In a meeting today (15 January) between the Minster of Labour Nimal Siripala de Silva and the Chairmen of all Sri Lankan Regional Plantation Companies (RPCs), a final proposal has been submitted towards ensuring a sustainable earnings model for the sector. Under the final proposal, RPCs are offering a fixed daily wage of Rs. 1,105, with the re-introduction of attendance and productivity incentives.
“This amounts to a 30% increase in earnings on the fixed model, and there is no upper limit to what workers can earn under the productivity-linked components.”
“At a time when others in the apparel and leisure sector are slashing wages and retrenching workers, ours is one of the precious few export industries which has shielded our employees from the negative impacts of the pandemic.” said Chairman, Plantation Services Group, Employers’ Federation of Ceylon. The breakdown is as follows: Basic Wage – Rs. 700, EPF/ETF – Rs. 105, Attendance Incentive – Rs. 150 and Productivity Incentive – Rs. 150.
The proposed fixed daily wage model will be implemented 3 days a week, and on the remaining days, RPCs have called for one of two productivity-based models to be implemented based on how suitable they would be to each RPC’s unique capacity - enabling workers to earn far more than the fixed Rs. 1,105.
Alternatively, employees will be remunerated based on a revenue share model, offering greater earnings, similar to what has long been practiced with success in the smallholder sector in Sri Lanka. Companies who do not wish to continue with either of these models, will reserve the right (at their sole discretion), to continue with the standard daily wage system.
