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7/26/2019 Estaff - News Paper

1/12

PRICE OF FREEDOMIS ETERNAL VIGILANCE December 2015

,xld j;=fiajd ix.ufhaf;%hsudisl m%ldYkh- ,yq;if Njhl;l Nritahsu;;rq;fk;- THE JOURNAL OF THE CEYLON ESTATES STAFFS UNION

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3/12

December 2015 3

The Ceylon Estates Staffs' Union

No. 06, Aloe Avenue, Colombo 03.Tel: 011-2573948 Fax: 011-2576841

E-mail: [email protected]

[email protected]

E P F AND E T FA hot topic now been discussed and debated is the proposed

amalgamation of EPF with ETF and to oats a new gratuityfund or something using the trillions of rupees belonging to the

private sector employees. Most of the parties participating inthis debate have little of no direct interest in these two funds.Most of the arguments put forward, for and against, seem tohave some substance but lack sincerity. It is, therefore, a studyof the inauguration of the Employees Provident Fund in 1958and subsequent the birth of ETF, would be interesting.

When establishment of a social security fund was mooted

by Mr.T.B. Illangaratne, a true Trade Union leader, who was inthe cabinet of Mr.S.W.R.D.Bandaranaike, there were opposing

parties to this progressive move even at that time. There wasrumour going round in the country at that time that Mrs.SirimavoBandaranaike (she was not a public gure then) has threatenedto divorce the Premier Bandaranaike if this legislation goesthrough the parliament, as it affects her greatly being a rich landowner. It was also speculated that this rumour has originatedfrom Sirikotha and wings were given by rich socialists in the

parliament. However, against all opposition and odds, progressivemove to have a social security scheme became a reality withthe passage of E{F Act. Soon the regulations were drawn upand act was implemented and the working class heaved a sighof relief and thanked their stars (not Government or Minister)for this miracle.

Largest contributor to this fund was the estate sector, wherenearly a half million workers were employed. Most thesecontributors were illiterate and did not really knew the benetsthey will be entitled to at the beginning. With the passing of time,they realized that they have something to fall back on when theday arrives for them to collect their Pattu Seetu.

EPF was regulated to be managed by the Government withsevere strictures; a trust that every government of statesmenupheld until the governments were grabbed by politicians. Thelatter category saw the icing on the cake and amendments were

brought to the original Act allowing them to put their stinkingngers into the management of this fund. Stricture with regardto the investment portfolio was changed to suit their narrow andselsh motives and these saliva dripping politicians just cannottake their eyes away from the idling trillions in the CentralBank.

Original contributions to EPF were 4% and 6% fromEmployee and Employer respectively. Increasing costs anddevaluation of the rupee from time to time, necessitated increasesto these contributions and amendments were brought increasingthe rate of contributions when workers persisted with theirdemand to increase the rates. The birth of the Employees Trust

Fund was as a result of agitation campaign for further increasesin the employers share of contributions.Contributions in the private provident funds were more

than the EPF and some employers were contribution as muchas 15%, when the mandatory employers contribution was 12%.Sherwd Mr.J.R.Jayawardena found a solution to these demands

by enacting the ETF Act and making the employers divert 3%of their EPF contributions, to the ETF. With the establishment ofETF of Board, he was able to nd positions to his henchmen asChairman, Board members and number of employment to lesser

privileged people. At this stage, it is also opportune to recall howJRJ played out the Estate Workers Trade Union Leaders in theirstruggle for equal wages for equal work. The Union leaders putforward their proposals with a higher slab for the male workersand a lower slab for female workers as was the custom then.There was hard bargaining but it was not agreed to give equalwages to male and females and nally it went to JRJ. He toldthe press that he is stepping in to solve the problem and wantedtime and after some time, (time taken to thaw union leaders)

workers leaders announced that HE President has granted equalpay for equal work. What the workers did not know was that theequal wages granted was originally proposed increased wagesof female workers !!!

In this back drop, what is in the ofng cannot be predictedand as the prevailed system and management of the fund havenot been found faulted gravely, other than little pinching by theGovernment under some pretext or other. Therefore, the realowners of this fund should decide what is good for them and tingods who surface from time to time should not meddle with it.

Until such time that there is common agreement on proposedprogressive new fund, the EPF and ETF should operate as theyare and if the Government is so keen on the welfare and wellbeingof the private sector employees, they should start a scheme withGovernment funding and after seeing the success of it, the fundsof the EPF and ETF can be transferred after reaching a consensusamong the real owners of the existing g funds.

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4/12

December 20154

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December 2015 5

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6/12

December 20156

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7/12

December 2015 7

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8/12

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9/12

December 2015 9

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10/12

December 201510

Once thriving and most sought

after industry plantations. What

happened?

A legacy left behind by the British

and inherited by Sri Lankans is the

plantation industry. Of this tea industry

wore the crown as the most prestigious

and protable agricultural product,

until the estates were vested with

the Regional Plantation Companies

(RPCs). Needless to remind that tea

was for a long time the biggest foreign

exchange earner for the country. The

move to privatise the estates was taken

sequel to the theory that panacea for all

economics ills is privatisation by the

then government.

Estates were divided into 22

plantation companies and these were

entrusted to various companies who

professed competency to manage them

at a par value of Ten Rupees per share.

At the same time, a regulatory agency

was set up by the name Plantation

Management and Monitoring Division

to keep a check on these Companies!

The expected duty from this agency

was to see that the RPCs will manage

the estates efciently and to take action

against those who are not performing or

neglecting these valuable assets of the

Government.

The lease agreement drawn upfor the purpose of privatising the

management of estate is a very

interesting document. Although the

Government is the owner of the

moveable and immovable properties

of the estates, the right has been vested

with the leased holder to mortgage the

land and any property in these estates.

Further, any proceeds from the sale of

land or any assets from the estates will

not go to the Government being the

absolute owner, but will go to the leased

Company!

At the beginning, it appeared that

the move by the Government was in

the correct direction as these RPCs

commenced their operations with abang and all signs were for the progress

of the industry. This lasted only for a

year or two and with the listing of these

Companies in the Stock Exchange,

shares were moving from one hand

to other and soon big changes were

taking place in the top management

level. Those who moved into plantation

industry through the stock exchange

were not interested in the progress or

welfare of the industry but were those

who buy and sell to make a quick buck!

From here onwards, estates began to

suffer and the results are the plight

the estates are now in. At this stage, in

fairness to the SLSPC/JEDB, it must be

said that at the time of handing over toRPCs, the majority of the estates were

in good conditions, while some are in

nest shape and making huge prots to

the two Corporations. Only a very small

percentage of estates were not up to the

mark.

It will be an interesting exercise

to make a comparison of standards

of estates at the time of take over by

the RPCs and 23 years later under

their management. The life span of

productive tea bush is, at the maximum,

considered as 30 years and if replanting

had been carried out on this policy, after

23 years two thirds (2/3rd) of estates

should have been replanted. During

the SLSPC/JEDB period, it was made

mandatory for estates to replant 4% of

the area under tea, keeping to the above

cycle; thereby an average economical

yield can be maintained. So much so,

any estate can face any critical situation,

once the yield is high, which is the

basic component to reduce the cost

of production (COP).On the basis of

keeping to 4% replanting programme,

the RPCS should have replanted 67%

of their tea estates during the last 23

years. It is a known fact that none of

the RPCs have adopted this principle;let alone 67%, not even 5% has been

replanted and they continue to og the

old tea bush to produce miracles. Apart

from replanting, the general agricultural

practices have been completely

abandoned. Soil pH values of most of

the estates have dropped alarmingly

and are much below the minimum level

required. Soil conservation methods

are not adopted and the top soil is

washed away. Maintenance of vettier

and terraces are foreign to these RPCs.

Infrastructure required for economical

maintenance of these estates have

been drastically curtailed; roads and

buildings have not been maintained.

In fact, the bungalow, quarters andworkers cottages receive no attention at

all. Leaking roofs, hanging windows,

broken glass panes are common sight

on all estate buildings. Vehicles have

not been maintained and most of them

have not been licensed to run on public

roads. Collection of scrap iron, old

tyres, rackety vehicles, etc for sale

is one of the important events in the

calendar of the RPCs. Another source

of income is the sale of tress, which

were planted for shade or wind-belts.

Virtually, all immovable properties were

rst mortgaged to Banks but most of the

RPCs, it is reported, have not even paid

the lease rental to the Government and

the PMMD has done nothing about it.Thousands of hectares of tea

have been abandoned. The regulatory

for this is when the yields become

uneconomical, the eld is abandoned

against replanting and a ctitious yield

gure is shown. If a comparison is made

against the area under production at

the time of take over by the RPCs and

now, the area under production have

dropped by almost50% and naturally,

the production has also equally

suffered. Hundreds of tea factories,

which were producing prime quality

tea and maintaining high sales averages

have been closed down and valuable

machinery have fell into the category

of scrap iron which have been sold

for a song! When the factories were

abandoned, thousands of workers lost

their employment and mostly the youth

who were employed in these factories

became restless and nally were forced

to take to illegal ventures for their

survival. Many left the plantations and

migrated to the urban areas looking for

employment, which created a shortage

of workers on estates.

There was a xed cadre of land/

labour ratio and estate staff for each

estate at the time of take over by theRPCs. In the name of economizing,

staff cadres have been drastically

curtailed and extra work has been

heaped on this reduced staff cadre

without additional remuneration for

extra work. It is elementary that if

proper standards are to be maintained

and obtain quality product, the

necessary resources should be provided.

Instead, these RPCs have replaced

experienced and knowledgeable staff

with few executives who have been

trained for six months to take over!

Even at the top management level,

most of the experienced executives who

served as Directors have been replaced

with some persons who advocate quickresults irrespective of long term adverse

repercussions to the industry; thus

setting the deterioration from the top.

Some of these RPCs have also

become law unto themselves by

disregarding the statutory obligations.

Joint contributions to the Employees

Provident Fund (EPF) have not been

remitted for years. It will be interesting

to know that the contributions deducted

from the employees have been utilized

by these RPCs! Employees Trust

Fund (ETF) contributions have also

not been remitted, thus depriving the

employees from various benets offered

by the ETF. When contributions are not

received by the ETF Board, they do

not entertain claims for large number

of benets offered by the ETF. In

some cases, the deductions made for

Insurance Premiums, Hire Purchases,

Bank Loans, etc have not been regularly

remitted to the respective institutions

but these deductions funds have been

utilized by the RPC. The employees

have been put into great hardship by

having to meet penalty interest, seizure

of articles, denial of insurance benets

etc as a result of not remitting the

recoveries to the respective places.

Transport eets are in complete

disarray and most of the vehicles are not

road-worthy. The drivers run the risk of

their lives by driving these. Essential

repairs, replacement of tyres, batteries

and maintenance work have not been

attended to. There are also some RPCs

that even do not provide adequate

rewood to operate the tea driers!

Firewood suppliers refuse to honour

the orders placed by these RPCs as they

have not been paid for the previous

supplies and the factory staff are left

high and dry.

Another hilarious activity by some

of these RPCs is to dump the tea

factories with most modern tea cleaning

machines, worth millions. Production

in some factories has halved but these

expensive machines are regularly

installed and the secret behind this was

that interested parties will be benetted

as commonly known. Despite the

deteriorating production levels, one

cannot understand why the Government

is proposing to pump millions into

tea factory development as subsidies.

What they should insist is to revert toreplanting and improve the production

levels before factories are developed

as most of the factories are now quite

capable to handle the production

without additional machinery and

maintain the required quality.

The funniest of all is the work

of the PMMD, which is supposed to

monitor the activities of the RPCs. If

the PMMD has acted as expected, they

could have highlighted the shortcomings

and remedial actions taken before these

estates were ruined. They should be held

wholly responsible for the current sad

state of affairs on estates.

To sum up, the story of one RPC

will amply justify all what is said above.This RPC had the nest estates in Up

Country and Low Country producing

millions of kilos of tea and making

prots in millions and with privatisation

the ETF took over the management

and it did so well in the three years,

improving the standards of estates.

With the growing reputation, many

were eying for this RPC and nally ten

rupee share was bought for Rs.70/- and

the new management was so inapt and

incapable and nally it ended up by

surrendering to a lending organization.

PLIGHT OFPLANTATION INDUSTRY

NathAmarasingheGENERAL SECRETARYC.E.S.U

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11/12

December 2015 11

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12/12

December 201512

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