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| Sunday, 29 August 2004 |
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TUs welcome amended formula by Ananda Kannangara Several leading mercantile sector trade unions yesterday welcomed the amended compensation formula which proposed a 48 months salary compensation package for private sector workers who face termination of employment in the event of sudden closure of their workplaces. The Ceylon Federation of Trade Union (CFTU), the Sri Lanka Nidahas Sevaka Sangamaya, the Inter Company Employees Union (ICEU) and the Ceylon Workers Congress are some of the trade unions that welcomed the formula. Labour Relations and Foreign Employment Minister Athauda Seneviratne officially announced the details last Monday. CFTU, General Secretary D.W. Subasinghe said that workers who lose their employment due to sudden closure of institutions could now breathe a sigh of relief since the request made by his union was fulfilled by the Government by granting 48 months salary package and another 12 months additional salary, to be paid from an insurance scheme. He said that no Cabinet or Parliamentary approval is necessary to bring the proposals to be effective other than by a Gazette notification. ICEU, General Secretary Wasantha Samarasinghe said that introducing a new compensation formula is a timely action taken by the Government, thinking of the future prospects of workers who lose their employment at short notices, following closures. "Under the present formula these workers will be able to draw a substantial amount for their future," he said. Meanwhile CMU, General Secretary Bala Tampoe said that their union is opposed to the formula because he wanted the Government to focus attention on both workers as well as employers. "There are possibilities that a large number of mercantile institutions are to retrench the excess staff under the cover of this proposed compensation formula," he said. Bala Tampoe stressed that these proposals cannot be made effective unless a Bill is presented in Parliament. Quoting the case of 595 workers at the Bata Shoe Company who lost their jobs, Ceylon Bank Employes Union (CBEU) General Secretary M. R. Shah said that the present Minister has no moral right to bring amendments to the compensation formula and patch up the whole issue. "Apart from our union a large number of other trade unions are highly concerned about these proposals and therefore the President, the Labour Minister and the Labour Department must immediately call the representatives of trade unions, employers' federations and employee organisations to discuss further about this matter," he added. |
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