Welfare Facilities

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INTRODUCTION

Welfare means faring or doing well. it is a comprehensive term , and refers to the

physical, mental, moral and emotional well-being of an individual. Further, the welfare is a

relative concept, relative in time and Space, it, therefore varies from time to time and from

country to country.

Employee welfare, also referred to as betterment work for employees, relates to

taking care of the well-being of workers by employers, trade unionsand government and

non government agencies. It is rather difficult to define the term employee welfare

precisely because of the relatively of the concept. Reported the Royal commission on

Employee. Employee welfare is comprehensive terms including various sources Facilities

and amenities provided to employee for their betterment. These facilities generally do not

result in monetary to the employees. Welfare facilities may be provided not only by

employees but also by the government trade unions and other agencies too.

The central government has taken special interest in employee welfare activities

after the emergence of India as a republic. The government has enacted various laws from

time to time to promote the welfare activities.

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CEMENT INDUSTRY

INTRODUCTION

Cement is a key infrastructure industry. It has been decontrolled from price and

distribution on 1st March, 1989 and deli censed on 25th July, 1991. However, the

performance of the industry and prices of cement are monitored regularly. The constraints

faced by the industry are reviewed in the Infrastructure Coordination Committee meetings

held in the Cabinet Secretariat under the Chairmanship of Secretary (Coordination). Its

performance is also reviewed by the Cabinet Committee on Infrastructure.

Capacity and Production

The cement industry comprises of 125 large cement plants with an installed capacity of

148.28 million tonnes and more than 300 mini cement plants with an estimated capacity of

11.10 million tonnes per annum. The Cement Corporation of India, which is a Central

Public Sector Undertaking, has 10 units. There are 10 large cement plants owned by

various State Governments. The total installed capacity in the country as a whole is

159.38 million tones. Actual cement production in 2002-03 was 116.35 million tones as

against a production of 106.90 million tones in 2001-02, registering a growth rate of

8.84%. Keeping in view the trend of growth of the industry in previous years, a production

target of 126 million tones has been fixed for the year 2003-04. During the period April-

June 2003, a production (provisional) was 31.30 million tones. The industry has achieved a

growth rate of 4.86 per cent during this period.

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Exports

Apart from meeting the entire domestic demand, the industry is also exporting cement and

clinker. The export of cement during 2001-02 and 2003-04 was 5.14 million tones and

6.92 million tones respectively. Export during April-May, 2003 was 1.35 million tones.

Major exporters were Gujarat Ambuja Cements Ltd. and L&T Ltd.

Recommendations on Cement Industry

For the development of the cement industry Working Group on Cement Industry

was constituted by the Planning Commission for the formulation of X Five Year Plan.

The Working Group has projected a growth rate of 10% for the cement industry during the

plan period and has projected creation of additional capacity of 40-62 million tones mainly

through expansion of existing plants. The Working Group has identified following thrust

areas for improving demand for cement;

(i) Further push to housing development programmers;

(ii) Promotion of concrete Highways and roads; and

(iii) Use of ready-mix concrete in large infrastructure projects.

Further, in order to improve global competitiveness of the Indian Cement Industry, the

Department of Industrial Policy & Promotion commissioned a study on the global

competitiveness of the Indian Industry through an organization of international repute, viz.

KPMG Consultancy Pvt. Ltd. The report submitted by the organization has made several

recommendations for making the Indian Cement Industry more competitive in the

international market. The recommendations are under consideration.

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Technological change

Cement industry has made tremendous strides in technological up gradation and

assimilation of latest technology. At present ninety three per cent of the total capacity in

the industry is based on modern and environment-friendly dry process technology and only

seven per cent of the capacity is based on old wet and semi-dry process technology. There

is tremendous scope for waste heat recovery in cement plants and thereby reduction in

emission level. One project for co-generation of power utilizing waste heat in an Indian

cement plant is being implemented with Japanese assistance under Green Aid Plan. The

induction of advanced technology has helped the industry immensely to conserve energy

and fuel and to save materials substantially. India is also producing different varieties of

cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland

Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid Hardening Portland Cement,

Sulphate Resisting Portland Cement, White Cement etc. Production of these varieties of

cement conform to the BIS Specifications. It is worth mentioning that some cement plants

have set up dedicated jetties for promoting bulk transportation and export.

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NEED FOR STUDY :

Cement industry has to play important role in the structural changes of the country.

It helps welfare activities in Vishnu cements Ltd., in order to motivating employees of the

form through the study.

Management is the art of getting the work done by the people, therefore ift is necessary to

seek the co-operation of the employee for a in order to increase the production and to

higher profits. The co-operation of employees is possible only when they are satisfied with

employees and the workers on the job.

Good welfare and welfare facilities measures enables the employees and his family

to a good welfare facilities like housing medical and children education, recreation etc.,

helps to improve the conditions of the employees. Employees welfare measures leads to

high morals and high productivity and help to raise the standards of the industry in the

county. I have selected this topic because it very challengeable topic to go through various

employees felling on depth about diffcuties of employees and various activites in the

welfare department

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THE SCOPES OF EMPLOYEE WELFARE IS :

To enrich better quality of wok life.

To improve the efficiency of work

To enhance the productivity.

To enrich industrial relation and industrial peace

To raise the physical standards of the workforce.

To enhance the purchasing and serving capacity of the employees.

To make employee work contribute systematically to the nations economy.

To reduce absenteeism.

To minimize the employee force.

Employee welfare is having a wider scope and may have indifferent countries

depending upon the socio-economic conditions, political outlook and social philosophy.

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METHODOLGY :

The relevant Data information was collected from two sources primary data and

secondary data.

Primary data was collected through questionnaire and by observations. The study is

done by conservation with various employees of various departments and specially welfare

department. Secondary data was collected through various sources such as published

annual reports, magazines and journals, records of the company.

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LIMITATIONS OF THE STUDY :

They were no significant limitations while conducting the survey but

1. Duration of the project study is very limited which is not sufficient

2. For detailed study, hence time is the limiting factor.

3. The re ports presented by the firm, which forms a basis for analysis, may be core

limitation to the study.

4. Many of the respondents were not interested to express their views.

5. Some employees had problem in under standing the questions were I have to

Explain them, which took a lot of time.

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INDUSTRY PROFILE

CEMENT INDUSTRY

Manufacturing of the cement was first started in madras in 1904. A real

beginning was, however, made in 1912-1930 when three companies were formed. By the

time the plant started, there were 21 factories with an annually capacity of 3.28 million

tones.

The government had a complete control on the production, distribution and price of

cement and this damped the growth of the cement industry. In 1997, the government

announced that 12 percent post tax returned on net worth was fairy enough and retention

prices would be fixed to ensure it.

This provided an initial momentum for investment in the industry. The real

impetus was provided when partial decontrol was announced in 1982. Under this policy,

all existing cement units were required to give up to 66.6 percent of there installed capacity

as levy at controlled price. The balance production was treated non levy cement and was

allowed to be sold in the market at the ruling prices.

An event of significant importance from the long term point of view has been the

process of consolidation and measures and acquisitions witnessed in the cement industry

during recent period. The leaders are now finding economical to accrue an existing under

ill-managed company rather than to float a new company.

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The demand for cement is expected to reach 109 million tones during the terminal year of

the ninth plan based on 8.5 percent annual average growth rate. The capacity and

production targets for the year 2005-06 are placed at 135 million tones and 113 million

tones respectively.

CEMENT INDUSTRY IN INDIA

India cement industry the fourth largest in the world, with a turnover of Rs.18,000

crores comprising 59 companies with 117large companies and above 311 mini companies.

Enjoying the status of being the first industry to be liberalized 16 years ago. The cement

industry was one of the few industries liberalized in 1980s. The generated tremendous

interests and within a decade nearly forty million tones capacity was added. This

improved the availability of the cement, which checked price raise. Also in the

competition among the players improved the quality of cement.

After observing the healthy development occurred because of the partial decontrol,

the government of India announced total decontrol of cement companies were free to sell

there production at what ever the price the market would bear July 1991, the government

of India announced delicensing of cement industry its impact can be seen from rapid

changes in cement industry. Strain of getting cement permit had disappeared. Before

1982, when construction was planned the consumer had to prepare to get cement, even 6

to 8 months in advance and therefore he had to apply and wait for the permit. But now, the

situation has tremendously changed, cement is available at the country. In short, consumer

today do not have to run, from pillar to post to get cement.

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CEMENT INDUSTRY IN ANDHRA PRADESH

Cement industry is the most important and the largest expending industry in

Andhra Pradesh. It plays a vital role in development of state. Andhra Pradesh is having all

the necessary natural resources required to produce cement in large quantities. The state

stands first in the country so far as limestone deposits are concerned. Out of approximate

90000 about 30000 million tones are available in Andhra Pradesh which account for 34

percent in the total limestone deposits.

Andhra Pradesh cement industry started in 1939. There were two cement plants

opened, one was at Vijayawada and the another was associated cement companys plant in

Tadepally, Guntur district in 1939. As on 31st march 1998, there are 8 large scale cement

units with an installed capacity of 16 million tones and 24 mini cement ad grinding units

with an installed capacity of three million tones producing various types of cement in

Andhra Pradesh. In these 18 large cement plants, only two cement units under public

sector corporation i.e., cement corporation of India plants situated in Adilabad and Tandur

in Ranga reddy districts.

The entire Andhra Pradesh cement industry concentrated in the districts of

Adilabad, Nalgonda, Cuddappah which are having total lime stone reserves. Andhra

Pradesh is having two lime stone deposits clusters viz., yerraguntala and Nalgonda. There

are major and 11 mini cement plants situated in Nalgonda districts. As on 31st March,

1998, the Andhra Pradesh total major cement units installed capacity was only 12.60

million tones and this figure increased to 16 million tones at the end of this year because

two major units Larsen and Turbo, Visakha cement plants started there operations with

installed capacities of 2 and 1 million tones and the existent market leader Raasi cements

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limited. Expanding there capacity with another 20 million tones. The mini cement plants

sector also having an installed capacity of 2.5 million tones. By the end of this year the

total Andhra Pradesh cement industries installed capacity has reached to 18.5 million

tones.

The total production of entire Andhra Pradesh cement industry is approximate 12

million tones. In this the major cement plants contribution was 10.5 million tones where as

the mini cement plants only producing the approximate 1.58 million tones. The cement

consumption of Andhra Pradesh is only 6 million tones. In 1997-98 and this figure has

increased to 7 million tones by the end of 1998 because of the various developmental

program taken up by the state government and the industrys dynamicpromotional

activities. The cement configuration in the state has been observing steady growth.

In 1996-97 the cement consumption was only 4.87 million tones and further the

consumption increased to 5.87 million tones. As far as production and consumption is

concurrent, Andhra Pradesh cement industrys performance increase its 5.29% and 8%

respectively in the year 1996-97. This percentage increase is very low when compared to

the national average i.e., 8.5% because in this period there is no production activity from

the newly erected plants as well as the existing plants which are increased there installed

capacity. One more reason for this type of low growth rate was number of new plants and

the existing plants, which were increasing their capacities started there production in

various parts of the country the cement exports from Andhra Pradesh observing on

extraordinary fluctuations. After staring the exports in the year 1992-93, the first two

years observed some significant growth, after that a steady decreasing situation observed in

the exports. In 1992-93, 36,200 tones exported to the Bangladesh and some other

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countries and this exports figure increased to 1,35000 tones in 1993-94. In 1997-98, there

is only 10,000 tones of cement exported to Burma from Visakhapatnam.

PROBLEMS OF CEMENT INDUSTRY

The above brief discussion shows that the cement scenario has undergone a sea

change- from that of shortages and premiums just few years ago to that of surplus

production now. However this surplus production has brought in its wake new problems

like cut throat competition, unremunarative prices and deepening financial crisis. The

main problems of the cement industry are outlined below.

1. BURDEN OF HIGH TARIFFS

The cement industry is facing high tariffs, high excise duty, sales tax, royalty lime

stone and coal etc the excise duty on cement has been steadily rising. In 1995 - 1996 the

excise collection from the cement industry amounted to Rs. 2,242 core which was 5.5% of

the total excise in that year according to the development council to the cement industry,

the total levies on cement per tone amount to as much as 66.8 per tones. The effective

burden on cement amounts to as much as Rs. 35% of the retail price of cement and 47% of

the ex. Factory price excluding excise sales tax and freight. This is much higher as

compared to the burden in the other countries making the Indian cement industry

internationally uncompetitive.

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2. POOR QUALITY OF COAL

Coal is an important input in the cement industry and accounts for 15 20 % of

cash expenses in the manufacture of cement. On an average 250kg of coal is required to

produce 1 tone of cement. Coal in India has to be moved over long distances of 1000 to

12000 km to some plants in north, south and west India. There is a severe shortage of coal

in the cement industry. The quality of coal supplied to cement units is also highly

unsatisfactory as only D , E & F grades of coal are supplied to these units. The ash cement

in Indian coal is very high and this restricts production. To meet the twin problems of

shortage of coal and poor quality of coal (due to high ash contents), the emphasis on

imports of coal is now increasing. However this option in addition to involving

expenditure of foreign exchange resources, also places those cement plants disadvantage

which are located far from ports as they have to incur extra costs for doubling handling and

freight.

3. THE POWER SHORTAGE

Power is another important requirement and along with coal forms 40 percent of

the total cost. Power cuts, unsteady and inadequate power supply from state electricity

boards have created serious problems for cement units. This is all the more so as the

production of cement is a continues process requiring uninterrupted power supply to

operate efficiently. To cope with the problem of power shortage, cement companies have

been obliged is to make heavy investments in captive power generation and also auxiliary

generation in wind forms, particularly in plants located in coastal areas.

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4. TRANSPORTATION PROBLEMS

Transportation costs make up around 20 percent of the total cement price. The

industry predominately depends on railways, but due to shortage of wagons, cement

dispatches by railway declined over the years. The Indian railway has introduced Own

your wagon scheme where in cement companies have been allowed to purchase wagons.

This has lead to some marginal improvement and has enabled the cement companies to

tide over distribution bottlenecks. However the increase distribution cost is forcing

companies to pass costs to the customers.

5. DEMAND CONSTRAINTS

Till the year 1990-91, the demand for cement was mainly dependent on

government spending as the government with a 40 percent off take was the single largest

consumer of cement. However, due to financial constraints, the government was forced to

cut down on a wide range of developmental activities. This resulted in a demand

constraint. In recent years the quality of liberalization and the opening up of the

infrastructure sector to the private sector and the foreign sector, have given new hopes of

substantial expansion in demand of cement.

UNDER UTILIZATION OF CAPACITY

Under utilization of capacity is a recurrent future of cement industry. A study

conducted by economic times bureau on capacity utilization of cement plants in the

northern region was 72.9 percent, in the eastern region 64.8 percent, in western region 91.2

percent and in the southern region 80.3 percent. This shows that under utilization of

capacity is particularly marked in the cement plants located in the eastern region. One of

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the main factors according for low capacity utilization in this region has been the demand

constraint.

CEMENT TECHNOLOGY

In 1986, 56 percent of the cement plants were employing the uneconomical wet

processing. Due to the high labor and maintenance costs and smaller size, these plants had

a high cost of production not only this? On the basis of the cement production of 33

million tones achieved in 1985-86, there obsolete technology resulted in wastage of over

2.5 million tones of coal, and 800 million tones of electricity every year. In recent year

there has been a gradual shift from wet to modern, fuel efficient dry process plants.

CEMENT MANUFACTURING ASSOCIATION (C.M.A):

Cement Manufacturing Association is the apex body of Cement manufactures in

India, established in 1961 with 17 member companies, now it has 57 cement companies as

members having 115 cement plants. Both the Private and Public Sector cement units its

members. It is registered under the Societies Registration Act with its registered office in

New Delhi and branch office Mumbai. The following are the main objectives and Services

of the CMA.

Main Objectives of CMA:

To promote the growth of the Cement Industry.

To protect the Consumer interest

To identify newer applications of cement usage.

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To establish contacts with similar bodies abroad for exchange of information, data

and publications.

SERVICES:

1. Government

2. Industry

3. Exports

4. Seminars / Workshops

5. Publications

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CEMENT INDUSTRY AN INTRODUCTION

The objective to establishment a company provides so many benefits. It provides

benefit not only to the owner of the company but also society and nation. Besides, the main

objective of earning profits, it creators employment to the unemployed, become a source

on Income to the Government which in turn be utilized for the benefit of the nation and

provides Suppliers and service to the consumers.

The basic raw material for the manufacture of cement is limestone. Besides

limestone, laterlite, iron ore, gypsum are used as additives. Power, coal forms major

portion in the total cost of the production. It pay taxes ti the government in the form of

Royalty, Cess of limestone, Central Excise duty, Sales tax, Cess on cement dispatches,

making fee and railway freight. The cement industry in India witnessed a growth of 5.5%

during 2003-2004 against 8.7% during 2002-2003.

INTERNATIONAL LEADING CEMENT PRODUCERS

LAFARGE

HOLCIM

CEMEX

HEIDEL BERG

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COUNTRY WISE ITAL CEMENTI PLANTS

INDIA: STATE WISE CEMENT PLANTS & CAPACITY.

S.NO State No. of plants Capacity(mn.t)1 Andhra Pradesh 21 21.83

2 Rajasthan 14 18.52

3 Madhya Pradesh 10 17.69

4 Gujarat 11 17.58

5 Tamil Nadu 13 14.56

6 Maharastra 8 11.8

7 Chatisgarh 9 10.82

8 Karnataka 8 10.09

9 Uttar Pradesh 8 7.31

10 Jharkhand 5 4.57

11 Punjab 3 4.25

12 Himachal Pradesh 3 4.09

13 West Bengal 4 3.13

14 Orissa 3 3.04

15 Bihar 1 1

16 Kerala 2 0.62

17 Delhi 1 0.518 Jammu & Kashmir 1 0.2

19 Assam 1 0.2

20 Meghalaya 1 0.2

21 Hariyana 1 0.12

TOTAL 128 152.12

LEADING CEMENT PRODUCING GROUPS IN INDIA

ACC & GUJARAT AMBUJA GROUP

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GRASIM & ULTRA TECH GROUP

INDIA CEMENT GROUP (ICL) D

REGION WISE CEMENT PRODUCTION

Region Mn.t / Anm

Northern 27.65

Eastern 22.96

Southern 47.10 (Ultratech, Pipavan, Gujarat 5.3)

( Ultratech, Chandrapur, Maha 3.3)

Western 29.38

Central 25.00

Southern Region:

Andhra Pradesh 21.83

Tamil Nadu 14.56

Karnataka 10.09

Kerala 00.62

Andhra Pradesh

Plant Location Capacity

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ULTRATECH Tadipatri 2.3 Min.T

RAASI Wadapalli 2.3 Min.T

ZUARI Yerraguntala 2.2 Min.T

VARIETY WISE, CEMENT PRODUCTION

OPC - 43%

PPC - 48%

SLAG - 8 %

OTHER - 1%

PLANT CAPACITY UTILIZATION

SLAG - 8%

OTHER - 1%

INFRASTRUCTURE;

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Cement industry depends heavily on coal, power and railways for its smooth and

efficient operation. In fact its productivity, efficiency and out put depend mainly on the

proper and adequate support from all these sectors. In this light, cement Manufactures

Association maintained close interaction with all the three government organization to

secure their support and cooperation.

POWER:

Production of cement is a continuous process and therefore needs interrupted power

supply. A majority of cement production operations depend exclusively on power. During

the year under review, cement units did not face much power problems. Most of the

cement units have installed captive power plants to get uninterrupted and quality power.

As on 31st march 2004, the total captive power generating capacity installed in cement

industry was1748.63 MW. Of this 65% is based on diesel and 35% on thermal. In addition,

wind forms of capacity around 78 MW have been installed. During the year 2003-04,

45.04 million tones (38.33% of total production in India) of cement was manufactured

using captive power as against 44.33 Million tones (39.81 of the total production) in 2002-

03.

TRANSPORTATION:

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It was very critical for certain cement plants owing to acute shortages of wagons

for movement not only of cement and clinker but also coal and gypsum. This problem was

mainly due to railways giving topmost priority for coal movement to al the thermal power

stations in the country and PDS movement. The transportation problems of these cements

plants were compounded in the wake of the sudden restrictions imposed by various State

Governments on the carrying of capacity of trucks. The availability of wagons to cement

plants in other parts of the country was more or less satisfactory. For resolving the wagon

shortage problem, which could affect supply of cement to important ongoing construction

projects and they causes series repercussions in the overall economy, cement

manufacturers Association, as well as the affected individual cements plants, made various

representations and also met the Chairman, member (Traffic), additional member (Traffic),

executive Directors and other senior officials of the railway board and Zonal Railway.

PROFILE OF THE ORGANIZATION:

The project appraisal was completed in April 1984 at an estimated cost of Rs.

65.00 cores. The letter of indent for manufacture of one million come Portland cement per

annum was transferred in the name of the company are converted into industrial license

vide industrial license No.469(84) dated 31.12.1984 by the government of India, ministry

of industries. Although the license was for the one million tones capacity, considering the

high capital cost, the company was installed at 6 lakh tones capacity per annum.

Size of cement plant, it take about six months to stabilize the main plant namely

Rotary Kiln was lighted up on 31st October 1986. the central production was commenced

and entered in the market from 14 th January 1987.normally for this the operations and to

solve all the initial teething troubles unfortunately when the plant was in the process of

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stabilization, there had been frequent moves, interruptions, tripping and stoppages and

finally A.P State Electricity Board imposed 60% power-cut and gradually increased up to

90%. As a result stabilization of the plant operations had taken an abnormal period and

finally the management of the company decided to install four numbers of diesel

generating sets of 2,270 KVA capacities each. Therefore, the final project cost had been

increased to Rs. 75.20 cores. Finally, the project had been completed by 31 st august 1987.

The plant was established with a consistent production 24000 M.T.s per day during 1990

of Rs. 250.38 lakhs from 2600M>T>s per day by

Increasing pre-calciner height from 5.15 meters to 6.17 meters.,

modification in R.S.P. fan impeller diameter

The production was enhanced from 2850M.T.s per day.

UPGRADATIONS:

I) various modifications taken place during the period 1990 to 1993 to enhance

the production capacity of the plant with accost of Rs. 101.56 lakhs and as a result the

production was increased from 2400 M.T.s per day to 2600 M.T.s per day

Retrofitting of cooler ID fan impeller diameter

Reduction of cooler ID fan impeller diameter

Installation of desecration system for kiln feed V.P pump

Reduction of cooler I.D. fan impeller

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II) In order to meet the power requirements and avoid power restrictions from

A.P.S.E.B., two numbers of Wartsilla power generators sets of 4MW capacity have been

installed at a cost of Rs. 1331.00 lakh during 1996-97.

III) The production capacity of the plants was further upgraded during 1997-1998

with and 2,000,000 cumulative convertible preference shares of Rs.100/- each.

The issued, subscribed and called up capital of the company investamentary to 3400

M.T.s per day due to 48

Installation of low pressure twin cyclones

Installation of high efficiency R.S.P fan

Retrofitting of cooler and kiln E.S.P

CAPITAL STRUCTURE:

The Authorized capital of the company is Rs. 2800.00 lakh in the form of 2,6,00,000

equity shares of Rs.10/- each any is Rs.2485.49 lakh . the paid up capital of the company is

Rs.2485.42 lakhs.

The company is having the reserves & Surplus in the capital structure by Rs.1573.22

lakhs. Besides the share holding and reserves & Surplus, the company is having the loans

as.

Secured Loans:

1) Cash credit including demand loans from banks by Rs.1392.67 lakhs

2) Term loans from banks by Rs.3150.00 lakhs.

Unsecured Loans:

1) Trade deposits from dealers/ stockiest by Rs.503.01 lakhs.

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OPERATIONS OF THE COMPANY:

The company operations viz., production, sales and profit are tabulated below:

Year

Cement Production Cement Sales Profit/Loss

(in M.T.S.) (in M.T.S.) (Rs.in lakhs)

2000-2001 7,74,822 7,56,681 -723.01

2001-2002 6,23,198 6,30,549 719.36

2002-2003 5,95,535 6,03,198 34.65

2003-2004 6,84,408 6,87,015 -1,292.15

2004-2005 7,16,556 7,04,291 -795.69

2005-2006 8,31,200 8,42,149 -449.93

2006-2007 10,68,212 10,66,747

AWARDS:

In recognition to the high standards of quality maintained for the cement

manufactured by the company, if won the Arch of Europe 1987 Gpd; ward, awarded by

M/s. J ban, Madrid, Spain and also it won the award industrial promotion selection

Award, 1988 from the council for industrial & trade Development, [resented by her

excellence Smt. Kumudhen Joshi, then the Governor of Andhra Pradesh on 9 th February,

1989.

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QUALITY POLICY we are committed to supply of cement of consistent quality for

enhancement of customers satisfaction and for continual improvement of the quality

management system

CHANGE IN THE MANAGEMENT:

The India cement limited and its subsidiary namely ICL Securities Limited have

acquired over 94% of the share capital of the company from the old management and also

by way of open offers made to the share holders of the company, it acquires a the share

holding control with effect from 27.12.1999.

Zuari Cement Limited entered into a share Purchase Agreement on 10 th January,

2002 with The India Cements Limited and ICL securities Limited to acquire approximately

94.70% of the paid up equity share capital and also made on open offer to acquire

remaining approximately 5.30% of the paid share capital. As a result, the new management

has taken over the share holding control with from 18th, may 2002.

THE MANAGAMENT OF THE ORGANIZATION:

The board of directors under the leadership of the chairman is managing the

company. The directors and seniors executives are highly experienced and selected from

various fields of specialization and are highly experienced.

The board enjoys a maximum possible operational autonomy consistent with

the overall corporate objectives, polices, goals and strategies. The executives of the

company discharge their duties with a team spirit on delegation of authority and individual

accountability basis to achieve and targets as specified. As such, it is obvious that the

responsibility and authority to take decisions on the organization structure of the company

below:

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Management staff

70

Staff & workmen

167

Casual labor 460

The company maintains almost industrial peace and gives duties importance to the

employees emoluments. To keep the same to continue, the company had entered into wage

revision agreement with the Union of staff & workers during January 2004 for a period of

three and half years and registered the same with the labor commissioner.

In order to make the management staff to be more competitive and to update their

skills, the company had introduced a self-appraisal form. This form is become a powerful

tool and being used in decision making of giving promotions and increments.

SUGGESTIONS SCHEME:

In order to bring out the skill of the individual employees, the company had

introduced a suggestion scheme and implementing continuously. The salient features of

this scheme are furnished below.

Any employee can give a suggestion, in writing and should drop it in the

suggestion box meant for this purpose.

A team of professionals examinees the feasibility for implementing the suggestion

gives fed back to the employees concerned.

The selected suggestion will be implemented.

The selected suggestions will be award.

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The employee, who suggested selected the suggestion will made the coordinator to

implement the same.

The photograph of the employee of the selected suggestion will be exhibited at the

public place within the plant premises.

SAFETY:

. The company is dedicated for the safety of the employees. As apart of this, the

company provides safety tools viz., Helmets, Shoes, Nose filters, Safety belts to the

employees. It made all the employees to observe safety pledge, every day, before

commencement of the working hours. It takes utmost care for the safety day on 4 th march

and mines safety meek every year. It also observes World environmental day on 5th juke

and productivity day on 12th February, every year.

THE GROUPS SAFETY POLICY

Constant attention to the idea of safety, both of the environment and of health in

the work place has always characterized out group. This has become even more strategic in

the current phase of international development.

In the unmediated future particularly, the efforts of all those who work within the

group must be aimed at creating around themselves and others the appropriate conditions

of operative security.

To support this common aim, I consider it important to formalize the safety policy

guidelines that must direct our work.

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This can be summarized as follows:

1) Italcement group undertakes to make the Safety Policy an integral part of our

general company policy.

2) The safety policy will be considered on an equal basis with productivity, efficiency,

quality improvement, environment issues and other policies developed the Group.

3) The safety policy will be put into operation at each of the groups workplace, and

will accompanied by the appropriate auditing, in order to eliminate dangerous behavior

thats the cause of most industrial accidents.

4) Italcementi group firmly believes that all accidents can be prevented. And

undertakes to apply the best safety standards in each workplace, and above all, to train

people at every level and to ensure that they are competent to assume the responsibility

given, and that their training is suitable.

5) All italcementi Group employees are responsible for applying the safety policy and

must work in a safe manner, so as not to have or cause accident.

6) The final goal of the safety policy is to arrive at ZERO ACCIDENT in the

workplace. with the conviction that people are the key element regarding individual safety,

all employees, at whatever hierarchical, are requested to conduct themselves in such a way

to avoid causing any accidents whatsoever both of themselves and to their colleagues.

7) Italcementi Group undertakes to provide its employees and the appropriate public

bodies with the information regarding the results obtain from applying this policy.

8) The Italcementi Groups policy shall be continually updated.

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In order to implement these guidelines in a practical, concrete and fast way, the

project Zero Accident has launched. Expect a lively participation and collaboration from

everyone, in order to re-affirm the values of industrial ethics we must all constantly keep in

mind.

S Is a key element of the Italcementi Group corporate policy

A Is an important as productivity, efficiency, quality & environment

F must be applied everywhere and constantly monitored

E Is training an informing personnel at every level prevent accidents.

T Is the responsibility of every one for themselves and for others.

Y Is an mission and need possible through every bodies contribution to the Zero

Accidents project. Is a policy that will continuously evolve.

TAKE CARE THINK SAFE

EVERY DAY CLEAN

PLEDGE

QUALITY POLICY

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TRAINING TO THE EMPLOYEES:

The company is providing the training to employees in different areas of

operations on continuous basis both by in house and by external sources. Some examples

of the training are mentioned below.

Utilization of alternate fuels including pet coke in cement industry.

Labor laws and recent changes in the application of the contract labor.

Awareness on VAT

Effective utilization of petroleum conservation.

ECO Fighting

First Aid

Effective Communication

Cost Control measures

Enquiring multi-skills

Initive attitude

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EMPLOYEE WELFARE:

The company is striving to employee welfare and it provides the following to its

employees.

Two pairs of uniform, one pair of safety shoes and PPE are provoding to all the

employees.

Dinner for the employees with their facilites and a cultural programme on every

31st December.

Dinner for the employees with their families and a cultural programme on every 1 st

January.

Celebrates independence day and republic day.

Provides family planning camp within the plant premises, every year.

Provided AIDS awareness classes to the employees by the District Medical &

Health Department.

Provided the Art of Living classes to the employees within the plant premises.

Provided the SSY classes to the employees within the plant premises

. All the statutory obligations of the employees like P.F., L.I.C.etc. within the

work schedule.

Provides different loans to the employees to meet their financial requirments.

The company maintained temples of Sri Venkateswara Swami, Anjaneya Swami

and Vinayak Temples located at Towmship.

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THESE LAWS ARE:

The factories Act 1948: the mines Act 1952: the plantation employee Act 1951: the

central employees (regulation & abolition) Act 1970: these Act provides for facilities such

as canteen crches shelters rest rooms , lunch rooms , washing facilities etc.

They also regulate the age of employment, hours of work and more provisions for the

appointment of employees welfare officers sickness, Maternity and medical benefits are

provided under the employee state Insurance Act 1948 and also the government has

chalked out comprehensive Programmers for housing facilities, social security schemes

provident funds and such other facilities & seize able has been allotted in each five years

for employee welfare activities.

ACCORDING TO THE FACTORIES ACT 1948:

The welfare facilities provided under this act are as follows:

1. Adequately suitable and clean washing facilities separately for male and

female workers.

2. Facilities for storing and drying clothes.

3. Setting facilities for occasional rest for workers who are obliged to work in

a standing position.

4. First aid boxes one for every 150 workers and ambulance facilities if there

are more than 500 workers.

5. Canteens if more than 250 workers are employees.

6. Shelters rest rooms and lunch rooms if there are more than 150 workers.

7. Creche if more than 30 women are employees.

8. Welfare officer wherever more than 500 workers are employees.

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The oxford dictionary refers employee welfare as efforts to man life worth

living for women. The committee on employee welfare (1969) has defined employee

welfare as such services facilities and amenities as adequate canteen rest recreation

facilities and sanitary and medical facilities arrangements for travel to and from work for

the accommodation of workers employed at a distance from there homes and such other

services amenities and facilities including social security measures as contribute to

improve the conditions under which workers are employee.

According to the employee investigation committee (1946) employee welfare

means anything done for intellectual, physical more and economic betterment of the

workers, whether by employee by government or by otheragencies over and above what is

laid down by low or normally expected on the part of its contracted benefit for which

workers may have bargaining

MERTIS AND DEMERITS OF WELFARE MEASURES:

Employee welfare is justified for several reasons. It is desirable to recollect the

services of a typical worker in this context. His/Her employee helps dig and haul coal from

the depths of the earth to fetch and refine oil , to build dams and reservoirs, to lay pipes,

canals, railway lines and roads. His/Her employee creates and transmits power, and

through various phases of manufacturing, patterns raw material into finished products of

necessity as well as luxury.

Welfare may help minimize social evils, such as alcoholism, gambling,

prostitution, drug addiction and the like. A worker is likely to fall a victim to any of these

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if he /she is dissatisfied or frustrated. Welfare facilities tend to make the worker happy,

cheerful and confident looking.

WELFARE FACILITIES CAN BE CLASSIFIED AS:

(1) Intra Mural Activities (2) Extra Mural Activities

1. INTRA MURAL ACTIVITIES :

Intra Mural Activities consists of facilities provided within the factory or

establishment they include medical facilities, compensation for accidents

provision for creches & canteens, supply of drinking water, washing and bathing facilities

provision of safety measures, activities relating to improvement conditions of employment,

free or subsidies food and their interest.

2. EXTRA MURAL ACTIVITIES:

Extra Mural activities covers the services and facilities provided outside the factory

or establishment these consists of housing accommodations , indoor and outdoor ,

recreation of facilities amusement and sports, educational facilities for actual and

childrens Thus employee welfare is a comprehensive terms including various services,

facilities and amenities providing to employees for the betterment. Various benefits

provided by an organization may be classified under two groups, employee welfare and

social security

EMPLOYEE WELFARE:

Committee on employee welfare (1969) has defined employees welfare as such

facilities as adequate canteen, rest and recreational facilities, sanitary and medical facilities

arrangement for travel to and from work and for the accommodation of workers employed

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at a distance from their homes and such other services amenities and facilities including

social security measures as contribute to improve the conditions which workers are

employed.

SOCIAL SERCUITY:

Social security is essential related to the high ideals of human dignity and social

justice. According to ILO social security is the protection which society for its members

through a series of public measures against the economic and distress otherwise would be

caused by the stoppage or substantial reduction of earnings resulting from , sickness

maternity , employment injury, unemployment, invalidity , old age and health.

IN INDIA MAJOR BENEFITS ARE AS FOLLOWS:

PAYMENT FOR TIME NOT WORKED:

There are provisions for payments to employee not worked these include the

payments for the days:

1. Weekly off-day

2. Gazette holiday: 14 days at present which include Independence day, Republic Day,

and various festivals like Diwali, Dassara, Christmas day, etc.

3. Personnel leave, casual leave, sick leave, privilege leave and maternity leave personnel

leave may vary from organazatio9n to organization.

WELFARE AND RECREATION FACILITIES:

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Welfare and recreation benefits include : Canteen, consumer Societies, Credit

societies, housing, legal aid ,employee counseling, welfare organization, holiday homes,

educational facilities, transport, parties and picnics and miscellaneous.

CANTEENS :

Perhaps no employee benefits have received as much attention in recent years as

that of canteens. Some organization have statutory obligation to provide such facilities as

section 46 of the factories act, 1948 imposes statutory obligation to employees to provide

canteens in factories employing more than 250 workers other have provided such facilities

voluntarily food stuffs are supplied at subsidized prices in these canteens. Some

companies provides lunchrooms, when canteen facilities are not available.

CONSUMER SOCIETIES :

Most of the large organizations located far from towns and which provide housing

facilities near the organization set-up the consumers stores in the employees colonies and

supply all the necessary goods at far priceless.

CREDIT SOCIETIES :

The objective of setting of these societies is to encourage thrift and provide loan

facilities at reasonable terms and conditions, primarily to employees, some organization

encourage employee to form cooperative credit societies with a view of fostering self help

rather than depending upon money lenders, whereas someorganizations provide loans to

employees directly.

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HOUSING :

Of all the requirements of the workers decent and cheap housing accommodation is

of great significance. The problem of housing is one of the

main causes for fatigue and worry among employees and this comes in the way of

discharging their duties effectively, most of the organizations are located very far from

towns where housing facilities are not available. Hence most of the organizations built

quarters nearer to factory and provided cheap and decent housing facilities to their

employees, while a few organization provide or arrange for housing loans to employees

and encourage them to construct houses.

LEGAL AID ;

Organization also provide assistance or aid regarding legal matters to

employees as and when necessary through company lawyers or other lawyers.

EMPLOYEE COUNSELING :

Organization also provide counseling services to the employee regarding their

personal problems through professional counselors. Employee counseling reduces

absenteeism, turnover, tardiness, etc

WELFARE ORGANIZATIONS AND WELFARE OFFICERS :

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Some large organization set up welfare organization with a view to provide all types

of welfare facilities at one centre and appointed welfare officer to provide welfare benefits

continuously and effectively to all employee fairly.

HOLIDAY HOMES :

As measures of staff welfare and in pursuance of governments policy, a few large

organizations established holiday homes at a number of hill stations, health resorts and

other centre with a low charge of accommodation , so as to encourage employees use this

facility for rest and recuperation in pleasant environment

EDUCATIONAL FACILIOTIES :

Organization provide educational facilities include reimbursement of fees, setting up

of colleges, hostels, providing-in-aid to the other schools where a considerable number of

students are from the children of employees. Further the organization provides reading

rooms and libraries for the benefit of employees.

TRANSPORTATION :

Companies provide conveyance facilities to their employees from the place of their

residence to the place of work as most of the industries are located outside town and all

employees may not get quarter facility.

PARTIES AND PICNICS :

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Companies provide these facilities with a view to including a sense of association,

belongingness, openness, and freedom among employee. These activities help employees

to understand other better.

MISCELLANEOUS :

Organization provide other benefits like organizing games, sports with awards,

setting up of clubs, community service activities, Christmas gifts, Deewali and Pongal

gifts, LTC and awards, Productivity award etc.

FRINGE BENEFITS :

Beside base compensation and incentives employees are provided various types of

benefits and services by the organization, these benefits and services are not linked to

employee productivity buy are provided to different classes of employees either as a matter

of statutory requirement or on voluntary basis or a combination of both such benefits are

called by various names such as fringe benefits, employee welfare, sub wages, social

security, etc. International employee organization has defined fringe benefits as follows,

Wages are often supplemented by special cash benefits, by the provision of medical and

other services or expenditure on the goods services, in addition workers commonly receive

such benefits as holiday with of low cost meals, low rent housing, etc. such addition to the

wages proper are referred to as fringe benefits.

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Fringe benefits include payment for non working times, profit and bonus, legally

sanctioned payments on social security schemes workmens compensation welfare and

contribution made by the employee under such voluntary schemes as care for the post

retirement, medical, educational, cultural, and recreational needs workmen the tern also

includes the monetary equivalent of free lighting, water, fuel etc, which are provided for

workers and subsidized housing and related services.

THE FEATURES OF FRINGE BENEFITS ARE :

1) Fringe benefits are provided to the employees in addition to their wages

/salary and other performance related incentives. These may be provided either required

statutory or on voluntary basis.

2) These benefits are given to the employees irrespective of the ir work

efficiency however, differences in benefits may exist on the basis of classes of

employees.

3) Fringe benefits are provided to all the employees irrespective of the work

efficiency however; differences in benefit s may exist on the basis of classes of employees.

4) Benefits that have relation to employment or wages are not regarded as

fringe benefits even though they may constitute a significant part of the workers, total

income. This is fairly obvious in the case of public parks, sanitation services and fire

protection.

5) The expenses of benefits incurred on fringe benefits and other services

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are charged as workmen and staff welfare expenses or employees

benefits expenses on incentives are charges under wages and salaries

TYPES OF BENEFITS:

There may be numerous types of benefits which may be provided to employees, and

there may be different ways in which theses can be classified, one may in terms of

statutory and voluntary benefits. Statutory benefits are mandatory and are provided under

various acts such as paid holiday and leave insurance, pension, gratuity, retrenchment

Compensation etc. All the organization covered by different act has to make the provision

for these. Voluntary benefits are determined by7 he individual organization on their own.

Such benefits may include transportation facilities, educational facilities, subsidized, etc.

U.S chamber of commerce has categorized various benefits into five groups.

1) Legally required payments, old age pension, survivor benefits, disability,

pension, health insurance, and unemployment insurance. Separation pay and the

payments made under the workmans compensation.

2) Pension, group insurance and welfare payments.

3) Paid rest periods, waste up time, lunch periods.

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4) Payments for time not worked, vacations and holidays.

5) Christmas bonus.

RETIREMENT BENEFITS:

PROVIDED FUND SCHEME:

Under the provision of employees P.F. and miscellaneous provision

act 1952, the employer has to contribute 8.33 percent of wages/salaries of employees every

month the employees make equal contribution through they are permitted to contribute

more if they so desire . the basis Objectives of provident fund is schemes to make

payments of total accumulated amount standing in the account of an employee when he

retires though in certain circumstances, part of the money can be withdrawn earlier.

PENSION SCHEME:

A pension represents the payments of fixed amount to a retired employee or

surviving dependents every month provided the employee has fulfilled certain specific

conditions of employment. One of the conditions is the minimum number foyers of

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services which an employee should put to become eligible for pension, sometimes pension

is provided in line of the employers contribution to provident fund.

GRATUITY:

The payment of gratuity is regulated by the payment of gratuity act 2972, under this

act is payable to all employees after the termination of their

services by way of their retirement or resignation provided they have completed five years

of continuous services, the gratuity is payable at the 15 days wages/salaries for each year

completed services subject to a maximum of Rs.3.5 lacs

COMPENSATION BENEFITS:

Compensation benefits are payable under two conditions, under compensation act

the compensation act 1923, and under contractual obligations, under the act the

compensation is payable in the case of injuries. Fatal or otherwise, to workers during

course of his job performance, the compensation is payable according to nature of the

injuries, under contractual obligation an employer i9s liable to pay equivalent to three

months wage/salaries or any other sum specified under the terms of employment.

INSURANCE BENEFITS:

Insurance benefits are payable to employee covered under, employees state

insurance Act 1948, the employee covered under this act have to continue to the scheme

and the employees have also to contribute, various types of benefits that are available in

this act are medical, sickness, maternity, disablement, dependents and funnel benefits,

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besides many organization offer benefits for life insurance either on individual or group

basis.

In the past the industrialist and the manager believed that there only job towards

their employees was to pay them satisfactory wages. In course of time it has change s.

psychological researchers convinced them that the workers required security more

important, than wages i.e. human treatment which is very essential to seek the co-operation

between employees and employer. For this it is essential for the management to create an

atmosphere in which the employees work effectively and efficiently by creating better

condition of work place, suitable temperature , adequate lighting and pleasant atmosphere,

such welfare facilities benefits not only the workers but also the management in the form

of greater productivity efficiency Management should realize that these welfare facilities

pay a good dividend in the long run for this they have to contribute in a large degree

towards the health and efficiency of the workers and towards a high morale.

The present study is a carried in ZAURI CEMNTS LTD., DONDAPADU a profit

making is known for a sensation atmosphere among the employee forces in the study effort

have been to find out various statutory & welfare measures implemented in the ZAURI

CEMENTS LTD.,

Employee welfare is an important fact of industrial relations, the extra dimensions,

giving satisfaction to the worker in any way which even good wage cannot. With the

growth of industrialization and mechanization, it has acquired added important. The

worker, both in industries and agriculture, cannot cope with the pace of modern life with

minimum sustenance amenities. He needs an added stimulus to keep body and soul

together. Employees have also realized the importance of their role in providing these extra

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amenities. And yet they are not always able to fulfill workers demand however reasonable

they might be. they are primarily concerned the availability of the enterprise.

Employee welfare thought it has been proved to contribute it efficiency production is

expensive. Each employer depending on his priorities gives varying degrees of importance

to employee welfare. It is because the government is not sure that all employers are

progressive minded and will basic welfare measures that it introduces statutory legislation

from time to time to bring about some measures of uniformity in the basic amenities

available to industrial workers. Today, employers have generally accepted welfare. The

state only intervenes to widen the area of applicability. It is now accepted that it is a

social right. The Committee on Employee Welfare (CLW), formed in 1969 to review the

employee welfare scheme, described, I as social security that contribute to improve the

conditions under which workers are employed in India. Valid considers it as an

expression of the assumption by industry of its responsibility for its employees.

Though industrial workers are generally better paid, their conditions of

work and work often poorer living conditions necessity more than minimum amenities,

and hence most statutory legislation applies to them. In a resolution in 1947, the ILO

defined employee welfares as such services, facilities, arrangements, at a distance from

their houses, and such other services, amenities and facilities as to contribute to improve

the conditions under which workers are employed, Employee welfare and social security

will be dealt with separately. We shall first take up employee welfare.

OBJECTIVES:

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1. Partly humanization to enable the employee to enjoy a good quality

of work life.

2. Partly economic to improve the efficiency of the work which in

liven increase the production.

3. Partly civic to develop among them a sense of responsibility and

dignity make them working citizens of the nations.

4. TO fulfill future needs and aspirations of employee.

5. To increase productivity and efficiency of the employee.

SCOPE:

Employee welfare by its very nature must necessarily be elastic and differs from

time to region, industry to industry, country to country depending upon the value, system

level to education, social customs degree of industrialization and the general standards of

the social economic development of the people.

The International Labor Organization (ILO) observes the term is one which tends

itself to various interpretations and it has not always the same significance in different

countries. Sometimes the concept is very wide one is more or less, synonymous with

conditions of work as a whole. It may include not only the minimum standards of hygienic

and safety yards chosen general employee legislation but also such aspects of working life

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as social insurance schemes, measures for the protection of worker and young work as a

limitation of hours of work, paid vacations etc.

The scope of employee welfare is their family wide and is not limited to any one

country, one region, one industry as occupation. The scope of employee welfare has been

described by writers and institutions of different shades in different ways and from

different angles. The time of demarcation cannot be very precise, but what should be the

common characteristic in that welfare measures should ameliorate the workers and living

conditions of the workers and their families and make their lives meaningful. In the final

analysis, labor services should enable workers to live a richer and move satisfactory life.

Contribute to the productivity of employee and efficiency.

Retire the standard of living of workers by indirectly reducing the burden on the

purse.

Be in time and harmony with similar services obtaining as a neighboring

community where as enterprise is situated.

Be administratively viable and essentially development outlook

The scope of employee welfare however cannot be limited to facilities within or near

the undertaking. Nor can it be so comprehensive as to Embrace the whole range of social

welfare as social services.

Chief Characteristic Of Employee Work:

(i) It is the work which is usually undertaken within the premises or in the

vicinity of the undertaking for the benefit of the employee and the members of his amily.

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(ii) The work generally includes those items of welfare which are over and

above what is provided by statutory provisions or required by the custom of the

industry or what the employee expect as a result of a contract or service from the

employers.

(iii) The purpose of providing welfare amenities is to bring about the

development of the whole personality of the workers of his Social, Psychological,

Economic, Moral, Cultural and intellectual development to make him good worker

citizen and a good number to a family.

(iv) These facilities may be provided voluntarily by the progressive and

enlightened entrepreneur of their own accord out of their realization of

responsibility towards employee or the statutory laws may compute them to make

provision for these facilities or these may be taken up by the government or the trade

unions if they have the necessary funds with them.

(v) Employee welfare is a very broad term, covering from social security to

such activities as medical aid, crches, canteen, recreation, housing, adult,

education arrangement for transport of employee to and from workplace to residence.

(vi) It may be noted that not only the intramurals but also extramural, statutory

as well as non statutory activities under by any of the three agencies the

employers, trade union or the government for the physical and mental development

of a worker, both as compensation for wear and tear that the under goes as a part of

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production process and also to enable him to sustain and improve upon the basis

capacity for contribution to the process of production which are all the species of

the longer family encompassed by the term Employee welfare.

Employee Welfare:

It is useful to consider welfare benefits under two basic categories, via intra-

mural and extra-mural. The following categorization is used by.

INDAIN EMPLOYEE ORGANIZATION

Intra-mural Extra-mural

Drinking Water Social insurance (gratuity, pension, PF etc.)

Toilets Benevolent Fund

Crche Maternity Benefits

Washing Facilities Health and Medical Facilities

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Occupation Safety Education facilities

Uniforms and protective Housing Facilities

Clothing

Shift Allowance Recreation facilities

Canteen Leave travel Facilities

Workers Co-operative

Vocational Training

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.

Classification of Employee Welfare:

- Statutory

- Voluntary

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- Mutual

Statutory Welfare amenities:

Those which have to be provided irrespective of size of establishment, e.g. drinking

water

Those to be provided subject to employment of a specified number of

persons, e.g. crche. Again, in the case of certain amenities, there are no minimum

standards laid down in the sphere of housing, medical treatment, recreation transport and

educational facilities. This left to the discretion of the employer.

Employee Welfare: Intra-Mural:

Health and Medical Facilities: Through E.S .I A health workforce is

of utmost importance to industry. the ILO in its conventions and recommendations has laid

down standards, which have as laid a contributory effect on legislation in India. The ILO

convention 25 concernssickness insurance and medical facilities to be provided to an

insurance person while convention 103 deals with maternity protection. In its

recommendation No.69 it set certain norms for medical care. It also emphasized the need

for preventive care. It made recommendations in respect of workers involved in jobs with

special risks No.97 and for occupational healthy services No.112. The royal commission in

the pre-independence period stressed the importance of health facilities and a unified

scheme of social insurance. We not consider the several employee welfare benefits both

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intra-mural and extra-mural, voluntary and statutory. The statutory is provided by the

Factories Act.

Thefactories Act 1948:

The broad areas of coverage under, the Act are health, welfare, safety, working

hours, annual leave, Bonus 8.33% with wages and employment. The Act applies to

premises including the predicts there of where ten or more workers are employed, with the

aid of power or where 20 or more workers are employed without power.

Before starting a factory and periodically thereafter, the chief inspector of factories

and his staff measure in the plant, including proper ventilation of noxious fumes and

protective equipment for eyes where necessary. A maximum work day of 8 hours is

prescribed for adults. A work week of 48 hours is also prescribed. A weekly holiday is also

specified as also eligibility of annual leave with pay after 240 days of employment.

Canteen if there are 250 or more workers, crches if 50 or more women workers are

employed, rest rooms and lunch rooms, shelters in case of 150 or more workers, and

ambulance rooms with a qualified doctors and staff if there are 500 or more workers.

Basic amenities like lighting and ventilation are to be provided whatever the size of the

establishment.

Family Planning:

The-five year plans have laid great emphasis on this programme which has acquired

a sense of urgency, specially in the Fourth Year Plan. The CLW recommended that it

should be made part and parcel of employee welfare activities.

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Rest rooms are provided so that works may relax during their breaks for rest or meal. The

can also wait in comfort till time they start work particularly before or after like shifter.

Housing :

Recommendation 115 of the ILO states that housing be a matter of national policy.

Both the Indian Industrial Commission (1918) and the Royal Commission realized the

importance and necessity of improving housing conditions of industrial workers and

suggested various measures. In 1944 the employee Investigation Committee reviewed

housing conditions in principal urban areas and found industrial housing far from

satisfactory. They felt a clear long-term housing policy was essential. In 1948, the

government of India put forth the industrial housing Scheme. The Central Government

subsidized the state Government to the extent of 12 122% on a maximum of Rs. 200 per

house, provided the state Government contributed an equal amount.

The response to the scheme was poor. The first Five Year Plan (1951) suggested it

the Central Government should take major responsibility for financing housing schemes.

The sub seized housing scheme for industrial workers was extended to weaker sections of

the community also. It applied to workers under section 2(1) of the Factories Act, whose

wages did not exceed Rs.300 per month and still they reached a maximum of RS 500 per

month. The scheme provided that in addition to puce houses, -e state could also provide

developments plots, skeleton houses, hostels, dormitories, - building at subsidized rates to

eligible industrial workers.

Transport Facilities:

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The growth of industrial states and workshops outside the city has made commuting

a problem for workers. In India, since the public transport system is not only fully eloped

and hardly efficient, fatigue of travel to and from work has a detrimental tect on the

attendance pattern of workers. The CLW after studying the situation:- commended that

transport on a large scale is best provided by the state; that the local dies should

streamline their operations, increase their fleet and the frequency of buses especially to

employee colonies, industrial estates and townships, and for carrying to and night shifts.

They feel that employers could help by giving conveyance allowance, loans to purchase

bicycles, provide parking facilities, etc. in metropolitan cities, NCL and CLW have

suggested that work hours be staggered, so as not burden the transport system. In the case

of smaller units they suggested that transported be provided on a joint basis.

Educational Facilities:

The literate worker is naturally more receptive. Educating the workers family, his

children, is essential, since in a sense, it is an investment in training the workforce of the

future. Surveys on employee conditions indicate that no tangible efforts have been made to

eradicate illiteracy among workers. Though the government employers and workers are

aware of the importance of developing adult education among workers, there has been to

sustained effort. There have been various suggestions on how to educate workers-one is

the provision of night schools, for those who are inclined. Workers in reply to the CLW

questionnaire felt that if sufficient incentives are provided, like promotions, they would be

motivated.social welfare bodies can also help to educate workers families.

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The Central Workers Education Board conducts classes for industrial workers,

employers and workers organization have suggested that personnel trained by the Board

should subsequently take up the work of educating industrial workers with the

governments are of the opinion that the Central Board is already overburdened and not

capable of taking on an added burden. A panel of experts on literacy set up by the planning

commission expressed the need for a autonomous Central Board to promote literacy

among industrial workers.

Evolution of social security measures :

Social security forms an important part of employee welfare providing the security is

of great importance to the workers and his familys wellbeing.

The ILO definition is basically that it can be taken to mean the protection which

society provides for its members, through a series of public measures, against the

economic and social distress that otherwise would be caused by the stoppage or substantial

reduction of earnings resulting from sickness, maternity, employment injury,

unemployment, invalidity, old:- e and death; the provision of medical care; and the

provision of subsidies for families with children.

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Extent of injury or death, but the employer is nit responsible if a workman sustains

his injuries under the influence of drugs, drinks etc. length of the service is not

consideration for equality of compensation or eligibility except for >::- national diseases,

where it is six month, and within two years of termination in the case of an employee

whose services had been terminated . the act also provides for half-monthly payment for

temporary disablement, but the compensation cannot exceed half the monthly wages. A

workman cannot claim damages in a civil court and still expect to benefit from the Act. It

is admistered by a commissioner, appointed by the Government.

1.RECREATIONAL FACILITIES

Table: 1

Opinion No. of respondents Percentage

Strongly Agreed 44 59%

Agreed 16 21%

Neutral 10 13%

Disagreed 5 7%

Total 75 100%

Graph: 1

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INTERPRETATION:From the above figure it shows that most of the employees agree that all necessary

safety equipments are provided to the employees while some of the employees commented

that the safety equipments provided by the company are not provided in time.

2.TRANSPORTATION

Table: 2



Agreed 37 49%

Neutral 23 31%

Disagreed 4 5%

Total 75 100%

Graph: 2

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INTERPRETATION:

From the above figure it shows that most of the employees agree that all necessary safety

equipments are provided to the employees while some of the employees commented that

the safety equipments provided by the company are not provided in time

3.INFRASTRUCTURE

Table: 3



Agreed 37 49%

Neutral 26 35%

Disagreed 2 3%

Total 75 100%

Graph: 3

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INTERPRETATION:



the safety equipments provided by the company are not provided in time.

4.PROVISIONS FOR FIRST-AID BOXES WHERE EVER THEY ARE

NECESSARY

Table: 4

Opinion No. Of respondents Percentage


Agreed14 19%

Neutral 7 9%

Disagreed 5 7%

Total 75 100%

Graph: 4

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INTERPRETATION:

From the above figure it shows that most of the employees strongly agreed that the

company is providing provisions for first aid boxes however some are not in a position to

comment about this as a first aid facility are provided to the workers, and moreover first

aid equipment are not provided in time.

5.MANAGEMENT TAKES GOOD CARE ABOUT THE SAFETYMEASURES OF THE

EMPLOYEES

Table: 5



Agreed 43 57%

Neutral 21 28%

Disagreed 2 3%

total 75 100%

Graph: 5

INTERPRETATION:

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From the above graph it shows that most of the employees agreed that the

management is taking care about the safety measures of the employees. While some have

natural opinion as safety measures taken by the company are not up to satisfaction of the

employees.

6. NECESSARY MEASURES ARE TAKEN TO PREVENT THE ACCIDENTS

Table: 6



Agreed 52 69%

Neutral 8 11%

Disagreed 2 3%

Total 75 100%

Graph: 6

INTERPRETATION:

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7. ALL NECESSARY SAFETY EQUIPMENTS ARE PROVIDED BY COMPANY

(BELTS, SHOES, UNIFORMS, AND HELMETS)

Table: 7



Agreed 56 75%

Neutral 5 7%

Disagreed 0 0%

Total 75 100%

Graph: 7

INTERPRETATION:

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9. PAYMENT OF COMPENSATION TO ALL THE

EMPLOYEES IN CASE OF ACCIDENTS

Table: 8



Agreed 32 43%

Neutral 25 33%

Disagreed 8 11%

Total 75 100%

Graph: 8

INTERPRETATION:

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From the above figure it shows that most of the employees agree with the compensation

facilities and some disagree with these facilities and also commented that the

compensation paid is not sufficient for the employees and are very low when compared

with other companies.

9. STATUTORY BENEFITS PROVIDED BY THE MANAGEMENT

Table: 9



Agreed 19 25%

Neutral 36 48%

Disagreed 16 22%

total 75 100%

Graph: 9

INTERPRETATION:

From the above figure that most of the employees are not in a position to

comment about the statutory benefits provided by the company and only some agree that

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the all statutory benefits are provided by the company and some commented that there is

no wage revision.

10. INTEREST OF ORGANISATION REGARDING THE WELFARE OF THE

EMPLOYEES

Table: 10



Agreed 34 46%

Neutral 31 41%

Disagreed 6 8%

Total 75 100%

Graph: 10

INTERPRETATION:

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From the graph it shows that the organization is very much interested in welfare of

the employees. However some are not in apposition to comment, as the welfare facilities

provided by the company are not up their satisfaction..

11. MANAGEMENT WELCOMES SUGGESTIONS ON THE WELFARE ACTVITIES

Table: 11



Agreed 5 7%

Neutral 0 0%

Disagreed 0 0%

Total 75 100%

Graph: 11

INTERPRETATION:

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From the above graph most of the employees strongly agreed with the suggestions on the

welfare activities. There were no comments on the neutral and disagreed options

12 DETERMINATION OF EMPLOYEES REGARDING THE MANAGEMENT

CONSUITANCIES

Table: 12



Agreed 38 51%

Neutral 25 33%Disagreed 7 9%

Total 75 100%

Graph: 12

INTERPRETATION:

From the above figures it shows that most of the employees agree with the management

consults the employees to determine the welfare needs and very low are disagree with their

options , many of the employees were not ready to comment on the issue

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13. VOLUNTARY BENEFITS ARE PROVIDED BY THE COMPANY ( LOANS,

HOUSING AND EDUCATION LOANS ETC)

Table: 13



Agreed 59 69%

Neutral 6 11%

Disagreed 6 3%

Total 75 100%

Graph: 13

INTERPRETATION:

From the above figure it shows that most of the employees agree that the voluntary

benefits are provided to the employees while some of the employees commented that the

voluntary benefits are not provided in time

14. WHETHER THE CANTEEN FOOD IS HYGENIC OR NOT

Table: 14

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Agreed 31 41%

Neutral 15 20%

Disagreed 29 39%

Total 75 100%

Graph: 14

INTERPRETATION:

From the above figure it shows that most of the employees agree that the canteens food

is hygienic while some are not availing these canteen facilities as their house are nearer to

the company and some are disagreed with the canteens food is hygienic.

15. NUMBER OF SHELTERS AND REST ROOMS PROVIDED BY THE COMPANY

Table: 15



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Agreed 55 73%

Neutral 14 19%

Disagreed 3 4%

total 75 100%

Graph: 15

INTERPRETATION:

From the above figure it shows that the most of the employees agreed while some are not

in a position comment about the company providing good number of shelters and rest

rooms of the employees and very few are disagreed &strongly agreed

16.AWARENESS OF MANAGEMNT REGARDING WORKING CONDITIONS OF

THE EMPLOYEES

Table: 16



Agreed 51 68%

Neutral 12 16%

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Disagreed 4 5%

Total 75 100%

Graph: 16

INTERPRETATION:

From the above figure it shows that the most of the employees agreed while some are not

in a position comment about the aware working of conditions of the employees and very

few are disagreed &strongly agreed

17. PROVIDING PROPER VENTILATION AND LIGHTING

Table: 17



Agreed 58 16%

Neutral 13 17%

Disagreed 0 0%

total 75 100%

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Graph: 17

INTERPRETATION:

From the above the graph it shows that most of the employees agreed that the company is

providing proper ventilation and lighting in time, however some are not in a position to

comment about the facilities

Welfare Facilities

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