Business Times

Garments: Where are the election promises?

By Dilshani Samaraweera

Garment sector worker representatives are calling on the government to fulfil election promises of wage increases. “We are going to put pressure on the government for promised wage increases through private sector trade unions and other worker representative groups. During the Presidential Election campaign they made certain promises. These promises should be kept,” said Palitha Athukorala, President of the Progress Union.

“The Minister of Labour promised a Rs 2,500 increase in private sector salaries. But later he said private sector wage increases will be through the Wages Boards. He said the Wages Boards will be summoned for this. Then, the Chairman of the BOI, (Board of Investment), Mr Dhammika Perera, said they will increase BOI salaries by 15%. This was supposed to be a blanket increase, not just the minimum wage. He said a circular will be issued for this,” said Mr Athukorala.

But at this point the promises have still not materialised. “Up to now, there has been no BOI circular to increase worker salaries. Also, up to now, trade unions have not been notified to attend the Wages Board meetings for salary increases either. So these are promises that they need to fulfil,” said Mr Athukorala.

Apparel is the biggest employing-sector in the manufacturing arena in Sri Lanka with around 270,000 workers. This large vote base is a magnet for political promises. Now, with a general election on the way, workers want to see politicians put some money where their mouths are. “The government may have made promises of wage increases as an election gimmick. But workers are holding them to it, because living conditions have become more difficult.

The rent in boarding houses, the cost of food, and other costs, have all increased but the incomes have not kept pace. In some cases workers now have to work more and get less, because factories have increased their production targets, to be able to cut down on Over Time payments,” said the Coordinator of the Women’s Centre, Padmini Weerasuriya. The Women’s Centre is a women’s rights group working in the Free Trade Zones.

Unjust system
Women’s rights activists and trade unions say the matter of wages is not just about money but about social justice. Individual wages of the nearly 80% female workforce in the garment industry, are very small, compared to management and even staff grade salaries. Management salaries in Sri Lankan garment factories are not publicly available. However, management grades such as Production Mangers, can summon salaries of around Rs 150,000 per month. The basic wage of a garment factory worker on the other hand, ranges from Rs 6,750 to about Rs 7,500 per month.

To earn more than this workers have to do over time or qualify for other incentives. Activists say that this system of low wages is perpetuated by lack of alternative employments, especially for women, in Sri Lanka. The market system is supposed to set wages through market demand and supply dynamics. However, trade unions and women’s groups say that in Sri Lanka the system is skewed in favour of employers, because the vast majority of Sri Lankan’s do not have a choice in employments, to begin with. “If they had a choice of selecting some other job, they will not be working under these conditions for these salaries. But the fact is, there are no jobs to choose from. For instance, there are even people with external degrees working as sewing machine operators.

This is not by choice but by lack of choice,” says the Programme Coordinator of the Da Bindu Collective, Chamila Thushari. The Da Bindu Collective is another women’s group active in the Free Trade Zones. Although the market system was supposed to improve tge quality of life for Sri Lanka’s population that has very high literacy rates, activists note that the benefits of the system are not trickling down to the people. For instance, in the apparel export industry, Sri Lanka’s biggest export income generator, activists say wealth generated by the industry is concentrated within a very small ‘management/ owner’ portion, while workers are permanently stuck in the subsistence-fringe.

Worker representatives say that while a few factories are showcased as model factories by the industry, in general, garment factories use women to get their work done under physically demanding working conditions - but pay them only a subsistence wage.

“In 2005, we calculated a living wage that would allow workers a decent quality of life. At that time it came to Rs 12, 500 per month. Now the living wage should be around Rs 16,705. But most garment factory girls earn around Rs 10,000 a month. So how can they even eat properly, let alone live decently given the current costs?” says Ms Thushari.

“These girls don’t eat properly and because of the long hours of work they are physically weak. Yes, factories provide a meal, but this is generally only one meal and this is not enough,” says Ms Thushari.

Management on diet
Garment factories however, maintain that they follow all national labour laws and are ethical employers. Factories also say that international markets have become more competitive and that their profit margins are now next-to-nothing because of recession cuts in export demand. Large scale salary increases under these circumstances is seen as commercially unviable, given the large number of workers in garment factories.

“What is important now is for us to work together to retain existing business and the labour force as well. Everybody has tightened their belts because the external environment has still not improved and global demand recovery will not really happen until 2011. So we have to work together to get round this,” said the Secretary General of the Joint Apparel Association Forum,(JAAF) Rohan Masakorala. The JAAF is the garment industry employer representative body.

The JAAF also says workers are not the only ones feeling the pinch. “Executive grades are also cutting down. In some big companies executive salaries have been cut down, bonuses, increments and allowances have all been cut because of the situation,” said Mr Masakorala. However, worker representatives maintain that workers need a decent wage increase this year and are preparing to campaign for it.

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