labels: economy - general
APK to end settlement with trade unions news
James Paul
21 February 2002
Kochi: The Association of Planters of Kerala (APK) has decided to terminate the existing wage settlement with estate trade unions.

The notice of the termination of the settlement under section 19(2) of the Industrial Disputes Act, 1947, has already been issued and, taking into account the current financial crisis in this sector, a new wage settlement has to be reached with the workers, says APK chairman G J Ancheril.

The APK chairman says the steep fall in the prices of tea, coffee and natural rubber, coupled with the rise in cost of production to levels much higher than the price realised by the grower, has led to the closure of several estates in the state (). "They were finding it difficult to pay the full wages and other statutory benefits including the provident fund share."

Ancheril says only a realistic wage settlement will bail out the ailing plantation sector. "The Nilgiri Planters Association is an example worth citing: it reached an agreement with trade unions to cut workers wages in tea plantations by 10 to 12 per cent. APK is expecting the trade unions to realise the prevailing serious situation and agree to some mutually-acceptable solutions that will help the plantation sector to hold on to its operations."

APK secretary K J Joseph says it is only in Kerala that the settlement wages are notified as the minimum wages, whereas in Tamil Nadu the minimum wages and the settlement wages are different. "As compared to the minimum wages of Rs 52 plus some paise per day in Tamil Nadu, it is Rs 70-plus in Kerala. Productivity is also less here. A worker here plucks only 14 kg of tea in eight hours, whereas it is more in other states. In Kenya, the labour productivity is 40 kg in eight hours for a much lower wage."

Some of the leading planters of the state when asked about the various commodity boards said these boards should play more of a promotional role to promote new markets and to develop a separate brand for natural rubber. "The government has to ensure affordable wage rates in plantations, besides insisting on adoption of productivity norms to become competitive with producers elsewhere."

The government should also provide facilities to cultivate fuel trees, as firewood is the cheapest that could be used in the manufacture of tea, they said. "Formalities and procedures to procure firewood from own sources should be made simpler."


 

also see : see Planters want centre to promote exports

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APK to end settlement with trade unions