“LABOUR SCARCITY IN CONSTRUCTION SECTOR-

A STUDY WITH REFERENCE TO ULCCS IN

VADAKARA”

Project report

Submitted in partial fulfillment of the requirements of the degree of

MASTER OF BUSINESS ADMINISTRATION

Kannur University

by
Group-II

Under the guidance of

Miss Anupa .K.Prabhakaran

Chintech School Of Management Studies

Chinmaya Institute Of Technology
Kannur
2010
 GROUP - II

MEMBERS:

1. Rineesh. BR
2. Nirmal Raj.TK
3. Umesh.EK
4. Vipin.BS
5. Shilpa Sashindran
6. Sayana Devi E.C
7. Aghila Premnath
8. Jeena. TM
9. HemaNandini
10. Siji.G.R
11. Nishanh. S
12. Arun Varma
 CERTIFICATE

This is to certify that the project report entitled

EMPLOYMENT SCARCITY IN CONSTRUCTION SECTOR

A STUDY WITH
REFERENCE TO ULCCS-VATAKARA

Is a bona fide record of work done by

GROUP II

and submitted in partial fulfillment of the requirements of the degree of Master

Of Business Administration of the Kannur University

Place: Kannur Miss. Anupa. K. Prabhakaran

Date (Supervising Guide)
 CERTIFICATE

This is to certify that the project report entitled

EMPLOYMENT SCARCITY IN CONSTRUCTION SECTOR

A STUDY WITH
REFERENCE TO ULCCS-VATAKARA

Is a bona fide record of work done by

GROUP II

and submitted in partial fulfillment of the requirements of the degree of Master

Of Business Administration of the Kannur University

Place: Kannur Dr. K. K. Falgunan

Date (Director)
 DECLARATION

Date:

Group
I semester MBA

We declare that the Project entitled “EMPLOYMENT SCARCITY IN

CONSTRUCTION SECTOR-A STUDY WITHREFERENCE TO
ULCCS-VATAKARA” is our original work and it was under the supervision
of Miss Anupa. K. Prabhakaran, Lecturer, Chintech School Of Management
Study, Kannur.

We also declare that this report has not been submitted by us fully or partially
for the award of any degree, diploma, or any other similar title or recognition
before.

GROUP-II
 ACKNOWLEDGEMENT

We would like to express our heartfelt thanks and gratefulness to the ULCCS,
and the people in the locality for having been kind enough to permit us to
undertake this project.

We are deeply indebted to Dr K.K Falgunan, Director Chinmaya Institute of

Technology for giving us the opportunity to carry out this project.

We express our immense gratitude to our mentor Miss Anupa. K. Prabhakaran,

lecturer, School of Management Studies, Chintech who has helped us during the
course of our project.

We are also thankful to all other faculty members in the Department of

Management Studies and all our friends who have helped us during the course
of project.

Last but not the least we are thankful to the Lord almighty who led us in the
right way to attain the successful completion of this project.

GROUP-II
 INDEX

Chapter 1: Introduction and design of the study

 Introduction
 Statement of the problem
 Objective of the study
 Sample design
 Methodology and data collection
 Tools of analysis
 Chapter scheme

Chapter 2: Literature Survey

Chapter 3: Industry Profile And Company Profile

Chapter 4: Analysis and Interpretation Of Data

Chapter 5: Findings, Suggestions and Conclusions

Bibliography

Appendix
 CHAPTER-1
INTRODUCTION AND DESIGN OF THE STUDY
INTRODUCTION

The entire change and development of a civilization to a large extent is the result of
trade, commerce and industrialization. In this development, the human resource in general
and entrepreneur in particular plays a pivotal role. One of the main sectors that got
opportunity to develop more because of these developments is the “Construction sector”.
Infrastructural development is very important for industrialization. So this leads to a high
growth in the area of construction and related sectors.
It is one of the sectors which provide lakhs of employment opportunities in the world.
It is one of the sectors which can solve one of the main problems of India “Unemployment”.
Almost every Indian company, big or small, that has some expertise in construction,
finds itself flooded with orders that are nearly three to four times its annual sales. The size
and pace of orders could threaten the development of the country's already creaking and
short-supplied infrastructure. Although construction companies are prepared to spend money
to raise their production capacities, experts say that a shortage of skilled talent and the limited
ability of capital equipment suppliers to meet demand, means that skillful project
management and innovative solutions will be necessary to prevent bottlenecks.

Forecasts by the industry experts state that, the planned roll-out of highways alone by
the National Highways Authority of India (NHAI) over the course of the next 10 years would
exceed the total turnover of all construction companies in India today. "Construction
companies have never seen such a boom in India. Even if they all did only road projects and
left all work on building airports and power plants aside, NHAI still has more work to offer
than firms can take," he says.

India will need several billion-dollar, pure-play construction companies to be able to

execute projects, but it has only a couple of such companies, calling into question the ability
of the private sector to build out infrastructure in a public-private partnership mode.

It's difficult to fathom the words "talent shortage" in a country of a billion people
that's getting younger over time. But speak to any infrastructure builder, and we’l hear
anecdotes about shortages of trained fitters, welders, masons and plumbers. Whether they
will get the people necessary to support the growth is the real challenge. Blue-collared skilled
workers are in short supply. The construction industry remains one of India's largest
employers. Realizing the need for skilled vocational staff, the industry has begun
collaborating with academic institutions to train staff.

Training is important, because by mechanizing their operations, companies have

needed to substitute low-end, semi-skilled artisans with comparatively high-end machine
operators who are in short supply. As a result, wages for crane operators and others with
higher levels of expertise have risen faster than the average for other industrial workers.
Many companies have turned to acquisitions to cover their short-term labor needs.

The problem faced by the industry at present is employee shortage & not specifically
skill shortage. Though unemployment in Kerala still remains grave
A mere connection of the two ends is what is required. The study focuses
STATEMENT OF THE PROBLEM

India is one of the emerging power in the world it has a high growth in its economic
sector. Then also one of the main problem faced by india is un employment problem which
will stand as an obstacles in the growth of indias economic sector. Here arise the importance
of fishing sector. when it comes to employment the section is …….. Indian government is
organizing many programs and projects in order to reduce the problem of unemployment.
ULCCS is one of the largest labour co-operative society situated in Nadapuram road of
Calicut district with an objective of providing employment to the general public. Now they
are one of the major constructors and have enough projects to provide the employment to the
public. But during the year 2007-08, they were forced to change their strategy because of the
problem, lack of employees in the field of construction. It is happening in a state where
unemployment problems are still existing. So far research have been made on unemployment
problems, no specific research has been focused on “The reason for lack of employees in the
field of construction”. This study is mainly intended to focus the reasons for these problems.
OBJECTIVE OF THE STUDY

 To study the reasons for negligence towards construction works.

 Attitude of the public towards employment in the construction field
 To study the influence of education on the attitude of employees
 To develop a model for solving the problem of labour scarcity

SAMPLE DESIGN

For the purpose of the study the sample comprising of 75 respondents from Onchiyam
panchayath were selected. The households nearby the locality of ULCCS form the base of the
sample.

METHODOLOGY

The present study is based on both primary and secondary Data. Primary data have
been collected from the employees of the ULCCS the people residing in the surrounding
areas of the Onchiyam Panchayath
Secondary data were collected from magazines, articles of ULCCS and websites.

TOOLS OF DATA COLLECTION

The data were collected using pre-tested structured instrument Questionnaire. The
questions are designed in such a way that can elicit information on the reasons for the scarcity
of employees in the field of construction in Kerala.
The interviews were conducted with the employers of ULCCS and questionnaires
were used for eliciting information from the public
TOOLS OF DATA ANALYSIS

The data collected were analysed by way of simple percentage calculation. The
analysed data were presented by way of tables and graphs.

CHAPTER SCHEME

The project report is presented in 5 chapters:-

1. The first chapter gives an introduction to the study. It deals with the introduction,
statement of the problem, objectives, sample design, tools of data collection, tools of
analysis & the chapter scheme.
2. The second chapter reviews the literature on Scarcity of labour in the construction
field.
3. The third chapter highlights the profile of the industry and ULCCS.
4. The fourth chapter analyses the data collected
5. The fifth chapter presents the findings, suggestions & conclusion of the study.
 CHAPTER II
LITERATURE SURVEY
KERALA STATE CENSUS IN THE YEAR -2001

Census 2001 put Kerala's population at 31,841,374 persons which included

15,468,614 males and 16,372,760 females. Although Kerala accounts for only 1 per cent of
the total area of India, it contains about 3 per cent of the country's population. The population
density of the state is about 819 people per square kilometers, three times the national
average. Kerala is one of the densest States in the country and it recorded a decadal
population growth of + 9.42% (2,740,101 persons). Kerala, with a sex-ratio (females per
1000 males) of 1058, is the only state in India with a positive figure. In the human
development and related indices it occupies prime position among the Indian States.

Table No. 2.1

Kerala District wise Population

Populatio
District Males Females
n

Thiruvananthapura
3234356 1569917 1664439
m

Kollam 2585208 1249621 1335587

Alappuzha 2109160 1014529 1094631

Pathanamthitta 1234016 589398 644618

Kottayam 1953646 964926 988720

Idukki 1129221 566682 562539

Ernakulam 3105798 1538397 1567401

Thrissur 2974232 1422052 1552180

 Palakkad 2617482 1266985 1350497

Kozhikode 2879131 1399358 1479773

Wayanad 780619 391273 389346

Malappuram 3625471 1754576 1870895

Kannur 2408956 1152817 1256139

Kasargod 1204078 588083 615995

31,841,37 15,468,61 16,372,76

Total
4 4 0

Source : Census India 2001

Malappuram is the most populated district and has a population of 3629640 persons.
Second is Thiruvananthapuram with a population of 3234356 persons followed by Ernakulam
with 3105798 persons. Wayanad is the least populated district followed by Idukki and
Kasargod.

Whereas, Alappuzha with a population density of 1496 persons per sq.km is the most
densely populated district in Kerala followed by Thiruvananthapuram with 1476 persons per
sq.km and Kozhikode with 1228 persons per sq.km. Idukki with a density of just 252 persons
per sq.km is the least densely populated district followed by Wayanad with a density of 369
persons. The average density of population of the state is 819 persons per sq.km.

Hindus, who constitute 56.20 per cent of the total population, is the most prominent
religious community in the state. This is followed by Muslims who form 24.7 per cent of the
population and Christians who constitute 19 percent of the total population. Also, a small
number of Sikhs, Buddhists, Jains, Jews and other religious communities are also present.

Kerala's urban population figures to 8266925 persons which is about one-fourth of the total
population. Of the total population of Kerala, working population (main and marginal
workers) constitute 32.3% and non-workers form 67.7%.

Table No. 2.2

Total Working and Non-Working Population of Kerala

Main Marginal
Total Workers Non-Workers
Workers Workers

10291258 21547361
8236741 2054517
(32.3%) (67.7%)

Kerala being an agricultural state with an agrarian economy, a good percent of its population
is confined to agriculture or other agro base industry.

Table no. 2.3

Category of Workers (Main and Marginal)

Agricultural Household
Cultivators Others
Labourers Industries

740403 7532484
1653601 (16.1%) 364770 (3.5%)
(7.2%) (73.2%)

SOURCE: Census India 2001

LABOUR SHORTAGE HITS CONSTRUCTION ACTIVITY
Notwithstanding the healthy flow of investments, the buoyant construction industry is
hit by shortage of labour and the builders are running from pillar to post to ensure a steady
availability of workers.

The problem is not an isolated phenomenon. "According to our information, the

construction activity in many parts of the country is hit by the paucity of construction
workers," Mr V.V. Siva Rao, Director, National Academy of Construction, told Business Line
here.

The shortage was slowing down the construction activity in many States including
Andhra Pradesh, Karnataka and Maharashtra, he said. Though the actual numbers were
difficult in view of the unorganised nature of the sector, the shortage could be in the tune of
20 to 30 per cent on the basis of informal inputs from the builders, Mr Rao said.

The reasons for the shortage are many and varied. "We have found that there is a
reluctance on the part of the rural poor to migrate for work to distant places. This may be due
to the increased opportunities available locally," Mr Rao said.

Further, construction workers are looking to move up on occupational scale. "Most of

them are interested in taking up masonry, carpentry and bar-bending which is evident from
the feedback on our training programmes," the NAC official said.

However, the situation in Bihar was somewhat better. "There is a large chunk of
construction workers who are migrating to the South," according to Mr S.N. Reddy,
Chairman, Builders Association of India (Andhra Pradesh).

"Many migrant workers from Bihar are already working in Andhra Pradesh and
Karnataka and the builders are increasingly looking to source more workers from Bihar," he
said. The labour from Mahaboognagar district is also fanning to different areas, he added.

"We are expecting the construction activity to go up significantly in view of the

elections over next two years and the general boom in the industry. There may be more
scarcity for workers in the future," said Mr Reddy.

The infrastructure industry is facing shortage of construction labour and the builders
are looking to other States for meeting their requirements.

"There is a serious shortage of labour in the industry and this is slowing down the
pace of projection completion," Mr S.N. Reddy, President, Builders Association of Andhra
carpentry.

Source: Business Line

Wednesday,may 16,2007

LABOUR MIGRATION TO KERALA:

A STUDY OF TAMIL MIGRANT LABOURERS IN KOCHI
Kerala is witnessing large inflow of migrant labour from different parts of the country
in the recent years. Though labourers from states as far as West Bengal, Bihar, Uttar Pradesh
and Orissa now flock to Kerala, those from Tamil Nadu outnumber others by a big margin.
Within the state, Ernakulam accounts for the largest number of migrants. While a relatively
small section of the migrants from other states are professionals and skilled workers, large
majority of them are unskilled or semi skilled workers engaged in construction, road works,
pipe laying etc. Of late the migrants have also entered agriculture, labour intensive sub
sectors of industry and many services. The shortage of local labour, higher wages for
unskilled labour in the state and opportunities for employment led to the massive influx of
migrant labour to the state. It is interesting to note that while many Malayalees migrate to the
‘Gulf’ countries (Middle East) both for skilled and unskilled work, many of the unskilled
labourers from other parts of the country consider Kerala as their ‘Gulf’. With signs of rapid
growth of state’s economy and the increase in activities particularly in the infrastructure and
construction sectors, the in-migration is expected to grow faster in the coming years.

According to the Census 2001, 1.3 per cent of the population of Kerala are migrants
(by place of birth) from other states. The largest number of in-migrants in the state is from
theneighboring state of Tamil Nadu. Significant number of migrants also came from
Karnataka. While 67.8 per cent of those who have migrated to Kerala from other states had
their place of birth in Tamil Nadu, 13.5 per cent had their place of birth in Karnataka. Other
regions from where people have migrated to Kerala include Maharashtra (4.5 %), Andhra
Pradesh (2.3 %),Pondicherry (2.1%), Uttar Pardesh (1.4 %) and West Bengal (1.0%)

Tamil Workers in Kochi

Tamil unskilled workers are broadly of two types viz., those working on contract
basis and those seeking work in the labour market on a day to day basis. While the former
works under a contractor or an agent for a fixed period of time, the latter waits for the
employer almost every day in some of the centres in Kochi which have become literally
“labour markets”. Some of the centres are: Vathuruthy, Kadavanthra Junction, Kaloor
Junction, Market Junction in Banerjee Road, Edappally and Thrikakkara . One can also find
spatial concentration of migrants’ dwelling places in certain neighbourhoods such as
Vathuruthy, Vazhakkala, Edappally and Thrikkakara. Discussions with some of the
employers and contractors indicate that there is a preference for migrant workers over local
labour because of the former’s willingness to work for longer hours.There is also a feeling
among the contractors and employers that the migrant workers are more obedient and non-
complaining than their Malayalee counterparts.

Push and Pull Factors of Migration

According to ‘push’ and ‘pull’ theory, migration may occur as a search for an
opportunity to improve one’s lot in life. The destination exerts a ‘pull’ on the migrants.
Migration can also occur as a flight from undesirable social or economic situations which
constitute an expulsive push by the community (Bogue, 1969)., it was the low wages and the
lack of opportunities in their native village which were the primary factors that have pushed
them out of their villages. Drought/water scarcity in their villages also has forced some of the
respondents to migrate temporarily. The high wage rates and more employment opportunities
were the factors that pulled them to Kochi).
Table: Push and Pull Factors of Migration (%)
Table No. 2.4

Causes of migration Male Female Total

Low wage in the village 66.0 66.00 66.00

Lack of job opportunities 40.0 48.0 44.0

in the village

Water scarcity/drought in 28.0 42.0 35.0

the Village

Migration of spouse 0.0 4.0 2.0

Family problems 2.0 2.0 2.0

Others 10.0 0.0 5.0

Source : secondary data

Average Wage Rates in Kochi and in the Places of origin

On an average, the earnings of the workers after migration were three times their
earlier earnings in Tamilnadu. The difference was much higher in the case of women
migrants. While women migrant workers get about three and half times what their
counterparts in their home villages get for a day’s work, male migrants get about two and half
times (235 per cent) the wages in their home villages. The differentials in wage rates of men
and women in Kochi were less than in their native villages.

Table : Average Wage Rates in Kochi and in the Places of origin

Table No. 2.5

Particulars Wage in Kochi Wage in Home

Village

Male 226 96
 Female 196 56

Source : secondary data

Positive Aspects of Working and Living in Kochi

As noted earlier, better wages in Kochi is the most important factor that attracted
people to Kochi. Opportunity for getting work is the other important work-related attraction
for Kochi. Some of them are happy as they could get the job they preferred. Among the
factors related to the living environment in Kochi, the most cited one was the availability of
accommodation facility in Kochi. About half of the respondents felt so. Good transport
facilities and good food were the other positive aspects of Kochi’s living environment as
reported by the migrants.
Source:

SURABHI K.S., N.AJITH KUMAR, Working Paper No.16, October 2007

Centre for Socio-economic & Environmental Studies (CSES)

 CHAPTER III
INDUSTRY & COMPANY PROFILE
 CONSTRUCTION INDUSTRY – A PROFILE

CONSTRUCTION INDUSTRY
Construction Industry is one of the biggest industries in the whole world. The
contribution of this industry towards the global GDP revolves around one-tenth of the total
amount. Construction Industry is also a potential employment generator and provides work to
almost seven percent of the total employed person in the whole world. The extent of this
industry has become so vast that the energy, in the form of electricity or fuel, consumed by it
hovers around two-fifth of the total energy consumed all over the globe. The resources that
are utilized in Construction Industry is also staggeringly high and itself consumes fifty
percent of the total world resources.

Construction Industry is the base of the world economy which is achieved

through the construction of real estate properties (both residential and commercial), bridges,
tunnels, roads, railway tracks and compartments, airports, roads, etc.

Today’s global construction market is worth an estimated $7.5 trillion in 2008

prices. The global construction market in 2020 will be worth an estimated $12.7 trillion in
2008 prices. Developed countries are expected to lag emerging markets with zero growth in
developed countries in 2010 but growth accelerating by 4.4% in 2011. forecasts show China
will overtake US as the largest construction market by 2018. Growth in construction output in
India will accelerate faster than in China up to 2020, growth in construction output in
emerging markets will be more than three times that of developed countries over the next
decade.

Nature of the Industry

Goods and services. Houses, apartments, factories, offices, schools, roads, and
bridges are only some of the products of the construction industry. This industry's activities
include the building of new structures, including site preparation, as well as additions and
modifications to existing ones. The industry also includes maintenance, repair, and
improvements on these structures.

The construction industry is divided into three major segments. The

construction of buildings segment includes contractors, usually called general contractors,
who build residential, industrial, commercial, and other buildings. Heavy and civil
engineering construction contractors build sewers, roads, highways, bridges, tunnels, and
other projects related to our Nation’s infrastructure. Specialty trade contractors perform
specialized activities related to all types of construction such as carpentry, painting,
plumbing, and electrical work.

Construction usually is done or coordinated by general contractors, who

specialize in one type of construction such as residential or commercial building. They take
full responsibility for the complete job, except for specified portions of the work that may be
omitted from the general contract. Although general contractors may do a portion of the work
with their own crews, they often subcontract most of the work to heavy construction or
specialty trade contractors.

Specialty trade contractors usually do the work of only one trade, such as painting,
carpentry, or electrical work, or of two or more closely related trades, such as plumbing and
heating. Beyond fitting their work to that of the other trades, specialty trade contractors have
no responsibility for the structure as a whole. They obtain orders for their work from general
contractors, architects, or property owners. Repair work is almost always done on direct order
from owners, occupants, architects, or rental agents.

The construction industry has been strongly affected by the credit crisis and
recession that began in December 2007. Housing prices fell and foreclosures of homes rose
sharply, particularly in overbuilt areas of the country. New housing construction, while still
ongoing, dropped significantly. The recession is expected to impact other types of
construction as well. Retailers are refraining from building new stores and State and local
governments are reducing spending. However, as energy costs have risen, some companies
are finding it necessary to build or renovate buildings that are not energy efficient. "Green
construction" is an area that is increasingly popular and involves making buildings as
environmentally friendly and energy efficient as possible by using more recyclable and earth-
friendly products.

Working Condition
Most employees in the construction industry work full time, and many work
over 40 hours a week. In 2008, about 18 percent of construction workers worked 45 hours or
more a week. Construction workers may sometimes work evenings, weekends, and holidays
to finish a job or take care of an emergency. Rain, snow, or wind may halt construction work.
Workers in this industry usually do not get paid if they can't work due to inclement weather.

Workers in this industry need physical stamina because the work frequently
requires prolonged standing, bending, stooping, and working in cramped quarters. They also
may be required to lift and carry heavy objects. Exposure to the weather is common because
much of the work is done outside or in partially enclosed structures. Construction workers
often work with potentially dangerous tools and equipment amidst a clutter of building
materials; some work on temporary scaffolding or at great heights. Consequently, they are
more prone to injuries than workers in other jobs. Data from the U.S. Bureau of Labor
Statistics show that many construction trades workers experienced a work-related injury and
illness rate that was higher than the national average. In response, employers increasingly
emphasize safe working conditions and habits that reduce the risk of injuries. To avoid injury,
employees wear safety clothing, such as gloves, hardhats, and devices to protect their eyes,
mouth, or hearing, as needed.
 Co-operative Movement

Introduction to co-operative movement

Co-operation is as old as human civilization. England is considered to be the birth
place of co-operative movement in world.
It has been universally recognized that co-operation is the most potent remedy for the
economically backward countries. In a poor country like India, co-operation played a very
important role in the uplift of the masses. The co-operative movement which steered with a
humble beginning at present embraces a variety of fields and has helped the less fortunate
people in all walks of life by saving them from the exploitation of the capitalist and the
middleman including them ideas of self help and mutual help, it has created fellow feelings
and has been instrumental in paying the way for a peaceful and prosperous society.
Robert Owen's experiments created an atmosphere favorable for the origin of co-
operative movement. He laid foundation stone for the co-operatives. Therefore he is rightly
called as the father of co-operation and the founder of co-operative movement.

Co-operative movement in India.

Co-operative movement was introduced in India as a state policy. It was formally
inaugurated by the enactment of co-operative Credit Societies Act of 1904. Government was
the prime mover of the co-operative movement of India. To some extent, the idea of co-
operation was borrowed from western countries. In 1901, a committee under the
chairmanship of Sir. Edward Law was appointed by the Government of India to consider the
question of introducing co-operative societies in India. This committee recommended the
Raiffeisen type societies as the best suited to Indian conditions. As a result the first co-
operative Credit Societies Act of 1904 was passed.
A new Act was passed in 1912 which removed the defects of previous Act and
provided scope for all round development and progress of the movement.
Co-operative movement in Kerala
When Kerala state was newly organized in 1956, by merging the Travancore-Cochin
state and Malabar, which is the part of former Madras state, two different co-operative laws
were in operation, which is Travancore-cochin co-operative Societies Act of 1951 in
Travancore Cochin and Madras co-operative Act of 1932 in the Malabar area. Hence from
the very inception of the state, there was the necessity for a uniform legislation covering the
above two areas. Further the activities of the co-operative movement was fast expanding and
diversifying. Hence certain changes in the existing laws were also inevitable to suit the
present stage of development of the co-operative movement.
There by Government took initiative to bring new legislation. But since however it
was prolonged and could not materialized. Finally in 1956, the present Act called “Kerala
Co-operative Societies Act” was passed.

Labour contract societies

Italy has made a special contribution to the co-operative movement by introducing a
node of combination by which a number of workmen join together for preventing the
economic exploitation of their laborer. The labour co-operative of Italy have aroused widest
international interest. They undertake the execution of work in exchange for some
remuneration which is distributed among the member, according to their rules. They under
take diverse works such as reclamation of waste land, road building, engineering Jobs etc.
In present, the spurt of construction activities in the country particularly in the public
sector has a wide scope for labour contract societies. Unemployment is one of the serious
problems of these days. Labour Co-operative can provide gainful employment to a large
number of people especially to the weaker section of the community who are otherwise
skilled or unskilled. Another advantage of this type of society is that employees receive
adequate wages and they are protected from exploitation of private contractors.

Labour contract societies in India

Before independence there were no many labour contract societies in India. After the
attainment of independence, the number of such societies increased suddenly. The liberal
assistance and other facilities offered by Government were responsible for such sudden
increase of these societies. As on 30-06-1975 there were 9147 labour co-operatives including
forest labour co-operatives. The highest number in in Maharashtra state. The ministry of
Railways has been extending various facilities to labour co-operatives. Food corporation of
India has also agreed for labour award transport handling contracts to co-operatives on
preferential basis. In the year 2000, there were 29880 labour contract societies in India.

Labour contract societies in Kerala

Labour contract societies in Kerala were 450 by the year ended 2002. State
Government provides facilities and there by the Government could reduce unemployment to
a certain extend. In 30-06-1982, there were 84 labour contracts co-operatives in Kerala with a
membership of 19535. Most of the societies were formed during the second five year plan
period. In the context of 20 point economic program, labour contract societies had special
significance as they provide employment and income opportunities to the weaker section of
community. Under the special employment scheme, Government is pleased and encouraged
to start more number of labour contract societies in India.
 COMPANY PROFILE

URALUNGAL LABOUR CONTRACT CO-OPERATIVE SOCIETY – A PROFILE

A brief History:

The Uralungal Labour Contract Co-operative Society is a construction society

established in 1925 and registered under Co-operative Societies Act. The origin of the society
can be traced back to the reformist movement led by Sri. “Guru Vagbadanantha” against rigid
caste barriers that prevailed in the early half of the 20th century, under the banner
“Athmavidya Sangham”. This sangham organized campaigns against superstition and
practices prevailing in that time. This resulted in a lot of members being ousted from their
jobs. These people joined together with an objective of solving the unemployment problems
and the “Uralungal Coolie Velakkarude Paraspara Sahaya Sangham” was formed with
initial membership of 14 members, with Sri.Chappayil Kunjekku Gurikkal as president. The
society started off by taking up the public works of Malabar District Board. During the initial
stages of the society the members dedicated themselves to the growth of the society by giving
up their wages. The society renamed as “Uralungal Labour Contract Co-operative Society
Ltd”, in 1967.
VISION
To safe guard the well being of those lives, who have been forbidden the freedom of
work, to render shade and support to those souls which had been orphaned, and to protect of
those lives who were socially, economically and communally weak.

MISSION

The focus of our activities is on societal uplifting and nation rebuilding by providing
appropriate job opportunities to the downtrodden, through collective initiative of our
members in attaining better heights.

Objectives of the Society

Following are the major objectives of the society.
 To find solution for betterment of employment prospects among members, to
encourage savings, co-operation and self independence among members to propagate
the principles of co-operation to implement it.
 To take labour contract and to carry it out by providing employment opportunity to
the members.
 To provide tools and machineries for labour to the members procuring either for rent
or for price and to give those tools to the members for rent or for price.
 If found necessary, society will manufacture tools by conducting workshops.
 To conduct other activities in furtherance of the above mentioned objectives.

Location of the Society

The society is situated at Nadapuram road in Onchiyam Grama Panchayath at
Badagara Thaluk in Kozhikode district.

Office
The Society has well setup office with qualified and experienced staff members led by
the secretary. They have embarked upon the strategy of adoption of technological innovations
by computerizing our head and site offices.
Area of operation
Various districts of Kerala including, Kozhikode, vayanadu, kannur, kazhergode,
palakkadu, malappuram etc.

Management and administration of the society

The power of governing and administration of the society, vested in a committee
which is formed by appointment of general body from time to tome.

GENERAL BODY
The general body shall have the last word in the decisions of the society. The
important policies of the society have to be passed in general body meeting. At least 12
members are to be presented in general body meeting for taking decisions. The committee
must call its meeting twice in a month or more if it is necessary.

SECRETARY
A salaried full time secretary shall be appointed by the committee with the permission
of the Deputy Registrar. He is not a member of the society. He has no voting power and he is
required to submit surety bond which is fixed by the board and approved by the registrar. The
secretary must be responsible for the affairs of the society under the control of the president,
and he is the treasurer in office, custodian of the movable and immovable properties of this
society.

PRESIDENT
The committee members shall elect a president from among them. The president has
the power of supervising the affairs of the society, appointing officers, take disciplinary
actions such as fine, suspension, dismissal etc, against the officers. But he can suspend or
dismiss them with the prior approval of the committee. All documents are in the name of the
president and he has the right to carry out cases on behalf of the society. General body
meeting of the society is presided by the president.
ORGANIZATIONAL CHART
MEMBERSHIP
Membership is given as “A” class, “B” class and “C class”. “A” class shares are
available to each and every member, “B” class shares are provided to Government and
District co-operative bank. The value of each share has to be paid in full at the time of buying
the share. There is no admission fees incase of “B” class shares. C class membership is given
to the newly appointed workers of the society. For getting A class membership, one should
work atleast 1 year in society and he will get A class membership only if his performance are
satisfied.
The members include skilled and un skilled labourers and technically experienced
overseers and engineers. All the members must have complete knowledge on road, mettaling,
and in construction field. Membership is given to the nonmembers on the basis of their
quality of work, expertise, sincerity, skill and loyalty. Membership is given to the workers
coming under Calicut district only.

DETAILS OF MEMBERSHIP
Table No: 3.1
A class members 699 nos

Vatakara 250
Onchiyam area 250
Payyoli panchayath 25

Kozhikkode 75
Koylandy 10
Kallachi 15
Azhiyur 15
Eramale 59
Source : secondary data
DETAILS OF C CLASS MEMBERS
Table No: 3.2
C class members 255 nos
Place Number
Vatakara 150
Kozhikkode 50
Onchiyam 25
Malappuram 5
Source : secondary data
 DETAILS OF NONMEMBERS
Table No. 3.3
Category numbers

female members 450

male members 350

Total 800

Source : secondary data

DETAILS OF A CLASS MEMBERS

Table No. 3.4
Details of A class members
I.a) female 84
b) male 610

II. a) bellow 20 0
b) 20 -30 186
c) 30 -40 246
d) 40 -50 178
e) 50 -60 72
f) above 60 12
III. a) bellow 10th 558
b) 10thfailed 82
c) 10thpassed 12
d) preedegree failed 10
e) technical(civil diploma) 32
CONCEPT OF COMPENSATION
Compensations is referred to as money and other benefits received by an
employee for providing services to his employer. Compensation is one of the
important motivating factor in the eyes of HR management.
Compensation includes direct cash payment, indirect payments in the form of
employees benefits and incentives to motivate employees to strive for higher level of
productivity.
 Wage and salary
It is the most important component of compensation. Wage is referred to as
remuneration to workers particularly hourly rated payment. Salary refers to as
remuneration paid to white-collar employees including managerial personals.
 Incentives
Incentives are the additional payment to employees besides the payment of wages
and salaries. Often these are linked with productivity, either in terms of higher
production or cost saving or both.
 Fringe benefits
These are include such benefits which are provided to the employees either having
long term impact or short term impact.
 Retirement benefits
Retuirment benefits are those benefits which are received to the labour,
after his retirement from the organization. The major retirement benefits
are..
Provident fund
Under the provisions of Employee’s provident fund and miscellaneous
Provisions Act, 1952 the employer has to contribute 8.33% of
wages/salaries of employees every month. And this accumulated amount
will be paid to the employee when he retires.
Pension scheme
A pension represents the payment of a fixed amount to a retired employee
which has fulfilled certain specific condition of employment.
Gratuity
The payment of gratuity is regulated by the payment of Gratuity Act, 1972.
Gratuity is payable to all employees after the termination of their services
 by way of their retirement or resignation provided they have completed
five years of continuous services. The gratuity is payable at the rate of 15
day,s wages/salaries for each year of completed services subject to a
maximum of Rs……
 Compensation benefits
They are payable under two conditions, under Workmen’s Compensation
Act, 1923 and under Contractual obligations. Under the Act, the
compensation is payable in the case of injuries, Fatal or otherwise, to
worker during course of his job performance. Under contractual
obligations, as employer is liable to pay equivalent to 3 months wages or
salary or any other sum specified under the terms of employment.
 Insurance benefits
Insurance benefits are payable to employees covered under Employee’s
State Insurance Act, 1848. The employees covered under this Act have to
contribute to the scheme and the employers also have to contribute.
 Payment for time not worked
 Weekly off days
 Gazette holidays – 14 days at present.
 Personal leave – casual leave, sick leave, privilege leave and sick
leave, maternity leave
 Other benefits
Besides above benefits, individual organizations offer a host of benefits to
their employees. Such a benefits includes reimbursement of educational
expenses to the employees and depended children, transportation facilities,
subsidized housing, subsidized meals, refreshment, child care facilities,
recreational and cultural facilities, etc…..
 Perquisites
Such perquisits include company car, club membership, free residential
accommodation, paid holiday trips, stock options etc….
COMPENSATION PLAN OF ULCCS
As a labour contract co-operative society, ULCCS follows an effective compensation
plan for its employees. The society follows best wage rate system by considering type of
works and facilitate other compensation components like, provident fund, gratuity, bonus,
medical aid, insurance, holiday wages, etc in its effective combination. The society provides
such components as differently to the members of the society and to the non members. The
major compensations provided by ULCCS are as follows.
Wage rate system of ULCCS
Wage rate is predetermined by the society by giving due consideration to different types of
works, namely skilled and normal works, and category of employees, namely worker, leader
and also consider whether the employee is male or female. Employees can receive their
wages, with their requirements as daily, weekly or monthly. A portion of wage is retained in
the society from its members as their contribution to the capital of the society.
OTHER BENEFITS PROVIDED BY ULCCS
The basic objectives of society are to provide employment opportunity to its members. In
order to improve the economic status of its members ULCCS provides attractive benefits to
its members and non members of the society. From the analysis of the records of the society,
it is identified that following benefits are provided to their employees.
 Provident fund
It is founded that the provident fund scheme has available only to the members of the
society. The provident fund rate of the society is 12% on wages of employees. This
amount is provided along with their retirement benefits.
 Medical allowance.
A medical allowance is given to the members of the society as 2.5 on their wages.
 Bonus.
Like all other organizations the ULCCS also providing a good bonus facility that is
20% on total wages of the employee received. The bonus is available to employees of
members and non members twice in a year
 LIC contribution is providing only to its members of the society and the assistance is
given on policy taken by employees itself as society contribute Rs. 1000 or 50% of
policy amount whichever is lesser
 Gratuity
Gratuity is also available only to the members of the society. The gratuity is given on
following conditions
 10 years service completed
 At least complete 50 years of age
 Gratuity is limited up to the age of 60.
 Medical treatment in case of accidents.
It is given in case of injuries while working, the cost of the treatment is met by the
society and half of their wage is given to members till their recovery. This facility is
provided to all employees in above cases.
 Holiday wages
The society also providing holiday wages to the members of the society who are in
continue in work for that week.
  Educational allowances to children of workers.
An educational aid is providing to the children of members of the society.
 Financial assistance to marriage.
The society is providing a good financial assistance to marriage for their members and
daughters of members.
 Pension.
A better pension scheme also exists in the society to the members of the society.
 Labour welfare fund.
A labour welfare fund is given to all member of the society.
 Insurance coverage to workers
An insurance coverage is given to all workers of the society without considering
members ad non members of the society.
 Profit sharing
The profit earned by the society will share to their members as 10% dividend extra
with above incentives.
By analyzing above components of compensation provided by the society, we can
identify that the society has providing many of the major benefits to its employees, and it is in
its best combination. The society follows a good wage rate system by considering types of
works and category of workers and there has no consideration to seniority or individuals.
Also the society facilitates all compensation to increase the social security and economic
conditions.
THE URALUNGAL LABOUR CONTRACT CO-OPERATIVE
SOCIETY LTD NO.10957

EXISTING COMMITMENTS AND ON GOING WORK

Table No. 3.5

Sl. Employer Location &Description of Work Value of

No Contract
(Rs. Lakhs)

Superintending Calicut 300388122.00

1 Engineer, National Construction of Calicut Bypass phase II
Highway,Kozhikode from ch:5100 to 11960 on NH 17 in the state
, Kerala of Kerala. Agr. No.22/2008
-09/SE/NH/KKD dated 20/03/2009
2 The Project Calicut 330145066.00
Manager Road Improvement works for Kozhikode
Project Package No.KZD-RT-01. Agr. No.
Implementation KSUDP/PIU-KZD/0I/URT/07-08
Unit,KSUDP, Dt.04/03/2008
Kozhikode,
3 Superintending Kappad 10416092.00
Engineer, Irrigation Development of Kappad Beach in
Department,Kozhik Kozhikode District (Phase I)
ode, Kerala SE(1)5/2007-08 Dt.20/08/2007
4 Secretary, District Peruvannamuzhi. 10192395.00
panchayath, Plan Scheme 2006-07: Construction of
Kozhikode, Farmers Training Centre for Koothali
Agriculture Farm at Peruvannamuzhi in
Chekkittapara Panchayath.
Agr. No. 51/LSGD/2006-07 Dt.13/03/2007
5 Superintending Thuneri 27041481.00
Engineer, PMGSY 2006-07 Phase VI Package No.KR
KSRRDA, 08-14 Thuneri Block inKozhikode District.
Thiruvanadapuram, Including Maintanance for five years after
Kerala completion. Agr. No. 20/SE-CSR 2007-08
Dt.26/10/2007
6 Superintending Kunnamangalam. 51439521.00
Engineer, PMGSY 2006-07 Phase VI Package No.KR
KSRRDA, 08-13 Kunnamangalam Block in
Thiruvanadapuram, Kozhikode District. Including Maintanance
Kerala for five years after completion. Agr.
No.19/SE-CRD/ 2007-08 Dt.26.10.2007
 Superintending Kunnamangalam. 15507272.00
Engineer, PMGSY 2006-2007 Phase VI Package No.
7 KSRRDA, KR 08-16 Kunnamngalam Block in
Thiruvanadapuram, Kozhikode Distict, including maintenance
Kerala for Five Years after completion.Agr. No.
21/SE-CRD-2007-08 Dt. 26/10/2007
8 Superintending Kunnamangalam. 55571169.00
Engineer,, PMGSY 2006-2007 Phase VI Package No.
KSRRDA, KR 08-18 Kunnamngalam Block in
Thiruvanadapuram, Kozhikode Distict, including maintenance
Kerala for Five Years after completion.Agr. No.
21/SE-CRD-2007-08 Dt. 26/10/2007
9 Superintending Thodanoor. 17413709.00
Engineer,, PMGSY 2005-06 Phase V package No. KR
KSRRDA, 08-09 Thodanoor Block in Kozhikode
Thiruvanadapuram, District, including maintenance for five
Kerala years after completion.
Agr. No. 2/SE-CRD/2007-08 Dt.28/09/2007
10 The Director, co- Alapuzha. 37555441.00
operative Acadamy Contuction of Main Block for College of
of professional Engineering at punnapra, Alapuzha.
Education,
Thiruvanthapuram
11 Superintending Koduvally. 15974585.00
Engineer, KSRDA, PMGSY 2006-07 (Phase IV) Package No.
Thiruvanadapuram, KR 08-11(F) Koduvally Block in Kozhikode
Kerala District. Agr.No.84/SE-CRD/2007-08
Dt.29/02/2008
12 Superintending Koduvally. 14932798.00
Engineer, PMGSY 2006-07 (Phase IV) Package No.
KSRRDA, KR 08-11(A) Koduvally Block in Kozhikode
Thiruvanandapuram, District. Agr.No.85/SE-CRD/2007-08
Kerala Dt.29/02/2008

13 Superintending Kallachi.NABARD-RIDF-XII- 26882059.00

Engineer,PWD improvements to Kallachi- Valayam-
Roads &Bridges, Chuzhali-Puthukkayam Road from Km 0/00
Kozhikode, Kerala to 4/700 Agr.No.SE(K)29/2009
Dt.06/06/2008
Source. Secondary data
Works
The ULCCS was registered in 1925 februvary 13 th and started to work. But they
didn’t get any work till 1926 may 26. In 1928 they got a work from Malabar district
board amounting to 1925 , and they got a profit of Rs 12.25 paisa.

In the intitial stage of the society, they were constructed wells, canals, etc at
kannur, Malappuram, Thrissur, Palakkad inorder to provide employment to its members
in a full year.

Now one of the biggest work that society is doing is the work of “ Susthira nagara
Vikasana Padhathi” of Kozhikode corporation which is conducted with the aid of ADB
amounting to Rs 33.03 crores (road improvement work) IInd phase of Calicut baipass
amounting to 31 crores.
SWOT ANALYSIS OF ULCCS
SWOT ANALYSIS
Strength of the society
>. The important strength of the society is well performing employees and director board who
were providing the 100% involvement in the operation of the society. All the employees and
office staffs are performing their optimum with an intention of increasing the societies
efficiency.
>. The society has a best reputation and goodwill in the public and to the government.
>. The society has a full strength of machineries, equipment and tools for conducting works
with high speed, and to make no compromise with quality of work.
>. Quality of works don by the society had created a good brand image for the society and got
a position in the mind of the public and its customers

Weakness of the society

Following are found to be the weakness of the society.
>. Inadequate laborer force corresponds to the works demanded.
>. Slowness in the process of arranging more and more workers from various places where
many unorganized labour force are available.

Opportunities of the society

The following will be the opportunities of the society
>. As it is a labour contract society, having major dealings in construction field, the society
has side range of opportunities in public sector and in private sector as they related with
construction of roads, buildings, bridges, etc…
>. Major share of employees are from non members of the society, therefore an opportunity is
there as the society can increase their share capital by converting non members into members
of the society
>. As they have high reputation and goodwill among the public and government, there is an
opportunity for them to extent their area of operation to the entire state.

Threats of the society

The society has following threats in its operation.
>. Most of the works demanded cannot be executed due to less labour strength.
Scarcity of employees in construction field
In the year 2007 – 2008, ULCCS was faced the problem scarcity of employees in the
field of construction. As they were one of the major co-operative construction society in
Kerala, they were getting many large projects from government of Kerala and the Central
government. The scarcity become one of the major problem there. But they solved the
problem up to an extend by adopting the following measures.

Measures taken by ULCCS

 Stratagical change:-
They changed their strategy to “take up a minimum number of big project rather than
concentrating on many projects”.
 Importing of new machinery
 Employment is given to people outside Calicut and Kerala
 Giving subcontracts
 CHAPTER IV
ANALYSIS AND INTERPRETATION
Reasons for scarcity of employees
 Change in living style.
 Change in social status
 People are behind white collar job
 Formation of nuclear family
 People are interested to work abroad
 CHAPTER V
FINDINGS, SUGGETIONS
AND
CONCLUSION
SUGGETION

 Taking help from various agencies

There are many agencies who were supplying employees, who were helping for
recruitment of employees and workers. They can take their help. They can also
appoint an agent or agency in each districts for arranging workers from each districts.
 There will be many unorganized employees available in each areas of each districts.
So the organization can recruit such people from the area where they are undergoing
their projects. It must be based on agreement to avoid resistance from the already
existing employees
 Collecting list of unemployed people from various government organizations like
panchayath, municipalities and thaluks.
 Recruiting people who has registered their name under “dhesiya thozhilurappu
padhathi”
CONCLUSION
BIBLIOGRAPHY
BIBLIOGRAPHY
1. Journals

2. Websites

a. www.ulccs.ltd.com
b. www.co-operativesocietiesinIndia.wiki.
c. www.google.com
ANNEXURE
 QUESTIONNAIRE.

1.Name

2. Age

3.Occupation

4.Address

5. Number of members in the family ?

6. Joint family or Nuclear family ?

7. Family status?

Children Students Employed Unemployed Retired

8. Are you aware of ULCCS ?

Yes No

9. Are you working in ULCCS?

Yes No

10. Why you are not working in ULCCS ?

Employed elsewhere Looking for employment abroad

Interested in white collar job

10. Whether they are interested in construction work?

Yes No

11. If not, what is the reason?

Education Hard work Other reasons Status

 12. What they expect from a job?

Remuneration Satisfaction Safety Status

13. Whether the unemployed person is educated, if so qualification?

Up to SSLC SSLC--+2 +2-- Degree

Above Degree Others

14. Why do you feel that you are not interested in construction work?

Less pay No reputation Less safety

15. If they provide what you expect from the job, are you ready to join in this field ?

Yes No

16. Why do you feel that the people now a days are relactant to take up a job in the construction

sector ?

Family status Education Change in life style

FUNDAMENTAL PRINCIPLES OF CO-OPERATION:-
These principles are:-
 Voluntary and open membership
 Democratic member control
 Autonomy and independence
 Educating, training and information
 Co-operation among co-operatives
 Concern for community
EXPLANATIONS

 ULCCS can appoint a person in every district who has got a good relationship with
various agencies or subcontractors. This can help them to expand their work to other
districts also.

 Unorganized workers can be found by going to bus stand or work area or allotting a
group of people to find such workers from nearby areas where the projects has to be
carried out. They can be persuaded by explaining about the wages they will get and
also about various benefits. They can be then taken on the basis of contract.

 After collecting the list of unemployed people from various government

organizations like panchayath, municipalities and thaluks, a letter can be send to each
person giving details on UlCCS, wage scale and all the benefits provided at ULCCS.

 People who have registered their name under “deshiya thozhilurappu padhathi” can be
met directly or a detailed letter can be send to them giving details about UlCCS,
wage scale and all the benefits provided at ULCCS.
 To reduce labour scarcity

SUGGESTIONS

Collecting list of Taking help from Gathering of Recruiting

unemployed people various agencies, unorganized workers people who
from the nearby areas
from various by appointing a have registered
where the projects
government person at every their name
have to be done by
organizations like district who has forming a separate under “deshiya
panchayath, hold on all group for this purpose. thozhilurappu
municipalities and agencies. Workers should be padhathi”
thaluks. taken on contract
basis.

METHODS

A letter can be ULCCS can By going to bus By meeting directly

send to each appoint a person stand or work area or a detailed letter
person giving in every district or allotting a group can be send to
details on UlCCS, who has got a of people to find them giving details
wage scale and all good such workers from about ULCCS, wage
the benefits relationship with nearby areas where scale and all the
provided at various agencies the projects has to benefits provided
ULCCS. or be carried out. at ULCCS.
subcontractors.