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CWE without stocks, on verge of closing down
By Asif Fuard
Facing severe losses after privatisation and unable to even pay its employees and suppliers due to the massive losses it is incurring, the Cooperative Whole Establishment (Sathosa) which at one time sold its goods to the public at a reasonable price is now compelled to sell its goods at a 50 percent discount.

Several CWE trade unions have expressed concern over the payment of salaries of some 3,100 workers who might not be paid this month as the privatised CWE retail section is reportedly under threat with possible closure on May 20.

With the CWE now selling most of the goods at half price and the goods sold not being replaced nor new stocks purchased the shelves in most of its outlets are empty.

When The Sunday Times visited a few CWE outlets in and around Colombo the common questions asked by most of the workers we spoke to was whether the CWE was going to close down and whether they would be paid their salary on May 25.

"That is our pay day, without new stocks the CWE can't have any turnover and therefore its income is next to nothing", one worker lamented. The employees of the Rajagiriya CWE said the management had not given them prior notice of this outlet being closed down, but there was speculation and rumours going round about the outlet only functioning till May 20.

"Those who buy goods to the value of Rs. 5000 are given a 20% discount. Goods such as tinned fish, milk powder, chocolates and most other essential food items are sold at a 50% discount. It’s a crime the CWE is selling these goods at half price since this outlet used to earn on an average about Rs. 800,000 a day. We have heard the Sathosa is doing business at a loss and that its outlets are being closed on the 20th of this month and that is the reason why the stocks are being disposed of so cheaply", an employee at the Rajagiriya outlet said.

Inter Company Employees Union Secretary General W. Samarasinghe told The Sunday Times the Union had made representations to the Trade, Commerce and Consumer Affairs Minister Jeyaraj Fernandopulle.

Some of the suggestions made by the employees through their union was for the government to get the CWE back under the purview of the government and set up an efficient administration, human resources and stock management, reduce corruption, motivate the employees and decentralise district CWE outlets enabling them to purchase goods which are in demand in their areas.

"In case the International Grocery Alliance (IGA) that bought the CWE decides to close its retail outlets before the May 25 payday the employees will be left with empty pockets. After the privatisation of the CWE, some 700 workers lost their jobs. Now if the CWE closes down on May 20 another 3,100 workers will lose their jobs. To buy back the CWE the Government will need nearly one billion rupees", Mr. Samarasinghe said.

" IGA which owns 40% of the CWE shares and the management was not abiding by the agreement signed at the time of the handover. It also tried to close down most of the 144 outlets and reduce the labour force", he said.

Minister Fernandopulle told The Sunday Times the day for the Government's takeover of the CWE was not finalised as the Ministry was still waiting for the approval of the Finance Minister and the President. "We hope to buy back the CWE shares sold to IGA. The only problem we face is that the shares have no value to repurchase them", Mr. Fernandopulle said.

When asked whether the CWE workers will get paid the Minister said, "Even though we own 60% of the shares the management is by the IGA, So it's not our responsibility to worry about the payment of the workers. It is the duty of the IGA to pay them".

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