Top labour union opposes attempts to exploit labour at BOI zones
View(s):A top labour union has protested to Sri Lankan authorities over attempts to allow companies to, what it calls, ‘exploit labour.
“We are totally opposed to this approach of allowing companies to exploit labour on two counts. One, it allows inhuman and unfair labour practices with heavy exploitation. Two, such approach will not in any way benefit economic growth and development such needed in this country,” said Anton Marcus, Joint Secretary – Free Trade Zone & General Services Employees Union in a letter to Investment Promotion Minister Lakshman Yapa Abeywardena.
In the letter he said he was aware that the minister has made statement on labour practices at the ministerial parliamentary consultative committee on September 4 to the effect that “the government will not be intervening in any way to lay down conditions as to how workers should be employed in foreign collaborated factories since that would hinder foreign investments from coming to Sri Lanka”.
File photo shows a garment factory worker
The above position of the government, the union said was conveyed to them by MP for Kalutara district, Vidura Wickramanayake who had raised the issue of a private factory employing labour through a manpower agency and that they are heavily exploited as daily paid wage labour.
Mr. Marcus said this is no isolated, single case and that it is also not just happening outside designated export promotion zones, as now under the BOI Act, the whole island from 1992 is an export promotion zone. There are companies within Katunayake and Biyagama export zones where such contract labour is employed for core production and where no permanent labour had been employed, ever. This ‘we’ see as a growing cancer within labour employment, he said.
“We are therefore seriously concerned on two issues that your policy would impact adversely on both Sri Lankan labour and development. The type of investors that have been lured to come to Sri Lanka at the expense of taxpayers money have often been total fraudsters and defaulters. Most have fled the country after obtaining huge loans from state banks and without paying wages, EPF, ETF, gratuity and compensation legally due to workers,” the letter said.
It was the Minister of Labour and Labour Relations who raised this issue with the President in early February this year. Sri Lankan experience has proved, providing heavily exploitative environments as incentives don’t bring decent and credible investors, but defaulters and fraudsters, wanting quick money, Mr. Marcus said. “We therefore demand you first publish a list of foreign investors who have fled the country and the monies they owe to state banks and to workers, as available with the BOI-SL under your purview,” he said.
The other issue of concern is about heavy exploitation that prevails when the government sits back and allows labour contractors to exploit rural and semi urban unemployment, he said.
The letter quoted the Senior Legal Advisor, at the Ministry of Labour and Labour Relations, who presented a concept paper to the National Labour Advisory Council (NLAC) dated 2 August, 2013, as follows:
“The Secretary to the Ministry of Labour and Labour Relations, informed me that the Minister intends to formulate a legislation to control the supply of labour to various private organizations by manpower agencies and such other organizations. The labour so provided undergoes various harassments by so called employers changing their hands frequently. Among other things the workers so employed through the provider agency when recruited to an enterprise through employment agencies very often find their wages; daily, weekly or monthly are not regularly paid. Their due wages as per market rates are not given despite denial of minimum wages at certain occasions. Neither their social protection by way of social security measures such as contributions of EPF, ETF payment under the Gratuities Act are observed.
The privilege of leave or different types of public holidays in terms of the Wages Boards Ordinance and the Shop and Office Act are alien to them. Vulnerable sectors, the categories such as women, young persons, disabled, sick persons (being sick while in employment) are not adequately protected or covered under many concessions accorded under other laws. The rights of labour such as the Freedom of Association, unionization, combinations, affiliation or federations, etc are beyond their reach. In other words bulk of the labour provided by manpower agencies has become a commodity rather than a human being who should be protected under the recognized labour standards and their recognition as social partner in development is ignored.”
The letter said the union has raised all the above issues with the BOI under the minister’s charge and have also raised these at the NLAC.
The union urged that:
= The two BOI circulars dated 16th March 2005 and 04th October 2005 under the caption “Policy Guidelines on Employment of casual/Temporary workers and contract labour for BOI factories” issued for all BOI enterprises by the chairman/Director General be immediately brought into effect and all factory owners advised accordingly.
= The amendment to Section 45 of the Wages Board Ordinance as agreed at the NLAC that is kept in cold storage for now, be immediately effected and enforced.
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