However, the RPCs criticized the president for making an arbitrary decision jeopardizing a collective agreement signed last year. Wage setting in Sri Lanka includes the collective bargaining process as an important method, particularly in the banking sector, in large commercial enterprises and in the plantation sector. The Ceylon Employers Association (EFC) represents its employers in these negotiations. Collective agreements between the parties are legally applicable after being placed under the authority of the Labour Commissioner and published in the government scoreboard. The Labour Disputes Act provides for collective bargaining. However, the requirement that a union represent at least 40% of workers in a given workplace appears to be quite restrictive. The Labour Disputes Act defines the collective agreement as a collective agreement on the conditions and conditions of employment of the labour force in each sector. The collective agreement (CBA) generally offers the employee better benefits than statutory benefits. If a KBA has less favourable provisions than those provided by law, it cannot be enforced. The KBA will come into effect on the day of its publication. It binds the parties, unions, employers and workers mentioned in the agreement. A CBA may be concluded for a specified or indeterminate period. An indeterminate KBA may be cancelled by a written notification of dismissal, in the prescribed form, sent to the Commissioner and any other party, union and employer.
A KBA must be written and signed by the parties or their representatives. Over the past two years, unions have demanded a daily base salary of 1,000 aff. but then accepted the final offer of the RPCs and signed a revised collective agreement last year. 28 July 2016IndustriALL, the free trade area union and general service employees, has signed a major collective agreement with Trelleborg Wheel Systems Lanka. For the collective bargaining process, a trade union delegate is appointed with a 40% staff membership, who is then the main negotiator in agreement with the other unions in the sector. A collective agreement between regional plantation companies (RPCs) and trade unions is under threat after the government increased the daily wage of plantation workers to 1,000 aff. If the terms of the collective agreement fail because the employer does not comply with the conditions, a conciliation is initiated by the industrial relations department to resolve the dispute through a transaction agreement. If this fails, both parties can use voluntary arbitration to resolve the dispute. When the union initiates trade union action, the forced conciliation is carried out by the labour court by the Labour Commissioner. During this trial, disputes are refereed by a single panel of arbitrators and the decision of the labour tribunal is binding on the parties.
However, the High Court and the Court of Appeal are on the verge of legal recourse. Sri Lanka`s free trade zones are one of the most difficult areas in the world for trade union activities and workers` organization. However, despite the fact that workers have faced strong anti-union and unfair labour practices by employers, the member organisation of IndustriALL The Free Trade Zone and General Services Employees Union (FTZ – GSEU) has successfully won collective bargaining with Trelleborg Wheel Systems, the Sri Lankan subsidiary of a Swedish multinational manufacturer of agricultural and industrial tyres. The agreement, which includes about 140 workers at the factory, stipulates that the employer respects the right of each worker to become a member of the union and prevents workers who are discriminated against because of union work. The employer also expressed its willingness to create material and organisational conditions for trade union policy activities, including holding trade union meetings on the company`s site and a break for union officials who may participate in trade union policy activities when this is communicated.