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Cashew processing operators are a worried lot. About 10,000 workers, comprising more than 95 per cent women, are demanding a wage hike. These workers are engaged in the processing units in and around Palasa and Kasibugga areas in Srikakulam district.
Palasa is the largest cashew production centre in Andhra Pradesh with about 200 processing units. "Every two years, there is a wage agreement between labour and the processing unit owners. But this year, the workers are demanding a hike of 75 per cent, which the management is not ready to accept," said Malla Srinivasa Rao, president, Palasa Cashew Manufacturers Association.
The association said it expected some positive development in this regard next week otherwise the operators would shut units from April.
In March 2011, Palasa operators closed their units for 21 days due to unsettled wage revision. The labour department had to then intervene, he added.
Palasa cashew operators pay workers Rs 150-200 per day depending on the work. "Workers' salary account for 12 per cent of the total production cost at present. This will go up to 15 per cent if we agree to their demand," he said.
There are 25-30 cashew processing units operating on the Orissa borders, some 7-8 km from Palasa. "These operators pay even less - Rs 125 per day to the workers. If we hike the wages here, we would not be able to compete with them," he added.
