PROBLEMS OF CASHEW PROCESSING INDUSTRIES IN KANYAKUMARI DISTRICT

Transcription

1 CHAPTER VI PROBLEMS OF CASHEW PROCESSING INDUSTRIES IN KANYAKUMARI 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

2 217 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 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 Percentage Factories Sole-trader Partnership Others 0 0 Total

3 218 "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 Leased Units Total 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.

4 219 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 Tamil Nadu Other States 8 12 Total 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,

5 220 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 IN KANYAKUMARI DISTRICT Motivating Factors Number of Units Percentage Cheap Labour Absence of labour problems and trade union activity Availability of raw nuts Low Investment Availability of Cheap Land Absence of Government Intervention 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).

6 221 Table 6.5 AVERAGE NUMBER OF WORKERS PER SAMPLE UNIT Sex Number of Workers Percentage Male Female Total 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).

7 222 Table 6.6 NUMBER OF WORKER PER SAMPLE UNIT Number of Workers Number of Units Percentage Upto Above Total 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).

8 223 Table 6.7 NUMBER OF WORKING DAYS PER YEAR Number of days worked Number of Units Percentage Upto Above Total 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

9 224 are given rupees 35 per day. Office staff are given a monthly salary of rupees 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 Rs Above Rs Total

10 225 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 Percentage facility Bonus Provident Fund Gratuity First Aid Uniforms and Shoes Lkave with Wages Canteen 18 26

11 226 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 Percentage positive response Domestic Problems Festivals Harvest of Crops Marriage Alternative Jobs Others 22 31

12 227 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 Problems Number of Units facing Problem Percentage Shortage of raw nuts Lack of skilled labour Government rules and regulations Labour problems created by 4 6 Trade Unions 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

13 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 No. of units facing the factory shortage or raw nuts Percentage Upto Above Total Ui.0 urvey

14 229 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

15 230 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 Percentage in Factory the Problems Upto Above Total 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

16 231 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 Table 6.14 GOVERNMENT RULES AND REGULATIONS No. of Workers I No. of Units No. of Units facing Percentage in the Factory the Problem Upto Above Total 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.

17 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.

18 233 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 has gone upto Rs.10,330 rupees in 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 pricerise 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

19 234 kilogram of super fine cashew kernel which stood at Rs.6/- in in the international market has gone upto Rs.600 in 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

20 235 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 PROBLEMS OF CASHEW WORKERS IN KANYAKUMARI DISTRICT 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).

21 236 Table 6.15 AGE COMPOSITION OF WORKERS Age Group (Years) Male Female Total Upto Above Total 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

22 237 above high school. The sex wise distribution of the educational level of workers is given in Table Table 6.16 SEX-WISE DISTRIBUTION OF EDUCATIONAL LEVEL OF WORKERS Educational Level Male Female Total Illiterate Primary Middle School High School Above High School Total 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.

23 238 Table 6.17 SEX-WISE DISTRIBUTION OF THE WORKERS ENGAGED IN DIFFERENT TYPES OF WORK Nature of Work Male Female Total Roasting Shelling Peeling Grading Packing 2-2 Office Work 4-4 Total 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 Unmarried Total Source: Primary data

24 239 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 Above Total 200 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.

25 240 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 Rs Rs Above Rs Total 200

26 241 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.

27 242 Table 6.21 EXPLOITATION BY CASHEW PROCESSORS Monthly No of No. ofpercen- Percentage Negative Total Income positive tage Response Upto Above Total Majority of the workers having monthly income of less than Rs 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 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

28 243 in protecting their rights. The income-wise distribution of the attitude of workers towards trade union is given in Table Table 6.22 WORKERS ATTITUDE TOWARDS TRADE UNION Monthly No. of Workers Total workers Percentage Income having favourable in the income response group Upto Above Total 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 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.

29 244 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 Income in Trade Unions Group Percentage Upto Above Table 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

30 245 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 Table 6.24 AVAILABILITY OF ALTERNATIVE EMPLOYMENT Monthly Income No. of Workers with Total Percentage positive response Workers Upto Above Total Source Survey

31 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 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 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 facing such problem

32 247 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.

33 248 Table 6.26 ABSENCE OF WELFARE MEASURES Monthly Income Number of Workers Total Percentage facing problem Workers Upto Above Total 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.

34 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 Table 6.27 ABSENCE OF HEALTH AND SAFETY MEASURES Monthly Income Number of Workers Number of Percentage (Rs.) facing the problem Workers Upto Above Table

35 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 Table 6.28 LOW WAGES Monthly Income Number of Number of Percentage (Rs.) Workers facing Workers in the the Problem income group Upto Above Total

36 251 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 were faced with the problem of low wages. However, only 60 per cent of the workers in the income group of Rs 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

37 per cent of the workers complained of the response of workers regarding the job security is given in Table Table 6.29 ABSENCE OF JOB SECURITY Monthly Number of Workers Workers in the Percentage Income facing the problem income group Upto Above Total 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

38 253 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 Table 6.30 LONG HOURS OF WORK Monthly Income Number of Number of Percentage (Rs.) Workers facing Workers in the the Problem income group Upto Above Total

39 254 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 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

40 255 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

41 256 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

42 257 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.

43 258 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, Kannan, K.P. Cashew Development in India - Potentialities and Constraints, Agricole Publishing Academy, New Delhi, p Tamil Daily - Dinakaran, Special News about Cashew Factories in Kanyakumari District, 8' November, 2002, p.9.