The Ministry of Labor has informed the Cabinet that the employers have not agreed to pay the Rs. 5,000 allowance to be paid to public servants, to the12 million private sector employees.
Accordingly, the Minister has summoned employers and trade unions and held discussions.
Employers have said they will not be able to provide this allowance to employees due to a shortage of foreign exchange, lower productivity due to a shortage of raw materials, higher loan and lease premiums and higher prices of essential commodities.
Employers of tea and rubber export plantation crops have pointed out that the increase in the daily wage of plantation workers by Rs. 1,000 has cost them an additional Rs. 600 million.
It is about seven billion rupees annually the employers have also pointed out, adding that restrictions on the import of chemical fertilizers and pesticides have reduced yields.
