systematic

training of potential workers.

(iii)To reduce unemployment among educated youth by equipping them with

suitable skills for industrial employment.

6. The main Vocational Training Schemes comprise of Craftsmen Training Scheme,

Apprenticeship Training Scheme, Training of skilled workers, training of women as a special

target group, Training of Craft Instructors, Training of Supervisors and also to carry out

applied research on vocational training problems while paying adequate attention towards

preparation and development of instructional material.

7. The Craftsmen Training Scheme and Apprenticeship Training Scheme which are

adequately dovetailed and meant to bring maximum benefit to the youth in their formative

years, form the centre stage of the vocational training schemes. A number of other

departments have also started training activities for their respective sectors e.g. Small

Industry, KVIC, handlooms, tourism (hotel management & catering), electronics, medical

technicians, agriculture and rural development. These training schemes are smaller but serve

a very useful and essential purpose in the overall sphere of vocational training. In spite of

difficulties and shortcomings, the Vocational Training Schemes have continued to make

progress especially in terms of being the primary source of manpower for the industry.

8. The Central Government mainly concentrates on laying down the policies,

procedures and training standards while the management of ITIs are under the concerned

State Government(s)/U.Ts. In this process, the Central Government is advised by two

tripartite advisory bodies namely, the National Council for Vocational Training (NCVT) and

the Central Apprenticeship Council (CAC). Both the Councils have the Union Labour

Minister as the Chairman. Annual meeting of the two bodies was held in the month of July,

1999. In the meeting the steps to improve the quality of training both under NCVT and CAC

were discussed and concrete recommendations emerged. The following are the important

recommendations:

·  Setting up an Expert group to look into the issues relating to Vocational

Training Programme for persons with disability (equal opportunities under the

persons with Disability Act, 1995) and its implementation under CTS.

·  Introduction of four new trades viz. Computer Hardware, Medical Electronics,

Consumer Electronics and Industrial Electronics under CTS.

·  Revision of space norms for workshops.

·  Introduction of modular training for advanced skill courses for women at

NVTI/RVTIs under DGE&T.

CRAFTSMEN TRAINING SCHEME

9. The Craftsmen Training Scheme (CTS) under the National Vocational Training

System was introduced in 1950 for imparting skill training. Training is imparted mainly in

engineering trades. A few trades outside the engineering field are also covered but the bulk

of the services sector and need of industries other than manufacturing are not handled by

DGE&T. In the area of training, six new trades (in the areas of Information Technology,

Electronics) in Craftsmen Training Scheme in different ITIs and nine new trades under

Apprenticeship Training Scheme have been introduced.

10. There has been a significant growth and expansion in the network of ITIs which

have grown to 4172 in the Public and Private sectors with a seating capacity of 6.78 lakh as

on 31.12.99 (State-wise details presented in Annexure 5.7.3) and another 2.33 lakh under the

Trade Apprentice Scheme. The Apprenticeship Training Scheme provides practical training

in 137 designated trades to train apprentices in 101 subject fields in engineering and

technology for graduates and diploma holders and 94 subject fields for technicians. Details

of Region wise utilisation in respect of Trade Apprentices in the Central Sector and State

Sectors as on 30.6.99 are given in Annexures 5.7.4 & 5.7.5.

11. Directorate General of Employment and Training, through its women’s

occupational Training Directorate, launched the women’s Vocational Training Programme in

1977. The programme aimed at providing Vocational Training facilities to women, thereby

increasing their employability and consequently their participation in the economy of the

country. Under the Vocational Training Programme at Central Sector, training facilities for

women in Vocational Skills are being provided through a network of Women's Vocational

Training Institutes.

12. The Government has initiated steps for strengthening and modernisation of

Industrial Training Institutes (ITIs) in Jammu & Kashmir. All trades that have demand and

local relevance will be covered by including even such activities that are presently outside

NCVT approved trades such as construction, carpet weaving, horticulture, catering, tourism,

etc.

13. The existing training institutions have, no doubt, been meeting a significant part of

the requirements of the skilled manpower of the organised industry. It, however, seems

necessary that the process of restructuring and reorientation of their courses is expedited with

a view to quickly responding to the labour market. For skill upgradation of the workers in

the unorganised sector, flexibility in the duration, training and location of training courses

would need to be introduced. To the extent a sizeable proportion of employment would have

to be self employment in tiny and small units in various sectors, the training system should

also gear up not only for providing hard skills for suitable trades, but also the soft skills of

entrepreneurship, management and marketing, as part of training courses.

14. In order to improve accessibility to employment to trainees from ITIs, there is

need to take up a new market driven trades and dispense with the traditional trades such as

blacksmith, carpentry, conventional tailoring etc. Since the ITIs are being run by the States,

the State Governments have been advised to network with the industry and bring changes in

their syllabus/trades of ITIs. In this direction, some of the States have already taken steps, for

example, the State Government of Haryana is opening up an ITI in Gurgaon in collaboration

with Confederation of Indian Industry. The trades/syllabus are being decided in consultation

with the CII keeping in view the future demands of the industry. The financial burden will

also be shared by the industry. The Government of Gujarat has also started networking with

the industry in the change over of obsolete trades to make them market driven.

NATIONAL EMPLOYMENT SERVICE

15. National Employment Service covers all the States and Union Territories except

Sikkim, and functions within the framework of the Employment Exchanges (compulsory

notification of vacancies) Act 1959. Day to Day administration of the Employment

Exchanges is with the State/U.T. governments. It has a network of 953 Employment

Exchanges as on 30.6.99. Year-wise registration, placement, vacancies notified, submission

made and live register for the period 1989 to 1998 may be seen in Annexure 5.7.6. The main

activities of the Employment Exchanges are registration, placement of job seekers, career

counselling, vocational guidance and collection of labour market information. Special self

employment promotion cells (SEPCs) have been established in 23 selected Employment

Exchanges up to the end of December, 1998, 0.7 lakh persons have been placed in self

employment and 1.8 lakh persons were on the live register of these cells seeking self

employment assistance.

16. National Employment Service in the context of newly emerging market scenario

has to be reoriented. The Employment Services has now accepted its enhanced role and is

paying greater attention to compilation and dissemination of comprehensive labour market

information. The important reports generated by the Employment Market Information

Programme are “The Quarterly Employment Review”, “Occupational and Educational

Pattern in India”, etc. There are also plan schemes for modernisation and computerisation of

employment exchanges for strengthening of Employment Market information programme.

17. The Employment service continued to pay special attention to the needs of the

weaker section of society. A comprehensive package of services is provided to the

handicapped by 17 vocational rehabilitation centres for the handicapped. Out of these, the

Vocational Rehabilitation Centre at Vadodara has been set up exclusively for disabled

women. These centres evaluate the residual capacities of the handicapped and provide them

adjustment training, facilitating their early economic rehabilitation. Efforts are also made to

assist them in obtaining other suitable rehabilitation services such as job placement and

training for self-employment. Setting up of seven new Vocational Rehabilitation Centres

(VRCS), 12 skill Training workshops in the Vocational Rehabilitation Centres and 26 Rural

Rehabilitation Extension Centres is under consideration of the Ministry of Labour.

Vocational guidance and training in confidence building is provided to job seekers belonging

to the scheduled castes and the scheduled tribes at 22 coaching-cum-guidance centres. In

addition, the scheme to provide facilities to SCs/STs job seekers for practicing shorthand and

typing is in operation in Coaching-cum-guidance (CGCs).

WELFARE OF LABOUR

18. The improvement of labour welfare and increasing productivity with reasonable

level of social security is one of the prime objectives concerning social and economic policy

of the Government. The resources have been directed through the Plan programmes towards

skill formation and development, monitoring of working conditions, creation of industrial

harmony through infrastructure for health, industrial relations and insurance against disease,

accident and unemployment for the workers and then families. The situation of surplus

labour and workers in the unorganised segment of the economy give rise to unhealthy social

practices such as bonded labour, child labour and adverse working conditions.

19. In the year 1999, Workmen Compensation Act has been revised to benefit the

workers and their families in the case of death/disability. The labour laws enforcement

machinery in the States and at the Centre are working to amend the laws which require

changes, revise rules, regulations orders and notifications.

SECOND NATIONAL COMMISSION ON LABOUR

20. The Government has set up the Second National Commission on Labour on 15th

October, 1999. The Commission will suggest rationalisation of the existing laws relating to

labour in the organised sector and also an umbrella legislation for ensuring a minimum level

of protection to the workers in the unorganised sector. The Commission would submit its

report within two years i.e. by 15.10.2001.

CHILD LABOUR

21. According to the 1991 Census, the number of working children in the country was

of the order of 11.28 million (State-wise details are available in Annexure 5.7.7). The

existence of child labour in hazardous industries is a great problem in India. Non-availability

of accurate, authentic and up-to-date data on child labour has been major handicap in planned

intervention for eradication of this social evil. Efforts are underway in the Ninth Plan to

modify and improve the existing National Child Labour Project. A major activity undertaken

under this scheme is the establishment of special schools to provide non-formal education,

vocational training, supplementary nutrition, stipends, health care, etc. to children withdrawn

from employment in hazardous industries.

22. During 1999-2000 (till end of January, 2000), 91 National Child Labour Projects

have been sanctioned, in child labour endemic states for rehabilitation of nearly 1.9 lakh

children who were removed from work. State wise coverage under NCLP is as given in

Annexure 5.7.8.

23. A review of the implementation of various programmes for elimination of child

labour reveals that even though a good beginning has been made from 1994-95 onwards, in

order to make a significant dent on this age old social evil a multi-pronged strategy coupled

with a massive mobilisation of resources, both physical and financial, is required.

24. Before considering any expansion of the programme, it was considered

appropriate to get the existing projects evaluated through independent evaluation agencies.

Accordingly, five evaluation agencies were identified for evaluating child labour projects in

the States of Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Orissa and Rajasthan. The reports

received showed, inter alia, that the magnitude of the child labour problem can be

considerably reduced through rehabilitation measures by the projects and that there is need to

continue the component of special schools or camp approach. The need for awareness

generation among the public has also been highlighted.

REHABILITATION OF BONDED LABOUR

25. The Centrally sponsored Plan scheme for rehabilitation of bonded labour was

formulated by the Ministry of Labour in 1978. Under the bonded labour system, the

responsibility for identification, release and rehabilitation of free bonded labourers rest

entirely with the State Governments. However, with a view to supplementing the efforts of

the State Governments, a CSS was launched by the Ministry of Labour in 1978-79. The

expenditure is shared equally by the Central and State Governments on 50:50 basis. Under

the scheme, a bonded labour on release is immediately paid Rs.1000 as subsistence allowance

and he/she is rehabilitated as per situation with a rehabilitation package of Rs.10,000 keeping

in view the price escalation and increase in the cost of the rehabilitation package, cost of

buffaloes, cows and other inputs during the last four years, the scheme has been modified

recently by raising the rehabilitation package from the existing amount of Rs.10,000 to

Rs.20,000 per bonded labour and with provision for conducting surveys for identification of bonded labour, creation of awareness, conducting evaluation studies etc. Planning

Commission has also agreed to provide 100 per cent subsidy to the North Eastern States

keeping in view the financial constraints faced by these States. The modified scheme would

be implemented in the remaining period of the Ninth Plan and a review will be done before

the start of Tenth Plan.

26. Since the inception of the scheme 2,80,411 bonded labour have been identified

and released, out of which 2,51,569 have been rehabilitated by 31.3.2000 and Rs.50.32 crore

have been released to the State Government as Central Assistance up to 31.3.2000. Statewise

break-up of achievement is in Annexure 5.7.9.

27. In order to review the progress and proper monitoring of the Centrally Sponsored

Scheme and other poverty alleviation programmes which are in operation for the purpose of effective rehabilitation of bonded labourer, it is proposed that monitoring of the schemes may be done at there levels i.e. National State & District Levels. In this regard, at least two workshops/monitoring meetings may be organised by the Ministry of Labour at the Central Level. High Powered committees at district and State levels may be constituted on permanent basis for monitoring the schemes. The monitoring will help in removing the shortcomings noticed in the process of their implementation and bringing improvements and equipping officers with  crucial skills needed for identification, release and rehabilitation of bonded labour with extra care and dedication. This is important so that once a bonded labourer is released and rehabilitated, he/she does not go back to bondage once again.

WOMEN LABOUR

28. The Ministry of Labour has set up a Women Labour Cell in 1975. The intention

was to focus attention on the lot of working women with a view to improving it. The

Government has enacted the Equal Remuneration Act, 1976. The Women Cell has been

created in the Ministry to monitor implementation of this Act. A Central Advisory

Committee has been set up to advise the Government on providing increasing employment

opportunities for women. Similarly, State Advisory Committee has been constituted to

monitor the Act at the State level. The Cell also gives grants-in-aid to voluntary

organisations to carry out research studies on problems of women workers, their

employability and the extent of their displacement on account of technological and various

other changes. This scheme was introduced with the intention of furthering Government’s

policy of helping women to become aware of their rights and opportunities and also to

become economically independent.

OCCUPATIONAL SAFETY AND HEALTH

29. The Constitution of India contains specific provisions for the occupational safety

and health of workers. The Directorate General of Mines Safety (DGMS) and Directorate

General of Factory Advice Service and Labour Institutes (DGFASLI) strive to achieve

occupational safety and health in mines, factories and ports. The schemes relating to

occupational safety concentrate on improvement of work environment, man-machinery

interface, control and prevention of chemical hazards, development of protective gear and

equipment, training in safety measures and development of safety and health information

system.

DIRECTORATE GENERAL OF FACTORY ADVICE, SERVICE AND LABOUR

INSTITUTE (DGFASLI)

30. This organisation functions as the technical arm of the Ministry in matters

concerning with safety, health and welfare of workers in factories and ports/docks. Eighty

eight seminars/workshops and longer duration training programmes including the one year

diploma courses in industrial safety and three months PG certificate course in occupational

health have been conducted for over 2055 participants from 772 organisations during January

to September, 1999. Labour Institutes in Mumbai, Kanpur, Calcutta and Chennai conducted

339 appreciation programmes for 7878 beneficiaries on safety, health and welfare. Mobile

safety exhibitions were set up at 43 factories benefiting 36350 factory workers. DGFASLI

completed 45 consultancy studies in the areas of hazardous assessment, environment

assessment, safety audit, assessment of occupational health status at the request of various

organisations.

DIRECTORATE GENERAL OF MINES SAFETY (DGMS)

31. The Directorate General of Mines Safety which is a subordinate office of the

Ministry of Labour is entrusted with the responsibility of enforcing the provisions of the

Mines Act, 1952. With a view to ensuring enforcement of necessary safety measures in

mines, inspections and enquiries are carried out by the inspecting officers. During the period

April to September, 1999, 17 notices and 5 orders were issued to coal mines and 13 notices

and 26 orders were issued to non-coal mines. The number of inspections and enquiries

carried out during this period were 8179 and 9743 respectively.

LABOUR STATISTICS

32. The Labour Bureau is responsible for collection, compilation and publication of

statistical and other information regarding employment, wages, earnings, industrial relations,

working conditions, etc. It also compiles and publishes the consumer price index numbers

for industrial and agricultural workers. The Bureau further renders necessary assistance to

the States for conducting training programmes in Labour statistics of State/District/Unit

levels. Data compiled for periodic returns do not meet all the information requirements for

planning and policy formulation in the field of labour. With a view to bridge the gap in the

availability of labour statistics, the Bureau conducts several periodic/ad hoc surveys on

different aspects of labour such as:

·  New working class Family Income and Expenditure Survey.

·  Rural labour Enquiries.

·  House Rent Surveys.

·  Occupational Wage Surveys.

33. In the Ninth Plan, many initiatives have been taken by the Government for labour

welfare. The Labour Bureau, Shimla has conducted evaluation studies of the Minimum

Wages Act, 1948 to determine the degree of implementation in the various scheduled

employment categories in different parts of the country. The Bureau has also been studying

the working and living conditions of women workers and the extent of the welfare facilities

available to them vis-à-vis the various labour laws in mining, plantation and factory sectors

as well as in selected unorganised industries.

WORKERS' EDUCATION

34. The Central Board of Workers Education through its regional offices is striving to

educate the workers to help to avoid wasteful expenditure, adopting cost effectiveness and by

enhancing productivity of qualitative nature. They have been conducting the following

programmes:

·  Rural Awareness Programme.

·  Functional Adult Literacy Classes.

·  Short-term programmes for the unorganised sector to educate them on their

rights, ethics and hygiene.

·  Participative Management.

·  Orientation Courses for Rural Educators.

·  Leadership Development Programme for Rural Workers.

LABOUR RESEARCH AND TRAINING

35. V.V. Giri National Labour Institute, a fully funded autonomous body of the

Ministry of Labour, conducts action-oriented research and provides training to grass root

level workers in the trade union movement, both in the urban and rural areas, and also to

officers dealing with industrial relations, personal management, labour welfare, etc. The

Institute completed the following research projects during 1999-2000:

·  Dynamics of Labour Market: Kearla.

·  Women and labour Market.

·  Labour laws, contractual parameters and conditions of construction workers.

·  Adverse sex ratio and female labour force participation.

·  Wage determination in rural labour force markets.

·  Information on requirements for rural labour.

36. The following study was however of utmost significance

·  “ Study on payment of wages wholly in kind and perceptions regarding Mode

of payment: A study in selected States". This Study was undertaken in

pursuance of directions of the Committee of Secretaries at a meeting held on

1.4.99 for the purpose of amendment to the Minimum Wages Act, 1948. The

study was completed in four states, viz. Tamil Nadu, Maharashtra, Bihar and

Punjab.

SOCIAL SECURITY

37. There are also laws enacted and schemes established by the Central/State

Governments providing for social security and welfare of specific categories of working

people. The principal social security laws enacted centrally are the following:

·  The Workmen’s Compensation Act, 1923.

·  The Employees State Insurance Act, 1948.

· The Employees Provident Funds and Miscellaneous Provisions Act, 1953.

·  The Maternity Benefit Act, 1961.

·  The Payment of Gratuity Act, 1972.

38. The E.P.F. & M.P. Act is administered exclusively by the Government of India

through the EPFO. The cash benefits under the ESI are administered by the Central

Government through the Employees State Insurance Corporation (ESIC) whereas medical

care under the ESI Act is being administered by the State Governments and Union Territory

Administrations. The Payment of Gratuity Act is administered by the Central Government in

establishments under its control, establishments having branches in more than one State,

major ports, mines, oil fields and the railways and by the State Governments and Union

Territory Administrations in all other cases. In mines and circus industry, the provisions of

the Maternity Benefit Act are being administered by the Central Government through the

Chief Labour Commissioner (Central) and by the State Governments in factories, plantation

and other establishments. The provisions of the Workmen’s compensation Act are being

administered exclusively by State Governments.

39. Employees Pension Scheme, 1995 was amended in February, 1999 to provide for

pension to dependent father/mother in respect of a deceased member, who has no eligible

family members and if no nomination was executed by him during his life time. Permanent

and totally disabled children of the PF members were made entitled w.e.f. February, 1999 to

payment of monthly children/orphan pension irrespective of age and number of children in

the family. Disbursement of pension and provident fund benefits on the date of retirement in

Public Sector Undertaking and model private sector establishment was introduced. One

hundred and thirty six beneficiaries were paid benefits on the date of retirement during the

two months December 1998 and January, 1999. Under the Workmen Compensation Act,

persons employed as cooks in hotels/restaurants made eligible for benefits of compensation

w.e.f. July, 1998.

40. For workers of poor families not covered under any insurance scheme or any law

statute, the Central Government has introduced a scheme of Personal Accident Insurance

Social Security Scheme. The Scheme is applicable to all persons in the age group of 18-55

who are earning members of poor families and meet with fatal accidents. The quantum of

benefits is Rs.3,000. The Scheme is implemented through the General Insurance

Corporation.

41. A new initiative has been taken by the Ministry of Agriculture and Cooperation by

providing insurance cover to unorganised labour working in construction industry, agriculture

fields and forests where the insurance cover will be provided through the Co-operatives on

50:50 basis through the national insurance cover and Labour Co-operatives. A premium of

Rs.5.25 per annum will be paid by the Co-operatives. The insurance cover has the provision

that in the case of death of a labourer, his family will be paid Rs.25,000.