Fears of termination of employment in garment sector allayed:

Private sector pensions in the offing - Minister Gamini Lokuge

By Ananda KANNANGARA

Labour Minister Gamini Lokuge in an interview with the Sunday Observer assured that the much awaited pension scheme for over 700,000 private sector employees will be initiated by the Government from its the next Budget.

He said the issue was discussed by several trade unions with the respective Governments in the past, but this time it will definitely be introduced under the Mahinda Chinthana concept. Asked as to how this scheme will be implemented, Minister Lokuge explained that the State sector employees pay 85 percent of their salaries at the time of their retirement whereas the private sector employees will get 30 percent from their last salaries as pension.

Minister Lokuge said unlike State employees, private sector employees are benefitted with several perks, like Employees’ Provident Fund (EPF), Employees’ Trust Fund (ETF), bonuses, cost of living, entertainment, transport allowances etc. and therefore should not make a big issue over the 30 percent pension.

“The announcement ought to bring a sign of relief to private sector employees since such a scheme is giving to be implemented for the first time in history of Sri Lanka.”

Minister Lokuge also spoke on the much publicised GSP issue and assured that 300,000 odd employees in the apparel sector will not lose their jobs under no circumstances.

The Government is prepared to face any eventuality.

Asked to comment on the speculation that the ongoing production in garment factories will be cut down followed with the termination of employment of many, he categorically denied such things. He said Sri Lanka produces high quality readymade garments and the countries in the European Union and the USA are ever ready to purchase our garments, without considering the cost.

“Under such circumstances our production will not be cut down nor the employment terminations of employment will take place,” he assured.

Asked about the welfare facilities, expected to be granted to 2.2 million EPF contributors, Minister Lokuge said the current EPF fund exceeds over Rs. 750 billion and a new scheme has already been implemented to pay 13.75 percent annual interest for EPF balances.

He said in addition, low interest loan facilities will be granted to EPF holders to construct houses and purchase lands, to start self employment projects and also for educational purposes of their children.

“We will also extend all these facilities to those in the North and the East by setting up new labour offices in Jaffna, Kilinochchi and Trincomalee shortly.

Minister Lokuge also made special mention about the unemployment problem in the North and assured that several industries including garment factories will come up in the peninsula.

Asked about the action to be taken against the large number of employers who do not subscribe to the EPF, the Minister said that out of the seven million employees, contributions for only 2.2 million EPF members have been received by the Department at present.

“We have deployed trained labour officials to crack down on errant employers who fail to adhere to labour laws”.

Pic: Vipula Amarasinghe