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Thursday, 29 November 2001  
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BPL's strategy on investing in people

by Pravin Mendis

Plantation companies which have been vested in the private sector for almost a decade since 1992 have seen continuous upheavals with long drawn out strikes and work stoppages up to now.

However, despite all the politically motivated trade union action that has engulfed the plantation sector one group within the Bogawantalawa Plantations Ltd., (BPL) has continued to get on with its business specially last year during the islandwide strike which crippled work in all pantations.The reason for this may be attributed to the introduction of a new corporate culture among the workforce through the concept of Participatory Teams (PT) which has helped the management to quell labour unrest and also thwart strike action.

Workers at all levels in the Maha Oya Group are encouraged to communicate with the management and due recognition is given to their contribution.

The Maha Oya Group,coming under Bogawantalawa Plantations Limited managed by Metropolitan Holdings Ltd., has effectively thwarted labour unrest through novel concepts in human resource development with the assistance of the ILO and Care International facilitation under the Plantation Reform Project initiated by the Government.

Having had the opportunity of visiting the Maha Oya Group myself, I was amazed at the active participation of the labour staff working on this 5000 hectare rubber plantation.

Senior Manager of the Group, Dhammike Kobbekaduwe, a seasoned campaigner in the plantation industry attributes the Group's success to the vision of the management specially its CEO and the Director, Human Resources of the BPL Company in encouraging Estate Managers in its implementation process and continued guidance from the top.

The management style which came into effect after the introduction of the Care International's Worker Education and Training Program has boosted the confidence of the employees who are basically rubber tappers in the company to contribute to the growth of the company with increased production adding to the overall take home remuneration.

The benefits of this program have trickled down to the workers. The management has observed a keenness of the staff in improving quality while giving them an opportunity of sitting together once a month in ironing out issues with mutual understanding.

The Maha Oya Group General Manager S. B. Dissanayake said worker motivation and participation with the introduction of these management styles and techniques which are entirely new to the plantation sector has shown tremendous results in the form of after tax profits.

The plantation has been actively promoting two concepts which are called Participatory Managed Teams (PT) and Self Managed Teams (SMTs) which has shown tremendous results for the company after its introduction through the Plantation Reform Project of the Government.

Care International has helped the company in facilitating and providing members of the staff the required knowledge to the labour force in Participating Management Techniques.

The company has developed a new corporate culture among the workforce and a healthy relationship has been created through the Participatory Teams which has encouraged the workers to communicate their problems directly with the management and due recognition and prompt action is taken at the decision making management level.

The Group's General Manager S. B. Dissanayake said that the employees themselves are given a chance to actively participate even in decision making on the requirements of the labour force.

Dhammika Kobbekaduwe, the Senior Manager believes in a continued dialogue with the staff in order to iron out differences. In fact, the Group has been able to do away with the long established feudal system of the Managers controlling the salaries of workers.

The staff now draw their monthly emoluments from a Development Bank who visit the estate for such purposes. Therefore the workers need not line-up near the Manager to collect their wages as was done in the past.

The Group has also done away with the traditional 'Labour Days' concept where the estate workers had to line up outside the bungalow of the Superintendent every Wednesday and present their case to the Peria Dorai who usually responds from his office room inside the Bungalow. Instead the Managers meet the workers on any day at anytime and continue to have a healthy relationship with the labour staff and the Field Officers.

The workforce has been given training in the participatory management tools which were introduced to the estate through Care International facilitation under the Plantation Reform Project.

The rubber tappers and other workers who had never heard of fish bone diagrams, mapping and problem analysing techniques are well versed in them now and continue to apply them on the field when confronted with a problem.

The change of attitudes among the Managers and the will of the senior staff to come down from their long established feudalistic pedestal where the workers were virtual slaves was also considered vital in this endeavour.

"Our management style conveys a clear cut shared understanding on the objectives, responsibilities and areas of accountability. We encourage creativity and innovation and we support genuine failures. High performance is recognised and rewarded", said the Group's General Manager S.B. Dissanayake.

This motto has been demonstrated by the introduction of a new scheme by the Group for the rubber tappers who have the option of bringing in a maximum of 240 kilos and entitled to the full month's wages thereby meeting the required harvesting target. They are also eligible to bring in additional poundage which will be paid at Rs. 10 per kilo. Under this new scheme many tappers continue to draw their monthly salaries in 15 days. Therefore they are ensured of an income even on rainy days or on days that they miss out work.

The workers themselves expressed satisfaction at this profit based incentive scheme. A Field Officer said that some tappers have recorded salaries exceeding Rs. 10,000 per month through this new scheme.

The yield per hectarage (YPH) has also improved while the cost has been reduced to Rs. 13.59 cost per kilo due to the active participation of the labour force.

"Our workers did not participate in the all-island strike which lasted for 22 days.This we believe was due to the relationship the management built with the workers through these programs", Mr. Kobbekaduwe said.

These changes in the managemant style have shown positive results in terms of recorded profits as well. For istance, during the 2000/2001 financial year BPL has recorded a net after tax profit of Rs. 168 million which is Rs. 60 million more than the previous year while also showing a average yield of 1854 kg per hectare, which is more than 400 kg prior to privatisation. The company attributes this to the HR practices which they see as the main contributing factor.

B. A. Somaratna, an active participant in these Participatory Teams and a leader of one of the self managed teams expressed satisfaction at the new schemes put in place by the management. He said the programs have helped foster a working relationship with the estate managers and the other field officers.

Mr. Somaratne said the motivation of the workforce has increased tremendously as the workers themselves are now given the option of participating in decision making.

Management now has plans of taking this message to the surrounding estates coming under the BPL Group as well.

This concept has paid rich dividends to both the management and the worker staff which has shown tremendous results during the past two years. Therefore it would be prudent for the other companies too to follow this style of management if they are genuine in resuscitating the plantations to compete in this era of globalisation.

Crescat Development Ltd.

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