An Inspiring Cooperative Story Since 1925

Cooptalks | Inspiring Cooperative Story

An Inspiring Cooperative Story Since 1925

New Normal

COVID-19 accelerated three trends that could persist to varying degrees after the pandemic with different implications for work. “First, hybrid remote work could continue: 20 to 25 percent of workers in advanced economies and about 10 percent in emerging economies could work from home three to five days a week, mainly in the computer-based office work arena. That is four to five times the level before the pandemic and may reduce demand for mass transit, restaurants, and retail in urban centres. Second, the growth in share of e-commerce and the “delivery economy,” which was two to five times faster in 2020 than before the pandemic, is likely to continue. This trend is disrupting jobs in travel and leisure and hastening the decline of low-wage jobs in brick-and-mortar stores and restaurants, while increasing jobs in distribution centres and last-mile delivery. Finally, companies have enlisted automation and AI to cope with COVID-19 disruptions and may accelerate adoption in the years ahead, putting more robots in manufacturing plants and warehouses and adding self-service customer kiosks and service robots in customer interaction arenas. These trends will likely affect work arenas and countries in varying ways and raise new questions for cities.” (mgi-the future of work after covid-19-report).  Workforce transitions may be larger in scale than we estimated before the pandemic, and the share of employment in low-wage job categories may decline. 

 

By 2030, 75 million to 375 million workers (3 to 14 percent of the global workforce) will need to switch occupational categories. Moreover, all workers will need to adapt, as their occupations evolve alongside increasingly capable machines. Some of that adaptation will require higher educational attainment, or spending more time on activities that require social and emotional skills, creativity, high-level cognitive capabilities and other skills relatively hard to automate.

 

Automation technologies including artificial intelligence and robotics will generate significant benefits for users, businesses, and economies, lifting productivity and economic growth. Even as it causes declines in some occupations, automation will change many more—60 percent of occupations have at least 30 percent of constituent work activities that could be automated.

 

We need a futuristic vision to meet the global projection for this decade.  But the overall scenario of workers/labour cooperative in India is not up to the mark. Basically, they don’t have the passion to accelerate the growth of the cooperative by doing their core business or to try new opportunities. Most of them require professionalism in management and adoption of technology to meet the global/local competition.

 

Successful Model

ULCCS was formed in 1925 by the disciples of eminent social reformer Sri Guru Vagbhatananda in a remote hamlet called Uralungal near Vatakara in Kozhikode District of Kerala, as a novel mass movement against the anarchies of the caste system prevalent in those days. It has grown today as a name synonymous with quality, workmanship, precision and efficiency in infrastructure projects. In 1924 one of the newspapers published an article regarding a notification of Malabar District Board under British rule inviting people to form cooperatives in the Malabar region. This encouraged 14 young people to form an organasation which gives equity and equality among them. Acknowledged as the best Labour Co-operative Society in India by Indian Co-operative Congress 2013, National Co-operative Federation of India and National Co-operative Development Corporation, ULCCS has redefined the role the working class can play in national development, while emerging as a global model to the labour cooperative movement. ULCCS became a permanent member of International Co-operative Alliance (ICA) – a non-governmental co-operative federation of Co-operatives and co-operative movement world-wide. It is accredited by the Government of Kerala and is one of the largest Workers Cooperative societies and ranked world No.2 by the World Cooperative Monitor (WCM) in the sectoral rankings consecutive 3rd year under Industry and Utilities Co-operatives category. It is an ISO 9001, 14001 and 45001 certified organisation. 

 

2022-23

  

Turnover (work carried out)

2334 Cr

Members

3845

Gross Profit

382 Cr

Workers

11529

Net Profit

5.28 Cr

Staff/Employee

1764

Total assets

4978 Cr

Total

17138

ULCCS has become a much sought-after infrastructure partner for government and private clients because of its strict adherence to quality and timeliness. Very often, projects are completed ahead of schedule. ULCCS is blessed with a large pool of skilled and dedicated labour force. Workers and employees are extremely passionate about their work and create a unique work culture. In return, Workers and employees enjoy a variety of benefits that are comparable to a government job. Most importantly, ULCCS has a unique system of agile project management in which projects are reviewed closely by the management. Every evening, the Board of Directors meet to review the day’s progress and plan for the next day.

Motivation for Diversification

The primary objective of the Society has always been job creation. Until the 90’s, ULCCS employed many generations of workers in the construction sector. With the rising economic status of the members, it was observed that the new generation of youth were highly educated and had different aspirations. They were more interested in specialised jobs requiring higher education, rather than unskilled/semi-skilled work in the construction sector. At the national level, the IT and ITeS sectors were growing exponentially. Acknowledging this shift in the employment landscape, ULCCS took the bold decision of diversifying into IT and related sectors and set up the following subsidiaries:

UL Cyberpark, UL Technology Solutions , Sargaalaya Arts & Crafts Village , UL Education, UL Agriculture, UL Housing, Matter Material Testing and Research Laboratory, UL Disaster management and Rescue Operation, ULCCS Charitable and Welfare Foundation, UL Insight.

Projects

Major clients of the Society include National Highway Authority of India, Ministry of Road Transport and Highways- Govt. of India, Various departments Govt. of India and Kerala. ULCCS has completed over 8500 major projects and is currently implementing over 750 projects worth Rs 6500 crores.

 

Ongoing Projects

Sl.No.

Name of work

Amount (Rs.)           In crore

Awarded by

1

Six Laning of Thalapady to Chengala section of NH 17 (New NH-66) from Ch. 17+200(existing km 17+200) to Ch. 56+200 (existing Km 57+200) (Total length 39.00km) in the Stateof Kerala on Hybrid Annuity Mode under Bharatmala Pariyojna

1704.125

NHAI, New Delhi

2

Upgarding of Alappuzha Chanagnassery Road (State Highway 11 along with Muttar Bridge)

673.00

KSTP, Govt of Kerala

3

Rehabilitation and up gradation of Manathavadi to Periya (District) Road in Wayanad Dist. Under Rebuild Kerala initiative

102.00

Rebuild Kerala initiative, GOK

4

KIIFB – Reformation of Damaged Sunken Sea wall Using Tetrapods and rubble in between CP stone 976 and 1052 for 10 km stretches along Chellanam Coast in Ernakulam district- Phase I for a length of 7/350 Km between CP 986 and CP 1026.

256.89

Kerala Irrigation Infrastructure Development Corporation (KIIDC)

5

KIIFB 2017-18 Construction of Hill Highway from Kodanchery to Kakkadampoyil 34.30km in Kozhikode District

154.93

Kerala Road Fund Board (KRFB)

 

Labour Welfare

In addition to wages, the Society also undertakes specific measures to ensure the welfare of its members throughout their lifetime. It includes:

  • Provident Fund, Employee State Insurance. 
  • Bonus that is paid twice a year with a minimum amount of 20% of salary.  
  • Gratuity for all workers who completed10 years of service.
  • Insurance coverage for medical and accident.  
  • Interest free soft loans for marriage, medical, house construction etc. 
  • 100% reimbursement of treatment cost for the accidents at site and workers are provided with 50% wages till full recovery
  • Pension scheme for elderly members 
  • Dividend to members

 

Challenges faced

  • Faced cut-throat competition from private contractors and struggled even to pay wages to its employees. Sometimes it confronted serious financial issues to meet large projects. But members accepted the challenges and they offered the reduction of their wages and they also started to mobilise funds from their kith and kins for meeting expenses.
  • The economic reforms implemented in India in the early ninetie screated a crisis for the local bodies ,ULCC Stook the opportunity to move forward . ULCCS was accepted by the government and the general public like a situnder took the construction works of the local  government and completed it in a timely manner without compromising quality and standards and with zero corruption.
  • The compelled, sudden and unexpected shift to the digital money system after demonetizationin2016inIndia was a challenge. The conventional employees were not used to this .ULCCS helped their laborers to open bank accountsandmadethingspossible and easy for all theemployees,evenduringthose strenuous times.

 

  • ULCCS accepted the changes happening inthe family system in Kerala. The joint family system collapsed and the nuclear family system emerged. So, the demand for white collar jobs increased. Our focus is to create new jobs in different areas. We partnered with govt for converting waste and abandoned mines to Tourism-arts- craft activities

 

ULCCShas also formed consortiums with other cooperatives to get finance for their construction projects. The construction of Kozhikode City Road, a PPP model project, was also a big challenge for them. It was anAnnuity Model Road development with a timeframe of two years for construction and 15 years of maintenance. The cost of the project will be paid in instalments every six months within 15 years. The Society had to find the project cost on its own. That is how the idea of a consortium cooperatives emerged. A consortium of 31 primary cooperatives from Kozhikode district was formed to mobilize 240 crores. This matches with ILO Recommendation 193 which says cooperatives should cooperate internationally.

 

Conclusion

ULCCS is a unique organisation that has carved a niche for itself through many decades of exemplary commitment to quality and integrity. It is a shining example of how teamwork, dedication and discipline helped a rural co-operative society overcome all challenges and grow into a huge, diversified organisation that has acquired international fame. Even though the workers of the Society hail from rural areas, they use modern state-of-the-art technology in their activities. In a sense, ULCCS is a successful example of how technology adoption at grass root levels can make phenomenal changes in the lives of the people in rural India.

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