 The Planters Association says a one rupee increase in plantation worker wages, translates into a Rs 68 million increase in plantation sector costs per year and a 52 cents increase in the cost of producing 1 kg of tea.
“The impact of a one rupee increase in wages, is a Rs 68 million annual increase of the wage bill alone, excluding allowances, rates and gratuity,” said the Deputy Chairman of the Planters’ Association of Ceylon, Lalith Obeyesekere at a press conference this week.
“At the moment a worker is paid Rs 290 per day. This includes a Rs 70 attendance incentive but this is one of the highest wage rates in the world for the plantation sector,” said Mr Obeysekera.
The plantation companies are gearing for another round of wage talks with trade unions. Preliminary discussions on a new Collective Agreement have already started, but talks have still not got round to the crucial area of ‘numbers’. The existing Collective Agreement that sets out wage conditions for nearly 250,000 people working the plantation sector, expires at the end of this month.
However, this year’s wage talks are expected to be tougher as the plantation companies are in the middle of a cash crunch precipitated by the global recession.
The planters say they have already invested large amounts of money on plantation sector development. |
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