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TUs protest against new retrenchment provisions

by Anura Maitipe

Trade Unions countrywide will launch a joint protest campaign against the Government's decision to amend "the Termination of Employment of Workmen Act," President United Federation of Labour, Linus Jayatilaka told the Daily News.

The reason given by the government for the amendment to the Termination of Employment of Workmen(Special Provisions) Act was that the Government intended to introduce "labour reforms" conducive to economic development,mobility of labour and to generate employment.

The amendment which is referred to as a "fixed formula" envisage compensation payment on the basis of the current minimum wage range of Rs 3000 to Rs 3500 per month.

"In reality the total payment for services would be only 30 months salary. Under the new formula those who lose their jobs will be left in the lurch", he added. There is no proper basis for such an amendment to the previous act introduced in 1971, he said. "The amendment will force Factories run by overseas companies to wind up and to compensate losses, "Jayatillake said.

He said there was no proof that the old act would have had a negative impact on the economy or on other areas of development. When the issue of a fixed formula for compensation was referred to the Supreme Court some time ago, Justice Sharvananda to opined:

"When awarding compensation flexibility is essential and that weight to be attached to any particular factor depended on the context of each case." These words of wisdom of the Supreme Court seem to have been ignored by the authorities, he stressed.

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