Context
- Larsen & Toubro’s Chairman highlighted reluctance among workers to relocate due to welfare schemes offering financial security.
Construction Sector Growth & Labour Shortages
- Rapid Growth: Construction is India’s fastest-growing sector, contributing 9% to GDP and projected to reach $1.4 trillion by 2025.
- Increasing Workforce: Estimated 3 crore workers in construction by 2030.
Challenges Faced by Construction Workers
- Employment Instability: Workers, especially migrants, face frequent relocations, job insecurity, and precarious working conditions.
- Limited Access to Welfare Benefits: Despite the BOCW Act, 1996, workers struggle to access benefits due to documentation issues.
- Unutilised Welfare Funds: State construction boards have collected ₹70,000 crore in cesses, but 75% remains unutilised due to bureaucratic hurdles and fragmented worker databases.
Key Barriers to Welfare Access
- Documentation Issues:
- Many workers lack permanent addresses, making it hard to get ID proofs, birth certificates, or residence documents.
- ‘Employment certificates’ proving 90 days of work are difficult to obtain as contractors refuse to issue them.
- State-Specific Barriers:
- Benefits are not portable across States.
- Example: A worker registered in Haryana loses benefits upon relocating to Delhi.
- Delayed Financial Relief:
- Heatwaves and pollution-related construction bans leave workers jobless.
- Delays in Direct Benefit Transfers (DBT) worsen their financial insecurity.
- Lack of Digital Infrastructure: No centralised system for rapid disbursement of funds and tracking worker movements.
Proposed Solutions
- National Labour ID System:
- A portable welfare system like the One Nation One Ration Card scheme.
- Link BOCW registrations to UAN (e-Shram) for seamless access across States.
- Digital Platforms for Welfare Access:
- Centralised portal with standardised workflows to ensure faster welfare disbursement.
- Automated verification via Aadhaar seeding to reduce paperwork.
- Simplifying Registration & Documentation:
- Accept alternative proofs instead of rigid ID requirements.
- On-site registration camps for bulk enrolment of workers at construction sites.
- Skill Development & Workplace Safety:
- Industry-specific training to boost productivity and worker retention.
- Construction firms must ensure better workplace standards to enhance worker well-being.
Conclusion
- Systemic Reforms Needed: Labour shortages can only be addressed by fixing welfare access issues and ensuring employment continuity.
- Role of Construction Firms & Government: A combined effort is needed to improve skilling, working conditions, and welfare accessibility for a stable, skilled workforce.