The Employers Federation of Ceylon (EFC), the unofficial trade union of employers, has raised concerns over the compulsory retirement age for private sector employees by amending the Employees’ Provident Fund (EPF) Act, introduction of a Social Security Fund as well as implementing a daily wage of Rs.1,000 for the plantation workers.
In a circular to members, it said the EFC policy relating to determining retirement age of private sector employees as well as wages are well established and considers many factors including sustainability of companies.
“For instance, it has been our position that the issue of retirement age should be determined by parties and agreed contractually, allowing many related issues such as affordability, ability to work, health and safety of employees as well as matters relating to their wishes – e.g. on how superannuation benefits should be enjoyed – to be considered,” it said.
The EFC said it long opposed mandating of wages for the private sector – other than determining minimum rates of wages, again through ‘tri-partite processes’ – as it cuts across the principles of determining wages based on market forces and employee involvement including Collective Bargaining.
“The workers of Regional Plantation Companies (RPCs) – in respect of whom the authorities are trying to intervene in this instance– have long standing collective agreements in place which are applicable for the entire industry and considered as a ‘model’ by the International Labour Organization.
Whilst such matters are best addressed by the stakeholders themselves, ad hoc interventions are likely to have serious consequences for all employers and the national economy, especially at times like the present,” it said.
It sought an urgent meeting of the tripartite body – the National Labour Advisory Council to discuss these contentious proposals
(LIN)