Tea estates become hotbed for election promises
The government has been involved in bringing out this new wage structure for estate workers following discussions held recently with estate sector trade unions without considering the proposals put forward by the Planters Association (PA) or other stakeholders. The latest wage hike has been gazetted just ahead of key elections scheduled to be held later this year and could be crucial to gaining ground.
At a recently held meeting there had been proposals put forward by the trade unions representing the Ceylon Workers Congress (CWC) calling for an increase of the wages to Rs.1700. However, it is learnt that the stakeholders present at the meeting had raised concerns regarding their inability to make this payment.
Although the Planters Association had been invited for the meeting based on legal advice they had refrained from attending the said meeting.
It is most likely that the government had taken upon itself to issue a gazette to ensure that the requested wage hike be effected.
PA Spokesman Dr. Roshan Rajadurai said the proposed wage hike was impossible to pay since it overrides the cost of production. This increase in wages is a 70 per cent hike and it is not possible for the industry to sustain itself at these rates.
With the cost of production reaching close to Rs.1000, Dr. Rajadurai asked who will pay 70 per cent more under these circumstances.
The PA will engage in consultations with the Employers’ Federation of Ceylon (EFC) and make their objections against the new gazette for which time is available under May 15. It was pointed out that they did not receive any feedback regarding the proposals put forward by the PRCs.
The RPCs agreed to grant an additional increase in allowance of Rs.200 per day or Rs.5000 per month or equal to 22 per cent increase in take home wage on an attendance based wage.
In terms of productivity based model the RPCs proposed to pay Rs.65 per kilo of green leaf that would amount to Rs.1300 for 20 kgs or equal to 33 per cent increase in take home pay.
He pointed out that this is not how matters should be resolved; on the other hand the authorities should be able to work out a long term solution.
Galle Kalutara Smallholder Tea Growers Association President Ushan Samarasinghe said this ploy of increasing wages is just a means of targeting the upcoming elections later this year.
“We are small and medium scale estate owners and we have invested money in estate lands and we employ people on the estates as well so the extent of these decisions is severe,” he said.
If decisions like these are taken then some of the estate owners may opt to leave the plantations as it is not viable to carry out work, he said.
Factory Owners Association former President Harith Ranasinghe said that despite the proposals put forward by them the authorities have come up with their own decisions.
This is the second increase in wages proposed by the government, he said adding that authorities must be aware that the sale of tea is determined at the auctions and that there is no minimum price fixed.
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