Secretary General/ Chief Executive Officer Shiham Marikar of the National Chamber of Exporters (NCE) the only Private Sector Chamber which exclusively serves Sri Lankan Exporters met Dinesh Gunawardena, Minister of Skills Development, and Employment & Labour Relations recently at the Minister’s office to discuss regarding the issues faced by the exporter community related to their employment arising out of the COVID 19 Pandemic.
It was brought to the notice of the Hon. Minister that prevailing labour laws in Sri Lanka are heavily in favour of employees and prevents flexibility with regards to employment of labour in crisis situations. During the discussion the need of revising some laws and regulations to overcome the current situation was emphasized.
The SG/CEO Marikar informed that the Exporters makes a vital contribution to the national economy, by earning valuable foreign exchange and providing employment. They are now faced with an unprecedented issue due to the cancellation of orders by buyers even for goods that have been made ready for shipment in some instances. Furthermore, some buyers are requesting discounts for goods already shipped whilst some others even refuse to pay and accept shipments that have arrived at their destinations.
Under these circumstances, in order to sustain their labour force, the exporters seek government’s assistance with regard to the payment of even a basic minimum wage for a period of 3 months.
Representing the Exporters of the Country, as the “Voice of the Exporter”, NCE submitted the following proposals to the Hon Minister seeking government assistance under these circumstances, in order to sustain their labour force.
1.Due to very low order values, some exporters may only require a part of the labour force in production of particular order. In such situations to permit the exporter to use only the required number and pay wages on a piece rate or terms agreed with the employees.
2.Due to very serious cash flow problems, it is recommended the suspension of payment of EPF by both employers and employees for a period of 6 months.
3.At times of servicing an order with reduced number of labour, will necessitate to work extended hours, in addition to the normal shift. In such situations it should be permitted to continue within reasonable hours of work without engagement of the next shift of employees to be cost effective.
4.In order to catchup on lost time and to stay ahead of deliveries during these challenging times it may require working on Holidays and Sundays excluding religious holidays such as Poya days. This to be permitted with only payment of required dues and without giving any lieu -leave.
5.Exporters should be encouraged with legislation to operate productivity base incentive schemes at their places of work to have better outputs and increase employee take-home wages.
6.If subcontracted production is required the exporter should not be held accountable for any labour issues at the subcontractors’ place of work.
Further it was emphasized that the Entrepreneurs and Business Leaders in the Export Sector are fully aware of the challenges and difficulties faced by the Government on many fronts due to the COVID 19 Crisis and their good intentions in submitting the above proposals are to help the Government ensuring their own survival, to achieve quick economic revival of the Country. This no doubt will be of paramount importance to the Government to avoid a worst crisis economically.
It was stressed that the Business Leaders of the Export Enterprises have with difficulty maintained their workers during the month of March. However many of them, including some large Enterprises are confronted with the need to lay off workers from the end of April, as there are no revenue streams for their sustenance.
If this happens, given the stringent Labour Regulations of the country, possible actions of the Labour Unions, and protests by the workers themselves, could lead to a catastrophic outcome which will be a severe setback to the country.
In order to avoid such a situation, the NCE pleads with the government, to move the relevant state authorities, to initiate immediate action to resolve the prevailing Labour issues.
This should be a priority as we are only a few days away from the end of April, with no meaningful effort in sight to resolve these vital issues, which involve the livelihoods of many.
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