CMNT_TITLE

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

Other comments on C131

Observation

Direct Request

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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.