100 years of Uralungal Society: A journey that redefined Kerala's infrastructure vision

In 1917, a group of young men from Uralungal, a village in North Malabar, Kerala, travelled to Mahe to hear a speech by social reformer Vagbhatananda. Moved by his words, they invited him to their hamlet. Inspired by his teachings on self-reliance and social equality, these youth challenged the entrenched caste hierarchy and, in 1924, formed a labour contract cooperative to provide employment through local construction work. The following year, they registered it as the Uralungal Labourers’ Mutual Aid and Co-operative Society—now known as the Uralungal Labour Contract Cooperative Society (ULCCS).

As ULCCS marks its centenary, it stands as the world’s second-largest workers’ cooperative in the segment of Industry and Utilities co-operatives. It is also among the biggest job providers in Kerala. In an interview with THE WEEK, ULCCS chairman Rameshan Paleri discusses the forward-looking vision of this century-old institution that has become a symbol of national pride.

Excerpts from the interview:

Q: Reflecting on ULCCS’s 100-year journey since its founding in 1925, what were the most defining moments or projects that shaped its identity as a worker-owned cooperative, and how have these milestones influenced its ethos of equity and community upliftment?

A: The most defining moment was the envisioning of the group as a worker-owned cooperative (society) and the stipulation that ‘only workers can be members and office bearers’ to ensure that. This was due to its unique beginning. A few youths who were working against untouchability, falling moral values and prevailing superstitions in the society, had invited Vagbhatananda Gurudevan, who was the driving force in the Kerala Renaissance, to form a spiritual and renaissance organisation called ‘Atma Vidya Sangham’. The organisation, then started conducting extensive activities.

This didn’t go well with the aristocrats at the time, who denied basic necessities such as employment, education, and loans. To overcome this, a cooperative society called ‘Aikyananaya Sangham’ for providing loan, ‘Atma Vidya Sangham LP School’ for education, and the Uralungal Labour Contract Cooperative Society, now called Uralungal Labour Contract Cooperative Society, to create employment, were set up.

The provision that only workers can be office bearers prevents outsiders from becoming top office bearers. Gurudevan’s teachings had the greatest influence on the society. His emphasis on sincerity being as essential as physical materials in construction shaped the workers’ mindset and led to society’s uncompromising dedication to quality.

Another major milestone in the society’s growth was its decision to embrace modernisation. By learning new skills, adopting technology, and training workers, the society expanded its projects and created more jobs. Using technology and machinery to create more jobs, but not to replace labour, the society had set an inspiring example for the world.

To support its growing work, the society began producing its own construction materials, boosting assets and creating jobs. This also enabled faster, cost-effective project completion—often finishing ahead of deadlines and even returning unused funds to the government.

A recent major milestone was the decision to diversify. As the children of society workers began getting modern education, the society shifted towards diversification to create jobs that matched their aspirations. This was also motivated by our desire to offer employment opportunities to locals with technical and higher education. This led to the setting up of UL Cyberpark in Kozhikode — the first IT park in the world owned by workers. While this couldn't meet the growing demand for jobs, the society launched its own IT firm - UL Technology Solutions.

Different ventures launched overtime

We also diversified into several ventures like 'UL Spaces', a property development initiative; 'Kerala Arts and Crafts Village, Kovalam'; a responsible tourism initiative; 'Matterlab', a modern material testing lab; ‘UL Insight, a project management consultancy firm; ‘USphere, an initiative for futuristic and sustainable constructions; ‘UL Research’ for research and ULCCS Foundation for welfare initiatives. In addition, it has taken over and run the Kerala Government's construction skills training institute, 'Indian Institute of Infrastructure and Construction, Chavara, Kollam', and the responsible tourism initiative, 'Sargalaya Arts and Crafts Village, Iringal, Kozhikode'.

As part of its centenary celebrations, the society has begun exploring into the field of sustainable, green, resilient, and modern construction technologies—what is likely to become its next major turning point. At the same time, several proposals and ideas are now before the society, including the establishment of a Skill University in the cooperative sector.

Q: ULCCS has grown from small road contracts to executing major infrastructure projects across Kerala. What ambitious plans does the cooperative have for the next decade to expand its impact, particularly in emerging sectors like technology, sustainable development, or social innovation?

A: Our organisation has been quick to adopt new technologies and methods. Leading up to our centenary celebrations, we initiated a series of technology talk sessions called TechTalk. These sessions cover a broad range of topics, including climate change, natural resource limitations and exploitation, sustainability, resilience, new technologies and building materials, and the potential of collaboration in the construction sector as part of Industry 5.0. We also explored disruptive technologies, platform cooperatives, best international cooperative models, and collaborations with leading global cooperative organisations. Based on all these efforts, we are now planning the future course of action for the next 25 years.

Another major change of course is the decision we have taken to expand our field of operations outside Kerala. In recognition of the excellence shown by our society in the construction of national highways, this year's 'National Highways Excellence Award 2023' was presented to the Uralungal Society. It was presented by Union Minister Nitin Gadkari in Delhi. It will be an impetus for our expansion on this route. Kerala Cooperative Minister V. N. Vasavan described this achievement as a matter of pride for Kerala, the cooperative sector and the workers.

There is a growing interest in focusing more on residential and commercial constructions rather than roads and bridges. It is with this intent that a new subsidiary named ‘U-SPHERE’ was launched this year. This entity will undertake futuristic, modern, and eco-friendly constructions. U-SPHERE’s operations will span across the country.

UL Cyberpark has successfully leased out all its available spaces, and the society is now gearing up to start the construction of its second phase.

Q: The vision of "Nava Kerala" emphasises inclusive and sustainable development. How does ULCCS align its operations and initiatives with this vision to contribute to a modern, equitable Kerala and India?

A: ULCCS has already fulfilled 13 out of 17 UN Sustainable Development Goals for 2030 and is moving ahead. This definitely is a contribution to the ‘Navakeralam Karma Padhathi’. Talking about resilience, we have created our own model and we were invited to present our experience in national and international conferences.

ULCCS explores sustainable construction technologies and materials. We conducted an international conclave on sustainable construction as part of our centenary celebrations. We have started a TechTalk series on the very same topic with the participation of international experts.

To meet the needs of Navakerakam, we have launched a new subsidiary, U-SPHERE, exclusively for sustainable and futuristic construction solutions. ULCCS is also constructing aesthetic marvels for Kerala such as the Valiyazheekkal Bridge, Alappuzha Changanassery road, Perumpalam Bridge and several buildings.

Efforts are being made to uplift underprivileged yet capable youth in Kerala by training them as skilled technicians, and helping them transition from blue-collar to white-collar employees for the construction sector. The minimum daily wage we provide, including daily allowances, is ₹2,385. For a skilled lead mason, it’s ₹2,600 per day. We offer the highest wages in India to construction labourers and technicians.

Q: As a global model for cooperative success, what strategies will ULCCS employ to maintain its worker-centric model while scaling operations and competing in a capitalist-driven market?

A: The focus of growth will be on workers, with plans and ideas aimed at opposing exploitation, wage cuts, and unemployment, apart from providing an alternative to the capitalist-driven market model.

Our main areas of focus include construction, collaboration, and skill development, and we are also committed to the modernisation of agriculture, increasing productivity, exploring the potential of production industries within the cooperative sector, and providing financial resources to cooperative enterprises willing to work in other sectors through a consortium model.

We aim to encourage and support the development of ideas in many areas, enabling international cooperation. As part of our centennial celebrations, the key events we organised, such as the 'International Conclave on Sustainable Construction', the International Cooperative Summit, and the ICER Research Conference, were all aimed at shaping the future of Kerala. Our goal is to grow with the nation and guide it forward.

If a model that solves current problems is developed and demonstrated within the cooperative sector, it would indeed be an alternative to today’s capitalist development. The title of the book written by Dr Thomas Isaac and Michel Williams about our society is "Building Alternatives."

Q: Looking forward, how does ULCCS plan to inspire and empower the next generation of workers and leaders in Kerala to carry forward its century-long legacy, and what role do you envision for the cooperative in shaping Kerala’s socio-economic future?

A: Our cooperative sector is primarily focused on credit cooperatives. However, some of the best cooperative models in the world are in sectors such as production and services. A look at the operations of Spain's Mondragon Corporation, the world's largest cooperative, is enough to understand this. Mondragon provides parts for every 10th car in the world; its spare parts are found in over 10 million household appliances globally. Some companies within Mondragon are world leaders in their fields. About 90% of the world's aircraft and 60% of trains use its software. In a state like Kerala, which has skilled and well-educated individuals, can we not achieve something similar?

By utilising modern technologies such as BT, genetic engineering, tissue culture, vertical farming, precision farming, and hydroponic farming, can’t we increase production capacity and develop value-added products from agricultural produce, thereby showcasing wonders for Kerala? Can’t the cooperative sector excel in service areas such as healthcare, education, and skill development? Even now, there are a few such initiatives, though limited in number.

If the ‘Nava Kerala’ we create prioritises cooperative ventures in all sectors, it will ensure the best wages, benefits, and welfare in those fields. In that case, the development of the nation will be synonymous with the development of its people. Our alternative to avoid the accumulation of wealth in the hands of a few and the increasing gap between the rich and the poor is the development of the cooperative sector in all possible areas.

When such growth occurs in Kerala, undoubtedly, ULCCS will play its part in it. By providing guidance, offering cooperative assistance, and ensuring international cooperation and access to technology, we can support this growth. If Kerala were to be transformed into a model cooperative economy, the impact it would have on the lives of the people, including workers, would be significant.

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