Fears of further trade union action as RPCs and unions deadlocked over wage increase
Negotiations on increasing estate worker wages have become deadlocked. With both sides digging in on their positions, fears are rising of further trade union action in the coming days.
Representatives of Regional Plantation Companies (RPCs) and Employers Federation of Ceylon (EFC) did not attend a meeting with estate sector unions held at the Wages Board on Friday to discuss the matter. Commissioner General of Labour H.K.K.A. Jayasundara told they will have to see if the parties can still be brought to an understanding.
The unions are demanding that the minimum daily wage of an estate worker be increased to Rs. 1700. The plantation companies have presented two proposals – a 33 percent increase in take-home wages based on a productivity model or a 22 percent increase in wages based on an attendance model.
It was not possible for the RPCs to agree to a flat wage increase of Rs. 1700, stressed Planters’ Association of Ceylon Spokesman Roshan Rajadurai. The price of tea has fallen while the cost of production has not, he noted. “Even though a wage increase is very difficult, we have still agreed to one at this point. But we cannot give a flat Rs. 1700 increase. The industry will collapse,” said Mr. Rajadurai.
He said the increase the unions are asking would result in companies going bankrupt. “We don’t want to say yes to this and commit hara-kiri.”
The unions need to collectively decide on a show of strength if the impasse continues, Parliamentarian and Leader of the Upcountry People’s Front V. Radhakrishnan said.
Three trade unions, the Ceylon Workers’ Congress, Lanka Jathika Estate Workers Union and the Joint Plantation Trade Union Centre are signatories to the current collective wage agreement with the plantation companies. Mr Radhakrishnan, whose party trade union is not a party to the agreement, said this means the unions don’t have enough negotiating power. As such, he said it was time to decide on launching a “mega strike” after May Day if the RPCs continue to refuse further their demands. He also said the government needed to intervene more forcefully on the issue.
Even the Rs. 1000 wage increase for estate workers had first been spoken of in 2005, though it took until 2019 to be i m p l e m e n t e d , s a i d P. Muthulingam, Executive Director of the Institute for Social Development, which works closely with estate workers. He noted that unskilled workers outside the estate sector earn about Rs. 3500 a day while skilled workers can earn about Rs. 5000. “How is it then that estate workers are expected to work for Rs. 1000?”
He pointed out that estate workers have to look into their children’s education, transport and food as well with their daily Rs. 1000 wage and pointed out that many have been forced to stop sending their children to school due to extreme poverty.