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In an Increasingly Profitable Garment Factory, Employee Social Security Found Deficient

By Madushani Pandipperuma

Editor's note: This article is the sequel to an article about garment production in Sri Lanka that was published in September, 2011. This article focuses on the provision of benefits to workers in garment factories.

In a previous article about garment industry in Sri Lanka, Dispatches International interviewed employees and managers at a major garment producer outside of Colombo. This article expands the original focus to the welfare and benefits of employees at the producer's various local factories

The garment producer started more than 30 years ago with 10 machines and 15 employees, but it now has 18 branches and is a leading player in the garment industry. It sells a wide variety of products to well-known retailers in the United Kingdom and United states. To protect its reputation abroad, the owners have insisted that the company's name and specific location of its factories be omitted from this article.

“I have been working with the factory since the very beginning,” says Manel Dhammika, a personnel manager at one of the factories. “We think the workers are the heart of our factory. Without them and their support, we are nothing as an institution.”

Garment production is a booming business in Sri Lanka, where it provides almost 75% of jobs and is one of the country's largest earners of export revenues. There are several reasons for its success. Since the mid-1980s, the federal and state governments have developed policies favorable to garment factories. Clothing manufactured in Sri Lanka is recognized by retailers around the world as cheap yet durable.

Some humanitarian organizations have expressed concerns about the working conditions of garment factories, but it is generally recognized within Sri Lanka for improving the welfare of employees. The industry has created its own standard, Garments Without Guilt, to improve its reputation abroad. Many factories have also adopted 30 International Labor Organization conventions.

“The workers work for us, and we work for the workers,” explains Dhammika, who is adamant that the factory workers enjoy humane conditions. “We think that it is our responsibility to take care of our workers.”

Some managers at the factory say it is difficult to implement the various policies and guidelines that ensure the well-being of garment factory workers. Another manager from the garment production company, named Kulasekara, says, “We have facilitated the welfare of workers in many ways. We care about the workers from the time they leave their homes to come to work until they get back home.”

Dhammika says that in addition to ensuring that a professional and humane relationship exists between managers and workers, the garment producer regards its employees as family: “When a family member, say a mother or father, of a worker dies, we facilitate the activities of the funeral. We give all of our efforts and do not let any of the members of our family [at the factory] feel the pain of not having enough money to cope.”

After hearing about the garment producer's efforts to support the well-being of its employees, Dispatches International approached some of the workers at the family. The views of the workers differ somewhat from the overwhelmingly positive message expressed by managers.

“Today we work only five days per week, but we work from 8:00 in the morning until 6:00 in the evening. So we have two days, Saturday and Sunday, as holidays each week,” says Leela Samarasinghe, who was interviewed in a previous article. However, she does have a few complaints about the work schedule granted to factory workers.

“Before if we worked on Saturday, it was considered overtime and would be paid for that. But now we have been informed that we must work every day for an extra hour in order to cover for the Saturdays.”

“Since we work more, we asked if we can get paid for the last hour of work each day,” says Samarasinghe. “But what really happens is, we do not get paid for working an extra hour each day.”

Samarasinghe's sentiments are echoed by her peers at the factory. Indeed, most of the workers at the garment producer's factories say that the company's managers should think more about the importance of worker health and rest. Security and safety are also cited by the workers as an ongoing concern.

When I ask Dhammika, the factory manager, about Samarasinghe's comments, she does not directly address the issues raised by her subordinate. Instead, Dhammika reiterates the workers' weekly schedules.

“Since the workers work five days per week from 8:00 in the morning until 6:00 in the evening, they will have one more day as a holiday, which is Saturday. So they can do their other work on Saturdays as well as on Sundays,” Dhammika says. “For the five days of the working week, we give them transport to come to the factory from their home in every morning and to go back after finishing their work.”

“This is a benefit given by the factory for the workers,” she emphasizes.

While the merits of working at this particular garment factory can be debated, there is no doubt that the workers are relatively better treated than garment workers elsewhere in the region. For example, if a worker quits after working for the company for five or more years, they will continue to receive half their salary for another year. This is a degree of social security enjoyed by very few Asian garment workers outside of Sri Lanka.

Dhammika also comments on the facilities provided to workers at her factory. “If anyone becomes sick while at work, we have a nurse to serve them. If the nurse cannot manage the situation, we take them to a nearby hospital,” she says. “All of these expenses are covered by the factory, even if the worker stays at the hospital.”

“If anyone needs to get medical work, we cover all those expenses so it will not be a burden on the worker.”

Padmini Ratnayake, an official from the Department of Labor, explains that most workers in Sri Lanka are entitled to social benefits through the government and through their employers. When the status of the workers at the factory interviewed by Dispatches International for this article was conveyed to Ratnayake, she stated that many are not receiving benefits legally mandated for all workers in the country.

A major benefit provided to Sri Lankan workers through their employers is the Employees' Provident Fund (EPF). A Sri Lankan government website poetically explains that the program “is not only a shoulder to lean upon in the winter of life, but a partner throughout.” Ratnayake says the fund provides housing loans, employment insurance and other forms of social support to workers in Sri Lanka. It is an employer's responsibility to pay the EPF benefits to employees if the employees request it.

P.S. Pathiratne, another official from the Deparmtent of Labor, explains that Sri Lanka has progressive labor policies that reward those who hold stable jobs. “For every worker who serves the country and benefits the country, he or she is considered a worker within the country,” he says. Being recognized as a worker means being provided with various forms of social support. “This is what the law says.”

Despite holding steady jobs, none of the workers in the factory know if they are getting basic benefits, but most also admit that they don't bother to check if they receive the benefits that they are entitled to. This isn't a great issue for young workers, who are just beginning their careers.

But it is of crucial importance to several workers interviewed for this article who are on track to retire; they have visited their banks and found that EPF benefits have not been paid by the factory for years. These soon-to-retire workers do not know who to approach about this issue.

With these issues in mind, some of the less satisfied workers at the garment factory have complained about the very small pay raises provided over the last 20 years, despite a steady rate of inflation in Sri Lanka. As the workers hear more about the profitability of their employer, they muse more about about the inequality of the garment business.

The Chairman of the Board of the garment production company, who also prefers to remain anonymous, does not address questions about the situation of workers in the factory. He is very willing, however, to explain that he speaks for his colleagues when he attributes their business's success to the collective talent, dedication, and contribution of all workers and managers within the company

“The workers are there to work, and they are committed,” says the Chairman of the Board. “The workers have been there to build the company and they have been with the company through profits as well as losses.”