ARYA SCHOOL OF MANAGEMENT STUDIES

KEONJHAR (LC: 03288)

Project on
EMPLOYEE WELFARE SYSTEM
AT
MAHANADI COALFIELDS LIMITED

By

AJAY KUMAR SETHY

REGD NO-521155930

Under The Guidance Of

ASWATHAPPA. K.

MR. SOVANJEET MISHRA

(HEAD,HR)
Mahanadi Coalfields Limited,
Sambalpur

Faculty (HR)
Internal Guide

A Project Report Submitted in partial fulfillment of the requirements for

the degree of Master of Business Administration of Sikkim Manipal
University, Manipal

DECLARATION
I here by declared that the project entitled

EMPLOYEE WELFARE SYSTEM

AT
MAHANADI COALFIELDS LIMITED
Submitted is in the partial fulfillment of the requirement for
the Master of Business Administration from Sikkim Manipal
University is my own work and is not submitted to any other
institute or published any where else before and it is awarded
any other degree, diploma, or any similar title or prize.

Signature
Place- KEONJHAR

AJAY KUMAR SETHY

Regd no-521155930

Date -

ACKNOWLEDGEMENT
I take this opportunity to place on record my grateful thanks and
sincere gratitude to

Mr. ASWATHAPPA. K. (HR),

Mahanadi Coalfields

Limited, Sambalpur, who has give me this opportunity to conduct the

project work in this organization. My study could not have been
completed if I had not been able to get the reference materials from the
organization. I am also highly indebted to my esteemed guide Mr.
ASWATHAPPA, K., who encourages me all the time without which this

project could not be completed.

I also take pleasure to express my heartfelt gratitude to my Project

Guide MR. SOVANJEET MISHRA Faculty, HR Arya School of
Management Studies who encourage me all the time without which
this project could not be completed.
I also like to thank my parents for their moral and financial support
in time, which helps me a lot in completing the project
successfully.
Signature

AJAY KUMAR SETHY

REGD NO-521155930

CERTIFICATE

This is to certify that AJAY KUMAR SETHY bearing Reg.

No. 521155930 has successfully completed the organizational study
and submitted her project work entitled in our organization under
partial

fulfillment

EMPPLOYEE

for

the

award

WELFARE

of

MBA programme

SYSTEM

AT

in

MAHANADI

COALFIELDS LIMITED Arya School of Management Studies,

Keonjhar, Odissa under Sikkim Manipal University.

Mr. ASWATHAPPA, K.
(HR)

Mahanadi Coalfields
Limited, Sambalpur,

UNIVERSITY STUDY CENTRE CERTIFICATION

This

is

EMPPLOYEE

to

certify

that

WELFARE

the

project

SYSTEM

AT

report

entitled

MAHANADI

COALFIELDS LIMITED submitted in partial fulfillment of the

requirements for the degree of Master of Business Administration of
Sikkim - Manipal University of Health, Medical & Technological
Sciences. Ajay Kumar Sethy has worked under my supervision and
guidance and that no part of this project report has been submitted for
any award of any other degree, Diploma, Fellowships, or any other
similar titles and that work has been published in any journal or
magazine.

Certified

Reg. No. 521155930

Place : Keonjhar

MR. SOVANJEET MISHRA

Date :

MBA

EXAMINERS CERTIFICATE
THE PROJECT REPORT OF

AJAY KUMAR SETHY

REGD NO - 521155930

EMPLOYEE WELFARE SYSTEM

AT
MAHANADI COALFIELDS LIMITED

(MCL)
IS APPROVED AND IS ACCEPTABLE IN QUALITY AND FORM.

INTERNAL EXAMINER

EXTERNAL EXAMINER

NAME: -

NAME: -

QUALIFICATION: -

QUALIFICATION: -

DESIGNATION: -

DESIGNATION: -

INTRODUCTION
Introduction of the study:
Among the greatest gifts that mother nature bestowed upon this great land of
ours are the rich coalfields which lie beneath its surface, seams which
provide the nation with a heritage of bountiful stocks of energy. Indias
prospective and powers are based largely on coal. Because progress and
civilization makes ever increasing demand on heat energy, her easily
accessible and thick coal seems have given Indian the means to play a major
role in the field of human progress and prosperity and that is what is being
done by coal India and Indias coal Industries.
Types of Coal :
Depending on certain characteristics coals are divided into four broad
categories; viz
1) Anthracite coal
2) Bituminous coal
3) Lignite
4) Peat
Bituminous coal with which we are mainly concerned available as:
a) cooking coal
b) Non cooking coal
Major coalfields in India
Indias major coalfields are Raniganj mostly in West Bengal and partly in
Bihar, Jharia, Karanpur, Bakaro, Rajmahal etc in Bihar, Warda velly and
Kamptee coalfields in Maharastra, Korba, Penchvelly, Tawa-velly and
Chirimri etc.in Madhya Pradesh, Singrauli- partly in MP and UP. Talcher
and Ib velly in Orissa, Assam coalfields in Assam, Meghalaya etc. and
Singareni coalfields in Andhra Pradesh.

How is Coal mined?

Coal is mined by two methods.
1) Quarrying or open-cast
2) Underground or deep

Objectives of the Study:

The objectives of the study, Employee Welfare system in MCL are as
follows:
The main aim of the study is to find whether welfare activities contributes to
the productivity of the organization, MCL.
1) To find the satisfaction level of the employee with the welfare
measures taken by the MCL
2) To know the motives of MCL behind the welfare activities.

Scope of the study:

The scope of the project is limited to Mahanadi Coalfields Limited
which mainly concerned with the following:
1) Determining the need of further improvement in welfare measures
taken by MCL.
2) To assess the effectiveness of welfare system.
3) Motivating employee; by indicating the development in welfare
measures.

Limitation of the study:

The proposed study has conducted and the project report was
prepared with in the constraints of time and money.

The finding of the study depends upon the accuracy of previous

data and opinion of the employees.

 The information obtained from the employees is not optimum.

This study is concerned with a limited area.

About Commercial Coal Mining in India:

During British Rule (in 1774) at the instance of Warren Hastings, the then
Governor General of India, for the manufacture of arms and ammunition
work permission was granted to M/s. Summer and Heat for commencing
coal mining operations for the first time in the country on the Western banks
of Damodar river. The mines were of small open cast type, manually mined
in the land area between Dishergarh and Raniganj town.
Between 1815 to 1820 the first Shaft-Mining operations, i.e.underground
mining operations were started in one of the mines near the Raniganj Town.
In 1835 the entire mining operations which were being carried on was
passed into the hands of Prince Dwarkanath Tagore and Carr. Tagore & Co.
was formed.
In 1843 Carr. Tagore & Co. and another company i.e., M/s. Glimore
Homfray & Co. were amalgamated to form the first Joint Stock coal
Company in India and was known as Bengal Coal Company Ltd.
In 1853 due to the opening of the Indian railways and the introduction of the
steam engine the demand of coal increased.
The increase in coal production from 1850 to 1900 was mainly due to the
expanding network of Indian Railways.
The increase in coal production from 1900 to 1920 was mainly due to the
First World War.
The increase in coal production from 1920 to 1946 was predominantly due
to the Second World War.
This was the scenario before independence. After independence the work of
nation building was started.

For the second five year plan period stress was given on building Heavy
industries in the country and accordingly the demand for coal increased
substantially.
Due to the increasing demand of coal, it was felt by the government that the
supply could not be met only by the existing network of companies and thus
was the requirement to restructure the coal companies were felt necessary.
Accordingly, the 11 collieries which were under the different Railway
Companies were brought under one umbrella and the first coal company of
the Central Government was incorporated in October, 1956 and was called
the National Coal Development Corporation Ltd.
As years passed and demand for coal kept on increasing the private owners
were indulged in a number of malpractices and since the coking coal
reserves were limited(which is existing even today) there was requirement
for taking over the coking coal mines. It was also felt that the safety
standards were being violated, and there was the need for infusing more
capital investment; selective, wasteful and slaughter mining was required to
be halted and the general standard and quality of the employees had to be
uplifted.
Thus, on 16.10.1971, the entire Coking coal mines were taken over by the
Central Government and on 1.5.1972 they were nationalized.
Thus, the first Government owned Coking Coal Company; Bharat Coking
Coal Limited was formed.
The private owners of the non-coking coal mines were indulged in rampant
malpractices, violating safety norms. Their sole objective was to maximize
profits and consequently, the life, security and future of the 3.5 lakh
employees were in jeopardy. Thus, the Government had to act fast and
accordingly the Non-coking coal mines were taken over on 30.1.1973 and
they were nationalized on 1.5.1973. COAL MINES AUTHORITY
LIMITED (CMAL) was formed and NCDC Ltd was brought under its fold.
The CMAL was operating through three divisions;
Eastern , Western and Central Divisions.
To make the management of the coal mines easier it was felt that there
should be only one company to monitor and after doing further restructuring
COAL INDIA LIMITED was formed on 1.11.1975.
10

The following Subsidiaries were being monitored by Coal India Limited:

1.
2.
3.
4.
5.

Bharat Cooking Coal Limited(BCCL)

Eastern Coalfields Limited(ECL)
Central Coalfields Limited(CCL)
Western Coalfields Limited(WCL)
Central Mine Planning and Design Institute Limited (CMPDIL):
This was the non-producing subsidiary.
6. Northern Coalfields Limited
7. Mahanadi Coalfields Limited.
8. South Eastern coalfields Limited.
After this further restructuring was done and eventually on and from
1.4.1986 two more Subsidiaries were carved out of CCL and WCL. South
Eastern Coalfields Limited (SECL) and Northern Coalfields Limited (NCL)
being the Sixth and Seventh Subsidiaries of Coal India Limited.
On 3.4.1992 the eight Subsidiaries, known as Mahanadi Coalfields Limited
(MCL) came into existence.
The headquarters for these subsidiaries are located at the following places:SECL

-Bilaspur

WCL

-Nagpur

NCL

-Singroli

ECL

-Sanitoria

CCL

-Ranchi

BCCL

-Dhanbad

CMPDIL

-Ranchi

MCL

-Sambalpur

Formation of Coal India:

11

The Non-cooking coal mines were owned by the Coal Mines Authority
Limited (a Govt. of India enterprise) for nearly 3 years and managed through
3 Divisions viz. Eastern, Western & Central division.
In the year 1975 ,Coal India limited was formed a holding company with the
registered office at 10, Netaji Subhash Chandra road ,Calcutta-700001and
BCCL & NCDC were transferred to CIL as on 1.1.1993 coal India has
seven coal production subsidiary companies and one subsidiary for planning
, designing and research.
Company profile of CIL:
1) India is the 3rd largest coal production country .CIL contributes 88% of
coal production in India. It is the largest coal producing company in the
world.
2) CIL give employment to 5, 01, 419 person and is the largest corporate
employer in India.
3) In terms of turn-over CIL is the 2nd largest company in India the growth in
turn-over during the last 5 year is 122%.
MISSION OF COAL INDIA:
To produce the planned quantity of coal efficiently and economically with
due attention to safety, conservation and quality environment & marketing.
BUSINESS OBJECTIVES OF COAL INDIA
The main business objectives for which the company was established are:
1)To Carry On Business Of Coal Mining :
To carry on business of coal mining including the management of coal mines
either independently or for and on behalf of under the direction of the central
government or any state governments whether as custodian receiver or in
any similar capacity.

12

2)Acquisition of safe mining :

To acquire coal mines by Purchase, Lease, License, grant Amalgamation or
otherwise to produce or otherwise engage generally in the production, sale
and disposal of coal and it by products.
3)Mining coal , manufacturing coke and other business :
To mine, quarry or beneficiate coal and manufacture coke and other products
of coal, purchase or otherwise acquire all minerals and other materials of
every kind needed for or resulting from the mining, manufacturing
production or processing of coal, coke and other by products of every kind.
4)Manufacturing trading and other business :
To carry on the business of buying, selling ,importing , production trading
manufacturing, or otherwise dealing in all products made of iron and steel,
come coal ,manganese, limestone, refractory and other allied industry and
for that purpose to install, operate and manage all necessary plant and
mines.

The mining in Orissa, before 1987 was under the central coal Fields Ltd. but
after the formation of S.E.C.L. in 1987, Orissa was brought under it.
However, to exploit the vast mining opportunity in Orissa, C.I.L. formed
another subsidiary in 1992, called the Mahanadi Coal Field Ltd. (MCL)
which was its headquarters in Sambalpur district, at Burla town.
Apart from the 8(eight) subsidiaries, CIL has another unit called the Assam
Coal Fields, which is directly under its control.

13

CIL Structure

COAL INDIA
1975

NEC
1975

EASTERN
COALFIELDS
LTD. 1975

BHARAT
COKING
COAL
LTD1973

NORTHERN
COALFIELDS
LTD 1986

SOUTH
EASTERN
COALFIELDS
LTD 1986

CENTRAL
COALFIELDS
LTD 1975

CENTRAL MINE
PLANNING AND

WESTERN
COALFIELDS
LTD 1975

MAHANADI
COALFIELDS
LTD 1992

DESIGN INSTITUTE
1975

MCL PROFILE
Established

03.04 1992 as a subsidiary of coal India Ltd.

Headquarter

Sambalpur, Orissa.
14

Coal production :

23.14 MT in 1992-93
88 MT in 2007-08
99 MT in 2008-2009
TARGET IN 2009-10 is 115 MT

Position

2nd largest coal producing subsidiary of CIL

No. of Mines

21 in Total
14 open cast mines
7 underground mines

Manpower

21,742 as on 03.04.1992
20, 786 as on 01.04.2008
20,869 as on 01.04.2009

MCL is the 2nd highest coal producing and 2nd highest profit making Coal
Company in India. It has the highest productivity. In a year or it is most
likely to become numero-uno lead the coal industry and stay ahead for long.
Established on 3rd April 1992 with its corporate headquarters at Sambalpur in
Orissa, MCL is subsidiary of CIL .It has exited prodigious capabilities
during its childhood although the journey being arduous and full of thorns.
In 2007 when it has became an adolescent, It is to acquire a most respectable
status to be with awe and envy it became a MINI RATNA on 15th MARCH
2007.

Geographical organization of MCL

15

TALCHER COALFIELDS
1. Jagannath area (19-09-1988)

IB VALLEY COALFIELDS
1. Orient area (06-11-1992)

2. Bharatpur area (13-04-2006)

2. Ib valley area (01-04 -1978)

3. Talcher area (19-09-1988)

3. Basundhara area and

Garjanbahal area(04-02-1955)

4. Lingaraj area (24-11-1997)

4. Lakhanpur area (22-01-1992)

5. Hingula area (16-01-1955)

5. Talabira area (01-11-2005)

( ) . Bracketed date shows the date of formation of area.

TALCHER COAL FIELD-42.98%

IB VALLEY COAL FIELD-57.02%

MCLs Purpose:
To bring smile in every hut.

MCLs Mission:
16

To produce and market the planned quantity of coal and coal products
efficiently and economically with due regard to safety, conservation and
quality.

MCLs Vision :
To be the leading energy supplier in the country, through best practices from
mine to market.

MCLs Strategy:
Quick conversation of oppertunity in to strength. ceaseless creation of
infrastructures in mines.

OBJECTIVES OF THE MCL:

To optimize generation of internal resources by improving

productivity of resources preventing wastage and to mobilize adequate
external resources to meet investment needs.

To maintain high standards of safety and strive for accident free

mining of coal.
To lay due emphasis on afforestation, protection of environment and
control of population.
To undertake detailed exploration and plan for new projects to meet
the future coal demand.
To modernize existing mines.
To develop technical know- how and organizational capability of coal
mining as well as coal beneficiation and undertake ,where ever
necessary ,applied research and development work related to scientific
exploration as well as better utilization of coal.

17

 To provide adequate number of skilled manpower to run the operation.

And impart technical and managerial training for up-gradation of skill.
To improve consumer satisfaction.

WELFARE CONCEPT
After employees have been hired, trained and remunerated, they need to
retained and maintained to serve the organization better. Welfare facilities
are designed to take care of the well-being of the employees-they do not
generally result in any monetary benefit to the employees. Not are these

18

facilities provided by employers alone. Governmental and non-governmental

agencies and trade unions too, contribute towards employee welfare.
MEANING AND DEFINITION :
Welfare means faring or doing well. It is a comprehensive term, and refers
to the physical, mental, moral and emotional well-being of an individual.
Further the term welfare is a relative concept, relative in time and space. It,
therefore, varies from time to time, from region to region and from country
to country.
Labour welfare, also referred to as betterment work for employees, relates to
taking care of the well-being of workers by employers, trade unions, and
governmental and non-governmental agencies. It is rather difficult to define
the term labour welfare precisely because of the relativity of the concept.
Reported the royal commission on labour.
Labour welfare is a term which must necessarily be elastic, bearing a
somewhat different interpretation in one country from another, according to
the different social customs, the degree of industrialization and educational
level of the workers.
However, the ILO at its Asian regional conference, defined labour welfare as
a term which is understood to include such services, facilities and amenities
as may be established in or in the vicinity of undertakings to enable the
persons employed in them to perform their work in healthy, congenial

19

surroundings and to provide them with amenities conducive to good health

and high morale.
Labour welfare has two aspects-negative and positive. On the negative side,
labour welfare is concerned with counteracting the baneful effects of the
large-scale industrial system of production-especially capitalistic, so far as
India is concerned-on the personal/family, and social life of the worker. On
its positive side, it deals with the provision of opportunities for the worker
and his/her family for a good life is understood it its most comprehensive
sense.
Merits and demerits of welfare measures :
Labour welfare is justified for several reasons; it is desirable to recollect the
services of a typical worker in this context. His/her labour helps dig and haul
cola form the depths of the earth-to fetch and refine oil, to build dams and
reservoirs, to play pipes canals, railway lines and roads. His/her labour
creates and transmits power, and through various phases of manufacturing,
parents raw materials into finished products of necessity as well as of luxury.
The industrial worker is indeed a soldier safeguarding the social and
economic factors of the industrial economy, and his/her actions and
interactions within the industrial framework will have a great impact and
influence on industrial development.
The social and economic aspects of the life of a worker have a direct
influence on the social and economic development of the nation. There is
20

every need to take extra care of the worker to provide both statutory and
non-statutory facilities to him/her.
Another argument in favour of employee welfare is that the facilities help
motivate and retain employees. Most welfare facilities are hygiene factors
which, according to Herzberg, create dissatisfaction if not provided remove
dissatisfaction, place an employee in a favorite mood, provide satisfiers, and
then motivation will take place. Welfare facilities, besides removing
dissatisfaction, help develop loyalty in workers towards the organization.
Welfare may help minimize social evils, such as alcoholism, gambling,
prostitution, drug addiction, and the like. A worker is likely to fall a victim
to any of these if he/she is dissatisfied or frustrated. Welfare facilities tend to
make the worker happy, cheerful and confident looking.
A further argument in favour of welfare is that a reputation for showing
concern helps improve the local image of the company as a good employer
and thus assists in recruitment. Welfare may not directly increase
productivity, but it may add to general feelings of satisfaction with the
company and cut down labour turnover.
Arguments against labour welfare are obvious. Welfare implies DoGooding. The personnel management fraternity has spent many years trying
to shake off their association with what they, and others, like to think of as,
at best peripheral and redundant welfare activities. Welfare is provided for
by the state services. Why industrial, commercial should or public sector
organizations duplicate what is already there? The private affairs of
21

employees and their off-the-job interests should not be the concern of their
employers. It is selfish to maintain large playing fields and erect huge sports
pavilions if they are going to be used by a minute proportion of staff for a
very limited period of time-the space and facilities could be better used by
the community. The argument that the provision of welfare services
increases the loyalty and motivation of employees has long been exploded.
If welfare services are used at all, they are taken for granted. Gratitude is not
a prime motivating factor. In fact, gratitude is a thing of the pastremembered for a shot time and forgotten soon after.
Types of welfare activities :
The meaning of labour welfare may be made clearer by listing the activities
and facilities which are refereed to as welfare measures.
A comprehensive list of welfare activities is given by Moorthy in his
monumental work on labour welfare. He divides welfare measures into two
broad groups, namely:
1.

Welfare measures inside the work place ;and

2.

Welfare measures outside the work place.

Each group includes several activities.

Welfare measures inside the work place :
(I)

Conditions of the work environment

22

(a)

Neighborhood safety and cleanliness; attention to approaches.

(b)

Housekeeping; up keeping of premises compound wall,

lawns, and gardens. And so forth, egress and ingress, passages
and doors; white washing or walls and floor maintenance.

(c)

Workshop (room) sanitation and cleanliness; temperature,

humidity ventilation, lighting, elimination of dust, smoke,
fumes, gases.

(d)

Control of effluents.

(e)

Convenience and comfort during work, that is, operative

posture, seating arrangements.

(f)

Distribution of work hours and provision for rest hours, meal

times and breaks.

(g)

Workmens safety measures that is maintenance of machines

and tools, fencing of machines providing guards, helmets,
aprons, goggles, and first-aid equipment.

(h)

Supply of necessary beverages, and pills and tablets, that is,

salt tablets, milk, soda.

(i)

Notice boards; posters, pictures, slogans; information or

communication.

(ii)

Conveniences :
(a)

Urinals and lavatories, wash basins, bathrooms, provision for

spittoons; waste disposal.

(b)

Provision of drinking water; water coolers.

(c)

Canteen services: full meal, mobile canteen.

(d)

Management of workers cloak rooms, rest rooms, reading

room and library.
23

(iii)

Workers health services factory health center; dispensary,

ambulance, emergency aid, medical examination for workers; health

education, health research; family planning services.
(iv)

Women and child welfare antenatal and postnatal care, maternity

aid, crche and child care; womens general education; separate
services for women workers, that is, lunch rooms, urinals, rest rooms,
womens recreation(indoor); family planning services.

(v)

Workers recreation indoor games; strenuous games to be avoided

during intervals of work.

(vi)

Employment follow-up progress of the operative in his/ her work; his/

her adjustment problems with regard to machines and workload,
supervisors and colleagues; industrial counseling.

(vii) Economic services co-operatives, loans, financial grants ; thrift and

saving schemes ; budget knowledge, unemployment insurance, health
insurance, employment bureau. Profit-sharing and bonus schemes;
transport services; provident fund, gratuity and pension; rewards and
incentives; workmens compensation for injury; family assistance in
times of need.
(viii) labour management participation
(a) Formation and working of various committees, that is works,
committee, safety committee, canteen committee; consolation in
24

welfare area, in production area, in the area of administration, in

the area of public relations.
(b) Workmens arbitration council.
(c) Research bureau.
(ix)

Workers education reading rook, library, circulating library; visual

education; literary classes, adult education, social education; daily
news bulletin; cooperation with workers in education services.

Welfare measures outside the work place :

(I)

Housing; bachelors quarters; family residences according to types

and rooms.

(II)

Water, sanitation, waste, disposal.

(III) Roads, lighting, parks recreation, playgrounds.

(IV) Schools: nursery, primary, secondary and high school.
(V)

Markets, co-operatives, consumer and credit and societies.

(VI) Bank
(VII) Transport
(VIII) Communication: post, telegraph and telephone.
(IX) Health and medical services; dispensary, emergency and ward, outpatient and in-patient care, family visiting; family planning.
(X)

Recreation: games ;clubs craft canteens ; cultural programmes, that

is, music clubs; interest and hobby circles; festival celebrations ;
25

study circles; reading room and library ; open air theatre, swimming
pool; athletics, gymnasia.
(XI) Watch and ward; security.
(XII) Community leadership development; council of elders; committee of
representatives; administration of community services and problems;
child, youth and womens clubs.
Welfare facilities may also be categorized as (a) intra-mural and (b) extramural.

Intra-mural facilities :
Intra-mural activities consist of facilities provided within the factories and
include medical facilities, compensation for accidents, provision of crches
and canteens, supply of drinking water, washing and bathing facilities,
provision of safety measures, activities relating to improving conditions of
employment, and the like.
Extra-mural facilities :
Extra-mural activities cover the services and facilities provided outside the
factory such as housing accommodation, indoor and outdoor recreational
facilities, amusement and sports, educational facilities for adults and
children, and the like.
It may be stated that the welfare activities may be provided by the employer,
the government organizations and the trade unions, while, what employers
26

provide will be stated later, the activities undertaken by other agencies are
mentioned here.
Welfare facilities by the government :.
With a view of making it mandatory for employers, to provide certain
welfare facilities for their employees the government of India has enacted
several laws from time to time. These laws are the factories act, 1948; the
mines act, 1952; the plantation labour act, 1951; the bidi and cigar workers
(conditions of employment) act, 1966; and the contract labour (regulation
and abolition) act, 1970. Another significant step taken by the central
government has been to constitute welfare funds for the benefit of the
employees, these funds have been established in coal, mica, iron-ore,
limestone, and dolomite mines. The welfare activities covered by the funds
include housing, medical, educational and recreational facilities for
employees and their dependents.

Welfare activities by the trade unions :

Labour unions have contributed their share of the betterment of the
employees, mention may be made here of the textile labour association of
Ahmedabad and the railway mens union and the Mazdoor Sabha of Kanpur,
which have rendered invaluable services in the field of labour welfare. The
welfare activities of the textile labour association, Ahmedabad, are worth
nothing. The association runs;
1.

Twenty-five cultural and social centers.

27

2.

Schools for workers children, reading rooms, libraries, gymnasia.

3.

Dispensaries and maternity homes.

4.

A co-operative bank, with which a number of housing societies,

consumers societies and credit societies are affiliated.

5.

Office offering legal help to members.

6.

Training programmers in the principles and practices of trade

unionism.

7.

A bi-weekly, the Mazdoor sandesh.

Welfare work by voluntary agencies :

Many voluntary social- service agencies have been doing useful labourwelfare work. Mention may be made of the Bombay social service league,
the seva sadan society, the maternity and infant welfare association, the
YMCA, the depressed classes mission society and the womens institute of
Bengal. The welfare activities of these organizations of recreation and sports
for the working class.
Statutory and non-statutory :
Welfare activities may also be classified into (i) statutory and (ii) nonstatutory provisions.
Statutory provisions
These are mandated by the factories act, 1948; the mines act, 1952; the
plantation labour act; 1951 and some other acts. Of all these, the factories act
is more significant and hence is covered in detail here.
28

The factories act. The act was first conceived in 1881 when legislation was
enacted to protect children and to provide health and safety measures. Later,
hours of work were sought to be regulated and were, therefore, incorporated
in the act in 1911. The act was amended and enlarged in 1934 following the
recommendations of the royal commission of labour. A more comprehensive
legislation to regulate working conditions replaced the act in 1948.
Labour welfare officer schedule 49 of the act provides that in every factory
where in 500 or more workers are ordinarily employed, the employer shall
appoint at least one welfare officer. The officer is expected to act as an
advisor, counselor, and mediator and lassoing officer between the
management and the labour, specifically, his/ her duties include the
following.
1.

Supervision of (i) safety, health and welfare programmes like

housing, recreation, and sanitation services (ii) working of joint
committees; (iii) grant of leave with wages; and (iv) redressal of
workers grievances.

2.

Counseling workers in (i) personal and family problems ;( ii)

adjustment to their work environment; and (iii) understanding their
rights and privileges.

3.

Advising management in matters of (i) formulating welfare

polices; (ii) apprenticeship training programmes ; (iii) complying
with statutory obligations to workers ;(iv) developing fringe
benefits; and (v) workers education.

29

4.

Liaison with workers so that they may (i) appreciate the need for
harmonious industrial relations in the plant; (ii) resolve disputes if
any; (iii) understand the limitations under which they operate
;and(iv) interpret company policies correctly.

5.

Liaison with the management so as to appraise the latter about

workers viewpoints on organizational matters.

Welfare provisions
Chapter V of the act provides for welfare facilities. Specifically, the act
provides for adequately screened washing facilities for the use of male and
female workers; for drying of wet clothes, resting places, first-aid boxes or
cupboards ( at the rate of one for every 150 workers is more than 150; and
crche facilities for the use of children if their number exceeds 30)
The act also stipulates that no adult worker should be allowed to work for
more them 48 hours a week. Daily working hours should not exceed nine
and the total number of hours spent in a factory is not to be more than 10
hours per day inclusive of rest pauses. Rest interval of half an hour should
be provided between five hours of work. Should be declared as a holiday.
Workers who put in more than nine hours a day or 48 hours a week should
be paid overtime wages and allowances. Shifts should be arranged in such a
way that they do not overlap. No worker should be employed twice on any
day.

30

Women workers are not to be employed during night or between 7 p.m. And
6 a.m. (though exceptions can be made). No child below 14 years of age is
to be employed in any factory.
Welfare funds
In order to provide welfare facilities to the workers employed in mica, ironore manganese ore, chrome ore and bidi rolling, welfare funds have been
established to supplement the efforts of employers and state governments
under respective enactments. The funds have been credited by levy of less
on production, consumption or export of minerals, and in the case of bidi
rolling, on the number sticks rolled. The funds are used to provide medical
facilities, housing, drinking water, schooling, recreation, and so forth.
Non-statutory benefits
Non-statutory benefits, also called voluntary benefits, include loans for
house building, education of children leave travel concession, fair price
shops, loans for purchasing personal conveyance and a host of other
facilities.
Approaches to labour welfare :
The various approaches to labour welfare reflect the attitudes and beliefs of
the agencies which are engaged in welfare activities. Welfare may be
provided on religious, philanthropic or some other grounds. Moreover, the
different approaches to labour welfare reflect the evolution of the concept of
welfare. In bygone days, the government of the land had to compel the
31

owner of an industrial establishment to provide such basic amenities as

canteens, rest rooms, drinking water, good working conditions, and so forth,
for those employees. Such compulsion was necessary because the employer
believed in exploiting labour and treating it in an unfair manner. But times
have changed, and the concept of welfare, too, has undergone changes.
Much progressive management today provides welfare facilities, voluntarily
and with enlightened willingness and enthusiasm. In fact, welfare facilities
are not restricted to the workers alone. They have now been extending to the
society in general. In other words, labour welfare has been extended to
include social welfare. Brooke have set up a free animal welfare clinic at
Gavrai, Aurangbad, under the direct charge of a qualified veterinary doctor
Jindal aluminium, Bangalore , maintains the famous naturopathy and yogic
sciences center and a public school for the benefit of the public. The Jindal
scholarship trust has been set up, under which deserving students are given
scholarships. The Hindustan Machine Tools (HMT) have a big playground
and a community hall, which are let out for competitions and functions.
A study of the approaches to labour welfare is desirable of the management,
the workers and the general reader. For the general reader, a study of
approaches is essential because his/her knowledge of the subject is
incomplete without knowledge of these approaches, and knowledge of
approaches enables the manager and the worker to have a better perspective
on welfare work.
The approaches and their brief description are:
1. The policing theory of labour welfare.
32

2. The religion theory of labour welfare.

3. The philanthropic theory of labour welfare.
4. The paternalistic theory of labour welfare
5. The placating theory of labour welfare
6. The public relations theory of labour welfare.
7. The functional theory of labour welfare.
8. The social theory of labour welfare.
Policing Theory :
According to this view, the factory and other industrial workplaces provide
ample opportunities for owners and managers of capital to exploit workers in
an unfair manner. This could be done by making the labour work for long
hours, by paying worker low wages, by keeping the workplaces in an
unhygienic condition, by neglecting safety and health provisions and by
ignoring the provision of elementary human amentias, such as drinking
water latrines, rest rooms and canteens. Clearly, a welfare state cannot
remain a passive spectator of this limitless exploitation. It enacts legislation
under which managements are compelled to provide basic amenities to the
workers. In short, the state assumes the role of a policeman and compels the
managers of industrial establishments to provide welfare facilities and
punishes the not-complier. This is the policing theory of labour welfare.

Religion Theory :

33

The religion theory has two connotations, namely, the investment and
atonement and atonement aspects. The investment aspect of the religion
theory implies that the fruits of todays deeds will be reaped tomorrow. Any
action, aspect of the religion theory implies that the fruits to todays deeds
will be reaped tomorrow. Any action god or bad, is therefore treated as an
investment. Inspired by this belief, some employers plan and organize
canteens and crches. The atonement aspect of the religion theory implies
that the present disabilities of a person are result of the sins committed by
him/her previously. He/she should undertake to do good deeds now to atone
or compensate for his/her sins. There is the story of a big jain employer who
firmly held the belief that the sport vision of welfare facilities for workers
was outside the duties of the management. Whatever he did provide was
under government compulsion and supervision. It so happened, however that
the children born to him died as soon as they were born. Later his health
suffered. He felt that as a compensation or expiration or even as an
investment in a good deed

(punyam) he should liberally contribute to

the crche in the factory (as well as to other child-welfare institutions) and
also to medical services for his workers consequently in this particular
factory, there came to exist an excellent crche and a well-organized
dispensary.
Philanthropic Theory :
Philanthropic means affection of mankind. The philanthropic theory of
labour welfare refers to the provision of good working conditions. Crches
and canteens out of pity on the part of the employers who want to remove
the disabilities of the workers. Robert Owen of England was philanthropic
34

employer. Who worked for the welfare of his own? The philanthropic theory
is more common in social welfare. Student bottles drinking water facilities.
The rehabilitation of crippled persons. Donations to religious and
educational institutions and so forth are examples of philanthropic deeds.

Paternalistic Theory :
According to the paternalistic theory, also called the trusteeship theory, of
labour welfare, the industrialist or the employer holds the total industrial
estate, properties and the profits accruing from them, in trust. The property
which he/she can use or abuse as he/she likes is not entirely his/her own.
He/she holds it for his/her use, no doubt, but also for the benefit of his/her
workers, if not for the whole society. For several reasons, such as low wages,
lack of education and so f the worker s are at present unable to take care of
themselves. They are therefore like minors and the employers should
provide for their well- being out of funds in theft control. The trusteeship is
not actual and legal, but it is moral and, therefore, not less real.
Placating Theory :
This story is based on the assumption that appeasement pays when the
workers are organized and are militant. Peace can be bought by welfare
measures. Workers are like children who are intelligent, but not fully so. As
crying children are pacified by sweets, workers should be pleased by welfare
works.

35

Public Relations Theory :

According to this theory, welfare activities are provided to create a good
impression on the minds of the workers and the public, particularly the latter.
Clean and safe working conditions, a good canteen, crche and other
amenities, make a good impression on the workers, visitors and the public.
Some employers proudly take their visitors round the plant to show how
well they have organized their welfare activities.
Functional Theory :
Also known as the efficiency theory of labour welfare, the functional theory
implies that welfare facilities are provided to make the workers more
efficient. If workers are fed properly, clothed adequately and treated kindly,
and if the conditions of their work are congenial, they will work efficiently.
Welfare work is a means of securing, preserving and increasing the
efficiency of labour.
Social Theory :
The social obligation of an industrial establishment has been assuming great
significance these days. The social theory implies that a factory is morally
bound to improve the conditions of the society in addition to improving the
condition of its employees. Labour welfare, as mentioned earlier, is
gradually becoming social welfare.
ADMINISTRATION OF WELFARE FACILITIES :
36

Administration or welfare involves decisions on (i) welfare policy, (ii)

organization of welfare, and (iii) assessment of effectiveness.
Welfare Policy :
The first step in welfare administration is to have a clearly defined policy
towards it. The policy must cover willingness of the management, objective
sought to be achieved, range of facilities to be provided, and the timing of
the facilities.
The question of unwillingness has only academic interest because, every
employer is compelled to provide welfare either by a statute, or precedence
already established by rivals, or out of genuine interest towards employee
welfare.
Objective of welfare must be to enhance efficiency of employees and not
merely to comply with the provisions of the Factories Act, 1948 ; the mines
act, 1952 ; the Plantations Labour Act, 1951; the Motor Transport Workers
Act; 1961; the Contract Labour (Regulation and abolition) Act, 1970; and
the Merchant Shipping Act, 1958.
Which of the eight approaches (discussed earlier) must guide the welfare
programmed? Surely, the approaches are guided by the objectives of welfare
activities. Since the main objectives are to enhance efficiency of employees,
the functional theory of labour welfare must be the managements approach
to employee welfare. However, the social theory should not be forgotten.
37

The range of welfare has two dimensions-types of facilities and coverage of

employees. With regard to coverage, it may be stated that the facilities must
be extended to employees at all levels in the organization.
Coming to the type of facilities, there are, as was stated earlier, two broad
categories: (i) facilities inside the workplace, and (ii) facilities outside the
workplace. Some of these are to be provided compulsorily and others out of
genuine concern for employee welfare. It is necessary that the employees
must go beyond the statutory requirement and offer facilities that would
contribute to employee loyalty, motivation and efficiency.
Happily, organization has realized the importance of welfare. They are
discovering innovative schemes and extending benefits to the employees.
Indian Telephone Industries (ITI), Bangalore, has a comprehensive welfare
manual running into 68 pages of printed lines. The facilities provided to the
employees in all the units of ITI are, divided into two broad categories.
Morarjee Mills, Mumbai, has a tradition of employee welfare. The company
was the first to start a mill hands co-operative society way back in 1965 it
self. As early as 1876 the mill was running a school for the children of mill
hands. The housing needs of every employee in Reliance, Hazira, are taken
care of by, the management. Now the company is going a step further. Four
kilometers from the 700 acre petrochemicals complex, Reliance is setting
up a township project which will comprise2000 houses. Estimated to cost
around Rs. 35 crore, the township will include-a school, playgrounds,
38

shopping recreational facilities, clubs, and the like. L&T, Bangalore, has a
unique scheme. The first Monday of every month is called the Family Day.
The employees families are invited to visit the plant and have lunch in the
canteen. Company transport is used to bring the families to the plant and to
take them back to their respective homes.
Welfare activities must be provided when there is a need for them and when
the time is opportune.
Organization for Welfare :
In most organizations welfare is the responsibility of welfare officers. The
Factories Act 1948 mandates that every industrial establishment must
appoint welfare officer if the number of employees is 500 or more. (The
number increases depending upon the number of employees) Welfare
officers are educated and trained in the field and are, therefore, in a better
position to manage welfare will. But the problem with these officers is that
they are more concerned with compliance of statutory provisions than with
the genuine well-being of workers. Legal provisions invariably stipulate that
certain minimum facilities should be provided to employees in industrial
establishments. The minimum facilities are inadequate to protect the welfare
of workers. Welfare officers, too, often fail to enforce compliance of even
the minimum requirements.
It is argued that the prime responsibility for welfare should rest with line
managers as they are in a vantage position to understand the problems of
employees. Even this arrangement may not be desirable because employees
39

are reluctant to share their personal problems with bosses, in case the latter
gets prejudiced against their (former) interests. In which case line managers
are no better than welfare officers.
The obvious alternative is the HR manager who knows how help can be
provided and is capable of exercising counseling skills. But the HR manager
is required to attend to other personnel activities as well. Welfare is one area
which demands undivided attention. Consequently an ideal organizational
arrangement is to have a welfare officer to implement welfare activities.
Policy decisions and directions shall be provided by the HR manager.
Assessment of Effectiveness :
Effectiveness of welfare must be assessed periodically. Feedback, thus
obtained, must act as the basis for initiating remedial actions where desired
results have not been obtained.
Assessment of the effectiveness of welfare is rather difficult because wellbeing of employees is abstract and is not possible to quantity. However. Two
methods of assessment may be mentioned in this context. They are - (i)
Trend analysis, and (ii) Opinion survey.
Trend Analysis As was stated earlier, welfare is sought to be justified
because of its impact on efficiency, turnover, and social evils. HR experts
must assess the impact of each of these before and after a particular worth
continuing. The scheme deserves to be discontinued if there is a fall in any
of the areas.
40

Opinion Survey The most effective assessment technique is to conduct a

survey and elicit opinion of employees on the welfare schemes. Employees
may be requested to express their views on the usefulness or futility of a
particular welfare scheme. Views thus obtained will help continue or
discontinue the activity.

SUMMARY
Labour welfare refers to taking care of the well-being of workers by
employers, trade unions, and doing good for him/her retaining and
motivating employees, minimizing social evils, and building up the local
reputation of the company are the arguments in favour of employee welfare.
41

Arguments against welfare are that the provision of welfare is the

responsibility of the state and welfare is often taken for granted and hence,
fails to motivate employees.
Welfare facilities may be confined to the workplace or may be provided
outside the workplace. Similarly, they may be intra-mural or extra-mural.
Several approaches to the study of welfare are available. They range from
the policing theory to the social theory.

Welfare Programmes in MCL

WAGES, WAGE STRUCTURE AND DEARNESS ALLOWLENCE
Components of Wage
The wage structure of employees in Coal Mining Industry shall consist of:
a) Basic Wage.
42

b) Special Dearness Allowance (SDA) at the rate of 17.95% of Attendance

Bonus or 1.795% of basic wage representing computed fringe benefit of
attendance bonus, such as contribution of provident fund, payment in lieu
of profit sharing bonus, gratuity etc.
c) Variable Dearness Allowance linked to the All India Consumer Price
Index Number for Industrial Workers (Base 1960=100) (hereafter called
Index Number) adjustable quarterly depending on variation in consumer
price index number above 1562.
Minimum Wage
a) The revised minimum wage for the lowest paid employee on surface in
the Coal Mining Industry covered by this Arrangement shall be Rs.
3689.23/- per month or Rs. 141.89 per day at the All India Average
Consumer Price Index Number for Industrial Workers (Base 1960=100) at
1562. This amount includes the minimum guaranteed benefit of Rs. 414.53
per month or Rs. 15.94 per day inclusive of Interim Relief.
b) The break up of the minimum wage of Rs. 3689.23 p.m. or Rs. 141.89 per
day as on 1st July. 1996.
c) The Variable Dearness Allowance will very according to the shift of the
Consumer Price Index Number.
Special Dearness Allowance
Special Dearness Allowance shall attract fringe benefits such as Provident
Fund, payment in lieu of profit sharing bonus and gratuity etc., the computed
fringe benefits which have been worked out at he rate of 17.95% of the
Attendance Bonus or 1.795% of the basic wage of the employee, will
continue to be paid and the same will be called Special Dearness Allowance.
43

This amount at the lowest minimum basic wage of Rs. 3300/- as computed
would be Rs. 59.23. The computed fringe benefits on Attendance Bonus
called Special Dearness Allowance will also attract all fringe benefits
applicable to dearness allowance.
OTHER ALLOWANCES
a) Washing Allowance
Employees who will be provided with uniform by the Management will be
paid a Washing Allowance at the rate of Rs. 40/- per head per month with
effect from 1.7.1999. In respect of nursing staff, however, the amount of
Washing Allowance payable to them will be Rs. 50/- per head per month
with effect from 1.7.1999. Where washing of uniforms is arranged by the
management the Washing Allowance will not be paid.
b) Transport Subsidy
i) Employees who do not utilise Companys transport either free or on
payment of nominal or subsided rate will be paid transport subsidy at the
rate of Rs. 5/- per day of actual attendance from 1.7.1999.
ii) In the case of an employee transferred to another Colliery, if such
employee is required to report at the old place of work from where he is
required to report to the new place of work for duty the existing arrangement
for transporting them from the old colliery to the new colliery will continue.
He will, however, get, Rs. 5/- per day of actual attendance with effect from
1.7.1999 as long he is required to report to the old place of work.

44

iii) Additional Transport Subsidy: Additional Transport Subsidy/Night Shift

Allowance at the rate of Rs. 7/- per day of work will be paid from 1.7.1999
to those in the last shift in night whether it is called night shift or C shift
commencing from 10.00 P.M. onwards.
iv) Conveyance Reimbursement: Scooter /Moped/Motor Cycle (Two
Wheeler) conveyance reimbursement will be paid at the rate of Rs. 12/- per
day of attendance. Employees getting Conveyance Reimbursement shall not
be entitled for Transport Subsidy. The existing employees who are having
valid driving license with ownership of the vehicle will be eligible for
conveyance reimbursement with effect from 1st January 2001.
c) Underground Allowances
i) The Underground allowance shall continue to be paid to those employees
working underground as defined under the Mines Act 1952 and Regulations
framed there under.
ii) The under ground allowance shall be payable from 1.7.1999 at the rate of
20% of the revised basic pay minus Rs. 1800/- per month or Rs. 69.23 per
day on pro-rata basis.
iii) In case of Assam (North Eastern) Coalfields, the Underground
Allowance shall be payable from 1.7.1999 @ 25% of revised Basic pay
minus RS. 1800/- per month or Rs. 69.23 per day on pro-rata basis.
iv) The Underground Allowance shall be treated as wages as hitherto and
will be taken into account for the following purposes:

45

1. Calculation of earned Leave/Annual Leave wages.

2. Payment for national/festival holidays.
3. Sick leave/Casual leaves with wage.
4. Overtime allowance.
5. Gratuity and Post Retirement Benefit Scheme.
6. Contributions towards CMPF/other contributory Provident Fund.
7. I.O.D. (Injury on Duty)
d) Working in Heavy Watery Conditions Underground
Rain coats, gum boots and hoods shall be provided to such of the workmen
who are exposed to heavy watery conditions in underground mines.
e) Traveling over Steep Gradients
Where traveling over steep gradients exceeds 1000 meters and the average
gradient is in excess of 1 in 3, an allowance of Rs. 1.90 per shift will be paid
to each of the workers working in such a mine or district or section with
effect from 1.7.1999. Where such traveling exceeds 2000 meters this
allowance will be Rs. 3.80 per attendance with effect from 1.7.1999.
NOTE: For this purpose, the average gradient means the level difference
between bottoms of pit or inclines mouth to the relevant working place
divided by the plan distance between the two places.
f) Dust
Workmen exposed to heavy dusty conditions at the place of work will be
provided with Dust Mask.
g) City Compensatory Allowance

46

The payment of CCA will be decided with in one month including rates and
date of payment. It was decided that CCA will continue to be paid and / or
be payable as per Govt. of Indias order/direction issued from time to time.
NOTE: It is clarified that the employees of Coal Companies /establishments
stationed for duty in Dhanbad and other coalfield areas, who are in receipt of
concessions, such as free fuel/ free house etc. will not be entitled to city
Compensatory Allowance.
LEAVE AND NATIONAL / FESTIVAL HOLIDAYS

a) Annual leave with wages will be continued to be governed by the

provisions of the Mines Act 1952.
NOTE : For the purpose of computation of attendance for determining the
eligibility for earned leave, all authorized paid leave (Sick Leave with full
pay, Casual leave with pay, Maternity leave with pay, days of absence on
account of injury arising out of employment or on account of occupational
disease with pay, as well as paid holidays) would be included. These paid
leaves would, however, not earn any further leave.
b) The prevalent practices in respect of Earned Leave, Casual Leave and
paid festival holidays will, however, continue if more favourable.
c) Sick Leave

47

i) The existing provisions relating to Sick Leave of 15 days with full pay in a
calendar year will continue. Sick leave with full pay will accumulate up to
90 days.
ii) Grant of Special Leave to employees suffering from Heart disease, TB,
Cancer, Leprosy, Paralysis. Renal disease , H.I.V. and Brain Disorder.
ii) A) Employees suffering from Heart Disease, TB, Cancer, Leprosy and
Paralysis, Renal diseases. H.I.V. and Brain diseases shall be granted leave at
50% of basic pay. VDA and SDA up to six months during the tenure of
service period on the basis of recommendation of the Company Medical
Officer or any other hospital to which the cases may be referred for
treatment by the Management.
B) It is also agreed that in case of relapse or otherwise continuance of
aforesaid ailments such of the employees shall be granted further leave at
50% of basic pay, VDA & SDA up to six months during the tenure of service
period of the basis of recommendations of the Company Medical Officer or
any other hospital to which the cases may be referred for treatment by the
management.
C) The modalities for grant of leave on account of Brain diseases will be
discussed and decided by the Standardization Committee.
iii) An employee suffering from Heart disease and advised rest by Specialist
will further be entitled to the above leave with half pay up to a period of six
months on the recommendations of the Company Medical Officer.
48

d) Casual Leave with pay

Casual leave can be granted 4 days at a time as per present practice. The
management agrees for grant of extension of leave in special circumstances.
Further modalities for grant of extension of leave can be discussed and
decided.
e) National/Festival Holidays
The existing eight National/Festival holidays will continue as at present.
RETURN RAILWAY FARE AND LEAVE TRAVEL BENEFIT
a) Currently employees are entitled to T.L.C. & LLTC once in a block of
four years. LTC may be availed of for 4 adult units maximum and up to a
distance of 750 Kms. each way in lieu of home town or more if the home
town is more than 750 km. from the place of duty. Alternatively, the
employees who have not adopted for LTC are eligible to receive RRF for
outgoing according to their entitlement every year under RRF scheme.
Besides, they are also entitled to LLTC in a block of 4 years ( in lieu for
RRF for self in a block of 3 years the 4th RRF being set off against LLTC)
NOTE:
i) Those employees who have availing RRF may opt for LTC in lieu of RRF
on or before 31.12.2001.
ii) Those employees who join after singing of this agreement will not be
entitled for RRF but will avail LTC.
b) Long Leave Travel Concession
49

i) The existing distance of 1700 Kms. each way in respect of block of 4

years Long Leave Travel Concession will continue.
ii) The maximum number of units that can be availed of the above benefit
will be 4 (Four) adult units.
iii) Where both wife and husband are employed in the same coal company,
they will be jointly to LTC/LLTC benefit subject to a maximum of 6 (Six)
adult units or actual number of family members of the workman concerned,
whichever is less, falling within the scope the Family as laid down in the
existing rules.
c) Class of Entitlement
In view of the change in salary structure, the entitlement of First class (NonAC) fare will be Rs. 3532/- (Basic pay) per month in respect of RRF and Rs.
3575/- (Basic pay) per month in respect of Leave Travel Concession. In
other words, employees drawing a basic pay of less than Rs. 3532/- (Basic
pay)per month will be entitled to RRF of Sleeper (Non-AC) class and in
respect of LTC/LLTC, those drawing basic pay les than Rs. 3575/- p.m. will
be entitled to Sleeper (Non-AC) class. Other conditions shall remain the
same.
HOUSE RENT ALLOWANCE
a) The Existing house rent allowance of Rs. 60/- per month will be increased
to Rs. 75/- per month with effect from 1.7.1999 and will be paid to those
employees who not been provided with residential accommodation.

50

b) Payment of house rent allowance will be regulated as indicated below:

i) Employees expecting those who have been allotted the following types of
houses individually will be eligible for house rent allowance at the rate of
Rs. 75/- per month.
I) Any pucca house consisting of one or more rooms with common or
separate latrine and bath.
II) House under New Housing Scheme, Low Cost Housing Scheme or single
room, arch type tenements with latrine and bath.
ii) If a double roomed house has been allotted to two workmen, both the
allottees shall be entitled to 50% of house rent allowance each i.e. Rs. 37.50
per month per head.
iii) If single roomed house is allotted to more than person or if a double
roomed house is allotted to more than two persons, all the allottees shall be
eligible for house rent allowance at the rate of Rs. 75/- per month.
iv) Employees who have been allotted a seat in the barracks or mess or
hostel shall be eligible for house rent allowance at the rate of Rs. 75/- per
month. Where husband and wife both happen to be employees and where
any one of them is allotted the same house of the type referred to in Clause
(i) above, they shall not be entitled to HRA.

51

v) Employees who have been allotted single room Arch type tenement
however will be entitled to house rent allowance if the house is not provided
with separate or common latrine / bathroom.
c) Rent Allowance for Employees in Urban Areas
The Govt. classification of the subject will be followed. The rate and date of
payment will be decided within one month.
d) House Rent Recovery
i) In respect of recovery of house rent from the employees provided with
residential accommodation, status quo will be maintained, except in case of
workmen provided with miners type or lower type quarters where no
recovery of house rent will be made.
ii) Merely as a consequence of an increase in basic wage in terms of this
agreement, there will not be any change in the eligibility of the workmen for
allotment of different type of quarters, nor there will be an increase in the
house rent.
e) Recovery of Electricity Charges
In the Coalfields area where the employees are provided with quarters by the
Management and also electricity from the bulk supply obtained by them
from the electricity Boards or other agencies, the employees shall be entitled
to a free consumption of 30 KWH per quarter per month on a uniform basis.
For consumption beyond this limit, the employees will be required to pay at
the same rates at which the Electricity Supply Undertakings charge the Coal
Companies.
52

f) Supply of Fuel
Free supply of coal on the prescribed norms will continue. However, an
endeavor will be made to reimburse the cost of about 14.5 Kg of Liquid
Petroleum Gas (L.P.G.). The Company will make efforts to arrange supply
of gas in phased manner.
SOCIAL SECURITY
a) Life Cover Scheme
The existing Life Cover Scheme will continue except that the amount to be
paid in addition to the normal gratuity shall be Rs. 30.000 and that the Life
Cover Scheme shall be de-linked from gratuity. It will be effective from
1.1.2000. However, those died before 1.1.2000 and if their dependents have
not been paid till date will also be paid at the above rate.
b) Workmens Compensation Benefits
It is agreed that
i) The employees covered by this Agreement shall be entitled to the benefits
admissible under the Workmens Compensation Act, 1923.
ii) The benefits under the Workmens Compensation Act will not be affected
adversely on account of the revision of wages by this agreement.
iii) An employee who is disabled due to accident arising out of and during
the course of employment, will get full basic wages and dearness allowance
from the date of accident till he/she is declared fit by the Companys
53

Medical Officer. The disabled employee will have to remain under the
treatment of the coal companys Medical Officer or in a hospital approved
/referred by the Coal Company to be entitled to the benefit.
iv) The compensation shall be paid on the basic of the last wages drawn
immediately before the employee met with the accident.
v) It is further agreed that the payment of wages made to employees during
the period of temporary disablement due to accident arising out of end in
course of employment will not be deducted from the lump sum amount
payable towards compensation for any permanent, partial or total
disablement resulting there from.
vi) In addition to the compensation payable under the Workmens
Compensation Act, an ex-gratia amount of Rs. 25,000/- in case of death or
permanent total disablement resulting on account of accident arising out of
and in course of employment will be paid. It will be effective from 1.1.2000.
However, pending cases of those employees who died before 1.1.2000 and if
the benefits has not been paid to the dependent till 1.1.2000 will also be paid
at the above rate.
c) Provision of Employment to Dependents
Employment would be provided to one dependent of workers who are
disabled permanently and also those who die while in service. The provision
will be implemented as follows:
I) Employment to one dependent of the worker who dies while in
service.

54

In so far as female dependents are concerned, their employment/ payment of

monetary compensation would be governed by Para III.
i) The dependent for this purpose means the wife / husband as the case may
be, unmarried daughter, son and legally adopted son. If no such direct
dependent is available for employment, brother, widowed daughter /
widowed daughter-in-law or son-in-law residing with the deceased and
almost wholly dependent on the earnings of the deceased may be considered
to be the dependents of the deceased.
ii) The dependents to be considered for employment should be physically fit
and suitable for employment and aged not mare than 35 years provided that
the age limit in case of employment of female spouse would be 45 years
given Clause III. In so far as male spouse is concerned, there would be no
age limit regarding provision of employment.
II) Employment to one dependent of a worker who is permanently
disabled in his place.
i) The disablement of the worker concerned should arise from injury or
disease, be of a permanent nature resulting into loss of employment and it
should be so certified by the Coal Company concerned.
ii) In case of disablement arising out of general physical debility so certified
by the Coal Company, the employee concerned will be eligible for the
benefit under this clause if he / she is upto the age of 58 years. The terms
general physical disability would mean deficiency of workmen due to any

55

disease or other health reason leading to his/ her duties regularly and / or
efficiency.
iii) The dependent for this purpose means the wife/husband as the case may
be, unmarried daughter, son and legally adopted son. If no such direct
dependent is available for employment, brother, widowed daughter,
widowed daughter-in-law residing with the employee and almost wholly
dependent on the earning of the employee may be considered. In so far as
female dependents are concerned, their employment would be governed by
the provisions of Clause III.
iv) The dependents to be considered for employment should be physically fit
and suitable for employment and aged not more than 35 years provided that
the age limit in case of employment of female spouse would be 45 years as
given in clause III. In so far as male spouse is concerned, there would be no
age limit regarding provision of employment.
III) Employment / Monetary compensation to female dependent
Provision of employment /monetary compensation to female dependants of
workmen who die while in service and who are declared medically unfit as
per Clause II. above would be regulated as under:
i) In case of death due to mine accident, the female dependant would have
the options to either accept the monetary compensation of Rs. 4,000/- per
month or employment irrespective of her age.

56

ii) In case of death / total permanent disablement due to causes other than
mine accident and medical unfitness under Clause II, if the female
dependant is below the age of 45 years she will have the option either to
accept the monetary compensation of Rs. 3,000/- per month or employment.
In case the female dependant is above 45 years of age she will be entitled
only to monetary compensation and not to employment.
iii) In case of death in mine accident or for other reasons or medical
unfitness under Clause II, if no employment has been offered and the male
dependant of the concerned worker is 12 years and above in age, he will be
kept on a live roster and would be provided employment commensurate with
his skill and qualification when he attains the age of 18 years. During the
period the male dependant is on live roster, the female dependant will be
paid monetary compensation as per rates at paras (i) & (ii) above. This will
be effective from 1.1.2000.
iv) Monetary compensation, where ever applicable, would be paid till the
female dependant attains the age of 60 years.
v) The existing rate of monetary compensation will continue. The matter will
be further discussed in the Standardization Committee and finalized.
d) Pension:
Contribution and benefits will be regulated as per Coal Mines Pension
Scheme, 1998.

57

i) The decision of CMPF Trust to cover NCDC / CCL PF and CMALSPF

employees in the Coal Mines Pension Scheme, 1998 will be perused.
ii) It is agreed to take up the matters with CMPF Trust regarding the
coverage of employees in the Coal Mines Pension Scheme who contributed
to the pension fund in terms of NCWA III / IV and V and for modification of
minimum qualifying service of 5 years in stead of 10 years for eligibility to
pension.
iii) It is agreed to take of the matter with CMPF Trust regarding coverage of
workmen, who were contributing towards family pension scheme since the
year 1989 and retired after 31.3.1994, in the Coal Mines Pension Scheme,
1998.
iv) It is agreed to notify the pension scheme of Ex-NCDA employees who
were receiving pension under the Central Government Scheme and whose
cases were covered by the decision of the Honble High Court in case no.
LPA No. 67 of 1994 (R) order dated 15.1.1997 and WP No. 2043 of 1992
with WP of 831 of 1993 order dated 30.11.1998.

Welfare Fund
As per the directives of the Honble Supreme Court, a welfare fund has been
created from the unclaimed fund which was lying with the Honble Supreme
Court, to the tune of Rs. 9660409.78 .The interest arising from the above
fund will be used for the benefit of the workers families.The above sum has

58

been deposited with the State Bank of India in a fixed deposited account and
a Trust is being formed .
MCL Natural Calamity Fund
An amount of Rs. 41,77,979.08 is lying in the saving bank account of MCL
Natural Calamity Fund ( MCL NCF). An amount of Rs. 1.00 Crore has
already deposited for 550 days. The amount has been temporarily deposited
and subsequently it will be kept in a Trust for its proper utilization.

Coal Mine Pension Scheme

MCL is a trail blazer in CIL in respect of implementing
innovative social security cover and facilitating timely payment on post
retirement benefits like pension gratuity etc. in order to settle the claim,
terminal dues such as pension payment order ,payment of gratuity and
refundof CMPL claims are beingpaid to the employees on the day of
superannuation.

59

WELFARE MEASURES IN MCL

Introduction :
As defined in the encyclopedia of social science, welfare implies the
voluntary efforts of the employers to establish with in the existing industrial
system, working and living condition of the employees beyond what is
required by law, the custom of the industry and the condition of the market.

Welfare policy of MCL

The management of MCL firmly believes that the quality life at the work
place and living place generates motivation amongst the employees and
contributes significantly in achieving the objectives of the company. Besides
these coal mines are generally situated in isolated areas where amenities of
modern life are scarce. Nature of work of the employees engaged in the coal
mines is difficult and hazardous. Appreciating the human aspects and their
welfare, the management of MCL has identified welfare of its employees as
one of the thrusts areas of activities in its total business affair. Due attention
has been paid for improving and accelerating the housing satisfaction, water
supply, medicine facilities, children education in different collieries/projects
in order to create better understanding amongst the employees to build up.

Housing facilities
60

All the houses in MCL has been provided with amenities such as electricity,
water tap, fans etc. All quarters belonging to coal company will be repaired
and maintained by the respective management. Adequate fund will be
provided for this purpose. Details of the housing report is available in the
table below.
Total no. of houses
% of house satisfaction

As on 01.04 1992
11666
55.33

As on 01. 04 2009
16736
80.19

Housing Availability

% increase in housing satisfaction

61

ACHIEVEMENTS:
1. No. of new quarters constructed
-114
2. No. of quarters repaired
-2938
3. Two wheeler sheds/ community Garage nos.-115
4. Grills in quarters
-114
5. New kitchen provided in Lakhanpur
-228
6. Day to day maintenance of quarters at
Central colony , Jagannath Area
-1138
7. Annual maintenance of water supply to
Quarters at GM complex, Jagannath area
-380
8. Tar felting of old miners quarters
-220
9. Providing and fixing of shutters in the
Residential quarters at Orient Area
-900
10. Repairing of quarters at Orient area nos. -230

Water supply
MCL gives utmost importance to the matter regarding the supply of
adequate drinking water to all its employees. At time of formation of the
company, the total water supply installed capacity was 7.70 MGD with
population coverage of 61320. The water supply capacity has increased to
15.70 MGD to 83680 population.
62

As on 01. 04.1992
Population covered
Filtered water generated

As on 01.04.2009

61320
7.70

83680
15.70

Population covered by existing water plant :

Water supply through Tankers to peripheral villages during summer season:

Year
2004
2005

No. of villages
121
146

No. of municipal
words
10
12
63

Expenditure in
Lakhs
102.26
106.28

2006
2007
2008
2009

167
182
178
182

13
15
15
21

120.78
144.15
146.47
200.88

ACHIEVEMENTS

For Orient area a scheme to the tune of Rs.45.00lakhs approved for

additional filtered water supply from the mines .
Additional 02 bore holes dug and new pipe line installed in Ananta
Colony.
Replacement / repairing of existing pipe line at IWSS, IB Valley is
going on.
700 Ltrs .Tanks provided in the all the quarters of Lingaraj Area
against the norms of 135 kltrs per capita.
At Basundhara- Gdarjanbahal Area of 500 Nos of Syntex Water Tank
were provided in the quarters.

MEDICAL FACILITIES
1.

Every Endeavour will be made by the Management to achieve the

ratio of Hospital Bed for hundred employees. However it will be
ensured that the ratio of 1 to 100 will be achieved during the period of
management. It is agreed that efforts will be made to improve the
quality of medical services by providing infrastructure facilities and
taking other suitable measure handing over the medical services to the
reputed agencies for Medicare .

2.

The Ayurvedic system of treatment will be maintained and improve

upon to provide medical facilities to the employees.

3.

Each colliery or large establishment will be provided atleast one

Ambulance. All the Ambulance will be kept in working order and
made available whenever necessary.
Details about medical facilities as compared with the year of inception
are shown below.

64

Description
Hospitals
Total nos of dispensaries
Total nos of beds
Ratio of beds and employees
Total nos of Ambulances
Mobile Ambulance Vans
I.C.U
Doctors (Including Specialists )
Para Medical Staff
Ayurvedic dispensaries
Ayurvedic Baidya
Ultra Sound
Upper G I Endoscopy

As on 01.04.1992
04
09
198
1: 101
21
00
00
59
65
01
00
00

As on 01.04.2009
06
16
364
1:57
38
02
02
117
153
02
01
02
02

MEDICAL DEPARTMENT OF M.C.L

Each Department is headed by a Medical Officer of E- 5 Grade or
above, who functions as Area Medical Officer. He controls different
dispensaries in the sub areas. Each Colliery has got a dispensary with
minimum man power of 250. Accordingly there are 12 areas and 17
dispensaries.
The bigger areas like Orient and Jagannath area have got Hospital of
24 Beds where basic emergency treatment is provided. Talcher Coal
Field and IB Valley Coal Field have got central Hospitals with 250
and 250 beds respectively. These central hospital are headed by
C.M.O / C.M.S where multi specialist are available namely Medicine,
Surgery, Gynecology, Orthopedics, Ophthalmology, E,N.T., Dental,
Psychiatry, Chest and T.B, Radiology, Pathology, Dermatology etc.
Both the central hospitals have got the facilities for treatment of major
surgeries in eye, ENT, Orthopedics, Laparoscopic surgery. N.S central
Hospital, Talcher has got an ICU, where cardiac cases can be treated
medically.
Major medical equipments available
Laparoscopic surgical unit.

65

Harmonic Scalpel for Blood less surgery.

Surgical diathermy .
Anesthesia Machine.
Pulse Oximeter.
Anesthesia Monitor.
C Arm for Ortho surgery.
Critical care ventilator.
Defibrillator .
Open care system for NICU.
X-ray Machine.
USS Machine.
Video endoscope system upper GL scope, Duodonoscope and
Colonoscopies.
Computerised tredmill.
Operating Microscope with CC T,V Camera and monitor.
A Scane Biometer.
ENT Treatment Unit.
Clinical Audio meter.

Number of beds available in the Hospital / Dispensaries.

Nos of Hospitals
NSCH,Talcher.
CH IB Velly.
RH ,Talcher.
Deulbera hospital, Talcher.
HRC Hospital Orient Area.
Anand Bihar Hospital, MCL Hq.
Two Beds in each dispensaries.(In 14 dispensaries)
TOTAL

Bed strength
115
150
20
15
24
14
28
364

Community Health Service.

Particulars
Family Health care programme
1.No of cases
2.Eye camp / Cataract Operation
66

92-93

2008-09

715
304

1648
644

School Health Programme

Village Health Programme

00
00

22,576
14,910

Education facilities
In the quest of developing the citizens of tomorrow, supportive
financial grants (recurring and recurring) and other infrastructure assistance
are made available to education institution.

Status of educational institution

As on 01.04 1992
Kendriya vidyalaya
DAV Public School
Pvt. Managed school
School bus

Nos.
02
01
21
15

As on 01.04.2009
DAV Public school
Pvt. Managed school
Others
School bus

Nos.
09
20
02
36

Note:-a) One high school taken over by State Government.

B) 40%( Diploma courses reserved for employee wards in IGIT
Sarang and OSME Keonjhar.
CIL Scholarship
Year
92-93
08-09

No of students received
scholarships
458
1426

67

CIL Scholarship
Distributed( in Rs)
134000.00
1338600.00

 MCL had given a cash prize of Rs. 2000.00 each to 41 meritorious

students who secured above 90% marks in class X CBSE
examination.
MCL has given a cash prize of Rs. 3000.00 each to three meritorious
students who secured above 90% marks in class XII CBSE
Examination.
Sports and Games
As per MCL sports calendar 2008-09 all Inter Area tournaments
have been completed.
As per CIL sports calendar , MCL organized 9th CIL Inter
Company Golf Tournament at MGC, Jagruti Vihar, SECL,
Bilaspur& CMPDIL, Ranchi participated. MCL bagged the
Team champainship.
MCL cultural team secured Runners up position in the CIL Inter
Company Meet 2008-09heldat SECL Bilaspur from 15th 17th
June 2009.
Rural sports and games are being encouraged and for
organizing the tournaments, financial assistance are extended to
the organizing clubs/ association.
Necessary help is also extended for promotion of Games and
Sports among the deaf, dumb blind and mentally retarded
school children.

Canteen facilities
As on 2009, there are 34 canteens in MCL as against 19 canteens in 1992.
Managing committees are managing these canteens. The management has
provided buildings, utensils, electricity, water, fuel, furniture etc. to these
canteens.
Area wise break up is shown below:
Area
IB Vally
Jagannath
Hingula

Canteens as on 01.04.2009
03
06
03
68

Talcher
CEW(X), Talcher
Orient
Lakhanpur
CWS(X) , IB Vally
Bsundhara
Lingaraj
Bhartpur
MCL HQ
MCL BBSR
TOTAL

04
01
06
03
02
01
01
01
02
01
34

Other welfare amenities

Particulars
Bank Branches
Extension Counters
Stadium
Children park
Kalyan Mandap
Workers institute
Golf courses
ATMs
Auditorium
Play Ground

AS on 01.04.1992
05
05
01
06
00
11
00
00
05
08

As on 01.04.2009
16
12
02
16
02
14
04
07
14
12

MAJOR WELFARE WORK DONE UNDER PERIPHERAL

DEVELOPMENT

69

1. Angul district

cost(Rs in Lakhs)

Stadium at Ranipark

188.22

Prajamandal Bhawan

76.00

Water supply arrangement

of Talcher Municipality

50.00

Piped line water supply to

19 villages

2066.00

Installation of handpumps

62.54

2. Jharsuguda district

cost( Rs in lakhs)

Strengthening of Gandhi
chawk Balangibagal via. Rajpur

31.04

Payment made to executive

engineer PWD for strengthening
of Jharsuguda Road

43.00

Supply of pipes for water supply

management at Brajarajraj nagar

13.71

Installation of handpumps

109.02

3. Sundargarh district

cost( Rs in lakhs)

Construction of Nari Sava

Sadan

52.97

Repare of road from Balinga

to Taparia

37.00

Construction of Auditorium at
70

Taparia

7.00

Instalation of Handpumps
4. Sambalpur district

24.47
cost(Rs in lakhs)

Construction of pavellion at
VSS stadium at Sambalpur

38.00

Making of ICU word in VSS

medical college at Burla i/c
providing of medical equipment

135.00

Instalation of Handpumps

41.25

Construction of 100 seated

girls hostel

190.00

Construction of press club

building

40.00

STATUS OF IMPLEMENTATION OF DECISIONS OF MCL

WELFARE BOARD MEETING HELD ON 02.02.2009 AT
M C L HEAD QUARTER.
1.

Grant in Aid to Pvt Managed Schools.

Implementation:
As decided in the Last Welfare Board meeting in
the case of Pvt managed Schools were examined individually and
existing grant in aid has been enhanced and accordingly sanction
have been communicated to the concerned Areas.
Regarding enhancement of GrantinAid to NK
Mahavidyalaya it is under active consideration. The details of data
regarding pay scale, collection of fee and other relevant papers have been
collected and the proposal is under process.

71

2. Issue relating to Housing and its maintenance. Medical facilities

installation of AC in all Canteens etc.
Implementation:

The quarters are being repaired in a phased manner on need

base. During the year 2008-09, 2007 nos of quarters have been repaired and Action
Plan has been drawn to repair 4763nos of Quarters for the year 2009-10.
AC have been supplied to all Area for installation in their Canteens. Area at their level
is taking necessary action for installation of the same.
Regarding opening of one Medical College at Talcher, the Medical Department of
MCL is in constant touch with the State Government. A request letter from CMD,
MCL has been sent to Honble Chief Minister, Orissa on this issue and reply is
awaited.
With regard to Nursing School in IB Coalfields:Tender was floated for
construction of Nursing School & Hostel but there is no response even after 2 nd call.
However, action has been taken to invite 3rd call for the said purpose. Application bas
been sent to the Indian Nursing Council for inclusion of 20 stats in GNMT School.
These 20 students will be trained at CH,IB Valley and because of affiliation, they will
be under administrative control of GNMT,Talcher.

Construction of Quarters at Lingaraj Area

On the issue of construction of quarters at Lingaraj township, it is reported
that contractors is unable to complete the work satisfactorily , hence, he has been
debarred from undertaking the construction work of 72 nos of A Type Quarter. The
estimate for balance work has been processed from Hq for sanction. During the scrutiny
of proposal, some lacunae were hound, hence the file has been returned to Area for resubmission with clarification.
Regarding Health, Education and Welfare measures, if any proposal is
received at the Hqrs from the Area due attention is being given on such proposal and
appropriate action is being taken accordingly.
3. Construction of Mortuary, provision of Parks, CT Scanning Machine at NSCH
Hospital at Basundhara Area. Ambulance for Central Hospital at Ib Valley Area etc.

Implementation :

The proposal for above works are being taken up during the
current financial year. With regard to provision of CT Scanning Machine at NSCH
,Talcher & the installation will be done by supplier. Regarding Hospital at Basundhara

72

Garjanbahal Area it is felt that the Hospital will be made functional after the
requirement of Para Medical staff is completed. The approval of MCL Board has
already been obtained for recruitment of 69 Paramedical staff And awaiting for the
approval of CIL.
As regard to empanelment of Nilachal, hemlata hospital so far no application has been
received from nilachal Hospital, BBSR for empanelment,>However, hemlata Hospital,
Aditya Care Hospital & Ayush Hospital of BBSR has already been empanelled by
MCL.
4.Regardingallotment of rooms & unauthorized construction at Balanda Market.
Jagannath Area has been requested to take necessary steps for demolition of
unauthorized construction and for proper allotment of rented shop rooms.
5.Fund under EBFS: In this regard, MCL has approached CCL to furnish the Scheme
followed by them. On receipt of the same from CCL ,it will be placed in thenext
Welfare Board Meeting.

STASTICAL DATA ON WELFARE MEASURES

Sl

Facilities

No
A
1
2
3
a
b
c
d
e
f
g
B
1

Statutory
Canteen
Rest Shelter
Medical Facilities
Hospital
Dispensary
Ayur Dispensary
X-Ray Unit
Beds
Ambulance
Para Med Staff
Non-Statutory
Housing

As on

As on

1.4.2004

1.4.2004 1.4.2004 1.4.2004

1.4.2004 1.4.2004

34
21

34
21

34
21

34
21

34
21

34
21

06
16
02
08
364
38
153

06
16
02
08
364
38
153

06
16
02
09
364
38
153

06
16
02
09
364
38
153

06
16
02
09
364
38
153

06
16
02
09
364
38
153

73

As on

As on

As on

As on

Total No of Houses

16622
79.62%

16622
80.72%

16736
81.19%

16736
81.19%

Water Supply
Population covered
83030
83060
Water supply installed 14.10MGD 15.17

83110
15.70

83110
15.70

83520
15.70

83680
15.70

capasity
Bank Branches
Extn Counter
Play Ground
Stadium
Children Park
Officers Club
Workers Inst.

16
12
12
02
08
13
14

16
12
12
02
08
13
14

16
12
12
02
16
13
14

16
12
12
02
16
13
14

% of Housing Satisfaction

3
4
5
6
7
8
9

16540
76%

16
12
12
02
08
13
14

16612
78%

16
12
12
02
08
13
14

74

RESEARCH METHODOLOGY
Objective:
The following were the objectives of my research study:

To know the various welfare schemes presently undertaken by MCL.

To find loopholes in the welfare schemes (if there are any) of MCL.

To know the employees view of the welfare measures taken by MCL.

To see whether there is a difference in the distribution of benefits

among employees.

To compare MCLs welfare plans with other PSUs.

Sample Selection:
Sample was selected in a random manner with all age, income and
designated groups. The sample was taken from almost all the departments of
MCL.
Sample Size:
The sample size has been fixed at 100. These include people from all walks
of life.

75

Data Collection:
Both primary as well as secondary data have been collected. The primary
data was collected through survey of respondents with the help of a
questionnaire, while secondary data was collected through MCL in-house
magazines, journals, published reports, internet etc.

Questionnaire Formulation:
A carefully, unbiased and structured questionnaire has been prepared for
collection of primary data. The questionnaire has been prepared under the
guidance of Mr, R.C.SAMAL Personnel manager MCL.
Data Analysis and techniques:
The data collected through questionnaire has been tabulated. The tabulated
data is also shown in graphical form like bar and pie charts. Besides
statistical tools like ANOVA and Chi-Square test has been used were
required.
Limitations:
I.

Since the data was collected only from the employees working in
MCL HQ. The result of this research may not hold true for all the
employees of MCL.

II.

Also, employees belonging to tag Board members and Directors

could not be covered. Thus, the result is also not representative.

III.

There was limitation of time and resources, so a full length survey

was not possible.
76

IV.

Welfare is a vast concept, and I have taken a very small number of

benchmarks to gauge their perception.

V.

Also in MCL frequent transfers and promotions takes place, so the

result cannot be also objectively checked.

VI.

Majority of the persons who have given their response, happened to

be male, so the result is male dominated.

VII.

Since the respondents can be biased, the authenticity of the result

cannot be clearly verified.

Analysis of primary data

I. General Characteristics of Employees working in MCL

1) Gender wise classification

77

Gender
Male
Female

Frequency
96
04

Percentage (%)
96.00
04.00

This clearly suggests that MCL is overwhelmingly male dominated. Only 4% of its
workforce belongs to the fairer sex.
This is shown graphically as;

2) Age wise classification

Age
20-30
31-40
41-50
Above 51

Frequency
7
30
48
15

The above data can also be presented graphically:

78

Percentage (%)
7.00
30.00
48.00
15.00

From the above graph it is clear that the sample is collected from different possible age
groups. We can see that about 60% of the employees have crossed their 40s.

79

3) Qualification wise classification

Qualification
10th
+2
+3
PG
Higher Studies

Frequency
03
08
49
32
08

Percentage (%)
3.00
8.00
49.00
32.00
8.00

Graphically;

Thus we can see that a majority of employees are at least graduates in MCL.

80

4) Designation wise classification

In MCL, following types of designations are prevalent:
i) E1-E5 ii) M1-M3 and iii) Board Members and Directors. E refers to Executive posts
and M refers to Management or Managerial positions. I have collected data only from E
& M grade employees.
The following dataset was collected, which is shown in tabulated form below:
Designation
E1
E2
E3
E4
E5
M1
M2
M3

Frequency
12
18
13
16
17
11
10
03

Percentage (%)
12.00
18.00
13.00
16.00
17.00
11.00
10.00
03.00

Frequency
0
21
48
31

Percentage (%)
0.00
21.00
48.00
31.00

5) Income wise classification

Income (in rupees)
50,000K- 1 Lakh
1- 2 Lakh
2-3 Lakh
Above 3 Lakh

Since the average annual income of all permanent employees of MCL exceeds the range
50,000K- 1 Lakh, its frequency tab rightly shows 0. In MCL, about half of the employees
draw an annual salary of 2-3 Lakh, as is shown by the graph below:

81

6) Experience wise classification

Experience (in years)
Less than 1 years
1-5 years
6-10 years
More than 10 years

Frequency
12
21
56
11

Percentage (%)
12.00
21.00
56.00
11.00

This data can be better understood with the help of a graph, as shown below:

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Thus a majority of employees (about 67%) of MCL have greater experience of receiving
various welfare benefits plans. And further they could give a better account of the welfare
schemes of MCL.

II. Analysis of views given by the employees

Q1. In your view facilities imparted by MCL are?
The respondents responded in the following way:
Satisfactory
Excellent
Below Par

62
32
06

Graphically this is shown below:

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Q2. We then asked our respondents to rate MCL welfare measures with other PSUs
operating in Orissa. The following was their collective response:
Response
Higher
Lower
At par

Frequency
77
06
17

Percentage (%)
77.00
6.00
17.00

Thus, most of the employees (about 77%) think that MCLs benefit plans for employees
on every indicator/measure of welfare effectiveness is more than what other PSUs
provide to their employees.

Graphically this is shown below:

84

Q3. Is the water distribution network effectively fulfilling your needs inside office
establishment and in your residential accommodation?
The following responses were collected:
Satisfied
42

Not Satisfied
38

Cant Say
20

Graphically;

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Since 58% of the employees are not sure about their satisfaction level with water
distribution facilities, MCL needs to urgently correct their perception by doing the
needful.

Q4. Overall how satisfied you are with the electricity distribution?
The following responses were collected:
Satisfied
61

Excellent
28

Cant Say
11

About 89% of employees seem to be satisfied with the electricity distribution in MCL.
This is because MCL provides both AC and Dc current facilities to its employees

Graphically;

86

Q5. We asked them, given the dispensary situated in Anand Vihar, do you think it is well
equipped to handle any situation.
The following is their combined views:
Yes
36

No
43

Cant Say
21

Graphically;

Thus, a majority of employees think that it is not suitable to handle any emergency. This
is because of the following facts:

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a) Most of the employees think that doctors and staffs are not competent enough to
handle severe and drastic cases which require high end treatment.
b) There are no major medical tools and equipments installed in the dispensary.
Q6. How satisfied are you with your work environment?
Work environment includes diverse factors as peer to peer relationship, bosssubordinates relationship, arrangement of work schedules, flow of work, climate, heat,
air, water, level of politics, basic office infrastructures etc.
The following is the view of employees:
Satisfied
33

Dissatisfied
21

Cant Say
46

Graphically;

88

Since, a majority of the employees (about 67%) does not seem to be satisfied with MCLs
work environment. MCL needs to address this problem quickly.
Q7. How satisfied are you with other benefits?
Other benefits include payment of salary in time, provisions for pension, gratuity, child
care, reimbursements, accommodations etc.
For this question following primary data was collected:
Satisfied
21

Dissatisfied
43

Cant Say
36

Diagrammatically, this is represented as given below;

89

Thus, here also 79% of employees seems to be not so satisfied with MCLs other benefit
plans.
Q8. The last question was, do you think MCL gives attention to your genuine problems.
The following responses were collected:
Yes
28

No
28

Cant Say
44

Thus about 72% of employees dont know, whether or not MCL, gives attention to their
problems or not. This shows a weak administrative communication between the higher
management and lower grade employees. This also represents a weak grievance handling
in MCL.

90

Graphically;

91

Suggestion & Conclusion

A large majority of employees, cutting across all groups are more or less satisfied
with MCLs welfare work. Though MCL has tried its level best to accommodate
the concerns of all employees, some minor differences in the views of employees
are bound to occur, since it is not always possible to make all concerned happy.
Following are some of my suggestions, MCL authorities could implement if they
so desire:
1) Water distribution system in the MCL colonies should be corrected at the
earliest because most of the employees are not satisfied with it.
2) MCL dispensary should at the earliest install new tools, machines and
medical equipments and also add efficient staff at the earliest to get back the
shagging confidence of its employees.
3) Employees are not satisfied with the work environment provided by MCL.
Earnest effort is also required in this direction.
4) Employees are not happy with payment of salary, child care, accommodation,
reimbursements etc.
5) MCL should review its Grievance Handling Mechanism at the earliest, since
most of the employees think that the existing system does not pay due
attention to their genuine problems at the earliest.

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Beside I have also endeavored to give some more remarks as:

Dignity and respect for subordinates

Upgrade existing facilities

Explore ways to motivate employees to use welfare measures provided by MCL.

Canteens and hospital should be more hygienic and clean respectively.

Employees union should be encouraged to take part in the process of

management.

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Survey on employees welfare measures being undertaken by

Mahanadi Coalfields Limited
Dear Sir/Madam,
I am conducting a research study at personnel department, in MCL. The purpose of my research is
to analyze the welfare measures being undertaken in your company. This research study asks questions
about employees perceptions of and involvement in events affecting everyday life in and outside the
company, from welfare issues to workplace preferences of the employees working in MCL HQ. Your
survey responses will be kept strictly confidential and data from this survey will be reported only in the
aggregate. Your information will be coded and will remain confidential

________________________________________________________________________
Name

Sex

: ______________________ (M / F)

Age

: 20-30 Years 31-40 Years

Qualification : Matriculation

41-50 Years

Intermediate/Diploma

above 51Years

Graduation

PG

Doctorate

Designation : ______________________
Grade

Income

: (50,000-1,00,000)

(1,00,000-2,00,000)

(2,00,000-3,00,000)

(>3,00,000)

________________________________________________________________________
1. How long have you have worked for this company?
a)

Less than 1 year

b) 1-5 years
c)

6-10 years

d) More than 10 years

2. In your view, the facilities imparted by MCL is:
a)

Satisfactory

b) Excellent
c)

Below par

3. If you will compare the welfare measures being undertaken by different companies operating inside
Orissa,
a)

you will rate MCL in which of the following categories:

Higher

94

b) Lower
c)

At par

4. Are you satisfied with the potable water facilities supplied in residential areas in MCL?
a)

Yes

b) No
c)

Cant Say

5. Overall how satisfied are you with the electricity distribution in the MCL colonies.
a)

Satisfactory

b) Excellent
c)

Below par

6. Given the dispensary situated in Anand Vihar, do you think it is well equipped to handle any situation?
a)

Yes

b) No
c)

Cant Say

7. Do you think the welfare department gives proper attention to your genuine problems?
a)

Yes

b) No
c)

Cant Say

8. How satisfied were you with the quality of your work environment?
a)

Satisfied

b) Dissatisfied
c)

Cant Say

9. How satisfied were you with the company in terms of other benfits?
a)

Satisfied

b) Dissatisfied
c)

Cant Say

Thank You for completing the questionnaire. Your honest responses are truly
appreciated.

95

BIBLIOGRAPHY
1. Human Resource Management
Aswathappa, K.
2. Organizational Behavior
Robbins, S. P.
3. Research Methodology
Kothari, C. R.
4. Coal India and You
Directorate of Personnel, CIL, Kolkatta
5. National Coal Wage Agreement - VI
Gandhi Labour Foundation, Orissa

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