Construction and social protection

The increase in flexible employment practices and outsourcing of labour in the construction industry has had a negative impact on the level of social protection of construction workers. There is evidence from many countries (see for example the 2001 Report) that employers do not pay into social security funds for workers who are on temporary contracts. Hence the workers who are most in need receive no health care, no holiday pay, and no protection against loss of pay when they are unable to work due to unemployment, ill health, accidents or old age.

In India, legislation passed by the Federal Parliament in 1996 provides for the establishment of Construction Labour Welfare Boards to administer social security schemes on behalf of construction workers. Provision is made for the schemes to be funded by a levy or “cess” (tax) on all new construction work. The schemes have to be implemented at state level and so far only a few states have set up Construction Labour Welfare Boards. ILO undertook research into the functioning of the Boards in Tamil Nadu and Kerala with a view to assessing the possibilities for their replication in other states and other countries. For more information see the ILO working paper on Kerala.

The Sectoral Activities Branch of the ILO has also provided support to a United Nations Volunteers (UNV)/UNDP-funded 'Participatory Action Research' project amongst informal construction workers in Dar es Salaam, Tanzania. Findings indicate that many construction workers have organized themselves into groups, one of the main functions of which is to operate informal social security schemes based on contributions from the members. Providing a minimum level of security for all workers is an area of priority action for the ILO.

Useful links/resources

• ILO Social Security Policy and Development Branch
  
• ILO Programme on Strategies and Tools against Social Exclusion and Poverty (STEP)