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
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