The Employers Federation of Ceylon (EFC) says the latest plantation wage agreement is a land-mark agreement for the plantation sector, as it recognises the concept of productivity-linked-wage increases.
“In this context, we are happy to note that the concept of productivity, which is imperative to the development of our economy, has been clearly recognised by the signatories to this Collective Agreement.
The Productivity Incentive which enables a worker to earn Rs 30 a day is a landmark in the history of collective bargaining in the plantation industry,” said a statement from the EFC this week.
The revised Plantation Workers Wage Agreement of 2009, signed this month, increased the total wage package of plantation workers by almost 40%. The wage package, which was Rs 290 per day, was increased to Rs 405 per day. This wage increase includes a 'Productivity Incentive.'
“We are happy that the trade unions have also recognised the importance of productivity as the means to sustain this industry at a time when it is needed most. The Regional Plantation Companies must also ensure a conducive environment to enable these workers to give of their best to the industry and thereby increase their daily earnings,” said the EFC.
The industry has 52 million man days per year and an increase of every rupee to the wage bill would amount to Rs 52 million per year. Sri Lanka, says the EFC, also has a much higher cost of production compared with Kenya and Indonesia. Cost of plucking is double than that of South India.
The EFC called on industry stakeholder cooperation to retain industry competitiveness. “Therefore, it is imperative that the companies, the trade unions, workers, and everyone genuinely interested in safeguarding this industry which has been the life blood of our economy for a number of years, do everything possible to ensure that the industry will remain viable and competitive,” said the EFC. |
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