Unions oppose Tata Tea's plans to merge estates

GUWAHATI/KOLKATA: Tata Tea’s decision to divest its North India Plantation Operations (NIPO), comprising 25 tea estates in Assam and West Bengal into a new corporate entity, has run into opposition in Assam. Following an incident involving labourers, a lockout notice has been put up at the Borjan Tea Estate.

On Tuesday, workers gheraoed general manager of Borjan Tea Estate in Golaghat district of Upper Assam after the management put up a notice. The notice offered loans for voluntary subscription to the equity of the new plantation services outfit proposed to be set up.

Incidentally, Tata Tea proposes to hold a 20% in the new entity. Additionally, International Finance Corporation (IFC), Infrastructure Leasing & Finance Services (IL&FS), Globally Managed Services (GMS), corporate professionals and employees of NIPO are also due to participate in its equity. The superintendent of police of the district, Mr Rana Bhuyan told ET: “At present, the situation is under control.”

Mr Bhuyan said that trouble had erupted after a notice pertaining to the disinvestment of NIPO by Tata Tea was put up. Nearly 1,500 labourers of the garden gheroed the manager’s office and reportedly manhandled him and smashed windows. The Assam Tea plantation force personnel had to fire.

An FIR has been lodged at the Golaghat police station regarding the incident. The workers apprehend that they would lose their claim on bonus once the new model is implemented. Assam Cha Mazdoor Sangha (ACMS), one of the most powerful labour unions has, however, stated it has no problem with the new model if the workers are willing to accept the shares of the company.

Reacting to the developments, Tata Tea said in a statement on Wednesday, “A section of estate workers and outside elements protesting against a notice put up by the management of the Borjan Tea Estate assaulted the manager of the estate on March 20, 2007. Consequently, this has led to a law and order situation. The notice offered loans for voluntary subscription to the equity of the new organisation for plantation activities.

Further, the notice stated that all agreed terms of employment, wages, provident fund, gratuity and benefits would continue in the new entity as existing. While workers in most estates welcomed the proposal, Borjan saw resistance. Subsequent to the assault on the estate manager, security forces from the civil administration established control over the environment. A lockout notice was put up late last evening in view of the prevailing situation.”