A Study on the Welfare Measures of Employee’s in Tata Steel
“Today we are faced with the pre-eminent fact that, if civilization is to survive, we must cultivate the science of human relationships… the ability of all peoples, of all kinds, to live together, in the same world, at peace.” Franklin D. Roosevelt.
Definitions of key terms
Definition of employee:-
? According to Cambridge English dictionary- someone who is paid to work for someone else
? According to Business dictionary- An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.(Also called worker)
Definition of an organization:-
? According to Cambridge English dictionary- a group of people who work together in an organized way for a shared purpose
? According to Business dictionary- A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems–they affect and are affected by their environment.
Definition of labor
? According to Cambridge English dictionary – practical work, especially when it involves hard physical effort or workers, especially people who do practical work with their hands
? According to Business dictionary – The aggregate of all human physical and mental effort used in creation of goods and services. Labor is a primary factor of production. The size of a nation’s labor force is determined by the size of its adult population, and the extent to which the adults are either working or are prepared to offer their labor for wages.
Definition of Welfare:-
? According to Cambridge English dictionary- help given, especially by the state or an organization, to people who need it, especially because they do not have enough money. Or the general physical and mental health and happiness of a person.
? According to Business dictionary
1. Availability of resources and presence of conditions required for reasonably comfortable, healthy, and secure living.
2. Government/organization support for the poor and otherwise disadvantaged members of the society, usually through provision of free and/or subsidized goods and services.
Definition of labor welfare
? According to international labor organization- labor welfare means such facilities and amenities which may be established in or in the vicinity of undertaking to enable the persons employed in them to perform their work in healthy, congenial surroundings and provided with amenities to maintain good health and high morale.
Labour welfare can be classified into
• Statutory • Voluntary • Mutual
• Statutory measures are those that are compulsory/mandatory by law and usually given by the state/government to ensure basic livelihood and standard of living of workers.
• Voluntary measures are those measures/actions taken by the employer or management for the betterment or welfare of the workers.
• Mutual is the give and take or bargaining between employer and employee through trade unions (collective bargaining) to achieve both organizational and individual (stakeholders -employee) goals.
Introduction to Tata Group and Sons
“We generate wealth for the people. What comes from the people must, to the extent possible, therefore get back to the people”- Bharat Ratna J.R.D. Tata.
Tata is a house hold name and the Tata group manufactures/provides services in every facet of life prompting the famous line “you wake up with Tata and go to sleep with Tata”.
The Tata logo and name are synonymous with trust and quality built over 150 years (The Tata group was founded in 1868). The Tata group has over 74000 employees spread across 5 continents with operations in 26 countries and a commercial presence in over 50 countries.
Tata Sons Limited is the holding company of the Tata Group and holds the bulk of shareholding in group companies. It was established as a trading enterprise in 1868. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. The biggest two of these trusts are the Sir Dorabji Tata Trust and Sir Ratan Tata Trust. Tata Sons is the owner of the Tata name and the Tata trademarks, which are registered in India and several other countries.
Tata Group is an Indian multinational conglomerate holding company headquartered in Mumbai, Maharashtra, India. Founded in 1868 by Jamshedji Tata, the company gained international recognition after purchasing several global companies, beginning with Tetley in 2000, recorded as “the biggest acquisition in Indian corporate history. One of India’s largest conglomerates, Tata Group is owned by Tata Sons, a registered charity.
Each Tata company operates independently under the guidance and supervision of its own board of directors and shareholders. There are 29 publicly listed Tata enterprises with a combined market capitalization of about $151.62 billion as of March 1, 2018. Significant Tata companies and subsidiaries include Tata Steel, Tata Motors including Jaguar Land Rover, Tata Consultancy Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Coffee, Tata Swach, Tata Teleservices, Titan, Tata Communications, and The Indian Hotels Company Limited (Taj Hotels).
The Chairman of Tata Sons is usually the Chairman of the Tata Group. Till date there have been 7 chairmen of the group namely – Jamsetji Nusserwanji Tata (1868–1904), Sir Dorab Tata (1904–1932), Nowroji Saklatwala (1932–1938), JRD Tata (1938–1991), Ratan Tata (1991–2012), Cyrus Pallonji Mistry (2012–2016), Ratan Tata (2016–2017), Natarajan Chandrasekaran (2017–present).
Introduction to Tata steel
“Driven by values, delivering on a vision, determined to innovate – Tata Steel is not a company but an experience.”
Tata Steel Limited formerly Tata Iron and Steel Company Limited (TISCO) is an Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group.
Founded on 25 August 1907; 111 years ago by founder Jamsetji Tata it is the start and backbone of the Tata group. It provides export quality steel at low cost and has branches around the world.
It is one of the top steel producing companies globally and the world’s tenth largest steel manufacturing company, with annual crude steel deliveries of 23.88 million tonnes (in FY17), and the second largest steel company in India (measured by domestic production) with an annual capacity of 13 million tones after SAIL.
Tata Steel consists of
• NatSteel Holdings
• Tata Bearings
• Tata BlueScope Steel
• Tata Metaliks
• Tayo Rolls
• Tata Sponge Iron
• Tata Steel
• Tata Steel Europe
• Tata Steel KZN
• Tata Steel Processing and Distribution
• The Tinplate Company of India
• TM International Logistics
• August 2004 – NatSteel’s Steel business, $292 million
• December 2005 – Millennium Steel, Thailand, $165 million
• January 2007 – Corus Group, $12 billion
Jamshedpur the steel city
Jamshedpur is the most populous urban agglomeration (population of 1,337,131 according to 2011 census of India) in the state of Jharkhand and also the first planned industrial city of India.
Jamshedpur the industrial capital or steel city of Jharkhand was named in 1919 by Lord Chelmsford the then viceroy of India in honor of its founder, Jamsetji Tata. Earlier it was a simple village called Sakchi which has developed into a bustling city also known as Tatanagar or the Steel City as it is home to Tata iron and steel factory.
Thomas Carlyle declared that “the nation which gains control of iron soon acquires the control of gold” in a lecture in Manchester which is supposed to have got Jamsetji Tata thinking.
Jamshetji Tata along with geologist Charles Page Perin found the site to build India’s first steel plant near a village called Sakchi, on the densely forested stretches of the Chota Nagpur plateau, near the confluence of the Subarnarekha and Kharkai rivers. It seemed to be the ideal choice and the place was selected as it was abundant in natural resources such as iron, coal; limestone and water etc.
The construction of the plant as well as the city officially began in 1908 and the first steel ingot was rolled on 16 February 1912. It is a historic day in the history of pre independent industrial India. Jamsetji Tata got the most advanced technology for his plant from steelmakers in Pittsburgh.
Jamsetji’s envisioned a city with buildings with all the comforts and conveniences a city could provide. As a result, most areas of the city are very well planned with various amenities and public leisure places such as the Jubilee Park etc.
While building the city, Jamsetji Tata had said, “Be sure to lay wide streets planted with shady trees, every other of a quick-growing variety. Be sure that there is plenty of space for lawns and gardens; reserve large areas for football, hockey and parks; earmark areas for Hindu temples, Muslim mosques and Christian churches.”
Messrs Julin Kennedy Sahlin along with Jamsetji Tata prepared the first layout of the town of Jamshedpur which as it is today is a testament to their visionary plans and is the only million plus city in India without a municipal corporation.
It is said that the state government proposed a law to end the Tata’s administration of Jamshedpur in 1980’s but the local populace rose in protest and defeated the government’s proposal which then again repeated in 2005, with a similar proposal by lobbying politicians rejected by the populace of Jamshedpur to have a municipality.
Review of literature
1. New work attitude measures of trust organizational commitment and personal need non fulfillment – JOHN COOK AND TOBY WALL MRC Social and Applied Psychology Unit, University of Sheffield, Journal of Occupational Psychology, 1980 printed in Great Britain.
2. International Journal of World Research, Vol: I Issue XX, August 2015, LABOUR WELFARE MEASURES AND PROGRAMMES TOWARDS TRANSPORT CORPORATION LIMITED IN TAMIL NADU
Dr. R. SANTHANAKRISHNAN Assistant Professor, Siga College of Management and Computer Science, Kappiyampuliyur, Villupuram
Dr. M. RAJARAJAN Assistant Professor, Commerce Wing, DDE, Annamalai University,
3. Labour Welfare Measures (Voluntary), Shodhganga
4. Measuring the impact of sustainable policies, principle 3- Employee Welfare, Annual Report 2011-12
5. Labour Welfare and Industrial Health Facilities of Labour Welfare Dr. Shyamal Gomes
Objectives of the study
? To identify the welfare schemes and policies for employee in the organization
? Assess the effectiveness and quality of these welfare schemes/measures
? Employee morale and outlook of the organization’s welfare policy
? Identify any correlation between organizational success and employee welfare
Correlation between the welfare of the employee’s to the success of the organization.
Welfare measures for Employees in Tata Steel Ltd.
Tata Steel Limited is a multi-location organization operating across the globe with more than 60,000 employees. They were trend setters in Employee welfare measures and had introduced schemes like 8 hour working day, Leave with pay, Workers Provident Fund which was later adopted by International Labor Organization and the same was implemented through a statute across the country.
Human beings are central and essential for the success of any organization. Tata Steel has achieved a pre-eminent position in Indian industry primarily through maintaining good relationships with its employees and other stakeholders. Our Company has always believed that its values and the standards it sets are the foundation of its very existence.
Jamsetji Tata, the Founder of the Tata Group said,” We do not claim to be more unselfish, more philanthropic than other people. But we believe in sound and generous business principles and regard the health and the welfare of our employees a sure foundation of our prosperity”.
Tata Steel began its operations in 1911 with an 8-hour working day when most workers in the rest of the world were working 10 to 12 hours per day. The Company has an unprecedented history of good industrial relations and labor welfare. This is thanks to management’s concern for the workers coupled with the proactive yet reasonable attitude and demands of the workers’ union which was founded in 1920. As a result of this proactive partnership, Tata Steel has many firsts in labor welfare standards worldwide and many of these have later been incorporated as laws by the country of India.
Labor welfare measures in Tata steel
Nos Employee Welfare Measures Introduced in Tata Steel Enforced by Law in Legal Measures
1 8 hour working day 1912 1948 Factories Act
2 Free Medical Aid 1915` 1948 Employees State Insurance Act (ESI Act)
3 Establishment of Welfare Dept 1917 1948 Factories Act
4 Formation of Works Committees 1919 1947 Industrial Disputes Act
5 Leave with Pay 1920 1948 Factories Act
6 Technical Institute for Training 1921 1961 Apprentice Act
7 Profit Sharing Bonus 1934 1965 Payment of Bonus Act
List of Welfare Measures in Tata Steel
• Health and Medical
• Parks and Gardens
• Clubs and Associations
• Leave and other benefits
• Holiday plans
• Transfer benefits
• Company car scheme
• Study leave
• Up-gradation of skills/training
• Sports and welfare
• Adventure foundation
• Retirement benefits
Safety and Ethics are given maximum importance in Tata Steel even if it is at the cost of incurring a financial loss. These two aspects are never compromised and driven right down from the Board of Director’s Level with the President of the Company responsible for Safety and Ethics along with a Councilor who is appointed to advise and review the policies and directly report to the Managing Director. This enables all its workers and their families to be rest assured of their physical safety as well as peace of mind (in case of ethical dilemma/psychological problem). The Tata culture has now transformed from being known for Ethics to now being known for Ethics and Safety.
Housing: In places where Tata Steel has its manufacturing and mining facilities like Jamshedpur, West Bokaro etc, Tata Steel has developed colonies to provide housing to their employees. Houses of various types are constructed and employees depending on their profile are allotted accommodation. The house allotment process is transparent based on points depending on their level and years of service. Those not provided with house are given House Rent Allowance.
Utilities: Power and Water to the colonies are provided by the Company. Earlier, this was being done by the Company Town Administration. This has later been made into separate Utilities providing Company called JUSCO (Jamshedpur Utilities and Services Company) which specializes in township administration. While in certain locations the employees are charged for theses utilities in other hardship locations, they are provided at nominal cost to the employees.
Health and Medical: Apart for the famous, state of art, Tata Medical Hospital, at Jamshedpur, the company also runs a whole host of hospitals and dispensaries in all its manufacturing and raw material locations. The employees and their family are provided these facilities free of cost. In case of requirement for higher treatment, there is a system of referring the patient to amongst the best hospitals in the country like Shankar Netralaya, Apollo Hospitals etc. The bills of the same are met by the Company. Frequent medical checks are also carried out at regular intervals to ensure good health of the employee at their work place. Places where such facilities are not available, the employee is reimbursed the cost of the medical treatment without any limits.
Education: Tata Steel supports Private Educational Institutions by providing them with land and facilities to set up the schools and colleges. They also run schools and colleges on their own to ensure good quality education to the wards of their employee. The fees in such Company run schools and colleges are very subsidized. They are also active in providing Vocational Training to their Employee Wards to make them employable in various fields.
Parks and Garden: As per the vision of their founder JN Tata, each of the locations where Tata Steel is operating is categorized by a lot of open spaces, parks, gardens, wide roads, trees, which is for the benefit of the employees and their families.
Clubs and Associations: To ensure that the Company Employees are able to spend quality time and relax/unwind after office hours, the Company runs many Clubs and Associations within their premises. These are also location for get together for festivals and other occasions. The membership of many of these clubs is exclusively only for the employees and the facilities provided are either free or at nominal cost.
Leave and Other Benefits: Tata Steel was the pioneer in offering its employees Leave with pay even before it became a legal compulsion. Apart from leaves like casual leave, privilege leave, the company also provides its employees Sick Leave. The Company also provides Maternity Leave of Six months to their female employees and paternity leave of 2 weeks for the male members for their first born. Tata Steel has also introduced the concept of Work from Home for its officers.
Holiday plans – guest house/holiday homes are provided or arrangements are made with top hotels within or outside the country for stay of the employee and their family at subsidized rates. Each officer/employee would be eligible for a specific number of room nights per year depending on their level in the organization. Also the company is maintaining holiday homes of its in places of tourist interest for example Puri, Darjeeling, Ooty, etc for the benefit of the employee.
Transfer benefit – for those employee who are transferred from one place to another the company provides an entire range of transfer benefits to the employee and their family including travel expenses, accommodations, movement of household goods, help in securing school admission, settlement allowances etc.
Company car scheme – for senior management cadre the company provides motor car or cash equivalent allowance in case the employee opts for company provided car. The car is bought in the name of the company for use by the officer concerned and also sold back to the same officer at written down value after a period of five years if he so desires to buy the same. The officer is eligible for a new car every five years. Company also provides chauffer and fuel allowance to the officers as well as car maintenance allowance to such officers.
Study leave – the company also has a scheme for study leave for its employees wherein an employee desiring to study further is granted leave for the period of such education and is taken back in the company post the completion of the course.
Up-gradation of skills – apart from funding local technical institutes the company also runs their own technical institute under the name Savak Nanaviti technical institute (SNIT) where training is imparted on a regular basis to upgrade the skills of their employees. Vocational training is also imparted to the children of the employee to make them employable.
Sports and welfare- the company promotes sports in all discipline in a big manner from golf, tennis, squash, billiards, chess, horse riding and water snookering etc. Jamshedpur has a reputation as the sports capital of Jharkhand with Tata Steel promoting many sporting activities from private clubs such as Jamshedpur FC which is an ISL team owned by Tata Steel and based in Jamshedpur.
State of art facility is available at Jamshedpur for all sports. Academies and stadiums such as the JRD Tata Sports Complex – which is an international standard multi-use stadium with an eight-lane monosynthetic track which is primarily used for football and athletics but also has facilities for various other sports including archery, basketball, field hockey, swimming, table tennis, tennis, volleyball, skating, yoga as well as a modern gymnasium, are available at the complex. The stadium also hosted the women football competition ; archery event of the 34th National Games in 2011.
Keenan Stadium hosted its 1st International One Day Cricket match on 7 December 1983 in which India lost to the touring West Indies Team. Many other International matches have been played here in which India has won only one match against South Africa in 1999–2000.
Tata Football Academy was started in 1987 to nurture budding Indian footballers and raise the standard of Indian football. TFA is a football club in Jamshedpur, sponsored by Tata Steel. Today, Tata Football Academy is one of the premier football breeding grounds in India.
Tata Archery Academy: archery is a sport indigenous to the tribal people of Chota Nagpur and Santhal Pargana. Tata Steel has pursued and nurtured the local tribal people and provided them with facilities and training to bring them up to international competition standards in archery. Its students have attributed a lot of fame to the institute by bringing in many medals in National and International competitions.
Sumant Moolgaokar Stadium
Named after Sumant Moolgaokar (5 March 1906 – 1989) who was Vice-Chairman of Tata Steel the stadium seats around 15,000 and is an arena for many sports, recreation, gym etc.
Jamshedpur has two golf courses—the Beldih Golf Course and the Golmuri Golf Course. Both these courses are at the heart of the city. The biggest is the Beldih Golf Course which is around 6,000 yards. The Golmuri Golf Course although smaller is also challenging. They together hold the annual Tata Open Golf Tournament which is an event held under the support of the Professional Golf Tour of India. The tournament was started in 2002. Jamshedpur also has the Jamshedpur Gliding Club and the Jamshedpur Co-operative Flying club.
Also many top class sportspersons are in the employment of the steel company. Such as Miss Deepika Kumari the ace archer is currently an employee of the company while Cricketers like Saurav Ganguly, Ajit Agarkar and Ramesh Saxena were employed by Tata steel.
Adventure foundation – to foster a spirit of adventure and fitness amongst its employees the company runs the Tata steel adventure foundation which is headed by none other than Miss Bachendra pal the first Indian women who conquered Mount Everest. This foundation conducts regular expeditions for its employees in mountaineering and trekking with Miss Bachendra pal designing many courses using natural resources as training materials and sharing her leadership experience/skills of such expeditions citing real life examples. She has successfully led many mountaineering and adventure expedition including an all women expedition to empower women in India and thereby creating more leaders.
Retirement benefits – the company provides the retiring employee other than the statutory provident fund and gratuity a superannuation benefit to all its officers which is totally contributed by the company further all retired employee are eligible for free treatment in Tata main hospital at Jamshedpur. For retired employee living outside Jamshedpur the company provides medical insurance cover to meet any medical exigencies.