Wage wars

Tuesday, 21 December 2010 00:01 - - {{hitsCtrl.values.hits}}

Salary challenges are brewing in the export processing zones, with trade unions representing around 450,000 workers demanding a 30% salary increase for the new year. The issue will be discussed at the National Labour Advisory Council meeting scheduled to be held today.

A combination of trade unions including the Free Trade Zones and General Service Employees Union, Progress Union of Sri Lankan Apparel Workers and Apparel-Industry Labour Rights Movement (ALARM) met Board of Investment (BoI) officials last Wednesday (15) afternoon to discuss the possibility of the 30% salary increase.

Previously the BOI had held meetings with manufacturers of the export processing zones while around 3,000 apparel workers in the Katunayake Zone demonstrated for the salary increase on Friday (10).

Free Trade Zones and General Service Employees Union Secretary-General Anton Marcus told the Daily FT that the agreement was for the workers to be given a salary increase of Rs. 500, but given the current cost of living, this had proved to be inadequate.

“Previous discussions with former BOI Chairman Dhammika Perera agreed to give workers a 15% salary increase for 2010, but this was never fulfilled. Therefore we feel that we are justified in making this request.”

He also believes that the salary increase should include BOI enterprises outside of the export processing zones.

Marcus added that the three-hour meeting on Wednesday concluded with the parties agreeing to present the issue before the National Labour Advisory Council (NLAC), which is a tripartite panel under the Labour Ministry, for deliberation.

Accordingly, the Secretary of the Labour Ministry has already been requested to present the contention at the next NLAC meeting, which will be held today. During today’s discussions the fate of the pension scheme proposed by the 2011 Budget will also come under discussion.

“We are lobbying for this salary increase under the Better Pay, Bigger Profit with BOI sharing or 3Bs project initiated by the BOI,” he said.

The BOI releasing a statement said: “At the outset of the discussion held on with the representatives and BOI officials on the wage revision recommended for zone employees, the Chairman of the BOI explained that having considered an undertaking by the manufacturers’ associations in the BOI zones, the BOI has issued a circular on 1 November 2010 recommending a wage increase of Rs. 500 for the year 2011, with effect from 1 January 2011 for the employees in all BOI enterprises located in EPZs as being practiced from the inception of the BOI. Further, BOI explained that the reasons for the BOI involvement in this process is to persuade the BOI investors to grant agreed and affordable wage increases for their employees annually promoting gain sharing. This was in addition to the minimum rate of wages determined by the respective wages boards.”

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.