Government trying to slash workers’ benefits

Dancing to the tune of IMF

Now the government is planning to equalise the incomes and benefit’s by cutting into both sides. It is a time where all workers are suffering the inflation created by the policies of the government.
 by Vickramabahu Karunaratne

(April 17, Colombo, Sri Lanka Guardian) The campaign against the Proposed Pension Bill that was launched on the 11th (last Monday) opposite the fort Railway Station, was a success. Workers agitated against this effort of the government to do away with a social security benefits that they have won by sweat and blood of generations of workers movement. Provident fund was kept sacred and it was not possible to interfere with it without the consent of the workers movement, employers or the state could not make use of this fund in their own way for any investment project. What has been advised by the IMF to the government is to 13-4make it more solvent. They want it to be used for their programme of investments. In effect that means handing over the fund money to the greed of capitalists. It is claimed that the proposed pension bill will be rushed through the Parliament before the next May Day. “It is mainly the Workers’ money in EFF, ETF and gratuity which will be used as the initial capital and the day-to-day running of the proposed fund. Therefore, it has very adverse effects on the workers’ money’ said Linus Jayathilaka president United Federation of Labour.

Daylight robbery

Many trade unions complained that under the pretext of offering a state pension scheme to the private sector workers, what the government doing is a daylight robbery of workers money saved under difficult circumstances. Trade unions accused the government of pandering to the IMF. T.M.R.Rasseedin, President of Ceylon Federation of Labour (CFL) said the scheme in all its appearances, is a ‘deceitful device employed by the government to meet its commitment to the IMF.’ In a statement, he said the question arises as to whether the project is linked to the various commitment made to the IMF to raise the saving rate and the rate of investment in the country. According to the report in one weekend paper, Rasseedin said that there is even confusion on the question of contributions. “The minister (Gamini Lokuge) stated that the envisaged contribution will be drawn from the current deposit in the Fund. The secretary to the ministry said contribution will have to come in as an addition to the current payment to the EPF.” The government is obeying the IMF commands , there could be no doubt about that. Not only that they are trying to get into their hands workers money in the provident fund, but also they are planing to tax the state sector employees. Government workers were given the benefit of tax relief because their salaries and perks were less than the wages and other benefits given to the private sector workers.

Now the government is planning to equalise the incomes and benefit’s by cutting into both sides. It is a time where all workers are suffering the inflation created by the policies of the government. Even the plantation sector workers are challenging the traditional leadership of Thondaman because of the demand they are making for a salary increase beyond 500 rupees per day. In that situation this attack of the government will be resisted by a common struggle.

Most certainly the government has got into a muddle. In the first place, the government should ensure that all employers are paying EPF/ETF. We know how employees suffer when these payments have not been made. Secondly the government should immediately increase wages to compensate the inflation in the last five years. It is time that the workers get together and prepare a solid fight that will spread into the plantation sector too.

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