By Feizal Samath
COLOMBO, May 15 2001 (IPS)

Rising living costs and attempts to liberalise Sri Lanka’s labour markets have propelled the country’s main Marxist group into the forefront of workers’ rights, outdoing other more established trade unions.

The People’s Liberation Front or JVP — better known for two failed efforts to overthrow the government — is making giant strides in the labour movement even as the government plans wide- ranging labour reforms enabling hire-and-fire policies.

Within some two years, the JVP-backed Inter Company Trade Union has penetrated a majority of large and mid-scale businesses in the country, ousting more established trade unions that were comfortably ensconced at the top.

It has also grudgingly drawn praise from unions for its militancy-type campaigns to back worker demands.

Traditional labour power bases enjoyed by the Ceylon Mercantile Union (CMU) and left-wing political parties were wowed almost instantly by the young, charismatic leadership offered by the JVP.

While the JVP campaign in workplaces has rung alarm bells in the industry, government and foreign missions, and quite a few business leaders admire the JVP’s efforts.

“I am not surprised. When the country is going downhill and the common man is being hit below the belt from all sides, it is natural that he needs a forum to voice his grievances. I would not blame the JVP for being that voice,” said the head of a Sri Lankan conglomerate who declined to be named.

The JVP is pushing for a wage rise of at least 2,000 rupees (24 U.S. dollars) per worker to offset rising prices. It recently concluded a campaign where it collected more than a million signatures in a petition to President Chandrika Kumaratunga to halt the rise in food prices.

Inflation is officially estimated to rise to 9.5 percent this year from 6.5 percent in 2000 due to hikes in diesel, kerosene, gas and electricity prices. These have in turn triggered a rise in the cost of food and other goods.

The price of diesel, used extensively in the transport of goods, has risen by more than 100 percent in the past year.

The government has also announced a wage freeze for six months in last month’s budget to trim spending.

Amid this economic picture, the government has accused the JVP of triggering worker unrest in a bid to capture political power through economic instability.

However, the JVP’s parliamentary group leader and its main spokesman Wimal Weerawansa says the party has always placed the national interest first in whatever it did.

“We have become the scapegoat for all the economic miseries of the country. Investment is not coming not because of us, but because of the weak policies of the government,” said Weerawansa.

“Even before we started our trade union activities, Sri Lanka was not attracting foreign investment. Considering the massive kickbacks some politicians demand from the businessman, I am surprised if anyone invests in Sri Lanka,” he added, referring to complaints by multinationals.

Weerawansa said some businesses are stuck in an archaic mindset when dealing with labour issues: “Salary increases for the board of directors and the management are given without any problems. But when the workers want a raise, it becomes a national calamity.”

The JVP campaign also aims to alert workers and opposition parties to government attempts to liberalise the labour market and allow near hire-and-fire policies.

The business community has for a long time complained of the rigidity of labour laws which it says favours the worker and not the employer. Closure of companies, layoffs or dismissal of workers for disciplinary reasons are restricted under current labour laws.

So far, the government is determined to go ahead with labour reforms — at the request of the International Monetary Fund (IMF) which recently approved a 500 million dollar bailout package for Sri Lanka.

A memorandum of understanding between the government and the IMF last month states that labour reforms aim for greater labour mobility with adequate social safety nets in place.

In recent times the government, private sector economists and the corporate sector have accused the JVP of impeding growth in Sri Lanka.

Major transnational firms like Bata and Unilevers have even contemplated shutting down production units and importing everything due to worker unrest triggered by the JVP.

“If the labour force continues to act without foresight and they continue to resist change, we will be compelled to take our production facility out of Sri Lanka,” Unilevers chairman Mike Thompson said.

Analysts said demands by JVP-led unions pegged to the rising cost of living were becoming a serious issue in many companies. As many as 14 firms have either shut down or are facing difficulties.

Companies are struggling to cope with union issues as the comparatively-young JVP turns into a heavyweight in the trade union business.

Ceylon Biscuits, a fully-owned Sri Lankan company and the country’s premier biscuits manufacturer, told reporters in April it would would be forced to transfer production facilities to India or China amid massive labour unrest led by the JVP trade unions over a bonus issue.

The JVP union, company officials said, had instructed CBL’s entire 1,000-member workforce to stop working overtime.

Ceylon Biscuits chairman Mickey Wickramasingha said the new pay demands flouted a collective agreement signed between the company and the union that is effective until December 2001.

“Highly militarised union workers are on the way out, but Sri Lanka is going backwards in time with the JVP assaulting the country’s economy on all fronts,” he added.

Ceylon Biscuit officials also said a wave of subtle violence was being launched by the JVP against dissenting workers, including threatening workers who wanted to work overtime.

This has fears of a 1988-89 scenario when the JVP launched crippling strikes, shutdowns and excessive wage demands as part of its attempts to oust the government through an armed revolt. Thousands were killed by government forces and the JVP before the military crushed the revolt.

In 1971, the JVP’s first rebellion also ended in failure and similarly cost thousands of young lives at the military’s hands.

In recent years, the group has turned into a formidable third force in politics next to the ruling People’s Alliance and the main opposition United National Party.

Its members are young and mostly Sinhala-speaking graduates, who find it difficult to get top management jobs in the English- oriented private sector. Its 10 members of parliament represent the third large political party in the legislature.

Other union leaders say some firms and politicians are using the JVP as a scapegoat for depriving workers’ their rights. “Unions in general have been perturbed at attempts to use the JVP issue to deprive trade unions due recognition and workers their rights,” said veteran trade unionist Bala Tampoe.

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