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Enhancing productivity:
EFC proposes five-day working week
Lalin FERNANDOPULLE
The Employers’ Federation of Ceylon (EFC) has proposed a five-day
working week for companies which require such a working arrangement to
adjust to the drop in orders.
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The ceramics industry is highly energy intensive and the cost
constitute around 50 per cent of the total cost of production |
Director General, EFC, Ravi Peiris said the proposal was made to
provide flexibility for industries that need a shorter working week to
make enterprises more productive and ensure reduction of cost of fuel
and other overheads.
“This is a matter that has already been pursued and discussed at the
National Labour Advisory Council. A consensus could not be reached due
to few trade unions vehemently opposing the spread over without payment
of overtime”, Peiris said.
The Fuel Conservation Five-day Week Law No. 11 of 1978 addressed a
similar situation to enable companies to be productive and minimise
waste.
“Certain factories, especially in the apparel and other export
industries are facing reduction of export orders and as a result require
a shorter working week”, he said.
The EFC also proposed an amendment to the Payment of Gratuity Act to
ensure that an employee will be entitled to gratuity for which he will
need to work at least 180 days a year.
A large proportion of employees in the plantation sector work only
around 5-10 days a month and are entitled to the gratuity regardless of
their regularity at work during the year.
“Companies need to make provision for gratuity each year and this
creates a major financial impact on the company. The gratuity provision
for the last financial year of 21 Regional Plantation Companies was Rs.
1.9 billion”, Peiris said.
The Federation has called for a structured procedure for temporary
lay offs that enterprises may need to enforce due to the current
business environment.
“Enterprises may require laying off workers for a certain period with
or without pay”, he said.
The Termination of Employment of Workmen (Special Provision) Act
states that employers are required to seek approval of the Commissioner
of Labour in relation to a non-disciplinary termination in the absence
of the employee giving his consent for such termination in writing.
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