Trade unions attached to the National Labour Advisory Council says while there is no mention in the budget about any relief to a vast mass of workers engaged in the productive and service sector of the economy, relief continues for company owners (capitalist class) since 2006.
“This time too while ignoring the workers in the productive sector of the economy the government has granted various concessions to employers to enhance their profit,” the trade unions said in a letter to President Mahinda Rajapaksa, who is also Minister of Finance.
The 2012 budget has effected a 3% depreciation of the rupee which the working people and the common man have begun to feel, the adverse impact of this measure.
By the devaluation of the rupee the price of all goods and services are bound to increase. Further, the pre-budget increase on diesel, kerosene and other fuel adds to the burden of the people, it said.
“You have further widened the minimum wage gap between the public and private sector employees. The present minimum wage in the private sector is Rs. 6,900 . Added to this is the Rs.1,000 Budgetary Relief Allowance of 2005 bringing the total to Rs. 7,900.
You are aware that in the public sector whilst the minimum wage is Rs. 11,730 an allowance of Rs. 5,850 is added to it and with the 5% increase in public sector wages in 2010 and the 10% increase granted in the 2012 budget the total comes to Rs. 19,339. Accordingly we see a gap of Rs. 11,439 between the public sector and private sector minimum wages,” the letter added.
It said that the working (class) people whether they belong to the public sector or private sector are essentially consumers who have to access the same market and put up with escalating prices. They have to maintain a decent minimum standard of living.
The unions urged the government to provide a Budgetary Relief Allowance of Rs. 5,000 to offset the falling wages as a result of the 3% rupee devaluation; and to close the gap between the public sector/private sector minimum wages and raise the minimum wage in the private sector to Rs. 12,500.
The letter said according to the Household income and expenditure survey 2009/2010 conducted by the Dept. of Census and Statistic (DCS) a sum of Rs. 15,500 is required to be set aside for food expenditure only for a 4-member family. This constitutes 35% of the earnings which means such a family will require an additional Rs. 29,000 to meet other essential expenditure.
Therefore a family of four will require a sum of Rs. 44,500 to meet living costs, it said. |
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