Lankan labour standards in line with ILO Conventions - EFC chief

by Gamini WARUSHAMANA

Industrial peace is a key to the economic development of a country. During the global economic crisis millions of workers lost their jobs or faced curtailment of benefits they had enjoyed earlier. How will labour issues impact on the recovery and what are the new global trends in employer-employee relations?

Here are excerpts of an interview with the CEO of the Employers Federation of Ceylon (EFC) Ravi Peiris, with the Sunday Observer:

Protection of labour rights is better in Sri Lanka compared to other countries.

We have a long history of labour protection legislations. In fact some of our legislation goes back to pre colonial times.

Sri Lanka has ratified almost all fundamental conventions of the International Labour Organisation (ILO) in relation to labour. Freedom of association, right to join a trade union are fundamental rights in our present constitution.

Our labour legislations also promote and secure collective bargaining of employees. In fact it encourages making collective bargaining mandatory in instances where the union has more than 40% representation.

This was introduced by an amendment to the law in 1999. Sri Lanka is a unique country that has this kind of legislation.

In some of the countries in the region there are specific legislations to restrict TU activities, especially in Free Trade Zones (FTZs).

However, labour regulations in Sri Lanka are applicable to every employee including companies in EPZs.

Therefore, we can confidently say that over the years the Government of Sri Lanka has put a formidable framework to ensure labour standards in line with ILO conventions.

However, having a framework in law is one thing and putting it into practice is another.

EFC, the principal employers' organisation in the country dealing with employment issues, has been in existence for over 80 years and has made firm/conceited efforts to promote collective bargaining with the objective of attaining industrial peace at the workplace.

EFC negotiates with many trade unions that are affiliated to different political parties.

We are successfully maintaining a healthy relationship with trade unions, entering into agreements on behalf of the employees of almost all the trade unions irrespective of their political affiliations.

There are approximately 50-60 collective agreements being renewed or signed afresh in a particular year. However, there are obstacles and inhabitations on the part of employers to enter into collective agreements with trade unions.

One significant obstacle has been the lack of trust on the part of the employers whether trade unions are genuinely interested about the welfare of the workers. Some of them feel that they are destructive and have different agendas to pursue.

In some instances inter union rivalry and multiplicity of unions have contributed to employers shunning unions.

Therefore if we are to promote freedom of association, recognition of unions and collective bargaining, we need to have a new industrial relations culture.

Unions should demonstrate that they are genuinely interested in not only the welfare of workers but also the security of their employment to sustain the business of the enterprise.

This trend is increasingly evident in some countries especially in Latin America.

Countries such as Brazil where the collective bargaining process involves issues relating to securing employment rather than benefits, especially after the global economic crisis. This was revealed at an ILO meeting held in Italy last week. However, trade union membership is declining all over the world including Sri Lanka.

The main reason is that the business world has changed dramatically over the years.

Secondly, employees have realised that unless they acquire relevant knowledge and skills to market themselves effectively no other third party is able to secure their employment.

Especially workers in the knowledge economy who are highly skilled do not require any other organisation to speak for them.

Their qualifications, skills and knowledge speak for them.

Unfortunately in Sri Lanka this development where employees give emphasis to improve their skills and knowledge cannot be seen.

However, there has been a change in the attitudes of trade unions. Most workers do not accept anything just because their leaders say it.

The 'herd instinct' is no longer common. Although it may be prevalent in a very few instances.

Our employers have also realised that the best approach to maintain a healthy working relationship with workers is to have a mechanism that enable constant dialogue and communication.

This kind of mechanism within the organisation pays a lot of dividends.

In May 2010 EFC held a symposium on success stories of companies in facing an economic crisis.

Six companies presented their stories and explained how they faced the challenges of the economic crisis.

The learning points which ran through the entire fabric of these stories were

*A clear focus on both customers and the workers

*Need to "work than talk" by top management

*Constant direct communication with employees by top management.

*Employee engagement and empowerment in finding solutions for problems.