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


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


This is to certify that the project report entitled


Is a bona fide record of work done by

and 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 II and submitted in partial fulfillment of the requirements of the degree of Master Of Business Administration of the Kannur University Place: Kannur Date Dr. Falgunan (Director) . K. K.

Kannur. Prabhakaran.DECLARATION Date: Group I semester MBA We declare that the Project entitled ³EMPLOYMENT SCARCITY IN CONSTRUCTION SECTOR-A STUDY WITHREFERENCE TO ULCCS-VATAKARA´ is our original work and it was under the supervision of Miss Anupa. Chintech School Of Management Study. Lecturer. K. or any other similar title or recognition before. GROUP-II . diploma. We also declare that this report has not been submitted by us fully or partially for the award of any degree.

GROUP-II . K. School of Management Studies.ACKNOWLEDGEMENT We would like to express our heartfelt thanks and gratefulness to the ULCCS. 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. Prabhakaran. Chintech who has helped us during the course of our project.K Falgunan. We are deeply indebted to Dr K. 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. lecturer. and the people in the locality for having been kind enough to permit us to undertake this project. We express our immense gratitude to our mentor Miss Anupa. Director Chinmaya Institute of Technology for giving us the opportunity to carry out this project.

Suggestions and Conclusions Bibliography Appendix .INDEX Chapter 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.


In this development. Although construction companies are prepared to spend money to raise their production capacities. Almost every Indian company. It is one of the sectors which provide lakhs of employment opportunities in the world. calling into question the ability of the private sector to build out infrastructure in a public-private partnership mode.INTRODUCTION The entire change and development of a civilization to a large extent is the result of trade. "Construction companies have never seen such a boom in India. NHAI still has more work to offer than firms can take. But speak to any infrastructure builder. that has some expertise in construction. finds itself flooded with orders that are nearly three to four times its annual sales. pure-play construction companies to be able to execute projects. Forecasts by the industry experts state that. So this leads to a high growth in the area of construction and related sectors. Even if they all did only road projects and left all work on building airports and power plants aside. but it has only a couple of such companies. Whether they will get the people necessary to support the growth is the real challenge. The size and pace of orders could threaten the development of the country's already creaking and short-supplied infrastructure. means that skillful project management and innovative solutions will be necessary to prevent bottlenecks. experts say that a shortage of skilled talent and the limited ability of capital equipment suppliers to meet demand. and we¶l hear anecdotes about shortages of trained fitters. commerce and industrialization. It's difficult to fathom the words "talent shortage" in a country of a billion people that's getting younger over time. masons and plumbers. It is one of the sectors which can solve one of the main problems of India ³Unemployment´. big or small. India will need several billion-dollar." he says. 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. Blue-collared skilled . One of the main sectors that got opportunity to develop more because of these developments is the ³Construction sector´. welders. Infrastructural development is very important for industrialization. the human resource in general and entrepreneur in particular plays a pivotal role.

Training is important. As a result. because by mechanizing their operations. Though unemployment in Kerala still remains grave A mere connection of the two ends is what is required. wages for crane operators and others with higher levels of expertise have risen faster than the average for other industrial workers. the industry has begun collaborating with academic institutions to train staff. Realizing the need for skilled vocational staff.workers are in short supply. The construction industry remains one of India's largest employers. The problem faced by the industry at present is employee shortage & not specifically skill shortage. companies have needed to substitute low-end. Many companies have turned to acquisitions to cover their short-term labor needs. The study focuses . semi-skilled artisans with comparatively high-end machine operators who are in short supply.

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.. . lack of employees in the field of construction. It is happening in a state where unemployment problems are still existing. Now they are one of the major constructors and have enough projects to provide the employment to the public. So far research have been made on unemployment problems. Here arise the importance of fishing sector.STATEMENT OF THE PROBLEM India is one of the emerging power in the world it has a high growth in its economic sector. when it comes to employment the section is ««. 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. Indian government is organizing many programs and projects in order to reduce the problem of unemployment. no specific research has been focused on ³The reason for lack of employees in the field of construction´. they were forced to change their strategy because of the problem. This study is mainly intended to focus the reasons for these problems. But during the year 2007-08.


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 households nearby the locality of ULCCS form the base of the sample. 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. 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.OBJECTIVE OF THE STUDY y y y y To study the reasons for negligence towards construction works. The interviews were conducted with the employers of ULCCS and questionnaires were used for eliciting information from the public . METHODOLOGY The present study is based on both primary and secondary Data.

The first chapter gives an introduction to the study. suggestions & conclusion of the study. It deals with the introduction.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. 2. tools of analysis & the chapter scheme. The second chapter reviews the literature on Scarcity of labour in the construction field. objectives. tools of data collection. 3. The fifth chapter presents the findings. 4. sample design. . statement of the problem. The fourth chapter analyses the data collected 5. CHAPTER SCHEME The project report is presented in 5 chapters:1. The third chapter highlights the profile of the industry and ULCCS.


372.1 Kerala 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 .841. Kerala is one of the densest States in the country and it recorded a decadal population growth of + 9. is the only state in India with a positive figure.KERALA STATE CENSUS IN THE YEAR -2001 Census 2001 put Kerala's population at 31. three times the national average.42% (2. Table No. The population density of the state is about 819 people per square kilometers.101 persons).468. Although Kerala accounts for only 1 per cent of the total area of India. with a sex-ratio (females per 1000 males) of 1058. it contains about 3 per cent of the country's population.374 persons which included 15.740. 2.760 females.614 males and 16. In the human development and related indices it occupies prime position among the Indian States. Kerala.

Whereas. a small number of Sikhs.Palakkad Kozhikode Wayanad Malappuram Kannur Kasargod Total 2617482 2879131 780619 3625471 2408956 1204078 31. Second is Thiruvananthapuram with a population of 3234356 persons followed by Ernakulam with 3105798 persons.7 per cent of the population and Christians who constitute 19 percent of the total population. Idukki with a density of just 252 persons per sq.468. Buddhists.km. Hindus.372.614 1350497 1479773 389346 1870895 1256139 615995 16.20 per cent of the total population. Wayanad is the least populated district followed by Idukki and Kasargod. Jews and other religious communities are also present. who constitute 56. is the most prominent religious community in the state.km.km is the most densely populated district in Kerala followed by Thiruvananthapuram with 1476 persons per sq.km is the least densely populated district followed by Wayanad with a density of 369 persons. Jains.km and Kozhikode with 1228 persons per sq.841. Alappuzha with a population density of 1496 persons per sq. This is followed by Muslims who form 24. Also.760 Source : Census India 2001 Malappuram is the most populated district and has a population of 3629640 persons. The average density of population of the state is 819 persons per sq. .374 1266985 1399358 391273 1754576 1152817 588083 15.

3% and non-workers form 67.2%) 1653601 (16.3%) 8236741 2054517 21547361 (67. a good percent of its population is confined to agriculture or other agro base industry.3 Category of Workers (Main and Marginal) Cultivators Agricultural Labourers Household Industries Others 740403 (7.2%) SOURCE: Census India 2001 . 2.1%) 364770 (3.7%) Kerala being an agricultural state with an agrarian economy. Table no. Table No.7%.5%) 7532484 (73. Of the total population of Kerala.Kerala's urban population figures to 8266925 persons which is about one-fourth of the total population. working population (main and marginal workers) constitute 32.2 Total Working and Non-Working Population of Kerala Total Workers Main Workers Marginal Workers Non-Workers 10291258 (32. 2.

" Mr Rao said. The problem is not an isolated phenomenon. National Academy of Construction. "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. The shortage was slowing down the construction activity in many States including Andhra Pradesh. Further." Mr V. "According to our information. the construction activity in many parts of the country is hit by the paucity of construction workers. carpentry and bar-bending which is evident from the feedback on our training programmes. construction workers are looking to move up on occupational scale. However. the shortage could be in the tune of 20 to 30 per cent on the basis of informal inputs from the builders. the situation in Bihar was somewhat better. . Builders Association of India (Andhra Pradesh). Mr Rao said.LABOUR SHORTAGE HITS CONSTRUCTION ACTIVITY Notwithstanding the healthy flow of investments. There may be more scarcity for workers in the future. "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. "Most of them are interested in taking up masonry." said Mr Reddy. he added. The labour from Mahaboognagar district is also fanning to different areas. This may be due to the increased opportunities available locally. Though the actual numbers were difficult in view of the unorganised nature of the sector. "We have found that there is a reluctance on the part of the rural poor to migrate for work to distant places. he said." the NAC official said. Reddy." according to Mr S. Siva Rao.V." he said. "There is a large chunk of construction workers who are migrating to the South. Director. 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.N. told Business Line here. The reasons for the shortage are many and varied. Chairman. Karnataka and Maharashtra. The infrastructure industry is facing shortage of construction labour and the builders are looking to other States for meeting their requirements.

labour intensive sub sectors of industry and many services. Of late the migrants have also entered agriculture.8 per cent of those who have migrated to Kerala from other states had their place of birth in Tamil Nadu.5 per cent had their place of birth in Karnataka.3 %). Uttar Pradesh and Orissa now flock to Kerala. Ernakulam accounts for the largest number of migrants. road works. It is interesting to note that while many Malayalees migrate to the µGulf¶ countries (Middle East) both for skilled and unskilled work. those from Tamil Nadu outnumber others by a big margin." Mr S. large majority of them are unskilled or semi skilled workers engaged in construction. 13. With signs of rapid growth of state¶s economy and the increase in activities particularly in the infrastructure and construction sectors.1%).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. 1.Pondicherry (2. Bihar.3 per cent of the population of Kerala are migrants (by place of birth) from other states."There is a serious shortage of labour in the industry and this is slowing down the pace of projection completion.may 16. many of the unskilled labourers from other parts of the country consider Kerala as their µGulf¶. Reddy. The largest number of in-migrants in the state is from theneighboring state of Tamil Nadu. While 67. Uttar Pardesh (1. Though labourers from states as far as West Bengal. Significant number of migrants also came from Karnataka. higher wages for unskilled labour in the state and opportunities for employment led to the massive influx of migrant labour to the state. Within the state. Other regions from where people have migrated to Kerala include Maharashtra (4. the in-migration is expected to grow faster in the coming years.0%) . The shortage of local labour. pipe laying etc. President.4 %) and West Bengal (1. Builders Association of Andhra carpentry.N. Andhra Pradesh (2. Source: Business Line Wednesday. While a relatively small section of the migrants from other states are professionals and skilled workers. According to the Census 2001.5 %).

While the former works under a contractor or an agent for a fixed period of time.There is also a feeling among the contractors and employers that the migrant workers are more obedient and noncomplaining than their Malayalee counterparts. Kadavanthra Junction.Tamil Workers in Kochi Tamil unskilled workers are broadly of two types viz. the latter waits for the employer almost every day in some of the centres in Kochi which have become literally ³labour markets´. 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. Vazhakkala. The destination exerts a µpull¶ on the migrants. Kaloor Junction. those working on contract basis and those seeking work in the labour market on a day to day basis. The high wage rates and more employment opportunities were the factors that pulled them to Kochi)... Push and Pull Factors of Migration According to µpush¶ and µpull¶ theory. . Edappally and Thrikakkara . Some of the centres are: Vathuruthy. 1969). 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. One can also find spatial concentration of migrants¶ dwelling places in certain neighbourhoods such as Vathuruthy. Edappally and Thrikkakara. migration may occur as a search for an opportunity to improve one¶s lot in life. Migration can also occur as a flight from undesirable social or economic situations which constitute an expulsive push by the community (Bogue. Drought/water scarcity in their villages also has forced some of the respondents to migrate temporarily. Market Junction in Banerjee Road.

0 28.Table: Push and Pull Factors of Migration (%) Table No.0 Average Wage Rates in Kochi and in the Places of origin On an average.0 40. the earnings of the workers after migration were three times their earlier earnings in Tamilnadu. 2.0 0. male migrants get about two and half times (235 per cent) the wages in their home villages.0 2.0 4.0 Female 66.0 2.0 2.0 Total 66.0 35.00 48. 2.0 5. While women migrant workers get about three and half times what their counterparts in their home villages get for a day¶s work.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 66.5 Particulars Wage in Kochi Wage in Home Village Male Female 226 196 96 56 Source : secondary data .0 0.0 42.0 2. Table : Average Wage Rates in Kochi and in the Places of origin Table No. The difference was much higher in the case of women migrants.00 44.0 10. The differentials in wage rates of men and women in Kochi were less than in their native villages.

the most cited one was the availability of accommodation facility in Kochi. Source: SURABHI K.S. October 2007 Centre for Socio-economic & Environmental Studies (CSES) . Among the factors related to the living environment in Kochi. N. About half of the respondents felt so. Working Paper No.16. Good transport facilities and good food were the other positive aspects of Kochi¶s living environment as reported by the migrants. better wages in Kochi is the most important factor that attracted people to Kochi.Positive Aspects of Working and Living in Kochi As noted earlier. Some of them are happy as they could get the job they preferred. Opportunity for getting work is the other important work-related attraction for Kochi.AJITH KUMAR..


industrial. The industry also includes maintenance. airports.CONSTRUCTION INDUSTRY ± A PROFILE CONSTRUCTION INDUSTRY Construction Industry is one of the biggest industries in the whole world. bridges. Houses. Construction Industry is the base of the world economy which is achieved through the construction of real estate properties (both residential and commercial). and other buildings. This industry's activities include the building of new structures. Growth in construction output in India will accelerate faster than in China up to 2020. roads. growth in construction output in emerging markets will be more than three times that of developed countries over the next decade. etc. The global construction market in 2020 will be worth an estimated $12. consumed by it hovers around two-fifth of the total energy consumed all over the globe. roads. commercial. repair. in the form of electricity or fuel.4% in 2011. offices. including site preparation. tunnels. schools. Construction Industry is also a potential employment generator and provides work to almost seven percent of the total employed person in the whole world. forecasts show China will overtake US as the largest construction market by 2018. factories.7 trillion in 2008 prices. The construction of buildings segment includes contractors. The construction industry is divided into three major segments. The extent of this industry has become so vast that the energy. apartments. The contribution of this industry towards the global GDP revolves around one-tenth of the total amount. and bridges are only some of the products of the construction industry. Developed countries are expected to lag emerging markets with zero growth in developed countries in 2010 but growth accelerating by 4. and improvements on these structures. roads. usually called general contractors. as well as additions and modifications to existing ones. Today¶s global construction market is worth an estimated $7. railway tracks and compartments. who build residential.5 trillion in 2008 prices. Heavy and civil . Nature of the Industry Goods and services. The resources that are utilized in Construction Industry is also staggeringly high and itself consumes fifty percent of the total world resources.

they often subcontract most of the work to heavy construction or specialty trade contractors. Repair work is almost always done on direct order from owners. while still ongoing. Retailers are refraining from building new stores and State and local governments are reducing spending. or electrical work. The construction industry has been strongly affected by the credit crisis and recession that began in December 2007. plumbing. as energy costs have risen. and other projects related to our Nation¶s infrastructure. highways. occupants. and many work over 40 hours a week. They obtain orders for their work from general contractors. Rain. dropped significantly. Housing prices fell and foreclosures of homes rose sharply. or of two or more closely related trades. about 18 percent of construction workers worked 45 hours or more a week. carpentry. architects. or property owners. painting. or wind may halt construction work. In 2008. and electrical work. Specialty trade contractors perform specialized activities related to all types of construction such as carpentry. who specialize in one type of construction such as residential or commercial building. The recession is expected to impact other types of construction as well. Construction workers may sometimes work evenings. Beyond fitting their work to that of the other trades. Specialty trade contractors usually do the work of only one trade. However. weekends. some companies are finding it necessary to build or renovate buildings that are not energy efficient. particularly in overbuilt areas of the country. roads. snow. They take full responsibility for the complete job. architects. specialty trade contractors have no responsibility for the structure as a whole.engineering construction contractors build sewers. bridges. such as painting. "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. such as plumbing and heating. . Although general contractors may do a portion of the work with their own crews. and holidays to finish a job or take care of an emergency. or rental agents. Construction usually is done or coordinated by general contractors. Working Condition Most employees in the construction industry work full time. tunnels. New housing construction. except for specified portions of the work that may be omitted from the general contract.

To avoid injury. and working in cramped quarters. 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. or hearing. hardhats. and devices to protect their eyes. employees wear safety clothing. Workers in this industry need physical stamina because the work frequently requires prolonged standing. stooping. such as gloves. employers increasingly emphasize safe working conditions and habits that reduce the risk of injuries. Exposure to the weather is common because much of the work is done outside or in partially enclosed structures. In response. .S. some work on temporary scaffolding or at great heights. they are more prone to injuries than workers in other jobs. bending. They also may be required to lift and carry heavy objects. as needed. Consequently. mouth. Data from the U. Construction workers often work with potentially dangerous tools and equipment amidst a clutter of building materials.Workers in this industry usually do not get paid if they can't work due to inclement weather.

To some extent. 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.Co-operative Movement Introduction to co-operative movement Co-operation is as old as human civilization. He laid foundation stone for the co-operatives. Co-operative movement was introduced in India as a state policy. 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. a committee under the chairmanship of Sir. Therefore he is rightly called as the father of co-operation and the founder of co-operative movement. In a poor country like India. Robert Owen's experiments created an atmosphere favorable for the origin of co operative movement. It has been universally recognized that co-operation is the most potent remedy for the economically backward countries. This committee recommended the Raiffeisen type societies as the best suited to Indian conditions. In 1901. England is considered to be the birth place of co-operative movement in world. . co-operation played a very important role in the uplift of the masses. Government was the prime mover of the co-operative movement of India. Edward Law was appointed by the Government of India to consider the question of introducing co-operative societies in India. it has created fellow feelings and has been instrumental in paying the way for a peaceful and prosperous society. Co-operative movement in India. It was formally inaugurated by the enactment of co-operative Credit Societies Act of 1904. the idea of cooperation was borrowed from western countries. As a result the first cooperative Credit Societies Act of 1904 was passed.

road building. two different co-operative laws were in operation. Hence from the very inception of the state. the number of such societies increased suddenly.Co-operative movement in Kerala When Kerala state was newly organized in 1956. 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. by merging the Travancore-Cochin state and Malabar. Hence certain changes in the existing laws were also inevitable to suit the present stage of development of the co-operative movement. They undertake the execution of work in exchange for some remuneration which is distributed among the member. Finally in 1956. The labour co-operative of Italy have aroused widest international interest. engineering Jobs etc. according to their rules. Unemployment is one of the serious problems of these days. Another advantage of this type of society is that employees receive adequate wages and they are protected from exploitation of private contractors. which is Travancore-cochin co-operative Societies Act of 1951 in Travancore Cochin and Madras co-operative Act of 1932 in the Malabar area. In present. After the attainment of independence. As on 30-06-1975 there were 9147 labour co-operatives including . Labour contract societies in India Before independence there were no many labour contract societies in India. there was the necessity for a uniform legislation covering the above two areas. the present Act called ³Kerala Co-operative Societies Act´ was passed. But since however it was prolonged and could not materialized. There by Government took initiative to bring new legislation. 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. They under take diverse works such as reclamation of waste land. Further the activities of the co-operative movement was fast expanding and diversifying. which is the part of former Madras state. the spurt of construction activities in the country particularly in the public sector has a wide scope for labour contract societies. The liberal assistance and other facilities offered by Government were responsible for such sudden increase of these societies.

In the context of 20 point economic program. there were 84 labour contracts co-operatives in Kerala with a membership of 19535. Labour contract societies in Kerala Labour contract societies in Kerala were 450 by the year ended 2002. The ministry of Railways has been extending various facilities to labour co-operatives. In the year 2000. . there were 29880 labour contract societies in India.forest labour co-operatives. State Government provides facilities and there by the Government could reduce unemployment to a certain extend. Food corporation of India has also agreed for labour award transport handling contracts to co-operatives on preferential basis. Government is pleased and encouraged to start more number of labour contract societies in India. Under the special employment scheme. The highest number in in Maharashtra state. In 30-06-1982. labour contract societies had special significance as they provide employment and income opportunities to the weaker section of community. Most of the societies were formed during the second five year plan period.

in 1967. . under the banner ³Athmavidya Sangham´. During the initial stages of the society the members dedicated themselves to the growth of the society by giving up their wages. with Sri.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.Chappayil Kunjekku Gurikkal as president. The origin of the society can be traced back to the reformist movement led by Sri. This sangham organized campaigns against superstition and practices prevailing in that time. The society started off by taking up the public works of Malabar District Board. ³Guru Vagbadanantha´ against rigid caste barriers that prevailed in the early half of the 20th century. These people joined together with an objective of solving the unemployment problems and the ³Uralungal Coolie Velakkarude Paraspara Sahaya Sangham´ was formed with initial membership of 14 members. This resulted in a lot of members being ousted from their jobs. The society renamed as ³Uralungal Labour Contract Co-operative Society Ltd´.

to render shade and support to those souls which had been orphaned. 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. co-operation and self independence among members to propagate the principles of co-operation to implement it. y To find solution for betterment of employment prospects among members. . through collective initiative of our members in attaining better heights. who have been forbidden the freedom of work. economically and communally weak. Objectives of the Society Following are the major objectives of the society. y To take labour contract and to carry it out by providing employment opportunity to the members. Location of the Society The society is situated at Nadapuram road in Onchiyam Grama Panchayath at Badagara Thaluk in Kozhikode district. to encourage savings. To conduct other activities in furtherance of the above mentioned objectives. MISSION The focus of our activities is on societal uplifting and nation rebuilding by providing appropriate job opportunities to the downtrodden. They have embarked upon the strategy of adoption of technological innovations by computerizing our head and site offices.VISION To safe guard the well being of those lives. society will manufacture tools by conducting workshops. and to protect of those lives who were socially. Office The Society has well setup office with qualified and experienced staff members led by the secretary. y y If found necessary.

But he can suspend or dismiss them with the prior approval of the committee. At least 12 members are to be presented in general body meeting for taking decisions. The important policies of the society have to be passed in general body meeting. The secretary must be responsible for the affairs of the society under the control of the president.Area of operation Various districts of Kerala including. and he is the treasurer in office. . vayanadu. The committee must call its meeting twice in a month or more if it is necessary. custodian of the movable and immovable properties of this society. General body meeting of the society is presided by the president. suspension. take disciplinary actions such as fine. 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 president has the power of supervising the affairs of the society. palakkadu. Management and administration of the society The power of governing and administration of the society. against the officers. GENERAL BODY The general body shall have the last word in the decisions of the society. kazhergode. SECRETARY A salaried full time secretary shall be appointed by the committee with the permission of the Deputy Registrar. Kozhikode. malappuram etc. All documents are in the name of the president and he has the right to carry out cases on behalf of the society. kannur. PRESIDENT The committee members shall elect a president from among them. He is not a member of the society. appointing officers. vested in a committee which is formed by appointment of general body from time to tome. dismissal etc.


The members include skilled and un skilled labourers and technically experienced overseers and engineers. For getting A class membership. Membership is given to the workers coming under Calicut district only. ³B´ class shares are provided to Government and District co-operative bank. one should work atleast 1 year in society and he will get A class membership only if his performance are satisfied.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 MEMBERS Table No: 3. sincerity. There is no admission fees incase of ³B´ class shares. C class membership is given to the newly appointed workers of the society. expertise.MEMBERSHIP Membership is given as ³A´ class.2 C class members 255 nos Place Vatakara Kozhikkode Onchiyam Malappuram Source : secondary data Number 150 50 25 5 . DETAILS OF MEMBERSHIP Table No: 3. skill and loyalty. ³B´ class and ³C class´. All the members must have complete knowledge on road. ³A´ class shares are available to each and every member. mettaling. Membership is given to the nonmembers on the basis of their quality of work. and in construction field. The value of each share has to be paid in full at the time of buying the share.

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 .DETAILS OF NONMEMBERS Table No. 3. 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.3 Category female members male members Total Source : secondary data numbers 450 350 800 DETAILS OF A CLASS MEMBERS Table No.

And this accumulated amount will be paid to the employee when he retires. y Incentives Incentives are the additional payment to employees besides the payment of wages and salaries. 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. Provident fund Under the provisions of Employee¶s provident fund and miscellaneous Provisions Act.33% of wages/salaries of employees every month. 1952 the employer has to contribute 8. Gratuity is payable to all employees after the termination of their services . Compensation is one of the important motivating factor in the eyes of HR management. either in terms of higher production or cost saving or both.. Salary refers to as remuneration paid to white-collar employees including managerial personals. after his retirement from the organization. Pension scheme A pension represents the payment of a fixed amount to a retired employee which has fulfilled certain specific condition of employment. 1972. y Retirement benefits Retuirment benefits are those benefits which are received to the labour. Wage is referred to as remuneration to workers particularly hourly rated payment. y Fringe benefits These are include such benefits which are provided to the employees either having long term impact or short term impact. Often these are linked with productivity. The major retirement benefits are.CONCEPT OF COMPENSATION Compensations is referred to as money and other benefits received by an employee for providing services to his employer. y Wage and salary It is the most important component of compensation. Gratuity The payment of gratuity is regulated by the payment of Gratuity Act.

refreshment. transportation facilities. stock options etc«.by way of their retirement or resignation provided they have completed five years of continuous services.s wages/salaries for each year of completed services subject to a maximum of Rs«« y Compensation benefits They are payable under two conditions. subsidized housing. free residential accommodation. 1923 and under Contractual obligations. . Under the Act. The employees covered under this Act have to contribute to the scheme and the employers also have to contribute. Personal leave ± casual leave.. Fatal or otherwise. recreational and cultural facilities. paid holiday trips. the compensation is payable in the case of injuries. to worker during course of his job performance. child care facilities. as employer is liable to pay equivalent to 3 months wages or salary or any other sum specified under the terms of employment. sick leave. Under contractual obligations. 1848. individual organizations offer a host of benefits to their employees. y Perquisites Such perquisits include company car. under Workmen¶s Compensation Act. privilege leave and sick leave. club membership. subsidized meals. maternity leave y Other benefits Besides above benefits. etc«. y Payment for time not worked y y y Weekly off days Gazette holidays ± 14 days at present. The gratuity is payable at the rate of 15 day. y Insurance benefits Insurance benefits are payable to employees covered under Employee¶s State Insurance Act. Such a benefits includes reimbursement of educational expenses to the employees and depended children.

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.

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
y y y

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.

No Employer Location &Description of Work Value of Contract (Rs.00 10192395.5 Sl. 08-13 Kunnamangalam Block in Kerala Kozhikode District.Kozhikode . Agr. Agr.2007 10416092. Kozhikode.20/08/2007 Peruvannamuzhi. Kerala Secretary.KR Thiruvanadapuram. KSRRDA.00 27041481. Irrigation Department.04/03/2008 330145066.00 1 Superintending Engineer. Plan Scheme 2006-07: Construction of Farmers Training Centre for Koothali Agriculture Farm at Peruvannamuzhi in Chekkittapara Panchayath. Kerala Including Maintanance for five years after completion. No.00 51439521. 3. Superintending Engineer. Agr.00 3 4 5 6 Kappad Development of Kappad Beach in Kozhikode District (Phase I) SE(1)5/2007-08 Dt. PMGSY 2006-07 Phase VI Package No. No.KZD-RT-01. 51/LSGD/2006-07 Dt. PMGSY 2006-07 Phase VI Package No. 08-14 Thuneri Block inKozhikode District. Agr.KR Thiruvanadapuram. Kozhikode.Kozhiko de. Including Maintanance for five years after completion.10957 EXISTING COMMITMENTS AND ON GOING WORK Table No.KSUDP. KSRRDA.19/SE-CRD/ 2007-08 Dt. 20/SE-CSR 2007-08 Dt.26/10/2007 Superintending Kunnamangalam. No. Engineer.THE URALUNGAL LABOUR CONTRACT CO-OPERATIVE SOCIETY LTD NO. No. Lakhs) 300388122.26. No. KSUDP/PIU-KZD/0I/URT/07-08 Dt. District panchayath. Kerala The Project Manager Project Implementation Unit. 2 Calicut Construction of Calicut Bypass phase II from ch:5100 to 11960 on NH 17 in the state of Kerala. National Highway. Agr.10.22/2008 09/SE/NH/KKD dated 20/03/2009 Calicut Road Improvement works for Kozhikode Package No.00 .13/03/2007 Superintending Thuneri Engineer.

No.00 11 12 15974585.29/02/2008 Superintending 14932798. including maintenance for Five Years after completion. Agr. Thiruvanadapuram. KR 08-16 Kunnamngalam Block in Kozhikode Distict.No. Thiruvanadapuram. Thiruvanadapuram.00 55571169. 26/10/2007 Kunnamangalam.NABARD-RIDF-XIIimprovements to Kallachi. Kerala Superintending Engineer. cooperative Acadamy of professional Education. Agr.00 Koduvally.Agr.PWD Roads &Bridges. 26/10/2007 Thodanoor. Engineer.00 13 Source. KSRRDA.29/02/2008 Superintending Engineer. KSRRDA. KR 08-11(F) Koduvally Block in Kozhikode District. Thiruvanthapuram Superintending Engineer. Kerala Kallachi. PMGSY 2006-2007 Phase VI Package No. Kozhikode.ValayamChuzhali-Puthukkayam Road from Km 0/00 to 4/700 Agr. Kerala 8 Superintending Engineer.06/06/2008 26882059. KR 08-18 Kunnamngalam Block in Kozhikode Distict. 21/SE-CRD-2007-08 Dt. KR 08-09 Thodanoor Block in Kozhikode District.84/SE-CRD/2007-08 Dt. Agr. No. Kerala 9 10 Kunnamangalam. 21/SE-CRD-2007-08 Dt. 15507272. KSRRDA.No. Alapuzha..85/SE-CRD/2007-08 Dt.00 17413709. Secondary data .00 37555441.Agr. 2/SE-CRD/2007-08 Dt. PMGSY 2006-2007 Phase VI Package No. PMGSY 2005-06 Phase V package No.SE(K)29/2009 Dt..28/09/2007 Alapuzha. Contuction of Main Block for College of Engineering at punnapra. PMGSY 2006-07 (Phase IV) Package No. PMGSY 2006-07 (Phase IV) Package No. KSRRDA. Thiruvanadapuram. Kerala The Director. No. including maintenance for five years after completion.7 Superintending Engineer. KR 08-11(A) Koduvally Block in Kozhikode Kerala District. including maintenance for Five Years after completion. KSRDA. No. Thiruvanandapuram.00 Koduvally.

25 paisa. canal . etc at s kannur. In 1928 they got a work from Malabar district board amounting to 1925 . and they got a profit of Rs 12. In the intitial stage of the society.03 crores (road improvement work) IInd phase of Calicut baipass amounting to 31 crores. they were constructed wells. Thrissur. . Palakkad inorder to provide employment to its members in a full year. Malappuram. But they didn¶t get any work till 1926 may 26. Now one of the biggest work that society is doing is the work of ³ Susthira nagara Vikasana Padhathi´ of Kozhikode corporation which is conducted with the aid of ADB amounting to Rs 33.Works The ULCCS was registered in 1925 februvary 13th and started to work.


buildings. >. 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. >. Major share of employees are from non members of the society. As they have high reputation and goodwill among the public and government. >. Threats of the society The society has following threats in its operation. there is an opportunity for them to extent their area of operation to the entire state. The society has a full strength of machineries. the society has side range of opportunities in public sector and in private sector as they related with construction of roads. therefore an opportunity is there as the society can increase their share capital by converting non members into members of the society >. and to make no compromise with quality of work. Inadequate laborer force corresponds to the works demanded. . Most of the works demanded cannot be executed due to less labour strength. equipment and tools for conducting works with high speed. Opportunities of the society The following will be the opportunities of the society >. >. As it is a labour contract society. The society has a best reputation and goodwill in the public and to the government. having major dealings in construction field. All the employees and office staffs are performing their optimum with an intention of increasing the societies efficiency. bridges. 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. >. >.SWOT ANALYSIS Strength of the society >. etc« >. Slowness in the process of arranging more and more workers from various places where many unorganized labour force are available.

The scarcity become one of the major problem there. As they were one of the major co-operative construction society in Kerala. ULCCS was faced the problem scarcity of employees in the field of construction. But they solved the problem up to an extend by adopting the following measures. y y y Importing of new machinery Employment is given to people outside Calicut and Kerala Giving subcontracts .Scarcity of employees in construction field In the year 2007 ± 2008. Measures taken by ULCCS y Stratagical change:They changed their strategy to ³take up a minimum number of big project rather than concentrating on many projects´. they were getting many large projects from government of Kerala and the Central government.


Change in social status People are behind white collar job Formation of nuclear family People are interested to work abroad .Reasons for scarcity of employees y y y y y Change in living style.


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. They can also appoint an agent or agency in each districts for arranging workers from each districts. y Recruiting people who has registered their name under ³dhesiya thozhilurappu padhathi´ . who were helping for recruitment of employees and workers.SUGGETION Taking help from various agencies There are many agencies who were supplying employees. municipalities and thaluks. They can take their help. 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.



www.BIBLIOGRAPHY 1.com .co-operativesocietiesinIndia.google.com b. Journals 2. www. c. Websites a.ulccs.ltd. www.wiki.


If not.Occupation 4. Why you are not working in ULCCS ? Employed elsewhere Interested in white collar job 10. 1.QUESTIONNAIRE.Address 5. what is the reason? Education Hard work Other reasons Status . Age 3. Are you aware of ULCCS ? Yes No 9. Are you working in ULCCS? Yes No 10. Whether they are interested in construction work? Yes No Looking for employment abroad 11. Joint family or Nuclear family ? 7. Family status? Children Students Employed Unemployed Retired 8.Name 2. Number of members in the family ? 6.

if so qualification? Up to SSLC Above Degree SSLC--+2 Others +2-. 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 . Whether the unemployed person is educated. 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 you are not interested in construction work? Less pay No reputation Less safety 15.12. What they expect from a job? Remuneration Satisfaction Safety Status 13.Degree 14.

training and information Co-operation among co-operatives Concern for community .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.


 People who have registered their name under ³deshiya thozhilurappu padhathi´ can be met directly or a detailed letter can be send to them giving details about UlCCS. a letter can be send to each person giving details on UlCCS. wage scale and all the benefits provided at ULCCS.  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. wage scale and all the benefits provided at ULCCS.EXPLANATIONS  ULCCS can appoint a person in every district who has got a good relationship with various agencies or subcontractors. They can be then taken on the basis of contract. This can help them to expand their work to other districts also. . municipalities and thaluks. They can be persuaded by explaining about the wages they will get and also about various benefits.  After collecting the list of unemployed people from various government organizations like panchayath.

By meeting directly or a detailed letter can be send to them giving details about ULCCS. municipalities and thaluks. Recruiting people who have registered their name under deshiya thozhilurappu padhathi METHODS A letter can be send to each person giving details on UlCCS. Gathering of unorganized workers from the nearby areas where the projects have to be done by forming a separate group for this purpose. 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. Taking help from various agencies. by appointing a person at every district who has hold on all agencies. Workers should be taken on contract basis. 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. . wage scale and all the benefits provided at ULCCS.

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