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Construction Industry in Gurgaon:
Living and Working Condition of the Workers
Society for Labour and Development
New Delhi, December 2012
Supported by: Rosa Luxembourg Stiftung
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Content
S. No. Page No. 1 General Introduction of the Construction Industry 1
2 Construction Industry in Haryana 2
3 Government’s Act and Measures Related to Construction
Workers
3
4 Objectives and Research Methodology 4
5 Profile of the Construction Companies 5
6 Construction Workers in Gurgaon 7
7 Construction Workers: Working Conditions
a) Workers Background b) Employment Structure c) Working Hours d) Income e) Safety f) Disciplinary Method g) Health and Social Security
9
9 13 16 17 18 19 19
8 Construction Workers: Living Conditions 20
9 Union and Labour Laws 22
10 Conclusion & Recommendations 23
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Construction Industry in Gurgaon:
Living and Working Condition of the Workers !
1. General Introduction of the Construction Industry
The construction industry is the single biggest non-agricultural industry in the capitalist
world. Construction sector is next to Agriculture, is the second largest economic activity in India
in terms of employment and plays an important role in the nation’s economy1. The performance
of other sectors of the economy is interlinked with this industry which generates demand for both
skilled and semi-skilled labour force. Around 16% of the nation’s working population depends
on it for their livelihood. According to the Planning Commission’s Approach to 12th Five Year
Plan the contribution to the GDP by construction sector rose from Rs. 28,77,701 (2005) to
Rs.49,33,183 (2009). In terms of percentage, the contribution of Construction sector to total GDP
increases from 7.4 % (2005) to 8.9% (2009) -- thus Construction sector accounts for around 9.0
per cent of GDP today2.
The construction sector has grown much faster following the adoption by the
Government of liberalization and globalization policies in 1991. In 1998 there were estimated
111 million construction workers worldwide and majority of them belonged to developing
economies like India. As per 2001 census, there were 1.41 crores (over 14 million) building and
other construction workers in the country and as per the National Sample Survey Organization
(NSSO) 2004-05 there were about 2.57 crores (over 25 million) building and other construction
workers. As per the latest estimate of NSSO (2009-2010), there are more than 4.46 crores (over
44 million) building and other construction workers in India. Out of 4.46 crores workers only
0.82 crore have been registered that is less than 25 per cent of them3. The total cess collected
from these registered workers is Rs. 6,616 crores (2009-10) Out of this, only 14% i.e. Rs. 965
crores have been spent by putting all the state governments putting together. The Construction
sector provides direct/indirect employment to about 35 million people and is expected to employ
about 92 million persons by 2022. An overview of expenditure on construction workers by all
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1 Prasad, Rao&Nagesha, “Study on building and other construction workers welfare schemes / amenities in Karnataka, SasTech Journal , Vol 10, 1 May 2011. 2 http://planningcommission.nic.in/plans/planrel/12appdrft/appraoch_12plan.pdf 3http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/union-cabinet-clears-amendments-to-benefit-88-lakh-construction-workers/article4063426.ece!
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the state’s welfare boards shows that only four States have been spending this money to some
extent, rest of the states have not taken so much interest to spend it on workers welfare. The
leading States and Union Territory in this regard are Kerala, Tamil Nadu, partly Pondicherry and
Madhya Pradesh4. In the previous NSS 2004-05, the total cess collected from construction
workers was Rs. 4,912.86 crore. At the same time, the money spent is only Rs.631.50 crores. It is
not even 25 per cent of the collected money. So, neither the Central Government nor the State
Governments is implementing the Building and Other Construction Workers Act, 1996.
Construction work is often described as dirty, difficult and dangerous job. It is one of the
most hazardous and accident prone activities as reported by the International Labour
Organization (ILO). Construction sectors involve work that is highly unsafe and results in
maximum number of accidents. Globally, 17% of all work-related fatalities occur in the
construction sector (ILO)5. In India too, incidents of death and injury from accidents are
widespread. India has the world’s highest accident rate among construction workers. A survey by
the ILO found that 165 out of every 1000 workers are injured in the construction sector. The
main occupational health problems in the construction industry are face injuries from carrying
heavy loads, respiratory disease from inhaling dust, muscular skeletal disorders, noise-induced
hearing loss and skin problems6.
2. Construction Industry in Haryana
In the 2011 Census, the total population of Gurgaon district was 1,514,085. There was
change of 73.93 percent from 2001 census. In the 2001 census of India, Gurgaon District
recorded increase of 44.15 percent in its population from 1991. According to 2011 census, out of
the total Gurgaon population, 68.82 percent live in urban areas of the district. In total 1,042,000
people live in urban areas. Growing urban population needs lots of space to expand and that is
apparent in Gurgaon. Small towns and cities are becoming more urbanized and, the construction
sector has got a boost. There are more than 44 million of construction workers in India at present
and Gurgaon has a substantial number of them. Most of them are migrant workers. Migration
has itself become a very common phenomenon particularly in construction industry. A large
number of Construction workers are semi skilled or unskilled workers. Due to poverty and
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4Lok Sabha Debates (Part-I, Proceedings with Question and Answers), Monday, May 14, 2012. 5Official Home Page of International Labour Organisation 2011. From http://www.ilo.org. 6http://hdr.undp.org/en/reports/global/hdr2009/papers/HDRP_2009_13.pdf!
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joblessness, these construction workers have migrated from different regions and states leaving
behind their native villages.
Contractors keep workers moving from one construction site to another and the
workforce is constantly in the move. Most of these workers are from poor families and are
illiterate. Their choices are very limited due to lack of education and skill. They become easy
victims of exploitation due to poverty and are ready to work on wages fixed by the contractor for
their sustenance. The sharp contrast between the buildings being constructed and the actual
living and working conditions of the workers constructing them, is glaring. The buildings being
constructed are often seen as good indicators of the economic performance of Gurgaon, but the
other side of this phenomenon are the abysmal conditions of the workers themselves..
3. Government’s Act and Measures Related to Construction Workers
Under the Building and Other Construction Workers Act 1996, the State Government has
to ensure that the intended benefits and advantages reach the construction workers at the earliest
and in full measure, for which there are Welfare Boards set up in every State to monitor the
benefits of safety, health and welfare measures of these workers. The labour department of
Haryana state has framed the Rules, namely “the Haryana Building and Other Construction
Workers” (Regulation of employment and conditions of service) 2005 under the BOCW Act,
1996. Under section 18 of the BOCW Act, 1996 a board has to be constituted, comprising of
employers and workers in equal numbers, namely, the Haryana Building and other Construction
Workers Welfare Board with its headquarter at Chandigarh. An employer is required to be
registered under section 7 of the BOCW Act of 1996, after paying the registration fee as
prescribed in Rule 21 of the Rules of 20057. Every building worker who has completed eighteen
years of age (<60 years) and engaged in any building and other construction work for not less
than 90 days during the preceding twelve months shall be eligible for registration as a
beneficiary under section 12 of this Act. Recently the Union Cabinet made amendments by
removing the clause that required construction workers to have worked a minimum of 90 days in
order to register with the State labour welfare boards; and doing away with the upper age limit of
60 years for availing of benefits under the scheme8. Section 3 of the BOCW Welfare Cess Act,
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!7http://hrylabour.gov.in/page.php?module=boards&pid=5 8http://www.thehindu.com/todays-paper/tp-national/tp-newdelhi/union-cabinet-clears-amendments-to-benefit-88-lakh-construction-workers/article4063426.ece!
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1996 provides levy and collection of cess at a rate not exceeding two per cent, but not less than
one per cent of the cost of construction incurred by an employer. This cess is the main source of
income of the Board in addition to the fees received through registration of workers. A worker’s
registration requires a deposit of 85 rupees and a card is issued in the name of the beneficiary. If
death occurs due to accident, company pays the compensation and government pays the funeral
charges of Rs. 5,000/. The construction company has to be registered under the BOCW Act with
Industrial Safety &Health Department of Haryana. After this registration the principal employer
needs to register under the Contract Act, in which the name of the contractor is mentioned.
4. Objectives and Research Methodology
The present study analyzes the living and working conditions of construction workers in
Gurgaon. The primary research involves interviews with construction workers and field visits to
different construction company sites including the sheds provided to workers as accommodation.
Different subjects have been interviewed -- contractors, masons, carpenter, iron man, labourer
and helper. The interviews were done with the help of questionnaires. 55 workers and their
families were interviewed. After visiting both local labour markets and construction sites, a
decision was made to conduct the survey in Sectors 61, 66 and 67 of Gurgaon, near Badshahpur
village. Most of the respondents in the survey consist of workers who are the most numerous in
this sector -- masons, labourers and helpers. They mainly stay near the worksite. At each site,
ten workers and one contractor were randomly selected. The data has been collected through
individual and group discussions. The study has mainly used qualitative and collected data from
primary sources and from secondary sources as well. Apart from the workers, relevant
government department including labour department and industrial safety and health department
of Gurgaon have also been interviewed. The visits have been made to five on-going construction
sites – 1) Pratibha Industries Sector 66, 2) Larsen & Toubro Sector 66 (Making two towers for
IREO), 3) Bptp’s Park Prime Sector 66, 4) Besteck Sector 67, all near Badshahpur village and 5)
Pioneer Urban -Eco infra Sector 61 near Ullawas Village. The collected data of the survey has
been used for analyses.
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5. Profile of the Construction Companies
This section briely describes some of the construction companies in India. The selection of these
companies have been done through different websites like, construction week online, Indian
mirror, Info-bharti, construction updates, and membership of Construction Industry Development
Council (CIDC). Indian Construction Industry jointly with Planning Commission (Government
of India) has set up CIDC to take up activities related with the Indian construction industry.
Presently it has 102 members..
Rank List of 10 construction companies in India 1 Larsen & Tourbo Ltd, Mumbai 2 DLF, Gurgaon 3 Tata Projects Ltd, Secunderabad 4 Gammon India, Mumbai 5 Hindustan Construction Company (HCC), Mumbai 6 Punj Lloyd Group, Gurgaon 7 Jai Prakash Associates Ltd, Noida 8 Lanco Infratech Limited, Gurgaon 9 Shapoorji Pallonji & Co, Mumbai
10 GMR Group, Bengaluru
The Brief profile of the companies selected during the survey is:
1. BPTP Limited
BPTP Limited, one of the fastest growing real estate companies in India, is undertaking a wide-
range of projects including integrated townships, residential & commercial complexes, retail
spaces, IT parks and SEZs, Hospitality. BPTP Limited was founded in 2003 and is based in New
Delhi, India. The company was formerly known as Business Park Town Planners Limited and
changed its name to BPTP Limited in September 2006. BPTP Limited today has its presence
throughout National Capital Region and beyond including Faridabad, Gurgaon (Haryana),
Noida, Greater Noida (U.P.) and Mohali (Punjab). The company is gradually spreading its
footprints and now has presence in Hyderabad. It also owns approximately 367.7 acres of land in
Gurgaon, as well as approximately 10 acres of land in Hyderabad.
2. Pratibha Industries Limited (PIL)
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Pratibha Industries is one of the fastest growing construction firms in India. It was
established in 1982, by Mr. Ajit B. Kulkarni. The company is a leading contractor in the water
transmission and distribution segment and has also developed an expertise in the building
construction space. In 1992, the firm decided to extend its presence in the civil construction
industry and started participating in bids invited for such projects by government / semi-
government departments. By 2005, the company had established an expertise in design,
construction, operation and maintenance of reasonably sized complex water supply projects,
water treatment plants and distribution systems. In 2007 and 2008 Pratibha Industries
strengthened their Buildings Division and acquired several prominent building projects in India.
3. Bestech Group (Bestech India Pvt. Ltd)
Bestech Group has emerged as one of prominent business houses of real estate in the country
over the last two decades. It was founded by Mr. Dharmendra Bhandari and Mr. Sunil Satija, in
early 90s. The group has advanced as a leading hospitality provider. Bestech Group is
developing three IT (Information Technology) Parks spanning approximately two million square
feet at a prime location in Gurgaon; and the integrated townships and group housing projects of
approximately eight million square feet which are nearing completion at Gurgaon and Dharuhera
(Haryana).
4. Pioneer Urban Land and Infrastructure Ltd.
Pioneer Urban Land and Infrastructure Ltd., a leading Indian conglomerate, has been
engaged in the development of real estate for the last two decades in Gurgaon. It is the flagship
company of the Periwal Group headed by Mr. Manish Periwal, its Chairman and Managing
Director. The company has made a distinct place for itself in the development of mini-townships
and mega group housing projects. Pioneer Urban has developed projects like Greenwoods City,
Nirvana Country and South City II. In Vista Villas, the company has introduces “villas” with
landscaped greens. Pioneer Urban, with its core business of Real Estate Development, has been
in a joint venture partnership with Unitech Ltd. and has played a vital role in changing the
landscape of Gurgaon.
5. L&T Construction Company
Larsen & Toubro (L&T) is India’s largest technology, engineering, and construction
organization with a record of over 70 years. It was in the cement business and was brought into
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India by two young Danish Engineers, Mr. Henning Holck-Larsen and Mr. S.K. Toubro.
Together, Mr. Holck-Larsen and Mr. Toubro, founded the partnership firm of L&T in 1938,
which was converted into a limited company on February 7, 1946. L&T is considered to be one
of India’s best managed and most respected company in terms of customer appreciation and
shareholder value.
Over the years, L&T has outgrown its national barriers and extended its activities into the Indian
Ocean Rim countries. L&T’s international presence is increasing, with worksites in 20 countries
that encompass South Asia, South East Asia, West Asia, Russia, CIS countries including African
countries. It figures as the World’s 58th Top International Contractors.
6. Construction Workers in Gurgaon
The city of Gurgaon, situated in the northern part of India, is the second largest city of
Haryana after Faridabad and adjoining city of Delhi. In the last two decades, Gurgaon has
developed rapidly and emerged as the industrial and financial hub of Haryana. As a result,
construction activities have increased a lot in the form of shopping malls and buildings, both
commercial and residential as well. The ongoing construction activities require a large number
of construction workers, although there is no official data on construction workers.
Gurgaon which is a hub of the construction industry is emerging as a millennium city in the
NCR region. There are significant number of workers in Gurgaon. Most of them are migrants
from adjoining state of U.P. and other states like Bihar, Jharkhand and West Bengal. These
migrant workers from different states work under very hazardous conditions are treated largely
as secondary citizens, and deprived of means to protect their dignity.
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7. Construction Workers: Working Conditions
HARYANA!
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a) Workers Background
A total of 55 workers were interviewed from different types of construction work so that the
diversity can be represented. In addition to workers, interviews of officials from labour
department and industrial safety and health department were also conducted. Among workers,
labourer, helper, mason, iron man, electrician, families of workers and contractor are
interviewed. Out of 55 survey respondents, only two are female workers. BPTP, Pioneer and
Pratibha construction have women workers. Besteck and L&T did not have women workers nor
any family staying at their accomodation sites. The reason for low participation of women in the
survey is due to the timing of the survey which fell around the festival season – when most of
the women workers had gone back to their villages.
Construction work requires a lot of energy to complete project on time and requires young
workers who can work throughout the day till late at night. Surveyed workers’ age category is
divided in to five sections. Construction sector is dominated by young worker between the age
group of 20 to 29 years followed by the workers below the age of 20 years of workers. The
actual age of some of the workers are seems to be below18 years; however, it seemed that they
were trained by the contractor to say that their age is above 18 years. The representation of the
workers in the age group of 40-49 years is in single digit of 7.29 and workers above the age of 50
years are merely 3.64 percent.
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Workers are from different walks of life. A chunk of the surveyed workers belongs to
Other Backward Class i.e. 80 per cent followed by General Category, 18.2 per cent. A large
number of OBC workers are represented by the eastern states of India (Bihar, Jharkhand, West
Bengal and Eastern U.P.). U.P. and Bihar has low representation of ST population in their state
and that is reflected in survey also where the presence of ST workers is nil.
Out of the total surveyed workers 62% are married while 38% are unmarried. Few bring their
families with them. Most of them leave their families at their villages. The size of the family
varies from single up to seven. None of the surveyed worker has ID proof or residence proof.
They admitted to having ration cards back in their villages.
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!Respondent’s!State! Illiterate! Upto!V! VI!to!VIII!
High!School!! Intermediate!
!Total!Respondent!!
Bihar!! 6.3! 54.5! 38.9! 25.0! 16.7! 29.1!Jharkhand! 31.3! 18.2! 33.3! 25.0! 16.7! 27.3!West!Bengal!! 43.8! 27.3! 22.2! 0.0! 0.0! 25.5!U.P.!! 18.8! 0.0! 5.6! 50.0! 66.7! 18.2!All!Combined!! 29.1! 20.0! 32.7! 7.3! 10.9! 100.0!
Most of the surveyed workers have been educated up to Primary level at their villages i.e.
32.7 per cent. 29.1 per cent of workers come under illiterate category. Surveyed workers from
West Bengal and Jharkhand had highest level of illeteracy. illiteracy is not necessarily a
hindrance to getting a job in the construction sector because of its physical labour requirements.
The survey revealed that helpers and labourers tend to be illiterate while masons and electricians
have had education up to higher secondary.
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Surveyed workers belongs to the eastern states of India, most of them are from Bihar
(29%) followed by Jharkhand (27%), West Bengal (26%) and Uttar Pradesh (18%). Most of the
workers from Bihar come from Katihar and Krishanganj districts while workers from West
Bengal come from Malda district. Hazaribagh, Ranchi, Saraikela, Kharawas, Sahebganj, East
Singhbhum and Dumaka which are bordering district of Jharkhand, with West Bengal, also send
maximum migrant workers. Eastern U.P. workers come from a number of districts like
Shahjahanpur, Deoria, Jhansi, Unnao and Allahabad. Bptp and Pioneer construction companies
have maximum number of workers from Jharkhand while L&T and Pratibha have a significant
number of workers from Bihar and U.P. A large number of Bengali workers from Malda district
of West Bengal are working in Besteck site.
According to the survey, 47% of the construction workers have been staying in the area for less
than 3 months – which means they are new to this area and have came here on a short-term
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contract . Workers who have been in the area less than a year, make up 72.8 %, that is around 2/3
of the workers. These workers came here through contractors on oral agreement for specific time
period, say 2 to 3 months. This is a common phenomenon – contractor bring workers for 2 to 3
months who stay in the company’s shed and after the completion of their contract, they move
back to their villages
.
The main and foremost reason for migration in this city is search of work (75%). This is
followed by poverty which is also a major cause of migration not only in construction sector but
for other sectors too. 25 % of respondents said that there was no work at village level and
poverty push them to work as labourer.
b) Employment Structure
Workers came to the city through contractors and very few came independently. These workers
work as helper, labourer, mason, electrician and iron man. Their work experience is very little.
Their knowledge about the construction work is low and by the time they learn, their contract
gets over and they move back to their villages. They stay here for a very short period of time
under the tight vigil of the contractor.
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According to the survey, 29% of the workers have work experience of up to three
months. There are also cases, where workers had just landed in the city and started working
without any experience. The contractors made an oral contract with them by paying some
advance money in the village and then brought them for a specific time. During that time they
work whole day till late night for almost all the days in a month without any weekly off. Though
on Sunday they technically have a half day off, the contractor wants them to finish the task and
make them work whole day. Some workers have been staying in Gurgaon for more than a year
but they do not stick to one company. Contractors keep shifting them from one construction site
to another.
As far as company’s identity card is concerned only Contractor has it otherwise no
worker has any kind of employment proof. Workers know only their Contractor who brings them
to the site after paying fifty percent of an arbitrary advance amount. There is no fixed advance
amount -- it varies from a minimum of Rs. 5,000 per month while other worker demanded more
than that. The primary survey shows that 89% workers got work through contractors and only
11 % got it directly on their own. 74 % of the workers got advance money based on an oral
agreement at their home/village to ensure their willingness to work at the construction site. These
workers know only their contractor and do not know about other higher authorities at the
workplace;, some even do not even know the name of the company in which they work. Most of
the contractors bring workers in a group of 20 to 30. Contractors told the surveyor that they have
licenses but none of them was willing to show it. According to the contractors, the process of
getting a license from the labour department either in Haryana or elsewhere is time consuming
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and paying a bribe is the only solution. Some of them admitted to even paying up to Rs. 70,000
to get the license.
Most of the surveyed construction sites have 15 to 20 contractors, and each contractor may have
20 to 30 workers and some even more than that.
Contractors play an important role in bringing migrant workers to Gurgaon; some workers come
through relatives and friends (13%). Only 9% reached the construction site by themselves. There
is a “Labour Chowk” which is a meeting spot where workers assemble every morning and are
hand picked by contractors or other persons who need daily wage workers for certain time
period. Labour chowk workers mainly work on individual household or someone’s personal
construction work. That is why their area of work is limited to the nearby village. Each of the
surveyed site has contractors for different types of work like iron work, wood work, painting and
plumbing. Each type of work has contractors and sub contractors. A contractor’s main job is to
bring the required number of workers and once the task is over, to send them back to their
villages or to another work site. The workers who came independently or without taking any
advance from a contractor get Rs. 260 per day in daily wages. They also get weekly off on
Sunday.
L&T company, however, provides training to workers through CSTI (Construction Skills
Training Institute) at Pilkhuva, Ghaziabad, U.P. Eldeco provides vocational training in masonry,
plumbing, electrical equipment handling etc, They are provided with food and given a fixed
monthly remuneration.
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c) Working Hours
The working hours for the first shift are 8 a.m. to 6 p.m. and a second shift starts after that.
According to the survey, all male workers generally do a second shift, except for the female
workers. Some workers work late till 10 p.m. and some times beyond the second shift time limit
i.e. 11p.m. Sometimes, a contractor may use fewer workers than that shown on the attendance
register (to earn greater profits) – in which case, the task must be completed within the
prescribed time by the fewer workers working overtime and multiple continuous shifts.
According to the survey, all male workers work more than 8 hours. In some construction sites
they are compelled to work 12 hours a day and even more. Their work is target based. 45 % of
the workers in surveyed areas work more than 12 hours a day. Their working time starts at 8 am
in the morning and they work there late night till 9 or 10 pm.
The number of working days varies from 22 days to 30 days. The contractor of Besteck
construction engaged workers throughout the month. They do not have off day on Sunday and
get single rate for over time. Contractor is the only person who can give permission to workers to
go home. These contractor’s workers do not have provision of sick leave or earned leave, neither
have they heard of it. Work means 30 days engagement without any weekly off. Those who
came recently are not going back home till the work is done; workers staying on sites more than
a year may go to their village 2 to 3 times in year with a break of 10 to 15 days at home. During
the time of survey, most of the workers were preparing to go home for Diwali and Muharram
festival. They are not sure whether they will come back to the same place or not. Primary survey
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done after Diwali festival, found new workers in the living place, where the earlier respondents
were interviewed. Since the work is contractual, once the job is done they move to another place
with new oral agreements and advance money.
Since most of the workers are hired on a contract basis their chances to be back on the same
work site is remote. As primary survey shows, 45.5% of the workers move on to different
workplaces and 32.7% return to the same workplace. Those who live with their families take
their families with them. Those who came recently and are new to the area are unable to
comment and are not sure about their returning back once the contract is over.
d) Income
According to the survey wage is the only source of the income of the workers except one
respondent who runs a tea shop also. They get these wages on a monthly basis. The wage rate
varies from Rs. 260 per day to Rs. 160 per day. Male workers get paid more than women
workers for performing the same work which is a violation of equal pay for equal work. The two
women who were surveyed are getting Rs. 160 per day i.e. below the minimum wage (Rs. 191),
which is an open violation of labour laws. According to contractor there is no rule for equal pay
for equal work in construction sector. The logic which the contractor gave is that women cannot
carry the load which male workers can. There is discrimination too on the basis of working
hours. So wages and working hours are two points of discrimination. 53 % of the respondents are
not aware about the minimum wage while 47% know about it. Despite knowing this fact they are
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compelled to do the work according to the rate fixed by contractor. Workers said that they get
their wages by 10th day of every month, which is again a violation of laws.
Workers who have been given an advance amount, are treated as bonded labour and have
to work according to the contractor’s will. The minimum advance amount these workers got is
Rs. 4,500 in Bestech construction. In this situation, the contractor gave them only Rs.100 as
weekly expenses. Those workers who get cooked food at the residential site, such as at Besteck
Construction, the contractor deducted the amount and paid them Rs. 170 instead of Rs. 260 as
the daily wage. They do not get salary slip and while getting their remuneration they sign on a
register. Some workers do not even get to sign on a register. They get money after signing on a
paper and not on a properly recorded register. There is no proper record and the sub-contractor
(Munshi) is the person who keeps that record manually. During the survey, except for one
regular worker, none of the workers is getting PF. During the time of distress, they borrow
money from the contractor; the data in this regard is 78% money borrowed from contractor and
22% from friend/relatives. The need for this financial emergency is some urgency at
home/family followed by medical expenses and then poverty.
e) Safety
The working condition of the construction workers is full of risk and their physical safety is a
prime concern. According to the contractor, all the construction sites have first aid box and
ambulance facilities. But there is no doctors at the sites. For minor injuries, the company refers
the workers to the local doctor who runs a clinic in the workers colony. Some time workers have
to pay their medical expenses from their own pockets. They have safety equipment like helmet,
jacket, belt, shoes, socks and gloves. They get trained for using them and at the Pratibha site,
workers claimed that the equipment was in good working condition. As far as checking of these
equipments is concerned, no proper checking is held at the construction site except Pratibha
construction, as survey revealed. The contractors blamed the workers’ negligence for accidents
and deaths. One worker died few weeks back by falling from the floor of the building under
construction in Pioneer. Two deaths took place in the residential colony of Bptp due to an
electric shock from an open wire and the company paid their families compensation. Surveyed
data shows that 91 % of the workers claim to know about the safety rules; while 9 % replied as
not knowing about company safety rules.
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f) Disciplinary Methods
On being asked about their relationship with contractors, all the surveyed workers said that their
relationship with contractor is good – this statement could be questionable as the workers may
have felt compelled to not speak negatively about the contractors. This admission is not without
contradictions as the following results show. The workers have an understanding with their
contractor who is well known to the workers. Behaviour of the contractor towards workers is
deemed to be okay (67%) followed by good (15%), fine (11%) and do not know (7%).
Contractor is the person who brings them from the village to the city. Every worker is personally
known to the contractor along with their village name and family background. They live in a
group by district of Bihar, Jharkhand, West Bengal. The group of people living in a single room
belongs to the same village or region or religion.
Getting off from work is done by informing the contractor. The contractor is responsible for
completing the task at a construction site. None of the surveyed worker indulges in fight with the
contractor as this could affect their work and getting advance money in future. Regardless of the
BOCW rules, hiring and firing is in the hands of the contractors. The companies do not handle
sick or earned leave of the workers that is again violation of laws. They are not given any notice
or reason regarding removal from the work as told by respondents.
g) Health and Social Security
The interaction with labourers and other workers indicates that young workers in this sector do
not have any health related problem except some seasonal fever and minor injuries etc. data in
this regards is 82 % says No while 18 says Yes. Persons who are in this profession for a long
time have cough, chest discomfort, regular body ache and age related problems. In case of major
accidents and severe fever like dengue, the contractor bears the medical expenses but for minor
injuries, workers have to pay from their own pockets as told by Bptp contractor. During the
survey it was discovered that a worker had been hit by an iron rod and had got injured. He paid
the medical expenses from his own pocket. When questioned about that he said the contractor
and the company are thieves and have no medical facility at the work site. Though laws specify
the provision of medical related facilities, no such facilities are available on the ground level.
Even for a minor injury workers go to local doctors who are quacks. As told by Pioneer workers
the Company does inject iron-related workers with tetanus from time to time. The survey also
revealed that at all surveyed company site, there is no doctor at all. There is no normal checkup
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routine of the workers. The personal medical expenses are too high when compared with their
earnings.
Since 82 % of the workers said they do not have health related problems therefore medical
expenses can be as low as less than Rs. 500 represented by 48%, followed by 27% workers who
spend Rs. 500 to Rs. 1000 Rupees on healthcare annually. None of the construction site has toilet
facilities. Some lack drinking water facilities too. The workers have to go the residential place
whenever they need to use a toilet. Bptp, L&T and Pioneer have drinking water facilities nearby
distance. Some workers prefer to take their own drinking water in a plastic bottle. Pioneer is the
only company that provides crèche to its workers. In other sites workers keep their children at
the living place with their other siblings who look after them. Living in such a harsh condition
they are not able to save money. Only about 50% of the surveyed workers are able to save
money. But the amount of saving is very little. Those who save prefer to send it to their families
in the villages through the contractor (9%) or through the bank (34%) or by both (5%).
8. Construction Workers: Living Condition
The living conditions of construction workers are far from acceptable. Most of them live in
brick and tin made kuchha house. The Company provides them these sheds without charging any
cost. The size of these rooms is very small and 5 people squeeze to accommodate themselves in a
room. Bestech, Bptp, and Pratibha company’s sheds are in pathetic condition. Workers said that
they have toilet facilities and that these toilets are in hygiene condition – these statements were
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made in front of contractors and therefore cannot be trusted to reflect the reality. The surveyor’s
own observations near Bptp residential sites show workers preferring open defecation to the dirty
toilets. The medical facilities in these colonies are maintained by unqualified medical persons
and there is no facility for serious illnesses.
Though there is no guard watching the workers in these colonies (except in Pratibha
construction), most of the colonies are in reality watched by contractors who keep an eye on
every worker and his/her movement.
The electric supply in Bptp and Bestech is for limited periods, say 2 to 3 hours in the
evening, by a generator. The surveyor was told that the interruption in this electric supply is due
to the death of 2 labourers by electric shock of open wire in Bptp’s residential colony. Due to
this the company has stopped their regular supply, which is again a violation of BOCW Act. At
living sites they get water supply at regular interval. Unlike other places in Gurgaon where
workers are compelled to shop from the landlord’s shop only, here workers are not restricted to
any particular shop. They spend much of their money on Gas at Rs 120/ to 130/ per kg. Most of
the workers bear the expenses on their own except at Bestech and Pioneer where the Contractor
provided cooked food to their workers three times a day. They deducted that amount from their
salary of Rs. 260/ per day and pay them Rs. 170 instead. Those who are living in a group of 5 to
6 have an average expenditure of Rs. 500 to Rs. 600 per person per month. Those who are living
with their family have gas expenses up to Rs.1,500/- per month. Coming back from work and
making food is very tiring for them. They wake up early in the morning and make fresh food for
their breakfast which they also consume at lunch. By the time they reach home they are left with
no energy and eat whatever is there to eat. They generally go to their work sites early and return
back to their living place late and that leaves no time for interaction with local people. There day
to day interaction with the local people is limited, as the survey revealed. Therefore the
responses are superficial. During the field visit to the local markets near living sheds of the
workers, Doctors (quacks) accept that police charged money from them in the form of bribe
.Workers whose kids are living in their villages are going to school and those who are living near
to construction sites are sending their kids to school at Badshahpur village.
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7. Union and Labour Laws
Gurgaon is a place where lots of construction work is going on. No union is working for the
betterment or better living conditions for construction workers (the surveyor was told of a CITU
union but its presence was not clear). None of the worker is aware or known or heard of any
union. There working condition is as such that there is an urgent need of organising by workers’
for their betterment. Some workers did show their willingness to join such type of activity.
Haryana BOCW (Regulation of Employment and conditions of Service) Rule, 2005. Schemes
notifies under the above Rules are as follows:
Maternity Benefit: The women beneficiaries are given Rs.5,000/- each as Maternity Benefit
during the period of maternity upto two children. (Rule 50)
Pension: On completion of 60 years of age of the workers, the monthly pension becomes
payable @ Rs.500/-. (Rule 51)
Advance for purchase of construction of house: The Board sanctions upto Rs.1,00,000/- as
advance for this purpose for beneficiaries having continuous membership for 5 years. (Rule 53)
Disability Pension: An amount of Rs.300/- P.M. is payable to a beneficiary who is permanently
disabled due to paralysis, leprosy, cancer, TB, accident etc. in addition to ex-gratia payment of
Rs.30,000/-.(Rule 54)
Loan for the purchase of tools: An amount of Rs.5,000/- is payable to the member for purchase
of tools, who has completed 3 years of membership of the Board. (Rule 55)
Payment of Funeral Assistance: An amount of Rs.5,000/- is payable to the dependent/nominee
of the deceased member for this purpose. (Rule 56)
Death Benefit: An amount of Rs.75,000/- is payable to the nominee/dependant in case of natural
death and Rs.1,25,000/- in case of death during the course of employment. (Rule 57)
Medical Assistance: An amount of Rs.200/- for the first 5 days and Rs.20/- each for the
remaining days subject to a maximum of Rs.1,000/- is payable to the worker who is hospitalized
for 5 or more days due to accident or disease. (Rule 59)
Financial Assistance for education: Children of the members are to be given financial
assistance for study purposes on the pattern of Labour Welfare Board Scheme namely
“Scholarship to the Children of Industrial Workers”. This scheme provides financial assistance
between Rs.2,000/- to Rs.12,000/- annually starting from 8th class to Degree/Diploma depending
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upon the percentage of marks obtained by them in the last class not less than 50% marks. (Rule
60)
Financial Assistance for marriage: An amount of Rs.2,000/- each is payable to the member
who has completed 3 years of membership of the Board for the marriage of 2 children. A female
member is given this assistance for her own marriage also. (Rule 61)
Family Pension: In the event of death of a pensioner, 50% of the pension is payable to the
surviving spouse. (Rule 62)
The Haryana government claims to have some new schemes in place as listed below, but implementation of any of these schemes is dubious.
• Health Insurance Scheme • Coverage of chronic diseases • Free traveling facility for religious/historical places • Facilities for crèches and mobile toilets • Mobile Dispensary Vans • Shelters for Construction Workers • Financial assistance for marriage of daughters • Establishment of Labournet Centers in the State
8. Conclusion and Recommendations
The abundant supply of labourers, ready to work for low wages, for the construction industry
is assured by chronic poverty in West Bengal, Bihar, Jharkhand and Uttar Pradesh. Low wages
and violation of minimum wage laws emerges as one of the major issues for construction
workers. Though laws exist for workers’ benefits, lack of implementation of such laws result in
denial of benefits to workers. Workers are forced to work without rest till late at night,, very
often leading to serious accidents causing injuries or death. Most workers tend to be in a
workplace for no more than six months. Workers have to work more than 12 hours a day in
unsafe conditions, and overtime is illegally paid at single rate or at a rate fixed by the labour
contractor. Workers monthly earnings are very low and seasonal. There are numerous violations
of BOCW Act, CLRA Act, Minimum Wage Act, ESI, PF, etc.
Welfare Boards as specified by BOCW have been setup by the Gurgaon Government to
register workers and provide them with identity cards but workers are not aware of this facility
and do not know know how to register themselves. The workers employment contract is oral and
the relationship between the contractor and worker is short lived and denies benefits to the
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workers. The use of labour contractors and sub-contractors has also had a profound effect upon
occupational safety and health. The benefit of social security depends on the attitude and will of
the contractor. The Labour department and industrial and safety health department have
provisions only when workers are enrolled.
According to the survey, labour contractors get their licenses from the concerned states only
after paying bribes. Labour contractors without licenses from Haryana are nevertheless illegally
used by construction companies to provide workers. There is hardly any worker who has heard
of the BOCW Act, and they do not know how to access their legal entitlements. The contractor
employ workers even below 18 years old. Very few workers get the minimum wage of Rs. 191
per day or Rs. 5,731 monthly; none of the workers gets double rate for over time as per the law.
The working hours are not specified and stretched beyond 12 hours. a day. The children of the
construction workers living in company sheds suffer from malnutrition. Children who should be
in school are not enrolled in school; but rather look after their siblings. Long working hours, low
wages, rosk of injury or death, poor housing and sanitation; lack of water are among the worst
problems of the workers.
Due to non-implementation of welfare schemes for construction workers, the cess fund
amounting to Rs 376.98 crore collected from government and public sector undertakings for the
welfare of building workers has remained unutilized in Haryana. During 2007-11 Board received
Rs 383.7 crore out of which only Rs 5.62 crore was utilized on welfare schemes during the above
period. One of the contractors mentioned during survey that Mr. Robert Vadra (Son-in-law of
UPA chairperson Ms. Sonia Gandhi) has close association with Bptp construction; he has
investment in various projects undertaken by Bptp. This shows the political clout that protects
this industry.
Recommendations:
• Credible inspections by the government and penalization of contractors and
employers who violate labour laws
• Proper functioning of the Construction Workers’ Welfare Board.
• Providing health care facilities, free of cost to workers, at company work and
residential sites
• Provision of crèches and other entitlements of women workers
• Registration of all construction workers.
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• Proper payment of wages as per labour laws.
• Regulation of working hours and legal overtime payment
• Mandatory weekly off and earned leave
• Awareness raising of construction workers rights
• Awareness raising about Freedom of Association and access to unionization for
construction workers
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