Call # 240 October 2001

Sri Lanka’s first Free Trade Zone was set up in 1978 as part of a structural adjustment programme formulated by the World Bank. Today, Sri Lanka has three major free trade zones - Katunayake, Biyagama and Kogalia - employing over 100,000 workers. Most of them work in garment manufacture. The Free Trade Zone Workers’ Union (FTZWU) was set up in January 2000 after years of efforts to organise and train workers. It is the first union in Sri Lanka to have set up in the free trade zones. Although Sri Lanka legally recognises the right to organise and to collective bargaining, including in the free trade zones, the FTZWU is still not recognised by the employers of the factories where it has set up branches. This is in violation of Sri Lankan law and of conventions 87 and 98 of the UN’s International Labour Organisation (ILO).

75% of the workers employed in the zones are women aged between 20 and 30, mostly from the rural areas. They are considered more docile and malleable than their male counterparts, and less likely to demand that their rights are upheld. These workers consequently endure working conditions which are difficult, illegal and often dangerous to their health. Their wages range between 70p and £1.10 a day which, according to World Bank criteria, puts them close to the extreme poverty threshold. Compulsory overtime which is not paid at the legal rate, excessive fines, poor health and safety and sexual harassment are also commonly reported by the workers.

Mobilising the unions...

It is in this difficult context that free trade zone women workers have managed to organise gradually and to set up the FTZWU. Almost two years on however, in spite of the fact that it has followed all legal procedures for registering and that it functions democratically, only one of the FTZWU’s eleven branches has been recognised. Four of the remaining ten branches have been ‘busted’, its members threatened, beaten and sometimes even arrested when calling for negotiations with employers.

A branch of the FTZWU set up in Fine Lanka was busted in March 2000: the employer chose to close the factory and dismiss its 858 workers (90% of them members of FTZWU) rather than allow them to operate a union. He re-opened a year later, employing a non-unionised workforce.

Another branch is actively working to be recognised at Cosmos Macky, the Korean-Sri Lankan joint venture producing sportswear for export in one of the free trade zones. The main leaders of the union have been harassed, however, and 62 workers were dismissed recently in an effort to bust the union.

In the Biyagama zone, the Korean-owned Dulon Zipper, which manufactures zips for use in the domestic and export garment industries, still refuses to recognise the FTZWU branch set up in December 2000 even though 90% of workers are members. A complaint has been lodged with the Labour Commissioner.

... for the upholding of the law

The right to form a trade union and to bargain collectively is formally recognised in Sri Lankan law. What is more, a recent amendment to the Industrial Disputes’ Act demands that employers recognise a union when 40% of its employees are members. These rights are enshrined in conventions 87 and 98 of the ILO, both of which have been ratified by Sri Lanka.

The FTZWU is simply asking that the law of Sri Lanka and international agreements ratified by Sri Lanka be enforced. Already, a campaign has been launched, together with other unions, calling for the enforcement of the amendment to the Industrial Disputes’ Act. Programmes for raising the awareness of and for training workers have been put in place in the zones. Complaints have been lodged with the Labour Commissioner. FTZWU is now calling for international support of its efforts.

Labour Behind the Label therefore calls on its supporters to write to Mr Alavi Moulana Esq, Sri Lanka’s Labour Minister, calling upon him to ensure that Sri Lankan law and ILO Conventions be enforced and that workers’ right to join a trade union and bargain collectively is respected.

Proposed text of letter (please amend as you wish)

Mr Alavi Moulana. Esq.

Honourable Minister of Labour

Ministry of Labour

Colombo 05

Sri Lanka Fax: 94 1 588 950

Dear Minister,

I learn through Labour Behind the Label that the Free Trade Zone Workers’ Union

(FTZWU) and its branches are not yet recognised by employers of Sri Lanka’s three free trade zones. In support of the FTZWU’s legitimate demands, I urge you to:

intervene to ensure that the FTZWU be recognised in accordance with ILO Conventions 87 and 98 on freedom of association and collective bargaining

ensure that working conditions on the free trade zones are improved.

Yours sincerely.....

You may wish to send a copy of your letter to the Colombo office of the ILO:

The Director

ILO Area Office

PO Box 1505

Colombo

Sri Lanka fax: 94 1 500 865