1. Who are construction workers? The Building
and Other Construction Workers (Regulation of
Employment and Condition of Services) Act. 1996,
(referred to as the Main Act) while defining
building and other construction work in Section
2 (d), defines 'building workers' as a person
employed in construction with any building or
other construction work, subject to some exclusions.
Will or should persons employed in brick kiln
be included in this definition?
Section2(d)" building or other construction
work" means the construction, alteration,
repairs, Maintenance or demolition, of or in
relation to, buildings, streets, roads, railways,
tramways, airfields, irrigation, drainage, embankment
and navigation works, flood control works (including
storm water drainage works), generation, transmission
and distribution of power, water works ( including
channels for distribution of water), oil and
gas installations, electric lines, wireless,
radio, television, telephone, telegraph and
overseas communication, dams, canals, reservoirs,
watercourses, tunnels, bridges, viaducts, aqueducts,
pipelines, towers, cooling towers, transmission
towers and such other work as may be specified
in this behalf by the appropriate Government,
by notification but does not include any building
or other construction work to which the provisions
of the Factories Act, 1948, or the Mines Act,
1952, apply"
It is also to be pointed out that the definition
of 'building and other construction work' does
not include any building or other construction
work to which provisions of the actories Act
1948 or the Mines Act. 1952 apply. What is the
significance and implication of this exclusion?
2. What is the present status of implementation
of the above mentioned 1996 Act, and the Building
and other Construction Workers' Welfare Cess
Act 1996 (hereinafter the referred as the Cess
Act) in various Sates/Union Territories and
in the Central Government? What are the reasons
for the delay in implementing both the laws
even after the lapse of seven years and more?
Have all the State Government/ Union Territory
Administrations published the Rules under the
Main Act? Have Expert Committees as contemplated
in Sec. 5 of the Main Act. been constituted
to facilitate the making of Rules under Act?
To what extent, has the Central Govt. used the
powers conferred on it under Section 60 to give
directions?
3. Will the delay in promulgating Rules under
the Main Act. stand in the way of collecting
Cess under the Cess Act? Cant Cess be collected,
if need be, with retrospect effect from 3.11.1995,
or at least form 26.3.1998 when the Central
Govt. made the Rules under the Cess Act.? Section
3 (3) of the Cess Act stipulates that the Cess
collected should be made over the Board (setup
under Section 18 ( 1),of the Main Act.); notwithstanding
the delay in seething up the Boards by various
States/ U.Ts. Cannot the Cess be collected by
the local body concerned and kept in deposit
by the State Govt/ UTs until the Board is constituted
when the amounts can be transferred to the Board?
There can be no justification for not collecting
the cess, authorised by Statute. Even on a modest
estimate the amount of the cess so far left
uncollected by States/ UTs must run into thousands
of crores, the money that legitimately belongs
to the construction workers, to be used for
their welfare and Social security. What alibi
can state Govts/ UTs put forward, for this serous
omission/ lapes?
4. While the Main Act carries ' Regulation
of Employment' in its tital and even the preamble
refer to it as "An Act to regulate the
employment
..;" the Act
has no provision for regulation employment.
There is only provision for registering the
employers and beneficiaries ( the very description
of workers as beneficiaries is repugnant; they
must be considered to be participants and not
merely recipients of any benefits). In this
connection, the related provisions in the Tamil
Nadu Manual Workers ( Regulation of Employment
and Condition of Workers ) Act. 1982 may be
seen: Section 3 is the Tamil Nadu Act refers
to Schemes for ensuring regular employment of
manual workers: Sub Sections (1), 2 (c) . 2(d)
2 (e), and 2(f) are relevant. Particular attention
is drown to sub section 2 (e) and (f) which
are reproduced below:-
" 3(2)(e) for securing that, in respect
of period during which employment or full employment
is not available to manual workers though they
are available for work, such manual worker will
, subject to contain of the works, receive minimum
wage;.
3(2)(f) for prohibiting, restricting or otherwise
the employment of manual worke4rs to whom the
scheme does not apply, and the employment of
manual workers by employer to whom the scheme
does not apply.
These provision in the Tamil Nadu Act. follow
closely the provision contained as scheme 3
of the Dock Workers ( Regulation of Employment)
Act 1948, a Central Act. Appropriate provisions
for regulation of employment, for establishment
of autonomous tripartite Board for regulating
employment, amendments of term and conditions
of services, for dispute resolutions, for implementation
the programme and scheme and the Act. are a
must if the construction workers are to be given
a fair deal. This has presently been the stand
right through of the National Campaign Committee
for Construction Workers under the chairmanship
of Justice V. R. Krishna Iyer, retired Judge
for the Supreme Court of India. This point cannot
be overlooked or glossed over. Building and
Construction work is an essential part of all
activities, both government /quasi govt. and
private, and accounts for a very high percentage
of expenditure of government and government
organization, both plan and non plan.
5. While looking at the Main Act, an important
issue will be the relationship between the Main
Act and similar legislations, if any in any
of the States. Section 63 of the Main Acts states
that" Nothing contained in this Act shall
affect the operation of any corresponding law
in a State providing welfare scheme which are
more beneficial to the building and other construction
workers than the provided for them by or under
this Act".
Taking the Tamil Nadu Manual Workers ( Regulation
of Employment and Condition Service ) Act. 1982
and the Tamil Nadu Manuel Workers ( Construction
Workers) Welfare scheme 1994 under it, as and
example; one find that the coverage under the
Main Acts and the Tamil Nadu Scheme are different;
while the Main Act applies only to establishment
which employee or had employed on any day of
the proceeding twelve months ten or more building
workers in any building and other construction
worker' ( section 1 (4)) , the Tamil Nadu scheme
has no such employments limit and applies to
all establishment where the construction workers
are employed.
On the other hand, while the Cess under the
Main Act is 1 % (up to a maximum of 2% ) of
the cost of the project, it is only 0.3% under
the Tamil Nadu Scheme. Further whereas the Main
Act has in sector 16 provision for contribution
to be made by the worker to the fund, Tamil
Nadu Scheme as it operates now does not call
for any contribution to be made by or collected
form the workers.
Above all, whereas Tamil Nadu Act, as already
indicated in Para (4) above, has provisions
for regulation of employment, the Main Act does
not have such provisions . In these circumstances,
to compare State Law with the Main Act for purpose
are of Section 63. appear to be a futile exercise.
The problem become ever more diffuse if already
there are non statuary Schemes in any State
providing for welfare and social security to
construction workers. Some States like Karnataka
and Andra Pradesh have drafted Bills in respect
of workers in the Unorganized Sector and a comparison
of the Main Act with those Bills may be fruitful
.
Above all the Central Government has introduced
a Bill to cover all workers in the unorganized
sector; construction being one such sector,
it will be interesting to see what the Central
Bill will have vis a vis the Main Act.
6. The discussion in para 5 about raises a
fundamental question as to whether Central Govt.
should at all have any executive role in respect
of unorganized sector workers, other than having
a coordinating , standard setting and supervising
role besides providing appropriate financial
assurance to the Stats and Union Territories.
There is no reason why the Central Govt. should
have a welfare fund for Construction Workers,
Agriculture Workers and so on. In fact it is
a moot point whether the Central Govt. need
at all be the appropriate govt. in respect of
not only such laws but also in respect of Minimum
Wages Act, Inter State Migrant Workers Act and
so on.
7. An important question that arises when we
examine the legal provision relating to one
section of unorganized sector workers, such
as construction workers that we are now considering,
is whether such a sectoral approach is desirable
and whether this may result in divisive forces
among different sector of unorganized works.
If the various such workers are to be covered
by different set of welfare funds, then it may
happen that those sectors where income to the
fund by levy or Cess on the activity concerned
can be large will always stand out as the favored
one, compare to those sections where incomes
to their funds may not be adequate, comparatively
or even absolutely.
Also the mode of collection of the Cess may
not be easy. For example, while in the case
of the Cess Act, the Cess is collected by the
local bodies at 1% of the cost of construction
is easy. In the case of, say agriculture, the
problem of levy and its collection will be enormous.
If, for this reason , we think of a single fund
for all sectors, then it may be more logical
to have a universal social security levy rather
than different kind and levels of levies for
the various sectors.
Considering that 92% of the work force is in
the unorganized sector and such workers and
their families will constituted the bulk of
the population, is a system of universal social
security not preferable? How will this be designed,
particularly in the matter of financing and
prioritizing the various kinds of social security
benefits are all the details that need to be
worked out. This will require the adoption by
the country of a National Social Security Policy
which should contain the resolved that the present
level of pension expenditure on social security
as a percentage of GDP be progressively raised,
so that by the next two years or so at least
15% of the GDP is set apart for social security.
|