Wage negotiations for plantation workers

Plantation workers undergo severe difficulties with sharp increases in the cost of living, something the EFC is also concerned with. This agreement is applicable to around 200,000 workers in the 21 companies and a further 300,000 in smaller plantations. "Every rupee is a big matter to them," Velayudam continued. "We are hopeful that we will get a better salary this time. We want to increase the basic and total wages.

Negotiations on a new Collective Agreement for plantation workers are underway with three rounds of talks being completed between the Employers Federation of Ceylon (EFC), unions and companies but they are yet to reach an agreement on wages.

Proposals have been submitted by the unions and the EFC which has resulted in an amended proposal. "We are not very happy with the proposal," said K Velayudam, General Secretary of the Lanka Jathika Estate Workers Union (LJEWU).

Plantation workers undergo severe difficulties with sharp increases in the cost of living, something the EFC is also concerned with. This agreement is applicable to around 200,000 workers in the 21 companies and a further 300,000 in smaller plantations. "Every rupee is a big matter to them," Velayudam continued. "We are hopeful that we will get a better salary this time. We want to increase the basic and total wages. So far, we haven't declared how much we are asking and they (the EFC) haven't declared how much they are giving because it disturbs the negotiating process. We know we cannot resolve these things overnight."

The LJEWU in collaboration with the Friedrich Ebert Stiftung organized the first representative plantation trade union discussions on wage negotiations and other terms and conditions of service to be incorporated into the new agreement last July in Colombo. Discussions resulted in a subsequent meeting in Kandy on July 25 to delve further into the details of the individual proposals of unions and to formulate a collective proposal of the plantation unions to be submitted to the EFC.

A subsequent report from these groups says that whenever the cost of living is increased the salaries of public servants and private sector workers are raised by budgetary allowances but plantation workers are not given any relief.

The unions are asking for food and essential items to be provided at subsidized rates, the development and improvement of health services, transport, infrastructure and communication centres.

The proposals on wages submitted to the EFC by the trade unions on August 22 list 24 specific points which include wage increases for tea, rubber and oil palm workers, supplementary payments, overtime rates, extra pay rates and payments for scrap rubber and double tapping.

Gotabaya Dasanayake, Director General of the EFC told The Sunday Times FT that negotiations are progressing well and that he is hopeful an agreement can be reached as soon as possible. Malin Goonethileke, Secretary General of the Planters' Association said, "Dialogue is still going on but nothing definite has been reached yet. It's still in the process of being worked out. Discussions have been cordial and both parties realize each others limitations and things are going smoothly." Lalith Obeysekere, representative for the plantation companies and head of the negotiating committee said discussions are ongoing but it is a lengthy process. Vice President of the Ceylon Workers' Congress, R Yogarajan also said cordial discussions have been held.