Labour standards

Workers in Sri Lanka and in many other countries celebrated yet another International Labour Day (May Day) on Friday. While the celebrations here were low key, May Day again reminded us all of the importance of workers' rights as well as responsibilities.

All post-independence Sri Lankan Governments have given priority to the welfare of workers and maintained close links with the International Labour Organisation (ILO) which turned 90 recently. This has resulted in high labour standards, envied even by the developed world. In fact, it was revealed recently that Sri Lanka can claim to be far ahead in the field of labour standards in relation to other developing countries.

The recently-signed National Framework for Social Dialogue is yet another step in this direction. The Framework developed with the direct representation of Governments, employers and workers covers conditions of work, occupational safety and health, social security, employment promotion and human resources development.

Sri Lanka has always adhered to ILO standards related to workers' rights and safety at work. Sri Lanka has also eschewed such practices as child labour to the maximum extent possible. There are no 'sweat shops' in this country. There are no fingers pointed at us for harsh or adverse labour conditions.

This has made it possible for our garments to be labelled 'Garments Without Guilt' and tea, as a 'Blend without Shame'. These are just two of Sri Lanka's biggest export products and the standards in other industries are no less strict.

Sri Lanka is thus well placed to observe the conditions that could meet the ILO's Decent Work parameters. Of course, the processes and standards that need to be pursued in promoting Decent Work cannot be uniform for all countries and depend on the country's socio economic situation.

Sri Lanka has fared better than most countries in meeting the challenge of the global economic crisis. However, we cannot be complacent. Some of our export industries, which depend essentially on a sound economy in the purchasing countries, could be affected in the medium term.

This will pose a huge challenge to exporting companies in terms of retaining profit margins and employees. Right now, Sri Lanka's unemployment rate is very low and it would indeed be unfortunate if circumstances beyond our control resulted in retrenchment here. The authorities must identify the industries facing a risk and take appropriate steps to ward off any harmful effects.

Locally, the Government must be at the helm of a regulatory mechanism for the private sector. It is no secret that a virtually uncontrolled private sector precipitated the collapse of economies in many developed countries, affecting existing employees and the generation of additional employment.

The other significant factor is the public sector itself. The Government is the single biggest employer in this country with over one million workers. But Government owned agencies have inherent weaknesses and problems which need immediate attention to restore productivity, efficiency and thereby increase growth and profitability.

There are many differences between the two sectors. The general perception is that the private sector is more dynamic and innovative while archaic practices and lethargic attitudes of employees retard the growth of the public sector.

The public sector should work towards shedding this image and becoming an equally potent force in the labour arena. The Strategic Enterprises Management Agency is playing a pivotal role in this regard, especially in the fields of banking, plantations, transport and utilities.

There is another issue that affects both the private and public sectors - trade unionism. The lack of industrial peace in certain sectors is a cause for concern as productivity and profitability are severely affected by such actions. Many trade unions launch strikes literally at the drop of a hat without first resorting to negotiations.

The cost to the economy in such instances is immense. Trade unions and employees must first discharge their obligations to their workplaces and exhaust all peaceful avenues for resolving labour issues before launching agitational campaigns.

One must remember that the ultimate aim of employment is uplifting living standards. Labour and poverty are two sides of the same coin. More chances of employment translate into better opportunities for poverty alleviation. This also applies to employment abroad - more Sri Lankans are poised to work overseas. As the ILO's Decent Work concept shows, the surest way to address poverty is to provide people with decent employment. More investments are needed to achieve this aim.

With the imminent defeat of terrorism, Sri Lankans can look forward to lasting peace for the first time in three decades. A peaceful atmosphere will certainly be a boon for business and hence, employment generation. This will enable Sri Lanka to meet ILO's projections for the growth in the labour market and meet the UN's Millennium Development Goals as well.