Indian Coffee House Staff Unpaid Ahead of Onam Despite Crores in Revenue

Thrissur: With just a day remaining for Onam celebrations, over 1,450 employees of the Indian Coffee House chain are yet to receive their salaries and statutory bonuses. This has triggered widespread discontent among workers.

The employees are part of the Indian Coffee Board Workers’ Co-operative Society No. 4227, which operates 48 branches from Thrissur to Thiruvananthapuram. Salaries, which are usually disbursed by the 10th of every month, have not been released ahead of the festival, despite repeated requests from staff to the management committee.

The society currently has approximately Rs. 7.5 crore in its account from last month’s revenue. The total salary expense is estimated at Rs. 4 crore, out of which only Rs. 2.5 crore is required for net disbursement after deductions. The management, however, cited a lack of funds as the reason for the delay.

In August alone, the society recorded business worth Rs. 10 crore. Daily sales have also seen a notable increase during the Onam season—from Rs. 30,000 on average to over Rs. 40,000 in many outlets. Workers claim that despite this surge, they are not receiving any corresponding benefits.

As per a 2024 directive from the Labour Commissioner, they are entitled to a bonus equal to one month’s salary. However, only Rs. 7,000 has been distributed to each worker, in clear violation of the directive.

The Indian Coffee House is a government-run cooperative under the Indian Coffee Board, which functions under the Union Ministry of Commerce and Industry. Workers and union representatives have urged the Union government to step in and ensure timely payment of salaries and bonuses. And they said that the Union Government has a responsibility to oversee the management of these cooperatives and safeguard the welfare of thousands of employees.

Despite ample funds and a thriving business season, the failure to ensure timely payment and bonuses has cast a shadow over Onam celebrations for hundreds of families dependent on Indian Coffee House jobs.