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Article

28 Mar 2015

Author:
Devaka Gunawardena, Sunday Times

Sri Lanka: Private sector workers demand increase in wages, employers oppose

...[W]orkers have taken up the opening in the political space to advocate for wage increases in the private sector. Currently unions are demanding a Rs. 2,500 increase across the board, to be passed as a legally-binding parliamentary act similar to the budgetary relief allowance of 2005...private employers are opposed to a mandated increase. The employers’ argument as articulated by the Employers’ Federation of Ceylon (EFC) hinges on two main claims: 1) the private sector can’t afford wage increases across the board and 2) there are already existing arrangements between workers and employers to negotiate for salary increases. In order to grasp the true implications of the current wage campaign, however, the debate must shift to take into account the real determinant of the value of labour. This is based on popular struggles to achieve fair compensation.