9.

4 Industrialt Relations and Labour Law'S

OBJECTIVES OF LABOUR WELFARE

rela-
Labour welfare activities are a reflection of the nature of industrial Spotlight
tions of a nation. The main objective of such activities
is
to improve the Labour
Labour weltare activities
of an enterprise. be guided
be t
guided by
productivity
condition of workers, and thereby enhancemorale humanita
and preserve efficiency utilitarian or paternals ar
Oner objectives are to improve employee
level of workers by providing a richer quality of life and improved stan approach.
activities directly or
dard of living to workers and their families. Welfare industries. Welfare measures conte
aim at reducing absenteeism and labour turnover in
to the maintenan e of îndustrial peace (Mamoria and Mamoria, 1980) and enhance the imapentribue
indirectly
of aa
employer (Thomas, 1990); this induces many employers to embark on labour welfare activities
There may be three approaches that underlie the welfare activities taken up by employers. Te

are discussed as follows:

Humanitarian approach: This may viewed as a sense of sOCial responsibility of emplover
towards workers and concern for providing such amenities as would help workers live a li.
with frugal level of comfort.
Utilitarian approach: Under utilitarian approach expenditure on welfare amenities
investmentthat would preserve employee efficiency for the benefit of an organisation.
Paternalistic approach: The paternalistic approach propagates an employer as theguardian
workers, who undertakes welfare activities due to a sense of responsibility towards them and
to protect them.

THEORIES OF LABOUR WELFARE

Several theories have been proposed to explain how and why labour welfare measures are undertaken
Some of the important theories are briefed here.
Police Theory: This theory assumes that owners and managers of industrial undertakings have
a lot of wealth and power, which
they use for their own benefits. They overlook and neglet
the welfare of workers, and even exploit for their own
workers advantage. The State must ena
legislations that would coerce employers to provide for workers' welfare in the form of minimum
wages, healthcare, good working conditions, etc. The basis for
taking
fear and compliance. up welfare activiues
Philanthropic Theory: Humanitarian by approach, this theory is based on the assumption
welfare measures are undertaken with the t
objective of providing benefits to workers for img
ing their condition. Many philanthropists believed that
ultimately beneficial for industry. investment in labour welfare w"
Paternalistic or Trusteeship Theory: This theory is
approach and proposes that the owner of an industrialpaternalistic
undertaking
in
Spotlight
is the guardian or "father of all the
workers. The
employer owns The philanthropic theo
the property and profits which he uses for the benefit of workers assumes that welfare measuie
and the society whole. Due to lack of
as a
are undertaken with the objectne
little about their rights. Though not awareness, workers know
care of the interests of workers.
bound, the employer must
take of providing benefits to worke
Mahatma Gandhi TOr improving their condition.
in the trusteeship theory. strongly believed
. Placating Theory: The
placating theory believes that as
their rights, they are adoptin8 a mintant attitude to workers
are becoming
more and

pressurise employers for higher w**

 iproved working conditions. Given such situations, undertaking welfare measures can appease
woers and peaceful industrial relations can be attained.
Pubc Relations Theory: This theory proposes that welfare activities of an industrial undertak-
ing not only help in improving relations between workers and employer, but also in enhancing
public relations. When labour welfare measures of an undertaking are publicised, they create
goodwill in the society. Sales and profits of such an establishment may go up. Thus it gives
two-way benefits to employers: increased profits and better industrial relations. This theory may
be said to be based on the utilitarian approach.
Functional Theory: Utilitarian by approach, this theory rests on the assumption that welfare
measures help to preserve the efficiency and productivity of workers. Also known as the effñ-
ciency theory, the functional theory propagates the essentiality of collaboration between union
and management with the common objective of increasing production, as such a collaboration
would benefit employers in getting higher profits and workers in earning higher wages.
Religious Theory: This theory is based on the belief that doing good deeds is an investment.
In this context, investing in labour welfare is a good deed that would reap fruits in future. Pain
and problems are a result of sins done in the past. Providing benefits to workers in the form of
atonement of sins.
canteens, health benefits, crèches, etc. can also help in