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

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Convention No. 131 (minimum wage) and Convention No. 95 (protection of wages) together.
The Committee notes the observations of the International Trade Union Confederation (ITUC) and the International Transport Workers’ Federation (ITF) received on 27 September 2023, concerning the application of Convention No. 131, and the Government’s reply to them. The Committee notes that in these observations, the trade unions expressed concerns on the fact that the draft Employment Act proposes to repeal the Wages Board Ordinance (WBO), effectively dispensing with the tripartite deliberation on minimum wage fixing and leaving the authority completely with the Government. In its reply the Government indicates that full authority would not be with the Government, and the National Remuneration Council that will be instituted in place of the WBO will be a tripartite body comprising of trade unions, employers’ organizations, the Central Bank, Department Census and Statistics, and Commissioner General of Labour.

Minimum Wage

Article 1 of Convention No. 131. Groups covered by the minimum wage system. Further to its previous comments, the Committee notes the Government’s indication that it is planning to include a definition of “domestic workers” within the purview of the proposed Employment Act and make the proposed Employment Act applicable to domestic workers as well. The Committee accordingly requests the Government to keep the Office informed of any developments on the adoption of the proposed Employment Act and to provide a copy as soon as adopted.
The Committee also understands that the subject of minimum wages as set out in the National Minimum Wage of Workers Act No. 3 of 2016 will not be covered within the scope of the proposed Employment Act. The Committee therefore hopes that the Government will make every effort to align the National Minimum Wage Act with the proposed Employment Act, to uniformly extend the protection afforded by the minimum wage system to domestic workers. The Committee requests the Government to provide information on any measures taken or envisaged in this regard. Finally, the Committee recalls that the Government may avail itself of technical assistance provided by the Office with regard to the legislative amendments that are necessary to ensure the full application of the provisions of the Convention.

Protection of Wages

The Committee notes the decision of the ad-hoc tripartite Committee established to examine the representation submitted under article 24 of the ILO Constitution by the Flight Attendants’ Union (FAU), alleging non-observance by Sri Lanka of the Labour Inspection Convention, 1947 (No. 81) and the Protection of Wages Convention, 1949 (No. 95). The Committee notes that, with regard to allegations submitted under Article 1 of Convention No. 95 on whether the “meal allowances” given to cabin crew should have been included in the definition of “earnings” applicable for the calculation of employer contribution to the Employees’ Provident Fund, the tripartite Committee concluded that it was not in a position to proceed with the examination of the matter. In light of the disagreement at the national level regarding this issue and its potential impact on the application of the Convention, the tripartite Committee invited the parties to engage in a dialogue at the national level to address the issue. The Committee requests the Government to provide an update on the follow-up given to the tripartite Committee’s recommendation.
Article 2 of Convention No. 95. Possible exclusions. The Committee notes the Government’s indication that public servants are covered under separate regulations. With regard to the question of domestic workers, the Committee notes the Government’s indication that a definition of “domestic workers” will be included in the proposed Employment Act, with the aim of extending protection to domestic workers as well. The Committee requests the Government to indicate the regulations providing for the protection of wages of public servants. Furthermore, the Committee refers to its comment above under the Minimum Wage Fixing Convention, 1970 (No. 131), with regard to the adoption of the Employment Act.

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Convention No. 131 (minimum wage) and Convention No. 95 (protection of wages) together.
The Committee notes that a representation under article 24 of the Constitution of the ILO was presented to the Governing Body by the Flight Attendants’ Union (FAU) alleging non-observance by Sri Lanka of the Labour Inspection Convention, 1947 (No. 81) and the Protection of Wages Convention, 1949 (No. 95). At its 334th Session (October 2018), the Governing Body decided that the representation was receivable and to set up a tripartite committee to examine it (document GB.334/INS/14/3).

Minimum wage

Article 1 of Convention No. 131. Groups covered by the minimum wage system. The Committee takes note of the adoption of National Minimum Wage of Workers Act No. 3 of 2016, which establishes a national minimum wage for all workers. The Committee notes that, according to section 14 of this Act, the definition of “worker” does not include “domestic servant”. Consequently, the national minimum wage does not apply to this category of workers who are also not covered under the Wages Boards Ordinance, which provides for the fixing of minimum rates of wages by wages boards in trades, or under the Shop and Office Employees (Regulation of Employment and Remuneration) Act, which provides for the fixing of minimum rates of wages for shop and office employees. The Committee therefore hopes that the Government will make every effort to extend to domestic workers the protection afforded by the minimum wage system, and requests the Government to provide information on any measures taken or envisaged in this regard.
Articles 3 and 4. Criteria for the determination of the minimum wage levels and consultation of the social partners. The Committee takes note of the information provided by the Government in its report in reply to its previous comments on these matters.

Protection of wages

Article 2 of Convention No. 95. Possible exclusions. The Committee notes that the main pieces of legislation giving effect to the Convention are the Wages Boards Ordinance and the Shops and Office Employees Act. Noting that these acts do not cover public servants and domestic workers, the Committee requests the Government to provide information on any measures taken or envisaged, in law or in practice, to ensure that these categories of workers benefit from the protection afforded by the Convention.
Articles 4, 6, 7, 13 and 14. Protection of wages. The Committee takes note of the Government’s reply to its last comments on the application of these Articles.
Article 12. Regular payment of wages. Further to its last comments, the Committee takes note of the information provided by the Government on the judicial proceedings for the recovery of unpaid contributions to the employee provident fund for workers of the Hare Park plantation.

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Articles 3 and 4 of the Convention. Criteria for adjusting minimum wages – Full consultation with employers’ and workers’ organizations. The Committee notes the comments made by the Employers Federation of Ceylon (EFC) and the International Organisation of Employers (IOE) concerning the application of the Convention, which were received on 4 July 2013 and were transmitted to the Government on 9 September 2013. The two employers’ organizations recognize that consultations are held every time that wage boards are convened to revise minimum wages in respect of different trades but express their disappointment about the operation of the minimum wage fixing mechanism in practice. More concretely, the EFC and the IOE indicate that the voting pattern in tripartite meetings where decisions on proposed minimum wage rates are taken is such that government representatives often align themselves with the workers supporting any increase, thus creating a challenging situation for employers. Moreover, the EFC and the IOE consider that it would be important to adopt a professional approach to wage fixation, which would imply conducting surveys and studies in relation to a particular industry and ascertaining the market rates of wages and the capacity of the industry to pay before fixing minimum wage levels. In addition, the Committee notes the comments made by the IOE on 17 July 2013 according to which economic factors, in particular productivity, are not taken into consideration when minimum wages are set. The Committee requests the Government to transmit any comments it may wish to make in response to the observations of the EFC and the IOE.

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Articles 1 and 4 of the Convention. Minimum wage system – full consultation with employers’ and workers’ organizations. The Committee notes the Government’s indications that in 2008, wage boards increased minimum wage levels by 15 per cent in 40 different trades while in 2010 they further raised the minimum wages by 20 per cent in 39 trades. It also notes that the wage boards for the tobacco trade, the cigar manufacturing trade, the dock harbour and port transport trade, the cinnamon trade and the plumingo trade were reactivated in 2008 by appointing new employers’ and workers’ representatives, and that new wage boards for the flower, ornamental plants, vegetables and fruits growing and export trade are in the process of being established.
The Committee notes, however, that there is currently no mechanism to determine minimum wage rates for domestic workers and fishers. With respect to the plantation sector, the Committee notes the Government’s indications that minimum wages are mostly regulated through collective agreements, such as collective agreement No. 22 of 2011 which was concluded for tea and rubber plantations between the Employers Federation of Ceylon (EFC), the Lanka Jathika Estate Workers’ Union (LJEWU) and the Ceylon Workers Congress (CWC).
Moreover, the Committee notes the Government’s clarification that there is currently no legislation providing for a national minimum wage, and that the matter continues to be under consideration by the National Labour Advisory Council (NLAC). The Committee requests the Government to continue to provide up-to-date information on the operation of the minimum wage system, including copies of all relevant wage board ordinances and collective agreements, and also to indicate any progress in determining minimum pay rates for those categories of workers not yet covered. In addition, the Committee requests the Government to indicate any further developments as regards the possible establishment of a national minimum wage as well as any measures taken to follow up on the findings of the ILO technical assistance mission of May 2007.
Finally, the Committee notes the new communication of the LJEWU, dated 31 May 2012, which essentially reproduces comments made previously concerning the reactivation of the remuneration tribunals, the absence of full consultations with workers’ organizations, especially as regards the minimum wage coverage of private sector workers, and the need to revise the national minimum monthly wage to reflect the constantly rising cost of living. The Committee requests the Government to transmit any specific comments it may wish to make in reply to the observations of the LJEWU which were transmitted in August 2007 and May 2012.

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The Committee notes the information provided by the Government on the ILO technical assistance mission in the field of wage policy which was carried out in May 2007. It notes, in particular, that the main findings of the mission’s assessment, which were endorsed by the Government and the employers’ and workers’ organizations, included: (i) the minimum wage-fixing system based on wages boards does not cover all employees in the private sector; (ii) need to design a wage policy taking into account the size of the informal economy; (iii) problems of wage-fixing and workers’ rights in export processing zones; (iv) recent trend characterized by declining real wages and very low wages in the private sector; and (v) growth in the wage gap by sex and region. The Committee further notes that whereas trade unions insisted on the need for setting wages that ensured decent living standards, the employers stressed the need to develop pay systems that link wages to enterprise performance. The Committee understands that the Government intends to pursue discussions on wage policy reform with the assistance of the ILO. It accordingly requests the Government to keep it informed of all future developments in this field.

Article 5 of the Convention and Part V of the report form. The Committee notes the information supplied by the Government, including the current minimum wage rates in different sectors, copies of collective agreements in force and statistical information on the labour inspection results for 2005–06 showing the number of inspection visits, cases filed for underpayment and the amounts recovered. The Committee would appreciate if the Government would continue to supply up to date and documented information on all aspects of the application of the Convention in law and practice, both in terms of coverage and enforcement.

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The Committee notes the information provided by the Government in its report and attached documents. It notes in particular the introduction of a national minimum monthly wage of Rs5,000 (approximately US$46) following discussions at the National Labour Advisory Council (NLAC) and the subsequent adjustment of minimum wage rates for 29 different sectors by the respective wages boards. The Government indicates that the revision of minimum wages in another 14 sectors is under consideration while plantation workers are still covered by collective agreements. Recalling its previous comments in which the Committee had requested the Government to indicate any progress in developing the wage structure in the plantations sector and also noting the Government’s reference to an ILO mission presently studying the wage determination mechanisms in the country, the Committee requests the Government to keep it informed of any developments concerning the minimum wage levels practised in plantations, relevant wage board decisions, and the findings and recommendations of the ILO mission in this respect.

In addition, the Committee notes the observations made by the Employers’ Federation of Ceylon concerning the application of the Convention. The Employers’ Federation states that while the current system of wages boards provides a sound mechanism for minimum wage fixing in respect of different trades, the concept of a “national minimum wage” towards which the Government is now moving would need to be based on a broader definition of the term “wages” taking into account local practices such as the different types of productivity or incentive payments paid by various enterprises engaged in manufacturing industries. The Committee would appreciate receiving the Government’s views on the points raised by the Employers’ Federation of Ceylon.

Moreover, the Committee notes the observations made by the Lanka Jathika Estate Workers’ Union (LJEWU) concerning the application of the Convention. According to the Union, the Convention is applied in a generally satisfactory manner but further progress should be made in three respects: the coverage of the minimum wage system, the process of consultation with workers’ organizations, and the level of the national minimum wage.

As regards the coverage of the minimum wage system, the LJEWU indicates that the remuneration tribunals, which are responsible under the Shop and Office Employees Act (Act No. 19 of 1954) for fixing minimum pay rates applicable to certain types of shops and offices, have not met for over three decades and therefore any minimum wage rates they may have set in the past are very much outdated. The LJEWU adds that at present the remuneration tribunals are more or less defunct. Moreover, collective agreements that generally provide for wage rates higher than the statutory or the market rates are very limited in number and they cover only a portion of the entire workforce.

With respect to the obligation for full consultation and direct participation of workers’ representatives in the determination of the minimum wage, the LJEWU states that although consultations are conducted at times they cannot be termed as full and points out that there has been no consultation about the coverage of private sector workers.

Finally, concerning the national minimum monthly wage of Rs5,000 introduced in May 2007, the LJEWU considers it unsatisfactory given that the cost of living is very high and constantly rising, and also the fact that the wages are not linked to, or otherwise made to reflect the cost of living indicators.

The Committee would appreciate receiving the Government’s reply to the specific points raised by the LJEWU. In addition, the Committee notes that the Government has not replied to all the points raised in its previous observation (for instance, minimum wage protection for domestic workers and fishers, and minimum wage situation in the tobacco, cigar manufacturing, docks and ports, graphite and cinnamon sectors) and hopes that a consolidated response will be transmitted shortly.

The Committee is raising other points in a request addressed directly to the Government.

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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.).

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The Committee notes the information supplied in the Government's report in reply to its previous comments. It asks the Government to continue to provide information on any progress made in terms of recruitment of labour inspectors, together with general information on the application of the Convention in practice (including its application in the agricultural sector), in accordance with Article 2, paragraph 1, of the Convention, in conjunction with Article 5 and point V of the report form, e.g. (i) the minimum wage rates in force; (ii) the available data on the number and different categories of workers covered by minimum wage provisions, and those covered by collective agreements; (iii) the results of inspections carried out (for instance, the number of violations of minimum wage provisions, the penalties imposed, etc.).

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The Committee notes the information provided in the Government's report in reply to its previous comments, and the observation made by the Lanka Jathika Estate Workers' Union in respect of the application of the Convention in the country.

Determination of minimum wages in the plantation sector

In its previous observation, the Committee requested the Government to indicate whether the analysis of wage structure to be elaborated in the plantations sector had actually been undertaken and, if so, whether the results have been taken into consideration in the minimum wage fixing. It also asked the Government to communicate a copy of the wage board decisions fixing the minimum wages in the plantation sector.

In reply to these comments, the Government indicates that the wages in the plantation sector are determined by tripartite wage boards. The wage structures are determined on the basis of basic minimum wages with added allowances based on the cost-of-living index, in consultation with the employers' and workers' organizations concerned. The Government further states that, with the privatization of the estates in recent years, collective agreements are also used to determine wages and other conditions of work.

According to the Lanka Jathika Estate Workers' Union, a satisfactory national minimum wage fixing machinery should be established in the country, given that certain minimum wages are exceptionally low, in particular in the tobacco sector where some minimum wages are fixed since April 1972 (Rs.10.38, Rs.9.50 and Rs.8.28 for men, women and children, respectively).

The Committee requests the Government to indicate its position with respect to the Lanka Jathika Estate Workers' Union's considerations. It also asks the Government to provide information on any progress made in the development of the wage structure in the plantations sector, and to communicate a copy of the wage board decisions fixing the minimum wages in this sector, together with a copy of relevant collective agreements.

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

The Committee wishes to refer to its previous comments concerning the coverage of the minimum wage fixing machinery of certain trades, in particular sharecroppers and similar categories of agricultural workers, fishermen and persons working under systems established by custom or tradition.

According to the Government, it is difficult to extend coverage to these categories of workers because they are not organized and their work is seasonal in nature.

The Committee, once again, recalls that Article 1, paragraph 1, of the Convention requires the coverage of "all groups of wage-earners whose terms of employment are such that coverage would be appropriate". It also refers to paragraphs 84 to 86 of its 1992 General Survey on minimum wages, in which it emphasized the importance of the efforts to broaden the coverage and to submit reports regarding the scope in accordance with Article 1, paragraph 3. The Committee hopes that the Government will be able to provide information on progress made in the application of the Convention to all groups of workers as yet unprotected and whose coverage would be appropriate under the terms of the Convention.

The Committee is also raising some other points in a request addressed directly to the Government.

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The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the following matters raised in its previous direct request:

1. Further to its previous comments, the Committee notes the indication by the Government concerning the enforcement of minimum wages and their inspection, according to which the high amount of unpaid wages reported by the labour inspectors is due to the increased number of people in the workforce during the recent years. It also notes that the number of labour inspectors has consequently increased and all existing vacancies in the labour inspectorate are expected to be filled in early 1993. The Committee requests the Government to continue supplying detailed information on the practical measures taken for the application of national regulations on minimum wages and of the Convention including, for instance, extracts from the reports of the inspection services and any other relevant data (point V of the report form).

2. The Committee notes the information submitted by the Government explaining the reasons for the exclusion from the coverage of the minimum wage fixing machinery of certain trades, in particular share-croppers and similar categories of agricultural workers, persons working under systems established by customs or traditions, and fishermen. According to the Government, it is difficult to extend coverage to these workers because these categories of workers are unorganized and their work is seasonal in nature. The Committee recalls that Article 1, paragraph 1, of the Convention requires the coverage of "all groups of wage earners whose terms of employment are such that coverage would be appropriate". It also refers to paragraphs 84 to 86 of the General Survey of 1992 on Minimum Wages, in which it emphasized the importance of the efforts to broaden the coverage and to submit reports regarding the scope in accordance with Article 1, paragraph 3. The Committee hopes that the Government will be able to supply information on progress made in the application of the Convention to all groups of workers as yet unprotected and whose coverage would be appropriate under the terms of the Convention.

3. Article 3. Under the point raised in the observation concerning the analysis of the wage-fixing machinery in the plantations sector, the Committee has noted the Government's explanation that minimum wages are fixed on the basis of basic minimum wage with added allowance based on the cost of living index. The Committee requests the Government to supply further information on the elements taken into consideration in determining the minimum wage, in particular the calculation and the factors that determine the cost of living allowance.

4. The Committee notes that the Government refers in the report only to the legislation adopted up to 1980. It asks the Government to state whether there is any more recent legislation concerning the establishment and application of the minimum wage fixing machinery, and to supply a copy to the Office.

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The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation concerning the following points:

In its earlier comments, the Committee noted the observations made by the United Plantation Workers' Union, the Democratic Workers' Congress, the Landa Jathika Estate Workers' Union and the Ceylon Workers' Congress concerning the application of Article 4 of the Convention in the plantations sector (in particular in the tea-growing and manufacturing trade, rubber-growing and manufacturing trade and coconut growing and manufacturing trade). It noted the Government's indication of the necessity for an elaborate analysis of wage structure in the plantations sector, and hoped that, following the analysis, the minimum wage fixing machinery would be maintained and implemented in the plantations sector. The Committee notes the Government's indication in the report that the wages of the workers in the plantation sector are determined by the Wages Board, after consultation with the employers' and workers' organizations, on the basis of the basic minimum wages with added allowance based on the cost of living index. The Committee requests the Government to indicate whether the above-mentioned analysis of the wage structure in the plantations sector has actually been undertaken and, if so, whether the results have been taken into consideration in the minimum wage fixing. It also requests the Government to communicate a copy of the Wages Board decisions fixing the minimum wages in the plantation sector.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

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1. Further to its previous comments, the Committee notes the indication by the Government concerning the enforcement of minimum wages and their inspection, according to which the high amount of unpaid wages reported by the labour inspectors is due to the increased number of people in the workforce during the recent years. It also notes that the number of labour inspectors has consequently increased and all existing vacancies in the labour inspectorate are expected to be filled in early 1993. The Committee requests the Government to continue supplying detailed information on the practical measures taken for the application of national regulations on minimum wages and of the Convention including, for instance, extracts from the reports of the inspection services and any other relevant data (point V of the report form).

2. The Committee notes the information submitted by the Government explaining the reasons for the exclusion from the coverage of the minimum wage fixing machinery of certain trades, in particular share-croppers and similar categories of agricultural workers, persons working under systems established by customs or traditions, and fishermen. According to the Government, it is difficult to extend coverage to these workers because these categories of workers are unorganized and their work is seasonal in nature. The Committee recalls that Article 1, paragraph 1, of the Convention requires the coverage of "all groups of wage earners whose terms of employment are such that coverage would be appropriate". It also refers to paragraphs 84 to 86 of the General Survey of 1992 on Minimum Wages, in which it emphasized the importance of the efforts to broaden the coverage and to submit reports regarding the scope in accordance with Article 1, paragraph 3. The Committee hopes that the Government will be able to supply information on progress made in the application of the Convention to all groups of workers as yet unprotected and whose coverage would be appropriate under the terms of the Convention.

3. Article 3. Under the point raised in the observation concerning the analysis of the wage-fixing machinery in the plantations sector, the Committee has noted the Government's explanation that minimum wages are fixed on the basis of basic minimum wage with added allowance based on the cost of living index. The Committee requests the Government to supply further information on the elements taken into consideration in determining the minimum wage, in particular the calculation and the factors that determine the cost of living allowance.

4. The Committee notes that the Government refers in the report only to the legislation adopted up to 1980. It asks the Government to state whether there is any more recent legislation concerning the establishment and application of the minimum wage fixing machinery, and to supply a copy to the Office if it has not been done.

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Further to its previous comments, the Committee notes the Government's report.

In its earlier comments, the Committee noted the observations made by the United Plantation Workers' Union, the Democratic Workers' Congress, the Landa Jathika Estate Workers' Union and the Ceylon Workers' Congress concerning the application of Article 4 of the Convention in the plantations sector (in particular in the tea-growing and manufacturing trade, rubber-growing and manufacturing trade and coconut growing and manufacturing trade). It noted the Government's indication of the necessity for an elaborate analysis of wage structure in the plantations sector, and hoped that, following the analysis, the minimum wage fixing machinery would be maintained and implemented in the plantations sector.

The Committee notes the Government's indication in the report that the wages of the workers in the plantation sector are determined by the Wages Board, after consultation with the employers' and workers' organizations, on the basis of the basic minimum wages with added allowance based on the cost of living index.

The Committee requests the Government to indicate whether the above-mentioned analysis of the wage structure in the plantations sector has actually been undertaken and, if so, whether the results have been taken into consideration in the minimum wage fixing. It also requests the Government to communicate a copy of the Wages Board decisions fixing the minimum wages in the plantation sector.

The Committee is also addressing a direct request to the Government concerning certain other points.

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The Committee notes that the Government's report contains no reply to its previous direct request. It hopes that the next report will include full information on the matters raised in that direct request, which read as follows:

The Committee refers to its observation and the information supplied by the Government in its report. It hopes that, in the course of the planned in-depth analysis of wage structure and minimum wage fixing in the plantations sector, the Government will take account of the provisions of Article 3 of the Convention. Under this Article, in determining the level of minimum wages, account should be taken not only of economic factors, including the requirements of economic development, productivity and the desirability of attaining and maintaining a high level of employment, but also the needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups.

The Committee therefore trusts that in the above-mentioned analysis of wage structure and wage fixing, the employers' and workers' organisations concerned will be consulted and that the factors related to the needs of workers and their families will be considered just as those relating to the economic development and productivity, to ensure that plantation workers are no longer obliged, as they are at present, to make the members of their families, including children, work in order to obtain a satisfactory income.

The Committee asks the Government to keep it informed of any developments and any progress achieved in this regard.

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The Committee notes the comments in the Government's last report concerning the observations made by the Ceylon Federation of Trade Unions, dated 10 October 1989, which were transmitted to the Government in a letter dated 27 October 1989.

In this connection, the Committee notes that the Government indicates in its report that there is an obligation on the parties to collective agreements to honour the terms agreed upon and violations, if any, may be reported to the competent authority for action. The Government also indicates that workers who are not covered by collective agreements are bound by the decisions of the Wages Boards and the provisions of the Shop and Office Employees' Act. Violations may be reported by the workers, and employers who have committed offences will be prosecuted.

While noting the Government's comments, the Committee recalls that, in its previous observation, it noted that the inspection service had been strengthened, but pointed out that, according to the statistical information provided in the Government's report, the amount of unpaid wages reported by the labour inspectors remained high. The Committee therefore once again expresses the hope that the Government will do its utmost to remedy this situation and will continue to provide information on the practical measures taken to ensure that effect is given to national regulations on minimum wages and to the Convention.

Article 4 of the Convention. With reference to its previous comments, the Committee recalls the observations made concerning the comments submitted by the United Plantation Workers' Union, the Democratic Workers' Congress, the Lanka Jathika Estate Workers' Union and the Ceylon Workers' Congress, as well as the Government's comments concerning the application of this Article. In this connection, the Committee recalls that in its previous comments, it noted the information contained in the Government's report (March 1990) to the effect that the wages of workers in the tea-growing and manufacturing trade, rubber-growing and manufacturing trade and the coconut-growing trade were increased substantially in 1988, but that the question of wage structure in the plantations sector needed elaborate analysis. At the time, the Committee expressed the hope that such an analysis would be undertaken in consultation with the employers' and workers' organisations concerned and that the machinery for fixing and adjusting minimum wages, provided for in the Wages Board Ordinance, would also be maintained and implemented in the plantations sector. The Committee again asks the Government to indicate the measures that have been taken or are contemplated for this purpose.

The Committee asks the Government to refer to the request being addressed to it directly concerning other points.

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The Committee refers to its observation and the information supplied by the Government in its report. It hopes that, in the course of the planned in-depth analysis of wage structure and minimum wage fixing in the plantations sector, the Government will take account of the provisions of Article 3 of the Convention. Under this Article, in determining the level of minimum wages, account should be taken not only of economic factors, including the requirements of economic development, productivity and the desirability of attaining and maintaining a high level of employment, but also the needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups.

The Committee therefore trusts that in the above-mentioned analysis of wage structure and wage fixing, the employers' and workers' organisations concerned will be consulted and that the factors related to the needs of workers and their families will be considered just as those relating to the economic development and productivity, to ensure that plantation workers are no longer obliged, as they are at present, to make the members of their families, including children, work in order to obtain a satisfactory income.

The Committee asks the Government to keep it informed of any developments and any progress achieved in this regard.

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The Committee takes note of the information supplied by the Government in reply to its previous comments.

1. In those comments, the Committee referred, amongst other matters, to the comments submitted in 1984, 1985 and 1986 respectively by the United Plantation Workers' Union, the Democratic Workers' Congress, the Lanka Jathika Estate Workers' Union and the Ceylon Workers' Congress, concerning non-observance of Article 4 of the Convention, particularly with regard to the maintenance of machinery for fixing and adjusting minimum wages in consultation with the organisations of employers and workers concerned. The allegations made by the above trade union organisations concern a resolution of the Wages Board for the Tea-Growing and Manufacturing Trade, providing for an increase in the cost-of-living allowance for plantation workers. The above-mentioned organisations alleged that, contrary to usual practice, the Commissioner of Labour failed to convene a further meeting of the Wages Board following publication of the resolution, with the result that it could not be implemented because it had not been re-examined by the Board in the light of the objections of the parties, and had not been submitted for the Minister's approval in accordance with the procedure laid down in section 29, subsection 3, of the Wages Boards Ordinance.

In its previous report, the Government indicated, in reply to these allegations, that the objections received following the publication of the resolution of the Wages Board drew attention to the serious implications of such an increase for the national economy, and that a committee under the chairmanship of the Minister of Labour, set up at the request of the main unions in the plantation sector, was to examine the whole structure of wages in this sector, with the unions participating. This committee made an interim recommendation to increase the cost-of-living allowance by 3 cents per unit of one point cost-of-living index increase. The Government also indicated that until export conditions and internal conditions were stabilised, it would not be practicable for the committee to reach any conclusive decisions.

The Committee took note of this information and recalled that, under Article 4 of the Convention, machinery for fixing and adjusting "from time to time" the minimum wages for groups of wage earners whose terms of employment are such that coverage would be appropriate must be established and maintained, in full consultation with the employers' and workers' organisations. It also referred to Paragraphs 11 and 12 of the Minimum Wage Fixing Recommendation, 1970 (No. 135), which provide that such adjustment should take account of changes in the cost-of-living and other economic conditions, and asked the Government to provide information on any measure taken or under consideration to ensure the establishment and maintenance of machinery for fixing and adjusting minimum wages in accordance with the Convention and the national legislation.

In its last report (received in March 1990), the Government indicates that wages of workers in the tea-growing and manufacturing trade, rubber-growing and manufacturing trade and the coconut-growing trade were increased by substantial amounts in 1988, but that the question of wage structure in the plantations sector needs elaborate analysis. The Committee notes these indications and hopes that such an analysis will be undertaken in consultation with the employers' and workers' organisations concerned and that the machinery for fixing and adjusting minimum wages, provided for in the Wages Boards Ordinance, will also be maintained and implemented in the plantations sector. The Committee asks the Government to indicate the measures taken to this end.

2. In its previous comments, the Committee also noted the allegations made by the Employers' Federation of Ceylon that a large number of employers outside this Federation were violating the regulations respecting minimum wages. The Federation considered that it was absolutely essential that the inspection machinery should be strengthened so that such employers are made to comply with the laws on minimum wages. The Committee therefore asked the Government to provide detailed information on the operation of the inspection service responsible for supervising the application of minimum wage standards.

In its last report, the Government indicates that the inspection services have been strengthened by the recruitment of additional labour officers. It adds that in the event of violations with regard to payment of minimum wages, the workers concerned can submit complaints either individually or through their trade unions, or to the courts of law and that, in most cases, they obtain satisfaction. The Committee notes this information with interest. However, the Committee notes from the statistical information provided in the report that the amount of the unpaid wages recorded by the labour inspectors remains fairly high. It therefore hopes that the Government will do its utmost to remedy this situation and that it will continue to provide information on the practical measures taken to ensure that effect is given to national regulations on minimum wages and to the Convention.

3. The Committee also takes note of a communication from the Ceylon Federation of Trade Unions, dated 10 October 1989, allegating violations of minimum wage provisions and connected matters (such as overtime wage rates) by certain employers and which are detrimental to the collective bargaining right of unions. The Committee notes that these allegations were transmitted to the Government in a letter dated 27 October 1989 so that it could make any comments it deemed appropriate. The Committee therefore intends to examine the above allegations at its next session.

4. The Committee also asks the Government to refer to the direct request being addressed to it concerning a number of other points.

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