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Labour Market Reforms Presentation to EFC Council By Director General

Labour Market Reforms Presentation to EFC Council By Director General. Sri Lanka - Major Challenges : Employment creation (productive employment) Increased incomes Compliance with International Labour Standards. Employment Creation : Requires Investment

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Labour Market Reforms Presentation to EFC Council By Director General

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  1. Labour Market Reforms Presentation to EFC Council By Director General

  2. Sri Lanka - Major Challenges : • Employment creation (productive employment) • Increased incomes • Compliance with International Labour Standards

  3. Employment Creation : Requires Investment Increased Income : Requires enhanced productivity Compliance with I L S : Requires fundamental legal framework and implementation

  4. Investment and Productivity : Requires efficient labour market

  5. Some Key Features in an Efficient Labour Market • Employable Workforce • Job Placement Services • Facilitatory Industrial Relations system including efficient dispute settlement mechanisms • Rational / Streamlined Terms & Conditions of employment • Streamlined termination procedures • Unemployment protection • No undue regulatory imposition on labour costs • Flexibility

  6. World Economic Forum • The Global Competitiveness Report 2003/2004 • The Business Competitiveness Index • Criteria : • Sophistication of Company operations and strategy • The quality of the national business environment

  7. 2003 / 2004 Sri Lanka – 57th out of 101 2002 / 2003 Sri Lanka – 48th

  8. Sri Lanka : Improving Rural and Urban Investment climate (WB/ADB Report – 2005) Urban Sector constraints : Electricity, Policy uncertainty, Macro instability, Finance cost, Labour Regulations

  9. Employable Workforce • Rationalisation of Secondary, Tertiary Educational Policies / Strategies • Greater interaction between private sector and policy makers • Greater emphasis on identified areas vocational education / skills development • Special focus on foreign employment opportunities • Development of Entrepreneurial skills for self employment

  10. Job Placement Services • Accurate collection and dissemination of Labour Market Information • Counselling & Placement • “Jobsnet” - Expansion

  11. Facilitatory Industrial Relations System • Currently, system is adversarial • System needs to facilitate industrial harmony for productivity and competitiveness at enterprise & National Level • Develop enterprise based workplace cooperation mechanisms • Focus on IR culture than Legal Framework

  12. Effective & Speedy dispute settlement mechanisms • Alternate dispute resolution procedures, eg; Mediation

  13. Industrial Relations : Legislative Reforms • Focus on, • Reciprocal obligations between employers and trade • unions • E.g: Trade Union recognition • Collective bargaining • Notice of strike / lock out • Strike Ballot ?

  14. Rational terms and conditions of employment • Streamline working hours / weekly holidays for possible uniform application for uninterrupted production/services • Review of holidays • Streamline wage fixation mechanisms • Restructure Wages Boards • - National Wages Council (?)

  15. Unemployment Protection • Matter for social concern • Need for balance between flexibility in termination laws and unemployment protection • National unemployment insurance scheme • Remove / Minimize burden from individual enterprises Role of ETF

  16. Streamline Termination procedures TEWA remains a major issue Impact on employment creation / atypical forms of employment Current legislation needs to be reviewed for greater flexibility Labour Tribunals : Review the right to the relief of reinstatement.

  17. Undue regulatory imposition on labour costs TEWA No further increases in superannuation/protection benefits No legislated wage increases

  18. Trade Union Concerns • Freedom of Association and recognition of trade unions • Right to collective bargaining • Undue restrictions on the right to trade union action • Protection of Worker Rights (Job Security) • Unemployment insurance Vs. Flexibility in termination • laws • Consultation on socio economic issues (Social Dialogue)

  19. Political Leadership for change ? • Bipartite Initiative for Change ?

  20. Consultation (Dialogue) at National Level • National representative Body (Tripartite) • Efficient Secretariat : Research, Policy papers etc • Identified common objectives • Identified scope of activities / Responsibilities • Form Debating Forum to Constructive Consultation and meaningful outcome

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