Factories, workers in crisis
Apparel workers’ jobs in over a 100 companies are still hanging in the balance even as private sector workers were being asked to receive Rs.14, 500 or 50 per cent of the basic salary during this COVID-19 crisis period.
The government together with the trade unions and the Employers’ Federation of Ceylon (EFC) reached an agreement recently to pay workers Rs.14, 500 or 50 per cent of the basic salary for those compelled to stay home. Companies have been asked to employ only a minimum staff to work in the factories under the current health guidelines.
In this respect, a large number of workers will have to stay at home, and during this time they will be paid Rs.14, 500 or half their basic salary whichever is higher, the agreement states.
Employees cannot be removed from their jobs in places where work was stopped due to the pandemic situation, it was stated.
Moreover, all employees cannot be deployed at the same time and they will be deployed equally each month on a shift basis.
This payment will be in force only for the months of May and June at the end of which there will be further review of the situation next month.
FTZ Trade Union General Secretary Anton Marcus told the Business Times that this would apply to all factories and said workers have to be called for work and must be paid according to the amount of days they work.
He noted that once the factories were allowed to be opened up most got back to work and it is learnt that they are carrying out production for orders previously obtained and as a result factories have work.
During this crisis, he pointed out some employers want to push for labour law reforms and some are trying to use the situation to reduce the workforce.
In fact, he asserted one factory had introduced a voluntary resignation scheme and used various methods to intimidate them and thereafter reduced the workforce by 1000 following which they are now in agreement to pay Rs.14, 500 to the remaining staff.
Mr. Marcus noted that most factories have orders until even August and that the situation is likely to change fast by then and with European retailers opening up, orders will continue to flow in.
Joint Apparel Assocation Forum (JAAF) General Secretary Tuli Cooray told the Business Times that though the agreement was made their representatives at the last concluded National Labour Advisory Committee meeting had stated that their companies were unable to pay this amount and would be writing to the Commissioner General of Labour on this matter.
He pointed out that even at the time of the meeting about 83 companies had already written to the Labour Commissioner that they will not be able to submit to the general Rs.14, 500 payment stipulated by the government.
Some of the worst hit companies are those employing workers below 3000 that comprise the small and medium scale factories, he said.
In this respect, due to the large workforce employed in this sector unlike other industries, at least 60,000 workers in over 100 companies will not be able to receive this payment as agreed upon.
However, all the large companies will go ahead and pay the Rs.14, 500 as they are in a position to do so.
Moreover, he pointed out that although at this moment there is no question of layoffs it cannot be ruled out in future either.
Currently approximately over 200 companies are in operation from large to small scale firms and due to health guidelines none of them is employing 100 per cent staff, Mr. Cooray said.