As India?s economy booms, a labour vacuum has opened up in the construction industry in South India, with skilled workers moving to manufacturing and service-oriented businesses, even as the younger generation refuses to take up their traditional professions. With migrant labour not sufficient to address the growing need for skilled masons, carpenters and welders, real estate companies are tying up with skill development institutes to ensure that the growth momentum does not lose steam.
Says Ramesh Nair, managing director, Chennai, Hyderabad & warehousing and manufacturing solutions at Jones Lang LaSalle: ?The shortage of bricklayers, rod benders, welders, wall painters and other skilled and semi-skilled labourers is threatening to slow the construction of projects which are key to the nation?s economic growth. A World Bank study states that India is staring at a labour crisis in the construction sector. Although no formal figures are available, informal inputs from the industry estimate shortage of labour at approximately 30%. The supply of skilled and semi-skilled workers will barely keep up with the pace of growth and will fall short by 18-28% under medium growth scenario. However, under a high-growth scenario, the shortage will be to the tune of 55-64% over the next eight years.?
In a bid to absorb and retain talent, builders are loosening their purse strings, upgrading technology, offering joining & retention bonuses and paying salaries in advance, besides bringing labourers from rural areas and providing them accommodation and cr?che facilities near construction projects. Salaries have also been increased by 20% from last year?s.
Says Sri City co-founder and MD Ravindra Sannareddy: ?Shortage of skilled labour is a big challenge for builders and contractors. Our flagship project, the 6,000-acre Sri City SEZ project on Chennai-Andhra Pradesh border had faced a skilled labour shortage of 50-60%. The next generation of traditional building workers from places like Salem and Erode is not inclined to pursue their ?family profession? and are moving to other jobs, giving room for migrant labour.
Sri City recently signed a memorandum of understanding with IL&FS Cluster Development Initiative, a subsidiary of IL&FS Education and Technology Services based in New Delhi to establish a skill development institute at Sri City. Under the agreement, Sri City, apart from providing infrastructure facilities will also provide hostel accommodation for trainees and facilitate placements to candidates completing training in and around the industries of Sri City.
IL&FS Cluster will be responsible for managing the overall activities of the school, says Sannareddy.
According to Nair, labour shortage has ballooned with more workers moving to the retail sector and service-oriented industries, which offer better pay and working conditions. Contractors find it ever more difficult to hire even migrant labourers and the cost of acquiring and retaining labour is a huge challenge.
?Most notable is the delays at the last stages of a project. Carpenters, painters and electricians are even harder to get than masons. It is inevitable that there will be delays in project completion unless the shortfall in these skills is overcome,? he says.
Recently, real estate developer Marg ?which is also into EPC business ? tied up with International Infrastructure Consultants (IIC) to establish an institute for various construction trades. IIC, an independent consultancy focusing on engineering, procurement and construction will facilitate Marg in setting up the training institute. ?The institute will not only help the company retain uniform and high levels of quality in its works, but will also revitalise the communities in and around our development zone,? says Marg, chairman and MD GRK Reddy. Retaining quality manpower through training and development is becoming inevitable for corporates in EPC business, he adds.
Says IIC chairman GV Ramakrishna: ?An effective strategy to leverage opportunities, an appropriate structure and sound processes along with extensive training will strengthen EPC companies.?
Says Nair: ?The challenges arising out of deploying unskilled labourers are manifold. Their lack of education and skills makes their choice very limited and hence prone to exploitation by contractors for their benefits. India has the world’s highest accident rate among construction workers according to a recent study by the International Labour Organisation, which showed that 165 out of every 1,000 workers are injured on the job.?
