Business
RPCs submit hybrid between daily-wage model and output-based earnings model
Taking a cue from the success of the smallholder sector, Sri Lanka’s Regional Plantation Companies (RPCs) handed over fresh proposals aimed at radically increasing worker earnings during a recently concluded meeting with the Minister of Labour and Trade Unions leaders.
The newly introduced proposal provides for a hybrid between the daily wage model and the productivity-linked earning systems implemented with great success in the smallholder sector. Adding a productivity based component will ensure that worker earnings are expanded, and workers have more flexibility and control over their monthly earnings.
Under the new proposals, RPCs will continue to offer a fixed daily wage with the re-introduction of attendance and productivity incentives. In a notable departure from previous years, the RPCs have proposed a mix of 3 days of daily wage and 3 days of productivity-based earnings, where workers will have the capacity to expand their earnings based on their output.
The first alternative under the productivity-linked proposal is a system where workers are paid Rs. 50 for every kilo of green tea leaf plucked (inclusive of EPF/ETF). Where a high plucking average of between 30-40kgs a day is attained (over and above the existing norm), workers have the potential of expanding their earnings exponentially. In the case of the Rs. 50 rate, a worker who plucks 20 kg will receive Rs. 1,000 per day, and monthly pay of Rs. 25,000.
Current annual plucking averages among RPC companies are between 20-22kgs a day. However, a majority of the best harvesters have plucking averages between 30-40kgs, this means that earnings can now be expanded to over Rs. 37,500-62,000 per month.
The next alternative is that workers are remunerated based on a share of the National Sales Average (NSA) ratio of 35%.
Furthermore, under the new daily-wage component of the proposal, workers will be paid a total Rs. 1,025 for a day’s work. The breakdown is as follows: Basic Wage – Rs. 700, EPF/ETF – Rs. 105, Attendance Incentive – Rs. 70, Production Incentive – Rs. 75 and Price Share Supplement – Rs. 75. If workers are to be compensated purely on this model, they will see an increase in their monthly earnings by Rs. 4,250. If workers exceed the plucking norm, they will receive a higher compensation.
In pilot projects conducted on RPC estates and according to studies conducted by the Tea Research Institute, such productivity-linked models have been proven time and again to tremendously increase worker productivity and earnings.
The RPC proposal also recommends that discretion be given to companies to choose between the implementation of either model.
“We urge all stakeholders to carefully consider the extremely valuable benefits that our proposals offer. We must move away from the traditional wage system and look towards the sustainability of the industry, where workers can become empowered entrepreneurs. Once productivity models are implemented, workers will have the benefit of flexi-hours, and worker mobility where other family members can contribute towards the earning process as well. Our workers will have a say in when and how they work, and drastically improve their earnings in the process,” Planters’ Association of Ceylon Chairman, Bhathiya Bulumulla asserted.
Business
Affairs of Sri Lankan Airlines could be turned around using local expertise – former CAA chair
The financial affairs of national carrier Sri Lankan Airlines could be turned around along with the fortunes of Mattala Airport, using local management expertise without divesting these assets, former chairman CAA and veteran travel and tourism expert Upul Dharmadasa said.
“Sri Lanka has experts and knowledgeable persons to develop Sri Lankan Airlines into a viable entity. But when it comes to the debt restructuring process the government should absorb the losses to salvage our national carrier, former chairman Civil Aviation Authority Upul Dharmadasa told The Island Financial Review.
Speaking on Mattala Airport Dharmadasa said that during the Covid 19 pandemic he spearhead the airlines’ operations to bring more than 138,000 Sri Lankans back into the country. “At that time Mattala Airport functioned as a second international airport and it assisted the government in managing Covid patients in a more systematic way, he said.
Dharmadasa added: ‘Further, Mattala Airport’s 12 anniversary falls today. It falls on the government to develop it as the second international airport. It could attract large aircraft.
“We need to deploy proper and qualified persons to streamline the entire process.
“I have been in the airline industry for more than four decades. The number of airline arrivals in the country and departures from it have come down considerably after Covid 19 pandemic.
“In this scenario, Sri Lankan Airlines should focus on launching new flights to US and Canada. Together they account for more than 1.4 million Sri Lankan diaspora members who fly to Sri Lanka.
“Sri Lankan Airlines should resume Rome flights as well, which is a lucrative market. Apart from that Sri Lankan Airlines should focus on new destinations, wherein they could sell tickets and attract huge revenue to the airline.
“The airline should have 25 aircraft to offer uninterrupted services to air travelers but at present it has only 23 aircraft.”
By Hiran H Senewiratne
LOLC Al-Falaah, Sri Lanka’s leading provider of alternate financial solutions, proudly announces the launch of ‘Al-Falaah Wakalah Future-Cash’, a pioneering Shariah-compliant alternative for Factoring, Invoice & Cheques discounting facility, designed to transform business financing. This ground-breaking financial solution empowers businesses to elevate and realize future cash flows in real-time, while maintaining adherence to ethical financial principles. Setting a new benchmark in Sri Lanka’s Islamic financial services sector, this initiative strengthens LOLC Al-Falaah’s commitment to innovation and excellence in the alternate finance arena.
Unlike conventional Factoring, which relies on interest-based returns against receivables, LOLC Al-Falaah’s ‘Wakalah Future-Cash Today’ product is structured under the ‘Wakalah-Bil-Istithmar’ concept, ensuring full compliance with Islamic economic jurisprudence. Through this model, LOLC Al-Falaah provides capital infusion into business operations in exchange for a pre-determined Anticipated Profit Return (APR), eliminating interest-based transactions. Businesses are appointed as agents to deploy these funds within their operations, with surplus earnings allocated as a performance incentive. This structure enhances financial discipline, promotes transparency, and encourages ethical business practices.
The introduction of this pioneering facility is particularly timely as Sri Lanka transitions towards economic recovery and long-term stability. Shiraz Refai, Head of Alternate Financial Services at LOLC Al-Falaah, emphasized the significance of this initiative: “As Sri Lanka embarks on a path of economic resurgence, businesses require the right financial instruments to capitalize on emerging opportunities. As a trailblazer in the alternate financial services sector, LOLC Al-Falaah has identified a critical gap in the bills-discounting and factoring industry. The launch of LOLC Al-Falaah’s ‘Wakalah Future-Cash Today’ product presents a strategic solution that enhances liquidity and working capital efficiencies while adhering to Islamic financial principles.
City Cycle Industries Manufacturing (Pvt) Ltd, a leading provider of sustainable mobility solutions and renowned for its household brand Lumala, has been honored with the Best National Industry Brand award under the Large-Scale Other Industry Sector at the recent National Industry Brand Excellence Awards 2024.
Organized by the Sri Lanka Technical Development Board under the Ministry of Industry and Entrepreneurship Development, the award ceremony was held on 21 February at Eagle Lakeside and saw the participation of distinguished leaders from diverse industry sectors. The vent was graced by Prime Minister Harini Amarasuriya as the Chief Guest.
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