The Minister of Labour Relations and Manpower, Athauda Seneviratne says the recent 40% plantation sector wage increase, is the most attractive wage increase in the plantation sector, in a long time.

"This wage increase is very attractive compared to previous wage increases. Earlier the daily wage in the plantation sector was Rs 290. Now the wage has gone up to Rs 405, very fast," said Minister Athauda Seneviratne, in an interview.

However, the Minister noted that most estate workers are still unaware of the latest wage increase, and wage structure. For instance, the current wage increase incorporates a Rs 30 per day productivity incentive that allows people to earn more on the basis of their work.

"Under the current wage structure, a plantation worker can earn about Rs 11,000 for a month. But I don’t see anyone educating the workers. Even the trade unions don’t do this. So the companies must build awareness among workers, because ultimately it will benefit the companies," said Minister Seneviratne.

The Minister, who has many years of experience in Sri Lanka’s trade union movement and national labour administration, noted that the better wage will also address the problem of labour migration from Sri Lanka’s plantation sector.

Although plantation export crops are still Sri Lanka’s biggest agricultural export, employment in the plantations are also seen as low status jobs. As a result many estate youth prefer going to work as labourers, or attempt to get casual employment in cities. Females go abroad as housemaids.

"Estate work is not seen to have social standing. So, people from estates go out and work. But they don’t get any of the benefits they get in the estates. A better wage in the plantations, together with all the other benefits, will make the estates more attractive and can discourage them from leaving the estates," said the Minister.

The better pay, says the Minister, can also increase productivity.

"Plantation companies should look after workers because this is still a labour intensive sector. When workers are happy, they will work more and companies will benefit because of higher productivity," said the Minister.

The Minister of Labour noted that non-wage factors are also important in retaining employees. Therefore, estate managers were advised to build direct links with estate communities, so that the estates become central to the people’s lives.

"The companies should pay workers a fair wage. In addition, they should also improve worker housing and education, and participate in their religious festivals and cultural activities and build trust, so that the worker’s linkages to the estate are strengthened. When workers are happy where they are, it will reduce the need for them to move out," explained the Minister.

Plantation companies were also encouraged to help estate communities develop supplementary incomes, to increase overall incomes.

"Plantation families sometimes grow vegetable or keep poultry, or do other little things. Companies should encourage these activities because it improves the incomes of these families," said the Minister.

Sri Lanka’s nearly one million resident population in plantations, is also a magnet to political forces and trade unions.