Construction Planning & Management (AE-309)

Lecture 8:

Labor in Construction Industry

Projects seldom fail because of

tools. They fail because of people!
The construction industry is one of the largest industries in Pakistan. The construction
industry in Pakistan has played an important role in providing jobs and revival of
economy. In Pakistan total labour force is 49.18 million and in construction industry
labour force is 2.5 million (7%).
The construction industry provides jobs to about 7 percent of the total employed labour
force or to 2.5 million persons.
Country Profiles:
Pakistan
167,762,040
1.05 male(s)/female (2008 est.)

USA
303,824,646
:0.97 male(s)/female (2008 est.)

Labor force

49.18 million
Agriculture: 42%
industry: 20%
services: 38% (2004 est.)

Unemployment rate

7.5% plus substantial

underemployment (2007 est.)
24% (FY05/06 est.)

153.1 million (includes unemployed) (2007

est.)
farming, forestry, and fishing 0.6%,
manufacturing, extraction, transportation, and
crafts 22.6%, managerial, professional, and
technical 35.5%, sales and office 24.8%, other
services 16.5%
4.6% (2007 est.)

Total population

Population below
poverty line:
Budget

12% (2004 est.)

Revenues: $21.95 billion

Expenditures: $27.62 billion (2007
est.)
5.24 million (2006)

Revenues: $2.568 trillion

Expenditures: $2.73 trillion (2007 est.)

88.02 million (2008)

255 million (2007)

12 million (2006)
146 (2007)
Total: 8,163 km

223 million (2008)

14,947 (2007)
Total: 226,612 km

Roadways

Total: 259,758 km
paved: 162,879 km (includes 711 km
of expressways)
unpaved: 96,879 km (2005

HIV/AIDS - people
living with HIV/AIDS:
HIV/AIDS - deaths:
Literacy

74,000 (2001 est.)

Total: 6,430,366 km
paved: 4,165,110 km (includes 75,009 km of
expressways)
unpaved: 2,265,256 km (2005)
950,000 (2003 est.)

4,900 (2003 est.)

Total population: 49.9%

17,011 (2005 est.)

Total population: 99%

Telephones - main
lines in use:
Telephones - mobile
cellular:
Internet users:
Airports:
Railways:

172 million (2006)

___________________________________________________________________________________________________________
Engr. Syed Shahid Ali Bukhari ( HOD )
B&AED, UCE&T, B. Z. University, Multan.

Construction Planning & Management (AE-309)

Ethnic groups:

Religions

Languages

male: 63%
female: 36% (2005 est.)
Punjabi 44.1%, Pashtun (Pathan)
15.4%, Sindhi 14.1%, Sariaki 10.5%,
Urdu 7.6%, Balochi 3.6%, other 4.7%
(1998 census)
Muslim 97% (Sunni 77%, Shi'a 20%),
other (includes Christian and Hindu)
3%

Punjabi 48%, Sindhi 12%, Siraiki (a

Punjabi variant) 10%, Pashtu 8%,
Urdu (official) 8%, Balochi 3%,
Hindko 2%, Brahui 1%, English
(official; lingua franca of Pakistani
elite and most government ministries),
Burushaski and other 8%

male: 99%
female: 99% (2003 est.)
white 79.96%, black 12.85%, Asian 4.43%,
Amerindian and Alaska native 0.97%, native
Hawaiian and other Pacific islander 0.18%, two
or more races 1.61% (July 2007 estimate)
Protestant 51.3%, Roman Catholic 23.9%,
Mormon 1.7%, other Christian 1.6%, Jewish
1.7%, Buddhist 0.7%, Muslim 0.6%, other or
unspecified 2.5%, unaffiliated 12.1%, none 4%
(2007 est.)
English 82.1%, Spanish 10.7%, other IndoEuropean 3.8%, Asian and Pacific island 2.7%,
other 0.7% (2000 census)
note: Hawaiian is an official language in the
state of Hawaii

The Construction Worker

All construction projects are of limited duration. Workers in the construction industry are hired as
and when required and are retrenched on completion of the work. When a job is completed, the field
crews move on to another project. Due to the temporary nature of their job, workers remain idle till
they find work at new construction sites. The average construction worker has no fixed relationship
with any one contractor, and his tenure of employment with a given employer is normally indefinite
and temporal. He is tightly bound to his occupation and is only loosely associated with any given
Construction Company.
The construction projects of a typical construction company are relatively short-term, variable as to
location, and demanding of different combinations of trade skills. All contractors experience
fluctuating requirements for manpower as new jobs are started and existing projects are completed.
Although the popular conception of a construction worker is that of a "migratory bird the
geographical mobility of such people is variable with the craft and the individual circumstances of
employment. Crews on large industrial construction projects and on highways, pipelines, bridges,
transmission lines, tunnels, and other engineering construction are necessarily mobile. Millwrights,
boilermakers, pipe fitters, pile drivers, and structural iron workers etc often follow their specialties
over wide geographical areas, moving from project to project.
A number of considerations, such as home ownership, family ties, schools, pensions, and other factors,
make many construction workers reluctant to move their places of residence. For this reason, among
others, there is a certain amount of movement into and out of the construction industry itself. Many
tradesmen find jobs elsewhere in the economy when local job opportunities in construction for their
particular craft skills are limited.
The economic condition of construction labour is the worst in our country on account of their poor
bargaining power due to lack of unions, illiteracy and the temporary nature of their employment.
Basic amenities like shelter, drinking water, sanitary conveniences etc. are not adequately provided
to them at small construction sites. Nobody cares for the education of their children. Construction
labour is the most disorganized sector in our country and they do not enjoy the facilities which
their counterparts in other industries and organized sectors enjoy. Construction workers have no job
security and are least trained.
___________________________________________________________________________________________________________
Engr. Syed Shahid Ali Bukhari ( HOD )
B&AED, UCE&T, B. Z. University, Multan.

Construction Planning & Management (AE-309)

In many developed countries, there are training institutions to train workers for particular trades
such as mechanics, wiremen, blacksmiths, operators, electricians etc. Although industrial training
institutes have been established in our country, their contribution towards training of construction
labour is not enough.
Standard Terms for Construction Workers
In the construction industry, more or less standard terms are applied to construction workers and are
used to designate the skill level of the individual worker.
Journeyman
The term journeyman (sometimes craftsman) is used to designate a skilled worker who is fully
qualified in a given craft or trade.
Apprentice
An apprentice is a person who is enrolled in a craft apprenticeship program.
Helper, trainee, pre-apprentice, & sub-journeyman
Helper, trainee, pre-apprentice, and sub-journeyman all refer to unskilled and semiskilled craft
workers who are below the level of journeyman and are not laborers or apprentices.
Craft workers
Craft workers can be grouped in 4 general classifications based upon skill complexity and craft
similarities
1. Civil/Structural: carpenter, ironworker, concrete finisher, structural steel erection
2. General support: laborer, equipment operator, truck driver, a crane operator, painter
3. Mechanical: insulation worker, millwright, pipe worker, welder
4. Electrical: electrician
Wages of Construction Workers
Construction workers are paid very low wages. The net worth of wages is considerably reduced due
to periods of unemployment. There are two methods of making wage payments to labour:
a) Time rate system
b) Piece rate system
a) Time Rate System
In this system, a suitable rate of payment is fixed per unit of time that labour is engaged on the
work. The unit of time may be hour, day, week, fortnight or month. In Pakistan, the rate of
payment for casual labour is determined per day and that of regular employees per month.

___________________________________________________________________________________________________________
Engr. Syed Shahid Ali Bukhari ( HOD )
B&AED, UCE&T, B. Z. University, Multan.

Construction Planning & Management (AE-309)

b) Piece Rate System

In this system, payment is based on output or production of workers. Payment is made at the
agreed rate for the actual quantum of work done by each laborer. In this system, a good worker can
make more money by increasing his output.
Background of Labor

Understand who labor is and what their role is

Labor represents between 10-50% of the total project cost depending upon the project size
and type of construction.
Give me a disgruntled
Labor is the oil in the engine
(displeased) worker/employee
They are the fabric of our society
and Ill create a union
The craft worker today wants to work - they take pride in their work

We must value labor because labor actually builds the facility

Management-Labor Relationship - A Balanced Approach

Labor management is key to project success

Health and safety issues are everyones responsibility - owner, designer, constructor,
subcontractor, and each individual laborer

Accept Labor for Who They Are

They are individuals, many with families and responsibilities, like yours. We both, labor
and management, have a role to play

Look out for their interest

Many of these people are formally well educated, others with no formal education, but have
competent skills in building

Keep your eyes and ears open because accepting them and knowing something about them
enables you to build a relationship

Respect Them

Earned trust creates respect which enables communication

You must earn labors respect

Treat people the way you would like to be treated

Conclusion
Think win-win

___________________________________________________________________________________________________________
Engr. Syed Shahid Ali Bukhari ( HOD )
B&AED, UCE&T, B. Z. University, Multan.