SriLankan Airlines EPF/ETF Bungle: Government Summoned To ‘Show Cause’ Before ILO Governing Body In Geneva

SEPTEMBER 16, 2018

The government of Sri Lanka has been summoned by the International Labour Organization to provide show cause and explain reasons for the non-compliance and execution of a valid statutory order made by the Ministry of Labour regarding the payment of mandatory retirement benefit fund contributions by the SriLankan Airlines to its Flight Attendants Union, at the upcoming convention in Geneva, scheduled to be held between the 25th October and 8th November 2018.

The Ministry of Labour of Sri Lanka had earlier on the 16th December 2017 made a landmark decision ruling in favour of the Flight Attendants Union of SriLankan Airlines, when they filed a complaint against its employer for the violation made by the airline against the country’s EPF Act.

However with SriLankan Airlines not adhering to the Commissioner General of the Ministry of Labour’s ruling, the Flight Attendants Union sought further relief by sending their complaint initially to the Ministry of Labour on the 10th January 2018.

The letter of complaint was sent after inquiries were made by the FAU pertaining to the non-compliance of the valid statutory order provided on the 16th of December 2017. The then (ACL) Colombo South Ms. Iresha Udayangani Gamage informed the FAU representative that the Commissioner General of the Ministry of Labour R.P.A. Wimalaweera had instructed her office not to proceed with the matter despite the ruling being made.

However on the 15th and 16th of March 2018 the FAU received two letters from the Ministry of Labour to attend a meeting on the 21st of March 2018 with the Commissioner General R.P.A.Wimalaweera based on the statutory ruling made by the Ministry of Labour of Sri Lanka on the 16th of December 2017.

Strangely the first letter dated 15th March 2018 with reference number IR/COM/05/2018/55 was signed by K.D. Manoj Priyantha of Commissioner Industrial Relations and the letter dated 16th March 2018 bearing reference CS/COA/D/2/349/17 was signed by Ms.P.W.M.Gamage the Assistant Commissioner General.

Prior to attending the requested meeting the FAU wrote to the Assistant Commissioner Ms.P.W.M.Gamage on the 19th March 2018, with copies to the Minister of Labour, Secretary to the Ministry and the Commissioner General of Labour (CGL), stating that it is very clear the Department of Labour has failed to implement its 16.12.2017 order and if the said 21.03.2018 meeting is used as an attempt to procrastinate and/or reopen a further inquiry when an official and evidence based final order has been made, the union will be compelled to deem the said meeting as material evidence for all intents and purposes of the law, as a conscious attempt by the Department of Labour to willfully avoid enforcing the law.

Whilst attending the meeting on the 21st March 2018, the FAU demanded to know as to why two separate letters were sent bearing two separate reference numbers.

The Commissioner General Wimalaweera tendered an apology stating that it was an error on the part of the Ministry of Labour.

Thereafter the Commissioner facilitated a discussion stating that he wishes to review the statutory ruling that was given on the 16th of December 2017.

The FAU made it extremely clear to the Commissioner General Wimalaweera and queried if he could inform them as to how he could draw such a conclusion without going into any formal evidence or submissions from both parties.

Being unable to provide an answer the Commissioner General Wimalaweera then immediately called off the meeting and directed the parties to leave the premises.

However the Commissioner General of Labour has at the end of the meeting directed his officials to implement the 16.12.2017 order.

The audio recording of this directive is now in the possession of the International Labour Organisation.

The Commissioner General R.P.A Wimalaweera thereafter submitted a letter to the Attorney General seeking his opinion.

Several legal sources when conducted claimed that once such a final statutory order is made and dispatched to parties under registered cover, setting out specific dates for compliance; the law does not provide provisions for the Attorney General to reverse such statutory directives.

Strangely, a reputed former Commissioner and another Assistant Commissioner of the EPF division of the Department of Labour and the Employees Trust Fund on three different previous occasions have officially held in writing that the allowance concerned is statutorily liable for EPF deductions.

Thereafter with no further progress being made, the FAU then filed a 30 page formal complaint before the International Labour Organization (ILO) under Article 24 Representation procedures of its Constitution on the 10th of August 2018. The FAU also cited the letter sent by the Commissioner General Wimalaweera to the Attorney General’s Department.

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