Abstract:
Over the past many decades tea estates sector has been playing a vital role in the national
economy of Sri Lanka by contributing to the Gross Domestic Product, foreign exchange
earnings and creating employment opportunities. The all time production increase for the
period 1995 to 2004 was 13 %. In 2004 its production was estimated to be 308.1 million kg
indicating an increase of 1.6 % over the previous year Option for maintaining its viability
would be to concentrate on tea as a mono-crop in viable areas and developing low yielding
fields with export crops, forestry and other diversified activities to enhance productivity and
improve quality of orthodox black tea with value addition. Scenario was that the Regional
Plantation Companies (RPCs), which were established in June 1992 and thereafter, have now
reached the threshold of slow down in obtaining and retaining the required quantity of
labour. This has been aggravated by a number of extraneous factors. Labour management
analysis of the tea estates had stressed the importance of a further research on this area over
the long term as a whole. Therefore the current study attempted to examine the issues that
generated the problem in the privatized tea estates especially in the up country identifying its
magnitude. This necessitated understanding of the existing management practices for
selecting the appropriate practices to attract and retain competent and committed labour.
Need would be for the workers to operate within working and living environment acceptable
to them in their respective estates. A number of relevant theories and concepts were
assembled to demonstrate the necessity and limitations in formulating the methods and
techniques. In gathering primary data the techniques used were key informant interviews,
focus group discussions, direct observations, and face-to-face interviews. The randomly
selected sample was managers, staff members and workers from three RPCs. Review of
literature revealed that these privatized companies were transforming the traditional system
of labour management practices mixed with deficiencies to achieve employer goals. They
attributed importance to the development of quality of work life and quality of life of the
worker community. Towards this end grants and soft loans of donor agencies have been
utilized. There were a number of key findings in this study: 'short supply oflabour' being the
long run and most important issue projected to 2015 and thereafter, calculated on 100 %
worker respondents discouraging their youth to enter the estate labour force. Worker
