Industrial Relations (F010503TA) Unit 4 Notes PDF

UNIT- IV : THE FACTORIES ACT 1948 HISTORICAL BACKGROUND:  Factory Act is a central legislation which came into existence in 1881.  It regulates the working conditions of the workers and lays down various provisions which are related to health, safety, working conditions, hazardous...

UNIT- IV : THE FACTORIES ACT 1948 HISTORICAL BACKGROUND:  Factory Act is a central legislation which came into existence in 1881.  It regulates the working conditions of the workers and lays down various provisions which are related to health, safety, working conditions, hazardous processes of the workers.  It also provides procedures for penalties in case of any contravention of provisions of factory Act.  The Act was amended in the year 1891, 1911, 1922, 1934, 1948, 1976 and 1987. It was extensively amended in the year 1948.  The Factory Act 1948 is more comprehensive than the previous act and focuses mainly on health, safety, welfare of the workers inside factories, working hours, minimum age to work, leave with pay etc.  This act is based on the provisions which are provided under Factory Act of Great Britain passed in the year 1937.  Today however factory and industry are understood to be interchangeable. But this is incorrect.  Industry is a steady and systematic activity in which trade is organized whereas factory refers to the place where such activities are carried on.  The entire day to day activity taking place in the factory is governed by the Factory Act 1948.  This act extends to the whole of India including Jammu & Kashmir.  The Bhopal Gas Tragedy in 1984 has made the people aware of the pollution and hazards of factories and therefore necessitated the government to take timely steps facilitating amendments in the act. Factory Act is applied to all factories employing 10 persons or more when it uses power and 20 persons when no power is used.  The main provision of the act are safety, guarding of machines, health and cleanliness, drinking water, washing and latrine facilities, lunch rooms and rest rooms, sitting arrangements, first aid and dispensary facilities in factories employing more than 500 workmen, creches where more than 50 women are employed, welfare officer where more than 500 workmen are employed, spittoons, holidays with wages at the rate of one day for every 20 days worked, weekly hours 48 for adults and 27 for younger persons, regulations regarding young persons, rate of payment for overtime work, rest for half an hour after maximum of 5 hours of work, number of hours of work, and weekly holiday.  Since there are many changes and developments related to safety and health the need for effective implementations of various provisions duly amended have been felt.  The ILO conventions have also necessitated the means for amendments in the Factory act.  In order to study the administration, enforcement and implementation of Factory Act several Labour and employment statistics are collected by the central and state government and disseminated by the labour bureau.  th the help of these statistics we can analyze the current scenario of the implementation of the Factory Act, the employment position, the women workers employment with respect to their male counterparts, the hazardous processes, the number of fatal accidents, and the inspection being carried out along with prosecution and penalty and the safety measures undertaken.  This puts out a picture for further development and enhancement related to all these parameters in the provisions mentioned in the Factory act and thus calls for amendments. ⚫ The history of Factory Act is more than 100 years old. ⚫ As the process of modern industrialization came to India almost a century after its beginning in Great Britain, the beginnings of factory legislation had to wait for the same period of time. ⚫ The first cotton textile factory was set up at Bombay as early as 1854. ⚫ The pace was accelerated & by 1870 a large number of factories were setup at Bombay, Nagpur, Kanpur & Madras. ⚫ The first Iron & Steelwork started at Bihar in 1873. Jute spinning mill were started at Rishra in 1855. ⚫ By 1881 there were 5000 power looms at work in Bengal. In 1870, Bally Paper mills were setup at Hoogly & several tanning & leather factories were also setup at Kanpur which led to factory establishment existence in India. ⚫ This brought factories evils such as employment of women & children at tender age, excessive hours of work & hazardous & insanitary working conditions. ⚫ eat need for protective labour legislations to fight the conditions of workers (specially women & children) was felt as early as 1850, but nothing was done by British Government (By this a series of Factories Act was already passed in Great Britain). Occasional notes of dissatisfaction were raised by philanthropist which were led by Sorabjee Shahpurjee Bengali. ⚫ In 1878, Sasipad Bannerjee laid the foundation of Bara Bazar organization for the welfare of jute mill workers. There is also a record of a strike in Nagpur Empress Mill in 1877. ⚫ The industrial revolution that took place between 1760 and 1820 in England changed the techniques of production. Many mechanical inventions then came in quick succession such as the invention of steam engine enabled man to drive the machines by power. ⚫ With the industrial revolution, capital became an important factor of production with the technological advances; the employment in factories rose up tremendously. ⚫ Two distinct classes emerged namely the capitalist class and the working class. ⚫ The workers were largely untrained, uneducated, and unorganized and the capitalists of ‘hard grind’ nature exploited the workers and paid lower wages, working conditions remained unhygienic. There was a total lack of welfare measures. ⚫ Thus protective labour legislations was embodied in Factory Act 1881. Thus joint efforts of philanthropist, social workers in India & Lancashire manufacturers in Great Britain resulted in Factory Act 1881 (though with different considerations). ⚫ The Act of 1881 was inadequate. Narayan Meghaji Lokhandey, a disciple of Mahatma Jyotiba Phule, emerged as the first labour leader in India. He was a storekeeper in a textile mill and devoted his whole life to the cause of labour movement. ⚫ He presented a memorandum signed by 5300 workers and presented it to the Factory Commission appointed in 1884. ⚫ Factory Commission was appointed by the Government of India in 1890. ⚫ An act was passed in 1891 on the basis of the recommendation of this commission, whereby the definition of Factory was amended to include premises in which fifty persons or more were employed. ⚫ The Local Governments were empowered to extend it to premises in which twenty persons or more were employed. It included provisions for women employees and working hours for them were limited with a provision for thirty minute's interval for rest. ⚫ The Factory act was amended from time to time. The First World War and the Russian Revolution of 1917 affected the labour movement. ⚫ International Labour Organization (ILO) was set up in 1919. ⚫ It was later amended twice in the year 1923 and 1926. On the basis of recommendations made by the Royal Commission on Labour 1929, the Act was thoroughly revised and redrafted in 1934.  DEFINITION – Factory: According to the Factories Act,1948, under section 2(m) a ‘Factory' means "any premises including the precincts thereof (i) whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or (ii) whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on; but this does not include a mine subject to the operation of the Mines Act, 1952 , or a mobile unit belonging to the armed forces of the union, a railway running shed or a hotel, restaurant or eating place." Manufacturing Process: Sec.2(k) ‘Manufacturing process’ means “any process for (i) making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal, (ii) pumping oil, water, sewage or any other substance; or (iii) generating, transforming or transmitting power; or (iv) composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; or (v) constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or (vi) preserving or storing any article in cold storage”.  Worker : Sec.2(l) ‘Worker’ means ‘‘a person employed ( directly or by or through any agency including a contractor ), with or without the knowledge of the principal employer, whether for remuneration or not in any manufacturing process or in cleaning any part of the machinery or premises used for a manufacturing process or in any other kind of work incidental to or connected with the manufacturing process or the subject of the manufacturing process’’ ( but does not include any member of the armed forces of the Union ). Occupier: Sec.2(n) ‘Occupier’ of a factory means “the person who has ultimate control over the affairs of the factory ; and (i) in the case of a firm or other association of individuals, any one of the individual partners or members thereof shall be deemed to be the occupier; (ii) in the case of a company, any one of the directors shall be deemed to be the occupier; (iii) in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority, the person or persons appointed to manage the affairs of the factory shall be deemed to be the occupier”. Chapter III of Section11 to 20 of the Factories Act, 1948, deals with the provisions relating to the health of the workers in a factory. Provisions regarding health : Cleanliness (sec.11) Disposal of Wastes & Effluents (sec.12) Ventilations & Temperature (sec.13) Dust & Fumes (sec.14) Artificial Humidification (sec. 15) Overcrowding (sec.16) Lighting (sec.17) Drinking Water (sec.18) Latrines & Urinals (sec.19) Spittoons (sec.20) Cleanliness (Sec.11)  Accumulation of dirt shall be removed daily.  The floor of every workroom shall be cleaned at least once in a week.  All inside walls, partitions, ceilings must be repainted or varnished once in every five years.  All doors and windows frames other wooden or metallic framework and shutters shall be kept painted or varnished. Disposal of Wastes & Effluents (Sec.12)  Every occupier of a factory shall make effective arrangements for the treatment of wastes and effluents due to the manufacturing process carried on in the factory so as to render them innocuous and for their disposal. Ventilations & Temperature (Sec.13)  Adequate ventilation by the circulation of fresh air.  Reasonable temperature must be maintained. Dust and Fume (Sec.14)  The exhaust fumes of internal combustions engines must be conducted outside of the factory.  Injurious or offensive dust and fumes must be inhaled or accumulated. Artificial humidification (Sec.15) (1) In respect of all factories in which the humidity of the air is artificially increased, the State Government may make rules,  prescribing standards of humidification;  regulating the methods used for artificially increasing the humidity of the air;  directing prescribed tests for determining the humidity of the air to be correctly carried out and recorded;  prescribing methods to be adopted for securing adequate ventilation and cooling of the air in the workrooms. (2) In any factory in which the humidity of the air is artificially increased, the water used for the purpose shall be taken from a public supply, or other source of drinking water, or shall he effectively purified before it is so used. For example: In certain industries like cotton, textile, cigarette, etc., higher degree of humidity is required for carrying out the manufacturing process. For this purpose, humidity of the air is artificially increased. This increase or decrease in humidity adversely affects the health of workers. Overcrowding (Sec.16)  The overcrowding affects the workmen not only in the discharge of duties but also their health.  The working space should be 9.9 cubic meters of space per worker in every workroom before the commencement of this Act.  And after the commencement of this Act, the space per worker is 14.2 cubic meter.  Roof shall be 5 mts (14ft.) above the floor. Lighting (Sec.17)  There shall be provided and maintained sufficient and suitable lighting, natural or artificial, or both, in every part of the factory.  In every factory all glazed windows and skylights be used and workrooms shall be kept clean on both the inner and outer surface.  In every factory effective provision shall, so far as is practicable, be made for the prevention of glare, either directly from a source of light or by reflection from a smooth or polished surface;  Drinking Water (Sec.18)  The place of drinking water shall not be situated within six meters of any washing place, urinal, spittoon, open drain or any source of contamination.  Effective arrangements shall be made to provide a sufficient supply of wholesome drinking water.  Latrines and Urinals (Sec.19)  Sufficient latrine and urinal accommodation of prescribed types shall be provided and conveniently situated to make them accessible to workers at all times while they are at the factory.  It should be adequately lighted, ventilated.  Latrines and urinals must be kept in a clean and sanitary condition.  Spittoons (Sec.20)  There should be sufficient number of spittoons in convenient place.  It must be maintained in a clean and hygienic condition.  No persons shall spit expect in the spittoons. INTRODUCTION: LABOUR AND WELFARE:  The term ‘Labour Welfare’ refers to the facilities provided to workers in and outside the factory premises such as canteens, rest and recreation facilities, housing and all other services that contribute to the wellbeing of workers. Welfare measures are concerned with general wellbeing and efficiency of workers. In the early stages of industrialization, welfare activities for factory workers did not receive adequate attention.  Working conditions of factory workers in India has been historically very pathetic. Due to poverty and exploitation by factory owners, workers had practically no option. Due to an increase in industrial activity in the latter half of the 19th century, attempts were made to improve the condition of the workers many times by the reports of the Royal Commission through various acts. The act of 1948 builds upon the act of 1934 after understanding the defects and weaknesses of the earlier act. An important change was the widening the definition of a 'Factory' to include any industrial establishment employing 10 or more people that uses power, or any industrial establishment that employs more than 20 people that does not use any power. Other important changes were: ⚫ Increasing the minimum age of children eligible to work from 12 to 14. ⚫ Reducing the hours of work for children from 5 to 4 and a half. ⚫ Prohibiting children from working after 7 PM and before 6 AM. ⚫ Explicit and special focus on health, safety, and welfare of all sorts of workers. WELFARE MEASURES  The welfare measures involve three major aspects which are - occupational health care, suitable working time and appropriate salary.  It refers to the physical, mental, moral, and emotional well-being of an individual.  The welfare measures aim at integrating the socio- psychological needs of employees, the unique requirements of a particular technology, the structure and processes of the organization and the existing socio- cultural environment. It creates a culture of work commitment in organizations and society which ensure higher productivity and greater job satisfaction to the employees. ⚫ Due to the welfare measures, the employees feel that the management is interested in taking care of the employees that result in the sincerity, commitment and loyalty of the employees towards the organization. The employees work with full enthusiasm and energetic behaviour which results in the increase in production and ultimately the increased profit. ⚫ The measures of welfare give result after a long period of time. It is a long process, so the management has to keep patience while providing the welfare facilities for the employees. While deciding the welfare facility for the employees, the management has to do discussions with the persons who are now going to avail the facilities. The communication increases the cohesiveness between the management and the employees and thus industrial relations improve. WELFARE PROVISIONS (42-50) ⚫ WASHING FACILITIES(SEC-42) ⚫ (a) Firstly, provide and maintain adequate and suitable facilities for washing for all the workers in the factory (b) Secondly ,provide separate and adequately screened facilities separately for men and women. (c) Thirdly, make accessible all the facilities to all the workers. *The state govt prescribes the standards. ⚫ Facilities for storing and drying clothes(SEC-43) ⚫ This section contests some powers with the State Government. It states that the State Government has the powers to direct the factories regarding the place of storing the clothes of the workers. ⚫ Moreover, they can also direct them regarding the manner of drying the clothes of the workers. It applies to the situation when workers are not wearing their working clothes. ⚫ Facilities for sitting(SEC-44) ⚫ There are various kinds of jobs in a factory. Some of them require the workers to stand for a longer period of time. There is no doubt that human power to stand has limits. Looking at such case, this section states: (a) Firstly, the factory should provide suitable arrangements for sitting for the workers. This is important because whenever the worker gets some free time, he/she may be able to take some rest by sitting. This will also enhance their efficiency. (b) Secondly, if the Chief Inspector finds that any worker can do his work more efficiently while sitting ⚫ then he can direct the factory officials to arrange sitting arrangements for him. ⚫ First-aid-appliance(SEC-45) ⚫ Injuries are somehow an inescapable part of life for the workers especially working in the factories. Looking at the safety and welfare of the workers this section provides that: ⚫ The factory should provide and maintain proper first-aid boxes at every workroom. Under this Act, the number of boxes should not be less than one for every 100 or 50 workers. Moreover, the first-aid boxes should have all the relevant contents according to the Act.  There should be nothing except the prescribed contents in a first-aid box.  Each box should be under control of a first-aid in-charge who will handle all its requirements and its utilization. The in-charge should be an expert in First-aid field.  In case the number of workers exceeds 500, then the factory should arrange an ‘Ambulance Room’ with the availability of all necessary equipment. ⚫ Canteens(SEC-46) ⚫ (a) Every factory where the number of workers exceeds 250, then the State Government may direct the factory owners to provide and maintain a canteen for the workers. (b) Moreover, the government may lay down certain conditions in the construction of canteen, like: ⚫ 1. the standard in respect of construction, accommodation, furniture and other equipment of the canteen 2. the foodstuffs to be served therein 3. the date by which such canteen shall be provided 4. the constitution of a managing committee for the canteen. ⚫ Shelters, rest-rooms, and lunch-rooms(SEC-47) ⚫ This section states: (a) If the number of workers in a factory crosses 250, then the factory owners should construct and maintain shelters, rest-rooms and lunch rooms for the workers. It allows the workers to eat the food which they bring along with them. (b) The shelters, rest-rooms and lunch rooms should be properly ventilated and lighted. ⚫ (C) The State Government may prescribe the standards, in respect of construction accommodation, furniture, and other equipment.  ⚫ Creche's(SEC-48) ⚫ Due to workforce diversity nowadays, women’s participation is increasing in all the sectors especially the industrial sector. ⚫ One of the factors that stop women to work in factories or any other sector is lack of care for their children during their working hours. In order to solve this problem and increase the engagement of women in factories, section 48 states: (a) Where numbers of women workers exceed 30, then the factory should arrange a special room for the worker’s kids who are below the age of 6 years. (b) The room should be properly lighted and ventilated ⚫ Welfare officers(SEC-49) ⚫ This states that every factory where in five hundred or more workers are ordinarily employed the occupier shall employ a prescribed number of Welfare officers.