In the middle of the 19th century, Italy witnessed a major slump in the trade cycle and consequent unemployment. During this period the condition of the working class became very pathetic for they subjected to the exploitation of the contractors who offered them jobs. More than that they earned only a little too. As a means of escape from this sad plight some people suggest the labourers to join their hands to some institutions and to put their small resources into a common fund, so that, they could accept the contracts directly, without the aid of their contractors, that is to say their exploiters. This resulted in the development of one special brand of co-operation in Italy has shown light to the world in this respect.

Among the pioneer of the labour contract societies, the most outstanding one was Mr.Mazzini. He gave all his support to the labourers by working among them and encouraged them to form co-operatives as a measure to expel the middle men. Thus in 1833 the first Society of workers named the „General Association of Workers‟ who organized by Braceiunti at Ravennu. The chief motive of the members of this

organization was to take contracts for building and other construction works. As a result of the hard and irksome work of the members, the marshy land was converted in what is called today “Roman Lido”. In 1886 the number of labour societies in Italy had risen to 600 and in 1903 they organized federation of Labour Societies in Milan. These societies mainly depended the share capital and deposits for funds and seldom borrowed loans from outside. This self-sufficiency was one of the advantages of these societies and in course of time this movement spread all over the world, especially in France, Palastine and Newzeland.

Labour Contract Co-operative society (LCCs) plys a key role in the nation building exercise . from the conventional role of the employee, earning just the wages from doing a civil work, the members of LCCs play a more active role by taking by taking the contract of the entire work and share the profits from executing the work effectively. As the work is directly contracted the people who are responsible to execute the work, the

ULCCS Ltd. Most of these labour contract cherished in Kerala during the period of second five-year plan. By the end of the year.labours.10.24. Ministry of Railway and Food Corporation of India has given preference of labour contract societies for giving contract work. In the year 2000. the Government is pleased and encouraged to starts number of labour contract societies in Kerala. The value of contract executed by them increased from Rs. Under the special employment scheme.45 lakhs. is a successful model of an LCC in the country LABOUR CONTRACT SOCITIES IN INDIA In India. 1999 there were 334 labour contract in Kerala. .crors in 1973-75. On 30 June 1982. expect an inspection by him bat completion of each successive task. Another important virtue of a labour co-operative society lies in its freedom. the benefits accrue from this collective labour will be divided only to the worker member of the society. which the workers enjoy in arranging the details for the execution of the work without employer‟s supervision. the labour contract co-operative originated mainly because of employment and that too only after independence. there were 29880 labour contract societies in India LABOUR CONTRACT SOCIETIS IN KERALA Now let us have a look at the labour Contract Societies in Kerala. there were 9147 labour co-operatives including forest co-operatives. The central and state government play an important role for the development of labour contract societies by providing various concessions. there were 84 labour contract co-operatives in Kerala with a membership of 1945and with paid up share capital of Rs. to ensure that the work is being carried out the specification. The labour contract societies held a special significance in the contract of 20-point economic program for they provided employment and income opportunities to the weaker section of the community.5. As on 30 June 1975. The highest number of societies is situated in Maharashtra.

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