July 27, Colombo: Sri Lankan government has appointed a committee to examine the allegations of labour rights violations made by an American trade union petitioning to revoke the GSP trade concessions granted to Sri Lanka by the United States.
The government has appointed the committee in preparation for a public hearing to be held next month by the US to discuss the worker rights issues raised by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) petition.
The committee is headed by the Secretary to the Ministry of Labour Mahinda Madihahewa and includes officials from the ministries of External Affairs and Industries and Commerce, the government said.
The Committee is also to consult the ministries of Defence, Education, Ports and Aviation and prepare the government's response to the AFL-CIO allegations.
The AFL-CIO initially filed a petition in 2008 with the US Government requesting a review of worker rights in Sri Lanka. The organization resubmitted an updated petition last year asking the US Trade Representative (USTR) to remove Sri Lanka from the list of eligible developing countries to receive Generalized System of Preferences (GSP).
The petition alleged that the "Government of Sri Lanka (GOSL) is not taking steps to afford internationally recognized worker rights, including 1) the right of association, 2) the right to organize and bargain collectively, 3) freedom from compulsory labor, 4) a minimum age for the employment of children, and 5) acceptable conditions of work with respect to minimum wages, hours of work and occupational safety and health."
The AFL-CIO alleged that the worker rights in the country have deteriorated in recent years. The labor law although amended from time to time (most significantly in 1999), still fails to adhere to the internationally recognized worker rights, the American union argued.
"The government has also failed to effectively enforce its laws, let alone the international minimum set of labor rights. An inadequate labor inspectorate, together with a hostile Board of Investment (BOI), which is responsible for the administration of the Export Processing Zones (EPZs), contributes to ongoing labor violations in this sector," the petition read.
Trade Union Confederation, a leading trade union in Sri Lanka recently said the pathetic labor situation in the apparel industry was the main reason for the US government to accept the petition from AFL-CIO.
Following the acceptance of the petition by the USTR, there will be a public hearing, likely to be held in August, to discuss the worker rights issues raised by the AFL-CIO petition. The GOSL will be invited to participate in the hearing, USTR has said.
However, acceptance of the petition is not a decision to revoke GSP nor does it set a deadline for a decision on action on GSP privileges and GSP privileges will continue throughout the process, USTR says.
Under the U.S. GSP program which is designed to promote economic growth in the developing world, 131 countries including Sri Lanka receive preferential duty-free treatment for over 3,400 products.
Sri Lanka in 2009 has received GSP benefits of approximately $116 million of goods. Products covered under the GSP program included machinery, electrical goods, chemical products, agricultural products, jewelry and much more but not most textiles and apparel.