KOCHI: The labour strike at the Kanan Devan Hills Plantations Company (KDHP) may have exposed the flaws in the much-touted model where about 13,000 employees became part owners of the company in a landmark pact in 2005 when the Tata group exited 17 plantations (around 24,100 hectares) in Munnar. Workers were given 300 shares each for a total of `3000 (`10/share) to become “part owners” in the company which saw them owning 68 pc in the company while Tatas held 18 pc.
The Tatas (via Tata Global Beverages) have hiked the stake in KDHP from 18 pc to about 30 pc in recent years, indicating the group’s renewed interest in the company. Workers complain they earn as little as `300 by way of dividend, down from `900 in recent years. The trouble in the company reflects the growing mistrust between worker shareholders and the management.
KDHP MD K Mathew Abraham said the company paid `300 dividend in the initial years. It was increased when the company reported higher profit. At present, tea prices are ruling low resulting in over 50 pc drop in profit last year and, hence, the lower dividend. According to a board member, independent valuation made by the company shows KDHP’s shares valued at `70/72/share up from `10/share in 2005. “We are also exploring listing of the company on stock exchanges,” he said.