Recent amendments in the welfare acts for construction workers are being upheld by contractors discovers SHUBHANGI BIDWE. After a long time, a law proposed by the government has almost all contractors nodding in approval. The recent amendments in the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996 and Building and Other Construction Workers' Welfare Cess Act have been upheld by the community. What the amendments say The provisions of the amendment include: To empower the Central Government to specify the maximum cost of construction by notification, in place of the present limit of Rs 10 lakh. The prerequisite condition of engagement of 90 days for registration of workers under the BOCW (RECS) Act is proposed to be done away with. Moreover, in order to extend benefits to workers engaged in building and construction work after attaining the age of 60, the criterion of the upper age limit of 60 is proposed to be done away with. To empower the Central Government to notify such percentage of total expenditure, in place of the existing 5 per cent during the financial year, to meet administrative expenses by the State Building and Other Construction Workers Welfare Board. To empower the Central Government to appoint such number of Director Generals not exceeding 10 to coordinate with the Central Government in carrying out its responsibility of laying down the standard of inspection and to exercise the power of an inspector. To empower State Governments to file complaints for contravention of provisions of the Act. To prescribe a time limit of 30 days for cess collecting authorities to deposit cess to the State Building and Other Construction Workers Welfare Board. To constitute a committee consisting of the Secretary (Labour), Secretary (Finance), Secretary (Planning) and Secretary (Social Welfare) of the state to perform the functions of the State Building and Other Construction Workers Welfare Board till such time a board is formally constituted by the State. Contractorspeak "The act is a benevolent and beneficial piece of legislation and aims to regulate employment as well as conditions of service of building and other construction workers," affirms Goutham Reddy, Executive Director, Ramky Group. He also agrees with the period of 90 days granted to workers to register with the labour welfare boards as "this would give contractors sufficient time to mobilise the resources and therefore honour the provisions of the act". However, Anjan Deb, Vice-President - Business Development & Corporate Strategy, McNally Bharat Engineering, believes this clause needs to be abolished as “owing to modernisation and mechanisation of construction work, a sizeable number of projects are being completed well within 90 days nowadays”. In his view, the skill of workmen does not get impacted by the 90 days—it is a function of the years of experience they gain in the industry. "The skill level of construction workers and the 90-days criterion for registration have no direct correlation,” he adds. “As far as the issuance of an experience certificate is concerned, the industry issues a Service Certificate as prescribed by the Act or Rule and the MBE follows the same. However, in reality the demand for an experience certificate from construction workers is not too prevalent. Whenever requested, they are issued in line with the provisions of the Act." Cost of construction: Another major clause in the amendments includes empowering the Central Government to specify the maximum cost of construction by notification, in place of the present limit of Rs 10 lakh, which shall fall within the definition of establishment under the BOCW (RECS) Act. Reddy does not consider this practicable "as the cost of material and labour has skyrocketed." Deb, on the other hand, recommends raising this limit of the maximum cost of construction to Rs 10 crore "to make the amendment more meaningful and relevant in the perspective of the current global economic scenario and the resultant cutthroat competition". Age matters: The law also proposes to abolish the upper age limit of 60 years of retirement for workers engaged in building and construction work. This is not favoured by these contractors. "Workers have to slog under different terrain and circumstances and moving in such site conditions require lots of energy and mental agility," observes Reddy. Deb agrees, saying, "After the age of 50, people tend to get affected by age-related physical complications, such as failing eyesight, high blood pressure, and general wear and tear of muscles and bones; hence, the present criterion of 60 years is rational and reasonable." As with any change, the proposed amendment has triggered off a debate. To know how matters progress, watch this space.