Unions accuse big tea brands of fleecing farmers

Central Organisation of Trade Unions (Cotu) secretary-general Francis Atwoli who is also the secretary-general of the Kenya Plantation and Agricultural Workers Union. PHOTO | FILE 

In Summary

• Data from the International Monetary Fund (IMF) shows that tea prices have dropped 29 per cent from $387 a kg in August 2015 to $287 a kg in February 2016 on rising supply.
• The union which represents workers in the plantation agriculture including the tea sector is concerned that employers are portraying the sector as having earned them poorly in revenue.

By LILIAN OCHIENG'
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Unions representing farmers in the tea sector have accused major tea companies of fleecing farmers by citing falling global tea prices.

The Kenya Tea Development Agency, Nyayo Tea Zones Corporation and Williamson Tea and Eastern Produce headquartered in the UK are among employers put on notice for squeezing payments to tea farmers.
The Kenya Plantation and Agricultural Workers Union (KPAWU) however says Kenya’s tea brands such as Lipton is the top seller in the European market, hence prices should not be going down.

Data from the International Monetary Fund (IMF) shows that tea prices have dropped 29 per cent from $3.87 a kg in August 2015 to $2.87 a kg in February 2016 on rising supply but unionists reckon Kenyan tea fetches a lot higher given its quality.

“You will find Lipton on every table in Europe and KPAWU will not take lightly this “convenience” by employers in the sector to deny workers wage increase and even perpetuate to workers as if they are the only firms that have an access to global tea trade dynamics,” said Mr Francis Atwoli, secretary general KPAWU.

POOR REVENUE

The union which represents workers in the plantation agriculture including the tea sector is concerned that employers are portraying the sector as having earned them poorly in revenue.

“KPAWU through the Central Organisation of Trade Unions, COTU (K)’s Economics and Research department has information on the global tea markets’ performance, Kenya is doing much more than any other country that produces tea and is closely followed by Pakistan and Sirilanka,” said Mr Atwoli in a statement.

The union states that workers involved in the production of tea have faced all manner of injustices; introduction of tea plucking machines for instance took away over 80,000 jobs and lowered the quality of tea both locally and internationally.

Agriculture Fisheries and Food Authority director-general Alfred Busolo however said that, “We anticipate that the volume of tea at the auction is going to decline as a result of the current drought and this will in turn push up the price of the beverage.”

Mr Atwoli added that multinationals have especially complained of a drop in tea earnings, “They should either pack and go if they strongly feel they are not earning from their produce and proceed to surrender these huge parcels of land to the counties hence stop exploiting workers or stay but pay their employees well.”