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Tata Tea appeal to unions on NIPO recast

Our Special Correspondent

Assurance on protecting service conditions

KOLKATA: Tata Tea has sought the co-operation of the Assam Chah Mazdoor Sangha and the Assam Chah Karmachari Sangha, urging them to prevail upon the workers at its Assam gardens not to be misled on the issue of equity participation in the proposed new company which will take over its North Indian Plantation Operations (NIPO).

The appeal assumes significance in the context of the unwillingness of a section of the workers in Assam (where 20 out of the 24 estates under NIPO are located) to pick up equity in the new company, Amalgamated Plantations Pvt Ltd (APPL). The transition is effective April 1, 2007, subject to the requisite approvals. Amid reports linking the workers' refusal to their fears of being pushed out of the ambit of the Plantation Labour Act (upon becoming shareholders), a company release sought to assure workers that their service conditions would remain unchanged under the new arrangement.

Workers and the staff were also being given interest-free loans to participate in the equity subscription. About 30,000 workers are involved in NIPO with an annual tea output of 35 million kg.

The release said that Tata Tea and Tata Investment Corporation Ltd will also participate substantially in the new company's equity, as will the World Bank arm International Finance Corporation and Infrastructure Leasing and Financial Services.

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