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Protest at Katunayake Free Trade Zone against reduction of employee rights
View(s):Workers of a garment factory in the Katunayake Free Trade Zone staged a protest yesterday (13) afternoon against what they described as a reduction of employee rights linked to the recent 10 percent reduction in tariffs on Sri Lankan exports to the United States.
The demonstration, led by the factory’s Free Trade Zones and General Services Employees’ Union, was staged in front of the Katunayake Investment Promotion Zone’s main gate.
Union representatives allege the government had earlier announced that the tariff reduction would not affect employees. However, company representatives had informed the union that due to the new tariffs and additional discount demands from brand companies, the firm could no longer provide several long-standing benefits to workers.
Around 500 employees of the Katunayake Free Trade Zone participated in the protest. Pic by T.K.G. Kapila
These include annual excursions, sports festivals, year-end get-togethers, employee uniforms, and the customary New Year’s Day gift exchanges. The decision is expected to affect employees across all 11 companies under the group’s umbrella.
A discussion between the union and management on September 10 confirmed the withdrawal of these benefits for this year.
Union leaders described the protest as the first time the workers have taken action in direct response to the impact of tariffs.
Anton Marcus, Secretary of the Free Trade Zones and General Services Employees’ Union, addressing the protest, said that due to these tariffs, the prices of goods exported to the American market would rise, leading to reduced purchasing and lower sales, which in turn could result in factory closures.
He further stated that research conducted in this sector has shown that, as an ultimate consequence of this tariff policy, around 16,000 jobs in Sri Lanka’s apparel sector could be at risk.
He added that although unions had requested the government for an opportunity to discuss these tariffs, the government had failed to call trade unions for talks and was instead holding discussions only with employers.
Around 500 employees of the Katunayake Free Trade Zone participated in the protest.
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