Knowing the labour law; Collective Bargaining in Sri Lanka

This shows how unity is getting strength. In a real scenario, employees are facing more practical challenges in their work span. In large scale organizations rarely concern individual labour problems. So, the labourers are together for common reason that makes employer attention and questioning and gains their needs simply call "collective bargaining". Venn, .(2009)

Labour unions are formed by the employees within the workplace to safeguard employees from bourgeois society. The unions protect employee rights. The unions are performed against the proper wages, working hours, employee safety, employee benefits, harassment, favouritism and unfair dismissals. Labour unions are more powerful associations in the monopoly market such as; Petroleum co-operations, Railway unions, doctors unions, educational unions and etc. Union were formed within the government and semi-government departments in Sri Lanka. These unions are associated with the bargaining power of government employees. Likewise, private sectors also formulated the unions within their organization. for example; Bankers union, Tea estate unions. and etc.

Let's now discuss how collective bargaining plays a key role in the context of Sri Lanka. 

In the recent past, Sri Lanka had experienced Railway trade union strike. Railway trade union includes some sub unions such as; Loco pilots union, Station masters union and Railway guards union. The strike has held for the twelve consecutive days for the salary negotiations. Due to the strike, numerous innocent passengers were affected. During these twelve days, Ceylon Transport Board and Private buses had scheduled to continuous operation. Further, the postal service had affected. The government and civilians were suffered in tonnes of ways. Then, The President of SL and Civil aviation minister called for the unions to collective agreements. These have fulfilled their requirements and call off the strike by railway union. (source; newsfirst.lk) This was a success story of collective bargaining.

However, the sample of failure story can be placed at this time. We all commonly know the Tea estate labour union strike held often in every year. In fact, Tea and Rubber industries are higher export concern products to the international market of Sri Lanka. The estate labours union called a strike to increase their daily wages. The estates' companies were denied their salary requirement. Even the government is not much concerned on the labours, because of party politics were heavily played in labour unions.  The estate companies have listed some reasons for offering low wages to labours such as; low yield of trees, unable competitive prices in the overseas market.

Source - Global Press Journal

On the other hand, estate labours are highly dedicated to the Sri Lankan export economy. But, the estate companies paid them to minimum wages, low-level education standards, lack medical facilities and even they don't deserve the homes. In contrast, labour unions are highly favoured by politicians. So, the labour union had lost its collective bargaining due to political influence. Still, the estate workers are fighting for the right wages. (source; Daily FT)


We have seen the current examples of practices of collective bargaining. Unionized employees are guaranteed union advocacy in the workplace. Unions are ensured job security and higher wages.  Practically employee unions are assisted with the contribution of all employees. But, unions are mostly doing favouritism play for certain groups of people or who having a good network enjoys the great benefits by the labour union. Actually, the labour unions are kind of political market. Ruwanpura, K. N. (2015)

Although collective bargaining is said to stimulate positive outcomes for the unions, not all union acts become successful in the end. Sri Lankan's estate struggle can be seen as the best example of why collective can also not become successful. Other macro-level factors play a key role when it comes to deciding how successful the union acts will be. Flanagan, Robert, J. (1999).

Nowadays unions have become lessor strength and most of the employees are not attracted to union actions. Because labour unions are not suitable for the modern workplace.  The union forming and practice union actions are prohibited within some organizations. An employer is don't like to depend on the union decision all the time.

However, labour unions are formed in due of, establish the labour law and safeguard the employees from uncertain circumstances. If an employer assumes the importance of his employees in his organization he makes them is work happy. Likewise, this situation of workplaces not requires labour unions or trade unions. Nevertheless, most employers are not like that.

In labour union concept is involved in certain disadvantages to organizations and employees. So, an organization should contain a highly attractive human resource policy itself. If the good human resource management is in top-level function among the employees, the labour union interaction would be considerable lessor level. Because labour unions are a big threat to the organization. The organization always should depend on labour unions. The labour unions interfere when implementing the new innovations and expand or diversify the business. This could not be a good thing for the organization's long run. Because of organization stability and existence is important. Ashe-Edmunds, S. (2019).

According to SWOT analysis, higher and aggressive Labour union involvement is Weakness to the organization. If it to be a successful organization, should apply the integrated Human Resources Management and correct leadership is to be practised.

Thank you.

References

Ashe-Edmunds, S. (2019). The Disadvantages of Union Membership From an Employer's Perspective. Small Business - Chron.com. [online]. available on <http://smallbusiness.chron.com/disadvantages-union-membership-employers-perspective-33242.html>. accessed on 17th January 2020.

Flanagan, Robert, J. 1999. "Macroeconomic Performance and Collective Bargaining: An International Perspective." Journal of Economic Literature, 37 (3): 1150-1175.[online]. available at<https://www.aeaweb.org/articles?id=10.1257/jel.37.3.1150> access on 19th January 2020.

Ruwanpura, K. N. (2015) ‘The weakest link? Unions, freedom of association and ethical codes: A case study from a factory setting in Sri Lanka’, Ethnography, 16(1), pp. 118–141.[online]. available at.<https://journals.sagepub.com/doi/full/10.1177/1466138113520373>. accessed on 20th January 2020.

Sahana David, M.(2017) Fighting Poverty, Sri Lankas' Tea Estate Workers Demand Pay Increase. [online] Available at,< https://globalpressjournal.com/asia/sri_lanka/fighting-poverty-sri-lankas-tea-estate-workers-demand-pay-increase/> Access on 16th January 2020.

Venn, D. (2009), "Legislation, Collective Bargaining and Enforcement: Updating the OECD Employment Protection Indicators", OECD Social, Employment and Migration Working Papers, No. 89, OECD Publishing, Paris,[online].Available at; <https://doi.org/10.1787/223334316804>. accessed on 20th January 2020. 

Bibliography

Daily FT (2018). Tea estate workers continue to strike for seventh day. [online]. Available at;<http://www.ft.lk/front-page/Tea-estate-workers-continue-strike-for-seventh-day/44-668624 >. viewed on 16th of January 2020.

Mason Stevenson, (2018). Pros and Cons of Labor Unions. [online] Available at; 

<https://www.hrexchangenetwork.com/hr-compensation-benefits/articles/pros-and-cons-of-labor-unions>. access on 17th January 2020.

News first. (2019). Railway strike called off after 12 days [online]. Available at;<https://www.newsfirst.lk/2019/10/07/train-strike-called-off-3/>. viewed on 16th January 2020.

Sahana David, M.(2017) Fighting Poverty, Sri Lankas' Tea Estate Workers Demand Pay Increase. [online] Available at,< https://globalpressjournal.com/asia/sri_lanka/fighting-poverty-sri-lankas-tea-estate-workers-demand-pay-increase/> Access on 16th January 2020.