LABOUR WELFARE

Concept:
The concept of labour welfare originated in the desire for a humanitarian approach to
ameliorate the sufferings of the workers and their families on account of the baneful effects of
large-scale industrialisation like undesirable social consequences and the labour problems
which have evolved in the process of transition from tradition to modernity. Later it became a
utilitarian philosophy which worked as a motivating force for labour and for those who were
interested in it. Lastly, labour welfare received inspiration from the evolution of the social
thought in regard to democracy and welfare state. With such a varied background and
changing values, labour welfare and its contents have acquired a kaleidoscopic nature.

The Concept of Labour / Employee Welfare:

The I.L.O. (SEA) session held at New Delhi in 1947 defined Labour Welfare as such
services, facilities and amenities, which may be established in or in the vicinity of,
undertakings to enable persons employed therein to perform their work in healthy,
congenial surroundings and to provide them with amenities conducive to good health
and good morale.
N.M. Joshi felt that labour welfare covers all the efforts which employers make for
the benefit or their employees over and above the minimum standard of working
conditions fixed by Factories Act and over and above the provision of social
legislation providing against accident, old age, unemployment and sickness.
The Committee on Labour Welfare (1969) defined labour welfare to include such
services, facilities and amenities as adequate canteens, rest and recreational facilities,
sanitary and medical facilities, arrangements for travel to and from work and for the
accommodation of workers employed at a distance from their homes and such other
services, amenities, and facilities including social security measures as contribute to
improve the conditions under which workers are employed.
An analysis of the definitions given above presents three broad features of labour
welfare concept, namely (1) It is anything given beyond the wages to the workers;
(2) The employer, Government, union or any other voluntary body can be the agency
for labour welfare; and (3) Labour welfare can be measures provided in the precincts
of the company, outside the premises of the company, and social security measures.

Scope of Labour Welfare:

Labour welfare is a dynamic concept which acquires new dimensions with the changes in the
environment of industry. It was as early as 1931 that Whitley Commission observed ,
Labour welfare is one which must necessarily be elastic, bearing a somewhat different
interpretation in one country from another, according to the different social customs, the
degree of industrialisation and the educational development of the workers. The Rege
Committee (1946) observed that, We prefer to include under welfare activities anything
done for intellectual, physical, moral and economic betterment of workers whether by
employer, Government or other agencies, over and above provided by law or under some
contract and what is normally over and above provided by law or under some contract and
what is normally expected as part of the contract for service. The Study Team, appointed by
the Government of India in 1959 to examine labour welfare activities then existing, divided
the entire range of these activities into three groups, viz.,
i.
Welfare within the precincts of an establishment: medical aid, crches, canteens,
supply of drinking water, etc.,
ii.

Welfare outside the establishment: provision for indoor and outdoor recreation,
housing, adult education, visual instructions, etc. and

iii.

Social security.

Types of Welfare Services:

The Committee of Experts on Welfare Facilities for Industrial Workers set up by the ILO in
1963 divided welfare services into two groups
a) within the precincts of the establishment and
b) outside the establishment.
a) Intramural:
Welfare amenities within the precincts of the establishment (intramural) such as latrines and
urinals; washing and bathing facilities; crches, rest shelters and canteens, arrangements for
drinking water, arrangements for prevention of fatigue, health services including occupation
safety, administrative arrangements to look artery uniform and protective clothing and shift
allowances.
b) Extramural:
Welfare amenities outside the establishment such as maternity benefits, social insurance
measures including gratuity, pension, provident fund and rehabilitation, benevolent funds;
medical facilities including programmes for physical fitness and efficiency; family planning
and child welfare; education facilities including adult education; housing facilities;
recreational facilities including sports, cultural activities, library and reading room, holiday
homes and leave travel facilities; workers cooperative stores, fair price shops and
cooperative thrift and credit societies; vocational training for dependants of workers; welfare
programmes for welfare of women, youth and children; and transport to and from the place of
work.
The following categorization is used by I.L.O.
These facilities and benefits can be further classified into those provided by legislation and
those provided voluntarily by management or as a result of bipartite settlements between
management and the trade unions.

Theories of Labour Welfare

i.

Philanthropic Theory:

This theory is based on mans love for mankind as the word philanthropic means loving
mankind. Man is believed to have an instinctive urge by which he strives to remove the
suffering of others and promote their well-being. This drive may be a rather powerful one and
may impel him to perform noble sacrifices. When some employers have compassion for their
fellowmen, they may undertake labour welfare measures for the benefit of their workers. In
fact, the labour welfare movement began in the early years of the Industrial Revolution with
the support of such philanthropists as Robert Owen. In India, Mahatma Gandhi was one of
the eminent philanthropists who strove for the welfare of labour.
ii.

Gandhian / Trusteeship Theory:

According to this theory, the industrialist or employer holds the total industrial estate,
properties, and profits accruing from them in trust. In other words, he uses it for himself, for
the benefit of his workers, and also for the society. The employers therefore have the moral
responsibility to look after the interests of their workers. There is naturally no legal binding;
but since it is a moral obligation, it is supposed to be no less effective. The main emphasis
here is on the idea that employers should provide, out of the funds under their control, for the
well-being of their workers. Mahatma Gandhi very strongly advocated the trusteeship theory.
iii.

The Placating Theory:

This theory is based on the fact that labour groups are becoming demanding and militant, and
are now more conscious of their rights and privileges than ever before. Their demand for
higher wages and better facilities cannot be ignored. According to this theory, timely and
periodical acts of labour welfare can appease the workers. They are some kind of pacifiers
which come with a friendly gesture. Sincerity may lack in such measures though discontent
can be brought off in this manner.
iv.

The Functional / Efficiency Theory:

Under the functional or efficiency theory, welfare work is used as a means to secure and
preserve the efficiency and productivity of labour. It is obvious that if an employer takes good
care of his workers, they will tend to become more efficient and will thereby step up
productivity. But all this will depend on a healthy collaboration between union and
management and their mutual concern for the growth and development of the industry.
Higher production is of benefit to both management and labour. The latter will get better
wages and also a higher share in the profits. This is the functional aspect of welfare having
efficiency as its purpose. This theory is a reflection of contemporary support for labour
welfare. It can work well if both parties have an identical aim in view, that is, higher
production through welfare.
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v.

Public Relations Theory:

This theory provides the basis for an atmosphere of goodwill between the labour and the
management and also between the management and the public. Labour welfare programmes,
under this theory, work as a sort of publicity and help an industrialist to build up good public
relations. The measures for labour welfare may also be utilized to improve relations between
management and labour. An exhibition of a labour welfare programme may help an
industrialist to project to the public a good image of his company.
vi.

The Police Theory:

1. According to this view, employers will not leave any opportunity of exploiting the
workers, if not enforced by law. They may force the labour to work for long hours, by
paying low wages, by keeping unhygienic conditions, by neglecting, safety and health
measures, by ignoring the basic necessities.
2. This is based on the contention that a minimum standard of welfare is necessary for
labourers. Here, the assumption is that without policing, that is, without compulsion,
employers do not provide even the minimum facilities for workers.
3. Hence, the state has to intervene to provide minimum standard of welfare to the
working class. The state has to take the role of policeman and compel the employers
to provide welfare facilities, and punish the non-complete.

vii.

The Religious Theory:

1. This is based on the concept that man is essentially a religious animal. Even today,
many acts of man are related to religious sentiments and beliefs.
2. These religious feelings sometimes prompt an employer to take up welfare activities
in the expectation of future emancipation either in this life ore after it.
3. It is all based on Hindu concept of re-birth and on the belief system what we are today
is the resultant of our deeds in the last birth and what we do now will be reflected in
our next birth in the coming future.
4. This is why the benevolent acts of welfare are treated either as an investment or
atonement.

Labour Welfare Agencies in India

In India, the main agencies engaged in labour welfare include: (a) Central Government;
(b) State Governments;
(c) Employers;
(d) Workers organisations; and
(e) Voluntary organisations.
The contributions of these agencies are discussed below:
a) Central Government:
The Central Government has passed a number of Acts for the welfare of different types of
workers. It also administers the implementation of industrial and labour laws. The important
Acts which incorporate measures for the welfare of the workers are: Factories Act, Indian
Mines Act, Employment of Children Act, Maternity Benefits Act, Plantation Labour Act, etc.
Under these Acts, employers have to provide certain basic welfare facilities to the workers.
b) State Government:
The implementation of many provisions of various labour laws rests with the State
Governments. The State Governments run health centres, educational centres, etc. for the
welfare of the workers. They also keep a vigil on the employers that they are operating the
welfare schemes made obligatory by the Central or State Government. The State
Governments have been empowered to prescribe rules for the welfare of workers and appoint
appropriate authorities for the enforcement of welfare provisions under various labour laws. 7
OSN Academy, Lucknow
c) Employers:
Many employers provide voluntarily welfare facilities alongwith the statutory welfare
facilities. These include residential lease accommodation to employees, medical and transport
facilities, reading rooms, scholarships to children of workers, patronize teams of employees
for hockey, football, etc. Employers can provide welfare facilities individually or collectively
i.e., through their associations. Employers have to play a major role in providing welfare
facilities to industrial workers.
d) Trade Unions:
Trade Unions are supposed to raise the welfare of workers and naturally they are expected to
provide certain welfare facilities to their members. Unions can provide educational cultural
another facilities to their members. Some trade unions like the Rashtriya Mill Mazdoor Sangh
are doing good work in the field of labour welfare. In addition, Textile Labour Association,
Ahmedabad provides certain facilities like schools, social centres, libraries, legal aid, etc. to
the textile workers.
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e) Voluntary Organisation:
Some social-welfare and charitable organisations conduct social welfare activities which are
useful to all sections of the society including industrial workers. These agencies provide
medical aid, educational facilities, scholarships, etc. However, the contribution of such
organisations in labour welfare is not so significant.

Types of Welfare Services

Welfare Services related to physical and social well-being of the employees both within and
outside the organisation. Within the organisation these include provision of medical benefits,
recreational facilities, libraries, canteens, rest rooms, etc. They may also include meals and
refreshments supplied free of cost or at subsidized rates to the employees. But outside the
organisation, welfare arrangements include provision of housing accommodation, education
of children of employees, sports fields, medical facilities for the family, etc.
Classification of Welfare
1) Statutory:
Those which have to be provided irrespective of size of establishment, say, drinking water.
Also, those which have to be provided subject to the employment of a specified number of
people, e.g. Crche are also part of statutory welfare amenities.
2) Non-Statutory:
In the case of certain amenities, there are no minimum standard laid down as in the sphere of
housing, medical treatment, recreation, transport and educational facilities. This is left to the
discretion of the employer.
Statutory Welfare Amenities
Sections 42 to 49 of the Factories Act, 1948 contain specific provisions relating to welfare of
labour. Sec.42 to 45 apply to all factories irrespective of the number of workers employed.
Secs. 46 to 49 are applicable to factories employing more than a specified number of
workers. These provisions are discussed below:
a) Washing Facility (Sec.42):
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.
b) Facilities for Storing and Drying Clothing (Sec.43):
The State Government may, in respect of any factory or class or description of factories,
make rules requiring the provisions therein of suitable places for keeping clothing not worn
during working hours and for the drying of wet clothing.

c) Facilities for Sitting (Sec.44):

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.
d) First-Aid Appliances (Sec.45):
i.

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.

ii.

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.

e) Canteens (Sec.46):
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.
f) Shelters, Rest Rooms and Lunch Rooms (Sec.47):
In every factory wherein more than one hundred and fifty workers are ordinarily employed,
adequate and suitable shelters of 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.
g) Creches (Sec.48):
In every factory wherein more than 30 women workers are ordinarily employed, there shall
be provided and maintained a suitable room or rooms for the use of children under the gage
of six years of such women.
h) Welfare Officers (Sec.49):
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.
9

i.

ii.

Further, provisions were made in other acts also for the appointment of welfare
officers. For example, Sec.18 of the Plantations Labour Act, 1951 requires: In
every plantation wherein 300 or more workers are ordinarily employed, the
employer shall employ such number of Welfare Officers as may be prescribed.
Section 58 of the Indian Mines Act, 1952 provides: For every mine wherein 500
or more persons are employed ordinarily, the owner, the agent or manager shall
appoint a suitably qualified person as Welfare Officer.

Non-Statutory Amenities
a) Economic Services:
The employees often need money for purchase of bicycle, scooter, T.V., sewing machine, fan,
etc. to raise their standard of living. The employer may advance them the money which could
be paid back by the employees in the form of monthly instalments to be deducted from their
salaries. The employees may also be induced to build up their own funds for future
contingencies.
b) Recreational Services:
Management may provide, for recreational facilities. More agreeable informal atmosphere is
promoted through the contacts and relationships built up in the recreational events. The
management may provide for indoor games like Table Tennis in the common room for
employees. In case of big organisations, management may also arrange for playgrounds for
outdoor games and induce the workers to prepare teams to play matches with other similar
teams
c) Facilitative Services:
These are conveniences which the employees ordinarily require such as:
i.

Housing Facilities:

Some organisations construct flats for their employees and provide the same either free or at a
nominal rent. In some cases, cash compensations are given while in other cases ,loans are
advanced to the employees to enable them to construct or purchase their own houses or flats.
ii.

Medical Facilities:

Health is one of the foremost things for the employees and it is but natural that there may be
some injuries because of accidents while working. So first-aid facilities must be provided for
within the factory premises. In addition, medical scheme is generally in operation under
which reimbursement of medical expenses actually incurred is allowed. The organisation may
also prescribed doctors from whom the employees may get services in case of need.
10

iii.

Washing Facilities:

It is necessary to provide for wash basins and washing facilities to be conveniently accessible
to all workers which should be clean, properly separated and screened for the use of male and
female employees.
iv.

Educational Facilities:

Educational facilities may be provided by the organisation to the employees children by

starting a school for them.
v.

Leave Travel Concession:

Many organisations reimburse actual fares incurred by the employee in undertaking a tour
along with his or her spouse and minor children once during a specified number of years.

11

Social Security
Like other socio-economic concepts, the connotation of the term social security varies from
country to country with varying political ideologies. For example, social security in the
socialist countries implies complete protection to every citizen of this country from the cradle
to the grave.
In other countries which are relatively less regimented ones, social security refers to measures
of protection afforded to the needy citizens by means of schemes evolved by democratic
processes consistent with resources of the State.

Concept:
In general sense, social security refers to protection provided by the society to its members
against providential mishaps over which a person has no control. The underlying philosophy
of social security is that the State shall make itself responsible for ensuring a minimum
standard of material welfare to all its citizens on a basis wide enough to cover all the main
contingencies of life. In other sense, social security is primarily an instrument of social and
economic justice.

Definitions of social security:

According to a definition given in the ILO publication, Social security is the security that
society furnishes through appropriate organisation against certain risks to which its members
are exposed. These risks are essentially contingencies of life which the individual of small
means cannot effectively provide by his own ability, or foresight alone or even in private
combination with his fellows.
William Beveridge has defined social security as a means of securing an income to take the
place of earnings when they are interrupted by unemployment, sickness or accident to
provide for the retirement through old age, to provide against loss of support by death of
another person or to meet exceptional expenditure connected with birth, death, or marriage.
The purpose of social security is to provide an income up to a minimum and also medical
treatment to bring the interruption of earnings to an end as soon as possible.

Objectives of Social Security:

12

1) Compensation:
Compensation ensures security of income. It is based on this consideration that during the
period of contingency of risks, the individual and his/her family should not be subjected to a
double calamity, i.e., destitution and loss of health, limb, life or work.
2) Restoration:
It connotes cure of ones sickness, reemployment so as to restore him/her to earlier condition.
In a sense, it is an extension of compensation.
3) Prevention:
These measures imply to avoid the loss of productive capacity due to sickness,
unemployment or invalidity to earn income. In other words, these measures are designed with
an objective to increase the material, intellectual and moral well-being of the community by
rendering available resources which are used up by avoidable disease and idleness.

Scope of Social Security

13

The term social security is all embracing. The scope of social security is, therefore, very
wide. It covers the aspects relating to social and economic justice.
All social security schemes furnished by the government are broadly classified into two
types:
(i)
Social Assistance, and
(ii)
Social Insurance.
According to the Social Security (Minimum Standards) Convention (No. 102) adopted
by the ILO in 1952, the following are the nine components of social security that
configure its scope:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)

Medical care,
Sickness benefit,
Unemployment benefit.
Old age benefit,
Employment injury benefit,
Family benefit,
Maternity benefit,
Invalidity benefit, and
Survivors benefit

Need for Social Security

14

One moot question to be answered is why there is a need for social security especially in
India. As has already been mentioned, the underlying philosophy of social security is to
ensure a minimum level of material living to the needy or helpless ones of the society by the
State.
Our accumulated experience reveals that in an industrial economy, the workers have been
subjected to periodic unemployment due to cyclical fluctuations in business, sickness,
industrial accidents and old age. In fact, there is nothing more disconcerting to worker and
his/her family than unemployment.
Similarly, while sickness suspends earning capacity of a worker temporarily, industrial
accidents may disable him/her partially or even permanently, and old age may put a stop to
his/her ability to earn and support himself/herself and the family. The capitalist having
sufficient resources have no problem in facing such risks of life. But, the worker does not
have resources required to face the risks caused by sickness, accidents, unemployment and
old age.
Nor has he/she alternative sources of livelihood or accumulated property to overcome the
period of adversity. Such a situation underlines the need for social security to be provided to
such needy workers/people. Naturally, the Government has, then, the obligation to help the
needy and helpless workers and provide them security to pass through in period of adversity.
That the need for social security is realized not only to afford the needy workers protection
against the adversities of life, but also for the overall development of the State is well
elucidated by a former veteran trade union leader, the President of India, Mr. V.V. Giri. He
opines that, Social security measures have two-told significance for every developing
country.
They constitute an important step toward the goal of a Welfare State, by improving living and
working conditions and affording the people protection against the uncertainties of the future.
These measures are also important for every industrialisation programme, for not only to
enable workers to become more efficient but they also reduce the wastage arising from
industrial disputes.
The man-days lost on account of sickness and disability also constitute a heavy drain on the
slender resources of the worker and on the industrial output of the country. Lack of social
security impedes production and prevents the formation of a stable and efficient labour force.
Social security is, therefore, not a burden, but a wise investment in the long run.
Thus, the need for a comprehensive programme of social security in India is so strong that it
needs no more proof or evidence. It is must to ensure a minimum level of living for those
who are helpless on various counts.

What is Employees Grievances in HRM?

15

Employees are human beings and they have certain expectation, assumptions, norms, values
and represent their culture. If the management or organization doesn't respect their human
aspects they become dissatisfied and it may turn into grievance of employees. And type of
inhuman or injustice behavior can cause grievance of the employees. Apart from this, lack of
appropriate motivation, unnecessary or unscientific cannot system and ineffective leadership
can also be the reason for grievance.
Employees may be grievant due to the existing policy, rule, work procedure or dissatisfaction
due to the certain behavior. If the level of dissatisfaction goes on increasing then they put the
written complaint about it to the management which is known as grievance. Grievances are
concerns, problems or complaints that employees raise to their employers. The Employment
Relations Acts gives all employees the rights to pursue a personal grievance if they have
genuine complaints Employee grievance has negative effect in the organization. If it is not
solved in time, employees may participate in the unfavorable activities like protesting, strike
and lockout. This will reduce the productivity of organization and the dispute or conflict
between the management and employee may arise. Capable, experienced and genuine
employees may leave the organization. Production cost may be genuine employees may leave
the organization. Production cost may be increased and the quality of products and services
may deteriorate.
In summary, the written complaint relating to the feeling of inequality or injustice registered
by an employee through a formal process is known as employee grievance. It is the apex
situation of their dissatisfaction towards any incident or behavior directed towards the
management. There are various forms of grievances like behavior, experience, complaint,
activity, etc. This will make the distance between the employees and the management and
may hamper in the mutual trust, coordination and cooperation. Employee grievance adversely
affects the organization. So, it has to be settled as soon as possible.

Grievance Handling Procedure in HRM:

16

A complaint can become a grievance when it is brought to the formal notice of the
management. It is the peak level of dissatisfaction. Grievances may be factual, imaginary or
disguised. Grievance handling is a sensitive task focused to reduce or eliminate employees
dissatisfaction. Grievance when takes a collective form, can destroy organization's image and
sometime challenge its existence. So, it should be addressed on time. Following procedures
can be followed in grievance handling:
1. Open door policy:
Some companies have an informal and open door policy for grievance handling. Employees
are free to walk in any time and express their grievance to higher level of management. This
approach facilitates upward communication from employees to management. This approach
makes aware about the employee grievances to the management. Prompt handling of
grievances is possible at minimum time and cost. This type of approach is suitable for small
organizations where managers are familiar about their employees and working environment.
Management can allocate adequate time for grievance handling in small organizations.
2. Step ladder procedure:
Since the open door policy is not suitable for large organizations. Most of these companies
have followed step ladder procedure for the settlement of grievances. Grievance procedures
are typically designed to resolve grievances as quickly as possible and at minimum possible
level in the organization. Step ladder procedure is a method of solving the grievance from the
level of origin to the highest level in a step wise way. The grievance is not reached to the
higher level at once. Following steps are taken in this procedure:
i.

Step one: Grievant to Superior:

If employees have grievances, she/he can convey about it to the immediate supervisor. The
grievance is conveyed verbally. Supervisor has to listen with a priority and has to take certain
step for its solution within a fixed period of time. This step is suitable for 'give and take'
approach. If the grievant is not satisfied with, next step is followed.
ii.

Step two: Grievant to Department Chief:

If the grievant employee is not satisfied with the supervisor's decision, she/he will present the
complaint letter to the department head. Department head will study, analyze and solve the
grievance within a fixed time period. If the grievant employee is not satisfied with the
decision of department head, next step is followed.

iii.

Step three: Grievant to Grievance handling committee:

17

At this step, grievant employee appeals to the grievance committee. Generally, in large
organization, grievant committee is formed of experts in different discipline. This committee
includes the representatives of employers and employees. Committee identifies various
alternative solutions. If required, they can suggest for the chance or revision of the policy and
procedure. The committee gives a decision within a fixed period of time.
iv.

Step four: Grievant to Chief Executive Officer:

If grievance handling committee is unable to satisfy the grievant employees, they can present
their grievance to the chief executive officer. Chief executive will mobilize the sources and
execute authority within the boundary of act, law, policy, rules and directives to handle the
grievance. If the grievance is not handled or resolved at this level, it goes outside the control
of organization. So, the CEO tries to solve the problem with full extent.
v.

Step five: Grievant to Arbitrator:

If CEO cannot satisfy the grievant employees, it may take a serious form. With the consent of
employers and employee, reliable and independent person of organization or committee will
be selected as arbitrator to handle the situation. In this mediating committee, mediator and
representative of employees and employers will be included. On the basis of complaint,
mediator will study the problem seriously. Mediator will discuss with the employer and
grievant employees separately. After different serious of discussion, appropriate alternatives
will be identified, agreed by both of the parties. Generally, the solution prescribed by the
mediator is acceptable to both of the parties.
vi.

Step six: Grievant to labor court:

If arbitrator is also unable to solve the grievance, it goes to the labor court. In the labor court,
complaint is registered as a case. Both of the parties hire lawyers from their side. Court
decides the date of hearing. On that particular date, lawyers argue for and against the case.
Judge decides on the basis of legal provision, proofs, argument and reasoning presented by
the lawyers. This decision is bounded to be accepted and followed by both of the parties.
Party who do not obey the counts decision is subject to be punished.

Model Grievance Procedure

18

The National Commission on Labor has suggested a model grievance procedure which would
ensure the speedy settlement of grievance.
The model comprises of the five steps as outlined below:
1. The aggrieved employee shall convey his or her grievance verbally to the officer
designated by the management to deal with grievance. The officer will have to reply to
the complaints within forty-eight hours of its presentation to him or her.
2. If the grievant is not satisfied with the answer or does not receive the answer within 48
hours, he or she shall, then, present the grievance to the departmental head nominated
for this purpose. The head must give his or her reply within three days of the
presentation of the grievance.
3. If the aggrieved employee is still not satisfied with the decision of the departmental
head or does not receive within the stipulated period, the employee can approach to the
Grievance Committee for the settlement of his or her grievance. The Grievance
Committee has to give its recommendations in seven days and report the same to the
management. The management must communicate the decision to the grievant within
three days.
4. If still employee is not satisfied either with the decision made by die Grievance
Committee or does not receive decision from the committee, he or she can make appeal
to the management for revision of the decision taken. The management can take a week
period for appeal to be considered and the revised decision to inform to the grievant.
5. If the employee is still not satisfied with die managements decision, the grievance is
referred to a voluntary arbitration within a week after decision taken by the
management at stage 4. The decision of the arbitrator is final and binding on both the
parties, i.e., the management and the union.

19

Effective Grievance Management System

20

People often gripe and complain about the place where they work or the job that they do.
Sometimes these complaints are simply idle chatter. In some cases, however, legitimate and
grievous problems do exist, and in these cases corporations are wise to heed the rumblings
from employees and address complaints in an open manner. An effective grievance
management system makes employees feel as though their concerns are being treated with
respect.
1. Open and Non-Threatening
Grievance management procedures should be open and non-threatening. If employees feel
that their jobs or positions will be in jeopardy if they report a grievance, they are less likely to
pursue communication with management and more likely to leave their positions or file civil
litigation against the company. Making management accessible and allowing employees to air
their concerns without fear of reprisal is one key to an effective grievance management
procedure.
2. Time Frames
Another important part of any grievance management procedure is to set expectations and a
time frame on both reporting and responding to claims. By creating a clearly-defined
schedule as to when grievances should be reported, whom they should be reported to, and
how the process should be handled once a report has been made, companies show employees
that the process is effective. In addition, creating a time frame or time limit for response from
management is also an excellent idea. By doing so, employees know that they will receive an
answer rather than feeling their complaint is ignored.
3. Compliance with the Law
Some grievance management procedures are mandated by the federal government and are
overseen by government organizations, and as such cannot be deviated from very much.
Cases such as sexual harassment, unsafe working conditions, or racial or gender
discrimination must be handled according to federal guidelines in order to avoid fines,
lawsuits, or visits from federal agencies. In these cases it is best to follow the federally
prescribed guidelines as closely as possible when creating your grievance procedures.

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