EFC makes representations on minimum wage

The Employers' Federation of Ceylon (EFC) made representations to the Labour Minister highlighting employer concerns within the private sector regarding the manner in which minimum wages are revised.

Excerpts from a release from the EFC states: The EFC has categorically stated that the minimum wage fixation process is clearly outlined in the Wages Boards Ordinance.

Private sector wage fixation is regulated by Wages Boards set up under the Wages Boards Ordinance. These are tripartite Wages Boards with representatives of Employers, Workers and Members nominated by the Labour Minister.

Section 27 of the Wages Boards Ordinance states, each Wages Board is under a duty to determine different rates of minimum wages and take into account the circumstances that prevail in the different industries for which wages boards have been set up. The EFC has recommended that the Labour Commissioner General who is the chairman of each Wages Board, must give proper direction to all Wages Board members.

Wages Board members must be made aware of the realities prevalent in different industries.

The EFC has also raised the importance of appointing representatives who possess knowledge and expertise in the relevant Wages Board industry, as nominated representatives.

"It is important that the representatives have practical knowledge of what is happening in the world of business," said the EFC's Director General Ravi Peiris.

He said, "It is of national interest that we keep our industries sustainable if we are to achieve the development targets that the government has set its eyes on for 2016."A