By Nishel Fernando 

The government is determined to grant the announced Rs.1700 living wage for plantation workers by issuing a fresh gazette within the first two weeks of August, after securing the required approvals from respective wages boards.

On July 10, the government withdrew the gazette notification that required plantation companies to pay the Rs.1700 daily wage, a 70 percent increase from the current Rs.1000. 

This withdrawal followed the Supreme Court’s interim order halting the implementation of the gazette, in response to a petition filed by several Regional Plantation Companies (RPCs), including Agarapathana Plantation Company, challenging the wage hike.

Labour and Foreign Employment Minister Manusha Nanayakkara told Mirror Business that the government with the support of trade unions has moved to relevant wages boards to assure the wage hike for estate workers.

Discussions are currently underway between the RPCs and trade unions.  During the meeting, the RPCs resubmitted their earlier proposal to increase the daily wage to Rs.1200 basic pay, with a Rs.150 incentive allowance and Rs.65 per kilo. 

However, trade unions have demanded the original Rs.1700 living wage backed by the government.

Plantation workers started protesting, demanding the wage hike following Supreme Court’s interim order and the subsequent withdrawal of the gazette notification.

Nanayakkara noted that RPCs are coming to an understanding on the matter.

Government lawmaker Mahindananda Aluthgamage recently claimed that 10 RPCs have already agreed to grant the wage increase, indicating a possible split within the Planters’ Association of Ceylon, the umbrella organisation of RPCs. Despite repeated attempts, PA officials were unavailable for comment.

In 2021, the government, with the support of labour unions, successfully secured Wages Boards approval for the Rs.1000 living wage, with Labour Ministry representatives casting tie-breaking votes despite RPC objections. 
If the RPCs fail to grant the Rs.1700 living wage, Minister Nanayakkara stressed the government would revisit the lease agreements of RPCs.

The proposed daily living wage consists of Rs.1350 (including the daily budgetary relief allowance applicable for EPF and ETF payments) and a Rs.350 daily special allowance. Additionally, Rs.80 is proposed for the kilogram rate.