Munnar tea garden workers script remarkable turnaround story

Munnar (Kerala), Dec 17 (UNI) In a unique initiative in the crisis-ridden plantation sector in India, the workers of the tea gardens here have scripted a remarkable success story after taking over the ailing South India Plantation Operations (SIPO) of Tata Tea.

The Kanan Devan Hills Plantations Company (KDHP), in which 13,000-odd ordinary tea garden workers and other staff hold 70 per cent of the stake, was set up on April one, 2005 after the Tata Tea management made known their intention to exit tea plantations.

In a short span of one year, the new company has not only been able to wipe off the cumulative losses of Rs 100 crore of the previous company but also register a post-tax surplus of Rs 2.37 crore as on March 31, 2006. The company also declared a dividend of 14 per cent for its first year of operations.

It has made a pre-tax profit of Rs 5.3 crore in the first half of 2006-07, compared to Rs 1.3 crore in the same period last year. The company hopes to post a pre-tax profit of Rs 8.3 crore by the end of this year. However, a new proposed wage revision notification could impose a liability of over Rs six crore and cut the profits, KDHP Chairman Joy Joseph told a group of visiting journalists.

''This is a story of vision, courage and leadership blended with innovation, teamwork and collective effort,'' he added.

According to Mr Joseph, this is the first time in the history of the plantation sector in India, which has so far been the bastion of large corporate or small grower holdings, that workers came forward to take over a company to save their livelihood and the company's dwindling fortunes.

Ascribing the remarkable turnaround to increased productivity of the workers, KDHP Managing director T V Alexander said that the average tea leaf plucking per worker had climbed from about 25 kg per day earlier to 40 kg now.

''There is a sense of participation and ownership among the workers. They know that their hard work will result in more money in their pockets,'' said Mr Alexander.

Agrees Mrs Chandra, a plucker working in the tea gardens for the past 17 years, who was nominated to the KDHP Board of Directors as a representative of the workers.

''Earlier, we had nothing to do with profits or losses of the company. But, now, there is a greater sense of responsibility and involvement in these matters,'' says Mrs Chandra.

She said her presence on the Board had also helped her to highlight several issues concerning the workers, such as timely payment of incentives.

Tata Tea, which still holds a 15 per cent stake in the KDHP had also helped to put the new company on its feet by making a VRS offer, which was taken by about 3,000 workers. Tata Tea also continues to run social welfare projects for disabled children of tea garden workers such as a special school and vegetable dye, paper making and strawberry preserve units.

The trade unions, which were initially sceptical of the proposed worker buy-out plan, had later come around and cooperated fully with the changeover, said Mr Alexander.

Not resting on its laurels, the worker-owned KDHP is now exploring niche areas such as organic tea, flavoured tea and speciality teas such as 'white tea', which sells in the export market at around Rs 1,500 to Rs 2,000 per kg.

Under the company's replantation programme, in which two per cent of the total estate area is to be replanted every year, about ten hectares are being set aside for speciality tea next year, Mr Alexander said.

The company also proposes to tap non-tea areas such as medicinal plants cultivation, horticulre and floriculture as well as plantation tourism.

UNI ARC DK1514