Labour reforms to change rules of the game
Hot on the heels of the US tariffs, the Government is spearheading moves towards the implementation of labour law reforms that trade unions fear could result in easy hiring and firing amid other key changes.
Cabinet this week approved the implementation of the labour law reforms for which the Labour Ministry will now convene a committee on how to proceed, Labour Secretary S.M. Piyatissa told The Sunday Times Business.
The committee will be called on to draft the new regulations, he said but asserted that these new rules and regulations will be decided and agreed upon following a tripartite consensus.
Mr. Piyatissa said it cannot be done by force and noted that it will be brought before the National Labour Advisory Council (NLAC) when it next convenes on August 14.
Commenting on the new labour laws pertaining to hiring and firing, the Labour Secretary explained that in certain instances a relaxation of the labour laws have been proposed as in the case of the inability of the business operations to continue.
However, it was noted that these changes will be done in line with the international labour convention and will engage the trade unions in drafting these new laws.
However, these moves have drawn the ire of trade unions that express concern over the grave injustice these laws could cause to workers.
Free Trade Zone Apparel workers Trade Union General Secretary Anton Marcus points out that following the increase in tariffs to the US the apparel industry will be compelled to increase productivity.
“They can’t reduce production cost or electricity costs,” but employers have said they will need to increase productivity.
With the tariffs coming into play the industry is faced with the inability to market their apparel to the US on a level playing field. As a result buyers will compel the producers to share the burden of the new tariffs without passing it down to customers.
At a discussion on the impact of the US tariffs it was noted that countries like Bangladesh and Vietnam will jump at the idea leaving countries like Sri Lanka to face the burden of increased tariffs and high production costs.
In the face of these challenges legislation on new labour rules are likely to help the industry that trade unions say could lead to exploitation of workers.
Mr. Marcus pointed out that with no new recruitments allowed, the use of manpower agencies will be pooled to absorb workers and exert pressure on them.
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