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India: No Relief In Sight For Re-opened Gardens of Erstwhile Duncans | Press Relese PBCMS, Mar 27, 2022

27 March 2022

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Paschim Banga Cha Majoor Samity (PBCMS)

Press Release

[March 27, 2022]

  • Ownership issues remain unresolved and disputed in National Company Law Tribunal
  • New owners are not willing to give Saal chhutti (paid leave) or Gratuity
  • Records of past dues are missing

Paschim Banga Cha Majoor Samity (PBCMS) notes with concern the continued illegality in the ownership of gardens that were earlier closed and abandoned. Taking advantage of the helplessness of workers who have lived near-starvation level for years after owners abandoned gardens, new owners have come in after imposing stern conditions on workers, especially as regards payment of past statutory dues and replacement of workers who have retired.

In this context, we welcome the statement given by Shri Beccharam Manna the labour minister of West Bengal which has been printed in a prominent Bengali daily of North Bengal on 22nd March 2022. According to Shri Manna,” the main issue is whether the owner is running the garden legally after paying all the legitimate dues of the workers.”

Unfortunately, in a recent development with respect to the gardens of Duncans Industries Limited that have been re-opened, there have been some misconceptions and incorrect reports in the media. These reports are based on statements made by Central Trade Union Leaders at a recent press conference in Birpara Tea Garden. We give below some facts to clear these misconceptions.

Firstly, all Duncans gardens are part of the bankruptcy proceedings that have been filed against Duncans India Limited. The legal owner is now the Resolution Professional(RP) appointed by the National Company Law Tribunal (NCLT). The RP’s ownership has been disputed by the company that has now taken over these gardens and arguments on this matter are still going on in NCLT Kolkata and the Appellate Tribunal in Delhi. Despite this, these gardens were handed over to the new management through bipartite meetings between the management and the trade unions. Most of these agreements do not have authorisation of government agencies like the labour department or district magistrate. There is also no clarity whether the new management has got the lease of the tea estates from the government or whether it can deposit Provident Fund as the legal owner of these gardens. There is also no clarity regarding past dues of the workers, as to who will pay these – whether it will be Duncans or the new owner.

The reluctance of the new management to take any responsibility for the dues of the workers is also apparent from the fact that in gratuity hearings for Gairganda TG, the new company had given a letter earlier denying its responsibility to pay gratuity. On a hearing held on 25th March 2022 at ALC Birpara for 60 workers of Gairganda TG, also the management did not attend.

Secondly, it is being said that workers are satisfied with the new management. But this contradicts the recent developments in Nagaisuree, Kilcot and Bagrakote. The workers of Nagaisuree and Kilcot are unhappy and have been protesting against the management’s decision to grant them only 4 days of Saal Chutti (annual leave), on the grounds that they took over these gardens only 4 months ago. The reality however is that these gardens were with Duncans and were taken over by the new company with only a two days break in between. The workers have thus been working continuously and thus are entitled to two weeks of paid leave as per industry norms. Also, in the recent bipartite agreement, the management has promised to pay 40% of past dues on 24th December 2021, and another 40% during Holi, but no payment has been received by the workers so far. The workers of Bagrakote tea garden are also unhappy with the new management who claims that all records for the years 2014-15 are missing and is therefore refusing to pay the due amounts for that year.

We also have doubts about the sincerity to pay the dues of the workers by the management. Our fraternal union Paschim Banga Khet Majoor Samity (PBKMS) is a petitioner in writ petition (civil no. 365 of 2006) and contempt petition (civil no. 16 of 2012), in which the Hon’ble Supreme Court has appointed a one-member committee under the chairmanship of Justice A.M. Sapre(Retd) to scrutinise and verify the claims of the workers in 29 gardens. By the order of Justice Sapre, the verification of claims by the garden level sub-committee was started on 24th February 2022. In the gardens that were owned by Duncans, the new owner refuses to show records, often for the period 2001 to 2018. The same thing is happening in almost all the other gardens also.

Thirdly, there are also some reports that some Central unions are planning to go to the NCLT regarding dues of the workers. We welcome this move even if it is very late in the day, but would appeal that no duplication on work takes place as the fraternal union of PBCMS, Paschim Banga Khet Majoor Samity has already filed for the dues claims of more than 293 hundred crores of around 9000 workers of 8 Duncan’s gardens in NCLT.