Report on
Annual Survey of Industries 
Sample Sector
Round 1997-98
Absenteeism & Labour Cost
PREFACE

 Annual Survey of Industries is conducted nation-wide every year under the Collection of the Statistics Act,1953 and  the Rules framed there under in 1959 in order to provide a sound data base for estimation of the  contribution of the manufacturing sector to the national income .  Labour  being an integral part of  any industrial activity, data on its various facets that inter-alia, include, Absenteeism, Labour Turnover, Earnings, Employment and Labour Cost, form an important constituent of these statistics. Labour  Bureau is responsible for processing, analysis and preparation of reports thereon every year. Data on Absenteeism, Labour Turnover, Employment and Labour Cost are collected every year except during the last year of each four years block when the details of earnings  are collected in lieu of the data on Absenteeism and Labour Turnover. For the year 1997-98, data on all these aspects except  earnings were collected by the Field Operations Division (FOD) of the National Sample Survey Organisation (NSSO) and are presented in this Report.

2. Statistics of Labour Cost presented  in  this  Report also meet  the  requirements of statistics of Labour Cost as enumerated under Article 11 of the I.L.O. convention No. 160, concerning labour statistics which has been ratified by the Government of India. No other agency in India either collects or disseminates the data on Absenteeism, Labour Turnover, Employment and Labour Cost. The data disseminated through the ASI-Part-II helps the entrepreneurs in deciding the location of their new ventures. The data on labour cost and earnings is of immense use for comparison between indices of labour productivity and Labour Cost. 

3. The data in this Report of ASI-1997-98 round-Sample Sector have been presented at two digit level of the National Industrial Classification-1987 and aggregated at state, industry and all-India level. The data have been presented separately, for the public and private sectors. For facilitating comparative study, the trends for the earlier round i.e. 1996-97, have also been given in the Tables.

4. I grateful acknowledge, the expertise of the Field Operations Division of the NSSO for collection of data from a large number of establishments spread over the country and ensuring timely submission of  the returns. I would also like to convey my sincerest thanks to the various industrial establishments for their willing co-operation in furnishing the necessary information and making this Report a reality.

5. The names of officers/officials, who have toiled through various stages of  preparation of this report deserve my appreciation for the commendable job done by them, have been given at Annexure-III.

S.R.S.GILL 
DIRECTOR  GENERAL
CHANDIGARH/SHIMLA
 November, 2001 

EXECUTIVE SUMMARY 

1.  Census of Manufacturing Industries (CMI), under the Industrial Statistics Act, 1942, was started in 1946 wherein 29 groups of Industries out of a total of 63 industry groups were covered annually till 1958.  On the same lines, the Directorate of National Sample Survey conducted Sample Survey of Manufacturing Industries from 1949 to 1958 in all the 63 industry groups except those belonging to the Railways and Defence.

2. The Industrial Statistics Act, 1942 was subsequently repealed by the Collection of Statistics Act, 1953 and the rules framed thereunder in 1959 which envisages conduct of nation-wide Annual Survey of Industries (ASI)  to provide a sound data base for the estimation of the contribution of the manufacturing sector to the national income.

3.The labour part of the ASI, i.e., Part-II of the ASI schedule, in which the statistics are collected on Absenteeism, Labour Turnover, Earnings, Employment and Labour Cost including Welfare Expenses and Bonus, etc., was launched from the ASI 1961. The ASI in the Sample Sector was introduced with effect from the ASI 1976-77.

4. The Collection of data under the Annual Survey of Industries was extended to the units employing 10 or more workers using power or 20 or more workers and not using power with effect from the 1976-77 round of the Survey. Prior to this, the data under the Annual Survey of Industries was being collected in respect of units employing 100 or more workers on the  census basis 

 5. The scheme was divided into two parts, viz., Census and Sample Sectors and the Labour Bureau started bringing out reports on Sample Sector and Census Sector, separately, with effect from the 1977-78 round of the Annual Survey of Industries.

 6.  From 1997-98, the scope of census sector has been extended to all the factories employing 200 or more workers (instead of 100 or more workers) irrespective of the use of power and registered under sections 2m (i) and (ii) of the Factories Act, 1948, Bidi and Cigar units registered under the Bidi and Cigar workers (Conditions of Employment) Act, 1966 and all electricity generating, transmitting and distributing establishments irrespective of the size.

 7. The present report relates to the 1997-98 round of the Annual Survey of Industries in respect of Sample Sector and comprises of the results relating to Absenteeism, Labour Turnover, Employment and Labour Cost data which were collected in  Blocks-2, 4 and 5 in Part II of the ASI Schedule.  Data presented in this Report relate to the calendar year for Block 2 and accounting year of  the  factories/establishments  ending  on  any  day  during  the  financial  year  1997-98  for 
Blocks 4 and 5.  The requisite data was collected by the Field Operations Division of the National Sample Survey Organisation (N.S.S.O.). Wherever considered necessary, trends for the previous year i.e. 1996-97 have also been presented in the tables and analysis done. Since, data on employment and labour cost is collected every year, data in respect of these characteristics has been compared with the results of ASI round 1996-97. 

8. Perusal of data presented in the report reveals that about  98 percent of the total number of working factories in the frame at the all-India level responded during 1997-98. However, the response rate was more than 99 percent in the states of Haryana and Rajasthan.

 9. The rate of absenteeism in respect of directly employed workers at the all-India level reported  a decrease from 11.0 percent in 1996 to 10.0 percent in 1997. Absenteeism rate in 1997 was the highest at 15.0 percent in Delhi and the lowest at 6.7 percent in Andhra Pradesh.

 10. The annual rate of labour turnover is measured in terms of accession i.e. total number of workers added to employment and separation i.e. severance of employment at the instance of worker or employer. At the all-India level,  the annual rate of accession recorded an increase from 24.2 percent in 1996 to 25.2 percent in 1997. The annual rate of separation also showed an increase  from 22.5 percent in 1996 to 23.9 percent in 1997.

 11. The total work force in the sample sector establishment in 1997-98 was estimated at 2.87 million.  Private sector alone accounted for about 97 percent of the total work force. Further, about 18 percent of the total work force in the sample sector was engaged through contractors.  Incidence of contract labour was higher in the private sector (18.2%) than in the public sector (14.8%).

 12. The average labour cost per manday worked, i.e., expenses incurred by industrial establishments on wages/salaries, bonus, contribution to provident & other funds and workmen & staff welfare of workers, per manday worked, in 1997-98 was Rs. 130.88 at the all-India level, recording an increase of 12.94 percent over the previous year (Rs.115.89).   The average labour cost per manday showed consistent increasing trend by state.

 13. The highest Labour Cost per manday was reported in Maharashtra (Rs.196.90) and in the Industry Group 35-Machinery, Machine Tool & Parts  (Rs.206.28). The lowest Labour Cost was reported in Assam (Rs.61.42) and in the industry group 25 遷ute and other Vegetable Fibre Textiles, except Cotton (Rs. 70.07).

 14. Wages and Salaries alone accounted for 79.7 percent of the average Labour Cost at the all-India level. About 73.5 percent of the total factories in the sample sector reported payment of Bonus during the year 1997-98.

15. Statistics  of  Labour  Cost  presented  in  this  Report  also  meet  the requirements of statistics of Labour Cost as enumerated under Article 11 of the I.L.O. Convention No. 160, concerning labour statistics which has been ratified by the Government of India. Statistics of Labour Cost are supplied to the India office of I.L.O. and are presented in the annual I.L.O. publication containing labour statistics i.e. I.L.O. Year Book of Labour Statistics, relating to all the member countries. 

 16. The statistics contained in this Report will prove immensely beneficial to the government Departments and the Industry alike. The Report would also be updating the time series data already disseminated by Labour Bureau in this regard. This Report would also be useful to the researchers engaged in the research on the related fields of labour statistics.
 

CHAPTER - I
INTRODUCTION
1.1 Background
 The economic development of a country is generally related with the industrial development. One of the pre-requisites for systematic industrial development is the availability of adequate and reliable data on various aspects of industrial activities like inputs, outputs, wage bill, working days, mandays worked, absenteeism, labour turnover, earnings, employment and proportion of contract labour, labour cost, bonus and welfare expenses, etc.,  all of which have a bearing on the selection, location and development of an industry.  One of the steps taken in this direction was the passing of the Industrial Statistics Act, 1942 and setting up of the Directorate of Industrial Statistics at the centre to enforce the Act.  Under the guidelines provided by this Directorate, the first Census of Manufacturing Industries (CMI) was conducted in 1946, wherein 29 groups of industries, out of a total of 63 industry groups, were covered annually from 1946 to 1958.  The CMI was also conducted in 1944 and 1945 on  voluntary basis but the results could not be tabulated as only 37 percent of the factories submitted returns and also because these returns were of poor quality.   Similarly, the Directorate of National Sample Surveys conducted  Sample Survey of manufacturing industries from 1949 to 1958 in all the 63 industry groups except those belonging to the Railways and Defence.  Later on the Industrial Statistics Act, 1942 was repealed by the Collection of Statistics Act, 1953 and rules framed thereunder in 1959 regarding the statistical authority and procedure for collection of requisite data.

 The Annual Survey of Industries (ASI) under the Collection of Statistics Act, 1953, therefore, came into existence in 1959 and the hitherto being conducted surveys, viz., Census of Manufacturing Industries and Sample Survey of Manufacturing Industries were discontinued.  The labour part of the Annual Survey of Industries, i.e. Part II of the ASI schedule in which the statistics are collected on (i) Absenteeism and Labour Turnover, (ii) Earnings, (iii) Employment, (iv) Labour Cost including Welfare expenses and Bonus etc., was launched with effect from the Annual Survey of Industries-1961.  In that year Part II was canvassed in respect of both the Census and the Sample Sectors.  But, due to non-availability of detailed  statistics in respect of units in the Sample Sector, it was decided to canvass Part II return only in respect of the units in the  Census Sector. However, the  ASI in Sample Sector was reintroduced with effect from the  ASI 1976-77. 

 Under the Collection of Statistics Act, 1953 the field survey for the A.S.I. is conducted by the Field Operations Division (FOD) of the National Sample Survey Organisation  (NSSO)  through its  network  of  zonal,  regional  and  sub-regional  offices located in the different parts of the country.  The Deputy Director General, FOD is the Statistics Authority appointed under the Act for the purpose of collection of data and for successful execution of the survey programme.  Processing of data and publication of reports thereon are the responsibilities of the Central Statistical Organisation (CSO) in respect of capital structure, work force, wage bill, inputs and outputs, collected through Part I schedule of the ASI, Labour Bureau in respect of  absenteeism, labour turnover, man-hours worked, earnings, social security benefits and labour cost, collected through Part II of the ASI schedule and the National Building Organisation (NBO) in respect of housing activities, i.e., houses constructed/purchased by the employers for the benefit of their employees, collected through the Part III of the ASI schedule.  The overall guidance regarding the sampling design, sample size, types and techniques of data collection, processing and tabulation is provided by the Steering Committee on the Industrial Statistics constituted by the Governing Council of the NSSO with representatives from users' organisations in the central economic Ministries including the CSO, the Labour Bureau, the NBO, State Governments, Reserve Bank of India, research institutions and eminent scholars.

1.2 Objectives of ASI

 The main objectives of the Annual Survey of Industries (Part-II) are :

(a) To build systematic data base on Employment, Absenteeism, Labour Turnover, Earnings and Labour Cost in Manufacturing Industries
(b) To analyse various components of Labour Costs such as Wage/Salary, Bonus, Social Security, Staff Welfare, etc. in Manufacturing Industries.
(c) To provide comprehensive factual and systematic data on different aspects of Labour for future planning and policy formulation. 

1.3 Scope and Coverage

 The scope of the Annual Survey of Industries extends to the entire country except the States of Arunachal Pradesh, Mizoram, Sikkim and Union Territory of Lakshdweep.  It covers all factories registered under Sections 2m (i) and 2m (ii) of the Factories Act, 1948 which refer to the establishments using power and employing 10 or more workers and those not using power and employing 20 or more workers on any day of the preceding 12 months and the bidi and cigar manufacturing establishments registered under the  Bidi and  Cigar Workers (Conditions of  Employment) Act, 1966. All  electricity  undertakings engaged in the generation, transmission   and distribution of electricity and registered with the Central Electricity Authority are also covered under the ASI irrespective of their employment size. Certain other activities like cold-storage, water supply, gas production and distribution, motion picture production, laundry services and repairs are also covered.  The defence factories, technical training institutes, jail factories and units engaged in storage and distribution of oil, restaurants, cafes and computer services are, however, excluded from the scope of the survey.

1.4 Unit of Enumeration
 The factory in the case of manufacturing industry, a workshop in the case of repair services, an undertaking or a licensee in the case of electricity, gas and water supply undertaking, and an establishment in the case of bidi and cigar industry are the primary units of enumeration in the survey.
1.5  ASI  Frame
 The Chief Inspector of Factories maintaining the lists of registered factories/units in each State and the licensing authorities in respect of the bidi and cigar establishments and electricity undertakings are responsible for providing the frame for the Annual Survey of Industries.  This frame is updated every year by the regional offices of the NSSO (FOD) by adding the names of newly registered units/establishments and is revised once in three years by removing the names of de-registered units/establishments.
1.6 Classification of Factories
 For the purpose of the ASI, the factories in the frame are classified into two sectors, viz., the Census and the Non-Census or the Sample Sector.    Upto 1986-87 the Census Sector covered establishments which employed 50 or more workers and used power and 100 or more workers but did not use power and all Electricity Undertakings. From 1987-88, the Census Sector includes:
(i) all units employing 100 or more workers irrespective of use of power; 
(ii) all units out of the remaining units in the industry group at three digit level of classification for which the number of factories in a State is 20 or less;
(iii)  all units  located  in  less  industrialised States/Union  Territories, viz., Jammu   and  Kashmir, Himachal  Pradesh, Chandigarh, Goa, Daman and Diu, Dadra and Nagar Haveli, Pondicherry, Andaman &  Nicobar          Islands, Tripura, Meghalaya, Manipur and Nagaland; 
(iv)      all electricity undertakings engaged in the generation, transmission and 
  distribution of electricity  and
(v) bidi and cigar units registered under the Bidi and Cigar Workers Act., 
1966. 

The Sample Sector covers all the remaining units not included in (i) to (v)  above.

 From the current round i.e. 1997-98, clause (i) above has been amended, as a result, from this year (i.e. 1997-98) units employing 200 or more workers, irrespective of use of power would be covered in Census Sector.

1.7       Sampling  Design 

  The sampling design adopted with effect from ASI 1987-88 is stratified unistage one for the sample sector.  The stratum  was an industry group at 3 digit level of National Industrial  Classification  (NIC), 1987  in a  state  or a  union territory.  The  Strata  or  the industry  groups  were  divided  into  the  following  three categories  for  the  purpose  of sampling:

Category 1:   Those industry  groups ( at 3 digit level of  NIC) or strata 
                      where the number of factories is  20 or less are designated 
                      as  Complete  Enumeration (CE) category.

 Category 2:  Those strata where the number of units within each 
                      stratum is between 21 and 60   have been classified as 
                      Segment S1. 

      Category 3: Those strata where the number of units within each 
                          stratum  is 61  and more have been  classified as 
                         Segment S2.

           While all the factories in each stratum of category-1 were completely enumerated under Census Sector, a fixed sample of 20 units  from each stratum  belonging to segment S1 (Category-2 above) was drawn.  In Segment S2 (Category-3 above), a sampling of one in three was adopted in each stratum.  Selection of factories in categories 2 and 3 was done circular systematically with a random start.

Formation of strata was done by grouping factories in each State, by industry.  The factories in an industry were arranged in the ascending order of district codes and within each district in the descending order of employment size.
 1.8      Estimation Procedure

In segment S1 (Category-2 above) a separate multiplier for each industry group (3 digit level of  NIC) within a State was required to be determined.  In segment S2 (Category-3 above), however, the multiplier was uniformly taken as 3.  The estimation procedure for segment S1 (Category-2 above), i.e., strata having units between 21 and 60 was described as under: 

Notation

Let 
      S1   :    Segment with strata having units between 21 and 60
      Ni   :    Number of units considered for selection from the ith 
                stratum of  segment S1
      N段  :    Number of units reported in the frame for the ith stratum of S1
      ni    :    Number of sample units selected from ith stratum of S1
      n段   :    Number of  sample units reported in the ith stratum of S1
      M段 :    Multiplier for the ith stratum of S1 segment

Estimation

Estimate for any characteristic was obtained by using the multiplier
M段   =   N段 / n段

N段 can be estimated as Ni x n段 / ni following the valid assumption that N段/Ni = n段/ni and the multiplier Mi = Ni/ni can, thus be  calculated immediately after selection.

1.9 Schedule used for enquiry

 The ASI schedule was designed by the Steering Committee on Industrial Statistics to meet the national and international requirements for industrial statistics.  The schedule is examined and reviewed in the light of the experience gained over time and necessary changes, if any, are made before launching the survey each year.  Broadly, the form and contents of the schedule as also concepts and definitions of the terms included therein, however, remain the same. 

 The Part II of the schedule which contains the labour statistics, as detailed below, is canvassed for the Labour Bureau:

(i)    Absenteeism, Labour Turnover and Mandays worked in respect 
       of directly employed  regular  workers  for  each  month  of  the 
       calendar  year (Block-2) 
 

(ii)  Working days, Mandays and Man hours worked, and Earnings during cash counter of the Calendar Year (Block-3).

(iii)   Employment ( Block-4 )

(iv)   Wages Salaries, Bonus and Labour Cost including Welfare 
       Expenditure ( Block-5 )

 A facsimile of Part II of the ASI schedule is given in Annexure I.  Block 4 and 5 of the schedule are canvassed every year whereas Block-2 is canvassed every year during the first 3 years in a block of 4 years.   In the fourth year of each such block of 4 years, data on earnings in Block-3 of the schedule are collected in lieu of Block-2. For the ASI 1996-97, Block-2 of the schedule was canvassed along with Block  4 and 5.

New Sampling design followed in ASI 97-98

 The Central Statistical Organisation (Industrial Statistics Wing), Calcutta arranged a symposium on 鉄ampling design of ASI in March, 1998.  Besides the Secretary, Department of statistics, many academicians, higher officials in the field and international experts were present in the symposium.  Various issues relating to sampling design were discussed in the symposium and it was decided that the following issues needed to be resolved after being examined by an expert group:

(i) How to reduce the sampling fraction to a manageable size.
(ii) How to make the present sampling design more efficient.

To consider these matters, the Secretary, Department of Statistics constituted Technical Group for revision of Sampling design of Annual Survey of Industries under the chairmanship of Prof. Arijit Chaudhury of the Indian Statistical Institute.

(i) To develop suitable sampling design and estimation procedure for ASI with reduced sampling fraction.
(ii) To suggest suitable method for non-response cases and revision of frame.

The Technical Group in its meeting held on April 29th 1998 and 29th May,1998 at CSO (ISW), Calcutta discussed the problems of the sample design i.e. (i) problem of estimation of parameters at 4 digit industry codes based on multipliers calculated at 3 digit of industry which might result into serious bias in estimation of parameters in either direction upward or downward, (ii) there are large number of strata for the sample sector, (iii) no method employed for estimation of non-response units, (iv) the existing sampling fraction is too high and  is around 50%.  After detailed deliberations, the Group recommended a revised sampling design with reduced Sample size for use in ASI 97-98 compared to ASI 96-97.

Recommendations :

The salient features of stratification of the population for selection of units were as under:
Census Sector :

A For industrially less developed States/UTs.

Cat-I All industrial units of less industrially developed 12 States/UTs.

B For States/UTs. Other than those industrially less developed States/UTs. 

Cat-II Industrial units having 200 or more workers.

Cat-III All electricity Undertakings and PSUs not covered under Cat-II.

Cat-IV Industrial units having significant input/output/GVA/NVA which would jointly contribute with Cat-II & III not less than 90% of  NVA within a State.

Sample Sector :

All industrial units of the entire ASI frame minus the industrial units of the Census Sector will form Sample sector.
Salient points for determination of sample size and sample selection of industrial units (IUs):

(i) Level of sample allocation All India, State-wise and at 4 digit industry level within each State.
(ii) All India sample size is first determined for all the 16 States together based on actual value of co-efficient of variation and this is allocated among the States taking into account the number of IUs within the State falling under Sample Sector.  Marginal adjustment is made to ensure an average sample size of five IUs per 4 digit industry levels.
(iii) Number of IUs belonging to each 4 digit NIC level of the Census Sector is determined.  This size is subtracted from the frame IUs belonging to each 4 digit industry in order to determine the population size of IUs falling under Sample Sector according to each 4 digit industry.
(iv) The allocated sample size for a State is again allocated at 4 digit industry level based on 典otal output (in case of total output data are found to be not available or usable for some 4 digit industry group, data on number of units may be used for those strata only).  This allocated sample size is further adjusted as below.

(a) If the allocated sample size is more than the size of the Sample Sector frame, limit the sample at frame size.
(b) If the sample size is found odd, add 1 to it to make it even (or subtract 1 in case the sample size becomes more than population size).
(c) If the Sample sector size plus Census sector size together come below four(4) increase sample size accordingly.
(d) In case a new industry group located in corrected frame, allocate sample size based on the criteria of number of units.

(v) The Technical Group recommended Circular Systematic Sampling (CSS) procedure with equal probability in choosing n(A)j factories from the jth strata of State 鄭.  Before drawing of sample, all the sampling industrial units within a fixed 4 digit Industry group are to be arranged according to District X Workers categories.

Other recommendations:

i) Adjustment for n on response.

The Technical Group Suggested following method for Non-response cases other than de-registered/non-existent factories:

Census:   Substitute by past available data with proper adjustment.

Sample:  Substitute by past data  or by adjacent sample as per CSS.

1.10    Reference Period

 For Block 2 of the  schedule, reference period for ASI 1997-98 was the calendar  year 1997, whereas for Block, 4 and 5 of the schedule, the reference period was the accounting year of the factory ending on any day during the financial  year 1997-98. In ASI 1997-98, data collected from the respective units/establishments thus relate to their accounting year ended on any day between April 1, 1997 and March 31, 1998 for Block 4 and 5.  However, for Block-2 of the schedule, the reference period was the 12 months of the calendar year 1997.

1.11     Period of Survey

 The survey was conducted during the year 1998-99 (November-January).

1.12     Concepts and Definitions

 The  concepts and definitions followed in the survey and used in the present Report are given below

  (i)   Worker: This term covered all persons who were defined as workers in the Factories Act, 1948, i.e., all persons employed directly or through any agency, whether for wages or not, in any manufacturing process or in cleaning  any part of machinery or  premises used for manufacturing process or in any other kind of work, incidental to, or connected with the manufacturing process or the subject of manufacturing process. Thus, the term 層orker covered those workers who were directly employed by the factory/establishment and those who were employed through contractors. While apprentices are included, persons employed in supervisory, managerial and confidential positions and unpaid family workers were excluded from the scope of definition of worker.

   (ii) Contract worker : All persons who were not employed directly by an employer but through the third agency, i.e., contractor, were termed as contract workers. These workers may be employed with or without the knowledge of the principal employer.

(iii)  Supervisory,  Managerial   and  Other   Employees:     All   persons  in
 supervisory and managerial positions whether covered by the definition of the term  層orkers under the Factories Act or not, were treated as a separate category and termed as managerial and supervisory staff.  The remaining persons, i.e. other than those categorised as Workers and Supervisory, Managerial, employed by the factory were covered under the term 'Other Employees'.

  (iv) Working Day: Working day meant days on which a manufacturing process  repair or maintenance work was carried on.

  (v) Mandays Worked: These were obtained by summing up the number of mandays worked by  persons working in each shift over all the shifts on all days, i.e. both manufacturing and non-manufacturing days. This figure excluded persons who were paid but remained on leave, strike, etc.

  (vi) Mandays Paid For: The number of mandays paid for was arrived at by   summing up the number of employees paid for in each shift. This also included mandays on weekly and scheduled holidays if paid for and other absences with pay as also mandays lost through lay offs/ strikes for which compensation was payable.

  (vii) Earnings/Emoluments: These were defined in the same way as wages and salaries but paid to all employees plus imputed value of benefits in kind i.e. the net cost to the employer on those goods and services provided to employees free of charge or at markedly reduced cost which were clearly and primarily of benefit to the employees as consumers. It included profit sharing, festival and other bonus and ex-gratia payment paid at less frequent intervals (i.e. other than bonus paid more or less regularly for each period). Benefits in kind included supplies or services rendered such as housing, medical, education and recreation facilities. Personal insurance, income tax, house rent allowance and conveyance allowance etc. for payment by the factory are to be included in the emoluments. Supplement to emoluments includes (i) employer痴 contribution  to old age benefits i.e. provident fund, pension, gratuity etc. (ii) employer痴 contribution towards other social security charges such as Employees State Insurance (ESI), compensation for work injuries, occupational diseases, maternity benefits, retrenchment and lay-off benefits etc. and (iii) group benefits like direct expenditure on maternity, creches, canteen facilities, educational, cultural and recreational facilities and grants to trade unions, co-operative stores etc. meant for employees. Amounts payable for the month rather than paid were taken into account.

   (viii) Absenteeism: For purposes of the Survey, the term 羨bsenteeism was defined as the failure of a worker to report for work when he was scheduled to work. A worker was considered to be scheduled to work when the employer had work available for him and the worker was aware of it. Authorised absence was  also treated as absence while presence for even a part of the day or shift was treated as presence for whole of the day or shift. Absence on account of strike, lockout, layoff, weekly rest or suspension was not taken into account. Thus, it relates to only voluntary absenteeism, i.e. absence due to the reasons which are personal to the individual concerned. Absenteeism data given in this report presents percentage of mandays lost on account of absence to the total mandays scheduled to work, i.e., mandays worked plus mandays lost on account of absence.

    (ix)  Labour Turnover : Labour Turnover measured the extent of change in the work force due to accession and separation during the reference period. The term  "accession"  was defined as the total number of workers added to employment during the period, whether new or re-employed or transferred from other establishments or units under the same management.  Inter-departmental transfers within the same establishment were, however, ignored. The term `separation implied severance of employment at the instance of worker or employer. It included termination of service due to death or retirement. As in the case of accession, transfers to other establishments  were included but transfers within the same establishment were ignored. Retrenchment as a result of rationalisation or modernisation or any other cause was also treated as separation. The annual accession and separation rates were calculated as percentages of total accession or separation during the year to the average number of workers in employment during the year. The average number of workers in employment during the year has been derived by dividing the total number of workers in employment on the first day and the last day of all the twelve months, by twenty four. 

 (x) Wages  and Salaries : Wages and Salaries were defined to include all remuneration capable of being expressed in monetary terms and also payable, paid more or less regularly in each pay period to workers (defined above) as compensation for work done during the accounting year. It includes:-

(a) direct wages and salary (i.e. basic wages/salaries, payment of  overtime,
dearness, compensatory, house rent and other allowances);
(b) remuneration for period not worked (i.e. basic wages), salaries and allowances payable for leave period, paid holidays, lay off payments and compensation for unemployment (if not paid from source other than employers);

 (c) bonus and ex-gratia payment paid both at  regular  and  less  frequent intervals (i.e. incentive bonus, and good attendance bonus, production bonuses, profit sharing bonus festival or yearend bonuses etc.).  It included lay off payments and compensation for unemployment except where such payments were made from trust or other special funds, set-up expressly for this purpose i.e. payments not made by the employer. It excludes employer痴 contribution to old age benefits and other social security charges, direct expenditure on maternity benefits and creches and other group benefit in kind and travelling and other expenditure incurred for business purposes and re-imbursed by the employer. The wages are expressed in terms of gross value i.e. before deduction for fines, damages, taxes, provident fund, employees state insurance contribution etc. Benefits in kind (perquisites) of individual nature are only included.

  (xi)   Bonus : Profit sharing bonus, festival bonus, year end bonuses and   all other bonuses and ex-gratia payments paid at less frequent intervals were covered by this term. 

 (xii) Provident and other funds : These included  employer痴 contribution to old age benefits like provident fund, pension, gratuity etc. and contributions to other social security benefits such as the Employees  State Insurance (ESI), compensation for work injuries and occupational diseases, provident fund linked insurance, retrenchment and lay-off benefits.

   (xiii) Workmen and staff welfare expenses : These included expenditure incurred by employer on the maternity benefits and crèches and other benefits such as supply of food, beverages, tobacco, clothing and group lodging at concessional rates and educational, cultural and recreational facilities and services and  grants to the trade unions and co-operative stores meant for the employees. All group benefits were included.

  (xiv)   Public sector : Public  sector  covered  establishments (a) wholly  owned  by Central, State or Local Government and (b) Joint sector units .

     (xv) Private sector : Private  sector  covered  establishments wholly owned  by  any private person or persons. 

1.13 Classification of Industries

  For the purpose of classification of industries, the National Industrial Classification (NIC 1987) had been followed. All the industrial units in the ASI frame were accordingly classified in their appropriate industry groups on the basis of the value of the principal product manufactured by them. The unit thus got classified in one and only one Industry group even though it might be manufacturing products belonging to different industries. The estimates for different aggregates presented at two or three digit level correspond to this classification. An extract from this classification  (showing industry groups alongwith their descriptions) and codes in so far as it pertains to ASI, is reproduced in Annexure II.
1.14       Processing and Tabulation of Data
 The scrutiny, processing and tabulation of the filled-in schedules was undertaken by the Labour Bureau.
1.15  Presentation of Data for Analysis
 Data presented in this report are (a) by States and (b) by Industries at two digit level of the NIC 1987. The aggregates for all the industries within each state make the basis for the state-wise statistics, whereas, the pooled aggregates for all the States within each industry form the basis for industry-wise statistics. The classification according to ownership is based on the demarcation between the public sector and private sector. 
1.16        Response Rate 
      The State-wise and industry-wise response rate of the working factories selected for the purpose of the survey are presented in the Tables1.1 (a) and 1.1 (b) respectively. While at the all India level the response rate from the reporting factories was 98.14 percent at the state level, it ranged between 96.10 percent in Orissa to 99.29 percent in Haryana. Industry-wise the response rate varied from 81.08 percent in industry group 95 (Recreational and cultural services) to 100.00 percent in industry group 40 (Electricity) and 43 (Solar energy).

Table 1.1 (a) 
Number of Working Factories and Percentage of Reporting  Factories 1997-98 (By States)
Table 1.1 (b) 
Number of Working Factories and Percentage of Reporting  Factories 1997-98 (By Industries)

CHAPTER-II
ABSENTEEISM

  Information regarding absenteeism among workers in an industry or an industrial establishment on account of reasons other than strikes, lockouts, lay-off, weekly rest or suspension provide a sound base for gauging the employee痴 morale, commitment and level of job satisfaction  which have a direct bearing on productivity. It is one of the indicators to monitor and evaluate various employee welfare programmes and labour policies. With this aim in view, statistics on absenteeism amongst the directly employed regular workers was collected as a part of the Annual Survey of Industries for the calendar year 1997. Absenteeism rate amongst these workers in an industry or a state were worked out as percentages of mandays lost on account  of absence to the mandays scheduled to work in the respective industry or  state. The salient results are analysed below.

2.1  Absenteeism by States

 State-wise absenteeism rates (separately for Public and Private Sectors) amongst the directly employed regular workers during the year 1996 and 1997 is presented in Table 2.1(a) and Exhibits 2.1 and 2.2 these tables reveals that the rate of absenteeism decreased from 11.0 percent in 1996 to 10.0 percent in 1997 at the all India level. During 1997, decrease in absenteeism rate was witnessed in all the states except Bihar, Karnataka, Orissa, Uttar Pradesh and Delhi.  During 1997, lowest rate of absenteeism was observed in Andhra Pradesh (6.7%)and the highest rate of absenteeism was observed in Delhi ( 15.0  percent). 

Exhibit 2.1
Absenteeism Rates Amongst Directly Employed Regular Worker 1997 (All India)

 Absenteeism rates in 1997 as compared to 1996 in private sector followed almost the same patterns in state-wise increase/decrease and even highest/lowest level of absenteeism rate.  In Public sector highest rate of absenteeism was reported in Delhi (19.7%) whereas the lowest rate of absenteeism was observed in Orissa (4.0%).  As compared to 1996, during 1997 seven states viz. Andhra Pradesh, Assam, Bihar, Karnataka, Kerala, Rajasthan and Uttar Pradesh witnessed increase in absenteeism rate in Public Sector.

Exhibit 2.2
States Reporting High Absenteeism Rates Amongst Directly Employed Regular Workers 1997

2.2  Absenteeism by Industries

 During 1997 the highest rate of absenteeism was observed in the industry group 31-Rubber, Plastic, Petroleum and Coal Products (11.8%) and the lowest in industry group 41 Gas and Steam (5.2%)  as shown in table 2.1 (b) and Exhibit 2.3.  Besides this industry, the rate of absenteeism was relatively high in the industry groups 27- 展ood and Wood Products, 22 俣Beverages, Tobacco and related products and 34 俣Metal Products and Parts in which absenteeism rate of 11.7, 11.6  and 11.3 percent respectively was observed. The Industry Groups 41-敵as &Steam, 20-溺anufacture of Food Products and 74-鉄torage and Warehousing Services, however, recorded low rate of absenteeism of 5.2, 6.9 and 7.8 percent respectively.
 In public sector highest and lowest rate of absenteeism were observed in Industry Groups 26-典extiles Products and 95-迭ecreational and cultural services (3.2%) respectively.  On the other hand, in private sector highest and lowest rates of absenteeism were recorded in Industry Groups  31-Rubber, Plastic, Petroleum and Coal Products (11.8%) and  41- Gas and Steam (5.2%) respectively.
 Out of 28 industry Groups on which information on Absenteeism is disseminated, it is observed that in private sector as well as in total (Public & Private), increase in absenteeism rate as compared to previous year (i.e. 1996) was recorded only in eight industry groups viz 20-擢ood Products other than Oil, Tea, etc, 23-鼎otten Textiles 30-鼎hemicals and chemicals products , 35-Machinery, machine tools and parts, 39- 迭epair of capital goods, 42- 展ater works & Supply , 43-鉄oalr Energy, and 96-撤ersonal services.  In the remaining Industry Groups, a decrease in absenteeism rate has been recorded.  On the other hand, in public sector increase in absenteeism rate as compared to 1996 was observed in 16 Industry Groups. 

Exhibit 2.3
Industries reporting High Absenteeism Rates Amongst Directly Employed Regular Workers in 1997

2.3  Absenteeism by Type of Ownership (State-wise)

 Data regarding percentage of factories reporting absenteeism in each state during 1997, classified by public and private sectors, are  presented  in   Table 2.2(a).  At  the  all India level, the percentage of factories reporting absenteeism  data  was   higher  ( 93.7 percent ) in public sector than in private sector (90.0 percent). Like-wise the  rate of absenteeism, as also depicted in Exhibit 2.4, was higher in the public sector (10.2 percent) than in the private sector (10.0 percent). In the public sector, the highest rate of absenteeism was reported from Delhi (19.7 percent) followed by Karnataka (15.2 percent) and Kerala (13.2 percent) and the lowest in Orissa (4.0 percent). The other states where the absenteeism rate was relatively low in the public sector were Punjab (5.4 percent), Assam (6.0 percent) and Madhya Pradesh (7.4 percent). In the private sector, Delhi reported the highest rate of absenteeism (15.0 percent) whereas lowest rate of absenteeism in this sector was observed in  Andhra Pradesh (6.7 percent). 
Exhibit 2.4
Absenteeism Rates Amongst Directly Employed Regular Workers by Sectors-1997 

2.4 Absenteeism by Type of Ownership (Industry-wise)

 The highest rate of absenteeism in the public sector was 16.8 percent in the industry group 26 -(Textile products) and the lowest 3.2 percent in industry group 95 (Recreational and Cultural Services). In the public sector, the rate of absenteeism was also found to be relatively high in industry groups 24 -(Wool, Silk and Man-made Fibre Textiles) and 39- (Repair & Capital Goods) where it was 15.0 percent and 14.9 percent.  As against this, the industry groups which reported relatively low rate of absenteeism in the public sector were 23 (Cotton textiles.), 74 ( Storage and warehousing services) and 27 (Wood and wood products)  where it was reported as 3.9, 4.6 and 4.8 percent respectively.
 In the private sector, the rate of absenteeism was observed to be highest at 16.0 percent in major industry group 42 (Water works and supply).  On the other hand, the industry group which reported the lowest rate of absenteeism in private sector was 41  (Gas and steam), where the percentage was 5.2 percent only.

Table 2.1 (a)
Absenteeism Rates Amongst Directly Employed Regular Workers During 1996 and 1997 (Public & Private Sector) (By States)
Table 2.1 (b)
Absenteeism Rates Amongst Directly Employed Regular Workers During 1996 and 1997 (Public & Private Sector) (By Industries)
Table 2.2 (a)
Absenteeism Rates Amongst Directly Employed Regular Workers
in Public and Private Sectors 1997  (By States)
Table 2.2 (b)
Absenteeism Rates Amongst Directly Employed Regular Workers
in Public and Private Sectors 1997  (By Industries)

CHAPTER-III
LABOUR TURNOVER

  Labour turnover is an important parameter indicating the over all health of any industry or an establishment in terms of wages, industrial relations, working conditions and other welfare facilities provided to the workers. Labour turnover measures the extent of change in the working force due to accession (total number of workers added to employment) and separation (severance of employment at the instance of workers or employers) during a particular period.  Annual rates of accession and separation are calculated as percentages of total accession or separation during the calendar  year to the average number of workers during that year. Statistics relating to labour turnover, showing the rate of accession and separation in respect of the directly employed regular workers as also the average number of these workers in employment and the percentage of factories reporting labour turnover during the year 1997, have been presented in Tables 3.1 (a) to 3.2 (b).

3.1  Labour Turnover by States

Annual  rates  of  accession  recorded  an increase from 24.2 percent in 1996 to 25.2 percent in 1997 as observed from Table 3.1 (a) and Exhibit 3.1. The rate of separation also showed an increase  from 22.5 percent in 1996 to 23.9 percent in 1997.
Exhibit 3.1
Annual Rates of Labour Turnover during 1996 and 1997

The lowest and highest  rate  of accession during the year 1997 at State level was observed as 2.0 percent in Assam and 52.3 percent  in Punjab, respectively.  The corresponding rates in the year 1996 were 5.0 percent in West Bengal  and 56.8 percent in Punjab. The lowest and highest rate  of separation during the year 1997 were 3.3 percent in Assam and  48.4 percent in Punjab, respectively. The corresponding rates for 1996 were 5.0 percent in West Bengal and 48.9 percent in Punjab.

3.2  Labour Turnover by Industries

  The Annual rate of accession during the year 1997 as revealed by Table 3.1(b) was the highest at 67.2 percent in the industry group 20 (Food products other than oil, tea etc.)  and the lowest at 3.1 percent, in the Industry Group 42 (Water works and supply).  The corresponding rates for the year 1996  ranged between 49.0 percent and 4.2 percent in the same Industry Groups respectively.

During 1997, Industry group 20 (Food products other than oil, tea etc.) also accounted for the highest  rate  of separation  i.e. 63.6 percent whereas the lowest separation rate was reported at 3.3 percent in Industry Group 42- 展ater works & Supply.  In 1996 the highest separation rate was again reported in industry group 20 (Food products other than oil, tea, etc.) and the lowest  in Industry Group 42-(Water works and supply) at 41.8 percent and 4.3 percent respectively.

3.3   Labour Turnover  by Type of Ownership   (State-Wise)

  Annual rates of labour turnover and  percentage of factories reporting labour turnover as also average number of workers in employment by sectors are shown in Table 3.2 (a) and Exhibit 3.2. The Table reveals that at all India level  90.2 percent industries reported labour turnover, the highest being 99.5 percent in Punjab  and Delhi, the lowest at  75.0 percent  in Bihar. The overall proportion of factories reporting labour turnover data was higher in public sector where 94.3 percent of the factories responded in comparison to 90.1 percent response from the factories in the private sector. Further, all  public sector factories in Assam, Bihar, Gujarat,  Haryana, Kerala and Delhi responded for labour turnover data.  In  public sector, Haryana recorded the  highest rate of accession  and separation at 77.6 and 156.0 percent, respectively.  The corresponding  highest labour turnover rates in the  private sector were reported by Punjab with 52.6 percent accession rate and 48.7  percent as the separation rate. In  public sector the lowest accession rate of 1.4 percent was reported in Orissa whereas the lowest separation rate of 0.8 percent was reported in Assam. The corresponding both lowest accession and separation rates in the private sector were reported in  Assam  itself, at 2.0 percent and 3.3 percent, respectively.

Exhibit 3.2
Annual Rates of Labour Turnover by Sectors during 1997

3.4 Labour Turnover by Type of Ownership  (Industry-Wise)

  Position of labour turnover in  major Industry Groups is given in Table 3.2 (b). Percentage of the factories reporting labour turnover data was cent percent in the Industry Groups 41 (Gas and steam), 42 (Water works and supply) and 91 (Sanitary services).  In the public sector,  the highest rate of accession and separation i.e. 116.4 percent and 97.1 percent were  reported in Industry Group 23 (Cotton textiles). The lowest accession and separation rates both at zero percent were reported in the Industry Group 95- (Recreational and Cultural Services).  In the private sector also,  the highest accession rate of  87.1 percent was reported  in Industry Group 91- (Sanitary services) whereas the highest separation rate of 63.4 percent were reported in the Industry Group 20 (Food products other than oil, tea etc.). The corresponding lowest accession rate of 4.7 percent and separation rate of 0.8 percent, in private sector, were reported in Industry Groups 95- (Recreational and Cultural Services) and 42 (Water works and supply), respectively. 

Table 3.1 (a)
Annual Rates of Labour Turnover Amongst Directly Employed
Regular Workers During 1996 and 1997  (By States)
Table 3.1 (b)
Annual Rates of Labour Turnover Amongst Directly Employed
Regular Workers During 1996 and 1997  (By Industries)
Table 3.2 (a)
Annual Rates of Labour Turnover Amongst Directly Employed Regular Workers
In Public and Private Sectors 1997 (By State)
Table 3.2 (b)
Annual Rates of Labour Turnover Amongst Directly Employed Regular Workers
In Public and Private Sectors 1997(By Industries)

CHAPTER IV
EMPLOYMENT

  Formulation of economic policy generally keeps in view its likely impact on the employment market. Data on salient features of labour force deployed in the organised manufacturing industries in the sample sector has been analysed in this chapter. These include analysis of employment by industries, employment by states, employment through contractors and mandays worked in public as well as in the private sectors.

4.1     Total Work Force

  The state-wise and industry-wise break-up of employment during the year 1997-98 has been presented in the tables 4.1(a) and 4.1(b), respectively. The employment figures include workers employed directly by the employer and workers engaged through  contractors. These data facilitate the calculation of the average daily employment of workers, which has been worked out as the ratio of mandays worked to the number of working days. The total labour force in the Sample Sector establishments in India has been estimated to be 2.87 million during the year 1997-98.

4.2 Employment by Type of Ownership

  Table 4.1 (a) and Exhibit 4.1 represent the employment in 1997-98 by sectors i.e. by type of ownership. At   the all India level, the private sector accounted for more than 97 percent of the total employment. At the state level also, the private sector was the major source of employment in all the states as its contribution ranged from a minimum of 93.23 percent of total employment in Rajasthan  to a maximum of 99.59 percent of total employment in Delhi. The contribution of the public sector, however, ranged from a minimum of  0.41 percent of total employment in Delhi to a maximum of 6.77 percent of total employment in  Rajasthan.

Exhibit 4.1
Percentage of Workers by Sectors 1997-98

At the industry level, as would be seen from Table 4.1(b), the private sector  made significant contribution in providing employment opportunities in all the industry groups, except Industry Group 42 (Water works and supply) which accounted for only 5.47 percent of the total employment in the group.  Except this group, share of private sector in each industry ranged from a minimum of 56.64 percent in Industry Group 91 (Sanitary Services) to a maximum of 100 percent in 43 Industry Group (Solar Energy).   On the other hand, employment share of the public sector in different industries ranged from zero percent in Industry Group 43 (Solar energy) to 94.53 percent in Industry Group 42-(Water works and Supply).  Out of 28 Industries Groups, on which data in the table is given, four Industry Groups viz.  41 (Gas and steam), 38 (Other manufacturing industries), 33 (Basic metal and alloys industries) and 29 (Leather and Fur Products) contributed less than 1.00 percent of the total employment in the groups.  Only Four Industry Groups viz. 96-(Personal Services), 39 (Repair of Capital Goods), 91-(Sanitary Services), 42-(Water works and Supply) in public sector contributed more than 10% of the total employment in respective groups. 

4.3    Employment by States

Major contributions to the employment in  1997-98 have been from the four  states which account for more than 53 percent of the total employment as revealed by Table 4.2 (a) and Exhibit 4.2. Delhi accounted for the highest employment (18.60 percent) followed by Kerala (13.70 percent),  Andhra Pradesh (10.40 percent), Tamil Nadu  (10.38 percent), Bihar (9.31 percent), Karnataka (6.66 percent), Orissa (5.49 percent), West Bengal (4.39 percent)  and Rajasthan (4.21 percent).  Minimum contribution in Employment was reported from Madhya Pradesh (1.01%).

Exhibit 4.2
Major Contribution States to Employment during 1997-98

4.4 Employment by Industries

Industry-wise contribution to Employment in Sample Sector during 1997-98 is given in Table 4.2(b) and Exhibit 4.3.  It is observed that out of 28 industry groups, nine industry groups alone accounted for about 68 percent of the  total employment in the Sample Sector in the country.  Amongst these, the industry group 20 (Food products other than oil, tea etc.) accounted for  11.50 percent of the total employment followed by industry groups 23 (Cotton textiles) 10.86 percent, 30 (Chemicals and chemical products) 8.69 percent, 21 (Other food products etc.)  7.90 percent, 32 (Non-metallic mineral products) 7.71 percent, 26 (Textile products including wearing apparel ) 5.81 percent, 35 (Machinery, machine tools and parts) 5.63 percent, 33 (Basic metal and alloys industries) 5.45 percent and 34  (Metal products and parts except machinery and equipment) 4.72 percent. In the remaining industry groups, it ranged between a maximum of 4.47 percent in the industry group. 22 (Beverages, tobacco and related products) to a minimum of 0.01 percent in both the industry groups of 43 (Solar energy) and 91(Sanitary services).

Exhibit 4.3
Contribution of Major Group of Industries in Employment during 1997-98

4.5 State-wise and Industry-wise factories reporting employment contract workers .

About 18 percent of the reporting factories were employing contract workers as is revealed by Table 4.3(a).  State-wise, the percentage of factories employing contract workers ranged between the highest of 32.4 percent in Haryana to the lowest of 3.2 percent in Delhi. The industry-wise position is depicted in Table 4.3(b) which shows that the deployment of contract workers was highest at 49.2 percent of the reporting factories in the industry group 74 (Storage and warehousing services) followed by industry group 20 ( Food products other than oil, tea etc.) where 39.3 percent of the factories reported employment of contract labour. The factories in the industry  group  95 (Recreational and cultural services) and 42 ( Water works and supply), however, did not report employment of any contract labour. 

4.6 State-wise and Industry-wise contract workers employed

Tables  4.4(a),  4.4(b) and Exhibit 4.4  show the percentages of workers employed through contractors in the public and private sectors. From these tables, it is observed that about 18 percent of the total work force of about  2.87  million in the Sample Sector was constituted by the contract labour. The practice of employing contract labour was more  prevalent in the private sector where the contract labour formed  18.2 percent of the total work force as compared to the public sector where it was  about 14.8  percent.

Exhibit 4.4
Employment of Contract Labour by Sectors during 1997-98

Percentage employment of contract workers was the highest in Haryana (37.4 percent) followed by Bihar (34.1 percent), Andhara Pradesh (25.9 percent) , Madhya Pradesh  (25.0 percent) and  Gujarat (24.8 percent) whereas the lowest 1.6 percent of workers were employed on contract basis in Delhi. Industry group 74 (Storage and ware-housing services)  reported deployment of highest proportion of contract workers to the extent of 51.2 percent followed by 33.8 percent both in the industry groups 43 (Solar energy) & 20-(Food Products ), 33.0 percent in the industry group 32 (Non-metallic  mineral products), 23.5 percent in the industry group 22 (Beverages, tobacco and related products) and 23.4 percent in the industry group 91 (Sanitary services). In the remaining industries, it varied between a maximum of 21.7 percent in the industry group 33 (Basic metal and alloys industries)  to a minimum of  3.4 percent in the industry groups 39 (Repair of Capital goods).  Employment of contract labour among different industry groups in private sector followed almost the same pattern as that of total of Public & Private Sectors together.  In public sector, a maximum of 59.1% of workers were employed on contract basis in Industry Group 74-鉄torage and Warehouse Services followed by industry group 32-(Non-metallic mineral products), employing 52.8% workers on contract basis, whereas out of 28 groups, atleast eight Industry Groups employed negligible/nil percentage of contract workers.

4.7   Mandays Worked

Sector-wise  picture  of the total number of mandays worked in public and private sector and the percentage of mandays worked by contract workers in 1997-98 is presented in Table 4.5 (a) and 4.5(b). It is observed that the percentage share of mandays worked by contract workers in  public sector,  private sector and in  total of both the sectors to the total of mandays worked in  respective sector was 15.3%, 17.4% and 17.3% respectively. 

Among states, percentage of mandays worked by contract workers was highest in Haryana (32.5%) followed by Bihar (27.4%) whereas the minimum of such percentage was reported in Delhi (1.6%) proceeded by Kerala(2.4%).

Among industries, highest and lowest percentage of mandays worked by contract workers was recorded in industry group 20-(Food Products) at 33.7% and 39-(Repair of capital goods) at 3.3% respectively.

Table 4.1 (a)
Sector-wise and State - wise Percentage of Workers during 1997-98 ( By States)
Table 4.1 (b)
Sector-wise and State - wise Percentage of Workers during 1997-98 ( By Industries)
Table 4.2 (a)
Contribution of States to Employment in Sample Sector during  1997-98 (By States)
Table 4.2 (b)
Contribution of States to Employment in Sample Sector during  1997-98 (By Industries)
Table 4.3 (a)
Percentage of Factories Reporting Contract Labour during 1997-98 (By State)
Table 4.3 (b)
Percentage of Factories Reporting Contract Labour during 1997-98 (By Industries)
Table 4.4 (a)
Total Number of Workers and Percentage of Workers Employed Through 
Contractor in Public and Private Sectors  during 1997-98  (By States)
Table 4.4 (b)
Total Number of Workers and Percentage of Workers Employed Through 
Contractor in Public and Private Sectors  during 1997-98  (By Industries)
Table No.4.5 (a)
Total Number of Mandays Worked by All Workers and Percentage of Mandays
Worked by Contract Workers  during 1997-98 ( By States )
Table No.4.5 (b)
Total Number of Mandays Worked by All Workers and Percentage of Mandays
Worked by Contract Workers  during 1997-98 ( By Industries )

CHAPTER -V
LABOUR COST

                       Labour cost is one of the most significant factors for studying the economic viability of any industrial activity for an  entrepreneur before venturing into the industrial field. It helps in (a) reliable costing, (b) wage fixation on a realistic basis, (c) logical collective bargaining, (d) evolving implementation and evaluation of welfare measures, (e) study of trends over a period of time, (f) location of industry and the like. Labour Cost data is important for policy formulation at the national and regional levels.  With this end in view, data on various aspects of  labour cost is collected every year which inter-alia include the expenses incurred by the industrial establishments on wages/salaries, bonus, contributions to provident & other funds and staff welfare in respect of workers employed directly, through contractors, supervisory, managerial and  other employees.  The aggregate of  these components gives the labour cost. When used in conjunction with the number of mandays worked, this gives the average labour cost per manday worked.
5.1  Average labour cost by States
  A comparative study of the average labour cost per manday worked by  states for  the years 1996-97 and 1997-98 has been given in Table 5.1 (a) and Exhibit 5.1.  At the all India level, average labour cost has shown a significant increase of 12.94 percent from Rs. 115.89 in 1996-97 to Rs. 130.88 in 1997-98.  The Labour Cost recorded an increasing trend almost in all the states except Assam and Kerala during 1997-98.  Highest increase in average  Labour Cost was recorded in West Bengal (28.17%) whereas the highest decrease in average Labour Cost was reported in Assam (-6.11%) In absolute terms, the average labour cost in 1997-98 was the highest at Rs. 196.90 in Maharashtra and the lowest at Rs.61.42 in Assam.
 

Exhibit 5.1
Average Labour Cost per Manday Worked during 1997-98
5.2  Average Labour Cost by Industries

   During the year 1997-98, as compared to 1996-97, an upward trend was registered in the labour cost in almost all the industries except five industry groups viz. 25 (Jute and other vegetable fibre textiles, except cotton), 39 (Repair of capital goods), 41 (Gas and steam), 91 (Sanitary services) and 95 (Recreational and cultural services) where it decreased by  (-)26.97 percent, (-)6.42 percent, (-)13.57 percent, (-)47.21 percent and (-)46.00 percent, respectively, as depicted by Table 5.1 (b).  The increase in labour cost was the highest at 50.04 percent in the industry group 96 (Personal services) whereas the lowest increase was observed in the industry group 30 (Chemicals and chemical products) at 2.43 percent. The average labour cost was the highest Rs. 206.28 in industry group 35-(Machinery, Machine Tools and Parts) and the lowest (Rs.70.07) in the industry group 25 (Jute and other vegetable fibre textiles, except cotton). 

5.3  Composition of Labour Cost by Components
5.3.1    By States
                   The composition of labour cost by its components viz. (i) Salaries/wages (ii) bonus (iii) contribution to provident & other funds and (iv) workmen & staff welfare expenses in the public and private sectors in each state has been depicted in Table 5.2(a).

                    Salaries/wages accounted for almost four-fifth of  the labour cost at the all India level i.e. 79.7 percent, as also shown in Exhibit 5.2.  The remaining one fifth of the labour cost was constituted by contribution to provident & other funds (8.2 percent), bonus (6.2 percent) and workmen & staff welfare expenses (5.9 percent). Sector-wise, the salaries/wages constituted higher proportion of labour cost in public sector (81.0 percent) than in private sector (79.6 percent). In the matter of payment of bonus, contribution to provident & other funds and staff welfare expenses, private sector took lead over the public sector where the ratios of expenses on all these counts were higher. 

Exhibit 5.2
Composition of Labour Cost by Components during 1997-98
        Among states,  share of salaries/wages in the labour cost varied from a maximum of 84.9 percent in Bihar to a minimum of 74.6 percent in West Bengal. As regard payment of bonus, the units in the state of Kerala where this component accounted  for 10.0 percent of the labour cost were ahead of  other states whereas in the remaining states it ranged between 8.6 percent in Assam to 4.2 percent in Andhra Pradesh. The percentage contributions of provident fund & other funds to the total labour cost was the highest in Delhi (11.9 percent) and the lowest in Andhara Pradesh (6.1 percent). Workmen & staff welfare expenses ranged between 8.1 percent in  Karnataka  to 2.5 percent in Punjab.
5.3.2   By Industries
       Percentage of salaries/wages to the labour cost at the industry level was the highest at 91.3  percent in the industry group 91 (Sanitary services) and the lowest at 71.2 percent in the industry group 43 (Solar energy) as revealed by Table 5.2(b). The share of bonus was the highest at 8.4 percent in the industry group 29 (Leather & fur products) and the lowest 4.2 percent in the industry group 43 (Solar energy). The percentage of expenditure on provident fund & other funds was reported to be highest at 9.8 percent in two industry groups viz. 35 (Machinery, machine tools and parts) and 97 (Repair services) and lowest at 2.3 percent in industry group 91 (Sanitary services). Further, the percentage of workman & staff welfare expenses was noticed to be highest at 17.0 percent in the industry group 43 (Solar energy) and lowest at 0.3 percent in industry groups 42 (Water works and supply).
5.3.3    By Ownership
   Composition of labour cost by components and ownership i.e. by public and private sectors, has been presented in Tables 5.2 (a) and 5.2 (b). At all-India level, average labour cost in the public sector and private sector was Rs.166.41  and Rs. 129.79, respectively. Among various components, the share of salary/wages was higher in public sector than the private sector at all-India level. Further, the average labour cost per manday was higher in public sector than private sector almost in all the states except five states viz. Gujrat, Haryana, Karnataka, Maharashtra and Orissa. By industries,  average labour cost was lower in public sector than the private sector in the industries groups  23 (Cotton textiles), 24 (Wool, silk and synthetic fibre textiles), 32 (Non metallic mineral products) 33 (Basic metal and alloys industries),  34 (Metal products and parts), 35 (Machinery, machine tools and parts), 41 (Gas and steam) 95 (Recreational and cultural services), 96 (Personal services) and 97 (Repair services), whereas in the remaining industry groups, it was higher than private sector in the respective groups.
5.4 Bonus
Information regarding payment of bonus, by bonus paying units has been presented in Tables 5.3 (a), 5.3(b), 5.4(a) , 5.4(b) and Exhibit 5.3.
Exhibit 5.3
Percentage of Factories Reporting Payment of Bonus by Sectors during 1997-98

 As revealed by Table 5.3(a),  average amount of bonus, ex-gratia etc.    Paid per 1000 mandays worked registered an increase from Rs.8965 in 1996-97  to Rs.9659 in 1997-98 with the highest of Rs.13891 in Delhi and the lowest of Rs. 5688 in Andhara Pradesh.  Average amount of bonus, ex-gratia etc. paid per Rs.1000 earned as salaries /wages etc. registered decrease in 1997-98 in  most of the all states as compared to 1996-97 except Andhra Pradesh, Assam, Kerala, Punjab, Tamil Nadu, West Bengal and Delhi. 

Industry-wise average amount of bonus paid per 1000 mandays worked in 1997-98 as revealed by Table 5.3(b) was the highest at Rs.15700 in the industry group 95 (Recreational and cultural services) and the lowest at Rs.5748 in the industry group 25 (Jute and other vegetable fibre textiles, except cotton).  Average amount of  bonus paid per Rs. 1000 earned as salaries/wages etc. was the highest  at Rs. 121 in  the industry group  29 (Leather and fur products) and the lowest at Rs. 61 in the industry group 96 (Personal Services).  Further, average amount of bonus paid per Rs. 1000 earned as wages/salaries etc. increased in 1997-98 in  the industry groups 20 (Food products other than oil, tea etc.), 21 (Other food products), 23 (Cotton textiles), 34 (Metal products and parts)  37 (Transport equipment and parts), 39 (Repair of capital goods), 42 (Water works and supply), 43(solar energy), 74  (Storage and warehousing services), 95 (Recreational and cultural services) and 97 (Repair services), whereas a decrease was witnessed in the remaining industry groups.

State-wise and industry-wise payment of bonus by ownership of factories has been  shown in  tables 5.4 (a) and 5.4 (b) respectively. At the all India level, about 74 percent  of  the   total  factories  reported   payment  of  bonus  during  the  year 1997-98.  In public sector, the highest percentage of factories reporting payment of bonus was in Delhi (cent percent) whereas the lowest percentage was reported in Haryana (30.1%).  In the private sector, ratio of such factories ranged between 90.7 percent in West Bengal to 47.2 percent in Bihar. 

Industry-wise number  of factories reporting payment of bonus in the public sector was cent percent in  five industry groups viz.  25 (Jute and other vegetable fibre textiles, except cotton), 33 ( Basic metal and alloys industries), 38 (Other manufacturing industries), 95 (Recreational and cultural services) and 97 (Repair services).  In the remaining industries, it ranged between 97.2 percent in the industry group 39 (Repair of capital goods) to 47.9 percent in the industry group  30 (Chemicals and chemical products).  However, no bonus was paid in units in 41 (Gas and steam) industry group.  On the other hand, in private sector,  payment of bonus was cent percent in the industry group 42 (Water works and supply). In the remaining industries, it ranged between 92.6 percent in industry group 95 (Recreational and cultural services) and 33.3 percent in the industry group 91 (Sanitary services). 

Table 5.1 (a)
Average Labour Cost Per Manday Worked During 1997-98(By States)
Table 5.1 (b)
Average Labour Cost Per Manday Worked During 1997-98(By Industries)
Table 5.2 (a)
Labour Cost by Components in Public and Private Sectors  During 1997-98 ( By States )
Table 5.2 (b)
Labour Cost by Components in Public and Private Sectors  During 1997-98 ( By Industries )
Table No. 5.3 (a)
Amount of Bonus paid by  Bonus Paying Units during 1996-97 and 1997-98 ( By States )
Table No. 5.3 (b)
Amount of Bonus paid by  Bonus Paying Units during 1996-97 and 1997-98 ( By Industries )
Table  5.4 (a) 
Amount of Bonus Paid in Public and Private Sectors  1997-98( By States )
Table  5.4 (b) 
Amount of Bonus Paid in Public and Private Sectors  1997-98( By Industries)

CHAPTER-VI
IMPORTANT  FINDINGS

Under Annual Survey of Industries (ASI) Labour Bureau is disseminating data collected under Labour Part of ASI schedule (Part-II), which includes data on Absenteeism, Labour Turnover, Labour Employment, Mandays worked and various components of Labour Cost.  Under ASI, all establishments registered under section 2m(i) and 2m(ii) of Factories Act, 1948 and BIdi & Cigar workers (Conditions of employment) Act, 1966 are covered.  From 1976-77 round of ASI, data is collected and disseminated under two scheme viz. (i) Census Sector and (ii) Sample Sector, detailed description of which is given in chapter-I.  From this round of ASI (i.e. 1997-98),  coverage of both these sectors have been revised.  As a result of which units employing below 200 workers are to be covered Sample Sector.  In previous rounds of ASI, coverage of Sample Sector was restricted to units employing less than 100 workers only.

 Important findings of ASI  1997-98 (Sample Sector) are given below:- 

1. Absenteeism 

  During the year 1997 rate of absenteeism at the all India level  decreased  to 10.0 percent in 1997 from 11.0 percent in 1996.  The highest rate of absenteeism was reported in Delhi at 15.0 percent whereas  the lowest rate in Andhra Pradesh at 6.7 percent.  At industry level, the highest rate of absenteeism at 11.8 percent was reported in the industry group  31 (Rubber, Plastic, Petroleum & Coal Products) and the lowest of 5.2 percent in the industry group  41(Gas and steam).   The percentage of factories reporting absenteeism data to total number of reporting factories in the public and private sectors at the all India level was 93.7percent and 90.0 percent respectively, whereas, the rate of absenteeism in these sectors was 10.2 percent and 10.0 percent, respectively. (Chapter II)

2. Labour Turnover

  The rate of accession showed an upward trend from 24.2 percent to 25.2 percent and rate of separation also showed a increase from 22.5 percent in 1996 to 23.9 percent in 1997. Percentage of annual rate of labour turnover, both of accession and separation, were highest in Punjab at 52.3 and 48.4 percent, respectively and the lowest in Assam 2.0% and 3.3 percent, respectively. At the industry level, the highest accession and separation rates were reported in the industry group 20 (Food products other than oil, tea etc.) at 67.2 and 63.6 percent, respectively and the lowest in the industry group 42 (Water works & Supply) 3.1 and 3.3 percent respectively. (Chapter III)

3.  Employment

The total employment in the Sample Sector establishments in India has been estimated at 2.87 million in 1997-98. The private sector accounted for the major portion i.e., 97 percent of the employment.  In all the 16 states, contribution of private sector was more than 93 percent of employment at state level. However, the highest percentage of employment in private sector was 99.59 in Delhi and lowest as 93.23 in Rajasthan. Four states viz. Delhi, Kerala, Andhra Pradesh and Tamil Nadu accounted for more than 53 percent of the total employment at all India level. 

Industry-wise,  nine industry groups alone accounted  for about 68 percent of the total work force. Incidence of employment of contract labour was reported by 17.9 percent of the establishments at all India level, out of which highest and lowest percentage of factories employing contract labour was reported in Haryana and Delhi at 32.4% and 3.2%, respectively.  About 49.2 percent of the factories in the  industry  group  74  (Storage  and  warehousing  services) reported  employment of contract workers,  followed by 39.3 percent in the industry group 20  (Food  products  other  than  oil, tea  etc.).  Industry groups 42 (Water works and supply) and 95 (Recreational and cultural services) did not employ any contract worker. About 18 percent of the total work force in the sample sector establishments was constituted by the contract workers.  Incidence of contract labour in the factories in the private sector was higher (18.2%) than those in the public sector  (14.8%). The percentage of mandays worked by contract workers constituted  17.3 percent of the mandays worked by all workers.  (Chapter IV) 

4. Labour Cost

  The average labour cost per manday worked recorded an increase of 12.94 percent from Rs. 115.89 in 1996-97 to Rs. 130.88 in 1997-98. The average labour cost recorded an increasing trend in all the states except Assam and Kerala. However, highest average Labour Cost per mandays worked was reported in Maharashtra (Rs.196.90) and the lowest in Assam (Rs.61.42). Like-wise, out of 28 industry groups, 23 industry groups reported increase in average Labour Cost whereas in the remaining five  Industry group witnessed decrease   The average Labour Cost was the highest (Rs. 206.28) in the industry group 35 (Machinery, Machine Tools & Parts) and the lowest (Rs.70.07) in the industry group 25 (Jute and other vegetable fibre textiles, except cotton). 

  Salaries/Wages contributed the major proportion i.e. 79.7 percent of the labour cost. Provident fund & other funds, bonus and workmen & staff welfare expenses accounted for 8.2, 6.2 and 5.9 percent of the labour cost, respectively. Payment of bonus was reported by almost 74  percent of the factories. Bonus, ex-gratia etc.  paid per 1000 mandays worked increased from Rs. 8965  in 1996-97 to Rs. 9659 in 1997-98 (Chapter V). 
 

Trend Tables
Table No. T-1(a)
Annual Rates of Absenteeism Amongst Directly Employed regular Workers since 1992-93(By States)
Table No. T-1(b)
Annual Rates of Absenteeism Amongst Directly Employed regular Workers since 1992-93(By Industries)
Table T-2(a)
Total Number of Workers Employed Year-wise since 1992-93(By States)
Table T-2(b)
Total Number of Workers Employed Year-wise since 1992-93(By Industries)
Table T-3(a)
Annual Rates of Labour Turnover amongst Directly Employed Regular workers since1992-93 (By States)
Table T-3(b)
Annual Rates of Labour Turnover amongst Directly Employed Regular workers since1992-93 (By Industries)
Table T-4(a)
Average labour Cost per Manday Worked Year-Wise since1992-93 (By States)
Table T-4(b)
Average labour Cost per Manday Worked Year-Wise since1992-93 (By Industries)
ACRONYMS

ASI  - Annual Survey of Industries
FOD  - Field Operations Division
NSSO  - National Sample Survey Organisation
CSO  - Central Statistical Organisation
NBO  - National Buildings Organisation
NIC-87 - National Industrial Classification, 1987
CE  - Complete Enumeration
S1  - Segment-1
S2  - Segment-2
ESI  - Employees State Insurance
GVA  -
NVA  -
 

ANNEXURE III

LIST OF OFFICIALS ASSOCIATED WITH THE REPORT

A.S.I.  Division

Shri Ram Krishna, Joint Director
Shri V.K Attri, Deputy Director
Shri Jagir Singh, Assistant Director
Shri V.K. Maheshwari,  Investigator Grade-I
Shri P.R. Sharma,  Investigator Grade-II
Smt. Vir Bala Ahluwalia, Investigator Grade-II
Sh. Rajinder Singh,  Investigator Grade-II
Smt. Asha Kak, Investigator grade-II
Smt. Nirmal Rajput, Investigator Grade-II
Shri Shiv Ram, Investigator Grade-II
Smt. Davinder Kaur,  Investigator Grade-II
Smt. Resham Kaur,  Investigator Grade-II
Shri R.K.Singh, Investigator Grade-II
Shri Vijay Kumar, Investigator Grade-II
Shri Saukar Singh, Investigator Grade-II
Smt. Dolly sood, Investigator Grade-II
Smt. Om Kalia, Investigator Grade-II
Smt. Usha Bharti, Computor
Smt. Madhu Sharma, Computor

COMPUTER DIVISION

Shri A.S. Tanda,  E.D.P.Manager 
Shri Dilbag Singh, DEO Grade-D
Shri Rajesh Kumar, DEO Grade-B
Shri Raj Kumar, DEO Grade-D

GRAPHS

Shri Saukar Singh, Junior Investigator

PRINTING UNIT

Shri Hans Raj, Investigator Grade-II

TYPING WORK

Shri. Vipin Kumar Rana, Steno Grade 泥