CHAPTER VI

PROBLEMS OF CASHEW PROCESSING INDUSTRIES INKANYAKUMARI DISTRICT

Though the Cashew Processing Industry has been

shifting from Kerala to Tamil Nadu from the late sixties, the

industry in Tamil Nadu has not been subjected to any scientific

study. Literature on the position or problem of the industry in

Tamil Nadu is almost non-existent. However, Emam Beevi' and

K.P. Kannan2 have studied the wage differentials in Kerala and

Tamil Nadu. In this chapter, a profile of the industry is given.

An attempt has been made to identify the major problems faced

by the processors and workers on the basis of survey

conducted by the researcher.

Of the 350 Cashew Industrial Units located in

Kanyakumari District, 70 units (20 per cent) were selected as

sample for the study. All the 70 processors / owners were

interviewed and their views were recorded in an interview

schedule specially developed for the present study. Interviews

were also held with 200 workers belonging to the sample units

217

so as to assess the problems related to them and industry.

Separate interview schedule was designed and made use of for

collecting the data from the workers. The data collected from

these two sources are processed and presented below.

6.1. FORM OF ORGANISATION

The report reveals that all the 70 units surveyed

belonging to either sole trader or partnership firms. Company

forms of organisation is totally absent (Refer Table 6.1)

Table 6.1

FORM OF ORGANISATION OF THE SAMPLE CASHEW PROCESSING

INDUSTRIAL UNITS

Form of Organisation Number of PercentageFactories

Sole-trader 40 57

Partnership 30 43

Others 0 0

Total 70 100

Source: Survey

218

"The domination of sole trading and partnership

firms in the industry is due to the fact that the cashew

processing requires very little technical co-ordination and

management in factories".3

The nature of ownership of the sample units is such

that 69. percentage of the units are owned by the processors

while 31 percentage of the units are taken as lease (Refer

Table 6.21).

Table 6.2

NATURE OF OWNERSHIP

Nature of OwnershipNumber of Factories Percentag

Owned Unils 48 69

Leased Units 22 31

Total 70 100

Source: Survey

It is also worth ting that about only 70 per cent

of the factories are 'registered and 30 per cent of the units

remain unregistered.

219

Another interesting feature of the cashew processing

industry in Kanyakumari District is that majority of the cashew

processors / owners belonged to Kerala (Table 6.3 reveals these

factors).

Table 6.3

STATE OF DOMICILE OF CASHEW PROCESSORS

State Number of Processors Percentage

Kerala 52 74

Tamil Nadu 10 14

Other States 8 12

Total 70 100

Source: Survey

The table 6.3 shows that only 14 per cent of the

factory owners belonged to Tamil Nadu, 74 per cent belonged to

Kerala and 12 per cent are from other states.

The motivational factors to start the units in

Kanyakumari District were mainly the availability of cheap

labour, absence of labour problems and trade union activities,

220

availability of raw nuts, low investment, availability of land at

low cost and absence of Government intervention. The relative

importance of the motivating factors can be seen from Table 6.4

Table 6.4

MOTIVATING FACTORS TO START THE UNITS INKANYAKUMARI DISTRICT

Motivating Factors Number of Units Percentage

Cheap Labour 64 91

Absence of labour problemsand trade union activity 48 68

Availability of raw nuts 42 60

Low Investment 28 40

Availability of Cheap Land 26 37

Absence of Government 22 31Intervention

Source: Survey

Table 6.5 reveals that 91 per cent of the processors

were motivated to start the unit in Tamil Nadu mainly due to

the availability of cheap labour. This corroborates with the

conclusions of the studies of both Emam Beevi and K.P.Kannan.

The average number of workers per unit was 233.

Of this 88 per cent were women (Refer Table 6.5).

221

Table 6.5

AVERAGE NUMBER OF WORKERS PER SAMPLE UNIT

Sex Number of Workers Percentage

Male 27 12

Female 206 88

Total 233 100

Source: Survey

The percentage share of women workers employed in

Cashew Factories in Tamil Nadu was slightly less than that in

Kerala Factories. In Kerala 92 present are women workers.

About 34 per cent of the factories have workers in

between 100 to 200, 26 percent of the factories have 201 to

300 workers and another 26 per cent have 301 to 400 workers.

Only 5 percent of the factories have more than 400 workers

(Refer Table 6.6).

222

Table 6.6

NUMBER OF WORKER PER SAMPLE UNIT

Number of Workers Number of Units Percentage

Upto 100 6 9101-200 24 34201-300 18 26301-400 18 26Above 400 4 5

Total 70 100

Source: Survey

The average number of working days in the

processing units of Kanyakumari district were 216 per year.

About 37 per cent of the factories worked for 151 to 200 days

while 43 per cent of the factories worked for 201 to 250 days.

Only 20 per cent of the factories worked for more than 250

days (Refer Table 6.7).

223

Table 6.7

NUMBER OF WORKING DAYS PER YEAR

Number of days worked Number of Units Percentage

Upto 150 0 0

151-200 26 37

201-250 30 43

Above 250 14 20

Total 70 100

Source: Survey

It is interesting to note that none of the factories

surveyed in Kanyakumari District worked for less than 150

days, while in Kerala the average number of working days in

recent years is about 100 days a year ie. about 50 percent of

the working days in Tamil Nadu.

In the processing units in Kanyakumari District,

both time and piece rate system of wage payment is prevailing.

The rate is uniform for all the units. Roasting and Borma

workers are given rupees 81 per day. For shelling and peeling,

the workers are given piece rate of rupee 4/- per kilogram and

rupees 4.10 per kilogram respectively. Workers engaged in grading

224

are given rupees 35 per day. Office staff are given a monthly

salary of rupees 1600. Dearness Allowance (DA) and ESI

facilities are not available to workers.

The data collected from the processors showed that,

the earning per worker per day in Kanyakumari District varied

from rupees 20 to 90. For 26 per cent of the units, the

average earning was less than rupees 40. While for 71 per

cent of the units, the average earning range was rupees 44 to

60. Only for 3 per cent of the units, the earning of the worker

was more than rupees 60 (Ref. Table 6.8).

Table 6.8

AVERAGE EARNING PER WORKER PER DAY

Average Earnings Number of Units Percentage

Upto Rs.40 18 26

Rs.44-60 50 71

Above Rs.60 2 3

Total 70 100

Source: Survey

225

Even now, the average earning per worker in Tamil

Nadu is less than that of the worker in Kerala. In Kerala

all the workers are getting more than Rs. 60 as wage per

day. This is because the worker gets DA in addition to

the piece rate (ie. Rs.6.43 for shelling and Rs.6.63 paise for

peeling per kg.)

Majority of the processors are claiming that the

workers were provided with the welfare facilities such as Bonus,

Provident Fund, Gratuity, leave with wages, etc. (See Table 6.9).

Table 6.9

WELFARE FACILITIES PROVIDED TO WORKERS

Welfare facilities No. of Units providing Percentagefacility

Bonus 70 100

Provident Fund 48 68

Gratuity 44 63

First Aid 42 60

Uniforms and Shoes 36 51

Lkave with Wages 24 34

Canteen 18 26

Source: Survey

226

Table 4.9 reveals that all the units are providing

bonus to its workers. 68 per cent of the units provided

Provident Fund facilities. 63 per cent of the units provided

gratuity and 60 per cent of the units provided first aid facilities

to its workers. However, only a few units have provided leave

with wages, canteen and creche facilities to its workers.

The study revealed that all the units had labour

absenteeism. The main causes of absenteeism, according to

processors are domestic problems of workers and the occurance

of festivals (See Table 6.10).

Table 6.10

CAUSES OF LABOUR ABSENTEEISM

Causes of Absenteeism No. of Processors with Percentagepositive response

Domestic Problems 54 77

Festivals 40 57

Harvest of Crops 30 43

Marriage 14 20

Alternative Jobs 14 20

Others 22 31

Source: Survey

227

Majority of the processors (77 per cent) were of the

opinion that the major causes of absenteeism of workers are,

domestic problems. Festivals, Harvest of crops, Marriage and

the availability of alternative jobs with more and regular income.

An important feature peculiar to Tamil Nadu is that young girls

employed in cashew factories will not turn-up for work after their

marriage. Workers will also shift from one firm to another firm.

Table 6.11

PROBLEMS FACED BY CASHEW PROCESSORS

Number of UnitsProblems

Percentagefacing Problem

Shortage of raw nuts 52 74

Lack of skilled labour 52 74

Government rules and 32 46regulations

Labour problems created by 4 6Trade Unions

Source: Survey

It is obvious from Table 6.11 that 74 per cent of the

units in Kanyakumari district were facing the problems of

shortage of raw nuts and the non-availability of skilled labours

228

46 per cent of the units were facing the problem of government

rules and regulations. Only 6 per cent of the processors had

labour problems created by the trade unions. About 23 percent

of the units faced no problems.

The analysis of the problems on the basis of the

number of workers employed is as follows:

1. Shortage of Raw nuts

Shortage of raw nuts was the major problem faced

by the Cashew Processing Units in Tamil Nadu. Generally, the

intensity of the problem was more to large factories ie. factories

with more than 400 workers (Table 6.12).

Table 6.12

SHORTAGE OF RAW NUTS

No. of workers in No. of units facingNo. of Units Percentagethe factory shortage or raw nuts

Upto 100 6 4 67

101-200 24 20 83

201-300 18 12 67

301-400 18 12 67

Above 400 4 4 100

Total 70 52 74Ui .0 urvey

229

About 83 percent of the units with workers between

101 to 200, suffer from shortage of raw nuts. 67 per cent of

the other units having workers less than 400 also suffer from

the problem of raw nuts, 100 percent of the units having more

than 400 workers have the problem of shortage of raw nuts.

The production of raw cashewnuts in Tamil Nadu is

inadequate and the processors usually purchase maximum

quantity of raw nuts from Andhra Pradesh, Karnataka, Orissa,

Maharashtra, Goa and other cashew growing states in our

country. About 50 to 60 per cent of the raw nuts processed

are imported from foreign countries. Inspite of all these, the

processors are not able to get adequate raw nuts to run the

factory for the full year.

2. Lack of Skilled Labour

Another equally important problem faced by the

processors are the non-availability of skilled workers. The

processors required skilled workers to do roasting, shelling,

heating, peeling and grading for converting cashewnuts into

consumable kernels. The skill of workers in Kanyakumari

district is said to be less than that of their counterparts in

230

Kerala. Analysis of this problem on the basis of the number of

workers in factory, shows that large firms are facing the

problem of non-availability of skilled labour (Ref. Table 6.13).

Table 6.13

LACK OF SKILLED LABOUR

No. of Workers No. of Units No. of Units facing Percentagein Factory the Problems

Upto 100 6 2 33

101-200 24 20 83

201-300 18 12 67

301-400 18 14 78

Above 400 4 4 100

Total 70 52 74

Source: Survey

The Table 6.13 shows that only 33 per cent of the

firms having 100 workers or less experience the problem of

non-availability of skilled labour. About 67 to 100 per cent of the

units with more than 100 workers are also facing this problem.

3. Government Rules and Regulations

Though the cashew industry of Tamil Nadu is still

not brought under the purview of the Factories Act and Minimum

231

Wages Act, certain rules and regulations by the Tamil Nadu

Government in recent years ie., registration of units, filing of

returns restriction of working hours to adolescent workers etc.,

are causing difficulties to the processors. The analysis of this

problem based on the number of workers in the factory is

shown in Table 6.14.

Table 6.14

GOVERNMENT RULES AND REGULATIONS

No. of Workers I No. of Units No. of Units facing Percentagein the Factory the Problem

Upto 100 6 - -

101-200 24 12 50

201-300 18 12 67

301-400 18 6 33

Above 400 4 2 50

Total 70 52 46

Source: Survey

From the table 6.14 it can be seen that 67 per cent

of the units with 201 to 300 workers facing this problem

However, this problem is not related to the size of the units or

scale of operation.

232

4. Labour Problems Created by Trade Unions

Trade unions were not creating any problem in the

cashew processing industry in Kanyakumari District. This is

evident from the fact that only 6 per cent of the units

complained about labour problems created by trade unions. Till

now trade unions couldn't gain the confidence of workers. The

cashew workers in Kanyakumari District are financially very

week and politically less militant than those in Kerala. Most of

the workers are non-house hold workers. Since the workers are

coming from undeveloped areas they are reluctant to attend the

trade union meetings. The trade unions find it difficult to train

and organise them in union activities. Since Kanyakumari

District is industrially backward and most of the workers are

small farmers and farm labourers with occasional employment in

agriculture, they are not committed trade unionists. They do not

involve in trade union activities for fear of loosing their work.

The Centre of Indian trade union. (C.I.T.U.) is the only trade

union among the cashew workers in Kanyakumari District,

whereas there are as many as 9 trade unions in this field in

Kerala. But recently, processors have a little fear of strike that

may be created by trade union which may affect the routine

work in factories.

233

The cashew industry faces the peculiar problem of

decline in the supply of raw cashew nuts on the one had and

the decline in the world consumption of cashew Kernals on the

other-both tender to undermine the very existence of the

industry.

Regarding the raise in prices and costs, the study

growth of an industry owes quite a great deal to the stability of

prices for its raw materials. What is peculiar about cashew

industry in recent years is that it has become rife with the

problem of violent fluctuations in the prices of raw nuts. The

price of a tonne of raw cashewnuts which stood at Rs.7 10 in

1955-66 has gone upto Rs.10,330 rupees in 1981-1982. In

1987 it has reached an all time high of Rs. 12,450 per tonne.

In 1993 it has Rs. 19,550/- and in 1999 it has reached

Rs.23,4 10. These fluctuations in the price of raw nuts could be

attributed mostly to the decline in the supply of raw nuts.

The frequent upsurges in the cost of production

caused by price hikes of nuts has led to the problem of price-

rise of cashew kernels in the local and external market. This

problem has rendered cashew kernels an edible item, meant for

the consumption of the affluent classes only. The price of a

234

kilogram of super fine cashew kernel which stood at Rs.6/- in

1950-51 in the international market has gone upto Rs.600 in

1999-2000. Though Indian industry stands to gain by the

frequent increases of price in the international markets, it is

not a happy situation because it might prove itself detrimental

to the growth of the international market in the long run. The

negative effects of the hike in the price of raw cashewnuts

eclipse the positive aspect revealed in terms of increase in the

export earnings of the country. Unless measures are taken to

stabilise the prices of raw cashewnuts and cashew kernels the

efforts of the cashew factories to optimise capacity utilisation

would prove to be a futile exercise.

Another problem threatening the cashew industry, is

the emergence of monopoly control by leading cashew business

corporations which have established their bases of operation in

Quilon, Mangalore and Cochin. With a view to earning more

profits they subdue all their local counter-parts by depriving

them of adequate supply of raw nuts and labourers.

Organisationally industrial units producing cashew kernels

resemble the trust and pool type of combinations which

emerged in the U.S.A. immediately after the industrial revolution.

The cashew factories under the control of the local producers

235

suffer losses since they are unable to utilise even 24 per cent

of the installed capacity due to the recurring problems of

shortages in the supply of raw cashewnuts and labour. The

local producers therefore have no option other than leasing out

their factories to the monopoly organisations of Kerala. Thus

the cashew industry in Kanyakumari District has virtually come

under the control of a handful of business magnates from

Kerala. As long as this kind of monopolists exist, efforts of

local entrepreneurs to introduce new techniques of maximising

capacity utilization will not bear fruit. These problems are faced

by processors in Kanyakumari District.

6.3. PROBLEMS OF CASHEW WORKERS IN KANYAKUMARIDISTRICT

Before discussing the problems, an attempt is made

to give a profile of the workers. The survey revealed certain

interesting features of the cashew workers in Kanyakumari

District. 86 per cent of the workers were women and 14 per

cent workers were men. Above 16 per cent of the workers were

girls below 16 years of age, 46 per cent of the workers were

in the age group of 16 to 25. Men constitute only 2 per cent

of them (Refer Table 6.15).

236

Table 6.15

AGE COMPOSITION OF WORKERS

Age Group (Years) Male Female Total

Upto 15 - 32 32

16-25 4 88 92

26-35 20 24 54

36-45 2 14 16

Above 45 2 4 6

Total 28 172 200

Source: Survey

Of the total workers, 62 per cent are in the age

group of 25 or less. Only 11 per cent of the workers are in

the age group of above 35 years. The presence of large

number of workers in the age group of 16 to 25 is due to the

replacement. The young girls, after marriage mostly may not

turn-up for work, and in each season the employer has to

recruit new workers.

Illiterates constitute 22 per cent of the workers. 45

per cent of the workers . had only primary education, 21 per

cent of the workers had middle school education and 9 per

cent had high school education. Only 3 per cent had education

237

above high school. The sex wise distribution of the educational

level of workers is given in Table 6.16.

Table 6.16

SEX-WISE DISTRIBUTION OF EDUCATIONAL LEVEL OF WORKERS

Educational Level Male Female Total

Illiterate 2 42 44

Primary 8 82 90

Middle School 14 28 42

High School 4 14 18

Above High School - 6 6

Total 28 172 200

Source: Computed from the data collected

From the Table 6.16 it is clear that illiterates together

with the primary educated workers constitute the majority of

cashew workers in Kanyakumari District.

Male workers were engaged only in Roasting,

Heating, Packing and Office work. Female workers were engaged

in shelling (40 per cent). Peeling (34 per cent) and Grading (12

per cent). Sex-wise distribution of the workers engaged in

different types of work is given in Table 6.17.

238

Table 6.17

SEX-WISE DISTRIBUTION OF THE WORKERS ENGAGED IN

DIFFERENT TYPES OF WORK

Nature of Work Male Female Total

Roasting 22 - 22

Shelling - 80 80

Peeling - 68 68

Grading - 24 24

Packing 2 - 2

Office Work 4 - 4

Total 28 172 200

Source: Prepared from the survey

An interesting feature of the cashew workers in

Kanyakumari district is that majority of the women workers

were unmarried while the majority of the men workers were

married (Refer Table 6.18).

Table 6.18

MARITAL STATUS OF THE WORKERS

Marital Status Male Female Total

Married 20 52 72

Unmarried 8 120 128

Total 28 172 200

Source: Primary data

239

Out of the 172 female workers, 120 were unmarried.

Almost 100 per cent of the unmarried female workers were less

than 26 years in age.

On an average, the worker got 192 days of

employment per year. Majority of the workers (58 per cent) got

151 to 200 days of employment (Refer Table 6.19).

Table 6.19

NUMBER OF DAYS OF EMPLOYMENT PER WORKER

Number of days Number of workers

Upto 150 8

151-200 116

201-250 66

Above 250 10

Total 200

Source: Survey

About 33 per cent of the workers got employment

between 201 to 250 days. Only 4 per cent of the workers got

employment for less than 151 days per year and 5 per cent

workers got employment for more than 250 days.

240

Though the number of working days per year in

Kanyakumari district was comparatively more (almost double)

than the working days available to cashew workers in Kerala,

the average daily earning was deplorably poor. Majority of the

workers surveyed, received average daily earnings of less than

rupees 44 (Refer Table 6.20). However, according to the

information supplied by the processors, the average daily

earning per worker for most of the units was in the range of

rupees 44 to 60.

Table 6.20

AVERAGE DAILY EARNING PER WORKER

Average daily earnings Number of workers

Upto Rs.20 36

Rs.21-40 94

Rs.40-60 38

Above Rs.60 32

Total 200

Source: Survey

241

Table 6.20 reveals that 19 per cent of the workers

got a daily earning of rupees 44 to 60. Only 16 per cent of the

workers got an average daily earnings of more than rupees 60.

It is to be noted that the average daily wage per

worker in Kerala is more than Rs.60. The workers in Kerala

got Rs.20 as Dearness Allowance alone, in addition to the piece

rate for the work done. Dearness Allowance is to be paid in

Kerala without considering the quantum of work done. In Tamil

Nadu, Payment of DA is the exception rather than the rule.

The average daily earning is a strong indicator of the pathetic

economic condition of cashew workers in Kanyakumari District.

The absence of minimum wage legislation is the basic cause of

the poor wage rate prevailing in Tamil Nadu.

To the question, whether the workers were exploited

by the processors, 64 per cent of the workers answered in the

affirmative. However, 36 per cent of the workers believed that

they were not exploited. The income-wise distribution of the

response of workers is given in Table 6.21.

242

Table 6.21

EXPLOITATION BY CASHEW PROCESSORS

Monthly No of No. ofPercen-

Percentage Negative Total

Income positive Responsetage

Upto 600 34 74 12 26 46

601 - 800 36 49 38 51 74

801 - 1000 34 77 10 23 44

1001-1200 14 100 0 - 14

1201 - 1400 6 60 4 40 10

Above 1400 4 33 8 67 12

Total 128 100 72 100 200

Source: Survey

Majority of the workers having monthly income of

less than Rs. 1400 believed that they were the victims of

exploitation by the cashew processors. However, only 33 per

cent of the workers in the income group of above Rs. 1400

believed that they were also exploited by the processors. It

cannot be concluded that the monthly earnings and the belief

of exploitation by processors are correlated as the entire cashew

workers were belonged to the economically weaker section of the

society.

Majority of the workers, who believed that they were

the victims of exploitation opined that trade union was helpful

243

in protecting their rights. The income-wise distribution of the

attitude of workers towards trade union is given in Table 6.22.

Table 6.22

WORKERS ATTITUDE TOWARDS TRADE UNION

Monthly No. of Workers Total workers Percentage

Income having favourable in the incomeresponse group

Upto 600 32 46 70

601- 800 46 74 62

801-1000 30 44 68

1001-1200 10 14 71

1201-1400 8 10 80

Above 1400 6 12 50

Total 132 200

Source: Survey

The income-wise distribution of the worker's attitude

towards trade union reveals that more than 60 per cent of

workers in all the income groups except workers in the income

group of above Rs. 1400 were having a favourable response

towards the activities, of trade unions. However, only 50 per

cent of the workers having a monthly income of more than

Rs. 1400/- believed that the ability of trade union is protecting

the rights of workers.

244

Though the majority of the workers were convinced

of the exploitation by the processors and the ability of the

trade union in protecting their rights, the workers were generally

reluctant to join the trade unions. Only 22 per cent of the

workers were members of trade unions (Refer Table 6.23).

Table 6.23

MEMBERSHIP IN TRADE UNIONS

Total workers

Monthly No. of Members in the Income Percentage

Income in Trade Unions Group

Upto 600 6 46 13

601- 800 14 74 25

801-1000 12 44 27

1001-1200 4 14 29

1201-1400 4 10 40

Above 1400 4 12 33

Table 44 200

Source: Survey

The income-wise distribution of the membership of

workers in Trade Unions show that majority of workers in all

the income group were not members of the trade unions. It is

also interesting to note that CITU was the only trade union

functioning in the cashew sector in Kanyakumari District. The

245

ineffectiveness of the trade unions in ensuring better wage and

working conditions to workers is in fact due to the indifference

of workers in joining the trade unions. Majority of the workers

fear that they will lose the work if they join the trade unions

against the wishes of the processors. Only a detailed study will

reveal the real cause of the reluctance of workers to join the

trade unions.

To the question, whether alternative employment with

higher wages can be found out, 63 per cent of the workers

answered in the affirmative. The income-wise distribution of the

response of workers is shown in Table 6.24.

Table 6.24

AVAILABILITY OF ALTERNATIVE EMPLOYMENT

Monthly Income No. of Workers with Total Percentagepositive response Workers

Upto 600 30 46 65

601- 800 50 74 68

801-1000 22 44 50

1001-1200 6 14 43

1201-1400 10 10 100

Above 1400 8 12 67

Total 126 200

Source Survey

The income-wise distribution of the response of workers

shows that majority of the workers in all the income groups

except the workers in the income group of Rs. 1001-1200 were

confident that they can find out alternative employment with

higher wages. The alternative employment available was 'mason

work' to the male workers and 'beedi' and match manufacturing

units to the female workers.

The survey revealed that majority of the workers

were faced with one problem or other. The problems of the

cashew workers are shown in Table 6.25.

Table 6.25

PROBLEMS FACED BY THE WORKERS

Problems faced by the workers

Absence of Welfare measures

Absence of Health and Safety Measures

Low Wages

Absence of Job Security

Hours of Work

No. of workers facingsuch problem

186

172

170

54

36

Source: Survey

247

The table shows that absence of welfare, health and

safety measures and low wages were the important problems

faced by the workers. Absence of job security and long hours

of work were also problems though not so important. The

problems are discussed in detail in the following pages.

1. Absence of Welfare Measures

Absence of welfare facilities were the most important

problem faced by the cashew workers in Kanyakumari district.

About 93 per cent of the workers complained that they were

not provided with the facilities like provident fund, gratuity,

retirement benefits, ESI benefits, etc. Majority of the workers

said that bonus, leave with wages, maternity benefits, etc. were

not given to them. Canteen and creche facility was totally

absent. It is interesting to note that majority of the processors

were claiming to have provided all these facilities to workers.

The income-wise distribution of the response of

workers is given in Table 6.26.

248

Table 6.26

ABSENCE OF WELFARE MEASURES

Monthly Income Number of Workers Total Percentagefacing problem Workers

Upto 600 40 46 87

601- 800 70 74 95

801-1000 42 44 95

1001-1200 14 14 100

1201-1400 8 10 80

Above 1400 12 12 100

Total 93 200

Source: Survey

The Table 6.26 shows that almost all the cashew

workers irrespective of the income group are faced with this

problem.

2. Absence of Health and Safety Measures

In a factory system of production where large number

of workers are working, provisions for health and safety

measures is a must. The cashew factories in Kanyakumari

District do not have such facilities. Workers are not provided

with even the basic facilities like drinking water, spittoons, etc.

MM

Work places are dusty and are not properly lighted and

ventilated. The bathrooms and latrines if available, are not kept

clean. Workers have complained that they are not given hand

gloves or soap and oil for cleaning the hands. First aid

facilities are also not available in factories.

The income-wise distribution of the response of

workers with regard to the health and safety measures is given

in Table 6.27.

Table 6.27

ABSENCE OF HEALTH AND SAFETY MEASURES

Monthly Income Number of Workers Number of Percentage

(Rs.) facing the problem Workers

Upto 600 40 46 87

601- 800 66 74 89

801 - 1000 38 44 86

1001 - 1200 12 14 86

1201-1400 8 10 80

Above 1400 8 12 67

Table 172 200

Source: Survey

Xwll

Table 6.27 reveals that more than 80 per cent of

the workers in all -the income group were faced with the

problem of the absence of health and safety measures.

3. Low Wages

Another equally important problem faced by the

workers was the low wages given to them. About 85 per cent

of the workers complained that they were getting low wages.

The income-wise distribution of the response of workers is given

in Table 6.28.

Table 6.28

LOW WAGES

Monthly Income Number of Number of Percentage

(Rs.) Workers facing Workers in the

the Problem income group

Upto 600 38 46 83

601- 800 62 74 84

801-1000 40 44 91

1001 - 1200 12 14 86

1201-1400 6 10 60

Above 1400 12 12 100

Total 170 200

Source: Survey

251

The table shows that more than 80 per cent of the

workers in all the income group other than the workers in the

income group of 1201-1400 were faced with the problem of low

wages. However, only 60 per cent of the workers in the income

group of Rs. 120 1-1400 felt that they were getting low wages.

It was already stated that 47 per cent of the

workers got a daily earning of Rs.20 to 40 only, while 18 per

cent got a daily earning of less than Rs.20. Workers in Tamil

Nadu were not given D.A. Leave with wages, ESI facilities, etc.

The exact reasons for the prevalence of low wages in

the cashew sector in Kanyakumari District can be revealed only

if a detailed study is conducted.

Absence of . state legislation like Minimum Wages Act,

illiteracy of workers, reluctance of workers in joining trade

unions and the absence of collective bargaining in cashew

sector may be attributed to the low wages prevailing in

Kanyakumari District of Tamil Nadu.

4. Absence of Job Security

Absence of job security was another problem faced

by the cashew workers in Kanyakumari District. However, only

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27 per cent of the workers complained of the response of

workers regarding the job security is given in Table 6.29.

Table 6.29

ABSENCE OF JOB SECURITY

Monthly Number of Workers Workers in the Percentage

Income facing the problem income group

Upto 600 14 46 30

601- 800 16 74 22

801-1000 10 44 23

1001-1200 6 14 43

1201-1400 4 10 40

Above 1400 4 .12 33

Total 54 200

Source: Survey

Table 6.29 does not show any relation between

income and response of workers regarding the job security.

Absence of job security is due to the peculiar

situation prevailing in the cashew sector in Kanyakumari

District. There were several factories without any permanent

employers. In each season some new processors take the

work place on lease and employ some workers. They did not

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maintain permanent employment records. The workers were also

not aware whether the factory will work or whether they will

get employment in the next season. Only effective state

intervention will help to do away with this problem of workers.

5. Long Hours of Work

Another complaint of the cashew workers was that

they had to work for long hours. Above 8 hours job is the

exception rather than the rule. However, only 18 per cent of

the workers complained of this problem. The income-wise

distribution of the response of workers is shown in Table 6.30.

Table 6.30

LONG HOURS OF WORK

Monthly Income Number of Number of Percentage

(Rs.) Workers facing Workers in thethe Problem income group

Upto 600 6 46 13

601- 800 14 74 19

801-1000 6 44 14

1000-1200 4 14 29

1201-1400 2 10 20

Above 1400 4 12 33

Total 36 200

Source: Survey

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The table shows that only a small percentage of the

workers had the complaint of long hours of work. This may be

because of the fact that majority of the workers were willing to

work more than 8 hours for earning more wages.

6.4. GENERAL LABOUR EXPLOITATION

Most of the cashew factories are functioning in

remote villages. About 95 per cent of processing labourers in

the cashew industry are women, mostly teenagers. They are

illiterates hailing from very poor families. They are not

conscious of the quantum and value of labour they contribute

and the enormous profits the cashew producers make. No

wonder exploitation of women workers has become a

predominant feature of the industry.

Exploitation of child labour is another feature.

Plenty of children in the age group of 10 to 15 work in cashew

factories. They form a substantial 15 per cent of the total work

force. Poverty is the reason which compels these youngsters to

work in the cashew factories.

Again, as per the Payment of Wages Act the

management has to maintain wage card for each worker. But

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these wage cards are not maintained in any of the cashew

factories. This provides an opportunity for the management to

have a free rein in exploitation. For instance, bonus and

gratuity are determined on the basis of wages paid to the

worker in a year. If a wage card is maintained the total work

done in a year can easily be calculated. But here the work

done is not recorded and this gives the management a free

hand in the calculation of bonus and gratuity. The

management makes all the calculations in a distorted way

putting the workers to heavy loss. The workers who are allergic

to union activities because of the over reaction of certain trade

unions, do not get organised and this enables the managements

to continue the exploitation.

As per the Factories Act 1947, each shelling worker

is to be provided with gloves, oil and soap for washing their

hands. But such facilities are not provided. The Government is

not implementing the labour laws and the workers do not have

the strength to get them implemented. The cashew factories do

not even have the basic facilities for first aid. The duration of

work is not fixed and very often it exceeds 11 hours a day,

from 7 A.M. to 6 P.M., that too without sufficient intervals.

Since piece rate system of wage payment is followed, the workers

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are very anxious to have a hurried meal. Since the work in

these factories is treated as part time seasonal work, leave

rules are not followed. Even Sundays are working days.

Consequently workers get exhausted. They fall ill very often and

this too affects the capacity utilisation. There is no proper

toilet and drinking water facilities. The study reveals that more

than 300 workers are provided with one thatched shed for

urination.

The workers in the cashew factories have to sit in a

particular posture on the floor throughout the working hours.

This leads to uterus diseases. The condition of the roasting

workers is really pathetic. The smoke emitting from the factory

creates lung disease to the workers. The roasters have to come

to the factory in the very early morning and return after all

other workers leave the factory. Apart from roasting they have

to check the entire shells to see whether any nut is left out.

With respect to the monetary side, the workers are

not provided with dearness allowance or employees' state

insurance (E.S.I.) benefits. In most of the factories provident

fund benefits are not extended even to workers with many

years of experience. When a worker joins a factory she is given

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a number. This number is changed after paying the bonus, the

only extra benefit enjoyed by the workers. In the next year the

worker gets a new number. Thus there is no continuity of

service cord even for one with long years of service. As a

result the worker may not be able to claim any statutory

benefits. Further the workers themselves do not show any

interest in making Provident Fund Contributions. In certain

factories, managements resort to the clever public relation

strategy of deducting a small amount and depositing the same

to public provident fund without making any matching

contribution by the management. Suppose Rs.6/- is deducted

from the wage of a labourer for his provident fund. 3 rupees

is shown in the record as management contribution and 3

rupees as worker's contribution. When a worker leaves the

factory, usually at the time of marriage, she claims the

provident fund. But the management does not show any

interest in disbursing the provident fund. This discourages the

other workers from joining the provident fund. Recently the

management began to insist on the workers to contribute their

provident fund. The intention behind it was to restrict the

movement of skilled labourers to other factories.

258

References

1. Emam Beevi, A.J., Impact of Minimum Wages Legislation

on Cashew Industry, (Unpublished M.Phil Dissertation)

Centre for Development Studies, Thiruvananthapuram.

2. Kannan, K.P. Cashew Development in India -Potentialities

and Constraints, Agricole Publishing Academy, New Delhi,

1983.

3. Kannan, K.P. Cashew Development in India - Potentialities

and Constraints, Agricole Publishing Academy, New Delhi,

p.97.

4. Tamil Daily - Dinakaran, Special News about Cashew

Factories in Kanyakumari District, 8' November, 2002, p.9.