Impact of world economic crisis:

Relief package for affected workers

*President calls for early finalisation of proposals

*Package to last one year with review in six months

Rasika Somarathna

The Government is to unveil an economic relief package shortly for workers affected by the world economic crisis, according to a proposal mooted by President Mahinda Rajapaksa.

He has instructed the Labour Relations and Manpower Minister Athauda Seneviratne to prepare a draft relief package and present it to him soon.

According to the new package, named Unemployment Benefit Insurance Scheme(UBIS), workers who have lost their jobs are to be given a monthly compensation package which is to be worked off in line with their previous salary.

According to Labour Relations and Manpower Ministry Secretary Mahinda Madihewa, the package still in its formative stage proposes compensation to be given either until the affected worker finds alternative employment or reinstated in their former positions.

The package is to be offered up to a maximum period of one year with a review being proposed after the first six months, on an individual basis.

The President has also appointed a committee to spearhead the effort comprising officials from the Ministries of Finance, Labour, Industries and other relevant organizations such as the EPF, ETF, BOI and the Central Bank.

According to Madihewa, the Committee is to meet on Thursday, (9) to discuss relevant issues and is expected to submit a preliminary report to the President at the earliest possible time.

According to the latest reports, the effects of the global economic melt down which has hit certain industries in a big way has left more than 6.5 million people jobless worldwide.

According to a recent World Bank report Sri Lanka has been identified as one of those countries which is least hit by the recession.

However according to Madihewa, the recession has had a significant impact locally as well mainly on the export oriented industries.

According to him although the affected business entities have shown reasonable improvement in recent times, still thousands of employees who have lost their jobs have not either found alternative employment or have not being reinstated.

According to Madihewa, the President during his tenure as Labour Minister from 1994 – 1997 had also proposed a similar scheme to assist beleaguered workers through the ‘Shrama Vasana’ Fund which was supplemented by the lottery of the same title.

This scheme which stands to date too would contribute to supplement the proposed effort, he added.