Trade Union discussions with the Employers’ Federation of Ceylon (EFC) this week ended in chaos. Unions did not budge on their demand for Rs. 500 wage per day. The Regional Plantation Companies (RPCC) represented by the EFC held they could pay only Rs. 350. Plantation Unions rejected this suggestion en bloc.

The climate of belligerence continues to ferment discontent and daily escalation of disruption has gripped the plantation sector.

Chairman Plantation service group with the EFC and Deputy Chairman Planters’ Association of Ceylon (PA) Lalith Obeysekera said the Trade Union demand for Rs.500, was in real terms an increase amounting to approximately 75 per cent. He said this would cost the industry an additional Rs 12 Billion.

Each RPC would have to pay an increase of some Rs 500 to 600 million which they cannot sustain.

Additionally, the transport blockage preventing produce movement to Colombo on sold consignments would have further debilitating influences on sales and dispatch of tea to overseas buyers.

Chairman Tea Exporters Association (TEA), Jayantha Keragala said packers who shipped Ceylon tea including 75 per cent Ceylon Tea in their blended packs would now move their entire plant operation to neighbouring countries, not subject to trade union influences. If that happens the country would annually lose approximately 160 million dollars.

Chairman Mlesna Tea, Anslem Perera, said the entire tea industry was already reeling, influenced by the economic down turn last year, and recovery was nowhere near.