Govt. to assess estate companies’ ability to pay new wages

11 July 2024 04:37 am Views - 1275

The plantation companies that have been avoiding the recently approved Rs.1,700 daily wage for the workers will soon have to justify their stance.

Highlighting the financial struggles, several plantation companies have decided not to pay the higher wage. 

In response, the government has decided to assess each regional estate company’s capability to meet the new wage requirements.

The Cabinet of Ministers approved the appointment of a committee to carry out this evaluation.

In addition, the Cabinet announced the decision to accelerate the process of implementing laws to cancel the land leases of companies that refrained from paying the salaries, despite having the capabilities. It would be done with the recommendation of the committee.

The tea producers have warned that the 70 percent wage increase could render Ceylon Tea uncompetitive globally.

Last week, the Supreme Court issued an interim order halting the implementation of the gazette announcement by the Labor Ministry secretary on May 21, which mandated the wage increase. 

This order came in response to a petition filed by several plantation companies, including the Agarapathana Plantation Company, challenging the wage hike. The order will remain in effect until the petition hearing concludes.