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National Advisory Council

Recommendations on Welfare of Tea Plantations Labour
Background

1. The Plantations Labour Act (PLA), 1951 provides the legal definition of Plantations.
The Act states that a Plantations is any land used or intended to be used for growing tea, coffee,
rubber, cinchona, cocoa, oil palm and cardamom which measures 5 hectares or more and in
which 15 or more persons are employed or were employed on any day of the preceding 12
months.

2. Tea is the major Plantations industry in India. It is the oldest in the organized
manufacturing sector and has retained its position as the single largest employer in this sector.
Tea is produced mainly in four States, namely, Assam, West Bengal, Kerala and Tamil Nadu.
The total number of permanent workers in tea estates is about 1 million and the number of
temporary workers is around 6 lakhs. Ironically, even though they are a part of the organized
sector, Plantations workers remain even today one of the most marginalized sections of the
society.

3. Wages of tea Plantations workers are the lowest in the organized/formal sector. The
process and rationale for wage fixation does not appear to be satisfactory. The decision of the
Wage Commission for Tea Plantations Industry in 1966 to take 1.5 units of consumption to
determine the need based minimum wage instead of 3 units of consumption as agreed upon in the
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th
Indian Labour Conference (1957) has resulted in such low wages. For example, the total
daily wage of a tea Plantations worker in West Bengal is around Rs. 140 which includes the
component of food grains at a subsidy. This is lower than the stipulated wage in the unorganized
sector.The wages are agreed upon in different States by a Tripartite Committee set up by the
State Governments comprising of the Worker Unions, representatives of the employers and the
State Government. Wage negotiations are on the basis of the existing wages whereas
negotiations should be after taking into account the existing need based minimum wage.
4. Low bargaining power of tea Plantations workers. The low wages of tea Plantations
workers are due to a number of causes which include isolation of the tea Plantations, extreme
backwardness of the areas surrounding the Plantations that do not provide any alternative
employment, lack of educational facilities among others. These factors reduce the workers
bargaining power for better wages. When workers demand a just increase in wages, the
employers retaliate by saying that they would have to cut down on temporary workers. Since the
temporary workers are from the families of permanent workers, any reduction will reduce the
family income. The workers are thus caught in a vicious circle of working for low wages in
Plantations work.
5. Lack of quality school education and little impact of the RTE Act. Poverty and
limited income restricts the workers from providing their children adequately with their basic
needs and education. The teacher student ratio is very low. Medium of instruction completely
differs from their mother tongue. There are no proper school buildings and other infrastructure.
Despite the enactment of the Right to Education Act, the impact of this legislation is scarcely felt
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in most of the Plantations areas. High schools and other facilities for higher education are
located at far distance from tea gardens.

6. Poor penetration of Governments welfare programmes. Welfare facilities like
housing, sanitation, health and hygiene available to the Plantations labour are also not
satisfactory. Various Government of India schemes which have the potential of being dovetailed
into the tea sector are also generally not extended to the Plantations labour. As a result, the
Plantations labour is deprived of even those facilities which are available to an ordinary citizen
of the country. Anaemia, worm infection, skin problems, TB and respiratory infections are very
common health problems seen in Plantations labours.

Institutions, Governance and Delivery Mechanisms

Tea Board of India

7. The Tea Board of India was established under Tea Act, 1953 as a regulatory body in
pursuance of the International Agreement on Tea towards cultivation and export of tea. With
respect to labour welfare, the Board has a specific provision for improvement of amenities and
providing incentives for workers. Under its mandate, it also has a scope for improving the
working conditions of Plantations labour. With respect to infrastructural development, the board
provides rooms for development and extension of hospitals, health centres, UNICEF model of
toilets and supply of water filter.

Structure for Enforcement and Accountability

8. Plantations Labour Act, 1951 and the Plantations Labour Rules of respective state
governments in particular are being implemented through enforcement machinery that operates
from Regional Labour Officers situated in tea growing areas. Assistant Labour Commissioners
are the Plantations Inspectors under the PLA. There is no separate machinery for
implementation of PLA, 1951. There are serious concerns about the enforcement of the PLA,
1951 especially with respect to manpower deficiency and infrastructural hindrances in accessing
the far flung tea growing areas. The Labour Welfare Boards exist in the state for the purpose of
promoting welfare activities for workers in various industries and tea garden areas.

9. The following legislations are applicable to the tea Plantations workers:

i. Plantations Labour Act, 1951
ii. Workers Compensation Act, 1923
iii. The Payment of Wages Act, 1936
iv. The Industrial Dispute Act, 1947
v. The Factories Act, 1948
vi. The Minimum Wages Act, 1948
vii. Provident Fund Act
viii. Maternity Benefit Act
ix. Other Social Welfare Legislations

10. Shortly after the NAC took up the subject on its agenda and initiated its consultative
process, an Inter-Ministerial Group has been constituted in December, 2013 by the Ministry of
Labour & Employment with Labour Secretary as the Chair to look into the issues concerning
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Plantations labour. It is suggested that the following recommendations of the NAC be
considered by the Inter- Ministerial Committee with regard to welfare of the tea Plantations
labor.

Recommendations

11. In the light of the discussion in the foregoing sections there is a need to revisit the
Plantations Labour Act 1951 and various welfare provisions of Plantations workers in India.
The issues that need to be addressed are low wages, ensuring decent working condition ,
provisioning basic amenities and better enforcement of the legislation through involvement of
local administration, local self governments and NGOs. To address these concerns, the following
recommendations are made.

Recommendation 1 Plantations Labour Act, 1951
Review existing provisions under the Plantations Labour Act, 1951 to make it relevant to
present context. The review exercise should take into account, developments in the tea
sector, social legislations enacted for labor welfare as well as new welfare programs and
outreach.


12. The Plantations Labour Act, 1951 provides for the welfare of Plantations labour and
regulates the conditions of work in Plantations. It has been enacted by the Central Government
but administered by the State Governments through rules framed by them based on a model
provided by the Union government. It is unique in the fact that while the Indian labour
legislation in general restricts itself to wages and working conditions at the place of work, the
PLA is the only Act that seeks to raise the living standards of Plantations workers. The small tea
growers sector being an unorganized sector is not governed by it. There is a need to see that
social security benefits are extended to labour working on small Plantations.

13. The implementation of the provisions of the Act has not lead either to the empowerment
of the workers or to the structural transformation of the colonial Plantations. The PLA has its
constraints in the articulation of the rights, definition of Plantations, definition of worker and its
failure to break the isolation of labour within Plantations, the highly restrictive logic of
determination of wages and in the limited valuation of women's labour. This points to the fact
that the PLA in its present form contributes to institutional exclusion.

14. The most vociferous argument on the part of the management has been that the
observance of the provisions of the PLA increases the cost of production of tea; making the
industry inefficient. The industry has repeatedly pointed out that these provisions were initiated
in early years when employment in remote areas was difficult because of inadequate facilities.
1951 PLA, which was enacted to make it incumbent on tea estate managements to provide a
wide range of welfare facilities still exist, directly impacting the cost of tea production. Although
the Plantations Labour Act, 1951 requires the management of a tea garden to provide basic
services for its workers and their families, its provisions apply only to permanent workers.
Approximately half of the tea garden labour force is made up of temporary or seasonal or
casual workers, Thus they do not benefit from these services, which include health and hospital
services, crches, primary education, water and sanitation, housing and rations for workers and
their dependents. This makes their condition even more vulnerable.
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15. The review of the PLA 1951 needs to look afresh at the definitions of Plantations,
workers, in the light of changing nature of tea production systems, .i.e. the emergence of the
small tea grower sector which currently is outside the purview of the Law and whose numbers
are increasing. Simultaneously, the nature of Plantations workers is also undergoing a transition.
More and more casual and seasonal workers are being employed by tea Plantations, who are
excluded from the welfare benefits provided in the PLA, 1951. There is need to see how rights
and benefits could be extended to this class of workers. Moreover, there are today several
Rights-based legislations enacted over the past decade as well as flagship programmes
implemented by the Central Government which entitles all citizens of the country to food
security, basic education, health services and insurance , housing, sanitation, social security and
pension, etc. A situation cannot be allowed to prevail where workers in isolated enclaves such as
tea Plantations, remain bereft of the universal entitlements conferred by the Rights-based
legislations and welfare policies as well as flagship programmes. The PLA, 1951 needs to be
consistent with other legislations for welfare and social security.


Recommendation 2 Wage Structure

Rationalize the wage structure of Plantations workers. The cash component of negotiated
wages for tea Plantations labour should not in any case be less than the minimum wages
notified by respective state.



16. If wage structure of tea estate workers is matched with an international benchmark for
defining extreme poverty, probably, workers in the tea gardens would fall in the bracket of
extreme poverty. There are complaints that in practice the wage component in cash in some
States is fairly low.

17. The wages are decided through a tripartite agreement which is approved by the
Government. Settling for cash wages below the statutory minimum wage is on account of
deductions made for facilities such as education, health and housing etc. provided by the
employer. There is seasonality to produce and therefore to wages. Sometimes wages vary from
garden to garden. There is a need to reassess the wage structure so that no deduction are made
from the cash wages in respect of items which are otherwise provided by the state to its citizens
as entitlement. Also the valuation of wages in kind should be done by the State.

18. The minimum wages paid to the Plantations labour should not be less than the minimum
wages declared by the respective State Governments. The tripartite agreement process between
workers, management and government should ensure this. Wage payments need to be in
monetary terms as the minimum wages cannot be provided in kind. The State must play an
effective role in ensuring that the minimum wage is guaranteed. Wages may be fixed based on
three consumption units per workers.





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Recommendation 3 Governance issues

Strengthen administrative and management capacities of Government Agencies entrusted
with implementation and oversight of welfare of Plantations workers


19. Given the varied responsibilities at the Department of Labour, there is an urgent need to
upgrade the resources in terms of infrastructure and manpower. The labour welfare activities of
Tea Board need to be synchronized with the activities of the Labour Department as there is a
clear need for better coordination between Labour Welfare Boards and the different agencies
involved in the welfare of Plantations labour in general. It is important that the role of Tea Board
is further strengthened with a rights based framework for tea workers. There is need to review
the role of Tea Board in encouraging compliance of existing provisions under the Plantations
Labour Act.

20. There is need to create mechanisms for coordination for implementing and monitoring of
various welfare schemes for tea garden labour at various levels including inter- state
coordination/state/district level coordination. The role of the, district level coordination
Committee will be pivotal to ensure convergence of welfare programs and services and effective
compliance of welfare legislations. Each district having tea Plantations should have a
Coordination Committee to effectively address all issues concerning Plantations labour and
ensure convergence of government welfare programmes. The Committee may comprise of
labour union representatives, tea Plantations management, heads of development agencies under
the District Collector.

21. The specific issues related to demarcation of responsibilities and activities across various
agencies (Panchayati Raj Institutions, line departments of district administration particularly
education, health, labour welfare, Plantations management, trade unions and NGO
representatives) could be reviewed and clarified by the district level coordination Committee.


Recommendation 4

Recognize and preserve the culture and identity of Plantations labour


22. Culture and history gives a group identity and solidarity. Pride in ones identity and
culture gives one confidence and a confident worker is always more productive.

23. The following measures may be adopted to preserve the culture and sense of identity and
dignity amongst Plantations labor:

1. To formulate a policy for cultural and linguistic development. It is necessary to adapt
school curriculum to include in school text books suitable references on culture, festival,
language, traditions and value system of people in the tea garden in these areas.
2. To promote important culture related activities and sports.
3. To provide paid holidays for major festivals
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4. To give suitable training for employment opportunities for youth of the Plantations labor
households including preference in appointment as teachers in these schools
5. To promote Mother Tongue Based Multi-Lingual Education System for promoting
language and culture and for strengthening primary education.


Recommendation 5
Extend all welfare schemes and other flagship programmes of the Government to include
Plantations workers. Guidelines of various welfare schemes may be reviewed by Central
and State Governments to extend the benefits to the tea Plantations labour.


24. Schemes of the Central Government like (i) Sarva Shiksha Abhiyan for primary
education (ii) Indira Awaas Yojana for housing (iii) Nirmal Bharat Abhiyan for sanitation (iv)
National Rural Health Mission for health services (v) Rajiv Gandhi Grameen Vidyutikaran
Yojana for electrification (vi) MGNREGA for safety net employment (vii) Mid Day Meal
Schemes (for basic nutrition for children) (vii) ESIC (viii) Rashtriya Swasthya Bima Yojana etc.
should be extended to the Plantations workers. To facilitate this, the relevant provisions of
Plantations Labour Act, 1951 may be reviewed. Tea estate owners must also ensure that the
benefits of entitlements under Government schemes are made available to the Plantations labour.
Further, as the welfare of Plantations labour is paramount, onus will lie on owners of the tea
estate to ensure that the welfare measures under the provisions of Plantations Labour Act, 1951
are duly extended to the Plantations labour. Also, Inter-Ministerial Group (IMG) in the Ministry
of Labour & Employment should work out a modus operandi so that the government
programmes can optimally benefit the Plantations labour. Clear instructions may be issued in this
regard.

25. A large number of Plantations labour force comprises women workers. Therefore, in all
institutional and decision making bodies, women should be adequately represented and must
have a say in the decision making so that the issues concerning their working conditions
including health are duly addressed.

26. The Parliamentary Standing Committee of Department of Commerce in its 102 Report
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has referred to an Inter-Ministerial Committee constituted to find solution to the problem of
sharing the social cost due to higher cost of production and thinning of profit margins on account
of higher labour wages and rise in input cost. The Inter-Ministerial Committee recommended for
sharing the social cost in the ratio of 10:40:50 (10% by the concerned state government, 40% by
the central government and 50% by the Plantations owners). The issue was re-examined by
subsequent Committees and then by the Indian Institute of Plantations Management as a part of a
study on the structural infirmities of the Plantations sector. All these Committees/Study
emphasized the need for sharing the social cost. The Standing Committee desired that the
Department make all efforts to adopt the formula recommended by the Inter-Ministerial
Committee on sharing of social cost since productivity of a worker is interlinked with his
working conditions and his welfare including sanitation, hygiene, education and sports facilities
for their wards etc. It also recommended that the Department of Commerce impress upon the

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Report on performance of Plantations sector - Tea and Coffee Board (9th August, 2012)
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concerned State Governments to participate in the sharing of social cost and also urge them to
effectively implement the provisions relating to labour welfare activities under Plantations
Labour Act.

27. It is clear that welfare measures and provision of basic facilities and infrastructure for the
Plantations workers has to come within the framework of and through the Plantations Labour
Act. Alongside, they have to be supplemented by extending coverage of Central Governments
welfare schemes to Plantations. The recent trend of Rights based approach to development and
universalization of welfare programs and services as provided under Right to Education.
MGNREGA, Right to Food, requires that these rights are enforced in all areas including
Plantations with coverage of entire population. Plantations cannot be allowed to exist as
independent enclaves and it needs to be ensured that workers in Plantations get both their dues
under the Plantations Labour Act and their rightful share of Governments welfare schemes.

28. The extension of schemes has already started in a piecemeal way as in the case of Sarva
Shiksha Abhiyan in West Bengal and Assam. However a concerted effort at planned extension is
required by the concerned Ministries of Government of India and State Governments.

29. Government should undertake the Tea garden school. There should be Middle and High
schools in between some tea Gardens with proper infrastructure and teachers. The company
should provide land to open government school. Mother Tongue Based Multilingual Education
System should be implemented which has been already functioning in some parts of Odisha,
Andhra Pradesh and in three localities in Assam in the district of Lakhimpur and Sonitpur
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Residential schooling facilities such as Navodaya Vidyalaya, Kasturba Vidyalaya may be
provided in necessary cases.

30. To address the health issues such as anaemia, worm infection, skin problems, TB and
respiratory infections which are widely prevalent in Plantations labour. There is an urgent need
for convergence of various on-going schemes in health sector. The resources in this regard need
to be augmented through national programmes like NRHM etc. The Plantations estate should
provide the facility of Garden Hospital and the facility at referral level should be provided by
State Governments./ ESIC.

31. Due to constraints like schemes being restricted to BPL workers, absence of housing and
land rights, conflict with administrative jurisdiction etc. the schemes are not admissible for the
Plantations labour. To address these constraints, steps needs to be taken like a fresh survey of
land in Plantations areas. The land had been leased out to Plantations companies on nominal
rates. After obtaining requisite NOC from local panchayats/authorities to construct housing
facilities , workers can avail the benefits under various programs such as Indira Awaas Yojana
(IAY) and Rajiv Awas Yojana (RAY). Ministry of Rural Development may also be requested to
make exception both for BPL eligibility and land ownership to include tea garden workers in
IAY. Possibilities may also be explored to convert existing houses in the labour line into multi
storied houses.




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In this school children get education through their mother tongue at early stage and after third
or fourth year there is a system of transition to the other language.
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Recommendation 6

Rehabilitate workers who have been victims of sudden abandonment of the Plantations by
the owners.


32. There should be clear policy guidelines to provide for rehabilitation plan for the labour on
closing down of a tea garden. As soon as any tea garden is in crisis, the rehabilitation process
should be triggered. There have been instances where tea garden owners have suddenly
abandoned the garden leaving behind workers without any social security or safeguards .

Conclusion

33. It appears that the status of Plantations workers in the southern states of Kerala, Tamil
Nadu and Karnataka is significantly better from that prevailing in West Bengal and Assam in
terms of wages, welfare facilities and in general in the implementation of the Plantations Labour
Act, 1951. These recommendations when being considered by the Government need to take
account of the differences existing between the two regions.