Dibrugarh, Nov. 3: The decision by Tata Tea Limited to float a separate plantation company, which would bring under its ambit all its 24 gardens in Assam and Bengal, hit a major hurdle today.

The two major trade unions representing employees and labourers have put their foot down, demanding a written undertaking from the company that there would be no retrenchment.

The two unions — the Asom Chah Karmachari Sangha (ACKS) and the Asom Chah Mazdoor Sangha (ACMS) — were invited by the company today for a discussion at the zone 1 office of the Assam Branch of the Indian Tea Association (Abita) here.

The company has 20 tea estates in Assam and four in West Bengal. It has decided to form a new company, the North India Plantation Operations (Nipo), and allow participation by private players as well as workers, who will hold the company’s shares.

The new company will become functional on April 1, 2007.

Tata Tea will only hold 20 per cent of the total shares. The rest will be held by International Finance Corporation, Infrastructure Leasing & Finance Services and Globally Managed Services.

“On paper, the idea looks very good. But we harbour some doubts, because of which we have sought some clarifications from the company,” ACKS general secretary Girish Chandra Borpatra Gohain said.

He added that the ACKS had submitted a list of queries to the company’s representative on service conditions and adherence to all existing agreements signed earlier with the management.

ACMS president Paban Singh Ghatowar welcomed the decision taken by the company to allow workers’ participation in management.

“We have also sought a written assurance from the company that no worker would lose his or her job when the new company is formed. The company will have to clarify all these matters,” Ghatowar said.

At a news conference recently in Guwahati, Nipo vice-president Dipankar Borah had said the divestment should not have any adverse impact on the welfare of the employees and that workers’ interests would be fully protected.