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INTRODUCTION
Agriculture is the backbone of the Indian economy. This sector forms the
largest segment at national level for self employment and also provides lively
hood for countless migrant laborers and remain a vital factor of the nation. Self
sufficient program being relentlessly persuade by each five year plan.
The agricultural sector having progressed from the ox plough stage is now
greatly dependent on modern technological equipments supporting implements
to enable boosting of productions wile saving on time, manpower and also
cultivation. By large tractors for achieving better, faster and economical
industry today .Every organization, to maximize its profits adopts a well
planned marketing strategy which is analyzed every year.
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ABOUT THE COMPANY
Sh L.D Mittal Chairman of the company helped by Sh. A.S. Mittal Managing
Director Mittal Joint Managing Director gave a serious thought to it and started
working on the new project to develop a tractor as per aspirations of the
farming community. Company's engineers were sent all over the country to
assess the needs and requirements of the farmers and also to know what
problems are being faced with the brands being used by them. R&D exercises
were undertaken and a tractor was developed with the combined efforts of
workers and engineers of the company. The tractor had all features of having
more pulling power, more speed, more efficiency in deep ploughing andtransportation etc. and it was equally efficient with agriculture implements .The
hardest Budhni Test gave the tractor an excellent rating. Above all, the farming
community started patronizing the new product of their dreams and within a
short span, popularity of the tractors became visible. The number of dealers
also went on increasing with the increased production and excellent
performance of the tractor. There was practically Q of the dealers and the
number of dealers has reached more than 570 now having representation from
all states.
The Sonalika International' after the great success of its 740 model and
improved Double Clutch model continued its efforts in manufacturing yet
another models with increased Horse Power with foreign technology in the
shape of DI 60 and Dl-55. These high range tractors have also caught the fancy
of the farmers especially with bigger holdings. The company has shown a
record growth rate of 124% which has not been registered by any other brand
so far and that too within a short duration. It is creditable indeed and speaks of
company" spreading its wings at a very fast speed. Keeping in view, therequirements of farmers with small holdings, Sonalika has come out with 3
more small range 725,730 and 732 models a demand
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of these tractors is catching up day by day. In addition 45 and 50 HP tractors
have also been developed to meet with the requirements of middle class
farmers.
Sonalika has not stopped. It believes in improving upon its performance and
accelerating pace of progress further. Its has yet another feather in its cap when
it signed MOU with the world Automobile giant Renault Agriculture France on
30th April 1999. Now Sonalika International will be able to produce tractors
with top international technology under the guidance of French and Indian
experts at reasonable rates. This will also facilitate India to earn much needed
sizeable amount of foreign exchange by exporting tractors made in India to
foreign and covering Southeast Asia, Africa and Europe.
The credit for this success goes to Sh. L.D.Mittal, the soft spoken Chairman
under whose leadership the company has flourished and is destined to reach
still greater heights.
Sh. Mittal however attributes this to ever energetic Sh. A,S. Mittal Managing
Director and Sh. Deepak Mittal Joint Managing Director who have been
engineering the activities of the company successfully since inception. He has
also all praise for the workers, engineers and officers whose dedication and
team work has helped the company to reach this enviable position.
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Group Turnover and Projection
1999-00 2000-01 2001-02 2002-03 03-04 04-05
Tractor (Nos.) 396 2770 6211 8773 13496 17002
Agriculture
Machinery (Nos.)
5000 7500 1200 18000 24000 32000
0
2000
4000
60008000
10000
12000
14000
16000
18000
1999-
00
2000-
01
2001-
02
2002-
03
4-Mar 5-Apr
Years
Sales
ofTract
The sales of the sonalika tractor went on increasing as it is shown in the graph.
The sales in the year 1999-00 was 2770 it increased to 6211 in year 1999-00
and then in 2000-2001 recorded sales were 8773 .In the year 2001-02 the sale
increased to 13516 much showing the name and the better quality ,customer
satisfaction . The increased technology of Sonalika Tractors proved to be the
most like tractor for every farmer .the recorded sales in year 2002-2003 was
17113.Sales for the year 2003-2004 were
21002 . The latest figures received for the year 2004-05may not be accurate as
due to some secrets of the company .The sales for the year 2004-05 is 23211.
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0
5000
10000
15000
20000
25000
30000
35000
1999-
00
2000-
01
2001-
02
2002-
03
4-Mar 5-Apr
Years
Nos.ofAgricultureMa
The number of agriculture machinery used by the farmers in 1998-99 was 4500
then after due to the coming modern stage many of the farmers adopted the
machinery and the number was increased to 7400 in the year 1999-00. Better
machinery used resulted in the good crops and hence the number of farmers
using machinery went to 12500 then after it went on increasing to 17500 in the
yr 2000-2002 .In the year 2002-03 the number of machinery used was 24316
.In the year 2003-04 the number of machinery used in bye the farmers was
33000 .Then almost all the farmers were using the modern technology for
cultivating their crops in the year 2004-05 the figure recorded was 46000.
ORGANIZATIONAL STRUCTURE
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CHAIRMAN
MD
J.M.D Marketing
Production R&D Quality Gear Division Engine
DGMDivision Division
Sr. Manager DGM AGM DGM Sr.Manager
DGM
(R.M)
Manager Sr. Manager Manager AGM Sr.ManagerAsst.
Manager
Asst. Manager Manager Asst. Manager Deputy Asst. ManagerManager
Deputy TerritoryManager Manager
Asst. Manager
Sales &Serv
ice
Purchase
`
Tractor Consumer
THE PROMOTERS
Chairman: Sh. L.D. Mittal
Managing Director: Sh. A.S. Mittal
SONALIKA AWARDED
ISO 9001 AND ISO 14001
6
Production
R&D
Quality
Gear division
Engine Division
Marketing
Purchase
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IN RECOGNITION OF QUALITY AND STANDARDS
International Tractors Ltd. with Sonalika brand tractors has been certified as
ISO 9001 issued by International Standards Organization. This certification can
be earned those organizations only who can establish and demonstrate strict
compliance of quality systems prescribed under ISO 9001as highest level of
certification under which the organizations possess capabilities in the area of
design and, development and in manufacturing and marketing functions. It is
indeed a great honour for the International Tractors Ltd. to have achieved this
2nd such company in India, which has received this certification.
The scope of registration covers design, development production and
installation. The registration is a quality mark. Sonalika has also been certified
as ISO 14001 which is another golden feather in Companys Can and another
stamp of quality.
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ISO-CERTIFICATES
ITL has got ISO-9001 quality system certified by ICL
(International Certification Limited).
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ISO-9001
It is used for conformance to specify requirement is to be assured by suppliers
during the several stages which may include design, development, production,
installation and servicing.
Sonalika has arranged collaboration with French Renaults for technical know
how and marketing, with the help of this collaboration Sonalika will develop its
own Dl-740 tractor engine which will help to reduce its cost. After the
collaboration, Sonalika will be able to make 100 tractors per day.
French Company will have 20% shares in Sonalika International Tractors Ltd.
And will also have one director in Board of Directors and 90% share part
manufactured by the company.
ISO 14001 certification
ITL is an environment friendly plant. In order to achieve international
slandered environmental management system ITI has been awarded ISO 14001
certifications.
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GOVERNMENT POLICIES
All the agriculture related industries in India have been highly controlled by the
government and the tractors are not an exception to this. The important
government policies affecting the tractor industry are discussed as below.
Excise duty
In the past, government has used excise duty as effective tool for controlling
the demand for various types of tractors. The main objective has been to keep
the price of small tractors purchased by marginal/small farmers, at affordable
level. But this seems to have changed now.
The indirect
subsidy for less than 1800 cc tractors was recovered from higher from higher
horsepower segments by levy of higher excise duty. The lower HP tractors
(uptol800cc) and components for them were totally exempt from excise duty
till 1994-95 the introduction of duty on components and subsequent change in
several of MODVAT credit for lower HP tractors adversely affected the market
of the segment in FY96. But this anomaly has been overcome in 1997-98
budgets by increasing the excise duty on higher HP tractors from 10% to 13%.
In 1998-99 budgets, less than 1800 cc tractor were charged an 8% excise duty
so as to address the industry's long standing demand to claim MODVAT credit
on inputted. The rationalization of excise duty structure in 1999-2000 budge
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led to an increase, in excise duty on above 1800 cc tractors (above 30 HP) from
13% to 16%. However, the 2000-2001 budgets have raised the excise duty on
the less than 1800 cc tractors from 8% to 16%.
LICENSING
The liberalization process started in 1991 has brought relief to the tractor
industry, by providing free hand in setting up of additional capacities to the
existing players and allowing new players to set up plants. This has resulted in
entry of few new players who were given to commence their operations by mid
1999 with their manufacturing base in India.
The tractor implements sector, which is very important for effective usage of
tractors, was reserved for Small Scale Industries (SSI). The sector was
deserved from SSI list in 1998-99 budget so that the implements can be
produced with better design and technology that can help in farm
mechanization. This will help in enhancement of agricultural productivity in
the country.
PRIORITY SECTOR LENDING
Bank lending for acquiring tractors is part of the priority sector lending. Any
change in limits for priority sector lending from the current minimum
requirement of 40% and 32% of the net bank credit for domestic and foreign
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banks respectively will effect the demand for tractors as nearly 95% of the
tractor sales is through credit taken from banks.
The loans given, for tractors by banks are refinanced by NABARD under the
head "farm mechanization". This includes power tillers, harvesters, engines,
pumps etc. besides tractors. But, tractor credit constitutes a major components
of the total refinance provided for farm mechanization. The refinancing policy
of NABARD is' laid down on a you basis and the credit support to tractors is
based on the total availability of resources and agricultural priority in a
particular year.
SUPPLIERS
The industry is controlled by six major players. The major players are M&F
TAFE, Punjab Tractors, Escorts, Eicher and HMT. The supply of tractors was
in tune with demand leading to a capacity utilization of above 95% in the
second half of eighties and early nineties.The capacity of tractors industry has
increased from 150,300 tractors in FY92 to 337,000 tractors in FY99. The
increase in capacity in nineties was
brought about by expansion projects of M&M, PTL and TAFE, which together
accounted for 73% of the expanded capacity of 183, 700 tractors.
In the past few years, the tractor market has moved from sellers market to a
buyers market as competition, from both existing and new manufactures
intensified and fresh capacity was created. This has created a scenario where
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dealers have been maintaining higher inventories so as to provide wider choice
and immediate delivery to the farmer.
Tractor prices in India are about a quarter of the similar powered tractors, in
international markets. In the 1990s, the retail prices of the tractors have
Increased at a pace lower than procurement price of major crops like wheat
paddy. For the corresponding period, farmers are also benefited from
improvement in yield per hectare.
Due to sharp jump in tractor demand in last few years, almost all the players
have been expanding their capacities. The industry is also witnessing entry of
international majors like New Holland Ford and L & T John Deere.
The industry entry barriers like high capital cost, extensive rural distribution
network, and suitable tractor technology to meet local conditions, brand
awareness and familiarity of technology to local technicians will provide
cushioning to domestic manufacturers fro international majors at least for the
next three years. For example, the capital cost of a Greenfield unit with
capacity of 20,000tractors per annum is about Rs.2.5 bn. This is more than
twice the capital cost of Rs. 6.2 bn for expanding the capacity by 18,000
tractors per annum by Punjab Tractors Ltd.
New Holland tractors, a 100% subsidiary of New Holland Tractors started sales
of 70 HP tractors imported in CKD form in the country from mid-198. It
launched a 50 HP tractor in March 1999, from it recently started plant at
greater Noida. The company plans to release 35HP tractor 1999 .all these
models's come with superior technology like oil immersed disc brakes,
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synchromesh transmission, support through hydraulic system etc. the company
plans to control costs by increasing indigestions levels from 50%to90%by end
of 1999.
To tackle over capacity problem and to keep the pace of growth, major players
are implementing key management and marketing strategic, for example:
M&M is implementing BPR to control processes and cost of production, PTL
is expanding into south India appointing new dealers, Eicher is entering higher
HP segment through a collaboration etc.
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OBJECTIVES OF THE STUDY
This project report is based on the case study of working of welfare measures
in SONALIKA TRACTORS. The main objective of the study is to find out
1. Wether all the welfare measures have been adopted by SONALIKA
TRACTORS.
2. Whether adopted welfare measure are satisfactory or not? These
measures include provisions of medical facilities, canteen, housing,
washing, education facilities, safety measures etc.
3. To find out whether welfare schemes have been introduced in the
factory, which includes Provident Fund, Gratuity Schemes, and
Employees State Insurance Schemes etc
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LITERATURE SURVEY
DEFINITION OF LABOUR WELFARE WORK
Following are the some important definitions of Labour Welfare work:
1. The Encyclopedia of Social Science' has defined labour welfare work
as : The voluntary efforts of the employees to establish, within lie
existing industrial system, working and sometimes living and cultural
conditions of the employees beyond what is required by Law. The
custom of the country and conditions of the market.
2. The Oxford Dictionary defines: Labour Welfare as efforts to make life
work living' for workmen.
3. Chamber's Dictionary" defines: Welfare as a state of faring or doing
well; freedom from calamity, enjoyment of health, prosperity, etc.
4. The I.L.O. Report refers with regard to Labour Welfare as: Such
services, facilities, and amenities which may be established in or in the
vicinity of undertakings to enable the persons employed in them to
perform their work in health, congenial surroundings and provided with
amenities conductive to good health and high morals.
5. The LABOUR INVESTIGATION COMMITTEE preferred to include
under Labour Welfare. Anything done for intellectual, physical, moral
and economic betterment of the worker, whether by employers, by
government or by other agencies, over and above what is laid down by
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law or what is normally expected on the part of the contractual benefits
for which workers may have bargained.
6. According to the Committee on Labour Welfare by Welfare services
should mean: Such services, facilities and recreation facilities, sanitary
and medical facilities, arrangement for travel to and from 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 contributed to conditions under which workers are
employed.
According to N.M. Joshi. Welfare work:
Covers all the efforts which employers make for the benefit of their
employees over and above the minimum standards of working conditions fixed
by the Factories Act and over and above the provisions of the social legislation
providing against accident, old age, unemployment and sickness.
From the above definitions of LABOUR WELFARE we may say that the
term LABOUR WELFARE has been used both in a wide and in a narrow
sense. In the broader sense, it may include not only the minimum standard of
hygiene and safety laid down in general labour legislation, but also such
aspects of working life as social insurance scheme measures for the protection
of women and young workers; limitations of hours of work. paid vacations etc.
In narrow sense, welfare, in addition to general physical working conditions, is
mainly concerned with the day-to-day problems of the workers and the social
relationship at the place of work.
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In other cases, the definition is much more limited, and welfare, in addition to
general physical working conditions, in mainly concerned with the day-to-day
problems of the workers and the social relationship at place of work.
In some countries the use of the welfare facilities provided is confined to the
workers employed in the undertaking concerned, while in others the worker's
families are allowed to share in many of the benefits which are made available.
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BASIC FEATURES OF LABOUR WELFARE
The basic features of Labour Welfare work may be summarized as under:
1. It is the work which is usually undertaken for the benefit of the
employee and employers and the members of their families.
2. Labour welfare is a very broad term, covering from social security to
such activities as medical aid, crches, canteens, recreation, housing,
adult education, arrangements for transport of labour to and from work
place to residence etc.
3. These facilities may be provided voluntarily by the progressive and
enlightened entrepreneurs of their own accord out of their realization to
social responsibility towards labour or the statutory laws may compel
them to make provisions for these facilities or these may be taken by the
Government or these may be taken up by the Government or the trade
unions if they have the necessary funds with them.
4. The purpose of providing welfare facilities is to bring about the
development of the whole personality of the worker, his social,
psychological, economic, moral, cultural and intellectual development
to make him a good worker, a good citizen and a good member of the
family.
5. It may be noted that not only the intra-mural but also extra-mural,
statutory as well as non-statutory activities undertaken by any of the
three agencies the employees, trade unions or the government.
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From the above discussion it is clear that labour welfare work is for the
benefit of the employees and employers and the members of his family
and welfare work is a broad term, it includes activities like housing
facilities, medical aid, adult education, education for the children of
workers recreational facilities, arrangement of transport etc. Welfare
facilities may be provided voluntarily by the organization or it may be
imposed by Labour Legislation of the country. Welfare work is aimed at
the development of the whole personality of the worker and welfare
activities may be undertaken by any of the three agencies - the
employers, trade union or by the Government.
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AIMS OF WELFARE FACILITES
Labour welfare work aims at increasing the production, by providing suitable
amenities to the workers and their families so they fell that they are the part and
parcel of the organization in which they are working.
So welfare facilities aim at promoting the good and healthy relation between
the employees and employers. The main aims of the welfare facilities are as
under:
1. To increase production and productivity.
2. To develop a healthy relationship between employees and employers.
3. To enhance the participation of the worker in the management.
4. To promote the healthy traditions.
5. To remove the illiteracy among the workers and their children.
6. It is party humanistic to enable the workers to enjoy a fuller and richer
life.
7. To improve the efficiency of the worker.
8. To develop a sense of responsibility and dignity among the workers and
thus to make them worthy citizens of the nation.
The aim and objective of labour welfare have progressively changed during the
least few decades. From the primitive policing and placating philosophy of
labour welfare, it gradually moved to the era of paternalism with philanthropic
objectives. Even today there is evidence of humanitarian outlook of some of
the employers in many employee-welfare programmes. In future it will assume
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new dimensions in our country as a result of added emphasis on the basic
responsibilities of a welfare state.
To conclude we may say that labour welfare facilities aim at developing
congenial and good relations between the employees and employers. It also
aims at increasing production and also to improve the efficiency of workers.
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SCOPE OF LABOUR WELFARE WORK
It is difficult to accurately lay down the scope of labour welfare work, specially
because of the fact that labours is composed of dynamic individual with
complex needs.
We cannot bind the scope of labour welfare only to the working hours, but the
scope of labour welfare work is very broad it includes the welfare programmes.
Health services programs and laborers' economic welfare programmes. The
scope of the welfare work may be summarized as under:
1. CONDITIONS OF THE WORK ENVIRONMENT
(i) Workshop sanitation and cleanliness: It includes:
a) Disposal of waste and effluents.
b) Ventilation and temperature
c) Prevention of dust and fumes from the workroom.
d) Artificial humidification
e) Provisions against the over crowding arrangement of lighting.
f) Workmen's safety measures and distribution of work hours and
provisions for rest times, meal times and breaks.
(ii) Provision and care of drinking water.
(iii) Canteen services
(iv) Management of workers Cloak rooms, rest rooms and library.
(v) Factor sanitation and cleanliness: It includes
a) Toilets and Urinals
b) Washing facilities
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c) Spittoons
d) Cleanliness, white washing and repairs of building and
workshops.
e) Ingress, egress, passage and doors and
f) Care of open spaces, gardens and roads
2. EDUCATIONPROGRAMMESFORWORKER'SCHILDREN
Education facilities for workers children include Nursery Schools. Primary
Schools, Provision of reading rooms, libraries, circulating library, visual
education, lecture programme, study circles, playgrounds for children. It
includes also cultural activities festival celebrations etc.
3. LABOURS'ECONOMICWELFAREPROGRAMME
Co-operative or fair price shops for consumer necessities especially grain,
vegetables, milk, meat, ghee, cloth and daily requirements, co-operative
credit society, thrift schemes and saving banks, unemployment insurance,
social insurance, profit sharing and bonus schemes, factory transport
services.
4. WORKERS' HEALTH SERVICES
(i) Factory Dispensary and Clinic: For
a) General Treatment
b) Treatment for individual diseases, fatigue, treatment of accidents.
(ii) Labour Colony Dispensary and Clinics: For women and child welfare
worker 0.2. maternity aid. infant welfare, crches and medical examination
of workers family.
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WHY LABOUR WELFARE?
The necessity for labour welfare is felt all the more in our country because
of its developing economy aimed at rapid economic and social development. In
this process it is trying to check the baneful effects of the industrial revolution
which have adversely affected the people all over the world. The need for
labour welfare was felt by the Royal Commission on Labour as far back as
1931. The philosophy of labour welfare and its necessity came in for a
generous mention in a resolution passed by the Indian National Congress on
Fundamental rights and Economic Programme in its Karachi Session in 1931.
The resolution demanded that the organization of economic life in the country
must conform to the principles of justice and it might secure a decent standard
of living. It also
Emphasized that the state should safeguard the interest of industrial workers
and should secure for them, by suitable legislation, a living wage. healthy
conditions of work, limited hours of labour, suitable machinery for the
settlement of disputes between employers and workmen and protection
against the economic consequence of old age. sickness and unemployment.
This need was also emphasized by the Constitution of India in the chapter on
the Directive Principles of State Policy.
The Planning Commission also realized the necessity of Labour Welfare when
it observed that : "In order to get the best out of the worker in the matter of
production, working conditions require to be improved to a large extent, the
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worker should at least have the means of facilities to keep himself in a state of
health and efficiency.
Thus the need for social and industrial welfare in India in all sectors is clearly
enunciated in our constitution.
BenefitsofLabourWelfare
1. It enhances the efficiency of the workers and their productivity is
considerably increased.
2. It raises the morale of workers. A feeling is developed among the
workers that they are being looked after properly.
3. It helps in reducing labour turn over and absenteeism.
4. It promote industrial place by minimizing industrial disputes.
5. It brings drastic change in the outlook of workers. They extend their
whole hearted cooperation since labour welfare presupposes faith of the
management.
6. The social evils prevalent in the labour forces such as gambling,
drinking etc. are reduced to minimum. It brings improvement in the
health of the workers and keeps them cheerful through entertainment
facilities.
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LABOUR WELFARE AT SONALIKA TRACTORS
The topic includes the data collected by me from the factory workers of Ka
Metal Works and my own observation regarding the working of labour welfare
measures. SONALIKA TRACTORS is covered under Factories Act 1948. The
Act has detailed provisions in regard to various matters relating to health,
safety and welfare of workers. So we can divided this information under four
heads:
A) HEALTH MEASURES (Sec. II to 20)
B) SAFTEY MEASURE (Sec. 21 to 41)
C) LABOUR WELFARE (Sec 42 to 50)
D) SOCIAL SECURITY SCHEMES
Following are the detailed provisions of health, safety and labour welfare, as
mandatory according to Factories Act, 1948 & as practically applied in
SONALIKA TRACTORS:
A. HEALTH MEASURES (Sec. II to 20)
1. Cleanliness (Sec. II)
Every factory must be clean and free from effluvia arising from any drain,
privy or the nuisance. In particular the following must be adopted.
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(a) Accumulation of dirt and refuse shall be removed daily from floors
and benches of workrooms, passages & stairs.
(b) The floor of every workroom should be clear at least once in every
work of washing, using disinfectants etc.
(c) All inside walls, partitions & ceiling etc. When painted otherwise
with washable, water paints shall be repainted at once in 5 years.
(d) If washable water paint is used then they should be repainted with at
least one coat of such paints at least once in every period of 6
months.
(e) All doors & windows shall be kept painted or varnished & the
painting or varnishing shall be carried out at least once in every
period of 5 years.
All the above provisions of Factories Act are strictly maintained in Kalsi Meta
Works. The premises of SONALIKA TRACTORS are kept clean & are free
from any type of smell. The floors of workshop are swept daily & also wash
once or twice in a week. The workshop is white washed once in a year near
Diwali. Two persons have been appointed for cleaning the office.
2. Disposal of Wastes & Effluents (Sec. 12)
SONALIKA TRACTORS produce those products, which don't result in any
harmful waste and effluent.
3. Ventilation & Temperature (Sec. 13)
Effective & suitable provisions are provided for securing & maintaining:
a) The adequate ventilation for circulation of fresh air.
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b) Such a temp. is maintained to provide comforts to the workers & to prevent
injury to health. The walls & roofs of workrooms are of such material &
such design as to keep the temp low. Proper lighting & cooler facility is
provided in workroom of SONALIKA TRACTORS. Office is fully air-
conditioned.
4. Dust & Fume (Sec. 14)
In factory SHOT BLASTING MACHINE has been installed for cleaning
casting. Besides it DUST COLLECTOR, for inciting iron CUPOLA FURNAC
POLLUTION CONTROL DEVICES have also been installed. Gases are
diluted to water. Clean air is thrown in the air through chimney.
5. Over Crowding (Sec. 16)
In SONALIKA TRACTORS open halls consent of 6 conveys are system is
maintained separately for uppers and lowers. Every worker is provided
reasonable space for his/her sitting & machine on which he/she is working.
6. Lighting (Sec. 17)
Every part of the factory is provided with sufficient & suitable lighting, natural
or artificial or both. Effective provisions are made for prevention of glass &
formation of shadows, likely to cause eyestrain or the risk of accident to any
worker. All glazed windows & skylights for lighting of workroom are kept
clean in SONALIKA TRACTORS.
7. Drinking Water (Sec. 18)
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Sufficient arrangement have been provided & maintained at suitable points for
supply of whole some drinking water, cold drinking water, coolers are
provided at convenient points so away from their duties for drinking water.
8. Latrines & Urinals (Sec. 19)
Sufficient latrine & urinal accommodations for male & female workers. Such
accommodations- are adequately lighted, ventilated & maintained in a clean
and sanitary condition sufficient numbers of sweepers are employed to keep
urinals, latrines & washing places clean. There is one latrine for every 25 male
workers and same for female workers.
9. Spittoons
Sufficient No. of spittoons at convenient places are placed. They are
maintained in a clean and hygienic condition. As per Factories Act, 1948 any
person who is found spitting any where except in spittoons may be fined up to
Rs. 5.
(B) SAFETY
Safety is basic & primary requirement in a factory. Unless the life of workers is
secure & smooth, proper working can't be ensured in any factory. Section 21 to
41 of the Act contains the provisions relating to the safety of workers. These
provisions are absolute in character & it is the duty of the occupier of every
factory to comply with them.
10. Work on or Near Machinery in a Motion (Sec. 22)
This requires that with a view to secure the safety of workers, examination of
machinery while it is in motion, should be carried out only by trained adult
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male worker wearing tight clothing (which is supplied by occupier). The name
of such male worker should have been recorded in the register prescribed in
this behalf.
11. Employment of young persons on Dangerous Machineries (Sec. 23)
No young person is employed~ to work at any dangerous machine, unless he
has been fully included in connection with the machine. Person who has
thorough knowledge & experience of the machine provides him with sufficient
training under the adequate supervision.
12. Floor Stair & Means of Access (Sec. 32)
All floors, steps, stairs, passage & gang ways are of second consultation &
property kept & maintained & shall be kept free from obstruction & substances
likely to cause a person to slip.
13. Safety Equipment
Safety equipments issued to employees for their protection against falling
objects splashes of chemicals & exposure of harmful dust etc. The safety
equipments project the workers from harmful objects.
a) Goggles
Effective serene or suitable goggles are provided for protection of persons
employed in the process that involve risk of injury to employees from particles
or fragments thrown off in the course of the process or exposure to excessive
light. For example: Goggles are being provided-to Grinder men, Chipping
workers and Welders.
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b) Rubber Aprons or suits
Aprons, skivers, cutters, shoes for machines operation are issued as & when
required by the employees. For example: Painters are provided masks.
C) Gloves
Different types of gloves are issued on regular basis to suit the work
requirements. Gloves are specially provided for initial processing of leather.
d) Shoes
Different types of shoes are provided to workers for example: Molders as per
the requirements such as gum shoes for chemical section and tannery section.
14. Fire Safety
All practicable measures shall be taken to prevent out break of fire & its spread
both internally and externally & to provide & maintain,
(a) Safe means of escape for all persons in the event of a fire.
(b) The necessary equipments and facilities for extinguishing fire.
Effective measure are taken to ensure that in factory all workers are familiar
with the means of escape In case of fire & have been adequately trainee in the
routine to be followed in such cases.
Main components of fire policy in Kalsi Metals are:
There is a arrangement of four parties whose functions & duties are as follow:
1) Cardon Party: It will be responsibility of the cardon party to cardon the
affected area & ensure that no unauthorized person is allowed to enter area.
Cardon Party-1, 16 Workers from Conveyor Number. 1
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2) Fire Fighting Party :This party will be of 1 to 7 persons which will be
versed in handling of fire extinguishers.
Fire fighting Party-1 & worker a from conveyor no. 3.
3) Sand & Water Party : Depending upon the nature of fire, the party will
carry the buckets full of sand, water & thrown it over the affected area.
Water Party- 1,10 workers from conveyor no. 2
4) Salvage Party: Salvage party will salvage important equipment/ store/
machine & material to avoid their destruction by fire. Salvage Party- 1, 10
workers from cutting section boys.
5) Alarm: Any employee who notices fire will shout at the top of his/ her
voice 'AAG- AAG'. The fire-fighting officer will take control of situation &
take such action as necessary to extinguish the fire in minimum time. He
will also inform the Following:
(a) Fire Brigade
(b) Police Chownki
List of fighting equipments at each fire point:
a) Fire Brigade.
b) Police Chownki,
List of fighting equipments at each fire point:
Serial No Equipments Quantity
1
2
3
4
Water buckets
Sand buckets
Fire hooks
Fire beater
4
4
1
1
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5
6
Pick axe with handle
Shovel with handle
1
1
15. Safety of Building & Machinery (Sec. 40)
This empowers the inspector to serve on the manager or occupier or both of a
factor an order in writing specifying the measures, which are to be adopted
before a specified date, for safety of building & machinery. In case of
imminent danger the inspector is empowered to prohibit the use of such
building machinery etc. until properly repaired or altered.
16. Safety Officers (See. 40 B)
Separately no person is appointed as safety officers & personnel manager in
SONALIKA TRACTORS performs all functions of safety officers.
C. LABOUR WELFARE MEASURES
The need for adoption of welfare measure as a mean to increase the workers
productive efficiency, to keep up their morale & for the maintenance of
industrial peace, has been realized by all sections of the society. Provisions
relating to welfare of the factory workers have been contained in section 42-50
in Chapter 5 of Factories Act, 1948.
Details of these provisions are as follows:
17. Washing Facilities (Sec. 42)
(a) In Kalsi Metal Works adequate & suitable facilities for washing are
provided & maintained for the use of workers.
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(b) Separate & adequately screened facilities are provided for use of male &
female workers.
Two cakes of lifebuoy soap are provided every month.
18. Sitting Facilities (Sec. 44)
Suitable sitting arrangements have been-provided in SONALIKA TRACTORS
so that workers can take rest whenever they get opportunity.
19. First Aid Appliances (Sec. 45)
This Act has made provision of first aid appliances obligatory. SONALIKA
TRACTORS is well equipped with 3 dispensaries with qualified medical staff,
which provides first aid facilities, which are reality accessible during working
hours; it has equipment required for emergency. Employers are also given
treatment in Patel Hospital, Nursing Home, and ESI, if required.
20. Canteen (See. 46)
There is a canteen in the factory premises, which provides cooked food &
refreshment to employees. Canteen is managed departmentally & it is running.
Profit' basis as required in Punjab Factory Rules 1952 in SONALIKA
TRACTORS Expenditure borne by employers for providing foodstuff below
cost is Rs. 180000 per market. Canteen has 22 x 20 feet area. There are 6
big tables &12 big benches. Proper sitting, lighting, ventilation & fan facilities
are provided in canteen. In canteen proper drinking facilities, are provided.
Filtered water provided to workers for drinking. There are 2 taps & 2 water
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coolers in canteen also washing & cleaning facilities with regular sweeper duty
is provided. Proper table system, dustbins at every table are provided.
Moreover clean & washed utensils are also provided to workers. There are 3
doors & 3 exhaust fans in canteen. Proper fire exit is properly marked. Health
precautionary, no smoking board etc. are also there to aware the workers.
21. Shelters. Rest rooms & Lunch rooms (Sec. 47)
Section 47 of the Act provides that in every factory where more than 150
workers are employed, adequate & suitable shelter or rest rooms & a suitable
lunchroom should be provided & maintained for workers. In SONALIKA
TRACTORS, no separate shelter & rest rooms have been provided, but proper
ventilated & sufficiently lighted lunchroom is provided to all the workers.
22. Travel
The work regarding travel is handled by personnel dept, the booking for the air/
railways is done & separate record is maintained for all the managers. The
travel allowance is given on annual oasis
Year Travel Allowances (In Rs)
2005-2006
2006-2007
2007-2008
222943.00
277765.00
400272.00
23. Car Facility
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Company has provided car facilities to director manager of production, Chief
executive & manager of maintainer.
Year Rs. Spent on car facility
2005-2006
2006-2007
2007-2008
510128.00
415338.00
442703.00
24. Scooter Facility
Company has provided scooter facility to some of manager, Deputy Manager
Years Rs. Spent on Scooter Facility
2005-2006
2006-2007
2007-2008
14236.00
22355.00
135286.00
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25. Loans
Company has its own credit society from which it gives loans to its workers
occasion like self- marriage in family, sickness, accident, birth & death &
house repairs etc. Loan will be given only on compassionate ground & too for
self & own family. Documentary proof will be attached with application. No
loan will be given if loan already taken is outstanding. Interest is charged at the
rate of 10 % p.m. & loan under no circumstances can exceed 1 month basic
pay. Loan is not a right, but a facility extended by company to its workers. 25-
30 /o employees availed loan facilities In 1999 2000.
26. Loan in Emergency
In case of emergency of any type of employees, there is an arrangement to give
loans, in some cases, it does not recover loans from workers Rs 50,000/- given
to worker for burnt cases
27. Uniform
Peons & drivers are provided with two pairs (Pent & Shirt) of stitched tarry-
cotton uniform per year. Where workers of SONALIKA TRACTORS are
provided with cotton coat to wear it during working hours to create a feeling of
uniformity among worker
28. Rain-Coats
Rain- coats are provided to security guards, security officers, watchmen. 5-6
rain coats are there in factory. Also shoes, torches are provided.
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29. Medical facilities
Medical facility is given attention in Sonalika Tractors. All the employees are
covered under ES'I. Under this each & every type of medical facility & help
for medical purpose is provided to the employees. Employees who are drawing
salary up to Rs 6500 /-P.m. are covered under ESI Scheme. There is a free
check-up of the every worker every year.
30. Super Annulations
Company has taken super annuation policy from (L.I.C.) which includes
a) Pension: All employees are liable to get pension as co has Provident Fund
scheme. Pension is paid out of PF & pension is payable on attaching the age
of 58 years.
b) Benefits of Nominee: The members who have been receiving pensions, if
dies, his nominees will get return on capital along with terminal bonus.
C) Death during the service: The nominee of the member is eligible to
receive the pension through out his/ her life & commutation of the total
amount with interest is given. The beneficiary can further make nomination.
d) Medical insurance Coverage: The employees who are the members of ESI
premium of 6.5% is paid monthly, which comprises of 4.75% of employer
and of employees contribution. The company is contributing approx Rs
6500/- per month as premium.
31. Training and Development
Sonalika Tractors perform different kinds of training procedures to motivate
employees & to develop work culture:
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a) On the Job: The operative personnel are given this kind of training. There is
six month period for all the new recruits.
b) Training Development of the Workers: Worker is educated in their
professional line to achieve higher productivity & greater efficiency & easy
mechanism by professional workers teachers.
c) Supervisory Development Program: Objective of this training is to
develop abilities of supervisor by imparting technical & supervisory skills
in subjects like:
i) Human Relation Industrialization.
ii) Discipline
iii) Communication
iv) Participation & Co- Operation.
v) Leadership & Group Working.
At least 6 months training is given to every worker once in a year
In addition lectures are organized to create awareness about aids & population
control.
32. Family Planning Scheme
The scheme is being run entirely on employer's choice. According to the
scheme any married worker who is having only two children, will get an
Incentive of some amount per month.
A medical certificate by the employees has to be submitted as proof
Monthly Allowances
Workers
Supervisors
Rs. 100 per month
Rs. 150 per month
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Executives Rs. 200 peer month
33. Cultural Programmes
SONALIKA TRACTORS celebrates every moment of following eves of
festival with full zeal & excitements:
a) NEW YEAR EVE
b) DIWALI
c) LOHRI
On New Year managing personnel come & wish New Year personally to all
Workers. This system motivate workers team spirit & they feel themselves are
distributed on to workers on eve of New Year.
34. Welfare / Extra Circulars Activities
These are not mandatory according to Factories Act, however
a) Cleanliness competitions on Diwali are organized.
b) Cricket matches b/w management and workers are organized.
c) Preventive medicines are provided to all the workers from time to time
against disease like malaria, cholera & others.
The company gives family planning incentives to these who follow the small
family norms.
35. Social Activities
As part of motivational forces some social activities are undertaken by an
organization. It also undertakes certain cultural programmes at PINGLA
GHAR JALANDHAR.
36. Leaves
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Particular leaves of following nature have been provided to employees of
SONALIKA TRACTORS:
Privilege Casual Leaves
Workmen
Staff
Officers
15
15
15
7
7
7
There are facilities for 7 casual leaves and 15 earned leaves eligible for every
worker, in addition 13 National festival holidays are given to all employees in
year.
37. Hotel Facility
Personnel department does hotel booking for all managers and other staffs or
officials teams, a record is maintained & necessary processing is done for
payment. This allowance is included in traveling allowance.
38. Funeral Benefits
In case an insured person dies, the eldest surviving member of the family of
the insured person is entitled to the funeral benefit for incurring expenditure
for funeral of deceased. Where the insured person dies, who has not any family
or has not been living with his family such amount of funeral benefits shall be
paid to person who actually incurs expenditure in the funeral of that of those
employees. The amount of such benefit shall not exceed Rs. 1500. The claim
of sue payment shall have to be made within three months of death of insured
persons
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39. Maternity Benefits
No woman worker shall be entitled to maternity benefits unless she has actual
worked within an establishment of employees from whom she claim maternity
benefits. Only workers covered under ESI act are entitled to get these benefits
in SONALIKA TRACTORS. More over workers is entitled to get pay during
the period.
40. Grievances Procedures
All complaints of individual nature such as non-payment of wages, grant of
leave overtime work arrangement, working conditions, confirmation, and
transfer change of service condition & other complaint of similar
nature felt by the workmen arising in course of the employment will be made
in the following manner:
a)He will first of ail talk to his foreman.
b) If the workman is not satisfied with the decision of foreman, then he will
approach the head of dept. i.e. senior officer
RESEARCH METHODOLOGY
This project is based on information collected from both primary & secondary
sources After 3 detailed study an attempt has been made to present
comprehensive analysis of labour welfare activities adopted by the company.
The data has been used to cover various aspects of labour welfare activities
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undertaken by the organization. In collecting requisite data & information
regarding the topic selected, following methods were adopted by me. The
different sources are:
1. PRIMARY SOURCES
A) Defect Personal Interviewing
Personal interviews with seniors & staff members & officials in depts. In
SONALIKA TRACTORS and discussions with workers of the firm during
the period of training were primary source of collecting information. The
no. of workers in the factory is 500. So randomly selected a sample of 120
workers. I made a questionnaire and persona interviewed the workers about
the working of welfare measures in the factory.
B) Personal Observation
I also used the method of personal observation for this purpose by visiting
the factory premises for a number of times.
2. SECONDARY SOURCES
Final accounts & the various records of details regarding amount spend on
employees. Annual reports, Memorandum of Association, Articles of
Association, other magazines files, pamphlet a journals published by the
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company from time to time constitute secondary sources of information
for the project report.
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DATA ANALYSIS & INTERPRETATION
During my training I was provided with the opportunity to interview the
workers in Sonalika Tractors, Hoshiarpur. For this purpose a questioner was
circulated and it was filled by the 120 workers. Based on the information
supplied in the questioner following is the interpretation of that:
QUESTION 1.
Are you satisfied with welfare facility at Sonalika Tractors?
No. of workers Response Percentage
92 YES 76.6%
28 NO 23.3%
YES
NO
INTERPRATATION
Data collected from the sample size revealed that about 76.6% of the workers
are satisfied with the welfare facility provided at Sonalika Tractors. Remaining
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23.33% of workers are not satisfied because of the working conditions at their
particular place of work.
QUESTION 2.
Do you get medical facility?
No. of workers Response Percentage
90 YES 75%
30 NO 25%
YES
NO
INTERPRATATION
In Sonalika Tractors, a significant number of workers get only first aid facility.
But no private expenses are born by the company. The company assumes the
responsibility of medical treatment only for the permanent workers, which are
about 75% of the total workersunder consideration.
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QUESTION 3.
Do the extra facilities provided by the organization fulfill your requirement?
No. of workers Response Percentage
96 YES 80%
24 NO 20%
YES NO>
INTERPRATATION
In Sonalika Tractors, data collected revealed that about 60% of the workers are
not satisfied with the extra facilities provided by the company. It may be due to
the fact that all those who were unsatisfied were the temporary workers and
their requirement is job security and not the extra facilities.
QUESTION 4.
Are adequate safety measures adopted by the company?
No. of workers Response Percentage
120 YES 100%
0 NO 0%
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YES
NO
INTERPRATATION
In Sonalika Tractors, proper safety measures are installed in the premises.
Theses are fire alarms, fire extinguishers and proper wiring of electrical
equipments. Those workers who work at workshop level are provided with
special uniform.
QUESTION 5.
Are you satisfied with welfare facility at Sonalika Tractors ?
No. of workers Response Percentage
24 YES 20%
96 NO 80%
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YES
NO
INTERPRATATION
In Sonalika Tractors, 80% of the workers are not benefited by the canteen
facility because most off the workers bring lunch box with them. Moreover
workers are given tea two times during their working hours.
QUESTION 6.
Is the food provided by the canteen hygienic?
No. of workers Response Percentage
90 YES 75%
30 NO 25%
YES
NO
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INTERPRATATION
On interviewing with the workers who availed the canteen facility, 75% of
them told that the food available at canteen was totally hygienic one. But 25%
of the workers are not satisfied from the foodstuff provided in the canteen.
They compliant that food is not hygienic in the canteen.
QUESTION 7.
Are there any recreational facilities provided by Sonalika?
No. of workers Response Percentage
30 YES 25%
90 NO 75%
YES
NO
INTERPRATATION
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In Sonalika Tractors, workers told that they get little time out of their daily
work for such facilities as the percentage of the workers benefited by such
facility remains low. In Sonalika Tractors, management organizes annual
games where chess, carromboard, tag and war etc. games are there.
QUESTION 8.
Are your dependents getting any facility or security?
No. of workers Response Percentage
96 YES 80%
24 NO 20%
YES
NO
INTERPRATATION
In Sonalika Tractors, most of the workers are covered in the insurance scheme.
80% of the workers are in the view that their dependents are getting the
benefits. Remaining workers are on temporarily basis therefore they are not
covered in insurance scheme.
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OBSERVATIONS
During my training programme I found that the firm is aware of various
provisions relating to welfare of workers provided in different labour laws.
There is a healthy constructive discussion among the representatives of
management & workers to solve the various problems related to labour welfare
& safety measures. It is safety consciousness that has fetched it STATE
SAFETY AWARD FOR ZERO ACCIDENTS.
But as no one can be perfect in this world so there are some loopholes also. The
following finds have emerged from the study:-
1. Housing
Except the watchmen & and security guards, no housing facility has been
provided to workers
2. Medical
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Workers are only provided with first aid facility no other medical facility.
There is no ambulance in the factory & staff car is used in case of
emergency.
3. Library
There is no room as library. Some magazines & newspapers are provided
by management to the workers but there is no provision for books.
4. Education
There is no facility for residential school. No education allowance is given
to the workers. No scholarship is given to their children.
5. Recreation
There is no recreational room in the factory. The firm is not paying
attention towards sports & of cultural programmes.
6. Rest Rooms & Shelters
The firm has not provided any rest room & shelter for the workers.
7. Sanitation
There are separate urinals & latrines for the office staff & workers. These
are kept in sanitary condition but no such separate provision has been made
for outsiders.
8. Seating Arrangement
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Where the workers have to work in the standing position, they have not
been provided with any benches or stools so that can take rest for a moment
of an arises during the course of work.
9. Storage of Clothing
There is no separate room for the storage of clothing not worn during the
working hours. Workers have to hang their clothes on the hooks provided
on the walls of the workshop.
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SUGGESTIONS
1. The firm should provide rest rooms & shelters to the workers.
2. The firm should provide a separate room as library & provision for
books on various topics should be made available along with the
newspapers & magazines.
3. It is suggested that as the firm is expanding the firm should make more
quarters for law paid staff.
4. It is suggested that the firm should make provision for games both in
door and in outdoor. The workers may be encouraged to form a Bhangra
Group or any other folk dance Group and to participate in the cultural
activities of various Kalsi Metals organized any various institutions or
organizations.
5. Suitable arrangements for sitting should to be made for the workers
who are obliged to work in a standing position to enable them to take
rest when an opportunity arises in the course of their work.
6. The firm should provide rest rooms & shelters to the workers. The
first aid cupboard of the firm should be kept in the charge of the separate
responsible persons having a certificate in first aid prescribed by the
State Government & who shall always be readily available during the
working hours of the factory.
7. The first aid cupboard of the firm should be kept in the charge of
the separate responsible persons having a certificate in first aid
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prescribed by the State Government & who shall always be readily
available during the working hours of the factory.
8. Transport facility to and from the place of work may be provided to
the staff & workers. For this a bus or van may be purchased or hired.
9. Management should revise their motivation of techniques from time
to time.
10. Worker's participation in management also reduces the problem to
great extent. As workers representative can inform about the real
problem & also provide suggestions to solve them because they actually
confront those problems.
11. There should be proper system of reward and punishment for
distinguishing the efficient workers
12. Job rotation will reduce boredom & monotony In job, sharpens diverse
skills and motivate employees. Every suitable employee should bee
allowed to rotate from one dept to another where by he should get an
opportunity to work in an area which he likes most. This benefits both
employees and organization.
13. A separate labour welfare officer and safety officer should be
appointed.
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LIMITATIONS OF THE STUDY
In an attempt to make this project authentic and reliable, every possible aspect
of the topic was kept in mind. Nevertheless, despite of this fact constraints
were at play during the formulation of this project. The main limitations are as
under:
1. Due to limitation of time only a few workers were selected for the study.
2. The workers were hesitant to disclose the true facts .
3. I had to take the managers to visit the factory personally to collect
required information. However the manager granted me permission to
visit the factory, due consideration.
4. The workers were of our training programme so their response to my
enquiries was very poor. They were able to answer my questions only
after making clear the purpose of the enquiry.
5. Lack of time on part of a few officials of SONALIKA TRACTORS,
also restricted scope of the research.
6. The area of research was limitedbecause of time period of training.
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BIBLIOGRAPHY
Authors Name Books Name
Memoria C. B. Dynamic of Industrial Relations in India.
Flippo EE. B. Personnel Management, Tata McGraw hill
Edition 1998.
Singh B.P Chabra T.N Personnel Management & Industrial
Relation
Verma M. M. & Aggarwal Personnel Management & Industrial
Relations.
Pardeep Kumar Personal Management & Industrial
Relations
Arun Kumar & Personnel Management & Industrial
Rachna Sharma Relation Management
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QUESTIONNAIRE
I am the MBA student College of Management and Technology,I am
conducting a survey regarding labour welfare policies. It would be highlyappreciated if you could spare your valuable time and fill up the
questionnaire. The process would not take more than 5 minutes:
Q1. Are you satisfied with welfare facility at Sonalika Tractors?
1. Yes ( )
2. No ( )
3. Q2. Do you get medical facility?
1. Yes ( )
2. No ( )
Q3. Do the extra facilities provided by the organization fulfill your
requirement?
1. Yes ( )
2. No ( )
Q4. Are adequate safety measures adopted by the company?
1. Yes ( )
2. No ( )
Q5. Are you satisfied with welfare facility at Sonalika Tractors?
1. Yes ( )
2. No ( )
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Q6. Is the food provided by the canteen hygienic?
1. Yes ( )
2. No ( )
Q7. Are there any recreational facilities provided by sonalika?
1. Yes ( )
2. No ( )
Q8. Are your dependents getting any facility or security?
1. Yes ( )
2. No ( )
-----------------------------------------------------------------------------------------
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