Regional plantations bow to Presidential diktat
Regional Plantation Companies (RPCs) have agreed to go ahead with the wage increase for estate workers as proposed by President Anura Kumara Dissanayake subject to certain considerations as the industry faces a declining demand for tea. On October 12 at an estate workers’ rally in Bandarawela, the President promised to increase the daily wage to Rs.1,750.
Estate worker wages hike has been a contentious issue historically and now plantation companies are to submit their considerations in this regard.
In return for the increased wages, which is going to cost the industry an additional Rs.7.1 billion to the annual wage bill; RPCs intend taking productivity increases and minimum attendance as a requirement.
This would be in addition to other considerations that the RPCs deem fit to request at this instance.
Moreover the industry based on each company’s consideration will take into account cutting down of costs that could border on worker welfare as well.
“Each company will have to cut down certain costs and reduce certain inputs,” it was noted. A President’s request that cannot be denied is being accorded the due respect by a group of stakeholders in the industry that believe this is untimely and uncalled for as a hike was granted just last year and which was meant to be for a three year period following a court case.
Industry veterans point out that rising cost of production and a decline in prices for Ceylon tea globally (despite the recent record high prices fetched in Japan) and low productivity on the plantations have burdened the companies that continue to invest in this product.
The argument that estate managers point out is that at present workers are paid the highest wages out of all wages boards and that at a time when other sectors like apparel and hospitality are not increasing their wages this is uncalled for.
An industry veteran said, “I don’t see why this is needed when we are paying more than the national minimum wage.”
In the meantime tea smallholders’ representative Ushan Samarasinghe pointed out to the Sunday Times Business that concerns of producers of the largest quantities of tea are not taken into consideration when matters of this nature arise.
But the subsequent implementation of these wage hikes has to be carried out by them as well, it was noted.
Meanwhile, on October 17 the Wages Board was summoned, following a request made by one of the members Ceylon Red Flag Workers Union General Secretary Menaha Kandasamy to increase the wages up to Rs.1700.
However, at this meeting there was no representation by the employers. As a result the matter has now reached the courts where the Wages Board has been asked to convene in order to reach a settlement within a months’ time. At present there has been no date mentioned for the summoning of the Wages Board.
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