"Welfare" Becoming Problem

We are the part of a prestigious and very old industrial house who believe in employees welfare from day one.
One decade back we started from green field. At that time to attract and retain employees we\'ve introduce breakfast in canteen and transport bus from neighboring town as at that time our factory was at remote area.
In the beginning scheme ran very well but since last few yrs workers are assuming that these are their right and employer cant discontinue.
Excess involvement of workers in both is creating nuisance and lot of efforts are being put to run both the services smoothly.
What could be repercussion if we spread message to discontinue both services.
Neither in Appt. letter nor in the standing order we have mentioned about these facilities.
Senors please guide to handle as \"Welfare is becoming Farewell\" for HR people.

HR PROF.
Nothing should be given in a company at free of cost specially with employees. Whenever you want to introduce anything related to Welfare please bring in along with consultation with " Employees " who are going to enjoy the " Welfare scheme " by employer.
Now if you try to stop the facility then I am sure employees will resent / oppose it. If this facility is been provided for pretty long period then this has become the part of service conditions of their employment so any change to this has to be brought by issuing notice under section 9A of ID Act.
Better consult with all employees & try to convince them try to negotiate with them to take in return " Something " for the said Free facility.
In future please ensure nothing to be provided to employees in the name of Welfare at free of cost always try to take something in return related to discipline / productivity / quality of the Company.
Wish you all the success. Please update / share us your stand & outcome of the same.

I don't think the ID act would be involved here, if it is not part of any written offer. Better to make the services complimentary or for a minor fees for older employees say after 3 years of service and start charging from new employees on no profit- no loss basis initially in the name of employee welfare.

You have clearly mentioned that your organization is a prestigious industrial house with belief in employee welfare. You have also stated that this facility was introduced to attract people rather than as a welfare measure.

I think your organization is not interested in stopping these facilities.

The issue seems to be 'EXCESS INVOLVEMENT OF WORKERS' in running these facilities rather than the cost. Cost could go up if there is excess involvement.

The fact that the organization is just 10 years old indicate that the average age might be around 28. When we talk about group, we talk about four stages

1. Forming

2. Storming

3. Norming

4. Performing

The same is applicable to any process to settle. I guess the organization must have formed some committees in the last two to three years to manage these facilities. It will go smooth in the initial stage. You might be facing the Storming stage. If you can manage this stage well which involves education, counseling , the issue will be resolved. The moment you look and address workers as "They" and the Management as " We" the gap widens.

Firmness and perseverance are the keys. Rigidity and impatience to be carefully avoided while managing Storming stage.

Thanks for views.
We are deducting 1/10 part of the cost from their salary. Remaining being borne by the employer.
How to streamline with genuine involvement of users.

My views pl
Facilities once given and that too for a long period can not be withdrawn without justifying suitabely. Welfare facilities are extended to the employees by the organisation with a view to facilitate comfort to the employee, so that he can contribute better for organisational goals.
I being HR professional understand your difficulties. But would like to suggest to take sufficient time to implement decision which may bring negative thought in the mind of employee, which may affect organisations work progress. Even if withdrawing extended facility not attracts any voilation in the frame of Labour Laws, long term effect in terms of organisations work progress always counts. Employees can be taken in confidence, can be counselled and forming a group desired option can be achieved.

I had been conducting Compensation surveys during the past five years in Chennai. My survey indicated that most of the Managements in Manufacturing sector spend anything between 90% and 98% towards subsidy of canteen. This includes breakfast and lunch.
You are spending 90% which is very good. I am yet to come across with an organization in manufacturing sector spending less than 90%
In Transport the subsidy varies depending on the location. However if it is around 50% it should be reasonable. Some Companies insists on 100% at managerial levels. Some companies even give 100% subsidy

Dear HR PROF,

Learned members like Mr T.Sivasankaran've already poured in a lot of inputs regarding the issue from out of their practical wisdom. However, as a former conciliation officer blessed with sufficient opportunity of handling industrial disputes at times emenating from trivial issue like poor quality of the food supplied in the canteen or rude behaviour of the canteen staff, I may be permitted to share my views in this regard with the forum. Why the managements started extending the so called 'welfare measures'? Is it out of compassion to bridge the gap between the 'real wages' and 'money wages' of the workmen? or to facilitate their mobility within and without the factory premises? Please, do think about the fleet of buses operated in the wee hours in and around Sivakasi, the "KUTTY JAPAN" mobilising labour from the neighborhood. When you enter into the arena of business that too based on large-scale production and marketing, profit becomes the life-blood. Maximizing the flow and the quantum of the life-blood in business is prudentially that of cost-cutting; cost-cutting has got several aspects. One of the cheapest and the most bargainable is labour-cost. Apart from the hidden agenda of maximizing productivity by all means, just to have an edge in the process of bargaining, the so-called welfare measures such as canteen services, transportation facilities etc., are being offered and implemented.Sivasankaran has got hold of the exact thread for this exercise of your management ...ie., " THAT THIS FACILITY WAS INTRODUCED TO ATTRACT PEOPLE RATHER THAN AS A WELFARE MEASURE." Then, why you are grumbling that welfare is becoming farewell? From your description that 'excess involvement of workers" I am not able to understand what you actually mean.Is it the excess consumption or utilization of the facility at 90% concessional cost ultimately resulting in wastage of food in the canteen or the improper use of transportation by unscheduled points of boarding and alighting as the case be or some other things relating to reprentation in the canteen committee! If so, it is just like giving a whole coco-nut to a dog to eat.Really, I am sorry workmen cannot be compared to that of dogs.They have got what is called as "native intelligence". So, try to indulge in some introspection and as a typical HR Professional,

find out the remedy.

Dear All,

I had few years back I faced similar situation. Similar facilities were offered by management . But later few destructive minds jumped into arrangement to find some additional benefits. One day this came to a worst situation . Was like a wet blanket you can use it, can not throw it, and can not carry it due to heavy weight. Then I prefered to discuss the issue with chairman. I would like to share his solution with all of you.

He explained .

We are providing the facility - Has its own cost.

We stop - Will have its own cost in form of resistance, demotivation, and destructive minds will become more stronger to spoil the mind of sincere employees.

Our Problem - Having difficulty to satisfy the mob, even spending the huge amount of money.

His solution - Declare this as hardship allowance ( not monthly basis, calculate on the basis of days attended. ) Believe it or not , per employee it was falling 365- 52 weekly off - 30 Leaves - 15 holidays= 265 days .

By doing so we saved setup cost and wastage.

And we could keep destructive minds ineffective which was the biggest problem.

[B][B][B]Dear Sir

To Mr Umakanthan. Thanks for sharing your wisdom. I am sure that as a senior person with background of complete labour law compliance, experience in conflicts handling and solution, your suggestions are extremely worthy and implementable by organisations when dispute arises.

On the sidelines, I would like to share my insights about a one section of labour force -- namely security guard-- is not at all considered as human beings in majority of establishments bearing a few. Although their presence is critical and important to guard the property, people and assets etc for 24 hours X 365 days whether it shines or rains. There are approximately 3 lakh direct workforce employed in this unorganised sector with turn over around 22,000 crores on all India Basis. No law or regulations care them. There is no guarantee for their employment, job, career, wages, holidays. But anybody and everybody can wear the cap, belt and a pair of unfit uniform to build the image of guard. Such is the demand of the workforce across all locations. Their plight is pitty and working conditions are hardest and harshest. Yet the industry is growing at rate of 20% per annum. In the midst of alarming security concerns, threats across all sections of society, this industry is not even looked at by any department to regulate them. The laws like CAPSI is followed in paper only. Your views please.

To

Mr Himanshu,

Please share some more light on your process of arriving at a sollution in your organisation.

Regards.

V. Rangarajan.

HR Consultant, MBA faculty and Ph.D Scholar --Chennai.