Review And Study On OCM Suitings Commerce Essay

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Since its inception in 1924 as a manufacturer of hand-knotted carpets, OCM has come a long way to become one of the largest worsted suiting producers, the first one to implement a customized textile ERP solution.


A completely vertically integrated plant, OCM has in-house production facilities to convert tops to finished fabrics through dyeing, spinning, weaving and finishing using state-of-the-art machinery. All the materials and processes pass through stringent checks at every stage and help in delivering outstanding quality.

At present the company's capacity includes 34064 Spindles and 182 high speed shuttle less looms thereby giving spinning capacity of 12000 kgs yarn and weaving capacity of 25000 Mtrs of fabric per day. The spinning preparatory is from NSC, France, Spindles from Zinser, Germany, Autoconers from Schlhafhorst, Germany, TFO's from Leewha, Korea and looms from Lindaeur Dornier, Germany, Sulzer, Switzerland and Picanol, Belgium. Apart from this, colour continuity is tested on colour matching system from Gretag Macbreath, UK and fabric gets final finish on KD from Biella Shrunk, Rotary Press of Mario Crosta,Italy, Continuous Decatising from Speretto Rimar, Italy, Superfinish from M-Tec, Germany and Shearing machine from Xetma Vollenweider, Switzerland.


India - the Jewel in the OCM Crown:

While starting out as the dominant manufacturers in Persia and Turkey, it was OCM's revival of India as a major Oriental carpet origin that first provided the company with the volume of merchandise and control over designs and colors upon which its success in the Western markets depended.

By encouraging a native craft that had begun under the Mughal Emperors of the Sixteenth and Seventeenth Centuries, and combining this inherent artistry of the weavers of Uttar Pradesh and Rajahstan with modern production methods and appropriate technology, OCM (through its associates E. Hill & Co.) turned India into the world's single largest source of handmade oriental carpets. While it was OCM's Persian and Turkish carpets that enjoyed the greatest popularity in the Old World of Britain and Europe , it was the far larger output of these exclusively designed Indian items, and subsequently the company's huge Chinese production, which served to gain them market leadership in Canada and the USA.

Girl weavers at OCM's Amritsar workshop making the finest quality of Indian carpets


Ø Physical safety;

Ø Promotion and protection of consumers' economic interests;

Ø Standards for safety and quality of consumer goods and services;

Ø Distribution facilities for essential consumer goods and services;

Ø Measures enabling consumers to obtain redress;

Ø Education and information programmes;

Ø Promotion of sustainable consumption; and

Ø Measures relating to specific areas like water, food and pharmaceuticals

These areas have been translated into the following eight consumer rights by the consumers' International:

1) Right to Basic Needs;

2) Right to Safety;

3) Right to Choice;

4) Right to Information;

5) Right to Consumer Education;

6) Right to Redressal;

7) Right to Representation; and

8) Right to Healthy Environment

The huge wool spinning machines installed by OCM at their Amritsar manufactory in India

The design workshop at OCM's Khamariah manufactory, North India


The right to food, clothing, shelter, health care, drinking water & sanitation, education, energy and transportation come under the ambit of basic needs. Without the fulfillment of these eight needs it would be impossible for any human being to live in a dignified manner. The UN Guidelines do not explicitly mention the right to basic needs, but expect Governments to take appropriate measures so that consumers can have easy access to "essential goods & services".

(a) In India, the instrument for ensuring food security (the right to food), particularly for the poorer sections of society, is through the public distribution system (PDS). Some field level studies show that on an average only about 25 per cent of the poor are availing the benefits of the PDS system.

(b) Clothing is a fundamental need and therefore it comes under the right to basic needs. One of the objectives of the Textile Policy, 1981, in India is strengthening and streamlining infrastructure for distribution of cloth to weaker sections of the population.

(c) The Right to Health has been outlined in two policy statements: National Health Policy and the Drug Policy. Life expectancy at birth has more than doubled in the last fifty years. It increased from around 30 years in 1947 to over 60 years in 1992-96. The infant mortality rate declined from 134 infants per thousand live births in 1977 to 72 infants per thousand live births by 1998.

(d) In 1998, the Government of India adopted the National Housing and Habitat Policy to ensure the right to shelter. This policy envisaged a major shift in the role of the Government from that of being a provider to that of a facilitator. Presently the housing scenario is such that between 25 to 50 percent of the urban population is living in makeshift shelters, squatter settlements or slums. In rural areas, 75 percent of the constructions are classified as that of a semi-permanent nature.

(e)The Right to Education is mentioned in the Chapter of Directive Principles of State Policy in the Constitution of India. The 83rd Constitutional (Amendment) Act 2000 has made elementary education a fundamental right.

OCM carpets on the first leg of their journey back to London, and from there to America


The right to safety means the right to be protected against products, production processes and services, which are hazardous to health or life. The UN Guidelines consider two kinds of safety: Physical safety and Standards for the safety and quality of consumer goods and services.

In India there are constitutional, legislative and administrative provisions with respect to this right. Among the constitutional provisions, the most important one is the protection of life and personal liberty (Article 21). Two major legislations are the Prevention of Food Adulteration Act, 1954, and the Bureau of Indian Standards Act, 1986.

Loading the finished carpets on the first stage of their journey back to OCM London


The right to consumer education means the right to acquire the knowledge and skills to be an informed consumer. At present there is no clear-cut policy in India with respect to consumer education. Furthermore, the Government of India, through the Consumer Welfare Fund, has made provisions to fund consumer education programmes undertaken by consumer groups or the state governments. Despite various measures taken by the Government and several consumer organisations, majority of consumers are still not fully aware of all the consumer protection legislations and its implementation mechanisms.

Healthy Environment:

The rationale behind this right is that the resources used in the production and consumption of goods and services should be utilised in a healthy and ecologically sound manner. As per the Guidelines, Governments should adopt measures relating to use, production and storage of pesticides and chemicals. The Guidelines have now been revised to include guidelines for sustainable consumption. The elaborate mention of these in the Guidelines now lists out both the rights and responsibilities of the consumer. However, these are yet to be incorporated in government policy and/or legal measures. The Environment Protection Act, 1986, provides the guidelines for the management of hazardous wastes etc., e.g. safety report, safety audit etc. The other main environmental legislations include regulation of pollution of water, air and soil. The implementation of the above mentioned laws is quite ineffective. In fact, the multiplicity of laws is the major reason for this, which in turn leads to a multiplicity of administrative mechanisms, corruption and lack of resources to implement the laws faithfully. Furthermore, lack of awareness on the part of consumers regarding the hazardous nature of pesticides and chemicals and ineffective training of the people responsible for ensuring a healthy environment, accentuate the problem. The most sinister problem facing the modern society,which especially threatens the young workforce of the country is the HIV /AIDS infection.


There is the ridiculous claim by the Government of having created seven million new jobs during the last fiscal year as against the ruling party's promise of creating ten million new jobs every year. There has been an alarming decline of employment by 8% in the past two consecutive years. Nearly two crore workers have been thrown out of the streets and about 3 lakhs industries have been closed during the past decade of economic reforms. The menacing growth of unemployment is poised to destroy the social fabric of the nation. There is also the threat of the entry of foreign contractors even in garbages removal, which will swell the ranks of the destitutes who will take to a life of crime.

Amendment of Labour Laws:

The Government egged on by the employers' lobby has unleashed an onslaught on the workers and their trade unions. The Govt. is all set to implement the recommendations of the Second National Commission on labour to deprive the workers of their hard-earned rights.


Ø Medical care: This should cover pregnancy, confinement, and its consequences and any disease which may lead to a morbid condition. The need for pre-natal and post-natal care, in addition to hospitalisation, was emphasized. A morbid condition may require general practitioner care, provision of essential pharmaceuticals and hospitalization.

Ø Sickness benefit: This should cover incapacity to work following morbid condition resulting in loss of earnings. This calls for periodical payments based on the convention specification. The worker need not be paid for the first three days of suspension of earnings and the payment of benefit may be limited to 26 weeks in a year.

Ø Unemployment benefit: This should cover the loss of earning during a worker's unemployment period. When he is capable and available for work but remains unemployed because of lack of suitable employment. This benefit may be limited to 13 weeks payment in a year, excluding the first seven days of the waiting period.

Ø Old-age benefit: This benefit provides for the payment-the quantum depending upon an individual's working capacity during the period before retirement.-of a certain amount beyond a prescribed age and continues till death.

Ø Employment injury benefit: This should cover the following contingencies resulting from accident or disease during employment: • Morbid condition • Inability to work following a morbid condition, leading to suspension of earning; • Total o0r partial loss of earning capacity which may become permanent; • Death of the breadwinner in the family, as a result of which family is deprived of financial support.

Ø Family benefit: This should cover responsibility for the maintenance of children during an entire period of contingency. Periodical payment, provision of food, housing, clothing, holidays or domestic help in respect of children should be provided to a needy family.

Ø Maternity benefit: This benefit should cover pregnancy, confinement and their consequences resulting in the suspension of earnings. Provision should be for medical care, including pre-natal confinement, post-natal care and hospitalization if necessary. Periodical payment limited to 12 weeks should be made during the period of suspension of earnings.

Ø Invalidism benefit: This benefit, in the form of periodical payments should cover the needs of workers who suffer from any, disability arising out of sickness or accident and who are unable to engage in any gainful activity.

Ø Survivor's benefit: This should cover periodical payments to the family following the death of its breadwinner and should continue the entire period of contingency. The ILO has suggested various methods of organizing, establishing and financing various social security schemes. For the benefit of the less developed countries, it has fixed the level of benefits fairly low, so that the schemes may be practicable.


Voluntary Retirement Scheme (VRs):

In the present market scenario, in view of the ongoing restructuring in the industries including OCMs, several measures for reforms and restructuring of OCMs have been taken up by the Government. Right sizing of man power in the OCMs is one of these measures adopted. Restructuring of manpower may lead to redundancy. In this context, it has been the constant endeavour of the Government to safeguard the interest of the employees in OCMs. In the process, the Voluntary Retirement Scheme, which was initially announced in October, 1988 for the first time was further liberalized and a comprehensive package was notified vide DPE's O.M dated 5th May, 2000 so as to cater to the need of the OCM to met their objectives and also to protect the interest of the workers affected due to various forms of restructuring.

Ø VRs in OCMs that can sustain VRs at their own surplus: Financially sound enterprises that have to reduce their workforce in order to remain competitive may frame their own schemes of VRs and make it attractive enough for employees to opt for it. They may offer as compensation upto 60 days salary for every year of completing service. However such compensation will not exceed the salary for the balance period of service left.

Ø VRs in marginally profit or loss making and sick and unviable OCMs: Marginally profit making or loss making OCMs have been permitted to introduce an improved VRs based on Gujarat Model. Under this model an employee will receive compensation as follows:

1) 35 days salary for each completing year of service and,

2) 25 days salary per each year of service for the balance of service left under the superannuating subject to some conditions. Sick and unviable employees in OCM have allow to ex-gratia payment equivalent to 45 days for each completing year of service or the salary for the remaining months of service left, whichever is less. However, all those who have completed not less than 30 years of service, are eligible for a maximum of 60(sixty) months' salary as compensation subject to the amount not exceeding the salary for the balance period of service left.

Ø Schemes of Counselling, Retaining & Redeployment: Restructuring of enterprises is a global phenomenon, particularly in the context of liberalized economy. There has been thrust on restructuring the central public enterprises both at macro as well as micro level. In the process, rationalization of manpower has also become a necessity. Considering the emerging need to have safety net, Government had established National Renewal Fund (NRF) in February, 1992 broadly to cover the expenses of VRS and to provide retraining to the workers in the organized sector. However, in the backdrop of ongoing restructuring exercises in the central enterprises, focus was given on the need of CPSEs. The NRF was abolished in February, 2000. The retraining activity was administered by Department of Industrial Policy & Promotion till 31st March, 2001. The scheme for Counselling, Retraining and Redeployment (CRR) of rationalized employees of OCMs is under implementation by Department of Public Enterprises since 2001-02.

The schemes for Counselling, Retraining and Redeployment (CRR) interalia aims:

Ø to provide opportunity for self-employment.

Ø to reorient rationalized employees through short duration programmes.

Ø to equip them for new avocations.

Ø to engage them in income generating self-employment.

Ø to help them rejoining the productive process.

Ø Similarly, retraining strengthens their skill/expertise.

Selected training institutes impart need-based training of 20 days/30 days/40 days modules.


“Labour welfare activities benefit not only the workers but also the management in term of greater industrial efficiency”

Labour plays a very important role in the industrial production of the country. The human resource managers are really concerned with the management of people at work. It is necessary to secure the cooperation of labour in order to increase the production and earn higher profits. The labour force is possible only when they are fully satisfied with their employer and the working condition on the job. In the course of time with the introduction of the concept of Human Resource Management, psychological researches convinced them that the workers required something more important. In addition to providing monetary benefits, human treatment given to employee plays a very important role in seeking their cooperation.

It is through social security measures that the state attempts to maintain every citizen at a certain prescribed level below which no one is allowed to fall. It is the security that society furnishes through appropriate organization, against certain risks to which its members are exposed (ILO, 1942). Social security system comprises health and unemployment insurance, family allowances, provident funds, pensions and gratuity schemes, and widows' and survivors' allowances. The essential characteristics of social insurance schemes include their compulsory and contributory nature; the members must first subscribe to a fund from which benefits could be drawn later.

The Constitution of India (Article 41) laid down that the State shall make effective provision for securing the right to public assistance in case of unemployment, old age, sickness and disablement and in other cases of underserved want. The Government took several steps in compliance of the constitutional requirements. The Workmen's Compensation Act (1926) was suitably revised and social insurance programmes were developed for industrial workers. Provident funds and gratuity schemes were introduced in most industries, and maternity legislation was overhauled. Subsequently, State governments instituted their own social assistance programmes. The “provisions for old age comprise pension, provident fund, and gratuity schemes”. All the three provisions are different forms of retirement benefits.

(Gratuity is a lump sum payment made to a worker or to his/her heirs by the company on termination of his/her service due to retirement, invalidity, retrenchment or death).

The ILO report refers to labour welfare as “such services, facilities, and amenities, which may be established in, or in the vicinity of undertakings to enable persons employed therein to perform their work in healthy and congenial surroundings and provided with amenities conducive to good health and high morale”.


Certain fundamental considerations are involved in the concept of labour welfare. The following are the more important among them.

Social responsibility of industry:

This principle is based on the social conception of industry and its role in the society that is, the understanding that social responsibility of the state is manifested through industry. It is assumed that labour welfare is an expression of industry's duty towards its employees. Social responsibility means that the obligation of the industry to pursue those policies, to take such decisions, and to follow those lines of action which are desirable in terms of the objectives and values currently obtaining in the society. Industry is expected to win the co-operation of the workers, provide them security of employment, fair wage, and equal opportunity for personal growth and advancement, and make welfare facilities available to them.

Democratic values:

The principle of democratic values of labour welfare concedes that workers may have certain unmet needs for no fault of their own, that industry has an obligation to render them help in gratifying those needs, and that workers have a right of determining the manner in which these needs can be met and of participating in the administration of the mechanism of need gratification. The underlying assumption to this approach is that the worker is a mature and rational individual who is capable of taking decisions for him/her.

Adequacy of wages:

The third principle of labour welfare is adequacy of wages; it implies that labour welfare measures are not a substitute for wages. It will be wrong to argue that since workers are given a variety of labour welfare services, they need be paid only low wages. Right to adequate wage is beyond dispute.


The fourth principle of labour welfare lays stress on the dictum that to cultivate welfare is to cultivate efficiency. Even those who deny any social responsibility for industry do accept that an enterprise must introduce all such labour welfare measures which promote efficiency (Marshall, 1950). It has been often mentioned that workers' education and training, housing, and diet are the three most important aspects of labour welfare, which always accentuate labour efficiency.


The fifth principle of labour welfare recognises that the responsibility for labour welfare lies on both employers and workers and not on employers alone (Moorthy, 1958). Labour welfare measures are likely to be of little success unless mutuality of interest and responsibilities are accepted and understood by both the parties, in particular the quality of responsibility at the attitudinal and organisational level.

“Totality of welfare the final principle of labour welfare is that the concept of labour welfare must permeate throughout the hierarchy of an organisation, and accepted by all levels of functionaries in the enterprise”


Welfare of labour one of the major concerns of the Government has been the improvement of labour welfare with increasing productivity and provision of a reasonable level of social security. Social Security There are a variety of laws enacted and schemes established by the Central/State Governments with a view to provide for social security and welfare of specific categories of working people. The principal social security laws enacted centrally are the following:

Ø The Workmen's compensation Act, 1923 (WC.Act.)

Ø The Employees State Insurance Act, 1948 (ESI Act)

Ø The Employees' Provident Funds and Miscellaneous Provisions Act, 1953 (EPF & MP Act.

Ø The Maternity Benefit Act, 1961 (MB Act)

Ø The Payment of Gratuity Act, 1972 (PG Act)

Though social security programmes vary from country to country, their three major characteristics are: they are established by law; they provide some kind of cash payment to individuals to replace atleast a part of their lost income that our due to such contingencies as unemployment, maternity, work injury, invalidism, sickness, old age and death; the benefits or services are provide in three major ways:

1) Social insurance,

2) Social assistance or

3) Public services.

Social insurance:

Ø It is financed entirely by or mainly from the common monetary contributions of workers, employers and the state.

Ø The state and the employers make major contribution to this fund, while the employees pay only a nominal amount.

Ø When there is total or partial loss of income, these benefits, within limits, ensure the maintenance of the beneficiary's minimum standard of living.

Ø Social insurance benefits are granted without an examination of an individual's need and without any means test, without affecting the sense of self respect of the beneficiary.

Ø These benefits are so planned as to cover, on a compulsory basis, all those who are sought to be covered. • Social insurance reduces the suffering arising out of the contingencies faced by an individual -contingencies which he cannot prevent.

“Social insurance is different from commercial insurance, for the latter is voluntary and is meant for the better paid section of the population, and its benefits are in proportion to the premiums paid; it offers protection only against individual risks and does not aim at providing a minimum standard of livin”.

Social assistance:

Social assistance is provided as a supplement to social insurance for that needy person who cannot get social insurance payments, and is offered after a means test. The general revenues of the government provide the finance for social assistance payments, which is made available as a legal right to those workers who fulfil given conditions. Social assistance and social insurance go side by side. Social assistance programmes cover such programmes as unemployment assistance, old age assistance, public assistance and national assistance. Social security is the combination of social assistance and social insurance. Social insurance, however, falls midway between the two, for it is financed by the state as well as by the insured and their employers; whereas social assistance is given gratis to the needy by the state or the community.

Public service:

Public service programmes constitute the third main type of social security. They are financed directly by the government from their general revenues in the form of cash payment and services to every member of the community falling within the defined category. This kind of public service is currently available in a number of countries in the form of national health service providing medical care for every person in the country, old-age pension, pension for invalidism, survivor's pension to every widow or orphan, and a family allowance to every family having a given number of children. Although these social security programmes have different characteristics, it is not always easy to draw a line of demarcation among them. In many cases, two or even three programmes have common characteristics. Apart from state there are many other agencies which provide se4curity against contingencies.“The underlying idea of social security measures is that a citizen, who has contributed, or is likely to contribute to his country's welfare, should be given protection against certain hazards”.


OCM is playing very important role in producing and selling milk products. The concept of labour welfare is fully adopted by the OCM suiting in order to satisfy employee needs. All the principles of labour welfare are accepted by the OCM. Labour welfare aspects are highly regarded with the view of human resources development. The importance of labour welfare has been recognized by the plant in order to seeking cooperation of employees.

Constituents of labour welfare in OCM

Social security is the main constituent of labour welfare in OCM and another are:

Ø welfare included working hours,

Ø working conditions, safety,

Ø industrial health insurance,

Ø workmen's compensation,

Ø provident funds,

Ø gratuity,

Ø pensions,

Ø protection against indebtedness,

Ø industrial housing, restrooms, canteens, crèches, wash places, toilet facilities, lunches, cinemas, theatres, music, reading rooms, holiday rooms, workers' education,

Ø Co-operative stores, excursions and scholarships and other help for education of employees' children.


There are various agencies which are established rules related to labour welfare in OCM suiting's these are following

1. Central Government

2. State Governments

3. Worker Union

4. Employers

5. Others

Central Government:

The Central Government has passed various welfare legislations for the different types of workers which are same applicable in OCM some important legislation are:

1. The Workmen's compensation Act, 1923 (WC.Act.)\

2. The Employees State Insurance Act, 1948 (ESI Act)

3. The Employees' Provident Funds and Miscellaneous Provisions Act, 1953 (EPF & MP Act)

4. The Maternity Benefit Act, 1961 (MB Act)

5. The Payment of Gratuity Act, 1972 (PG Act) The EPF and MP Act are administered exclusively by the Government of India through the EPFO. The cash benefits under the ESI Act are administered by the Central Government through the Employees State Insurance Corporation (ESIC), whereas medical care under the ESI Act is being administered by the State Government and Union Territory Administration.

Main provision of laws related with welfare

The Factories Act, 1948:

The Factories Act, is a social legislation which has been enacted for occupational safety, health and welfare of workers at work places. This legislation is being enforced by technical officers i.e. Inspectors of Factories, Dy. Chief Inspectors of Factories who work under the control of the Chief Inspector of Factories and overall control of the Labour Commissioner, Government of National Capital Territory of Delhi

It applies to factories covered under the Factories Act, 1948. The industries in which ten (10) or more than ten workers are employed on any day of the preceeding twelve months and are engaged in manufacturing process being carried out with the aid of power or twenty or more than twenty workers are employed in manufacturing process being carried out without the aid of power, are covered under the provisions of this Act.

Ø Health

Ø Safety

Ø Welfare facilities

Ø Working hours

Ø Employment of young persons

Ø Annual Leave with wages etc.

WASHIN FACILITIES: (1) In every factory

Ø adequate and suitable facilities for washing shall be provided and maintained for the use of the workers therein;

Ø separate and adequately screened facilities shall be provided for the use of male and female workers;

Ø such facilities shall be conveniently accessible and shall be kept clean.

Ø The State Government may, in respect of any factory or class or description of factories or of any manufacturing process, prescribe standards of adequate and suitable facilities for washing.


The State Government may, in respect of any factory or class or description of factories, make rules requiring the provision therein of suitable places for keeping clothing not worn during working hours and for the drying of wet clothing.


(1) In every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position, in order that they may take advantage of any opportunities for rest which may occur in the course of their work.

(2) If, in the opinion of the Chief Inspector, the workers in any factory engaged in a particular manufacturing process or working in a particular room are able to do their work efficiently in a sitting position, he may, by order in writing, require the occupier of the factory to provide before a specified date such seating arrangements as may be practicable for all workers so engaged or working.

(3) The State Government may, by notification in the Official Gazette, declare that the provisions of sub-section (1) shall not apply to any specified factory or class or description of factories or to any specified manufacturing process.


(1) There shall in every factory be provided and maintained so as to be readily accessible during all working hours first-aid boxes or cupboards equipped with the prescribed contents, and the number of such boxes or cupboards to be provided and maintained shall not be less than one for every one hundred and fifty workers ordinarily employed at any one time in the factory.

(2) Nothing except the prescribed contents shall be kept in a first-aid box or cupboard.

(3) Each first-aid box or cupboard shall be kept in the charge of a separate responsible person who holds a certificate in first-aid treatment recognized by State Government and who shall always be readily available during the working hours of the factory.


(1) The State Government may make rules requiring that in any specified factory wherein more than two hundred and, fifty workers are ordinarily employed, a canteen or canteens shall be provided and maintained by the occupier for the use of the workers.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for:

Ø the date by which such canteen shall be provided;

Ø the standards in respect of construction, accommodation, furniture and other equipment of the canteen;

Ø the foodstuffs to be served therein and the charges which may be made.


(1) In every factory wherein more than one hundred and fifty workers are ordinarily employed, adequate and suitable shelters or rest rooms and a suitable lunch room, with provision for drinking water, where workers can eat meals brought by them, shall be provided and maintained for the use of the workers : Provided that any canteen maintained in accordance with the provisions of section 46 shall be regarded as part of the requirements of this sub-section : Provided further that where a lunch room exists no workers shall eat any food in the work room.

(2) The shelters or rest rooms or lunch rooms to be provided under sub-section (1) shall be sufficiently lighted and ventilated and shall be maintained in a cool and clean condition.


(1) In every factory wherein more than thirty women workers are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women.

(2) Such rooms shall provide adequate accommodation, shall be adequately lighted and ventilated, shall be maintained in a clean and sanitary condition and shall be under the charge of women trained in the care of children and infants.


(1) In every factory wherein five hundred or more workers are ordinarily employed the occupier shall employ in the factory such number of Welfare officers as may be prescribed.

(2) The State Government may prescribe the duties, qualifications and Conditions of service of officers employed under sub-section (1).


The State Government may make rules requiring every employer to make provision in his plantation for such recreational facilities for the workers and children employed therein as may be prescribed.


It shall be the duty of every employer to provide and maintain necessary housing accommodation:

Ø For every worker (including his family) residing in the plantation;

Ø For every worker (including his family) residing outside the plantation, who has put in six months of continuous service in such plantation and who has expressed a desire in writing to reside in the plantation:


(1) In every plantation wherein three hundred or more workers are ordinarily employed the employer shall employ such number of welfare officers as may be prescribed.

(2)The State Government may prescribe the duties, qualifications and conditions of service of officers employed under sub-section (1).

Employees Provident Fund and Miscellaneous Provisions Act, 1952

Employees' Provident Funds Scheme:

(1) The Central Government may by notification in the Official Gazette frame a Scheme to be called the Employees' Provident Funds Scheme for the establishment of provident funds under this Act for employees or for any class of employees and specify the establishments or class of establishments to which the said Scheme shall apply and there shall be established as soon as may be after the framing of the Scheme a Fund in accordance with the provisions of this Act and the Scheme.

(2) A Scheme framed under sub-section (1) may provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the Scheme.

The Minimum Wages Act, 1948

Minimum rate of wages

Ø Any minimum rate of wages fixed or revised by the appropriate government in respect of scheduled employments under section 3 may consist of :

* a basic rate of wages and a special allowance at a rate to be adjusted at such intervals and in such manner as the appropriate government may direct to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as the "cost of living allowance"); or

* a basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of suppliers of essential commodities at concession rates were so authorised; or

Ø The cost of living allowance and the cash value of the concessions in respect of supplied of essential commodities at concession rate shall be computed by the competent authority at such intervals and in accordance with such directions as may be specified or given by the appropriate government.

Workmen's Compensation Act, 1923

Employer's Liability for Compensation:

Ø If personal injury is caused to a workman by accident arising out of and in the course of his employment, his employer shall be liable to pay compensation in accordance with the provisions.

Ø If a workman employed in any employment specified in Part A of Schedule III contracts any disease specified therein as an occupational disease peculiar to that employment, or if a workman, whilst in the service of an employer in whose service he has been employed for a continuous period of not less than six months (which period shall not include a period of service under any other employer in the same kind of employment) in any employment specified in Part B of Schedule III, contracts any disease specified therein as an occupational disease peculiar to that employment, or if a workman whilst in the service of one or more employers in any employment specified in Part C of Schedule III, for such continuous period as the Central Government may specify in respect of each such employment, contracts any disease specified therein as an occupational disease peculiar to that employment, the contracting of the disease shall be deemed to be an injury by accident within the meaning of this section and, unless the contrary is proved, the accident shall be deemed to have arisen out of, and in the course of, the employment.

Ø The Central Government or the State Government, after giving, by notification in the Official Gazette, not less than three months' notice of its intention so to do, may, by a like notification, add any description of employment to the employments specified in Schedule III, and shall specify in the case of employments so added the diseases which shall be deemed for the purposes of this section to be occupational diseases peculiar to those employments respectively, and thereupon the provisions of sub-section (2) shall apply In the case of a notification by the Central Government, within the territories to which this Act extends or, in case of a notification by the State Government, within the State as if such diseases had been declared by this Act to be occupational diseases peculiar to those employments.

Payment of Bonus Act, 1965

Ø Every person (other than an apprentice) drawing salary up to RS 3,500 per month.

Ø Every person drawing salary between RS 2,501/- and RS 3,500/- per month. The bonus payable to him is to be calculated as if his salary were RS 2,500/- p.m


Ø Subject to other provisions: Minimum bonus shall be 8.33% of salary/wages earned or RS 100 whichever is higher.

Ø If allocable surplus exceeds the amount of minimum bonus, then bonus shall be payable at higher rate subject to a maximum 20% of salary/wages.

Ø Computation of bonus is to be worked out as per Schedule I to IV of the Act.

Payment of gratuity act, 1972:

The Act provides for the payment of gratuity to workers employed in every factory, shop & establishments or educational institution employing 10 or more persons on any day of the preceding 12 months. A shop or establishment to which the Act has become applicable shall continue to be governed by the Act even if the number of persons employed falls bellows 10 at any subsequent stage.

All the employees irrespective of status or salary are entitled to the payment of gratuity on completion of 5 years of service. In case of death or disablement there is no minimum eligibility period. The amount of gratuity payable shall be at the rate of 17 days wages based on the rate of wages last drawn, for every completed year of service. i.e. 3,50,000/-.

Pay and allowances

Except as provided otherwise in these rules an employee is appointed to a post shall be allowed to draw basic pay at the minimum of the pay scale of the post to which he is appointed.

Travelling allowance:

Travelling allowances shall be admissible to an employee according to the TA, DA, rules, instructions approved by RCS Punjab and adopted by board from time to time.


The State Government provide various welfare facilities to workers. The implementation of many provision of various labour laws also rest with the state government. The state government run health and family planning centers, centres for education, vocational guidance, recreational activities and training of workers and other welfare canters. The state government also keep a vigil on the employers that they are operating welfare schemes made obligatory by the state or central govt. The state government also has been empowered to prescribe rules for welfare of workers and appoint appropriate authorities for the enforcement of welfare provisions under various Acts.


Worker union is another main agency of labour welfare in the OCM suitings. He acts as a care taker of employee's rights. The worker unions in OCM held the care of all the aspects of welfare. Worker Union always seeks better cooperation from the employer in providing welfare facilities. The Union may go against the authority if any unsound policy or rule regarding welfare is passed.


Employer is another main agency of labour welfare in the OCM. Gm of the plant consider labour welfare thing important. He is act as care taker of all the aspects of labour welfare. In addition of it a canteen committee is established for taking care of quality of the food. Various problems related to the canteen are discussed by the committee.GM organizes a meeting of worker union after every 15 days in which problems of labour are discussed. In addition to it management is paid half of the meal rate on coupon base system.


The another agency of labour welfare in OCM are

Ø Labour welfare officer

Ø Employee welfare committee

Labour welfare officer:

Labour welfare is main consideration for development of labour. That's why labour welfare officer is appointed in the OCM. Labour welfare officer play an important role in OCM. He has following duties which are helpful in providing welfare.

Duties of welfare officer: The general duties of the Welfare Officer shall be:

Ø to ensure rules and laws are properly follow

Ø to ascertain what further welfare facilities are needed, how best they can be provided and make suggestions for their establishment;

Ø to make sure that the available welfare facilities provided under the Regulation or otherwise are being properly maintained and utilized.

Ø to ensure adequate supervision of the amenities provided, especially as regards canteens, rest rooms, washing and toilet facilities and drinking water;

Ø to examine grievances voiced by the workers in respect of welfare facilities and other amenities;

Employee welfare committee: The Punjab State Co-operation constitutes an Employee Welfare Fund. For the purpose of it a committee is constituted which has following members

1 Administrative Manager (HR manager)

2 Managers (MIS)

3 Deputy Manager Accounts

4 Working Union Members

Role of employee welfare fund in welfare of employee:

Ø At the time of accident 1000-2000 Rs. are paid to employee from this fund.

Ø A party is organized at the time of retirement of employee from this fund.

Ø A ring of gold and ‘kumble” is given to employee at the time of retirement.


“Social justice is the best way to ensure sustainable peace and eradicate poverty. And I believe in people coming together organizing, joining forces, making their voices heard.”

Ratification situations of Major ILO Conventions:

The Govt of India has ratified the following core labour standards:

Ø Convention No 29 - Forced Labour.

Ø Convention No 105- Abolition of forced labour.

Ø Convention No 100- Equal remuneration- Equality & Non Discrimination.

Ø Convention No 111- Discrimination (Employment & Occupation).

Our national center HMS has performed many field activities for promotion of Core labour standards even demonstrations are held at state constituency & Parliament for demand to ratify conventions, which relate to CLS.

Government of India have not ratified following Major ILO Convention as these are already available in Constitution and Labour laws but Trade union pressurized to Govt to rectify these conventions.

Ø Convention No. 87 right to Freedom of Association

Ø Convention No.98 right to collective bargaining,

Ø Convention No.138 minimum age of child labour

Ø Convention No.182 worst from child labour

The ILO accomplishes its work through three main bodies, all of which comprise government, employer and worker representatives.

Ø International Labor Conference:

The member States of the ILO meet at the International Labour Conference in June of each year, in Geneva. Two government delegates, an employer delegate and a worker delegate represent each Member State. Technical advisors assist the delegations, which are usually headed by Cabinet Ministers who take the floor on behalf of their governments.

Ø The Governing Body:

The Governing Body is the executive council of the ILO and meets three times a year in Geneva. It takes decisions on ILO policy and establishes the programme and the budget, which it then submits to the Conference for adoption. It also elects the Director-General. The ILO Governing Body is composed of 28 government members, 14 employer members and 14 worker members.

Ø The International Labour Office:

The International Labour Office is the permanent secretariat of the International Labour Organization. It is the focal point for ILO's overall activities, which it prepares under the scrutiny of the Governing Body and under the leadership of a Director-General, who is elected for a five-year renewable term.


1) Greeks show how harsh social security cuts

12:00 AM CDT on Tuesday, May 11, 2010

Europe is showing the world that a national debt crisis can force drastic social security changes overnight. Greece is paying a high price for emergency government loans to stave off its creditors. An over-generous pension scheme is making a U-turn. Some Greek retirees are facing pension cuts of 14 percent. All retirees are facing a three-year freeze in benefits. The retirement age for women will be raised to 65 to match the retirement age of men. Both men and women will have to wait until age 60 to take early retirement, with a smaller pension. The government is cutting the number of "hazardous" jobs, such as hairstylist, that allow Greeks to retire on a full pension as young as 50. Pensions will be indexed so that a longer average lifespan means a smaller monthly check.

Sales taxes on many goods are rising to 23 percent. Excise taxes on fuel, tobacco and alcohol are spiking as well. Nearly one in five Greeks is over age 64. These measures will hit them hard. They will also ruin the retirement plans of still more Greeks. Spain, France, U.S. Spain and France, two of Europe's other generous pension payers, are also heading for trouble. They once shared a theory that early retirement would lower joblessness among the young. With more Europeans living into their 80s, that theory is creating more problems than it solves. Spain, already heavily in debt after a U.S.-style housing collapse, could be forced to act fast. There's no urgency about keeping the U.S. Social Security system affordable. Even though 52 million Americans already receive Social Security checks and retiring baby boomers will swell the rolls, the system is solvent for at least 25 years.

But American debt is growing. Creditors as varied as the Chinese government and individual savers could back away. Richard Jackson, head of the global aging initiative at the Washington-based Center for Strategic and International Studies, says time is critical to success. The two main fixes for pensions are working longer and putting aside more private savings. Both require lots of time.

"The third option is to forge much better relations with your kids," Jackson said. "But part of the whole purpose of government pensions was to divorce old-age security completely from dependence on your own children."

Some economists are urging the government to strengthen Social Security now to show global markets that the United States is serious about cutting its debt.

Making things worse

Cutting pensions and delaying retirement fall hardest on those with the most physically demanding and least-paying jobs. They already have more health problems and live shorter lives. "If we reduce Social Security benefits, we exacerbate a growing problem: What are we going do about retirement in this country?" said Lawrence Mishel, president of the Economic Policy Institute, a Washington think tank focused on economic problems among lower- and middle-income Americans.

Raising taxes is another way to fix the system. Jackson points out that middle- and upper-income Americans already get less in Social Security benefits than they pay in. But what's hard now becomes harder and more painful with delay. Economist Jacob Kirkegaard of the Peterson Institute for International Economics says Europe's debt crisis is the only the beginning of a "long, hard slog" for many nations that countered the financial crisis with borrowed money. "Financial markets and investors are saying, 'We don't trust governments to continue to run these kinds of deficits any longer; therefore, we need more fiscal austerity now,' " he said

2) Ways to increase your Social Security benefits

by Bruce Tyson

If you are going to receive social security, you could get more money: almost twice as much, in fact. It seems strange to be considering getting more money at a time when everyone knows that there is no money, but such is the case. By postponing your retirement until you reach 70 (rather than retiring at 62), you can get up to twice the monthly income while giving yourself more time to earn money without incurring penalties. This differential is great enough to make consideration of your options worthwhile. First, let's see why retirees are anxious to get their retirement checks.

Decades ago, after the government had frivolously spent all the money that was supposed to be held for retirees, the program became a massive ponzi scheme that puts Bernie Madoff to shame (if Madoff is in jail, where the politicians should be?). You see, they promised you the money, but the money isn't there. To solve this, they started taking social security money from workers and using it to fund retiree's, leaving workers with no retirement money. When those workers go to retire, their benefits will have to be drawn from the paychecks of the next generation of workers (and so on). This scheme has gone on for a long time, but with so few payers, it may not be sustainable.

Back in the 1950's, sixteen workers were paying into what they thought was their Social Security account (but in reality those 16 were supporting one retiree). That was bad enough, but now there are only 3.3 workers to support you if you are retiring (That explains why Social Security and Medicare taxes are so outrageously high, doesn't it?). Soon there will only be two workers supporting each retiree. Besides paying out the wazoo for current retirees, those workers have to put money in their own private retirement plan because they know that they won't get anything when they reach retirement age. The growing rage of workers bearing the load of retirees and the precarious position of the United States Government make a lot of people wonder if they will get anything at all from Social Security: that's why many opt to start receiving checks as soon as they can.

If, however, you are able to take the risk that Social Security will still be around when you hit 70 years old, you will be able to cash in a lot more than if you retired early. An expert working for T. Rowe Price has calculated that under the present rules, retirees will collect double the money per month from Social Security by starting at 70 than they would at 62. This would result in more than $219,000 of additional payments you would receive through age 85. Another thing that is good about postponing your retirement until 70 is that you get to earn as much money as you like without being penalized by the Social Security program. Right now, the penalty starts once you earn just over $14,000 and you lose it all if you earn over $43,000. This means that if you are in good health, you can earn a lot more money between age 62 and 70, leaving you in a much better position for retirement.

Is retiring at age 70 best for everyone? No. Those who have health issues and are unable to work may have no other option. Also, those unwilling to bet on the viability of the federal government for another 8 years might want to start collecting now… while they can.


Ø Rules and regulations are strictly followed. Everybody is invited to put forward their ideas for the improvement of the plant good at many things which make it one of best of all such factories in India.

Ø There is a Co-operative work culture.

Ø Workers are motivated in good way.

But still I felt some of the things and areas where there is actually required some sort of improvement. For this some of the suggestions are:

Ø Foremost important suggestion is that should provide trainees with proper training and should give the knowledge regarding actual working in the HR department as it is the core department of any organization.

Ø A little more cleanliness is required in the area canteen.

Ø There are some of the parts in the plant where electricity is wasted. This thing should be taken care of. Motion sensors are suggested by me in such areas which will solve the problem of energy scarcity.

Ø Special program must be started for creating awareness among the employee related to labour laws

Ø There is a need of promoting recreational activities.



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