HOW MUCH COMPENSATION WOULD BE ENOUGH? CASE Of PESTICIDE APPLICATION WOrkErS IN ASSAM'S TEA PLANTATIONS

HOW MUCH COMPENSATION WOULD BE ENOUGH? CASE Of PESTICIDE APPLICATION WOrkErS

IN ASSAM’S TEA PLANTATIONS

kalyan Das*

The argument of this paper is that there is a need to compensate for the presence of occupational hazards in the job of pesticide application in tea plantations. The prevalence of a uniformed wage structure in the labour market regulated by the Plantation Labour Act, 1951, means that at present, there is no compensating wage difference for the workers engaged in risky jobs. One reason for this may be that the risk is not yet well perceived in the job of pesticide application. Although the law accommodates cases to compensate the workers from the visible impacts of physical injuries and death at work, yet it is likely that the impact of occupational hazards arising out of exposure to chemicals might not get captured, at least in the short run. In view of the prevailing constraints in this area, this paper arrives at a valuation of life (or compensating wages) by capturing the incidences of sickness and physical discomforts as well as the perceived risks at work for the workers engaged in pesticide application in tea plantations.

I. INTrODUCTION

The tea industry is a major livelihood provider in the economy of the state of Assam. This labour-intensive industry employed about 6,20,000 workers in 2006, which accounts for

49 per cent of the total labour employed in the tea plantation sector in India.1 The labour market in the estate sector of the tea plantations is regulated and the well-being of workers here is ensured by the Plantation Labour Act, 1951 (PLA, 1951). In addition, the security of the workers in the estate sector of tea plantations is ensured by one of the largest social security networks in the world—the Assam Tea Plantation Pension and Provident Fund Trust (ATPPPF).

Despite all the regulatory provisions, however, various studies and reports2 reveal that this prime livelihood sector lacks the implementation of labour standards. There are

multiple factors leading to the prevalence of poor labour standards3 in tea plantations, and a comprehensive discussion on these is not under the scope of this paper. The indications with regard to poor labour standards, however, reflect only one part of the deprivation in the plantation estates. One important issue that often does not come to light pertains to the work-related health hazards, mechanical injuries and death on duty of workers in this

The Indian Journal of Labour Economics, Vol. 55, No. 4, 2012

* Omeo Kumar Das (OKD) Institute of Social Change and Development, Guwahati; Email: [email protected]. This paper is based on the study ‘Valuation of Life in the Tea Plantation Labour Market of Assam’, sponsored by the V.V. Giri National Labour Institute, NOIDA.

636 ThE INDIAN JOurNAL OF LAbOur ECONOMICS

sector. Very limited information is available on these occupational hazards faced by the tea plantation workers. The issue of work-related health hazards in the tea plantations of India was, however, raised even in the 1970s. The working conditions of the workers engaged in pesticide spraying in the tea gardens of the West bengal sector were discussed and the state labour department had agreed to appoint a technical committee for enquiring into the existing service conditions and make the necessary recommendations for their improvement (basu, 1980).

Although the PLA, 1951, safeguards the well-being of the workers in the estate sector of the tea plantations, the Act is silent on the compensations for work-related injuries and death. At present, the plantation estates follow the Workmen’s Compensation Act, 1923, for determining the compensations for work-related hazards and deaths. The PLA, 1951, was reviewed in 1984 during a conference of labour secretaries of the states and advocated the need for additional safeguards for workers in the plantation industry in view of the

increasing use of hazardous chemicals in the latter.4 The Industrial Committee on Plantations was formed subsequently and it recommended amendment of the PLA, 1951, to ensure both welfare facilities as well as adequate safeguards against toxic chemicals that are being increasingly used in plantations. The Cabinet approved the proposal of the Ministry of Labour to amend the Act and the corresponding bill was introduced in the Parliament of India on 16 December 1988, but following the dissolution of the Parliament, the bill lapsed. however, efforts have continued over the past two decades to amend the PLA, 1951, and to bring about an enabling provision to prohibit and regulate the employment of women and adolescents for using or handling any hazardous chemicals (the process to amend the PLA, 1951, is detailed in the 38th report on the Standing Committee on Labour, 2008). The Plantation Labour Amendment Bill was finally placed before the Parliament of India on 13 February 2009, proposing to prohibit or restrict the employment of women and adolescent workers in handling hazardous chemicals and in effecting certain improvements in the existing medical facilities in the estates. The bill was passed in the Parliament of India in April 2010. This now includes safety precautions that have to be taken by planters for the storage, utilisation and handling of agro-chemicals. It also mentions the regulation of employment of women and

children below 14 years of age for handling hazardous chemicals in plantations. The issue of chemical hazards in tea plantations is now well recognised but we have little knowledge and estimates as to how the specified guidelines are being followed and the magnitude of the harm caused by the use of chemicals.

First-hand information reveals that hazards and injuries occur at work in the plantation industry due to the ignorance of the workers as well as the lack of any effort on the part of the management to adopt safety measures. The unwillingness of the management to invest in protective gear and user-friendly tools for the workers is also reported as one of the factors that adversely impact their security. It is also believed that workers suffering from ailments and injuries caused during work are not compensated for adequately under the prevalent

regulatory framework.5

COMPENSATION FOr PESTICIDE APPLICATION WOrKErS IN ASSAM 637

All this necessitates an understanding of the occupational safety and health hazards6 faced by workers in one of the largest tea plantation clusters in the world. This article outlines the safety measures adopted in tea plantations and the compensations made to workers in the case of any health problems associated with their work. This also indicates the need for decency at work and valuing the lives of the workers in this important sector.

II. PErCEIVING rISkS AT WOrk: WHAT WOULD BE THE VALUE Of rEDUCING THE rISk?

During the past decade, there has been growing interest in the valuation of statistical life (VSL) and the quality of life (QOL). The VSL can be derived through wage-fatality risk trade-offs made across different occupations (Shogren and Stamland, 2002). The QOL, on the other hand, can be measured in terms of four broad health contexts—(i) measuring the health of the population, (ii) assessing the benefit of alternative uses of resources, (iii) comparing two or more interventions in a clinical trial, and (iv) making a decision on treatment for an individual patient (Cox, et al., 1992). Occupational hazards and diseases, to a large extent, influence the measurement of VSL and QOL. It is evident that most of the occupational diseases are not covered by workers’ compensation.7 VSL is basically related to the wage–trade risk while the QOL is related to occupational disease (Leigh and robbins, 2004).

Wages, the risks of occupation, and work skills are all related to the VSL. All the workers in a job, however, need not be equally skilled or equally tolerant to risk because of various factors including the differences in terms of self-protection, self-insurance, job

stickiness,8 switching of costs, irreversibility and imperfect mobility across occupations, the life-cycle involved in terms of the skills, experience, and education of workers, and their safety (Shapiro and Stiglitz, 1984). In a regulated labour market, where all workers get

equal benefits, irrespective of their skills,9 it is difficult to include wages and skills as the determinants of VSL, as in such a context there would be no variation in wages. It cannot, however, be said that workers cannot perceive the variations in risks across the different types of jobs in the sector. Although wages are intimately related to the selection of a job or occupation, sometimes it is seen that workers are compelled to select a risky occupation for a non-differentiated wage even in a regulated labour market. This is because the job market is surrounded by a huge reserve army of labour, and here the workers may not have enough choice to choose the work or claim compensation for risks. It is not likely that relative to workers engaged in less risky occupations, a worker would choose a risky occupation at his own will even when there are no differences in wages, thus revealing himself to be more tolerant to risk or more skilled in personal risk reduction or both. Such a situation could, however, easily arise in an unregulated job sector surrounded by a huge reserve army of labour. Even in a regulated labour market, a similar situation could emerge due to the fact that the risks factor in the sector is not well-perceived, estimated and/or presented before the policy-makers. In such a scenario, there are two possibilities: that the workers cannot perceive the risks, or even if they are able to perceive the risks, they are unable to do anything because of their poor bargaining power. On the whole, the wage differential needs


to be set in such a way that it is sufficient to compensate the workers engaged in dangerous jobs. A contingent valuation survey could capture the workers’ willingness to pay (WTP) to obtain a specified reduction in job-related risks (Alberini, et al., 2005). This is also possible by capturing a wage (hedonic wage) perceived by the workers performing risk-prone jobs.

Overall, this may lead us to assume that the workers receiving higher wages are more prone to injuries and death; and the higher wage reflects their life value in case of accidents! The argument overall is that the measurement of VST is a sub-set of QOL, and that three factors may become instrumental in keeping the life value of workers high—i) a decent

wage;10 ii) provision of adequate insurance and social security covers; and iii) investments in safety measures by the employers (Leigh, 1989; Shogren and Stamland, 2002). Industries in India show an increasing use of machinery and chemicals, leading to consequent dangers to the workmen. In view of these perils, along with the comparative poverty of the workmen themselves, it is advisable that they should be protected as far as possible from the hardships arising from work-related hazards and accidents.

The basic purpose of the valuation of life, injury or the perceived risks of the workers involved in risk-prone jobs is to facilitate an estimation of the value of risk reduction, which would indicate whether an initiative is socially desirable or not (Madheswaran, 2004). Is there any need to spend on improving the labour standards? Since the resources in our country are scarce, there is a need to justify all spending on safety and preventive measures. researchers adopt various methods for estimating the implicit prices of the reduced risks to life and injuries at work. These include the cost of illness approach, the human capital approach, the WTP approach (considered as the most relevant method for determining the price paid for preventing health and death risks), the insurance approach and court awards and compensations, and the portfolio approach (Linnerooth, 1979; Madheswaran, 2004).

It has also emerged that two approaches are used for measuring the WTP for risks reductions. The contingent valuation approach is based on the information acquired on how much one would be willing to pay to reduce the risks of their life at work.11 The stated preference approach (which infers the hedonic value) relies on the wage data.12

The mechanisms for wage determination in hazardous jobs would lead to an efficient level of job safety and optimal match-ups of jobs and workers. The stated expected wage and the premium for insurance cover would help in arriving at the value of reducing the risks in the context of this study.

III. OBJECTIVES AND APPrOACH TO THE rESEArCH

This paper tries to address the following two issues: 1. Devising an estimate on the occurrence of hazards arising out of pesticide applications in

the estate sector of the tea plantations of Assam—this would help facilitate an understanding of the rate of incidences and the nature of hazards and risks involved in the sector.

2. Capturing the willingness to pay13 of the workers for risk reductions at work as well as their preferred/expected wage at this job (pesticide application)— this would reflect an indication of their life value or value to improve their QOL.


In the estate sector of tea plantations, there is no variation in wages for different tasks and jobs, but it would be wrong to assume that workers engaged in certain tasks do not perceive the risks at work. In the absence of any support mechanisms under the legal framework or of any insurance coverage, there is a need to find ways of compensating workers engaged in hazardous lower-ends jobs. The value of life of a worker engaged in pesticide applications could increase substantially under the domain of certain legal provisions, insurance coverage made by self or employer or by the State, and with social security measures such as provident funds and pensions (inference from Leigh, 1989; Shogren and Stamland, 2002).

Moreover, the utility-maximising behaviours of the affected workers would also help in having an estimate of the cost arising out of work-related health hazards. Exposure to chemical hazards results in morbidity, which affects the workers’ welfare. This results in discomfort and pain, loss in productive time, and expenditure on medical care or preventive care. In chemical exposure studies, researchers often model individual behaviour as utility-maximising, which implies choosing an optimal amount of preventive and mitigating actions to reduce health impacts (Freeman, 1993). This may imply that the workers need a wage premium or insurance coverage for dealing with health risks in the sector.

Data for the Paper

Data for this paper was collected from 19 tea plantation estates in five districts of Assam in four distinct pockets along the north (Darrang and Lakhimpur districts) and south banks (Dibrugarh and Tinsukia districts and Golaghat district) of the brahmaputra river.14 The estates were stratified to the size classes (to the numbers of workers employed and acreages of tea in bearing).15 Only large plantation estates that fall under the domain of PLA, 1951, are considered in the sample.

From the tea estates, information was acquired on the number of accidents, causes of accidents, the number of workers in the estates including permanent as well as casual workers, the workers absent from work due to sickness, the nature of diseases frequently reported in the estates, and number of workers sent for the cholinesterase test.16 The data thus acquired from the tea estates has helped in arriving at an estimate on the rate of accidents, labour use in the tea plantations, and the extent of casualisation at present.17 It may be noted that the estate-wise data on the number of workers employed is not readily available from published sources. It is estimated that the average size of workers in the large plantation estates of Assam is about 900.18

The overall information acquired from the registers of the tea estates pertains to only one side of the hazards in the tea plantation estates. The prevalence of these hazards can be understood only through interactions with the workers engaged in pesticide applications. It has been reported that about 15 per cent of the work-days in tea estates are required for soil conservation measures, control of pests and diseases, and sundry activities (Yogaratnam, 2010). In the tea estates visited for this study, it was reported that about 5 per cent of the workers are engaged in pest control. It was found that an average number of 30 to 40 workers, ranging from a minimum of 12 to a maximum of around 50, are engaged in pesticide spraying in the


plantation estates. Information was acquired from an average of 20-25 workers from each estate with regard to their age, level of educational attainment, nature of their jobs, nature of the reported physical discomforts and injuries, perceived risks at the job, expected wage, insurance cover and their willingness to have an insurance cover and the premium they are willing to pay, training on integrated pest management, precautionary measures taken by the management as well as by the workers, and the absenteeism rate from work and the reasons for absenteeism. The study covered 426 workers engaged in pesticide applications in the 19 tea plantation estates. Assuming that tea estates engage about 5 per cent of the workforce in pesticide spraying, and that there are 620,000 workers on roll in the tea estates of Assam, the number of workers engaged in pesticide spraying would come to 31,000. The sample of 426 is considered as representative at a 95 per cent confidence level.

IV. DESCrIPTIVE STATISTICS

1. Tea Estate Data

(i) Casualisation of the Workforce and the Perceived Impact on Labour Welfare Measures

In the organised estate sector of the tea plantations of Assam, about 18 per cent of the workers are casual workers (Government of Assam, 2010). We perceive that in the present competitive and liberalised regime, tea plantation estates are pushed to the extreme to cut down their operational costs. In the tea sector, labour costs account for about two-thirds of the total costs of production. As the wages and other benefits in tea estates are ensured by PLA, 1951, the management always makes efforts to cut down the labour costs. The present approach of the estate management lies in the use of casual labour as and when required in order to clear the tasks in the plantations. In cotemporary times, there is massive casualisation of the workforce across economic sectors and information on casual workers in the plantations would help in understanding the present situation. Another assumption is that the casual workers are likely to be employed in jobs that are risky in nature.

The data provided/collected,19 reflect that the tea estates, on an average, engage 2.6

permanent workers per hectare of tea in bearing.20 The inclusion of casual workers, however, leads to the deployment of labour in higher numbers in the tea estates (3.9 workers per hectare). The stated figures on the number of workers, including both permanent and casual workers, engaged in the sampled tea estates reveal the prevalence of massive casualisation (here 31 per cent workers are casual, as indicated in Table 1). Field interactions with the workers reveal that the male casual workers are mostly engaged in field maintenance and

Table 1Nature of Labour Use in the Tea Estates

Nature of Workers Average Average per Hectare

Maximum Average per Hectare

Minimum Average per Hectare

Permanent 1198 2.6 2458 5.5 149 1.0Casual 543 1.3 1823 4.1 23 0.04

Note: Estimate based on 19 sampled tea estates.Source: Fieldwork.


spraying of pesticides and fertilisers, while the women are used to clear the seasonal flush in the plantations. The casual workers are not entitled to many pecuniary and non-pecuniary benefits under the provision of PLA, 1951.

(ii) Propensity to Attend Work: Leave and Sick Leaves

The 19 sampled tea estates have, on an average, 1741 workers (including 1198 permanent workers and 543 casual workers). It has been found that on an average, 90 workers are on leave every day in the sampled tea estates. The figures are estimated from the data extracted from the leave register of the tea estates. The estate hospital registers, on the other hand, helped in obtaining the figure of workers on sick leave. It is estimated that on an average, 29 workers are on sick leave every day. This shows that every day, 5.4 per cent of the workers in the estates are on leave for different reasons and that 2.5 per cent of the workers are on sick leave; altogether 8 per cent of the total workers remain absent from work in a day in the tea plantations of Assam.

There is reason to argue that non-attendance at work is largely because of the poor labour standards in the tea estates. The fact that more and more workers fall sick implies that there are not enough provisions for addressing the health and safety needs of the workers or that the workers are not offered sufficient incentives to motivate them to attend to the work conscientiously. An exploration of the reasons for non-attendance would reveal the need for adhering to a labour standard to prevent the recurrence of issues that hamper work.

This paper does not go deeper into the issue of physical injuries in the plantations and the compensation received under the Workmen’s Compensation Act, 1923. however, this study assesses the initiatives and efforts of the estate managements regarding the safety and preventive measures being implemented in the tea estates. The initiatives taken in the estates to conduct the cholinesterase test on the workers to be engaged in pesticide spraying reveal the efforts being made in this direction. Among the 19 tea estates, only eight reported that during 2010, they had had sent some of their workers for a cholinesterase test conducted at the state civil hospital. The average number of workers sent for the test in the eight estates was 24, with 40 being the maximum and 10 being the minimum number of workers tested. The number of estates that had sent their workers for the cholinesterase test was just five during 2008. During that year, on an average, 19 workers in the estates were sent for the test, with 26 being the maximum and 10 being the minimum number of such workers.

2. Labour Survey Data

(i) Profile of the Workers: Presence of Young Casual Workers

As part of this study, personal interviews of 426 workers engaged in pesticide application were conducted. The average age of the 426 workers is estimated at 33 years. This implies that the workers are young and have ample time left in the job before attaining the retirement age of 58 years. It has been found that 69 per cent of the workers engaged in these activities are less than 35 years of age (Table 2). The overall data indicates that young workers are used for pesticide applications. It is estimated that an average number of nine years is spent


by the workers in pesticide application. This means that most of the workers engaged in this job are absorbed at a young age. About 58 per cent of the workers are estimated to be engaged for less than nine years while about 18 per cent workers to be engaged for more than 15 years (Table 3).

Table 2Age Group Distribution of the Workers Engaged in Pesticide Application

< 19 Years

19-25 26-35 36-45 46-59 60 and Above

Average Age

Maximum Age

Minimum Age

Total

6 (1.4)

106 (24.9)

182 (42.7)

80 (18.7)

46 (10.8)

6 (1.4)

32.8 70 16 426

Note: Figures in brackets are percentages.Source: Fieldwork, 2010.

Table 3Average Number of Years Spent by the Workers in the Job of Pesticide Application

Up to 3 Years

4-8 9-15 16-20 21-30 Above 30

Average Max. Min. Total

69 (16.2)

139 ((32.6)

90 (21.1)

37 24 3 9.4 35 1 426


These data indicate a few serious issues. It is apparent that a large section of the workers cannot continue for prolonged periods in the job of pesticide application and withdraw after a certain time period. It may also be true that the management prefers young workers in such jobs and that mostly casual workers are engaged in them. It has been found that among the sampled workers, about 55 per cent are casual workers. Moreover, the level of education of the workers is found to be minimal. Altogether 38 per cent of the workers were illiterate, 30 per cent had studied up to class IV, and none of them had completed high school.

(ii) Symptoms of Physical Discomforts and Workers’ Perceptions of Risks

Many observations and arguments being put forth since the 1980s indicate that the job of pesticide application in tea plantations is highly hazardous, which underlines the need for adoption of safety measures and certain specific regulations. In contemporary times, the cholinesterase test helps determine, to a large extent, whether a worker is physically fit to apply pesticides. The action of cholinesterase inhibitors is, however, insidious. By the time the symptoms appear, irreparable damages may already have been done to the health of the worker concerned. Therefore, it is now necessary to take advantage of the available medical research, and use the laboratory analysis of body fluids to determine the level of cholinesterase activity in the body. by detecting a drop in cholinesterase activity, one can spot danger signs in a person who has been exposed before the symptoms appear. The symptoms of over-exposure to cholinesterase inhibitors include headaches, dizziness, blurred vision, nausea and vomiting, stomach cramps, diarrhoea, excessive salivation and sweating, tightness of the chest, muscle twitching, and pinpointed pupils (brown, 2006). The test thus helps in taking positive steps to prevent further exposure.


During the interactions with the 426 workers (pesticide sprayers), they were asked whether they had been experiencing any physical discomforts. Muscular and body ache were reported in the case of 242 workers (that is, 57 per cent of the workers in the sample), and altogether 209 workers (49 per cent) reported a constant feeling of weakness. Apart from these two symptoms, headache (138 workers or 32 per cent), chest pain (97 workers or 23 per cent), respiratory problems (68 workers or 16 per cent), eye irritation (62 workers or 15 per cent), skin irritation (56 workers or 13 per cent), chapped hands (14 workers or 3 per cent), throat infection (9 workers or 2 per cent) and excessive sweating (8 workers or 1.9 per cent) were some of the discomforts reported by the workers (Table 4). The responses pertaining to discomfort are, however, not mutually exclusive and there are workers facing multiple physical discomforts. On the other hand, there were minimum reports of incidence of injuries among the workers, with only 40 workers reportedly sustaining injuries of a temporary nature at work such as minor cuts or sprain in the legs.

Table 4Physical Discomforts Indicated by the Pesticide Sprayers

Headache Muscle Pain

Chapped Hand

Excessive Sweating

Eye Irritation

Skin Irritation

Weakness Respiratory Chest Pain

Throat

138 (32.4)

242 (56.8)

14 (3.3)

8 (1.9)

62 (14.5)

56 (13.1)

209 (49.1)

68 (16.0)

97 (22.8)

9


The payment received by the pesticide sprayers is calculated on a time rate as well as on a work rate basis, similar to the payments received by the general workers in the tea estates. In order to be entitled to receive a day’s wage, the workers need to apply a mix of 12 litres of pesticides 12 times (144 litres overall). This generally applies for the permanent workers. The contract or casual workers, on the other hand, are required to spray up to 16 times to be entitled to the daily wage (192 litres overall). however, the workers also have the incentive to spray more. Since the workers have to carry the containers filled with pesticides on their backs to spray in the field, the work demands huge reserves of physical strength and stamina. In order to be entitled for double the wages, the workers often volunteer to spray double the quantum of pesticides. This results in severe muscle pain and subsequently compels them to take leave from work over the next few days. This also increases the exposure of the workers to the pesticides. At the same time, they also have to compromise on the quality of the application, which may not cover all the tea acreages uniformly.

As regards the perceived health hazards, the pesticide appliers revealed mixed reactions. The workers’ perceptions were captured on a 5-point Likert scale, with a mean of 2.9, with 5 implying the maximum risks and 1 implying no risks with a standard deviation of 1.1 (Table 7). For 184 workers (43 per cent), this job was free from health hazards. Altogether 59 (14 per cent) workers said that this job entails some form of insecurity in the form of health hazards. Altogether 183 (43 per cent) workers perceived that this sector is full of hazards. It has been found that about 31 per cent of the workers have gone through Integrated Pest Management (IPM) training or received some instructions as to how to handle the pesticides.


however, very few workers have been found to have attended formal training sessions organised by the tea estates and institutions like the Assam Agriculture university and Tea research Centre. Altogether 59 workers (14 per cent) in the seven tea estates reported that they were sent for the cholinesterase test at the State Medical Colleges. Overall 125 workers (29 per cent) reported that they had got their blood tested at the estate hospitals for reported discomforts. It may be noted that there are only a bare minimum of facilities to test blood at the estate hospitals.21

The workers can prevent exposure of their bodies to chemicals by donning long-sleeved shirts, full pants, caps, shoes, gloves and face masks. They should, in fact, be encouraged to use such preventive measures. The study, however, finds that just 224 workers (53 per cent of the total) reported wearing long-sleeved shirts, 234 workers (55 per cent) wore full pants, 59 workers (14 per cent) wore caps, 88 workers (21 per cent) put on protective shoes, while 139 workers (33 per cent) and 155 workers (36 per cent), respectively, used the hand gloves and masks. When asked for the reason for not using the protective gear, a majority of the workers, that is, 225 workers or 53 per cent of the total, claimed that these were not provided by the estate management. Some of them (75 workers or 18 per cent of the total), however, also contended that they were not aware of the consequences, while 69 workers or 16 per cent just ignored the consequences, and 19 workers or 4 per cent found the clothes and gear too inconvenient to use. It has been observed that in general, the workers wear only half pants and half shirts with slippers on their feet while spraying pesticides. Most of them (331 workers or 78 per cent), however, reportedly keep a separate pair of clothes for work and have a wash after returning home from work.

It was found that about 57 per cent of the workers (240 in total) abstained from work

due to illness during the past one month prior to the date of the survey.22 The number of workdays lost for 161 workers was minimal at 1-3 days during the month. Some workers, however, were absent from work for about a week and some for a fortnight. The main reasons for non-attendance of work were illness (131 workers), hangovers from consumption

of too much alcohol (8 workers), injury (one worker), availability of other lucrative work23

(26 workers), and getting engaged in cultivation24 (31 workers) (see Table 5). The rate of absenteeism from work, and the workers’ engagement in other relatively lucrative temporary jobs reveal that the jobs at tea plantation estates are not attractive or remunerative enough. The perceived danger in the job of pesticide spraying also makes the jobs less attractive.

Most of the workers engaged in the job of pesticide spraying feel that the wage they receive is not commensurate with the work and the risks involved in it. The workers were

Table 5reasons Cited by Workers for Absenteeism

Illness Hangover from Alcohol Consumption

Injury Other Lucrative Jobs

Cultivation Total

131 (30.8) 8 1 26 31 421



asked as to what the ideal wage should be for the work. Earlier in this paper, it was mentioned that in the regulated labour market of tea plantations, there is no wage differentiation across various jobs. The workers indicated that the average wage they desire is rs. 105. This is much higher than the prevailing wage of rs. 66.50 (which has now been revised to rs. 84.00). While the modal wage is reported to be rs. 100, some workers averred that a maximum of rs. 200 per day would be the ideal wage in the job of pesticide spraying.

The study hypothesised that providing insurance coverage to the workers would raise their life value. It has been found that 132 workers in the sample have some form of insurance coverage.25 The workers having an insurance cover (in 13 estates) have been paying annual premium of rs. 248, on an average (Table 6). The average maturity value of each worker is calculated to be rs. 1,21,788.26

Among the total number of 294 workers who do not have an insurance cover, as many as 163 workers showed an interest in getting an insurance cover. They were asked as to how much they were willing to spare to pay the premium. Their responses indicated that the average premium they were willing to pay annually was rs. 304, which is higher than what the workers with insurance cover are paying at present.

Table 6Premium Paid by the Workers Annually (in rs.)

Range (in Rs.)

Up to 100

101-120

121-150

151-200

201-250

251-300

301-350

Average (Rs.)

Maximum Rs.

Mode Rs.

Total No. of

WorkersNo. of Workers

15 3 19 40 37 10 7 248 1800 200 131

Source: Fieldwork, 2010.

V. ECONOMETrIC ANALYSIS TO DETErMINE THE VALUE Of rISkS AND LIfE

The prevalence of a uniformed regulated wage across the jobs in the tea plantation estates prompted efforts to arrive at a hedonic wage (an expected wage for the type of jobs that the workers perform) indicated by the workers perceiving risks in the job of pesticide spraying. It is possible that the wage expected by the workers is influenced by their educational levels, the number of years of their involvement in the job, the nature of the job, that is, permanent or temporary (permanent 1 or otherwise 0), the incidence of injury at work (injury 1 or otherwise 0), the insurance cover of the workers (coverage 1 or otherwise 0), participation in pest management training (yes 1 or otherwise 0) and the symptoms of physical discomfort (yes 1 or otherwise 0). Although the survey led to acquisition of information pertaining to ten types of physical discomfort, basically four types of discomfort were assessed in relation to the impacts of the pesticides used in spraying, namely headaches, muscle pain, excessive sweating, and chest pain. It may be noted that these four types of physical discomfort clearly indicate the changes in the cholinesterase level present in the body as a result of its exposure to certain chemicals (Brown, 2006). Positive coefficients of all the indicators are expected in the regression analysis. The estimates also include two indicators in a separate equation


to capture the perceived risks (measured on a Likert scale of 1 to 5, with 1 indicating no risks, leading to a gradual rise in the risk perception and 5 indicating very high risks), and the workers’ WTP to have an insurance cover. The summary statistics of the variables used in the regression analysis are presented in Table 7.

We have measured the dependent variable as the perceived daily wage rate. One prime issue here is the use of the wage variable in linear or log linear form. The functional form of the dependent variable (linear or log linear) in the compensating differential model is an unresolved problem (Madheswaran, 2004). The semi-logarithmic specification, however, has the advantage of not predicting a negative earning for the absence of any risks, injuries and discomforts (Dougherty, 2007).

As expected, there are positive coefficients of education, the nature of jobs, injuries, insurance coverage, presence of symptoms related to changes in the cholinesterase levels

Table 7Summary Statistics of Variables Used in regression (n-426)

Variables Mean Standard Deviation

Minimum Maximum

Age 32.77 10.110 16 70Education—number of years completed in school 2.7 2.840 0 10Number of years spent in the job 9.9 7.576 1 40Nature of the job 0.356 0.479 0 1hedonic wage (in rs.) 105.31 22.885 66 200Perceived risk 2.929 1.116 1 5Injury 0.962 0.303 0 1Insurance 0.309 0.462 0 1Willingness to insure 0.652 0.476 0 1IPM training 0.307 0.462 0 1Symptoms reflecting sickness 0.741 0.448 0 1


Table 8regression results of Hedonic Wage Equations

Variables Coefficients of Equation 1 Coefficients of Equation 2Education—number of years completed in school 0.026* (0.002) 0.003** (0.002)Number of years spent in the job -0.001 (0.001) -0.001 (0.001)Nature of the job 0.014 (0.011) 0.013 (0.011)Injury 0.015 (0.015) 0.011 (0.015)Insurance 0.011 (0.001)Willingness to insure 0.010 (0.010)IPM training -0.033*** (0.010) -0.039*** (0.011)Symptoms reflecting sickness 0.034*** (0.001) 0.033*** (0.010)Perceived risk 0.008* (0.004)Constant 1.98*** (0.013) 1.96*** (0.017)r2 0.10 0.10F 6.3 6.0

Note: Significant ***at 1 per cent, ** at 5 per cent and * at 10 per cent levels; standard errors are in brackets.



and perceived risks in the job. The coefficients are, however, significant in the case of education, perceived risks in the job and symptoms related to cholinesterase level. Contrary to the expectation, the number of years spent on jobs and the training of workers on pest management show negative (significant) coefficients.

As seen and perceived from the field visits, the indicators show differentiated impacts because of certain reasons. It may not be that the workers who have spent longer in the job are aware of the hazards inherent in it and consequently expect better wages. On the other hand, the permanent workers may expect better wages, while the temporary workers, who are in an insecure position in terms of job certainty, may insist on attaining permanent stature in the job instead of demanding a better wage. It has also been found that most of the workers in the sample are unable to perceive the risks entailed in the jobs. As regards the insurance covers, it has been observed that the workers possess them incidentally and have not acquired them because of the perceived risks in the job. Perhaps, imparting training in pest management would have helped the workers to perceive the risks at work. The training, however, comprises merely the issuance of instructions as to how the pesticides should be mixed and the mix sprayed in the plantations; this does not mean that the workers are being made aware of the risks at work. Overall, the workers feel that the wage they are receiving is not enough as their job is tough as compared to the other jobs in the tea plantations.

The indicator of the presence of symptoms of physical discomfort is, however, different from other indicators in the analysis. This has not merely been stated but actually revealed by the workers despite their lack of awareness about the impacts of the changes brought about by the rise in cholinesterase level in the body.27 We estimate three values28—the value of the statistical injury (VSI), the value of the statistical sickness/physical discomfort (VSS), and the value of the perceived risks at work (VPr) by using the following equations:29

1. VSI= β i * W * 12* 26* 2. VSS= 𝛽s* W * 12* 26 3. VPR= β r * W * 12* 26 where,(i) β i is the coefficient of injuries, 𝛽s the coefficient of symptoms of physical discomforts,

and β r the perceived risk at work in the three equations.

(ii) W is the hedonic wage, or the expected average wage indicated by the workers.

(iii) The number of days that the workers work in a fortnight is 1230 and the number of fortnights in a year is 26.

From the above figures, the estimate comes to Rs. 34,011 annually per worker in the case of injuries sustained at work; rs. 35,532 annually in the case of symptoms of physical discomfort, and rs. 33,488 in the case of perceived dangers in the job of pesticide spraying.

At present, the annual wage for workers in the Assam tea plantations is rs. 22,308 (@ daily rate of rs. 71.50). This estimate is based on a hedonic wage of rs. 105.31 (the expected average daily wage average); and this reveals that even at this perceived wage (rs. 32,766 annually), there is need for additional annual wage premiums of rs. 34,000 in the case of


injury, rs. 35,500 in the case of physical discomfort arising out of exposure to pesticides, and rs. 33,500 for the perceived risks and perils associated with this hazardous job.

VI. CONCLUDING rEMArkS

The argument of this paper is that there is a need for compensating workers for the occupational hazards that are inherent in the job of pesticide application in the tea plantations. It is true that the uniformed wage structure in this regulated labour market does not compensate the workers involved in the hazardous jobs, ranging from pesticide applications to working in factories. The issue concerning the measurement of the value of risks to the lives and health of the workers in purely economic terms is a debatable issue (Madheswaran, 2004). In the context of the regulated labour market in the tea industry, this is even more difficult, as the workers cannot make the trade-off between health risks and economic gains.

The second argument put forth in this paper concerns the manner in which the management of the estates, the labour department in the state, and the policy-makers take decisions on such economic values. Although the law permits compensation of the workers from the visible impacts of injuries and death at work, it is likely that the impact of occupational hazards resulting from exposure to chemicals might not get captured in the compensation process, at least in the short run. The State might take up the cost-benefit analysis with regard to the adoption of measures that could minimise the health risks at work and would reduce the perceived value of the statistical risks, injuries and deaths. The economic values thus calculated could turn out to be the pertinent factor in deciding whether to accept individual risks (a wage premium) or ensure the collective well-being of the workers by ensuring risk aversion measures.

It may be noted that the calculations in this paper are just indicative figures and are intended to support the need for industrial safety programmes in hazardous occupations (Madheswaran, 2004). The paper, however, indicates the need for a support line of safety by bringing in the issue of insurance cover for the workers.

Notes1. This information excludes the tea smallholdings in the unorganised sector.

2. A few primary studies by the North Eastern Social research Centre (2004) and the National Campaigns for Labour rights (1999) reveal that the tea sector of Assam lacks a labour standard.

3. The argument here is that though the workers in tea plantations enjoy many pecuniary and non-pecuniary benefits such as free housing, and highly subsidised rations, the present daily wage of Rs. 71.50 (revised in April 2011; it is revised further in March 2012 to rs. 84.00) is reportedly not enough. Incidences of sickness, poor educational attainment and alcoholism are some of the reflections on the labour standard.

4. The chemicals used in tea plantations are intended to control the pests and the weeds. There are numerous brands and compositions of pesticides for minimising the impacts of the attacks of pests and weeds in an effort to raise the out-turn. There is scope for the argument that in order to maintain the field productivity, a compromise would be made with regard to the health of the workers, which, in turn, would affect the productivity and well-being of the labourers. The basic objective of this paper is to provide an estimate of the valuation of statistical life in the case of injuries, sickness and risks at work. The proposed values may be used by the state for assessing the benefits of risk reduction measures.


5. The argument here is that all the compensations and premiums are calculated on the basis of the prevailing wage rate, which does not help us arrive at a decent value. Moreover, the impacts of work-related hazards due to pesticide application are often not revealed.

6. here, we are referring particularly to the chemical hazards and not including the cases of mechanical injuries.

7. The argument in favour of covering the workers by health insurances emerges in this context. The initiatives from the State as well as from the tea estate managements are not known to cover the workers under any insurance scheme except that of the ATPPPF. The private insurance companies have now started penetrating the labour lines of the tea estates and have reportedly conducted surveys on the possible markets for their products. It has been found that even the agents of the Life Insurance Corporation (LIC) of India have taken initiatives to cover the workers under various micro-insurance schemes.

8. A worker (for example, in pesticide application) may continue sticking to a hazardous job for multiple reasons. Some of the reasons for this could be switching costs, unavailability of suitable jobs in the local market and constraints in leaving their families. These constraining factors are well perceived by the employers too. This stickiness factor pulls the wage rate down and consequently the VSL too.

9. In the lower end jobs in an economic sector, skill acquisition is not the issue as the jobs at best require semi-skilled labour. The issue instead is that labour supply is abundant in the context of a developing country like India and that the allocation of workers to relatively risk-prone jobs at the same wage as that offered in the non-risky jobs is not a problem unless specific regulations are made.

10. how much wage would be a decent one in the lower-end jobs in tea plantations? how do the workers perceive the wages set by the bilateral agreements of trade unions and the representatives of the management? The issue concerns the extent to which trade unions and managements capture the workers’ perceptions and execute the associated policies under a prevailed regulatory frame.

11. This is the insurance premium that a worker is willing to pay in a month or in a year.

12. There is a methodological issue of using the wage data in the context of this study, as there are no variations of wages in different jobs in the tea estate sector. The wage risk trade-off, however, can be perceived and calculated by asking the workers to indicate the wage that they expect in the risk-prone jobs. A related additional issue here is the extent to which the workers perceive that the jobs they are involved in are risky and that they know the fallout of the risks.

13. As mentioned earlier, workers in the tea estates do get compensated for mechanical injuries and death, but the impact of exposure to chemicals is yet to find a place in the Acts concerned. Moreover, the impacts of chemicals are not visible in the short run.

14. We had approached more than 30 tea estates randomly. Consent was given by 19 tea estates to share information about various issues on the estates. It was possible to carry out a labour survey in 17 among these 19 estates. There is no prior information for estimating the size of the tea estates and the number of labourers employed in the estates, and stratification of the estates was possible only after information on all the estates was collected.

15. The tea estates provided information, on request, about the workers employed—both permanent and casual. The information on land area under possession and tea in bearing was not provided by all the estates. This information was supplemented by the Tea board of India.

16. People using phosphorus compounds such as parathion, sarin or tetraethyl pyrophosphate in the farming or chemical industries need to be routinely monitored to assess any adverse exposure. Cholinesterase levels can also be used to assess any acute exposure to these compounds, which can cause neuromuscular damage. Toxicity can follow a rapid absorption of the compound through the lungs, skin or gastrointestinal tract. The symptoms of toxicity are varied, ranging from vomiting to paralysis or coma, and depend on the compound, quantity and the site of exposure. Since the cholinesterase level varies from person to person and fluctuates over time, it is essential to have own baseline of cholinesterase level and blood test need to be taken at beginning of every season (brown, 2006).


17. It is assumed that in general, casual workers are used in hazardous jobs and that they enjoy minimal work benefits.

18. There are about 6,20,000 workers on the payroll in the tea estates of Assam. It is estimated that there are around 750 large-sized tea estates in the state. The average deployment of workers in the tea estates is 885 per estate.

19. The sampled tea estates provided the numbers of labourers—permanent and casual—engaged in their plantations. The area of the estates and tea in bearing were collected from the Tea board of India. Some estates, however, put their area in their websites.

20. The labour requirement in tea plantations is primarily determined by the productivity of the estate, and more yield means that more workers are required to clear the flush. Other influencing factors are the health of the workers and the time devoted by the workers during the day to the work. The average engagement varies from country to country, and even at the district level. The average engagement of labour deployed per hectare of tea in bearing in Sri Lanka is presently 2.7. This figure is 2.5 in India and 2 in Bangladesh. The term tea in bearing incorporates only the acreages under actual plantations and thus omits acreages put into other uses by the tea estates.

21. The serum cholinesterase test examines the blood levels of certain enzymes (acetylcholinesterase and pseudocholinesterase) that help the nervous system to work properly. Acetylcholinesterase (also known as rbC cholinesterase) and pseudocholinesterase (also known as or plasma cholinesterase) help break down a chemical that the nerves need to send signals. Acetylcholinesterase is found in the nerve tissue and red blood cells. Pseudocholinesterase is found primarily in the liver. Facilities to test such complex parameters are obviously not available in the tea estate hospitals.

22. rule 74 of the Assam Plantation Labour rule, 1956, states that a worker is entitled to sickness allowance for a certified illness for 14 days in a year. For temporary workers, this entitlement is at the rate of one day for every 21 days of work attended.

23. The wage for workers in tea estates is presently just rs. 71.50 per day. On the other hand, in petty casual jobs outside the estates, the workers can get up to rs. 150 per day. Moreover, there are some reported part-time income avenues such as firewood and timber collection and sale, and jobs under the Mahatma Gandhi National rural Employment Guarantee Act (MGNrEGA), where workers can easily get engaged by temporarily availing of their the entitled leaves as well as leaves without pay.

24. The bilateral agreements between the trade unions and employers ensure that the plantation workers are entitled for two days of paid leave for utilisation for working in the paddy fields that they possess. It may be noted that many worker families in the Assam tea plantations possess paddy plots.

25. Apart from the universal social security schemes of the ATPPPF, which came into force in 1955, other security schemes such as for insurance were unheard of in the tea estates of Assam till the recent past. The micro-insurance schemes availed of by the plantation workers are largely the result of the endeavour made by insurance agents from both the public and private sectors.

26. We had the figure of the premium that the workers were paying monthly/annually. Some workers had reported the sum assured value. Taking into consideration the number of years for which the premium was paid, the number of years of service remaining, and the annual premium, an insurance agent was consulted to arrive at the maturity value of their premiums at their retirement age.

27. Financial resources and ethical issues prevented us from conducting medical tests on the workers engaged in pesticide application.

28. We did not calculate the value of statistical life (VSL), as no case of death was reported among the workers engaged in pesticide application.

29. For the equations and models, we relied on Rafiq (2011).

30. In the tea estates of Assam, the workers are paid every fortnight and all the calculations relating to PF and pensions are estimated on the basis of fortnights.


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Documents

HOW MUCH COMPENSATION WOULD BE ENOUGH? CASE Of PESTICIDE APPLICATION WOrkErS IN ASSAM'S TEA PLANTATIONS