LABOUR LAGISLATION

Bharatiya Vidya Bhavan

Bhubaneswar
NAME-BIKASH BHUYAN
REDG NO-BIM0409BM029
(PRACTICAL CASES OF LABOUR LAW VIOLATION IN THE
TEA INDUSRTY OF ASSAM)

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 INTRODUCTION
The state of Assam is the world's largest tea-growing region, lying on
either side of the Brahmaputra River. The Tea Industry of was started
as early as 18th century. Assam produces more than 55% of the total
tea production of India. There are more than 850 tea estates and more
than 2500 tea gardens in Assam that cover thousands of acres of land.
This industry gives direct employment to more than 1.2 million
labours and indirectly 500,000.This is dominated by MNC like
Unilever, McLeod Russell, Williamson Magor, and Tata Tea etc. As
this industry employed such a big number of employees and
involvement of profit hungry MNCs it is also no doubt that there
should be violation of Labour laws. In this case I discussed about a
few such cases.
The tea industry in India has steadily prospered all through these years
and is making huge profits even in the days of downturn. In 2008-09,
India produced more than 1200 million kgs. Of tea whose market
value was Rs.10,000 crores and exported 21.3 per cent of the total
produce earning a foreign exchange equivalent of Rs.5,000 crores.
But On the other hand, the tea plantation workers are still paid wages
below the minimum wage of agricultural workers. An industry, which
is highly capitalistic in character, considering its international
marketing and financial activities, still pay their workers partly in cash
and kind. Since 1947, the wage of the tea plantation labour has
increased only numerically, there has been no rise in their real wage.
In essence, the industry has still maintained feudal relations of
production and a highly structured organisation of production in its
pre-marketing phases thus reaping super-profits on the basis of semi-
feudal, extra-economic coercion and exploitation. The majority of the
workers are suffering from anaemia and tuberculosis. Malaria is
rampant. There are tea gardens where at least one in every family is

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suffering from tuberculosis. And the children and women are the
worst affected.
The most violated Labour Law by the Tea Industry is Bonus Act-
According to the “PAYMENT OF BONUS ACT 1965’’ the
employer has to pay bonus to its employee at the minimum rate of
8.33 per cent of the salary or wage earned by the employee or Rs. 100,
whichever is higher, in an accounting year. Whether or not the
employer has any allocable surplus in the accounting year. The
maximum amount fixed by this law is 20%.
But most of the cases this law is violated, companies tried to escape
from the burden of payment of Bonus by saying that it is facing
continuous loss actually which is false. The labour who works
rigorously for their employer company are not getting the amount of
money which must have to give to then according to the law.Some
companies agreed to pay bonus but only the minimum amount that is
8% where the demand from employee is 15%. So many disputes took
placed which led to strikes and lock outs. In some extreme situation
labour undertook violence where a few managers & asst. managers
lost their lives. In such condition the management called police to
control the mob which resulted police firing and loss of more valuable
human lives. The Assam Company which is running by state govt.
always satisfied its employees by giving bonus near to the amount
demanded by them with the aid of government.
If the companies wish to give bonus they can give the maximum
amount proposed the Bonus Act .But they don’t want to give it only to
save money and increase profit. In the year 2003-04 more than 15
labours killed in the police firing along with 2 tea garden managers.
The case of violation of Bonus Act is more prevalent in small
companies as compared to big players like McLeod Russell, Tata tea
etc. Now somehow the situation is improving because of political

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awareness, active labour union as well as education. Now government
paid more attention to this kind of labour issues. One more reason the
“ATTSA” (All Assam tea tribe student union) student union of tea
tribes also make aware about their right of the labours. The branch of
Assam Chah Mazdur Sangh-AMCS (a state body of labour unions)
also helped to improve the situation.

More other example of violation labour law is also available in this

particular industry.
WELFARE MEASURES-The management gives less attention to
safety and welfare measures of the employees. They live in very
unhygienic condition which sometimes led to cause disease like
diarrhoea and cholera. The company health system has completely
collapsed. There are dispensaries and garden hospitals, but as the
workers themselves say, for ‘treating cuts and wounds, distributing an
all-purpose red mixture and even expired medicines’.
EQUAL REMUNARATION ACT- According to the Act the
employee has to pay of equal remuneration to men and women
workers and to prevent discrimination on the ground of sex against
women in employment. But in the tea plantation industry, it is the
women who are in majority have been the prime target of deprivation
and exploitation. They were paid less than the men. They have been
subjected to long working hours and heavy workload. Even the
pregnant women are not spared from activities like deep hoeing. The
profit-hungry industry has been slowly marginalising the women.
CONTARACT LABOUR ACT- Contract labour is mostly prevalent
in tea plantation industry. Out of 1.2million labours 30% are working
on contract basis which means fewer amounts of wages & facilities.
For the abolition of contract labour or implementation of Contract
Labour act unions are working but still it has no worth.

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NO PAID LEAVE- For the labours of tea plantation industry Sunday
is a weekly off day but for which they don’t get any wage. So
it is also a violation of Labour low.
Challenges- There are some challenges which make the Labour Law
implementation tough in the Tea gardens.
1. Unaware about the law-as the most of the labour are illiterate they
don’t have any idea or knowledge about the law.
2. Huge number of tea garden-there are more than 850 established tea
estates and more than 2500 tea gardens. So it is quite impossible for
the authority to keep a vigil above all of those.
3. Sometimes the unions which are for the protection of the
employees right works for the management for the sake of money and
personal benefits of its leaders.
4. A huge number of employees-directly or indirectly more than
15, 00,000 employees work this sector and it is the 2nd largest after
Indian Railways.
So as long these challenges will be there it is not possible to
make the Labour Law fully success. For fully implementation of
Labour Laws that government and management help is must needed
along with the awareness of people.