RPCs insist Rs.1000 basic wage unaffordable
The Planters Association (PA), representing the Regional Plantation Companies (RPCs), said on Thursday that most companies were not performing well and continue to insist on the affordable all-inclusive wage hike of Rs.940 or the proposed Rs.46 per kilo with Rs.600 as gratuity.
PA Chairman Sunil Poholiyadde, at a news briefing held on Thursday at the Sri Lanka Tea Board, painted a gloomy picture of the current conditions of the plantation industry and the crises they face in terms of an absence of glyphosate; non-access to the Japanese market due to high residue levels in tea; and the unfortunate situation of no agreement with the estate worker unions on a wage hike.
The last wage hike had seen an increase in the basic wage upto Rs. 500 which workers today want to increase to Rs. 1000 but the RPCs complain they could ill-afford such a high increase and can only push for a 20 per cent hike that would boost the basic wage to Rs.600.
However, Mr. Poholiyadde noted that they have pointed out to the unions that once the norm is achieved they still could achieve Rs.1000 as a daily wage if they continue to pluck more for which they are paid Rs. 28 per kilo.
Employers Federation of Ceylon (EFC) Plantation Services Group Chairman Roshan Rajadurai highlighted that the industry needs to move to a hybrid model and have even proposed to the unions to enter into a Rs.46 per kilo wage hike with Rs.600 as gratuity.
He insisted that though the norm was still at 18 kg the average plucking per day was now at 20 kg as a result of which workers could easily earn more and that some were already taking home Rs.30,000 – 40,000 per month.
EFC Director General Kanishka Weerasinghe noted that the companies were trying to find a sustainable solution and that it was important to understand that there has to be a compromise reached between the parties.
He also said that there is a need to think about the national economy and pointed out that a clause was added to the last Collective Agreement that included provisions for a new model.
Since the RPCs were established in 1992 the workforce on the plantations have reduced from 350,000 to 150,000 and today the companies want workers to take charge of blocks of the estates and engage in a revenue sharing model to improve productivity.