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Collective Bargaining in
Tea Industry
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
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
Overview of the Indian Tea
        Industry
Connect
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
Public Sector
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
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
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
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
Private Sector
Brooke Bond
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
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
Lipton
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)
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
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
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
Tata Global Beverages
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
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
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
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
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
THANK
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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
  • 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
  • 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
  • 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
  • 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
  • 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