Chapter-1: Industrial Relations and Labour Welfare

Industrial Relations and Labour Welfare
CHAPTER-1
INTRODUCTION
1
INTRODUCTION
INDUSTRIAL RELATIONS AND LABOUR WELFARE
The term “Industrial Relations” commonly denotes employee – employee relations, in both
organized and unorganized sectors of the economy.
Industrial Relations (also known as labour management relations or labour relations) will be
treated here as the study of employee – employer relationship and the outcome of such
relationship. In order to maintain good relationship with the employees, the main functions of
every organization should avoid any dispute with them or settle it as early as possible so as to
ensure industrial peace and higher productivity.
Personnel management is mainly concerned with the human relation in industry because the
main theme of personnel management is to get the work done by the human power and it fails
in its objectives if good industrial relation is maintained. In other words good Industrial
Relation means industrial peace which is necessary for better and higher productions.
According to Kapoor “Industrial Relations is a developing and dynamic concept and such no
more limits itself merely to the complex relations between the unions and management but
also refers to the general web of relationships normally obtaining between employees – a web
much more complex than the single concept of labour capital conflict.
According to Bethel, Smith & Group “Industrial Relation is that part of management which is
concerned with the manpower of the enterprise – whether machine operator, skilled worker or
manager
The term Industrial Relations‖ is different from Human Relations. Industrial relations refer to
the relations between the employees and the employer in an industry. Human relations refer
to a personnel-management policy to be adopted in industrial organizations to develop a
sense of belongingness in the workers improves their efficiency and treat them as human
beings and make a partner in industry.
Industrial relations cover the matters regulated by law or by collective agreement between
employees and employers. On the other hand, problems of human relations are personal in
character and are related to the behavior of worker where morale and social elements
predominated. Human relations approach is personnel philosophy which can be applied by
the management of an undertaking. The problem of industrial relations is usually dealt with a
three levels – the level of undertaking, the industry and at the national level. To sum up the
term Industrial Relations is more wide and comprehensive and the term Human Relations is a
part of it.
Labour welfare occupies a place of significance in the industrial development and economy.
It is an important fact of industrial relations, the extra dimension, giving satisfaction to the
worker in a way which even a good wage cannot. With the growth of industrialization and
mechanization, it has acquired added importance. A happy and contented work force is an
asset for the industrial prosperity of any nation.
Labour welfare is nothing but the maintenance function of personnel in the sense that it is
directed specifically to the preservation of employee health and attitudes. In other words, it
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contributes to the maintenance of employee morale. The welfare services in an industry are to
improve the living and working conditions of workers and their families because the workers
well-being cannot be achieved in isolation of his family.
N.M. Joshi felt that labour welfare “covers all the efforts which employers make for the
benefit or their employees over and above the minimum standard of working conditions fixed
by Factories Act and over and above the provision of social legislation providing against
accident, old age, unemployment and sickness”.
The Committee on Labour Welfare (1969) defined labour welfare to “include such services,
facilities and amenities as adequate canteens, rest and recreational facilities, sanitary and
medical facilities, arrangements for travel to and from work and for the accommodation of
workers employed at a distance from their homes and such other services, amenities, and
facilities including social security measures as contribute to improve the conditions under
which workers are employed”.
Labour welfare is a dynamic concept which acquires new dimensions with the changes in the
environment of industry
The Study Team, appointed by the Government of India in 1959 to examine labour welfare
activities then existing, divided the entire range of these activities into three groups -
 Welfare within the precincts of an establishment: medical aid, crèches, canteens,
supply of drinking water, etc.
 Welfare outside the establishment: provision for indoor and outdoor recreation,
housing, adult education, visual instructions, etc. and
 Social security.
3
CHAPTER – 2
OBJECTIVES OF THE SURVEY
4
OBJECTIVES
 To find out the work culture of IDCOL.
 To find out the different Trade unions and their activities in

IDCOL.
 To assess the different Industrial Relations Laws adopted by

IDCOL for employees welfare.
 To find out the different safety measures undertaken by IDCOL

for the welfare of the employees.
5
CHAPTER – 3
LITERATURE REVIEW
6
LITERATURE REVIEW
INDUSTRIAL RELATIONS – A WAY TO IMPROVE PRODUCTIVITY

*Salve Deepak Mahadev, Maharaj College of Commerce & Economics Mumbai.
In modern days, industrial work has become quite complex and distinctly different from
what it was in earlier times. With the advent of modern industrialization and automation the
industrial organizations have undergone a major scale in terms of activities. These work
settings are characterized by large factory buildings employing thousands of persons working
on and with huge machines and modern technology. The composition of industrial setting is
quite varied and heterogeneous, presenting a wide spectrum of relations ranging from indirect
group relations in the large unity to the informal direct and personal relationship in the
smaller and household unity. As the industrial units grow large, the owners entrust the task of
their day to day running to a cadre of management. No organization can operate entirely
without human effort and the industrial relation department is responsible for fully utilizing a
corporations human resources. This aspect of control and managing relationship between
employees and management is referred to as “Industrial Relation”. As a matter of fact
industrial relations form an indispensable part of personnel management and an area of great
concern for the management of today particularly after globalization and privatization. Indian
Institution of Personnel Management defines it as “Industrial Relations include securing
effective and willing co-operation from employees and reducing conflict between employers
and workers and their representatives, the trade unions”.
International Journal of Sciences: Basic and Applied Research (IJSBAR)

From Industrial Relations to Employment Relations with Focus on
Employee Relations
* Prof. Dr. Krume Nikoloski , et al
Faculty of Economics, University “Goce Delcev”, Krste Misirkov 10-A, Stip 2000, Macedonia
Identifying the features of the two concepts “industrial relations” and “employment
relationship” cannot be achieved until after a prior presentation of their meanings and of the
context in which the term “employment relationship” has made its presence felt in the
literature. We aim to achieve this distinction because in some works of contemporary authors,
the concept of “industrial relations” finds further use. The main purpose of this paper is to
achieve a separation of the two concepts and to identify the areas of their intermission.
Most of us think we know what industrial relations are. The study of employment and labor
market is what makes the subject matter of this vast area of research. It is a field that analyzes
the factors that affect the workplace. However, it is the workplace that directly affects our
style of living and even our culture in a lot of ways. There is another related concept called
employee relations that confuses many because of its similarities with industrial relations. It
is a fact that looking at a workplace from the perspective of workers unions is no longer
relevant in these times. Industrial relations became a social science; workplace relations,
primarily those between industry and industrial workers, were analyzed using academic
disciplines such as sociology and economics. Some authors of the industrial period defined
“industrial relations” as “the study of rules governing employment and the way in which the
rules are changed, interpreted and administered”. Others, argued that “industrial relations deal
with certain regulated or institutionalized relationships in an industrial unit” and in Hyman’s
opinion they are “the study of control processes on employment relationship”. Employers
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now use the term "employee relations," which refers to relationships that exist in both
unionized and nonunionized workplaces. ‘Employee relations’ is a concept that is being
preferred over the older industrial relations because of the realization that there is much more
at the workplace than industrial relations could look or cover. In general, employee relations
can be considered to be a study of relations between employees as well as employer and
employees so as to find ways of resolving conflicts and to help in improving productivity of
the organization by increasing motivation and morale of the workers. The field is concerned
with providing information to employees regarding the goals of the organization so that they
have a better understanding of the aims and policies of the management. Employees are also
informed about their poor performances and ways and means to correct performance.
Employee relations also take care of grievances and the problems of the employees and let
them know all about their rights and what to do in case of discrimination.
Industrial relations and the employment relationship

*Keith Sisson
WARWICK PAPERS IN INDUSTRIAL RELATIONS
NUMBER 88
April 2008
Industrial Relations Research Unit
University of Warwick
The purpose is to reflect on the current theory and practice of industrial relations but here he
engages specifically with the concept of the ‘psychological contract’. For many contemporary
observers of the employment relationship, the idea of reciprocal, often implicit and informal
ties between employers and workers comprises a radically new conception of what happens
in the workplace and one derived from beyond the confines of industrial relations. Sisson
provides a critique of the concept and sets out a multi-faceted approach to the employment
relationship exploring issues of co-operation and conflict. Arguably, such an exercise is
critical in a context in which organisations, and the conventional understandings that have
bound them, are subject to often quite radical fragmentation, with particular consequences for
the employment relationship.
The employment relationship has always been there or thereabouts in British industrial
relations, but during the so-called ‘golden ages’ (Winchester, 1991) was more or less taken
for granted, the main emphasis being on the role of trade unions and collective bargaining in
its regulation. In the case of the USA, Kaufman (2007) argues that ‘The modern field of
industrial relations is in trouble, partly because it has become too narrowly defined around
the study and promotion of trade unions and collective bargaining. A rejuvenated industrial
relations needs to return to the broader subject domain that characterized it in earlier decades:
the study of the employment relationship. This does not mean rejecting trade unions; it does
mean framing the field more broadly so it covers all the major actors and institutions in the
employment relationship.
8
Melbourne and Industrial Relation Practices and Outcomes in Australian

Workplace
Joanna Loundes* Melbourne Institute of Applied Economics and Social
Research, The University of Melbourne, Melbourne Institute Working
Paper no. 12/00, July 2000
Poor industrial relations performance can be costly for firms. In particular, employees quits,
employees absence, industrial action and sustained relations between management and
employees can all be determined to the firm. Using the Australian Workplace and Industrial
Survey (AWIRS), this paper examines how particular human resources management
techniques and industrial relations settings can influence the industrial relations outcomes of
Australian workplaces. The results from such a study have potentially important implications,
as they indicate whether there is a ‘bundle’ of human resources management techniques, or
particular industrial relations settings, that can contribute to the generation of positive
performance outcomes. This paper follows a technique similar to that of Fernie et al (1994) in
their analysis of human resource management practices and workplace performance in the
UK, which used a comparable dataset to the AWIRS, the British WIRS3. In the present
analysis, four industrials relations measures of workplace performance are used as outcome
variable: voluntary labor turnover (quits), absenteeism, industrial action and
management/employee relations. These dependent variables are chosen for several reasons.
Industrial relations performance is important if it is believed that stability is a key factor in
attracting investors and maintaining financial performance. This set of variables is also easier
to measure than other variables available such as customer satisfaction and product quality.
Related to this is the observation that these measures are not obviously reliant on the type of
product being produced or sold, or the type of customer they deal with.
Does Industrial Relations Policy Affect Productivity?

David Peetz*
This article considers the link between productivity, fairness, and industrial relations (IR)
policy at workplace, national, and international levels using data from micro- and macro-level
empirical studies as well as data from the Australian Bureau of Statistics (ABS), the OECD,
and other sources. There is some evidence that policies that enhance fairness enhance
economic performance. But the effects are conditional; they are neither consistent nor
universal. Government policies to encourage or discourage unions, to restrict the extent or
scope of collective bargaining or related action, or to encourage or discourage non-unionism
or individual contracting, will not do a great deal in net terms to improve economic
performance. However, in any specific workplace, industrial relations and the decisions
management makes can have a notable effect on productivity. While welfare and industrial
relations systems do not make a large inherent difference to economic efficiency, they make a
very large difference to social outcomes.
9
A STUDY ON LABOUR WELFARE MEASURES AND SOCIAL

SECURITY IN IT
INDUSTRIES WITH REFERENCE TO CHENNAI
B.Rajkuar
Assistant Professor of Economics
A.P.S.A. College, Tiruppattur
Sivagangai District, Tamil Nadu
International Journal of Enterprise Computing and Business Systems
Volume 4 Issue 1 January - July 2014
Labor welfare is an important fact of Industrial relations. These give satisfaction to the
worker and ensure that proper remuneration is achieved. With the growth of Industrialization,
Mechanization and Computerization, labor welfare measures has got fillip. The workers in
the Industries cannot cope up with pace of modern life with minimum sustenance amenities.
The workers are in need of added stimulus to keep body and mind together. Labour welfare,
though it has been provided to contribute to efficiency in production, is expensive. Each
employer provides welfare measures of varying degrees of importance for Labour force. The
social and economic aspects of life of the workers have direct influence on the social and
economic development of nation. There is an imperative need to take extra care of the
workers to provide both statutory and non-statutory facilities to them. The welfare facilities
help to motivate and retain employees. Most of the welfare facilities are matters of sanitation
and hygienic which is not provided dissatisfaction among workers are motivated by providing
welfare measures. This ensures employee satisfaction result in increased efficiency.
Employee welfare measures may help to minimize social evils like alcoholism, gambling,
drug addiction etc. The welfare measures are designed and systematized by the organization
through statutory bodies like trade unions. The labour departments of the government insist
upon minimum amenities to be implemented in any organization. This will ensure that
minimum standards that are required for an employee to carry out the duties and perform
functions to the extent of satisfaction.
A STUDY OF LABOUR WELFARE MEASURES IN

THE CORPORATE SECTOR
Meenakshi Yadav and Anil kumar
Asian-African Journal of Economics and Econometrics, Vol. 13, No. 2, 2013
The paper examines the perceptions of workers towards labour welfare measures in the
changing economic environment. A sample of 180 workers has been taken from the state of
Haryana.
Factor analytical model has been used to analyse the data. The analysis reveals that the factor
analysis has clubbed various issues relating to labour welfare into nine factors. These are:
loans and compensation facilities, education, housing, subsidized food, better working
environment, stability of work force and provision of cooperative societies. The organizations
should provide these facilities to workers. It has been observed that the workers do not need
only monetary benefits but non-monetary also. It has been due to increase in awareness
among workers. In order to maintain better industrial relations and stability in the
organizations, these types of welfare facilities can go a long way in improving efficiency in
the organizations. Keeping in view the perceptions of workers towards labour welfare
measures the corporate sector should focus on these measures in an effective manner.
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A Study on Labour Welfare Measures in Tamil Nadu State Transport

Corporation, Villupuram Division
M. Senthil Kumar, et al
International Journal of Humanities and Social Science
Volume 2 Issue 12 December. 2013
This paper analyses the Labour Welfare facilities provided in the State Transport
corporation, Villlupuram Division of Tamil Nadu. With the help of the sample respondents
from the SETC, the Labour welfare measures provided to the employees have been analyzed
and necessary solution has also been provided.
Binoy Joseph, Joseph Injodey and Raju Varghese (2009) 1studied in the article points out
that the structure of a welfare state rests on its social security fabric. Government, employers
and trade unions have done a lot to promote the betterment of workers' conditions.
Rick Csiernik’s article explores labour welfare in Canada across three distinct periods of
occupational assistance: welfare capitalism that began with the Industrial Revolution and
persisted through the depression of the 1930s; occupational alcoholism programming that
emerged during World War II and the typically unreported domestic labour strife of the
1940s, lasting through the postwar economic boom into the 1960s; and the employee
assistance programming era with the introduction of the broad-brush approach to workplace-
based assistance that also witnessed organized labour in Canada provide fundamental
supports to workers that were originally introduced by workplace owners during the welfare
capitalism period, though now to benefit workers rather than to control them.
LABOUR WELFARE MEASURES IN CEMENT INDUSTRIES IN

INDIA
(A CASE OF KCP LIMITED, CEMENT DIVISION, MACHERLA, ANDHRA PRADESH)
M.RAMA SATYANARAYANA*
Dr.R.JAYAPRAKASH REDDY**
International Journal of Physical and Social Sciences July 2012
Volume 2, Issue 7
The present study is undertaken to know the satisfaction levels of employees about labour
welfare measures in KCP limited (Cement Division). For the purpose of the study,
convenience random sampling method is adopted to carry out the study by the researcher.
Out of 925 employees, 90 are selected covering almost all the departments. A questionnaire is
used for present study to know the opinions of the employees on each statement. The results
of the research reveal that majority of the employees are satisfied with all the welfare
measures provided by the organization.
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Labour Welfare Measures in Indian Chemical Industry

R. Rajendran1 Assistant Professor – Cum – Liaison Officer, DDE, Annamalai University
Dr. K. Rajesh Kumar Associate Professor, Department of Business Administration, DDE,
Annamalai University
This paper is an effort to present the various factors governing the safety and Health
measures in chemical industry which applies in the general aspect of Indian context.
Particularly the employees have got several stringent in the safety and health, affect through
the enormous dust and chemicalised air breathing in the factory zone and in the work spot.
The researcher had reviewed many of the articles and representing the importance of labour
welfare and what extent it had been protecting and providing the welfare to employees
working in chemical industries in the present scenario.
Conclusion of the Literature review
A constant review or follow up of results of the industrial relations programmed is essential

to evaluate the existing practices and to identify the problem of the system. Regular follow up
of different industrial relations policies, especially need to be placed on collecting
information regarding labor turnover, labor absenteeism, job satisfaction, suggestions of
employees, industrial accident rate, disputes, grievances etc. A continuous research is
essential for carrying on its various aspects. This can be done by conducting of Exit
interview, studying demands of the union, consultation with different organizational
participants, consultants in the field of labor management and also through empirical
exploratory investigation and research studies.
Industrial relations, employment relations adopt a wider range including other sectors such as
services sector, focusing more on individual relationships between employer and employee
than collective ones, without conflicts and on a participatory management approach, based on
trust, loyalty and understanding the needs of employees. Employee relations management
places a particular emphasis on communication between managers and employees and also
among employees between them.
Welfare measures are recreational, medical, educational, housing sanitation and so on. Every
corporation provides the statutory welfare measures but some corporation provides some
more welfare facilities to the employees so that they may retain the employees and their
quality of work life. By the result of improved quality of work life among the employees their
involvement in job gets increased and result increased of the transport corporation. The
corporations maintaining smooth relationship between workers and management, which leads
to attainment of corporation efforts. Labour welfare facilities provided by employers are
based on diverse approaches and connected to various theories
In order to maintain better industrial relations and stability in the organizations, the welfare
facilities can go a long way in improving efficiency in the organizations. The corporate sector
should formulate suitable policies for the provision of welfare measures for the workers.
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CHAPTER – 4
COMPANY OVERVIEW
13
COMPANY OVERVIEW
The economy of Orissa has undergone perceptible change since independence. From a
predominantly agricultural and backward state, it is emerging as a progressively growing
industrial one. Before independence, Orissa had a very low level of industrialization. It had
only one sugar Factory, one soap factory, a glass factory and a few other mills. After
independence, (1947) the construction of Hirakud dam and Machkund Hydro-electric
projects gave boost to the process of industrialization in the State. The trend of government
initiative and participation in the development of industrialization in Orissa become very
much encouraging. The appearance and development of the public sector undertakings at the
national level further boosted up the tempo of industrialization in Orissa. The Government of
Orissa, therefore, has not been content only in the field of agriculture and mining but also set
up several industries in the public sector for rapid industrialization of the state.
A major contribution to the field of industrial growth in the state was the emergence of
Industrial Development Corporation of Orissa Limited (IDCOL) as a State enterprise with the
objective of promoting industries in the state. The Industrial Development Corporation of
Orissa Limited popularly known as IDCOL was incorporated on 29 March 1962 with an
authorized share capital of Rs. 50.00 Crores. It was sponsored by the Government of Orissa
and registered as a public limited company to promote, establish and execute industries,
projects or enterprises which would enhance the industrial development of the state and
simultaneously assisting and financing industrial undertakings, projects and enterprises to
accelerate industrial growth.
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Location:-
The Head Office of the corporation is situated at Bhubaneswar, the capital of Orissa. IDCOL
is managed by a Board of Directors consisting of one whole time Chairman, A whole-time
Managing Director, both of whom are senior officers of the Indian Administrative Service
and 13 Directors. The Corporation (IDCOL) started its activities by taking over the
maintenance workshop of Hirakud Dam Project in 1962-63 and then converted it into an
industrial workshop with the facilities of fabricating and galvanizing High tension line tower.
The corporation also took over Kalinga Industries Ltd. at Barbil in 1963. Starting its activities
from these two units, IDCOL emerges as the owner of a large number of Industrial Units.
In the process it had set up as many as 15 industrial undertakings in different parts of the
state. Subsequently, as a part of the Public Sector Reforms Policy of Government, it has
divested many industrial undertakings. Presently, it is continuing as holding company with
the following subsidiary companies only:
1. IDCOL KALINGA IRON WORKS LTD. (IKIWL) located at Barbil engaged in

manufacturing of Foundry Grade Pig Iron and Cast Iron Spun Pipe (100% Subsidiary
company).
2. IDCOL FERRO CHROME & ALLOYS LTD. (IFCAL) located at Jajpur Road
engaged in production of High Carbon Ferro Chrome (HCFC) (100% Subsidiary
Company).
3. IDCOL SOFTWARE LTD. (ISL) located at Bhubaneswar, which acts as one of the
Nodal IT Agent of the Government.
Vision:-
 To achieve and sustain excellence in quality of products, process and systems by

providing value for money and satisfaction to all customers.
 To become a leading state owned manufacturing company having expertise in mineral
based industries and related products like pig iron, high Carbon Ferro Chrome, C.I. &
D.I. Pipe and other diversified products.
 To be amongst the most admired organization with a significant global presence.
Mission:-
 To enhance brand values of the products of IDCOL group.

 To make the products competitive and enhance their market share.
 To promote industrial growth by optimizing production and by modernizing /
diversifying the existing manufacturing mines of IDCOL.
 To promote new industries for optimum utilization of state’s natural resources and
produce value added items.
 To strive for fairness, transparency, integrity and excellence in all activities.
 To adopt and practice a progressive Human Resource Development Policy.
 To foster creativity and teamwork.
 To be an important source of research and development.
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Objectives:-
 To establish / promote industries including modernization / expansion of existing

factories.
 To generate both direct and indirect employment.
 To ensure transparent, clean, efficient and accountable administration for operation of
the factories and mines and to act as an engine of growth.
 Commitment of the corporation and its employees to “DO IT RIGHT THE FIRST
TIME, EVERY TIME”.
 Strict adherence to approved specifications during receipt, manufacture, test and
delivery with stress on prevention of defects.
 Periodic system review and important based on feedback from customers.
 Development of human resources by imparting knowledge and skill on total quality.
Strength of IDCOL:-
 Teamwork and co-operation is an important aspect of the work ethics at IDCOL. We

leverage on the dynamics of our collective skills, knowledge and experience to
achieve the best of the company.
 IDCOL fosters transparent and open form of communication and empowers its
employees to share their opinion.
 It is our goal to provide a friendly working environment to our employees where
internal communication and a free flow of ideas and exchanges are encouraged.
 Our employees uphold IDCOL’s norms values as well as abiding by the highest
standards of professional excellence and integrity.
 IDCOL respects all employees as unique individuals with fundamental human rights
and extends courtesy and shows respect to the society at large.
 Our way of general interaction with our employees is simple and easily
understandable. We carry out our activities in a plain and straight forward way.
Thus, every job becomes meaningful to IDCOL employees, as employees can feel
they are being valued by the organization.
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WORK CULTURE OF IDCOL
Organization of IDCOL:-
A sound organization structure is a prerequisite for efficient management. It provides the
frame work for carrying the activities of the organization and fulfillment of its objectives,
"organizations are grand strategies created for bringing order out of chaos, providing
happiness, contributing progress and prosperity to the mankind in general. A properly
designed and balanced organization facilitates both management and operation of the
enterprise”.
According to Koontz and O’Donnell "the organization is the mediating organization between
the society and the resultant attainment of goals, the enhanced standard of living and the
longer expansion of life obviously, in modern civilization the organization has become the
most effective means to assimilate an individual's efforts and to channel them towards the
production of goods and services for the society. It also establishes rational relationship
among people, work and resources in order to achieve productive results.
Organization therefore, refers to more than the frame of the edifice. It refers to the completed
body, with all its correlated functions. It refers to those functions, as they appear in action, the
very pulse and heart-beats, the circulation the respiration, the vital movement, so to speak, of
the organized unit." Thus, sound organization structure facilitates growth and diversification,
provides for optimum use of technological improvements, encourages human resources
development and stimulates creativity.
Performance of IDCOL:-
The third plan period heralded a new era for the growth of State level public undertaking. The
Government set up the "Industrial Development Corporation of Orissa Limited" (IDCOL) in
1962 with the objective of starting and promoting industrial units and providing financial and
technical assistance to other industries in the state. This was the first of its kind in the public
sector in Orissa, to help rapid industrialization. It is needless to say that the establishment of
IDCOL at that time lighted the inaugural candle in the process of industrialization in Orissa.
The history of Orissa's industrialization, therefore, is largely the history of IDCOL.
The IDC of Orissa limited popularly known as IDCOL is a symbol of Orissa's determination
to accelerate industrial growth. Its magnificent success as entrepreneur and promoter has led
to the emergence of a large number of industrial units in the State.
Since the overall efficiency of the corporation is an important aspect of good industrial
relations, it is now proposed to briefly review its overall performance.
The measurement of performance of IDCOL is a complicated problem as in case of any other
public enterprises. It is very difficult to assess the performance on the basis of single criteria.
Keeping these conditions in view a sincere attempt is being made to briefly review the
performance of IDCOL in terms of trends in production, investment, employment, sales, cost
of sales, profitability and contribution to exchanger etc.
Industrial Relations:-
During the current year, the industrial relations are harmonious. Industrial harmony is being
maintained during the year and no major labor unrest/strike took place causing loss of
production in IDCOL group of companies.
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Corporate Social Responsibility (CSR):-
The corporation regularly contributes for the peripheral developmental activities in

Bhubaneswar. Barbil and J.K Road area for promotion of education, health and other
community development work. During 2015-16, IDCOL has undertaken construction of
toilets, cycle stand and Bore well in school in Bhubaneswar confirming to the provisions of
the Companies Act, 2013.
Area of Operation:-
 IDCOL KALINGA IRON WORKS LTD. (IKIWL) - It is a wholly Owned

Subsidiary Company of Industrial Development Corporation of Orissa Limited
(IDCOL).In April 1963, Kalinga Industries, a private sector unit, situated in the
backward district of Keonjhar, producing pig iron with technical collaboration of M/s.
Fried Krupp of West Germany, was taken over by IDCOL. It was since been renamed
as Kalinga Iron Works. At the time of taken over the unit was having a low shaft
furnace of 30,000 metric tons capacity of pig iron per annum and was acquired for a
net consideration of Rs.71.34 lakhs. It has since been modernized and expanded by
adding two more furnaces and a captive power plant of 16 MW capacities at an
investment of around 10 crores of rupees. The installed capacity of the unit at present
is 1, 80,000 metric tons of pig iron per annum. The Spun Pipe was also taken over by
the IDCOL from a private company along with Kalinga Iron Works in April 1963.
The establishment of the plant at Barbil was initiated in February 1960 with the main
consideration that molten metal required for the production of Spun pipes could be
directly fed from the blast furnaces of the Kalinga Iron works and thereby the pig iron
melting operation in the manufacture of spun pipes could be avoided with advantage.
 IDCOL FERRO CHROME AND ALLOYS LTD. (IFCAL) - It is a wholly

subsidiary Unit of the Industrial Development Corporation of Orissa Ltd. (IDCOL). It
is having a Ferrochrome plant at Jajpur road. IFCAL was incorporated in 1999 as a
public limited company under Companies Act, 1956, with the objectives to take over
the assets and liabilities of IDCOL’s Ferrochrome Unit and to undertake the
manufacturing of ferrochrome and mining of chrome ore. Ferrochrome plant is one of
the sophisticated plants of IDCOL. The construction of plant started in March 1967
and production started in November 1969. The plant has a licensed capacity of 10,000
metric tons of Low carbon Ferro chrome and 12,000 metric tons of high carbon
ferrochrome. Ferrochrome is an alloy of iron and chromium and used in the
manufacturing process of special steels, stainless steels, usually called glamour metal.
Chromium is added as ferrochrome n the various types of steels to increase hardening,
wear resistance to corrosion and stability at high operating temperature. The major
facilities of IFCAL are broadly categorized into Chrome ore mine, Raw material
handling and storage facilities, Briquetting plant, Furnaces and Power & utilities.
 IDCOL SOFTWARE LIMITED - It is a public undertaking incorporated on 26th

November 1988. It is classified as State Government Company and is registered at
Registrar of Companies, Cuttack. Its authorized share capital is Rs. 12,000,000 and its
paid up capital is Rs. 10,007,000. It is involved in Software publishing, Consultancy
and Supply. Software publishing includes production, supply and documentation of
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ready-made (non-customized) software, operating systems software, and business &

other applications software, computer games software for all platforms. Consultancy
includes providing the best solution in the form of custom software after analyzing the
user’s needs and problems. Custom software also includes made-to-order software
based on orders from specific users.
Employment Details:-
The corporation provides employment to about 3255 employees. These includes direct
employment to about 1086 persons and indirect employment to about 2169 persons in its
wholly owned subsidiary companies.
CATEGORY IFCAL IKWIL TOTAL
REGULAR 293 793 1086
INDIRECT (casual, supply, contract 1197 972 2169

departmental etc )
TOTAL 1490 1765 3255
19
INDUSTRIAL RELATIONS
Features of Industrial Relations:-
 Industrial Relation does not emerge in vacuum they are born of employment
relationship in an industrial setting. Without the existence of the two parties, i.e.,
labour and management, this relationship cannot exist.
 It provides the environment for industrial relations.
 Industrial Relation are characterized by both conflict and co-operations.
 The focus of Industrial Relations in on the study of the attitudes, relationships,
practices and procedure developed by the contending parties to resolve or at least
minimize conflicts.
Objectives of Industrial Relations:-

 To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry which
participate in the process of production.
 To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a country.
 To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
 To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that individuals
personality may grow its full stature for the benefit of the industry and of the country
as well.
 To eliminate or minimize the number of strikes, lockouts and gheraos by providing
reasonable wages, improved living and working conditions, said fringe benefits.
 To improve the economic conditions of workers in the existing state of industrial
managements and political government.
 Socialization of industries by making the state itself a major employer.
 Vesting of a proprietary interest of the workers in the industries in which they are
employed.
The main aspects of Industrial Relations are:-

Labor Relations, relations between union and management
Employer-employees relations, relations between management and employees
Group relations, relations between various groups of workmen
Community or Public relations, relations between industry and society.
Promotions and development of healthy labor-managements relations.
Maintenance of industrial peace and avoidance of industrial strife
Development of true industrial Democracy
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Industrial peace could be maintained by:-

 Settlement of industrial disputes through mutual understanding and agreements.
 By evolving various statutory measures.
 By formation of various machineries such as works committee, boards of conciliation
labour courts etc.
 Workers participation in management.
 Recognizing human rights.
Effects of poor Industrial Relations:-
Poor Industrial Relation produces highly disquieting effects on the economic life of the
country. Following are an attempt to enumerate the ill-effects of poor Industrial Relations:
1. Multiplier effects: Modern industry and for that matter modern economy are
interdependent. Hence although the direct loss caused due to industrial conflict in any one
plant may not be very great, the total loss caused due to its multipliers effect on the total
economy is always very great.
2. Fall in normal tempo: poor Industrial Relations adversely affect the normal tempo of
work so that work far below the optimum level. Costs build up. Absenteeism and labour
turnover increase. Plants discipline breaks down and both the quality and quality of
production suffer.
3. Resistance of change: Dynamic industrial situation calls for change more or less
continuously. Methods have to be improved. Economics have to be introduced. New products
have to be designed, produced and put in the market. Each of these tasks involves a whole
chain of changes and this is resisted bitterly if these are industrial conflict.
4. Frustration and social cost: every man comes to the work place not only to earn a living.
He wants to satisfy his social and egoistic needs also. When he finds difficulty in satisfying
these needs he feels frustrated. Poor Industrial Relations take a heavy toll in terms of human
frustration. They reduce cordiality and aggravate social tension.
Importance of Industrial Relations:-

An economy organized for planned production and distribution, aiming at the realization of
social justice and welfare of the massage can function effectively only in an atmosphere of
industrial peace. If the twin objectives of rapid national development and increased social
justice are to be achieved, there must be harmonious relationship between management and
labour. The healthy industrial relations are key to the progress. Their significance are
discussed as under;
1. Uninterrupted production – The most important benefit of industrial relations is that
this ensures continuity of production. This means continuous employment for all from
manager to workers. The resources are fully utilized, resulting in the maximum
possible production. There is uninterrupted flow of income for all. Smooth running of
an industry is of vital importance for several other industries; to other industries if the
products are intermediaries or inputs; to exporters if these are export goods; to
consumers and workers, if these are goods of mass consumption.
2. Reduction in Industrial Disputes – Good industrial relation reduces the industrial
disputes. Disputes are reflections of the failure of basic human urges or motivations to
secure adequate satisfaction or expression which are fully cured by good industrial
21
relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the
reflections of industrial unrest which do not spring up in an atmosphere of industrial
peace. It helps promoting co-operation and increasing production.
3. High morale – Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of employer
and employees is one and the same, i.e. to increase production. Every worker feels
that he is a co-owner of the gains of industry. The employer in his turn must realize
that the gains of industry are not for him along but they should be shared equally and
generously with his workers. In other words, complete unity of thought and action is
the main achievement of industrial peace. It increases the place of workers in the
society and their ego is satisfied. It naturally affects production because mighty co-
operative efforts alone can produce great results.
4. Mental Revolution – The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business of leadership in the ranks of
workers, employees and Government to work out a new relationship in consonance
with a spirit of true democracy. Both should think themselves as partners of the
industry and the role of workers in such a partnership should be recognized. On the
other hand, workers must recognize employer’s authority. It will naturally have
impact on production because they recognize the interest of each other.
5. New Programmes – New programmes for workers development are introduced in an
atmosphere of peace such as training facilities, labour welfare facilities etc. It
increases the efficiency of workers resulting in higher and better production at lower
costs.
6. Reduced Wastage – Good industrial relations are maintained on the basis of
cooperation and recognition of each other. It will help increase production. Wastages
of man, material and machines are reduced to the minimum and thus national interest
is protected. Thus, from the above discussion, it is evident that good industrial relation
is the basis of higher production with minimum cost and higher profits. It also results
in increased efficiency of workers. New and new projects may be introduced for the
welfare of the workers and to promote the morale of the people at work.
Approaches to Industrial Relations:-
The following are the three popular approaches to industrial relations -
I. Unitary Approach:
The employer and employee work as a harmonious unit and they work for a common goal.
Hence, there is no possibility of conflicts arising between them and they work as a team to
attain the common goal. According to Edwards (2003).Any conflict that may occur is then
seen as the result of misunderstanding or mischief. Thus, conflict is perceived as disruptive.
The concept of loyalty is privileged in the Unitarist Approach because of its paternalist roots.
Since there exist direct relations between the employer and the employee, trade unions are
considered as unnecessary. The orientation and application of rules may be managerial but
employees are expected to be loyal and sincere to the organization.
22
II. Pluralist Approach:

The pluralist approach was developed in the United States of America by John R Commons.
He considered society as complex due to the presence of multiple interest groups with their
own goals. Hence, conflict is inevitable in the system and there are possibilities of
compromise based on the interaction between different stakeholders. Collective bargaining
was used as a mechanism to sort out the conflict between the employer and employees. The
presence of trade union in an organization can serve as an interest group to protect the interest
of employees. According to Edwards (2003), „pluralism was particularly salient in the
approach of management: instead of unitary denial that there was any rational basis for
conflict, managers should recognize the inevitability of dispute and seek means to regulate
them.‟ Employees understood the basis of conflict and were ready to negotiate with the trade
union in the overall interest of the organization. The Pluralistic Theory is based on the
premise that the enterprise contains people with a variety of interests, aims and aspirations;
therefore, it is a coalition of different interests. Arthur Ross argued that we should view an
organisation as a “plural society containing many related but separate interests and objectives
which must be maintained in some kind of equilibrium”.
III. Marxist Approach:
Karl Marx considered industrial conflict as a part of the broader social conflict between
classes and used it to explain the fundamental historical process of change and development
in human society. He was concerned with certain macro economic processes and deep-rooted
inequalities in society as a whole, and not with specific industries or firms. Marx divided the
society into two classes (i) capitalists, who own the means of production, and (ii) proletariat,
who own nothing but their own labour power. These classes are antagonistic groups.
Antagonism and conflict are of the very essence of Marx‟s conception of class. The reasons
for this fundamental antagonism lie in the capitalist mode of production.
Problems of Industrial Relations in public sector:-
 Public Enterprise - Company whose shares are available and traded on the stock
market or other over-the-counter market. Subject to more regulation than a privately
owned company, a public enterprise has greater access to financing. Shareholders
own a percentage of the company based on the amount of stock they own.
 Wage differentials - It is an area where comparison between the public and private
sectors is becoming common. The policy of settlement of wage structure,equal pay for
equal work, wage differentials due to levels of responsibilities etc are all the issues
that concern the labour in public enterprises.
 Industrial relations - Industrial Relations is a developing and dynamic concept and

such no more limits itself merely to the complex relations between the unions and
management but also refers to the general web of relationships normally obtaining
between employees – a web much more complex than the single concept of labour
capital conflict.
23
 Surplus labour - This problem is the outcome of indiscriminate recruitment on

account of political pressures, reduction of activities, structural changes and
improvement in technology.
 Over centralization - Management decisions taken at local shop level are turned
down by the higher authorities. This type of over centralization the local management
lose the prestige and confidence.
 Multipricing of unions - The existence of multiple union has brought the evils of
inter union rivalries.
 Political and bureaucratic influence - Public enterprises are highly prone to be

influenced by political and bureaucratic set up. Generally political people influenced
decision making process.
Industrial relations department of IDCOL:-
The key responsibilities of the IR department are:
 To maintain smooth relations with all the employees.

 To take regular meetings of the Work Committee.
 To negotiate while agreement.
 To keep industrial discipline.
 To issue letters to the latecomers, absenteeism, suspension etc.
 To handle legal issues.
The functions of the IR staffs are:

 Administration including overall organization, supervision and co-ordination of
industrial relations policies and programs.
 Drafting of rules & regulations, laws or orders and their construction and
interpretation.
 Position classification including overall direction of job analysis, salary and wage
administration wage survey and pay schedules.
 Employment testing including intelligence tests, mechanical aptitude test and
achievement tests.
 Employee counseling on all types of personal problems – educational, vocational,
health or behavior problems.
 Placement including induction and assignment.
 Recruitment and employment of workers and other staffs.
 Medical and health services.
 Public relations.
 Control of operational surveys, fiscal research and analysis.
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INDUSTRIAL RELATIONS LAWS ADOPTED BY IDCOL:-

A. THE FACTORIES ACT, 1948
The Factories Act came into force on April 1, 1949. It was enacted with a view to
removing a number of defects, revealed in the working of the Act of 1934. The Act of
1948 not only consolidates but also amends the law regulating labor in Factories.
Section 116 provides that unless otherwise provided, this Act also applies to factories
belonging to the Central or any State Government.
The Act is enacted primarily with the object to regulate the conditions of work in
manufacturing establishments coming within the definition of the term ‘factory’ as
used in the Act. The Factories Act, 1948 has been enacted to consolidate and amend
the law regulating the workers working in the factories. It extends to whole of India
and applies to every factory wherein 20 or more workers are ordinary employed.
Since the aim and object of the Act is to safeguard the interest of workers and protect
them from exploitation, the Act prescribes certain standards with regard to safety,
welfare and working hours of workers, apart from other provisions.
 Factory
It means any premises including the precincts thereof where ten or more persons are
working in any manufacturing process being carried on with aid of power and where
twenty or more workers are working without the aid of power.
 Health
* Every factory should be kept dean and free from effluvia arising from any drain,
privy or other nuisance. {Section 11}
* Effective arrangements should be made in every factory for the treatment and
effluents due to the manufacturing process carried on therein, so as to render them
innocuous, and for their disposal. {Section12}.
* Effective and suitable provisions should be made in every factory for securing and
maintaining in every workroom; adequate ventilation by the circulation of fresh air;
and such a temperature will secure to workers therein reasonable conditions of
comfort and prevent injury to health. {Section 13}
* Effective measures should be taken to prevent inhalation of dust to prevent

inhalation of dust and fume that may produce in the course of manufacturing process.
{Section 14}
* In any factory where the humidity of air is artificially increased, the State
Government may make rules prescribing standards of humidification; regulating the
methods used for artificially increasing humidity of the air; and directing prescribed
test for determining the humidity of the air to be correctly carried out and recorded;
and prescribing methods to be adopted for securing adequate ventilation and cooling
of the air in the workrooms. {Section 15}
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* No room in any factory should lie overcrowded to an extent injurious to the health
of the workers employed therein. {Section 16}
* In every part of a factory where workers are working or passing, there should be
provided and maintained sufficient and suitable lighting, natural or artificial, or both.
{Section 17}
* In every factory effective arrangements should be made to provide and maintain at

suitable points conveniently’ situated for all workers employed therein a sufficient
supply of wholesome drinking water. {Section 18}
* In every factory sufficient latrine and urinal accommodation of prescribed types

should be provided conveniently situated and accessible to workers, separately for
male and female workers, at all times while they are at the factory. {Section 19}
* In every factory there should be provided a sufficient number of spittoons in

convenient places and they shall be maintained in a clean and hygienic condition.
{Section 20}
 Safety
* The machinery in every factory should be properly fenced. {Section 21}
* Only the trained adult male worker, wearing tight fitting clothing which should be
supplied by the Occupier, should be allowed to work near the machinery in motion.
{Section 22}
* No young person shall be employed on dangerous machinery, unless he is fully

instructed as to the danger arising in connection with the machine and the precautions
to be observed and he has received sufficient training in work at the machine.
{Section 23}
* Suitable arrangements should be made to provide striking gear and devices for
cutting off power in case of emergencies. {Section 24}
* Sufficient precautions should be taken with regard to self-acting machines to avoid

accidents. {Section 25}
* To prevent danger, all machinery driven by power should be encased and effectively
guarded. {Section 26}
* Woman worker and children should not be employed in any part of the factory for
pressing cotton in which a cotton-opener is at work. {Section 27}
* Hoists and Lifts in a factory should be periodically inspected by the Competent

Person. {Section 28}
* Lifting Machines, Chains, Ropes and Lifting Tackles in a factory should be

periodically inspected by the Competent Person. {Section 29}
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*Where process of grinding is carried on, a notice indicating the maximum safe
working peripheral speed of every grind-stone or abrasive wheel etc., should be fixed
to the revolving machinery. {Section 30}
* Where any plant or machinery or any part thereof is operated at a pressure above
atmospheric pressure, effective measures should be taken to ensure that the safe
working pressure of such plant of machinery or part is not exceeded.{Section 31}
* Floors, stairs and means of access should be soundly constructed and properly
maintained. {Section 32}
* Pits, sumps opening in floor etc., should be either securely covered or fenced.
{Section 33}
* No workman shall be employed in any factory to lift, carry or move any load so
heavy as to be likely to cause him injury. {Section 34}
* Necessary protective equipment should be provided to protect the eyes of the

workman, where the working involves risk of injury to the eyes. {Section 35}
* Suitable precautionary arrangements should be taken against dangerous fumes,

gases etc. {Section 36}
* Every practicable measure should be taken to prevent any explosion where the
manufacturing process produces dust, gas, fume or vapor etc. {Section 37}
* Every practicable measure should be taken to prevent the outbreak of fire and its
spread, both internally and externally. {Section 38}
* The Inspector of Factories can ask the Occupier or the Manager of the Factory to
furnish drawings, specification etc., of any building, machinery or a plant, in case he
feels that condition of such building, machinery or the plant may likely to cause
danger to human life. {Section 39}
* The Inspector of Factories can suggest suitable measures of steps to take by the
Occupier or Manager for implementation, when he feels the condition of any building,
machinery or a plant may likely to cause danger to human life. {Section 40}
* Wherein 1000 or more workmen are employed in a factory, the Occupier should
appoint a Safety Officer to look after the safety aspects of the factory. {Section 40-B}
 Welfare
* Adequate and suitable ‘washing facilities’ should be provided in every factory.
{Section 42}
* Provision should be made to provide suitable places for keeping clothing not worn
during working hours and for the drying of wet clothing.{Section 43}
27
* In every factory, suitable arrangements for sitting should 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. {Section 44}
* First-Aid Boxes with the prescribed contents should be provided and maintained so
as to be readily accessible during all working hours at the rate of at least one Box for
every 150 workmen. {Section 45}
* In every factory wherein more than 500 workers are employed there should be
provided and maintained an Ambulance Room of the prescribed size, containing the
prescribed equipment and in the charge of such medical and nursing staff. {Section
45(4)}
* The Occupier should provide a canteen for the use of workers in every factory,
where the number of workmen employed is more than 250.{Section 46}
* In every factory wherein more than 150 workers are 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, should be provided and
maintained for the use of the workers. {Section 47}
* In every factory wherein more than 30 women workers are ordinarily employed
there should be provided and maintained a suitable room for the use of children under
the age of six years of such women. {Section 48}
* In every factory wherein more than 500 or more workers are employed, the
Occupier should employ in the factory such number of Welfare Officers as may be
prescribed. {Section 49}
 Working Hours of Adult Workers

* Ordinarily, a worker should not be allowed to work in a factory for more than 48
hours in any week. {Section 51}
* The workman should have one holiday for a whole day in a week. Where he was
asked to work on his scheduled weekly holiday, he should be given compensatory
holiday within three days of his scheduled weekly holiday. {Section 52}
* After obtaining approval from the Inspector of Factories, the workman shall be
allowed to avail the compensatory holidays unveiled by him, within that month during
which the compensatory holidays are due or within two months immediately
following that month. {Section 53}
* Subject to the provisions of Section 51 no worker should be allowed to work more

than nine hours in a day. {Section 54}
28
* The timings of work should be fixed in such a way that no worker should be
required to work continuously for more than five hours; and he should be allowed to
avail an interval for rest of at least half-an hour during his work in a day. {Section 55}
* The period of work of a workman should be so arranged that inclusive of his

interval for rest under Section 55 should not spread over more than ten and a half
hours in any day. {Section 56}.
B. THE PAYMENT OF BONUS ACT, 1965
The Bonus act is the outcome of the recommendation made by the tripartite
commission which was set up by the Government of India way back in 1961. The
commission was asked to consider the question of payment of bonus based on profit
to the employees by the employer. On September 2, 1964 the government
implemented the recommendations of the commission with certain changes.
Accordingly the payment of Bonus Ordinance 1965 was promulgated on May 26,
1965. Subsequently it was accepted by the parliament and accordingly in the year
1965, the payment of Bonus act was enacted. The Act was amended in 1968, 1969,
1975, 1976, 1977, 1978, 1980, 1985, and 1995.
The main objectives of the Act are as under:
a) To impose statutory obligation on the employer of every establishment
defined in Act to pay bonus to all eligible employees working in the
establishments.
b) To outline the principles of payment of bonus according to prescribed
formula.
c) To provide for payment of minimum and maximum, bonus and linking the
payment of bonus with the scheme of “set off” and “set on”.
d) To provide machinery for enforcement of bonus.
 Applicability of Act (Sec 1):

Every factory wherein 10 or more persons are employed with the aid of power or An
establishment In which 20 or more persons are employed without the aid of power on
any day during an accounting year.
 Establishment:
Establishment includes departments, undertakings and branches, etc.
 Computation of available surplus (Sec.5) :

The following sums shall be deducted from the gross profits as prior charges,
namely:-
a) Any amount by way of depreciation admissible in accordance with the

provisions of sub-section (1) of section 32 of the Income-tax Act, or in
accordance with the provisions of the agricultural income-tax law, as the case
29
may be: Provided that where an employer has been paying bonus to his
employees under a settlement or an award or agreement made before the 29th
May, 1965, and subsisting on that date after deducting from the gross profits
notional normal depreciation, then, the amount of depreciation to be deducted
under this clause shall, at the option of such employer (such option to be
exercised once and within one year from that date) continue to be such
notional normal depreciation;
b) any amount by way of2[development rebate or investment allowance or
development allowance] which the employer is entitled to deduct from his
income under the income-tax Act;
c) Subject to the provision of section 7, any direct tax which the employer is
liable to pay for the accounting year in respect of his income, profit and gain
during that year.
 Components of Bonus: Sec. 2(21) :

Salary or wages includes dearness allowance but no other allowances e.g. over-time,
house rent, incentive or commission.
 Disqualification and Deduction of Bonus: Sec 1 :
 On dismissal of an employee for fraud; or

 riotous or violent behavior while on the premises of the establishment; or
 theft, misappropriation or sabotage of any property of the establishment; or
 Misconduct of causing financial loss to the employer to the extent that bonus
can be deducted for that year.
 Computation of gross profits:

For banking company, as per First Schedule. Others, as per Second Schedule.
 Eligibility of Bonus:
An employee will be entitled only when he has worked for 30 working days in that
year. (Sec 8)
 Payment of Minimum Bonus:

8.33% of the salary or Rs.100 (on completion of 5 years after 1st Accounting year
even if there is no profit). (Sec. 10)
 Eligible Employees:
Employees drawing wages up to Rs.10000/- per month or less. For calculation
purposesRs.3500 per month maximum will be taken even if an employee is drawing
up to Rs.3500 per month. (Sec. 12)
 Time Limit for Payment of Bonus:

Within 8 months from the close of accounting year. (Sec. 19)
30
 Set-off and Set-on:

As per Schedule IV. Sec. 15
 Submission of Return:
In Form D to the inspector within 30 days of the expiry of time limit under Section
19. Rule 5
 Maintenance of Registers and Records etc.: Sec. 2(21) :

 A register showing the computation of the allocable surplus referred to in
clause (4) of section 2, in Form A.
 A register showing the set-on and set-off of the allocable surplus, under
section 15, in Form B.
 A register showing the details of the amount of bonus due to each of the
employees, the deductions under sections 17 and 18 and the amount actually
disbursed, In Form C.
 Non applicability of the Act:
This Act is not applicable to certain employees of LIC. General Insurance, Dock
Yards, Red Cross, Universities* Educational Institutions, Chambers of Commerce,
Social Welfare Institutions. etc.Sec.32
 Penalty:
For contravention of any provision of the Act or the Rules: Up to 6 months or with
fine up to Rs.1000. Sec.28
C. THE INDUSTRIAL DISPUTES ACT, 1947
According to the Notification in the Official Gazette of India, 1946, Pt. V., the Act
was enacted to achieve the following object:
“Experience of working of the Trade Disputes Act of 1929, has revealed that its main
defect is that while restraints have been imposed on the rights of stride and lockout in
public utility services, no provision has been made to render the proceedings
institutable under the Act for the settlement of an industrial dispute, either by
reference to a Board of Conciliation or to a Court of Inquiry conclusive and binding
on either parties to the dispute.” This is a special legislation, which applies to
workmen drawing wages not exceeding a specified amount per month and which
governs the service conditions of such persons. It may be regarded as a supplement to
the Indian Contract Act, 1872, whose aim is to regulate the contractual relationship of
master and servant in ordinary sense. This Act deals with the prevention and
settlement of conflict between the two parties and thereby try to improve relationship
between them. Thus, the purpose of this Act is to harmonize the relations between the
employer and the workmen; and to afford a machinery to settle disputes that arise
between the management and the workmen which, if not settled, would undermine the
industrial peace and cause dislocation and even collapse of industrial establishments,
essential to the life of the community. This industrial peace is secured through
voluntary negotiations and compulsory adjudication.
31
 Objectives
a. To promote measures for securing and preserving amity and good relations
between the employers and the employees, to minimize the differences and to
get the dispute settled through adjudicatory authorities.
b. To provide suitable machinery for investigation and settlement of industrial
disputes between employers and employees, between employers and
workmen; or between workmen and workmen with a right of representation
by a registered trade union of by an association of employers.
c. To prevent illegal strikes and lockouts.
d. To provide relief to workmen in matters of lay-offs, retrenchment, wrongful
dismissals and victimization.
e. To give the workmen the right of collective bargaining and promote
conciliation.
 Applicability
The Industrial Disputes Act extends to whole of India and applies to every industrial
establishment carrying on any business, trade, manufacture or distribution of goods and
services irrespective of the number of workmen employed therein. Every person employed in
an establishment for hire or reward including contract labour, apprentices and part-time
employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory
work, is covered by the Act.
This Act though does not apply to persons mainly in managerial or administrative capacity,
persons engaged in a supervisory capacity and drawing > 10,000 p.m or executing managerial
functions and persons subject to Army Act, Air Force and Navy Act or those in police service
or officer or employee of a prison.
Applicability of Parent Act - Trades Dispute Act
Related Sections of The Act –
*Section1: Short title, and commencement
*Section 9-B: Power of Government to exempt
*Section 2A : Appropriate Government
Any industry carried on by or under the authority of the Central Govenment, or by a railway
company or a Dock Labour Board, or the Industrial Finance Corporation of India Ltd, or the
ESIC, or the board of trustees of the Coal Mines PF, or FCI, or LIC or in relation to any other
industrial dispute, the state Government.
*.Section 2J: Industry
The definition of Industry under the Act is taken from the Supreme Court's judgement in
Bangalore water Supply and Sewerage Board v. A. Rajappa.
32
Triple Test formulae - The organization is Prima Faciean industry if it is
1. A systematic activity;
2. Organised by co-operation between an employer and an employee;
3. for the production of goods and services calculated to satisfy human wants and wishes. (
not spiritual or pious in nature but inclusive of material things or services geared to seek
celestal bliss)
*Section 2BB: Banking company
*Section 2G: Employer
*Section 2J : Industry
*Section 2K : Industrial dispute
*Section 2A : Industrial dispute between individual and employer
*Section 2KA: Industrial establishment or undertaking
*Section 2KK: Insurance company
*Section 2LA: Major port
*Section 2LB: Mine
*Section 2N : Public utility service
*Section 2RR: Wages
*Section 2S : Workmen (Including an Apprentice)industrial act
D. THE CONTRACT LABOR ACT, 1970 (REGULATION AND ABOLITION)
The Contract Labour Act was passed to prevent exploitation of contract labour and also to
introduce better conditions of work. The Act provides for regulation and abolition of contract
labour. The underlined policy of the Act is to abolish contract labour wherever possible and
practicable and where it can be abolished altogether, the working conditions of the contract
labour should be so regulated as to ensure payment of wages and provisions of essential
amenities. The Act provides for regulated conditions of work and contemplates progressive
abolition to the extent contemplated under the Act. The Act provides for constitution of
Contract Labour Advisory Board to advise the Government on such matters arising out of the
administration of this Act as may be referred to it and to carry out other functions assigned
under the Act. In view of these provisions of the Act, Delhi Contract Labour Advisory Board
is constituted under the chairmanship of the then Minister of Labour.
33
The Main Provisions of the ACT
1. Setting Up of Advisory Boards:

The Act requires that the Central and State Advisory Boards are to be set up by the
Central and State Governments, respectively to advise them on such matters arising
out of the administration of the Act as may be referred to them, and carry out any
other functions assigned to them under the Act. Besides, the government nominees,
the Boards have members representing industry, contractors, workers, and any other
inter government may consider should be represented on the Boards. The number of
nominees of the workers is to be equal to that of industry and contractors, both on the
State and the Central Boards (section 3, 4)
2. Registration of Establishment:
Every principal employer who wishes to employ contract labour has to get the
establishment is accepted for registration. The registration officer issues a registration
certificate if the establishment is accepted for registration. This certificate can be
cancelled if it has been obtained by misrepresentation or suppression of any material
fact or if the registration has become useless or ineffective or requires to be revoked.
The contract labour cannot be employed so long as the registration certificate has not
been issued or after it is revoked. The employer has to play a registration fee of
twenty rupees to five hundred rupees depending on the number of workers to be
employed (Section 6, 7, 8, 9)
3. Prohibition of employment of Contract Labor:

Both the Central and State Governments can prohibit the employment of contract
labor in any process, operation or other work in any establishment after consulting
their Advisory Boards, and consider the conditions of work and benefits provided for
contract labour in the establishment. The employment of contract labour may not be
permitted for any process, operation and other work if it is:
 incidental to or necessary for the industry, trade, business, manufacture
or occupation that is carried on in the establishment;
 of perennial or perpetual nature or of a sufficient duration
 done ordinarily through regular workmen in that establishment or an
similar thereto:
 Capable of employing considerable number of whole time workmen.
4. Licensing of Contractors:
Every contractor has to obtain a licensing for employing contract labour from the
licensing officer appointed by the government for this purpose. In this application for
a licensing he has to mention the location of his establishment, the nature of the
operation or the work for which contract labour is to be employed, and such other
particulars as may be required by the licensing officer. He is charged a license fee,
which may vary from five rupees to one hundred and twenty five rupees, depending
on the number of workers to be employed
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5. Welfare and Health of Contract Labor:

Contractors are required to provide and maintain-
 Sufficient number of latrines and urinals of the prescribed type conveniently
situated and accessible.
 Washing facilities;
 A first –aid box equipped with prescribed contents at every place where
contract labor is employed;
 One or more canteens if the work is to continue for more than 6 months and
100 or more workers are employed. The number of canteens, the standard of
their construction, furniture and equipment, and the type of food to be supplied
will be as prescribed under the rules framed by the government.
6. Responsibility for payment of Wages:

 The contractor is also to be responsible for making regular and timely payment
of wages to his workers. The payment is to be made in the presence of the
authorized representative of the principal employer. If the contractor does not
make payment, the principal employer will do the same and recover the
amount so paid from the contractor (Section 16 to 21)
 Get his establishment registered with the registering officer appointed by the
government (Section 7);
 Obtain a license from the licensing officer for employing contract labour and
comply with the terms and conditions of the grant of the license (Section 12);
 Not to employ contract labour without obtaining a registration certificate and
license, or after the registration certificate and license are revoked or
suspended (Section 9, 12, 1);
 Provide welfare and health facilities as required under the Act and its rules
(Section16, 19);
 Pay wages to workers before the expiry of the wages period (Section 21);
 Co-operate with the inspectors in the inspection of premises, documents and
records and examining any person to determine if the provisions of the Act
and the rules framed there under are being complied with (Section 28);
 Maintain the registers and records with such particulars of contract labour, as
nature of work performed, rates of wages and other information specified in
Rules 74 and 78 of the Act (Section 29);
 Exhibit in the premises of the establishment where contract labour is
employed a notice showing hours of work, rates of wages, wage periods, dates
of payment of wages, nature of duties and other particulars as mentioned in
Rule 81 of the Act (Section 29 (2)
 A Sufficient supply of wholesome drinking water at convenient places;
 Send a half-yearly return to the licensing officer and yearly return to the
registration officer, and to supply such information and statistics as may be
required by the government from time to time.
7. Rights of Contract Labor:

 Claim such working conditions, facilities and other benefits as are provided
for under the Act and the rules framed there under (Section 16 to 22); and
 They can be represented by their representatives on the Central and State
Advisory Boards (Section 4)
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 Objective of the act:

To regulate the employment of contract labour in certain establishments and to
provide for its abolition in certain circumstances and for matters connected therewith.
 Applicability:
1.Every establishment in which 20 or more workmen are employed or were employed
on any day of the preceding twelve months as contract labour.
2. Every contractor who employs or who employed 20 or more workmen on any day
of the preceding twelve months.
 Sec. 7: Registration certificate to be obtained by principal employer

 Rule 18(4): Registration Certificate to be renewed /amended in case of
any change in no. of workmen engaged after registration/ change in the
contractors.
 Rule 79: Abstract of the Contract Labour (Regulation and Abolition)
Act 1970 and central rules to be displayed at locations. Wages to the
contract labour to be paid in line with the Minimum wages applicable.
 Rule 65: Wages of contract labor to be disbursed on or before 7th day
of the following month.
 Rule 73:Wage disbursement to be witnessed by any authorized officer
(BPCL)" Certified that the amount shown in column has been paid to
the workman concerned in my presence on at (Date/Time)"
 Sec 21.4: In-case the contractor fails to make payment of the wages to his workmen,
the Principal Employer to make the payment.
 Rule 74: A register of contractors in Form XII to be maintained by
principal employer.
 Rule 80(3): Registers to be maintained for 3 calendar years.
 Rule 81(3): Return (to be submitted by the Principal Employer) in
Form VI-B regarding commencement/completion of work to the
concerned authority within 15 days of commencement/completion of
work.
 Rule 82(2): Return in Form XXV to reach the registering officer
concerned not later than 15th February following the end of the year to
which it relates.
 Section 12 :Contractor to obtain license from the licensing officer (for more than 20
contract labors)
 Rule 21(2): Principal employer shall give a certificate in Form V to the
contractor
 Rule 76: Contractor to issue employment card in Form XIV to each
contract labor within three days of employment.
 Rule 75, 78(1): Registers to be maintained by the contractor.
 Rule 78(1) (b): Contractor to issue Wage Slip (in form XIX) - one day
prior to disbursement of wages.
 Rule 78(1) (c):Signature of workman to be obtained in the register for
the entries related to them
 Rule 25(2): Return to be submitted by the contactor in Form VI-A
within 15 days of commencement/completion of each contract work.
 Rule 82(1): Half yearly returns.
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 Rule 40: Welfare and Health

 Rule 41:Rest Rooms1.When they are required to halt at night in
connection with their working2.Where contract labour is to continue
for three months or more3.Within 15 days of commencing the
employment.4.Separate rooms to be provided for women employees
 Rule 42:Canteen1.Where contract labour is to continue for six
months.2.100 or more contract labour3.Within 60 days of
commencement of employment of contract labor
 Section 18:Other facilities:*.Sufficient number of latrines and urinals*.Washing
facilities
 Sec 19:First Aid (One box for 150 contract labors)
TRADE UNIONS
Meaning:
Trade unions are associations of workers or organization formed together by labour, workers
or employees to achieve their demands for better conditions at their work atmosphere. In the
United States, trade unions go by the name labor unions.
A labor union, or trade union, is an organization of workers who have joined together to
achieve goals in areas such as wages and working conditions. The union negotiates contracts
and conditions with employers, keeping employee satisfaction high and protecting workers
from unsafe or unfair working conditions.
These unions exist to deal with problems faced by laborers, these problems may be of any
nature such as those concerning the pay, unfair work rules, timings and so on. All the workers
working under one particular employer is represented by the worker's union.
All the communication that happens in between the employer and the workforce generally
takes place through the union. All of the above trade unions are also liable and responsible
for maintaining discipline and among the workers, core purpose is to see that proper relations
or being maintained in between management and workers and trade union may take
disciplinary action against the workers who ever misbehaves, disturbed peace and harmony in
the workplace and maintenance indiscipline.
Trade unions or labour unions are governed by the different law in different countries, they
should follow the procedure and mode of registration for formation of the trade union
according to the law of the country. Trade union formed in accordance with the law of their
country shall have the privileges given by the law of trade union. With privileges or rights of
the trade union, it should perform certain duties with respect to workers.
Definition:
In the words of Indian Trade Union Act, 1926, ―A trade union is any combination, whether
temporary or permanent, formed primarily for the purpose of regulating the relations between
workmen and employers, or between workmen and workmen, between employers and
employers, or for imposing restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more trade union. The law relating to the registration and
protection of the Trade Unions is contained in the Trade Unions Act, 1926 which came into
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force with effect from 1st June 1927. The Act extends t o the whole of India except the State
of Jammu and Kashmir
Provided that this Act shall not affect:-
i) any agreement between partners as to their own business

ii) any agreement between an employer and those employed by him as to such
employment; or
iii) any agreement in consideration of the sale of the goodwill of a business or of
instruction in any profession trade or handicraft.
.
According to Dale Yoder defined as ―A trade union is a continuous association of wage-

Earners for the purpose of maintaining or improving the conditions of their working lives.
The growth and development of the labour movement, and for that part of the trade unions, in
India, can be divided into following periods, each of them revealing different tendencies that
mark it from others.
Features:
The main characteristics of the trade unionism are:

1. The trade union is voluntary association: Trade union is not a compulsory association
but voluntary association of workers, who may be in one or more industries and
occupations.
2. Common interest: There is certain common interest of the member workers. The
leader of the trade union is supposed to pursue and protect the economic and other
interest of the members which leads to their welfare.
3. Collective action: After thorough discussions in the meeting of trade union the leader
of the union takes collective steps to press their demand before the management.
4. Permanent & continuous association: A trade union is a permanent and continuous
organization. They persistently pursue their purpose conceive of their purpose as one,
which is not merely immediate but continuous and long term as well. They do not
expect to attain their purpose in a day because they anticipate and contemplate a
continuing stream of additional objectives to be adopted from time to time.
5. Association engaged in securing economic benefits: Trade unions attempts is to
secure control of supply of labour in one or more markets and to maintain that control
as a mean of fixing the price of labour as well as the conditions under which they
works.
6. The origin and growth of trade union have been influenced by a number of ideologies:
The socio economic and even political movement have influenced trade union in one
or other way.
7. Other benefits: Trade union is not only confined to economic benefits, but other
benefits such as cultural, political, social and psychological are also within their
broader preview
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Functions:
Trade unions perform a number of functions in order to achieve the objectives. These
functions can be broadly classified into three categories:
1. Militant Functions
One set of activities performed by trade unions leads to the betterment of the position
of their members in relation to their employment. The aim of such activities is to
ensure adequate wages secure better conditions of work and employment get better
treatment from employers, etc. When the unions fail to accomplish these aims by the
method of collective bargaining and negotiations, they adopt an approach and put up a
fight with the management in the form of go-slow tactics, strike, boycott, gherao, etc.
Hence, these functions of the trade unions are known as militant or fighting functions.
Thus, the militant functions of trade unions can be summed up as:
* To achieve higher wages and better working conditions.
* To raise the status of workers as a part of industry.
* To protect labors against victimization and injustice.
2. Fraternal Functions
Another set of activities performed by trade unions aims at rendering help to its
members in times of need, and improving their efficiency. Trade unions try to foster a
spirit of cooperation and promote friendly industrial relations and diffuse education
and culture among their members. They take up welfare measures for improving the
morale of workers and generate self confidence among them. They also arrange for
legal assistance to its members, if necessary. Besides, these, they undertake many
welfare measures for their members, e.g., school for the education of children, library,
reading-rooms, in-door and out-door games, and other recreational facilities. Some
trade unions even undertake publication of some magazine or journal. These
activities, which may be called fraternal functions, depend on the availability of
funds, which the unions raise by subscription from members and donations from
outsiders, and also on their competent and enlightened leadership. Thus, the fraternal
functions of trade unions can be summed up as:
* To take up welfare measures for improving the morale of workers
* To generate self confidence among workers
* To encourage sincerity and discipline among workers
* To provide opportunities for promotion and growth
* To protect women workers against discrimination
3. Social Functions
Besides the main economic functions consisting basically of organizing unions and
improving their terms and conditions of employment to enable workers to meet their
physical needs, some unions have now started undertaking and organizing welfare
activities and also providing variety of services to their members and sometimes to
the community of which they are a part, which may be grouped under following
heads:
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i. Welfare activities provided to improve the quality of work life including

organization of mutual fund, cooperative credit societies for providing
housing, cooperative stores, cultural programmes, banking and medical
facilities and training for women in various crafts to help them to supplement
their family income
ii. Education of members in all aspects of their working life including improving
their civic life, awareness in the environment around them, enhancement of
their knowledge particularly in regard to issues that concern them, their
statutory and other rights and responsibilities, workers’ participation in
management.
iii. Scheme and procedure for redressing their grievances. Some central union
organizations are also assisting the Government in implementing the Workers’
Education Scheme.
iv. Publication of periodicals, newsletters or magazines for establishing
communication with their members, making the latter aware of union policy
and stand on certain principal issues and personnel matters concerning
members, such as births, deaths, marriages, promotion and achievements.
v. Research is gaining importance and is intended mainly to provide updated
information to union negotiators at the bargaining table. Such research is to be
more practical than academic, concerning problems relating to day-today
affairs of the union and its activities and union and management relations.
Some of the research activities are :
 collection and analysis of wage data including fringe benefits, and
other benefits and services through surveys of comparative practices,
data on working conditions and welfare activities;
 preparation of background notes for court cases and also position
papers for union officials;
 Collection and analysis of macro data relating to the economy, industry
sectors etc. All the above mentioned activities and services are
considered normal activities of unions in the Trade Unions Act which
stipulates the objectives on which general funds of the union can be
spent.
4. Political functions:
These functions include affiliating the union with a political party, helping the
political party in enrolling members, collecting donations, seeking the help of political
parties during the periods of strikes and lockouts.
Objectives
1) Wages and Salaries:

The subject which drew the major attention of the trade unions is wages and salaries.
Of course, this item may be related to policy matters. However, differences may arise
in the process of their implementation. In the case of unorganized sector the trade
union plays a crucial role in bargaining the pay scales.
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2) Working Conditions:
Trade unions with a view to safeguard the health of workers demands the
management to provide all the basic facilities such as, lighting and ventilation,
sanitation, restrooms, safety equipment while discharging hazardous duties, drinking,
refreshment, minimum working hours, leave and rest, holidays with pay, job
satisfaction, social security benefits and other welfare measures.
3) Discipline:
Trade unions not only conduct negotiations in respect of the items with which their
working conditions may be improved but also protect the workers from the clutches
of management whenever workers become the victims of management’s unilateral
acts and disciplinary policies. This victimization may take the form of penal transfers,
suspensions, dismissals, etc. In such a situation the separated worker who is left in a
helpless condition may approach the trade union. Ultimately the problem may be
brought to the notice of management by the trade union and it explains about the
injustice met out to an individual worker and fights the management for justice. Thus,
the victimized worker may be protected by the trade union.
4) Personnel Policies:
Trade unions may fight against improper implementation of personnel policies in
respect of recruitment, selection, promotions, transfers, training, etc.
5) Welfare:
As stated earlier, trade unions are meant for the welfare of workers. Trade union
works as a guide, consulting authority and cooperates in overcoming the personnel
problems of workers. It may bring to the notice of management, through collective
bargaining meetings, the difficulties of workers in respect of sanitation, hospitals,
quarters, schools and colleges for their children’s cultural and social problems.
6) Employee-employer relation: Harmonious relations between the employees and

employer are a sine quo non for industrial peace. A trade union always strives for
achieving this objective. However, the bureaucratic attitude and unilateral thinking of
management may lead to conflicts in the organization which ultimately disrupt the
relations between the workers and management. Trade union, being the representative
of all the workers, may carry out continuous negotiations with the management with a
view to promote industrial peace.
7) Negotiating machinery:
Negotiations include the proposals made by one party and the counter proposals of the
other party. This process continues until the parties reach an agreement. Thus,
negotiations are based on ‘give and take’ principle. Trade union being a party for
negotiations protects the interests of workers through collective bargaining. Thus, the
trade union works as the negotiating machinery.
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8) Safeguarding organizational health and the interest of the industry:

Organizational health can be diagnosed by methods evolved for grievance redressed
and techniques adopted to reduce the rate of absenteeism and labour turnover and to
improve the employee relations. Trade unions by their effective working may achieve
employee satisfaction. Thus, trade unions help in reducing the rate of absenteeism,
labour turnover and developing systematic grievance settlement procedures leading to
harmonious industrial relations. Trade unions can thus contribute to the improvements
in level of production and productivity, discipline and improve quality of work life.
Role of Trade unions towards the Industrial organization:
Trade unions perform following functions for the industrial organization in which they are
working:
i) To highlight the organization as a joint enterprise between workers and
management and to promote identity of interest.
ii) To increase production quantitatively as well as qualitatively, by laying down the
norms of production and ensuring their adequate observance.
iii) To help in maintenance of discipline.
iv) To help in removal of dissatisfaction and redressal of day-to-day complaints and
grievances and ensure workers loyalty.
v) To create opportunity for worker’s participation in management and strengthen
the co-operation.
vi) To promote harmonic relationship between workers and management by setting
disputes through negotiation, joint consultation and avoiding litigation.
vii) To create favorable opinion of the management towards trade union and improve
their status in industrial organization.
viii) To exert pressure on the employers to enforce legislative provision beneficial to
workers, to share the profit equitably and keep away from various type of unfair
labour practice.
ix) To facilitate communication with management.
x) To impress upon the management the need to adopt reformative and not punitive
approach towards worker’s fault.
Trade unions in IDCOL:-
IDCOL CORPORATE OFFICE, BHUBANESWAR – The Trade Union functioning at the

corporate office is the IDC EMPLOYEES UNION. This trade union was formed in 1985.
The name of the president is Jyoti Mohanty and the name of the General Secretary is Babaji
Charan Maharana.
IDCOL KALINGA IRON WORKS LIMITED, BARBIL – The Trade Union functioning is
KALINGA IRON WORKS WORKERS UNION. This trade union was formed in 1980.
IDCOL FERRO CHROME AND ALLOYS LIMITED, JAJPUR ROAD – The Trade Unions
functioning is:
 FERRO CHROME MAZDOOR SANGHA, formed in 1990
 FERRO CHROME WORKERS UNION, formed in 1970
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 FERRO CHROME NAGAR BIPLLAVI MAZDOOR SANGHA, formed in 1987

 SUKHINDA REGION CHROMITE KHADA MAZDOOR SANGHA, formed in
1983
These trade unions bargain with the management for financial and welfare benefits. They put
forth the grievances and the workers before the management.
The elections are held in IDCOL FERRO CHROME AND ALLOYS LIMITED (IFCAL) in
every three years as there are multi-unions in this company.
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LABOUR WELFARE
Objectives of Labour Welfare:-

 To increase the standard of living of the. Working class the laborer is more prone to
exploitation from the capitalists if there is no standardized way of looking after their
welfare.
 To make the management feel the employees are satisfied about the work and
working conditions.
 To reduce the labour problems in the organization: There are various problems
affecting the workers, problems like absenteeism, turnover ratio, indebtedness,
alcoholism, etc., which make the laborer further weak both physically and
psychologically. Labour Welfare looks forward to helping the labourer to overcome
these problems.
 To recognize human values every person has his own personality and needs to be
recognized and developed. It is in the hands of the management to shape them and
help them grow. The management employs various methods to recognize each one's
worth as an individual and as an asset to the organization.
 Labour Welfare helps to foster a sense of responsibility in the industry: A person
works both in a group and as an individual. If the person is given responsibility he
will act better or else he will be only a slave to the direction of the superiors and will
not show any initiative to prove his worth,
 Labour Welfare improves industrial relations and reduces industrial disputes:
Industrial dispute in any industry is a sign of unsatisfied employees. Labour Welfare
measures act as a preventive tool to most of these disputes.
 To retain the employees there should be fixed policies: This calls in to prepare the
policies, to conduct different training programmes, to have various motivational
schemes, to create interest in the job. The employees who feel secure in an
organization, backed by fixed welfare policies have less chance of looking for a job
elsewhere.
 To show up their positive mind in the work: Positive mind refers to the development
of one's attitudes. This is to change the negative attitude into positive.
 To influence over other employees: This means Labor Welfare helps to change one's
personality - presentation skills, communication skills, inter-personal relationships,
etc. This is best achieved when their morale is kept high by the different welfare
schemes.
 To increase the bargaining power of the employees: Bargaining means to
systematically extract something from the opponent. The better bargaining power, the
better influence on the opponent. Labor welfare measures like formation of works
committee, worker's participation, Trade Union, etc., will surely help them to have
better bargaining power.
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Nature of Welfare:-
 Schemes of labour welfare shall be updated time to time according to need of

workers.
 Labour welfare provides facilities in addition to regular wages and other economic
benefits.
 Employers, government, NGOs etc. introduce labour welfare measures.
 Labour welfare provides facilities which improve workers work-life balance.
Need of Labour welfare:-
 The employers need welfare activities to discharge their social responsibility, raise the
employees morale use the work force more effectively and to reduce function with
workers and to avoid welfare facilities besides removing dissatisfaction help to
develop loyalty in workers towards the organization.
 To create harmonious industrial relationship
Types of Welfare Services:-
The Committee of Experts on Welfare Facilities for Industrial Workers set up by the ILO in
1963 divided welfare services into two groups –
(a) Within the precincts of the establishment (INTRAMURAL) and
(b) Outside the establishment (EXTRAMURAL)
A. Intramural:
Welfare amenities within the precincts of the establishment (intramural) such as latrines and
urinals; washing and bathing facilities; crèches, rest shelters and canteens, arrangements for
drinking water, arrangements for prevention of fatigue, health services including occupation
safety, administrative arrangements to look artery uniform and protective clothing and shift
allowances.
B. Extramural:
Welfare amenities outside the establishment such as maternity benefits, social insurance
measures including gratuity, pension, provident fund and rehabilitation, benevolent funds;
medical facilities including programs for physical fitness and efficiency; family planning and
child welfare; education facilities including adult education; housing facilities; recreational
facilities including sports, cultural activities, library and reading room, holiday homes and
leave travel facilities; workers‟ cooperative stores, fair price shops and cooperative thrift and
credit societies; vocational training for dependants of workers; welfare programs for welfare
of women, youth and children; and transport to and from the place of work.
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PROVISIONS REGARDING THE WELFARE OF WORKERS:
Statutory welfare amenities:-

Sections 42 to 49 of the Factories Act, 1948 contain specific provisions relating to welfare of
labour. Sec.42 to 45 applies to all factories irrespective of the number of workers employed.
Sec 46 to 49 are applicable to factories employing more than a specified number of workers.
These provisions are discussed below:
a. Washing Facility (Sec.42):

In every factory: (a) adequate and suitable facilities for washing shall be provided and
maintained for the use of the workers therein; (b) separate and adequately screened facilities
shall be provided for the use of male and female workers; (c) such facilities shall be
conveniently accessible and shall be kept clean.
b. Facilities for Storing and Drying Clothing (Sec.43):

The State Government may, in respect of any factory or class or description of factories,
make rules requiring the provisions therein of suitable places for keeping clothing not worn
during working hours and for the drying of wet clothing.
c. Facilities for Sitting (Sec.44):

In every factory, suitable arrangements for sitting shall be provided and maintained for all
workers obliged to work in a standing position, in order that they may take advantage of any
opportunities for rest which may occur in the course of their work.
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d. First-Aid Appliances (Sec.45):

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.
In every factory wherein more than five hundred workers are ordinarily employed, there
shall be provided and maintained an ambulance room of the prescribed size, containing the
prescribed equipment and in the charge of such medical and nursing staff as may be
prescribed and those facilities shall be made readily available during the working hours of the
factory.
e. Canteens (Sec.46):
The State Government may make rules requiring that in any specified factory wherein more
than two hundred and fifty workers are ordinarily employed, a canteen or canteens shall be
provided and maintained by the occupier for the use of the workers.
f. Shelters, Rest Rooms and Lunch Rooms (Sec.47):

In every factory wherein more than one hundred and fifty workers are ordinarily employed,
adequate and suitable shelters of rest rooms and a suitable lunch room, with provision for
drinking water, where workers can eat meals brought by them, shall be provided and
maintained for the use of the workers.
g. Creches (Sec.48):
In every factory wherein more than 30 women workers are ordinarily employed, there shall
be provided and maintained a suitable room or rooms for the use of children under the gage
of six years of such women.
h. Welfare Officers (Sec.49):

In every factory wherein five hundred or more workers are ordinarily employed, the occupier
shall employ in the factory such number of welfare officers as may be prescribed.
Further, provisions were made in other acts also for the appointment of welfare officers.
Non-Statutory Welfare Amenities:-
a. Economic Services:
The employees often need money for purchase of bicycle, scooter, T.V., sewing machine,
fan, etc. to raise their standard of living. The employer may advance them the money which
could be paid back by the employees in the form of monthly installments to be deducted from
their salaries. The employees may also be induced to build up their own funds for future
contingencies.
b. Recreational Services:
Management may provide, for recreational facilities. More agreeable informal atmosphere is
promoted through the contacts and relationships built up in the recreational events. The
management may provide for indoor games like Table Tennis in the common room for
employees. In case of big organizations, management may also arrange for playgrounds for
outdoor games and induce the workers to prepare teams to play matches with other similar
teams.
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c. Facilitative Services:
These are conveniences which the employees ordinarily require such as:
(i) Housing Facilities:

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

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

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

Educational facilities may be provided by the organization to the employees‟ children by
starting a school for them.
(v) Leave Travel Concession:

Many organizations reimburse actual fares incurred by the employee in undertaking a tour
along with his or her spouse and minor children once during a specified number of years.
WELFARE FACILITIES IN IDCOL
Welfare facilities are not charity to the workers but necessary for the organization to achieve
its goals. Welfare facilities give the worker a different kind of motivation to make them feel
loyal to the organization and work with dedication.
IDCOL provides the following welfare facilities to its employees:
1) Work environment
A huge amount of money is spent for the development and cleanliness of the
workplace, that is, corridors, walls, floors, lawns and gardens. To facilitate
comfortable working condition sufficient no. of AC’s and fans are provided. Proper
lighting and adequate umbers of chairs are provided.
2) Rest shelter
A rest shelter has been provided for the workers. Proper sitting arrangements are
provided in the rest shelter. Water supply has been provided with the facility of proper
latrines and urinals. The cleaning is regularly done by the sweepers.
48
3) Washing and bathing facilities

Washing facility has been provided in each department and section for worker’s use
and the washing place is properly cleaned by the sweepers. Facilities for storing and
drying of cloths have been provided by the management.
4) Canteen facilities
A canteen has been provided in the office premise. The furniture, electricity, water,
utensils, staffs, firewood are provided to the canteen. The food is provided at
subsidized rate. A canteen managing committee has been constituted to look after the
canteen and to submit any recommendations for its development.
RATE CHART OF CANTEEN
Sl.No. Name of the food stuffs Unit Rate
01 Rice meal Per meal Rs.1.00
02 Roti meal Per meal Rs.1.00
03 Upama Per Plate Rs.0.15 P.
04 Ghuguni Per Plate Rs.0.15 P.
05 Idle Per piece Rs.0.50 P.
06 Puri Per piece Rs.0.25 P.
07 Goolgula Per piece Rs.0.40 P.
08 Ladu Per piece Rs.1.00
09 Gaja Per piece Rs.1.00
10 Pakoda Per 100 gms. Rs.3.00
11 Bara Each Rs.0.50 P.
12 Egg curry One egg Rs.2.00
5) Family Aid Scheme

The aims and objectives of the scheme are to provide financial aid to the nominees of
the deceased employees in the event of death during employment in IDCOL.
49
6) Medical facilities
The employees who are covered under ESI scheme are getting medical facilities from
the ESI Corporation and the employees who are not covered under the corporation
and whose salary is more than Rs. 15000 per month are getting medical facilities from
the company.
7) First aid boxes

The safety department and the dispensary look after the maintenance of the first aid
boxes. The employees of each department have been trained by the St. John’s
Ambulance association for treatment of first aid need.
8) Bonus
Bonus plays an important role in today’s time period. This type of facility is usually
short-term and is based on performance. An employee whose salary is below 21,000
is eligible to get bonus in IDCOL.
9) Incentives
Incentives are also known as “payment by results”. Incentives are paid in addition to
wages and salaries. It depends on productivity, sales profit or cost reduction efforts.
Individuals’ incentives are applicable to specific employee’s performance. The
Production Incentive Scheme has been introduced in this organization with effect
from May 1981. The employees are eligible when the production exceeds 70% of the
rated capacity.
10) Pension
The organization offers pension plan to provide supplementary income to the
employees after their retirement. In IDCOL, pension is paid according to “The
employees provident Fund and Family pension Act 1952”.
Thus, IDCOL is providing almost all the beneficiary schemes to its employees. The only
reason is to make the employees feel motivated which make them satisfied.
50
CHAPTER – 5
RESEARCH METHODOLOGY
51
RESEARCH METHODOLOGY
Research refers to a systematic and scientific search for pertinent information on a specific
topic. Research methodology is a way to systematically solve the research problem.
Research methodology is the process used to collect information and data for the purpose of
making business decisions. It is necessary for the researcher to know not only the research
methods or techniques but also methodology.
Research methodology has many dimensions and research methods to constitute a part of the
research methodology. The scope of research methodology is wider than that of research
methods.
COMPONENTS OF RESEARCH METHODOLOGY
1) Methods of research
The method of research used in this study is Descriptive Research. Descriptive
research includes surveys and fact-findings enquiries of different kinds. The main
purpose of descriptive research is description of the state of affairs as it exists at
present.
Descriptive research can be explained as a statement of affairs as they are at present
with the researcher having no control over variable. Descriptive research is aimed at
casting light on current issues or problems through a process of data collection that
enables them to describe the situation more completely.
This kind of research is effective to analyze non-quantified topics and issues.
2) Types of Data
 Primary data – Primary data is a term for data collected at source. This type of
information is obtained directly from first hand sources by means of surveys,
observations and experimentation.
 Secondary data – Secondary data is the data which is collected by someone
else, that is, the data is already available and analyzed by someone else.
Common sources of secondary data include various published or unpublished
data, books, magazines, newspapers, journals etc.
3) Data collection tools
The information necessary for this research study was collected by primary sources.
The primary data was collected using a structured questionnaire. The questionnaire
was given to concerned employees who were expected to read, understand and reply
on their own. It consists of a set of questions printed in a definite order.
52
4) Sampling plan
i) Sampling frame – IDCOL CORPORATE OFFICE, BHBUBANESWAR.
ii) Sampling unit – The employees working in the HRD department of IDCOL.
iii) Sampling size – For this study a sample size of 30 was taken.
iv) Sampling method
The sampling method used in this project is random sampling.
Random sampling is a method of choosing a sample among population for a
wide range of purposes. Each member of population is equally likely to be
chosen as part of the sample.
5) Data analysis techniques to be used

The data analysis techniques usually include column graphs, pie-charts, bar graphs
and line graphs.
The data measurement, analysis and evaluation in this project work is done through
the use of percentage, MS- excel, pie-charts and column graphs.
53
CHAPTER – 6
DATA ANALYSIS AND INTERPRETATION
54
1. Do the industrial relations in IDCOL have an impact on the work culture?
CATEGORY OF RESPONSE NO. OF RESPONSE PERCENTAGE
AGREE 10 34%
STRONGLY AGREE 10 33%
DISAGREE 4 13%
STRONGLY DISAGREE 0 0%
NEITHER AGREE NOR 6 20%

DISAGREE
TOTAL 30 100%
20%
0% 34%
agree
13% strongly agree
disagree
strongly disagree
33% neither agree nor disagree
Interpretation
The above table and chart shows that 33% of the employees agree that the industrial relations
have a lot of impact on the work culture of the company. The industrial relations bring unique
experiences to the work teams and give them opportunity for personal growth and 13% of the
employees disagree.
55
2. How are the Working conditions in and around the company?
SATISFACTORY 12 40%
HIGHLY SATISFACTORY 15 50%
UNSATISFACTORY 1 3.3%
HIGHLY UNSATISFACTORY 0 0%
NEITHER SATISFACTORY 2 6.7%

NOR UNSATISFACTORY
TOTAL 30 100%
60%
50%
40%
30%
20%
10%
0%
satisfactory highly satisfactory unsatisfactory highly unsatisfacory neither satisfactory
nor unsatisfactory
Interpretation
The above table and graph shows that 90% of the employees are satisfied with the working
conditions in and around the company as the employees work in a positive work environment
and good working conditions arise from ambience and only 3% of the employees are
dissatisfied who are being underpaid.
56
3. Are the IR laws in the company supportive for the employees?
AGREE 15 50%
DISAGREE 1 3%

DISAGREE
TOTAL 30 100%
3%
3% 10%
agree
50%
strongly agree
34% disagree
strongly disagree
neither agree nor disagree
Interpretation
The above table and chart shows that more that 80% of the employees agree that the IR laws
are supportive to the employees. The IR laws (Factories Act, 1948, Payment of Bonus Act,
1965, Industrial dispute Act, 1947 and Contract Labor Act, 1970) are implemented to
improve the workings of the employment relationships and to protect the workers’ right.
57
4. Is there any Trade union in IDCOL?
CATEGORY OF RESPONSE PERCENTAGE

RESPONSE
YES 30 100%
NO 0 0%
TOTAL 30 100%
120%
100%
80%
60%
40%
20%
0%
yes no
Interpretation
The above table and graph shows that there is 100% existence of trade unions in the
company. A trade union is an association of workers who have come together to achieve
some common goals improving safety standards, achieving higher pay and benefits, etc. the
trade union in IDCOL, through its leadership bargains with the employer on behalf of the
union members and negotiates labor contracts with the employer.
58
5. Are you a Member of trade union?
CATEGORY OF RESPONSE RESPONSE PERCENTAGE
YES 25 83%
NO 5 17%
TOTAL 30 100%
17%
yes
no
83%
Interpretation
The above chart shows that 83% of the employees are the members of the trade unions. The
members of the trade unions with a powerful and collective voice communicate to the
management about their dissatisfaction and frustration.
59
6. How is the Performance of the workers of the union in the corporation?
CATEGORY OF RESPONSE PERCENTAGE

RESPONSE
SATISFACTORY 12 40%
HIGHLY 0 0%
UNSATISFACTORY
NOR UNSATISFACTORY
TOTAL 30 100%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
satisfactory highly satisfactory unsatisfactory highly neither
unsatisfactory satisfactory no
unsatisfactory
Interpretation
The above table and graph shows that 80% of the employees are satisfied with the
performance of the workers of the trade union. The workers are more likely to enjoy better
benefits as compared to non-union employees.
60
7. Does the trade union affect the company?
AGREEE 3 10%
STRONGLY AGREE 0 0%
DISAGREE 15 50%
STRONGLY DISAGREE 7 23.3%
NEITHER AGREE NOR 5 16.7%%

DISAGREE
TOTAL 30 100%
0%
7% 11%
26% agree
strongly agree
disagree
56% strongly disagree

Interpretation
The above table and chart shows that 50% of the employees disagree that the trade unions
affects the company. In fact, the trade unions reduces the employee’s stress levels and
increases their well-being overall. Whereas 10% of the employees agree because they believe
that unions benefit their members but hurt consumers generally, and especially workers who
are denied job opportunities.
61
8. Does the Union of the company holds general body meetings periodically?
ALWAYS 0 0%
SOMETIMES 25 83.3%
RARELY 1 3.3%
OFTEN 4 13.3%
NEVER 0 0%
TOTAL 30 100%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
always sometimes rarely often never
Interpretation
The above table and graph shows that 83% of the employees states that trade unions of
IDCOL conduct general board meetings as and when required.
62
9. Do you think that Trade union leaders should be from the workmen of industry?
AGREE 16 54%
DISAGREE 2 7%

DISAGREE
TOTAL 30 100%
3%
3%
7%
agree
strongly agree
54%
33%
disagree
strongly disagree
nether agree nor disagree
Interpretation
The above table and chart shows that more than 85% of the employees agree that the leaders
of the trade unions should be from the workmen of the company because the workmen are
more aware of the overall profile of a company and as a leader he/she should posses effective
coordination skills.
63
10. Does the company provide Incentives to the employees?
AGREE 10 33%
DISAGREE 2 7%

DISAGREE
TOTAL 30 100%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
agree strongly agree disagree strongly disagree neither agree nor
disagree
Interpretation
The above table and graph shows that more than 80% of the employees agree that the
company provides incentives in cash or in non-monetary award such as gifts in Durga Puja.
The purpose is to influence the behavior of the employees by providing them incentives to
work towards the goals.
64
11. Does the company provide Bonus to the employees?
AGREE 12 40%
STRONGLY AGREE 14 46.7%
DISAGREE 1 3.3%
NEITHER AGREE NOR 2 6.7%

DISAGREE
TOTAL 30 100%
3%
3%
7%
40%
agree
strongly agree
disagree
47%
strongly disagree
Interpretation
The above table and chart shows that more than 80% of the employees agree that the bonus
facilities, in form of cash, are provided by the company to those employees who work 30
days in a month and get salary less than Rs 21,000. Only 6% of the employees whose salary
is more than Rs 21000 such as senior level managers are not eligible for bonus.
65
12. Does the company provide Maternity leave to the female employees and medical
facilities to the other employees?
AGREE 12 40%
DISAGREE 0 0%

DISAGREE
TOTAL 30 100%
60%
50%
40%
30%
20%
10%
0%
disagree
Interpretation
The above table and graph shows that 90% of the employees are satisfied with the medical
facilities given to the employees. The maternity leave of six months is provided to the female
employees in India. And only 10% of the employees have no response to it.
66
13. Are you comfortable with the working hours and sitting arrangements of the
organization?
CATEGORY OF NO. OF RESPONSE PERCENTAGE

RESPONSE
AGREE 9 30%
DISAGREE 2 6.7%

DISAGREE
TOTAL 30 100%
10%
10% 30%
agree
7%
strongly agree
disagree
strongly disagree
43%
Interpretation
The above table and chart shows that nearly 70% of the employees are satisfied with the
working hours and sitting arrangements of the organization and only 17% of the employees
are dissatisfied with the working hours and 10% of the employees have no response to it.
67
14. Does the company provide Rest room and canteen facilities to the employees?
SATISFACTORY 18 60%
HIGHLY SATISFACTORY 7 23.3%
HIGHLY UNSATISFACTORY 2 6.7%

NOR UNSATISFACTORY
TOTAL 30 100%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
satisfactory highly satisfactory unsatisfactory highly neither
unsatisfactory satisfactory nor
unsatisfactory
Interpretation
The above table and graph shows that around 80% of the employees are satisfied with the rest
room and canteen facilities provided by the company and only 10% are dissatisfied because
the executives need a separate canteen facility.
68
14. Are you satisfied with the Safety measures provided by the company?
AGREE 20 66.7%%
DISAGREE 1 3.3%

DISAGREE
TOTAL 30 100%
3%
3% 10%
agree
17%
strongly agree
67% disagree
strongly disagree
Interpretation
The above table and chart shows that more than 80% of the employees are satisfied with the
safety measures provided by the company as per the Factories Act, 1948. The company is
very conscious about the safety of the employees. Only 6% of the employees are not satisfied
as they believe the company should take measures to avoid manmade accidents caused due to
negligence.
69
15. How is the Coordinal relationship between the supervisor and workers?
EXCELLENT 20 66.7%
ABOVE AVERAGE 3 10%
AVERAGE 2 6.7%
BELOW AVERAGE 1 3.3%
TOTAL 30 100%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
excellent above average average below average unsatisfactory
Interpretation
The above table and graph shows that around 70% of the employees are satisfied with the
coordinal relationship between the supervisor and the workers and 13% of the employees are
unsatisfied as they think that the coordinal relationship can be more improved through
effective teamwork of the workers and the supervisor and proper communication between
them.
70
17. How is the Extra-mural facilities provided by the company?
EXCELLENT 18 60%
ABOVE AVERAGE 5 16.7%
AVERAGE 1 3.3%
BELOW AVERAGE 3 10%
UNSATISFACTORY 3 10%
TOTAL 30 100%
10%
10%
3% excellent
above average
17% 60%
average
below average
unsatisfactory
Interpretation
The above table and chart shows that 70% of the employees have rated the extra-mural
facilities as excellent and only 10% of the employees are unsatisfied as there is a scope of
further improvement as the facilities have an immediate impact on the efficiency and
alertness of the workers.
71
18. Do the Employees participate in the decision making in the workplace?
AGREE 5 16.7%
DISAGREE 5 16.7%

DISAGREE
TOTAL 30 100%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
disagree
Interpretation
The above table and graph shows that almost 50% of the employees agree to their
participation in decision-making in the workplace. The organizational culture and leadership
style together determines the decision making in the company. Whereas 26% of the
employees disagree because sharing critical data and information is risky.
72
19. Are you satisfied with the Motivational factors in the organization?
SATISFACTORY 20 66.7%
HIGHLY UNSATISFACTORY 1 3.3%
NEITHER SATISFACTORY NOR 2 6.7%

UNSATISFACTORY
TOTAL 30 100%
3% satisfactory
3%
7%
20% highly satisfactory
67%
unsatisfactory
highly unsatisfactory
neither satisfactory nor

unsatisfactory
Interpretation
The above table and graph shows that more than 80% of the employees are satisfied with the
motivational factors in the organization; only 3% are not satisfied. The most effective
motivational factor is giving rewards to the employees and recognizing their achievement to
inspire the employees to do the best job possible.
73
20. Are the employees aware of the Factories Act, 1948?
AGREE 22 74%
DISAGREE 0 0%

DISAGREE
TOTAL 30 100%
80%
70%
60%
50%
40%
30%
20%
10%
0%
disagree
Interpretation
The above table and graph shows that more than 80% of the employees are aware of the
Factories Act, 1948 and only 13% of the employees have no response to it. The company
provides the safety measure and welfare facilities according to the Factories Act.
74
21. Are the Employees aware of the Payment of Bonus Act, 1965?
AGREE 20 66%
DISAGREE 2 7%

DISAGREE
TOTAL 30 100%
3%
7%
7%
agree
17%
strongly agree
66% disagree
strongly disagree
Interpretation
The above table and chart shows that nearly 70% of its employees agree that they are aware
of the Bonus Act, 1965. The Bonus Act, 1965 provides for the payment of bonus to persons
in certain establishments on the basis of profits or production.
75
22. Are the employees aware of the Industrial Dispute Act, 1947?
AGREE 24 80%
DISAGREE 1 3.3%

DISAGREE
TOTAL 30 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
disagree
Interpretation
The above table and graph shows that 80% of the employees are aware of the industrial
dispute act but only 3% of the employees are not aware. And only 10% of the employees
have no response to it.
76
23. Are the Employees aware of the Contract Labor Act, 1970?
AGREE 12 40%
DISAGREE 3 10%

DISAGREE
TOTAL 30 100%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
disagree
Interpretation
The above table and graph shows that around 80% of the employees are aware of the
Contract Labour Act, 1972 which regulates the employment of contract labour in an
organization and to provide for its abolition.
77
24. How Industrial peace is achieved in the organization?
INCREASING FACILITIES AND 5 16.7%

AMENITIES
INCREASING WAGES AND 3 10%

OTHER MONETARY BENEFITS
THROUGH COUNSELLING 2 6.7%

INDIVISUAL WORKMAN
OTHER PERSONAL FACILITIES 10 33.3%
ALL OF THE ABOVE 10 33.3%
TOTAL 30 100%
increasing facilities and amenities

17%
33%
10% increasing wages and other
monetary benefits
7% counselling indivisual workmen
other personal facilities

33%
all of the above
Interpretation
The above table and chart shows that more than 60% of the employees believe that industrial
peace could be achieved through increasing facilities and amenities, wages or monetary
benefits, counseling individual workmen and other personal facilities.
78
25. Do you think that the present industrial situation demands the emergence of strong
non-political unions?
AGREE 10 33.3%
DISAGREE 3 10%

DISAGREE
TOTAL 30 100%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
disagree
Interpretation
The above table and graph shows that around 70% of the employees agree that the present
industrial situation demands the emergence of strong non-political unions.
79
CHAPTER – 7
FINDINGS, SUGGESTIONS,
CONCLUSION, LIMITATIONS
AND
BIBLIOGRAPHY
80
FINDINGS
 IDCOL has a well-defined organizational structure. There is an appreciable impact of

industrial relations on the work culture.
 Nearly 90% of the employees are satisfied with the working conditions in and around
the company.
 Majority of the employees agree that the Industrial Laws of the company, which
includes The Factories ct, 1948, The Payment of Bonus Act, 1965, The Industrial
Dispute Act, 1947 and The Contract Labour Act, 1970, are employee supportive.
 All the IR laws are implemented according to the government norms.
 Maximum employees are satisfied with the bonus and incentives schemes provided by
IDCOL.
 Around 90% of the employees are satisfied with the medical facilities but the some
employees need adequate medicines and some female employees need crèche
facilities.
 Nearly 70% of the employees are satisfied with the working hours and sitting
arrangements of the company.
 The company provides rest room and canteen facilities to its employees at a
concession rate.
 The company also provides good safety measures for ensuring the employees safety.
 The coordinal relationship between the supervisor and workers is also good and
satisfactory and almost all the employees are motivated by the existing welfare
measures.
81
SUGGESTIONS
 The company should give more emphasis on improving the communication skills
between the top level management and labours.
 The medical facilities should be improved for women and medicines should be
provided adequately.
 The coordinal relationship between the supervisor and the workers should also be
improved.
 Recreational facilities should be provided for the refreshment of its employees like
discount coupons for marketing.
 The performance of the workers of the trade union should be strong and stable.
 The management of the employees should develop an atmosphere of mutual

cooperation and confidence.
 The participation of the workers in the decision making should also be encouraged.
 The policies concerning transfer and promotion should be fair and transparent.
 The company should make efforts to improve the quality of foodstuffs found in the
canteen and the price should be less so that more employees are benefited.
 As work stress is an important barrier in the company, the company should conduct
regular health check-ups of the employees for making them physically and mentally
fit.
82
CONCLUSION
After conducting a detailed study on Industrial relations and labor welfare in IDCOL, it is
being analyzed that Industrial progress is impossible without cooperation of labours and
harmonious relationships.
Therefore, it is in the interest of all to create and maintain good relations between employees
(labor) and employers (management).
Labour unions should persuade their members to work for the common objectives of the
organization. Both the management and the unions should have faith in collective bargaining
and other peaceful methods of settling disputes.
The management of IDCOL sincerely implements the settlements reached with the trade
unions. The agreements between the management and the unions are enforced properly. If the
agreements are not implemented then both the union and management will stop trusting each
other. An environment of uncertainty is created. To avoid this, efforts should be made at both
ends to ensure the follow up of the agreements.
The relationships employers and workers have with the organization are formed to promote
their respective interests at all levels. Industrial relations also includes the processes through
which these relationships are expressed and the management of conflict between employers,
workers and trade unions, when it arises.
The very logic behind providing welfare schemes is to create efficient, healthy, loyal and
satisfied labor force for the organization. The purpose of providing such facilities is to make
their work life better and also to raise their standard of living.
83
LIMITATIONS
 There was a limited time which was not sufficient for analysis and findings.
 It was difficult to get the questionnaire filled by all the employees at all levels.
 Some information given by the respondents may not be honest and accurate.
 The respondents may not be aware of some questions due to lack of knowledge on the
subject.
 Limited sample size was taken due to limited time of five weeks.
84
BIBLIOGRAPHY
 Industrial Relations – A way to improve productivity by Deepak Mahadev
 From Industrial Relations to Employment Relations with Focus on Employee

Relations by Dr. Krume Nikoloski, Janka Dimitrova, Blagica Koleva, Emilija Miteva
Kacarski
 Industrial relations and the employment relationship by Keith Sisson
 Melbourne and Industrial Relation Practices and Outcomes in Australian Workplace

by Joanna Loundes
 Does Industrial Relations Policy Affect Productivity? By David Peetz
 A study on labor welfare measures and social security in IT industries by B.Rajkuar
 A study on labor welfare measures in the corporate sector by Meenakshi Yadav and
Anil kumar
 A Study on Labour Welfare Measures in Tamil Nadu State Transport Corporation by

M. Senthil Kumar
 Labor welfare measures in cement industries in india by M. Rama Satyanarayana and

Dr.R.Jayaprakash Reddy
 Labour Welfare Measures in Indian Chemical Industry by R. Rajendran and Dr. K.

Rajesh Kumar
 Company’s website address www.idcorissa.com
 www.industrialrelation.com
 Searched IR laws implemented by government
85
CHAPTER – 8
ANNEXURE
86
QUESTIONNAIRE
Dear SIR/MADAM,
I, SWATEE MITRA, student of B.J.B Autonomous College, Department of

IMBA, Bhubaneswar, presently doing a project on “INDUSTRIAL REALTIONS AND
LABOUR WELFARE” in IDCOL. All information given by you will be confidential and
will be used for research. Please give your assessment and tick the appropriate answers.
Name :
Gender : [ ]M [ ]F
Age :
Educational qualification :
Department :
Designation :
Year of service in IDCOL :
1. Do the industrial relations in IDCOL have a lot of impact on the work culture of the
company?
Agree [ ] Strongly Agree [ ] Disagree [ ]
Strongly Disagree [ ] Neither Agree Nor Disagree [ ]
2. How are the working conditions in and around company?
Satisfactory [ ] Highly satisfactory [ ] Unsatisfactory [ ]
Highly unsatisfactory [ ] Neither satisfactory nor unsatisfactory [ ]
3. Are the IR laws of the company employee supportive ?
Agree [ ] Strongly agree [ ] Disagree [ ]
Strongly disagree [ ] Neither agree nor disagree [ ]
4. Is there any trade union in your company?
Yes [ ] No [ ]
87
5. Are you a member of trade union?
Yes [ ] No [ ]
6. How is the performance of the workers of the union in the corporation?
7. Does the trade union affect the company?
Strongly disagree [ ] Neither agree nor disagree[ ]
8. Does the union hold General Body meetings periodically?
Always [ ] Sometimes [ ] Rarely [ ]
Often [ ] Never [ ]
9. Do you think that trade union leaders should be from among the workmen of the
industry concerned?
10. Does the company provide incentives to the employees?
88
11. Does the company provide bonus to the employees?

12. Does the company provide maternity leave to female employees and medical benefits
to the employees?
13. Are you comfortable with the working hours and sitting arrangements of the
organisation?
14. Does the company provide rest room and canteen facilities to the employees?
Agree [ ] Strongly Agree [ ] Strongly Disagree [ ]
Disagree [ ] Neither Agree Nor Disagree [ ]
15. Are you satisfied with the safety measures provided by the company?
Highly unsatisfactory [ ] Neither satisfactory or unsatisfactory [ ]
16. How is the coordinal relationship with the supervisor and the other workers?
Excellent [ ] Above average [ ] Average [ ]
Below average [ ] Unsatisfactory [ ]
89
17. How is the extra-mural facility provided by the company?
Excellent [ ] Above average [ ] Average [ ]
Below average [ ] Unsatisfactory [ ]
18. Do the employees participate in the decision making in the work place?
19. Are you satisfied with the motivational factors in the organization ?

20. Are the employees aware of the Factories Act 1948 ?
Agree [ ] Strongly agree[ ] Disagree [ ]
Strongly disagree [ ] Neither agree nor Disagree[ ]
21. Are you aware about the Payment of Bonus Act, 1965 ?
22. Are the employees aware about Industrial Dispute Act, 1947?
Strongly agree [ ] Neither agree nor disagree [ ]
90
23. Are the employees aware of the Contract Labour Act, 1970?
24. Industrial peace in your organisation is achieved through :-
i) Increasing facility and amenities

ii) Increasing wages / other monetary benefits
iii) Through counselling individual workman
iv) Other personal facilities
v) All of the above
25. Do you think present industrial situation demands the emergence of strong non-
political unions?
91

Chapter-1: Industrial Relations and Labour Welfare

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Chapter-1: Industrial Relations and Labour Welfare

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Industrial Relations and Labour Welfare

INDUSTRIAL RELATIONS AND LABOUR WELFARE

OBJECTIVES OF THE SURVEY

 To find out the work culture of IDCOL.

 To find out the different Trade unions and their activities in

 To assess the different Industrial Relations Laws adopted by

 To find out the different safety measures undertaken by IDCOL

INDUSTRIAL RELATIONS – A WAY TO IMPROVE PRODUCTIVITY

International Journal of Sciences: Basic and Applied Research (IJSBAR)

Industrial relations and the employment relationship

Melbourne and Industrial Relation Practices and Outcomes in Australian

Does Industrial Relations Policy Affect Productivity?

A STUDY ON LABOUR WELFARE MEASURES AND SOCIAL

A STUDY OF LABOUR WELFARE MEASURES IN

A Study on Labour Welfare Measures in Tamil Nadu State Transport

LABOUR WELFARE MEASURES IN CEMENT INDUSTRIES IN

Labour Welfare Measures in Indian Chemical Industry

Conclusion of the Literature review

A constant review or follow up of results of the industrial relations programmed is essential

1. IDCOL KALINGA IRON WORKS LTD. (IKIWL) located at Barbil engaged in

 To achieve and sustain excellence in quality of products, process and systems by

 To enhance brand values of the products of IDCOL group.

 To establish / promote industries including modernization / expansion of existing

 Teamwork and co-operation is an important aspect of the work ethics at IDCOL. We

WORK CULTURE OF IDCOL

Corporate Social Responsibility (CSR):-

The corporation regularly contributes for the peripheral developmental activities in

 IDCOL KALINGA IRON WORKS LTD. (IKIWL) - It is a wholly Owned

 IDCOL FERRO CHROME AND ALLOYS LTD. (IFCAL) - It is a wholly

 IDCOL SOFTWARE LIMITED - It is a public undertaking incorporated on 26th

ready-made (non-customized) software, operating systems software, and business &

CATEGORY IFCAL IKWIL TOTAL

REGULAR 293 793 1086

INDIRECT (casual, supply, contract 1197 972 2169

TOTAL 1490 1765 3255

Features of Industrial Relations:-

Objectives of Industrial Relations:-

The main aspects of Industrial Relations are:-

Industrial peace could be maintained by:-

Effects of poor Industrial Relations:-

Importance of Industrial Relations:-

Approaches to Industrial Relations:-

The following are the three popular approaches to industrial relations -

II. Pluralist Approach:

III. Marxist Approach:

Problems of Industrial Relations in public sector:-

 Industrial relations - Industrial Relations is a developing and dynamic concept and

 Surplus labour - This problem is the outcome of indiscriminate recruitment on

 Political and bureaucratic influence - Public enterprises are highly prone to be

Industrial relations department of IDCOL:-

The key responsibilities of the IR department are:

 To maintain smooth relations with all the employees.

The functions of the IR staffs are:

INDUSTRIAL RELATIONS LAWS ADOPTED BY IDCOL:-

* Effective measures should be taken to prevent inhalation of dust to prevent

* In every factory effective arrangements should be made to provide and maintain at

* In every factory sufficient latrine and urinal accommodation of prescribed types

* In every factory there should be provided a sufficient number of spittoons in

* No young person shall be employed on dangerous machinery, unless he is fully

* Sufficient precautions should be taken with regard to self-acting machines to avoid

* Hoists and Lifts in a factory should be periodically inspected by the Competent

* Lifting Machines, Chains, Ropes and Lifting Tackles in a factory should be

* Necessary protective equipment should be provided to protect the eyes of the