Veterans of the tea industry have criticized the government’s recent decision to increase the minimum daily wage of workers to Rs. 1700, warning that such unsustainable decisions could ultimately lead to the demise of Ceylon Tea.
Speaking at a press conference held in Colombo yesterday (May 27), industry veteran and former Colombo Tea Traders Association Chairman – Anselm Perera declared, “If the Government continues to make short-sighted, stubborn decisions, Ceylon Tea will become a thing of the past.”
He pointed to the nationalisation of plantations, the banning of glyphosate, recent restrictions on fertiliser for commercial crops and the attempts to forcefully implement the minimum wage hike from next month as examples of harmful decisions.
“If labour costs rise to Rs. 1,500 we cannot sustain the industry. We will be forced to cut down on everything, including fertiliser, energy, transport, welfare which will ultimately reduce the quality of our tea,” he added.
Planters Association of Ceylon (PA) spokesperson – Dr. Roshan Rajadurai noted that the cost of production for tea and rubber would rise dramatically, with estimates indicating a minimum 45 percent increase in the cost per kilogramme of tea.
Meanwhile, Minister of Labour – Manusha Nanayakkara and Minister of Water Supply and Estate Infrastructure Development – Jeevan Thondaman had stated that the Regional Plantation Companies that do not pay the minimum wage will have their leases terminated.
Employees of all Bank of Ceylon (BoC) branches have decided to walk out of service at 12.30 pm today (May 29).
The decision has been taken over the current management not taking the initiative to provide them with the 06-month incentive package approved by the Board of Directors, according to the Bank Employees’ Union.
Central Committee member of the Bank Employees’ Union – Najith Wijeratne, stated that they will initiate a token strike if this issue is not resolved by June 06.
BoC employees have also held lunchtime protests yesterday (May 28) in front of 22 branches in major cities islandwide.
The National Salt Ltd. says that 2,800 MT of salt imported from India have been released to the market.
It says the food-grade salt stock, which arrived on May 23, is being distributed to the market through local salt sales agents for consumer sale.
The Ministry of Industry and Entrepreneurship Development states that Lanka Salt Ltd. is importing 10,000 MT of salt, while over 100 importers, including those from Pettah, are bringing in an additional 100,000 MT.
Employees of Michelin Lanka Pvt Ltd, located in the Midigama area of Matara, allege that there are plans to sell the company.
This has raised concerns among employees about job losses, leading to protests.
Workers allege that the company is planning to dismiss them with a minimal severance payment, which they believe is insufficient.
An employee has revealed to the media that after workers were informed about this decision, a newly formed employees’ union has set several demands to the company authorities.
Workers have demanded a fair severance package, but authorities have offered Rs.200,000, (a sum employees consider inadequate) reportedly asking them to provide resignation letters in return.
An employer also states that before the current government took office, Minister Wasantha Samarasinghe had proposed that forming a trade union could help secure workers’ rights. However, the president and secretary of that union are now reportedly in hiding, he employer adds.
Meanwhile, holding a press conference recently, the Inter Company Employees’ Union had revealed that Michelin Lanka Pvt Ltd is in the process of selling the company to the Indian company – CEAT.
According to the union, CEAT has purchased a majority stake in the company.
As part of the deal, it is reported that the Midigama factory of Michelin Lanka Pvt Ltd and part of its operations in Ja-Ela have been transferred to Indian CEAT company.
The Inter Company Employees’ Union had stated there was no issue as a MoU was signed between the two companies to secure workers’ rights. According to the agreement, Michelin Lanka Pvt Ltd had pledged to honor the full service period of affected workers, while CEAT agreed to provide appropriate compensation based on their years of service, the union adds.
Michelin Lanka was previously a part of Camso Loadstar (Private) Ltd, one of the largest suppliers of industrial tyres in the global market.
The situation at Michelin Lanka follows the sudden closure of the NEXT garment factory in the Katunayake Free Trade Zone a few weeks ago, leaving over 1,400 workers jobless.
In a statement, the company cited high production costs as the reason for shutting down operations in Sri Lanka.
