METHOD OF PAYMENTS TO WORKERS USING ToughFAR – THE EVACUATION MACHINE

1 BORNEO SAMUDERA SDN BHD IMPLEMENTATION Advantages to the company

a. Machine buy and belong to the company
b. 1st 3 months:-
- as familiarization period to the workers.
- Same rate for harvesting and others
works given.
- Harvesting rate pay by palm age and high
as normal implementation.
- All cost for fuel, maintenance, repairs and
spare parts bear by the company

c. The 4th months onwards: -

- Deducted the harvesting rate at
RM1.00/mt.
- Fuel bare by the workers
With proper system and monitoring, in
- Spareparts, repairs and maintenance
long term run, the estate will reduce an
bare by the company.
operation cost and improve the crop
- Deduct the harvesting rate if implement
quality and working condition. Its proven,
separate loose fruit collection at
using this 3 wheeler machine, the estate
RM2.00 / mt.
can reduce the labour requirement to
- For assisting in manuring application, the
30% and it will contribute to reduce others
rate pay to the workers using this
cost related such as :-
machine at RM3.50/ha compare RM5.00
i. Labour quarters
– RM5.50 / ha.
ii. Wellfare
2 TSH PLANTATION SDN BHD
iii. Medical
a. Machine buy and belong to the company
iv. General Charges that effect
b. 1st 3 months:-
number of workers.
- as familiarization period to the workers.
- Same rate for harvesting and others
( Details of advantages and performance
works given.
of the machine as in our “SYSTEM
- Harvesting rate pay by palm age and high
RECOMMENDATION FOR THE
as normal implementation.
EVACUATION MACHINE “ book given
- All cost for fuel, maintenance, repairs and
earlier.
spare parts bear by the company

c. 4th Months onwards:

- Normal Harvesting rate pay by palm age
and high as normal implementation.
- Fuel, spareparts, repairs and
maintenance bare by the workers
- If implement separate loose fruit
collection - General workers will be paid
at RM0.80/bags LF and the total amount
will be deducted to the harvester.
- For assisting in manuring application, the
rate pay to the workers using this
machine at RM2.50/ha compare RM5.00
3 MALBUMI PLANTATION
a. Machine buys by the company and lease to
the Mandore by deducting monthly basic
through Mandore commission at
RM200.00/months. The machine will belong
to the mandore.
b. Mandore bear all running cost such ad fuel,
spareparts and maintenance.
c. Mandore was given as normal piece rate for
harvesting, manuring and others works and
depend on the mandore to pay to their
workers accordingly.
4 YPJ PLANTATION ( JOHOR )
a. Machine buys and belongs to the company.
b. Deducting the harvesting rate at 15%
( RM2.00) from workers as “RECOVERY COST”
for spareparts, maintenance and servicing of
the machinery
c. Company control and bear all running cost
such as fuel, spareparts, maintenance and
servicing of the machinery. ( from the
recovery cost ).
Monitoring of the machine directly to the
mandore, however, the estate prepare all
ground preparation required for machine
accessibility.
With proper system and monitoring, in
long term run, the estate will reduce an
operation cost and improve the crop
quality and working condition. Its proven,
using this 3 wheeler machine, the estate
can reduce the labor requirement to 30%
and it will contribute to reduce others cost
related such as :-
i. Labour quarters
ii. Wellfare
iii. Medical
iv. General Charges that effect
number of workers.
v. Additional profit if the estate
can maintain the operation
cost below RM2.00 /mt
 OTHER INCENTIVES
If the machine belong to the company and all cost incur bear by the company, the incentive below can
be considered to ensure the workers maintain and take a good care of the machine:

Description Cost / unit/year

a. Runing / machine / year :
b. Hours Runing : 8 hrs/day x 26 days x 12 months = 2496 hours/ year
- Fuel – 3lt/day x RM1.90 / liter x 26 days x 12 months =RM1778.40
- Lubricant – SAE 40 – 2496hr/200hrs x 1.65lt x RM7.00/lt =RM 144.14
- Lubricant – SAE 90 – 2496hr/1000hrs x 3 lt x RM7.50/lt =RM 56.16
- Spare parts/ servicing / maintenance =RM2,521.30
- TOTAL COST / UNIT / YEAR ( BUDGETED ) RM4,500.00/unit/year
- TOTAL COST / UNIT / MONTH RM375.00/ unit /month

c. Output/ machine / year:

- 6workers x2.50mt/manday x 26 day =390mt/month/machine =4,680 mt/machine/yr

d. Average Runing Cost / mt / month :

- RM4,500.00 / 4,680 mt RM0.96/mt

THE INCENTIVE :
If the driver / operator can maintain the operation cost below the
budgeted cost/ year, the variance of the difference will be paid to the
operator :

Eg: Budgeted cost / unit / year = RM4,500.00

Actual Cost / unit / year = RM3,600.00 ( ave. RM300/month )
Variance of saving = RM4,500 – RM3,600 = RM900.00

50% or 100% of variance will be paid back to the operator at

annually basic as an incentive and base on individual unit.