Timeline of events in Jaqalanka Ltd dispute

End of March 2003
Prior to 2003, the workers of Jaqalanka Ltd received a festival bonus each year during the April New Year holidays, since the beginning of the factory's operations in 1978.
But in 2003 management told workers they could not pay the festival bonus because the company was operating at a loss. Workers did not accept this because there was no change in the manufacturing of goods between last year to this year and workers believed that the company was in a position to pay the bonus, of at least the amount they paid last year (one month's salary).
The Workers Council raised this issue with the management and had discussions but all the attempts failed.

4th April 2003
On 4th April 2003 as the company continuously said they were not going to pay even a single cent as a bonus for this year, most of the production sections stopped work after lunch and refused to go back to work.
The same day evening workers met with Free Trade Zone Workers Union (FTZWU) officials at the union's Katunayake centre and workers decided to join the union and seek union intervention to settle the dispute.
Further, the workers decided to go back to work to give the union the opportunity to discuss with management and arrive at an amicable settlement.
About 220 workers (of a total of 400 workers in the factory) joined the union and formed a branch union and elected their office bearers.

5th April 2003
When the 220 workers reported for work on 5th April 2003 management refused to take them back. Workers wrote a letter to management requesting them to take them back and settle the dispute. In that letter they mentioned they had become members of the FTZWU.

The union wrote a letter to the Commissioner of Labour and Industrial Relations about the dispute about the non offer of work, when workers reported for work on 5th April and requested him to intervene. A copy of this letter was sent with a covering letter to the Assistant Commissioner, Negombo, who is in charge of FTZ factories, and requested him to intervene.

7th April 2003
On 7th April when workers reported for work as usual, management asked them to sign a letter of condition, which stated that they wanted to get their pardon, and admitting that they were engaged in an illegal strike. Workers refused to sign this letter. There was discussion among the workers and management, and the conditions were amended. Workers signed a letter, which said if there was any inconvenience caused because of their action they regretted it. But there was no admission of illegal strike or seeking pardon. Management agreed to take the workers back from 8th April 2003.

9th April 2003
By letter dated 9th April the union informed management of the office bearers of the branch union and requested them to deal with the branch union.

Workers worked in the factory until 11th April, and from 12th to 20th April the factory was closed for the New Year. The workers reported for work on 21st April 2003.

10th April 2003
Management paid workers ¼ salary bonus for the New Year festival, not the usual full month's salary.

23rd April 2003
By letter dated 23rd April the Assistant Commissioner of Labour, Negombo informed both parties to attend a discussion on 7th May 2003 at 11.15am in Negombo to discuss matters mentioned in the union letter dated 5th April 2003.

5th May 2003
On 5th May 2003 as advised by the union, the branch union officials submitted a letter to management asking for leave to attend the meeting on 7th May at the Negombo Labour office. When the branch union handed this letter to the Human Resources Manager she told them that the company has found out the particulars about the union's general secretary, Anton Marcus, stating that he is a thief and he is the one who wants to continue this union. She said the company would not give leave to the workers, and that management was not going to participate in the meeting either.

6th May 2003
On 6th May 2003 the union wrote a letter to Assistant Commissioner of Labour, Negombo and complained about the statement of the Human Resource Manager and according to that statement management does not recognise the union and asked for a referendum to be arranged under the provision of the No.56 of 1999 Industrial Disputes Amendment Act. Further the union requested the Assistant Commissioner of Labour to advise management to prevent such action because it is a violation of the provision of the abovementioned act. This letter was handed over on 7th May 2003 when the union representative went to the discussion in Negombo.

7th May 2003
On 7th May 2003 when the union representative went to the discussion in Negombo, management allowed three office bearers to come to participate, but handed over a letter asking for a postponement of the discussion because their lawyer was not available on that day. When the branch representative handed over the letter, dated 6th May 2003, to the Assistant Commissioner of Labour, he made some remarks against the union and said: "Do you know the law related to this? And it seems the situation is getting is worse."

The Assistant Commissioner had already informed management about postponing this discussion to the 21st May 2003, before the union representatives met with him. The union representative requested for another postponement as the general secretary of the union was going abroad on that day. The Assistant Commissioner said "your general secretary blamed us on the TV, and then he has gone abroad." The next discussion was postponed 29th May 2003.

22nd May 2003
At about 10.30am, Mr Arjuna Mahendran, Director General/Chairman of the Board of Investment (BOI) of Sri Lanka, together with Katunayake officers of the BOI, visited the factory and insisted members resign from the union (see letter attached 28th May 2003.)

23rd May 2003
The Assistant Commissioner of Labour, Negombo visited the factory and had a discussion with selected workers from each section and told them not to work with outsiders and try to settle these matters directly with the management.

The union made a complaint by letter dated 28th May 2003, addressed to the Honourable Minister of Employment and Labour Mahinda Samarasinghe, regarding the behaviour of the Director General/Chairman of the BOI, and the Assistant Commissioner of Labour, Negombo.

To date, there has not even been an acknowledgment of this letter.

28th May 2003
On 28th May 2003 the union wrote to the Director General/Chairman of the BOI about his visit and his insistence of members to resign from the union.

29th May 2003
On 29th May 2003 both parties were at the discussion before the Assistant Commissioner of Labour, Negombo. The lawyer who appeared for the company, appreciated the letter dated 5th April 2003 sent by the union and said that the letter was intended to discuss matters with management to arrive at an amicable settlement, so therefore the management was willing to discuss with the union these matters. But to do that, the union must prove that they are qualified for the collective bargaining negotiations as mentioned in the No.56 of 1999 Industrial Disputes Amendment Act. The union representatives said they were willing to do that.

Then both parties to agreed to meet again before the Assistant Commissioner on 16th July at 10am after the referendum to discuss the matters mentioned in the 5th April letter. In the meantime both parties agreed to prevent any disturbance during this period, to maintain the status quo until the meeting of 16th July 2003.

3rd June 2003
By letter dated 3rd June 2003 the Director General/Chairman of the BOI replied to the union's letter dated 28th May 2003 denying that he insisted workers should resign from the union membership (see attached letter).

4th June 2003
The Assistant Commissioner of Labour informed both parties that as requested by the union letter dated 5th April, the referendum should be held within 30 days from 6th June 2003. The general secretary of the union, talked to one of the directors of Jaqalanka Ltd, Dinesh Senaratne, over the telephone on 9th and 12th of June to agree for a date to hold the referendum. Since there was no agreement, the union proposed two dates, 26th June 2003, or 27th June and wrote to management by letter dated 13th June 2003 with a copy sent to the Assistant Commissioner.

13th June 2003
By letter dated 13th June 2003, the union responded to the Director General/Chairman of the BOI's claims that he did not insist workers should resign from the union membership (see attached).

18th June 2003
On 18th June 2003 at 2pm both parties met the Assistant Commissioner of Labour to decide the date and venue of the referendum. At the discussion both agreed to hold a referendum on 9th July 2003, at the canteen of the Jaqalanka factory. The Human Resources Manager who attended the discussion handed over the list of the workers who are eligible for voting to the Assistant Commissioner and a copy of which handed over to union representatives. Further, she agreed to put this list of names into the factory, which the workers can read and if there was any objection then they can raise them according to the regulations of the referendum.

According to the regulations related to the referendum the entitlement of the voting rights will be only the workers who have worked minimum of 90 days before the date of the referendum. But when the union read the list of 442 names provided by management they found it consisted of about 40 workers who have resigned, or been dismissed from the company.

18th June 2003
On 18th June 2003 after the discussion at the labour department, the chief manager of the packing and ironing section called the workers of those sections and told them that if they are going to vote for the union he is going to resign, and if they love him don't vote for the union.

19th June 2003
19th June 2003 Jaqalanka Ltd directors Mr Hiran Fernando and Mr Dinesh Senaratne called the workers of quality control, cutting and packing sections and asked them: "Why are you paying Rs20 for the union? Are you going to support outsiders or are you going to support the people who look after you for 25 years as your parents?"

20th June 2003
By letter 20th June 2003 the union made a complaint to Assistant Commissioner with a copy to the Minister of Labour, Director General/Chairman of BOI, Commissioner of Labour and the company complaining about the abovementioned unlawful actions of the management. They also made complaint that the company had not yet put up the list as agreed on 18th.

To date there has been no response from anyone to this letter.

21st June 2003
Jaqalanka directors Mr Dinesh Senaratne and Mr Hiran Fernando, and the human resources manager called workers of C and D sections and told them that this union has closed down five factories and they do not reply to these allegations.

By letter dated 21st June the union wrote to Mr Dinesh Senaratne and told him the union has not closed down any factory, but if you say so, can you please provide the names of the factories and on what grounds they closed down because of our union. Further the union said this type of statement disturbs the relationships that we are trying to build between your company and our union and requested him to prevent such action.

To date there has been no reply.

23rd June 2003
The general secretary of the union met the Commissioner of Labour and Industrial Relations in Colombo and told him that the company had not put up the notice of list of names of those eligible for voting, and the union found some of those listed had already resigned. They requested him to advise the Assistant Commissioner of Labour, Negombo to take action. The Commissioner of Labour talked to the Assistant Commissioner of Labour, Negombo over the phone in the presence of the general secretary and advised him to go to factory and tell them to put up the notice, but don't mention about the names. The Commissioner assured the general secretary the Assistant Commissioner would visit that day afternoon itself. But he in fact did not visit until the 24th.

24th June 2003
The Assistant Commissioner visited the factory and handed over a new list of workers entitled for voting with his stamp, which consisted of only 402 names. The list was also handed to the union branch secretary. When the branch secretary told of the harassment and threats caused by management, the Assistant Commissioner said to make a complaint to the police station.

24th June 2003
Director Dinesh Senaratne called the branch secretary and assistant secretary and assistance treasurer and warned them against being involved with the union.

25th June 2003
At about 10.15am director Dinesh Senaratne called the workers in the A section where the branch secretary and assistant treasurer are working and shouted at the assistant treasurer and told her she would be struck down by lightning because of her involvement in the union and verbally abused the general secretary of the union. He also said if for some reason workers are going to lose their jobs you three have to take the responsibility, you should ask the general secretary to offer the work to the workers. Further, if the union is going to win in the election, definitely they are going to close the factory and the secretary, and the assistant secretary and assistant treasurer should take the responsibility.

On the same day afternoon Senaratne called all the workers in the A section to his room and asked them to take pardon from him and promise they are not going to do any of this work (union) in the future and that there is no need to have an election.

26th June 2003
Management of the cutting section Mr Mahial and Mr Santha Jayakody called the branch secretary and asked him to give a letter resigning from the post of the union. When the branch secretary told them he can't take the decision his own, and had to have to have a committee meeting, they asked him to call the meeting. The branch secretary called the committee members and they decided not to resign from the union, but to go ahead with the election. They informed the managers Mahial and Jayakody, and asked them to inform the director Dinesh Senaratne when he came to the factory. When Senaratne came he called the committee members, the branch secretary told him no one is going to resign from the union. Then the director threatened each one and asked them - do you want an election? The assistant secretary said yes I want. And then verbally abusing her, asked her to go aside - and told her you are the person spreading all the problems in the factory and you should resign, now itself. He used abusive language. The assistant secretary said she didn't want to resign, but if the management wanted they could dismiss her. Senaratne said he knew how to dismiss her, and he would do it beautifully and asked all three office bearers to give their resignation. Then he called all the workers of the factory that day evening and asked them, who wants the election? Workers kept silent because of the threats they are facing. After that management circulated a letter prepared by them saying that they are resigning from the union and the posts of the union and they don't want an election, they want to work with the management peacefully. They signed this letter, without any pressure. The management got the signatures from the workers by duress, but still most of the office bearers of the union, and a considerable number of workers have refused to sign. The letter was addressed to the Assistant Commissioner of Labour, Negombo.

29th June 2003
When Jaqalanka workers met at the Katunayake union office a suspicious person came by on a Honda CD-90 motorbike (No.46-642) and came inside the union office and enquired about a person, whom nobody knew. When the organisers questioned him, he went. In the meantime workers got information that director Dinesh Senaratne was waiting outside the office, nearby. The motorcycle was traced back to ownership by Jaqalanka International.