Wage
hike demand looms in private sector
By Ruwanthi de Silva
Private sector trade unions are planning a campaign to win a wage
hike to match that given to the public sector in the government
budget for 2004. "The private sector workers haven't had any
pay increase. Therefore they are planning to organize a campaign
in order to obtain a salary increase," said Anton Marcus, General
Secretary of the Free Trade Zone Workers Union.
The government
announced in its budget that public sector employees’ salaries
will be raised by 10 percent or Rs. 1,250, whichever is higher,
with effect from January 1, 2004. This is expected to cost the government
an additional Rs. 12.5 billion a year. "The entire private
sector is involved in this campaign.We also sent protest letters
to the labour ministry.
The main focus
of this campaign. is on salary increases, labour laws and the statutory
compensation package," Marcus said. He also added that the
package is not favourable for workers who are already under the
unemployment benefit scheme and which would further reduce what
the workers are already getting.”
Gotabaya Dasanayake,
director general of the Employers Federation of Ceylon said they
have not received any request from the unions so far. "The
unions are aware that the private sector has its own mechanisms
in facilitating wage increases such as collective bargaining and
performance related pay. These mechanisms would prevail."
Labour unions
on estates are also planning to demand higher wages, increasing
the burden on regional plantations companies which are already struggling
to cope with high costs. "Plantations workers wages are due
for review in June, but unions are already talking of an early increase,"
brokers Asia Siyaka Commodities said.
"If Sri
Lanka is heading for elections then the wage negotiations would
be further politicised, thus complicating issues for plantation
companies coping with mounting losses. Historically, breakdown of
wage negotiations have led to production losses."
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