The Hindu : Kerala News : New firm holds hopes for Tata Tea workers

Online edition of India's National Newspaper
Sunday, Apr 03, 2005

Kerala

Kerala

New firm holds hopes for Tata Tea workers

By C.J. Punnathara

MUNNAR, APRIL 2. For 38-year-old Subbulakshmi of Mattupetti tea estate, the world had hardly changed despite momentous corporate changes in the Tata Tea estate where three generations of her family have worked.

But, with the establishment of a new company, Kannan Devan Hills Plantation Company Limited on Friday, the 12,770 Tata Tea employees spread across 16 estates in and around Munnar can have a stake in the plantations they were working in. However, Subbulakshmi said: "They have said that we will be entitled to shares in the new company. I am more reassured by their promise of continuity in job and increase in wages for increased output."

Buying shares

"I have been convincing everyone about the benefit ofbuying shares in the new company," one of the field staff, S. Gurudas, said.

When Tata Tea issued shares to its employees 20 years ago, Mr. Gurudas took up the offer and emerged richer from the experience. He still retains those shares that have appreciated in value several times over.

Most of the workers who crowded near the gates of the Mattupetty estate prayed for the welfare of the new company and for their own well-being. Velladurai, Ponnamma, Muniaswami and others who had gathered have decided to subscribe to the shares. Each of the workers will be entitled to 300 shares. The new company will also offer them an advance to purchase the shares. The amount could be repaid in easy instalments.

Despite the militancy of labour in the State, there has been little resistance from workers to the transfer of Tata Tea employees to the new company. Most of them are more interested in the stability of work; they perceive the change in the company's status as an incidental development.

The trade unions are circumspect. "Everything will now depend on how well the new company performs," M.Y. Ouseph, leader of the All India Trade Union Congress said. If the company does well, it will be good for everyone and much will depend on the new management — on how they are able to cut cost without reducing wages. Increase output not just by making the workers toil more, but by increasing productivity, he said. The well-being of the new company is the hope and prayer for almost everyone who has a stake of Munnar. Said P.C. Binoy of Isaac Residency, one of the oldest resorts in Munnar: "Tata Tea had taken a lead role model in ensuring that the development of Munnar was done in a more systematic and organised manner and we hope that the new company will be able to do the same."The new company is busy developing a business model for its survival and growth. .

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