Wage hike dampens Ceylon Tea cup

Thursday, 16 May 2013 00:00 - - {{hitsCtrl.values.hits}}

COP per kilo increased from Rs. 390 to Rs. 430
Wage hike increases COPby Rs. 40
68% of plantation COP is labour cost
Industry wages US$ 2.5 higher than India and Kenya

By Cheranka Mendis

The already stormy tea cup could be tipped further in to the danger zone with the recent wage hike on 1 April, effective for two years.

Planters’ Association of Ceylon deliberating on the issue on Tuesday noted that the 18% hike in the estate workers’ basic daily wage would negatively impact the tea industry if industry stakeholders do not rally and brainstorm for possible solutions.