 | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sri Lanka row over pensions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade unions in Sri Lanka are angry about a new government pension scheme which they say will further impoverish some of the poorest workers in the country at a time when many are struggling with the rising cost of living. They are to challenge the draft law in the Supreme Court, and a date for that hearing is likely to be set this week. But the government hopes to push the bill through parliament by the end of the month. The government is planning this scheme for about two million private sector workers. They vary greatly but include some of the least well-off Sri Lankans: those who work on the tea estates in the hills. 'Good idea' A new pension scheme for them might seem to be a good idea. But the trade unions are unhappy for several reasons.
They do not like the fact that all workers will be obliged to contribute two percent of their pay to the scheme, on top of eight percent they already pay into another fund. Anton Marcus of the General Services Employees Union says many people will contribute to the scheme for several years but not benefit from it at all. This is because to draw the pension, a person has to be in ten years’ continuous employment. But, he said, many people, for instance women in garment factories, work for much less time than that before getting married. Indeed, to get the pension at all, employees will have to pass their 60th birthday even though women retire at 50 and men at 55. The unions also say the new fund will drain some of the money in two existing funds, reducing the lump sums many have been looking forward to. This is the view of the leader of United Federation of Labour, Linus Jayatilake. "This fund will be built up not with any contribution from the state but it will be built up from the workers’ money and their funds," Mr Jayatilake said. "That is why the main opposition from the workers has arisen." A group of unions is seeking to have the Supreme Court declare the new bill unconstitutional. The government says there is “no problem” with the bill and there’ll be more discussions before it comes before parliament. But, helped by its huge majority in the chamber, it hopes to enact it into law before the sensitive date of May 1st. | LOCAL LINKS  GSP+ removal 'not affected economy'11 April, 2011 | Sandeshaya Sri Lanka reforms tax to boost economy22 November, 2010 | Sandeshaya Sri Lanka's fight against 'wheat terrorism'08 November, 2010 | Sandeshaya Lanka Bond issue oversubscribed 29 September, 2010 | Sandeshaya GSP concessions suspended 15 August, 2010 | Sandeshaya IMF says Lanka doing well 25 February, 2010 | Sandeshaya EC's statements suspicious - UNP05 February, 2010 | Sandeshaya | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
This fund will be built up not with any contribution from the state but it will be built up from the workers’ money and their funds
