Collective Bargaining in Tea industry


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Collective Bargaining in Tea industry

  1. 1. Collective Bargaining inTea Industry
  2. 2. AGENDA What is Collective Bargaining? Overview of the Indian Tea Industry Collective Bargaining in Tea Industry  Public Sector  Private Sector  Brooke Bond  Lipton  Tata Global Beverages
  3. 3. What is Collective Bargaining?Collective bargaining is a process of negotiations between employers and a group of employees aimed at reaching agreements that regulate working conditionsDiscussion of Issues :  Wage Scales  Working Hours  Training  Health & Safety  Grievance Mechanism
  4. 4. Overview of the Indian Tea Industry
  5. 5. Connect
  6. 6. Overview of the Indian Tea Industry 1823 – A tea plant was discovered by Robert Bruce and Bessagaum in Assam 1839 – The Assam Company, world’s first tea company, was established 2011  Tea Production : 988.32 million kg  Turnover : 10,000 crore  No. of Employed people – 1.2 million (50% women)  Generates income for another 10 million people
  7. 7. Public Sector
  8. 8. Collective Bargaining in Public Sector Employers - 10 Tea Associations in India (Consultative Committee of Plantations Associations - CCPA) Employees – 15 Trade Unions in Tea Gardens (Assam & West Bengal) Regulatory Board – Tea Board of India Type of Collective Bargaining  Bipartite  Tripartite – In presence of State Government
  9. 9. Successful Incidents 1995 – CCPA and All Trade Unions in Tea Gardens  Minimum employment age: 15 years  Free housing and medical facilities to employees  Food grains at highly subsidised rates for the employees 2011 – Indian Tea Association & Assam ChahMazdoorSangha (ACMS)  Increased quantum of fringe benefits  900g dry tea leaves per month  342 cubic feet of firewood  Additional compensation of Rs. 3 to sprayers
  10. 10. Successful Incidents 2011 – CCPA and Trade Unions in Tea Gardens  Puja Bonus for tea workers at 20% 2012 – Five tea planters association &ACMS  Fixed daily wage per head at Rs. 84 for Jan – Dec 2012  Every year, wage will be increased by Rs.5  Incentives to curb absenteeism
  11. 11. Unsuccessful Incidents 1999 – West Bengal Planters Association & West Bengal Trade Unions  Strike for 10 days  Regarding healthcare facilities 2011 – Dooars and Terai Planters Association &AkhilBharatiyaAdivasiVikasParishad (ABAVP)  Indefinite bandh  Employees demanded Rs. 63 hike in wage  Employers wished to give Rs. 24 hike in wage
  12. 12. Private Sector
  13. 13. Brooke Bond
  14. 14. Introduction Established in 1869 One of the most profiteering brand under Unilever Founder : Arthur Brooke It has the following products under its brand: • Brooke Bond TajMahal • Brooke Bond Red Label • Brooke Bond TAAZA • Brooke Bond 3 Roses
  15. 15. Collective Bargaining European Trade Union Action Day at Brooke Bond Universal Declaration of Human Right Unilever’s code of Business Principles Labour relation complaint by International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF) relating to its operations in India and Pakistan
  16. 16. Lipton
  17. 17. Introduction 1893 – Sir Thomas Lipton established the Thomas J. Lipton Co 1972 – Unilever bought Lipton business 1991 - Unilever created a joint venture with Pepsi Co (the Pepsi Lipton Partnership)
  18. 18. Collective Bargaining- Cause Over 8,000 workers were employed in Unilevers Lipton tea factories across Pakistan Majority of them were considered temporary workers, hired through contract labor agencies Workers at a Unilever Lipton tea factory in Pakistan were protesting the companys refusal to provide permanent jobs for their workers No annual or medical leave They could not join an union of Unilever workers and they used to receive 1/3rd of the permanent workers wage They were also being deprived of their bargaining power
  19. 19. Collective Bargaining- Effects IUF filed a complaint with the Organization for Economic Cooperation and Development (OECD) to hold Unilever accountable for denying basic rights to the majority of its workers through subcontracting At Unilevers Lipton factory in RahimYar Khan, Pakistan, the OECD complaint led to a settlement between the IUF and Unilever which secured the creation of new permanent positions for all the union-supported Action Committee members The Action Committee was formed to fight for their appointment as directly employed permanent workers with the right to join the union
  20. 20. Collective Bargaining - Proposal The settlement stipulated that Unilever will create 120 new permanent positions at the plant and all Action Committee members will be appointed to these positions According to the agreement, the workers should suffer no discrimination at the factory and the company pledged to abstain from interference in the work of the union in which they were enrolled as members
  21. 21. Tata Global Beverages
  22. 22. Introduction Started in the year 1964 by J.R.D Tata Formerly known as Tata Tea Headquartered in Kolkata, Paschimbangaa Includes brands like:  Tata Tea  Tetley  Good Earth Teas  JEMCA Acquired Tetley (UK company) in the year 2000 for $432 million Current MD & CEO: Percy T. Siganporia
  23. 23. Collective Bargaining- Cause On May 9th August 2009, a pregnant lady worker (Mrs. AartiOraon) collapsed while working on the field It happened in the NoweraNuddy plant in Jalpaiguri, Paschimbangaa Lady was 8 months pregnant and she was denied maternity leave even after applying several times She was not even provided with the basic medical treatment after collapsing in the field No transport facility was provided to her and she was carried to the hospital in a garbage tractor
  24. 24. Collective Bargaining- Effects 8 women who took the lady to the hospital & helped her were suspended along with the lady Arrest warrant against Mrs. AartiOraon for theft, grievous bodily harm & criminal intimidation Protest against the company by 500 women workers working at that particular location Lockout at the plantation for continuous 4 months i.e. August- December Agreement signed with trade union in front of minority workers present, resulting in 2nd lockout Lockout forced the employees to face extreme conditions: hunger
  25. 25. Collective Bargaining- Effects All the employees were denied wages, let alone bonuses Condition was so extreme that emergency ration was distributed IUF raised its voice and asked for:  Allowing suspended workers back  Withdrawal of FIR against Mrs. AartiOraon  Clearing of wages due to the workers  Starting the plant again
  26. 26. Collective Bargaining - Proposal It was proposed that:  Both the party should withdraw the case  Payments to all workers employed, from the time of the second lockout  Family members of the two dismissed workers to be offered permanent jobs and the two dismissed workers to be given compensation  Management to make a cash payment to Mrs. Oraon’s child as a gesture of goodwill  a joint union-management meeting to be held at the estate to establish procedures and mechanisms for resolving grievances and raising awareness on maternity benefits and protection
  27. 27. THANK YOU