2

LABOUR SCARCITY IN CONSTRUCTION SECTORA 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 IIand submitted in partial fulfillment of the requirements of the degree of Master Of Business Administration of the Kannur University

Place: Kannur Date

Miss. Anupa. K. Prabhakaran (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 IIand submitted in partial fulfillment of the requirements of the degree of Master Of Business Administration of the Kannur University

Place: Kannur Date

Dr. K. K. Falgunan (Director)

DECLARATION Date:Group I semester MBA

We declare that the Project entitled EMPLOYMENT SCARCITY INCONSTRUCTION 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

ACKNOWLEDGEMENTWe 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

INDEXChapter 1: Introduction and design of the study y y y y y y y

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

INTRODUCTIONThe 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 wel 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 PROBLEMIndia 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 STUDYy y y y

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 DESIGNFor 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.

METHODOLOGYThe 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 COLLECTIONThe 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 SCHEMEThe 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 -2001Census 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. 2.1Kerala District wise Population District Population Males Females

Thiruvananthapuram Kollam Alappuzha Pathanamthitta Kottayam Idukki Ernakulam Thrissur

3234356 2585208 2109160 1234016 1953646 1129221 3105798 2974232

1569917 1249621 1014529 589398 964926 566682 1538397 1422052

1664439 1335587 1094631 644618 988720 562539 1567401 1552180

Palakkad Kozhikode Wayanad Malappuram Kannur KasargodTotal

2617482 2879131 780619 3625471 2408956 120407831,841,374

1266985 1399358 391273 1754576 1152817 58808315,468,614

1350497 1479773 389346 1870895 1256139 61599516,372,760

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. 2.2Total Working and Non-Working Population of Kerala

Total Workers

Main Workers

Marginal Workers

Non-Workers

10291258 (32.3%)

8236741

2054517

21547361 (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. 2.3Category of Workers (Main and Marginal)

Cultivators

Agricultural Labourers

Household Industries

Others

740403 (7.2%)

1653601 (16.1%)

364770 (3.5%)

7532484 (73.2%)

SOURCE: Census India 2001

LABOUR SHORTAGE HITS CONSTRUCTION ACTIVITYNotwithstanding 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 KOCHIKerala 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 states 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 KochiTamil 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 formers willingness to work for longer hours.There is also a feeling among the contractors and employers that the migrant workers are more obedient and noncomplaining than their Malayalee counterparts.

Push and Pull Factors of MigrationAccording to push and pull theory, migration may occur as a search for an opportunity to improve ones 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 Low wage in the village Lack of job opportunities in the village Water scarcity/drought in the Village Migration of spouse Family problems Others Source : secondary data Male 66.0 40.0 Female 66.00 48.0 Total 66.00 44.0

28.0

42.0

35.0

0.0 2.0 10.0

4.0 2.0 0.0

2.0 2.0 5.0

Average Wage Rates in Kochi and in the Places of originOn 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 days 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 originTable No. 2.5 Particulars Wage in Kochi Wage in Home Village Male Female 226 196 96 56

Source : secondary data

Positive Aspects of Working and Living in KochiAs 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 Kochis 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 PROFILECONSTRUCTION INDUSTRYConstruction 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. Todays 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 IndustryGoods 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 Nations 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 earthfriendly products.

Working ConditionMost 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 MovementIntroduction to co-operative movementCo-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 cooperation 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 cooperative 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 KeralaWhen 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 societiesItaly 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 IndiaBefore 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 KeralaLabour 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.

VISIONTo 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.

MISSIONThe 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 SocietyFollowing are the major objectives of the society.y

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.

y

To take labour contract and to carry it out by providing employment opportunity to the members.

y

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.

y y

If found necessary, society will manufacture tools by conducting workshops. To conduct other activities in furtherance of the above mentioned objectives.

Location of the SocietyThe society is situated at Nadapuram road in Onchiyam Grama Panchayath at Badagara Thaluk in Kozhikode district.

OfficeThe 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 operationVarious districts of Kerala including, Kozhikode, vayanadu, kannur, kazhergode, palakkadu, malappuram etc.

Management and administration of the societyThe 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 BODYThe 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.

SECRETARYA 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.

PRESIDENTThe 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

MEMBERSHIPMembership 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 MEMBERSHIPTable No: 3.1 A class members 699 nos Vatakara Onchiyam area Payyoli panchayath Kozhikkode Koylandy Kallachi Azhiyur Eramale Source : secondary data 250 250 25 75 10 15 15 59

DETAILS OF C CLASS MEMBERSTable No: 3.2 C class members 255 nos Place Vatakara Kozhikkode Onchiyam Malappuram Source : secondary data Number 150 50 25 5

DETAILS OF NONMEMBERSTable No. 3.3 Category female members male members Total Source : secondary data numbers 450 350 800

DETAILS OF A CLASS MEMBERSTable No. 3.4 Details of A class members I.a) female b) male II. a) bellow 20 b) 20 -30 c) 30 -40 d) 40 -50 e) 50 -60 f) above 60 III. a) bellow 10 th b) 10thfailed c) 10th passed d) preedegree failed e) technical(civil diploma) 84 610 0 186 246 178 72 12 558 82 12 10 32

CONCEPT OF COMPENSATIONCompensations 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.y

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.

y

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.

y

Fringe benefits These are include such benefits which are provided to the employees either having long term impact or short term impact.y

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 Employees 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 Rsy

Compensation benefits They are payable under two conditions, under Workmens 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.

y

Insurance benefits Insurance benefits are payable to employees covered under Employees State Insurance Act, 1848. The employees covered under this Act have to contribute to the scheme and the employers also have to contribute.

y

Payment for time not workedy y y

Weekly off days Gazette holidays 14 days at present. Personal leave casual leave, sick leave, privilege leave and sick leave, maternity leave

y

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..

y

Perquisites Such perquisits include company car, club membership, free residential accommodation, paid holiday trips, stock options etc.

COMPENSATION PLAN OF ULCCSAs 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 ULCCSThe 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.y

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.

y

Medical allowance. A medical allowance is given to the members of the society as 2.5 on their wages.

y

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

y

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

y

Gratuity Gratuity is also available only to the members of the society. The gratuity is given on following conditionsy y y

10 years service completed At least complete 50 years of age Gratuity is limited up to the age of 60.

y

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.

y

Holiday wages The society also providing holiday wages to the members of the society who are in continue in work for that week.

y

Educational allowances to children of workers. An educational aid is providing to the children of members of the society.

y

Financial assistance to marriage. The society is providing a good financial assistance to marriage for their members and daughters of members.

y

Pension. A better pension scheme also exists in the society to the members of the society.

y

Labour welfare fund. A labour welfare fund is given to all member of the society.

y

Insurance coverage to workers An insurance coverage is given to all workers of the society without considering members ad non members of the society.

y

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. No Employer Location &Description of Work Value of Contract (Rs. Lakhs) 300388122.00

1

Superintending Engineer, National Highway,Kozhikode , Kerala The Project Manager Project Implementation Unit,KSUDP, Kozhikode, Superintending Engineer, Irrigation Department,Kozhiko de, Kerala Secretary, District panchayath, Kozhikode,

2

Calicut Construction of Calicut Bypass phase II from ch:5100 to 11960 on NH 17 in the state of Kerala. Agr. No.22/2008 09/SE/NH/KKD dated 20/03/2009 Calicut Road Improvement works for Kozhikode Package No.KZD-RT-01. Agr. No. KSUDP/PIU-KZD/0I/URT/07-08 Dt.04/03/2008

330145066.00

3

4

5

6

Kappad Development of Kappad Beach in Kozhikode District (Phase I) SE(1)5/2007-08 Dt.20/08/2007 Peruvannamuzhi. Plan Scheme 2006-07: Construction of Farmers Training Centre for Koothali Agriculture Farm at Peruvannamuzhi in Chekkittapara Panchayath. Agr. No. 51/LSGD/2006-07 Dt.13/03/2007 Superintending Thuneri Engineer, KSRRDA, PMGSY 2006-07 Phase VI Package No.KR Thiruvanadapuram, 08-14 Thuneri Block inKozhikode District. Kerala Including Maintanance for five years after completion. Agr. No. 20/SE-CSR 2007-08 Dt.26/10/2007 Superintending Kunnamangalam. Engineer, KSRRDA, PMGSY 2006-07 Phase VI Package No.KR Thiruvanadapuram, 08-13 Kunnamangalam Block in Kerala Kozhikode District. Including Maintanance for five years after completion. Agr. No.19/SE-CRD/ 2007-08 Dt.26.10.2007

10416092.00

10192395.00

27041481.00

51439521.00

7

Superintending Engineer, KSRRDA, Thiruvanadapuram, Kerala

8

Superintending Engineer,, KSRRDA, Thiruvanadapuram, Kerala Superintending Engineer,, KSRRDA, Thiruvanadapuram, Kerala The Director, cooperative Acadamy of professional Education, Thiruvanthapuram Superintending Engineer, KSRDA, Thiruvanadapuram, Kerala

9

10

Kunnamangalam. PMGSY 2006-2007 Phase VI Package No. KR 08-16 Kunnamngalam Block in Kozhikode Distict, including maintenance for Five Years after completion.Agr. No. 21/SE-CRD-2007-08 Dt. 26/10/2007 Kunnamangalam. PMGSY 2006-2007 Phase VI Package No. KR 08-18 Kunnamngalam Block in Kozhikode Distict, including maintenance for Five Years after completion.Agr. No. 21/SE-CRD-2007-08 Dt. 26/10/2007 Thodanoor. PMGSY 2005-06 Phase V package No. KR 08-09 Thodanoor Block in Kozhikode District, including maintenance for five years after completion. Agr. No. 2/SE-CRD/2007-08 Dt.28/09/2007 Alapuzha. Contuction of Main Block for College of Engineering at punnapra, Alapuzha.

15507272.00

55571169.00

17413709.00

37555441.00

11

12

15974585.00 Koduvally. PMGSY 2006-07 (Phase IV) Package No. KR 08-11(F) Koduvally Block in Kozhikode District. Agr.No.84/SE-CRD/2007-08 Dt.29/02/2008 Superintending 14932798.00 Koduvally. Engineer, KSRRDA, PMGSY 2006-07 (Phase IV) Package No. Thiruvanandapuram, KR 08-11(A) Koduvally Block in Kozhikode Kerala District. Agr.No.85/SE-CRD/2007-08 Dt.29/02/2008 Superintending Engineer,PWD Roads &Bridges, Kozhikode, Kerala Kallachi.NABARD-RIDF-XIIimprovements to Kallachi- ValayamChuzhali-Puthukkayam Road from Km 0/00 to 4/700 Agr.No.SE(K)29/2009 Dt.06/06/2008 26882059.00

13

Source. Secondary data

WorksThe ULCCS was registered in 1925 februvary 13th and started to work. But they didnt 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, canal , etc at s 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 ANALYSISStrength 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 societyFollowing 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 societyThe 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 societyThe 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 fieldIn 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 ULCCSy

Stratagical change:They changed their strategy to take up a minimum number of big project rather than concentrating on many projects.

y y y

Importing of new machinery Employment is given to people outside Calicut and Kerala Giving subcontracts

CHAPTER IV ANALYSIS AND INTERPRETATION

Reasons for scarcity of employeesy y y y y

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

SUGGETIONTaking 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.y

y

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

y

Collecting list of unemployed people from various government organizations like panchayath, municipalities and thaluks.

y

Recruiting people who has registered their name under dhesiya thozhilurappu padhathi

CONCLUSION

BIBLIOGRAPHY

BIBLIOGRAPHY1. 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 Interested in white collar job 10. Whether they are interested in construction work? Yes No Looking for employment abroad

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 Above Degree SSLC--+2 Others +2-- Degree

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:y y y y y y

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 unemployed people from various government organizations like panchayath, municipalities and thaluks.

Taking help from various agencies, by appointing a person at every district who has hold on all agencies.

Gathering of unorganized workers from the nearby areas where the projects have to be done by forming a separate group for this purpose. Workers should be taken on contract basis.

Recruiting people who have registered their name under deshiya thozhilurappu padhathi

METHODS

A letter can be send to each person giving details on UlCCS, wage scale and all the benefits provided at ULCCS.

ULCCS can appoint a person in every district who has got a good relationship with various agencies or subcontractors.

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.

By meeting directly or a detailed letter can be send to them giving details about ULCCS, wage scale and all the benefits provided at ULCCS.