Union Labour & Employment Ministry Likely To Take Control Of Cess Pool On Building Workers From States, Says Its Secretary

The Union Ministry of Labour & Employment is working out a solution to take control of the cess collected through real estate developers in the last couple of years for the welfare of construction workers, estimated to the tune of about Rs.20,000 crores, according to Secretary, Ministry of Labour & Employment, Mr. Shankar Aggarwal.

Addressing a Seminar on Compliance of Labour Legislations-Issues of Concern under aegis of PHD Chamber of Commerce and Industry here today, Mr. Aggarwal said that his ministry has advanced the consultation process with various state governments across the country as the cess on building workers is collected by state governments and as the estimated amount was hardly utilized for the intended purposes ever since the cess began to be collected in the last few years.

On a suggestion that a part of the cess would be used as the construction workers contributions towards the provident fund facility since such workers are so poor as to make their mandatory contribution to the fund whereas their employers would continue to pour in their contributions to the fund so that the construction workers become eligible for PF withdrawal, the Secretary said that the government would favourably consider it.

According to the Secretary, close to Rs.20,000 crores are lying idle in the cess pool which currently are managed and controlled by various state governments. With its repatriation to the centre pool, it could be better and suitably utilized for the benefits of the children of construction workers for support of their education and community services but also to give them entitlement for social security in terms of PF facility.

Mr. Aggarwal also said that reformative policies of the present government have indirectly led to the benefits of the working class of various segment in the recent past that now the government would have to create between 5-7 million jobs each year in the next few years rather than creating the 10 million jobs per annum.

In the meanwhile, the PHD Chamber suggested that it should be the responsibility of the various builders association of the country including trade unions to ensure that the construction workers are registered with the various PF office located within the country so that only registered workers find placement on construction sites so that their PF is well protected.

This suggestion was jointly mooted by the President, PHD Chamber, Mr. Alok B. Shriram and its Past President & Chairman, IR&HR Committee, Mr. Ravi Wig which was endorsed by the Secretary of Labour & Employment including Chief Labour Commissioner (Central), Mr. P P Mitra.

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