John tells ILO General Assembly “Sri Lanka is moving in right direction”

Labour and Trade Union Relations Minister John Seneviratne last week told the 105th General Assembly session of the International Labour Organisation held in Geneva that Sri Lanka was moving in the right direction with regard to creating employment and developing human resources. Here are excerpts of Minister Seneviratne’s speech:

Honoured Madam Chair, Vice Chairs to the conference, your excellencies, ladies and gentlemen, it is a great pleasure for me to address this august assembly of the 105th session of the ILO, on behalf of the Democratic Socialist Republic of Sri Lanka, as the Minister of Labour and Trade Union Relations.

Reading the Report of the Director General for the 105th session 2016, I was impressed that it addresses a theme of key strategic significance to the ILO’s future direction of work which examines responsibilities and opportunities of ILO and its constituents in the implementation of UN 2030 Agenda for Sustainable Development.

In this process the framework towards ‘End to Poverty Initiative’ has already been established and ILO will move forward. The UN “General Assembly adopted 2030 Agenda for sustainable development to end poverty and hunger by 2030 and to combat inequalities among countries, preservation of human rights and promotion of gender equality and to ensure the lasting protection of the planet and its natural resources. I am glad to announce that Sri Lanka as an ILO constituent will make every endeavour to be an active partner of ILO in achieving these anticipated goals.

The DG’s report highlights ILO’s commitment on upgrading multinational system coherence and delivery capacities anticipating distinct advantages of decent work for sustainable development and for eradication of poverty. The other parallel policy coherence in the international system is promotion of social justice and fair globalisation. 

While commending the effort of ILO partnership and coherence, as a representative of a developing country I respectfully state that in this process we encounter many obstacles in achieving these goals. The natural hazards, economic crisis, disturbances of international trade, inflation, price fluctuations, etc. are some of them in the path of sustainable development and road blocks in streamlining of eradication of poverty. Amidst of all these we strive hard to maintain the on-going decent work programme. 

In this process Sri Lanka is moving in right direction; formulation of National Employment and Human Resource Policy followed by ratification of ILO Convention 122, Gender Policy, formulation of Sri Lankan Road Map for the Elimination of Worst Forms of Child Labour by 2015, National Road Map for Youth Employment, Livelihood Recovery and Employment Creation in Conflict and Disaster-Affected Areas, support extended towards strengthening of public employment services, National Labour Migration Policy for Sri Lanka, automation of labour administration system promoting fundamental principles and rights at work in Export Processing Zones (EPZ), undertaking translation of international labour standards in to domestic courts through labour tribunal and affiliate jurisdiction, etc. are a few examples of our effort towards the Decent Work Programme in collaboration with ILO Country Office.

To strengthen the Decent Work Programme, I am happy to announce that Sri Lanka in the first quarter of 2016 enacted two significant laws on wages geared to decent wage set up. The ‘National Minimum Wages Act No.3 of 2016’ is an historical event by which for the first time in the country mandatory national monthly minimum wage was fixed (Rs. 10,000) payable to all workers by all employers in the country. The other parallel law was the Budgetary Relief Allowance of workers Act No. 4 of 2016, under which a wage increase was stipulated uniformly applicable to all workers (a payment of monthly increase of Rs. 2,500).

Now I turn to the discussion taking place on decent work in global supply chain which is very important from a Sri Lankan point of view.           

As per the ILO Report IV for 2016, ‘global supply chains have become a common way of organising investment production and trades in the global economy’. Through the supply chains particularly some developing countries have created employment and opportunities for economic and social development. These chains however are complicated, diverse, fragmented, dynamic and evolving organisation structures. 

One may see that global chains attract Foreign Direct Investment and create employment in mass scale. Success to entry to global chain may heavily depend on foreign direct investment with a conducive environment for investment. 

Investors across the border have their business and trade network in dealing with most countries. However developing countries have to be mindful of negative factors intercepting direct investments such as collapse or losing of foreign direct investments, in reciprocal manner outside forces entering into the local labour market, disturbance or collapse in trade links, withdrawal or refusal of tariff concessions in which events the developing countries will be adversely affected. 

A common feature in global supply chains is that lead firms within their network can collaborate and control the standard of production across different tiers of production. Any breakdown of trade relationship with lead firms can perhaps upset the network of global supply. Hence it is rather premature to express any views positively as to efficient functioning of these chains for the protection of labour and in the interest of developing countries. Moreover the national labour legislation, regulation and jurisdiction and national interests might react to mainstreaming of global supply chains, causing the developing countries to be obliged to reconcile such a situation. 

The State in the promotion of decent work and good governance in the field of labour administration can promote compliance standards, strengthen labour administration and inspection system, grievance settlement mechanism and enforcement. Depending on the necessity, the Government obliges to bring new laws or revise laws and update them.

To facilitate and promote the Decent Work Programme with the objective of ending poverty and hunger, the employers, workers and trade unions can cooperate in giving effect to labour laws, set norms, and ratified conventions by Sri Lanka, and recognise and observe the fundamental principles of rights at work.

Sri Lanka respects and implements the principles of tripartite consultation. The National Labour Advisory Council (NLAC) now in operation over two decades is the national forum for consultation and we are to develop the same methodology at regional level. Sri Lanka having acquired the membership of ILO in 1948 to date plays an active role recognising and observing ILO standards. Having ratified 41 ILO Conventions including all core conventions, the country endeavours to give effect to them by law and spirit. The Government of Sri Lanka is geared to good governance adopting the principles of consultation, tolerance and compromise in every sphere of activity including the realm of labour administration.

In conclusion I commend and congratulate the ILO Office Staff in Colombo for their fullest cooperation extended to Sri Lanka with technical assistance in all avenues. I herewith send greetings of President of Sri Lanka Maithripala Sirisena, wishing successful and fruitful deliberations of the 105th session.