Image used for representational purpose.
| Photo Credit: K.K. Mustafah
The Union Labour Ministry said in a Right to Information (RTI) reply that the welfare boards for building and other construction workers of various States have not yet used the cess worth ₹70,744.16 crore they collected from the employers for the welfare of the workers. Since the implementation of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act in 2005, the boards have collected ₹1,17,507.22 crore as cess from the employers and allocated ₹67,669.92 crore with the workers.
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The Act, passed in 1996, empowers the Construction Workers’ Welfare Board constituted by State governments to levy cess from employers “at such rate not exceeding 2%, but not less than 1%” of the cost of construction incurred by an employer. As many as 5,73,48,723 workers have registered with 36 State Welfare Boards till September 30, 2024. There have been complaints that the Centre and the State governments did not help the construction workers during the exodus to villages soon after the COVID lockdowns announced in March, 2020.
Arka Rajpandit, national secretary, Construction Workers Federation of India, who filed the RTI with the Ministry said the document points towards huge cess evasion by the builders and employers. “For instance in Maharashtra, the total accumulated cess for 19 years is ₹19,489.25 crore. This means that the State had constructions worth ₹19 lakh crore in the last 19 years. Construction worth ₹1 lakh crore per year. This statistics is far from true. Huge cess evasion may have happened from the State,” Mr. Rajpandit said. Though he had asked for the information regarding the total cost of the building and other construction projects as per the approved plans by the local authorities concerned pertaining to all States and Union Territories, the Ministry said such date is not available with the Labour Ministry.
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The trade union leader argued that States spent a very meagre amount of the total money collected for the welfare of workers. “Workers were denied of their stipulated benefits,” he said. According to the data, Maharashtra spent ₹13,683.18 from the cess it collected in the last 19 years, followed by Karnataka and Uttar Pradesh that provided ₹7,921.42 and ₹7,826.66 crore to the workers. Maharashtra has ₹9,731.83 crore as balance available in their accounts while Karnataka and Uttar Pradesh have a balance of ₹7,547.23 and ₹6,506.04 respectively with them.
Mr. Rajpandit said if the Centre implements the Code on Social Security, the cess collection process will be diluted as it has provisions for self-assessment by the employer of cess and the Code reduced the rate of cess and interest. “Secondly, the Building and Other Construction Workers Act mandated the provision of free temporary accommodation, drinking water and latrines to workers. The Codes change these statutory entitlements to facilities that the Union government may prescribe. Hence, there is no right to workers to these facilities if not prescribed,” he said.
“Our observation is that, except Kerala, most of the State governments and UT administrations are not implementing Building and Other Construction Workers Act. Stipulated benefits are being curtailed. Many State governments are not reconstituting the welfare boards with an aim to exclude representatives of Left trade unions,” he said, alleging that there are attempts to take the money available with the boards to the State exchequers.
Published – January 24, 2025 04:19 am IST
