Tuesday, 2 December 2003  
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ILO confirms validity : Employees Councils have the right to bargain collectively with employers

In a recent case heard by the Freedom of Association Committee of the International Labour Organisation (ILO) concerning a complaint filed by the International Textile Garments and Leather Workers Federation (ITGLWF) on behalf of the Ceylon Mercantile Industrial and General Workers Union (CMU), the committee has ruled that the Employees Councils created under the Employees Councils Guidelines introduced by the Board of Investment Sri Lanka (BOI) are valid and that employees councils have the right to bargain collectively and conclude collective agreements with employers in BOI enterprises, including enterprises in Free Trade Zones.

In March 2003, the ITGLWF, on behalf of CMU, complained to the Freedom of Association Committee of the ILO that the Guidelines for the Formation and Operation of Employees Councils issued by the BOI hamper the creation of free and independent trade unions and prevent them from exercising the right to bargain collectively.

Among others, the ITGLWF also alleged that the BOI set up a special regime for the resolution of industrial disputes under the authority of the BOI instead of the Commissioner General of Labour.

The ILO sought the responses of the Government of Sri Lanka on the various allegations made in the complaint and placed the case before the Freedom of Association Committee - a Nine-Member Tripartite Committee consisting of Governing Body members and an independent Chairman - for examination and Report to the Governing Body.

The Committee examined the various allegations made in the complaint and the responses of the Government and submitted its Report containing its Conclusions and Recommendations for consideration of the Governing Body at its meeting held between November 17 to 21, 2003.

While confirming the validity of Employees Councils, the Freedom of Association Committee has recommended certain procedural changes to the Guidelines to ensure strict conformity with the relevant ILO Convention concerning Workers Representatives in Undertakings, namely, Convention No. 135.

It has also confirmed that the Labour Administration functions, including disputes settlement in Free Trade Zones are performed by the Commissioner General of Labour and his officials and not by the BOI, as alleged by ITGLWF.

In effect, the ILO has ruled that the Guidelines issued by the BOI for the Formation and Operation of Employees Councils do not hamper the creation of Free and Independent trade unions and prevent them from exercising the right to bargain collectively. The Governing Body has endorsed the Conclusions and Recommendations of the Freedom of Association Committee.

The concept of Collective Bargaining via the Employees Councils or "Elected Representatives" is permissible under the relevant International Labour Standards namely, Convention No. 135 concerning Workers' Representatives in undertakings and Convention No. 154 concerning Promotion of Collective Bargaining.

In practical terms, Sri Lanka is the only country in this region to introduce this concept in the BOI enterprises and Free Trade Zones in order to enable non-unionised employees to improve their terms and conditions of employment through the process of consultation and collective bargaining, which are effective means of Social Dialogue at the enterprise level.

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