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8 February, 2010
An ICEM affiliate in Sri Lanka, the Free Trade Zone & General Services Employees’ Union, is celebrating a successful outcome in its campaign for higher wages in the country’s private sector. Until now, wages in the private sector have been governed by the Board of Investment of Sri Lanka (BOI), but with no dialogue or input from workers’ representatives. The pay gap between private sector and public sector workers has grown considerably in recent years.
An unskilled public-sector employee can expect a monthly salary of Rs.11,630 (€78), whereas an unskilled private sector employee’s minimum wage is Rs. 6,700 (€43). The trade union pressure placed on national government by the campaign moved the Ministry of Labour to raise private-sector minimum wages up by Rs. 2,500.
Workers turn out in white to protest low wages
The announcement by Labour Secretary Mahinda Madihahewa signals the government’s intent to raise minimum wage across all of the country’s trading zones, thus angering business leaders which have grown accustomed to nominal raises each year, or outright restrictions on increases in certain regions.
There was no adjustment to salaries in 2009 as employers rejected BOI recommendations, citing the financial crisis. The BOI withdrew its recommendation in 2009 in the face of an adamant employer response against any increase. In 2009, there was no involvement from workers’ representatives in the process.
The handing over of a 20,000-strong petition
The BOI’s recommendation for salary adjustments in 2010 was for a raise of Rs. 500, limited to factories in a small geographical region. The campaign put forth by the Free Trade Zone & General Services Employees’ Union distributed this information widely and mobilised workers against the low and limited salary. Twenty-thousand signatures were collected protesting the salary revision. These signatures were presented to the office of the Minister of Labour.
The Free Trade Zone & General Services Employees’ Union campaign focused on educating workers throughout Sri Lanka on the issue, and it included a “white dress” protest in which workers came to work dressed in white. Media attention to the protest highlighted the workers’ message and increased pressure on government. The campaign has succeeded with the significant salary hikes, across all private sectors and all regions, and the ICEM congratulates the Sri Lankan union on the campaign.