• Wage dispute and labour challenges continue to plague Sri Lanka’s plantation sector 

Sri Lanka’s plantation sector, a cornerstone of the country’s economy and a historic source of employment for hundreds of thousands, remains embroiled in a decades-long protracted dispute over wages and labour rights.

Despite multiple dialogues, Government declarations, union protests, and promises from officials, the longstanding issues that affect tea workers’ livelihoods are as acute as ever. 

The sector’s workforce faces a precarious future shaped by inadequate earnings, shifting labour policies, demographic challenges, and industrial stagnation.

Tea plantations and related estates are among Sri Lanka’s most iconic industries, renowned both locally and internationally for producing high-quality tea. These estates employ a significant proportion of the country’s rural population, especially among Tamil and Malaiyaga communities who have historically lived and worked on the plantations across central Sri Lanka.

Over the decades, the plantation labour force has undergone substantial transformations. Once dominated by a large cadre of permanent workers with accrued pensions and benefits, the sector has witnessed the gradual rise of contract, casual, and task-based labour arrangements. 

These changes, coupled with shrinking numbers of permanent workers and the declining appeal of estate work for younger generations, have created a complex landscape of labour insecurity, diminished rights, and growing socio-economic gaps.

At the core of the current struggle is a dispute over fair wages — specifically, a contested increase from Rs. 1,350 per day to Rs. 1,700, which many workers and union leaders argue is necessary to keep pace with the soaring cost of living and restore dignity to estate workers.

Wage increase: A promise delayed

One of the most enduring obstacles to realising wage increases in the plantation sector is the resistance on the part of estate owners and plantation companies, particularly those organised under the Planters’ Association. 

Institute of Social Development Executive Director Muthulingam Periyasamy described recent interactions that highlight the difficulties in securing greater remuneration for workers.

“Several months ago, I called Planters’ Association’s Roshan Rajadurai and asked him: ‘Are you in a position to pay the Rs. 1,700?’ He replied: ‘Mr. Muthulingam, how can we pay? It’s very difficult. We are paying Rs. 1,350 now. Let the people who want to take up the industry do so, run it, and pay the wages, because we simply can’t afford it. Our industry can’t survive without profit, especially when considering the rising cost of living,’” said Periyasamy.

Periyasamy pointed out that only about 140,000 permanent workers remained in the sector today, down from approximately 400,000 during the privatisation period. The reduction is due to an array of factors, including premature retirement schemes, mechanisation, out-migration by younger workers, and the aggressive push by companies to substitute permanent positions with contractual, task-based, or casual employment.

Moreover, he revealed a troubling facet of the labour market within the plantations: “Many workers are marked as contract labour — either task workers, contract labourers, or leased-out workers. Leased-out workers are essentially contractors paid per task. Out of these, nearly 100,000 workers are permanent, but an almost equal number are deployed as contract labour. The estate companies don’t pay statutory benefits like Employees’ Provident Fund (EPF) or Employees’ Trust Fund (ETF) to contract labourers. This practice saves them more than the profits they earn.”

While permanent workers are entitled to gratuities and benefits built up over time, the shift to contract workers has weakened livelihood security. Despite this, plantation companies continue to claim financial hardship.

Periyasamy lamented the Government’s inaction, stating: “The Government says it hasn’t had any dialogue with the plantation sector. Minister Bimal Rathnayake recently said: ‘We will try somehow to pay the Rs. 1,700, but we are going to negotiate with the employers.’ However, talks have yet to commence.”

He stressed that this inaction extended to the trade unions as well, which he accused of failing to exert sufficient pressure on the employers or the Government.

“None of the trade unions seem willing to take meaningful action, so how can we expect progress? Workers themselves appear unconcerned, especially as most men have moved away from the estates for outside work — only women remain working on many plantations now.”

The human cost 

A dangerous trend for the plantation sector is the steady outflow of younger workers, who are increasingly migrating to Colombo and other urban areas in search of better employment and living conditions, leaving behind an ageing workforce.

“Many young people are permanently moving to Colombo because there are more opportunities. This migration is a direct result of inadequate income and poor working conditions within the estate sector,” Periyasamy explained.

“With these younger workers leaving, the remaining labour force is largely elderly. If this trend continues, the industry’s workforce will steadily diminish, raising serious questions about the sector’s sustainability.”

He added that this demographic shift also affected the traditional mechanisms of tea production. Although machinery is being introduced for weeding, pruning, and other non-plucking tasks, high-quality orthodox teas still require manual plucking of tender leaves, which limits the effectiveness of mechanisation in replacing labour.

TU perspectives and political mobilisation

Former Parliamentarian and Lanka Jathika Estate Workers’ Union General Secretary Vadivel Suresh indicated ongoing dialogue with Government bodies arranged for 15 September, involving representatives from the plantation trade union and National Labour Advisory Council officers. This meeting will include high-level officials such as the Labour Minister, Labour Commissioner, and Employers’ Federation leaders.

“We intend to raise the issue of wages there because, during my period, the wage structure was Rs. 1,350 plus Rs. 350 for additional kilos plucked,” Suresh explained. “Currently, only the Rs. 1,350 basic salary is being paid.”

Meanwhile, parliamentarian and Democratic Workers’ Congress Head Mano Ganesan expressed frustration over the Government’s failure to fulfill pre-election promises related to the plantation sector.

“In 2023, while in Opposition, the Government issued the Hatton Declaration, pledging to address housing, land rights, education, health, workers’ income, and wages. However, nearly a year into its tenure, no meaningful progress has been made on any of these fronts,” Ganesan said.

He cited statements from Ministers such as Samantha Vidyaratna and Bimal Rathnayake acknowledging difficulties in dealing with plantation companies but criticised their inability to translate rhetoric into real change. 

“When in Opposition, they talked like revolutionaries, promising to ‘break the bones’ of plantation companies and deliver justice to workers. Now they say it’s too difficult. They have made no progress and remain stuck in discussions,” he remarked.

Despite widespread disillusionment with political actors, Ganesan confirmed planned union  actions coordinated with other parties, timed before upcoming Budget proposals. 

“We are preparing trade union actions that will commence at least a month before the Budget. Our aim is to put pressure on the Government to act.”

He also highlighted that at least 40% of plantation workers were not members of any trade union, underscoring the need for political parties and unions alike to represent all workers, irrespective of formal membership. 

“I don’t look at workers from the perspective of trade union or party affiliation. They are peasant people whom we represent. Whether unionised or not, they deserve our struggle,” he said.

Govt. and RPC positions

Ministry of Plantation and Community Infrastructure Secretary Prabath Chandrakeerthi confirmed that discussions involving ministers and representatives from the Employers’ Federation and plantation companies were ongoing. 

“We held a meeting with Plantation Minister Samantha Vidyaratna and Labour Minister Anil Jayantha Fernando, along with the Secretary to the Ministry of Labour and the Employers’ Federation,” he said.

“We aim to initiate dialogue with the Regional Plantation Companies (RPCs) and the Planters’ Association. After these discussions, we hope to move forward.”

He added that no final decision had been made regarding how the remaining wage increments would be funded or structured. 

“We still have to determine if the Government will cover the balance or if a productivity-based model will be introduced. The meeting with RPCs is expected at the end of August or early September.”

Planters’ Association Secretary General Lalith Obeyesekere reaffirmed the official minimum wage status. “It’s been gazetted that Rs. 1,350 is the minimum wage for the next three years. On a piecemeal basis, workers can earn more by plucking additional kilos — some make more than Rs. 2,500 per day.”

He emphasised that this wage level had been legally settled after extensive discussions, including judicial interventions. 

“This matter has been debated and recorded with unions, the Government, and stakeholders. We are certain everyone is getting paid Rs. 1,350 across the board.”