Financial Times

Plantation workers want better salaries, social recognition

By Dilshani Samaraweera

Plantation companies and trade unions are negotiating another collective wage agreement but trade unions say the gap is wide between worker aspirations and company offers. “We have had a few rounds of talks already but I don’t see an agreement for another 2 -3 months. There is a wide gap between worker aspirations and what the plantation companies are offering,” said the General Secretary of the Jathika Estate Workers Union, K Velayudam. The union is one of three trade unions representing plantation workers at the wage talks.

“The previous collective agreement expired on March 31 this year. So we started talks in February but the climate was not conducive because of the global financial crisis. As a result the talks were not finalised,” said the Chairman of the Plantation Services Group at the Employers Federation of Ceylon, Lalith Obeysekera.

The unions and the plantations did not disclose the asking and offered numbers. But the unions are asking for a wage increase and a change in the wage structure. At the moment workers are paid on a daily wage comprising a basic wage of Rs 200, a non-variable wage of Rs 20 and an attendance allowance of Rs 70. The attendance allowance is available only if workers turn up for work for 75% of the work-days offered by the companies.

The trade unions say they understand difficulties faced by plantation companies that have been hit by the global recession from last year and drought this year but note that the cost of living has increased in Sri Lanka making current plantation wages inadequate. Plantation workers also want social recognition.
“Young people in plantations are now educated, not like before. So they don’t want to work in the estates. One reason is the pay, the other is social status. When they say they are estate workers our society looks down on them. So they prefer to do other jobs,” said Mr Velayudam.

Earlier this year, in April, estate staff signed a new agreement with the plantation companies that resulted in a Rs 2,500 salary increase. Estate staff include clerical staff, field supervisors, technical officers and estate medical officers. The agreement is valid for five years with another salary increase in three-years time.

“We signed the agreement in April. Salaries have already been increased by Rs 2,500. The salary was also consolidated. Earlier the cost of living was added to the basic salary to make up the final amount. But we have now combined the two into one consolidated salary by making the cost of living allowance Rs 8,413 and adding it to the basic,” said the General Secretary of the Ceylon Estate Staff Union, Nath Amerasinghe.

But a similar, fixed, monthly salary for field workers in plantations, the majority of the plantation workforce, is still out of the question. Plantation companies say the daily wage system is better to ensure productivity.

“The daily wage system is there to ensure attendance, because work attendance is irregular in plantations,” said Mr Obeysekera from the Employers Federation. Trade unions say the time is not right to demand a monthly salary. So, instead, incomes are guaranteed through collective agreements.

“Traditionally, world over, plantations pay on a daily wage. We need to make other changes before we can demand a monthly fixed salary in Sri Lanka. But although we do not have a monthly wage, we have structured the wage system to indirectly be like a monthly wage. For instance, the companies must give 300 days work but if they give only 280 days work, they must still pay the workers for the balance 20 days. So there is a guaranteed no of days work to ensure incomes,” said Mr Velayudam.

The plantation sector has a labour force of about 450,000. Around 60% of field workers in estates, mainly tea pluckers, are women.


 
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