Estate workers' daily wage increased to Rs 620:

Collective Agreement between plantation trade unions and EFC lauded

By P. Krishnaswamy

The signing of the of Collective Agreement (CA) last Thursday between the three major plantation trade unions and the Employers' Federation of Ceylon (EFC) fetching an increased wage of Rs. 620 to the estate workers was lauded as a success and welcomed by a cross section of the plantation community and their representatives.

It is remarkable that unlike on many previous occasions when negotiations dragged on for months , resulting in TU action and agitations causing heavy losses to the industry, the parties to the agreement this time around reached a settlement just within one week of the expiry of the biennial agreement.

The previous CA expired on March 31, 2011 and, although negotiations began months before, a settlement was reached only in June 2011, paving the way for the June 6, 2011 fresh CA which provided for a wage increase of Rs. 515 with retrospective effect, subject to some conditions. The basic wage was Rs. 380, Price Share Supplement (PSS) was Rs. 30 and the Attendance Allowance (AA) was Rs. 105.

Under the current agreement the Basic Wage has been increased to Rs.450, an increase of Rs. 70, the PSS remains the same Rs. 30 and the AA has been increased to Rs. 140, an increase of Rs. 35. The EPF, ETF and Gratuity payable by the employer on this wage increase works out at Rs. 81 and thus, the total increased wage is Rs. 701, TU sources said.

Deputy Minister Muthu Sivalingam who is President of the Ceylon Workers' Congress (CWC), the Union that represents a bulk of the plantation workers, told the Sunday Observer that this is a unique achievement for the workers of the plantation sector since workers of the other private sectors have not been able to get any salary increase in the recent years.

He expressed optimism that the wage increase will contribute to sustainability of the industry and increased productivity. The CA signed between the TUs and the EFC, representing 22 plantation management companies, will be gazetted and extended to the entire plantation sector, including the Janatha Estates Development Board (JEDB), the State Plantation Corporation (SPC) and the tea small holders. In addition to wage increase, the workers are assured of living quarters and many other welfare facilities in the estates, he said.

The UPFA Government implemented programs for improving the living and socio-economic conditions of the plantation communities, including programs of housing, infrastructure, education, health and state employment. These programs are continuing, he said.

Former parliamentarian K.Veluatham who is General Secretary of the pro-UNP Lanka Jathika Estate Workers' Union (LJEWU), one of the signatory unions to the CA, said that with the wage increase a plantation worker will receive an average monthly remuneration of Rs. 15,500 which will help him, to some extent, cope with the current high cost of living.

The wage increase will also help towards improving their standard of living and all plantation workers should be content, he said.

Secretary General of the third signatory Union, the Joint Plantation Trade Union Centre (JPTUC), also said that it is a very successful agreement. This was achieved in spite of false propaganda and opposition from some politicians with no trade union background but with their own political agenda. The government will issue gazette notification extending the terms of the CA to the entire plantation sector and consequently all workers will be benefited, he said.

In a press release issued on the CA, the EFC has stated that they have agreed to it on the understanding that the workers will cooperate with them to increase productivity and efficiency. The full text of the release:

The Director General, EFC, on behalf of the Regional Plantation Companies has stated that the Companies which subscribed to this Agreement to grant a revision has done so with a lot of expectation and confidence on the part of the Trade Unions and the workers. Most of the Companies will not find it easy to sustain the impact of this revision. They have agreed to it on the understanding that the workers will cooperate with them to increase productivity and efficiency.

The daily basic wage package of a plantation worker has been increased from Rs. 515 to Rs. 620. This amounts to a 20 percent increase up front for a period of two years. 20 Regional Plantation Companies subscribed to this Agreement through the EFC.

The new wage package will ensure payment of a sum of Rs. 15,500 for 25 days work per month provided the worker has an attendance record of over 75 percent for a month. In addition, the Agreement has also revised the rate of over kilos by Rs. 3. This would mean that anything above the norm plucked will be paid at Rs. 20 per kilo.

The plantation industry has always upheld the dictates of freedom of association and the right to collective bargaining in a very comprehensive manner through Collective Agreements, ever since privatisation in 1992.

It is encouraging to note that the Collective Agreement negotiations this time around have been concluded much earlier than usual. Consequently, the benefits of the Collective Agreement can be granted to the workers right away.

It is important to realise that, although much could be said about the improvement of the quality of life in the plantations, it is the duty of all stake holders in the industry to protect and enrich this industry which has been the lifeblood of our economy for many years.

The government, the regional plantations companies, trade unions, media and the public - all have a role to play. Very often what is projected about the plantations does not help in improving the industry. It is time that all of us who are interested in the progress of our country, assist to sustain this industry in a responsible manner.