News
In Parliament on Tuesday
Windfall for women workers as govt. increases overtime limit

By Sumadhu Weerawarne and Kesara Abeywardena

The government on Tuesday increased the overtime limit for women workers to 60 hours a month from the existing eight hours a month.

The monthly overtime for young persons was also increased by 50 per cent.

The increase was effected through an amendment to the existing Factories Ordinance. The amendment was passed in Parliament with 102 members voting for it and 48 against. The PA and JVP voted against the Bill while the TNA voted with the government.

The opposition expressed doubt that the bill was one which would compel all workers to compulsorily work the stipulated overtime hours. The Minister of Labour Mahinda Samarasinghe refused to accommodate PA and JVP calls to include a clause in the amendment clearly stating that there would be no compulsion.

The minister said that there was nothing in the amendment to compel a worker to work 60 hours overtime, but refused to include a clause setting out the point clearly.

The amendment bars employers of engagement in overtime of pregnant woman, a nursing mother for a year’s period and a woman who delivers a still born child for three months.

It also enables the minister to frame regulations for the welfare of women and young persons engaged in overtime.

The minister said that the 60 hours overtime limit was effective in other countries: Baharain (60 hours), Bangladesh (60 hours), Greece (60 hours for six months), India (60 hours) and Netherlands (62 hours).

On other issues raised by the opposition, he said that legislation would be brought to stipulate a time period for the completion of a case: three months for a labour Tribunal case, two months for an arbitration case and one month for an application to the Commissioner General of Labour.

He said that this was intended to clear the existing backlog of 15,000 cases.

On queries on the EPF and ETF he said the Labour Ministry was only responsible for administration of the former while the latter was entirely under the Finance Ministry "Investment of EPF money is handled by the Finance Ministry," he said.

Responding to allegations on the non-payment of EPF by employers, the minister said that a committee appointed by him was able to recover Rs. 50 million from factories in EPF remittances through surprise raids in the last few months.

Presenting the Bill Mahinda Samarasinghe (Minister of Labour) said that the amendment to increase overtime hours for women and young persons is intended to make Sri Lankan exports and industries more competitive in the world market. He stressed that the existing law is an anachronism and needs to be revised to be in line with the present world context.

"The principle act is 60 years old and was enacted in 1942. There has been many changes in the international scene and the local conditions as well. Sri Lanka went to rapid industrialization in 1977. We are now going through technological development. We have to bring our laws in tune with the times."

He said that globalisation had come into being during the last 60 years and WTO has replaced UNCTAD.

He said that the existing law which limit more than 100 hours of over time for women workers is being openly violated. "We are actually revising a law that is not active any more. There had been three attempts during the previous PA government to amend this provision in the Factories Ordinance."

He pointed out that former Labour Minister W. D. T. Seneviratna had submitted a cabinet paper to this effect requesting cabinet approval to extend the number of overtime hours for a month to 80 hours. "The late C. V. Gunaratne had written a letter calling for the increase in overtime hours for a month to 100 hours. Even the veteran trade union leader Alavi Maulana when he was Labour Minister had wanted this increased to 70 hours."

He contented that many importers from Sri Lanka in developed countries like US and UK have informed their producers in Sri Lanka that they should not violate the law.

He said that the amendment was brought after long discussions with International Labour Organisation and the Apparel Exporters Association.

Charging the government for making provisions to exploit the workers to please the employers, Dinesh Gunawardena (PA Colombo) said that this law is not a necessity to make Sri Lankan products competitive in the world market.

Replying the minister he said that no law in this regard was drafted during the PA regime and what was done was to hold a number of discussions. He said that employers had lobbied during the past 50 years to amend this law.

He called on the minister to make it essential for a letter of consent from women who want to work overtime under the amendment to the existing law.

He pointed out that to solve the unemployment problem opportunities should be increased and the task of the government should not be to further exploit the existing workforce but distribute the resources to a large section of the society.

R. A. D. Sirisena (Minister of Sumurdhi) said that workers do overtime with their consent with the intention of getting an extra income. He asked the opposition whether they were against workers earning more by doing overtime.

He said that humane provisions are also provided with the amendment to grant benefits to pregnant women and provide transport to those doing over-time.

He said that jobs should be secured and to do that our industries should be protected. He charged that certain trade unions were creating problems by making unfair demands from employers. He said that due to this reason some of the investors are relocating their industries in other countries.

Vijitha Herath (JVP — Colombo District) said that only four per cent of the factory closures had taken place due to labour problems during the recent past. He said that the rest of the 96 percent of closures were due to capital problems.

He said that production costs in the country are today increasing due to VAT. He cautioned the government of inflation by the end of this year. He said that productivity in the country should be increased but not at the expense of the workers’ rights.

He charged that the government is acting on the directions of the IMF in bringing this amendment.

Reggie Ranatunga (PA - Gampaha District) said that the amendment was welcome to some and unwelcome to others.

He said that it would be welcomed because of the extra earnings it would bring. As a drawback he pointed out the real risk of rape face by these women on their return from work at night. He said that the provisions to provide transport were inadequate because it meant that those who lived outside of the immediate area of the factory.

He also called for increased overtime payments to workers, to ensure that the benefit would be a worthwhile one.

Speaking of the impact of the amendment on the garment industry.

Gamini Lokuge (Minister of Tourism) said that the legislation gave legal provision and protection to what was done illegally.

"The women workers worked overtime even though it was illegal. This had to be done in order to meet delivery deadlines.

Now there is a legal structure to enable this while protecting workers," he said.

On industries in general he said that there were those who exploit workers, fail to pay EPF and finally close down. He called for laws to penalise and punish those private sector establishment which flouted laws existent to protect the workforce.

He called for a balanced policy through which workers were protected even as private sector enterprise is encouraged.

"The workers are the primary assets of the country," he said.

He urged the Labour Minister to bring legislation to protect workers’ rights and strengthen their status.

Casting doubt whether the legislation would compel women workers to work overtime.

Jeyaraj Fernandopulle (PA - Gampaha District) said that it may be better to leave overtime to the discretion of workers.

He said that the workers in the present situation were working 7-12 extra hours, while the legislation provides for 2 1/2 hrs of overtime daily.

"They work overtime by choice. The new legislation may compel them to work overtime even at times they are unable to do so," he said. He called for flexibility pointing out that there may be those willing to work longer hours to earn more money to meet the rising cost of living.

He urged the government to look into the reasons behind the low appeal of factory jobs. He adduced that there were 5000 vacancies in the Katunayake EPZ and 2000 in companies in Biyagama, with no takers.

He said that this was because of the high instability of these jobs. "The factory owners fail to pay EPF and close down unbeknown to everyone, at the point their tax exemption period ends," he said.

He also called for a contributory pension fund to assist workers from the point of retirement. "Most of the workers are women who often retire having worked from 18-30 years. We must set up a fund for their benefit," he said.

He also called for greater vigilance on the part of the Labour Department to ensure that EPF payments are made. "Often the officers are bribed to keep quiet about non-payment of EPF," he said.

He urged assistance to employees in making their cases in the labour tribunals. "The employer comes with a President’s Counsel, while the employee having no money is compelled to seek poor counsel," he said, adding that either the government or the Bar Association of Sri Lanka must provide aid.

He observed that it was the female workers who were more susceptible to exploitation because of their acquiescence to unfair labour practices.

Emphasising the importance of adequate compensation A. H. M. Azwer (Minister of Parliamentary Affairs) quoting from the Quran said that a worker must be paid before the sweat dries.

He welcomed the amendment which he said would be to the benefit of female workers.

He challenged the parties opposing the legislation, he said the JVP was especially unaware of socialist principles.

He asserted that the legislation was a progressive step adding that the UNP was the only progressive force.

Raja Collure (PA - National List) said that international labour standards stipulated a 45 hrs work week for a worker, while the intended legislation provided for a 60 hr week.

He observed accordingly a stipulated 576 hours would increase to 720 hours a month on account of the legislation. "This is not acceptable. The number of working hours must not be more than 576 hours," he said.


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