Employers’ Federation comes out of the woods
The private sector representative body, the Employers’ Federation of Ceylon (EFC) professional staff and its trustees are now working things out between them as a key appointment to the EFC from outside had become a bone of contention literally bringing matters to a head.
Sources at the EFC told the Business Times on Wednesday that the process of reconciliation had commenced about two weeks ago where the professional staff had proposed initially that the current Director General step down from office.
Trustee and Council member Sunil Wijesinha said that since it is an internal dispute they do not want to make any comments to the Business Times. EFC Chairman Vish Govindasamy was also not available for comment.
EFC Director General (DG) Mangala Yapa told the Business Times that this is an internal matter and did not wish to make any comments.
Established originally to deal with issues relating to trade unions its head is required to have a knowledge of industrial relations with the ability to conduct meetings with the trade unions and negotiate with them; providing advisory services; and representing its 700-odd members at Labour Tribunals and meetings with the Commissioner General of Labour. This is gained through years of experience while serving at the same establishment.
In the past the DG was selected from within the EFC and appointed by the Trustees but this year in June the appointment was made of a person outside of the establishment.
Sources point out that an engineer cannot spearhead the EFC where a lawyer is required as this has been evident to even others present during meetings held at the National Labour Advisory Council (NLAC).
Industry representatives participating at these meetings told the Business Times they found that there was no proactive involvement by the newly appointed DG.
Informed sources said head hunted for the job the present DG is learnt to be making his own decisions with little interaction with the professional staff and is said to be literally locking himself up in his room during working hours. Professional staff has refused to recognise his authority.
Members are said to be fast losing confidence in the EFC as a result of which some of them would send privately- hired lawyers to represent them like at the Justice Ministry where labour law reforms are currently under discussion.
Lack of guidance from the top is clearly evident as the head is required to provide this to both the professional staff and the EFC members. For instance when new laws are enacted a proper interpretation is needed to be made that will help both members and staff have an understanding of such developments.
It is also learnt that the trustees have allegedly been blamed for trying to take more control over the finances of the federation that is said to have reserves of over Rs.1 billion.
The EFC has been going through some interesting times, with the appointment of a head of Human Resources bagging a remuneration package above the amount of that of the professional staff, sources pointed out.
However, following strong objections by the professional staff, the appointment had been withheld. This action by the DG had “totally demoralised the professional staff,” sources noted.
The trustees appoint the DG following ratification from the Council and the Chairman and Vice Chairman are elected by the general membership and recommendation from the Council.
Most previous DG’s had left prematurely since they had been picked by the International Labour Organisation (ILO) that clearly indicates the level of esteem held by the EFC’s cadre in the international fora.
The position of the DG was created in 1995 to ensure that there is a better understanding between the secretariat and the council but over the years the powers of the DG have eroded. The confidence of the trustees in the DG had gone down to such an extent that they assumed it is their right to make the decisions without any consultation with the DG that has finally resulted in a crisis today.