Average family income around Rs. 20,000:

Plantation workers’ benefits - above other industry norms

The increase in plantation worker wages has received much publicity in the recent past. While some stories focussed on the justification for the wage increase in the context of the rising cost of living, few considered the impact of the increase in wages, thrust suddenly upon the industry, in terms of viability of Sri Lanka’s tea sector, trying hard to stay afloat and compete with global market prices and production costs.

Most however, are not aware that the plantation worker’s total remuneration which includes non monetary benefits such as free housing, water, medical expenses and maternal care, cooking fuel, transport to work etc valued at over Rs 4,800 per month plus their monthly earning potential of approximately Rs 7,500, far exceeds the basic wages received by workers in other industries, stakeholders concerned said.

Stakeholders expressed concern that the government must realistically look at the industry and strike a balance between the interests of wage earners and those paying them. “A win-win solution that adheres to better worker welfare, a stable business environment and a healthy respect for the free market, which are the foundations of a strong economy, can be worked out” they said.

While industry leaders agree on the need for wage adjustments to help their workers cope with prevailing socio-economic pressures, they are constantly looking at ways to alleviate the worker burdens through non-wage benefits and have even brought in expanded health and education services as well as micro enterprise support to augment the income and boost savings of the estate worker.

Consequent to the October 2007 increase, the new package comprises a daily wage of Rs 290 which includes attendance incentives and a fixed Price Share Supplement.

A plantation worker could now earn a monthly wage of Rs 7,500 a month, well above the minimum Rs 5,000 set by Wages Board for other sectors, based on workers utilizing 25 days of work per month. In addition to wages, workers get paid for ‘over kilos’ as much as Rs 1,250 per month.

What needs to be emphasized here are the many non-wage benefits that a plantation worker gets.

These include free housing, water, medical facilities, free day care and crŠches for infants and toddlers, transport to hospital as well as cooking fuel. Monthly household income for an average family is anywhere between Rs 18,000 to Rs 22,000.

Maternity benefits are also included in the package with families receiving upto Rs 16,000 for the first two children and approximately Rs 8,000 each for subsequent child. CrŠche services and funeral expenses are all provided at no cost to worker.

Interestingly workers of other industries, particularly in the manufacturing sectors, are liable to receive only the minimum wages as stipulated by the Wages Board with a significant portion of their remuneration being paid out for housing and accommodation, cooking fuel, food and sometimes even transport (when not provided).

Non wage benefits for plantation workers of housing, water, medical expenses, cooking fuel, transport to work could be valued at over Rs 4,800 per month, which are the day to day expenses eked out by their counterparts of other sectors.

Given the insights of the typical estate household and that the status of the estate worker can be improved by boosting his savings, Plantation Companies provide opportunities and incentives for livelihood development so as to provide for additional income.

Some of the success stories of such projects include dairy farming, poultry breeding, vegetable cultivation etc which the male workers actively engage in once they complete their daily task around noon.

What must be borne in mind by all stakeholders is that there is an urgent need to protect and enrich the industry which continues to be the lifeblood of Sri Lanka’s economy. Sustaining ad-hoc wage increases, given the many benefits that the plantation worker receives, far exceeding norms of other industries does not help.

There must be clear appreciation of the fact that the current wage package to plantation workers has granted a significant increase to their monthly income and all stakeholders including government, trade unions and media have a vital role to play in upholding the interests and economic benefits of the tea industry, they said.