Talks continue over plantation wage hike

By Shezna Shums

The discussions between trade union representatives and plantation companies have still not reached a conclusion to enable a tri-partite collective agreement to be signed between the Employers’ Federation, the Plantation Companies and the Estate workers’ Unions.  The collective agreement lapsed in March this year.

Discussions between the Employers’ Federation of Ceylon and the Joint Plantation Trade Union Centre, Lanka Jathika Estate Workers’ Union, the Ceylon Workers’ Congress (CWC), representatives of plantation companies and government officials that took place yesterday ended without any positive outcome.

Joint Plantation Trade Union Centre President S. Ramanadan told the Daily FT that the discussions were postponed indefinitely as the representatives of the plantations companies had to seek a direction from their Companies on the demands put forward by the plantation unions.

Ramanadan said that the main issue highlighted was that the basic wage of a plantation worker should be increased to suit today’s cost of living.

Currently a plantation worker earns a basic salary of Rs.285, plus an attendance incentive payment of Rs. 90 and a productivity incentive of Rs. 30, all totalling to Rs. 405 as a daily wage.

However he said that although no formal amount was put forward by the trade unions the request was that the companies should take into considerations the current cost of living and then revise the basic salary of plantation workers accordingly.

Minister of Livestock and Rural Development ArumugamThondaman; Deputy Minister of Economic Affairs, Muthu Sivalingam; Vice President of Ceylon Workers’ Congress, Harry Chandrasekera; Nuwara Eliya Member of Parliament P. Rajadurai and Joint Plantation Trade Union Centre President S. Ramanadam were present at yesterday’s meeting. The other union officials and stakeholders present were the Lanka Jathika Estate Workers’ Union General Secretary K.Vaidhyanandan; Member of Parliament Y.Yogarajan and S. Muhideen. The Employers’ Federation of Ceylon was represented by its Director General Ravi Perera.

S. Ramanadan opined that once the decision regarding the basic wage was ironed out, other matters affecting the plantation workers could be taken up at subsequent discussions.

“We will wait for the companies to come with their proposals and after studying this we will make a decision. The company representatives have returned to their companies to discuss our proposals,” he explained.

The representative of the Plantation Association said that the manpower days involved was 52 million and that the Planters’Association would be taking into a consideration a reasonable wage increase, as the industry had to be sustainable. He said that the wage increase would have to be sustainable and affordable to the companies concerned and that even a few rupees’ increase will run into millions of rupees for the companies. Since each company had approximately 12,000 to 15,000 workers the amount involved would be substantial. “However the Planters’ Association will look at the problem seriously and work out a reasonable increase to be included in the collective agreement,” said the Plantation Association representative.

The collective agreement between the Employers’ Federation, plantation companies, the plantation worker unions is discussed and signed once every two years.