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Dear Senior,
While making the settlement with the union, it was decided that Management will provide 2 cup of tea or one time snacks to the worker.
Accordingly, the vendor was called upon,
The price of each cup of tea was fixed up to Rs. 2.50 - 3.00 per cup.
The price of snacks was fixed up @ Rs. 8.00.
can anybody help me out, how to administer the whole process.
7th September 2010 From India, Haora
dear jitendra, attaching here is ppt got from my friend, will throw a light on your issues. lets see seniors reply, but do provide some more information, as of know everything is fine...let see more
8th September 2010 From India, Bangalore

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Dear Jitendra,
Calculate the cost of tea & snacks together for a day and accordingly multiply for working days i.e. 26 or 27 of months. Example, 2.50 + 8.00 = 10.50 * 26 days = Rs. 273 p.m. You issue coupen of Rs.273/- on the actual worked days of last month means a employee worked for 20 days then the amount will be of Rs. 210/-
According to above calculation pay to each and every individual through coupen from which they will avail the canteen facility.
You prepare a canteen policy after of working hours - i.e.
2-3 hrs. - Tea
> 3 hrs - 6 hrs - Snacks
> 6 hrs. - lunch / dinner ( if you ready to pay )
Then after maintain Canteen register of following accounts :
1. Canteen Requisition Slip ( on overtime )
2. Tea / Coffee Account
3. Coupen Account
4. Guest Account
5. Trainees Account ( if paying freely )
We adopted above canteen policy & agreement with great success.
If you have any query please mail me
Sunil Wagh
Head - H. R. & Administration
8th September 2010 From India, Mumbai
Good presentation. It is high time organisation move from Rly Station modus canteens to professional catering Regards Kk
9th September 2010 From India, Bhopal
  • I hope to have understood your problem correctly. It seems you have to offer either 2 cups of tea or a snack and cost of a snack is not equal to the cost of 2 cups of tea.
  • Only possible solution is to equate the two costs or live with the problem, if you can!!

9th September 2010 From India, Pune
Canteen is one of the most sensitive areas in an Industrial estb.Personnel Mgrs have night mares due to IR issues arising out of problems in Canteen.
If I understand ,in your case you are just about setting up a canteen.Since it has been agreed on the price point with Union,it is better to tell them that the money would be paid calculated for the actual days of work to workmen.
The mgt will facilitate the canteen by providing space & identifying a vendor .
All purchases will be on cash directly by workmen to the vendor.
Make it clear to the union that the mgt will have no role in the running of the canteen.A committe comprising of some workmen& executives be set to moniter the same.
Shibu Jacob
Head HR&Admin
Lotte India Corp Ltd
9th September 2010 From India, Madras
Hi Jitendra
One more suggestion you can issue canteen coupens as per price list you had already discussed with union i.e for tea @ 2.50 and snacks @ 8.00 with serial. no. to be printed on that.
This process can be handled by Security Supervisor or Time office executive or some one from HR deptt and for that you can go with different colour coupens i.e for tea can be yellow or snacks for red or as per suitablity.........
May be helpful for you or seniors can i have your views on this please.
9th September 2010 From India, Bangalore
Hi Jiten, You need to formulate proper policy and procedure related to canteen. I am attaching herewith canteen manual for your information. Regards, Akatrap
9th September 2010 From India, Mumbai

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Dear Jitendar,

First please find out whether for your strength of employees you are required to run a canteen. If you are not required to run a canteen then refrain from it.

The second thing is if your worker is acceptable to receive the tea and snacks in the form of money please go ahead and pay them Rs.6/- (for two cups of tea) and Rs.8- for snacks i.e Rs.14/- X the number of day they report for work. Thereby you will ensure that you make payment only for those days he has worked. But please note that this monetary part of Rs.14/-/ day will be a subject point for negotiation every time the settlement is due.

The third thing is for tea and coffee you may consider installing a vending machine. It hovers around the price you are indicating. You can either make it self vending or have someone to vend it and distribute. If you make it self vending then there is a possiblity of workmen to crowd there and chat (this is not beneficial in the long run). On the other hand if someone distributes it at their work spot you can avoid it as this will not require any policing.

For snacks you can think of distributing biscuit packets. But please indicate to your workmen that you are not committing yourself to distribute biscuits of a particular brand and you will only distribute biscuits of your choice based on the value and not on the brand. The reasons for this is either the brand you are distributing may be withdrawn by the manufacturer or he might introduce an so called improved version at a higher price.

Hope these small tips will help you. But at the end of the day please ensure that you do not exceed Rs.14/ head/ day of attendance to contain cost.

12th September 2010 From India, Madras
thank you Akatrap, Mr Kanan and others for their valuable suggestion,

I am trying to workout some way based on your suggestions. Actually the problem was something like this.

Management agrees to provide the 2 cups of tea . The union raised the problem that what about those not drinking the tea esp. the female working in our organisation. They demanded that if they are not drinking tea, Management shall pay them with Rs. 8.00.

Now, ultimately it was decided that those drinking tea shall be provided tea and those not drinking tea shall be provided with snacks- 1 time of same value. Value was Rs.8

Accordingly the vendor was called upon for discussion, where it was agreed by the vendor to supply the tea for Rs. 2.50 to Rs. 3.00 and Snacks for Rs. 8.00.

Now, after all these, management has left the issue to us- to manage the show, plan the way to adminster the same.

Problem is both the items has different value, is very difficult to adminster in long run, it may some time happen those drinking tea may also demand for snacks and those having snacks can demand for Tea. The situation is bit tricky. Management want to get profit from the agreed amount.. and worker want to get the maximum gain.

I think i am able to explain you the whole issue
13th September 2010 From India, Haora
Dear Jiten,
You have now clarified the situation much better.
As you have a union please make an agreement that for administrative purpose you need details of employees who are opting for tea and not opting for tea. Ask the employees to sign and record their choice.
Please add a rider that the option cannot be changed during the duration of the settlement. It is easier said than done. But make an effort, we succeeded in our effort to withdraw canteen facility which was not statutorily required by compensating money in place. We got rid of a host of problems.
Eventually you will find many employees finally opting for payment and not tea because it will be Rs.8/- X the number of days they work and it will also be easy for you to monitor. A matter of caution in my opinion if anything is paid in cash to employees including fringe benefits it attracts provision of IT act i.e it is taxable. Please consult with your finance department on this aspect.
14th September 2010 From India, Madras
Hi Jiten, I am completely agree with Mr. Kannan. He has given you a practical solution, which will help you in long run. Regards, Akatrap
14th September 2010 From India, Mumbai
Dear Jiten,
You can have a manual system in place for this as well as an online system for eg you must have outsourced your canteen facility to a vendor. You can give him the list of employees with their employee id and name and tell him to take signature who comes to have lunch, dinner or snacks.
Other thing is the online system were a swap card is given to the employees for attendance you can install a machine at the canteen and tell all employees to swap their punch card and issues lunch to them accordingly.
In this way at the end of the month you will get the entire report of how many employees have eaten food, snacks etc..
Hope it will help you.
Regards, Derek Gomes
17th September 2011 From India, Nagpur
Dear Jiten, Kannan, Akatrap, Derek, et al, On going through your problem and the suggestions being made, I venture out to add a few of my thoughts: It will not be possible every time to verify whether one has opted for tea or snack each time the item is served. Your concern as to whether it will work fine in the long run is real. Probabably you can serve one item at a time, tea and snacks could be served at different periods of time. On the other hand, there need not be any restriction, one can have both - tea and snacks. Management, as you pointed out, would be happy to pocket the difference between the money generated from the employees towards the items and the money paid to the canteen contractor. Employees also would be happy to get proper food and hopefully their worries are over on this account. Hence it is to be seen as to how to raise the satisfaction level although as per your agreement with the union there is no such need to serve both the items. The rate appears reasonable or rather comfortable, tea Rs. 2.5 to 3 and snacks @Rs. 8

Canteen, although is a hotbed of problems in many organisations, if managed well it could help much in increasing the productivity. Hence , for the latter objective you need to treat it as an investment and try to provide a satisfying response to the hungry employees.
18th September 2011 From India, Bhopal
Dear Mr. Jitendra,

Don't worry its not a big problem. You just go by following canteen process :

First you explain them that you will be entitle for on working days only.

Example, August Month = 26 Working Days, 4 Weekly Off, 1 Paid Holiday

So, if a price of Tea Rs.3 * 2 = Rs.6. Then Rs.6 * 26 = Rs. 156 per month.

Now, take a list of employees and calculate in following format -

EC No./ Name of Employee(s)/ Worked Days/ Amount.

As per above format distribute them in the next month of 10th. When you start this system employee will put their different issues like -

1. Night Shift Duty - Pay by Cash of Night Days only.

2. Sickness - Take Doctor's Certificate of a particular period and pay him in cash for such period only.

3. Ladies - Allow ladies 50% cash & 50% coupen

4. Outdoor Duty - Regular o/d employees will be paid by cash only.

In the future rates are increasing if you think employees are not being paid by minimum wage then add it in salary as Food Allowance and explain them -

- Its lead to increase in their salary which is good for their external personal purpose like bank loan etc.

- As increase in gross leads to increase in SBR rate of employee under ESIC. Hence if they get ill will be benefitted a good per day salary from ESIC.
18th September 2011 From India, Thana
Dear seniors, Please suggest how to make a canteen committee.
19th January 2017 From India, New Delhi
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