Exporters chamber urges state intervention in labour crisis

The National Chamber of Exporters (NCE), in order to avoid a major labour crisis vis-à-vis the COVID- 19 pandemic, has urged the Government, to move the relevant state authorities, to initiate immediate action to resolve the prevailing labour issues.

The chamber which represents exporters, submitted the following proposals to the Minister of Skills Development, Employment and Labour Relations, Dinesh Gunawardena seeking government assistance in order to sustain their labour force:

Due to very low order values, some exporters may only require a part of the labour force to produce a particular order. In such situations permit the exporter to use only the required number and pay wages on a piece rate or terms agreed with the employees.

Due to very serious cash flow problems, it is recommended the suspension of payment of EPF by both employers and employees for a period of six months.

At times of servicing an order with reduced number of labour, will necessitate working extended hours, in addition to the normal shift. In such situations it should be permitted to continue within reasonable hours of work, to be cost effective, without engagement of the next shift of employees.

In order to catchup on lost time and to stay ahead of deliveries during these challenging times it may require working on holidays and Sundays excluding religious holidays such as Poya days. This to be permitted with only payment of required dues and without giving any lieu -leave.

Exporters should be encouraged with legislation to operate productivity- based incentive schemes at their places of work to have better outputs and increase employee take-home wages.

If subcontracted production is required the exporter should not be held accountable for any labour issues at the subcontractors’ place of work.

These proposals were submitted to the Minister during a meeting with NCE Secretary General Shiham Marikar recently to discuss issues faced by the exporter community related to their employment arising out of the COVID-19 crisis.

“It was brought to the notice of the Minister that prevailing labour laws in Sri Lanka are heavily in favour of employees and prevents flexibility with regards to employment of labour in crisis situations. During the discussion the need of revising some laws and regulations to overcome the current situation was emphasised,” the NCE said in a statement on the meeting.

Mr. Marikar has informed the minister that exporters are now faced with an unprecedented issue due to the cancellation of orders by buyers even for goods that have been made ready for shipment in some instances. Furthermore, some buyers are requesting discounts for goods already shipped whilst some others even refuse to pay and accept shipments that have arrived at their destinations. Under these circumstances, in order to sustain their labour force, the exporters sought government’s assistance with regard to the payment of even a basic minimum wage for a period of three months.

It was stressed that exporters have with difficulty maintained their workers during the month of March. However many of them, including some large enterprises are confronted with the need to lay off workers from the end of April, as there are no revenue streams for their sustenance. “If this happens, given the stringent labour regulations of the country, possible actions of the labour unions, and protests by the workers themselves, could lead to a catastrophic outcome which will be a severe setback to the country,” the statement said.