"Don’t seek political advantage," they warn
Business leaders appeal to President, PM and all parties to act in national interest

The Employers’ Federation of Ceylon (EFC), has appealed to the Labour Minister Mahinda Samarasinghe not to make any general recommendations on requests for wage increases of private sector employees consequent to whatever pay hikes the budget may grant the EFC in its communication to Samarasinghe said.

Our attention has been drawn to recent media reports in regard to the above and statements attributed to your Ministry to the effect that the private sector will be asked to follow whatever decisions announced in the budget and increase salaries of their employees accordingly.

We consideer it important in these circumstances to make the following observations for your consideration.

As you are no doubt aware, regardless of Government decreed wage increases to public sector employees, private sector employers have in place, their own wage determining mechanisms which provide for periodical wage reviews and revisions subject inter alia, to performance, market factors and their own budgetary provisions.

A large number of employers within the EFC membership determine employee wages through collective bargaining with Trade Unions and periodical wages revisions are accordingly made.

There are also establishments, which pay cost of living allowances and make wage adjustments based on the movement of the Colombo Consumers Price Index.

In the context of the foregoing, we earnestly appeal to you and other relevant authorities not to make any general recommendations or requests for wage increases of private sector employees consequent to whatever increase that may be extended to the public sector employees in the national budget of 2003.

In this connection it is relevant to point out that Government determined wage increases in respect of the private sector has in the past led to numerous problems not only in relations to wage fixation in private sector establishments but, in respect of employer — employee relations also.