Social Report 2010 – India - Sucre Ethique

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4. Unique provision of retention allowance
The sugar industry is a seasonal industry and as such all the work force is not gainfully appointed
for the full years. The seasonal workers which constitute about 50% of the work force of the sugar
factories is out of work for a period of about 6 to 8 months every year. The industry requires experience
and knowledgeable workers. A demand therefore was made by the workers that they
be paid Retention Allowance. Over a period of time, this issue has been one of the major subject
matters for adjudication and decisions vide various bipartite agreements and awards. The industry
has accepted in principal the need for payment of retention allowance and the rates thereof
have been revised from time to time. Earlier the retention allowance was in the range of 15% to
40% depending upon the skills of the seasonal workers. Presently the retention allowance is paid
at the rate of 30% for the unskilled workers, 40% for the skilled workers and 50% for the highly
skilled workers. The workers who have worked for 66% of the period of previous season are paid
retention allowance at the above rate in the first month of the commencement of next crushing
season.
5. The legislative provisions about sole collective bargaining agent
The sugar industry in the state is governed by “The Bombay Industrial Relations Act 1946”, which is
applicable to only a section of industries like Power Generation, transport, textile, wool, etc. This
act provides for stringent restrictions for workers to resort to direct actions like strike etc. The act
provides for recognition and approval to the trade unions of the workers. It has been a consistent
demand of the working class that the issue of union recognition be decided by secret ballot and
not by mere membership records. The B.I.R. act however provides for recognition by verification
of membership records only. The unions having membership to the tune of 30% and above from
amongst of the work force in a given local area are accepted as approved and representative union
and they are extended various rights under the act. They are the sole collective bargaining agents
on behalf of the workers. The workers in every sugar mill are organized and are represented by the
unit level approved and representative trade union. The industry wide workers of sugar industry
are represented by 2 federations at the state level. Unlike other industries where the workers are
governed by Industrial Disputes Act, 1947, the workers of sugar industry are governed by B.I.R.
Act.
Other benefits
As a consequence of collective bargaining the workers have achieved the above benefits as well
as various other benefits like House Rent Allowance paid at 5% of basic and dearness allowance,
casual leave of 10 days, privilege leave (Annual leave with wages) at 1 day for every 20 days of
work, paid festival holidays of 12 days a year. During the seasoned period, the workers work on
paid festival holiday and they are granted alternate leave and only in off season period the workers
enjoy the holidays on the days fixed.
Social Report 2010
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ETHICAL-SUGAR