Application of Factories Act in an Organization

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2nd Assignment Application of Factories Act in an Organization

ALLAMA I

QBAL OPEN UNIVERSITY

(Department of Business Administration)

Assignment # 2

Business and Labor Acts (5547)

TOPIC: APPLICATION OF FACTORIES ACT IN

AN ORGANIZATION

Submitted to: Sir Jahanger

Submitted by: Ishtiaq Ahmed (0333-6824303)

AH-526270

1




ACKNOWLEDGEME

NT

All praises to Almighty Allah, the most Gracious, the most Beneficent and

the most Merciful, who enabled me to complete this assignment.

I feel great pleasure in expressing my since gratitude to my teacher, for

his guidance and support for providing me an opportunity to complete myProject.

My special thanks and acknowledgments to Mr. Zeeshan for providing

me all relative information, guidance and support to compile the practical

study at Kohinoor Mill Limited.

I will keep my hopes alive for the success of given task to submit this

report to my honorable teacher Sir Asif Iqbal, whose guidance; support

and encouragement enable me to complete this assignment.

2




EXECUTIVE SUMMA

RY

“K.M.L has grown from a cotton export house into the premier

business group of Pakistan with 5 listed companies, concentrating on 3

core businesses; Textiles, Cement and Power Generation. Today, K.M.L is

considered to be at par with multinationals operating locally in terms of

its quality products and management skills.

I recently have done my Research at Kohinoor Mills Limited, in

which I got training from its H.R Department. The Research basically

revolved around the employee relation with the organization. The system,

the style of working & the commitment of the employees in KML is really

an example. The difference between the success & failure is doing things

right and doing things nearly right, & KML has always tried for success &

that is why it is known to be one of the leading organizations in Pakistan.

Irrespective of all these positive points of Kohinoor Mills Limited, I have

noticed a few areas where the improvement can really increase theefficiency of KML. I also mentioned about the Textile industry in Pakistan

and vision of its industry. Then I have done a detailed SWOT Analysis.

Then I have discussed about my learning in the whole Research that is all

about the Textile Terminologies and process of the human behavior. I

have made it possible to write each and every thing that I have learnt

there.

3




Table of Contents Page No

Title page

Acknowledgement 02

Executive Summary 03

Table of contents 04

Introduction to the issue 05

Practical study of organization 26

Practical study of organization with respect to the

issue

29

SWOT analysis 33

Conclusion 36

Recommendations 37

References 38

Introduction to Topic

4




Act:

Act is a system of rules and guidelines which are enforced through social

institutions to govern behavior, wherever possible. It shapes politics,

economics and society in numerous ways a

nd serves as a social mediator

of relations between people. Contract Act regulates everything from

buying a bus ticket to trading on derivatives markets. Property Act

defines rights and obligations related to the transfer and title of personal

and real property. Trust Act applies to assets held for investment and

financial security, while tort Act allows claims for compensation if a

person's rights or property are harmed. If the harm is criminalized in

legislation, criminal Act offers means by which the state can prosecute

the perpetrator. Constitutional Act provides a framework for the creation

of Act, the protection of human rights and the election of political

representatives. Administrative Act is used to review the decisions of

government agencies, while international Act governs affairs between

sovereign states in Activities ranging from trade to environmental

regulation or military Action. Writing in 350 BC, the Greek philosopher

Aristotle declared, "The rule of Act is better than the rule of any

individual."

Factory:

Section 175 of the Act defines "Factory" as premises in which persons are

employed in manual labor in any process for or incidental to:

Making any article or part of any article;

Altering, repairing, ornamenting, finishing, cleaning, or washing,

or breaking up or demolition of any article;

Adapting any article for sale;

Slaughtering of cattle, sheep, swine, goats, horses, asses or

mules; or

In some circumstances, confinement of such animals awaiting

slaughter at other premises.

The Act also defines certain other specific premises as "Factories" such as

laundries and printing works (s. 175(2)).

5

http://en.wikipedia.org/wiki/System

http://en.wikipedia.org/wiki/Institution

http://en.wikipedia.org/wiki/Politics

http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Society

http://en.wikipedia.org/wiki/Contract_law

http://en.wikipedia.org/wiki/Derivative_(finance)

http://en.wikipedia.org/wiki/Property_law

http://en.wikipedia.org/wiki/Personal_property

http://en.wikipedia.org/wiki/Real_property

http://en.wikipedia.org/wiki/Trust_law

http://en.wikipedia.org/wiki/Tort

http://en.wikipedia.org/wiki/Harm_principle

http://en.wikipedia.org/wiki/Criminal_law

http://en.wikipedia.org/wiki/Constitutional_law

http://en.wikipedia.org/wiki/Human_rights

http://en.wikipedia.org/wiki/Administrative_law

http://en.wikipedia.org/wiki/International_law

http://en.wikipedia.org/wiki/Sovereign_state

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Ancient_Greece

http://en.wikipedia.org/wiki/Aristotle

http://en.wikipedia.org/wiki/Rule_of_law

http://en.wikipedia.org/wiki/Manual_labour

http://en.wikipedia.org/wiki/Animal_slaughter

http://en.wikipedia.org/wiki/Cattle

http://en.wikipedia.org/wiki/Sheep

http://en.wikipedia.org/wiki/Swine

http://en.wikipedia.org/wiki/Goat

http://en.wikipedia.org/wiki/Horse

http://en.wikipedia.org/wiki/Ass_(animal)

http://en.wikipedia.org/wiki/Mule

http://en.wikipedia.org/wiki/Laundry

http://en.wikipedia.org/wiki/Printing

http://en.wikipedia.org/wiki/System

http://en.wikipedia.org/wiki/Institution

http://en.wikipedia.org/wiki/Politics

http://en.wikipedia.org/wiki/Economics

http://en.wikipedia.org/wiki/Society

http://en.wikipedia.org/wiki/Contract_law

http://en.wikipedia.org/wiki/Derivative_(finance)

http://en.wikipedia.org/wiki/Property_law

http://en.wikipedia.org/wiki/Personal_property

http://en.wikipedia.org/wiki/Real_property

http://en.wikipedia.org/wiki/Trust_law

http://en.wikipedia.org/wiki/Tort

http://en.wikipedia.org/wiki/Harm_principle

http://en.wikipedia.org/wiki/Criminal_law

http://en.wikipedia.org/wiki/Constitutional_law

http://en.wikipedia.org/wiki/Human_rights

http://en.wikipedia.org/wiki/Administrative_law

http://en.wikipedia.org/wiki/International_law

http://en.wikipedia.org/wiki/Sovereign_state

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Ancient_Greece

http://en.wikipedia.org/wiki/Aristotle

http://en.wikipedia.org/wiki/Rule_of_law

http://en.wikipedia.org/wiki/Manual_labour

http://en.wikipedia.org/wiki/Animal_slaughter

http://en.wikipedia.org/wiki/Cattle

http://en.wikipedia.org/wiki/Sheep

http://en.wikipedia.org/wiki/Swine

http://en.wikipedia.org/wiki/Goat

http://en.wikipedia.org/wiki/Horse

http://en.wikipedia.org/wiki/Ass_(animal)

http://en.wikipedia.org/wiki/Mule

http://en.wikipedia.org/wiki/Laundry

http://en.wikipedia.org/wiki/Printing




Factories Act 1934

Introduction:

The Factories Act 1934 was promulgated to safeguard theworkers against exploitation by t

he industrialist. The Act

aims at regulation the working conditions of workers in

Factories. The Act provide for the appointment of necessary

staff for the administration of the Act and lays down the law

to regulate the conditions of health and safety of workers,

their working hours, special provisions relating to children,

adolescent and women workers. The Act provides for

penalties for infringement of the law.

Adolescent. Section 2(a)

"Adolescent" means a person who has completed his fifteenth but has not

completed his seventeenth year.

Adult. Section 2(b)

“Adult" means a person who has completed his seventeenth year.

Child. Section 2(c)

"Child" means a person who has not completed his fifteenth year.

Day. Section 2(d)

"Day" means a period of twenty-four hours beginning at mid-night.

Week. Section 2(e)

"Week" means a period of seven days beginning at mid-night on

Saturday night.

Power. Section 2(f)

"Power" means electric energy, and any other form of energy which is

mechanically transmitted and is not generated by human or animal

agency.

Manufacturing process. Section 2(g)

6




"Manufacturing process" means any process

(i) for making, altering, repairing, ornamenting, finishing or packing, or

otherwise treating any article or substance with a view to its use, sale,

transport, delivery or disposal, or

(ii) For pumping oil, water or sewage, or

(iii) For generating, transforming or

transmitting power.

Worker. Section 2(h)

"worker" means a person employed directly or through an agency

whether for wages or not in any manufacturing process, or in cleaning

any part of the machinery or premises used for a manufacturing process,or in any other kind of work whatsoever, incidental to or connected with

the subject of the manufacturing process, but does not include any

person solely employed in a clerical capacity in any room or place where

no manufacturing process is being carried on.

Factory. Section 2(j)

"Factory" means any premises, including the precincts thereof, whereon

ten or more workers are working, or were working on any day of thepreceding twelve months, and in any part of which a manufacturing

process is being carried on or is ordinarily carried on with or without the

aid of power, but does not include a mine, subject to the operation of the

Mines Act, 1923.

Machinery. Section 2(k)

"Machinery" includes all plant whereby power is generated, transformed,

transmitted or applied.

Occupier. Section 2(I)

"Occupier" of a Factory means the person who has ultimate control over

the affairs of the Factory:

Provided that where the affairs of a Factory are entrusted to a managing

agent, such agent shall be deemed to be the occupier of the Factory.

7




Relay and shift. Section 2(m)

where work of the same kind is carried out by two or more sets of

workers working during different periods of the day, each of such sets is

called a "relay" and the period or periods for which it works is called a"shift".

Seasonal Factories. Section 4

(1) For the purposes of this Act, a

Factory, which is exclusively engaged

in one or more of the following manufacturing processes, namely, cotton

ginning, cotton or cotton jute pressing, the decortications of groundnuts,

the manufacture of coffee indigo, lac, rubber, sugar (including gur) or tea

or any of the aforesaid processes, is a seasonal Factory :

Provided that the Provincial Government may, by notification in the

Official Gazette, declare any such Factory in which manufacturing

processes are ordinarily carried on for more than one hundred and eighty

working days in the year, not to be a seasonal Factory for the purposes of

this Act.

(2) The Provincial Government may, by notification in the Official

Gazette, declare any specified Factory in which manufacturing processes

are ordinarily carried on for more than one hundred and eighty working

days in the year and cannot be carried on except during particular season

or at times dependent on the irregular Action of natural forces, to be a

seasonal Factory for the purposes of this Act.

The Inspecting Staff

Inspectors. Section 10(1)

The Provincial Government may, by notification in the Official Gazette,

appoint such persons as it thinks fit to be Inspectors for the purposes of

this Act within such local limits as it may assign to them respectively.

Chief Inspectors. Section 10(2)

The Provincial Government may, by notification as aforesaid, appoint any

person to be a Chief Inspector, who shall, in addition to the powers

8




conferred on a Chief Inspector under this Act, exercise the powers of an

Inspector throughout the Province.

Disqualification for the Appointment. 10(3)

No person shall be appointed to be an Ins

pector under sub-section (1) or

a Chief Inspector under sub-section (2) or having been so appointed shall

continue to hold office, which is or becomes directly or indirectly

interested in a Factory or in any process or business carried on therein or

in any patent or machinery connected therewith.

District Magistrate an Inspector. Section 10(4)

Every District Magistrate shall be an Inspector for his district.

Additional Inspectors. Section 10(5)

The Provincial Government may also, by notification as aforesaid, appoint

such public officers as it thinks fit to be additional Inspectors for all or any

of the purposes of the Act, within such local limits as it may assign to

them respectively.

Certifying surgeons. Section 12

(1) The Provincial Government may appoint such registered medical

practitioners as it thinks fit to be certifying surgeons for the purposes of

this Act within such local limits as it may assign to them respectively.

(2) A certifying surgeon may authorize any registered medical

practitioner to exercise any of his powers under this Act: Provided that a

certificate of fitness for employment granted by such authorized

practitioner shall be valid for a period of three months only, unless it is

confirmed by the certifying surgeon himself after examination of the

person concerned.

Powers of Inspector

Subject to any rules made by the Provincial Government in this behalf, an

Inspector may, within the local limits for which he is appointed,

9




(a) enter with such assistants (if any), being persons in the service of the

state or of any municipal or other public authority, as he thinks fit, any

place which is or which he has reason to believe to be, used as a Factory

or capable of being declared to be a Factory under the provisions of

section 5;

(b) make such examination of the prem

ises and plant and of any

prescribed registers, and take on the spot or otherwise such evidence of

persons as we may deem necessary for carrying out the purposes of this

Act; and

(c) Exercise such other powers as may be necessary for carrying out the

purposes of this Act: Provided that no one shall be required under this

section to answer any question or give any evidence tending to criminatehimself.

Health and Safety

Cleanliness. Section 13

(1) Every Factory shall be kept clean and free from effluvia arising from

any drain, privy or other nuisance, and in particular,

• (a) accumulation of dirt and refuse shall be removed daily by

sweeping or by any other effective method from the floors and

benches of work-rooms and from staircases and disposed of in a

suitable manner ;

• (b) the floor of every work-room shall be cleaned at least once in

every week by washing, using disinfectant where necessary or by

some other effective method ;

• (c) where the floor is liable to become wet in the course of any

manufacturing process to such extent as is capable of beingdrained, effective means of drainage shall be provided and

maintained ;

• (d) all inside walls and partitions, all ceilings, or tops of rooms and

walls, sides and tops or passages and staircases shall:

o (i) where they are painted or varnished, be repainted or

revarnished at least once in every five years ;

10




o (ii) where they are painted or varnished and have smooth

impervious surfaces, be cleaned at least once in every

fourteen months, by such methods as may be prescribed ;

o (iii) in any other case, kept whitewashed or color washed and

the whitewashing or color washing shall be carried out at leastonce in every fourteen months

; and

• (e) The dates on which the processes required by clause (d) are

carried out shall be entered in the prescribed register.

(2) If, in view of the nature of the operations carried on in a Factory it is

not possible for the occupier to comply with all or any of the provisions of

sub-section (1), the Provincial Government may, by an order, exempt

such Factory or class or description of Factories from any of the

provisions of that sub-section and specify alternative methods for keepingthe Factory in a clean state.

Disposal of wastes and effluents. Section 14

(1) Effective arrangements shall be made in every Factory for the

disposal of wastes and effluents due to the manufacturing process carried

on therein.

(2) The Provincial Government may make rules prescribing the

arrangements to be made under sub-section (1) or requiring that the

arrangements made in accordance with that sub-section shall be subject

to the approval of such authority as may be prescribed.

Ventilation and temperature. Section 15

(1) Effective and suitable provisions shall be made in every Factory for

securing and maintaining in every work-room:

• (a) adequate ventilation by the circulation of fresh air, and• (b) such temperature as will secure to workers therein reasonable

conditions of comfort and prevent injury to health

Dust and fume. Section 16

• (1) In every Factory in which, by reason of the manufacturing

process carried on, there is given off any dust or fume or other

11




impurity of such a nature and to such an extent as is likely to be

injurious or offensive to the workers employed therein, effective

measures shall be taken to prevent its accumulation in any work-

room and its inhalation by workers and if any exhaust appliance is

necessary for this purpose, it shall be applied as near as possible tothe point of origin of the dust, fum

e or other impurity, and such

point shall be enclosed so far as possible.

• (2) In any Factory no stationary internal combustion engine shall be

operated unless the exhaust is conducted into open air and exhaust

pipes are insulated to prevent scalding and radiation heat, and no

internal combustion engine shall be operated in any room unless

effective measures have been taken to prevent such accumulation

of fumes there from as are likely to be injurious to the workers

employed in the work-room.

Overcrowding. Section 18

(1) No work-room in any Factory shall be over-crowded to an extent

injurious to the health of the workers employed therein.

(2) Without prejudice to the generality of the provisions of sub-section (1)

there shall be provided for every worker employed in a work-room -

• (a) at least three hundred and fifty cubic feet of space in the case of

a Factory in existence on the date of the commencement1 of the

Labour Laws (Amendment) Ordinance, 1972; and

• (b) At least five hundred cubic feet of space in the case of a Factory

built after the commencement of the Labour Laws (Amendment)

Ordinance, 1972.

The Chief Inspector may, by order in writing, exempt, subject to such

conditions as he may think fit to impose, any work-room from theprovisions of this section if he is satisfied that compliance therewith in

respect of such room is not necessary for the purpose of health of the

workers employed therein.

Lighting. Section 19

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(1) In every part of a Factory where workers are working or passing, there

shall be provided and maintained -

• (a) Sufficient and suitable lighting, natural or artificial, or both; and

•

(b) Emergency lighting of special points in work-room and passagesto function automatically in case of a

failure of the ordinary electric

system.

Drinking Water. Section 20

(1) In every Factory effective arrangements shall be made to provide and

maintain at suitable points conveniently situated for all workers employed

therein a sufficient supply of whole-some drinking water.

(2) All such points shall be legibly marked "Drinking Water" in a language

understood by the majority of the workers and no such point shall be

situated within twenty feet of any washing place, urinal or latrine, unless

a shorter distance is approved in writing by the Chief Inspector.

(3) In every Factory wherein more than two hundred and fifty workers are

ordinarily employed, provision shall be made for cooling the drinking

water during the hot weather by effective means and for distribution

thereof and arrangements shall also be made for:

• (a) the daily renewal of water if not laid on; and

• (b) A sufficient number of cups or other drinking vessels, unless the

water is being delivered in an upward jet.

Latrines and urinals. Section 21

In every Factory:

•

(a) sufficient latrines and urinals of prescribed types shall beprovided conveniently situated and accessible to workers at all

times while they are in the Factory;

• (b) enclosed latrines and urinals shall be provided separately for

male and female workers;

• (c) such latrines and urinals shall be adequately lighted and

ventilated and no latrine and urinal shall, unless specially exempted

13




in writing by the Chief Inspector, communicate with any workroom

except through an intervening open space or ventilated passage;

• (d) all such latrines and urinals shall be maintained in a clean and

sanitary condition at all times with suitable detergents or

disinfectants or with both;• (e) the floors and internal walls of th

e latrines and urinals and the

sanitary blocks shall, up to a height of three feet, be finished to

provide a smooth polished impervious surface; and

• (f) Washing facilities shall be provided near every sanitary

convenience.

Spittoons. Section 22

In every Factory there shall be provided, at convenient places, a sufficientnumber of spittoons which shall be maintained in a clean and hygienic

condition.

Whosoever spits in contravention of sub-section (3) shall be punishable

with a fine not exceeding two rupees.

Precautions against contagious or infections disease. Section 23

(1) Each worker in a Factory shall be provided with a "Hygiene Card' in

which during the month of January and July every year entries shall be

recorded after examination by appointed Factory doctor to the effect that

the worker is not suffering from any contagious or infectious disease. The

fee of such an examination shall be fixed by the Provincial Government

and will be borne by the occupier or manager of the Factory.

(2) If a worker is found to be suffering from any contagious or infectious

disease on an examination under sub-section (1), he shall not be

appointed on work till he is declared free of such a disease.

Compulsory vaccination and inoculation. Section 23-A

Each worker in a Factory shall be vaccinated and inoculated against such

diseases and at such intervals as may be prescribed. The expenses, if

any, of such vaccination and inoculation shall be borne by the occupier or

manager of the Factory.

14




Canteens. Section 24

The Provincial Government may make rules requiring that in any

specified Factory wherein more than two hundred and fifty workers are

ordinarily employed, an adequate canteen shall be provided for the use of the workers.

Welfare Officer. Section 24-A

In every Factory wherein not less

than five hundred workers are ordinarily

employed the occupier or manager shall employ such number of welfare

officers, having such qualifications, to perform such duties and on such

terms and conditions as may be prescribed.

Precautions in case of fire. Section 25

Every Factory shall be provided with such means of escape in case of fire

as may be prescribed. If it appears to the Inspector that any Factory is

not provided with the means of escape prescribed under sub-section (1)

he may serve on the manager of the Factory an order in writing

specifying the measures which should be adopted before a date specified

in the order.

Fencing of machinery. Section 26

(1) In every Factory the following shall be securely fenced by the

safeguards of substantial construction which shall be kept in position

while the parts of machinery required to be fenced are in motion or in

use, namely -

• (a) every moving part of a prime mover, and every fly wheel

connected to a prime mover;

• (b) the headrace and tailrace of every water wheel and waterturbine;

• (c) any part of a stock-bar which projects beyond head stock of a

lathe; and

• (d) unless they are in such position or of such construction as to be

as safe to every person employed in the Factory as they would be if

they were securely fenced -

15




o (i) every part of an electric generator, a motor or rotary

convertor;

o (ii) every part of transmission machinery; and

o (iii) every dangerous part of any machinery:

• Provided that, in the case of dangerous parts of machinery thatcannot be securely fenced by reas

on of the nature of operation,

such fencing may be substituted by other adequate measures, such

as -

o (i) devices automatically preventing the operation from

coming into contact with the dangerous parts ; and

o (ii) automatic stopping devices

Work on or near machinery in motion. Section 27

• (1) Where in any Factory it becomes necessary to examine any part

of machinery referred to in section 26 while the machinery is in

motion, or as a result of such examination, to carry out any

mounting or shipping of belts, lubrication or other adjusting

operation while the machinery is in motion, such examination or

operation shall be made or carried, out only by a specially trained

adult male worker wearing tight fitting clothing whose name hasbeen recorded in the register prescribed in this behalf and while he

is so engaged, such worker shall not handle a belt at a moving

pulley unless the belt is less than six inches in width and unless the

belt joint is either laced or flush with the belt.

• (2) No woman or child shall be allowed in any Factory to clean,

lubricate or adjust any part of machinery while that part is in

motion, or to work between moving parts or between fixed and

moving parts of any machinery which is in motion.

Employment of young person’s on dangerous machines. Section

28

(1) No child or adolescent shall work at any machine unless he has been

fully instructed as to the dangers arising in connection with the machine

and the precautions to be observed and

16




• (a) has received sufficient training in work at the machine, or

• (b) Is under adequate supervision by a person who has thorough

knowledge and experience of the machine.

Striking gear and devices for cutting off power. Section 29

(1) In every Factory:

• (a) suitable striking gear or other efficien

t mechanical appliances

shall be provided and maintained and used to move driving belts to

and from fast and loose pulleys which form part of the transmission

machinery, and such gear or appliances shall be so constructed,

placed and maintained as to prevent the belt from creeping back on

the fast pulleys;

• (b) Driving belts when not in use shall not be allowed to rest or ride

upon shafting in motion.

Self-Acting machines. Section 30

No traversing part of a self-Acting machine in any Factory and no material

carried thereon shall, if the space over which it runs is a space over which

any person is liable to pass whether in the course of his employment or

otherwise, be allowed to run on its outward or inward traverse within a

distance of eighteen inches from any fixed structure which is not part of

the machine.

Casing of new machinery. Section 31

(1) In all machinery driven by power and installed in any Factory after the

commencement of the Labour Laws (Amendment) Ordinance, 1972 -

• (a) every set screw, belt or key on any revolving shaft, spindle,

wheel or pinion shall be so sunk, encased or otherwise effectivelyguarded as to prevent danger; and

• (b) all spur, worm and other toothed or friction gearing which does

not require frequent adjustment while in motion shall be completely

encased unless it is so situated as to be as safe as it would be if it

were completely encased.

17




Prohibition of employment of women and children near cotton

openers. Section 32

No woman or child shall be employed in any part of a Factory for pressing

cotton in which a cotton-opener is at work:

• Provided that if the feed end of a

cotton-opener is in a room

separated from the delivery end by a partition extending to the roof

or to such height as the Inspector may in any particular case specify

in writing, women and children may be employed on the side of the

partition where the feed end is situated.

Cranes and other lifting machinery. Section 33

(1) The following provisions shall apply in respect of cranes and all other

lifting machinery, other than hoists and lifts in any Factory:

• (a) every part thereof, including the working gear, whether fixed or

movable, ropes and chains and anchoring and fixing appliances

shall be

o (i) of good construction, sound material and adequate strength

o (ii) properly maintained

o (iii) thoroughly examined by a competent person at least once

in every period of twelve months, and a register shall be kept

containing the prescribed particulars of every such

examination

• (b) no such machinery shall be loaded beyond the safe working load

which shall be plainly marked thereon

• (c) while any person is employed or working on or near the wheel

tract of a travelling crane in any place where he would be liable to

be struck by the crane, effective measures shall be taken to ensure

that the crane does not approach within twenty feet of that place orcome into accidental contact with live electrical lines.

Hoists and lifts. Section 33-A

(1) In every Factory:

• (a) every hoist and lift shall be

18




o (i) of good mechanical construction, sound material and

adequate strength;

o (ii) properly maintained, and shall be thoroughly examined by

a competent person authorized by the Chief Inspector in this

behalf at least once in every period of six months, and aregister shall be kept containin

g the prescribed particulars of

every such examination of which a copy shall be forwarded to

the Chief Inspector;

• (b) every hoist way and lift way shall be sufficiently protected by an

enclosure fitted with gates, and the hoist or lift and every such

enclosure shall be so constructed as to prevent any person or thing

from being trapped between any part of the hoist or lift and any

fixed structure or moving part;

• (c) the maximum safe working load shall be plainly marked on everyhoist or lift, and no load greater than such load shall be carried

thereon;

• (d) the cage of every hoist or lift used for carrying persons shall be

fitted with a gate on each side from which access is afforded to a

landing;

• (e) Every gate referred to in clause (b) or clause (d) shall be fitted

with interlocking or other efficient device to secure that the gate

cannot be opened except when the cage is at the landing and that

the cage cannot be moved unless the gate is closed.

Revolving machinery. Section 33-B

In every room in a Factory in which the process of grinding is carried on

there shall be permanently affixed to or placed near each machine in use

a notice indicating the maximum safe working peripheral speed of every

grind stone or abrasive wheel, the speed of the shaft or spindle upon

which the wheel is mounted and the diameter of the pulley upon such

shaft or spindle necessary to secure such safe working peripheral speed.

Pressure plant. Section 33-C

If in any Factory any part of the plant or machinery used in a

manufacturing process is operated at a pressure above atmospheric

pressure, effective measures shall be taken to ensure that safe working

pressure of such part is not exceeded.

19




Floors, stairs and means of access. Section 33-D

In every Factory:

• (a) all floors, stairs, passages and gangways shall be of sound

construction and properly maintained

and where it is necessary to

ensure safety, steps, stairs, ladders, passages and gangways shall

be provided with substantial handrails;

• (b) there shall, so far as is reasonably practicable, be provided and

maintained safe means of access to every place at which any

person is at any time required to work;

• (c) all places of work from which a worker may be liable to fall a

distance exceeding three feet and six inches shall be provided with

fencing or other suitable safeguards; and

(d) Adequate provision shall be made for the drainage of floors in wet

processes and for the use of slatted stands and platforms.

Pits, sumps, opening in floors, etc. section 33-E

In every Factory, every fixed vessel, sump, tank pit or opening in the

ground or in floor which by reason of its depth, situation, construction or

contents, is or may be a source of danger, shall be either securely

covered or securely fenced.

Excessive weights. Section 33-F

No person shall be employed in any Factory to lift, carry or move any load

so heavy as to be likely to cause him injury.

Protection of eyes. Section 33-G

The Provincial Government may, in respect of any manufacturing processcarried on in any Factory, by rule require that effective screens or

suitable goggles shall be provided for the protection of persons employed

on, or in the immediate vicinity of, a process which involves -

• (a) risk of injury to the eyes from particles or fragments thrown off

in the course of the process, or

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• (b) Risk to the eyes by reason of exposure to excessive light or

heat.

Powers to require specifications of defective parts or tests of

stability. Section 33-H

If it appears to the Inspector that any bu

ilding or any part of the ways,

machinery or plant in a Factory, is in such a condition that it may be

dangerous to human life or safety, he may serve on the Manager of the

Factory an order in writing, requiring him before a specified date -

• (a) to furnish such drawings, specifications and other particulars as

may be necessary to determine whether such building, ways,

machinery or plant can be used with safety, or

• (b) To carry out such tests as may be necessary to determine the

strength or quality of any specified parts and to inform the Inspector

of the results thereof.

Safety of building, machinery and manufacturing process.

Section 33-1

• (1) If it appears to the Inspector that any building or part of a

building or any part of the ways, machinery or plant or

manufacturing process in a Factory is in such a condition that it is

dangerous to human health or safety, he may serve on the Manager

of the Factory an order in writing specifying the measures which, in

his opinion, should be adopted, and requiring them to be carried out

before a specified date.

Power to make rules to supplement this Chapter. Section 33-J

The Provincial Government may make rules requiring that

• (1) in any Factory or in any class or description of Factories, such

further devices and measures for securing the safety of the persons

employed therein as it may deem necessary shall be adopted: and

• (2) Work on a manufacturing process carried on with the aid of

power shall not be begun in any building or part of a building

erected or taken into use as a Factory until a certificate of stability

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in the prescribed form and signed by a person possessing the

prescribed qualifications has been sent to the Chief Inspector.

Precautions against dangerous fumes. Section 33-K

(1) In any Factory no person shall enter o

r be permitted to enter any

chamber, tank, vat, pit, pipe, flue or other confined space in which

dangerous fumes are likely to be present to such an extent as to involve

risk of persons being overcome thereby, unless it is provided with a

manhole of adequate size or other effective means of ingress.

(2) No portable electric light of voltage exceeding twenty-four volts shall

be permitted in any Factory for use inside any confined space such as is

referred to in sub-section (1) and, where the fumes present are likely to

be inflammable, a lamp or light other than of flame proof construction

shall not be permitted to be used in such confined space.

Explosive or inflammable dust, gas, etc. section 33-L

(1) Where in any Factory any manufacturing process produces dust, gas,

fume or vapour of such character and to such extent as to be likely to

explode on ignition, all practicable measures shall be taken to prevent

any such explosion by -

• (a) effective enclosure of the plant or machinery used in the process

;

• (b) removal or prevention of the accumulation of such dust, gas,

fume or vapour ;

• (c) Exclusion or effective enclosure of all possible sources of

ignition.

Power to exclude children. Section 33-M

• (1) The Provincial Government may make rules prohibiting the

admission to any specified class of Factories, or to specify parts

thereof, of children who cannot be lawfully employed therein.

Working Hours of Adults

Weekly hours. Section 34

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No adult worker shall be allowed or required to work in a Factory for more

than forty-eight hours in any week, or, where the Factory is a seasonal

one, for more than fifty hours in any week:

Provided that an adult worker in a Factory engaged in work which fortechnical reasons must be continuous th

roughout the day may work for

fifty-six hours in any week.

Weekly holiday. Section 35

(1) No adult worker shall be allowed or required to work in a Factory on a

Sunday unless -

• (a) he had or will have a holiday for a whole day on one of the three

days immediately before or after that Sunday, and

• (b) The manager of the Factory has, before that Sunday or the

substituted day, whichever is earlier.

Daily hours. Section 36

No adult worker shall be allowed or required to work in a Factory for more

than nine hours in any day:

• Provided that a male adult worker in a seasonal Factory may workten hours in any day.

Intervals for rest. Section 37

The periods of work of adult workers in a Factory during each day shall be

fixed either -

• (a) so that no period shall exceed six hours and so that no worker

shall work for more than six hours before he has had an interval forrest of at least one hour; or

• (b) so that no period shall exceed five hours, and so that no worker

shall work for more than five hours before he has had an interval for

rest of at least half an hour, or for more than eight and a half hours

before he has had at least two such intervals.

Spread over. Section 38

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The periods of work of an adult worker in a Factory shall be so arranged

that along with his intervals for rest under section 37, they shall not

spread over more than ten and a half hours, or where the Factory is a

seasonal one, eleven and a half hours in any day, save with the

permission of the Provincial Government and subject to such conditionsas it may impose, either generally or in th

e case of any particular Factory.

Extra pay for overtime. Section 47

(1) Where a worker

• (a) in a non-seasonal Factory works for more than nine hours in any

day or for more than forty-eight hours in any week, or

• (b) in a seasonal Factory works for more than nine hours in any day

or for more than fifty hours in any week,

Obligation to work overtime. Section 47-A

Any adult worker may be required to work overtime, provided that such

working conforms to the provisions of this Act and the rules made there

under.

Restriction on double employment. Section 18

No adult worker shall be allowed to work in any Factory on any day on

which he has already been working in any other Factory, save in such

circumstances as may be prescribed.

Holidays with PayAnnual holidays. Section 49-B

(1) Every worker who has completed a period of twelve months

continuous service in a Factory shall be allowed, during the subsequent

period of twelve months holidays for a period of fourteen consecutive

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days, inclusive of the day or days, if any, on which he is entitled to a

holiday under sub-section (1) of section 35.

(2) If a worker fails in any one such period of twelve months to take the

whole of the holidays allowed to him under sub-section (1), any holidaysnot taken by him shall be added to the

holidays to be allowed to him

under sub-section (1) in the succeeding period of twelve months, so

however that the total number of holidays which may be carried forward

to a succeeding period shall not exceed fourteen.

Pay during annual holiday. Section 49-C

Without prejudice to the conditions governing the day or days, if any, on

which the worker is entitled to a holiday under sub-section (1) of section

35, the worker shall, for the remaining days of the holidays allowed to

him under section 49-B, be paid at a rate equivalent to the daily average

of his wages as defined in the Payment of Wages Act, 1936 (IV of 1936),

for the days on which he Actually worked during the preceding three

months, exclusive of any earning in respect of overtime.

Payment when to be made. Section 49-D

A worker who has been allowed holidays under section 49-B shall, before

his holidays begin, be paid half the total pay due for the period of

holidays.

Casual leave and sick leave. Section 49-H

(1) Every worker shall be entitled to casual leave with full pay for ten

days in a year.

(2) Every worker shall be entitled to sixteen days sick leave on half

average pay in a year.

Festival Holidays. Section 49-1

(1) Every worker shall be allowed holidays with pay on all days declared

by the Provincial Government to be festival holidays.

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(2) A worker may be required to work on any festival holiday but one

day's additional compensatory holiday with full pay and a substitute

holiday shall be allowed to him in accordance with the provisions of

section 35.

Special Provisions for A

dolescents and

Children

Prohibition of employment of young children. Section 50

No child who has not completed his fourteenth year shall be allowed to

work in any Factory.

Non-adult workers to carry tokens giving reference to

certificates of fitness. Section 51

No child who has completed his fourteenth year and no adolescent shall

be allowed to work in any Factory unless

• (a) a certificate of fitness granted to him under section 52 is in the

custody of the manager of the Factory, and

•

(b) He carries while he is at work a token giving a reference to suchcertificate.

Restrictions of the working hours of a child. Section 54

• (1) No child shall be allowed to work in a Factory for more than five

hours in any day.

Practical Study of the Organization

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INTRODU

CTION OF ORGANIZATION:

The Kohinoor Maple Leaf Group was born from the trifurcation of the

Saigol group of companies and is a reputable and leading manufacturer

of textiles and cement. KTMG comprises of Kohinoor Textile Mills limited

(KTML) and Maple Leaf Cement Factory limited (MLCF). Both companies

are incorporated in Pakistan and are listed on three stock exchanges of

the country.

HISTORY:

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KML was incorporated in 1987 at Mangamandi and is one of the oldest

companies of Pakistan with over 50 years experience in textile

manufacturing. It was initially set up as a weaving project with 256

looms. However, after decades of aggressive expansion and

modernization KML has emerged into a fully vertically integrated hometextiles company with state of the art cap

abilities for Weaving, Dyeing,

Hosiery, Genertek, and Hometex. The company has a diverse customer

base with sales in both the local and export markets. The main

international markets include Asia, Europe, USA and Australia.

Kohinoor Mills Limited was incorporated as a Public limited Company on

December 21st, 1987 and is located at 8th K.M., Manga Raiwind Road,

and District Kasur. The Company produces greige cloth from cotton,

blended and synthetic yarns.

The project was initially established with 48 Sulzer Ruti shuttles-less

looms of 153" width from Switzerland with modern ancillary machinery to

produce high quality fabric for export markets. Further expansions saw

the installation of an additional 96 Tsudakoma air jet looms from Japan in

1990 and a third shed comprising 60 state of the art Picanol Omni 340 cm

wide looms was installed in July 1998, twelve with batching motions.

Another twelve Picanol Omni 340 cm wide looms were installed in 1999.

In 2000-2001 old 48 Sulzer Ruti looms were replaced by 48 lated Picanol

Omni Plus 380cm looms. In addition to that latest Picanol Omni plus

Jacquard Looms were also added as well as a yarn conditioning machine

from Zorella was also installed.

The entire manufacturing process from warping to fabric inspection is

monitored through an on-line process control system from Barco. The

marketing strategy is to explore new markets both in quota and non-

quota countries.

Vision Statement:

To transform the company into a modern and dynamic yarn, cloth and

processed cloth and finished product manufacturing company with highly

professionals and fully equipped to play a meaningful role on sustain able

basis in the economy of Pakistan.

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To transform the company into a modern and dynamic power generating

company with highly professionals and fully equipped to play a

meaningful role on sustainable basis in the economy of Pakistan.

Mission Statement:

To provide quality products to customers a

nd explore new markets to

promote/expand sales of the company through good governance and

foster a sound and dynamic team, so as to achieve optimum prices of

products of the company for sustainable and equitable growth and

prosperity of the company.

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Practical Study of the Organization

with respect to the Issue

Applications of Factory Act

in Kohinoor Textile

Mill:

During my research I have found that Kohinoor Textile Mill Management

is following all the rules and regulations’ that are defined in Pakistan

Factory Act 1934. Some of the applications from these rules, I have

discuss below.

General Applications:

According to Factory Act a “Day” should not be more than 24

hours, the working day in Kohinoor mill is also 24 hours.

According to Factory Act a “Weak” should be of 7 days, Kohinoor

mill is also following this rule.

In Kohinoor mill the person under 15 years treated as “Child” and

above 18 years treated as “Adult”. An inspector from Government inspects the mill time to time.

Applications Regarding Health:

Mill sweepers sweeps in the all mill departments twice a day.

The floor of every work-room has clean at least once in every

week by washing, using disinfectant where necessary or by some othereffective method.

All mill walls are painted and furnished according to Factory Act.

There are effective arrangements for the disposal of wastes and

effluents due to the manufacturing process carried on therein.

Effective and suitable provisions have been made for securing and

maintaining in every work-room from over temperature and for air

circulation.

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Effective arrangements have been made for the disposal of wastes

and effluents due to the manufacturing process carried on therein.

No work-room in the mill is over-crow

ded to an extent injurious to

the health of the workers employed therein.

Sufficient, suitable and Emergency lighting of special points in

work-room and passages to function automatically in case of a failure of

the ordinary electric system.

In the whole mill effective arrangements have been made to

provide and maintain at suitable points conveniently situated for all

workers employed therein a sufficient supply of whole-some drinking

water.

All such points are legibly marked "Drinking Water" in a language

understood by the majority of the workers and no such point is situated

within twenty feet of any washing place, urinal or latrine.

Sufficient latrines and urinals of prescribed types are provided

conveniently situated and accessible to workers at all times while they

are in the mill.

All such latrines and urinals have maintained in a clean and

sanitary condition at all times with suitable detergents and

disinfectants. Washing facilities are provided near every sanitary convenience.

There have been provided, at convenient places, a sufficient

number of spittoons which are maintained in a clean and hygienic

condition.

Each worker in a Factory is provided with a "Hygiene Card' in

which during the month of January and July every year entries are

recorded after examination by appointed Factory doctor to the effect

that the worker is not suffering from any contagious or infectious

disease.

Applications Regarding Safety:

No child or adolescent are work at any machine unless he has

been fully instructed as to the dangers arising in connection with the

machine and the precautions to be observed.

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No woman or child are allowed in the mill to clean, lubricate or

adjust any part of machinery while that part is in motion, or to work

between moving parts or between fixed and moving parts of any

machinery which is in motion.

Efficient mechanical appliances are provided and maintained andused to move driving belts to and from

fast and loose pulleys which

form part of the transmission machinery, and such gear or appliances

are so constructed, placed and maintained as to prevent the belt from

creeping back on the fast pulleys.

Every set screw, belt or key on any revolving shaft, spindle, wheel

or pinion are so sunk, encased or otherwise effectively guarded as to

prevent danger.

All spur, worm and other toothed or friction gearing which does

not require frequent adjustment while in motion are completely encasedunless it is so situated as to be as safe as it would be if it were

completely encased.

No woman or child is employed in any part of a Factory for

pressing cotton in which a cotton-opener is at work.

Every part thereof, including the working gear, whether fixed or

movable, ropes and chains and anchoring and fixing appliances are of

good construction, sound material, adequate strength and properly

maintained.

every hoist and lift of good mechanical construction sound materialand adequate strength properly maintained, and are thoroughlyexamined by a competent person authorized by the Chief Inspectorin this behalf at least once in every period of six months, and aregister is kept containing the prescribed particulars of every suchexamination of which a copy is forwarded to the Chief Inspector.

No person is employed in the mill to lift, carry or move any load so

heavy as to be likely to cause him injury.

In the mill no person is enter or be permitted to enter any chamber,

tank, vat, pit, pipe, flue or other confined space in which dangerousfumes are likely to be present to such an extent as to involve risk of

persons being overcome thereby, unless it is provided with a

manhole of adequate size or other effective means of ingress.

Applications regarding Working Hours of

Adults:

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No adult worker is allowed or required to work in a Factory for more

than forty-eight hours in any week, or, where the Factory is a

seasonal one, for more than fifty hours in any week.

No adult worker is allowed or required to work in a Factory on a

Sunday unless:

(a) He had or will have a holiday for a whole

day on one of the three days

immediately before or after that Sunday, and

(b) The manager of the Factory has, before that Sunday or the

substituted day, whichever is earlier.

No adult worker is allowed or required to work in a Factory for more

than nine hours in any day. Any adult worker may be required to work overtime, provided that

such working conforms to the provisions of this Act and the rules

made there under.

No adult worker is allowed to work in any Factory on any day on

which he has already been working in any other Factory, save in

such circumstances as may be prescribed.

Applications regarding Holydays with pay:

Every worker who has completed a period of twelve months

continuous service in the mill allowed, during the subsequent period

of twelve months holidays for a period of fourteen consecutive days,

inclusive of the day or days.

A worker who has been allowed holidays under section 49-B, before

his holidays begin, be paid half the total pay due for the period of

holidays.

Every worker is entitled to casual leave with full pay for ten days in

a year. Every worker is entitled to sixteen days sick leave on half average

pay in a year.

Every worker is allowed holidays with pay on all days declared by

the Provincial Government to be festival holidays.

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Application Regarding Special Provisions for

Adolescents and Children:

No child who has not completed his fourteenth year shall be

allowed to work in the Mill.

No child is allowed to work in a Facto

ry for more than five hours in

any day.

No child who has completed his fourteenth year and no adolescent shall be allowed to

work in any Factory unless

(a) A certificate of fitness granted to him under section 52 is in the

custody of the manager of the Factory, and

(b) He carries while he is at work a token giving a reference to such

certificate.

SWOT analysis

Strength: Mill management has complete knowledge about Factory Act.

Mill management has a strong policy for the implementation of

Factory Act.

KML having own electricity power plant which is producing not

only for the KWML but also providing electricity to other companies and

to govt. at subsidy rate.

ERP (Enterprise Resource Planning) has been installed in KML that’s

why company is saving all records in systems and having huge

database.

KML has purchased latest power looms Toyota Air Jet Power Looms.

That’s why they have reduced the production cost and have

increased the quality and efficiency of their textile products.

In KML there are near about 4500 employees who are from different

environments and having different cultures but fortunately there is

no cross cultural communication.

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KML is one of the major Mills in Pakistan that’s why they have little

bit reputation in local market and having trust from investors.

Weakness: Most mill workers don’t know about Fa

ctory Act.

Factory Act is not fully implemented in the mill.

Most mill workers are uneducated so they can’t read or write

about Factory Act.

The delivery of each contract is always not done on time. The

customer has to wait for 4 to 5 weeks to get his/her desired product.

The main reason is that late purchasing of raw material. Raw

material just like Yarn and Sizing material is not available on time

and some time it happens that there is shortage of raw materialduring the running contract that’s why production department has

to wait for the raw material.

Commercial department of KML is showing its little bit bad

performance. Means always the yarn is purchased late and on credit

and payments are done by the department always very late.

There is no proper placing for final products to place them safely

and at the time of their dispatch there is possibility of mistake.

There are a little bit gaps in communication between the

departments. May be these confirm each and every thing from each

other but still they make mistakes and blame each others to safe

them.

KML has no proper planning for the Marketing. They advertise

about their selves only from newspapers. That’s why limited number of

people knows about them.

Opportunities:

The increasing trend of Education in the Pakistan cans bi fruitful

for the mill.

Due to unemployment the mill can hire educated workers those

are fully aware with Pakistani Laws and Regulations.

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The technology has been improved for the textile industry and

these technologies are being acquired by the international competitors

as well as by local competitors so they are producing good quality

textile products and increasing the efficiency as well as decreasing the

cost of production. KWML has the opportunity to invest for the newtechnology.

HR department can prove and sho

w them they are here for

employees by motivating the employees performing their best. They

can find the motivation level of their employees and give them

incentives to motivate them.

KWML has the opportunity to capture the market share locally by

launching new projects just like they have launched “Dhanak “in

August 2008. They can start new projects in garments, Apparel or

Home Tax, Dyeing, Hosiery.

KML can open its own shops in local market where they can

display their garments products (socks, Trousers) and Apparels as well

as curtains.

Threats:

New Government polices and penalties on violation can bi harmful

for the mill because the worker who violates the rule cab be fired and

due to lack of workers mill production can be effected. Government of Pakistan has implemented some new rules for the

textile industries which are almost of them are not in fever of the

industrialists. These are

• 31% increment in the prices of Gas

• Near about 10 rupees per liter increment in price of petroleum

• Bann to export the raw cotton

• No subsidy for the research and developments in the textile

industry The high consumption of the petroleum is also the major issues

because in international market, their prices are going up and

touching sky, due to which the freight costs are increasing day by

day and hence the cost of production, is also increasing rapidly

which is becoming the reason of losing foreign customers of

Pakistan.

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KML has not been working for better Research and Development

Department for some years. They are not focusing to improve their

technology and expand their market share.

The prices of petroleum have been increased and still increasing

rapidly. That’s why the freight charges have been increased and thecost of productions has also been in

creased by the huge amount.

Due to these increments, the sale price has also been increased but

customers are not ready to pay more for a good quality instead of

better quality.

Conclusion

The topic which was assign was “Applications of Factory Act “

For every Factory/Mill rules and regulations are very important.

If the Factory/mill does negligent rules then that person can give loss to

the organization.

So the Mill has to do all the important Actions for the implementations

of Factory rules that are defined under Factory Act 1934.

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In Kohinoor mill mostly all rules of Factory Act are implemented but still

there is need to fully implement of all rules. Most workers are not known

about Factory Act so the mill management has to take Action about

Factory Act awareness.

Recommendation

Mill management has to inform the mill workers about the Factory

Act.

There should be penalties for those workers who violate the Act.

Special incentives should also be given to Head on Eid and on

other special days should be given to the workers.

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Medical facilities are given in mill but such facilities should also be

given to management.

Different training courses should be arranged for the up lifting and

improving the quality of work for employees.

They provide transportation facility to only female employees Ithink male should also be provided with c

onveyance convenience. This

will create the easiness for workers and reduce the wastage of time.

Reference

Project report “Applications of Factory Act”

www.slideshare.com

http://www.kohinoormill.com.pk/

http://en.wikipedia.org/wiki/Telenor_Pakistan

www.google.com

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Application of Factories Act in an Organization

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