Trade unions won a major battle over contract workers being frequently used in permanent positions, with employers and also President Mahinda Rajapaksa agreeing with the union position, but a senior Treasury official is standing in the way of its implementation.
Unions have been complaining that there is a growing tendency by the private sector to substitute core staff with contract workers, as it costs less.
Subsequently, after lengthy discussions and consultations, employers and the President had agreed to discontinuing this practice, and changing the Wages Board Ordinance to bar core positions being filled by contract workers.
“However, now we are told that, even though the President and the employers are agreeable to change the rule, a senior official of the Treasury has objected on the grounds that any change would affect foreign investment,” President- Progress Union, Palitha Athukorala told the Sunday Times.
He said the matter was discussed at this week’s National Labour Advisory Council (NLAC) meeting, where it was agreed that when Labour & Labour Relations Minister Gamini Lokuge and veteran trade union leader Leslie Devendra meet the President on Tuesday (10) in connection with another matter, these objections by the Treasury official would also be raised.
A senior Treasury official, when contacted said, he was not aware of the subject, but said, in general, restrictive labour conditions have always been a bone of contention for foreign investors.
The unions have been agitating over this issue for many months, after which, a Labour Reforms Committee, a sub-unit of the NLAC (which comprises workers, employers and the government), was appointed to study the matter. The Committee, which included a representative of the Employers Federation of Ceylon, on behalf of employers, recommended that core worker jobs should be permanent staff positions and not contracted labour.
Core workers are, for example, sewing machine workers or production supervisors in garment factories, while security guards, canteen or cleaning staff are contract positions. When the global financial crisis hit Sri Lanka more than two years ago, many permanent workers in companies were either discontinued, re-employed as contract workers, or given attractive retirement packages.
“Minister Lokuge told the NLAC that the President had agreed to the change, and appointed a Cabinet sub-committee to look at the NLAC sub-unit recommendations. However, at the same meeting on Tuesday, Mr Devendra said, Minister Susil Premajayantha, who was chairing the Cabinet committee, told him that a Treasury official had raised objections over changing the current practice,” Mr Athukorala said, adding, “It is ironic that, we have a situation where an official supersedes the President.” |
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