Plantation industry at stake with additional burden : Harry J
A constructive national policy is needed for the plantation sector to charter the long-term sustainability of the industry, a top official of a plantation company stated.
“The sector’s very survival is at stake with the additional burden of substantial increases of wages at predetermined intervals and escalation of input material,” Balangoda Plantations PLC (BALA) Chairman, Harry Jayawardena said.
He further stated that subsequent to the balance sheet date, the plantation worker’s daily wage rate has been increased to Rs.450 and the attendance incentive to Rs.140 with effect from April 1, 2013.
The new wage package will ensure payment of a sum of Rs.15,500 for 25 days work per month provided the worker has an attendance record of over 75 percent (for a month. In addition, the agreement has also revised the rate of over kilos by Rs.3. This would mean that anything above the norm plucked will be paid at Rs.20 per kilo.
“The substantial increase in wages granted to the plantation workers over the years is not linked to productivity and the impact of same resulted in most producers having negative margins,” Jayawardena noted.
The chairman went on to state that another matter of concern is the increase of electricity tariff which would have an adverse impact on the cost of production.
“It is envisaged that the company (BALA) will have to bear an additional amount of approximately Rs.25 million per annum,” he said.
He added that though some progress is to be expected as the situation hopefully improved, the year 2013 will be extremely challenging with the increased cost of wages, high costs and fluctuating commodity prices due to the political and economic volatility in the major markets.
“A long-term commitment for the development of the tea industry would be a prerequisite in order to face these challenges since this industry provides livelihood to a large proportion of the country’s population,” Jayawardena observed.
He emphasized that it is imperative all stakeholders, the state, plantation companies, smallholder societies, exporters and the trade unions acknowledge individual responsibility for a meaningful and unified contribution for the rehabilitation of the industry.