Gods Own Country.

Entrepreneurs' nightmare.

INDUSTRIAL
RELATIONS IN KERALA
TEA PLANTATIONS

TEAM
Ajay Kumar
S 002
Sunil Mathews N
065
Prakash
N 073

THE GAME PLAN

BACKGROUND
ISSUES IN THE
INDUSTRY
FORMATION OF
UNIONS
ROLE OF UNIONS
LABOUR STRIKES

IMPORTANCE: TEA INDUSTRY

India accounts for 31% of tea products in
the world.
Indian Tea industry accounts for about
10% of Indias exchange earnings.
It provides employment to millions of
people, mainly from economically poor
and weaker sections.
Nearly 60% of the employees are women

HISTORY: TEA PLANTATIONs

Started in India, during the colonial
period in 1820s.
Concentrated in North-Eastern states
and around the Western Ghats.
In Kerala, coffee used to be the main
plantation crop.
The fall in the price of coffee in the
1870s, prompted for change over to tea
plantation.

KERALA : TEA PLANTATIONs

Kerala accounts for more than 45% of
plantation crops in India.
Plantation crops in Kerala includes Rubber,
Cardamom, Coffee and Tea.
Tea Plantation is highly labour oriented.
Accounts 2.3% of the Tea in the world.
Tea garden provides employment to about 2
Lakhs employees.
163 Large estates & 3956 small growers
accounts for the production of tea in Kerala.

CRISIS IN TEA INDUSTRY

Tea Market is mainly international focused.
Trade Liberalization, Free import & Mal
practices of export & reduction in price in
international market impacted the industry.
Sustainability was difficult, as production
cost was above the international Mkt Price.
Disintegration of USSR, which accounted
for almost 60% of Keralas exports also
impacted the industry.

CRISIS IN TEA INDUSTRY

Poor wage rate in comparison to the living
cost and poor working living/working
conditions impacted the employees.
Most of the estates in Kerala were not
economically sustainable.

LABOUR EMPLOYMENT
Plantations are in geographically isolated
areas & Labour problems due to less
population.
Dependency on the migrant labour
Initial recruitment was family based,
helped in permanent settlement of labour
force and ensured the future labour supply
Also helped in employing women by
projecting the nature of job as women
oriented
Enabled the employer to keep the wages

EMPLOYEE BUYOUT
Lower price of tea and high production
cost made it financially not viable option.
Mgmt wanted to quit or reduce their
burden.
Nearly 50% of Ownership was allocated
to workers.
This ensured availability of laborers for less
wages and prevented them from looking for
alternate options.
Mgmt retained 50% shares and control.

TRADE UNIONS
The remote locations & ignorance of
the migrant population prevented the
formation of trade union in tea industry.
Workers did not have bargaining
power.
Leaders from other TUs started
educating the tea workers.
TU started in Kerala tea industry in
1940s.
Mgmt tried to suppress the

TRADE UNIONS
TU awakening and strikes compelled
Govt to form an enquiry commission in
1948.
As per the recommendation of this
the Plantation Labour Act (PLA) came
into force.
This act stipulated provisions of
welfare schemes, housing etc.
It also facilitated the establishment of

TRADE UNIONS
TU helped in setting up a uniform
min daily wage in 1952 ie. Rs 1.6 (0.94
basic + 0.66 DA)
(In 2002 it was set at Rs 77.26/-)
After repeated strikes a uniform
wage for men & women workers
established through the equal
remuneration Act in 1976.

ROLE OF TUs

ROLE OF TUs
Workers began to know their rights.
Competition between Mgmt & TUs in
shaping Identity of Tea Workers.
Elevation of Socio-poilitcal life of
workers.
Role shaded by financial gains
obtained by workers.

TUs MOVEMENT & SOCIO-POLITICAL LIFE

Raised Political & Social Awareness.
Developed Leadership quality,
Organisational Capacity, Sense of Unity.
Tea Workers family became
recognised in the Parliamentary fields.

TUs & CULTURAL ACTIVITIES

Dynamic in Arts, Culture and Sports
for decades.
Number of Clubs in the estate, other
than the official labour club.
Clubs celebrate Anniversary with
competition in Arts & Sports.
Clubs organized by TU leaders directly
or indirectly.

CHALLENGES FACED BY TU MOVEMENT

Lack of concrete ideas for role to be
played in the crucial stage for revival of
tea industry.
Lack of Professional Touch &
Comprehensive Approach.
Unhealthy Competition of TUs.
Inadequate Commitment to the
Development of Industry.

CHALLENGES FACED BY TU MOVEMENT

Declining democracy in TUs.
Discarding Non-Economic Factors.
Marginalisation of Women Workers.
In-sufficient Support from Masses.

LABOUR STRIKES
Strike in Sept 2015
Strike by 7000 women employees of
KDHP.
It was also an agitation against the
inability of TU.
Boycotted all Trade Unions.

Kannan Devan Hill Plantation

Ownership
Tata Tea divested its stake to 40% in
2005, giving 60% stake to the workers
and formed KDHP by merging many
estates.
This was to make them a part of the
firm and to give greater sense of
responsibility.
Majority of the shares allotted to the
workers were acquired by company

LABOUR STRIKES
What Prompted the Employees ?
PLC decides the salary of plantation
laborers.
PLC comprises of Mgmt, TU leaders,
Govt Reps.
Previous revision was in 2011, and
the term of the revised wage was for 3
years.
Revision was overdue for more than a
year.
No initiative or pressure form TUs or

KDHP STRIKE: FACTS

Demands
Revision of min wage, over due since
2014.
Daily wage of Rs 240 for 12 hours of
work to be revised to Rs 500.
Provide the basic amenities to the
employees.
Reinstate the bonus to 20 %.

KDHP STRIKE
Agitation
Started on 06 Sep 15, by 7000
women workers under the banner
Pempilai Orumai a women workers
collective, with no specific leader.
Plantation works stopped.
Blocked roads, resulting in traffic
blocks.
Politicians, TU leaders kept away.
Held senior official of KDHP as

KDHP STRIKE
Management s View
Tea industry passing through a severe
crisis due to Low prices in Mkt, high
production cost, adverse weather, labour
problems, pest attack etc.
Forced to reduce the bonus from 20%
to 10%.
Decision was taken after approval of
TU leaders

KDHP STRIKE
Outcomes
Attacks on the protesters by TU
members.
Allegation by a TU leaders that Tamil
Extremist groups were behind the
agitation.
Strike put the mainstream TUs on the
defensive.
After Govt mediation, Mgmt agreed to
give 20% bonus and consider the wage

KDHP STRIKE
The Aftermath
TUs called for an indefinite strike prior
to PLC, demanding 20% bonus and a min
wage of Rs 500.
About 3 Lakhs Plantation workers
joined strike.
KDHP women employees stayed away.
PLC meeting convened by Govt.
KDHP women representatives not
allowed in PLC

Plantation Labour Act - Violations

12 hours of work against the stipulated
9 hours.
Act stipulates the management to
provide educational facilities when the
number of children (between 6 15 Yrs)
exceeds 25. This was not followed by the
management.
Housing Schemes inadequate.

Present State
Minimum wage of Rs 301/implemented.
Pempilai Orumai has not accepted
this, and continuing their peaceful
representations.
The strength of Pempilai Orumai.. ie
Unity, has been weakened by separating
key members.
Political parties & Trade unions have

THANK YOU