Plantations bleed to brew new models
State policy to change the existing structure on Sri Lankan tea plantations has caused a stir among the regional plantation companies (RPCs) complaining that they have been unjustifiably dealt with by a team of experts from a bygone era who have landed here after nearly 25 years since privatisation took place.
In this respect the RPCs have come down hard on the new team of experts who opine that the problems brewing on the estates is mainly driven by the companies themselves due to neglect and lack of leadership.
But RPCs argue that over the years though wage increases persisted the companies continued to make losses from 2003 onwards having made a drop in profits for two consecutive years in 2005 and 2006. During the period 1996 to 2010 period the companies had recorded a good performance but a rapid decline in tea prices due to the global recession in 2008 continued up to end 2016 that contributed to the loss on the estates.
In 2008 the RPCs made a loss of Rs.10 million and these losses continued to increase to Rs.436 million in the next year but wages on the plantations were Rs.290 and Rs.405 per day in the two years, respectively.
The last year mentioned being 2014 indicated a loss of Rs.1.6 billion but wages were at Rs.620. In this respect, the companies believe the government should not mandate the wages of workers and have called for a productivity linked model for the payment of wages.