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Call for wage hike in estate sector:
Plantation companies propose productivity-based increase
Regional Plantation Companies (RPCs) which shot down the claim for
higher wages for workers by Trade Unions (TUs) have proposed a
productivity-based wage increase to boost output per worker and enhance
export volume.
However, Trade Unions are insisting that there should be a
substantial wage increase in keeping with the rising cost of living.
Ceylon Workers Congress sources said it has called for the daily wage of
a worker to be increased to Rs. 1,000.
 Negotiations
between the two parties ended in a stalemate with RPCs sticking to its
guns that any wage increase should be based on productivity. While the
battle for a wage hike rages, the Planters’ Association of Ceylon, the
apex organisation of RPCs called a media briefing last week to present
its position on the wage increase and clear misconceptions regarding
RPCs.
Chairman, Planters’ Association of Ceylon, Roshan Rajadurai said RPCs
cannot fully satisfy the demand of TUs given the current drop in tea and
rubber prices, triggered by the crisis in the Middle East and Russia
which are major buyers of Ceylon Tea.
“We cannot meet the expectations of the TUs in toto due to the double
hit on prices of rubber and tea which have dwindled sharply in recent
months. We have forwarded a productivity-based and equitable proposal
for a wage hike to boost the output of workers. We are concerned about
the cost of living of workers,” Rajadurai said.
“However, we are continuing negotiations and hope to reach an
amicable solution soon. Negotiations on the wage increase are on going
and we cannot disclose figures until a final agreement has been reached.
We have proposed a fair increase where a majority of workers will earn
much more than what they do today,” Rajadurai said.
The collective agreement on wage revision is signed once in two
years. PAC officials said that RPCs offer many benefits in addition to
the wages and the standard of living of RPC workers was high. According
to RPC estimates, a one rupee increase in wages, increases the cost of
production of tea by 52 cents per kilogram.
In addition to the statutory benefits such as Employees’ Provident
Fund and Employees’ Trust Fund, gratuity, RPCs also provide holiday pay
and attendance bonuses medical, maternity, housing and other healthcare
benefits. The daily cost borne by a plantation company in employing a
worker is around Rs. 700.
However, Trade Unions have been agitating for a fair hike in wages
for plantation workers in keeping with the cost of living.
Rajadurai said RPCs could not meet the expectations of Unions
regarding a wage increase and could only pay what they have earned as
revenue and also stressed on the downward price movement for tea and
rubber in the world market which they cannot absorb.
“We get Rs. 100 less on a kilogram of tea this year than last year,”
he said.
“RPCs have maintained worker standards and have increased production
in estates. We provide facilities for education and healthcare and look
after our workers well,” PAC Secretary General H. Malin Goonetileke
said.
“We offer a good wage to workers to boost productivity. Our aim is to
improve productivity per worker and be competitive in the global market.
High production cost compared to our competitors and low output of
workers have been obstacles to the growth of the plantation sector. - LF
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