Plantation companies submit formula for wages of workers

As the negotiations between plantation trade unions and Regional Plantations Companies (RPCs) are in a deadlock over the workers’ long-tanding demand of Rs 1000 as basic wage, the companies have come up with a fresh proposal suggesting it would exceed worker’s earning over thousand rupees while keeping the basic wage at Rs 700.

The final proposal was handed over to Minister of Labour Nimal Siripala de Silva on Friday following a meeting with chairpersons of all Sri Lankan RPCs.

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, according to a statement issued by the RPCs.

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.

“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.

Accordingly, the proposed fixed daily wage model will be implemented three days a week, and on the remaining days, RPCs have called for one of two productivity-based models to be implemented based on how suitable they would be to each RPC’s unique capacity - enabling workers to earn far more than the fixed Rs. 1,105.

Under the productivity-linked component, employees can earn Rs. 50 (inclusive of EPF/ETF) for every kilo of tea leaves plucked. In the case of rubber, this would amount to Rs. 125 (inclusive of EPF/ETF) for every kilo of rubber latex.

The statement has pointed out that there have been several proposals rejected out-of-hand by trade unions, who have failed to submit any viable alternative.

However, trade unions have accused plantation companies for delaying the implementation of the proposals which was proposed in the budget for this year.