Tea plantation workers are raising the alarm about the rapid informalisation of labour in the tea industry, noting its harmful effects on labour rights and the economic growth of the sector. 

Ceylon Workers’ Red Flag Union (CWRFU) Deniyaya representative Yapahuwage Geetha Kumari, speaking to The Sunday Morning, said the issue began in 2017 when Regional Plantation Companies (RPCs) based in the south (known for low-country tea) slowly started introducing the ‘board leaf’ system. 

Workers on the permanent cadre of the plantation company – who were entitled to labour protections such as EPF/ETF payments, maternity leave, workplace compensation, and bonus holidays – were asked to maintain a small block of land on their off days of the week to “earn some extra cash”. 

Initially, the system brought in more money for the workers and the plantation companies began to reduce the number of days they would get permanent work. Eventually, they were asked to sign a document ending their permanent service and to obtain their gratuity payments. 

However, 13 workers from one RPC – aged between 25 and 40 years – refused to do so. They wished to continue being on the permanent cadre, noting the benefits and labour protections it brought to them. They had filed a case with the Department of Labour, said Kumari. 

CWRFU General Secretary Anandi Devendrakumari said that the Labour Department had ruled in 2021 that informalisation in this manner was wrong and that permanent employment of the 13 workers should be continued. 

However, the RPC has appealed this ruling in the Court of Appeal, naming the CWRFU and the department as respondents. Last week, the case was fixed for hearing in July with written submissions to be called in April. 

Devendrakumari further said that informalisation was spreading throughout the sector, with unregulated work becoming the norm in many areas producing tea, including Badulla and Hatton. This comes under the guise of various names, including ‘board leaf’ and ‘production-based salary’ systems. 

Therefore, even if the Government stipulates a wage hike for plantation workers, they may not receive it as they are engaged in unregulated work. The 2025 Budget proposed that the daily wage of plantation workers be increased to Rs. 1,700. 

“Even if a wasp attacks them or they fall while working, they receive no compensation from the company when they are engaged in unregulated work,” said Devendrakumari, highlighting the dangers of this system. 

She further criticised RPCs for “manipulating” workers and “using their poverty” to compel them to accept unregulated work. 

“Sometimes, companies say it is a must to accept gratuity and end their permanent service. During Covid-19, companies spread fear among workers about the lack of work in other sectors, encouraging them to accept unregulated work as a ‘better’ option,” she charged. 

Future of industry hangs in the balance?

This type of unregulated work allocates about 1,500 trees or one acre of land per worker, according to the representatives from the CWRFU. In addition to plucking the tea, workers are also responsible for maintaining the well-being of the land allocated to them, at their own cost. 

This served as a disadvantage to both the workers and the land, noted Devendrakumari. 

Tasks that were previously compensated for when they were part of the permanent payroll, such as spraying fertiliser on the land or weeding it, now have to be undertaken without compensation as the workers are responsible for their own plot. Some companies even sell them fertiliser – an additional cost for the workers. 

Devendrakumari added that this also impacted the value of the land. “It’s not fair to ask workers to maintain a land; they have the knowledge to do so but not enough resources to invest in it. As the years pass, the maintenance declines and they will get a low income. This will eventually impact the economy significantly as the agriculture sector will fall.” 

The CWRFU’s Deniyaya representative further said that with this system providing on average Rs. 60 per kilo of tea to the worker, workers had to grapple with little income and poor job security. 

“They have to fertilise the plantation, pluck the tea leaves, and maintain the land with that Rs. 60. Supervisors and watchers pressure them into ensuring the land is clean and maintained. The tea plants have grown older, so the produce is less, further reducing the earnings of workers. A few workers have been given 10 or 15 acres by companies, which they then show to the media or the Labour Department to highlight their higher earnings.” 

The union led a protest in Colombo last week, raising awareness about the matter. It called on companies to respect workers’ rights and reinstate a formal labour system that guaranteed:

• Proper wages, rights, and benefits
• Job security and health and safety measures
• Access to unions for representation and negotiation 
• Women-specific rights in the workplace

CWRFU Assistant Secretary P. Devakumara said that the RPCs had pushed workers to this position by manipulating them. “They now accuse workers of not coming to work permanently,” he said.

However, Planters’ Association Spokesperson Dr. Roshan Rajadurai denied allegations of informalisation, saying they were instead “revenue-sharing schemes” where workers were assigned land. 

“This allows them to earn more than double the minimum pay. While we host a million people in the plantations, only about 100,000 work. They work outside and have made themselves unavailable for work. Pensioners and retirees, who have no other employment in the hill country, have asked us for work, so we have allowed them to engage in plucking, giving them a premium pay,” he noted. 

‘Aware of the problem’ 

Deputy Minister of Labour Mahinda Jayasinghe told The Sunday Morning that the Government was “aware of the problem” of unregulated work, having had a recent discussion about the matter as well. 

“We need to discuss it further with RPCs,” he said. 

Jayasinghe too raised concerns about the effect of this system on the maintenance of lands, noting that similar revelations had been made at an agriculture subcommittee meeting in the Gampaha District. 

“We learnt of coconut plantations that were not fertilised for 10 or so years – the owners are responsible for maintaining them. It’s not directly connected to the Labour Ministry, but we need to have an inter-ministerial discussion, inform the owners, and resort to action if they don’t take action by themselves,” said Jayasinghe.

Multiple attempts to contact Plantation and Community Infrastructure Minister Samantha Viddyarathna proved futile.