 Sri
Lanka >> Human Resources |
|
|
|
|
|
 |
Developments in 2003 Labour Force, Employment
and Unemployment
• The Department of Census and Statistics (DCS)
commenced conducting the Quarterly Labour Force Survey
(QLFS) in the North and East in 2002 following the
availability of a sampling frame from the Census of
Population and Housing - 2001. Summary statistics
will be published initially and detailed estimates
will be published from the fourth quarter of 2003,
after rectifying errors arising from the sampling
frame.
• According to the preliminary information from
the QLFS conducted in the first quarter of 2003, the
unemployment rate, which was on a declining trend
from the third quarter 2002 and reached 7.5 per cent
in the fourth quarter of 2002, rose to 8.7 per cent
in the first quarter of 2003, which was the same as
in first quarter 2002. The significant decrease in
the unemployment in the fourth quarter of 2002 was
mainly due to the seasonal increase in employment
opportunities to expand agricultural activities in
Maha 2003.
Foreign Employment
• Foreign employment generation progressed steadily
despite the Iraq war during the first half of 2003
compared to the first half of 2002.
According to the Sri Lanka Bureau of Foreign Employment
(SLBFE), the number of departures for foreign employment
reported during the first half of 2003 was marginally
higher at around 91,500 than the 90,000 in the first
half of 2002.
The projection for foreign employment placements,
during 2003 is 213,000 in 2003 compared to 204,000
in 2002.
 |
• The share of female employees decreased marginally
to 63 per cent in the first half of 2003 from 65 per
cent in 2002. The share of unskilled and skilled labour
categories in total foreign employment placements increased
from 18 per cent and 22 per cent in 2002 to 21 per cent
and 24 per cent in the first half of 2003, respectively,
while the share of housemaids declined to 47 per cent
during the first half of 2003, from 53 per cent in 2002.
Labour Market Reforms
• In order to enhance the flexibility and predictability
in labour markets, the following labour laws were enacted
in April 2003.
I. Industrial Disputes (Amendment) Act No.11 of 2003
(IDA- 1)
II. Termination of Employment of Workmen (Special Provisions)
(Amendment) Act No.12 of 2003 (TEWA)
III. Industrial Disputes (Hearing and Determination
of Proceedings) (Special Provisions) Act No. 13 of 2003
(IDA- 2)
The Minister of Employment and Labour gazetted 31 December
2003 as the date for these enactments to come into effect.
• The additional infrastructure facilities and
staff required to facilitate effective implementation
of the new amendments for the resolution of industrial
disputes by arbitrators under the IDA and by the Commissioner
of Labour under the TEWA, are already in place.
• With regard to labour tribunals, the Ministry
of Justice, Constitutional Affairs and National Integration
has initiated action to formulate regulations under
the IDA. It has proposed the setting up of 16 new labour
tribunals and 12 temporary tribunals to clear the backlog
of labour cases.
• These laws will come into operation on 31 December
2003. In terms of the amendment to the TEWA to facilitate
computation of compensation payable to workmen, a formula
has to be determined by the Commissioner of Labour,
in consultation with the minister, and published in
the Gazette by way of an order. The Ministry of Employment
and Labour has been examining various options available
to determine the
formula.
Outlook for 2004
• Economic growth and investment expansion in
2004 are expected to create more employment opportunities,
especially in the private sector, enabling a reduction
in unemployment. However, with the activation of the
new labour laws from January 2004, some layoffs could
be expected in the private sector in order to increase
productivity and efficiency. Therefore, high economic
growth to create substantially more employment opportunities
will be necessary to successfully implement the new
labour laws with a minimum burden on society.
• Foreign Employment: With the signing of a memorandum
of understanding (MOU) with Malaysia in August 2003,
the Malaysian government has agreed to provide 50,000
new job opportunities to Sri Lanka citizens. The safety
and welfare benefits of migrant workers in Malaysia
are expected to improve. The clause in the MOU regarding
job protection of workers and the payment of compensation
to those who lose jobs due to illnesses, and in case
of sudden death could be considered most important among
the new benefits. Further, the existence of a job quota
to Italy and an MOU to be signed shortly with Jordan
and some others to follow with Middle Eastern countries,
are expected to boost foreign employment in 2004.
Legal
framework on labour policy
The history of state intervention in industrial relations
through law commences from about 1830 with the growth
of coffee and tea plantations industries in Sri Lanka.
Prior to that the master and servant relationship
was regulated largely by custom. The necessity for
cheap unskilled labour for the successful operation
of plantations, combined with a labour crisis in 1846,
led to an Ordinance in that year being introduced
to promote state-sponsored immigration of labour from
South India, resulting in the formation of the country’s
first regimented labour force.
Quarterly
Labour Force Survey2002
| Demographic
Information |
| Year |
| Labour
Force ('000) |
Participation
Rate
(%) |
Employed
('000) |
Unemployed
('000) |
|
| Total |
Male |
Female |
Total |
Male |
Female |
|
|
| 6001 |
3865 |
2136 |
51.9 |
67.7 |
36.2 |
5047 |
954 |
| 5877 |
3787 |
2090 |
49.8 |
64.8 |
35.0 |
5015 |
862 |
| 5808 |
3939 |
1869 |
48.2 |
65.2 |
31.1 |
4962 |
846 |
| 6032 |
3989 |
2043 |
49.1 |
65.3 |
33.1 |
5201 |
831 |
| 6079 |
4073 |
2006 |
48.7 |
65.4 |
32.0 |
5281 |
798 |
| 6106 |
4068 |
2038 |
47.9 |
64.4 |
31.7 |
5357 |
749 |
| 6242 |
4201 |
2041 |
48.6 |
65.9 |
31.6 |
5537 |
705 |
| 6266 |
4184 |
2082 |
48.7 |
65.7 |
32.0 |
5608 |
658 |
| 6634 |
4262 |
2372 |
51.5 |
67.4 |
36.2 |
6005 |
629 |
| 6673 |
4404 |
2269 |
50.7 |
67.7 |
34.1 |
6082 |
591 |
| 6867 |
4521 |
2346 |
50.7 |
67.3 |
34.0 |
6343 |
524 |
|
| 1990 |
| 1991 |
| 1992 |
| 1993 |
| 1994 |
| 1995 |
| 1996 |
| 1997 |
| 1998 |
| 1999 |
| 2000(b) |
| (b)
Average of first three quarters |
The
following is a structural outline of the scope of
local labour laws:
| Terms
and conditions of employment |
| The
Shop and Office Employees (Regulation of employment
& remuneration) Act |
| Wages
Board Ordinance |
| Social
security |
| Employees
provident Fund |
| Employees
Trust Fund |
| Payment
of Gratuity Act |
| Industrial
safety |
| Factories
Ordinance |
| Workmen’s
Compensation Ordinance |
| Industrial
relations |
| Industrial
Disputes Act |
| Termination
of Employment (Special provisions) Act |
| Trade
Union Ordinance |
| Employment
of women and children |
| Employment
of Women, Young Persons and Children Act |
| Maternity
Benefits Ordinance |
Present trends
At present the entire system of labour law is being
subjected to a process of reform amidst protest from
various quarters of the society. The government has
already liberalised restrictions on overtime hours
permitted on female workers and the need to obtain
the consent of workers to perform “over time”
has been removed providing more freedom to the employers.
In addition, a free hire and fire policy is also being
formulated and the payment of compensation is to be
done with a fixed formula of calculation based on
the years of service of each employee. These provisions
are to be effected through amendments to the existing
Termination (Special Provisions) Act and if implemented
can cause serious threats to union organising in the
private and export sector industries, as union activists
can easily be fired through victimisation, which may
discourage workers taking up the initiative of organising.The
government of Sri Lanka has also sought for the special
incentive scheme of the EU GSP in order to have free
access to the EU market. This application is still
under consideration. Similarly the government has
also made an application for the US GSP facility for
the export of apparels to the US market.
Both
these trade regimes put special emphasis on the observance
of core labour standards and Conventions No.87 &
98 in particular.In August 2002, the government signed
a Trade and Investment Framework Agreement (TIFA)
with the United States in order to gain free access
to the U.S market. This trade agreement also warrants
the observance of good standards of labour practices
on the part of the beneficiary country.Some key amendments
to the Industrial Disputes Act have also been tabled
before the Parliament with the aim of introducing
a new system named the “4:2:1 Formula”
which intends to conclude all unfair termination of
service applications before Labour Tribunals within
four months, Arbitration processes within two months
and involuntary termination of service applications
within one month. In principle expecting the resolving
of industrial disputes is a positive move and is welcome.
However its implications carry serious practical impossibilities
and inconsistencies and can affect the chances of
justice being meted out equally at all levels, apart
from disregarding some principles of the rules of
natural justice, which in fact is the live wire of
the labour adjudication system in Sri Lanka. The 4:2:1
formula was almost imposed and had little or no constructive
dialogue among the tri-parties of the process, which
left the point of view of organisations of workers
completely unincorporated in the exercise.In short,
at present the trend is more towards flexible and
liberal labour administration with less government
involvement. The government is also more interested
in promoting a separate set of labour guide lines
for special investment and export processing zones
to deal with industrial relations issues in them.
Finally, the notable feature of the present labour
administration system is the fast declining standards
in the labour standards enforcement aspect. Its now
gradually marking the beginning of a new labour unrest
among employed workers.
Trade
Union Structure
Historically trade unions were at the forefront of
the movement for independence prior to 1947, and unions
therefore fulfilled a political role at that time.
This tradition of political involvement has persisted
to this day, and political parties continue to seek
the support of the working population through trade
unions and also manipulate unions to achieve political
objectives from time to time. This made it easy for
political parties to penetrate unions and ultimately
dictate terms to unions, thereby making unions a mere
organ of the political machinery. This led towards
unions not being able to produce leaders from within
their own rank and for the creation of a culture of
political hierarchy appointing trade union leaders.In
fact the outsiders who have prepared to assume trade
union leadership have invariably been politicians,
who are able to highlight in Parliament the grievances
of the workers in a narrow political angle rather
than addressing the genuine interests of workers in
a more constructive manner within the context of the
current developments in the global workers’
movement. Despite the political involvement of trade
unions in Sri Lanka, strikes for purely political
purposes are not frequent and unions have never been
able to influence the political process. In most unions,
characteristics of union democracy are hardly visible
and the leadership is naturally being held by an aging
set of veterans who are not open for change or ready
to accommodate young activists.The independent unions
in Sri Lanka are relatively small and often work in
isolation. It is also difficult for them to get on
with traditional trade union organisations due to
ideological differences. Independent trade unions
are also visible in some areas of the private sector,
export industries and EPZs, banking sector, teaching
and in some areas of the public service. Some of these
independent # trade unions have also managed to establish
affiliations with GUFs.Local labour laws divide unions
as public and non public sector unions and these two
categories are not permitted to federate with each
other. The non public sector unions represent the
private and semi government owned business and industrial
enterprises. Sri Lanka does not have a national trade
union centre as seen in many countries, due to this
segregation of unions by law and the inherent political
identities of the unions.On the other hand it is common
to find several trade unions in one trade or industry
and in the same workplace. Many of the local unions
have affiliated themselves to GUFs. Most of these
unions that have established affiliations with GUFs
are direct wings of major political parties. These
unions are major affiliates of many GUFs.The growth
of trade unions in the fast growing private sector
or the export sector is sluggish and the traditional
politically-oriented unions have failed to adopt themselves
to the new challenges in these areas. The isolation
of the local union movement from the contemporary
developments of the global trade union movement also
has contributed towards these unions not being able
to cope with the emerging challenges.
Cooperation with GUFs
Over the last couple of decades unions have worked
together with many GUFs. Their activities have often
taken the form of seminars, training workshops and
regional conferences. The cooperation between local
unions and GUFs focusing on constructive issues of
workers rights, workers occupational concerns related
campaigns, action oriented programmes and activities
is very minimal.At present Sri Lanka is in the midst
of a labour reform process apart from the serious
lapses in the enforcement of statutes dealing with
basic workers rights and ILSs. Unions have failed
to bring such volatile issues to the notice of GUFs
and make GUFs involved in the campaign against such
arbitrary, unfair practices and policies. Similarly
GUF-Union cooperation has not expanded to cover areas
such as promotion of effective policy dialogues on
labour policy or worker rights issues.Some GUFs and
the ICFTU attempted to facilitate unions to raise
issues of labour standard violations in view of Sri
Lanka’s application to the Special Incentive
Scheme of the EU GSP. In spite of the preliminary
effort undertaken by GUFs, the local unions failed
to respond to these initiatives. It is mostly due
to the sheer ineffectiveness of unions and its inability
to effectively raise concrete issues at global forums
and muster the support of GUFs.On the other hand there
was also hardly any attempt in any of the GUF cooperation
with local unions, which sought to promote a democratic,
workers’ concern oriented transparent and accountable
union movement, which in fact is a serious issue pertaining
to most of the GUF affiliates in Sri Lanka.In spite
of all these failures to ensure the effective participation
of GUFs in to the local labour cause, affiliate unions
have always been a regular non-absent participant
of all international conferences, congresses, meetings
and forums organised by GUFs. The return trickle-down
effect of all these activities towards the improvement
of local trade union movement is still unforeseeable.The
affiliates are yet to address key issues that are
of workers’ interest such as ILSs, elimination
of unfair labour practices, lack of interest of the
government in enforcing principles of core ILO conventions,
etc. Therefore it certainly needs to go beyond the
traditional routine training workshops, seminars and
focus on key issues that concern workers. More emphasis
needs to be put on action oriented programmes, activities
and campaigns which can rationalise a positive and
concrete outcome.It is worth conducting an in-depth
study on the outcome of the past GUF union cooperation
in order to assess its real impact on the local trade
union movement as affiliates are still to take up
issues of ILSs and workers rights as key issues.Local
affiliates of GUFs.
IUF
Ceylon Mercantile, Industrial and General Workers'
Union (CMU)
Lanka Jathika Estate Workers' Union (LJEWU)
The Ceylon Estates Staff’s Union (CESU). |
ITF
The Ceylon Mercantile Industrial & General
Workers' Union (CMU)
Sri Lanka Nidahas Sewaka Sangamaya. |
Flight
Attendants' Union
Jathika Deevara Kamkaru Sangamaya (National Union
of Fishermen)
Sri Lanka Nidhas Rajaya Vurthiya Samithi Sammelanaya
(Sri Lanka Independent State Employees' Federation)
Air Traffic Engineering Officers' Association. |
IMF
Jathika Sevaka Sangamaya Metal Workers Federation
Sri Lanka Nidahas Sewaka Sangamaya |
PSI
Ceylon Workers Congress
Labour Officers' Association
Public Services United Nurses' Union
Sri Lanka Accountants' Service Association
Sri Lanka Nidahas Rajaye Vurtheeya Samithi Sammelanaya. |
EI
All Ceylon Union of Government English Teachers,
ACUGET
All Ceylon Union of Teachers, ACUT
All Ceylon Union of Teachers (Government), ACUT
(G)
Ceylon Tamil Teachers' Union, CTTU
Sri Lanka Independent Teachers' Union, SLITU |
IFBWW
National Estates Services Union
Ceylon Mercantile Industrial General Workers'
Union |
ITGLWF
Sri Lanka Nidahas Sewaka Sangamaya
The Ceylon Mercantile Industrial & General
Workers' Union (CMU) |
IFJ
Federation of Media Employees Trade Unions |
ICEM
The Ceylon Mercantile Industrial & General
Workers' Union (CMU)
Diamond Workers Union |
UNI
Sri Lanka Graphical Federation
Telecom Officers Union
United Post and Telecommunications Union (UPTO)
Federation of Media Employees Trade Union. |
|
|
|
| Sources |
|
|
