Planters request government support

Ensure future sustainability:

Ramani KANGARAARACHCHI

The Planters’ Association requests Government support to ensure future sustainability of the industry and assured that productive workers would be duly rewarded.

Planters’ Association, Chairman Damitha Perera, Plantation Service Group Employers’ Federation of Ceylon Chairman Lalith Obeysekere and Finlay Tea Estates Chairman Naresh Ratwatte at the press conference. Picture by Sumanachandra Ariyawansa.

Speaking at a media conference yesterday Planters’ Association of Ceylon Chairman Damitha Perera said that the wage agreement was a significant milestone in the history of negotiations with the Trade Unions.

It was for the first time that a component linked to productivity was incorporated in the wage structure in keeping with Government policy.

He said that the concept of productivity is essential for profitability and development therefore future negotiations will be more towards productivity. Although the wage increase has resulted in a huge impact on the industry due to an additional expenditure of Rs. 6 billion per annum on the top of global economic melt down and adverse weather conditions not a single worker was laid off during this period.

They have been paid all dues and festival advances on time.

However, if the Sri Lankan plantation industry is to be competitive in the global market it’s cost of production should be controlled and in this context, trade unions and employers may have to develop a new model for determining wage increases in the future, he said.

If the plantations become non-viable, the industry on which the livelihood of 10 percent of the country’s population depends, will be at risk and could lead to grave socio-economic consequences, he said.

Perera requested the Government to restore facilities previously enjoyed by the industry such as a zero rating on VAT considering that 95 percent of tea production is exported, a benefit subsequently extended to other indirect exporters.

He said that the CESS of Rs. 4 per Kg recovered at the point of export ,amounting to Rs. 1.2 billion per annum, be made available to the industry as in the past to support replanting, factory development, promotion, marketing, research and development and to protect the industry.