RPCs present final proposal on worker wages at Rs. 1105 per day

A final proposal on wages to plantation workers was presented at a meeting on Friday between the Minster of Labour Nimal Siripala de Silva and the Chairmen of all Sri Lankan Regional Plantation Companies (RPCs).

This proposal takes into consideration the sustainability of both the industry and livelihoods of plantation workers, the Planters Association said in a media release.

“After a very productive meeting with the Minister, RPCs have arrived at a final consensus on what we can sustainably offer, while providing the highest possible earnings potential for our workers. Our final offer amounts to a 30 per cent increase in earnings on the fixed model, and there is no upper limit to what workers can earn under the productivity-linked components. This is the first step to modernising our entire industry, and moving beyond a basic daily wage system which is a relic of the colonial era and long overdue for an update,” the statement said.

“We have gone well beyond the Rs. 1,000 daily wage demand of trade unions, and this follows a 40 per cent increase from just two years ago. At a time when others in the apparel and leisure sector are slashing wages and retrenching workers, ours is one of the precious few export industries which has shielded our employees from the negative impacts of the pandemic, and is actively pursuing a wage increase. This is no easy feat, and without improvements in productivity, it will still be extremely difficult for any RPC to remain financially sustainable. There is clear understanding from the Government on our position, and it is now up to trade unions to make the right decision,” it said.

Under the final proposal, RPCs are offering a fixed daily wage of Rs. 1,105, with the re-introduction of attendance and productivity incentives - a feature which trade unions had strongly and consistently opposed in the past, but have since reversed their position in the most recent negotiations.

The breakdown is as follows: Basic Wage – Rs. 700, EPF/ETF – Rs. 105, Attendance Incentive – Rs. 150 and Productivity Incentive – Rs. 150. Under the new proposal, workers will receive a substantial Rs. 6,250 increase to their monthly earnings, it was stated.