ITA wants productivity to be linked to wages

The Indian Tea Association (ITA) has recommended restructuring of labour laws with an emphasis on productivity.

The association has called for linking of wages with productivity as is done in Kenya.

ITA has further clarified its stance, "We do not advocate paying labour less, but, labour must produce more."

According to ITA, India would have to address the issue of high cost of production. Cost reduction would have to be undertaken for enhancing competitiveness of Indian tea in the export market and for the survival of the tea industry. "Need of the hour is to increase productivity both land and labour" mentioned the status paper.

Cost reduction would enhance competitiveness of Indian tea in the export market, combat threat of imports for domestic market in the liberalised WTO era and take on internal competition from small growers and bought leaf factories.

Labour accounted for almost 50 per cent of the cost of production. ITA has suggested flexibility in deployment of labour in alternative avenues of employment and diversion or reduction of social cost as remedial measures.

Average productivity of te estate labour in India was significantly lower that of competing countries like east Africa, Indonesia or Vietnam.

ITA has sought assistance of state and central governments on the labour issue. To increase land productivity ITA was in discussion with Tea Board and government of India for some assistance towards increase in orthodox production and boosting in replantation activities.

Further, for increasing labour productivity, the industry was in discussion with the government and unions to go for piece rates system in the form of productivity linked wages instead if traditional time rated system.