President ‘directs’ estate wage hike

Plantation companies have conceded to a wage increase for plantation workers and entered into a collective agreement with the unions following a “Presidential directive” to increase salaries--but are complaining that the industry cannot afford the increase. The Collective agreement was signed on Wednesday between the three trade unions including the Ceylon Workers Congress (CWC) and the UNP backed Lanka Jathika Estate Workers Union (LJEWU) and the Employers’ Federation of Ceylon (EFC) representing 21 plantation companies.

EFC Plantation Services Group chairman S.K.L.Obeysekere said that plantation companies had no choice but to increase the wages as it came in the form of a ‘directive’ from the president to increase the basic wage to Rs. 200.“Many companies are finding it extremely difficult to sustain profitable business. Most of them are surviving thanks to their rubber estates which have helped them to break even,” Mr. Obeysekere said.

He claimed that a plantation worker now earned a monthly wage of Rs. 7,250 with 25 days of work a month-- a claim disputed by UPF Leader and minister P. Chandrasekaran. He claimed that a worker could not go to work for more than 20 to 23 days a month, when taking into consideration holidays and personal inabilities.

The wage increase came after President Mahinda Rajapaksa directed Labour Minister Athauda Seneviratne to initiate discussions with the plantation companies and prepare a new salary scale for the estate workers. The directive for negotiations was given last month, soon after the fallout of the CWC with the government and the decision by CWC leader Arumugam Thondaman and other members to resign from the cabinet. The president’s order for a wage increase led to Mr. Thondaman and other CWC leaders rejoining the government. Earlier last week President Rajapaksa had sought the assistance of the UPF to prevent the estate workers heading for a general strike, but eventually the CWC, the LJEWU and the Joint Plantations Trade Union Centre signed the collective agreement for a Rs. 200 basic wage.

The move has angered the UPF which has now opposed the new collective agreement and is demanding that the minimum wage be increased to Rs. 300. Minister Chandrasekaran said they would be meeting other trade unions in Colombo on Wednesday to decide on action to demand a further increase.

He said the agreement was signed without consulting any of the other trade unions.“They did not consult us or the workers about the agreement before they signed it. They signed it hastily because they wanted the ministerial posts in the government. I am told that other union members even in Mr. Thondaman’s own party were not aware of the details of the agreement,” Mr. Chandrasekaran.

The UPF did not make a demand for a wage increase earlier. Meanwhile, CWC Vice President R. Yogarajan said they were challenging the UPF to get a better deal for the workers.“We ask the UPF to advice its members not to accept the wage but to demand for better wages. We will support their decision to do so,” he said.