Rising wage theft in tea industry: consequences of ineffective labor market institutions

Abstract

ABSTRACT This article discusses the processes and methods involved in appropriating wages through strict-compliance and non-compliance of different laws, leading to various economic and social rights violations in tea plantation which is one of the oldest industries in India. It addresses the various ways that are cited as the apparent grounds of wage appropriation, namely, self-made rules, management control, and workers’ non-compliance with certain norms at the workplace. The study, conducted in 2019, is based on 510 workers across 50 tea estates from 9 major tea-producing districts of Assam, India. In tea industry, wage theft through direct and indirect methods leads to labor rights violations that result from the exploitative ‘control and command’ system, uneven power relations, various information asymmetry on value share, and ineffective existing labor market institutions.