Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

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.