1. Dr. Kingshuk Sarkar Fellow V V Giri National Labour Institute, Noida
National level conference on protection of child Rights in Tea Plantations in India Guwahati, Assam 4-5 Nov 2016
Dr. Kingshuk Sarkar
Fellow
V V Giri National Labour Institute, Noida
National Conference on tea plantations Guwahati 4-5 Nov 2016

2. National Conference on tea plantations Guwahati 4-5 Nov 2016
Context
Indian tea is a crucial sector among the organized manufacturing sector for ensuring inclusive development (labour intensive, employs large number of women workers, located in backward regions, workers belong to marginal sections of the population)
Workers are at the receiving end particularity since beginning of liberalization in 1991 because of cost cutting measures and operation of global value chain
Innovation is necessary for sustained growth of the industry but such innovation is lacking in production but at the same time marketing of tea has witnessed a lot of innovations in last twenty years
National Conference on tea plantations Guwahati 4-5 Nov 2016

3. The Analytical framework
The Concept of “working poor” (plantation wages are particularly low in Assam and West Bengal)
Lack of entitlement (basic needs are barely fulfilled, tied to tea estates in an enclave economy set up, backward hinterland lacking public infrastructure, lack of livelihood opportunities)
Innovation out of poverty and inequality (grass-root level innovation is somehow missing, few technology based innovation did take place but had limited success, even large-scale unionization failed to improve working and living conditions)
National Conference on tea plantations Guwahati 4-5 Nov 2016

4. Basic indicators of Indian tea
1998
2005
2007
2010
2012
2014
Area (in hec)
474027
555611
578458
579353
563979
Production(in ml kgs)
874
946
986
966
1126
1207
Imports 9 17 16 20 21
Exports
210
199
179
222
208
207
Consumption
650
760
798
860
903
945
Avg labour empl
Auction price
76.73
58.67
67.67
106.32
125.25
130.91
National Conference on tea plantations Guwahati 4-5 Nov 2016

5. National Conference on tea plantations Guwahati 4-5 Nov 2016
Basic indicators
Production showed increasing trend
Area under tea showed significant increase during late 1990s and early 2000 because of proliferation of small growers and later stabilized
Consumption is showing secular increasing trend
Export is getting stagnant but not affecting producers since expanding domestic market provides the alternative
Auction price also shows an overall increasing trend with business cycle variation
National Conference on tea plantations Guwahati 4-5 Nov 2016

6. Daily wages in major tea growing states in 2015 April
Name of the State
Daily rate of wages (in Rs.)
Assam
(125)
West Bengal
(132.50)
Tamil Nadu
230 (234.72: )
Kerala
231 (300 plus DA of 51)
Karnataka
228.35
National Conference on tea plantations Guwahati 4-5 Nov 2016

7. Cost of production in major tea producing countries
Country
Cost of production
Labour cost
India
1.62
0.81
Sri Lanka
1.23
0.74
Bangladesh
0.32
0.16
Kenya
1.16
0.55
Malawi
0.84
0.27
National Conference on tea plantations Guwahati 4-5 Nov 2016

8. National Conference on tea plantations Guwahati 4-5 Nov 2016
The dilemma …….
Cost of production is highest in India and out of that labour cost share is the most dominant
Even when labour is paid so low
The issue of export competitiveness
Is Indian tea industry is thriving on backwardness?
National Conference on tea plantations Guwahati 4-5 Nov 2016

9. Labour market intervention
Tea plantation is a colonial endeavor and labour was mostly migrant workers and there is sharp divide between tea and non-tea population
The Tea Act 1953
Setting up Tea Board 1954
Plantation Labour Act 1951
Labour market did not develop in West Bengal and Assam as such inter- generational continuity was allowed and it has seen large-scale unionization
Living and working conditions are poor as implementation of the PLA has been very slack over the years
In the context of lack of alternative livelihood opportunities workers in locked-out tea estates have suffered starvation deaths
National Conference on tea plantations Guwahati 4-5 Nov 2016

10. Recent happenings in Kerala plantations
Last September 2015, women workers of Kannan Devan Hill Plantations (KHDP) Limited, a subsidiary of Tata Tea organized agitation and went on strike for nine days demanding increase in daily wage, statutory bonus among other things. Following the strike and after the intervention by the Chief Minister of Kerala, KHDP Ltd agreed to pay bonus at the rate of 8.33 per cent and per cent ex-gratia to workers. Daily wage rate was increased from Rs 231 to Rs 300 at a single go which was hitherto unprecedented. More than women workers participated in the movement.
National Conference on tea plantations Guwahati 4-5 Nov 2016

11. National Conference on tea plantations Guwahati 4-5 Nov 2016
The striking things…..
Women workers irrespective of union affiliation initiated the movement
Traditional unions were kept out of the purview
Usual tripartite collective bargaining mechanism was not tapped initially
This happened in Tata subsidiary estate where things are relatively better
It has spread to other parts of Kerala plantation
National Conference on tea plantations Guwahati 4-5 Nov 2016

12. Situations in West Bengal & Assam
Tea plantations in these two states which together produce 75% of India’s total tea production didn’t experience such indigenous working class uprising
Because of historical reasons, tea still remains a fiercely enclave economy and Kerala like workers’ uprisings are very unlikely
In West Bengal and Assam, workers are migrated tribal population mostly detached from mainstream society and suffer from lack of educational and health entitlements even after independence, mobility and access to other sources of livelihood is almost non-existent, non representation at the trade union leadership level
All the above factors help in perpetuation of low wage tea economy in these two states
National Conference on tea plantations Guwahati 4-5 Nov 2016

13. Collective bargaining/ Minimum wage debate
Collective bargaining mechanism in Assam and West Bengal didn’t produce the optimal outcome from the workers’ perspective: State so far as failed to react judiciously, workers’ continue to receive sub-optimal wage and suffer from very low standard of living
Tamil Nadu and Kerala did enforce minimum wage notification option to declare uniform plantation minimum wage in addition to implementation of Plantation Labour Act 1951 which is uniformly applicable throughout the country
Minimum wage is dynamic in nature in the sense that those are revised periodically with corresponding changes in the consumer price index
Collective bargaining in an world of weakening trade union movement have failed to protect real wages of plantation workers in West Bengal and Assam
National Conference on tea plantations Guwahati 4-5 Nov 2016

14. National Conference on tea plantations Guwahati 4-5 Nov 2016
Why this is important?
This become more important in the present context where instead of addressing the question of increasing economic inequality, at the macro level, labour legislation is being revised to reduce cost and make India’s production of goods and services more competitive. Capital and its return are not being touched. With a large, poor and unemployed population, the stress is to produce in India at the least cost. This objective of producers’ may be resisted to a certain extent if labour is allowed to demand its fair and legitimate share.
National Conference on tea plantations Guwahati 4-5 Nov 2016

15. National Conference on tea plantations Guwahati 4-5 Nov 2016
Thanks a lot for your kind attention
National Conference on tea plantations Guwahati 4-5 Nov 2016