SOCIAL SECURITY FOR CONSTRUCTION WORKERS INTRODUCTION There has been persistent demand for various trade unions,

particularly construction welfare boards of various States to extend ESI Scheme to construction workers. This demand is to be seen in the context of limited benefits presently available to such construction workers numbering about 4 crores in the country while huge unspent amount lying with such Boards. Keeping in view the need for Social Security for all vis--vis the demand in question, I have attempted this Article for the benefit of policy planners, trade unions and employers. ESI Scheme Through its benefits
(1) Medical Care Primary, secondary and tertiary with no cap.

(2)

Sickness Benefit

91 days - 70% of the average daily wages.

(3)

Extended Sickness Benefit

730 days (upto 2 years for specified 34 diseases)

(4)

Maternity Benefit

84 days + 4 weeks (due to complications arising out of pregnancy, confinement, premature birth of child etc.). Almost 100 % of the average daily wage.

(5)

Permanent Disablement Benefit/ Temporary Disablement Benefit

Based on loss of earning capacity as long as disability lasts. About 90 % of the average daily wage.

(6)

Dependants Benefit

On death of IP/IW to the wife till she is alive/ remarriage and to other family members as per conditions w.r.t. age/ marriage. About 90 % of the average daily wage. 50% of wages upto 12 months of unemployment on account of closure, retrenchment and permanent invalidity of not less than 40% arising out of nonemployment injury.

(7)

Rajiv Gandhi Shramik Kalyan Yojna (Unemployment Allowance)

(8)

Incentive Scheme for persons with disabilities

The employers share of contribution is paid by government for 3 years for providing employment to persons with disabilities drawing monthly wages upto Rs.25,000/-

ESI THROUGH ITS INFRASTRUCTURE

Hospitals directly run by ESIC including super-speciality hospitals Dispensaries directly run by ESIC ESI Hospitals run by State Govts. Dispensaries and ISM units Tie-up Hospitals ROs/SROs/Div. Offices Branch Offices 34 36 117 1372/91 800+ 59 627

APPLICABILITY OF THE ESI ACT U/S 1(5) & 2(12) Non-seasonal factories employing 10 or more persons under Section 2(12). Motor Road Transport, Preview Theatres including Cinemas, Newspaper Establishments, Shops and private medical and educational institutions in implemented areas u/s 1(5) employing 10/20 or more coverable persons. Presently, the scheme covers workers drawing wages upto Rs.15,000/- per month (for persons with disability upto Rs.25,000/-) {proposed to be enhanced}

ESI SCHEME THROUGH COVERAGE AND CONTRIBUTION (AS ON 31.03.2013) Insured Persons Beneficiaries Factories/Establishments Implemented centres Contribution 1.84 crores 6.63 crores 6,02,000 812

Employees 1.75% and Employer 4.75% Total 6.5% of wage.

UNIQUENESS OF E.S.I. SCHEME 1. It covers all types of employees permanent, temporary, casual, whether employed directly by the principal employer or through contractors in covered factory/establishment. 2. It covers from day 1 of his employment, irrespective of whether he/she has paid contribution which enables receipt of medical benefit (including for family members), disablement benefit and dependent benefit. 3. Single contribution but multiple benefits Medical care (including for family members), sickness benefit arising out of loss of wage due to abstention from work in the form of cash benefit, conveyance expenses for ambulatory services or for attending medical

boards, disablement benefit arising out of injuries/accident while working temporary and permanent, dependent benefit, various other benefits in cash/kind like maternity benefit, funeral expenses, vocational training for permanently disabled cases requiring change of job and latest benefit introduced w.e.f. 01/04/05, i.e. Unemployment Benefit. 4. Scale of Medical Care both outdoor and indoor treatment, all kinds of investigation and pathological tests, supply of medicines and super speciality treatment in tie-up hospitals like AIIMS, Shankar Netralaya, (Chennai), Apollo, Peerless Hospital, extended sickness benefit for long term diseases. 5. No pre-medical examination for registration as a beneficiary under the scheme. 6. Medical care for retired/permanent disabled IPs who have rendered at least 5 years of insurable employment. 7. Occupational disease related treatment and cash compensation with Corporation presently having 5 occupational disease centres at Pune, Delhi, Kolkata, Chennai and Nagda (Madhya Pradesh). 8. Medical treatment and cash benefit for loss of wage during sickness/disablement are available simultaneously to the Insured Person/Insured Women. 9. All the above benefits vis-a-vis contribution paid/payable by the employee covered under the Act is based on the principle pay as per capacity, take benefit as per requirement. RECENT INITIATIVES Monthly PDB and DB payments through ECS only. Life certificates by DB pensioners once in a year. Minimum DB Rs.1200/- per month. Commuting Accidents treated as Employment Injury. Tie-up with corporate hospitals for extending secondary and super-speciality treatment. Funeral expenses enhanced to Rs.10,000/-. Assessment of contribution for period beyond 5 years barred. Provision of Appellate Authority. Project Panchdeep Pehchan Card for self and for family, online coverage, compliance, payment of contribution and delivery of benefits.

BENEFITS PRESENTLY AVAILABLE TO CONSTRUCTION WORKERS The construction workers welfare boards are mandated to give benefits such as financial assistance in the case of Accident, Old Age Pension, Housing Loans, Payment of Insurance Premium, Education, Medical and Maternity Benefits, apart from RSBY Scheme to the construction workers registered with the Board. COVERAGE OF CONSTRUCTION WORKERS UNDER ESI ACT (i) Construction activity has been covered by the ESIC under Section 1(5) treating them as commercial establishment. However, a decision was taken not to cover various categories of construction site workers, in view of their peculiar nature of employment and only to extend coverage to those employed in the office of the Construction Company. The coverage under ESI Scheme to a construction unit can be extended u/s 2(12) also, if in any part of the construction unit, manufacturing process, as defined under Factory Act, is carried on.

(ii)

IMPEDIMENTS IN CONVERGE OF CONSTRUCTION SITE WORKERS (1) Due to migratory nature of construction site workers, enforcement will be a big challenge. (2) Due to migratory nature, it would be difficult to extend benefits to the family members. (3) Extra burden on employers who are already paying construction cess. (4.75% of wages as employers contribution for ESI coverage). (4) Workers may find deduction of 1.75% of their wages burdensome. (5) Due to large concentration of construction activity in non-implemented area, ESI facility would not be available for one set of workers in the same company. (6) The contribution rate and benefits could not be tailor-made for the construction site workers as there is no such provision exists in the ESI Act. (suggestion of Karnataka Construction Welfare Board). Employer and Employee relation is crucial for coverage under ESI Act. To that extent construction Board cannot assume the role of employer (suggestion of Delhi Construction Welfare Board) POSSIBLE SOLUTION FOR COVERAGE OF CONSTRUCTION SITE WORKERS As per amendment in the ESI Act, 1948 w.e.f. 01.06.2010 vide ESI (Amendment) Act, 2010, medical benefit under the scheme can be extended to other beneficiaries on payment of user charges subject to framing of schemes by the Central Government.

It is to be examined whether at the first instance site workers in implemented centres can be brought under coverage with reference to Section 1(5) of ESI Act whereby office of construction agencies presently stand covered.

CONCLUSION : As I have been persistently articulating a view that there is no dearth of fund but limitation of attitude which is preventing implementing the social security for all in general and extending benefits of ESI/PF to construction workers, in particular. Let all the stakeholders in the country come forward to get the dream fulfilled of Father of the Nation for a just and equitable livelihood for such deprived section of the society.

( B.K. Sahu ) He is presently serving in ESI Corporation under Ministry of Labour & Employment Views expressed are personal Can be reached at bk_sahu04@yahoo.com