Industrial Relations

Chapter-II

Theoretical Frame Work on

Employee Welfare Programmes

&

Industrial Relations

A. Employee Welfare Programmes

1. Introduction

2. Concepts

3. Objectives

4. Benefits

5. Need for extending welfare programmes

6. International and Indian perspectives

7. Types of social security and welfare schemes

8. Non monetary rewards

9. Stock option scheme

B. Industrial relations

1. Introduction

2. Concepts

3. Scope

4. Industrial Relations Policy

5. Trade Unionism in India

6. Causes of Industrial Disputes

7. Importance

8. Causes of poor industrial relations

9. Effects of poor industrial relations

10. Code of industrial relations

11. Dunlop's contribution

12. Perspectives of industrial relations

13. Measures to improve industrial relations

14. Factories Act & Industrial Relations

A. Employee Welfare Programmes

1. Introduction

The wages provided to the employee's, particularly of the lower level may not be sufficient to meet their needs like medical, children education, maternity needs of women employees and employee's wives etc. Therefore, governments of various countries insist the employers to provide security and welfare measures to their employees against the social evils. In addition, governments also provide social security measures to the people. The labor welfare and social security measures are also known as hidden pay roll, employee service programmes or fringe benefits.

After basic pay and incentives the third major component of organizational reward systems is welfare and security benefits some of which are mandated by law and some are voluntary.

2. Concepts

Definition and meaning:

According to lord beveridge, social security, "is an attack on five giants, viz., want, disease, ignorance, squalor and idleness." This concept is equal to social justice and equality.

ILO defines social security as, "the security that society furnishes, through appropriate organization against certain risks to which its members are exposed...social security is designed to prevent and cure disease, to support when people are unable to earn and restore gainful employment."

The oxford dictionary defines labor welfare programmes as "efforts to make life worth living for workmen."

Evolution: There are two main aspects in labor welfare, viz., social assistance and social insurance. ILO defines social assistance as, "a service or scheme which provides benefits to persons of small means as of right in amount sufficient to meet minimum standards of need and financed from taxation." Thus social assistance is the obligation of the community or the government.

Beveridge defines social insurance as, "the giving in return for the contribution, benefits up to subsistence level, as of right and without mean tests, so that an individual may build freely upon it. Thus, social insurance implies that it is compulsory."

3. Objectives of Social security and Welfare programmes

The important benefits of fringe benefits are:

1 To create and improve sound industrial relations

2 To boost up employee morale

3 To motivate the employees by identifying and satisfying their unsatisfied needs

4 To provide qualitative work environment and work life

5 To provide security to the employees against social risks like old age benefits and maternity benefits

6 To protect the health of the employees and to provide safety to the employees against accidents

7 To promote employee's welfare by providing welfare measures like recreation facilities

8 To create a sense of belongingness among employees and to retain them. Hence, fringe benefits are called golden hand -cuffs

9 To meet requirements of various legislations relating to fringe benefits

4. Benefits

The employee welfare programmes benefit the employer in several ways ,many of which are not subject to the qualification .

1 Among these benefits some of them are:

2 More effective recruitment (because these benefits add to job appeal)

3 Improved morale and loyalty

4 Lower employee turnover and absenteeism

5 Good industrial relations

6 Reduced influence of trade unions

7 Reduced threat of further govt intervention

8 Enhanced public image and goodwill

5. Need for extending welfare programmes

Most of the organizations have been extending the fringe benefits to their employees, year after year, for the following reasons:

1. Employee demands

2. Trade union demands

3. Employer's preference

4. As a social security

5. To improve human relations

6. International

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