1. Collective Bargaining in
Tea Industry

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. 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
conditions
Discussion of Issues :
 Wage Scales
 Working Hours
 Training
 Health & Safety
 Grievance Mechanism

4. Overview of the Indian Tea
Industry

5. Connect

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. Public Sector

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. 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. 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. 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. Private Sector

13. Brooke Bond

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. 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. Lipton

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. Collective Bargaining-
Cause
 Over 8,000 workers were employed in Unilever's 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 company's 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. 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 Unilever's 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. 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. Tata Global Beverages

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. 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. 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. 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. 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. THANK
YOU