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Estd -1854
14 DISTRICTS IN 3 ELEVATIONS
• Low Grown : 0 – 600M AMSL
• Mid Grown : 600M and 1,200M AMSL.
• High Grown: Above 1,200M AMSL.
7 GEOGRAPHICAL INDICATORS
• Nuwara-Eliya
• Uda Pussellawa
• Dimbula
• Uva
• Kandy
• Sabaragamuwa
• Ruhuna
3 PRODUCER SECTORS
1975 Estates nationalized – 1992 Privatized
• State Management – 27 Estates
• Tea Small Holders (TSH) – 400,000 operators
• Regional Plantation Companies (RPCs) – 20 Companies
SRI LANKA TEA INDUSTRY
KANDY
NUWARA-ELIYA
DIMBULA
UVA
UDA PUSSELLAWA
DELICATELY FRAGRANT
EXQUSITELY TANGY
REFRESHING MELLOW
INTENSELY FULL BODIED
EXOTICALLY AROMATIC
• RPCs : Only Stakeholder in Producing, Processing &
Marketing of Tea and other crops.
• 453 Estates & 300 Factories
• Cares for a resident population of 1 Mn (5% of Sri
Lanka)
• Cultivates : 35% of Land
• Produces : 25% of Green Leaf
• Processes : 41% of Made Tea
REGIONAL PLANTATION COMPANIES
 502 Estates – 272,902 Ha. and 389,549 workers.
 51% of Tea land, 35% of Rubber land and 2% of Coconut land under state institutions.(JEDB & SLSPC).
 The Government Treasury had to subsidize Rs. 5 Billion per year. ( @ Current Rate Rs 40 Billion/Year).
 Annual loss Rs. 1.5 Bn per year by 1992. (@ Current Rate Rs. 13 Billion/Year).
 By 1990s, Rs. 4 Billion in debt converted to equity (Plantation Restructuring Unit 1991).
 In spite of above, final debt JEDB/SLSPC was Rs.3.3 Billion (Plantation Restructuring Unit 1991). Total
Rs 7.3 Billion by 1992.
 Monolithic size, Centralization, Government bureaucracy, political agendas and interference.
 Act No. 17 of 1992 established 23 RPCs.
STATE MANAGEMENT – PRE 1992
SOURCE: PIYADIGAMA REPORT 2008
No taxes, Lease Rentals during State Management but Treasury subsidy of Rs 5 Billion per annum.
Labour Wage % GSACOP % Labour WageGSA % Labour Wage
151%
78%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Pre privatization Post privatization
140%
73%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Pre privatization Post privatization
66%
128%
0%
20%
40%
60%
80%
100%
120%
140%
Pre privatization Post privatization
STATE VS PRIVATE MANAGEMENT – PRE & POST 1992
 Total revenue RPCs add to the local economy around Rs. 70 billion only from Tea at estate level.
 A resident plantation community of 1 million is dependent on the RPCs for their sustenance.
 Across the High, Mid and Low elevations, hundreds of villages, local bazaars, small enterprises and ancillary services are
totally dependent on the local plantation economy for their survival.
 Significant contributor to the tourism sector in the Up Country.
 The “Ceylon Tea” Brand – The Ethical Tea, Food Factory , Chemical Free Tea, Cleanest Tea in the World, Ethical
Management, Zero Child Employment, Ozone Friendly Tea, Sustainable Agriculture, Environmental Management, Product
Traceability to Source, Single Origin Estate Marks, Global Certifications as GAP, RA,FSC, ETP, Global Conformances,
Management systems, Services and Facilities provided to employees are mainly associated with the Company sector.
 300 Factories- more than 700 Global & International Certifications.
 Zero use of chemicals - no Paraquat, no Glyphosate used for weed control, conform to Global MRLs.
SOCIO-ECONOMIC & INDUSTRY CONTRIBUTION
ECOSYSTEM CONSERVATION, RESTORATION & SUSTAINABLE FORESTRY
• Conservation areas over 5000 feet, tree species that support biodiversity, bird and animal life
• Contribute towards CO sequestration significantly
• Commercial Forestry - Timber and Fuel Wood
• Social Forestry – Firewood for community usage
• Shade / Wind belt planting- conserve soil moisture, recycle nutrients, addition of OM,
• Afforestation and Reforestation with native/ indigenous species
BIODIVERSITY CONSERVATION
• Conform to Good Agricultural Practices (GAP) and International Standards & Certification on Flora & Fauna
(RA, FSC,GAP,ETP, IUCN, SLBDF)
• Protect the natural & virgin jungle, wild life, flora & fauna
• Facilitate research & studies, training & awareness to stakeholder communities
• Biodiversity assessments with IUCN
• Active member of the BIODIVERSITY Forum SRI LANKA (SLBDF)
ENVIRONMENTAL CONTRIBUTION
BIOLOGICAL SOIL CONSERVATION
• Encouraging soil micro organisms as driving force in nutrient cycles.
• Sloping Agricultural Land Technology (SALT), Mix cropping, Agro Forestry.
• Planting of Vetiver in bank edges and upper banks of drains, ground cover and creeping cover, planting grass in
vacant patches.
• Planting of shade trees to give protection and enrich the soil.
• Establishing wind belts to increase wind resistance, slow down and filter wind velocity.
PHYSICAL SOIL CONSERVATION SYSTEM
• Terraces, Bunds, Channels, Contour and Leader drains.
• Periodic testing of soil for Carbon, pH and nutrient levels.
WATER CONSERVATION
• Protecting all water bodies in the estates – rivers, water falls, streams, ponds etc.
• Water Retention Systems – Rain Water Harvesting.
• Establish Chemical Free Buffer Zones, Periodic Water Testing.
• Protecting drinking water sources, riverine forestry.
SOIL AND WATER CONSERVATION
• Estates strongly committed to reduce GHG emissions, Carbon footprint and slow the pace of global warming and air
pollution : Tea - strong sink of Carbon - 43 tons of CO2 annually.
• Trees planted to reduce Carbon dioxide sequestration and contribute positively to mitigating the adverse impact of
greenhouse gas (GHG) emissions and climate change.
• Plantations compute and monitor direct and indirect GHG emissions.
• Operating all Tea Dryers on renewable energy – firewood/briquettes.
• Invest in energy efficient machinery and equipment.
• Hydro power generation significantly support energy sustainability and achieving carbon neutrality.
• Installation of energy efficient Capacitor banks, lighting and VSDs.
CARBON FOOTPRINT REDUCTION AND ENERGY
CONSERVATION
Estate,
987,074
(5%)
Urban,
3,662,567
(18%)
Rural,
15,833,359
(77%)
Estate Urban Rural
SOURCE: HOUSEHOLD INCOME & EXPENDITURE SURVEY 2012/2013
PLANTATION POPULATION
SOURCE: PLANTATION HUMAN DEVELOPMENT TRUST
0
50
100
150
200
250
300
350
400
450
500
Nuwara -
Eliya
Badulla Kandy Ratnapura Galle Kegalle Total
Total Population ('000) 706.6 811.8 1,369.9 1,082.3 1,058.8 836.6 20,263.7
District as a % of National 3% 4% 7% 5% 5% 4% 100%
Plantation Population ('000) 441.0 173.8 127.6 113.0 64.5 57.8 977.8
% in the District 62% 21% 9% 10% 6% 7%
AREA OF RESIDENCE- PLANTATION POPULATION
SOURCE: MINISTRY OF PLANTATION INDUSTRIES 2006,2011 (141),PHDT
Year 1992 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015
Total
Workers 327,123 280,783 261,417 255,226 249,807 239,902 236,527 233,046 231,845 218,130 217,035 200,439 202,204 196,861 193,412 163,068
Total
Population 838,518 849,646 887,028 895,446 904,882 892,979 917,103 917,103 934,807 939,283 939,283 952,135 970,000 983,433 987,074 987,074
RPC POPULATION Vs WORKFORCE
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
Total Workers Total Population
Total Employees in Sri Lanka 8,424,000
Agriculture Sector Employees 2,400,000 (28.5% of National)
Of this - Own Account & Family Workers 1,233,921- (49 %) + 520,826 (21%)
Total Family & Own Account Workers 1,754,747 (70% of Agricultural Employees)
* No guarantee of regular employment ,wages, statutory dues, benefits, & facilities
Plantations Sector in Sri Lanka 822,412 (34% of Agricultural Employees)
- Tea Small Holders 426,000 (52% of the Total Plantation Workers)
- Rubber Small Holders 200,000 (24% of the Total Plantation Workers)
- Regional Plantation Companies 196,412 (24% of the Total Plantation Workers)
SOURCE: CENTRAL BANK ANNUAL REPORT 2014, HOUSEHOLD INCOME & EXPENDITURE SURVEY 2012/2013
EMPLOYMENT DISTRIBUTION
 RPC plantation workers get fully secured, guaranteed, life time family employment with mandatory minimum 300 days work
per year from 18 years to 60 years.
 Workers are completely free agents and there is no compulsion of any sort for them to report for work although they reside in
the estates and enjoy all the benefits and facilities.
 EPF/ETF, Gratuity, 20 days Paid Holidays, 14 days Paid Sick Leave, Attendance Bonus, Profit Bonus, Profit Share, Maternity
Benefits, 3 Months Paid Maternity Leave, Free Maternal & Child Care on estate itself, Allowances of Milk powder, Flour & Rice,
Free issue of Medicines, Drugs, Vaccinations and Vitamins, Total Custodial Child Care on estate account from 0 – 5 years, All
vaccinations from birth up to 5 years for children on estate itself with paid leave for mothers and Funeral aid, Maintenance of
places of Worship , Elders Home for retirees etc.
 Health, Sanitation, Housing, Water, Social Services, Welfare, Community & Support Services, Facilities and Amenities free of
charge on estate account from birth to death,
 61 Hospitals, 323 Dispensaries, 1474 Child Development Centres caring for 250,000 families with a total population of 1Mn in
453 estates in 13 districts.
SOURCE: SRI LANKA LABOUR FORCE SURVEY – 4TH QUARTER 2014 & CENSUS OF POPULATION AND HOUSING SURVEY - 2012
REGIONAL PLANTATION COMPANY (RPC) EMPLOYMENT
LABOUR (67%)
Wages and Benefits
MATERIAL (15%)
Firewood, Fuel, Fertilizer, Chemicals, Packing Materials
and other physical goods
STAFF & MANAGEMENT (9%)
Estate & Head Office Managers, Executives & Staff
(Field, Factory, Office and Welfare) Salaries, Benefits &
Perquisites
SERVICES (5%)
Medical, Welfare, Insurances, Electricity , Legal and
Taxes
MISCELLANEOUS (4%)
Labour
67%
Material
15%
Services
5%
Staff and
Management
9%
Miscellaneous
4%
BREAKDOWN OF COP - Rs./kg. MADE TEA – (2016)
1) Revenue @ Kg of MT = Rs. 450/-
2) Labour Cost = 80% of Revenue
3) Labour Cost = 67% of COP
4) Labour Cost = Rs.355/- @Kg of MT
LABOUR COST- % OF REVENUE -2016
80%
SOURCE: WAGES & FRINGE BENEFITS SYRVEY , EFC -2014
RPCs = 28% of work force & 25% of Production
TEA-US $ 1.628 Bn
0 100 200 300 400 500 600 700 800
RPCs
TSH
Garment Industry
Tea Export Trade
Manufacture
Industry
RPCs TSH Garment Industry Tea Export TradeManufacture Industry
Rs. 730 590 590 570 554
TSH = 72% of work force & 75% of Production
US $ 4.93 Bn
Tea Wages Board
Collective Agreement
SUB SECTOR DAILY WAGE (Rs/Day) – 2016
Wages & Salaries Other Income(Agri+) Median Income
Estate 17,442 11,211 24,087
Rural 14,162 24,972 29,376
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Rs/Month
ESTATE (5%) Vs RURAL (77%) SECTOR WAGES (Rs/Month)
Source: Household Income & Expenditure Survey – 2012/13
RPC WAGES vs. COMPETING COUNTRIES (SL/Rs) - 2016
Sri Lanka South India Kenya Assam
Labour Wage (Rs./Day/Labour) 730.00 487.20 443.30 342.50
150
250
350
450
550
650
750
850
SLRs./day/Labour
15
20
25
30
35
40
45
50
55
60
65
GreenLeaf/Labour
Kenya South India Assam Sri Lanka
Plucking Average (kilos/worker) 60 50 36 18
Norm 40 34 24 16-18
Green Leaf Cost (Rs/kilo) 11.08 14.33 14.27 40.56
PLUCKING AVERAGE (GL /DAY/WORKER) - 2016
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
Rs
Year 77 78 79 82 83 84 85 86 87 88 89 90 92 93 96 98 00 02 04 06 07 09 11 13 16
Labour Wage
Rs./Day 7.4 7.9 12 14 15 24 25 26 28 37 41 48 62 72 95 115 115 147 180 260 290 405 515 620 730
PRE PRIVATIZATION POST PRIVATIZATION
RPC LABOUR WAGE INCREASE
1990 1992 1993 1996 1998 2000 2002 2004 2006 2007 2009 2011 2014 2016
% 100% 128% 149% 172% 197% 251% 304% 373% 538% 600% 839% 1066% 1284% 1511%
0%
200%
400%
600%
800%
1000%
1200%
1400%
1600%
WAGE INCREASE % – BASE YEAR 1990
SOURCE: MINISTRY OF PLANTATION INDUSTRIES
Year 1990 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Labour Wage(Rs.) 48 62 72 83 83 95 95 115 115 115 121 147 147 180 180 260 290 290 405 405 515 515 620 620 620 730
High Grown GSA 68 64 68 66 70 93 109 127 106 128 135 136 138 172 172 204 252 273 320 338 330 376 403 420 388 450
% 71% 96% 106% 125% 119% 102% 87% 90% 109% 90% 89% 108% 106% 105% 105% 127% 115% 106% 127% 120% 156% 137% 154% 147% 160% 162%
0
100
200
300
400
500
600
700
800
Labour Wage(Rs.) High Grown GSA
Rs.
LABOUR WAGE Vs. HIGH GROWN GSA
Year 1990 1992 1998 2002 2004 2006 2009 2011 2012 2013 2015 2016
Rs / kg COP 59 82 101 124 136 188 334 399 400 440 460 530
COP % (Rs./kg) Vs. Base 100 139 171 211 230 320 568 678 681 748 782 901
Worker wage 48.32 61.84 115 147 205 260 405 515 515 620 620 730
Worker wage % Vs. Base
100% 128% 238% 304% 424% 538% 838% 1066% 1066% 1283% 1283% 1511%
GSA - High 64.05 64.22 106.71 136.65 171.78 204.31 319.73 329.95 375.53 402.98 388.38 449.85
Wage/GSA 75% 96% 108% 108% 119% 127% 127% 156% 137% 154% 160% 162%
0
100
200
300
400
500
600
700
800
RS.
Worker Wage GSA - High
Source: Tea Board Statistical Bulletin – 2011, MPI
WAGES Vs HIGH GROWN GSA
0
5
10
15
20
25
30
Urban Rural Estate National
1995/96 14.0 30.9 38.4 28.8
2002 7.9 24.7 30.0 22.7
2012/2013 2.1 7.6 10.9 6.7
% 15 25 28 24
Source: Household Income & Expenditure Survey – 2012/13
POVERTY HEAD COUNT RATIO -PRE & POST
PRIVATIZATION
CARES FOR A RESIDENT POPULATION OF 1 MILLION
Field Rest Room
Hot Water Bath
Welfare
Waste Mgt
 MATERNAL CARE
• 2.5 Kg. Healthy baby at birth, Mother to gain 750g – 01 Kg weight for every month in the last 5-6
months of her pregnancy.
• Antenatal Registration, Paid leave for Antenatal Clinics, Worming, Vitamins, Triposha, Folic Acid , Iron
Tablets, Tetanus Toxide Vaccine on estate account during working hours.
• MOH & Government Midwife on Estate for Pre-Natal Clinics and paid leave given to workers to attend
these clinics.
• Mid-Wife visits homes. Transport to hospital for safe delivery.
• Pre-pregnancy nutritional status (BMI), Maternal Anemia (Serum Hb), Gestational age estimation
monitoring.
• From BCG to D&T and Polio at 5 years- all vaccinations given on Estate itself
 CUSTODIAL CHILD CARE
• Health care for children by qualified Child Development Officers in 1,544 Child Development Centres
• Nutrition, growth monitoring, age appropriate stimulation
• Pre-school education and psycho -social development
• Parental awareness, free feeding, free mid day meal, milk, school books and bags
BENEFITS TO RPC PLANTATION COMMUNITY
 NATIONAL HEALTH PROGRAMMES
Cancer Programmes, Eye and Dental Camps, TB Control, Rabies Control, Anemia, Mental & Child Health Programmes,
Family Planning, National Nutrition Month, National Health Week, Mobile films shows on health
 ADOLESCENT GIRLS HEALTH & NUTRITION
Training and Awareness on Food Consumption, Habits, Safety, Malnutrition, Personal Hygiene, Reproductive Health,
Anemia, Infectious Diseases, Environmental Hygiene, Awareness of early marriage, Improvement of Self-esteem,
Establishment of Youth Clubs, Empowerment of Women
 TRAINING AND SKILL DEVELOPMENT OF ESTATE HEALTH STAFF
Child Development Centre Staff, Family Welfare Officers, Midwives, Estate Medical Assistants and Registered Medical
Practitioners
 AWARENESS PROGRAMMES ON SOCIAL CONCERNS
Combat Alcoholism, Tobacco and Drug Abuse, Community Participation, Awareness on Child abuse, Domestic
Violence and Sexual Harassment.
 OTHERS
Libraries , Barber Salons, Sewing Centres, Hot water bathing facilities, “E” KIOSKS, Mahila Shakthi Programmes,
Maintain Base Hospital Wards, Insurance Policies for Housing Projects, Water Schemes & Water Committees, National
Identity Card and Birth Certificate Documentation Facilitation.
BENEFITS TO RPC PLANTATION COMMUNITY
INFANT MORTALITY RATE-RPC'S
(PER 1,000 LIVE BIRTHS -1 ST YEAR OF LIFE)
1987 1991 2008 2015 National (2007)
53 29 10.6 5.82 13
NEO NATAL MORTALITY RATE- RPC'S
(PER 1,000 LIVE BIRTHS-1 ST 28 DAYS)
1986 1991 2008
38 20.8 3.2
STILL BIRTH RATE- RPC'S
(PER 1,000 LIVE BIRTHS-28 WEEKS)
1986 1990 2008 2015
65.2 50.7 15 8.9
PRENATAL MORTALITY-RPC'S
(PER 1,000 BIRTH- STILL BIRTH & 7 DAYS AFTER BIRTH)
1987 1990 2008
90.1 67.1 16.9
CRUDE BIRTH RATE-RPC'S 1985 1991 2008 2012 2006
30.6 20.5 15.6 12.0 19.0
INSTITUTIONAL DELIVERIES- RPC'S (‘000) 1985 1990 2008 2012
60.8 78.7 98.5 99.6
MATERNAL DEATH -RPC'S
(1 Mn. POPULATION-42 DAYS AFTER DELIVERY)
1987 1990 2008 2011 2006
44 28 04 2.07 3.9
MATERNAL MORTALITY RATE (MMR)-RPC'S
(PER 10,000 LIVE BIRTHS)
1987 1990 2008 2015 National (2008)
24 18 2.72 3.3 4.43
LOW BIRTH WEIGHT-RPC'S
(2.1/2 kgs AT BIRTH)
1985 1990 2008 2012 2007
42 18.3 15 19.0 16.0
1991- PRE VS POST PRIVATIZATION HEALTH INDICATORS
Source: Plantation Human Development Trust
29
5.82
0
10
20
30
40
50
Pre-privatization Post-privatization
18
3.3
0
10
20
30
40
50
Pre-privatization Post-privatization
INFANT MORTALITY
RATE-RPC'S
MATERNAL MORTALITY
RATE-RPC'S
50.7
8.9
0
10
20
30
40
50
60
Pre-privatization Post-privatization
STILL BIRTH RATE -
RPC'S
20.8
3.2
0
10
20
30
Pre privatization Post privatization
NEO NATAL MORTALITY
RATE-RPC'S
KEY HEALTH INDICATORS
Source: Plantation Human Development Trust
• At the privatization 1992 itself as a precondition, the RPCs absolved of any responsibility related to Worker Housing.
• Worker housing and vegetable gardens to be released “free of any consideration” clause.
• At Government Level – Ministry of Estate Infrastructure from 1992 – Cabinet level portfolio held by Plantation Sector political
party leaders.
• At Institutional Level – Plantation Housing Development Trust (PHDT) – Tripartite – Unions, Government and RPCs.
• At Estate Level - Estate Worker Housing Cooperative Society-(EWHCS).
• 7 perches of land for core house given absolutely free by the RPCs.
• Free Housing Grant up to Rs. 125,000/- (1997) + Technical, Material, Logistical and Managerial input and assistance from PHDT,
RPCs, State and Non State Organizations, NGOs & INGOs.
• Community Centers, roads, water supply and other social amenities provided free to Housing Schemes.
• By 2014,- 28,000 New Houses & 110,000 Upgraded housing- 60% of workers live in upgraded houses.
WORKER HOUSING
SOURCE: MINISTRY OF PLANTATION INDUSTRIES - 2014
REPLANTING EXTENTS RPC TSH
Bearing Extent (Ha) as at 2014 69,739 121,429
VP Extent (Ha) as at 2014 - (53% VP) 36,766 109,780
Replanted Extent (Ha) during 1992 -2014 22,137 28,352
Immature Extent (Ha) as at 2014 2,438 4,781
Total Replanted Extent (Ha) from 1992-2014 24,575 33,133
% Replanted of the Existing VP Hectares 67% 30%
Annual Rate of Replanting from 1992 of VP Extent 2.64 1.95
*1992-JEDB 20% VP & SLSPC 17% VP AT PRIVATIZATION- 53% BY 2014
VP TEA REPLANTING 1992-2014
-
10
20
30
40
50
60
Capital
Expenditure
Dividends Govt Lease
Payments
Income Tax
1993-2012 55.37 6.74 6.48 1.27
Rs.Bn
• In 1990s State subsidy of Rs. 5 Bn per annum + debt of Rs. 7.7 Bn + loss of Rs. 1.5 Bn – NOW ZERO
• Pre Privatization- US$ 275 Mn investment in Plantations (Rs.35 Bn in current terms)
INVESTMENTS BY RPCs (1993-2012)
• Of the District; 62% Plantation Population - 77% of Plantation Households in the Country
Nuwara Eliya
District
Ranked amongst other
25 Districts
Income receivers per House Hold 1.9 2nd
Poverty Head Count (PHC) 6.6 9th
Own account/family workers 28.1% 22nd
Employed persons below Poverty Line 4.6% 6th
Dietary Energy Consumption – Kilo Calories 2,358 1st
Maternal Mortality Ratio (per 10,000 live births) 1.9 2nd
Under weight children 25.5% 13th
Housing units with 2 rooms 33.6% 10th
Drinking water within premises 78.2% 10th
Bathing water sufficiency 90.3% 9th
Exclusive toilets for households 83.1%
No toilet facilities 0.3% 7th
Telephones 83.1%
Radio 73.4%
TV 82.7%
Refrigerators 23.3%
Gas cookers 40.1%
NUWARA ELIYA DISTRICT – QUALITY OF LIFE
Source: Household Income & Expenditure Survey – 2012/13
 Revenue Sharing” Model for the plantation workers to move away from employer dependent to self managed model.
 150 year old traditional model - resident, daily wage based, employer dependent workers who still look up to the estate management to determine
their income earning capacity and potential.
 Change the management dependent, entitlement minded, welfare oriented, low factor productivity, daily wage based system for the sustainability of
the plantation community.
 Workers to be empowered with entrepreneurial skills in an environment where they will have a proprietary interest and an opportunity to
maximize earnings to the limit of their effort and initiative.
 Current thinking is to empower the growers and make them directly responsible for their capacity to earn while the management provides the
suitable environment, technical and managerial inputs.
 The willingness on the part of the workers to increase their productivity where they see an apparent direct gain to themselves have also contributed
to the success.
 The flexibility of their times of work has contributed to the increase in productivity & ability to be an entrepreneur.
 Revenue Sharing” Model has contributed to Increased earnings and giving dignity to the operators ,enhancing their job security and improving the
overall Quality of Life
THE NEW FACE - REVENUE SHARING
 Productivity based rather than Attendance based wages.
 Productivity/Revenue Share based earning model.
 Gain sharing entrepreneurs instead of “Daily Wage” based worker.
 Archaic daily wage based worker to commercial worker.
 Autonomous “Social Business Enterprise” instead of paternalistic & management dependent culture
 Empowered workers instead of dependent workers with an entitlement mindset.
A SUSTAINABLE FUTURE FOR OUR WORKERS
THEN
NOW
THE WORLD’S
FINEST TEA

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New face of Ceylon tea 2017

  • 2. 14 DISTRICTS IN 3 ELEVATIONS • Low Grown : 0 – 600M AMSL • Mid Grown : 600M and 1,200M AMSL. • High Grown: Above 1,200M AMSL. 7 GEOGRAPHICAL INDICATORS • Nuwara-Eliya • Uda Pussellawa • Dimbula • Uva • Kandy • Sabaragamuwa • Ruhuna 3 PRODUCER SECTORS 1975 Estates nationalized – 1992 Privatized • State Management – 27 Estates • Tea Small Holders (TSH) – 400,000 operators • Regional Plantation Companies (RPCs) – 20 Companies SRI LANKA TEA INDUSTRY
  • 3. KANDY NUWARA-ELIYA DIMBULA UVA UDA PUSSELLAWA DELICATELY FRAGRANT EXQUSITELY TANGY REFRESHING MELLOW INTENSELY FULL BODIED EXOTICALLY AROMATIC • RPCs : Only Stakeholder in Producing, Processing & Marketing of Tea and other crops. • 453 Estates & 300 Factories • Cares for a resident population of 1 Mn (5% of Sri Lanka) • Cultivates : 35% of Land • Produces : 25% of Green Leaf • Processes : 41% of Made Tea REGIONAL PLANTATION COMPANIES
  • 4.  502 Estates – 272,902 Ha. and 389,549 workers.  51% of Tea land, 35% of Rubber land and 2% of Coconut land under state institutions.(JEDB & SLSPC).  The Government Treasury had to subsidize Rs. 5 Billion per year. ( @ Current Rate Rs 40 Billion/Year).  Annual loss Rs. 1.5 Bn per year by 1992. (@ Current Rate Rs. 13 Billion/Year).  By 1990s, Rs. 4 Billion in debt converted to equity (Plantation Restructuring Unit 1991).  In spite of above, final debt JEDB/SLSPC was Rs.3.3 Billion (Plantation Restructuring Unit 1991). Total Rs 7.3 Billion by 1992.  Monolithic size, Centralization, Government bureaucracy, political agendas and interference.  Act No. 17 of 1992 established 23 RPCs. STATE MANAGEMENT – PRE 1992 SOURCE: PIYADIGAMA REPORT 2008
  • 5. No taxes, Lease Rentals during State Management but Treasury subsidy of Rs 5 Billion per annum. Labour Wage % GSACOP % Labour WageGSA % Labour Wage 151% 78% 0% 20% 40% 60% 80% 100% 120% 140% 160% Pre privatization Post privatization 140% 73% 0% 20% 40% 60% 80% 100% 120% 140% 160% Pre privatization Post privatization 66% 128% 0% 20% 40% 60% 80% 100% 120% 140% Pre privatization Post privatization STATE VS PRIVATE MANAGEMENT – PRE & POST 1992
  • 6.  Total revenue RPCs add to the local economy around Rs. 70 billion only from Tea at estate level.  A resident plantation community of 1 million is dependent on the RPCs for their sustenance.  Across the High, Mid and Low elevations, hundreds of villages, local bazaars, small enterprises and ancillary services are totally dependent on the local plantation economy for their survival.  Significant contributor to the tourism sector in the Up Country.  The “Ceylon Tea” Brand – The Ethical Tea, Food Factory , Chemical Free Tea, Cleanest Tea in the World, Ethical Management, Zero Child Employment, Ozone Friendly Tea, Sustainable Agriculture, Environmental Management, Product Traceability to Source, Single Origin Estate Marks, Global Certifications as GAP, RA,FSC, ETP, Global Conformances, Management systems, Services and Facilities provided to employees are mainly associated with the Company sector.  300 Factories- more than 700 Global & International Certifications.  Zero use of chemicals - no Paraquat, no Glyphosate used for weed control, conform to Global MRLs. SOCIO-ECONOMIC & INDUSTRY CONTRIBUTION
  • 7. ECOSYSTEM CONSERVATION, RESTORATION & SUSTAINABLE FORESTRY • Conservation areas over 5000 feet, tree species that support biodiversity, bird and animal life • Contribute towards CO sequestration significantly • Commercial Forestry - Timber and Fuel Wood • Social Forestry – Firewood for community usage • Shade / Wind belt planting- conserve soil moisture, recycle nutrients, addition of OM, • Afforestation and Reforestation with native/ indigenous species BIODIVERSITY CONSERVATION • Conform to Good Agricultural Practices (GAP) and International Standards & Certification on Flora & Fauna (RA, FSC,GAP,ETP, IUCN, SLBDF) • Protect the natural & virgin jungle, wild life, flora & fauna • Facilitate research & studies, training & awareness to stakeholder communities • Biodiversity assessments with IUCN • Active member of the BIODIVERSITY Forum SRI LANKA (SLBDF) ENVIRONMENTAL CONTRIBUTION
  • 8. BIOLOGICAL SOIL CONSERVATION • Encouraging soil micro organisms as driving force in nutrient cycles. • Sloping Agricultural Land Technology (SALT), Mix cropping, Agro Forestry. • Planting of Vetiver in bank edges and upper banks of drains, ground cover and creeping cover, planting grass in vacant patches. • Planting of shade trees to give protection and enrich the soil. • Establishing wind belts to increase wind resistance, slow down and filter wind velocity. PHYSICAL SOIL CONSERVATION SYSTEM • Terraces, Bunds, Channels, Contour and Leader drains. • Periodic testing of soil for Carbon, pH and nutrient levels. WATER CONSERVATION • Protecting all water bodies in the estates – rivers, water falls, streams, ponds etc. • Water Retention Systems – Rain Water Harvesting. • Establish Chemical Free Buffer Zones, Periodic Water Testing. • Protecting drinking water sources, riverine forestry. SOIL AND WATER CONSERVATION
  • 9. • Estates strongly committed to reduce GHG emissions, Carbon footprint and slow the pace of global warming and air pollution : Tea - strong sink of Carbon - 43 tons of CO2 annually. • Trees planted to reduce Carbon dioxide sequestration and contribute positively to mitigating the adverse impact of greenhouse gas (GHG) emissions and climate change. • Plantations compute and monitor direct and indirect GHG emissions. • Operating all Tea Dryers on renewable energy – firewood/briquettes. • Invest in energy efficient machinery and equipment. • Hydro power generation significantly support energy sustainability and achieving carbon neutrality. • Installation of energy efficient Capacitor banks, lighting and VSDs. CARBON FOOTPRINT REDUCTION AND ENERGY CONSERVATION
  • 10. Estate, 987,074 (5%) Urban, 3,662,567 (18%) Rural, 15,833,359 (77%) Estate Urban Rural SOURCE: HOUSEHOLD INCOME & EXPENDITURE SURVEY 2012/2013 PLANTATION POPULATION
  • 11. SOURCE: PLANTATION HUMAN DEVELOPMENT TRUST 0 50 100 150 200 250 300 350 400 450 500 Nuwara - Eliya Badulla Kandy Ratnapura Galle Kegalle Total Total Population ('000) 706.6 811.8 1,369.9 1,082.3 1,058.8 836.6 20,263.7 District as a % of National 3% 4% 7% 5% 5% 4% 100% Plantation Population ('000) 441.0 173.8 127.6 113.0 64.5 57.8 977.8 % in the District 62% 21% 9% 10% 6% 7% AREA OF RESIDENCE- PLANTATION POPULATION
  • 12. SOURCE: MINISTRY OF PLANTATION INDUSTRIES 2006,2011 (141),PHDT Year 1992 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2015 Total Workers 327,123 280,783 261,417 255,226 249,807 239,902 236,527 233,046 231,845 218,130 217,035 200,439 202,204 196,861 193,412 163,068 Total Population 838,518 849,646 887,028 895,446 904,882 892,979 917,103 917,103 934,807 939,283 939,283 952,135 970,000 983,433 987,074 987,074 RPC POPULATION Vs WORKFORCE 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Total Workers Total Population
  • 13. Total Employees in Sri Lanka 8,424,000 Agriculture Sector Employees 2,400,000 (28.5% of National) Of this - Own Account & Family Workers 1,233,921- (49 %) + 520,826 (21%) Total Family & Own Account Workers 1,754,747 (70% of Agricultural Employees) * No guarantee of regular employment ,wages, statutory dues, benefits, & facilities Plantations Sector in Sri Lanka 822,412 (34% of Agricultural Employees) - Tea Small Holders 426,000 (52% of the Total Plantation Workers) - Rubber Small Holders 200,000 (24% of the Total Plantation Workers) - Regional Plantation Companies 196,412 (24% of the Total Plantation Workers) SOURCE: CENTRAL BANK ANNUAL REPORT 2014, HOUSEHOLD INCOME & EXPENDITURE SURVEY 2012/2013 EMPLOYMENT DISTRIBUTION
  • 14.  RPC plantation workers get fully secured, guaranteed, life time family employment with mandatory minimum 300 days work per year from 18 years to 60 years.  Workers are completely free agents and there is no compulsion of any sort for them to report for work although they reside in the estates and enjoy all the benefits and facilities.  EPF/ETF, Gratuity, 20 days Paid Holidays, 14 days Paid Sick Leave, Attendance Bonus, Profit Bonus, Profit Share, Maternity Benefits, 3 Months Paid Maternity Leave, Free Maternal & Child Care on estate itself, Allowances of Milk powder, Flour & Rice, Free issue of Medicines, Drugs, Vaccinations and Vitamins, Total Custodial Child Care on estate account from 0 – 5 years, All vaccinations from birth up to 5 years for children on estate itself with paid leave for mothers and Funeral aid, Maintenance of places of Worship , Elders Home for retirees etc.  Health, Sanitation, Housing, Water, Social Services, Welfare, Community & Support Services, Facilities and Amenities free of charge on estate account from birth to death,  61 Hospitals, 323 Dispensaries, 1474 Child Development Centres caring for 250,000 families with a total population of 1Mn in 453 estates in 13 districts. SOURCE: SRI LANKA LABOUR FORCE SURVEY – 4TH QUARTER 2014 & CENSUS OF POPULATION AND HOUSING SURVEY - 2012 REGIONAL PLANTATION COMPANY (RPC) EMPLOYMENT
  • 15. LABOUR (67%) Wages and Benefits MATERIAL (15%) Firewood, Fuel, Fertilizer, Chemicals, Packing Materials and other physical goods STAFF & MANAGEMENT (9%) Estate & Head Office Managers, Executives & Staff (Field, Factory, Office and Welfare) Salaries, Benefits & Perquisites SERVICES (5%) Medical, Welfare, Insurances, Electricity , Legal and Taxes MISCELLANEOUS (4%) Labour 67% Material 15% Services 5% Staff and Management 9% Miscellaneous 4% BREAKDOWN OF COP - Rs./kg. MADE TEA – (2016)
  • 16. 1) Revenue @ Kg of MT = Rs. 450/- 2) Labour Cost = 80% of Revenue 3) Labour Cost = 67% of COP 4) Labour Cost = Rs.355/- @Kg of MT LABOUR COST- % OF REVENUE -2016 80%
  • 17. SOURCE: WAGES & FRINGE BENEFITS SYRVEY , EFC -2014 RPCs = 28% of work force & 25% of Production TEA-US $ 1.628 Bn 0 100 200 300 400 500 600 700 800 RPCs TSH Garment Industry Tea Export Trade Manufacture Industry RPCs TSH Garment Industry Tea Export TradeManufacture Industry Rs. 730 590 590 570 554 TSH = 72% of work force & 75% of Production US $ 4.93 Bn Tea Wages Board Collective Agreement SUB SECTOR DAILY WAGE (Rs/Day) – 2016
  • 18. Wages & Salaries Other Income(Agri+) Median Income Estate 17,442 11,211 24,087 Rural 14,162 24,972 29,376 - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Rs/Month ESTATE (5%) Vs RURAL (77%) SECTOR WAGES (Rs/Month) Source: Household Income & Expenditure Survey – 2012/13
  • 19. RPC WAGES vs. COMPETING COUNTRIES (SL/Rs) - 2016 Sri Lanka South India Kenya Assam Labour Wage (Rs./Day/Labour) 730.00 487.20 443.30 342.50 150 250 350 450 550 650 750 850 SLRs./day/Labour
  • 20. 15 20 25 30 35 40 45 50 55 60 65 GreenLeaf/Labour Kenya South India Assam Sri Lanka Plucking Average (kilos/worker) 60 50 36 18 Norm 40 34 24 16-18 Green Leaf Cost (Rs/kilo) 11.08 14.33 14.27 40.56 PLUCKING AVERAGE (GL /DAY/WORKER) - 2016
  • 21. 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 Rs Year 77 78 79 82 83 84 85 86 87 88 89 90 92 93 96 98 00 02 04 06 07 09 11 13 16 Labour Wage Rs./Day 7.4 7.9 12 14 15 24 25 26 28 37 41 48 62 72 95 115 115 147 180 260 290 405 515 620 730 PRE PRIVATIZATION POST PRIVATIZATION RPC LABOUR WAGE INCREASE
  • 22. 1990 1992 1993 1996 1998 2000 2002 2004 2006 2007 2009 2011 2014 2016 % 100% 128% 149% 172% 197% 251% 304% 373% 538% 600% 839% 1066% 1284% 1511% 0% 200% 400% 600% 800% 1000% 1200% 1400% 1600% WAGE INCREASE % – BASE YEAR 1990
  • 23. SOURCE: MINISTRY OF PLANTATION INDUSTRIES Year 1990 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Labour Wage(Rs.) 48 62 72 83 83 95 95 115 115 115 121 147 147 180 180 260 290 290 405 405 515 515 620 620 620 730 High Grown GSA 68 64 68 66 70 93 109 127 106 128 135 136 138 172 172 204 252 273 320 338 330 376 403 420 388 450 % 71% 96% 106% 125% 119% 102% 87% 90% 109% 90% 89% 108% 106% 105% 105% 127% 115% 106% 127% 120% 156% 137% 154% 147% 160% 162% 0 100 200 300 400 500 600 700 800 Labour Wage(Rs.) High Grown GSA Rs. LABOUR WAGE Vs. HIGH GROWN GSA
  • 24. Year 1990 1992 1998 2002 2004 2006 2009 2011 2012 2013 2015 2016 Rs / kg COP 59 82 101 124 136 188 334 399 400 440 460 530 COP % (Rs./kg) Vs. Base 100 139 171 211 230 320 568 678 681 748 782 901 Worker wage 48.32 61.84 115 147 205 260 405 515 515 620 620 730 Worker wage % Vs. Base 100% 128% 238% 304% 424% 538% 838% 1066% 1066% 1283% 1283% 1511% GSA - High 64.05 64.22 106.71 136.65 171.78 204.31 319.73 329.95 375.53 402.98 388.38 449.85 Wage/GSA 75% 96% 108% 108% 119% 127% 127% 156% 137% 154% 160% 162% 0 100 200 300 400 500 600 700 800 RS. Worker Wage GSA - High Source: Tea Board Statistical Bulletin – 2011, MPI WAGES Vs HIGH GROWN GSA
  • 25. 0 5 10 15 20 25 30 Urban Rural Estate National 1995/96 14.0 30.9 38.4 28.8 2002 7.9 24.7 30.0 22.7 2012/2013 2.1 7.6 10.9 6.7 % 15 25 28 24 Source: Household Income & Expenditure Survey – 2012/13 POVERTY HEAD COUNT RATIO -PRE & POST PRIVATIZATION
  • 26. CARES FOR A RESIDENT POPULATION OF 1 MILLION Field Rest Room Hot Water Bath Welfare Waste Mgt
  • 27.  MATERNAL CARE • 2.5 Kg. Healthy baby at birth, Mother to gain 750g – 01 Kg weight for every month in the last 5-6 months of her pregnancy. • Antenatal Registration, Paid leave for Antenatal Clinics, Worming, Vitamins, Triposha, Folic Acid , Iron Tablets, Tetanus Toxide Vaccine on estate account during working hours. • MOH & Government Midwife on Estate for Pre-Natal Clinics and paid leave given to workers to attend these clinics. • Mid-Wife visits homes. Transport to hospital for safe delivery. • Pre-pregnancy nutritional status (BMI), Maternal Anemia (Serum Hb), Gestational age estimation monitoring. • From BCG to D&T and Polio at 5 years- all vaccinations given on Estate itself  CUSTODIAL CHILD CARE • Health care for children by qualified Child Development Officers in 1,544 Child Development Centres • Nutrition, growth monitoring, age appropriate stimulation • Pre-school education and psycho -social development • Parental awareness, free feeding, free mid day meal, milk, school books and bags BENEFITS TO RPC PLANTATION COMMUNITY
  • 28.  NATIONAL HEALTH PROGRAMMES Cancer Programmes, Eye and Dental Camps, TB Control, Rabies Control, Anemia, Mental & Child Health Programmes, Family Planning, National Nutrition Month, National Health Week, Mobile films shows on health  ADOLESCENT GIRLS HEALTH & NUTRITION Training and Awareness on Food Consumption, Habits, Safety, Malnutrition, Personal Hygiene, Reproductive Health, Anemia, Infectious Diseases, Environmental Hygiene, Awareness of early marriage, Improvement of Self-esteem, Establishment of Youth Clubs, Empowerment of Women  TRAINING AND SKILL DEVELOPMENT OF ESTATE HEALTH STAFF Child Development Centre Staff, Family Welfare Officers, Midwives, Estate Medical Assistants and Registered Medical Practitioners  AWARENESS PROGRAMMES ON SOCIAL CONCERNS Combat Alcoholism, Tobacco and Drug Abuse, Community Participation, Awareness on Child abuse, Domestic Violence and Sexual Harassment.  OTHERS Libraries , Barber Salons, Sewing Centres, Hot water bathing facilities, “E” KIOSKS, Mahila Shakthi Programmes, Maintain Base Hospital Wards, Insurance Policies for Housing Projects, Water Schemes & Water Committees, National Identity Card and Birth Certificate Documentation Facilitation. BENEFITS TO RPC PLANTATION COMMUNITY
  • 29. INFANT MORTALITY RATE-RPC'S (PER 1,000 LIVE BIRTHS -1 ST YEAR OF LIFE) 1987 1991 2008 2015 National (2007) 53 29 10.6 5.82 13 NEO NATAL MORTALITY RATE- RPC'S (PER 1,000 LIVE BIRTHS-1 ST 28 DAYS) 1986 1991 2008 38 20.8 3.2 STILL BIRTH RATE- RPC'S (PER 1,000 LIVE BIRTHS-28 WEEKS) 1986 1990 2008 2015 65.2 50.7 15 8.9 PRENATAL MORTALITY-RPC'S (PER 1,000 BIRTH- STILL BIRTH & 7 DAYS AFTER BIRTH) 1987 1990 2008 90.1 67.1 16.9 CRUDE BIRTH RATE-RPC'S 1985 1991 2008 2012 2006 30.6 20.5 15.6 12.0 19.0 INSTITUTIONAL DELIVERIES- RPC'S (‘000) 1985 1990 2008 2012 60.8 78.7 98.5 99.6 MATERNAL DEATH -RPC'S (1 Mn. POPULATION-42 DAYS AFTER DELIVERY) 1987 1990 2008 2011 2006 44 28 04 2.07 3.9 MATERNAL MORTALITY RATE (MMR)-RPC'S (PER 10,000 LIVE BIRTHS) 1987 1990 2008 2015 National (2008) 24 18 2.72 3.3 4.43 LOW BIRTH WEIGHT-RPC'S (2.1/2 kgs AT BIRTH) 1985 1990 2008 2012 2007 42 18.3 15 19.0 16.0 1991- PRE VS POST PRIVATIZATION HEALTH INDICATORS Source: Plantation Human Development Trust
  • 30. 29 5.82 0 10 20 30 40 50 Pre-privatization Post-privatization 18 3.3 0 10 20 30 40 50 Pre-privatization Post-privatization INFANT MORTALITY RATE-RPC'S MATERNAL MORTALITY RATE-RPC'S 50.7 8.9 0 10 20 30 40 50 60 Pre-privatization Post-privatization STILL BIRTH RATE - RPC'S 20.8 3.2 0 10 20 30 Pre privatization Post privatization NEO NATAL MORTALITY RATE-RPC'S KEY HEALTH INDICATORS Source: Plantation Human Development Trust
  • 31. • At the privatization 1992 itself as a precondition, the RPCs absolved of any responsibility related to Worker Housing. • Worker housing and vegetable gardens to be released “free of any consideration” clause. • At Government Level – Ministry of Estate Infrastructure from 1992 – Cabinet level portfolio held by Plantation Sector political party leaders. • At Institutional Level – Plantation Housing Development Trust (PHDT) – Tripartite – Unions, Government and RPCs. • At Estate Level - Estate Worker Housing Cooperative Society-(EWHCS). • 7 perches of land for core house given absolutely free by the RPCs. • Free Housing Grant up to Rs. 125,000/- (1997) + Technical, Material, Logistical and Managerial input and assistance from PHDT, RPCs, State and Non State Organizations, NGOs & INGOs. • Community Centers, roads, water supply and other social amenities provided free to Housing Schemes. • By 2014,- 28,000 New Houses & 110,000 Upgraded housing- 60% of workers live in upgraded houses. WORKER HOUSING
  • 32. SOURCE: MINISTRY OF PLANTATION INDUSTRIES - 2014 REPLANTING EXTENTS RPC TSH Bearing Extent (Ha) as at 2014 69,739 121,429 VP Extent (Ha) as at 2014 - (53% VP) 36,766 109,780 Replanted Extent (Ha) during 1992 -2014 22,137 28,352 Immature Extent (Ha) as at 2014 2,438 4,781 Total Replanted Extent (Ha) from 1992-2014 24,575 33,133 % Replanted of the Existing VP Hectares 67% 30% Annual Rate of Replanting from 1992 of VP Extent 2.64 1.95 *1992-JEDB 20% VP & SLSPC 17% VP AT PRIVATIZATION- 53% BY 2014 VP TEA REPLANTING 1992-2014
  • 33. - 10 20 30 40 50 60 Capital Expenditure Dividends Govt Lease Payments Income Tax 1993-2012 55.37 6.74 6.48 1.27 Rs.Bn • In 1990s State subsidy of Rs. 5 Bn per annum + debt of Rs. 7.7 Bn + loss of Rs. 1.5 Bn – NOW ZERO • Pre Privatization- US$ 275 Mn investment in Plantations (Rs.35 Bn in current terms) INVESTMENTS BY RPCs (1993-2012)
  • 34. • Of the District; 62% Plantation Population - 77% of Plantation Households in the Country Nuwara Eliya District Ranked amongst other 25 Districts Income receivers per House Hold 1.9 2nd Poverty Head Count (PHC) 6.6 9th Own account/family workers 28.1% 22nd Employed persons below Poverty Line 4.6% 6th Dietary Energy Consumption – Kilo Calories 2,358 1st Maternal Mortality Ratio (per 10,000 live births) 1.9 2nd Under weight children 25.5% 13th Housing units with 2 rooms 33.6% 10th Drinking water within premises 78.2% 10th Bathing water sufficiency 90.3% 9th Exclusive toilets for households 83.1% No toilet facilities 0.3% 7th Telephones 83.1% Radio 73.4% TV 82.7% Refrigerators 23.3% Gas cookers 40.1% NUWARA ELIYA DISTRICT – QUALITY OF LIFE Source: Household Income & Expenditure Survey – 2012/13
  • 35.  Revenue Sharing” Model for the plantation workers to move away from employer dependent to self managed model.  150 year old traditional model - resident, daily wage based, employer dependent workers who still look up to the estate management to determine their income earning capacity and potential.  Change the management dependent, entitlement minded, welfare oriented, low factor productivity, daily wage based system for the sustainability of the plantation community.  Workers to be empowered with entrepreneurial skills in an environment where they will have a proprietary interest and an opportunity to maximize earnings to the limit of their effort and initiative.  Current thinking is to empower the growers and make them directly responsible for their capacity to earn while the management provides the suitable environment, technical and managerial inputs.  The willingness on the part of the workers to increase their productivity where they see an apparent direct gain to themselves have also contributed to the success.  The flexibility of their times of work has contributed to the increase in productivity & ability to be an entrepreneur.  Revenue Sharing” Model has contributed to Increased earnings and giving dignity to the operators ,enhancing their job security and improving the overall Quality of Life THE NEW FACE - REVENUE SHARING
  • 36.  Productivity based rather than Attendance based wages.  Productivity/Revenue Share based earning model.  Gain sharing entrepreneurs instead of “Daily Wage” based worker.  Archaic daily wage based worker to commercial worker.  Autonomous “Social Business Enterprise” instead of paternalistic & management dependent culture  Empowered workers instead of dependent workers with an entitlement mindset. A SUSTAINABLE FUTURE FOR OUR WORKERS