The Hindu Business Line : Planters’ body laments ‘unaffordable’ labour costs

The wage related to plucking in the minimum wage notification of 2006 constitutes only 3.33 per cent of the total wage, which was 19 per cent in 1977.

Our Bureau

Kochi, Sept. 30 The labour intensive plantation industry in Kerala does not have any control over the labour cost and changes in the wage structure in the neighbouring and other States in the country connected with this sector would bear this out, according to the Association of Planters of Kerala (APK).

Addressing the 68th AGM here on Saturday, Mr D.B. King, Chairman, APK, said, “There may be various compulsions for the State to adopt different policies; but the compulsions of the industry to survive in the midst of domestic and overseas competition needs to be recognised.”

He said that the earnings of the workers in the plantation industry should improve but it has to be tune with the growth of the industry and its long-term sustenance. Hence, wages should be linked to productivity, efficiency and the capacity of the industry to bear it in the long run, especially because in the existing system a decision taken on wages cannot be reversed.

Linking of wages to productivity and efficiency, he said, was not getting acceptance from the concerned quarters. Over the years the productivity element in the wage structure for tea has been eroded. Out of the total wage the plucker earns, the wage related to plucking in the minimum wage notification of 2006 constitutes only 3.33 per cent of the total wage, which was 19 per cent in 1977.

Productivity mismatch

Today, with high yield variety of clones and efficient and improved management of field operations, the yield pattern has increased considerably. While there has been significant increase in the yield over the years, the standard output has not kept pace with the yield, he claimed.

The present standard output imposed on the industry through the minimum wage notification of 2006 has not considered this aspect, he said. Similar flaws on productivity levels exist in other crops, particularly rubber and coffee.

“We should compete not only for increasing productivity but also for sharing the gains of productivity.”

Today, competition is not between different products but different business models. Management has to find new ways of sustenance and labour productivity is one important factor.

The APK has called upon the State Labour Minister, Mr P.K. Gurudasan, who was instrumental in forming the Plantation Labour Committee on productivity, to study the current plucking level in tea plantations. The PLC has submitted its report to the Minister, he said.

POOR Performance

On the performance of the industry during the previous year, he said, “The year was difficult for Kerala”. The prices of natural rubber improved substantially helping the industry to wipe off losses and make record profits. However, tea prices showed a slight improvement but not to the desired level. Coffee prices were steady and the cardamom prices were lower.

The chief guest at the AGM was the State Industries Minister, Mr Elamaram Kareem, and others who attended included UPASI President, Mr C.P. Kariappa, the Additional Commissioner of Labour, Mr Mohandas, and APK Vice-Chairman, Mr M.P. Cherian.

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