‘Charting a Sustainable Path: Navigating Challenges and Opportunities in Sri Lanka’s Plantation Sector – 2024’

by Lalin I De Silva

The recent wage increase for plantation workers has stirred significant discussion and debate within the industry, prompting a closer examination of the underlying factors at play. Several crucial points come to the forefront, shedding light on overlooked aspects that have contributed to the current predicament.

Firstly, the absence of a comprehensive job evaluation and analysis prior to implementing the wage increase is notable. Such an evaluation is essential for understanding the relative value of manual jobs on plantations. Without this foundational understanding, determining appropriate wage structures becomes challenging and can lead to unintended consequences.

Furthermore, there is a critical oversight in discerning whether the actual need is for higher daily wages or a livable wage. While the former may address immediate concerns, the latter ensures sustainable livelihoods for workers in the long term. Unfortunately, this distinction was overlooked in the decision-making process.

Historically, the plantation sector operated under distinct wage structures, including male/female daily wage rates and rates for non-able-bodied workers, established during colonial times for specific reasons. However, these systems were abolished for political reasons and replaced with a one-size-fits-all approach. The impracticality of this uniform approach has since become apparent, underscoring the importance of considering historical context and practical implications.

Moreover, the transition to collective bargaining, while intended to facilitate a give-and-take process, has often resulted in employers bearing the brunt of concessions. This imbalance highlights the need for alternative bargaining mechanisms, such as enterprise-level bargaining, which takes into account the diverse resources and needs of each Regional Plantation Company (RPC).

Adding to the complexity is the challenge of retaining and attracting workers in the face of hyperinflation. The erosion of purchasing power exacerbates existing grievances and further strains labor-management relations. Addressing these challenges requires a multifaceted approach that considers both short-term remedies and long-term sustainability measures.

In conclusion, the wage increase for plantation workers underscores the need for a more nuanced and comprehensive approach to labor management in the sector. By addressing historical precedents, reevaluating bargaining mechanisms, and prioritising sustainable livelihoods, stakeholders can work towards a more equitable and resilient future for all involved.

ATTRACTION & RETENTION STRATEGIES:A voluntary pension scheme with PHDT & SOCEBO to enhance workforce retention, which needs to be expedited by the state intervention. Real-time data on the plantation sector workforce is non-existent. We have to move into data-based decision making. This issue came to light when H.E. RW raised the question during a meeting with Crylon Planters Society asked for the number of employees and executives none could answer. This lack of accurate data is akin to the inaccuracies in national rubber production statistics as well.

The availability of real-time information is severely lacking. Brig Dr. Thiran De Silva, reachable at +94 (77) 392 9475, has proposed a solution utilizing Google Analytics. He has offered this solution to the Secretary, emphasising its urgency. Regarding productivity incentives, such as pluckers needing to harvest 20 kg/day and 600 kg/month, there shouldn’t be an issue with listing 30 names on the payroll even if the 600 kg are delivered ahead of the month-end. I raised this concern with the Commissioner of Labour two years ago, copying all relevant parties, but no action has been taken. Next,

Moving forward, it is imperative to address the challenges facing the plantation sector with a strategic and collaborative approach. Firstly, resolving the wage increase issue requires a comprehensive review of existing wage structures, taking into account historical precedents and practical considerations. Introducing alternative bargaining mechanisms, such as enterprise-level bargaining, can promote fairer labor-management relations and ensure that the diverse needs of Regional Plantation Companies (RPCs) are adequately addressed.

Additionally, the implementation of the Bonus Act: 1965 (India) presents an opportunity to enhance attraction and retention within the industry. This measure, if feasible, would not only benefit plantation workers but also contribute to the overall prosperity of the country.

Furthermore, improving Net Sale Average (NSA) is essential for enhancing the competitiveness of Sri Lanka’s tea industry. Collaborative efforts between industry stakeholders, such as the Sri Lanka Institute of Marketing (SLIM) and the Sri Lanka Standards Institution (SLSI), are crucial in developing certification criteria for high-quality Ceylon Certified Tea (Herbal Medicinal Beverage). Expedited action in this regard is imperative to capitalise on the market potential of premium tea products.

Moreover, as part of the Agri Modernisation Project, implementing value chain management initiatives can optimise efficiency and productivity across the plantation sector. Embracing global labor practices, such as “pay for performance,” can incentivise productivity while ensuring fair compensation for workers. The development of a “profit per hectare” index and personalized specifications of harvesters qualifying for the 1700/- wage rate can further enhance transparency and accountability in labour remuneration.

In conclusion, settling the wage increase issue amicably and implementing measures to enhance attraction, retention, and productivity in the plantation sector require collaborative efforts and proactive engagement from all stakeholders. By addressing these challenges comprehensively and strategically, Sri Lanka can secure a sustainable and prosperous future for its plantation industry.

(The writer is former Senior Planter, Agricultural Advisor and Consultant, Secretary General of Ceylon Planters Society, Editor of the Ceylon Planters Society Bulletin, and freelance journalist.)