Financial Times

Insurance Corp mum on lay-off reports
By Quintus Perera
The new management of the Sri Lanka Insurance Corporation, under tycoon Harry Jayawardena, is refusing to comment on reports of large-scale lay offs that have created uncertainty and fear among the staff.

Employees said the management has begun intimidating workers and labour union leaders and launched a "purge" of employees since SLIC was privatised in April, sending shock waves through the 2,900 strong work force. They said workers were particularly worried about a report that the new management intends to reduce the staff to a mere 400.

Attempts to clarify these concerns with the new management of SLIC proved futile with Damien Fernando, director of finance, the executive to whom queries from this newspaper were referred to, repeatedly dodging attempts to get through to him.

Questions faxed by The Sunday Times FT to the new SLIC management more than three weeks ago are yet to be answered despite repeated reminders.Some lists released by the management indicate that 65 employees had been sent on retirement by the end of August and 26 employees by the end of September.

mployees said these lists had resulted in consternation and fear among the staff. Staff members said that around 20 employees had resigned due to the fear that their conduct would be inquired into for previous offences. The major problem faced by most of these employees is that a large number of them have reached 55 years and are being sent on retirement despite an agreement with the earlier management for them to work until 60 years. These employees had obtained big loans under an arrangement where the repayment period had been spread out until they reached 60 years.

The sudden change of the accepted procedure had caught them unawares and forced them to dip into their savings to repay the loans before the original deadline.
Employees said they have got the impression that the new management wants to get rid of as many employees as possible.

"The past records of some employees are now being dug up to trace old complaints against them," said an employee who requested anonymity. "Irrespective of whether or not disciplinary action had been taken against them, they have been issued charge sheets and have been interdicted or forced to resign under the threat of dismissal that would have been embarrassing.

" Under the privatisation deal the employees were awarded 10 percent of the firm's shares. But the employees say they are confused after being given different advice by different managers.

Employees said they have now been forced sign a blank document on this issue.
Before the SLIC was privatised, the trade unions had been against the move with union leaders campaigning vociferously against it.

But the workers now complain that these leaders have been cowed into submission due to the management adopting the tactic of digging up their previous alleged misdeeds and threatening them that these would be inquired into if they try to mobilise the workers.

One union leader, M. S. H. Herath, Branch President of the UNP union, Jathika Sevaka Sangamaya, who had called the sale of SLIC a "national crime", declined to comment when she was contacted by The Sunday Times FT. Some employees have begun secretly lobbying to float a JVP union to support their demands and save their jobs. In the meantime during the months of May, June and July the services of 87 employees had been extended.

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