'Estate workers wage rise attractive'

Labour Relations and Manpower Minister Athauda Seneviratne said the recent 40 percent plantation sector wage increase was the most attractive wage increase in the plantation sector. "The wage increase is very attractive compared to previous wage increases. Earlier the daily wage in the plantation sector was Rs 290. The wage has gone up to Rs 405, very fast," he said.

The Minister said that most estate workers are still unaware of the latest wage increase and wage structure. For instance, the current wage increase incorporates a Rs 30 per day productivity incentive that allows people to earn more depending on their work.

"Under the current wage structure, a plantation worker can earn about Rs 11,000 a month.

However, I don't see anyone educating the workers. Even trade unions don't do so. The companies must build awareness among workers, because ultimately it will benefit the companies," Minister Seneviratne said.

The Minister, who has many years of experience in Sri Lanka's trade union movement and national labour administration said that the better wage will also address the problem of labour migration from Sri Lanka's plantation sector.

Although plantation export crops are still Sri Lanka's biggest agricultural export, employment in the plantations is seen as low status jobs. As a result many estate youth prefer to work as labourers, or get casual employment in cities while females go abroad as housemaids.

"Estate work is not seen to have a social standing. Hence those in the estates go out and work, but they don't get any of the benefits they get in the estates. A better wage in the plantations, together with all the other benefits, will make the estates more attractive and discourage them from leaving the estates". Better pay, can also increase productivity, he said. "Plantation companies should look after workers because this is still a labour intensive sector.

When workers are happy, they will work more and companies will benefit because of higher productivity," he said.

The Minister said that non-wage factors are also important in retaining employees. Therefore, estate managers were advised to build direct links with estate communities, so that estates become central to people's lives. "Companies should pay workers a fair wage. They should also improve the standard of worker housing and education and participate in their religious festivals and cultural activities and build trust, so that the worker's link to the estate is strengthened. When workers are happy it will reduce the need for them to move out," said the Minister.

Plantation companies were also encouraged to help estate communities develop supplementary incomes to increase overall income. "Plantation families at times grow vegetable or rear poultry or do other things. Companies should encourage these activities because it improves the income of these families," he said.

Sri Lanka's one million resident population in the plantations, is also a magnet to political forces and trade unions.

"The estates are a good source of income for trade unions, through membership fees. There is a very large population in estates. Even if they have 1,000 members, the income, at the rate of Rs 60 per member works out to Rs 60,000. There is no problem collecting the money, because the membership fee is deducted from the salary itself. There is a lot of competition among trade unions, to attract members and even politicians are setting up trade unions in the estates," the Minister said.

The strong competition among trade unions and party politics could be counter productive to the workers' interests.

"Smaller trade unions put forward higher wage demands, to stand out in the crowd. Party politics is also influencing wage demands and it is not always workers interests," he said. The best way to avoid politics and improve the plantation sector, is for plantation companies to build direct connections with workers, instead of forcing workers to look towards trade unions and political parties, to satisfy their needs.