Financial Times

Wage hike demand looms in private sector
By Ruwanthi de Silva
Private sector trade unions are planning a campaign to win a wage hike to match that given to the public sector in the government budget for 2004. "The private sector workers haven't had any pay increase. Therefore they are planning to organize a campaign in order to obtain a salary increase," said Anton Marcus, General Secretary of the Free Trade Zone Workers Union.

The government announced in its budget that public sector employees’ salaries will be raised by 10 percent or Rs. 1,250, whichever is higher, with effect from January 1, 2004. This is expected to cost the government an additional Rs. 12.5 billion a year. "The entire private sector is involved in this campaign.We also sent protest letters to the labour ministry.

The main focus of this campaign. is on salary increases, labour laws and the statutory compensation package," Marcus said. He also added that the package is not favourable for workers who are already under the unemployment benefit scheme and which would further reduce what the workers are already getting.”

Gotabaya Dasanayake, director general of the Employers Federation of Ceylon said they have not received any request from the unions so far. "The unions are aware that the private sector has its own mechanisms in facilitating wage increases such as collective bargaining and performance related pay. These mechanisms would prevail."

Labour unions on estates are also planning to demand higher wages, increasing the burden on regional plantations companies which are already struggling to cope with high costs. "Plantations workers wages are due for review in June, but unions are already talking of an early increase," brokers Asia Siyaka Commodities said.

"If Sri Lanka is heading for elections then the wage negotiations would be further politicised, thus complicating issues for plantation companies coping with mounting losses. Historically, breakdown of wage negotiations have led to production losses."

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