harmandeep singh new

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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?


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?


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?


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 ?


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?


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?


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?


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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