Issue link: https://read.dmtmag.com/i/491368
68 STiR tea & coffee industry international INRs1.1 million on stock in a venture that had been losing money for four years. A bank loan completed the capitalization. Productivity soared after reducing Tata's payroll by almost 7,000 workers. A new wage formula was linked to pro- ductivity and prices, explained Abraham. Today there are 11,500 employees sup- porting 8,517 families with 1,360 tempo- rary workers. The 10-year bank note was retired in 5 years. Wages and Incentives - KDHP's worker incentives enable workers dur- ing a high-crop month to earn almost INRs9,000. Estate workers are entitled to annual leave of 20 days with travel allow- ance and a provident fund at retirement. Ownership - Dividends are how workers share in annual profits. The for- tunes of workers rise and fall with the garden, said Abraham. In a good year the company has distributed dividends as high as 25%. Last year's dividend was 15%. Benefits - In addition to food subsidies, primary education, childcare, and medical care, KDHP also allocates a percentage of each year's Fair Trade premium to a Fixed Deposit Account, where the interest earned will be used towards a new development project each year. Scholarships for workers' children of INRs3000 are awarded to the top 5 graduating students in the estate so that they can continue their education at uni- versity. Tata Global Beverages continues its support of the Munnar general hospital, KDHP's school and projects for handicapped and disabled workers and their children. Comprehensive Health Care - This broad approach to health provides a balance of curative, promotional and preventive health services in remote areas. The main objectives are maternal and child welfare, immunization, family planning, environmen- tal sanitation, potable water supply, health education, occupational health, vocational guidance to adolescents, tribal welfare, adult literacy, household budgeting, and en- couragement of savings. The company's Medical Department, welfare officers and link workers are actively involved in the implementation of this program. Link Workers - These influential and highly motivated workers are voluntarily elected to serve as an effective communication link between the providers and con- sumers of health care services. Link workers absorb and disseminate health informa- tion through training from Medical Officers and Welfare Officers. Worker Training - On-the-job training in the handling of machinery, pesticides, and in cultivational and manufacturing operations is mandatory. Grievance Redressal - The age-old, time-tested, employee grievance redressal procedure is still in vogue. This system has helped to quickly solve the majority of worker grievances. Interest-free Advance - Parents of school and college-age children may apply for an interest-free advance to meet their financial requirements, subject to the fi- nancial position of the company. These funds are recovered from the wages of the employees in installments. The first attempt to expand the role of workers failed. In early 2003 Tata gave workers control of one of its better-run gardens "and they could not master their destiny," recalls Thomas. Annual dividends: 15% in 2012-13 - 10% in 2011-12 - 25% in 2010-11 Measures of Success KDHP's retail outlet is a popular tourist destination in downtown Munnar. Kerala is home to about 34 million people along India's Malabar coast. Munnar is located inland at elevation of 5,600 feet with a population of 68,000. Munnar Arabian Sea Karnataka Tamil Nadu Kerala KDHP 2004-05 20013-14 Workforce 16,126 11571 Production (million kg) 19.48 19.83 Productivity (kg per day) 33.31 49.70 Revenue $16.87 million $47.18 million Net profit ($1.3 million loss) $2.56 million Dividend* None 15%