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Pay hike for private sector

COLOMBO: The Government yesterday announced a 15-43 per cent pay hike for private sector employees with retrospective effect from July 1.

Addressing the media in Colombo, Labour Relations and Manpower Minister Athauda Seneviratne said the salary increase, which has already been gazetted, will be adopted by 40 out of the 43 Wages Boards in the country.

“Since March this year, the Government had a series of discussions with private sector employers and trade unions on increasing the salaries of their employees in line with the rise in cost of living. It is as a result of these tri-partite discussions that we could deliver this pay hike to the private sector,” he said.

According to the Labour Department, the pay hike will apply to all private sector trades, including the textile manufacture, tea export and retail and wholesale trade, except those governed by Collective Agreements like the plantation sector.

“It will effect a minimum 15 per cent increase in the salary of lower grade employees while the hike will be 43 per cent or more for higher grades.

The Minister recalled that private sector wages were increased in 2006 too by Rs. 1,000, while in 2007, a minimum wage of Rs.5,000 was stipulated for the first time for all grades in every trade.

“Around 3.5 million private sector employees benefited from these measures since it is based on the basic salary that their EPF and other superannuation benefits are calculated,” he said.

Commenting on tomorrow’s islandwide token strike contemplated by certain trade unions, Seneviratne pointed out that the Government was mulling a salary hike for the private sector long before trade unions of the Janatha Vimukthi Peramuna and the United National Party brought the issue to the fore.

“This strike is a manifestation of political hypocrisy. “That is why JVP MP Lalkantha did not participate in the public sector trade unions’ discussion with the President.

He knew that if he did, they would have had to agree to the Rs. 1,000 salary increase. Today, they have abandoned their demand for a Rs. 5,000 pay hike and call upon the Government to do take a host of irrelevant measures to refrain from the strike.

It is the responsibility of our workers to understand these double standards,” he said.

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