1 The following is a dissertation by Niranjan Wickremasinghe which he submitted in January 2008 as a project report in partial fulfillment of the requirements for his Master of Business Administration degree from Sikkim Manipal University in India. Niranjan had a brief tea planting career from 1993 to 1998 and is now the Managing Director of Medicheks Colombo (Pvt) Ltd, which provides medical investigations for HACCP, ISO and other quality certificate purposes. We are indeed indebted to Niranjan for submitting this work for the benefit of our readers. A Study of Tea Plantation Operational Aspects in Relation to Operational Workforce by Niranjan Christopher Wickremasinghe ACKNOWLEDGEMENT I wish to express sincere thanks and gratitude to my lecturer and supervisor Dr. Lalith Senaweera, Deputy Director General of Sri Lanka Standards Institution and Senior Lecturer ICBT for the guidance, encouragement and the support given to me during the period of the MBA. I extend my sincere thanks to Mr. Chamila Senaratne, Manager – Post Graduate division ICBT and his team, Ms. Kumudu Abeywardene, former
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1
The following is a dissertation by Niranjan Wickremasinghe which he submitted in January 2008 as a project report in partial fulfillment of the requirements for his Master of Business Administration degree from Sikkim Manipal University in India. Niranjan had a brief tea planting career from 1993 to 1998 and is now the Managing
Director of Medicheks Colombo (Pvt) Ltd, which provides medical investigations for HACCP, ISO and other quality certificate purposes. We are indeed indebted to Niranjan for submitting this work for the benefit of our readers.
A Study of Tea Plantation Operational Aspects in
Relation to Operational Workforce
by
Niranjan Christopher Wickremasinghe
ACKNOWLEDGEMENT
I wish to express sincere thanks and gratitude to my lecturer and
supervisor Dr. Lalith Senaweera, Deputy Director General of Sri Lanka Standards
Institution and Senior Lecturer ICBT for the guidance, encouragement and the
support given to me during the period of the MBA.
I extend my sincere thanks to Mr. Chamila Senaratne, Manager – Post
Graduate division ICBT and his team, Ms. Kumudu Abeywardene, former
2
Manager, all my lecturers and resource personnel and batch mates of the MBA
Program 2006/ 2008, who imparted their knowledge and experience and
encouraged me towards obtaining a MBA.
A special note of gratitude to Mr. Chris Gunaratne, ex-Group General
Manager Loinorn Estate/Senior Planter Bogawantalawa Plantations, Mr. T.T.
Christy, Operations Director/Senior Planter Agalawatte Plantations, Mr. Asanka
De Tissera, Manager Laxapana Estate, Assistant Managers, staff and all at
Laxapana Estate, for their co-operation and all the support extended to obtain
main research materials, Mr. Nishantha Premaratne, Manager Mahakoodugala
Estate, Mr. Kosala Wijesekera, Manager Wattegoda Estate, Mr. Sanjaya
Dissanayake, Manager St.Clair’s Estate, Mr. Saman Rajasinghe, ex-
Superintendent and present and past Superintendents and senior executives of the
plantations, field officers, members of the staff, Union Leaders and Labourers of
the above estates for providing me with a wealth of knowledge and information.
Finally I must thank my wife Cynthica, a critical admirer of my studies
and for always being behind me, encouraging and giving me her fullest support to
obtain the MBA, and my two little sons for sacrificing their time and bearing with
me, all my friends and colleagues who helped and encouraged me by extending
their guidance, support, suggestions and criticisms.
Without the help and support of them all, my hope of completing the MBA would
only have been a dream.
3
ABSTRACT
The objective of this study is to assess the impact of the Tea Plantation
operational aspects in relation to Operational Workforce.
Today, plantations face many challenges including a massive problem of shortage
of operational workforce in order to carry out day to day operations, even though
most of the operational work in estates requires semi-skilled workers.
By this empirical study I am going to highlight the importance of employing the
required workforce in order to maximize the yield, while harvesting good
standard tea leaves to produce the best quality teas. This will enable the
plantations to make good teas and gain the maximum profits, while following the
best agricultural practices in the long term.
For my comprehensive study on operational aspects in relation to the operational
workforce, I was with the superintendent stationed at Laxapana Estate, Maskeliya
for a period of five days, meeting and interviewing various personnel and going
through the estate books of labour statistics, information and data.
In addition, I visited three other estates and discussed the operational workforce
related problems with the Superintendents of those estates. In order to fine tune
the findings, I got expert advice and information from two senior planters.
The study’s findings enables the estate management to identify the main reasons
for the shortage of workers in estates, how important the HR functions are, ways
and means to follow the HR practices and arrest such problems and the best
adoption of recommendations. This would enable the estates to function smoothly
and in a more economical manner, while following the best agricultural practices.
4
TABLE OF CONTENTS
Page No
Acknowledgement ………………………………………… 1
Abstract ………………………………………... 3
Table of contents ………………………………………... 4
(A) Executive summary
i) Introduction ………………………………... 7
ii) Aims and Objectives………………………….. 8
iii) Methodology ………………………………... 9
iv) Analysis ……………………………………… 10
v) Conclusion …………………………………… 11
vi) Recommendations …………………………… 11
(B) Chapter 01
An overview of the Organisation
1.1 Introduction ………………………………… 13
1.2 History ………………………………… 15
1.3 Special Features ………………………………. 17
5
(C) Chapter 02
Project Overview
2.1 Introduction …………………………………… 22
2.2 Aims and Objectives …………………………… 23
2.3 Literature Review ………………………………. 23
2.3.1 HR Management ………………………… 24
2.3.2 HR Planning …………………………… 28
2.3.3 Motivation ……………………………… 33
2.3.4 Interview ………………………………… 46
2.3.5 Communication …………………………. 50
2.3.6 Management by Objective ……………… 54
2.3.7 Training and Development ……………... 54
2.3.8 Welfare Activities ……………………… 57
2.3.9 Job Satisfaction ………………………… 58
2.3.10 Incentives and Rewards ………………… 63
2.3.11 Performance Appraisal …………………. 73
2.3.12 Trade Unions …………………………... 82
2.3.13 Industrial Relations ……………………... 84
2.4 Problem Analysis ………………………………. 90
2.4.1 Quit …………………………………. 90
2.4.2 Poor Turnover …………………………... 92
2.4.3 Lack of Motivation ……………………… 93
2.4.4 Union Involvement ……………………… 93
2.4.5 Training and Development ……………… 94
2.5 Methodology ……………………………………. 95
2.6 Analysis ………………………………………... 96
2.7 Conclusion ……………………………………… 98
6
2.8 Recommendation …………………………………. 99
2.8.1 Improve Welfare Activities ………………. 99
2.8.2 Training and Development ……………….. 104
2.8.3 Mechanisation of Operations …………….. 108
2.8.4 Outside Workers ………………………….. 109
(D) Chapter 03
Appendix 1 …………………………………………….. 112
Tea
Appendix 2 …………………………………………….. 113
Worker related
List of References ……………………………………..…. 123
Bibliography …………………………………………….. 130
List of Abbreviations …………………………………..…. 132
7
(A) EXECUTIVE SUMMARY
i) Introduction
History
Tea is a perennial plant, belonging to the species Camellia sinensis or Camellia
thea and it is consumed as a beverage after brewing. Tea originated from China,
and is mentioned in a Chinese dictionary of 350 BC. According to the Chinese
writer Cha Pu, the practice of tea drinking began in the 6th Century AD and was
gradually introduced to Japan in 1000 AD. Tea was considered as a luxury
beverage used in ceremonies by the Emperors and the rich society of eastern
countries. By the middle of the 17th Century tea invaded Europe. The word tea is
derived from the Portuguese word ‘Tcha’, and Portugal claims to be the first to
introduce tea to Europe. Tea became popular in England in 1680.
By 1834 the British started cultivating tea in their own colony of India by getting
down plants, experts and labour from China. Today tea is considered as one of the
healthiest natural beverages and a stimulant fit to be consumed by people of any
age group.
The commercial planting of tea in Sri Lanka was introduced by a Scotsman,
James Taylor in 1867, on 19 acres of land on Loolecondera Estate, Hewaheta.
This was carried out with the idea of testing tea as a possible alternative crop for
coffee which was facing a leaf rust disease at that time. The first consignment of
tea was exported in 1872 and the production of tea topped the 1 million pound
(454,000 kg) mark by 1884.
8
In Sri Lanka tea growing areas are divided into 3 main categories according to
elevation – they are High grown (above 1,220m), Mid grown (610m to 1,220m)
and Low grown (below 610m) areas situated at an elevation from mean sea level.
By the turn of the 19th Century, over 120,000ha of tea had been planted which
increased to 238,000ha by 1965. For the year 2006, total tea production was
310.8 million kg on 221,969ha of tea plantations. For decades, tea has been the
main agricultural export of Sri Lanka.
(Source: Sri Lanka Tea Board - Statistical Bulletin 2006)
In the year 1992, 460 State owned plantations were privatized and divided among
23 plantation companies. Since then the main objective of plantation companies
were to follow agricultural practices in order to maximize the profits.
Being the main agricultural export for 141 years, tea has contributed significantly
towards the economic and cultural development in Sri Lanka. It is an industry of
its own with a unique culture deeply rooted in our history. Hence it is the duty and
responsibility of the State and the plantation sector to take the industry forward
for the benefit of next generations.
ii) Aims and Objectives
The main objective of this study is to find out the reasons for the workforce
shortage and its effect on the tea plantations and to expose the causes for the
shortage and measures to prevent such situations.
Tea is Sri Lanka’s largest agricultural export crop accounting for almost 18% of
the entire export income. Labour intensive tea plantations are also the country’s
9
largest employer occupying about 80% of the total workforce in the entire
plantation sector in Sri Lanka.
Operational Workforce shortage is the main cause for less production and poor
quality in tea. The quality in tea gives the highest demand and best price for
production (NSA). According to the Sri Lanka Tea Board report the total tea
export in the year 2006 was 315mn kg (without re-exports) with foreign revenues
topping Rs.86,337mn (ITC report in the year 2006). This was further increased in
2007 to reach US$ 1 billion (Rs.1,000mn) recording the highest earnings in the
history of the tea industry. Sri Lanka is the world’s leading tea exporter in the
world market with the well established brand name “Ceylon Tea” with lion logo,
followed by Kenya 314mn kg, China 285mn kg and India 204mn kg.
Therefore it is very important to look after tea plantations in a more lucrative
manner, giving more attention for its operations and smooth running of the
plantations. This will enable the tea plantation to enhance the quality tea that
would give us the edge over competitors in the world market. Sri Lanka is known
to the world because of its reputation for quality tea.
By this study, I have tried my level best to relate the operational aspects with
operational workforce, as the workforce involvement and their effect is very much
higher in the TEA PLANTATION in comparison to other industries.
(Source: Sri Lanka Tea Board Annual Report 2006)
iii) Methodology
For this, I have mainly used the theoretical knowledge obtained by following the
MBA course, referred books, magazines, publications, reports and other
literatures on tea plantations, interviewed estate management, staff and workers in
10
order to analyze the practical problems faced by the operational workforce in the
estates. This analysis has to be reviewed by the top management of the respective
estates, by uplifting the living standards, welfare activities, motivating, training
and development and better communication with the workers. It could minimize
the out flow of estate workers from the plantations and reduce the poor out turn of
OWF.
This study was done at Laxapana Estate, Maskeliya, which was recognized as one
of the best tea estates in Sri Lanka and the most profitable property in the region
from year 2005 to date with the highest NSA. Another reason to select this
property is that, it follows all the agricultural practices and also obtained all the
quality standard certifications required by the international tea buyers.
iv) Analysis
Here, I have identified the highest workforce intensive operations in an estate, and
how the shortage of workforce effects the operations. This will affect the
production/quantity (Yield), price/quality (NSA) and the profitability of the
property.
The main field operations in a tea plantation are harvesting (plucking), applying
fertilizer (manuring), weeding, chemical spraying, pruning, and planting.
Out of the above operations, harvesting is considered as a day today operation,
and needs more than 60% of the workforce. In the tea industry, tea leaves are
harvested regularly with no resting, it is the only revenue generating operation in
a tea plantation. The next are applying fertilizer and weeding generally at monthly
intervals. Others operations such as pruning, planting etc. are considered as
11
occasional. All these operations are considered as expenditure items in the estate
books of accounts.
v) Conclusion
In this study, the main observation is that the management does not practice
modern management methods and theories in this century old tea industry in Sri
Lanka. They still follow colonial, out dated ways and means of managing the
properties.
Here, I have mentioned the methods for uplifting the living and social standards,
finding solutions for the problems faced by the workforce, motivation methods
and introduction of modern workforce management theories to estates. By
motivation we could improve the attendance for work regularly and to perform
better by giving a higher output tea plantation targets.
It is mainly, by way of managing the OWF effectively and efficiently, identifying
and utilizing the workforce in the most viable manner and attending to their needs
and wants in a human manner, that you could find solutions for the shortage of
workers and the OWF related problems.
vi) Recommendations
The top management has to play a key role by introducing new management
styles to the estate workforce, management should identify and offer them better
living and social conditions, status and recognition. Introduction of new incentive
schemes and methods to motivate the workforce is also necessary. It is vital to
follow new agricultural techniques, methodologies, equipment and technology in
the plantations.
12
It is also important to pay more attention to the welfare and social activities of the
entire OWF. By doing something extra, the management could get the co-
operation and better recognition from the workers. The support and co-operation
of the workforce is essential to run the property in a smooth and profitable
manner.
Getting away from traditional ways of managing plantations, treating the
workforce well, giving them due respect and dignity, education, awareness and
considering them as an integral part of the plantations, are the only ways that the
management could achieve their objectives. This would be a decisive factor in the
survival of the Tea Industry.
13
(B) Chapter 01
AN OVERVIEW OF THE ORGANISATION
1.1 Introduction
Laxapana Estate is situated at Del House, Maskeliya in the Central Province of Sri
Lanka. It is at the foot of the sacred mountain Adams Peak, or better known as Sri
Pada which is believed to have the footprint of Lord Buddha. Laxapana Estate is
located at a distance of about 10km from the closest town Maskeliya, 140km
away from Colombo.
This plantation is at an elevation of over 1,520 meters above mean sea level,
which produces rich, high quality, high grown teas with a unique character.
The present Manager (Superintendent) who is in charge of the Laxapana Estate is
Mr. Asanka de Tissera, who has over 20 years experience in managing estates as a
Senior Manager.
After the privatization of the SPC and JEDB Plantations in 1992, the management
was taken over by 23 management companies with each getting an average of 22
estates, initially for a period of 5 years, which was later increased to 50 years.
With this privatization, most of the estates in the Makeliya region including
Laxapana Estate were grouped as Maskeliya Plantations Ltd, which is currently
managed by the Richard Peiris Group of companies.
14
Laxapana Estate has a total extent of 737.05ha of land, of which 526.70ha are
under cultivation, out of which 397.30ha are in bearing. This estate is divided to 5
sub-sections called Divisions. Each division consists of many Fields. For each
division there is a field officer and assistants who serve as members of the staff,
who are responsible for the agricultural and human aspects of the division.
‘Kanganies’ are from the labour population and lead a set of workers who are
called a gang. Each division is under the supervision and control of an Assistant
Superintendent (SD) who is also responsible for all the functions and operations
in that division.
Laxapana has 1236 registered OWF, 59 staff members, and 3 senior executives
(two assistant superintendents and a factory manager) in the top management to
assist the Superintendent (PD) who is overall in charge of all the agricultural and
management aspects in the estate including the property and its people. Property
includes the plantations, trees, bushes, plants and nurseries, land and all other
natural resources including forestry, water resources, factories, buildings, workers
houses and sheds, all other movable and immovable assets and all stocks within
the estate boundary. In short the Superintendent is the caretaker of an estate, who
is responsible for all the operations, functions and the welfare of the workforce in
the estate.
After privatization the companies have added another responsibility to the
Superintendents to maximise profits from the estates following the accepted
agricultural practices.
(Source: Laxapana Estate Record Book and Estimate Documents)
15
1.2 History
After the introduction of tea to Sri Lanka in 1867, it was found that native
community lacked the knowledge and experience of handling large plantations.
Therefore as an alternative, planters got down freely available cheap worker
migrants from South India. By year 1900 there were 300,000 Indian and Ceylon
Tamils and 50,000 Sinhalese to cover an area of 364,000 acres (147,250ha) of tea.
Until independence in 1948, entry for workers from India to Sri Lanka was open
and free.
By the year 1960 there were 197,181ha of tea with an approximate workforce of
500,000. In the 1970s there were 242,000ha of tea land and the workforce
comprised about 450,000 Indians and 100,000 Sri Lankans. During the period
1970 - 1975 about 200,000 Indian workers were sent back on the agreement with
India (Prime Ministers: Sirima/Shasthri pact). The balance, about 250,000 Indians
obtained citizenship in Sri Lanka.
By 1980, there were 244,000ha tea and the workforce was over 400,000. This was
an excess (surplus) situation as the yields and productions were low.
After privatization in 1992, the tea grown area came down to 187,000ha, due to
diversification of the low productivity areas by the management companies.
Those low yielding weak areas were used for timber wood plantations like
Eucalyptus S.P., and other cultivations like vegetables, fruits, and flowers etc.,
which were more profitable than growing tea in unsuitable soil conditions. Some
plantations have used these diversified areas for holiday seekers and tourism.
Tourism has become a good source of income for a lot of tea plantations.
16
With the introduction of high yielding VP cloned teas, the harvest and yields have
improved drastically, and as a result estates felt the need of more OWF.
The operations workforce situation in plantations has gone from one of surplus to
deficit recently, and it will be worse in the years to come. During the period 1980-
1996, the OWF in the estate sector declined by an astounding 30% to 280,500 in
1996. After the privatization of management in 1992, the operational staff force
further declined by 18%, and currently there is an average drop of 5% every year.
Many leave estates for other employment, out of which foreign employment is
significant. The average number of workers per estate is about 550 at present as it
has to be about 655 per estate. This low OWF situation tends to be particularly
pronounced in estates located close to urban centers like Nuwara Eliya, Kandy,
Badulla, Bandarawela and Ratnapura towns.
According to the Sri Lanka Tea Board statistics (Year 2006) the current registered
tea area in Sri Lanka is 221,969ha and production is about 310mn kg of made tea,
and available workforce for tea estates is at about 250,000. These statistics show
a considerable short fall of workforce.
With the continuous increase of production and the yields in the estates, the short
fall of workforce has become critical and creates an unhealthy situation in the
operations of tea plantations.
(Sources: Sri Lanka Tea Board Statistical Bulletin 2006, Central Bank report
2007, NIPM Referrals Handbook on Tea, Tea Planting in Ceylon)
17
1.3 Special Features
Laxapana teas have been famous for quality, and always have a high demand by
the highest volume buyer in the world tea market Lipton’s and Brook Bond
companies, whose main offices are located in London, United Kingdom. The
Laxapana mark has topped the Colombo tea auction in main grades such as BOP,
BOPF, and Dust 1, on many occasions mainly due to high quality production
demanded by the reputed buyers. Therefore it is very important to pay more
attention for OWF related matters as OWF is the secret behind the best tea.
The salient feature of this estate is that it has topped the market getting better
prices whilst achieving the highest production. In tea terms, this is known as the
highest NSA and highest yields.
To make the best quality teas it is necessary to harvest green tea leaves from tea
bushes on time before it gets mature. The most suitable tea leaves for plucking are
the two leaves and a bud or tender young leaves. For this operation they have to
follow proper plucking rounds, which is to continue harvesting from each bush
without missing any at regular intervals.
This is the highest labour intensive operation on a tea plantation, and is mainly
done by female workers. Females account for 55-60% of the average workforce in
an estate. Tea harvesters who collect green tea leaves from the bushes are called
“pluckers”. The harvesting (plucking) operation is a selective process. It was
identified decades ago by the management that females are the best people for
these selective processes, as they take good care of the tea bush and the harvested
leaves. In this process the output of tea plantation females are always higher than
their male counterparts. Here, pluckers have to manually break the tea stem from
the bush with two leaves and a bud for best quality teas and transport it up to the
18
processing area without damaging the harvest. Damaged, bruised tea leaves
destroy the quality of tea and gives a bad end product and also causes heavy
wastage and loss.
The harvesting of green leaves on time results in higher productivity and yields. If
the plucking rounds are not maintained properly, this increases the growth and
height of the tea bush, making harvesting a difficult task. In this situation it is
recommended to prune the bush. Generally, a well maintained tea bush in high
grown areas are pruned once in 4 years when the bush is about 4 feet tall (the
average plucker is about 5 feet tall).
For harvesting a high yielding VP field, it requires about 15-20 workers/labourers
per hectare (LPH) per plucking round and about 4-6 rounds per month. For a
seedling field, the requirement of workers for harvesting is between 10 - 15
workers per hectare per round, and average 3-4 rounds per month. Generally men
are used in estates to harvest over grown (over 4 feet) high tea bushes and in
situations where there is a desperate need or shortfall of females to maintain
proper plucking rounds. This happens mainly after festive holiday periods like
New Year, Deepavali festival, Kovil festivals (Thiruval), Thai Pongal and during
worker strike or go-slow situations which are very common in tea plantations.
Generally there are about 40-60 workers under a supervisor and a Kangani in a
plucking gang, where they are responsible for harvesting the crop in one section
of a division. In an average size division (about 100ha) there can be up to 3
female plucking gangs, and in special times 1 men plucking gang in a division.
Generally the average harvest per day by a plucker is 1.75 times the LPH. For
example if the LPH in a field is 10, then the pluckers expected daily average
harvest is 17.5kg of green leaf.
19
On Laxapana estate, the given norm for harvesting is 18kg per day and for excess
above the norm an incentive is paid additionally per kilo of green leaves.
The second most important labour intensive operation in an estate is weeding.
This could be done in many ways. The most environmental friendly way is to take
out unwanted plants manually from the site. This is also an economical method as
the removed weeds could be used as manure after turning them to compost. Men
are used to clean the property, especially to take out perennial flowery, hard
weeds and creepers. Another advantage of using manual labour is that they could
remove only the unwanted plants/weeds leaving the useful plants in the site, it is
also called selective weeding. Manual weeding is considered as the best method
of weeding, especially where the immature tea plants are considered. This method
of weeding is mostly used during the time period when the harvest is less, to give
more work to the labourers. In an estate generally 15-20 LPH is used to clean an
average weedy field, and this operation is done 1-2 times per year for a field and
followed up by 2-3 times a year with spot manual weeding using 5-8 LPH.
Chemical weeding is the most common and convenient way of eradicating weeds
from the estate. According to the growth and variety of weeds, selected chemical
or mixture of chemicals are used. Application of weedicide is done by sprayers at
the rate of 3-4 LPH, A spraying gang has 10-14 workers under a kangani.
Generally chemical weeding is done for a field 1-2 times a year followed by spot
spraying at the rate 1-2 LPH, 2-3 times a year. This method could be harmful if
the protective steps are not followed. There is a high possibility of soil and water
resources getting toxic due to excessive use of chemicals.
Applying fertilizer or so called manuring is vital to get a better harvest. Manuring,
replaces the different chemical components back to the tea bush. There are macro
and micro elements of fertilizer. Nitrogen (N), Phosphorous (P), Potassium (K),
20
are considered as main macro components and Magnesium (Mg) , Calcium (Ca),
Zink (Zn) , Boron (Br), Ferrous (Fe), are micro components used in very small
quantities.
Fertilizer could be applied manually, distributing the required chemicals directly
to the roots of the tea bush. For this operation the required LPH is 3-5 and carried
out with the onset of rain. At Laxapana, application of fertilizer is done 3-4 times
per year for VP teas and 2-3 applications for seedling tea. There are instances
where some nutrients are applied as a liquid spray. This is called folio spray and
it is done at the rate of 2-3 LPH. Here, chemicals are sprayed on to the tender
leaves of the tea bush (flush), for VP fields there will be 3-4 applications per year
and for seedling 2-3 times per year.
The variety of fertilizer and the frequency of applications are decided based on
the yield and the soil conditions.
Other than the main operations mentioned above, OWF is required for pruning of
tea bushes. Pruning is the process of artificial removal of leaf bearing branches of
the tea plant. It may involve all or more branches being removed from a tea bush
at a height of 18-24 inches from the ground. In this estate the pruning average
height is about 20-22, inches according to the slope of the field.
Pruning needs workers at the rate of 45-55 LPH, at the intervals of 4 years on VP
teas and 4-5 years on seedling tea fields.
Generally, 25-35 % (1/3), of the total matured tea area of an estate is pruned per
year, followed with many other operations related with pruning, such as cutting
drains, applying dolomite, planting and re-supply of shade and other trees,
cleaning the moss and ferns on tea bushes, applying lime etc.
21
New clearing operational work like preparing fields, holing, planting,
transportation, etc. also requires a large number of workers. New clearing requires
12,000-14,000 VP tea plants per ha, with re-supply.
Laxapana Estate generally requires 40-50 labourers per day for the manufacturing
process of tea at the factory. The worker requirement depends on the capacity and
the harvest (estimate: 1 worker for 55kg of made tea). An average of 12,000kg,
green leaf is used for daily production of made tea at an out turn of 22.5% (E.g.
12,000 kg green leaves gives 2,700 kg made (black) tea).
(Source: Handbook on Tea, Plantation Management in the New Millennium,
Estate Estimates and Books of Accounts)
22
(C) Chapter 02
PROJECT OVERVIEW
2.1 Introduction
Here, we are analyzing the Operational Workforce related problems. According to
my study, the problems and challenges faced by the OWF is the main reason for
the shortage of labour force on plantations. The present generation in plantations
is not willing to stay on in estates like their parents and grandparents. A few
decades back the plantation workers did not have a life beyond the estates. The
present generation dislikes continuing the plantation work done by their ancestors.
The main reasons identified by me, behind the new generation’s dislike on
working and living on plantations are:
a) Lack of motivation and appreciation for estate work
b) Not recognized by the communities and the State leaders
c) Poor living and sanitary conditions in estates
d) Poor health and education facilities
e) Higher cost of living
f) Less exposure to the outer world
g) Less social welfare and leisure activities
h) Bad influence by unions and trade union activities
HR Planning would help the top management of the estate to find remedies for the
shortage OWF requirements.
23
2.2 Aims and Objectives
With the discussions had with the OWF, staff, and management of the estates, I
have tried my best to analyze the above situations to find solutions to the best of
my knowledge. My main intention is to reduce the out flow of OWF from estates
and to motivate them to attend work regularly, by providing best alternative
solutions for their problems, introduce the ways and means of training and
development to educate them, by motivating, rewarding and appreciating the
service rendered by the OWF in estates to give proper recognition, and to improve
on welfare activities. This will enable them to feel their importance within the
industry as well as to the entire country.
The work done by the OWF has to be enjoyed by the workers. It is important to
provide good working conditions in order to achieve better results from workers.
By introducing better welfare systems, protective and safer equipments, methods
and technologies and other facilities, the barriers of communication between the
Management and Workforce can be gapped. This relationship building process
will have long term benefits to the estates.
2.3 Literature review
I have referred to and taken materials and notes from various books, magazines,
publications and periodicals etc., on HR Management and Plantation
Management. By reviewing and analyzing these, I have tried my level best to find
the relationship with OWF with regards to the operations on plantations, the tasks
(norms) performed by them, and the actual requirement of OWF for future
operations.
24
As in any other organization in plantations too, the following functions are
performed by a manager.
a) Planning
b) Organising
c) Staffing
d) Directing
e) Motivating
f) Controlling
g) Co-ordinating
h) Communicating
Out of the above, selected functions which, I feel important for tea plantations are
highlighted.
In the 1950s the popular management abracadabra used to be POSDCORB known
as the ‘principles of management’. The knowledge about the management and the
organisation was usually classified under the broad heading of planning,
organizing, staffing, directing, controlling/co-ordinating, reporting and budgeting.
2.3.1 HR Management
Like in other industries, managing estates and its people has to be done in a
scientific manner. This scientific management method was first introduced by
Frederick W. Taylor who is known as the father of scientific management. Taylor
summed up his approach as:
Science, not rule of thumb
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Harmony, not discoed
Co-operation, not individualism
Maximum output, in place of restricted output
The development of each man to his greatest efficiency and prosperity
According to Taylor “Planning should be the result of co-operation between the
management and workers and that provision should exist for compensating the
personnel with financial incentives”.
As part of scientific management methods Gantt charts, Tasks and bonus wage
systems were introduced. (Henry Gantt, Frank and Lilian Gilberth)
These systems are widely used in estate management.
To develop a spirit of co-operation between workers and the management welfare
systems were introduced (Robert Owens). This was called the introduction of
personnel management systems to the industries. According to Owens the returns
from investing on HR would be much higher than investing in machinery and
equipment.
Division of labour was introduced as a measure to reduce waste and gain
efficiency stemming from familiarization with special work and use of tools. This
has stimulated workers inventions pertaining to tools and methods (Charles
Babbage).
The analysis of jobs in terms of workers physical, mental and emotional
requirements and development of testing devices for selecting work were
introduced to the industries (Hugo Munsterberg).
26
In modern HR management priority is given for Human relations movements.
This movement is characterized by its focus on group behavior and workers
feelings as they relate to productivity and morale (Elton Mayo).
Elton Mayo and others of the Harvard Graduate School of Business
Administration conducted experiments at the Hawthorne plant of Western Electric
Company in Chicago.
The modern HR management theories were based on human behavior. It was
proven that productivity depended at least in part on the extent to which the
workers became a team and co-operated wholehearted and spontaneously.
Workers co-operation and enthusiasm seems to be related to the interest of the
work group shown by the supervisors and experimenters, the lack of coercion or
force, and the extent to which workers participated in making decisions and
changes that would affect them.
The behavioral science movement is an outgrowth of the human relations studies.
On the behavioral method observations and surveys in disciplines like sociology,
anthropology, psychiatry, social psychology and psychology, the following
theories were formulated:
a) Maslow’s need hierarchy theory or deficit theory of motivation
b) Hertzberg two factors theory of motivation
c) McGregor’s theory X and theory Y
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The evolution of HR development concepts can be traced in terms of six
approaches. They are:
Industrial Relation approach (IR)
Personnel Management approach (PM)
Human Resources Management approach (HRM)
Human Resources Development approach (HRD)
Strategic Human Resources Development approach (SHRD)
New-age Human Resources Development approach (NHRD)
The IR approach was essentially legalistic in nature and was primarily based on
the “conflict model” wherein conflicts between management and the workers are
resolved within the legal framework.
PM approach also focused on 4 R’s namely, recruitment, retainment,
retrenchment, and retirement.
With the arrival of HRM approach, the scope of personnel management expanded
to treating the human resources as “Assets”, which should be effectively managed
in congruence with the organizational goals. Accordingly, the focus on HRM has
been on manpower planning, selection and induction, performance appraisal, job
satisfaction, training and development, wage and salary administration, worker’s
welfare and working conditions, dignity of labourers etc.
In due course, the concept of HRM evolved into the idea of HRD. Thus issues
such as employee involvement, empowerment, self-development, team building,
converting the problem employees or ‘liabilities’ into assets, quality of work life,
institution building, organizational development and change, capacity building,
worker’s wellness, work dignity and 360° performance appraisal etc. assumed
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significance in the management of organisations. The 4 Ts, namely, trust,
transparency, truthfulness (in inter-personnel relations) and team work, became
the main words in HRD. Further, ideas from TQM were also integrated with
HRD.
The notion of HRD then naturally evolved into the concept of Strategic HRD,
where there is an integration of the HRD functions with the organization’s
‘strategic intent’ as articulated by Grayhamel and C.K. Prahlad (1994).
Accordingly, the HRD department gets involved in restructuring and re-
engineering, mergers and acquisitions, turnaround, de-layering, converting the
organization into a ‘learning organisation’ as defined by Peter Senge (1990), and
similar other issues of strategic importance. With the arrival of spirituality at work
movement, the concept of HRD is now evolving into New Age HRD. It suggests
that ‘character-competence’ of the key members of organization is more
important than the ‘core-competence’ of the corporation. Thus, we find that the
idea of HRD has traveled a long way from its IR orientation to New age
orientation.
2.3.2 HR Planning
The Estate Superintendent has to be an excellent human resource manager as most
operations in plantations involve the human asset. If the OWF is managed
efficiently, managers could gain excellent results. HR Planning is the first step in
HR management. HR planning is the process of forecasting, developing and
controlling. It is a process for an organization to ensure, that it has the right
number of people and the right kind of people at the right places at the right time
doing work for which they are economically most useful (Geisler).
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Prof. Kris Agrys says planning is needed when the rate of change in the external
environment is greater than the rate of change in the internal environment. If
proper planning fails then closure is in sight.
According to Wendell French, HR planning is the process of assessing the
organization’s HR needs in the light of organizations goals and making plans to
ensure that a competent, stable workforce is employed.
E.W. Vetter’s opinion on HR planning is as a process by which an organization
should move from its current manpower position to its desired manpower
position. Through planning, management strives to have the right number and
right kind of people at the right places at the right time, doing, things which result
in both the organization and the individual receiving maximum long-run benefits.
There was a different opinion on HR planning by Leon C Megginson. He said that
it is an integrated approach to performing the planning aspects of the personnel
function in order to have a sufficient supply of adequate developed and motivated
people to perform the duties and tasks required to meet the organizational
objectives and satisfy the individual needs and goals of organizational members.
In plantations, the process of HR Planning is very essential. The initial step in
planning is forecasting; this process consists of two stages.
a) Workers demand forecast
b) Workers supply forecast.
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Employee planning deals with short and long term forecasting issues and is
designed to provide sufficient information about employee requirement in the
future, as illustrated below.
a) 1) Short term employee demand forecast - This is designed to assess the
level of worker requirements to enable the plantation to meet its objectives
during the forthcoming fiscal year. This type of forecasting has an
immediate effect on the plantations current situation.
Here, the management has to consider the expected harvest, other
agricultural operations and the required workers and allocations for all the
operations.
2) Long term employee demand forecast - This is to provide an optional
indication of the future of the plantation worker requirement based on one
to five year periods.
For these short and long term human resource demand forecasting two
kinds of techniques are commonly used:
i) Judgmental forecasts – This is the conventional method where management
forecasts using their intensive and extensive knowledge. It could be a
managerial estimate where managers and supervisors who are well-
acquainted with the workload, efficiency and ability of workers, think
about their future workload, future capabilities of workers and decide on
number and type of workers to be required.
Judgmental forecasting also could be done by using Delphi method. Here,
a large number of experts who present their forecasting statement
independently and underlying assumptions to the others, who then make
revisions to their forecast.
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ii) Statistical projection - For this technique, the following statistical methods
could be used:
Ratio trend analysis - Here, the past records and future forecasting ratios
are analysed. The components of the internal environment changes are
considered while forecasting future ratios. This method depends on the
availability of past records and the internal environmental changes likely
to occur in the future.
Econometric model - Under this model, previous data is analysed and the
relationship between different variables which effects the HR
requirements, in mathematical formula is developed.
Work study technique - In this method, the volume of the workload in the
coming year is analysed. Here the productivity pattern and internal
mobility is also taken in to consideration.
b) Employee supply forecast - Once the worker requirement for the forthcoming
fiscal period are summarized, management should proceed with identifying
appropriate sources of worker supply.
In order to keep a track of workers qualifications, capabilities and development, it
is necessary to introduce and maintain an updated employee record system.
The supply forecast includes:
i) Human resource audit - Here, workers skills, capabilities, are
identified and recorded. By analyzing the records management
could identify the future supply problems. The important aspect of
this is to keep the records regularly updated.
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ii) Employee wastage - this is to analyse the future loss of workers in
various operations. Workers may leave plantations for reasons like
For Superintendents, it is advisable, always to have an officer with him when
communicating with the workers, especially to females, as the culture on the
estates are different. It will always enable the manager to maintain his status, and
avoid unwanted problems due to misinterpretation of the language.
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Most of the managerial problems in estates are at some a level communication
problem. Effective managers solve these problems by being sensitive to the
particular demands of the direction of the communication. It is not just a matter of
being clearer. Giving assignments to workers demands a different approach from
asking peers for help. Similarly, keeping bosses informed requires an approach
much different from counseling a troubled worker.
2.3.6 Management by Objective (MBO)
MBO has been defined as “result centered, non specialist operational managerial
process for the effective utilization of material, physical and human resource of
the organization by integrating the individual with the environment.” The MBO
process consists of the following steps.
Setting of objectives
Classification of organizational goals
Setting up of subordinate objectives
Recycling of objectives
Performance appraisals
MBO is an extremely popular OD intervention. There is relation between MBO
and OD as OD aims at improving the organizational performance by introducing
changes in perceptions, values and structure.
2.3.7 Training and Development
Training is a process of learning a sequence of programmed behavior; it is also
called the application of knowledge.
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Training gives people an awareness of the rules and procedures to guide their
behaviour, and attempts to improve their performance on the current job or
prepare them for an intended job.
According to Edwin D. Flippo, “The purpose of training is to achieve a change in
the behaviour of those trained and to enable them to do their jobs better.” In order
to achieve this objective, any training programme should try to bring positive
changes in:
1. Knowledge – helps a trainee to know facts, policies, procedures
and rules pertaining to his job
2. Skills – helps him to increase his technical and manual efficiency
necessary to do the job
3. Attitude – moulds his behaviour towards his co-workers and
supervisors and creates a sense of responsibility in the trainee
The importance of training is:
a) enables the management to face the pressure of changing environment
b) usually results in the increase of quantity and quality of output
c) leads to job satisfaction and higher morale of the employees
d) reduces the need for supervision
e) helps to face the competition
f) enables employees to develop, rise and increase their earnings
g) moulds the employee’s attitudes and helps them to achieve better co-
operation with the organisation
h) makes better economic use of materials and equipment resulting in
reduction of wastage and spoilage
i) instructs the workers towards better job adjustment and reduces the rate of
labour turnover and absenteeism
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Training methods are classified as:
i) On the job training
ii) Off the job training
On the job training are as follows;
Coaching – This is the most common and widely used method of training in
plantations, here, the supervisor teaches the job knowledge and skills
to the workers at the workplace itself. In this training, trainees learn
in the actual environment and equipment on the job. It is relatively a
cheap method and less time consuming. This method increases the
effectiveness of training, and the trainee gets more familiarized with
the co-workers, working conditions and the supervisors.
Job rotation – This is periodical rotation from job to job so that the worker
acquires a general background of different jobs. In plantations we
can see men are put for weeding, plucking and manuring on rotation.
Special projects – Here, a worker is assigned to a project that is closely
related to the objectives of his job. As an example in tea plantations
we could see pruners are used for trimming and lopping of shade
trees on contract or special project basis.
Committee assignments – an ad-hoc committee is constituted and is
assigned a subject to discuss and make recommendations. This is not
used in tea plantations as a training method.
Off the job training methods are:
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Role playing – this technique is used for human relations and leadership
training. In plantations this method is used to train assistants to work
as trainee kangani. In some situations, a chance is given to a selected
youth to supervise a gang. On his performances we could consider
him to be a Kangani in the near future.
Other off the job training methods such as, case study, conference training,
management games, sensitivity training or T group training, special courses
etc. are not practiced in plantations.
2.3.8 Welfare activities
Tea plantations are considered as the sector with the highest welfare facilities for
its workers in Sri Lanka. In fact it is said that the tea plantation workers are cared
from “the womb to the tomb”.
The standard facilities enjoyed by the estate workers are as follows;
• free housing and maintenance and a garden
• free line (house) sweeper for the upkeep of houses
• free water
• free medical (by estate dispensary with a medical officer)
• free crèche and meals for preschool children up to 6 years
• free education, books and uniforms (government provided)
• free transport to hospital in a case of an emergency
• free cooking fuel (fire wood)
• maternity ward (by estate dispensary) with a midwife and staff
• maternity benefits (Figure 2.5)
• free provision of coffins and grave diggers
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• subsidies rate electricity for functions, where there is no power
• specially appointed welfare supervisor to attend all matters
• free tea (500grams for each worker per month)
In addition to the above, the tea estate worker enjoys 17 days holiday pay,
attendance bonus for more than 75% day’s attendance (Figure 2.5) and three full
paid holidays per year.
Plantation workers are also entitled for 15% as EPF/ETF (employer contribution)
on their basic salary plus on excess kilos and gratuity on retirement after 55 years
of age. Each registered worker is liable for gratuity when they have worked for
more than 5 years in the estate, even if the actual number of days worked is far
less.
2.3.9 Job satisfaction
Job satisfaction is very important in every employment. It directly affects
productivity, employee/employer relationship, absenteeism and turnover.
(Porter and Steers - 1973; Locke -1976)
JS is the way an employee feels about their job or work. It is a generalized
attitude towards the job, based on evaluation of different aspects of the job.
(Wexley & Yuki 1984)
The term job satisfaction refers to an individual’s general attitude towards his or
her job. A person with a high level of job satisfaction holds positive attitude
towards the job, while a person who is dissatisfied with his or her job holds
negative attitude about the job (Stephan 2001).
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There are three generally accepted dimensions of job satisfaction (Luthans 2002)
1. JS is an emotional response to a job situation.
2. JS is often determined by how well outcomes meet or exceed expectations.
For example, if organizational participants feel that they are working
much harder than others in the same organization, but are receiving fewer
rewards, they will probably have a negative attitude towards the work.
3. Job satisfaction represent several attitudes, they are:
a. Pay
b. Promotion opportunities
c. Working conditions
d. Co-worker relationship
e. Supervision
f. The work itself
The definition of Job satisfaction
“Job satisfaction is a pleasurable or positive emotional state resulting from the
appraisal of one’s job or job experience” (Luthans 2002)
i) Relationship between job satisfaction and other concepts A person’s attitude towards his job reflects pleasant and unpleasant experience in the job and expectations and about future experiences. However, with the many studies on job attitudes during past decades, it is not possible to specify precisely how JS is determined. Most of the researches has attempted to discover what things are related to JS, but the casual basis for relationship has usually been ignored (Lawler 1973). For an example, many studies were conducted to determine how satisfied workers are and to compare the JS of men versus women, old versus young, skilled versus unskilled workers, and so on. Other studies were conducted to determine what aspects of the job are perceived to be most important to workers (e.g. pay, supervision etc.) The reason some workers are more satisfied than others or the reason workers consider some job features to be more important than others were seldom considered. A comprehensive theory of job attitudes has not yet been developed to integrate the diverse findings of the satisfaction research (Lawler 1973).
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However, a few satisfaction theories of more limited scope have been proposed,
including:
a) Discrepancy theory
b) Equity theory
c) Social influence theory
d) Two-factor theory.
ii) Job Satisfaction and Labour Turnover
Labour turnover in short is the rate workers leave a work place and the
recruitment of new workers.
Labour turnover is defined as “voluntary cessation of membership in an
organization, and is one of several forms of organizational withdrawal such as
absenteeism and tardiness.” (Mitra, Jenkins & Gupta 1992).
Turnover decisions are functions of two factors.
a) Ease of movement, how easy is it to find a new job
b) Desirability of movement, whether workers experience enough
dissatisfaction to want a different job.
(March and Simon 1958)
Economist focus primarily on labour market determinants of the ease of
movements. Work place turnover (quit) rates are best predicted by general
economic activity. When the economy is healthy or unemployment is low and
jobs are plentiful, then the turnover rates will increase. (This theory is
unacceptable on foreign jobs) When the economic activity and job growth are
slow, turnover rates will generally decline. Economics have also found that most
but not all that leave do so for better pay/ income.
3 manual weedings/year @ 15 LPH = 23,701 Monthly worker requirement = 1,975 3 chemical weedings/year @ 4 LPH = 6,320 Monthly worker requirement = 527 Folio (manure) spraying for tea extent = 397.3ha 4 rounds of spraying/year @ 3 LPH = 4,768 Monthly worker requirement = 397 Pruning - 1/3 of the plantation is pruned annually Therefore per year pruning extent = 132.4ha Worker requirement/year @ 55 LPH = 7,284 Monthly worker requirement = 607
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Factory operations @ 50 workers/day x 25 days work = 1,250 Other men requirements are such as welfare, Kanganies, bungalows, transportation etc. Per day average 40 workers x 25 days = 1,000 Total men workers available for a month = 6,550 Excess of men workers per month at Laxapana Estate
(10,875 – 6,550) = 4,325
Total Worker deficit per month at Laxapana Estate
(Women shortage 19,044 - Men excess 4,325) : 14,719
(Figures: 2.11, 2.12, 2.16, 2.17)
2.7 Conclusion
Today, there is a scarcity of labourers in every industry where it requires more
skilled and unskilled workers. In today’s world more people expect white collar
jobs, even though there is a huge requirement for blue collar jobs especially in
plantations with more attractive benefits.
A remedy for this issue is to provide maximum welfare facilities to uplift the
living standards of the workers. This will be a retention method to stop the
outflow of workers from the estates. This will also attract the new people from
other areas to join the estate cadre.
By introducing incentive packages and rewards we could motivate workers to
improve efficiency for higher output. New management systems will enable them
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to perform at a low LPH rate, especially for plucking operations where the highest
workforce is needed (refer Motivation 2.3.3).
In conclusion, if human resources are planned and managed properly, and used
effectively and efficiently by introducing and implementing above methods, the
managers could solve the OWF shortage and most of the human related problems
on the estates.
2.8 Recommendations
2.8.1 Improve more on Welfare facilities.
Even though there are many welfare facilities provided by the estate, it is vital to
provide as many extra facilities to retain people in the estates and to build a better
bond with the management.
In plantations, it is the Superintendent who is there for everything for the estate
people. A good superintendent is given the status of a “God” in the estates.
Therefore it is the right and the duty of every estate Superintendent to look after
his estate people in a more humane and sympathetic manner, and to get the
maximum output while treating them well. This will be a win-win situation for
both parties.
There are many ways and means that a superintendent could attend to the welfare
activities in an estate for the benefit of his workers without spending much funds.
A few such activities are as follows:
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For the welfare of the children
Children are the future of plantations; if the estate looks after them well, my belief
is that in future they too will contribute to the estate in some way. The estate
crèche has to be a clean and attractive, important place in the estate. The
superintendent has to give the best support to keep the place clean and tidy and to
attend the other requirements like good toilet facilities and water. The crèche
attendant has to be a competent person, with experience to handle the little
children. There has to be a good assistant to help her, or to release her for an
emergency. There are many NGO’s and religious groups which are willing to help
the children. With them, estates could upgrade the pre-schools, give them better
facilities, education materials, foods and nutrients and health facilities such as
immunization vaccinations, various aids for differently able children, etc.
Welfare of the Youth
Each estate could promote sports and leisure activities to the youth. With the
patronage of the estate manager, the estate could form a sports/youth club.
Though the club, we could encourage the young workers to engage in sports
activities after the work. Generally, in an estate, men finish their work by 2.00pm.
Thereafter people can engage in sports like volleyball, football, cricket, elle etc. or
indoor activities like carrom, checkers, playing cards, etc. These activities will
keep the workers active and happy, physically and mentally.
Superintendents could organize classes on computer, electronics, tailoring,
masonry, carpentry, or any other useful subject; or have a library to develop their
reading habits and knowledge; have a TV to watch educational programs and
news etc.
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Through the youth club we could develop, workers talents e.g. art, drama,
dancing, singing, etc. By this, we could identify the hidden talents of the estate
workers and encourage them to develop their talents. With the Club, the estate
could organize an annual sports meet, talent show and appreciate and evaluate the
workers talents.
It is always better to have an annual event with the estate sponsorship for the
workers. It will enhance the bond and better relationship between the management
and the workers, as well as workers themselves. This will enable the workers to
be in the estate after work and to spend their free time in some productive work,
rather than wasting their valuable time on non productive ways. By organizing
these kinds of activities, we could promote good values among the workers. When
the workers are occupied, they will have no time for gossiping and to organizing
bad activities like strikes in the estates etc. This is a better way to eradicate drugs,
alcoholism and smoking habits amongst workers.
Welfare of the Adults
Adult workers are more concerned about their children and their daily household
chores. Most adults spend their free time in their gardens. We could help them by
educating or by helping the workers to find finances to rear cattle, chicken or
other useful animals, and also to promote their own cultivations, especially
vegetables. This will help them to have nutritious meals and to earn some extra
income. Children will be able to have fresh milk, eggs, and vegetables.
Another possibility is to operate an estate welfare or a co-operative shop to
provide provisions to the workers at a reasonable price, in most instances workers
have to pay extra, travel to towns to get their provisions.
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If the superintendent could take an interest to introduce the above welfare
activities in their estates, we could be sure of having a better, much healthier new
generation, working in the future plantation sector to face new challenges.
On the estate level, we could think of a micro-financing system for the workers.
For this the superintendent could form a committee with the workers, supervisors,
and union leaders at estate level or with the help of a bank. They should have a
constitution and regularize the methods of disbursement of funds and the
recoveries. The manager has to overlook the operations and advise them as and
when the committee needs; the accounts have to be transparent and the committee
should have regular meetings at least once a month. This is not only to lend
money but to promote the habit of savings among the workers.
Lending has to be strictly on the recommendation of the committee and on two
guarantors (estate resident workers) signatures. It is better to keep the maximum
lending amount to about 6 months pay, recoverable within a maximum of two
years, and should be given for specific requirements such as, agriculture and
animal husbandry development, housing, to purchase household equipments and
furniture, to buy bicycles and for children’s education, etc.
Some plantations have started a plantation bank called “Wanisa” Estate housing
development Bank, where the operations are similar to what I have mentioned
above.
Welfare of the Elderly pensioners
They are the people who worked hard to bring the estate to this condition, and the
main contributors to the national economy. Therefore it is the duty and
responsibility of the Superintendent to look in to their welfare and needs and
wants. Many workers give up estate work to look after the elderly. Managers
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could start up a caretaking place for the elderly, preferably in connection with the
estate dispensary. The children could go to work leaving the elders with the care
taker and in the evening take them back home.
For this purpose too, the estate could get the help of the NGOs and religious
parties. It is necessary to provide the meals and medicines they require.
Workers Health
It is the responsibility of the estate manager to maintain the estate dispensary, and
the health related work of an estate. Most estates have a medical officer and a
couple of assistants to look in to the health aspect of the workers. At Laxapana
there is an EMA, mid wife, welfare supervisor and two labourers to assist them.
The Manager has to make sure that, all the required drugs are available and
equipments are in good order. It is also the responsibility of the Manager to check
the work of the medical staff by going through the medical book.
The estate manager could organize free medical camps with societies and clubs
like Lions club. These should include specialist treatments and distribution of
drugs. For this they could avail the services of a few medical consultants. Special
check-ups (e.g. diabetes), distribution of drugs and vitamins, checking of eye
sight and dental treatment etc. are some services that can be organized. This is a
very useful and needy service much appreciated by the workers and it comes with
no cost to the estate. I have personal experience in organizing such events for the
estates. It is better to have a free health camp at least once in two years.
It is vital to keep the estate Ambulance in good condition and be ready to move at
any emergency. The ambulance at Laxapana is in a good condition with basic
facilities, and is used to transport patients who need emergency treatment. The
closest base hospital is in Maskeliya, a town about 10 km from the estate.
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Community places
There are many places of worship on the estates. Laxapana Estate has 5 Hindu
Kovils and 2 Churches. The estate community is generally God fearing and
respects their religions, therefore it is the duty of the Superintendent to assist and
encourage them in all the religious activities. The attendance of the
Superintendent in the religious activities on the estate is appreciated by the
workers very much. The manager should show his interest and respect to those
activities.
By developing and participating in religious activities and getting the participation
for religious affairs by all of the estate workers, Managers could build a better
relationship with the workers and improve unity and harmony among workers.
Spiritual development keeps the worker away from bad habits and bad behavior.
Other public areas such as the workers community center used for training and
development, the Estate salon, crèche, co-operative, muster shed etc. must be
maintained well and kept in good condition.
Today, most of the international buyers look in to the welfare of the estate
workers of the plantations where they purchase tea from. Some of the buyers pay
visits to the estates to verify for themselves the condition of the community
centres and the treatment of workers. Therefore it is paramount to pay more
attention in developing welfare facilities and to the estate workers.
2.8.2 Training and development
Training is another area where we could improve for the benefit of the
plantations. By effective T&D, we could improve the efficiency and effectiveness
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of the workers. In plantations, I have noticed that the worker participation in
achieving organizational objectives are very poor, in fact, workers have no
knowledge about the companies objectives, mission and vision and the targets to
be achieved. They are not aware about what they get from the companies and
what the companies expect from them.
Since the present generation is more educated and knowledgeable, it is an easier
task than in the past. It is also recommended that the Superintendent take part in
these training programmes as his presence will encourage the workers to
participate and feel that T&D is very important in operations.
Training for workers could start from the orientation phase. A competent person,
preferably a senior executive or an expert on the subject should conduct the
program in their mother tongue. By having an orientation programme we could
build confidence in the organisation, and ensure that the new worker may not
form false impressions regarding their work place, promote a feeling of belonging
and loyalty, and to know about the facilities that they could enjoy, remuneration,
incentives, motivators, rules and regulations and other details like work times, tea
and meals breaks, weighing times etc, and all what they want and need to learn
about the plantation as a whole.
The next step is the job training, this is very important as the workers career and
future depends on the way that this training is conducted. It is always better to use
a competent person from the community, with the guidance of a good staff
member and a senior executive.
This training could be useful to the new workers as well as the others. Training
programmes could be conducted on the operations of the estate such as, plucking,
manuring, weeding, spraying, pruning, planting, manufacture etc.
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Plucking - we could teach the importance of proper harvesting on time, with
minimum handling of leaves, leaving buds and very young leaves for the next
pluck and to harvest the best quality leaves and the maximum quantity. The
quantity of harvest will definitely affect worker income. A quality harvest will
enhance characteristics of high grade quality teas and will be in demand. It is also
vital to teach them the proper ways of storing, transporting and handling the tea
leaves. On the practice of the estates, it could give training on new methods and
use of equipments such as shears, machines etc. for plucking. As plucking is the
main income generator in an estate, it has to be done in the most effective and
efficient manner.
Manuring - Most of the manurers are not aware about the use of the fertilizer and
the effect it has on the plantations. This training is vital as the manuring operation
is the most important and expensive operation in plantations.
The manurers should be taught the importance of manuring, the chemical
components and its effects, effective application methods, application quantities,
transportation and storage, safety and precautionary methods. Proper application
of fertiliser is the reason behind good harvest and higher yields. Effective
manuring results in a healthy plantation, which is resistant to diseases, infections
and pests.
Weeding – This is also a common operation in plantations. Weeders must be
educated on the kinds of weeds, how to eradicate them, the effect of weeds on the
plantation, ways to remove the weeds, stacking, transporting and using weeds for
mulching and composting purpose. If the chemicals are used, the correct variety
of weedicides for each growth, the correct quantities of chemicals for effective
results, how the various chemicals affect different kinds of weeds, the intervals to
use chemicals, chemical storage, mixing, transportation, filling into tanks,
107
spraying methods, use of correct sprayers and nozzles, maintenance of the
spraying tanks and the negative effect of sprayers etc. It is very important to teach
the workers about safety and precautionary steps to follow when handling
chemicals.
Pruning - For this operation, workers skill is important. By training we have to
teach the pruners pruning methods, techniques, height and the cut, use and
maintenance of tools (knives) and after care operations and methods. It is
important to teach them about taking the remains out of the site leaving all the
leaves on the field etc. For this training we could get the help of a senior worker
or a kangani who is experienced on these operations.
Planting - This is considered as capital work in the plantations. The main
operations involve, preparing the site, draining, marking contours, making holes,
application of manure, selecting of good plants, transporting, planning, thatching,
pegging, planting of shade trees etc. All of these operations have to be carefully
done since a minor error could affect the future tea bushes. It is better to get a
senior executive, field officer, and kanganies specialised in different operations to
train the workers. It is important to teach the workers on technical aspects such as
the varieties of clones used for planting, depth of the holes, removal of unwanted
materials from the planting site etc.
Manufacturing - This is the most important operation where machinery is used.
Most of the workers are not aware how the tea comes to their cup of tea and how
to make a good cup of tea.
Manufacturing training starts at the factory from the time tea leaves arrive. The
transporting staff must be trained that leaf transport from the fields should be
108
done with great care to minimize the crushing and damage of leaves, stacking the
correct weight in bags and to the vehicles and transporting.
Next, training is on the green tea leaves brought to the factory. The process
commences by weighing and spreading the leaves in the troughs for withering,
which, after a few hours (it takes the moisture out) the withered leaves are sent
through the rollers. What comes out from machines is called dhool and it is sent
for fermenting. Fermented dhool is sent for firing where the chemical reactions in
tea leaf stops. What comes out of the driers is called black tea which is what we
drink.
In this training we have to teach the staff and the workers the different functions
of the machinery, its operations and maintenance. It is better to teach them on the
chemical reactions and the process, transformation of green tea leaves to black
tea. In manufacturing, timing is considered as a crucial factor as incorrect timing
spoils the quality. The training must also cover methods of power and fuel saving
and techniques for cost reduction.
The manufacturing process is done under the careful supervision of many staff
members and the factory officer. All the functions of the factory are managed by
the factory manager who is also a senior executive on the estate.
2.8.3 Mechanisation of Operations
This is a practical method of finding a permanent solution for the worker shortage
problem in plantations. Like in other countries it is recommended to use
mechanical plucking where ever possible, especially in flat areas.
109
There is an option for automating and mechanising most of the factory operations.
Starting from leaf collection, a conveyor belt system can transport the leaves to
the troughs. This method solves the problem of leaf getting damaged by human
handling. The same can be applied on rollers and other machines. We could also
computerize the machine for automated operations. At present one person is
employed to each machine operation. Under a computerized factory, a few
operators may handle many functions.
In plantation operations such as weeding, manuring, spraying, pruning etc. we
could make the maximum use of machines and power tools. This will enhance the
productivity and efficiency of the workers whilst reducing the worker
requirement.
For new plantations we could introduce drip irrigation/sprinkler systems enabling
the plants to grow healthy and strong. We could use the same system for
manuring and other applications. With this the management could tryout high
yielding tea clones which are susceptible to drought and deceases. If these
methods prove successful the production and yields could be increased
dramatically.
2.8.4 Outside workers for estate work
With the high un-employment rate in Sri Lanka, it will not be a difficult task to
get outside workers to fill the shortage of estate workers. As explained earlier we
could attract more village people and unemployed in the area to work in the
estates by offering them attractive benefits. With the increased wages and
provision of transport, housing and other benefits it will be much easier to get
outside workers. I have observed that the benefits and the facilities enjoyed by the
110
estate workers are very much greater than what the poor people enjoy in their
villages. There are many such villages and colonies around the Laxapana area
where we could obtain workers to the estate by using village headmen and other
politically influential people.
111
(D) Chapter 03
i) Appendix
ii) List of References
iii) Bibliography
iv) List of Abbreviations
112
i) Appendix 1
Tea
Figure 1.1 Volume and Value of Tea Exports Sri Lanka (up to 2006)
Figure 1.2 Production and prices of SRI LANKA major crops (up to 2006)
113
Appendix 2
Worker related
Figure 2.1 Sri Lanka population, labour force, unemployment etc. (up to
2006)
114
Figure 2.2 Sri Lanka labour force and employment etc. (up to 2006)
Figure 2.3 Sri Lanka labour force and unemployment etc. (up to 2006)
115
Figure 2.4 Average daily labour wages in Sri Lanka (up to 2006)
Note: In October 2007, plantation workers wages were revised, accordingly tea
plantation worker’s average daily wages as follows:
Basic Salary 200.00 200.00 EPF 15% 30.00 30.00 PSS (Price Share Supplement) 20.00 20.00 Attendance incentive 70.00 70.00 Over kilo with EPF 15% 10.35 Total Per day Rs.320.00 Rs.330.35 Average monthly wage (24 days work)
Hamilton 57 41 0 0 0 0 11 18 127 WLF : Workers Liberation Front
Total 364 108 215 54 42 4 55 143 985 N/U : Non Union Members
Figure 2.14 Laxapana Union Strength/Percentage as at Dec. 2007
Last 10 Years
Year Yield NSA COP 1997/1998 2044 131.71 75.19
1998/1999 1800 121.64 86.69
1999/2000 1794 120.62 87.80
2000/2001 1586 144.60 103.49
2001/2002 1561 151.43 116.85
2002/2003 1750 165.87 123.95
2003/2004 1479 163.03 142.63
2004/2005 1575 201.54 162.96
2005/2006 1795 238.77 152.05
2006/2007 1813 271.32 172.96
Figure 2.15 Laxapana Estate Yield, NSA, COP for last 10 Years
Percentage 37% 11% 21.8% 5.5% 4.2% .4% 5.6% 14.5%
121
Avgerage Labour Utilizations (Per hectare) Plucking - VP Fields 20 Labour Plucking - SD Fields 15 Labour Chemical Weeding - VP 3 Labour Chemical Weeding - SD 3 Labour Manual Weeding - VP 7 Labour Manual Weeding - SD 5 Labour Spraying 2.5 Labour Pruning - VP 55 Labour Pruning - SD 45 Labour
Figure 2.16 : Laxapana Estate Estimated Labour Utilisation 2007
122
Figure 2.17 Laxapana Estate, Total Extent details in hectares 2007
Reconciliation of Extents (Hectares) for Year 2007 LAXAPANA ESTATE
Budget Previous Variance Total
Year '07 Year '06 at the end 2007
In Bearing
VP 226.40 226.40 0.00 226.40
Seedling 170.90 179.10 -8.20 170.90
Extent in Bearing 397.30 405.50 -8.20 397.30
IMMATURE
Replanting
Infested 4.70 4.70 0.00 4.70
1st Year Upkeep 1.00 -1.00 0.00
2nd Year Upkeep 1.00 1.00 1.00
Planting Year 3.00 3.00 3.00
Rehabilitation 10.25 10.25 0.00 10.25
Sub Total 18.95 15.95 3.00 18.95
Infilling
Uprooting 4.00 -4.00 0.00
Planting 0.50 -0.50 0.00
Rehabilitation 6.50 2.00 4.50 6.50
Sub Total 6.50 6.50 0.00 6.50
Nurseries 0.90 0.90 0.00 0.90
Sub Total 0.90 0.90 0.00 0.90
VP Inter-cropped coffee 3.00 3.00 0.00 3.00
SubTotal 3.00 3.00 0.00 3.00
Total in Tea 426.65 431.85 -5.20 426.65
Other Cultivated
Thatch Bank 12.00 14.00 -2.00 12.00
Sub Total 12.00 14.00 -2.00 12.00
Fuelwood Timber Extents
Above 7 years 20.25 20.25 0.00 20.25
Below 7 years 34.85 34.85 0.00 34.85
Coppice 6.25 6.25 0.00 6.25
Diversified into fuelwood 15.70 12.70 3.00 15.70
Calliendra Planting [ Pure Stand ] 7.00 5.00 2.00 7.00
Sub Total 84.05 79.05 5.00 84.05
Conservation of forests 4.00 4.00 0.00 4.00
Sub Total 4.00 4.00 0.00 4.00
Total Cultivated 526.70 528.90 -2.20 526.70
Buildings / Worker housing 1.00 1.00 0.00 1.00
Roads 32.95 32.95 0.00 32.95
Line Gardens 4.00 4.00 0.00 4.00
Abandoned 13.30 11.10 2.20 13.30
Land suitable for planting 159.10 159.10 0.00 159.10
Sub Total 210.35 208.15 2.20 210.35
Grand Total 737.05 737.05 0.00 737.05
123
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iv) List of Abbreviations
BOP - Broken Orange Pekoe
BOPF - Broken Orange Pekoe Fannings
COP - Cost of Production
CTQC - Ceylon Tea Quality Certificate
EMO - Estate medical officer
FLO - Fair Trade Labelling Organisation
Ha - Hectares (equals to 2.472 acres)
HACCP - Hazard Analysis and Critical Control Point.
HR - Human Resources
HRD - Human Resource Development
HRM - Human Resource Management
ICBT - International College of Business and Technology