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2000 25: 81Management and Labour StudiesAnanda Das Gupta

Industrial Relations in Plantations in India : Suggestions for Improvement  

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INDUSTRIAL RELATIONS IN PLANTATIONS IN INDIA

- SUGGESTIONS FOR IMPROVEMENT..Ananda Das Gupta

It is found that the labour situation in tea and coffee estatesin India still remains unsatisfactory, despite some progressthat has been achieved after the establishment of tradeunions. Methods for further improving the situation aresuggested.

The history of the plantation industrycan be traced back to the last part of thesecond decade of the last century and toisolated, uninhabited hilly areas of Indiawith extreme climates, wild life and besetby natural calamities. The early plantationpioneers ventured into this hazardousoccupation, fighting against heavy oddsand some perished in the attempt.Undaunted, they marched forward and theplantation industry today is a monumentto these man and women. The part playedby labour was one of blood, sweat andtears, and even self-annihilation. Labourerswere tempted by the false promises ofrecruiting agents, taken to the unhealthyplantation areas and made to work likeslaves. Many of them died of malaria andother epidemics, "unwept, unhonoured andunsung". (Krishnamurthy, 1984).

Background of the Tea Industry

The tea industry in India is about 160years old. It occupies an important placein the national economy. Tea cultivation ona commercial scale was first startedexperimentally in Assam in 1839.Thereafter, the first two gardens wereestablished in the Terai in 1862 and inDooars in 1874. Almost all the labourers inthe tea plantations were immigrants. Amajority came from the Chotanagapur­Santhal Parganas region of Bihar and some

• Ananda Das Gupta is a Faculty member in theHRD area, Indian Institute of PlantationManagement, Bangalore.

from Nepal. The tea garden managementwas quite simply tyrannical, since theworkers were completely at their mercy.Although many trade unions have their"strongholds" in the tea gardens of Assam,the Terai and Dooars, the conditions of theworkers still remain poor. Though thewages have been periodically increased, teaplantation workers have remained thelowest paid in the organized sector. Someworkers are yet to get quarters and not allthe quarters are pucca. The pucca quartersare also not built according to theprescribed government specifications. Mostgardens do not have any recreationalfacilities for their workers. In the workstructure, the scope for vertical mobility isalmost nil (Sarker, 1977).

Conditions are very poor in the Assamgardens as well, as stated by Tripathi (1984):"In dealing with plantations, it is oftenforgotten that plantation workers arehandicapped men lying like dolls in thequagmire uprooted from their home,recruited in strange environments wherethey are kept segregated from thesurrounding population. They have losttheir personality." Tripathi further observes, "therefore, plantation workers haveremained in semi-slavery conditions."

In their leadership the unions havefailed to develop local leaders. In fact, theytake no interest in developing leadershipfrom the grassroots level. They also do notencourage women workers to enter the

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union leadership. Thus, trade unions haveinsufficiently developed the subjectiveawareness of the workers and failed tobecome an organized and advancedworked class-movement.

The Plantation Labour Act

The tea plantation industry providesdirect employment to more than a millionworkers. It is thus the largest employer oforganized labour, all drawn from tribal andsocially weaker sections of society. Abouthalf the labour force consists of womenworkers. The main reason put forward bythe employers for the high employment ofwomen is that work in the plantation is toa farge extent gender specific. Women areconsidered more efficient in plucking tealeaves, while men are better in other typesof work relating to the maintenance of theplantation.

Basically speaking, tea plantations havefour categories of workers: male, female,adolescent and children. Male and femaleworkers are those above 18 years. Workerswho are more than 14, but below 18 areadolescent and children are those below 14years. Along with the high rate of femaleemployment, employment of children isanother distinct feature of the tea industry.This is legally permitted by the PlantationLabour Act.

The Plantation Labour Act lays downthat plantations must have primaryschools, creches, water supply in the labourlines and also recreational facilities for theworkers. Unfortunately, most of theseprovisions are not enforced and the womenworkers particularly are deprived ofwhatever little scope they might have hadfor improving their conditions for thereasons shown below.

1. Lack of educational facilities keepsthem illiterate.

2. The absence of proper creches at thework place implies that the older

Industrial Relations in Planations In India

daughters, instead of going to school,have to take care of the children in thehousehold.

3. Lack of piped water in the labour linesputs an additional burden on thewomen as they have to fetch water fromdistant water sources.

4. The low literacy rate among the womenworkers limits their involvement in thetrade union activities. ( Sarkar andBhowmick, 1998)

A similar study of the women workersin coffee plantations of Chickmagalurdistrict of Karnataka (Rame Gowda, 1997)revealed that although the plantation isconsidered a part of the organized sector,it shares features with un-organized sectorsof the economy, especially where the labourforce and its problems are concerned.

Rame Gowda's study provides someimportant insights into the interaction ofwomen workers with their workenvironment.

1. Due to the poor living conditions and lifeopportunities, women workers inplantations constitute a highly neglected,exploited group among Indian women.

2. Women workers have the doubleburden of performing tasks in theworkplace as well as at home. In mostcases, the male members of the familydo not share responsibility on thedomestic front.

3. Women workers in the coffeeplantations, like their counterparts inother jobs, suffer from worker-relateddisabilities, both physical and social.

4. Women workers become occupationallyimmobile due to their low level ofeducational attainment and the absenceof opportunities for skill formation.

5. Women workers are exposed to healthhazards mainly due to repetitiveoverworking.

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Management & Labour Studies, Vol. 25, No.2, April 2000 83

Regarding the issue of sex harassment,regardless of regions, whether north-east orsouth, different forms of sexual harassmentsurely exist; but normally, women workersare gagged due to social inhibitions.

Women workers become occupationallyimmobile due to their low level ofeducational attainment and the absence ofopportunities for skill formation.

Legislation in Early Days

It was the report of the Royal Commissionon Labour in India (1931) and that of theLabour Investigation Committee under thechairmanship of Mr. DR Rege (1946) whichbrought the conditions of the plantationworkers to wide public notice. Two otherenquiries of no less importance were thoserelating to the Standard of Living ofPlantation workers by the Directorate of theLabour Bureau (Deshpande Report) and theStandards of Medical Care for Tea Plantationsin India by Major E Ljones. Both these reportswere published in 1947.

The Central Government thenconvened a tripartite conference onplantations in 1947 and the IndustrialCommittee on Plantations was constituted.This committee was accepted as the forumfor a periodic review of the conditions ofservice of plantation workers and has actedas a catalyst in accelerating the growth oftrade unions and in laying down conditionsof work and welfare measures forplantation workers in keeping with theaspirations and ambitions of an emergingindependent country. The first conferencemade suggestions regarding wages, cost ofliving allowance, sickness and maternitybenefits, medical aid, education andwelfare activities. It recommended that theemployment of children under 12 yearsshould be prohibited. A phased programmefor providing housing and other amenitiesto plantation workers according to the setstandards for water supply, drainage andsanitation was also brought into effect.

The second session of the IndustrialCommittee, held in 1948, considered thequestion of wage fixation, medical care andtreatment of the workers and an outline oflegislation to regulate the conditions ofplantation workers was drawn up. Themeeting endorsed Major Lloyd [one's reporton the Standard of Medical Care for TeaPlantations and recommended plans formedical care for workers. By about this time,the Constitution of India was being framedand the constitutional provisions had a greatinfluence on the framing of the PlantationLabour Bill, passed in 1951. This Act madeelaborate provisions relating to the supply ofdrinking water, conservancy and sanitation,free housing and medical facilities, canteens,creches, recreational facilities, educationfacilities, annual leave with wages, sicknessand maternity leave with benefits.

In 1966 the Government of Indiaappointed the National Commission onLabour to make a comprehensive review oflabour conditions since independence. Thecommission recommended placing industrialrelations outside the pale of theadministrative and executive influence of thestate governments, the appointment ofindependent Industrial RelationsCommissions at the centre and state withseparate wings for conciliation, arbitrationand adjudication and statutory recognitionof representative trade unions.

The Situation Today

The amendments to the plantation labourAct of 1951 made in 1981 provide perhapsthe best example of hasty legislation basedon ill-understood facts and without anappraisal of the consequences ofimplementation. Thus, the amendmentextended the provisions of the Act, likehousing, medical, health and educationalfacilities, leave with wages and so on to allplantations irrespective of size, even to a one­hectare holding. This would result in a

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shrinkage of employment and in anenormous cost to enforce the provisions ofthe legislation on thousands of small holdingsin scattered areas. There would also beWidespread non-compliance or graft toovercome the problems (Kurian, 1984).

Thus, the amendment extended theprovisions of the Act, like housing,

medical, health and educationalfacilities, leave with wages and so onto all plantations irrespective of size,even to a one-hectare holding. This

.would result in a shrinkage ofemployment and in an enormous

cost to enforce the provisions of thelegislation on thousands of small

holdings in scattered areas.

It is found that in the Terai and Dooarsareas of West Bengal (Sarkar,. 1997)even after40 years of trade union movements, the localleaders still depend on outside leadershipand the trade unions have not succeeded insufficiently changing the conditions ofexistence of the workers. Interestinglyenough, the women workers who constitutea majority do not participate much in tradeunion activities. A study (Sarkar andBhowmick, 1998) showed that only 17 of thewomen, representing only 11 percent of thesample, regularly attended union meetingsand participated in the other activities.Around 65 percent of them were occasionalparticipants and the rest never took part atall.

Even in Assam, trade union activities inthe positive direction have not taken roots.Recently (1999) a study conducted on theexecutives of the tea companies operating inAssam revealed that most of the executiveshave pointed out four major problems,namely: labour relations, alcoholism,absenteeism and low labour productivity.This in turn highlights the incompetence ofthe trade unions and their inability to playa

Industrial Relations in Planations In India

major role in combating the problemsmentioned.

In the South, women workers in coffeeplantations represent less than 10 percentwith regard to their union participation.Rame Gowda (1997) points out that anoverwhelming majority were of the view thatthe trade union leadership had let them downvery badly and that their interests were notat all being represented by the trade unions.

Considering the whole scenario relatingto plantation trade unions in India, it may beconcluded that most of the union leadersseem to be collecting money both from theplantation labourers and the owners.Whether the workers involved are men orwomen, unionization is not an easy target toachieve as far as plantation (or, for that matteragricultural) workers are concerned. Povertycoupled with socio-economic-culturalconstraints come in the way of effectiveunionization among such workers.

The following quote gives us a dismalpicture of the unions and the lop-sidedattitude of the state governments towardsplantation workers.

"Despite the workers being highlyunionized, with the CITU as the main union,and despite the state (West Bengal) beingunder a left front government the interests ofthe 2.5 lakh tea plantation workers (of WestBengal) have been sacrificed in the latestthree-year wage agreement signed in July,1994. Apart from the niggardly increases inwage rates and the continued denial ofvariable dearness allowance, the employershave gained (and the workers have beenmade to lose) Rs. 11 crore just by the delay inarriving at the agreement. No wonder, thelevel of living of this section of isolated,predominantly tribal workers has shown noimprovement, though the variability of the teaindustry and the profits of the employers haveimproved significantly over the last decadeand more". (Commentary, Bhowmik, 1994)

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Management & Labour Studies, Vol. 25, No.2, April 2000 85

"Despite the workers being highlyunionized, with the CITU as the main

union, and despite the state (WestBengal) being under a left front

government the interests of the 2.5lakh tea plantation workers (of WestBengali have been sacrificed in thelatest three-year wage agreement

signed in July, 1994.

Some Positive Approaches

Considering the importance of welfaremeasures for the plantation workers (amajority of whom are women), we would likenow to discuss some "positive" approachesand models which are both theoretical andempirical in nature, sharply directed towardsmaking an improvement in the presentsystem. To begin with, we focus mainly onfour approaches.

1. The UPASIApproach

2. The "Mothers Club Approach"

3. The ABO Model

4. The Human Capital and Growth Model

The UPASI Approach

The United Planters Association ofSouthern India (UPASI) embarked upon aComprehensive Labour Welfare Scheme(CLWS) with national goals of development(Rahamathullah, 1984).

Themain objectives of theapproach were:

i) to raise the standard of living of theworkers and their dependents byoptimizing the use of the health andwelfare facilities provisions of thePlantations Labour Act, 1951;

ii) to make the small family norm a felt needfor the individual families.

In 1971/ the programme was launched inthree states of South India covering apopulation of 5000. From 1972 to 1976/ theprogramme was extended to more areas and

in 1976/it covered a population of 1.28lakhs.During this period, field personnel were madeavailable with vehicles and audio-visualequipment. But in order to cover the entirepopulation, certain target areas as focal pointsfor intensive work were selected and fourmodules were developed:

i) the staff of the CLWS workedindependently;

ii) the CLWS and the management workedin collaboration;

iii) the CLWS and the medical departmentworked in collaboration and

iv) the CLWS, the medical department andthe management worked in collaboration.

Of the four modules, the results obtainedby the last module were found to be the best.This proves the point that the health andwelfare programme are effective only whenthe management and the medical personnelare fully involved.

Of the four modules, the resultsobtained by the last module were

found to be the best. This proves thepoint that the health and welfare

plrogramme are effective only whenthe management and the medical

personnel are fUlly involved.

Considering the cost factor of having stafffrom outside the community, a new conceptcalled the Link Workers (LW)was introduced.A L W is a member of the working team whoacts as an opinion leader and assumes socialresponsibility for a group of 20 familiesaround his or her house. Through the LWs, atwo-way communication channel wasestablished between the providers of theservice and the beneficiaries. The LWsare alsoused to spread knowledge on positive healthpractices and also on the prevention of ill­health. What is significant is that with thiscommunication channel being established asalso participation of the workers through LWs,the health indices have improved remarkably.

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86 Industrial Relations in Planations In India

(INSERT FIGURE: The Core Activities of CLWS are summarized herein through a diagram)

Social Education

Population Dynamics

The "Mothers' Club" Approach

The "Mothers' Club" is the mostimportant component in this programme.The original plan was to have one mothers'club member for every 20-25 households inthe garden. The only qualifications formembership were that the women concernedshould be literate, active in community affairsand enjoy the respect and confidence of thecommunity to which they belonged. Amongthe many responsibilities and duties of themothers' club, the important ones are:

i) each member to be responsible for 30-35households;

ii) teaching mothers about suitable weaningfood;

iii) education and motivation of workersregarding family planning programmes;

iv) motivating others through lines meetingsand group meetings among the women;

v) arranging for immunization programmesfor children;

vi) looking after pregnant women andarranging for antenatal check-ups in thegarden hospital;

vii) chlorination of drinking water sourcesand so forth.

Table 1 shows the year-wise formation ofMothers' Clubs in 104member gardens of theIndian Tea Association (ITA) between 1991and April 1995 (Ghatak and Chakrabartty,1998). In the first year, nearly half of thegardens formed Mothers' Clubs, but by 1995this number got severely reduced. Mothers'Club members (clad in green bordered whitesaris) were nominated by the management,and in some gardens, by the trade unions.Though everyone was reportedly asked totreat the matter in a non-political way, thedominant unions in several gardens got theiractivists nominated and in several gardens,

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Management & Labour Studies, Vol. 25, No.2, April 2000

this created problems late~. Also, a f~w I creat~d.communication problems at the timeilliterate women got nominated which of trairung.

Table 1

Formation of Mothers' Clubs 1991-95

51. No. Sub-Districts Reporting Gardens 1991 1995

1 Binnaguri 17 14 1

2 Nagrakata 10 10 -

3 Dalgaon 13 9 -

4 Dam Dim 24 2 6

5 Kalchini 21 2 6

6 Chaba 12 7 1

7 Jainti 7 4 -

Source: (Ghatak and Chakrabartty, 1998)

87

Mothers' Clubs have played an importantrole in bringing about positive changes inhealth, family planning, immunization andin eliminating alcoholism among maleworkers. Thus in recent times, it is reportedthat there have been 10-12weddings in tribalshomes without any drinking at all. Anotherpoint in the agenda is the movement againstmoney-lenders. They started campaigning infavour of post-offfice savings accounts. As aresult the number of account holders in thepost-offices and banks has gone upsubstantially An area where the activities ofthe Mothers' Club are producing animportant result is the emphasis now beingput on sending children, particularly girls, toschool. In some gardens it is reported thatevening literacy centres have been opened.

An area where the activities of theMothers' Club are producing animportant result is the emphasis

now being put on sending children,particularly girls, to school. In somegardens It is reported that eveningliteracy centres have been opened.

While the Mothers' Clubs haveencouraged some community participation,there is need for greater active involvementof the community as a whole both in theplanning and implementation of the clubs.While womens' participation is critical for aproject like this, future projects should aimat ensuring greater participation also by men.

The ABO (Action by Objectives) Model

The plantations in India have now beenfacing five crises: in leadership both from themanagement and the union leaders, inmobility, in focusing, in bureaucracy and invision.

The crisis of leadership can be overcomethrough growth directed towards fulfillingthe needs of the workers. There is need tohave a "bottom up" approach in theleadership so as to involve people right fromthe lowest level. A 'worker-directed'leadership will grow through efforts(diagram 2) to solve the crisis of mobility inthe socio-economic-political milieu. With abroad based approach, growth will ensuremore focus on the real problems of the estatesand their personnel and by empowerment of

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the workers, problems will more easily besolved, most of which are experienced by theworkers themselves. The crisis of vision of

Industrial Relations in Planations In India

the decision makers can be solved by strikinga balance between the 'ego' (organizationalneeds) and the 'eco' (social needs).

Stage I Stage II Stage III Stage IV Stage V

Crisis of Crisis ofCrisis of Bureaucracy VisionFocusing

Crisis of GrowthMobility Through

Crisis of Growth Ego-EcoLeadership Growth Through System

Through Co-ordinationEmpowerment

GrowthThrough

Growth DirectionThrough

Social needs

Diagram 2

Source: Das Gupta (1995)

The CLWS and Mothers' Club typeorganizations can become an instrument toinitiate a worker-directed movement to solvetheir own problems. Although the twoorganizations in South India and West Bengalwhich have tried these approaches haveshown positive results, they should nowconsider the following points so as to bringabout even greater change.

i) The role of the organizations in societyi.e. their mission and their responsibilityshould be defined.

ii) General and particular goals have to beset and the gap between the mission andthe goals should be noted and means ofbridging the gap should be found.

iii) A strategic plan should be drawn up withthe participation of all workers, bothliterate and illiterate.

iv) Change should be brought about throughgroups comprising not more than 50workers each.

The CLWS and Mothers' Club and otherdevices that play the role of catalysts toinspire workers and to help open their eyeshave thus given back their lost identity andsense of individuality.

The CLWS and Mothers' Club andother devices that play the role ofcatalysts to inspire workers and to

help open their eyes have thus givenback their lost identity and sense of

individuality.

Our Action By Objective (ABO) theory(Das Gupta, 1995) is a method of self-controland a way of fixing targets with reference toone's own strengths and weaknesses so as toexecute development and welfare measuresfor the workers. ABO comprises a sequentialcarrying out of the following four functions:

i) reviewing and renovating strategies;

ii) providing a job improvement plan and acongenial work environment;

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Management & Labour Studies, Vol. 25, No.2, April 2000 89

iii) using present and potential performancereviews in a systematic way; and

iv) strengthening the ability and enrichingthe skills of the workers through effectivetraining and development.

In the ABO approach, the objectives arehanded down with no spirit ofauthoritarianism but as a tool for all layers(management r trade unions, voluntaryorganizations) for self appraisal anddevelopment, so as to move towards self­reliance.

Self Reliance

There are four elements in self reliance:self-confidence (to be built among theworkers); better understanding of the workand the factors that create harmony betweenmanagement and labour; team-spirit; aimingat excellence in work.

These four components of self-reliancewill, in tum, serve as feed-back elements in aprocess of takingfrom society and giving backto society (diagram 3).

,Reviewing &renovating strategies

r JOb-improvementPlant &congenial

ABO Work-environmentPresent and potential

"-Performance Review

~in a systematic wayStrengthening theability & enrichingthe skills

'" ~

Self-confidenceBetter

.. Understanding• Team Spirit

Excellence inWork

To theSociety

... Processing Guided ••By ABO Objective

From theSociety

Feed Back based on the FourComponents of self-reliance

(Source: Das Gupta, 1995)

The Human Capital and Growth Model

This is a theoretical framework of all thathas been focused on in this paper. The corefactor which indicates the competence of anyorganization is education and training, andplantations are no exception. This model,

given by Becker (1962) lays stress on trainingof all categories of workers - from managersto pluckers (in the case of plantations).According to this theory, individuals whoseek education and job-training shouldcompare the present value of future wage

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90 Industrial Relations in Planations In India

k T k (W -W)C= L 0 t---------- + -----------

t=l (1+i)t t=l (1+i)'

increases with the cost of the education andtraining including both the direct expenditureand the opportunity cost associated with thelow wages earned during the training period.Let us suppose Wo is a person's presentannual income in each of his remaining nyears of employment. With training, thisincome will vary over time by an amount ofWt each year. The direct costs of training areassumed as a constant T during the trainingperiod, which ends at period K. Given theseassumptions, the costs (C) and benefits (8)of acquiring the training are, respectively:

Management may find it important toimpart on-the-job training to both managersand workers but would like to get satisfactoryreturns. Now since the direct costs of training(T) are positive, the management canrecapture the investment only if it pays theemployees less than the value of theirmarginal product during at least some of theyears of their employment. Without a doubtinitial education and suitable on-the-jobtraining increase the marginal productivityof both workers and managers in running thegarden efficiently. This has already beensubstantiated by the performances of theUPASI approach (CLWS) and the Mother'sClub approach, and we look forward toadding more such programmes throughtheABO approach. This will further verify theeconomic propositions of the Becker model.

Conclusion:

In the plantation setting, the greatest assetis labour and hence, expenditure oneducation, training and welfare measures hasto be looked upon as an investment budgetand not as a consumption budget. If all three

n

B= Lt=k+1

(W-W)I 0-------------

major components of human resourcedevelopment are included in the HRDprogramme, there will surely be atremendous impact on the workers to moveup in the economic ladder and this willincrease their productivity to the benefit ofthe organization

Note: Regarding the Comprehensive LabourWelfare Schemes (CLWS), theSecretary General of the UnitedPlanters'Association of Southern India(UPASI) has informed the author, in apersonal letter dated July 14, 1999 thatthese schemes were completelydiscontinued in 1994. He furtherpointed out that CLWSwere on a low­key since 1986.The cause of this down­hill trend at first and then theircomplete abolition is the lack ofmotivation and inspiration on the partof the organization to continue theprogrammes. This will be a subject ofresearch that will shortly be taken andthe findings will be summarized in apaper to follow-.

References

1. Gary S Becker, Investment in HumanCapital: A Theoretical Analysis, [oumalof Political Economy, February 1962

2. Sharit K Bhowmik, Tea Plantation WageAgreement: Worker's Interests Sacrificed,Economic and Political Weekly, October 8,1994

3. A Rame Gowda, Gender Inequality,Jaipur, Rawat Publications, 1997

4. Maitreya Ghatak, Lip Chakrabarty, TheDooars Story: Empowerment of Womenand Community participation in Healthand Family Welfare,A Report, Indian TeaAssociation, Calcutta, September 1998

5. Anand Das Gupta, EconomicManagement and Ethics: The Vedantic

,Answers, Indian Journal of PublicAdministration,July-September 1995

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Management & Labour Studies, Vol. 25, No.2, April 2000 91

6. V Krishnamurth, The Role of theGovernment, Management in TeaPlantation, Geneva, ILO, 1984.

7. P K Kurian, Industrial Relations inPlantations: A Management Perspective,Management in Tea Plantation, Geneva,ILO,1984.

8. V Rahamathullah, Welfare Managementin Plantations: Labour Welfare in SouthIndian Plantations, Management in TeaPlantations, Geneva, ILO, 1984.

9. Kanchan Sarkar, Trade Unions in the TeaPlantations of the Terai and Dooars,Management and Labour Studies, Vol. 22,No.3 July 1997. Pp. 175-179.

10. Kanchan Sarkar, Trade Unions andWomen Workers in Sharit K Bhowmik,Tea Plantation, Economic and PoliticalWeekly, December 26,1998.

11. K P Tripathi, Workers' View,Managementin Tea Plantations, Geneva, ILO, 1984

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