estate worker pay hike

gambler1 · 1 estate worker pay hike Sun Feb 06, 2011 1:24 pm

gambler1

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how effect estate worker pay hike,to the plantation sector .i think it is very badly effect to it rs100 hike wood cost 5b..they asked 295.it wood cost 15b one of top officer said it will wipe out industry,according to botomline artical .expert please comments on that.

tubal · 2 Re: estate worker pay hike Sun Feb 06, 2011 1:51 pm

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gambler1 wrote:how effect estate worker pay hike,to the plantation sector .i think it is very badly effect to it rs100 hike wood cost 5b..they asked 295.it wood cost 15b one of top officer said it will wipe out industry,according to botomline artical .expert please comments on that.

Everytime there is a pay hike they say it would wipe out the industry. But so far it hasn't happened. What really happens is that it causes about 1 year of losses and things are back to normal in two years time - just about time for another pay hike.

This is why the plantation sector is trading at low PE and why some of the current PE ratios are absurd. If you look at the earnings record for any plantation for the last 5 years you will see that their growth just about keeps up with inflation and in some cases, they haven't grown at all.

So to recap - plantations will most definitely survive this wage hike, but it's still silly to pay premium prices for plantation stocks.

Rajitha · 3 Re: estate worker pay hike Sun Feb 06, 2011 2:25 pm

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gambler1 wrote:how effect estate worker pay hike,to the plantation sector .i think it is very badly effect to it rs100 hike wood cost 5b..they asked 295.it wood cost 15b one of top officer said it will wipe out industry,according to botomline artical .expert please comments on that.

Anyone who has done a realistic study would know WTF is going on! The pay hikes will only effect the Tea plantations mostly as thats where they get under paid. Rubber tappers already get absurd amounts and even with it they rubber plantation reap amazing earnings. For the palm oil industry it requers so little workforce. For the amount of money spend the return for the industry is staggering.

In bottom line:- 1. Rubber+ palm oil industries will keep doing amazingly in the coming years.
2. Every single job in Sri lank need pay hikes and not just plantation. ( Even for us we were promised pay hikes now for over 2 months still have not gone in to effect. )
3. Tea is already making loss atm. If pay hike happens the 2 options left for tea estates is either to abandon tea output and go for other sectors as some have done or for government to interfere and pay the wages.

sapumal · 4 Re: estate worker pay hike Sun Feb 06, 2011 3:12 pm

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Anyway it will affect the profit margin ......
But depth will depends on the amount of pay hike .....
doing amazing is a another topic ....

salt · 5 Re: estate worker pay hike Sun Feb 06, 2011 3:51 pm

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[quote="Rajitha"]

gambler1 wrote:
In bottom line:- 1. Rubber+ palm oil industries will keep doing amazingly in the coming years.
2. Every single job in Sri lank need pay hikes and not just plantation. ( Even for us we were promised pay hikes now for over 2 months still have not gone in to effect. )
3. Tea is already making loss atm. If pay hike happens the 2 options left for tea estates is either to abandon tea output and go for other sectors as some have done or for government to interfere and pay the wages.

Agree wit Rajitha. But , point 3, need to carefully looked at. I don't think the situation is that bleak either. However, teal growers will find their life is difficult had that wage hike been granted.

mono · 6 Re: estate worker pay hike Sun Feb 06, 2011 5:11 pm

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Maybe plantation owners can start managing their finances & business properly without having to dump all their troubles on estate workers while driving their prados.

Of course anyone can claim that they need a pay hike, but some people need a pay hike more so than others.

Rajitha · 7 Re: estate worker pay hike Sun Feb 06, 2011 5:23 pm

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mono wrote:Maybe plantation owners can start managing their finances & business properly without having to dump all their troubles on estate workers while driving their prados.

Of course anyone can claim that they need a pay hike, but some people need a pay hike more so than others.

You are spot on man. A good rubber tapper ATM get a paid a bigger monthly salary than a Sri Lankan Engineering Lecturer. There are soo many people who need a pay hike more so than some discussed here!!

mono · 8 Re: estate worker pay hike Sun Feb 06, 2011 5:39 pm

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The bottom line is that the tea plantation workers need a salary increase and a big one, right now what their getting is simply not enough. They live in squalor and things are only going to get worse in the future.

KDS · 9 Re: estate worker pay hike Mon Feb 07, 2011 12:25 am

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Agreed with Mono, but if its a win win situation for both the industry prospects would be much better. I think tea plantations companies can learn some lessons from the apparel industry major companies such as Brandix, Mas, Hirdramani, etc... as they fought even after the GSP loss to secure their sales through promotion an obtaining international standards in value addition, environment protection and labor rights protection. Through this they can command a bit higher prices for their apparel.

Plantations also should try to utilize kind of strategies like this without blaming the cost factor always.