The Hindu Business Line : TN move on minimum wages ‘will hit Nilgiris plantation sector’

Coonoor, March 27 Aggrieved by the Tamil Nadu Government’s notification of minimum wages of Rs 101.52 per day payable to plantation workers, the plantation industry in the Nilgiris has announced its decision to make appropriate representations to the authorities.

According to Mr K.T. Harsha, Chairman, Nilgiri Planters’ Association (NPA), on March 6, a three-year industry-wide wage agreement was reached with trade unions with a starting wage of Rs 90, with retrospective effect from January 1, 2008. Another settlement was reached in the Nilgiri-Wynaad region also. But, the Government has published the Draft Notification under the Minimum wages Act, 1948, in the Gazette on March 14.

The settlement was reached through bilateral negotiations in keeping with the industry’s tradition. The wage proposed by the Government would make plantations unviable as it would cause an additional burden of Rs 7 to 8 a kg for manufactured teas. Already, many estates in Kerala, Assam and West Bengal have closed down. For the last 8 years, the industry has been reeling under crisis with prices remaining below production cost, Mr Harsha said.

Observing that in the past, the Government had fixed minimum wages only for the small grower sector, he said that the wage so fixed was Rs 5 to 10 below the wages payable under the negotiated settlements.

“The wages now notified in the Gazette are only proposals and not immediately payable. Two months’ time is allowed for objections. We will make appropriate representations. Pending final notification by the Government, our member estates will pay wages as per the settlement of March 6,” said Mr Harsha.

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