Gautam Sen
The hill country tea and rubber plantations or the central highlands` estates of Sri Lanka, particularly in the Central and Uva provinces, have been in ferment for quite some time. The tension accentuated in the end of September this year, with most of the plantation estates going on strike on 26th of the month. The ferment has arisen owing to widespread discontent among the plantation workers, over wages. 200000 plantation workers and nearly 1200000 people including the workers` dependents, are affected. The last wage revision was carried out in March 2015. The plantation workers` basic demand has been for a minimum daily wage of Sri Lankan Rupees (SLR) 1000 (equivalent to US $ 6.86) as against SLR 620 at present, which was negotiated with the management more than two years ago, with the validity of the agreement having expired in March this year. The near-total strike in the plantations from 26th September – 6th October, 2016, is reported to have ended as a result of joint conciliatory efforts of Sri Lanka Government Ministers of Plantations & Industries, Labour & Trade Union Relations with the plantation Employers` Federation and the plantation Trade Unions. As a result of the labour unrest, the country has suffered a tentative loss of SLR one billion with 70 % of the loss in foreign exchange.
The negotiated settlement providing for a daily wage increase of SLR 730 is expected to be signed at Nuwara Eliya on the 14th of this month only after S. Thondaman, General Secretary of the Ceylon Workers Congress (CWC), returns from abroad. The CWC wields considerable influence on the estates` plantation workers. However, there are discordant notes within the CWC itself, as is evident from Nuwara Eliya district member of parliament of the party, Muthu Sivalingam declaring that they do not agree to formalize the agreement after 13th September, 2016. The CWC and its affiliated plantation workers and the Janatha Vimukti Peramuna (JVP) linked plantation trade union – the All-Ceylon Estate Workers Union (ACEWU) (the ACEWU had actually initiated the demand for a minimum salary daily of SLR Rs. 1000 in February 2015) have however, protested against the above-refereed agreement alleging that, politically instigated trade unions and the ruling United National Party (UNP) trade union – Lanka Jathika Estate Workers` Union (LJEWU) have sabotaged the plantation workers demands by conceding acceptance of a daily wage of SLR 730.
The condition of the plantations have been on the decline over the past many years. This is notwithstanding the fact that, tea and rubber from the plantations have generated considerable exports and foreign exchange for Sri Lanka. The earnings in 2015 were worth more than US $ 1.5 billion. The plantation workers, which originated as indentured labour nearly 180 years ago from the interior districts of former Madras Presidency in India, have by their manual efforts enriched the economy of Sri Lanka without disturbing the political milieu and unity of the country. This is notwithstanding that the plantation workers had remained a practically disenfranchised lot till recently, without being attracted to or involved with any separatist political ideologies. The Governments of the day in Sri Lanka however, do not seem to have had the plantations and its workers – mostly Tamils of Indian origin, in their socio-economic or political priorities. This situation only explains the gradual decline in productivity of the plantations. In 2015, Sri Lankan tea productivity declined by nearly 15 %. The differential in increase of monthly salaries between the public sector and plantation company employees SLR 10000 and SLR 2500, respectively, indicates a policy failure of the National Government and has only accentuated the feeling of discrimination among the plantation workers.
While it may be difficult to reverse the leasing of the plantation estates for 99 years, effected by the then Sri Lanka Government in 1992, the present National Government may have to work out measures to rejuvenate the plantations comprehensively and put in place an appropriate framework of socio-economic development in the estates and for welfare of those dependent on the plantations, exclusively. The decline in the number of estates as well as plantation workers, are also required to be arrested in the overall interest of the country and its economy. As against nearly 550 estates with the leased companies in the early 1990s, the number had declined to 450 in 2005. There is a decrease in the number of plantation workers also from 500000 in 2000 to approximately 200000 at present, which indicates an unusually rapid decline which can only explained in justaposition to attendant socio-economic circumstances. Moreover, the reasons for low output of the workers eg. they are able to pluck 12-15 kg. of tender leaves per day as against 25 kg. in India and 30-40 kg. in Kenya, are required to be delved into. The causes for this low capacity need to be scientifically appraised inter-alia assessing the impact of adopting particular weedicides which entail a more time-consuming manual weeding process and consequent less time for plucking. Failure to adopt countervailing measures to mitigate the adverse impact of heavy rains and succeeding drought as happened during the last cycle, are also issues which require a policy-oriented action at the Governmental level. It may be over optimism to expect the leasing companies operating the plantation estates, to overcome the above-cited deficiencies without compromising on the justified pecuniary demands of the workers. The demand of the plantation companies to adopt revenue-sharing remuneration package for the workers, is an indication of their hard-line approach, which will only affect the workers salaries if not moderated by Government intervention.
The present state of affairs in the plantation estates triggering the workers unrest for improved salaries, may be deemed as a consequence of management failure in the overall perspective. Such unrest does not augur well at the present juncture when a myriad of issues pertaining to national polity, its cohesion and national development are of essence. The plantation estates private management has been trying to attribute its inability to provide the minimum daily wage of SLR 1000 on the ground of downturn in the world tea market, Sri Lankan tea exports being affected by falling consumption in Syria (this country was one of the major consumers of Sri Lankan tea) because of the civil war there, US sanctions on Iran impinging on exports to the latter country, etc. Notwithstanding the above-mentioned factors, Sri Lanka Government has an inherent responsibility to devise a suitable strategy to help its private estate companies to overcome the constraints being faced in the international tea market. The Secretary, Ministry of Plantations has recently opined that Sri Lanka Government provides facilities to the companies, but the companies demand more which cannot be acceded to owing to treasury constraints. While this may be deemed a routine response, cognizance has nevertheless to be taken of Prime Minister Ranil Wikremasinghe`s response appointing a committee under the aegis of the national Economic Council, to study and plan out for a higher productivity of the plantation sector. A positive implementable outcome of the Council`s recommendations now needs to be ensured.
(The author is a retired IDAS officer who has served in Sri Lanka)
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