Sri Lanka's Estate Sector Pay Fiasco

by Zulfick Farzan 11-05-2024 | 7:12 PM

COLOMBO (News 1st); Confusion surrounds the recent announcement of a daily wage increase for Sri Lanka's plantation workers.

President Ranil Wickremesinghe declared a hike to Rs. 1,700 during a May Day rally. However, the Planters' Association of Ceylon (PAC) Spokesperson, Roshan Rajadurai, clarified that the agreed-upon pay structure includes a Rs. 1,200 base salary with additional benefits and production incentives.

The official Gazette notification details a daily wage of Rs. 1,350 with a Rs. 350 special allowance, reaching Rs. 1,700. Additionally, workers receive Rs. 80 per kilogram exceeding oil extraction quotas, a 150% increase from the previous rate.

Ceylon Workers' Congress (CWC) President Senthil Thondaman insists on the Rs. 1,700 daily wage. He expects the government to uphold the announced figure and threatened "strict action" against plantation companies if they fail to comply.

NPP National Executive Committee Member Arun Hemachandra raises concerns about the timing and scale of the increase. He suggests a potential political motive, questioning if the government prioritizes public perception over worker well-being.

"Concerns arose that public participation in May Day Rallies would be low. This may have led unions, fearing an unsuccessful May Day, to present a united front and announce a significant salary increase for plantation workers through the president. However, this announcement raises questions about the sincerity of this move," he said.

M. Velu Kumar, Member of Parliament, criticizes the Estate Companies' initial acceptance of the Rs. 1,700 wage followed by their apparent backtracking. He urges them to honor the initial commitment or retract it entirely.

While the President announced a Rs. 1,700 daily wage, the official structure outlines a lower base salary with allowances and incentives.

The CWC demands the full Rs. 1,700, while concerns emerge about the true intentions behind the increase and the Estate Companies' ability or willingness to pay.