In a recent development that has stirred debate in Assam's tea industry, the Assam Tea Employees' Provident Fund Organisation (TEPFO) has suggested selling tea gardens currently managed by Andrew Yule & Co. Ltd., a central public sector undertaking (PSU). This proposal comes amidst growing financial challenges faced by the company, which oversees between 10 to 15 tea gardens in the state.
The financial struggles of these gardens have become increasingly apparent, with reports of delayed wage payments to workers. Terash Gowala, Vice Chairman of TEPFO, addressed these concerns in a press conference outside the Assembly on August 28. He acknowledged the possibility of private entities acquiring these gardens, framing it as a potential solution to the ongoing management issues.
Gowala's stance on the matter is nuanced. While he sees potential benefits in private ownership, particularly if it leads to improved garden management, he also voiced apprehensions about possible land misuse. His primary concern lies in safeguarding the interests of the tea garden workers and their families, emphasizing the need to maintain the land's original purpose.
The TEPFO's proposal isn't occurring in isolation. It follows a formal communication from Assam's Chief Secretary, Ravi Kota, to the Union Ministry of Heavy Industries. Kota's letter, dated August 24, paints a grim picture of the financial distress plaguing Andrew Yule & Co. Ltd. The company's struggles are far-reaching, affecting not just its operations but also the livelihoods of approximately 8,000 workers and their families.
Kota's letter reveals additional complications. The company's credit rating has taken a hit, making it challenging to secure loans. Considering these issues, the Chief Secretary has proposed several potential solutions, including seeking a soft refundable loan, exploring asset monetization, or considering the liquidation of government holdings.
The gravity of the situation is evident in Kota's words: “Given the severity of the situation and its potential impact on Assam, I urge your intervention... Government of Assam is deeply concerned about the potential repercussions and seeks your prompt support in addressing this critical issue.”
However, not everyone views the potential sale of these tea gardens as a positive step. Human rights activist Allen Brooks has voiced strong opposition to the government's approach. Brooks argues that the move towards disinvestment is driven by a “hidden agenda” that prioritizes private interests over the welfare of workers, particularly those from the Adivasi community.
Brooks points out what he sees as a contradiction: despite Andrew Yule & Co. Ltd.'s history of growth and profitability, the government appears intent on disinvestment. He criticizes the lack of substantial government support since 2007 and highlights the removal of protective laws that previously shielded the company from disinvestment.
The potential human cost of this decision is a key point of concern for Brooks. He warns of dire consequences for thousands of workers, including unpaid wages and increased labour unrest. The situation is further complicated, he says, by ongoing challenges in the tea industry, such as crop losses due to floods and pest infestations.
Brooks also draws attention to the demographic makeup of the workforce, noting that a significant number of tea garden workers from the Adivasi community are Christians. He expresses concern about the lack of representation from these marginalized communities in higher positions within the company.
The Assam government awaits a response from the Union Ministry of Heavy Industries regarding the proposed measures for Andrew Yule & Co. Ltd. Meanwhile, tensions continue to rise in the affected tea gardens, with workers staging frequent demonstrations over delayed payments and statutory dues. Local authorities are on high alert for potential labour unrest.
