The entire population of Sri Lanka has not yet recovered from economic pressure. Families receiving monthly salaries and those engaged in daily wage work still face numerous hardships.
The Sri Lankan community faces several issues, including the inability to provide desired food and beverages to children, taking children on recreational trips, and accessing healthcare services.
Even when medication is needed for illness, it’s now challenging to seek treatment at private pharmacies due to high medication and medical fees. Children are also not receiving proper nutrition. These issues particularly affect middle-income people in semi-urban and urban areas.
The Political Football Oppressing Estate Workers
The plantation community is among those severely affected by economic issues. Years ago, they demanded that their daily wage be increased to Rs. 1700. However, this demand became a political football, and they still haven’t received this wage increase.
Many representatives entered Parliament, promising to resolve this issue for the plantation community. However, even the ministers in the previous Parliament couldn’t achieve this. Nevertheless, they continue to get re-elected to Parliament through people’s votes.
Former President Ranil’s Promise
During a May Day rally in Kotagala, former President Ranil Wickremesinghe promised to increase estate workers’ daily wage to Rs. 1700 and implement a system providing additional payment for tea leaves plucked beyond the standard amount.
He stated that workers would receive Rs. 80 per kg as an additional allowance and promised a special allowance of Rs. 350 without EPF contributions. The government issued a gazette notification as per the Labour Commissioner’s order.
However, estate companies strongly opposed this decision, calling it unilateral and arbitrary. They obtained a court injunction preventing the implementation of the gazette notification, which was subsequently invalidated.
In response, former President Ranil Wickremesinghe announced another decision: the Wages Board would decree that the government-proposed wage increase must be paid. This specified that a worker’s daily wage should be Rs.
1700, comprising a basic wage of Rs. 1350 and a special allowance of Rs. 350 based on productivity. The Planters’ Association clarified they would pay Rs. 50 per kg for workers exceeding the standard plucking amount, falling short of the promised Rs. 80 incentive.
Arbitrary Actions of Estate Companies
The private sector took over plantation management in 1992. Until then, wages were determined under Wages Board approval every two years. Wage revisions were made through collective agreements between employers and trade unions.
Hayleys Company controls one-fourth of all estates, while Richard Pieris Company also manages a significant portion. This creates a monopolistic situation. Estate companies have gained the ability to suppress workers’ rights.
They’ve created a system to control permanent workers by employing contract workers. This is the only management strategy used by regional estate companies to increase profits. Contract workers only receive daily wages, eliminating the need for EPF payments and overtime allowances, resulting in significant savings.
Under these conditions, estate companies have increased pressure on permanent workers and extended wage increment periods to three or four years. Company heads claim they would go bankrupt if they met workers’ wage demands.
Any wage increases granted to estate workers have come only after great difficulty. They’ve had to fight through protests and demonstrations for years to achieve these gains. People question how companies claiming losses continue to acquire more properties and estates.
Fighting for Even Rs. 250 Wage Increase
In 2021, based on an election promise, the then-government moved to increase daily wages from Rs. 750 to Rs. 1000. Estate companies initially resisted but had to agree due to intense worker protests reluctantly.
During this time, company income from rubber and tea exports nearly doubled due to dollar appreciation against the rupee. Despite high inflation making it difficult for workers to afford food, management showed little concern.
The government decided to provide a daily wage of Rs. 900 plus a Rs. 100 allowance under Wages Board approval in April 2021. As usual, estate management challenged this in court, delaying implementation until October 2021.
The Existing Law In 1984, a cost-of-living allowance of 4 cents per increasing unit was added to workers’ wages. The Wages Board delegated responsibility for calculating monthly cost-of-living allowances to the Labour Commissioner. Management is legally bound to pay the full daily wage of Rs. 1700 unless a worker voluntarily opts not to work a full day. This law protects Sri Lankan estate workers, and failing to comply is illegal.
Estate Workers Earning Less Than Rs. 1000
According to current Wages Board decisions, all estate workers should receive a daily allowance of Rs. 1700. The Labour Commissioner General is responsible for enforcing this and investigating regional estate companies paying less than the recommended wages since 2021. Many estate companies still only pay between Rs. 900-1000 as daily wages.
Not paying the Wages Board-recommended amount is both illegal and oppressive to the people. Discussions are underway regarding legal action against this injustice. This situation reflects companies’ greed for higher profits.
Former leaders have deceived estate workers with promises of Rs. 1700 daily wages. The plantation community is now beginning to understand the unfair practices of leaders who merely sought their votes.
