Employees Housing in Khulna City

ABSTRACT

Employees housing is a major subsystem of housing sector in city scale. In Dhaka, extreme shortage of housing is followed by shortage of land, whereas in Khulna city the situation is not so critical due to the low demand and value of land. Being an administrative head quarter and industrial city Khulna city has potential demand for employees housing to accommodate the employees. In Khulna city employees housing occupies only 1.92% of total housing stock whereas the total employees both in public and private sector are 14.0%. Regarding the aspect, capital is being invested in employees housing sub-sector so there is the urge to create the effective demand of this sub-sector.  But in Khulna city the demand for employees housing is not in the potential level from employee’s perspective. There are some inevitable factors like location in terms of transport cost for daily necessities, rent, living environment and floor space influences the demand of employees housing. The influence of these factors varies. The degree of correlations between demand and these factors define the problem and scope in respect of policy initiatives. Among the aspects spatial variation influences the demand significantly. If the employees housing is located in such a location which consumes more transportation cost for daily necessities signifies the negative demand. According to the living index of the city dwellers employees housing is not affordable, as the employees have to spend 47.5 percent of their basic salary as the rent. But employees are living in employees housing due to some ethical issues like comfort, living with the same classes of people. Regarding these aspects the rent structure, living environment, location in terms of transport cost and floor space have the significant influence on the demand of employees housing. In Khulna city, employees housing is being merged with public housing subsystem. So the policy incentives for this subsystem is absent in the structure plan of Khulna city. Moreover, the subsystem is not treated individually and employees housing is demonstrated by the respective organization. Besides, the special variation and rent structure are the most significant factors repeating the major problem of housing sector of Khulna city. Therefore, from this standpoint an appreciable strategy is required to revive the threshold demand of employees housing in Khulna city as the existing demand is negative.

1.0 BACKGROUND

Housing as the experts emphasize, can no longer be viewed simply as a physical structure or only as a consumer product (Cedric, 1990). It has a significant social and personal impact. An effective housing can help to raise the productivity of a countries labor force and accelerate its development process. In this context the employees working in different organizations of the city, who are engaged in the development process, should be accommodated in a rationale way, so that they can perform their activities to their full potential. Housing is the shelter as well as the index of the social health, happiness, social justice and dignity of the inhabitants. Therefore, the obligation for employees’ housing arises as the employees can have an effective role in reviving the growth of a city, which economy is over changing due to some inevitable factors.

Diversity of housing demand among individuals and families prompted the development of a variety of process by which people are being housed. Housing system in most of the developing countries including Bangladesh is characterized by a rich variety of sub-systems that cater for the respective needs and priorities of different section of people. Employees housing is the sub-system of housing delivery system as employees especially the government employees are being subsidized through the rent structure of housing. But this context differs due to various locational aspects both from city to city and within a particular city.

The employees housing sub-system has impacts on the housing sector of a city by accumulating the functions such as rent structure, demand for housing, living environment including services and facilities, distance from the work place, density and in to some extent the land value of the entire area. Private entrepreneurs also emphasize on their employees housing as they need to be more productive by reducing the cost burden of transportation and subsidies for housing. The demand for employees housing also depends on the rent structure, comparative living environment and distance to shopping to daily necessities. The alternative thoughts arises as the process of housing design, building, management, maintenance and the rent structure of employees housing is determined by the providers. In this perspective the choices of occupants are limited and dependent on the housing market of the city. The terms of tenure in the employees housing sub-system ends with the termination of the employment or on transfer. So there is no economic benefit for the employees from the long term investment in housing as paying the rent.

Khulna has a history of about hundred years. The city originated as a market town and seat of administration. During the early days, tobacco and sugarcane were traded here and it had a shopping link with Calcutta. Khulna was declared a municipality in 1884, became a railway link in 1985, district headquarters in 1961, and a city corporation in 1984. Industrialization took place in the 1960s. By following the seat of administration Khulna is the divisional head quarter. So the government employee occupies a major portion of white collar jobs as well as the service sector. Entrepreneurs’ also investing in the Khulna as it is the industrial city. Unlike Dhaka and Chittagong where housing condition is explained by its critical shortages, in Khulna, the poor quality of housing apparently seems to be more serious than the number of units needed. The employees housing is not apart from this circumstance. The government is the single largest provider of built up housing in Khulna mainly in the form of accommodation for its employees. Although the number of units provided is far less than the number of employees, government housing continues to be a strong influence on employees housing in Khulna city. The private sector employers are also significantly supplying their employees with houses.

Besides, the private housing sub-system in Khulna city employees housing plays the potential role to accommodate the employees. In Khulna city 36% of total population are employed among them 70% of all manufacturing employment is based on the jute and jute based industries. The total industrial land has been found 2607 acres among this land residential purpose of employees shares a considerable part (KDA , 2001). The overall employees housing situation relies on the age-old structure but the services are available in these areas. The rent structure, which is related to the salary of the employees, encourages employees to rely on private housing, as the house rent of private housing is less than the quarters with the same facilities. Choice of housing is the function of distance of working place, distance of daily necessities, quality and availability of services, rent, floor space, design of the buildings etc. In Khulna city the choice for employees housing or private housing is a complex one as housing market of Khulna city is competitive. The employees who are involved in public or private sector are representing the middle class people according to their income structure. So the housing condition of these employees relies upon their ability to pay as well as the services and facilities they are getting from the providers.

1.1 OBJECTIVES

§ To study the existing situation of employees housing in Khulna city.

§ To analyze employees housing in context of housing sector of Khulna city.

The first objective focuses on the existing situation including floor space, rent, affordability, locational aspects including distance form working place and daily necessities, services facilities, type of the building and other relevant aspects.

The second objective focuses on the two way relationships between employees housing sub sector and housing sector and how this two influences each other in the comparative aspects, locational aspects and through the policy measures.

1.2 EMPLOYEES HOUSING, WHAT AND WHY?

Diversity of housing demand among individuals and families prompted the development of a variety of process by which people are being housed. Housing system in most of the developing countries is characterized by a rich variety of sub-systems that cater for respective needs and priorities of different section of people. Angel (1977) in his study of the low-income housing delivery system in Asia identified seven sub-systems and he defines employees housing is the sub sector of housing sector in city scale. The employees housing sub-system provides accommodation for the government and semi-government employees in public and industrial sector. Quality of the house is associated with rank, position of the occupier and the rent is subsidized, and the terms of tenure ends with the termination of the employment or on transfer.

Hasan and kabir (2002) states, employees housing is one of major types of low-income housing of the city. This system provides accommodation for about 9 percent of the total population. The government or formal sector industries and institutes are responsible for this type of housing delivery sub-system.

Cedric (1990) explores the concept of employees housing is extensively practiced after the colonial stage. The housing of this particular period is now age old but it is being used for serving the public employees. The houses are age old but there is the provision of utility services.

Mamun (2001) states that the government is the single largest provider of built up housing in Bangladesh mainly in the form of accommodation for its employees. Although the number of units provided is far less than the number of employees, government housing continues to be a strong influence on urban housing in general.

In the Khulna master plan, public housing sub system is being treated as the employees housing sub system, which occupies only 1.5% of the total housing stock. Here the knowledge gap arises as the employees housing includes not only the public employees housing but also private employees and industrial workers housing. In this context, the study explores the real definition of employees housing as:

Employees housing is being regarded as the housing that is being provided by the relative organizations where the employee works and the housing that allows only the employees of that organization to live, the rent of this type of housing has been compensated through the housing allowance or through the part of the salary. The liability of maintenance is the issue for providing organizations and its associated organizations or department. In this definition of employees housing the concerning issues are who are the provider, who are the occupier, what will be the rent and how the rent will be paid and the aspects of maintenance.

In Bangladesh, the Services (Pay and Allowances) Order, (1985) illustrates the provision of allowances for house rent and Bangladesh Allocation Rules, (1982) assures the provision for getting house for the Government employees. According to the National Budget, 2005-06, 256 crore taka is being allocated for the construction and maintenance of employees housing. Therefore, in this sub-sector of housing huge capital is being invested. So the efficiency in terms of qualitative aspects and efficient demand should have to be allocated for employees housing. Spatial and morphological analysis is the key technique to find out the problems related with the qualitative aspects of employees housing. 

1.3 SCOPE OF THE STUDY

According to Shlomo Angelloo employees housing is the sub sector of housing sector in city scale. Khulna city occupies a huge number of employees being a divisional head quarter. The study have drawn the detailed pen picture of this sub sector including the existing situation sub sector considering the demand and supply side aspects and the study will focus on the role of this sub sector on the housing sector of the city. Two-way relationships between the employees housing sub sector and housing sector in perspective of rent, floor space, location, land use, policy measures, services facilities and other aspect of housing sector will be explored by the study. 

In the Khulna master plan, public housing sub system is being treated as the employees housing sub system, which occupies only 1.5% of the total housing stock. Here the knowledge gap arises as the employees housing includes not only the public employees housing but also private employees and industrial workers housing. So the knowledge gap has been explored and the sub system has been treated individually.

Being a metropolitan city Khulna city experiences a huge number of employees due to the presence of public administration, industries, business activities and service providing organizations. The employees are facing the general problem of housing sector like owning house, rent, locational aspects and demand and supply side aspects. In this context if there is the provision of an individual sub system for the employees the furnishing of this sub system can ensure the economic potentiality through securing the basic needs for housing.

In Khulna city there is the policy for employees housing in national, local and institutional level that ensure the supply but the existing situation including the quantitative and qualitative aspects determines the supply side aspects of housing that can be correlated with the demand in three ways: DEMAND=SUPPLY, DEMAND > SUPPLY, DEMAND < SUPPLY.

If the first situation arises then the study tries to focus on the physical intervention only but when the situation goes for the next two then there are some facts behind the situation (Figure 2.3). These facts finding activities were the main goal of this study.

1.4 ORGANIZATION OF THIS THESIS

Chapter One

Background of the study, what is employees housing, scope of the study.

Chapter Two

Working procedure including sample size determination, conceptual framework.

Chapter Three

A brief description of the study area and spatial distribution of employees housing.

Chapter Four and Five

Analyzing the existing situation including physical and economic aspects and analysis of employees housing in context of the housing sector of Khulna city.

Chapter Six

Statistical analysis of the factors that influences the demand of employees housing.

Chapter Seven

Regarding the generalized findings recommendations for employees housing.

SUMMARY OF FINDINGS

Chapter One: Introduction

·                     Employees housing is the sub sector of housing sector in city scale. The employees housing sub-system provides accommodation for the government and semi-government employees in public and industrial sector. In the Khulna master plan public housing sub system is being treated as the employees housing sub system which occupies only 1.5% of the total housing stock.

Chapter Three: Study Area

·                     The spatial distribution of urban infrastructure including employees housing of Khulna city follow the traditional landuse model of south Asian cities.

Chapter Four: Existing Situation of Employees Housing in Khulna City

·                     The establishment of employees housing is followed by the period of 1960 to 1970. So the buildings are age-old and the condition of the buildings varies with the year of construction and maintenance of the buildings.

·                     The residential density in employees housing is 102 persons per acre. That’s why there is the provision of enough open space.

·                     Most of the employees housing are within the floor space 300-1000 sq. ft. There is the variation of quality between different providers of employees housing.

·                     Providing the service and amenities in employees housing sub sysytem the relevant organization is responsible.

·                     The form and pattern of buildings differs with the relative organizations but the design considerations are quite similar followed by south faced building structure, higher no. of living rooms and segregated in to two blocks.

·                     In Khulna city the employees are paying 47.5 percent of their basic salary as rent. There is no fluctuation and discrepancy among the employees housing in respect of rent structure but the fluctuation arises when the rent is being estimated by the rent per floor space.

·                     In employees housing expenditure is much more than non-housing expenditure. So the subsystem is not lying in the affordable limit declared by UNCHS.

·                     In Khulna city there is the lack of effective demand of employees housing. The estimated proxy demand for employees housing is negative in Khulna city.

·                     Most of the employees housing is located in such land use where residential purpose id dominant.

Chapter Five: Employees Housing in context of Housing Sector of Khulna City

·                     In Khulna city there are no additional policy measures for employees housing being treated as an individual sector.

·                     In Khulna city employees housing occupies only 1.92% of total housing stock whereas the total employees both in public and private sector are 14.0%.

·                     In the Khulna city about 27 percent of the households (average size of household is 5.60) live in one room house, while the next 31 percent occupy two rooms. Whereas, in employees housing sub system the scenario illustrates that most of the housing have three rooms (35.57%).

·                     In Khulna city the largest number of households, 15.55 percent, has floor area in the range 801-1200 sq. ft. Whereas, in employees housing 24.49% dwellings have floor space of the range 801-1200 Sq. Ft..

Chapter Six: Factors Affecting Demand of Employees Housing

·                     The demand for employees housing depends on the rent structure, income, floor space, location in terms of transport cost and living environment.

·                     The level of significance of different factors is influenced by the ethical issues like comfort, living with same classes of people.

·                     The demand of employees housing is strongly influenced by locational variation and rent structure.