Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

Minimum Wage Fixing Convention, 1970 (No. 131) - Sri Lanka (Ratification: 1975)

The Committee notes the information contained in the Government’s report in reply to its previous comments, the observations by the Lanka Jathika Estate Workers’ Union and those by the Employers’ Federation of Ceylon concerning the application of the Convention.

I.  Determination of minimum wages in the plantation sector

1. In its previous observation the Committee requested the Government to provide information on progress made in developing the wage structure in the plantations sector and to provide copies of wage board decisions fixing minimum wages in this sector and of relevant collective agreements. It also requested the Government to comment on the considerations submitted by the Lanka Jathika Estate Workers’ Union to the effect that satisfactory national minimum wage fixing machinery should be established in the country in view of the exceptionally low minimum wages in some sectors, where wages have not been adjusted since 1972.

2. In reply to its observation on minimum wages in plantations and to the comments by the Lanka Jathika Estate Workers’ Union on this matter, the Government indicates that minimum wages in the plantations sector are determined from time to time by four tripartite wages boards. It further indicates that workers and their representative organizations may conclude collective agreements with employers and that the social partners make use of this possibility in the plantations sector. The Government also appends to its report copies of current collective agreements in the sector.

3. With regard to the observations made by the Lanka Jathika Estate Workers’ Union, the Government points out that, due to difficulties in convening meetings, the wages boards in the tobacco and cinnamon sectors have become inoperative since 1972 and 1980. In the Government’s opinion, the wages boards’ function is satisfactory except in these two sections where low wages were fixed some three decades ago. Lastly, the Government indicates that the Ministry of Employment and Labour is exploring the possibility of having uniform conditions for each sector: plantations; manufacturing; agriculture; and services.

4. The Committee requests the Government to send all available information on the results of the measures taken to introduce uniform conditions for each sector, including plantations, agriculture and services, and on the adoption of minimum wages that may be deemed to satisfy the needs of workers and their families. In particular, the Government is asked to specify the current levels of minimum wages in the tobacco, cigar manufacturing, docks and ports, graphite, and cinnamon sectors, where unsatisfactory functioning has made the wage boards inoperative and where the last wage adjustments go back as far as 1972 in some cases. The Committee recalls in this connection that under Article 4 of the Convention, the Government must create and maintain machinery whereby minimum wages for the groups of wage earners covered can be fixed and adjusted from time to time, in consultation with the representative organizations of employers and workers concerned. It also draws the Government’s attention to the provisions of Article 3 of the Convention under which the elements to be taken into consideration in determining the level of minimum wages must, so far as possible and appropriate, include the needs of workers and their families, taking into account the general level of wages in the country, the cost of living and the relative living standards of other social groups.

II.  Extension of the coverage of the minimum wage fixing
  machinery to workers in specific sectors

5. In reply to the Committee’s observations concerning extension of the coverage of the national minimum wage fixing machinery to workers in specific sectors, the Government indicates in its report that most workers in the private sector are covered by the minimum wage system pursuant to the Wages Board Ordinance and the Shop and Office Employees Act. It also indicates that domestic employees working in systems established by custom or tradition and all other employees carrying on activities in sectors such as fishing, where there are no wage boards or remuneration tribunals established under the Shop and Office Employees (regulation of employment and remuneration) Act, are nonetheless still excluded from the national systems of minimum wages, no measures having been taken to establish minimum wage fixing machinery for these categories of workers. The Government indicates at the same time that the machinery has been extended to four new sectors and that the Ministry of Employment and Labour is exploring the possibility of introducing uniform conditions in every sector.

6. The Employers’ Federation of Ceylon refers to the conclusion of collective agreements by the social partners which provide for wages which are actually higher than the minimum fixed by the wages boards.

7. The Lanka Jathika Estate Workers’ Union refers to its earlier comments in which it suggested that there should be a satisfactory minimum national wage set for the entire country. It further observes that the collective agreement in force in the plantations sector covers only workers in the state-owned plantations managed by private management companies.

8. The Committee notes with interest that the scope of protection under the national minimum wage fixing machinery has been extended and asks the Government to keep it informed of any future developments concerning the plan under study at the Ministry of Employment and Labour for introducing uniform conditions in each sector, including plantations, agriculture and services. The Committee once again recalls the importance, already pointed out in its General Survey of 1992 on minimum wages, of the obligation to extend the coverage of national minimum wage fixing systems, and expresses the hope that the Government will be in a position to provide information in future reports on the extension of the protection afforded by its national machinery to groups of workers as yet unprotected and whose coverage would be appropriate under the terms of the Convention.

9. The Committee requests to send to the Office its comments on the observations by the Lanka Jathika Estate Workers’ Union on the collective agreement which purportedly applies only to state-owned plantations managed by private management companies.

III.  Article 5, read in conjunction with Part V of the report form

10. With regard to the statistical information on the number of workers covered by minimum wages set in collective agreements, the Committee notes the information from the Government to the effect that there are currently no data available as to the number of workers covered by each collective agreement. The Committee hopes that in its next report the Government will be able to supply information concerning, inter alia: (i) the prevailing minimum wage rates; (ii) available data on the numbers and categories of workers covered by the minimum wage provisions, and the number of workers covered by collective agreements; and (iii) the results of inspections (for example, the number of infringements recorded, penalties imposed, etc.).