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| Sunday, 13 March 2005 |
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TUs welcome Compensation Formula by Ananda Kannangara Several leading mercantile sector trade unions yesterday welcomed the amended Compensation Formula (CF) which proposed a 48 month salary package for workers who face termination of employment in the event of sudden closure of their workplaces. In addition to this, the CF will also grant workers an additional 12 months salary until they find other employment. According to Labour Department sources the new Compensation Formula will be gazetted on March 13 and will be operative from this date. The Ceylon Federation of Trade Union (CFTU), the Sri Lanka Nidahas Sevaka Sangamaya, the Inter Company Employees Union (ICEU) and the Lanka Jathika Estate Workers Union are some trade unions that welcomed the compensation formula. Labour Relations and Foreign Employment Minister Athauda Seneviratna officially announced the details of the amended Compensation Formula last week. CFTU, General Secretary D.W. Subasinghe said that workers who lose their employment due to sudden closure of institutions and face their employment terminations could now breathe a sigh of relief, considering the 48 months salary package and another 12 months additional salary, to be paid from an insurance scheme. 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 notice following the closure of workplace. "Under the amended formula the workers will be able to draw a sufficient amount of money," he said. Lanka Jathika Estate Workers Union, General Secretary Raja Seneviratne said that their union was satisfied with the proposals of the new Formula and mentioned that this Formula was not much applicable to them since many estate sector establishments were short of staff and they did not want to terminate the services of workers. Bank of Ceylon Workers Union, President Shah said that their union vehemently opposed the compensation formula on the grounds that such a formula will benefit many employers who are waiting to retrench excessive staff by giving them a little sum of money. "Let the Labour Commissioner to decide about suitable compensation, to be paid for their workers depending on the standing of their respective companies," he said. Shah also said that it was surprised to see how the JVP and the SLFP now support this CF, since both trade unions along with the Bank Union staged a massive demonstration against the CF opposite the Fort Railway Station during the UNP regime. "Apart from our union a number of other trade unions are highly concerned about these proposals and therefore relevant authorities must re-consider this formula before it is being implemented," he added. Meanwhile Jathika Sevaka Sangamaya (JSS) Secretary Palith Atukorala highlighted that their union too would not oppose if workers are given large sums of compensation at a time when they lose their employment, but reminded that only a section of workers would reap benefits from the new Formula. "The proposed CF does not highly benefit a large number of workers who
frequently face job terminations after being employed for short durations
such as 5 to 10 years at numerous mercantile establishments. |
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