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Estate workers’ wages: Outgrower model considered

26 Jul 2020

The Government and the private sector are looking at introducing an “outgrower model” for the plantation sector in response to demands made by trade unions for a wage hike. “We are talking on broader terms with the plantation companies to determine if we can establish an outgrower model with proper rules and regulations that would benefit the workers as well as the companies.” “That is one of the options forwarded by the trade unions in relation to the proposed salary hike for the plantation workers,” Minister of Plantation Industries and Export Agriculture Dr. Ramesh Pathirana told The Sunday Morning. He noted that it has already been introduced in some plantations. “Workers can follow the outgrower model if they wish to, but I accept that there may be some shortcomings such as the lack of EPF (Employees’ Provident Fund)/ETF (Employees’ Trust Fund) benefits. But the proposals transitioning to this model will ensure such benefits are awarded.” Meanwhile, Planters’ Association Chairman Roshan Rajadurai said that regional plantation companies could not afford the recent demand of a wage hike to Rs. 1,000 per day unless certain conditions, such as an increase in tea auction prices, are implemented. “We cannot accede to the request of a wage increase as we are incurring losses as it is. If the Colombo auction price for tea is not increased to Rs. 670 per kg, the output of workers has to increase to enable us to implement a daily wage increment,” Rajadurai said. – Skandha Gunasekara  


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