The Supreme Court on Wednesday ordered John Keells Holdings (JKH) to immediately to pay compensation to the workers at Lanka Marine Services (LMS) following complaints that there was an attempt to stop payment or follow a different process.
The court bench headed by Chief Justice Sarath N. Silva also directed the Commissioner-General of Labour to make arrangements immediately for this payment subjected to conditions agreed upon by the company in court on July 21. The compensation payment came after the court in July overturned the privatisation of LMS.
The order follows a fundamental rights petitions filed by 23 LMS workers claiming that the company is trying to evade paying compensation and had made representations to the Labour Department asking it to stop payment as these employees are not entitled to compensation in accordance with the Nationalization Act of 1971 and they should be dealt under the Termination of Employment Act.
The court said that the workers had agreed to remove bunker oil and lubricant from the LMS tank farm at Bloemendhal to enable the company to vacate the premises on September 10 as the workers had been given an assurance that they will be paid compensaton and gratuity.
In an earlier ruling, the court arrived at a conclusion that the compensation package will be the formula adopted for VRS Scheme offered to the workers ( in July 29, 2003) based on the last drawn salary as at present. The Chief Justice noted that the company had been benefited by removing bunker oil and lubricant from the tank firm with the support of workers and they should be duly compensated.
The court ordered that this matter should be settled at the next meeting between the Commissioner General of Labour and LMS representatives on December 1. |
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