The Hindu Business Line : Tea plantations upset over minimum wage proposal

The draft minimum wage notification issued by the Tamil Nadu Government, proposing a minimum daily rate of Rs 101.52 for tea plantation workers, ‘would be a death knell for the plantations in the State’, say management sources.

The draft notification was issued on March 14.

Expressing concern over the proposed hike and its adverse impact on plantations, Mr D.P. Maheshwari, President, The United Planters Association of Southern India (UPASI), said: ‘If the State Government does not give up the present proposal of fixing the minimum wage above the prevailing rate negotiated between the trade unions and the planters’ associations, it would signal the end of collective bargaining.’

The apex body of the plantation industry in South India, has not only appealed to the State Government to retrace its steps, but has sought the Centre’s intervention in dissuading the Tamil Nadu Government from going ahead with the proposed wage plan.

He pointed out that in the past, whenever the minimum wages were fixed and revised by the State Government, it was meant for protection of the unorganised workers in the small growers sector. “Such wages were well below the prevailing settlement. The State Government has for the first time resorted to proposing a higher minimum wage than the one settled through collective bargaining between the plantation management and workers representatives. This is unfortunate and detrimental to the plantation industry,” Mr Maheshwari said and expressed concern over the State Government’s interference with the collective bargaining system in reaching settlements.

“The extra wage burden arising from the minimum wages proposed by the State Government will add Rs 7-8 a kg to the cost of production, thereby making the entire industry terminally sick. The plight of the small growers could be worse, they may even be wiped out,” he said.

Mr Maheshwari said the bilateral agreement was valid till December 31, 2007 and the per-day wage on that day was Rs 80.40. Subsequently, the wage fixation negotiation talks commenced.

“Though an amicable State-wide settlement could not be reached, the Nilgiri Planters’ Association and the Nilgiri-Wynaad Planters’ Association agreed to a per day wage of Rs 90 (inclusive of terrain allowance) with provision for incentive wage linked to average auction price realisation. The current notified wage is much higher than the minimum wage of Rs 76.65 in Karnataka as on March 2008.”

More Stories on : Plantations | Trade & Labour Unions | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NCDEX to launch futures for carbon credits

Rice planter machine put on demo in TNAU

Eastern Bay warming up in advance of ‘low’

Retail chains in talks to buy Alphonso mangoes

Tea plantations upset over minimum wage proposal

Spot rubber rules steady

7-week high offer at Coonoor tea sales

Buddhadeb urged to take up raw cotton export issue with PM

Pepper futures turn volatile

Nod for NMCE July, Sept coffee contracts

Chana futures recover on short covering

Export ban goes on castor, coconut oils

NCDC disburses Rs 320 cr in 2007-08

Dream projects push up land values to exorbitant rates