The Employers Federation of Ceylon (EFC), representing big-time employers in Sri Lanka, has expressed concern over plans to strengthen ‘freedom of association’ and ‘collective bargaining’ regulations. The EFC made its concerns known in a letter last week to President Mahinda Rajapaksa referring to the last meeting of the National Labour Advisory Council (NLAC) chaired by [...]

The Sundaytimes Sri Lanka

EFC concerned over strengthening of ‘freedom of association’ and ‘collective bargaining’

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The Employers Federation of Ceylon (EFC), representing big-time employers in Sri Lanka, has expressed concern over plans to strengthen ‘freedom of association’ and ‘collective bargaining’ regulations.

The EFC made its concerns known in a letter last week to President Mahinda Rajapaksa referring to the last meeting of the National Labour Advisory Council (NLAC) chaired by the Minister of Labour and Labour Relations Gamini Lokuge where this matter was discussed.

“At this meeting, the trade union representatives once again insisted that amendments should be introduced to strengthen the Freedom of Association and Collective Bargaining in Sri Lanka. The proposed amendments, in our view, will not achieve this purpose but would only be counterproductive for industrial peace in our country,” the letter said.

The employers’ body noted that Sri Lanka, on the other hand, has a formidable body of labour laws some of which are guaranteed by the fundamental rights enshrined in our Constitution. Freedom of Association and Collective Bargaining are fully protected through provisions in the Constitution and the Industrial Disputes Act, it said.

The EFC said that if the unions wish to ensure strengthening of ‘Freedom of Association and Collective Bargaining’, what needs to be done is to create a proper enabling environment for workers, trade unions and employers to interact and engage with each other voluntarily. Such an objective cannot be ensured through the imposition of mandatory/penal provisions, it said. The federation noted that at the conclusion of the NLAC meeting, the Minister decided to consider the proposals of the trade unions and have separate discussions with the trade unions and the employers.

“We are extremely concerned about the introduction of any further amendments to the Industrial Disputes Act No.56 of 1999 which is already discriminatory of employers and is not an inducement for investment promotion in our country,” the EFC said.

It pointed out that the latest Global Competitiveness Report 2013 – 14 reveals that Sri Lanka has moved forward in its overall rankings and is placed at 65 out of 148 countries.

“This is encouraging. On the contrary, we are disappointed to note that in respect of one of the 12 pillars of the competitiveness namely, labour market efficiency, Sri Lanka’s ranking is 135 which in fact amounts to the worst ranking in respect of all pillars,” it said.
It urged the President to look into this matter urgently in the overall interest of the country.

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