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Tea firms struggle with bonus diktat; plantations financially incapable to pay workers

The decision was made at a meeting of the Consultative Committee of Plantation Associations (CCPA), the apex body of tea planters’ associations, held in Calcutta on Thursday

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Our Correspondent
Published 29.08.25, 11:42 AM

Tea companies in north Bengal, which are financially incapable of paying bonus to workers at the rate of 20 per cent stipulated by the state government, will inform the state labour department of their incapacity and also what they can pay.

The decision was made at a meeting of the Consultative Committee of Plantation Associations (CCPA), the apex body of tea planters’ associations, held in Calcutta
on Thursday.

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“Based on the advisory issued by the state labour department, tea estates which cannot pay bonus at the rate mentioned in the advisory will inform the state labour department about their financial problems and that they can’t pay that much,” said Prabir Bhattacharjee, the secretary general of the Tea Association of India present at
the meeting.

On August 22, Partha Biswas, the additional labour commissioner of the north Bengal zone, issued an advisory stating that tea estates based in north Bengal should pay a bonus at the rate of 20 per cent by September 15.

“It was a proactive and out-of-the-box move by the state labour department which left stakeholders of the tea industry surprised. Usually, the bonus rate is decided through bipartite talks among tea planters’ associations and tea trade unions. This move led to questions from trade unions about their role in collective bargaining,” said a senior tea planter based in Siliguri.

He said that every year, after the bonus rate was finalised through talks, a separate list of gardens that are financially sick is made. Bonus in these tea gardens are fixed at lower rates to give them some relief.

“The bonus rates then are fixed on a case-to-case basis. This year, we doubt whether there is any such option as a general advisory on bonus has been issued. We fear it can lead to problems in gardens that cannot pay bonus at 20 per cent rate. That is why these gardens will inform the labour department about their constraints,” the planter said.

Some tea planters believe that as the labour department has made the move, it should also shoulder the onus of resolving the bonus issue of financially weak gardens.

“Planters and trade unions are not left with much of an option after the state advisory. The department should address the situation immediately as not much time is left before the final date of bonus payment (September 15) stated in the advisory,” said another planter.

Small growers worry

The state advisory on bonuses for the tea estates has left small tea growers perturbed. In north Bengal, there are around 50,000 such growers who contribute over half of the tea produced in the state.

Every year, small tea growers pay their workers a lower rate of bonus than the
tea estates.

“The rates are decided through bipartite talks. This year, we will hold a meeting with the trade unions next week. Most growers are facing a crisis due to lower prices of tea leaves. Fortunately, we are not a party to the advisory issued by the labour department and hope the bonus rates will be fixed soon,” said Bijoygopal Chakraborty, secretary of the Jalpaiguri District Small Tea Growers Association.

On Thursday, growers held a meeting in Jalpaiguri on the bonus issue. “Most of us have expressed concern over tea leaf price. We will definitely pay bonus, but trade unions should also consider our reduced earnings,” he said.

Annual Bonus Tea Plantation Tea Company Tea Workers Labour Department
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