2026-02-19 / Debate (Continued): Judicature (Amendment) Bill and Poisons, Opium and Dangerous Drugs (Amendment) Bill - Committee and Third Reading 2026-02-19
## Summary
Hon. Jeevan Thondaman raised concerns about the plantation sector wage Memorandum of Understanding (MoU), highlighting two principal deficiencies: first, that employers can manipulate the 180-day threshold required for service gratuity eligibility to deny workers their entitlements, making the Rs. 200 compensation inadequate; and second, that the wage increase applies only to approximately 78,000 registered estate workers, excluding casual and smallholding workers who have no legal avenue for redress.
He further noted that Clause 8 of the MoU explicitly states it carries no legal obligations, leaving workers without recourse if employers fail to comply or manipulate task registrations, and called on the Ministry of Labour to take direct responsibility for proper implementation. Thondaman acknowledged the President's intervention in securing a basic wage increase but urged close monitoring of its implementation, noting that the agreed figure had shifted from Rs. 2,138 to Rs. 1,750, and cautioned against mixing trade union and party politics in handling plantation workers' wage issues.
Madam, please give me a few seconds.
On the plantation wage MoU, there are serious issues that must be clarified. Under the present understanding, a worker must work 180 days to qualify for service gratuity. Employers can arbitrarily undercut this by capping workdays so that, if a worker reaches 180 days, he or she is told gratuity will not be paid. If they are told they will still receive gratuity while being kept below that threshold, then what they have already earned may be denied. A mere Rs. 200 cannot compensate for losing gratuity. This is a major concern.
At yesterday’s Committee on Public Finance chaired by Hon. Harsha de Silva, officials stated that the new wage will apply only to the estate sector—about 78,000 registered estate workers. It will not apply to those working for private smallholdings or on a daily-cash basis in private estates or to smallholders’ workers. When these unregistered or casual workers ask about the wage, estate managers tell them to “go talk to the Plantation Ministry.” Wage increases must be extended to all workers, not only to registered ones. The Government must act and clarify this.
Clause 8 of the same MoU states clearly that the document creates no legal obligations. If either party can stop after a month, two months, or six months, workers will be left without legal recourse. If employers increase the kilo task and do not register workers properly, we cannot even seek relief from Labour authorities. Through this MoU, core labour rights are being curtailed. I am not saying the Government took away these rights; the plantation companies have played politics—offering with one hand while creating problems with the other. The Ministry of Labour must take responsibility and address the wage issue.
Let me also state something that the Hon. Minister is aware of. Some Members—whose names I will not mention—when they were in trade unions and we went before the Wages Board seeking a Rs. 1,700 basic wage, voted against Rs. 1,700 and approved only Rs. 1,550. Had Rs. 1,700 been granted then, we would not be in this situation today. You cannot mix union politics and party politics and inflame issues for political gain.
Finally, I thank His Excellency the President for acceding to my request to raise the basic wage. There were shifting positions—at one point Rs. 2,138 was mentioned, which later became Rs. 1,750. Please monitor this closely so that the agreed wage is properly implemented.