It is hereby agreed between the Free Trade Zones Workers Union (FTZWU) and Jaqalanka Ltd, Katinayake that the dispute over union recognition be settled on the following terms:

The FTZWU, for its part-

1. Seeks acceptance by Jaqalanka Ltd as the representative of FTZWU members concerns.

2. Agrees to respect the right of workers to form and joint, or not, organizations of their own choosing.

3. Agrees not to harass, victimize, discriminate against or otherwise subject non-union workers to any unfair practices.

4. Reserves the right to resume the international campaign if the good faith understandings reached herein are not respected by the company, subject to the union exhausting all procedures for the resolution of disputes set out in this agreement.

5. The FTZWU agrees to request that the complainants suspend their complaint (dated 21 July 2003 filed by the ICFTU and 22 September 2003 filed by the ITGLWF) to the ILO Committee on Freedom of Association pending the successful outcome of the review after six months as provided for in this agreement, which period will begin on the signing of this agreement. If the parties agree that the real progress has been made towards ensuring freedom of association at Jaqalanka Ltd the FTZWU will request that the complainants amend their complaint to remove all prejudicial reference to Jaqalanka ltd.

The Jaqalanka Ltd, for its part -

1. Accepts the FTZWU as the representative of FTZWU members concerns.

2. Agrees to respect the right of workers to form and joint, or not, organizations of their own choosing.

3. Agrees that no workers or union members will be harassed, victimized, discriminated against or otherwise subjected to any unfair labour practices.

Both the FTZWU and Jaqalanka Ltd agree-

1. An internal grievance procedure for Jaqalanka Ltd be formulated by the parties at a meeting to be convened by the CPA within 14 days.

2. That the future relationship of the practice to collective bargaining will be governed by the Industrial Disputes Act as amended by Act No 56 of 1999 or any decision mutually be agreed upon by the parties.

3. The parties will meet as and when the company or the union request a meeting to discuss grievances of union members. For this purpose the parties may call upon the CPA to facilitate the meeting.

4. Upon conclusion of this agreement the parties will make a written request to the Commissioner General of Labour to appoint an authorized officer in terms of section 3(1) C of the IDA to conciliate in the event of any deadlock in the internal grievance procedure.

5. No party issue any public declaration on the merits of a case while under review by the grievance procedure or the authorized officer.

6. The parties request training and capacity building on issues of freedom of association and sound industrial relations to be facilitated by FLA/CPA.

7. Both parties commit to a process of healing and reconciliation and to uphold the rule of law, including practical arrangement for the union activities, to be negotiated within seven days of the signing of this agreement. This will include the cessation of negative campaigning and publicity.

8. The company will exhibit a copy of this agreement in all three languages on the company notice board for the information of the workforce in order to publicize the understanding reached between the parties including the company's recognition of the right of workers to freedom of association.

9. The parties issue s statement to the workforce in order to clarify the principles of freedom of association and the understanding reached at the present meeting. The FTZWU, FLA and CPA will be present at the meeting, Jaqalanka Ltd and FTZWU request the Labour Commissioner to be present.

10. This forum meet in six months to consider progress made in implementing this agreement. The parties will, in the first instance, jointly request the Commissioner General of Labour to convene the meeting.

Signed at Colombo, 16 October 2003-

Signed. Signed.
Harin Fernando & Daniel Ortiz Anton Marcus (General Secretary)
On behalf of Jaqalanka On behalf of the FTZWU

Witnessed by-
Signed. Signed.
Palitha Atukorale Auret Heerden
Chief organiser -JSS FLA