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Minister Mahinda Samarasinghe

Speech delivered by Mahinda Samarasinghe, Minister of Employment and Labour, at the inauguration of the workshop on "Economic and Trade Related Consequences of Implementing Core Labour Standards in Selected South-Asian Countries" conducted at the Colombo Plaza Hotel on 19.11.2003.

It is with great pleasure that I accepted the invitation to speak on this occasion. a programme of this nature, is both timely and essential for Sri Lanka in the present context. In the globalized economy good corporate governance which is characterised by equity, transparency, accountability and social responsibility has become more important than ever before. In that, adherence to international labour standards, accepted codes of conduct of various trade regimes and best practices will invariably come to the forefront of all activities in business. Being the Chairman of the International Parliamentary Union on Human Rights this subject is close to my heart.

In the present context of globalization a country's future largely depends on international trade. In that, competitiveness and innovation have become the critical factors for success. Information and knowledge provide the basis for competitiveness and innovation. We have to consider the core labour standards in the context explained above.

This may be looked at in a different manner, conceptually in two ways. Firstly from an economic based approach where the corporate social responsibility plays a prominent role. Secondly, from a right based approach where productivity enhancement plays a more prominent role. Both approaches are equally important and could work effectively if we can strike a right balance.

Where Sri Lanka is concerned there are a number of challenges ahead. The expiry of Multi Fibre Agreement can have serious impact on Sri Lanka. A large number of jobs are at stake. There is also an urgent need to develop the country, specially the areas affected by war.

It is essential to create employment opportunities for the people. If we fail in this respect social instability will be the result.

To address these issues the government has taken a very ambitious stand and a number of bold steps. The programme of Regaining Sri Lanka aims at creating two million jobs. Under my Ministry, two national policies, namely National Employment Policy and National Productivity Policy have been formulated. The JobsNet programme which aims at providing an effective system for matching the demand and supply of labour and providing human resources with required skills for the private sector has been put in place. To solve the unemployment problem among graduates my Ministry has launched a programme named Sarasavi Saviya. This programme seeks to provide the unemployed graduates with skills demanded by the private sector and then find employment in this sector. Establishment of the Youth Employment Network is another significant step taken. All these show that employment stands high on the agenda of this government and that something tangible has been done.

But that is not all, In addition to the number of jobs, the quality of jobs and also the recognition and implementation of rights of workers are also important. Sri Lanka has subscribed to the decent work agenda as promoted by the ILO. By the end of 2004, a decent work plan of action will be in place. Its purpose will be to ensure that social efficiency goes hand in hand with the economic efficiency programmes, which form the core of our policies. We need to ensure that social and economic efficiency are woven together because both are essential to make this country prosper. Accepting labour rights is a necessary part of this.

Moreover, our competitiveness hinges upon how well we fare in respecting workers' rights. Numerous codes of conduct and voluntary schemes, are directing the behaviour of employers to ensure that working conditions are appropriate. In a global market, buyers follow the pressure of consumer groups and this affects whether our companies in Sri Lanka get orders or whether they go to Madagascar or Thailand. In addition, global trade increasingly has labour clauses attached to it. As examples the special preferences of the GST from the European Union, and the lining up of Sri Lanka to be included in the FTA country list can be mentioned. Needless to say, all of these have a crucial impact on how many employment opportunities we can create.

How well do we fare in the implementation of the core labour standards? Sri Lanka has ratified all 8 core conventions. i.e. Conventions 87 and 98 on Freedom of Association and Collective bargaining; Conventions 100 and 111 on gender equality; Conventions 29 and 105 on forced labour and Conventions 138 and 182 on child labour. This means that Sri Lanka is entirely committed to the principles underlying these conventions. I am proud to say that child labour does not exist in the formal sector, although there is some in the informal sector and we are working with the ILO on progressively eliminating that through our involvement in the International programme for the elimination of child labour.

As regards the employment of women, Sri Lanka has a "no-discrimination" policy, and women are fairly well integrated into the labour market. However, that does not take away the gender related challenges that exist everywhere. Covert discrimination still exists in recruitment of women, the work environment is still not suited to combine women's role in the family and in the workplace; the glass ceiling for women to get into higher positions is prevalent; women are forced into the lesser jobs and the precarious contracts. In short, it is mostly attitudes and structures that still keep us from achieving the equality in opportunities, we would like to see. The Government is committed to promote gender equality in the world of work. We should take facilitating initiatives that will remove the underlying discrimination that still exists in every country in the world. On my part, I have taken a number of steps in this regard. One example is the childcare centre established in my Ministry.

The area that has some challenges is the implementation of conventions 87 and 98. Freedom of association and collective bargaining are essential and basic workers rights. The Government is committed to implement these rights. But it requires more than just Government policy. The industrial relations record in Sri Lanka is complex and the need for positive approaches to promote this is evident. We have requested the ILO to support us with a technical cooperation programme that will ensure that social dialogue principles are put to work. Social dialogue is essential, and will be an essential element of our "Decent Work Plan of Action". It has to take place at different levels, national, local and enterprise level. Basically, it is about the need for people to participate in decision-making. In my Ministry I have ensured that social partners are explicitly considered as a group to consult when it comes to implementation of poverty reduction strategy. At the national level I have put in place a more vibrant National Labour Advisory Council which represents all social partners. At this Council I discuss all policy decisions relating to labour matters.

Finally if the Ministry of Employment and Labour is to play its role effectively it needs to be a modern and vibrant institution. I have embarked on the challenging task of modernizing and restructuring this institution. Some elements that are included in this restructuring, are (i) a more active gender quality policy that will enable smooth implementation of Conventions 100 and 111; (ii) the setting up of a social dialogue unit which will facilitate at the workplace level; (iii) integrated labour inspection and even possibly the setting up of a mechanism that will provide 3rd party auditing for buyers. All of these initiatives are being undertaken in collaboration with the ILO.

As I explained above i believe implementing the core labour standards will promote productivity and competitiveness in the trade.

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