Regional Plantation Companies (RPC’s) are losing over Rs. 200 million per day and a collective loss per month of Rs. 6.25 billion due to the ongoing trade union action in tea plantations, said Planters’ Association Ceylon spokesman, Roshan Rajadurai.
Rajadurai said that while the trade unions are demanding a minimum wage of Rs. 1,000 per day RPCs were proposing a ‘Revenue Based’ model where the tea plucker could earn more. “We propose Rs. 46 per kilo which would make the worker more active and in turn would help to increase productivity.”
Currently over 1,500 are working in RPC’s and there are 1.5 million dependents.
It was also pointed out that in contrast to Sri Lanka, tea pluckers in Assam India are paid Rs. 350 and they pluck more than local pluckers. He explained that the industry would collapse if RPC’s were forced to pay the wages proposed by the unions. “The 20% increase demanded by union would cost the RPC’s Rs. six billion each year and another Rs. three billion in gratuity payments and the total impact would be Rs. nine billion a year.”
Global tea prices too have taken a dip and the US Dollar appreciation too has not helped RPCs. In addition due to the Glyphosate fertilizer ban and due to other high production costs, Sri Lanka is now losing its competitive edge to both India and Kenya in the global tea market. Worker migration too is an issue.
He said that the issue has been going on for some time where they do not see a ‘Silver Lining’ soon. “Currently we are only seeing stars!” he quipped.
He said that the creation of RPCs several decades ago has helped the government to save a lot of money, as the government was spending around Rs. 400 million per month to up keep tea plantation industry before privatization.
He also appealed form the government to provide adequate security to RPC officials as they face issues.
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