Over 100 years, how ULCCS moved from a small labour co-op to a thriving enterprise

When Manash R from Cherandathur in Kozhikode district joined the Uralungal Labour Contract Cooperative Society about 30 years ago, he was just about 20 years old and had only completed his pre-degree education. Pressured by difficult family circumstances, he had to find work early, and it was the road construction workers near his home who introduced him to the idea of joining the society. Starting as a young manual road labourer in the society, Manash now enjoys an A class membership.

“It’s the society that completely changed my life. When I joined, I was simply looking for a job and a way to survive. But ULCCS gave me more than that—it gave me a sense of purpose and a deep sense of belonging to the working class. Here, we’re not just workers; we’re a family that stands for each other,” Manash, who is leading the team building, a stretch of the Hill Highway project, told The Federal.

PK Shinoj, 45, a supervisor with ULCCS, has a similar story to share. “I joined the society in the late 1990s soon after completing my pre-degree. I started out doing road concreting work, and over the years, I’ve grown into a supervisory role. What sets ULCCS apart is the strong sense of togetherness—we work as a collective, not as isolated individuals. That makes all the difference. We also earn better wages compared to many outside jobs, and the society ensures we receive several additional benefits. It's not just employment; it's dignity and solidarity,” says Shinoj.

The Perumbalam Bridge constructed by Uralungal Labour Contract Co-operative Society.

This is no ordinary construction crew. This is the Uralungal Labour Contract Cooperative Society (ULCCS), a workers’ cooperative that has not only reshaped Kerala’s infrastructure but also redefined what a labour-driven enterprise can achieve. In 2023, the Supreme Court of India took note of ULCCS’s impeccable track record, staying a contract dispute over a Kannur courthouse project while acknowledging the cooperative’s unique position in Kerala’s development landscape.

The long hard journey

Yet, beyond the accolades lies a story of struggle, solidarity, and scrutiny—a century-long journey rooted in rebellion and resilience.

“Most of the best public infrastructure in Kerala has been our construction. While this visible contribution is significant, we consider something else even more important. The first is that we have demonstrated — and convinced society — that public work can be carried out without corruption, with quality, and on time. What this truly reveals is not the social conscience of the employer, but that of the worker,” says Rameshan Paleri, the president of the society.

In 1925, in the village of Uralungal near Vadakara Kozhikode district, a group of 14 young workers, ostracized by a rigid caste system, gathered under the guidance of social reformer Guru Vagbhatananda. The early 20th century was a time when superstition and caste oppression suffocated Kerala’s lower classes, particularly the Ezhava community. Jobs were scarce, and social bans denied them access to agricultural work or education. Inspired by Vagbhatananda’s vision of self-reliance and equality, these workers formed the Uralungal Aikkya Nanaya Sangham (United Credit Cooperative Society) in 1922, offering loans to those excluded from traditional livelihoods. Two years later, on February 13, 1925, they registered the Uralungal Labourers’ Mutual Aid and Cooperative Society, later renamed ULCCS, with a modest capital of 37 paise.

The cooperative’s early days were marked by small but meaningful projects—rebuilding farmland bunds destroyed in the 1924 Malabar floods, constructing pathways linking remote villages to the Madras Province. These tasks were not just about labour but about dignity, providing work to those shunned by the upper castes.

As T.K. Soman, who has chronicled the history of ULCCS by meticulously examining its meeting minutes over the years, notes the cooperative’s first loan of ₹10 went to Muthirayil Chammanan, a weaver, symbolising its commitment to uplifting the marginalised.

Unlike traditional businesses driven by profit, ULCCS was founded on the principle of labour with dignity. Vagbhatananda’s dictum — “not for profit, but for the people”— became the cooperative’s cornerstone. Its structure was democratic: only workers could be members, and decisions were made collectively. When financial crunches hit, workers pooled resources through innovative methods like panampayattu or even pledged their land deeds to secure loans. (Panampayattu, or Kurikalyanam, is a traditional interest-free community money pooling system rooted in social trust and cooperation. Common in the Malabar region, it functioned as a mutual help network to meet urgent financial needs and has been a vital part of community life for centuries, with pooled capital serving as a key source of funds based on collective values.)

This collective spirit allowed ULCCS to compete with established contractors, earning the trust of Kerala’s Public Works Department by the mid-20th century. It was in the late 1990s, during the LDF government’s flagship initiative — the People’s Plan Movement — that ULCCS rose to statewide prominence. As local self-governments across Kerala sought reliable builders and contractors to implement decentralised development plans, ULCCS emerged as a perfect fit and seized the opportunity wholeheartedly.

The society quickly earned a reputation for completing projects on time and within the estimated budget. In fact, there were instances where they even refunded the surplus amount when the work was completed for less than the sanctioned estimate.

Infrastructure powerhouse

Over the decades, ULCCS grew from a village collective to a powerhouse in infrastructure development. By 2025, it had completed over 7,500 projects, including iconic works like the Kozhikode Sarovaram Project, the Arayidathupalam Bridge, and the Sargaalaya Arts and Crafts Village. With an annual turnover exceeding ₹2,000 crore and a workforce of 18,000, ULCCS is now the second-largest workers’ cooperative globally and Asia’s largest. Its ability to complete projects on time, often returning excess funds earned it a reputation for reliability and integrity.

The cooperative’s labour-friendly ethos remains its hallmark. Workers earn wages that are 40% higher than industry standards, with equal pay for men and women.

Ensuring dignity

“Ensuring workers receive fair wages, substantial benefits, and a life of dignity — and continually improving these — is another model we proudly present to Kerala and to India. In addition, they are entitled to EPF, gratuity, pension, a high bonus, multiple forms of insurance including comprehensive health coverage for the entire family, housing schemes, educational incentives, scholarships, and various other welfare benefits” says president Rameshan Paleri.

“Everyone starts out as a non-member and is inducted as a member based on their performance. Initially, they are given Class C membership, which doesn’t carry voting rights. Over time, they are gradually promoted to higher classes. The society also offer provident fund benefits, welfare schemes, and a health insurance package,” says Manash R.

ULCCS provides welfare schemes, skill development programmes, and even supports neurodivergent communities through its charitable foundation. Its diversification into IT (UL Cyberpark), education, and agriculture reflects a commitment to adapting to modern needs while ensuring job security for its members.

The cooperative’s defenders, including former Finance Minister T.M. Thomas Isaac, highlight its transparent governance and worker-driven model as evidence of its integrity.

“The diversification of ULCCS involves the transition of the society from a contractor to a developer that provides not only constructed spaces but also related services as a package to clients, along with expansion into other sectors such as IT, tourism, farming, and skill development,” writes Thomas Isaac in his co-authored book Building Alternatives with Michelle Williams.

“Another of our contributions has been creating a successful model for the idea of a workers' cooperative. From the very beginning, we set a rule that only workers could become members, which in turn ensured that only workers could be part of the governing body. That uniqueness is what helped us develop the best model for worker welfare in the country. It is this very principle that has always inspired us to dedicate a portion of our surplus for the development and well-being of our community. We had already walked this path long before concepts like today’s CSR ever came into being,” adds Paleri.

Controversies on the way

Despite its labour-centric ethos, ULCCS’s growth has not been without controversy, particularly in recent years as it has been perceived as aligning with Kerala’s ruling CPI(M). The cooperative’s close ties with the Left Democratic Front government, led by Chief Minister Pinarayi Vijayan, have drawn scrutiny. Critics, including Congress leader Ramesh Chennithala alleges that ULCCS has been favoured with contracts worth crores without competitive tendering, flouting norms. The most significant controversy arose in 2023, when the Kerala government filed an affidavit in the Supreme Court, claiming an 82% stake in ULCCS to justify awarding it a ₹7.1 crore Kannur courthouse contract over a lower bid by Nirman Constructions.

“Some media reports incorrectly portrayed the Kerala government's affidavit to the Supreme Court — stating that it holds 82% of ULCCS’s shares — as irregular. In reality, under cooperative law, the government is permitted to hold shares in cooperatives, including ULCCS. Moreover, when the National Cooperative Development Corporation (NCDC) provides project-based financial assistance through the state, 40% of that assistance is temporarily treated as government shareholding. As ULCCS members are workers with small individual shares, this can make the government’s share appear high. These shares lapse once loans are repaid. Hence, there is nothing illegal or unusual here,” said the president of the society.

Thalappady Chengala Reach of Bharat Mala Project of NHAI- 2.

The society insists that while individual members may have political affiliations, the cooperative itself remains neutral. They point to ULCCS’s history of working under governments of all stripes, including the Congress-led United Democratic Front, which designated it an “accredited agency” for direct contracts.

Many of the workers echoed this sentiment, pointing out that despite their differing political beliefs, such differences are kept outside the functioning of the society.

Aneesh Parampath, a 49-year-old ULCC worker and A-class member who joined the society nearly 30 years ago after finishing high school, is a Congress supporter. He says he has never seen politics influencing the functioning of the society.

“We’re like a family here, and anyone who genuinely wants to work well is happy. We’re treated with respect, and it’s usually only those who don’t value a positive work culture who face issues. People here come from different political backgrounds — for instance, I’m not a Communist — but we leave our politics outside the society. The accusations of party politics are just baseless allegations, and we don’t pay any heed to them.”

At the same time, Manash and Shinoj are CPI(M) supporters. Both were party members, though Shinoj chose not to renew his membership this year due to lack of time for party activities. Manash, however, continues to be an active card-holding member.

“Yes, I’m a CPI(M) member, but within the society, we have members from all political backgrounds — Congress, BJP, IUML, you name it. But here, we function as members of the society, and our party affiliations have no role in how things are run,” said Manash.

Building trust

ULCCS’s global recognition underscores its uniqueness. The International Cooperative Alliance ranks it second worldwide, and the United Nations has lauded it as a sustainable rural development model. Its diversification into UL Cyberpark, the first IT park by a labour cooperative, and initiatives like rainwater harvesting and waste-to-energy projects demonstrate its adaptability.

As ULCCS celebrates its centenary in 2025, it stands at a crossroads. Plans to establish institutions like cooperative university signal its ambition to shape the future, but the cooperative must navigate a complex landscape of political accusations and economic challenges. Its ability to balance modernization with its founding principles—equity, dignity, and collective effort—will determine whether it remains a beacon of cooperative success or succumbs to the weight of controversy.

“This people's movement is holding its ground against powerful corporate giants and continues to thrive. Naturally, this success unsettles many influential figures. There are forces backing these corporations — combining wealth and influence — that often try to crush such grassroots efforts. But don’t let it wear you down, even mentally,” CM Pinarayi Vijayan had said while inaugurating the centenary celebrations a couple of months ago.

From a small group of ostracized workers to a global exemplar, ULCCS’s journey is a testament to the power of collective action. Inspired by Vagbhatananda’s vision, it has defied caste, class, and economic barriers to become a cornerstone of Kerala’s development. Yet, its perceived alignment with the CPI(M) and recent legal battles remind us that even the most principled institutions are not immune to scrutiny.

As 85-year-old Kumaran, a retired ULCCS mason, reflects at the cooperative’s senior citizens’ day care centre, “We built roads, bridges, and a future for our children. But we also built trust—trust that must never break.” Whether ULCCS can preserve that trust while scaling new heights will define its legacy in the century to come.