One hundred years ago, in the quiet village of Uralungal in Kerala’s Malabar region, a group of 14 young workers, ostracised by an oppressive caste hierarchy, laid the foundation for what would become one of the world’s largest workers’ cooperatives. Today, the Uralungal Labour Contract Cooperative Society (ULCCS) has grown into a major player in Kerala’s construction industry, providing thousands of jobs and expanding into sectors beyond its original scope. But its journey has not been without challenges — both in its early years and now, as it navigates a rapidly changing economic landscape.
A cooperative born out of necessity
At the turn of the 20th century, caste dictated access to land and economic opportunity in Malabar. The Thiyyas (Other Backward Classes) made up nearly 90% of the region’s population around that time, but owned only less than 10% of the land. With most resources concentrated in the hands of the dominant castes, marginalised workers had few avenues for financial independence.
That was when social reformer Guru Vagbhatanandan encouraged some of the youth of Uralungal to break free from this system through self-reliance. In 1923, they formed the Uralungal Ikkya Nanaya Sangham (United Credit Cooperative Society) to provide financial support to workers who faced economic discrimination. Two years later, on February 13, 1925, they registered the Uralungal Labourers’ Mutual Aid and Cooperative Society, which later became ULCCS.
The early years were marked by financial struggles. To sustain themselves, workers pooled resources through community-driven methods like panampayattu (a money-pooling system) and kurikalyanam (wedding notice collections). These informal financing strategies helped the cooperative take on its first projects.
Breaking into the industry
ULCCS began with small-scale jobs like agricultural bund repairs and pathway construction. But Kerala’s Public Works Department, dominated by entrenched contractors, was not easy to penetrate. Over time, the cooperative gained recognition for its reliability and efficiency, allowing it to secure larger infrastructure projects.
Today, ULCCS is one of Kerala’s largest employers, with more than 18,000 direct employees. It is also a key contractor for major public infrastructure projects, including a Rs 1,700 crore highway under the Bharatmala initiative. Its reputation for timely project completion has made it a preferred contractor for government infrastructure initiatives.
For those who have been part of the cooperative, the impact has been deeply personal. Shaju S, managing director of ULCCS, who joined the cooperative as a clerk in 1997, tells TNM that the organisation transformed his family’s life.
"My father was a road construction worker with ULCCS for over 50 years. I have seen firsthand how ULCCS has changed the lives of ordinary workers. Earlier, a labourer’s child would inevitably become a laborer. But ULCCS ensured that families supported each other, provided education, and helped their children become doctors and engineers. As ULCCS grew, the quality of life of its members also improved
A model of cooperative governance
Unlike private companies, where decision-making is centralised, ULCCS operates through a participatory model. Workers elect the board of directors, and managerial roles are assigned based on skill rather than seniority. A daily review system ensures transparency — at the end of each workday, site leaders report progress to the cooperative’s central office, allowing for close monitoring of projects.
"The board members are workers, elected by the workers themselves," explains Shaju. "This gives every member a sense of ownership. It is not just a job, it is a shared responsibility. Everyone feels like they are part of a large family."
Many, like Manash, a longtime ULCCS worker, have risen through the ranks. "I have been working at ULCCS for 30 years. I started as a road worker and eventually became a director. Here, hard work and dedication are recognised. It's not about where you start; it's about how committed you are,” he tells TNM.
ULCCS members assert that this cooperative approach has been key to the society’s ability to scale up without compromising on efficiency.
Adapting to technological changes
As construction technology advanced, ULCCS has had to balance modernisation with job security. Shaju states, “Even in road and building projects, we use the latest technology.” The introduction of heavy machinery reduced the need for manual labour, but instead of downsizing, the cooperative expanded its project base to retain its workforce.
ULCCS also recognised the need to diversify beyond construction. In 2008, the cooperative identified a pressing issue in Kerala’s economy — high unemployment among educated youth.
"We found that there were plenty of highly qualified but unemployed youth in Kerala. To provide employment, we decided to venture into IT by setting up a cyberpark," says Shaju.
Cyberpark: A bold leap into IT
The UL Cyberpark in Kozhikode, launched in 2013, was a significant departure from ULCCS’s traditional construction projects. The decision was, therefore, met with scepticism.
"When we decided to build the cyberpark, many mocked us, saying, ‘Why are road workers trying to build a tech hub?’ But we took it as a challenge. Today, more than 3,000 people work in the UL Cyberpark, which hosts 41 IT companies and had software exports worth Rs 164 crore in the first three quarters of this financial year,” explains Shaju
The cyberpark has since become the first information technology park in the Malabar region, proving that cooperative societies can succeed beyond their original sectors.
Migrant workers and social commitments
ULCCS has increasingly relied on migrant labour in recent years, reflecting broader trends in Kerala’s economy. However, unlike many contractors who treat migrant labourers as a transient workforce, ULCCS has taken steps to integrate them into its cooperative model.
The society encourages migrant workers to become members and organises cultural programmes to foster a sense of inclusion. It has also set up night schools at worksites to improve literacy among them.
Beyond its workforce policies, ULCCS has been involved in disaster relief and social welfare programmes. It provided aid during the floods, cyclone Ockhi, and the COVID-19 pandemic, supporting both local and migrant workers with wages, food, and medical assistance.
Controversies, challenges, and the road ahead
While ULCCS has built a reputation for financial stability and reliability, it has not been immune to economic pressures. The cooperative has faced competition from corporate construction firms, shifting labour trends, and evolving government policies.
The society faces a major challenge in securing funding. "For any business, working capital is crucial. Being a cooperative, we have had to find innovative ways to generate our own funds," Shaju admits.
Along with its achievements, the ULCCS has also had to face their share of controversies.
In January 2020, concerns were raised that the Kerala government would grant ULCCS access to the Crime and Criminal Tracking Network and Systems (CCTNS) data as part of a project to develop a blockchain-based passport verification application. Critics argued that sharing sensitive police data with a cooperative could compromise security. In response, the government clarified that ULCCS was only tasked with developing the software and would not have access to the actual data.
Despite these challenges, Shaju says that ULCCS remains committed to adapting to changing times. He says, "Our focus is always on evolving and improving.”