25th February 2001

INVESTIGATION - The return of red power

• The return of red power
• Right to trade unionism
• The woes of workers
• Steps before strike

The return of red power

The JVP spreads its trade union wing amidst government allegations of sabotage

By Tania Fernando, Hiranthi Fernando and Chandani Kirinde

The JVP which has emerged as a powerful third force in Sri Lankan politics, is now moving strongly into the trade union field with its numbers booming during the past few years amidst government allegations that the party is posing a threat to the national economy.

In 1997-1998, 48 unions were affiliated to the party but this figure rose to 99 in the 98/99 period. Today there are 202 trade unions affiliated to the party.

JVP parliamentarian Vijitha Herath explaining the phenomenal rise of the JVP trade union wing said that after the party's show at the general elections last year, several private sector employees requested it to start trade union branches of the party's Inter Company Employees Union.

With its ten parliamentarians, the party has emerged a force to be reckoned with. Last week, a visiting European Union representative and the EU's Ambassador in Sri Lanka called on JVP General Secretary Tilvin Silva — an indication that the party has gained recognition among the donors too.

But this and the party's growing trade union strength have apparently caused ripples in the government circles.

During a meeting with a delegation of the Federation of Chambers of Commerce, President Kumaratunga warned that she would crack down hard on politically backed trade unions, which were causing industrial unrest. The warning was obviously aimed at the JVP though it was not named. The warning came in the wake of complaints by several BOI-approved companies which believed that their workforce had been infiltrated by a third force.

But Prime Minister Ratnasiri Wickremanayake was more pointed when he charged that there was a political nexus between the UNP and the JVP. The state media also have launched a campaign to allege that the UNP and JVP have joined together to destabilise the economy by inciting strikes.

Mr. Herath denied these allegations. According to him, there has been no marked increase in strikes but more publicity has been given to the recent strikes. The unrest in the companies are caused by the depressed economic situation, he said.

"To keep their profit levels intact in the face a worsening economic situation, employers have increased their exploitation of the work force while cutting down on facilities granted to them," Mr. Herath said.

He said the spiralling cost of living was the major cause for labour unrest. "The government Salaries commission has recommended that with each unit increase in the Cost of Living Index, salaries should be increased by Rs. 5. On this basis, salaries should have increased by Rs. 7000. But we are asking for an increase of Rs. 5000."

The JVP staged a countrywide picketing campaigns last week, demanding Rs. 5000 pay hike. It is reported that some 100,000 workers joined these demonstrations.

Commenting on the chamber chief's complaint to the President, Mr. Herath said many private companies had not recognized the party's trade unions though they had met the minimum legal requirement of having a membership of 40% of the work force.

"We have 13 companies with 100% membership of the workers but they still do not recognize the unions," Mr. Herath said. "In two such companies, we have asked for an election and although the employers have given their consent, the Labour Commissioner is delaying the process," he charged.

Labour Commissioner Mahinda Madihahewa, dismissing this charge said that they promoted trade unionism as it enables workers to take up their grievances with the management through a representative body.

On the JVP's main demand of Rs. 5,000 pay hike, we spoke to economist Nimal Sandaratne. He is of the view that there is some justification for a wage increase given the rise in the cost of living in recent months. But he said this should be obtained through negotiations between the employees and the employers instead of resorting to trade union action which would only aggravate the economic problems in the country and cause further hardships to the workers.

Meanwhile according to statistics released by the 400-member Employers Federation of Ceylon, there were nine major strikes in 1998, 13 in 1999 and eight last year.

However, within the first two months of this year, there have already been six strikes in the member firms.

An EFC official said that though they did not see the trend as alarming, they were disturbed by the increasing incidence of agitation by the work force. He also said they were viewing with concern the activities of the JVP's Inter Companies Union, which had launched a membership drive in private sector companies. Officials of companies which have been hit by strikes, also say they feel that the JVP is on a campaign to disrupt the economy. One official said his company had seen no labour unrest in its ten year existence but now the workers motivated by the JVP were demanding perks. "There was no need for them to go on strike, we could have discussed the matters and settled it, but no one came forward. They launched the strike without any prior warning," an official said.

Gamini Weerasinghe, an employee of a company, where more than hundred workers have struck work, said the company did not provide them with any welfare facilities and those who tried to assert their right to these basic facilities had been sacked..

Most of the companies, where the workers have gone on strike, have resorted to issuing letters of warning taking cover under the Emergency Regulation No. 41(1), promulgated to maintain essential services.

However, the Labour Commissioner said it was illegal for companies to resort to the Emergency Regulation.

According to the regulation, essential services means any service which is of public utility or essential for national security or preservation of public order or to the life of the community including any department or government or branch thereof which is specified in the schedule.

The regulation further refers to other services which includes "all services of any description, necessary or required to be done in connection with the sale, supply or distribution of any article of food or medicine or any other article required by a member of the public". The loophole lies in the description of other services, which companies are making use of to terminate the employment of strikers without notice.

Mr. Herath said that often strikes stemmed from minor problems. These could be resolved without resorting to extreme measures, if the concerned authorities mediated in time, he said.

Labour Commissioner Madihahewa also holds a similar view. He said labour disputes should be settled amicably with a give-and-take policy, without resorting to strikes or dismissal of labour.

He said that last year 13,500 labour disputes had cropped up. About 95% of these disputes had been settled by conciliation. Extreme measures were harmful to both employer and employee, he said.

Right to trade unionism

According to the Industrial Disputes Act amended in 1999, no employer can prevent a workman from forming or supporting a trade union, or dismiss or take disciplinary action against any workman or office bearer of a trade union.

An employer cannot also force an employee from joining or refrain from joining a trade union. They also cannot refuse to bargain with a trade union which has in its membership not less than 40% of the workforce on whose behalf such trade unions seek to bargain.

The act has empowered the Commissioner of Labour or an officer authorized by him to verify this.

The woes of workers

Workers in a number of private sector companies have resorted to strike action in recent months. Some of these have been settled, while others are still continuing. The following is a list of companies where workers have resorted to strike action in the recent past.

Daintee Foods Ltd.

Workers struck work on January 15, demanding a pay hike. According to the Inter Company Workers Union leaders, the workers here have not received any increment for 15 years and the compnay has not recognised the trade union. Some workers were arrested by the police. The head of the union has been interdicted. Workers say they have asked for a date for discussion but the Labour Department has not responded.

The striking workers say that on January 23, they received vacation of post letters justifying their action under Clause 41 of Emergency Regulations and declaring the work as an essential service.

Asian Cotton Mills

Some 120 workers are on strike since January 11. The personnel manager says a collective agreement was signed to settle a salary dispute but on January 11, the workers resorted to strike action..

The management issued letters of vacation of posts to the strikers,citing Emergency Regulations.

The management says the sacked employees could re-apply when the jobs were advertised but there was no guarantee of being selected.

MSH Packaging

Trade union officials say their union is not recognised by the management.The management has cut 15 minutes break allowed during the shift, as their response to the formation of the trade union in the company, the workers say. After a one-day token strike on this issue, letters of vacation of posts were issued to workers on December 18.

Rhino Roofing Products Ltd.

Workers struck work on September 6 last year. Apart from a wage increase, the main demand was for a first aid box. Letters of vacation of posts were issued to 265 workers on the same day.

Venture International – Kotmale

Workers went on strike demanding a Rs.400 pay increase that were given to private sector employees on a government directive.

Intercontinental Hotel

When the company was sold, the new owner took over only the land and the building and not the workers. An agreement was made between the former owners and the SLFP tradee union to pay compensation amounting to Rs. 33 million. A dispute arose regarding the compensation. The branch chairman is reported to have fled. Representatives of the Inter Company Workers Union say they did not have a union at the Intercontinental but workers came to them to form one because they were let down by their union.

Lanka Walltiles

About 220 workers were on strike for 62 days demanding a higher bonus. Fifteen workers were interdicted for picketing.

The strike was settled with their demands for the bonus and re-employment of the 15 interdicted workers being met.

Wonderlight

Inter Company Workers Union officials say that 15 workers were discontinued with no reasons given. Workers went on strike, demanding their reinstatement. The striking workers were issued letters warning that they would be sacked.

Wonderlight Chairman D. Hettiarachchi says the 15 workers were discontinued because their contract was over. He says the strike was illegal because no notice was given. About 110 workers were issued with letters.

The factory, which is now closed will restart on March 1, after recruiting new employees, the management says.

Steps before strike

The Labour Commissioner is the chief government official entrusted with the task of settling disputes between employers and employees. The commissioner has the power to inquire into matters of dispute and take steps he make think necessary with a view to promoting a settlement of the dispute.

Labour Commissioner Mahinda Madihahewa says he strongly believes that workers have their rights and if any disputes arise over these rights, they should be settled by fair and just manner.

He said the middle management was found to be the root cause to many labour disputes that had led to strikes while the top-level of management were often not aware of the problems until the damage was done.

Both employers and employees should follow the Industrial disputes Act to settle their problems, he said.

Commenting on the ongoing strikes at companies, Mr. Madihahewa said the management and employees had signed a Memorandum of Settlement, also known as a 12/1 settlement, with the Employers Federation of Ceylon, in his presence. According to this agreement, there is a procedure to be followed whenever disputes arise. Discussion should be held first with the management, then with the EFC if the company concerned is a member, and finally with the Labour Commissioner. After all these steps were exhausted, a 14-day notice must be given to resort to strike action which is the last resort.

Mr. Madihahewa said that he understood that the employees of these companies where strike action continues had not followed this procedure. "There should be attitude changes on both sides," Mr. Madihahewa said. "A new concept recognised by the International Labour Organization gives emphasis to 'Workplace Cooperation'. All newly industrialised countries such as Singapore have introduced concepts such as open door policy and bottom–up approach to encourage worker participation in decision-making. "When there are salary increases it should be tied up with increased productivity, otherwise, the company cannot survive. The interests of both parties, the employer as well as the employee have to be considered. There should be a give and take policy between the employer and employee for the workplace to flourish," the commissioner said.

Mr. Madihahewa said that under the Labour Department's Workers Education Programme, seminars were conducted for workers to explain to their rights and duties. "Social dialogue is most important to prevent wildcat strikes," the commissioner said.

Inside the glass house

Editorial/ Opinion Contents