World Bank probes Tata tea project over worker abuse in India
February 14, 2014 - The World Bank said on Thursday it was investigating claims of
labour and human rights abuses at an Indian tea plantation project that it jointly
finances with tea giant Tata Global Beverages in the north-eastern state of Assam.
The International Finance Corporation (IFC) - a member of the World Bank Group - said
its accountability office decided to probe the project, run by Amalgamated Plantations
Private Limited (APPL), after charities complained that tea pickers were being exploited.
"The Compliance Advisor Ombudsman (CAO) has announced an investigation into whether
IFC followed its policies and procedures in the case of APPL," said an IFC statement
emailed to the Thomson Reuters Foundation in response to questions. "IFC takes all
concerns in relation to its investments/projects that are expressed by stakeholders
and affected communities seriously."
Both Tata Global Beverages and APPL
have denied any violation of workers’ rights. APPL said it would extend full cooperation
to the CAO probe. "We at APPL look after our workers and are compliant with the law,"
Kaushik Biswas, APPL's company secretary, said in an emailed statement. "Wages are
paid as per industry agreements. Cash wage plus benefits total up to 189 rupees ($3)
per man day. Working hours are as specified in the Plantations Labour Act, 1951,"
he said. APPL was set up in 2009 to acquire and manage tea plantations previously
owned by Tata Global Beverages – which owns Tetley, the second largest tea brand in
the world. The IFC's $7.8 million involvement in the $87 million "Tata Tea" project
was aimed at promoting the idea of shareholder workers and helping to create more
than 30,000 permanent jobs. Tata Global Beverages took a 41 percent stake in APPL
and the IFC took 20 percent, with the remainder held by workers and smaller firms.
Three
non-governmental organisations complained to the CAO in February last year about alleged
worker violations in three of APPL's 24 plantations. The complaint cited long working
hours, inadequate compensation and poor health conditions, including the unsafe use
of pesticides. It said there is restricted freedom of association among workers and
barriers to voicing grievances. Productivity targets are so difficult to meet, it
said, that tea pickers engage other family members, including children, to receive
a single wage. The charities also questioned the share-buying program, saying workers
were being pressured into buying shares, often without proper information about the
investment risks. "We invite the investigation team to see with their own eyes that
nothing has changed on the plantations since the World Bank got involved," said Stephen
Ekka, director of PAJHRA, one of the charities which complained to the CAO. (Source:
Reuter)