| | CONDITIONS OF CONSTRUCTION WORKERS IN INDIA The nature of construction work is temporary, therefore the jobs in the construction industry are also temporary. The number of workers employed on a construction work may be increased or decreased according to the requirements. They remain idle till they find the job at another construction site. Large construction companies/firms engage managerial and supervisory staff on regular basis but construction labour is_ mostly migratory in nature moving from one site to another in search of work. Labour which is attached to the large contractors, migrate to new construction work taken up by them. Due to very low wages, poor working conditions, general illiteracy, poverty and temporary employment (daily wages) the output of work in India in very low as compared to the construction workers in other countries of the world. The Indian workers (due to illiteracy) are not able to read drawings, interpret the specification and carryout the construction work independently, The Indian worker needs guidance and supervision of their work. The Indian firms which are engaged in construction projects in foreign countries the difference in productivity is noticed. For example, an American or Russian construction worker is able to read drawings, interpret specifications and carryout the works independently. Due to low productivity, the wages of Indian labour are very low and hence the Indian labour is cheapest amongst the other countries of | the world. Low productivity is the factor which goes against Indian labour when the work is on schedules only few of them get standard wages. Construction labour cannot have an organization like factory workers and other industries because there is no permanent place of work for them. Due to the above fact the construction labour is in bargaining positions and are too poor to knock the door of justice. Hence, they are helpless. This situation is completely exploited by employers. Construction workers are very low paid and the net income is reduced due to the lean period when they are not having work. “The condition of Indian labour is very poor. Being the low wages they are not given full facilities and welfare. The construction labours live at site under unimaginable unhygienic conditions.A WAGES PAID TO WORKERS ine work performed by them. Nig, Wages may be defined as the remuneration paid to the workers for ie i for money andemployes_ | Contract income fixed between the employers andthe workers. Workerssell labour for narey AOE epoyey | Purchase labour for the execution of work. Inather words the remuneration paid daly or Weekly tty ordinary skilled or unskilled worker is. known as wages. Wages may be paid in any form either in cash substitute of it. The wages are of the two types : 1.” Nominal wage and [J 2. Real wage. 1. Nominal Wages. The wages paid to workers in the form of money for the work done by them is known as Nominal wages. Any other benefit is not included in it, if provided. 2. Real Wages. The wages paid in the form of luxuries and comforts which are necessary to improve the standard of living are known as Real wages. In other words the remuneration in which the value of benefits (such as leaves, medical care, house re allowance and bonus, etc.)is included with the nominal wages, is known as Real Wages. [ZEES SYSTEM OF WAGE PAYMENT There are two systems of wage payments ie., 1. Time rate system or time work or day work system, 2., Piece work or piece rate system, 6.4.1. Time Rate System The system in which a suitable rate of payment is fixed per unit of time devoted to the work by the worker for the wage payment is known as time rate system. In this system the wages are calculated on the basis « of work done irrespective of the output. The unit of time can be hour, day, week or month. The rate of= wages payment fr csual labours fixed per dy orper week and that ofreglereopn etcpeal sralstry. In this system as the payment does not depend upon the output. but deen tence, they ana ot time devoted to the work, the workers do not find any intensive for more output. Hence, they do not work hard, The main wee evita i more stress is desired sathe quality of work rather thar ai ¢ of this system is where when mor Advantages. Following are the advantages of this system : 1, It is easy to understand by the workers and easy for wage calculation. 2. aoe ‘one Category get the same wages irrespective of whether they are skilled or unskilled. 3, The quality of work is always 800d because the workers are not intended for more output. 4, The workers are not over straine . d mentally and physically i i output is not the main criteria, 'y and physically in making attempts to more output as the .. This system is most suitable for the Work of artistic nature which re luires high workmanship and measurement of work is very difficult, aes eh , 6, The system ensures Tegular employment and greater security service for the workers. Disadvantages. In spite of advantages, there are still some drawbacks or disadvantages of the system. They are discussed below : . The system needs constant Supervision so that no one remain idle. 3 The same rate is paid to both good and bad workers, therefore the workers do not have incentive for higher output, . The output of work is always low because workers are assured of their wages irrespective of the output. There is loss of labour. Production efficiency cannot be increased. .. The system does not inspire the spirit of competition in the workers. Hence, there are no chances of greater output. 6. Due to varying productivity effective cost control cannot be ensured. 6.4.2. Piece Rate System According to piece rate system, the payment is made on the basis by the output ofthe workers. Therefore, the workers have incentive to do more work for getting more payment. The work done is measured and payment is made according to the rate agreed. The rate of payment as of each item of work such as excavation, masonry work, welding, bar bending, etc, is fixed on the basis ofthe past record ofthe output. The fixing of rate is done by experienced persons. This system is used generally when the quantity of work is of more importance than quality. Advantages, Following are the advantages : 1. This system is fair both for employer and the employee. 2. The workers are satisfied with payments made to them because they get more for more output by them, . The overall productivity is increased due to greater efforts put on the part of workers and their desire to get more for producing more output, 4. Supervision work is reduced. / 7 5. As the workers are not paid for idle time, they will take interest to find the fault and rectify it 6. Employee-employer relationship is improved. 1. The inefficient workers are punished automatically.ors is reduced. 8. The quarrel between the workers and the supervisors I 9. Effective cost control is ensured. | te system : Disadvantages. Following are the disadvantages of the piece i 1. Wages for workers are not guaranteed. “yw Hm th, 2. Workers are over strained themselves in making their effort for more output. , their eat, affected. orkers tendency becomes to speed up their yog, 3. The quality of work may be inferior because the w ° to get more payment for more work (they do not consider the quantity). The system is more complicated because it requires a record of the output of each worker. Rate fixing of different items of work require a careful study of the work. . This system creates jealousy and competition among the workers. That is .. This system is not suitable for work which cannot be measured. bad. tae_ [EEEMBN PAYMENT OF WAGES ACT, 1936 Fe areaiction of TREE Ta This act regulates the payment of wages to the workers and protects any ki : act was passed first in 1936 and later it has been amended in 1957, 62, 75, 77, 82 and 2017. The important provisions of the act are as follows : 1. Scope. This act is applied to employees having a salary of less than € 24,000/- per month. 2. Wages. According to this act, the wages are defined as “all the remunerations in the form of money payable to the workers including bonus, incentive and other rewards ”. However, the house accommodation, supply of light, water, medical facilities and aids, travelling allowances, provident funds and pensions, etc., are not included in wages. 3. Periods of wages payment. According to this act the wage period will be maximum one month. The payment must be made by 7th of following month by organizations employing employees less than 1,000 and by 10th of the following month by enterprises employing employees more than 1000. The payment of wages will be in the form of coins of currency, In case a worker is terminated, the wages must be paid within 48 hours of his termination. 4, Deductions from wages. No deduction, except the following, are permissible from the wages of the workers, i.e., [IO fines [[@ absence from duty© none rent (2) water and electricity charges (©) provident fund (income tax (@) recovery of advance payment (), damage or loss to property (@_ contribution of cooperative societies, insura Regulations and safeguards for deductions, have been laid down in the Act : ince and subscription to Government sureties. ‘The following safeguards and regulations for these deductions 1. No fine can be imposed in i any case on children below the age of 15 years. 2, Maximum fine imposed ona Worker for any act of omission or commission sho one day’s wage of the employee. n should not be more than 3. The fine money should be aed deposited in the “fine fund” and should be used for the benefit of the 4. The deductions for absence from the duty fe s pede ty for one day should not be more than one day's wages of 5. The deductions on account of water, workers. electricity and house rent should be as acceptable to the The deductions for any kind of damages or losses should be only made if it is due to the worker's negligence and carelessness. The amount of deduction should not be more than the amount incurred by. the organization/establishment. Various State Governments have made certain amendments, therefore the provisions of this Act may vary from State to State, E2233 MINIMUM Waces Act, 1948 The Minimum Wages Act, 1948 makes provision for fixing the minimum rate of wages of labour in certain employments. This act was passed in 1948 for the first time and is of the most important requirements of the country. The aim of the Act is to make provision for the statutory fixation of the minimum rate of wages in a large number of industries in India where there are more chances for exploitation of labour. In our underdeveloped country which is facing the problem of unemployment on a large scale itis not good that the labour may offer to work of poor wages. Provisions of the Act. The Minimum wages Rules (Central Government) framed under the provisions and the main provisions of the Act are as under : 1. Minimum wages. According to this Act, the minimum wage is defined as the amount of money to be eamed by the worker sufficient to give him normal needs and reasonable comforts for living in a civilized society. The minimum wage should be enough to live according to the standard of worker and that must be just and fair so that the worker can keep his body and soul together. 2. Aim of the Act. According to this Act the main aim of the act is to fix the minimum wages in large umber of employments (industries in particular) in which there are more chances of exploitation of labour. The minimum wages are fixed on the factors such as time rate, piece rate, guaranteed time rate and overtime rate keeping in mind the different occupations and places. 3. Fixation of minimum wage. A advisory committee is set up by the Central Government with the help ofthe representatives of State, Central Government, employers and employees. The committee is empowered to collect the information or fixation of minimum wages according. to the requirements of workers. Under this Act holidays, daily working_ hours and payment of overtime are fixed. A proper record of the payments of minimum wages is kept by the employer so that an inspector Authority can check the same.4. Payments of wages. The wages should be paid to the workers at arate mus ses» unat we prescribeg tinimum wages for that class of employees. The wages required to be paid in cash. In case the worker ig employed on any day for period less than the normal working day (i.., hours), he is entitled for fy working day wages. The wages of a worker in any employment shall be paid on a working day, ie (a) | The 7th day, after the last day of the wage period (one month), if the establishment has less than 1000 workers. (8). The 10th day after the last day of the wage period, if the establishment has more than 1000 workers, 5, Normal working day. ((@)) The number of hours to be worked in normal working day shall be : (@ for adult-9 hours. (ji) for child-4.5 hours. (6). The working day of an adult, including rest intervals cannot be more than 12 hours on any day. (©), Every week a rest day shall be allowed with wages to the workers by the employer. ((@)_ In case the worker works on a rest day, he shall be paid wages at the overtime rate and a substitute ~ rest day with wages. : (©, After working nine hours, for working overtime he shall be paid wages at double rate for overtime © period only. 6. Deductions. Generally the wages shall be paid without deductions but the following deductions are allowed according to this Act : |(@)! Absence from duty (®) Fines (6), Loss of property/goods-due to negligence and default of the'workers. |(@), House rent for accommodation provided. (©) Recovery of advances () Recovery of loans ((g). Recovery of over payment (A) Income tax (i). Provident fund subscription (J) Deductions ordered by the court (® Payments to life insurance corporation or cooperative societies. @, Services supplied i.e. water supply, electricity charges, etc. 7. Penalty for Offences. An employer who pays less than minimum rate of wages/less than the amount due to him/breaks any rule, shall be punishable with imprisonment upto six months or with a fine upto %50,000/- or both.LABOUR WELFARE FUND ACT 1936 Labour welfare is an aid in the form of money or necessities for those in need. It provides facilities to labourers in order to improve their working conditions, provide social security, and raise their standard of living. To justify the above statement, various state legislatures have enacted an Act exclusively focusing on welfare of the workers, known as the Labour Welfare Fund Act. The Labour Welfare Fund Act incorporates various services, benefits and facilities offered to the employee by the employer. Such facilities are offered by the means of contribution from the employer and the employee. However, the rate of contribution may differ from one state to another.Scope of Labour Welfare Fund Act The scope of this Act is extended to housing, family care & worker's health service by providing medical examination, clinic for general treatment, infant welfare, women’s general education, workers activity facilities, marriage, education, funeral etc. State specific Labour Welfare Funds are funded by contributions from the employer, employee and in few states, the government also.How Does the Process Work? The contribution in the Labour Welfare Fund may be made annually, half yearly or monthly. The frequency may differ depending upon the state specific Act. Further, if the frequency is half yearly the period of deduction shall be divided into two consecutive periods as per the date mentioned in the state specific Act. The employer needs to make the deduction from the salary of the employee and submit the same to the Labour Welfare Fund board in the prescribed form before the due date.Labour Welfare Fund Expenditure In general the money in the Fund may be utilized by the Board to defray expenditure on the following: Educational facilities for the children of the workers. Medical facilities for both private and public-sector employers to facilitate medical facilities for their workers and their families. Transport facilities to the workers for commuting to work. Recreational facilities in form of music, dance, drama, games, sports, paintings, etc. are usually offered to the employees to build a wholesome working environment. Housing facilities under this scheme offer loans to industrial workers for constructing houses at concessional rates. Excursions, tours and holiday homes. Home industries and subsidiary occupations for women and unemployed persons. Reading rooms and libraries. Vocational training. Nutritious food to children of employees.