Construction

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.

Who are the workers in construction?

Highly Skilled Workers

Specialised Workers

Semi-skilled Workers

Unskilled Workers

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.

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.

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.

Economic snapshot of the construction sector

AROUND

PERCENT OF GDP SHARE¹

MORE THAN

MILLION WORKERS ENGAGED IN CONSTRUCTION²

THERE ARE

TIMES MORE MEN THAN WOMEN EMPLOYED³

MORE THAN

PERCENT OF WORKERS ARE INFORMALLY EMPLOYED⁴

Construction is the third fastest-growing industry in India

Several remain uncounted because of gaps in identification and data disaggregation

The demand for women is limited due to gendered skill gaps and societal norms

Besides agriculture, construction employs the largest number of informal and migrant workers

Gaps in last mile delivery of welfare and services⁵

MORE THAN INR

BILLION OF THE BOCW CESS REMAINS UNUTILISED

APPROXIMATELY

PERCENT WORKERS REMAIN UNREGISTERED

LESS THAN

MILLION WORKERS ARE 'LIVE' REGISTERED WORKERS

DURING THE PANDEMIC, MERE

PERCENT WERE ABLE TO ACCESS DIRECT BENEFIT TRANSFER

A balance of 62% remains across all State Welfare Boards

Less than 35 million are actually registered with the Boards

Only 5 in 10 workers are eligible for benefits, whose registrations are up-to-date

The rest suffered due to non-availability of Aadhaar and bank details

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

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.

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!

Industry

There is an urgent need for business leaders to extend welfare measures to all workers in their ecosystem through an inclusive approach

Government

The government should not only strengthen implementation and monitoring, but also simplify procedures to ensure wider access

Non-profits

Non-profits must leverage the current momentum to build stronger collaborative movements to create sustainable impact at scale

Philanthropy

Philanthropic and CSR funds need to be directed towards grassroots initiatives and innovative solutions that address systemic breakpoints

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.