Estate workers struggle amid rising costs and wage hike delay

Providing a reality check, Activist Nelson Mohanraj from Ratnapura added a pragmatic angle to this wage issue stating, “There are fewer chances of getting an increment of Rs.1,700. If the government presses, there may be a chance for companies to agree. But even the government might not press, given the country’s financial situation,” He too noted that the proposed Rs.1,700 is insufficient given the rising cost of living.

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“Two years ago, this was proposed, but now it should at least be Rs.3,000. Even a Rs. 1,350 daily wage was not the government's responsibility and companies agreed to it. So, the chances are low,” he said. Mohanraj also highlighted indirect methods companies might use to avoid paying full wages, such as reducing working days or deducting fertiliser costs from salaries.

Planter's perspective and economic reality

Roshan Rajadurai, a veteran planter, offered a rare perspective from the other side of the tea estate gates, stressing the economic realities. He recalled the May 2023 announcement by then-President Ranil Wickremesinghe of a Rs.1,700 daily wage which, he said, “is completely beyond the realm of practicalities.” “It is not that we are unwilling to give. Since we have privatised, we have given 28 times of the wage, even though the price has not increased. You are selling a product at Rs.1,000, but you can’t give a wage increase of Rs.1,700 because the cost of production is nowhere,” he explained. “We are not contemplating any increase. Any business can pay employees only from revenue earned. We cannot print money or borrow endlessly. The reality is that some companies perform better than others, and on average the cost of production is about Rs.1,200 with the sale price also being around Rs.1,200,” he added.

Rajadurai argued that the estate sector has been managed over decades, “We have given a 35% wage increment, but prices have come down by about Rs.100 compared to last year. Workers resist, saying they can't pluck more, but they can. It is not unwillingness, but the unaffordability of the industry. Tea prices are not controlled by us,” he argued.