By Nishel Fernando
The Joint Attire Affiliation Discussion board (JAAF) pressured that the official garment employee minimal wage doesn’t paint an correct picture of the overall earnings of a garment employee in Sri Lanka.
Responding to a latest article printed on Simply-Type, JAAF Common Secretary Yohan Lawrence identified that the present two-tiered system of a set primary wage is complemented by productivity-based funds together with different non-cash advantages.
The Clear Garments Marketing campaign, the worldwide alliance of labour unions and nongovernmental organisations, claimed that Sri Lanka’s garment {industry} minimal wage pay scale on the whole has “didn’t cowl a employee household’s wants, attributable to excessive inflation”.
In March this yr, the federal government elevated the nationwide residing wage by 40 p.c, from Rs.12,500 (US $ 42) to Rs.17,500 (US $ 59) per 30 days, on prime of a Rs.3,500 budgetary reduction allowance, bringing the overall minimal month-to-month pay to Rs.21,000 (US $ 70). In the meantime, the attire sector’s industry-agreed minimal wage, together with the federal government budgetary allowance, stands round Rs.24,000 (US $ 80).
“The article refers back to the nationwide minimal wage, which covers the fastened month-to-month element of worker earnings (the worker’s primary wage). While the nationwide minimal wage was elevated after a few years, the businesses will assessment the fundamental wage yearly. They are going to, relying on their skill to pay, improve this primary wage on an annual foundation.
The article sadly doesn’t make any reference to both the variable parts of complete earnings (that are paid in money) or to any of the non-cash advantages afforded to the staff,” Lawrence responded.
The money advantages embody gadgets equivalent to manufacturing bonuses, attendance allowances, annual bonuses, skill-based funds and additional time.
“This two-tiered system of a set primary wage, complemented by productivity-based funds, has been the norm in all manufacturing industries, each domestically and globally,” Lawrence added.
Along with these money funds, the {industry} additionally supplies non-cash advantages equivalent to subsidised meals and transport.
He additionally famous that a number of firms additionally present subsidised or free dry rations (one thing that was began on the peak of the financial disaster and continues even in the present day) or produce other comparable schemes to ease the burden of the price of residing on the staff.
Subsequently, he argued that it’s unfair to evaluate the precise degree of earnings of the staff merely based mostly on the fundamental wage.
As well as, Lawrence famous that inflation has come all the way down to single digits since early 2023, after peaking to double digits in 2023, thereby, decreasing the inflationary impact on the true wages.
In the meantime, the JAAF stays assured of reaching US $ 4.5 billion in attire export earnings this yr, regardless of the challenges.
