The Barriers Faced By Construction Workers

Construction workers face challenges like unsafe working conditions, low wages, job insecurity, lack of social security, and health risks, impacting their well-being and livelihood.

Table of Contents

Context: Larsen and Toubro Chairman and Managing Director, N. Subrahmanyan, stated that construction workers are hesitant to relocate for work because welfare schemes provide them with financial security. However, this view overlooks the deeper structural challenges faced by construction labourers.

Challenges Faced by Construction Workers

Fragmented Employment and Job Insecurity: Frequent relocations and seasonal work create instability.
- High job insecurity due to lack of long-term contracts.
Difficulties in Accessing Welfare Benefits: Despite ₹70,000 crore collected under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) (BOCW) Act, 1996, 75% remains unutilised.
- Lack of proper documentation (e.g., birth certificates, residence proof) limits access to benefits.
- Complex registration and verification protocols vary across States.
Challenges in Employment Certification: The requirement for a 90-day employment certificate is difficult to fulfill.
- Contractors often refuse to provide necessary certificates.
- Some States allow self-certification or trade union certificates, but employer verification is still required.

Fact

Under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (BOCW Act), workers are required to provide evidence that they have worked for at least 90 days in a year to register for welfare benefits such as:

Financial assistance during unemployment
Health and maternity benefits
Education assistance for children
Compensation for injuries or death at work

Lack of Inter-State Portability of Benefits: Migrant workers lose welfare benefits when they relocate to a different State.
- No interoperable system exists for transferring benefits across States.
Seasonal Employment Disruptions: Loss of income due to construction bans during events like air pollution or heatwaves.
- Delays and administrative hurdles in securing financial relief.
Absence of Digital Public Infrastructure: No centralised system for tracking worker data and disbursing benefits.
- Lack of real-time monitoring and automated verification systems.

Proposed Solutions

Unified National Labour Identification System: Create a system similar to the One Nation One Ration Card for inter-state portability of benefits.
- Link BOCW registrations to UAN on the e-Shram portal to enable access across States.

Fact

UAN stands for Universal Account Number, a 12-digit unique identifier assigned by the Employees’ Provident Fund Organisation (EPFO) to all employees contributing to the EPF.

Digital Platforms for Welfare Schemes: Develop a centralised, open-source digital portal for uniform registration and disbursement.
- Use Aadhaar seeding and real-time tracking to reduce delays and improve transparency.
Simplified Documentation and Verification: Accept alternative proofs like self-declaration or trade union certificates.
- Bulk registration can be conducted through on-site camps to ease the process.
Skill Development and Training: Establish skilling programs tailored to industry demands.
- Promote medium-term skilling initiatives to improve worker retention and productivity.
Improved Working Conditions: Ensure safe and dignified work environments to improve worker health and efficiency.
- Encourage construction firms to invest in better workplace standards.
Consistent Welfare Delivery Across States: Enable portability of benefits through integrated worker databases.
- Ensure that benefits registered in one State are accessible in another.