ECONOMYNEXT – Sri Lanka’s regional plantations companies have called on the government not to interfere in their talks with labour unions on a pay hike which has remained deadlocked for over a year.
Roshan Rajadurai, Chairman of the Planters’ Association of Ceylon, which represents Regional Plantation companies, said any increase in wages needs to be linked to higher productivity, in which the island lags behind other tea exporters.
He said in a statement that it is unfortunate that efforts are being made to coerce a wage increase via the present outdated model, using threats to nationalize the industry.
“The solution is not re-nationalization, but to allow the private sector to manage in a proficient manner, by especially removing undue political influence in the estate sector wage negotiations,” Rajadurai said.
“The authorities should realize that threats are counter-productive as the RPCs clearly do not have the ability to increase wages via the present model, which has been explained repeatedly.”
Political pressure in determining wages in the private sector sets a negative precedent which extends beyond the plantations to the country’s entire private sector, he said.
Such pressure only serves to further undermine the industry by reducing the confidence of the investors, he added.
The PA has proposed a productivity-based and revenue sharing model to labour unions which have rejected the offer.
“We hope that these proposals will be considered and at least eventually saner counsel and rational thinking will prevail,” Rajadurai said in a statement.
(COLOMBO, March 31, 2016)