Planters Association unaware of estate sector salary rise

by Chathuri Dissanayake

The Planters' Association was caught unawares yesterday when Labour Minister John Senewiratne said the proposed salary increase of Rs.2500 would be extended to the estate sector as well. Planters' Association president, R. Rajadurai claimed that he was not informed of the decision."I was told that there was a talk but we were not informed. Our position is that we are unable to pay an increase. I don't know if this is to be given as an allowance or added to the basic salary. We will have to wait and see what it is all about," he said.

On Friday salary negotiations ended in a stalemate as the Regional Plantation Companies (RPCs) refused to meet the trade union demand citing plummeting tea prices.A request by Minister Senewiratne to increase the daily wage by Rs. 100 as an interim measure was also flatly refused.

Rajadurai said the Government was being insensitive to the crisis the industry was facing at the moment."Not only did they cut our fertilizer subsidy from the budget at a time when the prices are at an all time low, they have now requested us to increase salaries by Rs.100 per day, which is very unfair", he said.The RPCs have been paying wages through loans obtained from local banks; he claimed adding that the move is not sustainable in the long run."If the trend continues we may have to take it to our shareholders for them to decide. We cannot give commitments to pay when we don't have the capacity. We will have a pandemonium at the salary officer then", Rajadhurai claimed.

The trade unions were seeking the intervention of the Prime Minister to break the deadlock in salary negotiations with the RPC.

Muththu Sivalingam, President of Ceylon Workers Congress said the unions will hold off further action until Minister Senewiratne facilitates a meeting between Prime Minister Ranil Wickremesinghe and the unions to discuss the matter."The minister told us on Friday that there are only two options left, one was to report the matter to the Prime Minister and seek his intervention and the the other was to change the contracts of the RPCs. We will wait for the Prime Minister's advice before we take any action", he said.