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TOUGH TIMES: A sight like this one is uncommon in Thripunithura these days owing to the layoff.

Though the initial demand for a 30 per cent increase has been scaled down to 13 per cent, the builders are not agreeing to give a raise that is more than the usual yearly fare.

The construction workers who are on a Satyagraha in the town say the builders need not oppose the demand as they sell flats at a higher cost to accommodate all-round price escalation. The wage increase should be seen in the context of the inflation faced by the workers too.

However, the builders feel that it will be difficult to consider the “steep” increase in wages as the construction industry is in a crisis because of the sharp increase in the prices of all raw materials, such as steel and cement.

The major associations such as the Kerala Builders’ Forum, Kerala Builders’ Association and Builders Association of India are lending support to the Thripunithura builders on their stand.

The workers’ demands has put the builders in a fix. M. Unnikrishnan, managing director of Royal Projects group, which is carrying out many projects in the area, says, “‘Workers’ wages constitute 35 per cent of a project’s cost. What they are demanding would push it over 50 per cent of the total cost.”

The Thripunithura Builders Association decided to lay off work to ease the pressure built up by some of the workers’ unions. In fact, many small-time builders were pressured by the unions into agreeing to a wage rise by 13 per cent than that of the previous year, says Jayanthan Namboothiri, president of the association. Local workers are trying to force this “agreement” on the entire area, he says.

“We had scaled down the demand from 30 per cent to 13 per cent,” says P.B. Satheesan, Indian National Trade Union Congress leader. The demand has been accepted by most builders, except the major ones, who are unhappy at paying higher wages in Thripunithura than that in the city area (Ernakulam), he adds.

According to Mr. Unnikrishnan, usually the builders keep a margin for cost escalation in their projects, but this time the costs have perhaps gone up much more than any reasonable estimation.

Workers in Thripunithura have been getting more wages than their counterparts in Ernakulam or other nearby areas, such as Thrikkakara or Maradu, he says. According to him, the workers are only demanding a uniform wage rise in the whole of Thripunithura.

However, the builders want parity in the wages in the whole district. Different wage pacts exist in various areas leading to a row among the workers and the contractors.

Workers’ wages have undergone a sea change over the past 15 years. From Rs. 52 a day in 1992, a worker gets Rs. 190 now. A skilled worker gets Rs. 225 from the Rs. 62-65 then. The demand is for Rs. 255 for a skilled worker and Rs. 225 for an unskilled worker.

While the general increase in wages is comparable to the rise in cost of living, the new hike demanded by the workers is not part of the package that the builders provide as a yearly increase. The workers have asked for a better raise only because of the rise in the price of key commodities, such as rice, Mr. Satheesan says. The builders are not ready to give a raise more than the usual Rs 10-12, he said.

“Usually, a project lasts two years and we provide 10 per cent increase in wages each year. The second 10 per cent is on the increased wage; hence, the total increase is more than 20 per cent,” says M. V. Antony, secretary, Kerala Builders’ Forum, which has extended support to the builders in Thripunithura.

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