Inclusive By Design:
Cementing the Future for Informal Workers in India's Construction Sector
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The construction sector employs the maximum number of informal workers, who are predominantly migrants. Fast-paced urbanisation and a high demand for low-skilled workforce are pull factors for this vulnerable demographic.
The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (BOCW) Act, is a social welfare legislation that aims to benefit workers engaged in building and construction activities across the country.
As per Section 2(d) of the BOCW Act, "building or other construction work" includes "the construction, alteration, repairs, maintenance or demolition- of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, water works (including channels for distribution of water), oil and gas installations, electric lines, wireless, radio; television, telephone, telegraph and overseas communication dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aquaducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the appropriate Government, by notification but does not include any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948), or the Mines Act, 1952 (35 of 1952), apply."
The existing BOCW Act will be repealed under the Social Security Bill, and its provisions will be subsumed within the Four New Labour Codes (rules awaited) namely the Code on Wages, 2019, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020 and the said Code on Social Security, 2020.
As per Section 2(d) of the BOCW Act, "building or other construction work" includes "the construction, alteration, repairs, maintenance or demolition- of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, water works (including channels for distribution of water), oil and gas installations, electric lines, wireless, radio; television, telephone, telegraph and overseas communication dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aquaducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the appropriate Government, by notification but does not include any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948), or the Mines Act, 1952 (35 of 1952), apply."
The existing BOCW Act will be repealed under the Social Security Bill, and its provisions will be subsumed within the Four New Labour Codes (rules awaited) namely the Code on Wages, 2019, the Industrial Relations Code, 2020, the Occupational Safety, Health and Working Conditions Code, 2020 and the said Code on Social Security, 2020.
Who are the workers in construction?
Highly Skilled Workers |
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There are limited systemic barriers
impending their growth. They are generally locals or permanent migrants driven by aspiration and backed by resources. The glass ceiling may act as a barrier for the few women who make it to this stage. |
Their economic mobility is enabled by access to social networks yet limited by the paucity of upskilling opportunities. They constitute locals and permanent migrants from areas with lower economic opportunities. Very few women are employed.
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This workforce includes circular migrants from distant or remote areas that score low on human development and economic indicators. They are entrenched in poverty and debt cycles, often struggling to make ends meet. Barely any women feature here.
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Typically, from tribal or disaster-prone regions, they are driven towards seasonal or circular migration to address financial crises, medical emergencies and high-cost expenses. Women are employed in the lowest paying and most hazardous tasks.
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- Project Managers
- Engineers
- Supervisors
- Contractors
- Surveyors
- Crane Operators
- Carpenters
- Painters
- Plumbers
- Masons
- Brick kiln workers
- Quarry workers
- Load carriers
- Assistants
Economic snapshot of the construction sector
AROUND
PERCENT OF GDP SHARE¹
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MORE THAN
MILLION WORKERS ENGAGED IN CONSTRUCTION²
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THERE ARE
TIMES MORE MEN THAN WOMEN EMPLOYED³
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MORE THAN
PERCENT OF WORKERS ARE INFORMALLY EMPLOYED⁴
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Construction is the third fastest-growing industry in India
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Several remain uncounted because of gaps in identification and data disaggregation
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The demand for women is limited due to gendered skill gaps and societal norms
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Besides agriculture, construction employs the largest number of informal and migrant workers
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Gaps in last mile delivery of welfare and services⁵
MORE THAN INR
BILLION OF THE BOCW CESS REMAINS UNUTILISED
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APPROXIMATELY
PERCENT WORKERS REMAIN UNREGISTERED
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LESS THAN
MILLION WORKERS ARE 'LIVE' REGISTERED WORKERS
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DURING THE PANDEMIC, MERE
PERCENT WERE ABLE TO ACCESS DIRECT BENEFIT TRANSFER
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A balance of 62% remains across all State Welfare Boards
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Less than 35 million are actually registered with the Boards
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Only 5 in 10 workers are eligible for benefits, whose registrations are up-to-date
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The rest suffered due to non-availability of Aadhaar and bank details
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The abovementioned facts are drawing upon official data after the first lockdown.
Catch a glimpse of the complex journeys of these workers...
This story is for representative purposes only.
The multi-faceted inequities faced by informal workers impede their socio-economic growth. Since the phenomenon of migration is closely linked with their journeys – the challenges they face have to be analysed across source, destination and systemic levels. It is also important to adopt a gender lens, given the exclusionary practices towards women in the sector.
1. Government and policy are backed by a strong legal framework but fall behind in implementation
2. Industries survive due to underpaid informal migrant workers, amidst a paucity of local labourers
3. Contractors who are primarily responsible for recruitment and welfare, are often mired in informality themselves
4. Exclusionary practices and policy inaction make gender equity a growing concern in construction
5. Communities share experience of distress from source to destination, and over generations
2. Industries survive due to underpaid informal migrant workers, amidst a paucity of local labourers
3. Contractors who are primarily responsible for recruitment and welfare, are often mired in informality themselves
4. Exclusionary practices and policy inaction make gender equity a growing concern in construction
5. Communities share experience of distress from source to destination, and over generations
Government and policy are backed by a strong legal framework but fall behind in implementation
- Gaps in enumeration of workers causes hindrances in the portability of basic services such as access to ration and accommodation
- Fragmented policy implementation and paucity of human resources leads to procedural hurdles in accessing entitlements
- Shortfalls in monitoring of programs affects the feedback loops required to strengthen implementation
- Ineffective utilisation of funds collected through BOCW cess, deprives workers of due benefits
- Fraudulent registrations under BOCWA add to the complexity, further removing marginalised workers from the ambit of welfare
- Lack of proactive policies to create an enabling environment for women reduces participation of women in the labour force
Industries survive due to underpaid informal migrant workers, amidst a paucity of local labourers
- On account of having several layers of contractors, employers rarely extend formal company policies to the workers, subjecting them to dismal living and working conditions
- Legal loopholes that can be leveraged to limit accountability towards encouraging and facilitating registration of workers under BOCWA hampering their ability to enter the formal system
- Lack of decentralised models for industrial expansion and development results in paucity of lucrative livelihood opportunities in source areas
Contractors who are primarily responsible for recruitment and welfare, are often mired in informality themselves
- Workers' dependency on and idolisation of contractors results in a complex relationship restricting independent mobility
- The over-reliance on the contractor creates a power dynamic leading to exploitation of the workers
- Exploitative power centres among marginal actors further reduce the workers ability to break out of the trap of vulnerability
- The lack of formal documentation hinders any semblance of job security, economic stability and financial inclusion
- Lower wages and financial exclusion result in complex debt traps
Exclusionary practices and policy inaction make gender equity a growing concern in construction
- Women are employed in the lowest paying and most hazardous jobs restricting their ability to live and work at full potential
- Policies intended to create gender balance at the worksite receive backlash instead of affirmative action due social norms
- Changing demand patterns on site and paucity of upskilling opportunities is resulting in a trend of reduced hiring of women
- Non-recognition of women’s practical needs including maternity benefits and onsite daycare / crèche creates a double burden
- Inadequate transit facilities and unsafe accommodation cause an increase in the incidence of violence and sexual harassment
Communities share experiences of distress from source to destination, and over generations
- Discriminatory practices at destination leave the workers' aspirations of economic mobility unfulfilled
- Lack of access to healthcare, ration, water-hygiene-sanitation and accommodation adversely affects their quality of life
- Limited opportunities for quality education and skilling perpetuate an intergenerational cycle of informality and poverty
- Widespread stigma and discrimination and lack of awareness about legal recourse causes disempowerment and trauma
- Insufficient and asymmetric information in terms of kind of jobs available and legal rights reduces bargaining power
- Lack of universal resource centres exacerbates the barriers caused by incomprehensible systems and processes
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Construction activity in India is set to soar at an approximate rate of 700-900 million square feet of urban space each year, given estimates that 40% of India’s population will be living in cities by 2030.
As more people and more people are employed in this industry, the breakpoints, if not addressed now, can give way to a humanitarian crisis caused by further widening of the inequity gap.
As more people and more people are employed in this industry, the breakpoints, if not addressed now, can give way to a humanitarian crisis caused by further widening of the inequity gap.
Enable financial, social and legal protection by securing requisite identity proof and worker registration
Identity proofs and registrations can unlock 4X advantages, with workers rightfully benefiting from:
Identity proofs and registrations can unlock 4X advantages, with workers rightfully benefiting from:
- Formal financial systems for savings, credit, insurance and pensions
- Safe accommodation and drinking water, especially for migrants
- Fundamental on-site facilities like creches, first-aid, canteens and toilets
- Fixed hours of working, timely payment and due compensation for overtime
Create expectation alignment for workers through a channel informed by industry demand
Information symmetry means a double win with empowered workers and a resilient industry:
Information symmetry means a double win with empowered workers and a resilient industry:
- Informed, aspiration-led migration for communities and individuals
- Prevention of exploitation through seamless redressal across locations
- Improved power dynamics by capacity building contractors to negotiate for worker rights
- Boost to industry and economy with workers upskilled to meet market demand
Empower construction workers' families and communities by access to diverse livelihood opportunities to prevent distress led entry into the sector
Diversifying livelihood opportunities for families and communities will lead to 4 high-potential gains:
Diversifying livelihood opportunities for families and communities will lead to 4 high-potential gains:
- Demographic dividend by quality education and skilling of children and youth
- Self-reliance and improved earnings from entrepreneurship programs
- Uniformity in development with expanded base of urbanization in non-metros
- Enhanced source of income for women through self-help groups and cooperatives
Ensure gender equity in opportunities, working conditions and wages through inclusive policies and practice
An enabling environment boosts women’s participation in the workforce, which can add 27% to GDP:
An enabling environment boosts women’s participation in the workforce, which can add 27% to GDP:
- Wage parity and competency-based reward mechanisms
- Unbiased access to skilling and entrepreneurship opportunities
- Addressing practical needs including maternity benefits and day care facilities
- Safe workplaces free from all kinds of violence against women and children
Improve data collection and integration across workers' migration corridors and value chains to enable greater visibility and security
Mainstream visibility and integration of these 50 million workers will lead to inclusive growth:
Mainstream visibility and integration of these 50 million workers will lead to inclusive growth:
- Streamlined human resource practices through updated worker profiles
- Increased linkages to opportunities through sectoral database
- Effective delivery of social security benefits, leveraging comprehensive data
- Evidence-based policy and action through research and contextualized insights
- Safe workplaces free from all kinds of violence against women and children
There are many doing the groundwork already
Enable
registrations, secure identity proofs |
Creating awareness on rights and entitlements through campaigns and policy advocacy: Nirmana, Sampark, Prayas, Jan Daksha Trust, Kotda Aadivasi Sansthan Facilitating registration at work site and under available schemes: Jan Sahas, Jatan Sansthan, Centre for Social Justice Providing legal aid and support: Aajeevika Bureau |
Create
an industry- informed channel |
Setting up a helpline for information support: Aajeevika Bureau, Jan Sahas, Sampark Creating a tracking mechanism to address worker needs across locations: Jan Sahas, Disha Foundation Conducting sector specific training and upskilling at destination: Aajeevika Bureau, Pipal Tree Foundation Enabling behaviour change and capacity building for value chain partners for better worker practices: Aajeevika Bureau, Jan Sahas, Centre for Social Justice, Disha Foundation |
Empower
with diverse livelihood opportunities |
Providing vocational training to youth at source: Gram Vikas, Kalahandi Organization for Agriculture and Rural Marketing Initiative (KARMI), Saath, Youth for Unity and Voluntary Action (YUVA) Supporting the formation of women's self-help groups for entrepreneurship development: Aajeevika Bureau Facilitating access to holistic education via linkages with schools, tutoring and skilling for children: Mumbai Mobile Creches, Mobile Creches (Delhi), Tara Mobile Creches |
Ensure
gender equity |
Developing women’s construction skills and providing market linkages for better livelihoods: Mahila Housing Trust Supporting mothers and children through day care centres: Mumbai Mobile Creches, Mobile Creches (Delhi), Tara Mobile Creches, Diya Ghar, Sampark Building awareness about women's safety and child protection on site: Mumbai Mobile Creches, Mobile Creches (Delhi), Tara Mobile Creches |
Improve
data collection and integration |
Undertaking open source research to spotlight multi-layered issues and intersectional identities: Aajeevika Bureau, Prayas Centre for Labour Research and Action, India Migration Now, Centre for Migration and Inclusive Development Providing technical support to governments in policy formulation and implementation: Disha Foundation, Centre for Migration and Inclusive Development Creating a database to register migrant workers: Jan Sahas, Disha Foundation |
*The intervention mapping is indicative, not exhaustive
Let's all play our part to build back better
Business leaders must take the first step to reset aspirations towards inclusive socio-economic growth, as the government plays its part in effectively safeguarding workers' rights. Non-profits can provide impetus to this movement through their rich on-ground insights and networks. Philanthropists should plug the gaps by supporting novel solutions in this underserved sector.
Click here to know the role you can play!
IndustryThere is an urgent need for business leaders to extend welfare measures to all workers in their ecosystem through an inclusive approach
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GovernmentThe government should not only strengthen implementation and monitoring, but also simplify procedures to ensure wider access
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Non-profitsNon-profits must leverage the current momentum to build stronger collaborative movements to create sustainable impact at scale
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PhilanthropyPhilanthropic and CSR funds need to be directed towards grassroots initiatives and innovative solutions that address systemic breakpoints
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- Improve on site responsibility
- Promote digital formal modes of payments
- Institutionalize measures to create gender equity
- Introduce robust and stringent sub-contracting policies
- Support implementation of government measures
- Facilitate data collection
- Leverage industry associations to create a level playing field
- Undertake effective enforcement and monitoring
- Improve inter-state co-ordination
- Leverage data and technology
- Inform policy action through holistic evidence (Labour Codes, Housing Policies, Foster Social Integration, Gender Mainstreaming)
- Strengthen collaboration
- Undertake gender-transformative programming
- Expand base in source areas
- Boost catalytic areas
- Align with government priorities
- Promote data collection
- Foster innovative experimentation
A combined effort from all these stakeholders in the construction sector, holds the potential to achieve triple wins: enhance lives and provide dignity to a major vulnerable demographic group, conduct responsible business and boost the economy.
This will also contribute towards 6 of the 17 Sustainable Development Goals.
This will also contribute towards 6 of the 17 Sustainable Development Goals.