Lack of skilled workers hits realty sector in Kerala

KOCHI: Acute shortage of skilled labourers has been taking its toll on the realty sector in Kerala already hit by the sharp increase in the price of various raw materials. Builders are hence finding it difficulty to complete projects on time.
The shortage, caused by inadequate supply against demand of skilled labourers including masons and carpenters, has resulted in projects getting delayed, according to people in the construction industry.
“Migrant labourers being recruited from northern states like West Bengal, Bihar and Orissa are unskilled workers. Their productivity and skill level are much lower than those available locally, said A C Joseph, director, AC City Builders and Developers, a construction company based in Kochi.
In order to meet their requirements companies are now training migrant workers on skilled jobs, he added.
Construction companies have been incurring heavy financial losses on account of their projects being delayed, as price of raw materials, carrying costs and other costs keep increasing.
Ironically, as wages keep increasing, labour shortage becomes more acute as skilled workers who earn wages of up to Rs 750 a day, refuse to work throughout the week.
“Skilled labourers in the state are presently earning, on an average Rs 15,000 to Rs 25,000 a month. But there isn’t much change in their lifestyle. Since they can now earn what they were earning in a week earlier by working just two or three days, many are reluctant to toil throughout the week, said M V Antony, president, Kochi Chapter of Confederation of Real Estate Developers Associations of India.
The severe shortage in supply of skilled labourers has also contributed to an unhealthy competition among builders for securing the service of skilled workers employed by a rival firm by paying more. People in the realty sector cited this as one of the main reasons for daily remunerations of skilled workers going up unchecked.
Some of the builders said they were planning to take up the issue with the association and enter into an agreement among themselves on not poaching workers from rival companies.
However, M V Antony said that it might not be possible for builders to enter into such a no-poaching agreement as skilled labourers were not permanent employees of any company.