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Plantation Wages: Collective bargaining or otherwise?

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By Gotabaya Dasanayaka

This article is not to discuss the merits or otherwise of the proposal to increase the daily wage of Tea & Rubber Plantation workers to Rs 1000. In depth discussions in that regard have gone on for over one year now and they continue even at the time of writing this. Instead, the objective of this article is to discuss the process adopted for wage fixation since the “privatisation” of state owned / managed plantations in 1992 and, the relevance of the statutory Wages Board mechanism to that process.

From the time of the conception of the proposal to “privatise” the management of state owned / managed plantations, it was understood by policy makers and industry leaders that the “buy in” of the Plantation Trade Unions was crucial to the success of the exercise. The late Saumyamoorthi Thondaman the sagacious patriarch of the plantation workers; when extending his support to the change-over did so on one important condition among others; i.e. that that the newly formed Regional Plantation Companies (RPCs) will agree to Collective Bargaining with the Trade Unions (TUs) in dealing with worker issues including the all-important subject of wages. The veteran labour leader, was obviously guided by his vast experience in dealing with the British Controlled Plantation “Agency Houses” and the state management of “JEDB” and the “SLPC” in placing his faith in Collective Bargainig.

At the point of “privatisation” in 1992, the RPCs joined the Employers Federation of Ceylon (EFC) and the EFC, as the TU representing the RPCs entered into the first “post privatization” substantive Collective Agreement with the TUs led by the CWC, LJEWU and the JPTUC, in 1998. This was preceded by long drawn out negotiations. Since then, the substantive Collective Agreement was renewed in 2003 and periodical wage agreements have been successfully negotiated thereunder, with the last one signed in January 2019 and terminable in Jan 2021. The Daily wage package in terms thereof is Rs 750/=.

I do not suggest that the collective bargaining process has been exemplary by any standard or that it could not have been better managed or, more constructively exploited by parties. Regardless of whatever drawbacks and challenges however, the process has prevailed for almost three decades and remained a difficult but reasonably effective mechanism to manage Industrial Relations issues on the plantations and also agree on worker wages; with industry sustainability being the overriding consideration.

A key to whatever success achieved through collective bargaining was the capacity and strength demonstrated by parties, i.e. The Trade Unions and the RPCs; to negotiate without inhibition but, with mutual understanding of each other’s aspirations, concerns and ability to deliver. Whenever that mutuality was lost and considerations extraneous to the industry took precedence, the strength of the negotiating parties was undermined and that obstructed the path to a rational settlement. This has happened in the past and is happening today as well. Trade Unions instead of working towards a mutual agreement with the RPCs, are now desperately looking for ways and means to give effect to a political promise made during the last General Election over which they or the RPCs had no control and, a proposal in the National Budget to increase the basic wage to Rs 1000/= per day. It is the government that has now taken upon itself the responsibility of making the 1000 Rs daily wage a reality through state apparatus; The Wages Board for the Tea and Rubber growing Trades.

The Wages Boards Ordinance empowers a Wages Board (WB) for any trade (as at now there are about 45 boards for different Trades) to among other aspects, determine through a given procedure minimum rates of wages payable to workers in such Trade. The procedure for decision making by a WB warrants tripartite discussion between Employers, Workers and government nominees, broader consultation with the public which enables objections to a proposal and, a decision by a vote of Board members. Employers and Workers have equal voting strength in addition to government nominated members who also have voting rights and, who more often than not decide issues when there is a stalemate. Importantly, a fully consultative process is envisaged.

Anyone familiar with wage practices in Sri Lanka will explain that the minimum wages decided by a WB is the base wage in an industry. Nothing less can be paid. Most employers pay in excess of the prescribed minimum to attract skilled people to work. Some establishments have worker involvement mechanisms to determine terms and conditions of employment. In Unionised establishments, Trade Unions engage in Collective Bargaining with Employers to determine terms and conditions, including wages. When Industrial relations issues including wage negotiations are deadlocked the Industrial Disputes Act makes provision for conciliation by Labour officials or Arbitration. Going by normal Industrial Relations practice in Sri Lanka, the subject wage dispute should have resulted in a reference to arbitration for a “Just & Equitable” award. That would also have enabled parties to continue negotiations and if possible, record a settlement at the arbitration.

The recent activation of the Wages Board mechanism to give effect to the Rs.1000/= daily wage of Tea & Rubber plantation workers is unprecedented. It also brings to question the objectives of the WBs, i.e. the setting of MINIMUM wages and terms through a consultative process. A leading Sunday newspaper had attributed the following statement to a senior Labour Official a few days ago: “It is mentioned in the WB ordinance that we have to call and consider objections…….. however that will not change their decision despite the objections placed before them” . I understand that a large number of objections have been received by the WB from within the industry as well to the proposal in issue. If what is reported in the Newspaper is true, it is truly sad for the WB system; as the underlying message is that objections are called as the procedure mandates it but, the decision is predetermined by us! Does this not make a mockery of the consultative process as envisaged in the WB Ordinance?

In this overall context, a matter of practical concern for business and industry and the economy as a whole also deserves consideration. That is the impact of the proposed increase in plantation worker MINIMUM wages, on the Labour Market and in particular, wages across industry. The current minimum wages as determined by different WBs in a few leading trades are given hereunder:-

Garment Manufacturing Trade:

Range between Rs 7,500/= to 15, 450/= Per mensem

Hotel & Catering Trade:

Range between Rs 10,000/= to 13,280/= per mensem

Retail & Wholesale Trade:

Range between Rs 13,580/= to Rs 15,150/= per mensesm

Printing Trade:

Range between Rs 10,000/= to Rs 14,360/- per mensem

Nursing Home Trade: Range between Rs 12,500/= to Rs 17,225/=

Coconut Growing Trade:

Rs 600/= per day (for Workers)

Cinnamon Trade:

Rs 450/= per day (For Peelers)

Cocoa, Cardamom & pepper growing Trade:

Rs 600 per day (For workers)

Tea Growing and Manufacturing Trade

Rs 405/= (for workers)

The proposed daily MINIMUM wage of Rs 1000/= per day for the Tea & Rubber Growing & Manufacturing Trades will; for 25 days work, amount to Rs 25,000/= per mensem. That will then be the highest minimum wage determined by a WB in the country. It would be much higher than the minimum wage prescribed for example, to a theatre sister or matron under the Nursing Home Trade let alone a worker in a coconut Plantation.

Will not a variance as high as this lead to agitation among workers in other trades which often require higher skills, for unrealistic increases in the minimum wages applicable to them? Will not interventions of this nature, negatively affect the wage equilibrium in the country and lead to unsustainable demands across industry? These are questions that need to be seriously considered by policy makers.

As discussed earlier, WB minimum rates set the base line for business and industry but, they constitute a key benchmark which if meddled with ad hoc, more so for extraneous considerations, can lead to chaos in the Labour Market. Or is it that when all WBs determine MINIMUM wages, the two WBs concerned will instead decide on a Maximum?

My message is that Industry wages should be decided by each industry, based on Industry related factors, in consultation between Employers and Workers wherever that is possible. The state is obliged to create an effective regulatory environment that enables the resolution of whatever disputes that may arise in the process. Third parties whoever they may be and, who do not control the management or the finances of an industry, should stay clear and never intervene for considerations extraneous to the industry. That’s how business & Industry operates in successful economies in the world and, that was what the late Suamymoorthi Thondaman the patriarch of the plantation community espoused for the plantation workers.

Gotabaya Dasanayaka is a former Director General of the Employers Federation of Ceylon and an Ex Senior Professional Specialist in Employers Activities of the International Labour Organisation



Features

The challenge of keeping value-based politics alive

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Anti-migrant protests in Durban, South Africa. BBC

The current outbreak of anti-immigrant protests in Durban, South Africa is bound to have taken many a subscriber to value-based politics or political idealism quite by surprise. After all, this is evidence that despite the historic accomplishments of nation-builders of the stature of the late President Nelson Mandela it cannot be taken for granted that identity politics, including racism in its worst forms, is no more in South Africa.

At the time of this writing details are scarce on the substantive root causes of the protests but it could very well be that economic grievances, particularly on the part of the majority community in South Africa, are contributing considerably to the disaffection. Shrinking employment and material prospects are likely to figure majorly among the factors igniting the unrest.

Fortunately, the local authorities in Durban are losing no time in calling for peaceful co-existence among the relevant communities and are pointing to the vital importance of stepping-up national integration processes. Apparently, immigrants in sizable numbers from neighbouring countries are present in Durban. However, international TV footage of the protests quoted some local authorities as saying that the majority of the immigrants in some centres that housed them were not illegal migrants and had the documents that entitle them to be in Durban.

In the Durban protests the world has fresh proof of the socially divisive consequences of the gathering globe-wide economic disaffection, touched off particularly by the continuing crisis in West Asia. Going ahead, the world would need to brace for increasing identity-based unrest of the kind it is just witnessing in South Africa.

Considering that the material lot of ordinary people everywhere could only aggravate progressively, with the US and Iran showing no signs of negotiating an end to their confrontation any time soon, it will be left to the more democratic and progressive sections of the world community to initiate positive measures collectively to bring a measure of relief to the discontented.

The swiftness with which such relief will be provided would depend crucially on the importance those sections taking up these undertakings attach to value-based politics as opposed to Realpolitik of power politics.

Going by these yardsticks, Italy could be considered to be moving in the right direction. Recently Italy came to the fore in initiating the collective named, ‘Rome Coalition for Food Security and Access to Fertilizer’, which has as one of its aims the swift provision of fertilizer to economically weak African countries.

In a recent statement Italian Minister of Foreign Affairs and International Cooperation, Antonio Tajani, said that a principal aim of the project was to ensure that the farmers of Africa gained easy access to fertilizer, considering that food security is a growing concern among some of Africa’s economically vulnerable countries.

The statement went on to mention that some 30 countries hailing from the Mediterranean region, the Middle East, the Balkans as well as the FAO had been invited to join the coalition. The venture is far-seeing in that food security is main among the reasons for social discontent which in turn could degenerate into endemic political turmoil and bloodshed. Separatist violence and geographical fragmentation of countries wouldn’t be too far behind these developments, as Africa itself has often proved.

It is hoped that more G7 countries would take the cue from Italy and do what they could to ease the hardships of economically distressed countries, particularly of the global South. In these efforts they would need to break rank with the US, which is today brutally indifferent to the consequences of its policy of making ‘America First’, come what may.

Going by current developments, the Trump administration seems to be blithely oblivious to the wider, deleterious effects of its policy course in West Asia. Besides rendering Iran militarily and otherwise impotent nothing else seems to matter to Washington, as regards West Asia. This is policy short-sightedness of an extreme kind. After all, right now West Asia could be said to be sitting on the proverbial powder keg.

On the other hand, Iran is not giving the world the impression that it is doing anything constructive to get out of the policy straitjacket that it wove for itself decades ago. Rather than enter into a policy of ‘live and let live’ in relation to Israel in particular and initiate a process of reconciliation with the latter, it has chosen to operate within policy parameters that continue to damn Israel. This has put Israel always on the ‘defensive’ so to speak and prevented the opening up of space for meaningful dialogue.

That said, Israel is obliged to explore the possibilities of entering into a negotiatory process with the Arab-Islamic world that could lead to a de-escalation of tensions and bloodshed. It cannot continue to look at its neighbours through lenses that distort them as archetypal enemies who should be ‘wiped off completely from the face of the earth.’

In other words, the need is urgent for Realpolitik to give way to value-based politicks. Italy is beginning to prove that the latter approach could be pursued with some success. May be the EU and the UK could throw their weight behind these initiatives as well and establish that international politics could be refashioned on the basis of humane, civilized norms. The UN would need to be fully supportive of these moves and prove an organizational nucleus of the operations that follow.

In fact the time is ripe for people of conscience to collectively stand up on the side of peace and say ‘No’ to war and violence. Organizations such as the ICRC, the WHO and Medicines Sans Frontiers have already taken up this call. Referring to the widespread destruction of health facilities and their dehumanizing results these organizations have said, among other things, that ‘This is not a failure of the law. It is a failure of political will.’

True, ‘failure of political will’ among those powers that matter accounts for the runaway, uncontrollable nature of war and destruction in contemporary times, but more fundamentally it is a failure of the human conscience. It could very well be that the phenomenal levels to which violence and war have been unleashed today have had the effect of deadening consciences. This is a matter for urgent study and wide discussion.

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Features

Vesak celebrations … with Cuteefly

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Perfect for celebrations, gifts, and meaningful occasions // Gift pack

I would describe Indunil Kaushalya Dissanayaka as innovative and creative, and she operates under the name of Cuteefly.

Indunil always comes up with something novel to celebrate special occasions, and she does it with candles … and that’s her profession.

She was in the spotlight when she created a happening scene, with candles, for Christmas, Sinhala and Tamil New Year, and Valentine’s Day.

As lanterns light up Sri Lanka for Vesak, the Colombo-based candle maker is quietly turning wax and wick into little pieces of the festival.

Candles reflecting Vesak themes

Her candles reflect Vesak themes – light, peace, remembrance, giving, etc., to enable you to fill your Vesak celebration with devotion and beauty.

Among her Vesak creations is a lotus-shaped soy candle, scented with sandalwood, lavender, etc., meant to burn during this Vesak Poya Day.

Indunil Kaushalya Dissanayaka: Customers
praise her for her creativity

These handcrafted Vesak candles are perfect for offering at the temple, she says.

What makes her creations so novel is that they come in different shapes, scents, themes, and all are handmade.

What’s more, her customers have heaped praise on her for her creativity.

According to Indunil, her creations are perfect as a thoughtful gift … to bring beauty, unity, and light into every moment.

Says Indunil: “Our beautifully handcrafted Unity candles are designed with premium detail and love, making them perfect for celebrations, gifts, and meaningful occasions.”

Cuteefly, says Indunil, is available online.

Readers could contact Indunil on 0778506066 for more details.

He Facebook Page is: Cuteefly.

Handmade with love

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Features

Dark Spots …

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Yes, dark spots do crop up on the skin, especially with sun exposure and, of course, as the skin ages.

However, these tips should be of immense benefit to those who are faced with dark spots.

Lemon and Honey Glow Mask:

You will need 01 teaspoon lemon juice and 01 teaspoon honey.

Mix the lemon juice and honey well and then apply this mixture, only on the dark spots.

Leave for 10–15 minutes and then rinse with cool water.

Benefits:

Lemon helps brighten pigmentation.

Honey moisturises and heals skin.

Gives a natural glow.

* Aloe Vera Gel Treatment:

All you need is fresh aloe vera gel.

Apply the gel apply on dark spots, before going to bed.

Leave overnight and wash in the morning.

Benefits:

Reduces acne marks and pigmentation.

Soothes irritated skin.

Helps skin repair naturally.

Turmeric and Yoghurt Paste:

You will need 01 teaspoon yoghurt and a pinch of turmeric

Mix the yoghurt and turmeric into a smooth paste and apply on affected areas.

Leave for 15 minutes and then wash gently with lukewarm water.

Benefits:

Turmeric brightens skin naturally.

Yoghurt removes dead skin cells.

Helps fade dark spots gradually.

Use these packs 02-03 times a week as results are generally seen over time.

You can also try this out: Mix a ripe papaya into a smooth paste and apply to the face, or directly on to the dark spots. Leave for 15-20 minutes and then wash with lukewarm water.

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