'Security, sustainability of tea industry vital'

by P. Krishnaswamy

Plantation trade unions have refuted estate employers' claims that the recent wage increase for workers is linked to increased productivity. The Employers' Federation of Ceylon (EFC) and the Planters' Association of Ceylon (PA) representing the 23 Regional Plantation Companies (RPCs) told a media conference that the security and sustainability of the tea industry were paramount and unless the trade unions, workers and all stakeholders 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.

The media conference was a sequel to a five-day strike in the first week of July by workers of three estates in Bogawantalawa in protest against the increased plucking norm (productivity norm) imposed by the estate managements and the subsequent intervention by the Assistant Commissioner of Labour in Hatton to settle the issue.

CWC President and Deputy Minister Muthu Sivalingam, Lanka Jathika Estate Workers' Union General Secretary K. Velautham and Joint Plantation Trade Union Centre's President S. Ramanathan who are signatories to the Collective Agreement told the Sunday Observer that the last agreement of June 6, 2011 was on the wage increse only while the clauses of the main agreement of July 24, 2003 were still applicable on revision of 'variable norms'. As per the relevant clauses of the agreement, revisions have to be done in consultation with the estate level leaders. But the management of some estates were doing it arbitrarily leading to industrial unrest, the Union leaders said.

EFC Director General Ravi Peiris and PA Chairman Lalith Obeyesekere 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 such as India, Kenya and China. Also, the yield per hectare in some of these countries is higher.

The 27 percent wage increase offered to the plantation workers is phenomenal compared to other sectors in the country, they said.

All stakeholders, including the workers and the trade unions, should support and cooperate with the management companies in their efforts to increase productivity, considering the long-term sustainability of the industry, they said.