Lankan tea industry struggling but 150th anniversary next year a silver lining
Sri Lanka’s tea industry ravaged by the storms of a disturbed market has been trying to make its workers understand that the sector needs people who can be paid for their productivity as opposed to simply marking time.
There is no reason why the trade unions should reject the model of productivity-based payment system, Tea Planters Association Chairman Roshan Rajadurai said at last week’s 161st Annual General Meeting of the association held in Colombo. He noted that pluckers in Sri Lanka would average only 18 kg per hour while their counterparts in India and Kenya would bring in 30 kg and 48 kg per hour, respectively.
In this respect he pointed out that it was senseless for the labour unions to oppose this move as they could earn as much as they could bring in. Mr. Rajadurai asserted that a radical change was required in respect of labour productivity-based pay and that there was ample room for improvement.
Despite this setback during a time when world market prices for tea have drastically dropped and though Sri Lanka’s main traders Russia and the Middle East are having problems in terms of payments the industry will be looking towards a celebration of the tea history in the country.
Mr. Rajadurai pointed out that in 2017 the tea industry would be marking 150 years and though the present situation does not seem right, the sector is bracing for a grand celebration, noting that should the industry see another one hundred years then this period could be looked back upon as its “finest hour.”
Chief guest on the occasion Dr. Indrajith Coomaraswamy addressing the gathering highlighted that tea and rubber were key sectors for the economy and that it was still far better than the apparel and tourism industries since they do not import to serve the state.
In this respect, he pointed out that when these two sectors were not doing well it was a “matter of national concern the plantations are facing a crisis.” Dr. Coomaraswamy warned that Sri Lanka was on a flight path to Greece based on the current economic conditions the country was facing and a possibility of going into instability if there was no rapid growth and more opportunities created for the people. There needs to be a balance of social development and wealth creation, he asserted.
In fact, he noted Sri Lanka was on the verge of becoming an aging population adding that the young people and new workers should contribute to economic development but the productivity-based growth was not happening today.
Medium term challenges facing the country today was its overvalued exchange rate which was not helping exports while uncertainty on interest and exchange rates was certainly not helping the economy to establish a growth model.
He asserted that empowering people was the way forward through education and training institutes but noted that those now joining the workforce were not employable.
Commenting on the tea industry, he pointed out that all stakeholders needed to make a transition and that the industry needs to become more creative, agile and flexible to better prospects for the future.