| With the global economic crising taking its toll on Sri Lanka, too, employer organisations are calling on the Labour Ministry to amend labour laws, but trade union leaders have warned they will fight any cost-cutting measure taken at the expense of workers.
A set of proposals made by the Employers’ Federation of Ceylon was strongly criticized by the trade unions which said the proposals to amend existing labour legislation were weighted heavily in favour of employers.
In its proposals submitted to the Minister of Labour last week, the Employers’ Federation says the Ministry needs to look into regulations governing terms of employment in view of the current global financial crisis. The proposals also call for the introduction of a five-day week and amendments to the Payment of Gratuity Act and the Termination of Employment of Workmen (Special Provisions) Act.
The Employers’ Federation states some factories, especially those in the apparel and export industries are facing a loss of orders and they see the five-day week as a loss-minimising measure. By introducing a five-day-week schedule, employers could reduce costs by way of fuel, transport and meals to employees on an extra half day, the employers say.
The Federation’s Director General R.L.P. Pieris said, “all the employers do not need to follow this proposal, but it is absolutely necessary to most employers. Working hours during the five days would include an extra hour instead of the five-hour work on Saturdays”.
The Federation seeks authority for employers to lay off employees without going through a process of inquiry via the Commissioner of Labour.They claim the process is time consuming.
The Federation is also urging the Ministry to review the worker compensation formula, claiming it is disproportionately high.
The Federation proposes that the Commissioner of Labour be given the discretion to order payment of compensation less than is mentioned in the gazetted compensation formula.
Trade unions have rejected these proposals stating they would have a negative effect on productivity as the employees will be de-motivated.
Palitha Atukorala, president of the Progressive Union, said employers and government authorities are trying to amend labour laws by making use of the present global crisis and cutting costs at the expense of workers.
Anton Marcus, president of the FTZ Apparel Union said unions realised a financial crisis had hit the world economy. But governments should have strategies to face these issues other than looking at the working class to bear the burden.
“Other countries do amend labour legislation in the face of crisis. The apparel industry will be badly affected if such decisions are taken. Job termination, changing laws affecting payment of gratuity and wages will have a major effect on productivity”, he said.
Minister of Labour, Athauda Seneviratne was not available for comment.
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