Beruflich Dokumente
Kultur Dokumente
CHAPTER IV
There have not been notable and specific academic works on TUs in
plantations of Kerala. Ramachandran Nair made a commendable attempt to
document the objective history of TUs in the plantation sector of Kerala based on
facts from available published works like souvenirs, reports, articles in periodicals,
and oral reminiscences of veteran TU leaders (Nair 2006).
The vigour seen among the workers at the all India level reflected in Malabar
regions of Madras Presidency of British India, and Princely States including
Travancore and Cochin. The history of TU movement in Kerala is inseparably
interconnected with social and political history. The social reform movements,
which took place in the state in 19th and 20th centuries, caused substantial
transformation in the social structure and change in attitudes. Moreover, the
traditional social structures and values were questioned and challenged by new
social forces opened up by growing capitalism. The people became increasingly
aware of their rights and began to acquire political consciousness also.
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improvement in the condition of work and wage. The passing of the Factory Act in
1913 and further benefits to labour, the social reformation movements, the miseries
of the labour due to poverty and unemployment during the first quarter of the 20th
century and further deterioration of the condition of labour owing to economic
depression of 1930s were the other major factors which developed the background
for the emergence of organized TU Movement in Travancore.
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A few words from the welcome speech done by P.S. Muhammed, the
President of the union, at the annual meeting in 1932 reflects the limitation of then
TU Movement in Kerala: ‘You should have devotion and affection to your
employers. You have to think always that the prosperity of employers means the
prosperity of yourselves also. The capitalists and workers have to live harmoniously
as body and soul or milk and water. The reason for the lack of peaceful atmosphere
in society is the absence of this harmonising spirit in both the parties’ (ibid, p. 102).
There were only five or six TUs in Kerala before 1934. The number
increased to 16 by 1935. The working class in Kerala became organized as a class
with the first All Kerala Labour conference held in 1935 at Kozhikode. The meeting
was organized by the Congress Socialist Party (CSP), the Left wing of freedom
movement, under the leadership of P. Krishna Pillai. The meeting, a landmark in the
history of TU Movement in Kerala, aimed at the formulation of a labour
organization for the entire working class in Kerala, and called for the launching of
union activities wherever TUs were absent. The conference passed resolutions
regarding working time and job security, and it demanded proper legislation. The
meeting asked the workers to take the leadership of freedom struggle and declared
that complete freedom should be the aim of freedom movement (Prakasam 1979, pp.
72–73).
The history of labour struggles in tea plantations in India has moved through
several distinct stages, from the sporadic and spontaneous outbursts to a mature and
well-organized TU Movement. Along with the development of plantations, the
miseries and pauperization of workers increased. A well-planned, cruel and
systematic mode of punishment was practised in plantations to ensure discipline
among workers and extraction of maximum surplus. In addition to the maintenance
of private army, the planters were assisted by the state machinery including police,
and the introduction of anti-labour legislations accelerated the vulnerabilities of
workers.
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rule of planters without a resistance. In fact they resorted to what some have called
‘every day forms of resistance’ (White 1986, pp. 49–63). The features of these
spontaneous and clandestine actions varied in time and place, but the common
thread was that they were largely defensive acts, demanding little or no co-
operation, and not challenging capitalist power and authority per se, but aiming at
altering the rules of the game in workers’ favour to ensure their individual survival.
These desperate acts were truly the ‘weapons of the weak’. The initial forms of
workers’ resistance were individualized acts of sabotage of company property, self-
injury and desertion. Planters categorized these acts as criminal offences punishable
by heavy fines, hard labour, physical torture etc.
The scale of desertion was the most unambiguous sign of the overall troubled
state of mind of plantation workers all over the world. In 1921, around 8000 workers
of tea plantations in Assam left their workplace, determined to return to their native
villages and many died from cholera and starvation. The management tried their best
to bring them back by promising better wages, but they preferred to go back to their
native place. Another group, consisting of 3000 workers was blocked by authorities
at Chandpur railway station. All the efforts of planters to bring them back failed and
the disappointed authority retaliated brutally. The sleeping group of workers,
consisting of men, women and children were attacked by armed police with
bayonets on the night of 20 May. Some of them were thrown into the river and died
(Sen 2005, p. 90).
The planters termed desertion, the commonest forms of protests in the early
stages of plantations, as ‘absconding’ and deserters were punished. Desertion
became rampant in the plantations of South India in the early 20th century due to the
ill-treatment of the workers by planters, poor rationing and harsh weather in the hills
(Raviraman 2002, p.30). But once caught by management or police, they were
driven back to the estates or jail and the punishment would be severe.
When the attempts to run away failed, workers began to respond to the ill-
treatment suffered from supervisory staff through other measures like self-
immolation, petty theft, sabotage etc. These modes of protests were taken by the
police as criminal acts and workers were treated brutally.
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The intensity of exploitation increased the profit in tea industry up to 450 per
cent, though the wage rate remained low. The recession followed by the First World
War and consequent rise in prices, particularly those of food stuffs and cloth, led to a
widespread discontent among workers. Price of food grains in India went up by
more than 90 per cent whereas in plantations it was 102 per cent. Tea workers began
to boycott the markets run by planters, resulting in riots, strikes and desertion.
Workers of Dumdum estate in Assam boycotted work against the distribution of
expired rice. Workers in Annamalai estate in South India boycotted work due to a rise
in the price of food materials. (Raviraman 2002, pp. 30–31; Sen 2005, pp. 86–90).
Anilkumar has portrayed the experiences of a dalit worker during the initial
stage of tea plantation in the Peermade region (2009). Yiramyav was born in 1896
near Kottayam, as the son of a pulaya couple. The ill-treatment of upper castes and
poverty forced his father to hand over the son at the age of 12 to a Kankany of
Cheenthalar Estate in Peermade by receiving 4 Chakram as advance wage. Then the
Kankany brought the boy to the estate, located more than 100 km from the native
place. Yiramyav spent 14 years in the estate. Long hours of hard work in estate
starting from 5 A M, ill-treatment on the part of Kankanies and management staff,
unhealthy climate and the fear of epidemics like plague, malaria etc. increased his
weariness. He was physically and mentally exhausted and wished to go back to his
native place. In spite of the awareness of probable brutal treatment on the part of
Kankany and management to absconding workers, Yiramyav escaped to his home.
His total saving, out of 14 years of work in plantation, was not sufficient to meet
even the expenses of return trip. It aggravated the miseries of the return journey.
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resistance’ and their experiences, later, paved the way for the emergence of
organized TU movements. Some incidences in early stages of plantations in the
study area, reflecting ‘every day forms of resistance’ of workers are discussed under
the section ‘Class Consciousness’ in chapter 8 of the study.
During the end of the 19th century, colonial dominance was one of the
reasons behind the regional imbalance in development. These variations were also
visible in the development of National Freedom Movement. Bengal, Maharashtra
and some areas of Madras were more developed than other parts of the nation.
Calcutta, Bombay and Madras were major centres of socio-political activities.
National movements in these regions, especially in Bengal and Maharashtra, greatly
influenced the movement in the nation as a whole. These political developments
provided the base to the working class in raising their demands for economic
benefits to a higher level (ibid, pp. 117–118).
The First World War made the life of working class miserable. War expenses
and other governmental expenses doubled, inflation became unbearable and
exploitation of working class increased. The economic strikes of workers that were
seen in various parts of the nation were not completely free from political
inspirations (ibid, pp. 163–164).
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As per the directive of the first All Kerala Labour conference, new TUs were
organized in various parts of Kerala. The formation of AITUC, the first central TU
in India, was an inspiration for organizing labour movement in various places. The
second All Kerala Labour Conference held in 1937 at Thrissur asked labour
organizations in Kerala to join AITUC. A major decision taken in the meeting was
the appointment of a committee to study the conditions of workers in plantations and
prepare a report.
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In the next few years, the labour movements in plantations were controlled
by the AITUC and INTUC led unions. In the later years of 1950s, UTUC (United
Trade Union Congress) a central TU linked to RSP (Revolutionary Socialist Party),
a left party, made its entry into plantations. In spite of the strength gained by TUs,
the living conditions of the workers remained deplorable in 1950s.
While the workers remained unorganized for decades, the planters have
always been well organized and powerful, both economically and politically (Rege
1950, p. 201). In 1857 the British merchants and trading houses started Cochin
Chamber of Commerce. Foreign companies namely Aspinwall, Piercelesley, Volcart
Brothers, William Goodacre, Pyari & Company, Madura Company, Harrison &
Crossfield and some indigenous enterprises like A. V. Thomas and Company were
the initial members of the Chamber of Commerce. As discussed in Chapter 2, most
of the plantations in Kerala came under the ownership of these companies.
The planters were aware of the threat of rising labour movements. During the
emergence of TUs, planters opined that TUs were unnecessary and union activities
among illiterate labour would do more harm than good. They even claimed that ‘we
are quite willing to develop on welfare lines without legislation’ (Baak 1997). In
1
Thiru-–Cochi is the Malayalam term used interchangeably with Travancore–Cochin.
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1937, a representative of planters informed the Travancore Sri Chitra State council
that he could represent the labour also and there was no need of a separate
representative of workers. He stated ‘sir, after working for nearly thirty years among
labourers, I know the inside of their minds very well’ (TSCSC 1937).
The planters feared the Communist Movement. Even before the formation of
the unit of Communist Party in Kerala and the launching of related radical TU
movements, the planters were cautious of such a probable challenge. Speaking at the
42nd Annual General Meeting of the UPASI in1935, F.E. James, representative of
planters in the Central Legislature, reminded participants: ‘It is essential that we
should now concentrate more fully on certain outstanding problems which are now
emerging and which affect our community as well as India generally…In the first
place, there is the emergence of radical movements such as communism’ (Ravi
Raman, 2010. p.139).
The planters affirmed that they would not tolerate the outsiders to lead the
workers. The Rege Committee observed: ‘If the workers in plantations are left to
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their own devices in the matter of organisation, not for another fifty years, can we
see a trade union coming up. Perhaps, it is this confidence that is at the root of the
planters insisting on the preclusion of outsiders’ (1950, p.184). The Royal
Commission on Labour also identified difficulties faced by outside TU leaders and
termed the strategy adopted by planters as short sighted and unwise (RCL 1931).
The Rege Committee stated that there were instances, wherein the outside
TU leaders were severely manhandled at the instigation of Managers of various
estates. Hence, the workers had to fight for the right of registered TUs to depute
outsiders and to include them in the execution committee. Even an established trade
unionist and leader of national movement V.V.Giri was prevented by management
from entering the estates in Annamalais. Later when he became the Labour Minister
with the Government of India, he visited estates in Wayanad in 1952. The planters
tried their best to influence the Governor and Chief Minister of the State of Tamil
Nadu to avoid his visit to the estates (Nair 2006, p. 524). The workers, who dared to
see the minister and shared their grievances, were dismissed by the Manager the
next day itself (Sivaraman 2013, p. 257).
One of the early leaders of AITUC in Mundakayam stated that even top TU
leaders had to seek prior permission to enter the estates. Sometimes the leaders
entered the estates by jumping over the gate and met the workers. In 1951 having
refused permission to enter the Meloram estate in Central Travancore, Rosamma
Punnoose and other TU leaders broke the lock of the entry gate and entered the
estate, leading to a police case (Kurian 2008). Rosamma Punnoose herself faced
another similar incident in an estate of Malayalam Plantations Company in
Peermade. After attending a meeting of workers, she was proceeding to the exit. As
per the order of the Manager, the gate was locked to prevent her from leaving the
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estate. On a complaint lodged by her, through a worker, police came and a case was
charged against the Manager for unlawful confinement (Nair 2006, p.539).
Managements tried their level best to avoid any attempts on the part of
workers or staff to come into contact with progressive thoughts. The children of
Indian staff in Kannan Devan Hills once visited a meeting organized around
Gandhiji. They were punished severely and expelled from the Munnar High School,
controlled by James Finlay and Company (TSCSC 1936).
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this respect: ‘During the year, the communist government has come in to power in
Kerala and we are all awaiting the future trend of events. It is too early as yet to
express any opinions, but from statements made by the various ministers, it would
appear that the planting industry is in for a very thin time, with their threats of
increased taxes, labour wages etc. and it behoves us all to follow the situation very
carefully, and to voice our protest, where necessary, through the proper channels’
(MPA 1957).
The planters lobby, powerful at the national level, successfully mobilized the
press, the ruling Congress party at the centre and other central authorities, and
defeated the efforts for nationalization of plantations and land reforms in Kerala
(Baak 1997).
The emergence of TUs in plantations did not prevent planters from the
process of proceeding with the consolidation of its strength as a ruling force. The
UPASI issued instruction to member planters to deal with labour issues by getting in
touch with concerned District Planters Associations rather than dealing
independently. In order to pacify and thereby retard the intensity of labour
movements, UPASI tactically formulated welfare committees in some estates
(Raviraman 2010, p.140).
Soon planters could recognize that these welfare measures and the strategies
of keeping activists outside were insufficient to prevent the rising tide of labour
movement. They adopted some more tactics like ill-treatment of TU activists,
employment of goondas and dependence on police action against TU workers. In the
late 1940s and the early 1950s, even staff members in various estates in Travancore
region became the victims of the ill-treatment of managements, and some were
transferred for their active participation in staff union, the Estate Staff Union of
south India (ESUSI).
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Plantation Workers Union secretary Xaviour and some other union workers, and
brutally assaulted them in the lock up. Then the Police terrorized the workers’
families in the estate (Baak 1997, pp. 234–235).
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family house in plains had contacts with some communist leaders of Travancore
state. In early 1930s, he formed the union, The Sanmargodaya Coolivela Sanghom2,
for plantation workers around Mundakayam (Prakasam1979). There is no evidence
showing that the union was either registered as a TU or developed as a notable
labour movement. However, this collectivity of workers might have inspired TLA
and Left activists to opt for Mundakayam as the centre for convening a meeting for
plantation workers in the state for the first time.
In 1948 INTUC was formulated in India by splitting the first central TU,
AITUC. In the post-Independence period some eminent leaders of Indian National
Congress (INC) concentrated on TU activities by resisting Left TUs and organizing
workers separately under its banner. Since AITUC and UTUC were facing
repressive measures of the state during the ban period, INTUC became a resort to
the workers, to some extent, for materializing the welfare measures incorporated in
new labour legislations. INTUC made use of the new political circumstances and
widened its base. During this period, the plantation sector was brought under the
definition of industry in the Industrial Disputes Act 1947 through an award given by
the Labour Appellate Tribunal, Bombay. The award was given on an appeal filed by
Vellanikkara and Thattil Estate Labour Congress, a union in Thrissur district led by
INTUC leader K.Karunakaran. The intervention of the Government of Travancore–
Cochin in the case, ensured by Karunakaran, was helpful for obtaining such an
award.
2
Sanmargodaya Coolivela Sanghom means workers organization for moral excellence. It reveals
the nature of activities the union.
3
Interview with C.A.Kurian, one of the pioneering TU leaders in the study area and the present
President of the state unit of AITUC.
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Though declared illegal in 1948, the AITUC tried to continue its activities in
the state by developing new organizational forms like United Workers Union in
Feroke, Workers’ committees in Alappuzha and Cashew Workers Council in
Kollam. In the early months of 1951 several TU leaders were released from jail.
Then AITUC and UTUC called for a joint movement of workers. The general
election in India in 1952 elected senior Left TU leaders like A.K. Gopalan, P.T.
Punnoose and N. Sreekandan Nair to the Parliament. Eminent AITUC leaders in
Malabar like K.P. Gopalan and C.H. Kanaran were elected to the Madras legislative
Assembly. T.V.Thomas, R. Sugathan and C.G.Sadasivan, the senior AITUC leaders,
and UTUC leaders like T.K.Divakaran became members (MLAs) to Thiru-Cochi
Assembly. In 1951, the Parliament enacted the Plantation Labour (PL) Act. In 1952
the ban on progressive movements was lifted. All these developments paved the way
for the strong revival of AITUC in plantations (Prakasam 1979, pp.198–227).
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Seven workers had to sign the bylaw for registering a union and it was very
difficult to identify this minimum number of workers, as the workers, especially
Tamil workers, feared the probable retaliation on the part of management for the
same. Social awareness and literacy level were so poor among Tamil workers that it
was more difficult to organize them during the initial stages of TU movement. For
example, though the major part of the labour force was made up of Tamil workers,
only one out of seven workers who signed the bylaw for the registration of HPL
union was Tamil speaking. Moreover, majority of workers, then and now, belonged
to scheduled castes, but only one worker from those castes came forward for the
registration of the union (ibid).
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As the TUs began to retaliate against the cruelties, goondas and Management
personnel, planters tried to discourage the TU workers and weaken the labour
movement by registering criminal cases. During this period Devasikutty faced
criminal proceedings in 13 criminal cases, related to TU activities. Since the wage of
workers was very low, it was difficult to raise fund for running the cases. TU leaders
faced serious financial difficulties to continue activities. Sometimes they conducted
dramas and other art programmes for raising fund for union activities. One day the
general secretary of HPLU, N. Pachu Pillai disappeared. The fellow workers in the
union believed that he had absconded because of financial liabilities, caused by
union activities.
Thus TU movement grew steadily in tea estates in the study area. Following
AITUC and UTUC, the Congress party linked INTUC started functioning in the
study area. In a bid to avoid the spread of radical, militant Left TUs, planters created
favourable atmosphere for the growth of INTUC in some estates. Planters’ control
and patronage over INTUC affiliated unions in plantation sector was not a unique
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In 1947 INTUC was formulated in India by splitting the first central TU,
AITUC. In the post-Independence period some eminent leaders of Indian National
Congress (INC) concentrated on TU activities by resisting Left TUs and organizing
workers separately under its banner. In plantations of Kerala INTUC was introduced
during a favourable period, 1946–1952, while AITUC was banned and could neither
undertake day- to-day activities in estates, nor utilize the favourable political climate
created by Independence.
In the early 1950s itself INTUC could make strong base among tea workers
in Munnar in Idukki district under the leadership of B K. Nair and K Karunakaran.
As stated earlier, managements were helpful for the growth of INTUC. The
managements tried their best to marginalize AITUC and UTUC, while recognizing
INTUC and providing it an authenticity by collecting the monthly subscription
amount of union members out of their wage, and handing it over to the union
officials. In spite of the theoretical and organizational clash with AITUC, and
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Following are some of the agitations and incidents during initial stages of TU
Movement in tea plantations in Central Travancore area, which reflect the hardships
faced by the Movement in its earlier stages, and their resistance.
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lock and enter the estate. The Manager of the estate lodged a complaint against the
leaders in the Police Station. However, the Sub Inspector of police agreed with the
version of the leaders that they had the right to enter the estate as part of union
activities (Kurian 2009; Nair 2006, p 539).
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worsened the situation. The planter adopted cruel repressive measures to prevent
workers from joining the union.
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Planters, state officials and labour interpreted the events differently. Planters
alleged that the AITUC used the strategy of terrorism for the success of the
unwanted strike and the state government led by Communist Party supported their
illegal acts. The leading newspapers in the nation generally agreed with the
allegations raised by planters against AITUC and the Communist Party. But S.
Govinda Menon, Revenue Board Member, who investigated the incident, reported
that the English personnel of several estates failed to reconcile themselves to the
changed post-Independence political conditions. He blamed the Management for the
hostilities and considered the workers as victims (Baak 1997).
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AITUC to continue the strike. Sensing possible victory of the strike, the planters,
INTUC, Congress Party and the press made a concerted move against the agitation.
But the state government led by Communist Party considered the problems of labour
from a different angle. The union alleged that central police cunningly intervened in
the agitation and the action of shooting was part of anti-Communist strategy of
planters.
Some eye witnesses and workers, who were also shot at, stated that central
police men, deputed to counter the agitating workers, deliberately and brutally
intervened in the confrontation and the shooting was not an act of self-defence of
police, but an action to create a fearful atmosphere in estates, to create a demand for
the intervention of the central government. On 27 October, the President of UPASI
telegraphed the central government that the situation in plantations in Kerala was out
of control, and therefore an immediate intervention on the part of the central
government was indispensable. The central government took up the matter with state
government. Finally, The Communist Government in Kerala unwillingly persuaded
the AITUC in Munnar to stop the strike and subsequently the union called off the
same (ibid, 1997).
The ultimate result of the strike was that planters successfully mobilized
press, the Congress Party and the central government to win the battle against both
the Communist Party and its labour movement (ibid, pp. 260–273). Later, the
Chairman of Association of Planters of Kerala (APK) formally appreciated the press
for its generous cooperation rendered during the period of strike. The outcome of the
strike was highly disappointing to AITUC and it had to move back several steps.
Numerous active workers in the union were dismissed or suspended from service.
The militancy and radical nature of the organization was muted (Kurian 2010).
Though the outcome of the strike was temporarily beneficial to INTUC in the
organizational sense, in a broader sense, the failure of the working class in the
capital–labour conflicts would have serious long-term impact on labour movement,
whether Left or Right.
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It is noteworthy that even after the split in the Communist Party in 1964, the
AITUC could go ahead as a single union till 1970 due to the vigilance on the part of
its leaders in maintaining working-class solidarity. But it could not be maintained
for a long period, and finally it split into two unions in 1970. Actually, an internal
fight had been going on in AITUC affiliated unions, in various sectors including
plantation, since the split in the Communist party. Leaders, who had been working
together for decades, fought for ensuring dominance in affiliated unions and fighting
over possession of office buildings and other assets.
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committees. Workers’ demonstrations were held at taluk centres. The strike came to
an end after 38 days when the state government issued notification by re-
ascertaining wage and other benefits of workers (Gopi and Kunnathu, (2006),
pp.120–123).
In October 1969, the CPI (M)-led ministry in Kerala lost majority in the
Assembly and CPI shifted to the Congress-led front. Then a government came into
force with the CPI leader C. Achutha Menon as Chief Minister. On 21 March 1972
tea plantation workers of Kerala observed a token strike demanding 12.5 per cent
bonus. Management agreed to settle the issue by giving 10 per cent. There was
another strike in plantation sector on 01 August 1974 for the implementation of new
DA rates and minimum wage as suggested by the state government.
The employers argued that with the coming of the progressive Indian
constitution, the welfare of workers became the responsibility of the state. The cost
of running estates was becoming unbearable and therefore a lot of welfare
provisions incorporated in the PL Act could not be implemented. In 1973 the
government formed a Plantation Labour Enquiry Committee to look into the matter.
As the functioning of the committee was progressing, Emergency was declared on
25 June 1975. Strikes and labour agitations were banned. Thus, many TU leaders
could not appear before the committee and present the statements.
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against TUs. In Kerala numerous TU leaders, especially of CITU, were either jailed
or forced to go underground. K. Padmanabhan, general secretary of Kerala
Plantation Labour Federation (CITU) and several senior leaders of CITU in
plantation sector were jailed. Naturally, the Emergency period in Kerala became
relatively favourable to the functioning of AITUC and INTUC, unions linked to
ruling parties of the state, and both the unions could extend their roots deeper into
the plantation sector.
The split in the Congress Party in Kerala into Congress (I) led by
K. Karunakaran and Congress (A) led by A.K. Antony also caused a corresponding
division in INTUC. Then the functioning of two unions of INTUC in a single
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The economic crisis in 1980s adversely affected the price of tea. Thus the
initial years of 1980s witnessed a crisis in tea industry in India leading to lockouts in
some estates and non-payment of wages to workers. TUs assessed the general
situation in estates as not conducive to struggle (AIPWF 1982, p. 67). Around 38
estates were closed or locked out in India and workload was increased in all states
along with cut in fringe benefits, DA and bonus. There were lockouts in five estates
in Kerala. When lockout was declared in Arappetta estate in Wayanad, a sympathy
strike took place involving 20000 workers of various estates in Kerala.
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Vazhoor Soman, General Secretary of HEL Union (AITUC), visited the police
station at Vandiperiyar. While talking to the leader, the Sub Inspector of Police, who
was alleged to have been receiving bribe from the planter, unexpectedly hit Soman.
The ear drum of the leader was broken and he fell down unconscious. The incident
was brought to the notice of the Kerala State Legislative Assembly, which was in
session. The Assembly discussed the matter and the delinquent Sub Inspector was
placed under suspension and transferred to a distant place (Soman 2014). The quick
response on the part of the Government shows the notable strength and capacity of
TU Movement, acquired by decades of continuous agitations.
The continuous efforts on the part of labour movement for the betterment of
wage, working conditions and living conditions of plantation workers began to yield
results during 1950–1957. The Parliament passed a comprehensive law for the
betterment of plantation workers. Corresponding rules for the implementation of the
Act were introduced in Thiru- Cochi state as Thiruvithancore-Cochi Plantation
Labour Rules and in Malabar area as Malabar Plantation Labour Rules for the then
Madras state only in 1955. This lethargy on the part of state Governments led the
workers to hold agitations for implementation of the benefits of the Act. Subsequent
to the formation of Kerala state, Kerala Plantation Labour Rules came into force in
1959.
As per the new Act, planters were duty bound to provide healthy working
conditions, medical facilities, child care and residential facilities to workers.
Moreover, the total working hours should not exceed 64 hours in a week; earned
leave became compulsory and children below the age of 12 years should not be
employed. The rules permitted outside TU activists to enter the estates and organize
workers. In fact, the demands, which had been raised by plantation workers in
Thiru-Cochi and Malabar since 1940 became the basis of welfare measures
incorporated in the PL Act. Though the historical demands raised by workers were
recognized partially in the Act, the powerful planters adopted all measures to
weaken the labour movement, which was continuously demanding the
implementation of the rules.
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Along with the state-wide agitations, unions very often engaged in issues that
developed in individual estates too. Such individual agitations for better wage,
working conditions and democratic rights led to the emergence of repressive
measures of planters, retaliation and militant action on the part of TUs, disruption of
law and order, consequent police action etc.
The structure of tea industry has become complex over the last three decades,
making the responsibilities of TUs too multifaceted. Unions, which revolve around
narrow goals, cannot respond effectively to new strategies adopted by business
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groups to extract maximum surplus value. They fail to satisfy the needs of changing
times. Two recent strategies adopted by big business groups in tea, in this respect,
are the withdrawal from lower segments of value chain and ‘Participatory
Management Model’.
The concept of value chain refers to the chain of activities from production to
consumption, engaging different stakeholders, who control and add value along the
chain. Tea value chain means the stages from cultivation and production of green
leaves. Value is added to the product at each stage of chain. Cultivation of green
leaves and manufacturing of black tea, sale in auction, buying, blending, packeting,
marketing, retailing etc. are different stages or segments of the value chain.
Blending, packeting, marketing and retailing are most profitable, which are
dominated and controlled by a few multinational companies, who in effect,
determine retail price and producer price, and dominate trade. At the same time
cultivation, manufacturing of black tea and auctioning are less profitable or non-
remunerative.
Thus firms in tea sector can be classified into different groups according to
their stakes in different nodes of commodity value chain. The firms with stakes in all
nodes of value chain, which are able to compensate losses, if any, in any of the
nodes with the help of higher value in other nodes, make better profit. For example,
AV Thomas group(AVT), functioning in the study area, run two types of companies
in the tea sector; one type cover the stages namely running of estates, manufacturing
of black tea and sale in auction; and the other type of companies deal with buying in
auction, blending, value addition, packeting, marketing and retail sale. First type of
companies has got stakes only in the lower value segments of the industry, and the
second type companies have stakes exclusively in nodes of higher values. Firms,
having stakes in segments with higher value, make better profit. But majority of
estates in the nation as well as study area operate only at nodes of lower values.
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The two biggest companies in tea sector of India, Hindustan Uniliver (HUL)
and Tata Tea practised the new business strategy of withdrawal from less profitable
segments of value chain. HUL sold its tea estates in North India. Tata Tea Limited
(TTL) held two groups of tea plantations in India, one in the northern region,
spreading over Assam and West Bengal states, and other group at Munnar, located
in Idukki district of Kerala. TTL handed over 16 estates and 15 factories, possessed
by it in Munnar hills in 2005 to the newly formed company, Kannan Devan Hills
Plantation Company Private Limited (KDHPCL), in which workers too became
shareholders.
As discussed above, big players, having stakes at all nodes of the commodity
value chain, cleverly withdraw from segments bearing lower margins. The way TTL
worked out its new business strategy was unique regarding the design of the new
business model, and the conditions of handing over of the estates to the new company,
framed in tune with its long-term business interest. It succeeded, to a great extent, in
obtaining the support of workers and public to the materialization of the new business
model, by projecting it as a worker friendly participatory management system. The
model was hailed by many as an amicable solution to the crisis in tea estates, ensuring
democratic participation of workers in management (Deepika 2010; 2012).
The conflicts between labour and capital in the areas of modern management
and business decision making is part of wider political and ideological struggle.
Hence, the practice of participation at various levels of management necessitates
theoretical clarity and political vision on the part of labour movement. The
participatory management model, proposed by TTL at Munnar, was a new
phenomenon in the tea sector of India. The Tata group had already practiced the same
business model in its plantations in Assam too. In addition to the concerns on financial
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viability and sustainability of estates, the model raised some crucial questions
regarding capital–labour conflicts: does the new model strengthen or weaken the
power of capital, or does it increase the rights of labour, or help only to accelerate
exploitation of labour? No readymade answers were available to TUs. The only option
opened to them was to evolve a position on the basis of theoretical clarity and examine
earlier similar experiences of workers anywhere else. But earlier experiences were not
sufficient for arriving at a proper conclusion. Furthermore, it seems that TUs have
neither examined the features of the model within the theoretical contributions
available, nor discussed them sufficiently at all levels of organizational structure.
Apart from the above two extreme Right and Left viewpoints, a pragmatic
approach to participation, depending on the concrete realities of the nation and
context, is more feasible. Workers’ participation in management and the demand for
the same have different meaning in different contexts, depending on the socio-
political conditions and the power of Labour Movement there. So both the decisions
to exempt the chance of worker control, alleging it is reformist, and to practice
blindly all forms of participation, without assessing its short term and long term
impact on capital- labour conflicts, are equally wrong.
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The participatory model in Tata Tea at Munnar was introduced not as a result
of any demands on the part of TUs for participation in management, as TU had
never raised such a demand. The company took initiative for the implementation of
the model as part of its global business strategy of withdrawal from the lower nodes
of commodity value chain in tea industry, and thereby shifting the burden of running
estates to the shoulder of workers. The terms and conditions of the transfer of estates
to the newly constituted company, its management structure and the nature of its
ownership were designed by TTL itself (Deepika 2010; Palanivel 2013).
As the estate land at Munnar was, by and large, leased one, Tata could not
have transferred the ownership of these estates to private parties. Only two estates,
Pallivasal and Periyakanal, have got valid title deed. All other estates are leased
land. It is worthy of thought that only leased estates were transferred to the new
company. All unions in Munnar directly or indirectly agreed with the conditions of
the settlement. One of the state office bearers of AITUC, Vazhoor Soman, who
resisted the package of new company as anti-labour, had to face disciplinary action
of the Communist Party of India (CPI) for taking a stand against that of AITUC and
the party (Soman 2014).
Moreover, the main intention of Tata Group behind the new business
strategy was to concentrate on branded tea globally. The company ensured
provisions in the new participatory model to continuously acquire sufficient quantity
of green tea leaves from KDHPCL to the tea factory, maintained till date by Tata.
Likewise KDHPCL supply black tea to TATA for its blending units. TTL has
entered into an agreement with KDHPCL, ensuring the supply of green leaf and
4
The mission started by the Government of Kerala in 2007 to evict illegal possession of
Government land by others in Munnar. See chapter 5 of the study for details.
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black tea from the latter. TTL did not hand over to KDHPCL the instant tea factory
at Munnar, which has an annual capacity to produce two lakh tonnes of black tea.
Furthermore, TTL retained the brand name ‘Kannan Devan’. The business of Tata in
tea, even prior to the introduction of KDHPCL, covering all nodes in the value chain
as a whole, was highly profitable. But the basic instinct of the capitalist is to
accumulate continuously or make more and more profit. Hence, Tata decided to
move back from cultivation and primary level production of black tea and focused
on branded business. Thus, the introduction of the KDHPCL, with the attractive
covering of ‘Participatory Management Model’, was the business need of Tata,
rather than a response to any demand of workers for democratic participation in
management or an effort of TTL itself to ensure the same.
A close watch of the management structure of the new company reveals that
the claim of TTL, that the ownership was transferred mainly to workers and majority
of shares are held by them is misleading. Share holding pattern of KDHPCL shows
that only 29 per cent of the total shares were allotted to Supervisors and Workers of
the company (Table 4.1). TTL itself keeps 18 per cent of total shares. Another
noteworthy fact is that workers pay their money to buy the share of the enterprise,
whereas the wealth of the enterprise has been created basically by workers
themselves. Hence, the crucial question is how far the participation of workers is
ensured in management.
Table 4.1
Share Holding Pattern of KDHPCL, Munnar
Staff of KDHPCL 8
Ex Management staff 6
Source: Compiled from details collected from IR Dept. KDHPCL, cited in Deepika 2012.
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The new model becomes advantageous to the top management to limit the
activities of TUs, surpassing them by exhibiting various advisory committees as
forums for grievance redressal of workers. The discussions of workers’
representatives in these forums are, by and large, harmless to top management.
Advocates of the new model assessed this change as a welcoming trend and state
that the workers, who had talked to management earlier only through TU leaders,
now had a direct voice and access to information from management (Deepika 2012).
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At the same time such discussions act as pressure exhaust valves in respect of
discontentment of workers to management. Accordingly, the model also as an
advance response system and precaution to the possible militant labour movement in
future against the new coercive participatory model.
The Director Board of the company, consisting of 11 members, has got only
one representative of the workers (KDHPCL 2015). Moreover the worker
representative was appointed only for a term of one year and thereafter substituted
with another worker. The worker representative is selected not by workers on the
basis of his/her leadership quality or capacity to represent them in the Board. The
management themselves claimed that worker representatives are selected only on the
basis of their performance in work in the preceding year. For example, Jaya
Pandiyammal, a tea plucker was appointed by the company as a member to the
Board for 2014–2015, because she was the person, who plucked the highest amount
of green tea leaves during 2013–2014.
When she was asked about her duty as Director Board member, she
answered that she attended two Board meetings. She did not know the actual
business went on, and she neither approached workers or union officials to
communicate the discussions in Board, nor the workers or union officials thought it
beneficial to approach her for collecting any information. Some top union leaders
had no knowledge of her (Jaya Pandiyammal 2015; Shaji 2015). Moreover, the
worker representative is not included in sub committees of the Board namely Audit
Committee, Executive Committee, CSR Committee and Share Transfer Committee,
whereas majority of Board members are made members of one or more committees
too (KDHPCL 2015).
Moreover, as part of the formation of the new company, the TTL could
downsize the workforce by around 50 percent through voluntary retirement schemes
and other measures. Certainly, labour has to bear that extent of hike in workload.
While many workers raised the money to buy shares by loans, the dividends and
other benefits are notably lower than that expected (Ravi Raman, 2010, p.167;
KDHPCL 2015).
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