The real estate sector is the second-highest employment generator in India. The industry is expected to reach a market size of $1 trillion by 2030, while contributing around 13% to the GDP of the economy by 2025.
The significant growth registered by the real estate industry in the retail, commercial, and hospitality sector has driven millions of workers to find their means of living at construction sites. Contractual laborers and migrant workers form the backbone of the real estate developments in metropolitan cities. Real estate developers and organizations thus must develop and adopt policies that uphold the dignity and rights of the workers and promote their wellbeing at work sites.
As sustainability becomes an inherent element in corporate practices across the globe, a one dimensional focus on financial growth of the organisation is no longer enough.
Providing equal opportunity and treatment for all men and women is fundamental to inclusivity and sustainable economic growth. For businesses across industries, creating jobs and a favorable working environment must now go hand in hand with ensuring the freedom, safety, personal development, and social integration of the workers at the workplace.
How do Good Labor Practices benefit the Stakeholders in the Employer-worker Relationship?
International Labour Organization (ILO) provides a framework of international labor standards “promoting opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and dignity.” Good labor practices help strengthen the employer-worker relations and increase job satisfaction, leading to multiple benefits for both stakeholders – employers and workers.
Compliance with minimum wage norms and working-time standards, and respect for equality translates into improved performance. Job satisfaction and increased productivity are progenitors of a healthy work culture, which helps in reducing staff turnover. Good labor practices are also direct motivators of loyalty and performance in employees.
Organizations that invest in vocational training, implement skill development programs and conduct safety training within the premises are indirectly reducing their operational costs. A better-trained workforce means reduced accidents and minimal fatalities, thereby reducing the healthcare expenditure and ensuring employee well-being.
Training in progress at Max Square, Noida
For corporates and real estate developers, good labor practices can also provide greater access to markets – both foreign and domestic. Studies conducted in the past have pointed out that investors look for workforce quality and political and social stability over low labor costs while choosing the country or corporation to invest their funds in.
At the individual level, consumers have become more particular about the products they buy, while companies have become more selective about the suppliers they choose, basing their preference on the ethically driven sustainable practices and the CSR initiatives being taken by each organization. Several organisations have faced backlash and boycott of products, owing to revelation of their unhealthy work culture and labour practices.
How can real estate developers make a difference?
In the real estate sector, a large share of the workforce, which often comprises migrant and rural workers, is employed informally or on a contractual basis. Such workers are often denied social justice and are excluded from social protection schemes running under the government.
In collaboration with the social institutions and the government of India, organisations in the real estate sector can work towards the implementation of good labor practices and achieving optimum governance to uphold the rights and dignity of the workers. The Occupational Code introduced by the GOI “ensures portability of the Public Distribution System and other benefits like Construction Cess that should help the inter-state migrant workers who are employed by firms on a contractual basis. It will help the State and the Centre create a database of migrant workers for sure. Also, the Code mandates no gender discrimination in any line of work.” By implementing the occupational code at construction sites, real estate players encourage equal and equitable distribution of work among both genders, and ensure benefits of employment policies are passed on till the lowest rung.
At Max Estates, there is also a provision of creche and daycare facilities for workers’ children at all sites employing female workers. The creche has a well-lit and ventilated bedroom and ample creche space, along with a caretaker, ensuring women, who are conventionally given the responsibility of taking care of the children, can also work freely. There is also a zero-tolerance policy towards child labor and forced labor on the project sites.
Investment in employee welfare, not just through monetary schemes, but by setting up offices that prioritise employee health is also a contributor to this cause. Post the pandemic, organisations are choosing well maintained contemporary office complexes that offer better employee well-being and the best of amenities. This year has witnessed an increasing trend of flight to quality, with top-notch companies upgrading to developer owned Grade A+ spaces to prioritise employee health.
Sanitation drive at Max House, Okhla
Ensuring equitable access to facilities goes a long way in establishing positive labour practices. The pandemic has also highlighted income disparities greatly, with several underprivileged sections of the society being denied access to healthcare and vaccinations due to lack of information, funds, or digital infrastructure. All the contractual workers employed at Max Estates’ project sites have been fully vaccinated with atleast one dose of the COVID-19 vaccine, fully sponsored by the organisation, to ensure equal access to vaccines is provided.
Similarly, ensuring reduction of pollution at construction sites, along with regular safety training, inductions and education on proper management of hazardous waste also ensures that the labour force’s health is prioritised. Issue and use of proper PPE (personal protective equipment) is equally important, and must be prioritised by real estate developers.
Another major step organisations can take is to ensure all their partners abide by the labour laws and reforms set by the government. All our suppliers and contractors at Max Estates also comply with the provisions under the labor laws and regulations of relevant laws, including the Payment of Wages Act 1948, Employees Liability Act 1938, Workmen’s Compensation Act 1923, Employees State, Insurance Act 1948, Employees Provident Fund, Miscellaneous Provisions Act 1952, Industrial Disputes Act 1947, The Maternity Benefit Act 1961, The Contract Labour (Regulation and Abolition) Act 1970, The Factories Act 1948, and BOCW Act 1996, among others.
This year’s Human Rights Day theme relates to ‘Equality’ and Article 1 of the UDHR – “All human beings are born free and equal in dignity and rights”. This year, let us all pledge to bring more equitable and favorable working conditions to the workers that are helping build our nation. The bottom-up approach to economic growth and the sustenance of human rights will bring the true essence of development and success to the landscape of the Indian real estate sector.
Read more about Max Estates’ ESG policies and practices in our sustainability report.
