Trade Union action delays production

The on going work-to-rule trade union action of the plantation workers will gravely affect the tea industry and the economy the Colombo Tea Traders Association warned.

The Regional Plantation Companies (RPCs) which are just emerging from a devastating crisis that affected the entire Tea Industry and in particular the Producer Sector, from August last year, have had their problems aggravated due to adverse climate conditions.

A severe drought, followed by unexpected rains, has negatively affected on cropping and consequently production.

This has destabilized cash-flow and propelled the cost of production to unprecedented levels. Already Sri Lanka's tea production has recorded a decline of 42.5 million kilograms up to the end of July, compared to a combined shortfall of all other tea producing countries of 32 million kilograms for the same period.

However, the Trade Unions, being insensitive to these circumstances, are intransigent in regard to their demands.