Beedi workers are among the first in the queue for the status of the lowest paid workers. Labour Law implementation in this sector is abysmal and majority of the workers do not even get minimum wages. Rather workers are given insufficient raw materials for beedi making.

There are seven lakh Beedi workers in Andhra Pradesh, concentrated mostly in North Telangana districts, Nizamabad, Karimnagar and Medak. The pro-liberalization policies of the State and Central Govts are allowing MNCs to occupy the beedi market. This began with mini cigarettes; soon MNCs brought gutka and pan parag. US prohibited sale of beedis manufactured in India in its markets. Beedi industry owners, in an effort to save profits, are increasing exploitation of the workers. The newly registered beedi companies have begun a system of ‘vardhi’. This implies daily payment and does not ensure the legal wage. The old companies, under the garb of ‘no sales’, are giving permanent workers work for only three days a week (which contributes towards PF payment) and are offering ‘vardhi’ system for other days. Moreover, wage payments are delayed for months together.

As per earlier agreements born from struggles, beedi workers are supposed to be provided work of making one thousand beedis and should get work 26 days a month besides regular wages. The period of the last wage agreement concluded on 31st March 2000. A new charter was handed over to the Beedi Manufacturers and Tobacco Merchants Association in April 2000 by Beedi Workers’ Union. Since then, the Labour Dept. has called several joint meetings, all of which failed due to the absence of the management. Finally a joint meeting has been held at the behest of the State’s Labour Minister on 12th April 2001. The main reason for the owners’ avoiding meetings is that they do not want to make the payment of arrears of 16 months. Union has begun organizing protest programmes of the workers. 1500 workers held a rally on 21st June 2001, 3000 on 22nd June and 4600 on 23rd June (the scheduled date of negotiations). Workers are now preparing to carry forward the struggle.