UPFA calls for incentives for plantation industry

• Says if Govt. provides tax concessions and fertiliser subsidy then workers’ wages could be raised to Rs. 1000 per day

By Nuwan Senarathna 

United People’s Freedom Alliance (UPFA) MP Gamini Lokuge yesterday called on the Government to provide fertiliser subsidies and other incentives to enable plantation companies to increase the worker’s salary to Rs. 1000 per day.   

Speaking to reporters, Lokuge argued that the daily wage of Rs. 1000 for plantation workers could be achieved if the Government provides tax concessions for the plantation sector, to reduce the production cost. He noted that during the Sirisena–Rajapaksa Cabinet, steps had been taken to reduce production costs of the plantation sector, by providing tax concessions and fertiliser subsidies.

Lokuge noted that even though the wage agreement was signed, most of the workers were not happy about the method followed to increase the daily wage of the plantation workers.

“It is an absurd decision to remove the attendance incentive and productivity incentive, which was included for the workers. If those incentives were kept, their wage would have increase significantly,” he added. However, the attendance and productivity incentive was removed at the request of unions and not because the plantation companies wanted it changed.   He argued that if the incentives that were promised after 26 October are provided, the plantation companies would have the capacity to increase the workers’ salary to Rs. 1000. He also said plantation companies could afford to pay workers a higher daily wage than agreed to last week, as the rupee depreciation had allowed them wider profit margins.  

“Due to the recent currency depreciation, the rupee income of the plantation companies had gone up during the last few months, but plantation workers were unable to enjoy the benefit of that,” Lokuge told reporters at the Opposition Leader’s office. 

The plantation industry stakeholders, including Ceylon Workers Congress (CWC) leader Arumugam Thondaman, Joint Plantation Trade Union Centre (JPTUC) General Secretary S. Ramanathan, representatives of the Ceylon Employers Federation, and other stakeholders, signed the new wage agreement on Monday. The daily wage was increased to Rs. 700.