The government is set to implement the Rs. 1,700 daily wage for plantation workers by issuing a fresh gazette within the first two weeks of August, pending necessary approvals from the respective wages boards.
On July 10, the initial gazette notification mandating plantation companies to pay the Rs. 1,700 daily wage, a 70% increase from the current Rs. 1,000, was withdrawn following a Supreme Court interim order. This order came 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 stated to Mirror Business that the government, with support from trade unions, has approached the relevant wages boards to ensure the wage hike for estate workers.
Ongoing discussions between the RPCs and trade unions have seen the RPCs resubmitting a proposal to raise the daily wage to Rs. 1,200 basic pay, with a Rs. 150 incentive allowance and Rs. 65 per kilo. However, trade unions are steadfast in their demand for the original Rs. 1,700 living wage backed by the government.
Protests by plantation workers ensued following the Supreme Court’s interim order and the subsequent withdrawal of the gazette notification. Nanayakkara noted that RPCs are beginning to reach an understanding on the issue.
Government lawmaker Mahindananda Aluthgamage recently claimed that 10 RPCs have already agreed to the wage increase, suggesting a potential split within the Planters’ Association of Ceylon, the umbrella organization of RPCs. Despite repeated attempts, PA officials were unavailable for comment.
In 2021, the government, supported by labor unions, successfully secured Wages Boards approval for the Rs. 1,000 living wage, with Labour Ministry representatives casting tie-breaking votes despite RPC objections. Minister Nanayakkara emphasized that if the RPCs fail to grant the Rs. 1,700 living wage, the government would reconsider the lease agreements of RPCs.
The proposed daily living wage includes Rs. 1,350 (comprising 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.