Planters expect bonus negotiation to go smooth this year

SILIGURI: The process of annual festive bonus negotiation between tea planters and workers, that always rides on a long discussion, debate or conflicts of interest, is likely to get settled smoothly this year. Trading arena of West Bengal tea belt is waiting for the negotiation that significantly influences festival season market of entire region.

The negotiation process between all major planter's organizations and trade unions involving over 200 organized gardens and 3.5 lakh workers is going to begin on 21 stSeptember this year. Normally, the gardens are divided into four groups based upon their financial performance and they pay bonus at four different negotiated rates within the statutory range of 8.33% to 20%. But since 2011, both sides are accepting 20% bonus with few exceptional cases of relief on this percentage decided on case to case basis.

"This year also, it cannot go below 20% . In addition, we want ex-gratia payment," said Mr. Samir Roy, Convener of Defense Committee of Plantation Workers Rights, a major conglomeration of tea trade Unions.

"It is indeed tough to straightway accept that," said Mr. Kalyan Basu, Secretary General, Tea Association of India. "Production cost is around 92% of our operational cost. That has gone up for 20% due to extensive price hike of input items including power. In addition, prolonged drought followed by uneven rain fall hampered production volume too. The marginal gain in price realization is not enough to compensate these losses. Many of our member gardens are running at heavy loss," he explained.

But unlike a long series of marathon negotiation meetings and hard tug of war seen in recent past, trade union leaders as well as tea planters, all were found optimistic about a smooth negotiation this year. "We are living with tough situation since long. We will stretch to the fullest for smooth negotiation," said Mr. Basu.

"Tea bonus is very important ground level festive season economy builders for this belt. It determines trade of festive season low cost items in rural markets that in turn influences premium sector markets at bigger towns," said Mr. S. Bose, senior member of, Forum of Trade and Industries of North Bengal. As per estimation, around 100 wholesalers and 10,000 retailers in north Bengal form the low cost festive season readymade garment market of around Rs 150 crore.