New deal reached to offer Rs. 1,350 wage structure for plantation workers

In a significant development, wage negotiations culminated in an agreement to provide a daily minimum wage of Rs. 1,350 for the estate sector workers. 

The decision was made during a meeting with the Estate Sector Wage Control Council at the Labour Department yesterday, after many rounds of disagreements between companies and trade unions.

The stakeholders have now agreed to a basic salary of Rs. 1,350 with an additional Rs. 50 based on productivity model. The new wage structure will come into effect once Gazette is published and will remain valid for three years.

The move comes in after the Government on 13 August issued a gazette notification announcing a minimum wage of Rs. 1,700 for workers in the rubber and tea industries. 

(http://documents.gov.lk/files/egz/2024/8/2397-27_E.pdf)

The finalisation of the wages was seen as a crucial step toward improving the livelihoods of plantation workers, who have long advocated for better compensation.

“The Rs. 1,350 is without EPF and ETF. With those included, it will be over Rs. 1,500. Under this agreement estate workers of both tea and rubber have the potential to earn more. The workers can earn over Rs. 50 based on the productivity model,” an industry source informed the Daily FT.

The meeting saw participation from estate owners and plantation trade unions.

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 Ceylon Workers’ Congress (CWC) in Kotagala. 

The contentious Gazette Extraordinary No. 2381/35, issued on 25 April, had set the daily wage at Rs. 1,350 with an additional Rs. 350 to total Rs. 1,700, plus Rs. 80 for each extra kilo plucked. 

This increase in wages was applicable for the workers employed in the tea growing and manufacturing industry as well as for the workers employed in the rubber growing and raw rubber processing industries.

At present, plantation workers receive Rs. 1,000 basic wage plus EPF/ETF and after plucking the set target of 20 kg and are paid an additional Rs. 40 a kilo.