Plantation union says no to wage cut
August 30, 2011 07:46 am
The most powerful trade union representing plantation workers in Sri Lanka has rejected a call by tea traders for a wage cut to face a decline in revenue due to the crisis in the Middle East and global economic downturn.
Muthu Sivalingam, the deputy minister of economic development told the BBC that plantation companies have never called to share when they made profit.
The Minister, who is a senior leader of the Celyon Workers Congress (CWC) was responding to remarks made to the BBC by Jayantha Keragala, the chairman of Ceylon Tea Traders Association (CTTA).
“With the recent wage hike, private plantations are at the moment in troubled waters,” the CTTA chief said, calling for a temporary reduction of the pay hike by at least SLR 100.
Cost of living
But Mr Sivalingam says the tea industry has earned record profits during the first six months of this year, a fact agreed by the tea traders.
“The plantation bosses did not raise wages due to goodwill. We had to negotiate for months to get the rise,” the minister told the BBC.
The earnings from tea exports has increased by nearly 10% during the first six months compared to the first six months in 2010, according to figures released by the central bank on Monday.
It is despite the crisis in the Middle East, which account for about sixty per cent of all Sri Lanka’s tea exports.
“The Libyan crisis is temporary, whereas plantation workers have been the leading foreign exchange generators for years,” says Minister Muthu Sivalingam.
He also admits that people in Sri Lanka are facing difficult times as a result of ever increasing cost of living.
“How can plantation workers agree for a cut in wages while all commodity prices are on the rise?” he questions, BBC reports.
