Planters’ Association slams daily wage increase announcement

• Confirms membership will be filing objections to these proposals
• Says “very concerned” that the announcement, remarks by government officials and the tone of media coverage is raising expectations that could lead to disappointment and unrest

By Nishel Fernando 

The Planters’ Association (PA) of Ceylon representing Regional Plantation Companies (RPC) is moving ahead to object to the Rs.1700 daily wage increase proposed for plantation workers, while asserting that a final decision is yet to be reached on the matter. 

 “The Planters’ Association of Ceylon can confirm that its membership will be filing objections to these proposals within the time frame stipulated by the Labour Commissioner. 

“Accordingly, the Planters Association is very concerned that the announcement, remarks by government officials and the tone of media coverage is raising expectations that could lead to disappointment and unrest,” PA stated in a statement to the media yesterday.  

President Ranil Wickremesinghe announced the wage increase at the May Day rally of the Ceylon Workers’ Congress, held at the Kotagala Public Ground.

On 25th of last month, Minister of  Labour and Foreign Employment Manusha Nanayakkara issued a gazette notification granting permission for the Commissioner of Labour to determine a minimum wage for workers in the Tea Growing and Manufacturing Trade and Rubber Cultivation and Raw Rubber Processing Trade.

Commissioner General of Labour H. K. K. A. Jayasundara on April 30 published a procedure of payment to workers in these sectors. 

The proposed new Rs.1700 living wage is a 70 percent increase when compared to current living wage of Rs.1000. It consists of Rs.1350 daily wage (including the daily budgetary relief allowance and to be applied for payment of EPF and ETF) and Rs. 350 daily special allowance. In addition, Rs.80 is proposed for over the Kilogram rate.

Objections to the proposed determination are opened until 12.00 noon on 15th May.

Meanwhile, RPCs lamented President Wickremesinghe’s announcement, and subsequent reporting in the media had given the impression to the public that this wage increase was to come into effect from 1st of May. 
“The Planters Association of Sri Lanka and its members are concerned that the President’s remarks may be misunderstood and lead workers and the public to assume that a final decision has been taken on this matter when it has not.

“Given the facts stated in the Gazette notification, the implication in media reports that the increased payments will be applicable from 1st May 2024, is inaccurate and misleading. Neither the effective date on which the new proposed minimum payment will be applicable  nor the quantum of such payment has as yet been determined,”  PA stated. 

However, neither President’s statements nor media reports made a reference to the effective date of wage increase as claimed by the PA. Further, PA officials weren’t available on 1st of May to comment on the matter despite multiple attempts in reaching out to them. 

In 2021, the government with the support of labour unions was successful in securing respective Wages Boards approval for the Rs.1000 living wage with the Labour Department representatives casting the tie- breaking votes, despite RPC objections.