Abstract:
This paper attempts to discuss the reasons for the improvement of labor productivity after
the privatization. This study mainly based on the primary data gathered from the laborers
employed in tea estates in the Ratnapura district in Sri Lanka. 120 of laborers are selected
representing 40 laborers from 03 privatized estates situated in the Ratnapura District. Data
was mainly collected through a structured questionnaire and analyzed qualitatively and
quantitative techniques. The study reveals that the financial benefits i.e. salary,
allowances, salary increments, overtime and loan facilities and non-financial facilitieswelfare facilities like housing, education, health, daycare centers, transport, electricity etc.
provided by the management company for laborers are highly affected to the improvement
of labor productivity through the increase of labor satisfaction. Labor satisfaction regarding
financial and non-financial benefits was relatively very high. On the other hand, strict
management and application of new technology for the factories affect the improvement of
labor productivity. Finally, it can be concluded that the labor productivity in tea plantation
sector has improved after privatization due to the improvement of labor satisfaction, strict
management and application of new techniques of the private companies.
