Security siren

By Uditha Jayasinghe

Companies at the Katunayake Free Trade Zone (FTZ) have called on the Government to provide tight security and strictly maintain law and order today for 50, 000 employees to return to work and resume business.

What was described as “unprecedented” in recent years Katunayake FTZ was closed for three days with work crippled after clashes between trade unions protesting against the proposed Private Sector Pension Bill and Police that injured around 200 workers on Monday.  

The appeal for security was made by the manufacturers at a meeting with the Board of Investment (BOI) that manages the FTZs, as well as at a separate meeting with VVIPs in the Government yesterday.

“Be it from security forces or Police we want strong protection because around 95% of our workers are begging for safety,” the head of one of Sri Lanka’s top garment factories told the Daily FT last night.

“So far the government has not taken decisive action; but we want them to maintain law and order and allow people to work. We are not against workers’ rights but there is a procedure to follow and that has not been done,” another alleged.

The desperate calls were officially conveyed in the afternoon but trade union and worker tensions were reportedly rising with the news that one of the protestors, 21 year old Roshan Shanaka succumbed to his injuries at the ICU of the Ragama Hospital last night. He was reportedly shot by the Police. The death was likely to ratchet up union anger and spark larger protests.

A leading investor in the FTZ insisted that many factory officials were disgruntled by the protests that had led to closures and delaying of exports.

“Ours is a very time sensitive industry. If the shipments don’t make it to the clients in time there are problems. We have to pay around US$ 2 extra for each garment, more money than it takes to make them, to make sure they reach buyers on schedule,” he said adding that the workers are worried that they will be forced into striking by unionists.

The Biyagama FTZ, which was the scene of protests on Monday was relatively calm with kudos being given by manufacturers to the BOI management that controlled the situation by refusing police entry to the zone.

 “The protestors gradually dispersed and we have ensured that they are kept aware of the developments regarding the Pension Bill,” a factory official said pointing out that less than 100 engaged in strikes unlike in Katunayake.        

In related developments Inspector General of Police (IGP) tendered his resignation yesterday as contention between the government and trade unions continued.  

The President’s Office announced that the IGP Mahinda Balasuriya had handed over his retirement papers to President Mahinda Rajapaksa and asked for leave prior to retirement. His retirement will come into effect from 18 June. A Chief Inspector and Inspector of Police from the Negombo Police Station have been arrested over the clashes.

In the meantime trade unions continued their protests for a fifth straight day but shifted their demonstration to Colombo. Over 200 people participated at a protest organised in front of the Fort Railway Station at midday and pledged to continue until the government withdrew the controversial Private Sector Pension Bill.

Amarapala Gamage, leader of one of 26 unions representing about 500,000 workers which have united under the Joint Trade Union Alliance told the gathering in Fort that the postponement done by the government was insufficient and if the Bill is not withdrawn with a formal declaration in Parliament the unionists will stage a continuous strike in all FTZs in the country.

“We have several demands. We want the government to immediately release arrested protestors, take legal action against the police officers who shot at demonstrators and present a transparent report of the investigation to the public,” Trade Union Alliance Chairman Saman Rathnapriya told the Daily FT. Unionists allege that the government is preparing to put all blame on the police and relinquish responsibility.

Inspector General of Police Mahinda Balasuriya was due to retire on 18 June, but gave formal notice and requested immediate leave until then, the president’s office said.

A Reuters report said the Defence Ministry told media Balasuriya’s early exit was a “historic display of public accountability” but union leaders and analysts dismissed it as a ploy to deflect worker anger over a new pension scheme that prompted Monday’s violence.

Inter company Employees Union President Wasantha Samarasinghe, which led the demonstrations, accused the government of delaying the death announcement until it had made token moves with the police.

“They waited until the IGP resigned to announce the death. He has been hooked up to machines since the day he was shot. This demonstrates the government’s double standards,” he told Reuters.

He said police officers with loudspeakers were telling workers on Wednesday night not to report to the Katunayake free trade area, the site of Monday’s violence which has been closed since Monday and was due to reopen on Thursday. The violence prompted 26 trade unions to band together and vow continuous strikes until the police responsible were punished, and the government scrapped a private pension proposal opposed by employees and employers alike.

Two police inspectors were taken into custody by the Criminal Investigation Department on Wednesday and accused of firing at protesters, police spokesman Prishantha Jayakody said.

 Kusal Perera, an analyst with the Centre for Social Democracy in Colombo, said the police moves were designed to stem the rising union anger.

“Balasuriya was anyway going to retire and this government has used him as a scapegoat to come out from the debacle that happened and to clean its hands,” Perera said.

Strikes could cripple Sri Lanka’s $50 billion economy at a time when the government is doing its best to boost sagging foreign direct investment despite enjoying a third full year of peace, and generate record growth of 8.5 percent in 2011.

Sri Lanka’s unions have traditionally wielded big influence in the Indian Ocean nation’s political scene, but Rajapaksa has largely sidelined them after asking union leaders to hold off on demands until the government won a quarter-century civil war.

Victory against separatist ethnic Tamil rebels came in May 2009, and unions are increasingly demanding Rajapaksa deliver the promised wage and benefit increases.

However, the government is under pressure to trim its big public sector wage bill under the terms of a $2.6 billion International Monetary Fund loan.

The proposed private sector pension scheme would make workers wait longer to access their savings and add yet another cost to employers, who already pay big benefits in a nation with one of the highest numbers of annual paid off days in the world.