The Consultative Committee of Plantation Associations (CCPA) on Thursday said that the tea industry in Dooars and Terai region of West Bengal may lose upto 25 million kg of production due to the ongoing agitation by workers. The planters' body has also threatened to suspend operations if agitation continues.

Different workers' unions have called a strike beginning August 9 demanding a hike in minimum wages. According to industry, though one leading union has withdrawn the strike call on August 10, other unions are sticking to strike call.

At a press conference on Thursday, CCPA office bearers said that production loss was likely to affect cash flow to the tune of Rs 220 crore. This coupled with the impact of wage hike would substantial reduce the industry's capacity to pay bonus before the festive season begins in the first week of October.

“If the agitation continues, both the production as well cash reserves will be affected, thereby impacting industry's ability to pay increased wages and bonus,” Mr Tapan Chowdhury, Chairman, CCPA (West Bengal region), said.

Industry captains say that price of tea produced in the Dooars and Terai region has already come down by nearly Rs 4 a kg compared to the corresponding period last year.

Workers' Demand

Workers' unions including Progressive Tea Workers Union (PTWU), Coordination Committee of Plantation Workers Unions and Defence Committee of Plantation Workers Rights have demanded that wages be increased from the existing Rs 67.50 to a minimum of Rs 91 upfront before negotiations start.

A proposal to pay a minimum wage of Rs 130, at par with the Mahatma Gandhi National Rural Employment Guarantee Act, was also forwarded by the West Bengal government. The CCPA had on its part proposed a wage of Rs 8 a year for the next three years.

Following the failure of wage negotiations earlier this month, workers unions called a strike. Blockades were also allegedly imposed on despatches from gardens.

Social Cost

The planters' association maintain that if the statutory social costs are included, the industry is paying to the tune of Rs 140 a worker a man-day. They further add that CCPA is open to discussions provided the agitation is withdrawn.

“Discussions cannot be carried out at gunpoint. The agitation has to be withdrawn before discussions on wage takes place,” Mr Arun Singh, Director and CEO, Goodricke Group said at the press conference.

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