Wage Payment Through Bank Not Possible: Indian Tea Association (ITA)

GUWAHATI: At a time when Dispur is directing the banking authorities to open accounts for each and every tea worker, the Indian Tea Association (ITA) has informed the Centre that payment of salaries/wages to workers through bank transfer is not possible in many gardens.

“Post-demonetization, tea estate workers had applied and opened bank accounts. However, many of the tea gardens in Assam and are located in far-flung areas and bank branches are located at quite a distance from the gardens. ATMs/customer service points have not been installed and it becomes difficult for daily wage earners to the banks for cash withdrawal,” a letter of ITA sent to the Finance Ministry on July 6, stated.

The letter written to Union Finance Secretary Subhash Chandra Garg by secretary general of ITA Arijit Raha, has said that in a tea industry, wage payment to workers is done on a particular day on a weekly or fortnightly basis. Banks located in tea garden areas do not have adequate staff to deal with thousands of workers at a time and service their accounts on a weekly basis, the letter said.

“Therefore, despite the best efforts of the management, payment of salaries/wages through bank transfer has not been possible in tea estates. Few tea estates where such Bank transfers had commenced after installing ATMs, had to revert back to cash disbursement under pressure from the operating Unions as ATMs/CSPs do not function properly due to poor internet connectivity in tea garden areas,” the letter said.

According to the letter the ITA has been engaging with the concerned State Governments for redressal of the issue. However, the pace of progress of the operating banks is slow and majority of tea estate workers have no access to banking facilities. Further, the temporary workers come from villages to tea estates also do not have access to banking arrangements and are insistent on cash payment of wages.

The total payout per year on account of wages for daily rated tea garden workers in Assam and North Bengal is approximately Rs 8,000 crore.

The ITA has also requested the Finance Ministry to exempt the tea industry from the Union budget’s proposal for two per cent tax deducted at source (TDS) on cash withdrawals drawals in excess of Rs 1 crore in a year from a bank.

Also Read: Gardens Must Ensure Personal Hygiene of Tea Pluckers: Indian Tea Association (ITA)