Reduced wages based on company performance

Discussions are underway to continue the tripartite agreement for three more months to allow companies to pay workers in the apparel and tourism sectors reduced wages depending on the companies that request it.

Joint Apparel Association Forum General Secretary Tuly Cooray said though they have not signed the document the government had agreed to grant permission to pay workers Rs.14, 500 or half their wages whichever is higher for those at home.

The only condition this time would be that the authorities have requested to provide a record of the companies that will be paying workers according to this agreement.

The extension, he said will be granted till December to the tourism and apparel sectors but it will have to go through the government approval process, Mr. Cooray said.

Previously the approval was granted to provide these wages as a blanket approval for all sectors but since the situation is improving authorities are requesting companies to provide information required to ascertain those that will be using this concession.

Meanwhile, FTZ Trade Union General Secretary Anton Marcus speaking with the Business Times said that they had not agreed to the extension since there was no merit in carrying out these measures.

He noted that the industry is now in a position to continue operations and that their production is similar to the previous years’ levels.

Mr. Marcus said that companies will have to apply to the Labour Department to grant the lowered wages to workers and based on workers’ interest and trade union participation at the factories the decisions would be made.

In this respect another review meeting will take place on Monday as well, he said.