The other side of the tea bush!

Director General of the Employers Federation of Ceylon (EFC) Gotabhaya Dassanayake claims that three unions which signed the Collective Agreement to end the three week old estate workers strike could ascertain the difficulties experienced by estate companies.

JVP MP Ramalingam Chandarsekar led All Ceylon Estate Workers Union blames that the three unions betrayed the workers struggle for higher wages.

Q: What were the reasons for estate workers to agitate and engage in a strike for three weeks?

G.D: There was no agitation as such. Since the privatisation for two years we have been negotiating and revising workers wages. The last wage agreement ended on October 31, 2006 and we were negotiating with unions to revise the wages.

The question of wage increase was not an issue but the amount was the issue. What happened was that some small unions which are not in the Collective Agreement misled workers and told them that they can get Rs.300 wage due to the cost of living. Since this is not a realistic figure, plantation companies could not agree and as a result they decided to go on a strike.

R.C: Low wage offer was the main reason for the strike. Companies delayed negotiations since July to finalize the Collective Agreement. For six months they did nothing. That led to a strike finally as unions could not agree on terms.

First they offered Rs.220 and due to immense pressure they agreed to Rs.240. But unions rejected that offer and insisted on a Rs.300 wage hike. But Thondaman and Chandrasekaran finally betrayed the struggle and signed the Collective Agreement for Rs.260.

Q: What are the benefits workers are going to get from the recently signed Collective Agreement?

G.D: Earlier collective agreements in 1998, 2000, 2002 and 2004 gave nearly 20 percent wage hike. The new agreement granted about 33 percent wage increase and the wage package increased to Rs.260 from Rs.195 according to 2004 agreement.

Three unions, Ceylon Workers Congress which has the largest membership, Lanka Jathika Estate Workers Union, the second single largest and Joint Plantation Trade Union Centre which has 12-15 unions realised the financial difficulties and economic viability of companies and finally agreed to end the strike for Rs.260 as responsible unions.

R.C: We can't see people receiving any benefit from this agreement. But people have to suffer for another two years with this low wage. I can't imagine how they will live with the increasing cost of living.

We could have still got Rs.300 if there were no traitors. These three unions should take the responsibility for the plight of the estate workers.

Q: Plantation companies claim Rs.260 as a daily wage of an estate worker. But the basic wage is as low as Rs.170. Receiving the balance amount is uncertain. So how can the companies talk big on this wage package?

G.D: It is wrong to interpret as such. The Rs.260 package is made up like this. Rs.170 is the basic wage. Then Rs.20 will added to the basic wage as fix Price Share supplement. Then another Rs.70 will be added as an attendance incentive which is totaling to Rs.260.

Workers will be guaranteed 25 days work. If an employee works 75 percent days or 18 and half days, he is qualified to get the attendance incentive. So according to the new agreement, a worker will draw Rs.6500 per month when compared with Rs.4875 according to the previous Collective Agreement.

R.C: That is what we are also saying. I am sure that 75 percent of workers will not receive the attendance incentive.

Majority of workers can't work 25 days because they get ill due to the weather conditions and poor diet. Companies know this. That is why they did not increase the basic wage much but gave a higher attendance incentive.

Q: Wages of estate workers have increased only by Rs.52 during the last decade. So how can this community live with such a low basic salary with the sky rocketing cost of living? Why can't the plantation companies treat them like human beings to lead a decent life?

G.D: The basic wage was Rs. 83 in 1996 and it increased to Rs. 135 in 2004. It is wrong to calculate the income of workers on the basis of basic wage. They receive a package of wage with other benefits unlike other workers in the country. The total package in 2004 was Rs.195. This should be viewed in a total context. Those who want to attack the agreement always take the basic wage issue.

R.C: That is the reality. Plantation company managers spend more than this amount to care for their dogs. Their dogs get nutritious diet but if you go to an estate you can see many children are crying for a drop of milk.

Cost of living Index has increased from 4786 points in November to 4998 points in mid December. Rs.260 wage hike is not sufficient to compensate increasing cost of living. Now the basic wage is Rs.170 and what can the people do with the Rs.170.

Q: JVP led All Ceylon Estate Workers Union and few other unions blame that three major unions betrayed the workers' struggle for a higher wage. Any comment?

G.D: I think it is a very unfair comment. It is wrong to say that three unions which signed the agreement betrayed the struggle. None of the three unions CWC,JEWU and JPTUC had any common political agenda. They represented different political back grounds.

After they signed the agreement, the Up Country People's Front endorsed the agreement. Trade unions which are blaming that it was a sell out are hardly having any representation in the plantation sector. They don't have much membership in plantations. It is due to this ignorance they make such a statement to mislead workers. If it is the latter, it is a very unfortunate situation.

R.C: Betraying is not a new experience for these so called unions who wine and dine with Plantation companies top managers always. The history of betrayal in these unions goes back to many decades.

Some plantation companies told us that they can pay even Rs.275 if the Government consider providing them some subsidies. These three unions knew that if much pressure was exerted by other unions on companies, workers could have got Rs.300. That is why all of a sudden these unions signed the agreement. After this great betrayal angry workers burnt effigies of Thondaman and put banners blaming betrayers.

Q: Unions says that a majority of the workers will not get the attendance incentive and companies have given such high amounts as attendance incentive because companies know that finally the majority of workers will not get qualified for it. Is it true?

G.D: One of the major problems in estates is the poor attendance. Plantation Companies provide all facilities to estate workers and it is their duty to attend to work. Unlike other industries in the country, you need to compare facilities given to estate workers.

R.C: That is the truth. That is the reality. Finally workers will have to be satisfied with Rs.190. Just imagine how a worker can run his family with Rs.190 income a day. Workers monthly salary is enough for ten days with the increasing cost of living.

Q: Plantation companies charge millions of rupees as management fees and top management officials enjoy luxury at the cost of the sweat of estate workers but are reluctant to grant at least a Rs.100 wage hike. How do you claim that companies are providing all facilities to workers?

G.D: Management fees have been restructured. It is no longer an exorbitant fee. If anyone has doubts they can contact the Planter's Association. Management fee was decided at the time of privatisation.

It is totally incorrect to suggest that if the management fee is done away, companies can afford to pay 300. Remember one rupee increase is an increase of 50 million per annum because there is 50 million man hours per year.

Management fee figures and other figures have very little corelations. All Companies are providing medical facilities, making available food stuff at the door steps, electricity, water on tap, cottage houses, there is no traveling expenses for workers, etc.

Eight companies registered losses during the last financial year. Hopefully we will pray that the tea prices will increase and stabilise in 2007. Otherwise, many companies will register losses.

R.C: Only few people can understand this reality. If companies claim losses, it is not due to the increase of wages for workers. It is a peanut when compared with the millions of money spent on luxury by the top management of plantation companies and management fee.

Some top manager's cars can go only one or two kilometers maximum from a petrol litre. They get six figure salaries. To maintain these people, workers have to work tooth to nail inside tea bushes with empty stomaches. But when workers cry for a decent salary, these managers come out with lots of excuses to give a minimum wage hike.

Q: Low cost of production is one of the key advantages for the Sri Lankan tea industry to be competitive in the world market. With the recent wage hike and unnecessary expenditure by companies to up keep top management in a luxurious way, how can the Sri Lankan tea be competitive in the world market here after?

G.D: After this wage increase, the cost of production increased at least by Rs.20 pushing the average cost of production to Rs.200. So we have to have tea prices at least 10 percent above the cost of production.

R.C: Wage hike has no major impact on the cost of production. What is required is to reduce millions of unnecessary expenditure at top management. There is no proper marketing plan to capture new markets. What we do is to just cater to existing buyers.

Q: How much was lost due to the strike?

G.D: The loss due to the strike can't be quantified at this juncture but the revenue loss is about Rs.3 billion. Even though the strike is over, it will take at least two months to settle down to plucking because leaves have matured as they were not plucked on time.

Once again negotiations to revise the wage agreement will be taken up in 2008. Hopefully we will not run into this type of problems again because the industry cannot afford this type of problems anymore.

R.C: Companies should take the blame for the total loss. They delayed and provoked the workers. That is why this issue dragged for over three weeks. I hope that at least hereafter, companies will address the issues of workers as soon as possible.

Q: Companies are boasting about providing facilities to workers but if you go to an estate you can still see workers are living in line rooms for generations. What is the validity in their argument?

G.D: There are no longer line rooms in most of the estates. Line rooms existed 40 years ago. Cottage houses have come up. You can get these details from the Plantation Housing and Development Trust.

If anyone visits the hill country, may be except for a few estates, cottage houses have been built in most of the estates. You will see televisions, radio, electricity, water, and all other necessary facilities available for plantation workers.

R.C: I request Mr.Gotabaya to visit estates in Hatton, Bagawantahlawa, Samimale, Madolsima, Passara, Lunugala, Deniyaya, Ratnapura and many other areas. Either Mr.Gotabaya is blind or ignorant of the reality. Still 95 percent of workers are living in small line rooms for generations. I believe that Mr.Gotabaya's two dogs are having a better diet than the children in estates.

The two dogs must be sleeping on mattresses and workers are sleeping on the floor. His statement proves the duplicity of the employers. Gotabaya should know that estate workers are the only people in the world who eat "Roti" even without adding coconut for two meals because they can't afford three meals.

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