The Barriers Faced by Construction Workers

Recently, Larsen and Toubro Chairman and Managing Director, N. Subrahmanyan, voiced growing concerns over labour shortages in the Construction sector.

Status of India’s Construction Sector

• Growth: Construction is the fastest-growing sector in India, contributing 9% to the national GDP and projected to reach $1.4 trillion by 2025. By 2030, around 3 crore workers are expected to be employed in the sector.
• Structural Challenge: However, concerns over labour shortages have been raised, notably by Larsen and Toubro Chairman N. Subrahmanyan, citing reluctance to relocate due to welfare schemes. 
  • This explanation, however, oversimplifies the deeper structural challenges faced by construction labourers.

Challenges Faced by Construction Workers

• Mobility Challenges: The fragmented employment landscape in the sector heavily relies on migrant labourers, who face challenges such as job insecurity, frequent relocations, and inconsistent access to welfare benefits.
  • Despite the BOCW Act, 1996, which aims to protect their rights, many workers struggle to access welfare benefits.
• Bureaucratic Apathy: ₹70,000 crore collected as cess by State Construction Boards remains underutilized due to bureaucratic inefficiencies.
• Documentation Issues: To access welfare benefits, workers must provide identity proof, date of birth proof, and residence proof. 
  • However, the migrant nature of their work means many lack permanent addresses, making document procurement difficult.
• Certificate Requirement: A 90-day work certificate is required for registration, but employers are often reluctant to issue it. 
  • While some states allow self-certification or trade union verification, the verification process remains inconsistent, making it difficult for workers to secure necessary documentation.
• Unutilized Funds: States collect a 1-2% construction cess under the BOCW Act, yet a 2023 Parliamentary Standing Committee report revealed that 75% of funds remain unspent due to:
  • Fragmented worker databases
  • Inconsistent verification protocols
  • Cumbersome registration processes
• Seasonal Vulnerabilities: Heat waves and pollution bans severely impact employment.
• Delays in Payment: Direct benefit transfers (DBTs) delayed despite legal provisions.
• Poor Infra: Lack of digital infrastructure hampers rapid fund disbursement.
• Inter-State Migration Challenges: Welfare benefits are non-transferable across states. Example: A worker registered in Haryana loses access to benefits upon moving to Delhi. 
  • This lack of portability discourages worker registration, leaving them financially vulnerable.

Way Forward

• Unified Identification System: Establish a centralised welfare database, similar to the One Nation One Ration Card scheme, for inter-State portability of benefits.
• Linkage: Link BOCW registrations to UAN (Universal Account Number) on e-Shram, ensuring seamless access to entitlements regardless of location.
• Digital Infrastructure: State governments should adopt open-source digital platforms to streamline welfare accessibility. A centralised portal with standardised workflows can:
  • Reduce administrative delays
  • Enhance transparency
  • Support Aadhaar-based automated verification
  • Enable real-time tracking of welfare disbursements
• Simplified Documentation: Relax verification protocols and allow alternative proofs for documentation. 
• Bulk Registration: Conduct on-site registration camps at large construction sites for bulk registration of workers. Reduce dependence on employer-issued certificates, ensuring accurate and accessible worker records.
• Skill Development: Robust skill development programs tailored to industry needs can enhance worker productivity and job retention.
• Safe Working Place: However, skills alone are not enough—ensuring safe and dignified working conditions is equally critical. Construction firms should commit to:
  • Long-term skill-building initiatives
  • Improved workplace standards
  • A more resilient and stable workforce

Conclusion

In conclusion, labour shortages cannot be addressed without acknowledging and resolving the systemic barriers to welfare access and employment continuity.