49% contribution from total export earnings:

Plea to consider plight of apparel workers in 2007 Budget

by Surekha Galagoda

It is time the Finance Minister considers the plight of the workers in the apparel sector in the forthcoming budget since they contribute close upon 49% of the total export earnings. The budgets of 2005 and 2006 have provided assistance to the employers in the apparel sector while proposals have been forwarded to provide assistance in the forthcoming budget.

Though the budgets of 2005 and 2006 provided assistance to the employers nothing was provided to the workers who toil hard to bring the foreign exchange to the country, said Coordinator of Labour section Member of AlaRM Ashila Niroshi Mapalagama.

Therefore, the Finance Minister should consider giving some assistance to the garment workers and the private sector as they contribute a larger share to the GDP.

Coordinator ALaRM P.B. Gowthaman said that Sri Lanka's Apparel sector is vital for the success and stability of the country's economy. The industry accounts for 62% of the industrial exports and 49% of the country's total export earnings.

However, this vital sector needs a revision of its salary standards as the success of this industry relies heavily on the 275,000-strong workforce. He said there is a strong bias in the industry for young unmarried migrant women who comprise the factory workforce.

The prospects and living standards of these workers remain grim throughout their working lives in this lucrative industry. Everybody should know that the garment industry cannot be sustained on low wages.

According to the report "living wage" 50% of the workers are "iron deficient" which results in low output and productivity. Therefore, it is essential that they get a good wage which will result in increased output and productivity.

Vasantha De Silva said that in any country there is a life span for the industry and it depends on how competitive each country is. Increasing salaries will lead to inflation and therefore it should be linked to productivity.

Ajith Dias representing the manufacturers said that the living wage should be more than what the AlaRM suggests but at present it is not possible to make this payment due to the many constraints the apparel industry face.

He said that according to statistics Sri Lanka will earn US$ 3 billion in export revenue from garments this year and most exporters are trying to make a 4% return which when calculated is US$ 150 million and if the increase is implemented will amount to US$ 160 million. How can you justify it? he asked.

He also asked the labour department officials as to what steps they intend taking about manufacturers who default EPF and ETF contributions.