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Sri Lanka Equity Forum » Stock Market Talk » Tea industry’s performance in 2018 and prospects for 2019

Tea industry’s performance in 2018 and prospects for 2019

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ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Year 2018 began with a lot of optimism in the backdrop of an excellent year (2017) that was witnessed in terms of tea prices. The first quarter commenced on a high, with the quarterly auction average being recorded as the highest ever. However, as the year progressed, the Sri Lankan tea industry had to face numerous obstacles.

Consequent to banning of glyphosate by the Government of Sri Lanka, tea growers and large plantations, in particular, were forced to use alternative products for the control of weed growth, resulting in MCPA levels higher than permitted for exports to Japan.

Tea industry’s performance in 2018 and prospects for 2019 Image_c32ca92b73

As the year unfolded, purchases from Japan declined due to purchases/shipments being made only following prior testing for chemical residue levels. This brought about a market – unrelated to quality – with greater emphasis on the MCPA levels and its suitability for the Japanese market. 

In and around May, US sanctions on Iran were imposed which had a cascading impact on Auction prices in Colombo, particularly for the Low Grown (Tippy) teas. There was some optimism for tea prices to turn around towards June/July following the strengthening of oil prices and the weakening of the Sri Lankan Rupee. However, this too did not work out to be a reality following the weak economies in most Middle Eastern countries and Russia, resulting in currencies in the importer countries also depreciating against the US Dollar. 

During the second half of 2018, there was ample evidence of global production increasing significantly, primarily due to increased production in the African region. These increases did not reflect too adversely on Colombo Auction prices, as most of the increase comprised of CTC teas.

After much deliberation, stakeholders were successful in negotiating with the Government of Sri Lanka to remove the glyphosate ban through a Special Gazette dated 11 July 2018, a welcome relief to the industry. However, the modalities have taken a considerable period of time for these shipments to be available for the plantations on a regulated basis.

Commencing around September 2018, the Sri Lankan Rupee began to show a significant devaluation against the US Dollar, which possibly to some extent made Sri Lankan tea prices attractive to importers. Since then, we have seen reasonable momentum although the current Auction price levels are below the corresponding sales of last year by approximately Rs. 50 or $ 0.27 per kg. Cumulative Colombo Auction average up to the penultimate sale stood at Rs. 619.11 compared to Rs. 582.17 in 2017, a variance of Rs. 37 per kg.  A synopsis of the tea industry’s performance during the year 2018 is set out below.


Cont....http://www.ft.lk/agriculture/Tea-industry-s-performance-in-2018-and-prospects-for-2019/31-669246

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Plantation sector might rise up again.......... Q4 results and 2019 policies on the way............ Idea Idea Idea

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sri Lanka’s tea output seen recovering to 300mn kg in 2018

Dec 23, 2018 


Sri Lanka's tea production is likely to be around 300 million kilos in 2018, Forbes & Walker Tea Brokers said in a report.

The latest tea production statistics available for the month of October totals 29.6 million kilos, an increase of 3.8 million kilos or 14 percent from a year ago.

“Sri Lanka is likely to achieve the 300 million kilo mark, a reasonable recovery from the disastrous second and third quarters,” the brokers said.

The estimate considered that production up to October totals 251 million kilos and assumed production in November/December would remain static around the 2017 figures  and said it was notwithstanding the labour unrest on plantations and curtailment of tea production in December. 

But auction average prices were much lower than those in 2017 although they had begun to recover. 

​​​​​​​https://economynext.com/Sri_Lanka%E2%80%99s_tea_output_seen_recovering_to_300mn_kg_in_2018-3-12977-9.html

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Glyphosate back: Plantations would take 10 yrs to recover
December 23, 2018
​​​​​​​


One bad decision has impacted an entire tea industry’s future that experts opine could take nearly a decade to overcome the over-growth of weeds on Sri Lankan plantations.

Weedicide, Glyphosate that was banned in the country for the past three years, has been brought back following the lifting of the ban in May this year but plantation companies believe it would take about 10 years to return the estates to normalcy.

Hayleys Plantations MD Roshan Rajadurai told the Business Times that the plantations would take about 10 years to return to its earlier state as the reduction in the weeds that are overgrown would take a gradual process to take effect.

Since the previous week Glyphosate has been imported and each Regional Plantation Company (RPC) provided with 2000 litres of the weedicide.

Mr. Rajadurai explained that about 1.5 litres of Glyphosate is required for each hectare of plantations land to wipe out the weeds.

His company alone manages 35,000 hectares of plantation land and they believe that returning the estates to normalcy would take them quite some time since weeds cannot be wiped out overnight.

Glyphosate today is imported by the Ceylon Petroleum Corporation (CPC) which was previously carried out by a number of private companies and which was then freely available in the open market. However, today due to the ongoing ban on the use of the pesticide which would be permitted only for rubber and tea sectors, authorities believe that they need to regulate the import of the product.

In this respect, regulating its import could be convenient if delivered through the CPC and stocks would be issued only twice a year as per the requirements of the plantations.

One of the severe impacts of the ban on Glyphosate was the loss of the Japanese market which maintains strict conditions in the import of Ceylon Tea. Due to the use of the alternative pesticides by the industry in the absence of Glyphosate it caused high residue levels of these weedicides being found in Ceylon Tea exported to Japan. As a result Japan banned the product and it’s now exported after careful laboratory tests to ensure that they do not contain residue levels above the norm stated by the importing country.

http://www.sundaytimes.lk/181223/business-times/glyphosate-back-plantations-would-take-10-yrs-to-recover-326072.html

easthetic


Equity Analytic
Equity Analytic
Thanks Ruwan when heart gets dictating terms over  brain when it comes to national policy decisions real effect would be hard to digest for quite a few years.

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@easthetic wrote:Thanks Ruwan when heart gets dictating terms over  brain when it comes to national policy decisions real effect would be hard to digest for quite a few years.
Lets make it right 2020 by sending fresh politicians to make this country a better one Wink

Tea industry’s performance in 2018 and prospects for 2019 Cccc11

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Indian tea may benefit from Sri Lanka wage hike, Vietnam problems
25.12.2018


Indian tea is expected to benefit from the wage hike in Sri Lankan plantations and residue (pesticide) problems in Vietnam, traders said.

Domestic tea production during 2018 is expected to stay more or less the same as last year despite lower rainfall, while exports are expected to marginally increase.

India is the second-largest producer of tea in the world and contributes 26% to the global production.
Tea industry’s performance in 2018 and prospects for 2019 Image_d5553562cd

MK Jokai Agri Plantations Vice President Parimal Shah said tea production is estimated to be marginally lower at about 1,300 million kilograms (mkg), against 1,322 mkg in 2017. According to the State-run Tea Board data, India’s tea production for January-October 2018 stands at 1,117.6 mkg, against 1,127.2 mkg from the year before. 

South Indian tea production for the first 10 months of 2018 stands at 187.6 mkg, against 197.3 mkg in 2017. North Indian tea production for the first 10 months of 2018 was 929.98 mkg, against 929.85 mkg of the same period last year.

Shah said, on the price front, it has been a modest year with nothing spectacular. “Movement of tea was a bit erratic due to the sanction problems in Iran and the prices were low. But, once it became clear that India could export to Iran, tea prices have picked up sharply. Wage hike across plantations is a big concern for the organised sector.” 

He added that the share of wages come to 60-65% of the total production cost for organised players of tea plantations.

Average auction prices for the first 11 months of 2018 was 138.20 per kg, against 132.79 per kg in 2017.

The expected wage hike in Sri Lankan plantations is estimated to help South Indian orthodox production, according to Global Tea Brokers President Sriram Narayanaswamy.

“We have seen good demand for South Indian orthodox tea with problems seen in Vietnam and Indonesia. An increase in Sri Lankan tea production cost could help South Indian tea, and more producers have been seen moving to orthodox from CTC (crush, tear, curl),” he said.

Sriram adds that the export of CTC tea to Egypt and Pakistan was also higher this year.

India exports the CTC tea variety mainly to Egypt, Pakistan, and the UK, and the premium orthodox variety to Iraq, Iran, and Russia. 



http://www.ft.lk/front-page/Indian-tea-may-benefit-from-Sri-Lanka-wage-hike--Vietnam-problems/44-669527

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Navin assures equitable solution to plantation wage crisis
27 December 2018



Plantation Industries Minister Navin Dissa-nayake has reassured to provide an equitable and a long-term solution to the ongoing estate worker strike. 

“We are now discussing with both trade unions and the Employers Federation of Ceylon (EFC). There needs to be a long-term sustainable strategy to this issue. Collectively, we hope to reach an equitable solution very soon,” the Minister told journalists on Tuesday.

Tea industry’s performance in 2018 and prospects for 2019 Image_28d2fb1fcc
Plantation Industries Minister Navin Dissanayake
Acknowledging that this issue is very subtle as more than one million people are depending on this industry, he said it was important to consider the concerns of worker and employer with a long term equitable solution. 

“We need to reflect on both sides. On one hand it is important to consider from the humane side in providing them with Rs. 1,000 daily wage, but on the other hand we need to think how economically viable that decision is for the 22 plantation companies providing over 500,000 employment. While there is a humane aspect to this matter, we also need to evaluate how these companies would operate in a sustainable manner in the longer run,” the Minister stressed. 

The Collective Agreement discussions dragged for over three months with no breakthrough and the worker strike has been ongoing for almost a month with the industry’s losses topping over Rs. 2 billion.


http://www.ft.lk/front-page/Navin-assures-equitable-solution-to-plantation-wage-crisis/44-669614

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Plantations ring in New Year with ray of hope
1 January 2019​​​​​​​


Tea industry’s performance in 2018 and prospects for 2019 Image_7e37996d87Tea industry’s performance in 2018 and prospects for 2019 WAAACH5BAEKAAAALAAAAAABAAEAAAICRAEAOw==

  • Trade unions express willingness to consider alternative options offered by RPCs on Collective Agreement but remain steadfast on Rs.1000 per day goal 
  • Conclusion of new deal top priority of EFC for 2019
  • Navin pledges to become directly involved to provide equitable solution
  • Industry’s losses top Rs. 2 billion due to one month worker strike



The dawn of the New Year brings hopes of an end to the protracted wage stand-off in the plantation sector, with estate trade unions indicating that they are willing to consider alternative options put forward by the Regional Planation Companies (RPCs) to achieve their demand of Rs. 1000 a day. 

“Despite refusing to move away from the Rs. 1000 basic wage, trade unions have shown their willingness for some flexibility to consider the three offers made by plantation companies. We believe this is a very positive reaction from them after four months of discussions,” a top official of the Employer’s Federation of Ceylon told Daily FT on condition of anonymity.

The EFC and the three main plantation trade unions; Ceylon Workers Congress (CWC), Lanka Jathika Estate Workers’ Union (LJEWU) and the Joint Plantation Trade Union Centre (JPTUC) had met once to discuss  on the Collective Agreement, which has been dragging on for four months.

Members of the CWC who represents the majority of estate workers continued their strike for a month, demanding a 100% hike in basic wage to Rs. 1000 per day, whereas the industry has offered a 20% increase to Rs. 600 per day.

He said the EFC has conveyed to the union workers impossibility of RPCs meeting the Rs. 1000 basic wage requirement as it was not economically practical.

“We have categorically mentioned during discussions that it was not feasible for the plantation companies to commit to a Rs. 1000 basic wage. Some of the proposals by the PA had been considered beyond their capacity to maintain themselves. It is a huge commitment by the RPCs to keep faith in their workers’ productivity and contribution. They have taken a great risk because once they sign the agreement all RPCs are bound by the law to adhere,” he pointed out.

The PA insisted that with attendance and productivity incentives and price share supplement, the daily wage will be Rs. 940 per day, and if 22 kilos are plucked per day, the workers stand to get Rs. 1055 per day which is higher than unions demand. Even at the lower pay level of Rs. 940 per day, the annual wage bill for the industry will be a staggering Rs. 27 billion, apart from Rs. 16 billion in gratuity.

“Concluding the Collective Agreement negotiations is on the top of the priority list of EFC for this year. We hope to meet and discuss with the three main trade unions and arrive at a common understanding on this matter which has cost everybody in the industry,” the EFC official added.

The industry pointed out that strike action comes at a time when the industry is tipped to miss the $ 1.6 billion export target for 2018, and production is likely to be 40 million kilos less.

“We are fast losing our world market share as a result of the continued strike. We will end up missing the usual export target of $1.5 billion, and fall below 300 million kilograms to about 280 million kilograms this year. Whatever negotiation or correction we will make now, it will still impact all our future endeavours negatively,” stakeholders of the industry said.

Reassuming duties as Plantation Industries Minister Navin Dissanayake also pledged to reach an equitable solution to the ongoing worker strike, which is causing a massive economic cost and damage to the Ceylon Tea brand internationally.

“I hope to get involved directly to find an equitable solution to the ongoing worker strike. I am planning to discuss with MPs Thondaman and Thigambaran as well as the EFC to put an end to this dragging issue,” the Minister stated.

The Collective Agreement discussions dragged for over four months with no breakthrough and the worker strike has been ongoing for almost a month with industry’s loss topping over Rs. 2 billion.

http://www.ft.lk/top-story/Plantations-ring-in--New-Year-with-ray-of-hope/26-669927

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Sri Lankan tea auction prices fall in 2018 from record high

Jan 04, 2019 

Sri Lankan tea auction average prices fell in 2018 from record highs the year before, including in US dollar terms, brokers said. 

The January - December 2018 cumulative average of 581.91 rupees a kilo, was a decrease of 36.23 rupees from the 618.14 rupees in 2017 which was the highest ever average recorded for a calendar year, Forbes & Walker Tea Brokers said. 

“Both the month and cumulative averages show a greater decrease in US dollar terms compared to the corresponding period of 2017, with the Sri Lankan rupee depreciating sharply particularly in the last four months of 2018,” they said. 

The cumulative average in US dollar terms in January - December 2018 was 3.59 a kilo, down 52 US cents from the 4.11 dollars of January - December 2017. 

The average price for low grown teas, which account for the bulk of the crop and are grown mainly by small farmers, fell by 36.61 rupees to 600.79 rupees a kilo for the January - December 2018 period from the year before.

https://economynext.com/Sri_Lankan_tea_auction_prices_fall_in_2018_from_record_high-3-13055-9.html

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Plantation workers’ wage issue : Talks on Collective Agreement to resume
06 Jan 2019

The Plantation Workers’ Unions and the Employers’ Federation of Ceylon (EFC) will meet early next week in Colombo to resume negotiations on the Collective Agreement (CA) that lapsed last October and the wage hike demand of workers, which brought operations in many estates across the country to a grinding halt.

A Collective Agreement on the wage of workers is signed every two years between plantation unions and Regional Plantation Companies (RPCs).

According to a senior official of the EFC, the meeting is due to be held among the representatives of the Ceylon Workers Congress, the Lanka Jathika Estate Workers Unions and the Joint Plantation Trade Union Confederation.

“The EFC is confident that all parties will be able to reach a solution to the issue soon,” EFC Director General Kanishka Weerasinghe said.

The tug-of-war over the Rs. 1,000 daily wage hike demand between plantation workers unions and plantation companies has been persisting for the past three months culminating in workers taking to the streets urging authorities to meet their demand.

However, there is a silver lining for the long drawn out battle, as workers have softened their stance and have agreed to reach an agreement on the basic wage of workers. Plantation workers, according to EFC sources, have shown interest in reaching an agreement considering offers by companies. However, the nitty-gritty of the offers are to be made known as no party to the agreement was willing to comment.

Weerasinghe said there is progress in the negotiations, however, both parties will have to make compromises if a viable solution is to be reached.

Ceylon Workers Congress (CWC) Trade Union Advisor Muthusivalingam said the CWC is hopeful of a positive outcome at the next negotiation with a win-win solution to both parties.

“Workers got back to work despite their demand being turned down on several occasions. We have been asking for a reasonable wage increase, considering the high cost of living,” he said.

“We have held discussions with all stakeholders but failed to reach an agreement. However, trade unions are confident that their demand will be met,” Muthusivalingam said.

Employers’ Federation of Ceylon (EFC) Plantation Services Group Chairman Roshan Rajadurai said the demand for a Rs. 1,000 wage increase cannot be met in the backdrop of the dip in global tea prices. RPCs have been insisting on a sustainable wage increase model to sustain the industry.

A spokesman for the Planters’ Association of Ceylon (PA), the umbrella organisation for the 22 Regional Plantation Companies, told the media that the RPCs are unable to meet the expectations of the workers until there is improvement in global tea prices. PA officials said RPCs had offered the best package for workers whose take home salary when added up with all incentives comes up to Rs. 940. Doubling the basic wage from the current Rs. 500 to Rs. 1,000 is unaffordable to RPCs who are facing problems from many fronts, they said. 

http://sundayobserver.lk/2019/01/06/business/plantation-workers%E2%80%99-wage-issue-talks-collective-agreement-resume

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Tax reversal helps Tea Smallholders’ 3Q
2019-01-21

Tea Smallholder Factories PLC has returned to the black during the December quarter (3Q19), as the company saw its earnings for the period rising 47 percent year-on-year (YoY) to Rs.13.7 million, thanks to a Rs.8.9 million tax reversal.

The earnings per share (EPS) for the period improved to 46 cents from 31 cents a year ago.

The revenue for the period fell 27 percent YoY to Rs.481.2 million. The gross profit fell 36 percent YoY to Rs.13 million. The modest growth in production and the higher prices fetched at tea auctions last year by Ceylon tea helped the John Keells Holdings subsidiary to report positive results during the financial year ended in March 31, 2018. 

The fortunes of the company as well as the tea industry change on production, prices and worker wages are not linked 
to productivity.


Meanwhile, for the nine month ended December 31, 2018, the company reported a net loss of Rs.15.1 million against a net profit of Rs.54.5 million a year ago.
The top line fell 21 percent YoY to Rs.157 billion.

The loss per share for the period was 50 cents against an EPS of Rs.1.82.

Tea Smallholder Factories PLC, which makes black tea from leaves bought from small farmers, operates seven factories in Galle, Ratnapura and Ginigathhena and caters to a green leaf supplier base of over 17, 600, which accounts for 5.8 percent of the total tea smallholders registered in Sri Lanka.

John Keells Holdings has 37.63 percent of the issued shares of the company while Akbar brothers as the second largest shareholder has 24.39 percent. Central Finance Company PLC also has 22.85 percent stake in Tea Smallholders PLC.

http://www.dailymirror.lk/article/Tax-reversal-helps-Tea-Smallholders-Q-161344.html

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Lucille Wijewardena reappointed Tea Board Chairman
22.January.2019

Plantation Industries Minister Navin Dissanayake yesterday reappointed leading business figure and industry veteran Lucille Wijewardena as the Chairman of Sri Lanka Tea Board.

The formal letter of appointment was handed over by the Minister at the Ministry in Battaramulla yesterday.
Wijewardena was the Chairman of Sri Lanka Tea Board before the political crisis on 26 October. Previously, he was the Chairman of Softlogic Stockbrokers Ltd., Managing Director of Anuga Holdings Ltd., and Founder Director of Regency Teas Ltd.
He told Daily FT yesterday that one of the priorities would be to get the global promotion campaign expedited. 
“We hope to have the launch in China and Russia and Japan by end April,” he added.

Another priority will be to address the issues of Maximum Residue Levels (MRLs), which has affected markets in Japan and Taiwan. “Deteriorating quality of green leaf is another serious issue affecting quality,” Wijewardene added.
Wijewardena is a Fellow Member of the Institute of Chartered Accountants of Sri Lanka and holds a Master’s Degree in Business Administration (MBA) from the Post Graduate Institute of Management, University of Sri Jayewardenepura.

In his career spanning over 35 years, he has held many senior management positions in areas of finance and general management. He served as the Managing Director of Hayleys Plantations, Talawakelle Plantations Ltd. and Pussellawa Plantations Ltd. He also held the post of Chairman of Mahaweli MarineCement Company Ltd. and Group Chief Accountant of Carson Cumberbatch&Co. Ltd. 
Wijewardena also serves on the Press Complaints Commission of Sri Lanka as a member of the Dispute Resolution Committee.

http://www.ft.lk/front-page/Lucille-Wijewardena-reappointed-Tea-Board-Chairman/44-671393

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Lanka tea production declines in 2018
Friday, January 25Tea industry’s performance in 2018 and prospects for 2019 Z_Bus-pi-LankaTea industry’s performance in 2018 and prospects for 2019 WAAACH5BAEKAAAALAAAAAABAAEAAAICRAEAOw==
Sri Lanka’s tea production in 2018 was 303 Mnkg below the previous year’s quantity of 307 Mnkg.

In 2016 following the El-Nino drought, tea production slumped to 292 Mnkg. Sri Lanka tea production was in the range of 328 to 340 Mnkg during the period 2010 to 2015. In 2018 a combination of man-made and natural forces limited tea production. At a national level ad hoc policy changes on use of agro chemicals, work stoppage due to factors other than wage negotiations; combined with excessive rain in some months to limit production in the year.

Meanwhile world production of tea could well reach 6 bln kg in 2018.



A review of published data of the International Tea Committee (ITC) shows 2017 achieving 5.8 bln against 5.5bln in the year before. These numbers are driven to a great extent by China’s annual growth of 200 Mn kgs achieved each year since 2014. Ten years ago ITC showed world production of 3.9 bln kgs and since then growth of 54% would have been achieved to reach the 6 bln mark for the first time in the history of the global tea trade.

The production of green tea reached 1.77 bln kgs in 2017 an increase of 26% on the 2014 quantity of 1.41 bln kgs. Total tea production figures however, rose 12% from 5.21 bln kg in 2014 to 5.81 bln kg in 2017. Here again it is China who drives the numbers with 68% or 1.77 bln of its total tea production of 2.6 bln produced in 2017, being Green Tea. ITC states that in 2017 35% of all tea produced was green and we believe that it could reach 2 bln kg by 2018.

http://dailynews.lk/2019/01/25/business/175464/lanka-tea-production-declines-2018

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Good news for every one including CSE.
Looks like plantation run will continue next week also.
Many stuck with plantation shares can breath now...... Wink

Tea industry’s performance in 2018 and prospects for 2019 Xxx15

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
2018 National Sales Average of tea down Rs. 36.23

Monday, 28 January 2019 



The National Sales Average (NSA) for tea in 2018 at Colombo auctions has declined by Rs. 36.23 or 6% to Rs. 581.91 per kilo from an all-time high of Rs. 618.14 in 2017. 

Tea industry’s performance in 2018 and prospects for 2019 Image_4ad5168a3bTea industry’s performance in 2018 and prospects for 2019 WAAACH5BAEKAAAALAAAAAABAAEAAAICRAEAOw==

According to Forbes and Walker Tea Brokers, the NSA for High Growns for the period January-December 2018 of Rs. 571.51 was down by Rs. 29.42 per kilo. 

Medium Growns too averaging Rs. 521.86 per kilo was down by Rs. 41.68 in 2018 as against the previous year. Low Growns’ NSA totalling Rs. 600.79 in 2018 was down by Rs. 36.61.

Forbes and Walker said both the December month and 2018 cumulative averages show a greater decrease in USD terms compared to the corresponding period of 2017, with Sri Lankan Rupee depreciating sharply particularly in the last 4 months of 2018. 

In 2018 it was $ 3.59, a decrease of $ 0.52 as against $ 4.11 of 2017

​​​​​​​http://www.ft.lk/front-page/2018-National-Sales-Average-of-tea-down-Rs--36-23/44-671792

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
RPCs and Trade Unions end wages deadlock – agree to Rs. 750 daily wage


January, 28, 2019

Tea industry’s performance in 2018 and prospects for 2019 Plantation-Protest


Productivity and attendance incentives excluded from agreement



The Planters’ Association of Ceylon announced that following negotiations between the Employers’ Federation of Ceylon (EFC) and Trade Unions representing Regional Plantation Company employees, an agreement was reached for a revised collective agreement.

Secretary General of The Planters’ Association, Lalith Obeyesekere said that as per the revised agreement, a daily basic wage of Rs. 700 plus a Price Share Supplement (PSS) of Rs. 50, totalling Rs 750 is the only remuneration a worker would receive based on the plucking norm. Additionally, a worker would be entitled to Rs 40/- for every extra kilo plucked above the norm, the existing rate of which was Rs 28.75. Obeysekere stated that no attendance or productivity incentives have been included within the scope of the revised agreement, effectively capping estate workers’ earnings to Rs. 750 a day plus over-kilos.

Under the previous agreement, workers were provided a basic salary of Rs. 500, in addition to an attendance inventive (AI) of Rs. 60, a Productivity Incentive (PI) of Rs. 140 and a PSS of Rs. 30 amounting to a total daily wage of Rs. 730.

Trade Unions had initially demanded a daily basic wage of Rs. 1,000 with no demands on productivity and attendance incentives. In response the RPCs advanced multiple proposals aimed at providing an option for increased earnings – potentially up to and above Rs. 1,000 – through the addition of productivity linked incentives.

Trade Unions declared strike action in December in response to the industry’s offer of Rs. a 20% increase on the basic wage up to Rs. 600, a 33% increase in the AI up to Rs. 80, and a 20% increase in ETF/EPF up to Rs. 90 in addition to the PI and PSS, leading to a maximum total daily wage of Rs. 940, amounting to an average increase of Rs. 3,375 per month per worker.

Such measures were aimed at raising productivity – an area which Sri Lanka lags behind global competitors. Plucking average in Sri Lanka’s largest competitor nations, Kenya, stood at 60 kgs, South India at 50 kgs and Assam with 36 kgs, where the norms in those nations had been set at 40 kgs, 34 kgs and 24 kgs respectively, thereby yielding much higher productivity levels.

The legal National Minimum Wage remains at Rs. 10,000 per month or Rs. 400 per day for private sector workers. In 2016, RPC workers remained among the highest paid when compared with the Tea Smallholder sector and Garment industry , which both provided a daily wage of Rs. 590, while average daily salaries in the tea export trade and manufacturing industry amounted to Rs. 570 and Rs. 554 respectively.

http://bizenglish.adaderana.lk/rpcs-...50-daily-wage/

ruwan326

ruwan326
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Maxims Holdings factory opens with Rs 2 bn investment
January 30, 2019


The new tea factory of Maxims Holdings Company established at Mulleriyawa, Ambathale area was opened by the President Maithripala Sirisena yesterday.

This modern tea factory with an investment of Rs 2 billion, composed of the cutting age technology, a computerized store house complex and most modern office complex and has the capability of making tea with machines and packing systems and other technological procedures.

A business approved by the Sri Lanka Board of Investment, this tea factory will produce high quality tea, primarily for export. It will also provide packing facilities to small and medium sector tea plantations.

The warehouse is equipped with a modern racking system and will be ventilated by electrical turbine ventilators along with windows. It will be using sky lighting through the roof with energy saving light (CFL and LED),” said Dr. Saman Weerasinghe, Chairman Maxim Holdings Private Limited and former Sri Lankan Ambassador for Russia Dr. Saman Weerasighe.



The facility comprises a fully air conditioned main office covering 11,771 square feet. The office has well laid out dedicated areas. Lobby and Elevator (6 passenger 450kgs) have access to the 1st floor, office for Chairman and Board of Directors, office space for HR and Administration Department, office space for Finance, office space for Marketing, office space for Operations (Import Export), office space for Product Development, office space for Procurements, Tea Tasting Room, Staff Pantry and rest rooms.

The tea processing facility and warehouse processing facility along with the double height warehouse has dedicated areas which include air conditioned office spaces for the Factory Manager, Assistant Factory Manager, and the Tea Bagging Manager, air conditioned Cool Room for store flavours, tea blending area, air conditioned tea bag machine area, Packing area, Lab and Testing area, Machine and Maintenance Room, factory staff pantry and rest rooms, Raw Material Store, Packing Material Store, Finish Goods Store, Loading and Unloading Bay, Generator Room, Fork Lift Charging Area, worker rest rooms and canteen.

​​​​​​​http://dailynews.lk/2019/01/30/business/175947/maxims-holdings-factory-opens-rs-2-bn-investment

charithaa


Senior Equity Analytic
Senior Equity Analytic
wage settlement will be the area to be noted on these plantation counters.

crs

crs
Senior Equity Analytic
Senior Equity Analytic
@charithaa wrote:wage settlement will be the area to be noted on these plantation counters.

වතු කම්කරුවන්ගේ වැටුප් වැඩි කිරීමේ ගැසට් පත්‍රය අත්හිටුවයි

crs

crs
Senior Equity Analytic
Senior Equity Analytic
@crs wrote:
@charithaa wrote:wage settlement will be the area to be noted on these plantation counters.

වතු කම්කරුවන්ගේ වැටුප් වැඩි කිරීමේ ගැසට් පත්‍රය අත්හිටුවයි
තම දෛනික මුලික වැටුප රුපියල් 1000 දක්වා වැඩි කරන ලෙස හෝ  තමන්ට වැඩි කළ රුපියල් 700 මුලික වැටුපට රු140 ප්‍රසාද දිමනාව හෝ එකතු කරන ලෙස බල කරමින් හැටන් කොටගල ප්‍රදේශයේ වතු කම්කරුවන් පිරිසක් අද (03) විරෝධතාවයක් ආරම්භ කර  ඇත.
හැටන් කොටගල ප්‍රදේශයේ වතු කිහිපයකම වතු කම්කරුවන් හැටන් කොටගල ප්‍රදේශිය සභා කාර්යයාලය අසල හැටන් නුවරඑලිය ප්‍රධාන මාර්ගයේ එක් මං තිරුවක් අවහිර කරමින් විරොධතාවයක නියැලුණේය.
විරෝධතාවයේ නියැලි සිටි වතු කම්කරුවන් කියා සිටියේ වතුකරයේ නියෝජනය කර දේශපාඥයින් තමන්ට රු 1000 ක මුලික වැටුපක් ලබාදෙන බවට පොරොන්දු වි රුපියල් 700 ක මුලික වැටුපක් පමණක් ලබා දි එයට අදාල අවබෝධතා ගිවිසුම වතු හාම්පුතුන්ගේ සංගමය සමග අත්සන් කර ඇති බවයි.
රුලියල් 700 මුලික වැටුපට තමන් මෙතෙක් ලබා ගත් රුපියල් 140 ප්‍රසාද දිමනාව අහිමි කර ඇති බවද විරෝධතාවයේ නියැලි සිටි වතු කම්කරුවන් කියා සිටියේය.
අහිමි වු රුපියල් 140 ප්‍රසාද දිමනාව යලි ලබා ගැනිම සඳහා වතු හාම්පුතුන්ගේ සංගමය සමඟ පැවැත්විමට නියිමිත සාකච්ඡාවේදි එම රුපියල් 140 ප්‍රසාද දිමනාව ලබාදිමට රජය කටයුතු කල යුතු බව විරෝධතාවයේ නියැලි සිටි වතු  කම්කරුවන් කියා සිටියේය.
මේ අතර හැටන් මල්ලිඅප්පුව ප්‍රදේශයේද හින්දු පුජකවරයෙක් ඇතුළු වතු කම්කරුවන් පිරිසක් තමන්ට රු 1000 ක මුලික වැටුප තමන්ට අහිමි වු රු 140 ප්‍රසාද දිමනාව ලබාදෙන ලෙස බලකරමින් සත්‍යග්‍රහයක් ආරම්භ කර ඇත.

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