Livable wage for deserving competence:

By Lalin I De Silva – www.vivonta.lk

The history of plantations in Sri Lanka predates the structured implementation of Human Resources Management (HRM) principles. This has led to a stagnation of progressive workforce policies in the plantation sector, worsening the crisis of a static, never-evolving job structure at the estate level. The core issue stems from the industry’s continued entrenchment in the commodity market rather than transitioning into a product market—save for a few exceptions. This has provided fertile ground for trade unions to maintain an archaic system that perpetuates labor dependency rather than advocating for a modern, competency-driven business model.

Trade unions, instead of embracing transformation, have traditionally relied on collective bargaining mechanisms, often with the backing of international organizations like the International Labour Organization (ILO). While collective bargaining has been seen as a tool for securing higher wages, it has inadvertently preserved outdated employment structures. Value chain management experts have long proposed competency-based remuneration models to address labor attrition, yet these calls have largely gone unheeded. Consequently, the plantation sector is now grappling with an acute shortage of skilled labor, further eroding its contribution to the national GDP, which once stood at 4% but is now on a downward spiral.

Faced with laboUr crises, politicians have resorted to using their influence to mandate wage hikes, not as a means of strategic sectoral reform but merely as a damage-control measure. However, increasing wages without a structured, scientific approach does little to ensure sustainable sectoral growth. The fundamental question that remains unanswered is: how does one define and measure the ideal level of competence required for a liveable wage in the plantation sector?

The answer lies in embedding HRM principles into the very fabric of plantation management. A sustainable solution involves the following integrated approach:

1. Developing a New Business Model (Strategy): The plantation sector must transition from a commodity-based approach to a product-oriented one. This shift would add value to the supply chain, open new market opportunities, and create demand for a more skilled workforce that justifies better remuneration.

2. Digital Transformation (Technology): The introduction of smart agriculture, automation, and data analytics can help modernize estate operations. Digital tools can facilitate workforce planning, performance tracking, and precision farming techniques, all of which will redefine job roles and expectations.

3. Structural Reforms (Execution Frameworks): The industry must realign its organizational structures to support modern business objectives. This includes redefining job roles, eliminating redundant positions, and introducing competency-based career pathways.

4. Professional Development (Human Capital Evolution): The focus should shift from merely training technicians to cultivating professionals at all levels. This entails structured upskilling programs, leadership development, and competency assessments to drive industry-wide transformation.

Key HRM interventions such as job evaluation, job costing, job rotation, and salary benchmarking must be systematically applied to create a competitive and attractive workforce environment. This will not only address the challenge of high labor costs but also mitigate external political interference in wage determinations.

Rather than blaming political interventions for the sector’s decline, stakeholders must proactively manage growth through Value Chain Management (VCM) principles. A robust VCM approach ensures that each component of the plantation industry—from raw material sourcing to final product delivery—operates efficiently and profitably, thereby justifying a competency-based remuneration framework.

The future of Sri Lanka’s plantation sector depends on its ability to adapt, innovate, and integrate HRM strategies that align with global best practices. A shift towards a competency-based livable wage model will not only improve labor retention but also restore the sector’s economic viability, making it a sustainable and attractive career option for future generations.

(Lalin I De Silva, value chain journalist of Vivonta Green Tech Consultants, former Senior Planter, Agricultural Advisor/Consultant, Secretary General of Ceylon Planters Society, Editor of Ceylon Planters Society Bulletin and freelance journalist. )