Financial Times

Planter exodus threatens industry
An alarming exodus of planters, which is increasing year by year, threatens to destabilise the vital plantations industry, the island's main net foreign exchange earner.

The exodus could get worse if the managements of regional plantations companies do not take action to stop the outflow and when alternative opportunities outside estates become available in project management once the $4.5 billion pledged in foreign aid starts to flow.

"Turnover among planters is high and is increasing year by year," said Dan Seevaratnam, a former planter and now deputy executive chairman of Forbes Plantations and Kahawatte Plantations. "About 80 percent of those leaving are under the age of 55. It is the young planters who are leaving," he warned.

A study done by the RPCs had revealed that in the years after privatisation there had been a large exodus of planters with 85 leaving in 1998, 93 in 1999, 100 in 2000, 115 in 2001, and 120 in 2002. An estimated 140 planters are expected to leave the industry in 2003, according to this year's trend.

The most frightening aspect of the exodus was that 60 percent of the resignations was in the 31-45 year age group. "This age group forms the backbone of the industry," Seevaratnam said. "We have a problem about retaining our cream."
Asked in an interview what the industry was doing about the problem, Seevaratnam said: "Sadly, very little."

RPC managements were perplexed that despite giving better pay and perks they were not able to retain good planters. "Only a challenging job with opportunities for advancement will motivate and endear people," Seevaratnam said.Seevaratnam sounded the alarm bell by highlighting the exodus at the recent annual general meeting of the Ceylon Planters' Society.

The exodus of planters, along with the severe worker shortage, show that the human touch was more important than an impersonal annual increment and that a better rapport between working planters and their company bosses was required.

The management culture has to change with planters being encouraged to take pride in their work, with "endearing tactics" that recognised and appreciated their work, instead of the traditional hire and fire "military" way of managing plantations, Seevaratnam said.

"Today we must change the way we look at things," he declared. "Give more responsibility to superintendents and empower them by delegating responsibility with proper training." Although the impact of the exodus was hard to measure, Seevaratnam described its disruption cost as "tremendous."

With many of the planters leaving being the better ones, their replacement cost was very high, with about six months being needed to train and induct replacements.
And those leaving take away with them their training and knowledge of company policy and work ethic.

Exit interviews, by a team of RPC executives headed by Seevaratnam, with those who left planting had indicated two types of reasons for their decision. 'Pull factors' related to the external environment and included schooling for children and the consequent demands on time and money, planters' wives having jobs in Colombo and the difficulty of running two homes.

Also, some of today's young planters are not as much attuned to the environment of estates as previous generations. External factors were largely uncontrollable but internal 'push factors' were controllable and therefore can be avoided, Seevaratnam said. "Employers need to address the push factors," he said.

"We acknowledge that people are our greatest asset," Seevaratnam said. "Then what's going wrong? Why aren't we able to retain our best assets?" Seevaratnam warned that the exodus will get worse unless the RPCs change personnel management methods and with the looming possibility of forthcoming foreign aid-funded projects attracting planters as project managers.

"There's a danger that pull factors are going to become more and more in future," he said. With the $4.5 billion foreign aid pledged over the next four years, reconstruction work in the north and east is likely to be a further attraction for good managers as well as labour.

Planters would be particularly suited for such work given their knowledge of the Tamil language and command of a variety of skills acquired on the estates.
"Demand for project managers is likely to increase," he said. "The best managers are from the plantations. They are multi-skilled people and manage huge infrastructure logistics on a routine basis on plantations.

From the raw material to the end product it is all done by one guy." Despite the looming crisis caused by the exodus of planters, Seevaratnam said companies with a good image in the industry were still able to attract talented youngsters into the profession.

"Planting is quietly regaining its position as a preferred job," he said. "There is far greater interest now to join planting than maybe during the JEDB/SPC (Janatha Estates Development Board/ State Plantations Corporation) days."

Health spas for estates?
Health resorts and international schools on the plantations? That's the vision of Finance Ministry Secretary Charitha Ratwatte. He suggested that all stakeholders in the plantations industry get together to set up good schools as an answer to the difficulties planters face as they try to juggle the responsibilities of family life with their work on the estates.

"Why doesn't the industry set up good schools in the plantations - this could be the answer to the problem of planters running two houses," Ratwatte told the 67th annual general meeting of the Ceylon Planters' Society.

The industry could also set up health resorts, taking advantage of the salubrious climate of hill country estates, given the ageing population and emergence of smaller families, Ratwatte said.

"The industry has the land and other assets to develop health and education facilities in the plantations," he said. "There's money to be made in both. Why is it not happening? If it is a question of incentives - we can talk about it."

There was also good scope for leisure activity. "Some of the best hotel sites are on plantations," Ratwatte said. "The next season every room is fully booked. Will plantation bungalows be next?"

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