Following wage increase:

Plantation managements, TUs at loggerheads over productivity norms

By P. Krishnaswamy

Plantation managements and workers' trade unions are at loggerheads over the crucial productivity norms, following the recent wage increase to the nearly 400,000 tea and rubber plantation workers.

While the Unions have refuted estate employers' claims that the recent wage increase for workers is linked to increased productivity, the Employers' Federations of Ceylon (EFC) and the Planters' Association of Ceylon (PA) representing the 23 Regional Plantation Companies (RPCs) told at media briefings that the security and sustainability of the tea industry have to be considered as crucial factors in the wake of the 'phenomenal wage increase' under the June 09 Collective Agreement (CA).

Cooperated

They also have stated that unless the trade unions, workers and all other stakeholders of the industry cooperated and assisted the companies in increasing productivity, the companies would not be in a position to offset the additional expenditure incurred on the wage increase which, in turn, will impair the long-term sustainability of the industry.

The media briefings were sequel to a five-day strike in the first week of July by workers of three estates in Bogawantalawa in protest against the alleged 'arbitrary increase' of the plucking norms (productivity norms) by the estate managements.

Director General of the EFC Ravi Peiris, and Chairman of the PA Lalith Obeyesekera, told the Sunday Observer that increased productivity is absolutely necessary since tea production cost in Sri Lanka is at least two times more compared to other tea exporting countries like South Africa, India, Kenya and China. Also the yield per hectare in some of those countries is very much higher. The 27 percent wage increase offered to the plantation workers is phenomenal compared to the other sectors in the country, they said.

Agreement

CWC President and Deputy Minister Muthu Sivalingam, Lanka Jathika Estate Workers' Union (LJEWU) General Secretary K. Velautham and Joint Plantation Trade Union Center's (JPTUC's) President S. Ramanathan who are signatories to the CA told the Sunday Observer that the last agreement of June 6, related only to the wage increase while the clauses of the main Agreement of July 24, 2003 were still valid on any revision of norms.

They cited the relevant clause and the sub-clause which read as: "The Unions undertake to support the improvement of productivity at estate level by discussions between the Superintendents and the Union Action Committee and variable norms shall be computed at estate level in keeping with the spirit of the preceding clause in consultation with the estate committee, which matter shall be discussed at estate level in case of any dispute.

If the dispute cannot be resolved at estate level the disputes procedure contained herein shall be followed.

The agreed variation of norms will be recorded in the Estates Minutes book if available and exhibited on the Notice Board."

Deputy Minister Muthu Sivalingam added that the Plantation Management Companies should consider the fact that the Government had taken over estate schools, hospitals, housing, maintenance of the road networks, water and electricity supply, relieving them of the expenditure on them.

Leaders of plantation trade unions that are not signatories to the CA but have considerable membership, including General Secretary of the All Ceylon United Workers' Congress (ACUWC) S. Murugiah and A. Muthulingam, United Plantation Workers' Congress (UPWC), expressed similar views as the three major unions.

The Sunday Observer spoke to some Senior Estate Managers in Hatton and Nawalapitiya, in the hub of the tea export production region and their approach on the issue seemed innovative and encouraging. They said that they realised the pressing need for increased productivity but they were not taking any arbitrary decisions towards achieving that objective.

They were moving in the matter in terms of the CA and were holding discussions with the estate level trade union leaders, including the women leaders, and other stakeholders in an effort to impress upon them the need for increasing productivity by making them to understand that the sustainability of the industry and the livelihood of their younger generation will depend on this crucial factor.

They dismissed the Bogawantalawa agitation as an isolated incident and confirmed that very good employer-employee relations prevailed in all other regions. The workers were happy with the wage increase, they said.

Senior Manager of Bogawana Estate, Bogawantalawa Udeni Navaratne who has a workforce of 1,200 in the three divisions of his estate said that the plucking norm of 14 kg for women and 12 kg for men is the lowest compared to all other regions but the workers agitate against any increase because this has remained the unrevised norm for many decades in spite of the fact that the soil in the region is fertile and increased productivity is easy to achieve. They annually re-plant 02 percent of the total area, do manuring and other maintenance with the resultant higher production cost.

There has been no workers' agitation whatsoever in his estate, a good employer-employee relations prevails and the management would hold discussions with the local estate level leaders on increasing the norm when deemed necessary, he said.

Senior Manager of Lonack Estate, Watawala, A. Jayaram with a workforce of 400 said that they would have to increase the norm by at least 2 kg from the present 16 kg and he is now in the process of holding discussions with the estate level leaders on it. He said that he is maintaining cordial relations with the employees and there is no threat of any agitation.

Exemplary

Senior Manager of Imboolpitiya Estate, Nawalapitiya, C.R. Randeniya who has a workforce of 500 stood out as an exemplary planter who has introduced several incentives for the mutual benefit of the employers and the workers including the establishment of a divisional participatory committee to discuss matters relating to increase of norm, workers' grievances and welfare measures.

Taking into account the fact that the workers are lured for work with higher wages to the bordering Nawalapitiya town and the surrounding villages, he has introduced several measures of economic welfare in a successful effort to retain them in the estate.

The measures include the allotment of lands to the workers to the extent of half-an-acre for vegetable cultivation with Provision of seeds and loans through the local cooperative society and the facility to market them at a monthly 'pola'.

A cash plucking system, task work system and double name per day system achieve targets. He said that cordial relations existed between the management and the workers and expressed optimism that they would be able to increase productivity.

Revisions

Senior Manager of Kenilworth Estate, Watawala, Alex Samuel said that the 13 kg norm which was fixed in 1970 still remains in force without any revisions. The management wants to raise it to 16 kg which is 'very easy to achieve target' and they will soon take up the matter for negotiations with the local union leaders, he said.

Income from rubber plantations and palm oil projects owned by their company (Watawala Plantations Ltd.) is helping to cushion the financial strains on the tea sector, he said.

They also incur huge expenses on sundry work, weeding, shade planting and shade lopping and manuring, he said.

The proposed 16 kg norm is very reasonable considering the fact that Watawala gets the highest rainfall in the country and the cropping season extends to nine months every year. A meeting with the estate level leaders is scheduled for next Wednesday, he said.