Another plantation strike will have dire consequences - Ravi Peiris

by Lalin Fernandopulle

The tea industry will face adverse consequences and will be unable to recover from the colossal loss if plantation employees resort to another strike backed by Trade Unions, said Director General, Employers' Federation of Ceylon Ravi Peiris.

He said the tea industry has not recovered yet from the colossal loss it suffered due to the previous strike and its adverse effects which ran into billions of rupees. "The tea industry will collapse if employees resort to another strike of that magnitude", he said.

Plantation Trade Unions are demanding a wage revision for employees in keeping with the rising cost-of-living. The Unions are seeking an increase of the minimum wage to Rs. 200 which will make up their monthly basic wages to around Rs. 5,000. The minimum daily wage of an employee is Rs. 170.

"Estate employees demanding a wage revision undermining the collective agreement reached last year for a two-year period which included a 44 percent increase on the minimum wage per employee compared to the previous agreement is totally unfair", he said.

Many plantation companies are unable to increase the daily wages of employees due to the effects of the previous strike and the drought which followed immediately. Peiris said plantation companies are not willing to revise the wages of employees at this point of time since it is a violation of a collective agreement which is in force. The collective agreement signed in December 2006 will be in force up to December 2008.

Company sources said that they do not undermine the problems of the estate workers and the difficulties they encounter due to the staggering cost-of-living but some employees forget that they are entitled to a daily wage package of Rs. 260 which was introduced in the last collective agreement.

The wage package of an employee includes Rs. 20 as price share supplement which is a guaranteed payment and a Rs. 70 attendance incentive.

An employee has the potential to earn Rs. 6,760 per month if he works 26 days and an annual holiday pay of Rs. 3,230. The employee is also entitled to an attendance bonus of Rs. 850, gratuity irrespective of the number of days worked, 14 day wages of Rs. 2,380 paid annually and funeral aid of Rs. 2,000.

The non wage benefits of an employee includes free housing facilities, water, medical welfare, free transport to work and schooling, educational assistance, care for the retired and dependents and day-care facilities. Tea company sources said tea is the only industry that pays an incentive to its employees to report to work.

President of the All Ceylon Estate Workers' Union Ramalingam Chandrasekeran said plantation companies do not understand the problems of the workers and they do not look into the welfare of employees.

"The estate sector is one of the most poverty hit sectors where workers undergo enormous hardships with the minimum facilities. The cost-of-living has made life extremely difficult for a worker whose daily wage is insufficient to make ends meet", he said. Chandrasekeran said the Union called upon the Government in 2005 to look into the problems of the estate workers but up to now nothing has been done. "The Government promised to set up a commission to look into the grievances of workers but it was only a white elephant. Today an industry of over 600,000 workers and around 1.5 million dependents are taken for a ride", he said.

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