Employee Welfare Measures

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1.1 INTRODUCTION

This is a study on Employee Welfare Measures with reference to JKM AUTOMOTIVE (A DIVISION OF DYNAMATIC TECHNOLOGIES LIMITED) designs and builds highly engineered products for Automotive, Aeronautic, and Hydraulic and Security applications. With futuristic design, engineering and manufacturing facilities in Europe and India, we are able to meet customers' exacting requirements on 6 continents.  Labor welfare means “the efforts to make life worth living for workman”. Welfare is comfortable living and working conditions. People are the most important asset of an organization, and the accounting profession has to assess and record the value and cost of people of an organization. Once this is accepted, the need for measuring the value for recording it in the books of accounts arises. The value of human assets can be increased substantially by making investment in their training and welfare activities in the same way as the value of repairs/overhauling, etc. Unlike other assets which have depreciation value as year’s passes by, value of human assets appreciates with passing years. The value can depreciate by aging process which is generally hastened up by worries, unhealthy conditions, etc. once this process is slowed down, or at least if the employee is made to feel youthful in spirits the value of this asset appreciates considerably. Any investment constitutes the assets of a company and therefore, any investment for welfare of labor would constitute an extra investment in an asset. Industrial progress depends on a satisfied labor force and the importance of labor welfare measures was stressed as early as1931, when the Royal Commission on labor stated the benefits which go under this nomenclature, are of great importance to the worker and which he is unable to secure by himself. The schemes of labor welfare may be regarded as a wise investment´ which should and usually does bring a profitable return in the form of greater efficiency

Employee welfare work aims at providing such service facilities and Amenities which enable the workers employed in an organization to perform Their work in healthy congenial surrounding conductive to good health and High morale. Employee welfare is a comprehensive term including various services, Benefits and facilities offered by the employer. Through such generous fringe Benefits the employer makes life worth living for employees. The welfare Amenities are extended in additional to normal wages and other economic Rewards available to employees as per the legal provisions. INDUSTRIAL PROFILE

Automotive industry:
The Indian automobile sector can be divided into several segments: 2 & 3 wheelers, Passenger cars, Commercial vehicles (Heavy CVs/ Medium CVs/Light CVs), Utility vehicles (UVs) and Tractors. Agricultural tractors and Earth Moving Machinery is an associated sector, which keeps the wheels of the agrarian economy moving. 

It is heavily reliant and aligned to the automobile and allied engineering sector and plays a significant role in India. The automotive Industry in India is now working in terms of the dynamics of an open market. Many joint ventures have been set up in India with foreign collaboration, both technical and financial with leading global manufacturers. Also a very large number of joint ventures have been set up in the auto-components sector and the pace is expected to pick up even further. The industry is characterized by a very high percentage (75%) of production in the 2/3 wheelers sector. India ranks as the largest manufacturer of motorcycles and second largest in manufacturing of scooters in the world.  India today is also the second largest manufacturer of tractors, as well. The industry has intense forward and backward integration. The joint venture list indicates a wide variation ranging from 10% to 100%. The equity participation is not regulated by Government but is market driven.  By 2020, the luxury car segment is estimated to be...
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