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(Sept 2002)
Update on Sri Lankan workers struggle

Dear Friends,
In Sept. 2001 we first circulated an appeal to support the campaign for freedom of association and the right to organize and collectively bargain in Sri Lanka's free trade zones. That appeal included a request to send letters of protest in relation to the repression of union organizing at several specific factories operating in the free trade zones. Please find below an update on these cases, provided by the Free Trade Zone Workers Union (FTZWU) and TIE-Asia. For background on these cases, please see the original appeal on the CCC website

Also included below is an update on various relevant legislative issues, including an increase in allowable overtime from 100 hours per year to 60 hours per month (for more background on this see an earlier update on the CCC website

For more information on the update below, please contact FTZWU (e-mail:
ftzunion@diamond.lanka.net) or TIE-Asia (tieasia@sri.lanka.net) .


Update on current cases; Fine Lanka, Cosmos Macky & Skyspan Asia:
Some good news here:
  • Freedom of Association and the Right to Organise and Collectively Bargain disturbing developments;
  • Amendment to Overtime for Women legislation passed this amendment will have the effect of forcing women to work 60 hours of additional hours per month;
  • Other Labour law reforms
  • GSP (Generalized System of Preferences)

Firstly,
Thank you to everyone who has been active and sent letters. These have made a difference, as you will see in the brief outline below. This campaign has reached a crucial point with several key issues merging. This brief update is an attempt to keep you up to date with all of the rapidly unfolding developments.


Now for the good news,

The new local management of Sky Span Asia have agreed in writing to recognise the FTZWU Branch and meet each two weeks with the union to discuss workplace matters. This victory has been due to the pressure created by the Skyspan Branch union members, the continued campaign and pressure nationally supported by an international campaign including widespread public exposure of the failure of management to recognise the union.

And some more…

The management of Austin Gloves , who have repeatedly failed to appear before the Labour Commissioner for discussions, finally appeared and the Director has reluctantly agreed to deal with the FTZWU branch at the factory level. This remains to be tested.

And the bad news

Fine Lanka
We have been contacted by the Clean Clothes Campaign (CCC) to say that some letters sent in response to our appeal, distributed by CCC and sent to Fine Lanka and Cosmos Macky had been returned as “address unknown” or “not at this address”. We have followed this up and the addresses of both factories remain the same. However we are now asking that letters be sent to:

Fine Lanka
Fine Corporation
1120-1 Hwaquk-Dong Kangseo-Ku
Seoul
Korea

Or
CPO Box 6826
Seoul
Korea
+82 2 695 1137

Cosmos Macky
Samdo Trading Company Ltd
14-11 Yo Do Dong Young-Deung-Ku
Seoul
Korea

The FTZWU has reason to believe that Fine Lanka management is moving equipment out of the factory and auctioning cars in preparation for closing the factory. Workers were asked on the 7th September not to report to work until 10th September, payday.

The union also suspects the Cosmos Macky factory may also be preparing to close.

It appears that these factories are closing because they do not want to recognise the union.

Therefore letters to the Head office of these companies and the government are still critical (addresses above).

More bad news

Update on the freedom of association and the right to organise and collectivelly bargain.

While the two victories at the factory floor are to be celebrated the general trend with relation to freedom of association and the right to organise and collectively bargain has taken a disturbing turn for the worst.

The BOI (Board of Investment) of Sri Lanka agreed at ILO sponsored tripartite meetings to write to all factories under its administration informing them that ILO Conventions number 87 & 98 must be implemented along with the s.no.56 of 1999 of the Industrial Dispute Act (which states that a union must be recognised as a collective bargaining agent if 40% or more workers belong to the union).

The BOI has reneged on this agreement and has instead issued new guidelines. They have written to employers advising them that if the union has 40% or more members then it must be recognised as a bargaining agent, but if the union does not have 40% or more members then the Workers Council can become the collective bargaining agent. They claim that this amendment is compatible with ILO Convention nos 135 and 154.

The guidelines with respect to forming workers councils have also been changed, now the labour department (the independent third party) will not be involved in the election of workers councils and workers councils are required to be registered with the BOI, nowhere else.

The FTZWU and TIE-Asia are extremely concerned with these guidelines and position of the BOI, also supported by government as practically it means that unions simply will not be recognised and instead compliant workers councils who are not subject to any independent scrutiny will be. This is a violation of ILO Conventions no 87 & 98 (core and mandatory labour standards), along with the industrial disputes act and the constitution of Sri Lanka. Further it does not even comply with the weaker ILO Conventions nos 135 & 154.

It is our position that the original tripartite agreement to recognise unions, along with ILO Conventions no 87 & 98 and Sri Lankan labour law must be implemented first. If employers are left with a choice between unions or workers councils, they will choose workers councils, which do not comply with any conventions and violate core labour standards.

Changes to overtime legislation passed

On 13th August 2002 the Sri Lankan parliament amended the legislation on overtime, increasing the number of hours overtime that women will be forced to work from 100 hours per year, but not exceeding 12 hours per month and not exceeding 6 hours per week, to 60 hours per month or 720 hours per year. This new 60 hour limit is forced overtime as there is no wording in the amendment that all overtime is strictly voluntary.

The Parliamentary Debates (Hansard) Vol 143 No.5, 13th August, 2002, confirms that as far back as 2000 Marks and Spencer were active in lobbying through their suppliers the government to change the legislation to bring it in line with their codes and threatening to withdraw business from Sri Lanka if this was not done.

Both TIE-Asia and the FTZWU raised this issue nationally and internationally in various forums and campaigned against the proposed changes. In 2000 Marks and Spencer vehemently denied that they were behind these changes, accused us of false allegations and asked that we withdraw these allegations. We will now approach Marks and Spencer with the same request.

It should be acknowledged that due to the national and international campaigns on this issue, that many of you wrote letters in support of and took other lobbying actions that the amount of overtime per month was reduced from 100 hours per month (the original proposal of government) to the 60 hours per month. We are confident that with continued pressure and lobbying we succeed in further amending the legislation to make all overtime voluntary.

Shortly, we will be writing to Marks and Spencer and the Gap along with the various other multistakeholder codes organisations requesting that they strongly lobby the Sri Lankan government to further amend the overtime legislation to include that all overtime is entirely voluntary. So that the legislation is in line with their codes, workers human rights (ILO standards) and other internationally accepted standards.

Once these letters have been written we will be calling on friends internationally to exert maximum pressure on these buyers to have the legislation amended. It is not acceptable that codes are used to weaken existing labour law of a country and in this case, further, to breach ILO conventions forcing women to work extra hours of overtime without a choice.

Other labour law reform

The changes to the overtime law is part of a package of law reforms the IMF is insisting the Sri Lankan government meet as a condition for granting the latest stand-by loan due in October 2002. As a result the government has promised to pass 36 different pieces of legislation by September. The package includes:

  • 14 days notice of strike, currently there is no notice required;
  • Changes to the Termination of Employment Act, making it easier for workers to be dismissed;
  • Replacement of tripartite wages boards with productivity councils;
  • Reduction of holidays;
  • Along with land reform and further privatisation laws

GSP update

The FTZWU has submitted an application to the European Union GSP Status for Sri Lanka investigating team. This application supports the Sri Lankan governments application for an extension of GSP status for a 12 month period on the basis that within this period freedom of association and the right to organise and collectively bargain are fully implemented, that outstanding violations are resolved and labour law implemented. Documentation supporting numerous violations (Rights Denied! TIE-Asia & FTZWU Report) has been submitted. The ITGLWF has supported this approach and the documentation has been used in the ICFTU submission on the matter.

If you have any questions please contact either Anton Marcus or Kelly Dent.

Thanks for your continued support.

In Solidarity,

Anton Marcus
Secretary
FTZWU

Kelly Dent
Coordinator
TIE-Asia

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