Big boost for unorganised sector workers likely soon; Centre mulls this big step

In a big revelation today, it has been revealed that the government is working on a plan to create a dedicated fund to judiciously use the money collected through the construction cess. Money collected through construction cess can be used to provide medical facilities to people working in different unorganised sectors including for construction workers.  Sources close to the development informed Zee Business's Prakash Priyadrshi that all workers who work in the unorganised sector and don't have a registration under ESIC will be provided with the medical facility, which will be provided by using the same fund.

According to the sources, the Union Labour Ministry is considering a proposal in which state governments will be contributing in ESIC for these people by acting as an employer to them. In addition, the states will be asked to contribute to the dedicated fund.

The states and union territories (UTs) have collected approx Rs 34,000 crores through construction cess, but a huge amount of about Rs 27,000 crore has not been used and is lying idle with them. 

The sources say the states have failed to devise a mechanism to utilise the money in a judicious manner even after Centre wrote several letters asking them to devise a mechanism for the purpose was written to them.

The Building and Other Construction Workers’ Act of 1996 says that the money collected in form of construction cess should be spent on the welfare of the construction workers but the states have either spent it on other sector or spent very little of the same on the welfare of the construction workers. 

The 1996 Act is meant to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare. 
 
Sources have revealed that Centre has started the consultation process with the states on the proposal and any agreement on it will help a huge workforce working in unorganised sectors to get quality medical facilities. 

As of now, the employment and conditions of service of construction workers are being formally regulated under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act in 1996, which also aims to provide for their safety, healthcare and social welfare. The Act, which came into force in March 1996, applies to every establishment which employs 10 or more workers for any kind of construction work.

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The Act covers both building construction and "other construction" work within its ambit. Other construction is defined as workers involved in works like maintenance, demolition, and alterations.