Jaqalanka Limited and Free Trade Zones And General Services Employees Union (FTZAGSU)

Press Release - Review Meeting 24th June 2004

The dispute that arose over recognition of the Free Trade Zone Workers Union (FTZWU) (1) by Jaqalanka Limited was successfully settled after a roundtable discussion held on the 14th and 16th of October 2003. This meeting was convened by the Centre for Policy Alternatives (CPA) on behalf of the Fair Labor Association (FLA). The Agreement reached was introduced to the management and employees on the 22nd of October, at a meeting held at the Jaqalanka Limited factory.

According to the agreement, Jaqalanka Ltd management accepted the FTZWU as representing the concerns of its members at Jaqalanka Ltd. In return, the FTZWU agreed to call off the international solidarity campaign that was waged against Jaqalanka Ltd.

At the request of both parties the Commissioner General of Labour appointed Dr. P. Saravanamuttu, Executive Director of CPA as an Authorized Officer in terms of section 3(I) (c) of the Industrial Disputes Act No 56 of 1999.

During the past eight months the parties met regularly with the facilitation of CPA, to resolve issues and discuss ways forward. At the meetings the following have been achieved -

• Internal Grievance Procedure (IGP) - As per the agreement, the Jaqalanka Limited IGP was revised. One of the significant changes made was to accommodate representation of trade union members by the branch union.
• Modalities of Access and Organizing Rules - A set of practical arrangements for Branch Union activities was agreed upon, on the understanding that they would not interfere with the Company's production and productivity. Some of them are procedures for meetings, providing a notice board for the Branch Union etc. They have been implemented since December 2003.
• Training and Capacity Building - Selected employees from both management and operational levels participated in awareness raising programs on freedom of association. All categories of employees will continue to undergo training on freedom of association and industrial relations in future.

Throughout the process both parties appreciated the good faith and commitment demonstrated by the other. Hence the few minor issues that arose during the past eight months were speedily resolved to the satisfaction of the parties. Both parties believe that the trust gained and the confidence built will help strengthen the process going forward.

At today's meeting to review the progress made, the parties agreed that the process had worked successfully and pledged to continue to work together in partnership.

Harin Fernando
Joint Managing Director
Jaqalanka Limited

Daniel Ortiz
Joint Managing Director
Jaqalanka Limited

Anton Marcus
Joint Secretary
FTZAGSU

1: Name changed to Free Trade Zones And General Services Employees Union (FTZAGSU) since February 2004