Guwahati, March 31: Tata Tea today put all speculation to rest over the new company it is floating in Assam and West Bengal with a large number of employee shareholders.

The company said service conditions of workers and employees in the new company, Amalgamated Plantations Private Limited (APPL), would be fully protected.

APPL comprises 20 tea estates in Assam and four in West Bengal. It will come into existence tomorrow, subject to requisite approvals from the courts, shareholders and Sebi.

APPL has been created by restructuring North Indian Plantation Operations (NIPO). NIPO vice-president Dipankar Borah today confirmed that all management staff and employees and workers involved in plantation operations would be transferred to the new company and their service conditions would remain unchanged.

This clarification should put a lid on the discontent simmering in certain quarters.

The company has a workforce of 24,000 in 20 gardens of Assam and produces over 25,000 million kg of tea annually. “We have requested the Asom Chah Mazdoor Sangha (ACMS) and the Asom Chah Karmachari Sangha (ACKS) to prevail upon all Tata Tea employees in our Assam plantations not to be misguided, misinformed or misled by anyone on the issue of equity participation and the future well-being of the new company. Tata Tea and Amalgamated Plantations Private Limited only recognise ACMS and ACKS as their union counterparts in Assam and would discuss or negotiate worker and staff issues, relevant to Assam, only with them,” Borah clarified.

The ACMS has also reaffirmed its commitment towards restructuring of plantation operations and has written to all its branches. “The management has entirely clarified the position and status of the new company, APPL. We have examined the matter and wish to advise you that our workers’ interests remain protected. The shareholding scheme is open to the workers for acceptance should they choose to participate,” a letter written by ACMS to its branch secretaries stated.

Borah, who will be the executive director of APPL, said the new company would allow employees to participate as owners and partner value creation for mutual benefit.

“Permanent employees will be encouraged to subscribe to shares of the new company and are expected to reap the benefits of being shareholders,” Borah added.