A STUDY ON THE LABOUR’S WORKING CONDITIONS IN SMALL SCALE UNITS IN THE VIEW OF ‘FACTORIES ACT-1948’

– Bhanu Saxena

Asst. Prof., Inodre Institute of Law

ABSTRACT

The ultimate objective of the labour welfare of any organization is to create healthy and cordial industrial relations between the labourers and employer and to treat human resource as a most valuable asset for the organisation. In small units there is huge amount of workers employed. Workman who belongs to smallunits has been unorganised and neglected. Although in The FactoryAct-1948 there are clear provisions regarding health, safety and welfare but in practice those standards are not followed by the small scale unites of India, so this research paper tries to study about the working conditions in SSI and also find out the implementation of Factories Act- 1948 in small scale units of India.

KEYWORDS: Working Conditions, Organised, Unorganised, SSI

INTRODUCTION

In the small scale industry large numbers of workers are unorganised and there are many acts which are implemented only on organised work force like Trade Unions. Other registered workers associations can be eligible for collective bargaining and only those workers who can participate in negotiation with management. Unorgenised workers who have been neglected but the objectives of FactoryAct is different from all labour laws, the Act emphasis only on the health, safety and welfare of individualworker and don’t create any discrimination between organized or unorganized work force. This act is applicable on the whole India, it covers all manufacturing processes and establishments falling within the definition of ‘factory’in the Factory Act- 1948. So this study can be useful for unorganised workers and their welfare of small scale unites and there welfare and their legal applicability not only in India but all over India.

Factories Act and its provisions regarding working conditions.

According to Factory Act there are specific well defined provisions about the working conditions. We have considered each provision as factors of working conditions we have also asked the question from respondents through questionnaire on the same. So the theoretical factors of labours working conditions are as follows: Precautions regarding health of workers in the factory, Precautions regarding safety of workers in the factory, Policy and provisions regarding welfare of worker, Special privilege to women and children,

Small-Scale Industries:

These are the industrial undertakings having fixed investment in plant and machinery. Ownership of small scale unit is with one individual in sole-proprietorship or it can be with a few individuals in partnership. These units are managed ina personalised fashion. The owner is activity involved in all the decisions concerning business. The area of operation of small units is generally localised catering to the local or regional demand. The overall resources at the disposal of small scale units are limited and as a result ofthis, it is forced to confine its activities to thelocal level. Small industries are fairly labour intensive with comparatively smaller capital investment than the larger units. Therefore, these units are more suited for economics where capital is scarce and there is abundant supplyof labour. Smallscale units use local or indigenous resources and as such can be located anywhere subject to the availability of these resources like labour and raw materials.

Scope of this Research Paper

As per the new concept of HR and Human Rights, human is the most valuable asset for the organization and he/she should not be treated as machines in the factory there must be a factory manager for taking care of workers so this study can be useful for making new HR policy according to legal provisions of Factories Act.

Review of Literature

The purpose ofreview of literature is to be establishing a theoretical framework for provisions of Factories Act in the area of labour working conditions, labour health & safety measures and labour welfare in small scale industries (SSI) and also about the overview of what has been said, who the key writers are, what are the established theories and hypothesis, what questions are being asked and what methods and methodologies are appropriate and useful.

In our study we have categorised ‘Review of Literature’ in four parts i.e. Labour Working Conditions, Labour Welfare Facilities, Labour Safety Measures.

According to K. Logasakthi and K. Rajagopal (2013), the concept of labour health, safety and welfare are flexible and widely differs with respect to the time, region and types industry. According to Works Manager Central Railway Workshop, Jhansi versus Vishwnath, AIR- 1970 SC, 448- Supreme Court of India declared that ‘FactoryAct’ is a social enactment of achieve social reform its aim should not be only profit making.

Upadhyaya (2003) in Garment & Hosiery industry of Noida points out that although The FactoriesAct, 1948 makes very elaborate and unambiguous provisions regarding the minimum welfare (also health and safety) standards to be followed, but laying down the standards alone is not enough.

In the case of P.K. Sarafv. State of Bihar, 2012 LLR 754, Jharkhand High court made a landmark decision that: Violation of Factories Act would make the manager and the occupier of the factory liable to be prosecuted

Labour Working Conditions- According to Stephen and Dhanapal (2012), precautions regarding health of workers in the factory are not satisfactoryin the small scale units. He found that more than 60 percents of the units do not care about the precautions regarding health. Labour Welfare Facilities- According to P. Swapna, 2011, Labor Welfare means working out things for the well-being of the labours. Knowing there wants and enabling them to fulfil their wants.

Labour Safety Measures- According to (Yarlagadda M.B, Raju U.B.b and Raju S.R, 2010- 11)108 OSH conditions of an organization improves then it will definitely helps in increasing productivity, quality and environment standards of the organization.

Conclusion from the above literature survey, it is found that very few studies have been undertaken on Working Conditions in Small Scale Units in the View of ‘Factories Act’.

Objectives of the study

1. To study about the Labour’s Working Conditions in Small Scale Units.

2. To find the implementation of Factories Act-1948 in Small Scale Units.

Methodology:

In the study there are three tiers system employed to collect primary data, firstly, the selection of Small Scale Units, secondly, the selection of Owners or managers of these small scale units and thirdly we have selected workers of the small scale units in India.

We have also examine the provisions of factory act and compared all with primary and secondary data. We have collected secondary data from District Trade & Industries Centre, India and MSME-DI.

Data Analysis

The results obtained after analysing and statistically treating the data collected from the respondents. In the study there are three tiers system employed to collect data, firstly, the selection of Small Scale Units, secondly, the selection of Owners or managers of these small scale units and thirdly we have selected workers of the small scale units in India.

1.1 Working Conditions of the Labour

Working conditions of the labour in the small scale units in India have been studies. The factors of working condition of labours are as follows: Precautions regarding health of workers in the factory, Precautions regarding safety of workers in the factory, Policy and provisions regarding welfare of worker, Special privilege to women and children.

1.1.1: Precautions regarding health of workers in the factory Hypothesis to test only Workers Responses –

H01: Workers are satisfied with the Precautions regarding health of workers in the factory.

Ha1: Workers are not satisfied with the Precautions regarding health of workers in the factory.

There are clear provisions in Factories Act from sections 11 to 20 which intended to ensure that the conditions under which work is carried on in factories do not affect the health of the workers injuriously. There are specific sections on Cleanliness, Disposal ofwastes and effluents,

Ventilation ‘and Temperature, Dust and Fume, Artificialhumidification, Overcrowding, Lighting, Drinking water, Latrines & Urinals, Spittoons.

M.P. Factories Rules: there must be cautionary notice contains; Information about the Chemicals, No Smoking, No-chewing, No- tobacco, eating food or drinking in the particular area, good wash shall be taken before meals. Protective devices supplied shall be used while working in this area, Spillage of the chemicals on any part of the body or on the floor shall be immediately washed away with water. All workers shall report for the prescribed medical tests regularly to protect their own health. According to rule 127 under M.P. Factories Rules: The occupier ofevery factorycarrying ofa ‘hazardous process shallarrange to obtain information in the form of Material Safety Data Sheet (MSDS)

But the findings from Table No-5.8 that workers were dissatisfied with the above statement, on the other hand SSI Owners/ occupier were satisfied with precaution, which would be taken in factory regarding their health. It is also shown in Figure No. 6.3, it is inferred that mean health of SSI workers is 3.54 and that of SSI owner is 1.6. The Standard deviation is more in case of SSI owners than that of SSI workers.

Figure No-1.1.1: Precautions regarding health of workers in the factory

We have also test our hypothesis ‘H01’ through Chi Square test, the degree of freedom is 3 at 5% level of significance what we found that the calculated value 37.28 is greater than table value 7.815 (Reject ‘H01’ because ? 2 = 37.28 > 7.815 for alpha=0.05), which indicates that null hypothesis is rejected hence alternative hypothesis is accepted i.e. Workers are not satisfied with the Precautions regarding health of workers in the factory.

We found that worker seems not satisfied and the main objective of FactoryAct is to provide healthy working conditions and also provide safeguards to worker against occupier and owner’s. FactoryAct imposed some responsibilities on the owners or occupier. If any occupier fails to do so he or she will be punished. It means this provision of factoryAct is not properly implemented.

: Precautions regarding safety of workers in the factory

Hypothesis to test only Workers Responses –

H02: Workers are satisfied in terms of ‘Precautions regarding safety of workers in the factory’

Ha2: Workers are not satisfied in terms of ‘Precautions regarding safety of workers in the factory’.

Provisions of the Factories Act regarding the safety of the workers are stated from sections 2l to 41. Occupier or owner must take precaution regarding: All dangerous machinery must be fenced -Section 2l, Work on or near machinery in motion must be carried out only by specially trained adult male workers wearing tightly fitting clothes.- Section 22, No young person shall work at any dangerous machine’ unless he has been specially instructed as to the dangers and the precautions to be observed has received sufficient training about the work – Section 23, In every factory suitable devices for cutting off power in emergencies from running machinery shall be provided and maintained in every workroom.-Section 24, Moving parts of a self-acting machine must not be allowed to come near of any fixed structure which is not part of the machine.- Section 25, In all machinery installed and their certain parts must be guarded – Section 26, Women and children must not be allowed to work near cotton openers- Section 27.

Every hoist and lift must be so constructed as to be safe. There are similar provisions regarding lifting machines, chains, ropes and lifting tackle. Sec-28& 29, each revolving machinery connected therewith must be notified. Steps must be taken to see that the safe speed is not exceeded.- Section 30, Where any operation is carried on at a pressure higher than the atmospheric pressure, steps must be taken to ensure that the safe working pressure is not exceed.- Section 31, All floors, steps, stairs, passage and gangways shall be of sound construction and properly maintained. Safe means of access shall be provided to the place where the worker will carry on any work.- Section 32, Pits, sumps, openings in floors etc. must be securely covered or fenced.- Section 33. No worker shall be made to carry a load so heavy as to cause him injury- Section 34, Effective screen or suitable goggles shall be provided to protect the eyes of the worker from fragments thrown off in course of any manufacturing process and from excessive light if any- Section 35, No person shall be allowed to enter any chamber tank etc. where dangerous fumes are likely to be present. For people entering such space suitable breathing apparatus shall be provided-Section 36 and 36A.

Where a manufacturing process produces inflammable gas, dust, fume etc. steps must be taken to enclose the machine concerned, prevent the accumulation of substances and exclude all possible sources of ignition. Extra precautionary measures are to be taken where such substances are worked at greater than the atmospheric pressure.-Sec. 37, fire escapes shall be provided. Windows and doors shall be constructed to open outwards. The means of exit in case of the fire shall be clearly marked in red letters. Arrangements must be made to give warning in case or fire – Section 38, If any building or machine is in a defective or dangerous condition, the inspector of factories can ask for the holding of tests to determine how they can be made safe. – Section 39. 40.

If the Inspector of Factories thinks that any building in a factory or any part of it is in such a state of disrepair that it is likely to affect the health and welfare of the workers. He may serve on the occupier or manager or both in writing specifying the measures to be done before the specified date. Section 4OA.To appoint a Safety Officers State Government may notify to the occupier to employ a number of Safety Officers in a factory (i) wherein one thousand or more workers are ordinarily employed. Or (ii)wherein any manufacturing process or operation which involves the risk of bodily injury,

poisoning disease or any other hazard to health of the persons employed in the factory.- Sec. 40B.

But more than 70 per cent of workers advocated that they are not satisfied with the safety measures but more than 50 percent SSI owner reported that workers of the small-scale units are satisfied with the precaution regarding safety of workers. There seems huge variation in viewpoints of respondents of both the groups. The mean value of SSI workers is lower and standard deviation is higher than that of SSI workers. It also shown in figure 1.1.3-

Figure 1.1.3: Precautions regarding safety of workers in the factory

We have also tested our hypothesis ‘H02’ through Chi Square test to know only worker’s response. The degree of freedom is 3 at 5% level of significance what we found that the calculated value 57.92 is greater than table value 7.815 (Reject ‘H02’ because ? 2 = 57.92 > 7.815 for alpha =0.05), Which indicates that null hypothesis is rejected hence alternative hypothesis is accepted i.e. Workers are not satisfied with the Precautions regarding safety of workers in the factory.

: Policy and provisions regarding welfare of worker

The provisions of the Factories Act regarding the welfare of workers are stated below: According to section 42 of Factories Act 1948 -In every factory adequate and suitable facilities for washing shall be provided and maintained. They should be conveniently accessible and shall be kept clean. Section 43 of Factories Act 1948 stated that there must be the provision of suitable facilities for storing and drying clothing. According to section 44 of Factories Act 1948 Sitting facilities must be provided for workers who have to work in a standing position so that they may take rest when possible. Section 45 of Factories Act 1948 specified that every factory must provide first aid boxes. It must contain the prescribed materials and they must be in charge of persons trained in first aid treatment.

According to section 46 of Factories Act 1948 Canteens where more than 250 workers are employed but if it is necessary or demanded by workers the state Government may instruct to occupier to open a canteen. Because food and refreshment can not be a matter of legal provision but it is a matter of convenience.

According to section 47 of Factories Act 1948 in every factory where more than 150 workers are employed there must be provided adequate and suitable shelters or rest rooms. But if it is necessary or demanded by workers the state Government may instruct to occupier to open a canteen. Because shelters or rest rooms for food and refreshment cannot be a matter of legal provision but it is a matter of convenience.

According to section 48 of Factories Act 1948: In every factory where more than 30 women a employed, a room shall be provided for the use of the children (below 6 years) of such women. The room shall be adequate size. Well lighted and ventilated, maintained in a clean and sanitary condition and shall be in charge of a woman trained in the care of children and infants. According to section 49 of Factories Act 1948 Welfare officers must be appointed in every factory where 500 or more workers are employed. But if it is necessary or demanded by workers the state Government may instruct to occupier to appoint or occupier can also appoint a welfare officer to take care of all welfare facilities.

But that maximumnumber ofworkers are dissatisfied with overallpolicyand provisions regarding their welfare. It could be observed that owners remained neutral. This indicates that policy and procedures made for the welfare of workers are not flexible. The mean and standard deviation of SSI workers is higher than that of owners. There seems huge variationin viewpoints of respondents of both the groups. It also shown in Figure1.1.4-

Figure1.1.4: Policy and provisions regarding welfare of worker

: Special privilege to women and children regarding their health, safety, welfare.

Hypothesis to test only Workers Responses –

H 03: Workers are satisfied with the ‘Special privilege to women and children’.

Ha3: Workers are not satisfied with the ‘Special privilege to women and children’. According to section-66 of Factories Act 1948 following restrictions have been imposed to women workers: (a) Maximum daily work is 9 hours (b) Prohibition of night work.(c) Other restrictions: There are other restrictions on the employment of women workers:

1. According to section-22(2) of Factories Act 1948-Work on or near machinery in motion. No woman or young person shall be allowed to clean, lubricate or adjust any part of the machinery while machinery is in motion.

2. According to section-27 of Factories Act 1948- No woman or child shall be employed in any part of a factory for pressing cotton in which a cotton opener is at work.

3. According to section-34 of Factories Act 1948-the maximum weights which may be lifted, carried or moved by adult men, adult women, adolescents and children employed in factories

4. According to section-48 of Factories Act 1948-in every factory wherein more than thirty women workers are ordinarily employed there shall be provided and maintained a suitable room or rooms for the use of children under the age of six years of such women.

5. According to section-87 of Factories Act 1948-The State Government is empowered to make special rules for the purpose of carry on operations exposing women, young persons.

6. According to section-67 of Factories Act 1948-No child who has not completed his fourteenth year shall be allowed to work in any factory. But a child who has completed his fourteenth year or an adolescent shall not be required or allowed to work in any factory unless he has been granted a certificate of fitness by certified surgen-Section-68.

7. According to section-71 of Factories Act 1948- No child shall be permitted to work in any factory for more than four and a half hours in any day or during the night.

But as shown in Figure No-1.1.5: out of the sample size of 100, there are 88 per cent of workers disagreed with the statement. Hence, it can be stated that majority of the organizations provide inadequate health and medical facilities to women workers in the factory. Alternatively, the owners of SSI are of the viewpoint that special privilege has been given to women and and child regarding their health, safety and welfare. There seems huge variation in viewpoints of respondents of both the groups. Therefore it is concluded that if special privilege is provided to children and women then more women worker would be diverted to do additional work of factory.

Figure No-1.1.5: Special privilege to women and children regarding their health, safety, welfare

We have also tested our hypothesis ‘H03’ through Chi Square test to know only worker’s response. The degree of freedom is 2 at 5% level of significance What we found that the calculated value 37.82 is greater than table value 5.991 (Reject ‘H03’ because value of ? 2 =

> 5.991 table value for alpha =0.05) which indicates that null hypothesis is rejected hence alternative hypothesis is accepted i.e. Workers are not satisfied with the Special privilege to women and children regarding their health, safety, welfare.

CONCLUSION

Although in The FactoryAct-1948 there are clear provisions regarding standard norms and provisions about health, welfare and safety but in practice those standards are not followed by the small scale unites in India, so the investigation on the working conditions of small scale industries can be useful not only for India but also for the whole India.

The above mentioned findings show about the working conditions of the labours in the small scale units of India. There is a gap between the expectation of workers and facilities really provided to them the owners. Thus, it is concluded that the provisions given in the FactoryAct 1948 are not successfully implemented in the small scale units of India.

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WEBLIOGRAPHY

1. . www.msmeIndia.nic.in

2. . www.dcmsme.gov.in/sido/sisi.htm

3. . www.mpindustry.gov.in

4. . http://www.prsindia.org/uploads/media/FactoriesFactories%20(A)% 20bill,% 202014.pdf 5 . https://www.ilo.org/dyn/natlex/docs/WEBTEXT/32063/64873/E87IND01.htm

6 . http://www.ilo.org/dyn/travail/docs/663/ 7 . http://www.dcmsme.gov.in/sido/sisi.htm

8. . http://www.mpindustry.gov.in/SupportAgencies.asp

9. . http://msme.gov.in/web/portal/Administration-DIC-Details.aspx?Id=14

10. . http://69.65.3.173/~techchai/msme/msmedi/index.php/en/about/msme-di-India

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