Tuesday, September 24, 2019

People and Organisation : Employee Relation (Lecture 04)

EMPLOYEE PARTICIPATION IN TRADE UNION AND ITS IMPACT OF ECONOMIC DEVELOPMENT OF SRI LANKA

Employee participation at workplace level helps to create better labour-management communication, prevents and absorbs disputes and helps to find solutions for both work and production-related issues. On the other hand various employee participation practices can play a vital role to promote collective bargaining and sound industrial relations.

The process of employee participation in the workplace has traditionally taken place in Sri Lanka through the formation of trade unions. In Sri Lanka, trade unions have been linked with the struggle for independence. In order to bargain with the employer on behalf of its members or to be recognised for bargaining purposes, Sri Lankan legislation requires that a trade union must be registered as such with the relevant authority (Ranaraja, 2013).

According to International Labour Organisation (2019), there are 2,074 registered trade unions in Sri Lanka, of which 54.5% are in the public sector, 27.5%in public corporations and 18 % in the private sector.  9.5% of the total workforce is covered by the trade unions of Sri Lanka.


Is there a right to strike?


The Sri Lankan law does not explicitly recognise a right to strike, as in the case of the fundamental right to freedom of association, which also includes the right to join a trade union of choice. These fundamental rights do not at any point state that it includes the right to strike.

However, the Trade Unions Ordinance defines as to what strike action involves and therefore, in the context of the Sri Lankan labour law, strike action can be regarded as a legitimate trade union activity, except in situations where it is restricted by law (Mudalige, 2016).


Impact of strikes to economic development


For the past few months, Sri Lanka has been repeatedly hit by trade union strikes and street protests. There are more labour-intensive industries than capital-intensive industries in Sri Lanka. Therefore the labour is one of the key factors that drive economic growth and the workforce of the country is highly affected by these strikes.

These kinds of trade union actions and street protests bring on the tremendous economic cost that directly and indirectly delays the economic growth of the country. When people are frequently on the streets, they waste their as well as others’ time which could have been used for the development and betterment of the country.

Eg: During the recent railway strike, the number of people badly affected and found it difficult to continue their day-to-day activities due to trade union action.

Today, the country needs foreign direct investment to boost the economy. When the labour force quality is at stake, they will not invest in labour-intensive industries and the economic image will be destroyed.

However, it is not fair to note that the employees should refrain from taking trade union actions. If these trade unions can reduce the frequency of strikes, provide early warning signals before the strike, be genuine with the objectives instead of getting politically motivated, the negative impact will be mitigated to achieve economic development.


References



International Labour Organization, 2019. https://www.ilo.org. [Online] Available at: https://www.ilo.org/global/lang--en/index.htm [Accessed 24 September 2019].

Mudalige, N.K.K., 2016. Daily news E - paper. [Online] The Associated Newspapers of Ceylon Ltd. Available at: http://www.dailynews.lk/2016/08/22/features/91046 [Accessed 24 September 2019].


Ranaraja, S., 2013. Emerging trends in employee participation in Sri Lanka. International Labour Office, Geneva, pp.12-15.

10 comments:

  1. Collective bargaining between various parties is challenging and excellent explanation about trade union activity impact on our economy with current examples. As you mentioned need to avoid political motivation in trade union activities, also we need good negotiable leaders in both sides. Thanks for sharing.

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    Replies
    1. Even though we can’t stop Political intermediation ,minimize their involvement will mitigate the bad impact .Thanks Jinendran for your comments

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  2. Interesting article , nicely explained , thanks for sharing this.

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  3. Interesting article and nicely explain. thanks share your knowledge in this blog. good luck.

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  4. In Sri Lankan context, almost all trade unions are politically motivated where they penalize general public in an unethical way such as always going for strikes. There are plenty of other options they could consider before strikes which is the last option. Nice article.

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  5. Since you have discussed the employee relations in Sri Lankan context, labour union politics play a significant role in those strikes which impact on economic development. The reason behind employee union politics is influencing power and mobilizing more employees in the strikes to gain success.

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  6. In Sri lankan context Trade union action is jerking and it is not reflected true demanding on expectations. Nicely described. Thanks for sharing .

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  7. In Sri Lankan context the unions step up to the extreme level first where they might discuss things after.

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  8. Good article Nethra, we can experience the current union issues in the SriLanka. Union should work towards the benefit of the employees of the organization and to the benefit of the organization. But currently Union has forgotten the basic needs of the union. Thanks for sharing

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  9. The strikes taken by the unions can effect in both and good ways. In Sri Lanka some of the strikes affects badly on the general public as well and we experience it very well.

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