Chapter IV WELFARE AND SOCIAL SECURITY MEASURES IN SCCL

Transcription

1 Chapter IV WELFARE AND SOCIAL SECURITY MEASURES IN SCCL 4.1 INTRODUCTION Welfare programs assume special significance in a country like India, where poverty among workers pervades and where individually a worker is generally not in a position to look after his welfare. Hence, organisations need to provide welfare facilities, which include not only some basic facilities to individual workers but also include provision of congenial work atmosphere. This is because, the provision of welfare facilities improves the standard of living of workers. At the same time, workers and employees can easily adjust to the environment. It is a known fact that many problems, which arise in the area of industrial relations are due to lack of adequate welfare facilities. It is imperative that various agencies are interested in the socio-economic well-being of numerous and economically important classes of workers. Broadly speaking, welfare refers to the measures undertaken by the state, employers and associations of workers for the promotion of workers standard of living and also the promotion of their economic and social well being. Consequently, the term welfare has been defined in several ways. The Oxford Dictionary defines labour welfare as efforts to make life worth living for workmen. According to Joshi, labour welfare covers all the efforts, which employers make for the benefit of their employees over and above the minimum standard of working conditions fixed by the Mines Act 1952, and also 121

2 over and above the provisions of social legislation providing against accident, old age, unemployment, and sickness. Punekar felt that any kind of voluntary service will come under the purview of labour welfare, if it aims at helping the workers to work better and in a more congenial surroundings and also to live better in a more meaningful manner-physically, morally, economically and intellectually. As per the Labour Committee, the term labour welfare means any thing done for the intellectual, physical, moral and economic betterment of the workers, whether by employers, by Government, or by other agencies, over and above what is laid down by law, or what is normally expected as part of the contractual benefits for which workers might have bargained. Thus, there are different meanings to the term labour / employee welfare. But, in general, the term labour / employee welfare is so exhaustive. Social security forms an important part of employee welfare providing the Security, which is of great importance to the worker s and his family s wellbeing. According to Lord Beveridge, social security is an attack on five giants such as want, disease, ignorance, squalor and idleness. This concept is related to social justice and equity. ILO defines social security as, the security that society furnishes through appropriate organisation against certain risks to which its members are exposed. Social security is designed to prevent and cure disease, to support when people are unable to earn and get gainful employment. 122

3 Social security can be broadly classified into two types such as social insurance and social assistance. Under social insurance, employees and employers make periodical contribution to a fund, with or without a subsidy from the government. Out of these contributions, benefits are provided to the contributories necessary for satisfying wants during old age, sickness, unemployment and other contingencies of life. Social assistance on the other hand includes the provision of benefits towards the maintenance of children, parents, the aged, the disabled and others like the unemployed. Governments usually take steps to protect its citizens against these risks. However, in some cases, it takes the help of employers to ease the financial and administrative burden. The Government of India made various legislations to provide social security benefits. For instance, the Employee s State Insurance Act, 1948 enforces the employers to provide sickness benefits, disablement benefits, dependent benefits, medical benefits etc. Similarly, the Maternity Benefit Act, 1961 provides for medical benefits, maternity leaves etc. Further, the payment of Gratuity Act, 1952 provides for payment of gratuity at the time of retirement. In short, the scope of social security is very wide. Generally, social security schemes include medical care, sickness benefit, retirement benefit, employment injury benefit, family benefit, maternity benefit, invalidity benefit and survivor s benefit. In view of the importance of welfare and social security measures, an attempt is made in this chapter to discuss the welfare and social security benefits provided by the SCCL to its employees. 123

4 4.2 DIMENSIONS OF SOCIAL RESPONSIBILITIES Certain characteristics of mining industry in general and coal mining in particular make welfare more significant in this industry. Coal mining in India is highly labour intensive industry (SCCL employs 69,043 of employees). For the size of investments and mining operations, the proportion of manpower to be looked after and welfare facilities to be provided is substantial. Coal mining is one of the most arduous and hazardous operations. Not only are miner s exposed to dangers from mining hazards like explosions, inundations, roof falls, noxious gases etc., they are also prone to many mining hazards. Preventive action has to be taken against miner s diseases like pneumoconiosis, mining nystagmus, dermatitis, hook warms and the like. The day to day working environment is far from congenial. Below ground, the miner is exposed to perpetual darkness, forced ventilation, water logging, humidity and temperature etc. Even above ground living conditions and other social amenities are totally inadequate. Accidents leave a trail of misery on dependent families and sap the morale of co-workers who all live together. Post-accident care of victims and rehabilitation of disabled workers and bereaved families assume significance. 4.3 SCOPE OF WELFARE AND SOCIAL SECURITY The scope of welfare covers statutory and non-statutory welfare facilities provided by employers, Government, trade unions or voluntary organisations for the betterment of workers. Social security measures on the other hand refer to the provision of provident fund, gratuity, pension, insurance benefits, accident 124

5 benefits etc. SCCL having recognised the importance of welfare and social security measures has been providing statutory, non-statutory welfare facilities and also various social security benefits to its employees. For instance, the SCCL is taking up all possible measures to provide welfare amenities to its employees, particularly in the fields of health, sanitation, residential accommodation, education to worker s children, supply of drinking water, laying of roads, improving health awareness etc. Further, it conducts sports and games to provide recreation to its employees in addition to various social security benefits. In this regard, a brief discussion is made hereunder. 4.4 STATUTORY WELFARE FACILITIES Statutory welfare measures can be classified into two parts: (i) those which are to be provided irrespective of the size of the organisation or the number of people employed therein, such as drinking water facilities, conservancy, first-aid, and (ii) those which are to be provided subject to the employment of specified number of people, such as canteens, rest shelters, and crèches. For instance, a canteen is to be provided in every mine having 250 or more employees. Similarly, rest shelter facilities have to be provided in every mine employing 150 or more people. Further, a crèche has to be provided in a mine where 30 or more than 30 women are employed. In this regard, the various statutory welfare facilities provided by the company to its employees have been outlined hereunder. 125

6 A) Washing Facilities The Mines Act, 1952 lays down that in every mine, adequate and suitable facilities for washing shall be provided and maintained for the use of miners and all such facilities shall be conveniently accessible and shall be kept clean. The management of SCCL provided adequate washing facilities separately both for men and women. The company uses mine water to cater to the washing needs of employees. B) Drinking Water Facilities The Mines Act, 1952 specifies that every employer should make effective arrangements for the supply of cool and wholesome drinking water for all people employed in the mines. All the same, the drinking water points should be legibly marked in a language understood by majority of the people employed in the mine. It is to be noted the drinking water points should be six meters away from washing place, urinal or latrine points, unless a shorter distance is approved by the Chief Inspector. As per the requirements of the Act, the SCCL provided drinking water facilities at various junctions also known as districts in underground mines. It is to be noted that the company arranges a junction or district for every 500 metres in underground mines. Further, it has provided drinking water facilities in all the open cast mines. The company has no water problem as it gets abundant water from the nearby Godavari River. In this regard, the details of quantity of water supplied in company areas have been presented in Table 4.1. The table shows that the company relies more on 126

7 Godavari water as compared to mine water to meet its washing as well as drinking water needs. Table 4.1 Source of water and supply of water Source of water Total quantity of water supplied (In lakh gallons per day) Mine water Godavari water Total Source: C) Conservancy Facilities Employers as per the Mines Act have to provide sufficient number of latrines and urinal points of prescribed types separately for males and females. These facilities should be located conveniently in each mine and accessible to all people employed in the mines. All latrines and urinal points provided under subsection (1) of Mines Act shall be adequately lighted, ventilated and maintained in a clean and sanitary condition. It is to be noted that the Central Government may specify the number of latrines and urinal points to be provided in any mine in proportion to the number of males and females employed in the mines. SCCL in order to meet the requirements of the Mines Act has to provide conservancy facilities. Surprisingly, conservancy facilities are absent in underground mines while in opencast mines, these facilities are inadequate and they are provided mostly for executives. 127

8 D) Rest Shelter Facilities The provision of rest shelter facilities is a statutory obligation on the part of employers. The provision of these facilities helps in reducing the fatigue besides enhancing the efficiency of workers. The Mines Act, 1952 requires that suitable sitting arrangements were to be made and maintained for all workers who work in a standing position. The same Act has also made provision for suitable shelters, rest rooms and lunch rooms in a mine, if more than 150 workers are employed. As per the requirements of the Act, SCCL has to provide rest shelter facilities to its employees. It appears that the rest shelter facilities are absent in underground mines and they are inadequate in opencast mines. E) First Aid Equipment The Mines Act, 1952 specifies that employers should provide first-aid boxes or cupboards with prescribed contents such as cotton, tincture, bandages, blades and scissors. The first-aid box or cupboard has to be kept under the control of a responsible person who is trained in first-aid treatment. The mining company should also ensure that the in-charge is always available during the working hours of the mine. Besides this, employers have to provide conveyance facilities such as ambulances and other vehicles to carry the employees to hospitals and dispensaries in case, if the latter suffer from health problems or meet with accidents. As per the requirements of the Mines Act 1952, the company provided first aid boxes and also provided 29 ambulances to meet the health needs of its employees. 128

9 F) Canteen The Mines Act 1952 requires that all the mines in which 250 or more people are employed, the management of mines should provide canteens. The Act further states that a group of mines may have a common canteen. In accordance with the requirements of the Act, the SCCL has provided 47 canteens in all the mining areas such as Yellandu, Kothagudem, Manuguru, Ramagundam-I, Ramagundam-II, Ramagundam-III, Ramagundam-IV, Mandamarri, Bellampalli, Srirampur and Bhoopalapalli. In these canteens, amenities such as water coolers, wash basins, plates and glasses are provided. The company also provided free power, cooking gas, kitchen equipment and other facilities. These canteens provide a number of eatables such as Idli, Upma, Vada, Puri, Laddu (sweet), Mysore pock (sweet), Boondi and Tea at subsidised prices. It is to be noted that the canteen does not serve coffee. Even meals facility is not available in these canteens. The canteen menu and prices have been presented in table 4.2. These canteens operate from 7 AM to 9 AM in the morning and from 1 PM to 2 PM during noon. In the evening, they operate from 4 PM to 5 PM. Further, in the night, they operate from 8 PM to 10 PM. 129

10 Table 4.2 Canteen Menu and Prices Sl.No. Food items Price Rs. Ps. 1 Idli Upma Vada Puri Laddu (Sweet) Mysore Pock (Sweet) Boondi Tea 0.50 Source: Canteen Menu Board G) Creches A crèche is defined as a place where children of working women are taken care of while mothers are at work. The need for the establishment of crèches in industrial units was emphasised as far back as 1931 when the Royal commission on labour recommended that the provision of crèches should be made a statutory obligation in all factories and mines. The Mines Crèche rule requires that a crèche has to be maintained in all mines where 30 or more than 30 women workers are ordinarily employed subject to the condition that the children of women fall below 6 years of age. As per the norms, SCCL provided crèches and the crèches are headed by women employees known as Ayaas who take care of the children. The crèches provide milk and biscuits to the children. Further, toys are also provided for cajoling the children of women employees. 130

11 4.5 NON-STATUTORY WELFARE MEASURES The non-statutory welfare facilities fall outside the purview of work place and hence, they are not statutorily binding on organisations. However, many organisations including SCCL provide these facilities keeping in view their larger interests. These non-statutory welfare facilities can be classified broadly into four types such as medical, educational, recreational and various other facilities. In this regard, a brief discussion is made hereunder about the various non-statutory welfare facilities provided by the company to its employees. A) Medical Facilities Medical and health care facilities for industrial mining workers form a major component of the welfare approach. It ensures fit and stable manpower for economic development. It also ensures reduction in absenteeism and enhances productivity. In India, the problem of health is more serious because of low incomes leading to malnutrition. All the same, due to changing life styles and also due to the nature of work, employees are prone to diseases. In view of the importance of health, the company conducts a thorough medical examination to each and every employee at the time of initial employment. Thereafter, employees undergo periodical medical examination once in a block of every five years. Further, the company provided 6 Area hospitals, 1 main hospital at Kothagudem and 26 dispensaries with a bed capacity of 843. Though, the medical facilities appear to be adequate, the number of hospitals, dispensaries and beds has declined year after year between and For instance, the number of hospitals which stood at 8 in declined to 7 in 131

12 while the dispensaries has come down to 26 in from 40 in Further, the number of beds has come down to 843 in from 1058 in The company provided 29 ambulances to provide service to the patients. These hospitals treat the patients with utmost care and attention. Wherever, specialised treatment is required, either for the employees or their dependants, they are referred to super specialty hospitals in Hyderabad, Andhra Pradesh. The company also provided accommodation (10 rooms) to employees and their family members at Ramanath Ashram near Osmania General Hospital, Hyderabad. Further, it has provided one hall in the second floor of Siva Ganesh Choultry near NIMS, Hyderabad, which can accommodate 25 people at a time. B) Leprosorium SCCL provided a separate wing for leprosy patients at the main hospital in Kothagudem. The hospital authorities provide medicines and household provisions such as rice, dal, oil etc to all the patients free of cost once in a week. C) Educational Facilities The need for imparting necessary education to workers in India had been emphasised by the Indian Industrial Commission (1918), the Royal Commission on Labour (1931), and the National Commission on Labour (1966). Though provision of educational facilities to workers children is not statutorily binding for mining establishments, SCCL has provided 11 schools which include both high schools and upper primary schools. Further, it has provided two colleges for women out of which one is a Junior College and the other is a Degree College. 132

13 Further, it has provided one polytechnic college. Besides the above, it established an engineering college during the academic year with affiliation to Jawaharlal Nehru Technological University, Hyderabad (JNTU). The company in order to encourage the children of employees to excel in their studies started granting scholarships to the extent of Rs.6,000 per year for each student from 1998 onwards. These scholarships are granted to those who secured admission in the engineering and medical courses subject to the condition that they get ranks below 2000 in the EAMCET examination. These scholarships are granted to the children of employees and executives until the completion of their studies. Table 4.3 shows the scholarships awarded to the children of employees for the period from to The table shows that the per cent of change in the scholarships awarded to the children of employees varied between a low of (-) 25 per cent in and a high of per cent in Table 4.3 Scholarships Awarded for the period from to Year No of Students awarded Scholarships % of change over previous year (-) (-) (-) (-) (-) 3.85 Source: 133

14 (i) Additional Merit Scholarships The company in addition to the above merit scholarships sanctioned twelve additional scholarships (6 engineering and 6 medicine) from onwards to the children of NCWA employees on the basis of their performance in the EAMCET examination. The selection for these 12 additional scholarships would be made from among the qualified candidates (EAMCET ranks being below 2000) after their selection at the rate of 2 per Area level in each academic year. Further, it is also approved to award a scholarship of Rs.6,000 per annum to any child of employees or executives who secured admission in the Indian Institute of Management as a token of recognition and it was made operational from the academic year The company also accorded approval for awarding two merit scholarships at a rate of Rs.6000 per year to the children of employees who get admission in BITS Pilani through BITSAT. It was made operational from the academic year It is to be noted that the company enhanced the merit scholarship amount from Rs.6,000 to Rs.10,000 from the academic year (ii) Fee Reimbursement The company formulated a scheme for the benefit of the children of certain categories of employees such as Coal loaders and Mazdoors. As per the scheme, candidates who passed the SSC examination with 500 or more marks and studied in the Singareni schools are eligible for 50 per cent of the tuition fee and hostel fee reimbursement subject to their admission in corporate colleges. The scheme is implemented from the academic year It is to be noted 134

15 that a total of 51 children of employees were given 50 per cent fee reimbursement by March (iii) Mutual Tie-Up SCCL also reached an agreement with SRKM College of Nursing, Mancherial for their mutual benefit. As per the agreement, the SCCL provides clinical assistance from Ramakrishnapur Area hospital to the SRKM College of Nursing, Mancherial. In consideration of the same, SRKM college provides 50 per cent of management quota seats to the children of SCCL employees from the academic year These seats will be allocated under rule of reservation among the children of employees who want to pursue B.Sc. (Nursing) course from the college. (iv).financial Assistance The company encourages the children of employees to excel in the civil services examination. In this regard, it formulated a scheme for extending financial assistance in 2004 as a welfare measure. As per the scheme, candidates who qualify in the civil services main examination will be awarded financial assistance to the extent of Rs.12,000, Rs.8,000, Rs.4,000 as the case may be subject to a ceiling of 10 members. It is to be noted that the scheme is effective from 2005 onwards. (v).literacy Mission SCCL aims at achieving 100 per cent literacy among the employees and 135

16 their family members. In view of this, it formed voluntary groups and these groups work in mines and departments on this mission. It is to be noted that thousands of unskilled workers are working in underground mines. In a survey conducted in 2001, it was found that about 33,860 workmen and 41,310 spouses of workmen were illiterate who can not read or write Telugu. To overcome this problem, the company took up literacy classes in coordination with the concerned District Literacy Mission to make the illiterate workmen literate on a time bound basis. It also engaged a professional organisation called M/s. LEADS to conduct literacy classes at the work place, an hour before the beginning of the shift for the benefit of illiterate workmen. SCCL also utilises the services of teachers working in the educational institutions run by S.C Educational Society and NSS Volunteers in this program. Further, the officers and educated employees of the company also undertake special classes for illiterate workmen at the work place itself. On conclusion of literacy classes for a period of 45 days, a test will be conducted under the supervision of District Literacy Mission to test the proficiency of the workmen in reading and writing Telugu. Those of the workmen who could attain the proficiency up to the standard fixed by the Literacy Mission were issued certificates to that effect. The staff who are involved in the program are paid honorarium as a token of recognition. The company also presents a household article worth Rs.150 to each of the workmen who become literate. Owing to the efforts of the company, all the workmen are made literate, thereby it achieved 100 per cent literacy among workmen. Further, 22,667 spouses of workmen were made literate by March

17 D) Sports and Recreational Facilities A healthy body and healthy mind are closely connected and hence recreational facilities are very important. Besides reducing strain, these facilities provide relaxation, and encourage development of group feeling. Recreation makes employees psychologically happy as it gives them an opportunity for selfexpression and relaxation. For instance, participation in fine arts inculcates a sense of culture and participation in games help them develop physically. Besides this, participation in group activities help employees understand the necessity of team work and discipline. In fact, life can not be deemed to be complete without recreation. Having recognised the importance of recreation, SCCL provided various recreational facilities. For instance, it provided 10 community halls and 36 recreational clubs. All the same, it formed Work People Sports & Games Association in all the mining areas and it is one of the participants in the sports and games being conducted on All India basis under the banner of Coal India Limited s Inter Company Tournaments. Further, the company has been encouraging the employees to participate in the Inter District and State Level tournaments conducted by Sports Authority of Andhra Pradesh (SAAP). The players from the company have also participated in the national and international level games and won many medals. It is also encouraging the workmen and their children to participate in the sports and games events to keep up better health, leading to personality development. In addition to this, SCCL teams are being deputed to participate in All India Coal Fields Tournaments. 137

18 The SCCL in order to promote sports and games has provided 8 playgrounds, 10 stadiums, and 17 swimming pools. It is to be mentioned here that in all the 11 mining areas, sports and games are being organised in the stadiums provided for employee children and necessary sports material and coaches is being arranged to ensure that employee children do actively participate in the coaching camps so as to improve their skills. In this regard, an amount of Rs.2.88 lakhs budget has been sanctioned for the year for summer coaching camps to employees children. Every year the company conducts traditional games such as Kabbaddi, Tug-of-war, Volleyball etc., in each unit to promote sporting spirit among employees. Besides this, as a part of corporate social responsibility, it conducts sports and games events to the physically and mentally challenged persons in all the mining areas. Further, special sports and games events are conducted to women employees and wives of employees. E) Housing / Quarters Facility Among the basic necessities of life, housing is very important and it comes next to food and clothing. In developing countries like India, housing has been a social problem affecting all sections of population in some way or other. Since the health and efficiency of workers are directly affected by the type of houses, they live in provision of cheap, healthy and adequate accommodation will result in good health and efficiency of the mining workers. It may be mentioned that healthy accommodation includes adequate space, ventilation, lighting, latrines, drainage and other sanitary arrangements. SCCL has provided as many as 138

19 50,540 quarters in all its mining areas. Further, 28 quarters are under construction. It is to be noted that the number of housing quarters provided by the company has increased year after year from 47,604 in to 50,540 in Further, the housing satisfaction of employees has increased continuously from 58 per cent in to per cent in But the company failed to achieve 100 per cent housing satisfaction among employees. The company provides quarters to all the executives while for nonexecutives, quarters are provided on the basis of availability. All the company quarters are provided with individual taps. Further, around 4,500 community taps are provided in the company areas. Besides the above, for all the colonies and townships, roads are being laid and they are well-maintained. It is to be noted that the company collects a nominal rent of Rs.75 only per month from those employees who live in the quarters of the company. F) Consumer Cooperative Stores Consumer Cooperative Stores are of immense help to workers and employees. It eliminates the middlemen and provide the necessary consumable articles at lower prices and help the workers to improve their standard of living. The Singareni Collieries Company Limited has established Singareni Collieries Cooperative Central Stores Limited popularly known as Singareni Super Bazar in which the workmen of SCCL are members. The infrastructure facilitates like buildings and furniture are being provided by SCCL to the super bazaars. The company runs a total of 40 sales depots or super bazaars including gas godowns 139

20 and distribution points for the benefit of employees during These stores sell essential commodities like rice, wheat, oil, dal, sugar, cosmetics etc. Of late, it has been found that few of the stores have been closed and the existing stores have not been functioning even satisfactorily. For instance, the number of sales depots which stood at 43 in has come down to 40 in In other words, the existing stores are not in a position to provide all /the essential commodities of daily use. Further, these stores do not offer credit facility to employees. G) LPG distribution to employees SCCL makes it mandatory that all the employees should possess LPG (Liquefied Petroleum Gas) connection for domestic use. In this regard, it reimburses the cost of 12 LPG cylinders in a year. Thus, the use of coal for cooking purposes in households is banned by not supplying coal to the employees. The SCCL arranged 19 LPG distribution points in all the colliery areas for the benefit of employees through Singareni Super Bazars. H) Employees Co-operative Credit Societies In India, most of the industrial workers suffer from indebtedness. It is shocking to know that two thirds of the workers in organisations are in debt and the extent of debt generally exceeds three months wages. As such, they are unable to pay the principal amount as well as interest. This makes it impossible to workers to come out of the clutches of money lenders. In this regard, cooperative credit societies help workers in meeting some of their urgent and 140

21 heavy expenses without resorting to exploitative sources. A worker who is obsessed with the problem of repayment can hardly be expected to be creative and efficient. Therefore, employers have to think of the ways and means of reducing indebtedness of workers and encourage them to form self-help groups. There are 49 cooperative credit societies functioning in the mines and departments of SCCL, which grant loans to the member employees for the purpose of meeting expenditure on the education of their children, purchase of two-wheelers etc. However, the loan facility is not available to executives. The cooperative credit society grants personal loans to a maximum of Rs.1.25 lakhs to the member employees. The loan amount is repayable either in 24 or 36 equated monthly instalments at an interest rate of 12 per cent. These cooperative credit societies would also accept the deposits from member employees. I) Ex-gratia Ex-gratia also known as distress relief and cash benefits is payable to the employees of the company in accordance with the provisions of national coal wage agreement. In view of this, the company used to pay an amount of Rs.30,000 as ex-gratia with effect from to the bereaved family of the workmen who died in fatal mine accidents and the same has been increased to Rs.45,000 from onwards. The management also pays a maximum amount of Rs.1 lakh in case of death of a workmen due to mine accidents or Rs.75,000 in case of death due to natural causes while on duty or Rs.5,000 in case of death due to other than the above two causes subject to the condition that his co-workers do not resort to sympathetic strike and contribute their 141

22 donation for the welfare of the bereaved family. The company as a part of agreement with the workers union agreed to pay a special ex-gratia of Rs.5 lakhs as detailed below. The payment of ex-gratia / special relief to the direct dependent of employee would be in addition to the amount payable under Workmen s Compensation Act In case of disasters or mine accidents, the company may specially announce ex-gratia. In that case, the amount of ex-gratia / special relief shall be the difference between the announced amount and Rs.5 lakhs. In any case, the amount of ex-gratia payable cannot exceed Rs.5 lakhs. Any other ex-gratia announced by outside agencies and not related to SCCL s fund may be paid to workers / employees. J) Special Welfare Amenities Program (SWAP) The company under the Special Welfare Amenities Program (SWAP) provides special welfare amenities in the workmen colonies, which include provision of water, power, street lights, drainage facilities, sanitary lines, removal of garbage, replacement of doors and windows, construction of roads, establishment of sulabh toilets etc. The special welfare measures also include voluntary sweeping, development and maintenance of parks and playgrounds. K) Coaching Camps for Employees Children The company in order to help the unemployed children of its employees and ex-employees and also the unemployed youth in the vicinity of coal field area 142

23 is organising free coaching camps to the willing persons to enable them to participate in army and police recruitments. The unemployed youth who are given training in the coaching camps are being paid to & fro train fares from coal field area to the place of selection and other miscellaneous expenditure incurred for their stay at the place of selection. It is to be worth mentioned that around 5,989 candidates were trained in Singareni Seva Samithi (SSS) for the selection of army and para military forces upto March 2010 and the number of candidates selected were 723 upto 31 st March L) Vocational Training for Employees Children Community development activities got an impetus when a social service organisation, namely Singareni Seva Samithi (SSS) was formed by SCCL under the Andhra Pradesh Public Societies Act. The Singareni Seva Samithi undertakes activities like training programs, self-employment schemes besides helping the children of employees in army recruitments. It also conducts educational training programs to the children of employees who died in harness. Further, it undertakes educational training programs to the unemployed youth who include daughters and sons of employees, ex-employees and also to spouses of ex-employees. All the same, in order to make the educated but unemployed children of employees as self employed, it has been organising training programs free of cost to the eligible unemployed children in photo lamination, screen printing, dress making, and electrical courses etc in the coal field areas. The company is imparting training in 13 categories through Khadi Gramodyog Mahavidyalaya, Rajendra Nagar, Hyderabad under the aegis of 143

24 Singareni Seva Samithi. The Samithi trained as many as 6,187 candidates out of which 1,547 of them have become entrepreneurs and started earning on their own. M) Scouts and Guides The SCCL started Bharat Scouts & Guides Singareni Collieries District Association in The company provides financial assistance to the Singareni District Association (SDA) for enrolling the students of SCCL as Scouts and Guides and also as Rovers and Rangers. The association is undertaking voluntary services to provide assistance at the time of eye camps, health camps, pulse polio programs etc. Further, it renders services to control the crowds at the time of Brahmotsavams at Tirumala Tirupati Devastanam and also on Sri Rama Navami and Mukkoti Ekadasi festivals at Bhadrachalam. It is to be noted that the association organises Shantiyatras (peace rallies) in all the mining areas with participation of school children of all the surrounding areas and Scouts & Guides of all Areas. N) Family Planning The company educates and enlightens its employees about the need for small family and the resultant benefits. In this regard, it conducts family planning operations (Vasectomy and Tubectomy) in the company hospitals. Further, the company with a view to encourage vasectomy operations gives a cash incentive of Rs.1,000 to male employees, which is in addition to the incentive amount given by the Andhra Pradesh State Government. It also gives a cash incentive of 144

25 Rs.800 to women employees who undergo tubectomy operation, which is in addition to the cash incentive given by the Andhra Pradesh State Government. The details of the family planning operations conducted in the company hospitals for the period from to have been presented in Table 4.4. The table shows that the number of family planning operations conducted has declined from 2,046 in to 1,474 in Though, an increase is noted in , again the number of operations conducted has declined continuously and stood at 852 in The per cent of change in the family planning operations conducted fluctuated between a low of per cent in and a high of 5.22 per cent in Table-4.4 Number of Family Planning Operations conducted in SCCL Year No of family planning % of change over operations conducted previous year , , , , , , , Source: 145

26 O) Improving Good Habits among Employees The company encourages its employees to give up bad habits. In this regard, it educates and enlightens the employees about the adverse impact of bad habits upon their health. It counsels employees about the need for giving up bad habits such as smoking, alcoholism, gambling and Gutka chewing. It also takes an oath from those employees who gave up their bad habits that they will not resort to bad habits again. The company maintains a record of employees who discontinued their bad habits at each Mine Vocational Training Centre. Apart from the above, the company is campaigning issues like malaria prevention, importance of sanitation, and nutrition, diabetes control, prevention of heart diseases and HIV/AIDS to bring greater awareness on health and human development among employees. P) Women Welfare The SCCL is highly women-welfare oriented. It constituted Women s Cells with the women employees for effective functioning and also to redress their problems relating to their employment in writing to the convenor of the Women s Cell concerned. The convenor of the Women s Cell of the Area concerned conducts regular meetings with the committee members for redressing the grievances of women employees. Further, the Corporate Women Cell celebrates the International Day for Women on 8 th March every year by conducting quiz and cultural programs. Mementoes are presented to the winners on the occasion of International Day for Women. The company also formed an 146

27 association called Singareni Employees Wives Association (SEWA) in all mining areas with the active participation of wives of employees. The association inculcates the habit of thrift among women employees. It also educates and enlightens women employees about the need for health and hygiene, literacy, children s education, safety, post-retirement planning etc. Q) Welfare Expenditure The company as a model employer is employee welfare oriented. However from onwards, there is a significant change in the attitude of management as employee-welfare expenditure declined year after year. Table- 4.5 is indicative of the details of the same. The table shows that the total expenditure incurred on employee welfare has increased from Rs.23,756 lakhs in to Rs.25,251 lakhs in Though it declined marginally to Rs.25,190 lakhs in , again it has increased continuously for five years and stood at Rs.46,800 lakhs in Since then, the total expenditure incurred on employee welfare has declined continuously and stood at Rs.32,090 lakhs in The annual growth rate of total welfare expenditure fluctuated between a low of per cent in and a high of per cent in In case of the welfare expenditure incurred per employee, it has increased continuously from Rs.18,740 in to Rs.54,403 in After that the welfare expenditure incurred per employee has declined for two years and stood at Rs.45,759 in Though the per capita welfare expenditure increased marginally to Rs.46,824 in , again it has declined to Rs.46,478 in The annual growth rate of this expenditure varied 147

28 between a low of per cent in and a high of per cent in Year Table 4.5 Expenditure on Welfare Measures Total Expenditure (Rs. in lakhs) Annual growth (%) Expenditure per employee (In Rupees) Annual growth (%) ,756-18, , , , , , , , , , , , , , , , , , , , , , , Source: SOCIAL SECURITY SCHEMES The company provides various social security benefits such as Provident Fund, Gratuity, Pension, Group Insurance, Family Benefit Insurance, Janata Personal Accident Insurance Scheme etc. Further, it also provides various social security benefits to the dependants of those who died in harness or who died in fatal mine accidents. The company settles all the terminal benefits to workmen 148

29 and employees on the last day of retirement of an employee with the help of Area Terminal Benefit (ATB) Cells. A brief discussion in this regard would explain the various social security benefits provided by the company to its employees. A) Coal Mines Provident Fund The Coal Mine Provident Fund Scheme though has been in operation since 1948 in the states of Bengal and Bihar made applicable to the miners in Andhra Pradesh with effect from The Act covers all the employees in mines irrespective of the quantum of wages and salaries drawn by them. The statutory rate of contribution for employees is fixed at 12 per cent of wages. The management also makes a matching contribution and the accumulations carry an interest rate of 10 per cent. The Act provides refundable and non-recoverable advances to the members from their provident fund. These advances are given for the purchase of dwelling sites or for the construction of dwelling houses or for meeting the marriage or educational needs of employee s children. The PF amount is refundable in case of employees having completed 10 years of service or retirement due to superannuation or permanent and total incapacity to work. It is also refundable under circumstances such as mass retrenchment by the employer and also due to the migration of employees to other countries. B) Group Gratuity Scheme Gratuity is a statutory liability of most of the employers, which accrue to an employee for every year of service put in by him. As the liability accrues every year, it is desirable to provide for this liability before the profits are determined. 149

30 The group gratuity scheme provides a scientific method for funding gratuity liability. The attractive feature of the scheme is life insurance cover to every employee due to which, in the event of the premature death of an employee, his dependants are entitled to substantially higher benefits. In view of the heavy financial burden of gratuity, SCCL has made an arrangement with Life Insurance Corporation of India with effect from and covers both Executives and Non-Executives besides the trainees in regular grade. Further, the scheme is also applicable to all the other employees who are covered under the gratuity rules of the company. The scheme envisages deposit of funds with LIC, which shall meet the liability on account of gratuity claims. In this regard, the company pays the required premium contributions to the LIC. The LIC in turn pays the gratuity to the employee or nominee for the period of service rendered by them as per the existing rules and limits. The scheme has a unique feature, which provides for payment of gratuity for the future service besides the payment of full Gratuity for the past service rendered in case of unfortunate death of the employee. In other words, nominee of the employee will receive gratuity for the period he has served and also gratuity for the period he would have served subject to a ceiling of Rs.3.5 lakhs. Over a period of time, the Gratuity rules have undergone changes due to wage agreements between the management and the trade union. For instance, in accordance with the NCWA-VIII, the maximum amount of Gratuity payable to an employee has been enhanced to Rs.10 lakhs with effect from

31 C) Coal Mines Pension Scheme-1998 The Central Government formulated the coal mines pension scheme and it had come into force with effect from 31 st March The pension scheme covers the following employees. All employees who are members of the ceased coal mines family pension scheme, 1971 and who are on rolls on 31 st March All such employees who are appointed on or after 31 st March All such members who opted for membership of the pension fund in form PS- 1 and PS-2 as the case may be with the condition specified under the scheme. All such employees who died while in service between and The company provides pension to all the eligible employees in accordance with the rules and regulations of coal Mines Pension Scheme. The coal mines pension scheme is made up of contributions by the employees, employers and also the central government. As per the scheme, each employee is required to contribute 2⅓ of his or her salary every month while the employer also makes a matching contribution. The central government also contributes 1⅔ per cent of the salary of the employee. The fund is administered by the Central Board of Trustees. It is to be worth mentioned that the payment of pension provides protection to workers and their families for a reasonably long period of time. The chief attraction of the pension scheme is that an employee with a minimum 151

32 period of service becomes eligible for a certain percentage of his salary as pension after his / her retirement from service. As per the coal mines pension scheme, an employee after completion of 30 years of pension service and on attaining the age of superannuation shall be eligible to receive monthly pension at the rate of 25 per cent of the average emoluments or not less than Rs.350 from the following date of superannuation till the date of his death. D) Group Insurance Scheme Insurance companies offer life insurance protection under group policies to various groups such as employers, employees, professionals, co-operatives, weaker sections of the society etc. These insurance companies provide insurance cover to people at subsidised premiums. The main features of the group insurance scheme are low premiums, simple insurability conditions and easy administration by way of issue of a single master policy covering all employees. In view of the importance of group insurance scheme, SCCL has made an arrangement with Life Insurance Corporation of India. Under this scheme, SCCL deducts an amount of Rs.200 per month from each employee and the same is paid to the LIC and the latter in turn pays an amount of Rs.2 lakhs if employees die due to natural causes or due to mine accidents. On the other hand, if employees retire from service, they are not entitled to any insurance benefits. E) Group Service Linked Insurance Scheme (GSLIS) In India, many employees find it difficult to provide adequate security for 152

33 their families. Further, individual insurance with high premium does not provide adequate insurance protection. In short, employee s need for insurance protection during service coupled with adequate savings for care free retired life remains unfulfilled. Keeping this in view, the LIC has come out with an attractive insurance scheme viz. Group Service Linked Insurance Scheme at a low cost. The salient features of the scheme are as follows. Protection at low cost without individual evidence of health. Attractive returns on savings to meet post retirement needs Simple procedures for granting life cover to large groups under one umbrella The SCCL in view of the benefits of the scheme tied up with LIC so as to provide insurance benefit to its employees. Under this scheme, the benefit given to employees is directly related to the premium paid by them. If an employee pays a premium of Rs.100 per month, the LIC in turn pays Rs.1 lakh after retirement or death. In case if the premium paid is Rs.65 per month, the LIC of India pays Rs.65,000 after retirement or death. F) Coal Mines Deposit Linked Insurance Scheme (CMDLIS) As per the Coal Mines Deposit Linked Insurance Scheme, employers are required to contribute 0.5 per cent of the aggregate wages of covered workers. The Central Government also contributes half of the amount contributed by the employers under the scheme. In the event of death of an employee in harness who was a member of coal mines provident fund, his/her nominee is entitled to 153

34 receive an amount equal to the average balance in the account of the deceased during the preceding three years, subject to a ceiling of Rs.10,000. G) Family Benefit Insurance Scheme (FBIS) Under this scheme, every employee has to contribute Rs.10 per month to the company. The company with the accumulated amount will take a group Insurance policy that will benefit the dependants of employees who die in harness. In case of death, due to natural causes or due to accidents, the LIC of India pays a compensation of Rs.10,000 to the nominee. In case of retirement, the LIC of India refunds the entire accumulated amount with 6 per cent interest rate. H) Janata Personal Accident Insurance Scheme (JPAIS) The Company has taken Janata Personal Accident Insurance Policy (JPAIS) from National Insurance Company Limited, Hyderabad. The JPAIS policy covers the lives of employees who are on the rolls of the company as on for two years for an assured amount of Rs.1 lakh at a one time premium payment of Rs.264 per employee. It is to be noted that the insured amount is payable only in case of death due to accidents. I) Terminal Benefits In respect of Mine Accident Cases In mining organisations, employees are prone to accidents due to roof falls, side falls, release of poisonous gases, inundation of water etc leading to the loss of valuable human lives. All the same, mortality is common among people 154