New wage structure after proper study - Minister Lokuge

By L.S. Ananda WEDAARACHCHI

Wages already recommended by the Wages Boards are being scrutinised in the context of current economic conditions by an expert committee. The Government will introduce a new wages structure after studying the issues, said Labour Relations and Productivity Promotion Minister Gamini Lokuge in an interview with the Sunday Observer on the forthcoming May Day.

Excerpts of the interview:

Q: The Government will hold this year’s May Day in grand style. What is your Ministry’s role in organising the UPFA May Day?

A: The UPFA May Day rally will be held at the Colombo Town Hall under the patronage of President Mahinda Rajapaksa. The rally will begin at around 11 am at the Campbell Park, Borella with the UPFA constituent parties taking part. ‘Rata Ekata’ will be the theme at this year’s rally.

Q: What is the significance of this theme?

A: Since terrorism has been eliminated and peace reigns supreme today, it is time for all sections of the population to eschew religions, linguistic and cultural differences and consolidate in the development of the motherland under the theme of ‘Rata Ekata’. One country and one nation.

Q: What was the response of the UPFA trade unions at the discussions to organise May Day activities?

A: They were keen to bring their supporters to Colombo in large numbers to display the strength of the UPFA Government. The May Day rally will display the achievements of peace and inter-racial harmony among Sri Lankans and national consolidation.

Historic victory

Q: The May Day marks the historic victory of the working class. The Government has a paramount duty to work towards the betterment of the working class. What are your future plans as Labour Relations Minister in this regard?

A: The previous governments have done a lot to improve the lot of the working class. May Day was declared a holiday by the MEP government led by premier SWRD Bandaranaike in 1956. The Employees Provident Fund (EPF), Employees Trust Fund (ETF) and statutory leave for workers are some of the important benefits enjoyed by the working class today as a result of these progressive measures adopted by successive governments.

Q: What steps have been taken to address today’s burning issues such as low salaries that largely affect the working class?

A: We have succeeded in ensuring industrial peace in the country and a peaceful environment in the workplace. Undoubtedly, collective agreements signed by employers and employees has led to this situation. We always encourage peaceful and productive dialogue between employers and employees. The collective agreements have helped increase productivity and worker satisfaction.

Gratuity payments

Meanwhile, the Labour ministry has taken measures to solve all issues related to the payment of gratuity of former workers in the Ceylon Transport Board by end-May. The first batch of gratuity payments will be provided on May Day as a symbolic move.

The ministry was able to obtain funds from the Treasury and we have reserved Rs. 2,100 million for this task.

A series of grievances highlighted by the employees is the failure on the part of employers to remit EPF contributions to the authorities. The Ministry has created a mechanism to find out details about companies or employers not paying EPF and ETF.

The Labour Ministry has decided to take strict action against EPF and ETF payment defaulters.

The Labour Department has expedited raids on such companies and the culprits will be punished.

The EPF and ETF deposits could be withdrawn on the completion of 55 years by a male and 50 years by a female.

NIC number

The National Identity Card number will be used for the EPF in future in place of different EPF/ETF numbers as in the case of used by different employers.

This program has already commenced country-wide. Around 60 percent of employees in the Western Province has already received new EPF numbers.

Another area of concern is manpower supply agencies or employment agencies. Most of these agencies do not remit EPF contributions to the authorities. Job security and low salaries are other grievances of the employees selected by such employment agencies. The manpower supply agencies provide employees to private sector companies and public sector organisations as well.

These workers are also entitled to EPF and ETF benefits apart from other benefits. The conduct of the manpower supply agencies is being studied by an Expert Committee.