Context: Recently, the Chairman & Managing Director of Larsen & Toubro highlighted growing labour shortages in the Construction sector. He quoted that some workers are reluctant to relocate for work due to the availability of welfare schemes, which offer them financial security. However, this narrative oversimplifies the structural issues faced by the construction labourers.
Relevance of the Topic: Mains: Construction Sector: Current Status, Challenges & Way Forward
Construction Sector in India
- The Construction Sector is one of the fastest-growing industries in India contributing approximately 9% to the national GDP. The sector is projected to reach $1.4 trillion by 2025.
- By 2030, it is estimated that around 3 crore workers will be employed in this sector.
- The sector faces significant labour shortages, exacerbated by structural barriers to worker welfare and employment continuity.
Challenges faced by Construction Workers:
- Fragmented employment landscape: Construction workers, especially migrant labourers, endure a fragmented employment landscape characterised by frequent relocations, high job insecurity, inconsistent access to welfare benefits, and precarious working conditions.
- Seasonal employment disruption: Construction workers affected by seasonal employment disruptions (such as heat waves, ban on construction due to air pollution) struggle to access direct benefit transfers despite legal provisions. The lack of digital public infrastructure to facilitate rapid disbursement exacerbates their vulnerability.
- Lack of proper documentation required for welfare registration: Due to the transient nature of their work, many labourers lack permanent addresses, making it difficult for them to secure documents such as birth certificates, residence proofs, and rental agreements required to access welfare benefits.
- Poor Implementation of welfare provisions:
- State governments collect a 1-2% construction cess under the Building and Other Construction Workers (BOCW) Act, 1996 to fund worker welfare. According to a 2023 Parliamentary Standing Committee report approximately 75% of it remains unutilised.
- Employment Certificates proving 90 days of work per year are difficult to obtain, as contractors are often unwilling or unable to provide it, leaving workers unable to prove their eligibility for welfare benefits.
- Lack of Interoperable systems: Migrant workers often move across multiple States searching for employment, but the absence of interoperable systems means that benefits registered in one State cannot be accessed in another. This disrupts continuity in welfare delivery and discourages workers from registering altogether.
Way Forward
- Implement Unified National Labour Identification System similar to One Nation One Ration Card to facilitate inter-State portability of welfare benefits
- Link BOCW registrations with UAN (Universal Account Number) on e-Shram to facilitate seamless access to entitlements for construction regardless of their location.
- Digital Public Infrastructure for welfare access: State governments should adopt open-source digital platforms to improve the accessibility and efficiency of welfare schemes. Implement a centralised portal with standardised workflows to reduce administrative delays and enhance transparency.
- Simplified documentation by accepting alternative proofs, and relaxing the verification protocols to ease the process. State governments can facilitate bulk registration through on-site welfare camps to ensure that large construction projects maintain accurate worker records.
- Investing in skill development programmes for construction to address long-term labour shortages. A robust skilling ecosystem tailored to meet the evolving demands of the industry can enhance worker productivity and retention.
- Ensure a safe and dignified work environment to maintain workers’ health and efficiency.
Construction firms can play a key role by committing to both medium-term skilling initiatives and improved workplace standards, to create a more stable, skilled, and resilient workforce.
Also Read: The Problem Associated with the Indian Informal Sector
