CWC to sue plantation companies over unpaid wage hike

CWC Vice Chairman Thirukesh Sellasamy

• CWC Vice Chairman Thirukesh Sellasamy expresses frustration over many RPCs failing to comply
• Says CWC leader Senthil Thondaman has decided to sue plantation company owners for not adhering to daily wage hike rules
• Highlights some State-run plantation companies have adhered to Rs. 1,700 daily wage, while RPCs have requested more time to arrange funds
• RPCs confirm taking Govt. to court over 70% estate wage hike

The Ceylon Workers’ Congress (CWC) has decided to take legal action against plantation company owners who are not adhering to the Government-mandated daily wage increase of Rs. 1,700 for estate workers.

Speaking to the media, CWC Vice Chairman Thirukesh Sellasamy expressed frustration that despite a Government gazette notification requiring the Rs. 1,700 daily wage from last month; many plantation companies have failed to comply. 

“CWC leader Senthil Thondaman has decided to sue the relevant plantation company owners for not adhering to daily wage hike rules,” Sellasamy stated. According to Gazette Extraordinary No. 2381/35, issued on 25 April, the daily wage is set at Rs. 1,350, with an additional Rs. 350 bringing the total to Rs. 1,700, plus Rs. 80 for each extra kilogram plucked.

Last week, estate workers of low country issued a warning of a countrywide strike if the Government-mandated wage hike is not implemented within the week. 

Sellasamy highlighted that while some State-run plantation companies have paid its workers the Rs. 1,700 daily wage, other Regional Plantation Companies (RPCs) have requested more time to arrange funds. 

“We have given them time and half of this month is also already over. It seems like RPCs are just using it as an excuse to further delay the payments,” he said. 

Sellasamy also noted that some workers received only half of the payment, with promises that the remainder would be added to the next day’s wage, which has not yet happened.

On 1 May, President Ranil Wickremesinghe announced a sharp hike of 70% in the daily wage for plantation workers to Rs. 1,700 during the May Day rally of the CWC in Kotagala. 

So far, the State-run Elkaduwa Plantation Ltd., has taken steps to pay the increased wage to its 1,500 workers, whilst Planters’ Association of Ceylon (PA) noted that some RPCs have complied with the Government directive and others have not. 

On 12 June, PA confirmed that it has no option but to continue to oppose the sudden Wages Board decree to increase the fixed wage of tea and rubber sector workers by an unprecedented 70% on account of a lack of due process and unaffordability, with the matter being taken up for consideration before the Appeal Court and Supreme Court.

The RPCs have argued that they cannot afford the increased wages as the costs of tea production exceed market prices.

On 28 May, Cabinet Co-Spokesman and Minister Bandula Gunawardena said the Government would soon announce its stance on RPCs that have failed to implement the minimum wage hike, following the completion of a report by a Cabinet-approved special committee. 

On 23 May, the Cabinet of Ministers approved a proposal by President Ranil Wickremesinghe, in his capacity as the Finance, Economic Stabilisation and National Policies Minister, to form a special committee headed by the Secretary to the President and Treasury Secretary. The committee will study various issues, including the potential introduction of laws to cancel lease agreements of state-owned estate companies with poor management that are unable to pay salaries.

“Some plantation companies have informed the government that they cannot afford the increased wages,” Gunawardena noted.