23. Social Security.-The Employees' State Insurance Scheme has mow been implemented in more than a hundred centres covering about 17 lakh industrial workers. During the Third Plan period, the scheme will be extended to all centres where there is concentration of five hundred or more industrial workers, bringing the total coverage to about 30 lakh workers. Medical care and treatment including hospital- isation and midwifery services will be extended to the families of insured persons in all centres where the scheme is in operation. The preventive aspects will also receive greater attention. A great deal of leeway remains to be made up in the provision of separate hospital accommodation for the insured workers. The construction of new hospi- tals and dispensaries will be speeded up so as to add at least 6000 hospital beds during the period of the Third Plan.
24. The Employees' Provident Fund Scheme, which now covers 58 industries/establishments will be further extended. The employment limit for coverage under the scheme has already been lowered from 50 to 20. The Provident Fund Organisation has completed a survey of other industries and during the Third Plan the scheme will be extended to such industries among these as are able to bear the financial burden. The proposals to enhance the rate of contribution to the provident fund from 6 1/4 to 8 1/3 per cent has been already accepted by Government in principle, but in view of the varying capacity of different industries, a Technical Committee has been constituted to ascertain which industries are not capable of bearing the additional liability. It is also proposed to bring employees of commercial establishments within the purview of the scheme.
25. A Study Group on Social Security had recommended the integration of existing social security schemes and the conversion of the various Provident Fund schemes into a statutory scheme for old age, invalidity and survivorship pension-cum-gratuity. Urgent consideration has, now to be given to the various aspects of the question of integration, so that the entire scheme takes shape as early as possible.
26. The social security approach has so far extended mainly to wage earners in organised industry. There are some groups whose condition calls for closer attention on the part of the community. In the past, on account of the traditional values associated with the small community and the joint family, a great deal, of relief was available to those who were unable to provide for themselves. For a long period
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to come, in one form or another, the community. the group and the family must continue to be the main sources of assistance. Progres- sively, however, the State and local bodies, both urban and rural, will need to participate in schemes undertaken by way of social as- sistance and social security. Even at this stage, it would be desira- ble to make a modest beginning in respect of three groups of persons- the physically handicapped, old persons unable to work, and women and children where they are altogether lacking in the means of liveli- hood and support. Assistance for them will have to come from volun- tary and charitable organisations, municipal bodies, Panchayat Samitis and panchayats and voluntary organisations. With a view to enabling these organisations to develop their activities with the help of local communities, and giving them a little support, it might be useful, to constitute a small relief and assistance fund. Details of the propos- al should be considered further in cooperation with States and volun- tary organisations.
WORKING CONDITIONS, SAFETY AND WELFARE 27. Under various laws, a comprehensive code has been developed to ensure satisfactory working conditions, safety of person and the provision of a variety of facilities to promote the welfare of the workers. Steps, however, have to be taken to make the implementation of the statutory provisions more effective. The improvement of work- ing conditions call result in greater productive efficiency on the part of the workers. Every effort should be made to keep abreast of the modern developments in these and various other aspects relating to the human factor in industry. Towards this end, the activities of the the Central Labour Institutes and the three Regional Labour Insti- tutes should be developed to provide a comprehensive service to indus- try through training, education and research. The problem of safety should receive greater attention. A Standing Advisory Committee will be set up to promote measures for bringing down the incidence of accidents in factories. State Governments have to strengthen the inspectorates provided for the administration of factory laws. Both in factories and in mines, a great deal of scope remains for reducing hazards by education of the workers in safety-consciousness and the setting up of safety committees. Steps are being taken in pursuance of the recommendations of the Mines Safety Conference and its various committees, and intensive studies are in progress concerning various aspects or the problem of safety in all mines. A National Mine Safety Council is proposed to be set up regarding safety education and propa- ganda in the mining industry In view of the rapid expansion of the output of mines and the increase in depths and mechanisation to which it leads, it has become imperative that there should be greater vigi- lance and stricter enforcement of rules and regulations. The building and construction industry is a similar field ill which rapid pro- grammes of expansion call for greater attention to safety standards. while the Central and State Public Works Departments are among the major employing authorities, a significant amount of building and construction work is in private hands. Working conditions at con- struction sites are very different from those in factories, primarily because of the purely "temporary" basis upon which most of the work is organised. The question of separate safety legislation for building and construction workers is under examination. Industrial hygiene surveys undertaken so far have disclosed that exposure to occupational disease has been increasing. The surveys Should cover the remaining industries and prompt remedial action should be taken in each case. Special welfare funds have been constituted for financing welfare measures for workers in the coal and mica mining industries. They are meeting very real needs. Similar funds are proposed to be created for workers in the manganese and iron ore mines.
28. Workers' Cooperatives. Some progress has been made in the formation of miners' cooperative societies through the help of the Coal Mines Welfare Fund Organisation. A few workers' cooperative housing societies also exist in some industrial centres. On the whole cooperation has not made much headway so far as the working class is concerned. It will derive immense benefit from the extension of cooperative activity in various forms. Campaigns should be undertaken for setting up cooperative credit societies and cooperative consumers stores. it is hoped that trade unions and voluntary organisations will evince greater interest and initiative in running such cooperatives.
29. Industrial Housing.-Although the Subsidised Industrial Housing Scheme has been in operation for some years, the situation in respect of the housing of industrial workers has not improved and, in several centres, it has even deteriorated. The present approach to the problem has been found to be wholly inadequate and new ways will have to be devised immediately so that the workers may be assured of minimum standards in respect of living conditions within a reasonable period in the interest of their health and efficiency. Towards the same end, facilities for recreation and sports will have to be greatly enlarged for all sections of the workers.
30. Other Problems.-With the help of studies which are now in progress regarding contract labour, it will be possible to select occupations in which contract labour will not be permitted and, where abolition is not feasible, to decide on the steps which can be taken to safeguard fully the interests of contract workers. While consider- able improvement has occurred in the living and working conditions of employees in large and organised industries owing both to State activ- ity and trade union action, a great deal of leeway remains to be made up in respect of the workers engaged in agriculture and unorganised industries. Their conditions should become,
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a matter of special concern to the Government as well as to the organ- isations of labour.
EMPLOYMENT AND TRAINING SCHEMES 31. A large increase in the demand for craftsmen will have to be met during the Third Plan. By the end of the Second Plan period, there were 166 industrial training institutes with 42,000 training seats. It is intended to increase the, number of these institutes to a total of 318 by the end of the Third Plan with an additional 58,000 seats, raising the training capacity to 1 lakh craftsmen and an esti- mated out-turn of 2 lakh craftsmen during the Plan period. Adequate in-plant training facilities will also be provided. Separate facili- ties have been organised for the training of educated youth in the techiques of management so that such of them as have the inclination and aptitude for undertaking business responsibilities on their own or through cooperatives, will be provided with wider employment opportu- nities.
32. The capacity of the three existing Central Training Insti- tutes for Craft Instructors will be raised from 512 to 976 seats and three other Central Institutes will be set up during the Third Plan period. As against 2000 in the Second Plan, 7800 instructors will be trained during the Third Plan. Separate arrangements are being made to train women craft instructors.
33. During the Second Plan, little progress has been registered under the apprenticeship training scheme, which has so far been car- ried out on a voluntary basis. It has now been decided to place the scheme on a compulsory footing and a Bill on the subject is proposed to be introduced in Parliament. A target of 14,000 seats has been set for the apprenticeship training programme. The target for the pro- gramme of evening classes for industrial workers is to raise the present 3,000 seats to 15,000 seats during the Third Plan.
34. One hundred employment exchanges will be opened during the Third Plan with the object of providing at least one exchange in each district. It is also intended to increase the number of rural employ- ment exchanges and strengthen the organisation of the State Employment Directorates. An effective start has been made with the Employment Market Information programme; the scheme now covers all public sector establishments and private sector units in 150 areas. The scheme will be extended to all areas covered by employment exchanges. Similar provision has been made for expanding the programme of Youth Employ- ment Service. Youth Counselling and collection and analysis of occu- pation information undertaken by the exchanges.
35. Closures of establishments have occurred to a varying extent in certain industries during the last few years. Where unfavourable market conditions develop, marginal units are affected severely unless steps are taken in advance to safeguard their position. In several cases, the collapse follows a prolonged period of neglect and misman- agement. The workers, who are thrown out of employment, often fail to find avenues for absorption in other units in the same industry. It often happens that besides losing their jobs these workers are de- prived of arrears of wages and even the collections in respect of Provident Fund or Employees' State Insurance cannot be recovered from the employers. As a result, the workers have to face acute distress.
36. It becomes evident that having regard to the human aspect, and for the purpose of preventing a sense of demoralisation among other workers, steps will have to be taken to afford a measure of relief and assistance to retrenched workers who are thus reduced to a state of helplessness. In a fully developed form such a scheme has to be on a contributory basis, with adequate support from the Government, and besides assistance and relief to the retrenched workers, its functions might include :
(1) help to industrial units which are temporarily in financial difficulties but have otherwise a reputation for efficiency and good management;
(2) taking over units for temporary management; and
(3) financing, in suitable cases, co-operative ven- tures of workers threatened by closures.
A start has, however, to be made immediately, and it has now been decided to draw up a scheme of a limited scope to furnish such assist- ance as is practicable in the existing circumstances. This will be in the form of loans to tide over the immediate difficulties and facili- ties for retraining for alternative occupations and for transfer to other places where work may be available. A small financial provision has been made in the Plan for this purpose.
PRODUCTIVITY 37. Industry is being called upon to meet, as rapidly as possi- ble, the claims on behalf of the workers for a living wage, better living and working conditions, the needed volume of employment oppor- tunities and a fuller measure of social security. It must yield a reasonable return on capital and provide for capital formation on an adequate scale. Neither the exercise of their organised strength in industrial conflicts, nor laws and the intervention of the State can help the workers much in realising their aspirations. Their gains can arise only out of the strength and dynamism of the economy, the only enduring basis of which is a rising level of productivity. No in- crease in profits which does not come out of improvements in produc- tivity but has its origin in current scarcity and the stresses of development, can be regarded as a sign of prosperity. Productivity has many facets and it suffers because of the one-sided and rigid approach which is frequently adopted in dealing
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with it both by the employers and the workers. Rationalisation of effort in every direction is the true basis of productivity, The term has often been wrongly associated with increase in workloads and added strain on workers in order to swell the volume of private gains. Large gains in productivity and an appreciable reduction in unit costs can be secured in many cases without causing any detriment to the health of the workers and without incurring any large outlays. Greater responsibility in this respect rests on the management which should provide the most efficient equipment, correct conditions and methods of work, adequate training and suitable psychological and material incentives for the workers. For several purposes, it will be more helpful to take the working group as unit of activity rather than the individual worker, and the scheme of incentives should be aimed, at the group no less than at the individual. The industry, trade unions and the Government should together ensure that every worker whether employed already or freshly recruited receives adequate training to acquire the requisite skill and efficiency. By proper organisation, it should be possible to supply the essential needs of the workers at reasonable cost without unduly increasing the burden on industry. Management has to give the lead by bringing about the maximum rationalisation in its own sphere and eliminating all unjustifiable practices which at present act as disincentives in drawing the best out of the workers. The vicious circle of poverty and unemployment and low productivity can be broken only by a tremendous stress on the maximum possible contribution being made by all the participants in the processes of production. For the workers no real advance in their standard of living is possible without a steady increase in productivity, because any increase in wages generally, beyond certain narrow limits, would otherwise be nullified by a rise in prices. Workers have, therefore, to insist on and not resist the progress of rationalisation in their own interest and in the larger interest of the country.
38. The pace of development as well as the volume of employment rests to a considerable extent on the capacity to export in the face of increasing competition. This can be achieved primarily through higher productivity and a measure of sacrifice by the employer, the worker and the rest of the community.
39. Vital reforms cannot be secured without the cooperation and goodwill of the workers. They can be brought about by creating a proper understanding and the provision of the necessary safeguards in the interests of the workers. The greatest anxiety experienced by the workers is with regard to the stability of employment. The agreement regarding rationalisation at the national level guarantees to the workers security in their existing jobs. The scope for rationalisa- tion can be considerably extended if effective arrangements are made for retraining and transfer to other jobs on the basis of the workers' consent. The workers can be expected to respond. A favourable envi- ronment for this should be created. This process will be helped greatly by the agreement reached at a seminar organised by the Nation- al Productivity Council, which provides an initial basis for coopera- tion for higher productivity. The formulation of the Code of Effi- ciency and Welfare will now be taken up for consideration by the Indian Labour Conference. Greater attention will also have to be given to the training of management at various levels in the important aspects of employer-employee relations. Systematic studies will have to be undertaken for determining the individual wage differentials and the manner in which wages should be linked to productivity. In this connection, the work of the Training-Within-Industry Centre in introducing T.W.I. and other techniques for improving the managerial and supervisory skills and that of the Productivity Centre in training in the higher productivity techniques and in carrying out field inves- tigations like job evaluation and work load studies have helped in stimulating the interest of both management and workers. Further development in this field can be of considerable assistance in evolv- ing rational wage policies.
RESEARCH 40. Government undertakes special programmes of studies and surveys of aspects such as working and living conditions, family budgets, wage census, index of earnings, patterns of absenteeism, productivity, etc. There will be further extension of this activity during the period of the Third Five Year Plan.
41. The inadequacy of reliable data on labour matters available at present and the need for sustained and objective research on a systematic basis were discussed at a Conference on Labour Research held in September, 1960. It was agreed that, to begin with, a small Central Committee for coordinating labour research, comprising, repre- sentatives of Government, employers' and workers' organisations, universities and institutions interested in the subject may be consti- tuted. It should be the function of this body to make a survey of the existing agencies in the field and their physical resources, identify the gaps, explore possibilities of filling up the same, determine priorities, allocate research schemes to the various agencies in order to avoid overlapping, stimulate research work in the labour field and recommend means of utilising the results of such research. It is intended to provide for research in labour matters some new institu- tional facilities outside the set-up of the Government. It will have the association and assistance of organisations of workers and employ- ers as well as others.