Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

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

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.