Tea sector wage negotiation successful

The Employers' Federation of Ceylon representing regional Plantation Companies (RPCs) reached agreement with the Joint Federation of Plantation unions on a new wage package for estate workers. Last wage negotiations were conducted in the fourth quarter of 2006 and led to a damaging worker go slow and strike with disasterous consequences for the estates.

Most affected were estates in the higher elevations, as the low country is primarily in the hands of smallholders. The last wage increase was struck just before Christmas in 2006.

Since then, over grown tea bushes that had to be pruned, a sharp rise in fertiliser and fuel costs, followed by bad weather hammered the RPCs bottom line.

At present High Grown production for the period January to August is the lowest since 1996 while Medium production is the lowest since 1998 (2004 excluded).

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