Trade Union action incurred a great loss

by Lalin FERNANDOPULLE

The loss to the tea industry due to the two-week Trade Union strike runs into several millions of rupees, said an official of the Planters’ Association of Ceylon (PAC).

He said the drop in estate sector tea production for over two weeks will result adversely to the tea export market which had made significant progress during the year.

“Foreign buyers will switch on to other markets forgoing the quality of tea offered by Sri Lanka to meet the demand of the world’s number one beverage”, he said.

Tea brokers said the slump in Ceylon tea prices due to the delay in production will lead to a major loss to the industry and the recovery would take a considerable period of time.

Plantation Unions struck work for over two weeks demanding an increase in their daily wages from Rs. 290 to Rs. 500 as the cost of living had gone beyond their means. The daily wage of a plantation worker was increased to Rs. 405 following negotiations with plantation Trade Unions, regional plantation companies and the Employers’ Federation of Ceylon held last Sunday.

The basic wage was increased to Rs. 285 with Rs. 90 attendance allowance and Rs. 30 being paid based on productivity. The basic wage previously was Rs. 260 with Rs. 70 being paid as attendance incentive.Chairman, PAC, Dhamitha Perera said a 40 percent increase in the daily wages is a significant achievement for the plantation workers who are entitled to various other benefits.The extra outgoing on wages for regional plantation companies is over Rs. 6 billion per annum which amounts to Rs. 250-450 million per annum for each company.

Trade Union agitations by certain plantation sector unions continued during the week urging other Trade Unions not to sign the collective agreement.

A collective agreement on the wages of plantation workers is signed once in two years. The last agreement was signed in October 2007.