The JVP-led strike on Thursday demanding extra wages for workers will severely impact on business and the private sector as it will paralyse essential services, the country’s leading chambers of commerce say.

Speaking to The Sunday Times FT, President of the Federation of Chambers of Commerce and Industry Sri Lanka Nawaz Rajabdeen said that launching a countrywide strike at a moment when local business establishments are undergoing severe difficulties in the face of an unprecedented fuel hike is unfair and unacceptable. He pointed out that the JVP’s action to bring transport, power, banking and other essential services to a standstill will greatly affect the productivity of the private sector. He added that private sector institutions cannot increase wages of workers without improving productivity and such ad hoc salary increases will lead to retrenchment of staff.

Director General of Employers Federation Ravi Pieris said that no trade union has informed about their trade union action scheduled for July 10. He added that trade unions have entered into collective agreements with at least 100 companies around one fifth of the membership of the Federation and according to certain clauses of these agreements the resorting to strike by workers is illegal. He said that the violation of the collective agreement is a punishable offence under the Industrial dispute act. He added that the tripartite National Labour Advisory Council which is represented by the Employers Federation, trade unions and members of the corporate sector has agreed to increase the minimum wage of workers by 15 to 30 percent after lengthy deliberations with 43 wages boards.

The Minister of Labour has to issue the gazette notification on this matter, he said. However Mr Peiris said that unions are bound to bring to the notice of employers on all their trade union actions under certain clauses of the collective agreements they have signed with them.

The JVP-affiliated National Trade Union Centre (NTUC) comprising some 400 public, private and estate sector trade unions are launching the one-day token strike demanding a minimum salary increase of Rs.5,000 in line with the rising cost of living. The main opposition UNP’s trade union arm, the Jathika Sevake Sangamaya will support the JVP’S trade union action. In addition to the salary increment of Rs.5,000 for public and private sector employees, the NTUC als wants an increase in the daily wages of estate workers from Rs.290 to Rs.500.

Chairman of the Sri Lanka Ports Authority Saliya Wickremasuriya said they will implement a contingency plan to maintain uninterrupted port services making some essential duties compulsory for port workers. He added that all necessary steps have been taken to minimize the impact of the strike. General Manager of Sri Lanka railways Dr. T.L Gunaruwan said that the train services will be disrupted if workers attached to essential divisions of railways go on strike.