CHAPTER-1

1
 INTRODUCTION

Labour welfare is a important fact of industrial relations. These give satisfaction to

the worker and ensure that proper remuneration is achieved. With the growth of industrial
mechanization and computerization, labour welfare measures has got flip.The workers in
the industries cannot cope up with of modern life with minimum sustenancesamenities.
The workers are need of added stimulus to keep body and mind together. Labourwelfare,
through it has been provided to contribute to efficiency in production, isexpensive. Each
employer provides welfare measures of varying degrees of importance for labour force.
The social and economic aspects of the workers have direct influence on the social and
economic development of nation. There is an imperative need to take extra care of the
workers to provide both statutory and non-statutory facilities to them. The welfare facilities
helps to motivate and retain employees.Mostof the welfare facilities are matters of
sanitation and hygienic which is not provided dissatisfaction among workers are motivated
by providing welfare measures. This ensures employees satisfaction result in increased
efficiency.

Employee welfare measures may help to minimize social evils like

alcoholism,gambling,drug addiction etc.The workers are likely to fall in victim because of
discontentment or frustration. The welfare facilities induce the workers happy, cheerful and
confident with commitment.

The welfare measures and schemes form an integral part of personnel and HR
Management in any organization will go a long way in victim because of discontentment
or frustration. The welfare measures are designed and systematized by the organization
through statutory bodies like trade union.

The labour department of the government insist upon minimum amenities to be

implemented in any organization. This will ensure that maximum standards are required
for an employees to carry out the duties and perform functions to the extent f satisfaction.

Labour welfare is the key to smooth employer employee relation. In order to

increase labour welfare offer extra incentives in the form of labour welfare schemes and to

2
make it possible to pursued workers to accept mechanization, voluntary benefits are the
result employers generosity ,enlightenment and philanthropic.

In its broadannotation, theterm welfare refers to a state of living of an individual or

group in a desirable relationship with total ecological, economic and social,
conceptuallyas well operationally, labour is a part of social welfare which, inturn, is closely
linked to the concept and the role of the state.

Labour welfare is extension of the term welfare and its application to labour.
Welfare is desirable state of existence involving the physical mental and emotional
wellbeing .All the three elements together constitute structure and welfare on which it is
totally based .During the industrialization, process the state on labour productivity
increased; and brought about change in the thinking n labour welfare.

3
 OBJECTIVES OF THE STUDY

This study has been carried out with the following objectives

To study about the performance of employees.

To study about the present compensation management of the Canannore spinning

&weaving mill, Mahe.

To find out prevailing labour welfare measures and social security in the mill.

To know the motivational factors provided to the employees.

To know the work culture of the mill.

To measure employees satisfaction with service effectiveness of various service

function.

To study the socio-economic profile workers of the Canannore spinning and weaving

mill.

To study the various welfare facilities of the organization.

To the employees opinion about the existing labour and working conditions.

To find out extent to which employees are satisfied with labour welfare facilities

undertaken in Canannore spinning and weaving mills.

4
 To give suggestions to improve the labour welfare in Canannore spinning and weaving

mill.

To know what the deterrents in the adoption of labour welfare measures are.

SCOPE OF THE STUDY

Employees or labour welfare measures are a comprehensive term including various

services benefits and facilities offered to employee by the employer. Welfare measures may
also provide by the government agencies in addition to the employer. These benefits are
offered to workers to stimulate their interest in their work done and to make their job more
attractive and productive for them there by company can earn more.

Employee attitudes are important to human management because they affect an

organizational behavior. In particular, a relating to job satisfaction and organizational
commitment is of major interest to field of organizational behavior and the practice of
human resource management. Job satisfaction focuses on employees attitude towards their
jobs and organizational commitment focuses on their attitudes towards the overall
organization.

The provision to welfare facilities can be and are important maintaining the
employees and reducing or keeping turnover and absenteeism low. The employees are
considered as the nerve system of every company. If we have sufficient workers .we have
no existence in the industry .In order to increase the level of performance of their lower
level employees and executives the company is giving a lot of welfare measures and other
facilities.

5
 The study helps us to know about the effectiveness of various welfare measures
employed by the company and also helps to know about the workers perception towards
the welfare measures and how far these measures and how far these measures help the
company to motivational level of the employees.

This study also helpful to know about the company in analyzing what are the
further measures which may introduced and which helps to increase the satisfaction level
of employees.

STATEMENT OF THE PROBLEM

The management cannot do all things itself. It has get through people .If the people
are not property motivated the management will not able to accomplish the desired result.
Therefore human resource carefully managed with utmost care to inspire, encourage and
impel them to contribute their maximum for the achievement of the organization. Labour
welfare is the facilities services to build maintain the moral of the workers to achieve the
objective the objectives of the organization. Hence a study on labour welfare will help the
management in effective utilization of its human resource.

6
 LIMITATION OF THE STUDY

The following are some of the limitations of the study conducted in Canannore
spinning mill, Mahe.

To sample was confident to50 respondents. So this study cannot be regarded as

full proof one.

To study depends entirely on the response of the employees.

Due to the time constraints, there is a possibility of error as of the hasty entry of

data the respondent entry of data by the respondents.

The personnel details of the employees could not be collected during the survey.

Some respondents hesitated to give the actual situation; they feared that

management would take any action against them.

There was a fear reprisal among the employees to reveal the actual satisfactions.

The findings and conclusions are based on knowledge and experience of the

respondents sometimes may subject to bias.

Due to the confidentiality of the employees some of the information was not

revealed which had limited the study.

The head office does the major activities of the mill; it is very difficult to collect

some data related with the people.

7
 Bias from the respondents might have also made errors in the study.

8
 RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
may be understood as a science of studying how research is done scientifically.

RESEARCH DESIGN

The research design of this study is descriptive in nature. Descriptive research

describes the state of affairs, as it exists at present, the present study adopted is the
questionnaire method of research. It covers the workers of Canannore spinning and
weaving mill, Mahe

TOOL FOR DATA COLLECTION

The tool for data collection is questionnaire is a list of questions framed so as to get
the facts.

SOURCES OF DATA

(1) Primary data

Primary data collected with questionnaire method.

(2) Secondary data

Secondary data are collected from company records, journals, website etc.

SAMPLE SIZE

Sample size of the study is 50 workers in the organization.

SAMPLE UNIT

Workers in all departments of the company.

TOOL OF DATA

9
The data are analyzed using simple percentage analysismethod.

CHAPTER-2

10
 INDUSTRY PROFILE

The textile and clothing industry is one of the most important industries in the
Indian economy. Not only its the largest foreign exchange earner, contributing to over
20%of Indian s exports and 14%industrial output ,but it also accounts for more than 5%
of GDP and provides direct employment to 38 million people .In fact ,it is the second most
important sector next only to agriculture.

National Textile Corporation (NTO) is the single largest textile central public sector
enterprise under ministry of textile through its 9 subsidiary companies spread all over the
India. The headquarters of the groups around 22000 employees. The annual turnover of the
company in the year 2004-2005 was approximately RS.638 crores having capacity of 11
lakhs spindles, 1500 looms producing 450 meters of cloth annually. NTC was incorporated
in 1968 with the main objective of managing of affairs of 16 sick textile mills taken over
by the government.NTC took over more sick textiles mills under the three nationalization
IDA Act.(1974,1986,1995), raising its numbers up to 125 mills in 1995.NTC with a view
to modernize its 22 mills by itself has drawn a schedule of implementation plan and
purchase orders for new machineries are being placed from April 2006.

NTC to complete modernization of its 22 mills December 2007 simultaneously

thes mills are carrying out renovation of old machineries proposed to be retained and have
also under taken necessary civil, electronically and other preparatory works for new
machines so that the machines are commissioned within scheduled timeframe.

After modernization NTC is projected to produce 600 lakhs of yarn and 250 lakhs
meters of cloth annually with a turnover of more than RS.931 crores in the year 2009 10.To
ensure the quality of cotton. Fiber and other raw materials produced and used by NTC
conform to the standards laid down by the Textile Research Association .To ensure the
supply of quality of the products to consumers ,testing of materials and finished goods is
done at two stages that is at the mill level and a the subsidiary level. Further the textile

11
research center has been engaged to study the performance of the mills for reducing the
cost manufacturing.

They have also fixed achievable norms which can be achieved by the mills with the
existing conditions or status of machinery and manpower, to make most efficient use of
available and to leverage asset to generate resources for modernization. To reduce surplus
manpower through voluntary retirement scheme as also retain and redeploys the manpower
r. To improve the productivity of machines to better up keep and maintenance of the
equipment with the view to improve the productivity at achievable norms. As labour
productivity is concerned efforts are made to standardize or finalize work load norms per
operative as per standards laid down by the textile Research in different regions .Thus
efforts are being made to make best use of resources whether land machines or manpower.

12
 COMPANY PROFILE

Canannore spinning and weaving mill located Mahe part of union territory of
Pondicherry is a part of NTC is the one of the leading textile company under the
government of India. It has a glorious past but now it is in a crucial condition. They
struggle for the existence. It has 6 textile mills included in Kerala and Mahe. It has a
glorious past but now it is in a crucial condition. They struggle for the existence. It has 6
textile mill included in Kerala and Mahe they are;

1. Canannore spinning and weaving mills Mahe

2. Canannore spinning and weaving mills , Kannur

3. Alakappa textile (cochin)mills, Mahe

4. Kerala Lakshmi mills, Mahe

5. Parvathy mills, Kollam

6. Vijay mohini mill ,Trivandrum

The he Canannore spinning and weaving mill,Mahe is done of the biggest

organization in its kind at Malabar region. Starts its production in 1964 under private
sector situated at Peringadi. Mahe .It was promoted by Mr.kayyath Damodharan.

Due to some financial and labour problems the mill was closed 23 rd June 1971
thereafter on 2rd may 1972 it was taken over by the government of India under industrial
development act and substantially nationalized and sick textile undertaken nationalization
act 1974 effective from 1 April 1975.

From its nationalized the mill put under the control of national textile corporation
Ltd. (Andhra Pradesh, Kerala,Karnataka &Mahe).The mill comes under the Bangalore
subsidiary of NTC which covers 16 mills. Science the mill was taken over by the NTC,
long term settlement was enters between the management and union in the service

13
condition, wages etc.in the year 1982 under an expansion program, the spindle capacity of
mill is raised to 30,240 spindles, the initial capacity of the mill was 20.160 spindles.

The mill facing strategically financial problems. The mill is running in loss.
The reason behind it is the competition that is faced private and the mill was started in
1964 and it uses the technology that has installed during that time. The mill has several
departments. Its mainly producing cotton yarn from cotton fibers its products comes under
the brand name NTC .However whenever competition increases ,every firm needed to
service by taking in to consideration all new technologies which will help to produce large
volume of products in low cost of production.

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 PLANT LAYOUT CHART
Production sectionEngineering Room Rest Room

Storage
Administration Building

Security
Canteen

15
 ORGANISATION CHART

General Manager

Spinning Manager Finance Manager Deputy Personal Manager

Sales staf Account Staf

Provident Fund Clerk

Personnel Section ESI Clerk Asst.Security

Deputy Spinning Manager

Asst. Spinning Manager Supervisory Staf

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 REVIEW OF LITERATURE
Employees or labour welfare is a comprehensive term including various services
benefits and facilities offered to the employee by the employer. Through such generous
fringe benefits the employer makes the life worth, living for employees .The welfare
amenities are extended in addition to normal wages and other economic rewards available
to employees as per legal provisions.

According to Dec Enzo and Robbins, HRM is concerned with people dimension in
management .since

According to Dr.Parandikar, labour welfare work is work, for improving health,

safety, and general well-being and industrial efficiency beyond, the minimum standard lay
down by the labour legislations.

Welfare measures may also provide by the government, trade union, and non-
government agencies to the employer. The basic purpose of the labour welfare measures is
to enrich the life of the contented. Welfare measures may be employees and keep them
happy and statutory and voluntary.

Labour laws require the employer to extend certain benefits to employees in

addition to wages. Voluntary benefits are the result of employers generosity,
enlightenment, and philanthropic feelings.

Labour welfare is an important fact industrial relations giving satisfaction to the workers in
way , which even a good wage cannot modern welfare may be set to have been the
outcome of the movement for the better and more efficient management industry including
the human angle. The term welfare suggests many ideas, meaning, and connotations such
as state of wellbeing, health and happiness, prosperity and development of human
resources.

Welfare is a describe state of existence involving the physical mental and emotion
wellbeing. All the three elements tighter constitute structure and welfare which is totally
obtained.

17
 PERSONNEL DEPARTMENT OF CANNANORE SPINNING AND
WEAVING MILL, MAHE
Personnel department is concerned with peoples dimension in an organization the
origin of personnel management and its current status helps the management of employees
in an organization .Personnel management is concerned with establishing maintaining, and
developing employees capability and well beings.

Personnel management is that part of management, which is related management of

workers and employees.It is that part of management which arranges for the satisfactory
management of employees of an enterprise .Personnel management is known as personnel
administration also.

According to Edwin B Flippo The personnel function is concerned with the

procurement development,compensation, integration and maintains of the personnel of an
organization major goals or objectives. Therefore personnel management is the
platinum,organizing, directing and controlling of the performance of those objectives
functions.

Personnel management establishes harmonious relations between labour and capital

in the enterprises. Personnel helps to increase the welfare of workers and employees
engaged in an enterprise. This department is concerned with recruitment, selection
reward , appraisal , development , industrial , relation , retirement, retirement , resignation ,
termination , and dismissal .

Personnel managements important has been increased in modern days with the
growth and development of business and industrial activities. Employees and workers feel
themselves a part of the enterprises because of personnel management personnel
department is the important part of the business concern, because without personnel the
business cant run smoothly.

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 The personnel department in an organization is very much important because
almost all of them are using the man power for production activity. The Canannore
spinning and weaving mill have set up a separate personnel department to control and carry
out all the activities of employees.

The mill has a deputy personnel manager (DPM) who is in charge of this
department. He has the in charge of this department also. He had all the basic
responsibilities of a personnel management. That is handling personnel problems with
workers, give advice, counseling,controlling, dealing with long term effectiveness of the
company etc.

The human resources department is responsible for the creation of the organization
structure in that way which ensures better working environment and quality. They deal
with personnel administration (keeping records, stalling etc.), industrial relation (employee
assistance,motivation, grievance etc.) in their usual course of operation.

The total strength of the employees in the mill is 308.Out of these 246 permanent
workers,4 aresupervisors, 30 are office staff,and 1 is security inspector. At present the mill
is working 6 days in a week 3 shifts per day.

The mill has well designed categories of workers. In this mill employees and
employers are great uniformity. So the working of this mill is an efficient one. On the part
of the employees the mill strength is divided into twocategories. They are mill staff and
NTC staff. The NTC staff has 12 members and they are appointed directly by the national
textile corporation.

The mill has been provided the rules and regulations of the governmentthe
government banned in making new appointments in the mill. Therefore the man power is
managed by taking them as Gate badhalis who are paid by daily wages. Gate badhalis are
workers out of the organization. They have no power in the mill. Gate badhalis includes
trained personnel so they can be used any department of the firm.

Type of Gate Badhalis;

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 Trained Gate badhalis(TGB)

Open Gate Badhalis (OGB)

Depended Gate Badhali

BENEFITS OF LABOUR IN CANNANORE SPINNING & WEAVING

MILL

WAGE ADMINISTRATION

There are two types wage payments system followed in Canannore spinning &
weaving mill according to the production stages. For mixing, Blow Room and Carding,
wage are paid on the basis of piece Wage system and for all other production process Time
Rate System is obtained.

METHODS OF WAGES PAYMENT

A. Time Rate System

B. Piece Rate System

A. Time Rate Wage System;

When wage is paid related to the hours worked, days worked weekly wage and
monthly wage payment is known payment of reward by time wage system. In these
method workers doing job will get same wage rate.

The wage is calculated as;

Wage = Time* Rate/hour

Merits of Time Rate Wage System;

20
The merits of the rate wage system are;

1) It is simple, forthe amount earned by a worker easily calculated.

2) As there is no time limit for the execution of a job , workmen are not in a
hurry to finish it and this may mean that they will pay attention to the quality
of their work.

3) As all the workmen employed for doing a particular kind of work receive the
same wages , ill will and jealously among them are avoided.

4) Due to the slow and study pace of the worker , there is no rough handling of
machinery , which is a distinct advantage for the employer.

5) It is the only system that can be used profitably where the out of an
individual workmen or group of employees cannot be readily be measured.

6) The day or time wage provides a regular and stable income to the
workers and he can, therefore adjust his budget accordingly.

Demerits of time rate wagesystem:

The maindrawbacks of this system are;

1) It does not take in to account the fact that men are of different abilities
and that if all the persons are paid equally, better workmen will not get any
incentives to work harder and better. They will therefore be drawn to the level
of the least efficientworkmen.

2) The labour charges for aparticular job do notremain constant. This put the
authorities in a difficult position in the matter of quoting rates for a piece of
work.

3) As no record of an individual workers does not now the amount of work

that will be put in by each worker, the total expenditure on wages for
turning out a certain piece of work cannot be adequately assessed .

21
 4) As on record of an individual workers out put maintained it becomes
difficult for the employer to determine his efficiency for the employer to
determine his relative efficiency for purposed of promotion .

B. Piece Rate Wage System or Paymentby Result(PER):

According to this method a worker is paid according to the work done by him .

Wage = Number of units produced * Rate per unit

Merits of Piece Rate Wage System;

1) It pay the workmen according to his as reflected I n the amount of work turned out
by him. It satisfies industries and efficient worker, for he fined that his efficiency is
adequately rewarded. This gives him a direct stimulus to increase his production.

2) Supervision charges are not so heavy, for workers are not likely to while away their
time since they know that their wages are dependent upon the amount of work
turned out by them.

3) Being interested in the continuity of his work, a workman is likely to take greater
care to prevent a breakdown in the machine or in the workshop. This is appoint of
considerable gain to the management, for it reduces plant maintenance charges.

4) As the direct labour cost per unit of production remains fixed and constant.
Calculations of costs while filling tenders and estimates becomes easier.

Demerits of Piece Rate Wage System;

22
 1) As the workers wish to perform their work at break neck speed, they generally
consume more power, over work the machines, and do not try avoiding wastage of
materials. This results in s high cost of production and lower profits.

2) Theres greater chance of deterioration in a quality of work owing to over

zealousness on the part of workers to increase production. This over zealousness
may tell upon their health, resulting in a loss of efficiency.

3) Excessive speeding of work may result in frequent wear and tear of plant and
machinery and frequent replacement.

4) Trade union is often opposed to this system, for it encourage rivalry among workers
and endangers their solidarity in labour dispute.

RETIRE BENEFITS

At the time of retirement the Canannore spinning & weaving mill provided the following
benefits.

Gratuity

Provident fund

Pension

Leave with wages

ADMINISTRATIVE ACTION

If the take long leave the management will not terminate him suddenly. There is a
procedure in Canannore spinning& weaving mill before termination. First the absence is
admitted for counseling. There after the notice is send and then warning notice is sent.
Even then he continues to be absent a call notice is sent. Then the management may
suspend him and after further enquiries termination is held as per standing order.

FUCTIONS OF PERSONNEL DEPARTMENT;

23
The major functions of the personnel /HRM department are as follows;

1. Recruitment and selection

2. Training and development

3. Promotion and transfer

4. Recruitment

5. Compensation

6. Performance Appraisal

7. Labour welfare activities

8. Disciplinary proceedings

9. Personnel records

1. RECRUITMENT AND SELECTION

Recruitment is a process whereby work to be undertaken by an employee is closely

examined and results in the preparation of a job description. Recruitment forms the first
stage in the process, which continues with selection and ceases with the placement of
candidate. It is the next step in the procurement function. Recruitment makes it possible to
acquire the numbers and type of people necessary to ensure the continued operation of the
organization. The company adopts method of recruitment of the staff.

Sources of recruitment employed in Canannore Spinning and Weaving mill;

Employment Exchange

Notification in the companys notice board

Factory gate

24
 Present employees

2. TRAINING AND DEVELOPMENT

Training is a process of learning a sequence of programmed behavior. It gives an

awareness of the rules and procedures to guide their behavior. It attempt to improve their
performance on the current job or prepare term for intended jobs. Development is a related
process .It covers not only those activities which improve job performance but also those
which bring about growth of the personality, helps individuals in the progress towards
maturity and actualization of their potential capacities so that they become not only good
employees but better men and women. This company gives more concentration on the On-
The job Training Method.

3. PROMOTION AND TRANSFER

Companies had order sys that workman may be transferred from the one
department / section / plant to another ,or from one job to another provided that the scale
of pay and continuity of service of the workman concerned are not any way adversely
effected by such transfer , except in the case of transfer the request of the workman.

4. RETAIREMENT

This company is being government undertaking company, retirement in fixed at the age 58
years for national textile corporation staffs 60 in case of other staff.

5. COMPENSATION

The human resources managements main functions is to have a fair knowledge of

sound and attractive compensation policy. The soundness of compensation management
depends upon the amount of wage or salary paid to the employees. The formulation and
administration of sound remuneration policy to attract and retain right personnel in the

25
right position in the right position in the prime responsibility of any organization. The
company is following all the norms in the workman compensation Act. Company is
providing PF, ESI, Gratuity and insurance apart from monthly salary.

6. PERFORMANCE APPRISAL

Performance appraisal orient rating is one of the important Human Resource

Management. Ii is a systematic evaluation of the individual with respects his performance
on the job and his potential for development. In this company performance on the job and
potential for development. In this company performance appraisals are conducted for
promotions, wages and salary administration, training and development,self-improvement
etc.

7. DISCIPLINARY PROCEEDINGS

Good human relation is this section are attendance recording of absence, late
coming, early going , lost ours , overtime , lost wages due to allowances etc.

8. PERSONNEL RECORDS

This company maintains a personnel record of its employees .It is a file consisting
of all details regarding the employee the employee and all data relevant to him. The
records of employees are generally kept at a center place by the personnel department.
These records contain information provided in the original application with subsequent
addition to qualification and experience gained. The outcome of good industrial relation or
discipline. Discipline is essential condition for success in any organization. Discipline is
needed in all levels of organization. A separate wing is concerned with time keeping in the
company, this keeps the attendance register. The main functions of

VARIOUS WELFARE MEASURES WHICH PROVIDED BY AN

ORGANIZATION;

EMPLOYEES PROVIDENT FUND

26
 There shall be a scheme of employees provident fund of contributory nature for the
employees in accordance with the rules to be approved by the board for the purpose under
the provision of employees provident fund and miscellaneous provision Act 1952, the
employer has to contribute 8.33% of wage of employees every month. Employee provident
fund and miscellaneous provision Act 1952, companies the following three schemes;

Employee provident scheme 1952

Employee Deposit-linked insurance scheme 1976

Employee pension scheme 1995 (earlier the family pension scheme 1971)

Objective;

Employees provident scheme 1952 provides for contributory fund; employee

pension scheme 1971 from 16-11-95 provides for monthly pension and employers
deposit-linked scheme 1976 provides insurance cover to the workers In the unfortunate
event of the death of the workers.

The primary objective of these three schemes is to provide social society and to
inculcate amongst the workers a spirit of savings while they are gainfully employed and to
make provisions for benefits after they retire from service for their family members after
their death.

To the employers they provide a labour force, which is essential for the
productivity mid prosperity of the establishment. To the government they provide funds to
considerable magnitude for utilization on various projects and programs designed to
promote economic and social development of the country and wellbeing of its people.

EMPLOYEE PROVIDENT FUND SCHEMES

It makes care of the following needs of the members

Retirement

27
 Medical care

Housing

Family obligation

Education of children

Financing of insurance policy

How the EPF scheme work as per the amendment dated 22-09-97 in the act the
employees and employers contribute to the fund at the rate 12% of the basic wages,
dearness allowances, and retaining allowances, ifany, payable to employees per month. The
rate of contribution is 10% in case of the following establishments

A. Any converted establishment with less than 20 employees

B. Any sick industrial company

C. Any establishment which has at the end of any financial year, accumulated losses
equal to or exceeding its entire net worth. And

D. Any establishment in the:

1 .Jute

2. Beedi

3. Brake

4. Coir

5 .Guar gum industries/factories

Canannore spinning and weaving mill are considered as the sick industry thus the
rate of consideration by the employees in this company is 10% of the basic wages.

LABOUR WELFARE LEGISLATION

28
 Canannore spinning &weaving mill is manufacturing concern which employees
over 528 workers including gate bad lies and trainees. The mill is providing labour welfare
legislation according to the factories Act 1948. Some of them are as follows;

1. EMPLOYEES STATE INSURANCE ACT

It is indented to provide certain benefits in the event of sickness and employment

injury. Under this Act all employees getting salary/ wages up to 10000/-are covered. These
benefits are following;

Sickness Benefits

Disablement Benefits

Maternity Benefits

Dependent Benefits

2. EMPLOYEES PROVIDENTFUND ACT 1952

All employees are covered under this Act where by employees contribute 10% of
their wages / salary and a matching contribution of 10% goes to the PF and the remaining
1.67% is used to from the pension fund. It is beneficial scheme implemented in 1995. If an
employee dies during services, his dependent gets Rs.50000/-as financial help.

3. PAYMENT OF GRATUITY ACT-972

Gratuity is kind of retirement benefits. It is payment which is intended to help the

employees after their retirement, whether the retirement is due to superannuation a
physical disability or otherwise. For every completed year of services a part there of in
excess of 6 months, the employers shall pay gratuity to an employee at the rate of 15 days
wages based on the rate of wages last drawn by the employee concerned. In the case of
piece rate employees daily wages shall be preceding the determination of his employment.

29
 4. THE PAYMENT OF BONUS ACT 1965

Bonus is a cash payment made to employees in addition to wages. Under section 8,

a worker eligible for bonus should have worked in the establishment for not less than 30
days in an accounting year. He is eligible for bonus if he falls within the definition of the
employee under section 2 of the Act.

5. THE PAYMENT OF BONUS

Bonus is a payment made to employees in addition to wages. Under section 8, a

worker eligible for bonus should have worked in the establishment for not less than 30
days in an accounting year. He is for bonus. Eligible for bonus if he falls within the
definition of the employees under section of the Act. The employee who gets salary or
wages up to Rs.10000/-is eligible.

6. NATIONAL & FESTIVAL HOLIDAY ACT

As per Act eligible employees will be given all national named in a year.

ALLOWANCES

1) DEARNESS ALLOWANCES

There are types of dearness allowances for the management of the worker of the
mill, they are;

Industrial Dearness Allowances (IDA) 82.4%of basic salary.

It is given on every 3 months for the employees of his pattern of DA.

Central Dearness Allowances (CDA) 89% of the basic salary.

Variable Dearness Allowances (VDA)

30
 It varies in every 6 months. All the workers of the mill come under the VDA
scheme. They do not get any medical benefit except for the one provided by ESI.

2) CONVEYANCE ALLOWANCE

This provided only for NTC staff. This will be reimbursed with the amount they
spent by travelling for official purpose.

MEDICAL BENEFIT

1. MATERNITY BENEFIT

The pregnant women employee of the cannanore spinning & weaving mill avail the
ESI benefit which include 3 months leave with pay of Rs. 100 per day. Maternity benefit in
cash payable to an insured woman for the specific period of absenteeism from work for
sickness arising out of the pregnancy of miscarriage. The qualification of aninsured women
to claim maternity benefit the condition subject to which such benefit may be given, the
rate and period thereof shall be such as may be prescribed by the central government

2. SICKNESS BENEFIT

It is given by way of periodical payment during the period of certified sickness.

The contribution should have been paid in respect of person for not less than 78 days. The
daily rate of sickness benefit rate. The rate corresponds to the average daily wage an
insured person during the corresponding contribution period of 91 days in any two
consecutive benefit period. Extended sickness benefit is payable up to further period of
24/309 days and can be extended up to 2 years in special circumstances.

It is monthly pension to the eligible dependents of an insured person who died as a result
employment injury depends entitled to the benefits is windows, legitimated or adopted
sons or daughter until the age of 18 years.

3. DISABLEMENT BENEFIT

31
 The disable benefits shall be payable in the form of periodical payment in to an
insure person suffering from disablement as a result of employment injury sustained as an
employees under this Act .Disablement can be of two types , temporary and permanent.

Temporary disablement benefit is paid periodically in area as the evidenced of

incapacity (medical certificate) is produced. Permanent disablement benefit are paid in the
form of pension. The daily benefit rate for permanent disablement is about 70% of wage
rate. For permanent disablement the rate of benefit is proportionate on the percentage of
loss of earnings of the company. Temporary disablement benefit is paid for the life time of
the beneficially.

4. MEDICAL BENEFIT

It means medical care of insured and their families wherever covered medical
benefit. The standard medical care of consists of outdoor treatment, on patient treatment ,
all necessary drugs and dressing pathological and radiological specialists consultation and
care , emergency treatment etc.A person shall be entitle to medical benefit during any
period for which contributions are payable in respect of such disablement benefit as does
not disentitle him to medical benefit under the regulation.

NON STATUTORY WELFARE MEASURES OF CS &WM

1. EMPLOYEE WELFARE SOCIETY

For the welfare of the employees management of Canannore spinning % weaving

mill established a welfare society on 21.12 1981. All activities of the society are controlled
by the general manager. The society is a managed representation of some employee union
and management representative. All employees are the members of the society.

The objective of the society are as follows;

32
 To give financial help to the dependents or the employee who die in harness. At
present Rs.75000/-is being given to dependents.

Financial helps who retire: if the employee of the mill retires, will get a fixed sum
of money. If an employee retires before his maturity period he will get 2/3 of the
invested amount. If the employees retires on superannuation he will gets Rs.2200/-.

Financial help for existing employees: society gives Rs.2500/- for the existing
employees of the company at an interest of11%. The income of the society is from
the monthly installments of Rs.40/- contributed by the employees, Rs.2/-per
employees contributed by the management and bank interest. This amount is
invested in the bank interest from it will also be used for the above purpose.

2. SCOLARSHIP FOR CHILDREN WORKERS

Canannore spinning &weaving mill provides scholarship for the children of

workers who are studying SSLC, +2, Graduation courses. From applicants received for the
scholarship 5 children will be selected from each of the above and one each from SC/ST
the selection is on the basis of the highest marks obtained. The meritorious students will
each be given Rs.1000 as a scholarship.

3. ATTENDANCE AWARD

Those worker with 100% attendance are instituted with a cash awards of Rs.500/-.These
monitory benefit encourage the employees to come for the job and also proves advantages
to the management as it helps control absenteeism.

4. EMPLOYEES CO-OPERATIVE SOCIETY

Employees co-operative society functions mil with an elected board from employees. The
society provides provisions and other items on concessional rate and credit basis. They are
also running a savings bank account operated by the co-operative society in order to
improve the saving habits of the employee.

33
 5. KERALA ALABOUR WELFARE FUND

It has been created according to the directions of the state government. All
employees are the members of the welfare fund. According to the rule of the management
contributes Rs.8/-per head for 6 months .As per rules, education facilities and financial
assistance for those employees who are suffering from chronic ailments are being given.

6. ADVANVE PAYMENT OF SALARY DURING FESTIVAL

During festival seasons like onam , vishu ,cirstmas etcnormal monthly salary.
This amount is collected by the management from the coming month salary. Financial
assistance during the time in the form of loans etc.

7. CANTEEN

The Government is empowered to make rules fpr providing and maintain canteen
where 50 workers are employed , by occupies for the use of the workers. Canteen is being
run by management. The provisions for the canteen are supplied by the mill and the cook
are hired on contract basis meals are provided for the workers of all shifts. Meals cost Rs
1/- and the snacks & tea 0.20 only.

8. SHELTERS REST ROOMS & LUNCH ROOMS

Since there are more than 150 workers being ordinarily employed there is a provision for
shelters ,rest rooms and lunch rooms where workers took their meals. The rooms are
adequately ventilated and lighted and provisions for drinking water Is also provided.

9. FIRST AID APPLIANCES

A first aid box with the prescribed contents kept maintained by the mill.

10. FAMILY QUARTERS

In Canannore spinning &weaving mill, there are 50 family quarters which are built
for the employees. There quarters are assigned to the workers on the basis of seniority and

34
are located at a distance of 8 km from the mill. Those workers who receive this facility will
not get the amount of HRA of Rs.166/.

11. PROVISION FOR DRINKING WATER

Manufacturing companies there is provision for availability of pure and safe

drinking water. In the mill there is a provision or availability of pure and safe drinking
water.

12. WASHING ALLOWANCE

The mill provides area for having shelter, rest room and lunch room for workers. In
addition there is latrine and urinals for workers in the mill.

13. EDUCATIONAL FACILITIES

The company provides certain educational facilities for the children of its workers
like scholarship, educational loan etc. It also provides some financial help for higher
education of the children of its workers.

14. HOUSE RENT FACILITIES

The company provides certain house rent facilities its workers. In the mill quarters
facilities will provide only to the NTC staff. They dont have any house rent facilities.

15. RECREATION FACILITIES

The mill also has certain recreation club only for its workers for their mental
freshness and for their recreations.

35
CHAPTER 3

DATA ANALYSIS AND INTERPRETATION

36
 SATISFACTION ON THE BASIS OF WAGE RATE OR SALARY RATE

TABLE NO. 1

Responses of Employees No. of workers

Satisfied 12

Dissatisfied 23

Did not Respond 15

Total 50

FIGURE NO.1

25

20

15

10

0
satisfied Dissatisfied Did not Respond

INTERPRETATION

Out of 50 samples 12 employees and workers are satisfied with their salary and wage rate
whereas 23 them are not satisfied with what they receive as wages and salaries 15 of them
are did not respond to this question.

37
 ORGANIZATIONS COMMITMENT TOWARDS WELFARE OF EMPLOYEES
AND WORKERS

TABLE NO .2

Responses of Employees No. of Workers

Strongly Agree 10

Agree 25

Disagree 15

Strongly Disagree 5

Total 50

FIGURE NO.2

Employees Respondent
strongly Agree
Agree
Disagree
Strongly disagree

INTERPRETATION

10 of them strongly agreed to the point of the company adopts welfare measures for
the wellbeing of the employees and workers where as on the other hand 5 of them agree
with the statement , 15 are disagree and 5 are strongly disagree with this statement.

38
TABLE NO. 3

Whether the wage salary is adequate to the work that you do?

Responses of Employees No. of Workers

Yes 30

No 20

Total 50

Responses of Employees

Yes
No

INTERPRETATION

30 employees and workers say that salary and wages that they receive is adequate
to the work that they carried out in the organization. But whereas 20 workers say that
wages they get is not adequate.

39
 DOES THE ORGANIZATION PROVIDE EMPLOYEE BENEFIT ACCORDING
TO LAW?

TABLE NO. 4

Responses of Employees No. of Workers

Yes 50

No 0

Total 50

FIGURE NO.4

50
45
40
35
reponses of Employees
30
25
20
15
10
5
0
yes
No

INTERPRETATION

There is high positive result in the employees benefit provided by the organization
of them told that organization provides ESI , PF and other benefits according to law.

40
 LEVEL OF SATISFACTION ACCORDING TO THE EMPLOYEES BENEFIT

TABLE NO. 5

Responses of Employees No. of Workers

Highly Satisfied 10

Satisfied 25

Dissatisfied 10

Highly Dissatisfied 5

Total 50

FIGURE NO.5

Responses of Workers
25
20
15
10
5 Responses of Workers
0

INTERPRETATION

Based on the employee benefits provided by the organization 10 of them are highly
satisfied 25 of them stick on the point of satisfied whereas on the other hand 10 of them are
dissatisfied and 5 are highly dissatisfied.

41
 RECREATION AND LEISURE ALLOWED IN THE FACTORY

TABLE NO. 6

Responses of the Employees No. Of Workers

Highly Satisfied 10

Satisfied 25

Dissatisfied 10

Highly Dissatisfied 5

Total 50

FIGURE NO.6

25
20
15
10 Responses of Employees
5
0

INTERPRETATION

10 of the workers are highly satisfied with their recreation and leisure time
provided by the organization, 25 of them are satisfied and 10 of them are not satisfied with
the statement and other 5 are highly dissatisfied.

42
 MEMBERS OF INVOLVEMENT TRADE UNION

TABLE NO. 7

Responses of Workers No. of Workers

Active 32

Passive 14

No Comments 4

Total 50

FIGURE NO.7

35
30
25
20
15
10
5
0
Active
Passive
No Comments

INTERPRETATION

32 of workers are actively involvement in the trade union and 14 are passive involvement
and others are no comments.

43
 ARE YOU SATISFIED WITH GETTING BONUS?

TABLE NO. 8

Responses of Workers No. of Workers

Yes 45

No 5

Total 50

FIGURE NO.8

50

45

40

35

30

25

20

15

10

0
Yes No

INTERPRETATION

45 of them say yes in this question and other 5 says no.

44
 SATISFACTION OF EMPLOYEES IN CANTEEN MATTERS

TABLE NO .9

Responses of the Employees No. of Workers

Satisfied 50

Dissatisfied 0

No. Comments 0

Total 50

FIGURE NO.9

60

50

40

30

20

10

0
Satisfied Dissatisfied No Comments

INTERPRETATION

Almost all employees are satisfied with the canteen matters of Canannore spinning
and weaving mill.

45
 ARE YOU SATISFIED WITH THE MEDICAL BENEFIT PROVIDED BY THE
COMPANY?

TABLE NO. 10

Responses of the Employees No. of Workers

Satisfied 35

Dissatisfied 10

No Comments 5

Total 50

FIGURE NO.10

Satisfaction level of employees

Satisfied
Dissatisfied
No comments

INTERPRETATION

There are 35no. of employees who are satisfied with the medical benefit provided by the
company. 10 of them are dissatisfied and 5 are no response to this question.

46
ORGANIZATION COMMITMENT TOWARD EMPLOYEE WELFARE SOCIETY

TABLE NO 11

Responses of Employees No. of Workers

Strongly Agree 6

Agree 8

Disagree 6

Strongly Disagree 30

Total 50

FIGURENO.11

Satisfaction level of Employee Welfare Society

30
20
10
0
Strongly Agree
Agree
Disagree
Strongly Disagree

INTERPRETATION

47
Labour Welfare Society strongly agreed 6 of the employees. Most of the employees are
strongly disagreed this statement.

48
 DOES NOT COMPANY ADVANCE PAYMENT OF SALARY?

TABLE NO. 12

Response of the Employees No. of Workers

Satisfied 35

Dissatisfied 10

No. Comments 5

Total 50

FIGURE NO.12

Column2
40
35
30
25 Column2
20
15
10
5
0
Satisfied Dissatisfied No Comments

INTERPRETATION

35 no. of employees are satisfied with the advance payment of salary provided by
the Company. 10 of them are dissatisfied and 5 have no response to the question.

49
 ARE YOU SATISFIED WITH THE TRAINING PROMOTION FACILITY
PROVIDED BY THE ORGANIZATION?

TABLE NO. 13

Response of the Employees No. of Workers

Highly Satisfied 5

Satisfied 35

Dissatisfied 10

Highly Dissatisfied 5

Total 50

FIGURE NO.13

Satisfaction level of training & promotion facilities

Highly Satisfied
Satisfied
Dissatisfied
Highly Dissatisfied

INTERPRETATION

50
 There are 30 no. of employees are satisfied with the promotion and training
facilities of the organization and 5 of them are highly satisfied 10 are dissatisfied and
others are highly dissatisfied.

51
 ATISFACTION OF THE COMPANY PROVIDE SCHOLARSHIP TO
EMPLOYEES CHILDREN

TABLE NO.14

Responses of the Employees No. of Workers

Satisfied 40

Dissatisfied 10

Total 50

FIGURE NO.14

Satisfaction of the company provide scholarship to employees children

Satisfied
Dissatisfied

INTERPRETATION

Most of the employees are satisfied with the scholarship provided by the company
to their children.

52
 SATISFACTION LEVEL OF CO-OPERATIVE SOCIETY IN THE COMPANY

TABLE NO. 15

Responses of Employees No. of Workers

Satisfied 25

Dissatisfied 10

No Comments 15

Total 50

FIGURE NO.15

Satisfaction level of Co-operative society

30
25
20
15
10
5
0
Satisfied Dissatisfied No comments

INTERPRETATION

There are 25 no. of employees are satisfied with the Co-operative society. 10 of
them are dissatisfied and 15 employees are have no response to the question.

53
 CHAPTER 4

FINDINGS SUGGESTION AND CONCLUSION

54
 FINDINGS

In the study majority of the employee of Canannore spinning & weaving mill are

satisfied with the recruitment, training and promotion facility provided by the

company.

Minority of the employees of Canannore spinning &weaving mill are not having

clear idea about the piece rate system provided by the company.

Most of the employees of Canannore spinning & weaving mill are more suitable by

the time rate system in the company.

In the study majority of the employees of Canannore spinning &weaving mill are

highly satisfied with the Employees State Life Insurance (ESI) provided by the

company.

Majority of the employees of Canannore spinning &weaving mill are satisfied with

the gratuity provided by the company.

Most of the employees Canannore spinning & weaving mill are satisfied with the

bonus given by the company.

In the study majority of the employees of Canannore spinning &weaving mill have

no idea about the conveyance allowances provided by the company.

Majority of the employees of the Canannore spinning & weaving mill are strongly

disagreeing with the employees welfare society..

55
 Most of the employees Canannore spinning &weaving mill are satisfied with the

Medical benefit provided by the company.

In Canannore spinning &weaving mill most of the employees are satisfied with

sickness provided by the company.

Most of the employees the Canannore spinning &weaving mill are satisfied with

the scholarship provided to the employees children.

Most of the employees Canannore spinning &weaving mill are dissatisfied with the

attendance award provided by the company.

Most of the employees of Canannore spinning &weaving mill are not satisfied with

the Kerala Labour Welfare Fund provided by the company.

In Canannore spinning &weaving mill most of the employees are dissatisfied with

the advance payment of salary during festivals.

Most of the employees of Canannore spinning &weaving mill are not satisfied with

the welfare measures provided by the company.

In the study most of the employees of Canannore spinning & weaving mill are

female and most of them between 20-30.

56
 SUGGESTIONS

1. The Company may provide free education service to the children of the workers.

The company may also think about the education loans, scholarship etc. as new

welfare measures.

2. The company may try to make the leisure time of the workers more pleasant by

providing better recreational facilities, sports, culture programs, etc. are some of the

measures are suggested.

3. Transportation facilities are important because a long commute may go long way in

effecting the enjoyment the workers get from their work. By providing free bus

service to and from their residency may certainly help to reduce the transportation

difficulty of the workers.

4. It is suggested that the company may consider the aptitude and talents of the

workers before assigning particular work to them. Interesting work and the one

which confirm to their skill is currently a motivating factor.

57
 5. Providing better residential facilities will be helpful especially to those workers

coming from far of places; so the company quarters for its employers or arranging

rooms for cheap rents are measures in this regard.

6. It I advised have hygiene, clean, separate and well-constructed latrine and urinals is

a part of welfare facilities provided by the company.

7. Valuable suggestion from the workers should always be considered by the

management as they not only proved to improve current condition but also given

the workers a sense of belonging and recognition towards the organization.

CONCLUSION

This study mainly focused on effectiveness of welfare employed by the company

and to know how the welfare benefits the organization and employees and its workers. The
labour welfare measures employed by the company to its workers are satisfied but much
more can be achieved by providing good welfares to the employees. Providing welfare
measures that will increase not only the productivity of organization but also increase in
the morale of the employees.

58
59
BIBLIOGRAPHY

60
 Text

Published journals from Canannore spinning &weaving mill.

Ahuja k. k personal management, Kalyani publishing,Ludhiana 1986

Mmoria. C.B Industrial labour and Industrial Relation in India.

Sanjivayya D. Labour problems& Industrial Development in India.

61
APPENDIX

62
 QUESTIONNIRE
1. Name and Address of the Unit:


.
2. Name of the Industry to which the unit belongs:


3. Location of the Unit:
...
4. Year of Commencement:

5. Principal Product:

6. Secondary Product:
.
7. Form of ownership: Proprietary / Partnership / Joint Stock / any other:


8. If Proprietary, Name of the Proprietors:
..
9. If Partnership, Name of the Partners:

10.If Joint Stock Company, Public / Private:
..
11.1.11 If Joint Stock Company.
12. Name of Managing Director
13. Name of General Manager..
14.Name of the Managing Agents:
15. Welfare activities conducted by the Union

Type .0f Date Expenditure Aid Aid

Acivities of 1990-1995 1995-2000 2000 -05 by the by
Starting Manage- Others
Co-op

63
Store

Co-op
Credit
Society

Canteen

Legal
Aid

Grain
Shop

Medical
Aid

Child
Education

Adult
Education

Housing
Scheme

Vocational
& Technical
Training

Others

Social Security Benefits provided by the Union

64
Type of Date of Expenditure Aid by Aid by
Benefits starting 1990-1995 1995-2000 2000-2005

Unemployment
Relief

Sickness
Benefit

Maternity
Benefit

Accident
Relief

Old Age
Benefits

Widowhood
Benefits

Insurance Schemes

Others

65