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INTRODUCTION
Labour is the backbone of industrial growth and economic development
of a country. It is the segment, which contributes most significantly to the
country’s Gross Domestic Product (GDP). A happy labour force is the base for
industrial peace, which in turn results in higher production and greater economic
activity. Realising this, Government of India has enacted several laws giving
protection to labour against retrenchment, employment injury, occupational
diseases, and economical and social distresses. But the benefits of these laws
have reached only to a small section of workers in the organised sector.
In India, out of an estimated work force of about 397 million1, only
around 28 million workers enjoy the benefit of formal social security protection.
Rest of the workers is in the unorganised sector. In the initial years of
development planning, it was believed that with the process of development,
more and more workers would join the organised sector and eventually get
covered by formal social security arrangements. However, experience has belied
this hope. Further, under the regime of new economic reforms, there was almost
a stagnation of employment in the organised sector with the resultant increase in
the inflow of workers into the informal economy.
Social Security is increasingly seen as an integral part of the
development process. It helps to create a more positive attitude not just to
structural and technological change but also the challenge of globalisation and to
its potential benefits in terms of greater efficiency and higher productivity. Thus,
Social Security has been recognised as an instrument for social transformation
and progress and must be preserved, supported and developed as such.
India, being a welfare State, has taken upon itself the responsibilities of
1 Report of the Working Group on Social Security for the Tenth Five Year Plan Government Of India. Planning Commission- 2001.
extending various benefits of Social Security and Social Assistance to its
citizens. The social security legislations in India derive their strength and spirit
from the Directive Principles of the State Policy as contained in the Constitution
of India. Although the Constitution of India is yet to recognise Social Security as
a fundamental right it does require that the State should strive to promote the
welfare of the people by securing and protecting, as effectively as it may, a
social order in which justice social, economic and political shall inform all the
institutions of national life.
The well designed social security system for the workers in the
unorganised sector will help in improving productivity, contribute to the
harmonious labour relations and thus to socio - economic development. It will
encourage and propagate the social peace by reducing the frequency of industrial
conflicts, increase the willingness to work, make it easier to meet delivery
commitments and lead to improved quality product, a better investment climate
and thereby enhancing the competitiveness of the economy. Effective
enforcement of Social Security Acts through institutional mechanisms would
impact on the level of trust and confidence of the working class.
In the last five decades, considerable progress in extension of Social
Security cover at both State and Central levels has been made. State
Governments like Kerala, Tamil Nadu and West Bengal have introduced social
security schemes providing insurance and other benefits to certain occupational
groups in the unorganised sector.
However, there is considerable controversy about the social and economic
effects of Social Security. Social Security is said to discourage people from
working and saving; and encourage people to withdraw from the labour market
prematurely. On the other hand, Social Security can also be seen to have a
number of very positive economic effects Provision of social assistance will
enhance their ability to contribute to the nation as well as their emotional
security which leads to increase their efficiency and productivity and enable
them to tide over periods of unemployment, sickness, accident or death coupled
2
with the promise of an assured monthly income to them and their family in old
age.
Social Security in India was traditionally the responsibility of the family
or community in general. With the gradual process of industrialisation and
urbanisation, break up of the joint family set up and weakening of family
bondage, the need for institutionalised and State-cum-society regulated social
security arrangement to address the problem in a planned manner, has been felt
necessary.
Eradication of poverty incidence remains a major challenge for the
planned economic development and the experience of India shows that different
states followed varied policies and principles for poverty reduction and
economic growth. The states like Punjab and Haryana followed the path of
agricultural growth and succeeded in reducing poverty and Kerala focused on
human resource development2. Though the state lags behind many of the Indian
states in the matter of economic growth, Kerala has a leading position among
the development experience of other states in India which is reflected in high
Physical Quality Life Index (PQLI), long life expectancy, low-infant mortality
and low-birth-death rate, high literacy rate etc.
Experiences of Kerala
Kerala, the southwest end of the Indian sub-continent with a relatively
low Per Capita Income (PCI); but with high degree of social development was a
matter of great interest to social scientist and administrators for the last three
decades. It has the second highest density of population (819 persons per
sq.km) among all states in India; the state sustains about 3.1 per cent (Census
2001) of the country’s population, even though its share in the geographical area
2 Dr.V.R.Vidyarthi-“Glimpses of Poverty-Poverty Alleviation in the Third World”-ed Dr.Sita Ram Singh, APH Publishing Corporation, New Delhi –2005, p-3.
3
is comparatively less (1.2 per cent). The declining trend of the rate of population
growth since 1981, a high average age at marriage, high level of acceptance of
family planning practices, a relatively low and slowly declining mortality rate,
low death rate, a high degree of population mobility and steady improvement in
the health indices of the state are comparable with that of even developed
countries.
The state is gifted with three resources; as the then Honourable President
of India noted when he visited Kerala in connection with the celebration of 50 th
Anniversary of the State. The state is known for its vast reservoir of an educated
labour force; a sizeable number of work force working in the gulf countries
and other western countries; there by earning a substantial amount of foreign
exchange for the country by way of inward remittances.
Workers belonging to the unorganised sector also dominate labour market
in Kerala as elsewhere in India. The total workforce in Kerala as per 2001 census
is 10.3 million; out of these only 12.8 per cent work in the organised sector; the
remaining 87 per cent of labour force work in the unorganised sector. Further,
like other parts of the country, consequent upon the economic reforms initiated
by the Government in 1991, significant number of organised labour has been
transferred to the unorganised sector from the organised sector.
The State of Kerala is a pioneer in putting in place formal structures for
administering social security schemes that are relatively more comprehensive
and advanced than those in other states. The formal social security system in
Kerala was established with the founding of the Kerala Toddy Workers’ Welfare
Fund Board in 1969. Even before this, there have been informal systems in the
form of mutually beneficial collective care arrangements by trade unions and
workers to cover the contingency of risks and uncertainties.
Trade unions have been a dominant presence among the political
leadership and their struggle for providing income security, work place security
and social security to workers has largely been successful in Kerala. Over the
4
last 30 years, around 4.9 million workers have been covered by social security
systems. This is a significant number; given the total unorganised workforce is
around seven million. Kerala is implementing labour laws for workers’
protection, primarily through the Labour Department headed by the Labour
Commissioner
While the Labour Department undertakes the enforcement function for
ensuring compliance with these laws, there is also a very high degree of public
scrutiny through trade unions, the media and political parties as well as informed
public opinion.
Thus, the Kerala model of development accords a prominent position to
providing security to the working population in the informal sector. At present,
there are 24 Welfare Fund Boards run by Tripartite Boards consisting of
representatives of workers, employers and the government. In most Boards, the
Government has retained the powers to give directions on policy matters. While
successive state governments continued to earmark substantial resources and
efforts to strengthen the Welfare Fund system, the present crisis afflicting many
of the Boards needs to be seen as an opportunity to reform the system. Even
though the efforts made by Kerala in the field of social services sector is
laudable and appreciable; several questions arise now, such as approach,
coverage, real content of the scheme, financial aspects, future operational
efficiency and its impact on the workers. By following a development policy
entirely different from that of the other states in the country, the maintenance
and improvement of the quality of social services in Kerala have become
extremely difficult.
Though Kerala has been highlighted as the state with the most advanced
social security system in India, the system now is not satisfactory or completely
in good health. Often the welfare funds were set up hastily in a “reactive mode”
on the basis of keenly felt political pressures from trade unions. Consequently,
there has been little analysis of the long-term sustainability of the schemes on an
actuarial basis. Often, the government without adequate study of long-term
5
viability draws up the scale of contributions and benefits that some of the
welfare fund boards run into difficulties. The iniquitous scale of government
contributions, reluctance on the part of the employers to honour their statutory
payment obligations, burgeoning administrative cost, bureaucratic apparatus of
the Boards, lack of professional fund management expertise, wide variation in
the basic lifeline benefits provided by various welfare schemes, fraudulent
memberships by workers from other non-related sectors etc add problems in the
administration of these welfare schemes.
The Research Problem
As stated earlier, Kerala when compared to other states in India is in the
forefront with regard to the indicators of social development and quality of life.
It is a fact that the establishment of Welfare Fund Boards has been a major
landmark in the Labour welfare legislations in Kerala and the institutions
constituted under them seem to have had a major impact on the informal labour
markets of the State. They are also supposed to have added a new dimension to
the social security system of Kerala. Yet, several issues involved in providing
social security to workers in informal labour markets appear to have not received
the attention they deserve.
Realising the need for Social Security Schemes for the unorganised sector
workers Kerala Government has initiated several progressive measures to
provide Social Security to workers in the unorganised sector such as agricultural
workers, toddy workers, cashew workers, construction workers etc. Among
these Kerala Building and Other Construction Workers Welfare Fund Board
(here in after called KBOCWWFB or the Board) is unique in nature and worth
emulating for other unorganised sector workers. Implemented in 1990, the Board
has so far covered 14 lakhs employees out of 16 lakhs working in the
construction sector. Even though the coverage is satisfactory to a certain extent,
there is conflicting views regarding the impact of the scheme on the employees
6
and the way the schemes are implemented. Hence an attempt to evaluate the
working of the scheme and its impact on the socio economic fabric of
construction workers in Kerala is in order. As the board has been functioning in
the state for the last 18 years, a performance study at this stage will help to
identify the inherent flaws of the scheme and inadequacies in its planning and
design.
Scope of the Study
The performance evaluation of any Welfare Fund Board has to consider
the services rendered by it to the ultimate beneficiaries. The sustainability of any
welfare scheme mainly depends on the state of its receipts and disbursements. In
this respect there is no need for fear in the case of KBOCWWFB if the cess
collection is effective and the fund management is efficient. But a closer look at
the data on disbursements, especially their trends, reveals certain disturbing
tendencies. Apparently disbursements are growing at a pace more rapid than that
of receipts. These trends call for a detailed examination of the source of income
as well as items of expenditure. It would be useful if we make projections of the
incomings as well as outgoings of the Board to examine how they would sustain
over the long run. Incidentally, there seem to have scope for improving the
proceeds from some of the sources including contributions from employers. The
scope for regulating the outflow of disbursements as well as of administrative
expenditures also appears to be not too insignificant. The study would make an
attempt to analyse the activities of the Board from the point of view of the
workers. A comparison of the living conditions of members of the
KBOCWWFB with those of non-members would help us understand the
attainments of the Board as well as its shortcomings
The success of a welfare fund board has to be evaluated not merely on the
basis of number of members enrolled to it but also on the basis of the impact it
has made on the socio economic conditions of its beneficiaries. Review of
7
literature on various aspects of the construction sector and the social security
schemes shows that a number of studies have been undertaken earlier. But no
serious efforts were ever made to study the functioning and effectiveness of the
Board and the impact of various welfare schemes adopted by it.
This study aims to fill this gap. It proposes to investigate the effectiveness
of the welfare measures implemented by KBOCWWFB and its impact on
the living and working conditions of construction workers in Kerala.
Objectives of the Study
Against this background, the following objectives are set for the purpose
of the study
1. To make an overview of the evolution and growth of social security
schemes in Kerala.
2. To expose the socio economic conditions of construction workers in
Kerala
3. To analyse the structure and functioning of Kerala Building and Other
construction Workers Welfare Fund Board (KBOCWWFB)
4. To analyse the consequences of the implementation of the scheme and
evaluate the role of the Board in uplifting the socio economic conditions
of its members.
5. To attempt an empirical investigation of the nature and trend of benefits
to the registered members of the Board.
6. To analyse whether the members are satisfied with the service of the
Board
7. To examine critically the role of trade unions and its leaders in enrolment
and disbursement of the benefits of the Board.
8. To identify aberrations, if, any, in the working of the Board and to make
8
suggestions in the light of findings to improve the work efficiency and
services of the Board.
Hypotheses Formulated
On the basis of the above objectives, the following hypothesis have been
formulated and tested: -
1. The Board has succeeded in bringing the majority of the workers under
the coverage of the scheme.
2. The growth of the resources of the Board is in tune with the increase in
the number of members enrolled and increase in liability
3. The Board has been successful in implementing its welfare schemes
among the members.
4. Trade union leaders have significant role in enrolling workers to the
Board.
5. Only workers in the construction sector are enrolled to the Board
6. The Board members are not at all satisfied with the services of the Board
Period of Study
The period of this study covers the whole life of the Board since its
inception in 1990. However, the fieldwork for the study was conducted during
2005-2007.
Methodology
This being an impact study, a comparison of various parameters on a
member-non-member basis was looked into. To analyse the regional differences,
a district wise comparison was also made. To pinpoint the impact of the Kerala
Building and Other Construction Workers Welfare Fund Board (KBOCWWFB)
9
on its members, a comparison of Tamil Nadu Construction Workers Welfare
Fund Board (TNCWWFB) and Kerala Board on selected parameters were also
tried.
Data Collection
Both primary and secondary data were used for the present study.
Primary data
The present study is mainly based on primary data. A well-drafted
interview schedule was used to collect data from the respondents. Pre-testing of
the schedule was conducted by administering it on a small sample in
Malappuram district. The interview schedule was modified in the light of the
suggestions received. The modified interview schedule is given in the Appendix
IX.
The first part of the interview schedule evaluates the socio–cultural,
educational and family background of the construction workers and the second
part is entirely devoted to questions, which indirectly measure the impact of the
Board on its members.
Primary data for the study were collected from the construction workers;
both members and non-members. The primary data were supplemented by
collecting information through interviews with trade union leaders, contractors,
architects and engineers who are associated with construction work. In addition,
information was also gathered by holding discussions with members and
Chairman of the Managing Committee of the Board and other Officials.
Secondary Data
This being a case study, the performance and functioning of the Board
was primarily analysed by collecting secondary data from the offices of Kerala
10
Building and Other Construction Workers Welfare Fund Board, Tamil Nadu
Construction Workers Welfare Fund Board, offices of other Welfare Fund
Boards in Kerala, Labour department; Government of Kerala, the publications
and records of various trade unions, Department of Economics and Statistics,
Kerala Planning Board and other related agencies.
Sampling Frame
Four districts were selected for the purpose of the study. The districts
selected were Thiruvananthapuram (Trivandrum) as the capital of the state,
Ernakulam as the district in which construction activities take place on a mass
scale, Malappuram as the district where the people spent a major portion of their
earnings from gulf countries on construction activities and Wayanad as the
district having least construction activities and lowest number of membership in
the Welfare Fund Board. Stratified random sampling technique was used for the
purpose of the sampling. The sample size is selected under proportional
allocation method. As the districts having construction activities on a large
scale, equal number of members and non members -300 members and 300 non
members were selected from the districts of Thiruvananthapuram, Ernakulam
and Malappuram, and as a district having the least construction activity, only
100 members and 100 non members were selected from Wayanad.
Even though the Board classified the workers in 26 categories, for the
purpose of this study, the sample workers, both members and non-members were
categorised into 7 - Masons, Carpenters, R.C.C. workers, Wiremen, Painters,
Helpers and Others.
Method of Analysis
The data collected from the sample workers were analysed on a member
-non member basis. To pin point the regional differences a district wise analysis
was also attempted. For the purpose of analysis of the collected data, simple
11
mathematical and statistical techniques like percentages, averages, ANOVA,
CAGR, Standard Deviations etc were used. For analytical purpose of primary
data Microsoft Excel and Statistica software programme have been used. The
statistical technique of Chi-square test was used to analyse the significant
difference of various parameters between the members and non-members as well
as among different districts. Charts, graphs, diagrams etc were also used for a
clear presentation of the report.
Definitions of the terms used
1. The Board: The Kerala Building and Other Construction Workers
Welfare Fund Board, constituted as per The Building and Other
Construction Workers (Regulations of Employment and Conditions of
Service) Kerala Rules3 1998.
2. Member: A construction worker who has enrolled to The Kerala Building
And Other Construction Workers Welfare Fund Board
3. Non-member: A construction worker who has not enrolled to The Kerala
Building and Other Construction Workers Welfare Fund Board.
4. Welfare Fund Schemes: Welfare Fund Schemes under the Kerala
Building and Other Construction Workers Welfare Fund Board for the
construction workers.
5. Construction Worker: Any person who is employed for wages to do any
work in connection with a construction work and who gets his wages
directly or indirectly from an employer or from a contractor including
supply of materials for construction works.
Presentation of the Study
3. Published in Kerala Gazette Ex No-1366 dt 17-8-1998, as SRO No 720/93 & G O (P)No.53/98/LBR dt 14-8-1998.
12
The whole study is presented in seven chapters. Chapter II contains a
theoretical framework of the construction workers and an overview of the
evolution of the Social Security Schemes. Since the study is about the
functioning and impact of the KBOCWWFB, an understanding of general
profile of the Board will be of immense use in analysing its effectiveness.
Hence, Chapter III portraits the nature and characteristics of the Board.
A bird's eye view of the sample members and non-members is a pre-
requisite for analysing the impact of the Board on its beneficiaries. Hence
Chapter IV contains a macro picture of the respondents –both members and non-
members. To assess the impact of the Board on the socio economic development
of construction workers, an empirical investigation is undertaken in chapter V.
Chapter VI analyses the major welfare benefits given by the Board and the
extent of benefits received by the sample member- respondents.
Chapter VII, being the concluding chapter gives the major findings of the
study. It also gives valuable suggestions for further improvement of the
functioning of the Board.
Limitations of the Study
The present study was carried out by designing an exploratory method.
Excessive dependence was required on primary data collected from the workers.
There was no alternative available rather than relying up on their responses.
The primary data elicited from the respondents were based on recall
methods and are therefore, subject to normal recall errors. Since no other
systematic records were available to counter check the accuracy, the data
supplied by the respondents had to be solely depended up on for the purpose of
the analysis. However, the collected data have been cross checked with some sub
questions to establish the reliability.
13
The impact of the board on the socio economic conditions of construction
workers have been analysed and reported in the study. To that extent it suffers
from all the inherent limitations of a sociological survey. Some of the
respondents, especially the members were reluctant to part with information such
as nature of work, years for which premium paid, source of information relating
to the Board etc due to the fear of loss of membership.
The entire socio economic progress of the members cannot be attributed
to Welfare Fund alone. Due to non-availability of reliable data, the Tamil Nadu
Board and Kerala Board comparison could not be made in a proper way.
The study is also confined only to four sample districts. Hence unlimited
generalisation might lead to wrong inferences.
The books, accounts and records of the Board were not maintained
systematically and under double entry system, hence the numbers and amounts
may not be accurate.
However, within these limitations, sincere efforts have been made to
analyse the functioning of the Board and its impact on the members. It is hoped
that the study will bring light into the flaws of the functioning of the Board and
its attempts to uplift the other wise down trodden section of the society.
Review of Literature
A large volume of literature is available, both at national and international
levels, on the various aspects of social security schemes, welfare measures,
characteristic features of construction industry and problems of construction
workers, in the form of books, articles, newspapers, research papers, comments
and criticism. A brief review of the same is given under.
International Studies on Social Security Schemes
Many of the studies both in developed and developing countries relate to
the social security schemes in the formal sector. Hardly any concerted attempt
has so far been made to study the working of social security schemes in the
14
unorganised sector.
Studies on Social Security measures in western developed countries show
that Social Security measures are at a much-advanced stage in these countries.
However, some studies in these countries also revealed that the major issues
confronted by them center on relentless upsurge in the cost of social security
schemes and its negative economic impact on labour supply, saving and
investment.
James Midgley (1984) analysed the role of social security schemes in
developing countries from an egalitarian angle and found that the prevailing
Social Security Schemes in developing countries cover only a small portion of
the total labour force and majority of the workers working in the unorganised
sector are excluded. He argues that unless the Social Security Schemes are
extended to cover informal workers as well, it would accentuate the existing
inequalities.
Willenskey, H and C. Labeaux (1918) in their study on Industrial Society
and Social Welfare emphasised the need for social welfare in an industrial
society for or improve the economic conditions, health and interpersonal
competence of the workers.
Wadhavan, S. K. (1989) while studying the social security for informal
workers in India found that developing countries are too poor to replicate the
complex and expensive programme of social insurance and income maintenance
that now form the backbone of social security schemes in the rich countries
Osman.S.R. (1988) in a study on social security in south Asia attempted
to analyze the various poverty alleviation programmes implemented in
developing countries with the objective of offering social security.
Amartya Sen, and Jean Dreze (1989) have emphasized the role of public
action in Social Security Programme in developing countries as an alternative.
The contention of the study is that public action is “neither just a matter of state
15
activity, nor an issue of charity, nor even one of kindly redistribution”. The study
emphasized the protective and promotional role of social security schemes in
poor countries. The life of billions of people in poor countries are “nasty”,
‘brutish’ and ‘short’ but also full of uncertain horrors like epidemics, famine,
and unemployment, which can plague masses into extreme deprivation and
insecurity.
In another study Amartya Sen and Jean Dreze (1990) state that security of
needs like food, health care, housing and child care, is empowering for
vulnerable unorganised sector workers and helps them to alter their bargaining
positions in the market
Burges and Stern (1991) have identified that greater incidence and
severity of deprivation, low level of development of formal security systems,
limited or inappropriate coverage of public support, resource constraints, low
level of institutional development for social security practices and relative
powerlessness and vulnerable ness of the poor are the factors which continue to
make the problem of social security in developing countries both impracticable
and difficult. The study also emphasise the role of public action for social
security schemes in developing countries and postulated that it is neither feasible
nor desirable for the state to be the sole provider of Social Security. The other
agencies like family, community, financial and religious organisations and
groups also have a significant role to play.
Atkinson A.B and John Hills (1991) identified the measures emerged as
components of Social Security Schemes in developed countries and investigate
the relevance of experiences of developed countries to the strategy of social
security in developing countries. They bring out how Social Security Schemes
have evolved in developed countries, whether they are replicable in developing
countries or else what social security lessons can be drawn from them.
Ahmad, E. (1991) explains the major problems and difficulties in
implementing social security schemes in developing countries.
16
Hussain Athar (1991) made an effort to study the social security
programmes in China and revealed that the system suffers mainly from two
problems. Firstly, it largely takes the form of ‘occupational welfare’ based on
working units and not the welfare of the society and secondly, labour insurance
which is the main component of the system does not contain the whole labour
force; as self employed practically lack this protection.
Sankaran T. S, Subrahmanya R. K. A, and Wadhawan S. K. (1994), under
lined the protective measures through Social Security Programmes in developing
countries which consist of welfare schemes by which the State provides the
means of livelihood when a person is not able to work
Subrahmanya made an attempt (1994) to define the concept of social
security in its broadest sense and from the society’s point of view, as the support
provided by the society to the individual to enable him to attain a reasonable
standard of living and to protect the standard from falling due to any
contingency
Vander Linden and Marcel Vander (1996) made a historical review of the
evolution of various mutual social security schemes in Peter Lang, Berue and
found that mutual benefit societies played a dominant role in the formation of
social security schemes.
The World Development Report of 1997 holds the view that social
security is an essential ingredient in the protection, development and full
utilisation of human resources, and should, therefore, be looked upon as an
‘investment in the development of human resources.’ It further distinguishes
between the development of human resources and human development, and
argues that the expenditure that a society or state incurs to provide basic social
security is essential both for the development of human resources and ‘human
development.’
Johan Verstraeten (1997) , President of the International Social Security
17
Association (ISSA) , said that ultimate goal of social security should be to move
from basic minimal protection of some residents to a much more ambitious
promise of benefits, adequate and universal coverage for all residents; because
the objective of social protection is not only subsistence, but social inclusion and
the preservation of human dignity.
Ghai, D (1997) summarised the successful experience of social security
schemes and pin pointed its role in the transformation of the society into a
civilized one. Renée van Wirdum (1998) in a Netherland study reviews the
changes taking place in social security sector of Netherlands.
James Midgley (1999) asserted that social security has become irrelevant
under the contemporary economic and social realities and put a proposal for the
abolition of social security and its replacement with commercial provision. In
some countries, Social Security has already been extensively privatized. Instead
of dismissing the claim that social security has become irrelevant, this article
examines the views of social security's critics. It suggests that steps need to be
taken to address their challenge and ensure social security's long-term survival
The study by Johannes Jutting (1999) states that the western approach of
enlarging state -based social security schemes in developing countries in order to
achieve universal coverage has been a failure due to their inadequacy and
inefficient programmes in dealing with socio-economic realities in these
countries. The study identifies the major reasons for the failure of the state and
the market failure in providing social security in these countries. The study
recommends for a public-private partnership in these area. The study also
compares the development of social security schemes both in developed and
developing countries and reports that in industrialized nations more than 90 per
cent of the population is covered by various forms of state or market organised
social security schemes. However, in developing countries, despite considerable
effort on the part of development institutions and policy makers, over 50 per
cent of the population remain uncovered against basic risks
18
Colin Gillion (2000) makes a critical examination of the approach of the
ILO towards social security and values the reforms and the development of
pension schemes in the social security sector.
Deborah Kasentein (2000) points out the efficiency and equity costs of
ignoring gender and non-formal social security systems and proposes action for
policymakers in Africa.
John Dixon (2000) rank social security systems in 172 countries using a
comparative evaluation methodology that enables an assessment to be made of a
country's statutory social security intention. The study found that while seven of
the ten best-designed social security systems in the world can be found in
Western Europe, Australia has the best-designed one.
Warren McGillivray (2001) while studying the Implications of
Contribution Evasion of social security pension schemes looked into the nature
of contribution evasion and identified the reasons of contributions evasion. He
described the possible practical measures to promote compliance and also
outlined the dangers of contribution evasion to participants and to the State as
well.
Irudaya Rajan.S (2002) discusses the social security programmes for the
disadvantaged elderly population in the unorganised sector in three South Asian
countries, India, Sri Lanka and Bangladesh.
Roddy McKinnon (2004) in his study on the role of International Social
Security Association (ISSA) argues that the ISSA should assume a more active
and vocal position in promoting a central role for large-scale and compulsory
social security within an emerging international-organization.
Studies in India on Social Security Schemes
Social Welfare Scheme have a place of paramount importance in the
national economy in securing the financial security of their members. Social
19
security for workers in the unorganised sector is a subject that has received
growing research attention in India. The available studies mainly cover the
formal Social Security programmes. The concept of social security in the
informal sector is of recent origin. Very few studies have been made and that too
on a restricted basis the published literature on the subject is limited to a few
government reports and articles only.
It may be noted that though studies on social security in general are
numerous, studies on the impact of Welfare Fund Boards on the workers are
scanty.
Constitution of India
Article 12 – ‘The right to social security’ says the Contracting Parties will
undertake (1) to establish or maintain a system of social security (2) to maintain
the social security system at a satisfactory level at least equal to that required for
the ratification of the International Labour Convention (No. 102) concerning
Minimum Standards of Social Security and (3) to Endeavour to raise
progressively the system of social security to a higher level.
The right to social and medical assistance as defined in Article 13 also
requires the Contracting Parties to undertake, inter alia;
(i) To ensure that any person who is without adequate resources and who
is unable to secure such resources either by his own efforts or from other
sources, in particular by benefits under a social security scheme, be granted
adequate assistance, and, in case of sickness, the care necessitated by his
condition.
(ii) To ensure that persons receiving such assistance shall not, for that
reason, suffer from a diminution of their political or social rights;
(iii) To provide that everyone may receive, by appropriate public or
private services, such advice and personal help as may be required to prevent, to
20
remove, or to alleviate personal or family wants;
There are International and Inter-Governmental declarations like the
Universal Declaration of Human Rights and the Covenant on Social Economic
and Cultural Rights, which define social security as a ‘human right’ or, a
fundamental right of the human being. The Government of India also accepted
this Covenant, which inter alia, recognises the right of everyone to social
security including social insurance.
Johri C.K and S.M. Pandey (1972) in a sample survey in Delhi found that
extension of social security to the unorganised sector was not merely a matter of
extension of existing organised sector schemes to new groups but it involved
development of a different and more diversified set of schemes. They came to
the conclusion that the entire structure of employment relationships in the
building industry is caught in a social framework of mutually reinforcing vicious
circles. Workers are exploited because they are illiterate, socially backward,
unskilled, unorganised, uninformed and poor. The industry functions at low
productivity because the technology it employs is among the “most backward in
the world”. However, they observe that although relationships are exploitive,
they work.
Studies by Nagarajan N (1978) and Sinha P.K (1980) expose inherent
flaws in the Social Security Schemes for the formal sector. This study also found
that formal Social Security Schemes cover only 12 per cent of the labour force
and remaining 88 per cent of workers in the informal sector are not getting the
benefits of these schemes. Social Security Schemes account for only 2 per cent
of the value of the products or 2.2 per cent of the cost of the products. In the cost
only 16 per cent is borne by the employer. They also point out other weak points
like mass scale evasion of providing benefits especially in the case of workmen
compensation schemes, inadequate and inefficient administration, ignorance of
the workers, clumsy and defective methods of settlements and providing
benefits.
21
Jayadevadas N (1980) in his study suggested that the model before the
trade unions in Kerala was that of modern industrial employment characterised
by high wage rates, stable employment, fair working conditions, non-wage
benefits (social security), and long-term economic security
Thakurtha, Guha. S. N. (1980) argued that under the given multiplicity of
sectors, and employment and socio-economic patterns in each State, as well as of
grassroots organisations and NGOs, it is undesirable to impose uniform patterns
on social security systems
Pandey, Amarkant (1987) studied the earnings and patterns of
employment of construction workers in Raipur City
Guhan .S (1988) observes that the prevailing Social Security Schemes
cover only the workers in the organised sector, who enjoy security of
employment and regular incomes. Self employed and informal workers who
constitute nearly 90 per cent of workers virtually remain outside the purview of
prevailing schemes. He also observed some defects of the Social security
schemes in India like limited coverage, administrative lapses, evasion, defects in
legislation, difficulties in enforcement, delay or denial of benefits to entitled
persons. The social assistance schemes like old age and destitute pension, which
are specifically designed to provide benefits to those below the poverty line, also
suffer from various shortcomings of limited coverage and wide variation across
the state.
Vanitha, B (1991) in her study underlined the necessity to extent various
social security provisions to the unorganised sector
Sankaran.T. S. (1993) attempts a critical review of the measures taken by
the Central and State Governments to provide social security cover to rural areas
and the informal and unorganised industrial sectors. In his study he holds the
view that in India social security legislation cover only 10 per cent of the labour
force and the rest 90 per cent is in the unorganised sector who are deprived of
22
the benefits of the labour legislation. The study finds that the state of Kerala has
a wide range of schemes and regulations for the benefit of labourers in the
unorganised sector. The study suggests the examining of the overlapping of the
functions of various welfare schemes and keeping the administration cost with in
the limit.
Guhan, S. (1993) gives some models for the feasibility of social security
schemes in India.
Unnithan K J (1998) in his article states that even though the Central and
State Governments have introduced a number of welfare schemes for the
upliftment of labour force in India, only few welfare funds benefited the workers
like Toddy, Motor, Abkari. The study suggests that systematic micro level
evaluation of the welfare funds are to be made by conducting performance
appraisal.
Mahendra Dev.S (1999) in his study observed that the poor in developing
countries suffer from various kinds of social insecurity. The study stressed the
need for both promotional and protective measures of social security. The study
also evaluated the social security policies in India and their financing pattern. It
was concluded that these social measures are not effectively filtered down to the
poor.
Irudaya Rajan.S (2001) in his study reveals that the social assistance
measures like National Social Assistance Scheme and its components such as
National Old Age Pension Scheme, National Family Benefit Scheme and the
National Maternal Benefit Scheme have given a long way towards improving the
lot of the elderly poor. He suggested that the unorganised workers can organize
themselves so that they themselves can plan for their future.
The study of Mahendra Dev.S, Piush Antony, V.Gayathri and
R.P.Mamgin (2001) covers a wide range of issues bearing on social and
economic security of the workforce. In another study (2001) Mahendra Dev.S,
23
makes a critical appraisal of different kinds of social security systems in India.
Harindra Ksihor Misra (2001) in his paper established that the social
security programmes in India had been a mixture of schemes covering only less
than 10 per cent of its working in the organised sector and thus the unorganised
sector remained totally unprotected.
Vipla Chopra (2001) stated that efforts should be made to bring the poor
and vulnerable sections of labour employed in the unorganised sector under the
protective umbrella of the state provisions of social security. Further, there was
a need to bring about integration amongst the various social security schemes.
Aswathi.P.K and Jogenthra Pathak (2001) in their article on social
security for workers in the unorganised sector stated that despite the working of
a number of promotional schemes such as distribution of surplus land under
Land Reforms Act, Poverty Alleviation Programmes, Group Insurance, Old Age
Provision, family Welfare Schemes etc their impact on the vulnerable section
could not be claimed to be successful in achieving the objectives for which these
schemes are meant. This was mainly due to lack of co-ordination and financial
constraints and also the untimely narrow outlook of workers. Improvement of
welfare measures and enhancement in skill to augment better productivity were
found to be the key factors for developing a coherent framework for social
security in the unorganised workers.
Madhavi.P (2001) in her study of Self Help Groups analysed the
usefulness of the SGSY (SwarnaJayanthi Grama Swarozgar Yojana) as a social
security measure to the poor people.
Thakur and Ratnam (2001) made a theoretical appraisal of the various
legislations relating to the social security in the organised sector. The essay on
financing Social Security by Prabhu and Iyer (2001) focus on financing of social
security measures.
Mirai Chatterjee (2001) pointed out some defects of the social security
24
system in India. According to him, there are numerous schemes for social
security and social protection in India with rather uneven or limited
implementation. Even after all these years of experience, we have not been able
to develop appropriate mechanisms to ensure implementation of social security
services and proper outreach and coverage for our poorest citizens, especially in
the rural areas
Bharathjun Junwala (2004) argued that the welfare schemes, which are
difficult to implement especially in the unorganised sector and benefit only to
bureaucratic officers, shall be abandoned. In case of urgency workers may
approach their family or community.
The 2nd Asian Pacific seminar on Construction Workers Problems and
Future Tasks (2004) made an attempt to bring out many information covering
the entire Asia-Pacific Regional problems of construction industry, workers,
activities of trade unions and published a booklet on the problems of
construction workers covering various aspects like attack of liberal policies on
organised sector and unorganised sector, occupational health and safety
problems and problems and solutions of migrant labour. The globalisation in all
its manifestations continues to have a dramatic impact in the Asia-Pacific region,
and construction industry like other finds itself under external pressures and
subject to changes. The seminar also discussed the impact of new technologies in
the construction sector and found that rapid technological change, which
occurred in our country, has been uneven creating some socio-employment
consequences.
Debi S.Saini (2005) analysed some of the key issues in the working of the
social security laws in India and the extent to which they address the question of
social protection in the country
A study by D.Rajasekhar and S.Madheswaran (2005) shows that most of
the workers in Karnataka could not access the statutory benefits provided under
Beedi Workers Welfare Fund.
25
Studies on Construction Workers
Rosenthal, B.G. (1990) made a qualitative study of the construction
industry and observed the perception and attitude of unemployed young people
about this industry.
Assaad Ragon.A. (1991) states that demand instability compels large
construction firms to limit their employment to a small core of stable workers
and depend on sub contractors for the bulk of their labour needs. Sub
contractors make use of their social networks and personal ties to ensure reliable
access to a flexible work force
Devenco (1993) makes a survey to assess the training needs and
manpower requirements in the construction industry of Sri Lanka. Federle,
M.O., Rowings, J.E. and DeVany, T.S. (1993) in their study give a draft model
of career choice for the craft workers in the construction sector.
Blackmon R.B.; Gramopadhye A.K (1995) recommend the need to
provide positive feedback on back up to improve safety in construction sector.
Agapiou, A., Price, A. and McCaffer, R. (1995) in their study see a good
future for the construction sector in U.K and advice the authorities to plan the
future construction skill requirements, understanding labour resource issues, and
forecasting the supply of construction skills.
Michael Coffey 1 and David Langford (1998) examine the propensity of
employee participation in electrical and mechanical trades in the construction
industry and this report explored whether a propensity for participation exists in
the construction industry, and if so, how significant is it. The conclusion is that
there are no inherent reasons that prevent participation being successfully
applied in the construction industry.
Jayawardane A.K.W. and N.D. Gunawardena (1998) address human
resource development (HRD) issues in the Sri Lankan construction industry.It
26
reports an analysis of the occupational structure and characteristics of the
construction work force as an aid to meeting the challenges of maintaining a
skilled craft work force.
Guang-Xiang Chen and David E. Fosbroke (1998) assess the cause- and
occupation-specific risks of work-related fatal injuries among United States
construction workers. This study is the first to provide a comprehensive national
profile of work-related fatal-injury risks among United States construction
workers by occupation and cause of death. The results were useful in focusing
research and prevention efforts on specific hazards in high-risk construction
occupations.
Richard Neitzel, Noah S. Seixas, Janice Camp and Michael Yost (1999)
make an assessment of occupational noise exposures in four construction trades.
These data provide substantial documentation that construction workers in
several key trades are frequently exposed to noise levels that have been
associated with hearing loss, and demonstrate the need for targeted noise
reduction efforts and comprehensive hearing conservation programs in the
industry.
John M. Dement and Hester Lipscomb (1999) analyzed the workers’
compensation claim incidence density rates in North Carolina residential area
during 1986-1994
Hester J. Lipscomb, John M. Dement, and Rosa Rodriguez-Acosta (2000)
document a number of studies, conducted on the basis of analyses of death
certificate, found excess accidental and violent deaths among construction
workers.
CristoÂbal Mendoza (2000) in his article explored the issues for the
construction sectors in Portugal and Spain. Construction is a key industry for
both economies and one that employs substantial numbers of African workers.
Yet its structure varies considerably depending on national economic
27
circumstances. The cross-border comparison reveals the different role played by
immigrants in the construction industry on either sides of the border
Linda A. Merlino, John C. Rosecrance, Dan Anton, and Thomas M. Cook
(2003) in their study found that musculoskeletal disorders (MSDs) are a major
cause of work-related disability and lost-time illnesses for many occupational
groups. This study determined the prevalence of musculoskeletal symptoms
among young construction workers.
Mark Erlich and Jeff Grabelsky (2005) in their study found the decline in
union density, the drop in construction wages, the growth of anti-union forces
and the changes in labour force demographics. This study proposes strategies for
building trade unions to reassert their presence and power.
Rabindra Nath Roy (2004) describes the experiences of construction
workers in Bangladhesh. The conditions of construction workers are not
different in Bangladhesh. A huge number of workers are finding work in this
sector, but they are the most destitute. It is firstly because they have no strong
nationwide organisation. Secondly, under the existing labour laws they cannot
enjoy any right. They are not even recognised as workers by that law.
Mick Buchan, CFMEU, Australia, (2004) studies the effects of migrant
construction workers in the Australian construction industry and the difficulty of
organising construction workers to the trade unions.
Aaron Cartledge, CFMEU, Australia (2004) analyse the major changes
that have effected the Australian construction industry and the response of trade
unions towards the introduction of new technology.
The Government as well as the Builders Association of India, the
institutions like NICMAR, HUDCO, Engineering and Technical colleges etc
have undertaken research and development activities in all spheres of
construction activities. However, the bulk of construction workers remain
unaffected by these developments.
28
Rao G. N. and K. P. Deo (1979) based on their study on building
industry, observed that self-help organisations constitute the sole agencies,
which guarantee the minimum standards of social and economic security to
workers in non-traditional and informal sectors of the society
Hema Nair (1988) provides useful information on construction labour in
Delhi and Bombay and observed that provisions of Contract Control Rule (1971)
are flouted everywhere .She goes through a day in the life of Nagamma; a
migrant construction worker. Being a temporary worker, Nagamma receives no
benefits such as paid leave or compensation for childbirth or injuries sustained
on the site and works long hours. But she prefers this to agricultural labour, as
wages are better in construction sector.
Joshi M.V. (1988) analyses the problems and prospects of labour in
construction industry in private sector in his study of Saurashtra region.
Chitra Ghosh (1990) gives a picture of the construction working
community-their recruitment, wages, working and living conditions etc. He
asserts that the laws are not adequately enforced. According to him women
workers are special targets for wage discrimination in this sector.
Panduranga Reddy, (1990) narrates the plight of construction workers in
India. They lack experience as they oscillate between agriculture and
construction. They are not keen to work on the project during the entire
construction season.
Pandey A.K and Manisha Dubey (1991) in their study made an attempt
to find out the housing conditions of the building construction labourers in urban
informal sector.
Usha Kumari K (1991) studied the effectiveness in the implementation of
laws applicable to construction labourers such as Minimum Wages Act
1948,The Contract Labour Act 1970,The Equal Remuneration Act, Inter State
Migrant Workmen Act etc. She came to the conclusion that the personal
29
characteristics of the personnel and systematic features in the labour office affect
the proper implementation of laws and recommended to start a separate
department in the labour office dealing with the implementation of labour laws
pertaining to construction sector.
National Commission On Rural Labour Report, (1987- 91) recommended
that the recruitment of workers through middlemen should be checked to enable
construction workers to get their wages in full.
Jesudas.M.L. in his Study (1992) argued that wage fixation is a one sided
affair in the construction sector due to surplus labour market
In 1995 Ritu Priya made an analyses of the health problems of migrant
construction workers. Bhanu Murthy S showed the human resource
management of construction firms and the role of Management Accountants in
construction firms.
Vaid and Gurdial Singh (1999) studied the wages and working
conditions of the construction workers under the organised sector. The study
found that the social quality of the workforce and the technology used in the
industry were inter linked, the former set the limitations to the choice and use of
technology and the latter determined the levels of income, education, skill and
productivity of workers likely to be employed.
A study conducted on building workers by the National Institute of
Construction Management and Research (NICMAR) in Delhi observed that
working hours of the construction workers are not being regulated according to
the law.
Pravin Sinha (2002) looked into the changing nature of Indian
construction industry and practical difficulties in organising construction
workers. He observed that Indian construction industry shows certain basic
characteristics that are identical to the ones existing in other parts of the world.
His survey on the socio economic characteristics of the construction workers
30
indicate that practically all live below the poverty line and a great majority of
them belong to backward classes in the minority group. Most of them are in the
age group of 14 to 30 years and have migrated individually, even if married.
Practically all have come to the cities in search of better and brighter future and
intend to return after amassing some wealth.
Chintamani, in Deccan Herald (2004) alleged that the government had
neglected the construction workers while framing policies and urged the
government to formulate policies to uplift the conditions of the workers.
Indo-Asian News Service (2004) reported the demand of various trade union
leaders for hike in pension and other benefits given by the Tamil Nadu
Construction Workers Welfare Board (TNCWWB).
Indo-Asian News Service (2004) also reported the major demands
placed by the Tamil Nadu State Construction Workers' Union before the welfare
board which include crèche facilities for children of women construction
workers, preventing accidents and curbing the growth of child labour in this
sector.
Studies in Kerala
As the state has implemented more than 20 welfare schemes for the
unorganised sector, and also the state, which spent huge amount on various
social security schemes, certain attempts have been made to study the
characteristic features of construction industry and the effectiveness of Social
Security Schemes for the workers in the unorganised sector in Kerala.
Vijaya Sankar, P. S (1986) in a Study on Head Load workers states that
the basic objective of all Welfare Funds is to provide a measure of social
security and insurance for workers who are vulnerable to risks and uncertainties
and do not have any other institutional protection arising from their employment
status
31
Vijaya Kumar.S (1986) in his case study found that trade unionism
emerged as an insurance against job security and wage bargaining, but
subsequently it accentuated the process of segmentation in the labour market. In
the process, workers belonging to the powerful union established their working
right in dominant sector; while the weak was pursued to the less dominant
segment.
Harilal.K.N. (1986) studied the organisation of production and labour
process in building industry. His study found that construction workers are
overwhelmingly rural landless migrants compelled to seek employment in the
construction sector due to indebtedness, inadequate employment and insufficient
income. He also found that the state-assisted social security programmes in
Kerala have imparted a sense of dignity and self-esteem to the workers in the
informal sector.
Anand S. (1986) pinpointed the difficulties in providing welfare facility to
the migrant construction workers in Kerala due to the mobility of construction
workplaces. George Zacharia (1986) in his analysis argued that construction
workers are the least paid in India; their wages are lower than that in
manufacturing sector.
Shobha B Nair (1987) by making a sociological analysis of the problems
and needs of old women agricultural workers found out the extent of social
support and social security available to them. The study finds that erosion of
traditional values consequent on the modernisation and broken down joint family
system increased the miserable conditions of old workers working in the
unorganised sector, especially in agriculture. But the appreciable step taken by
the Government of Kerala, instituting a series of pension schemes, for the rescue
of these old people is remarkable
Ravindran.A.M. (1987) found that inward remittance into Kerala have
been considerably rising since construction boom started in the gulf countries.
Most of the emigrant house holds lavished a major portion of their remittance on
32
“palacial buildings”
Gulati.I.S (1990) made a study about the working of Agricultural
workers pension scheme and its impact on agricultural workers .The study shows
that due to increased life expectancy of the people, the state has to support to a
sizeable portion of old population. The study also found that the scheme covers
only 9 per cent of the eligible agricultural workers.
Gopikuttan.G. (1990) examined the trend in the field of house building
and the consequent cause and effects on Kerala economy-its impact on economy
and society. In his study he pinpoints the impact of this boom on factor and
material markets, employment, skill mix and technology.
Pillai S.Mohanan (1992) has made an attempt to study the effectiveness
of welfare fund for the unorganised Head Load workers in Kerala. The study
reveals that the workers are not getting the full benefits from the entire resource
transfer as a portion of the fund collected is diverted to meet the administrative
expense of the board. He argues that there is an urgent need to extend the Social
Security programmes to the unorganised workers and setting up of welfare fund
as an alternative form of financial social security is a new experiment especially
in the context of a resource constraint economy.
The Committee constituted by the Social Security Department of Kerala
State Planning Board, Government of Kerala (1993) for an overall study of the
perspective on the long term financial and operational implications of the social
security measures reported that there are 30 social security and welfare schemes
working in the state. Out of this 14 are entirely financed by state exchequer. The
reports revealed that even though the physical coverage of the programmes in
the state is very impressive, there exist a lot of wastage and overlapping in case
of the major pension schemes and recommends the need for improving the
operational efficiency of the Boards, which are administering these schemes.
Surendran Nair.V (1994) in his M.Phil theses on social security
33
movement in Kerala evaluated the role of KBOCWWFB in improving the
welfare fund schemes to the construction workers. The study states that the
resource mobilisation of the fund is not effective and administration cost has
been steadily rising. But this study was made with in a short period of
constituting the Board and failed to consider the socio economic impact of the
Board on the construction workers.
Jayasree S (1994) examined the socio economic and health status of
women construction workers in the unorganised sector and found the impact of
the welfare measures implemented by the government and the extent of union
participation among them. Women in this sector suffer more due to their
powerlessness, immobility and lack of bargaining power.
Mahendra Dev.S (1994) in his study makes a comparative evaluation of
the social security schemes in the unorganised sector of the states of Kerala and
Tamilnadu. Subrahmanya, R. K. A. (1995) made an historical evaluation of
social security schemes in India.
Charlyulu, U. V. N. (1996) in his Report also gives the leading role of
Kerala in taking initiatives for the protection of unorganised workers through
social security schemes. Subesh Kumar Das (1996) also evaluated the
performance of the Social Security Schemes for the unorganised poor workers in
the informal sector in India.
State Planning Board, Government of Kerala in its reports on Social
Security Initiatives in Kerala (1996) and the Report of the Task Force on Social
Security and Welfare (1997) also underline the significance of Social Security as
a measure to alleviate the poverty of weaker sections. These reports document
social security initiatives in Kerala and the `particulars of the various social
security schemes in the state such as its coverage, extent of benefit and expenses
on various benefits. It has observed that the state has been very ahead of others
in the country in implementing social security and social welfare measures. The
committee also reported that the various welfare funds suffer from a variety of
34
problems such as wide variations in eligibility criteria and low percentage of
coverage in collection of dues from employees. The study also found that the
need for social security is increasing rapidly due to the growing number of
disadvantaged persons like the unemployed, under employed, elderly destitute
widows, mentally and physically challenged and street children. Besides, a large
number of workers in the organised sector require some sort of social security
when they cannot work and earn.
Aboobacker Sidheeque (1993) in his study shows the increasing demand
of construction industry and the marked difference in the wages that have
resulted in the mass migration of Tamil workers to Kerala. It was found that
involvement of Tamil workers in different construction sites of the
Malappuram district was as high as 38 per cent.
Duvvury, Nata and Sabu. M George (1997) made an evaluation of the
welfare funds in Kerala. But the study makes only an overall evaluation of all
welfare schemes and not any specific one
A study on unemployment by Dolly Sunny (2000) found that in Kerala
high priority was given for expansion of social and general services while
production and employment-oriented projects were either neglected or ignored.
Padmajan.K (2001) wrote a series in ‘Mathrubhumi’ daily narrating the
problems in the construction sector in Kerala; especially in the context of
restrictions and regulations in the sand taking from the riverside.
Kurien, John and Paul, Antonyoto (2001) attempt to explain the provision
of social security in the fisheries sector of Kerala. It enumerates the salient
achievements and the problems faced by the state in providing concrete social
security measures for fish workers.
Kurien P.H (2001) outlined the salient features of welfare schemes for
different sections of the working classes in Kerala and lists the problems of the
schemes especially the disproportionate distribution of benefits under various
35
schemes. There is no rationale for having different types of benefits to different
professionals in the informal sector and also it is unfair to underestimate a
particular worker group, which contribute equally to the national economy. This
class difference can create social conflict. He suggested the government to
consider unified comprehensive social security coverage
Report Of The Working Group On Social Security For The Tenth Five
Year Plan (2002-2007), Government of India; Planning Commission- 2001 took
a stock of the existing frame work of social security schemes and the constraints
both in the organised sector and unorganised sector
Kannan K. P. (2002) in his working paper on the Welfare fund model of
social security for informal workers examined the evolution of the institution of
‘Welfare Funds’ for informal sector workers in Kerala and viewed that the ever-
increasing demand for Welfare Funds for each and every sub-sector of the
informal sector may be viewed as a desperate reaction of the workers for a
measure of social security in an unprotected labour market
Ignatius Pereira (2003) discussed reports about the seriousness of the
role of labour mafia with the backing of powerful trade unions. He observed
that trade unions are compelling to give employment to the workers given in the
list supplied by them in some parts of the state of Kerala.
John C.P (2004) through a Socio-psychological analysis of the
pensioners of the KBOCWWFB showed that the breakdown of the joint family
system and the emergence of the nuclear family system create socio-
psychological tensions in the lives of the elderly population. Personal and family
liabilities compel a good proposition of the elderly construction workers to
engage in some kind of economic activities. Programmes will have to be
developed to promote family values and invigilate the young generation on the
necessity and desirability of inter-generational bonding and continuity. He offers
some comments and suggestions to improve the welfare of the construction
workers and the activities of KBOCWWFB.
36
Rosa K.D in her study (2004) found that Wage rates in the construction
sector are very high in Kerala ranging from Rs 100 to Rs 150 per day for women
and Rs 150 to Rs 200 for men. For Skilled Workers it is as high as Rs 275 per
day.
Review of literature on construction industry shows that only few studies
have been undertaken in India. These studies highlight the general socio
economic background of the construction workers and the nature and
functioning of construction labour markets. In Kerala, despite the burgeoning
construction and related activities, surprisingly very few studies have been made
to analyse the different dimensions of the construction industry as a major form
of economic activity.
There are number of laws to protect the interest of workers in the
construction sector. But little study has been done in the field of effectiveness
and implementation of these laws. The present study is an attempt to examine
the implementation of various social security schemes of KBOCWWFB and its
impact on the construction workers in Kerala.
37
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