The Economic Policy of the Government:
The Economic Policy of the Government since 1977, has been one of liberalisation of imports, removal of administrative controls that hampered foreign investments and abolition of many exchange control regulations, quotas and licensing regulations that affected trade and investments.
During the previous regime — 1970-1977, there was a tight control on imports of both consumer goods and raw materials. Quotas were granted to certain entrepreneurs and those who could not obtain such quotas had to retrench their workers or wind up their businesses. Government approval had to be obtained by foreign companies which wanted to invest in Sri Lanka and generally where there were indigenous industries, no such permission was granted. The rationale of this policy was that nascent indigenous industries had to be protected from powerful foreign competitors.
Although this policy led to less foreign indebtedness, it also resulted in a stagnant economy, leading to shortages of essential commodities and large scale retrenchment of workers due to the shortage of raw materials.
The present regime, with the assistance of the International Monetary Fund, permitted most goods to be imported on open general licence. Investments, particularly by foreign companies, were encouraged. New incentives were given to stimulate economic growth. An Export Promotion Zone was established in Katunayake and very generous terms and subsidies were given to companies setting up factories in this 'Free Trade Zone' (FTZ). For the purpose of producing for the export market the Government provided the necessary infra-structural facilities to these firms at very low price. They were also exempted from custom duties. Furthermore the Sri Lankan Government allocated 50% of the Export quota Sri Lanka received from the EEC and USA in respect of garment exports to the garment manufacturers in the Free Trade Zone.
Kumudhini Rosa works closely with women workers in Sri Lanka. She has worked with the Committee for Asian Women coordinating correspondence and contact with groups concerned with women workers' issue in South Asia.
Thus the encouragement of foreign investments, increase of production for exports and removal of exchange control and administrative regulations on imports and investments are the key features of the 'Open Economy' strategy pursued by the present government.
The inevitable outcome of the Government 'Open Economy' policy has been the influx of foreign capital into various sectors of the economy and in some cases displace national capital from certain sectors.
In both inside and outside the FTZ a number of foreign firms - Japanese, British, West German, Hong Kong and South Korean firms have set up industries either on their own or in collaboration with local entrepreneurs. In the FTZ most of these firms have concentrated on garment manufacture taking advantage of the 50% of the Sri Lankan export quota allocated to the FTZ by the Government.
Elsewhere foreign investments and collaborations has been confined to setting up of light industries such as the manufacture of shoes, pharmaceutical etc.
The Government has embarked also on a number of irrigation schemes such as the Mahaweli River Irrigation scheme and the Kotmale Dam by obtaining massive loans from foreign governments and international institutions.
In order to ensure the repayment of at least the interest on these loans, the Sri Lankan Government has begun negotiations with a number of multinational firms to grant long term leases of the land irrigated by the Mahaweli Scheme. Already Booker Brothers (British), Nestles (Swiss), British American Tobacco (British) have successfully negotiated such lease agreements.
Except as junior partners and sub-contractors to these international firms, 'national' capital had made no spectacular advances as a result of this 'open economy policy'. In fact in certain sectors, particularly garments, the national capitalist enterprises have been adversely affected by this policy.
A New Industrial Labour Force — Women
The bulk of women who join the industrial labour force are young women, from urban as well as rural areas. In the Free Trade Zone a substantial proportion of women workers are from the rural areas because they have been selected on the recommendation of Members of Parliament belonging to the Government Party.
In non-Free Trade Zone industries however, there is an almost equal proportion of urban as well as rural women because, recruitment to these factories are not generally dependent on political influence.
Most of these young women have had very little experience before they join these factories. They are unaware of their trade union and legal rights. The employers recruit them largely because they are considered to be more amenable to discipline and less likely to cause industrial strife.
The main motivation for their joining the industrial labour force is economic. The fact that a job in the city (away from the village) has more glamour than agricultural work as well as the fact that young women are likely to enjoy a greater degree of freedom when they live out of their villages are important secondary motives. The families too regard a job in 'the city' as an achievement — a dream come true. Often these women workers find that there is a great gulf between their ordinal expectations and reality.
The income is not as great as they first expected, living conditions are often unsatisfactory, and loneliness and rigid industrial discipline is often unbearable.
The women who join the labour force are young, between the ages of 18 and 25 years. They have a basic education of eight to ten, or even twelve years. As young, inexperienced, disciplined and educated labour force, they are regarded as a potential cheap labour force which would be ideally suited to foreign industrialists who seek to set up their factories in Sri Lanka.
Women are normally predominantly found on the factory floor, as unskilled or skilled labour. A very small number of women work as supervisors or quality controllers and in some instances as clerks and typists. But these numbers are very small compared to the vast numbers of wage workers who tail on the factory floor. It is extremely rare to find women in managerial jobs.There are a small number of women entrepreneurs but they are vastly outnumbered by men.
The women working in the industrial sector can be broadly divided into three categories - (i) Free Trade Zone Workers; (ii) Non-Free Trade Zone and unionised workers; (iii) Non-Free Trade Zone and non-unionised workers.
Their present situation depends on the category to which they belong.
1. Unionised, non-FTZ workers
Women workers in Non-Free Trade Zone firms and who belong to trade unions have better wages and working conditions than the other two categories of women workers. In the last period real wages of workers in general have declined, largely because the government has followed a tough anti-union policy and used emergency powers to outlaw even mild forms of industrial action by workers – as for instance the government decree in March 1985 which made the refusal to do overtime by bank workers a criminal offence. On conviction such a worker would forfeit all his/her property! The wages of the women workers in the unionised sector have remained higher than the other two categories. This is largely because unions are able to pursue collective bargaining with the management and where there is a dispute they could get it referred for arbitration.
Although the government has generally acted with a heavy hand against strikes and other forms of industrial action where all workers in a sector had launched such action, it has generally kept aloof of industrial actions which occur at the plant level – i.e. in individual factories. Therefore where there are trade unions, women workers have been able to maintain their wage levels and working conditions or even made small gains. It is mainly in relation to overtime and working on holidays that these workers have an advantage. In factories where there are trade unions, managements do not generally compel workers to work on Sundays, holidays and after working hours. Generally such work is done on mutual consent. Again, where there are disputes, these women are able to take them up in the Industrial Courts.
2. Workers in FTZ
The women workers in the Free Trade Zone are not permitted to join trade unions. Although there is no law prohibiting organisation in the Zone nevertheless the FTZ management in collusion with employers effectively prevent workers from forming or joining trade unions. Since every worker must possess a 'gate pass' issued by the Greater Colombo Economic Commission Authorities (i.e. the Free Trade Zone Management), the moment the management comes to know of the existence of a trade union or even some form of agitation, it would promptly withdraw the 'gate passes' of the workers, thus preventing them from entering the Zone, and therefore reporting to work.
The restriction imposed on women workers employed in the Free Trade Zone is not limited to actions within the Zone alone. If these women are known to associate themselves with any social work or organisations outside the Zone, they would be regarded as trouble makers, as potential organisers of trade unions. For instance, in early June three women were called up by the management of a particular German-Sri Lankan Collaboration (garment making), requesting them for explanations as to why their pictures appeared in a news bulletin about women workers which was published outside of the Free Trade Zone. The names of the women nor their factories were identified in this bulletin. However, they made independent inquiries and identified where the women were from, and also their links to this bulletin.
The women were reprimanded first by the management of their factory and then by the Authorities of the Greater Colombo Economic Commission. They have been threatened and an inquiry is presently being conducted. It is possible that these women could be dismissed from their jobs.
The women in the FTZ therefore do not enjoy any private rights or freedom. Their linkage with any other organisation/persons outside the Free Trade Zone could be regarded with suspicion by the management and could even result in a situation where they might lose their jobs.
Managements of the firm does not have to take any legal or administrative step to terminate the services of the worker – she just stopped coming to work!
As a sap to these workers the government had set up so called 'workers councils' where workers, clerical employees as well as supervisory, executive and managerial staff are represented. Each section appoints their representative/s to serve on these 'worker councils'. In other cases the managements pick out the workers. In reality it is an instrument of the Management and does very little to actually remedy workers grievances.
All grievances of workers are resolved at the level of the Greater Colombo Economic Commission level. It is unusual that grievances either of a single worker or a group of workers could get beyond the Greater Colombo Economic Commission Authority, all problems are 'handled' by the GCEC!
The most familiar experience has been that this method is utilised to suppress any grievances that surfaced. Workers get back to their factories and resume work and the grievances collect dust in the GCEC office! When one discusses this with the women, they constantly complain that the GCEC shows little interest in their problems, but accept that they can do little in terms of actual organising, owing to fear of reprisal.
In these conditions, wages of Free Trade Zone women have tended to be on par or below the wages of Non-Free Trade Zone workers. This is in stark contrast to the claims that were made by the government – higher wages and benefits to Free Trade Zone workers – when it was established.
In reality the women have to work overtime, Sundays, holidays to obtain a basic living wage. The boarding fee has to be paid. Travel expense has to be met. Their food and basic clothing needs must be paid for. In addition to all this, parents, families back home expect a monthly allowance to assist in their existence. With a meagre monthly income of Rs. 750 - Rs. 1000 (US $30-40), they are expected to meet all these demands. It has been estimated that a single person (adult) needs a minimum of Rs. 50 (US $2) each day to exist, not live.
Most of the women who are employed in the Free Trade Zone live in boarding houses, situated in close access to the Zone. They pay a sum of Rs. 65 - Rs. 85 (US $2.5-$3.5) monthly for 'mat space', i.e. the women are allocated a space where they can place their mat or mattress and live off a suitcase. Some women live in these circumstances for 5 or even 6 years. In some of the boarding houses the women are allocated space to cook their own meals. The women often remark that they even cook in 'shifts'. In other boarding houses women pay an extra Rs. 250-400 in order that their meals be supplied by the owners. Another aspect that consideration should be drawn to is the night shift work. Night work for women was legalised by the present UNP government to meet the demand of foreign companies who promised to invest only provided that a night shift was introduced. Apart from the heavy toll in terms of health and conditions women are forced to contend with, this has posed a threat to their security as well. The introduction of the night shift has created a situation where women move around at late hours of the evening which allow rapists and other evils of society to molest, rape or even kill these women. In cultures such as ours, we do not talk about a rape, we would never acknowledge that we have been sexually harassed or raped. So the evil goes on. There have been cases where women have had to face such situations even within their factory premises. Even after a late shift or at nine or ten o'clock in the night, the women who have to get back to their boarding houses by foot, or stand for hours at bus stands, face these difficulties. Although protection was promised, regular bus services were promised, the authorities have failed miserably to deliver the goods.
The working hours are different in each factory. Some factories work one shift a day while others have 2 or even 3 shifts a day. Overtime work is frequent and women are normally forced to work long hours, sometimes as long as 10 or 12 hours a day. In some factories, high production targets are given and no matter at what time, the women are compelled to sit through them. Women complain that it sometimes means that they work 3 or even 4 hours after their normal work shift to complete the target and they are not paid any extra overtime remuneration.
When women are recruited by the Greater Colombo Economic Commission to be employed in a factory in the Free Trade Zone, they are asked if they agree to work on the night shift. The Authorities do not explain what the night shift means (or the hours it entails). The women agree, thinking that this means that they would have to work until 10 p.m. (i.e. the 2 p.m.-10 p.m. shift). When it turns out that they have to work from 10 p.m. to 6 a.m. the next day, the women are horrified. But they can do nothing about it. They have already signed their consent.
It has also been stated that women who do not agree to work the night shift do not find employment in the Free Trade Zone, even though there exists a government enacted regulation that no woman can be forced to work on the night shift, that it must be a voluntary move on her part!
It is particularly in relation to working conditions that Free Trade Zone workers are worse off than even non-unionised and non-FTZ workers. They are often compelled to work overtime after their regular shift and work in Sundays and holidays as well.
Most workers find it extremely difficult to take sick leave. The women are entitled to a maximum of 14 days' holiday a year. But even then, the women find it difficult to take a holiday they are entitled to. For Non-FTZ workers, in some factories, women are entitled to an additional 7 days, making a total of 21 days holidays per year.
A woman FTZ worker, who took an additional holiday for Christmas '84 found herself dismissed on return to the factory. She had sent a telegram to the Management stating her inability to be present at work on that particular day. She was entitled to leave also. But she was dismissed, without any explanation being given to her.
In some situations, women are compelled to sign letters which they do not even understand. The letter would be in English and the women would not understand a word of it. They are dismissed from service for trivial offences.
Since most workers have little experience or knowledge of the law or their rights, they accept these inequalities docilely.
3. Non-unionised, non-FTZ workers
Women workers in non-FTZ firms who are not unionised generally receive lower wages than those of unionised workers. But because of the potential threat of unionisation and the pressure from the people of the locality where the factories are located, working conditions tend to be at least marginally better than those in the Free Trade Zone (since the FTZ is socially guaranteed that pressure does not affect the FTZ Managements).
Women workers too suffer from the general weaknesses of the Sri Lankan trade union movement and particularly its disunity and division.
Future Prospects of Industrial Women Workers
The future prospects of women workers will depend entirely on the organisational steps they take and struggles they are able to launch. Today the specific questions affecting women workers have not been taken up at trade union level. Therefore the need to arm the women so that they can organise themselves, to bring up their demands (within the trade unions as well as outside - depending on whether they are organised or not) is a top priority.
For this purpose, women should be made aware of their rights, the law and strength to go forward. This is an arduous task but a task that has to be fulfilled. It is only when women workers come forward to demand that their issues also be taken up at every level, that they are guaranteed leadership at decision making bodies that the grave situation facing them, can be changed.
This is particularly important where women have the possibility of being in an organisation e.g. a trade union, where their demands can be at least voiced. Where trade union rights are not guaranteed, other methods of organisation should be found. If the women workers in the Free Trade Zone are considered, a tremendous amount of work has to be done, even merely to make them realise that their situation is different from the situation of women workers outside the Free Trade Zone.
Because they are new workers that are recruited through the members of parliament, the task is even harder. Even if they do understand the level of exploitation, they pretend to be unaware, making no attempt to change it.
Various attempts have been made to assist these women, through Legal Advice Centre, Workers Centres, and even news bulletins exclusively printed for and by them. Women do give their support, but when a trivial incident occurs which might threaten their jobs, they withdraw. So an important task in developing their class consciousness and their specificity as women, is to find new forms of organisational avenues.
In Free Trade Zone as well as Non-Free Trade Zone industrial sectors it is important to develop women cadres capable of playing the role of organisers. This would leave to a qualitative change. The women will then begin to take over the leadership of Trade Unions and attract more women workers to their organisations.
Generally the prospects for future could only be better because as women workers begin to go through work experience they are bound to realise the importance of collective, organised actions and they are infinitely more capable at communication and organisation than their male counterparts.
Impact on Traditional Roles of Women
The movement of women to the production lines has a tremendous impact on the traditional roles that women are assigned. In areas where women have been employed on the factory floor 20-30 years ago, the situation was slightly different to that of the emerging trends that are more visible today. Before, the wage earned by a woman was seen as an additional income, supplementing that of her husbands. She was expected to do her wifely-motherly duties which she performed as priority over her employment. So she would normally finish her shift work in the factory and rush home to complete her duties at home. She accepted this unquestioningly – a task she must fulfill. She would normally end up working nearly 18 hours a day.
In this situation, women travelled from their homes and were normally recruited from the area they live in. However, the past 7 years have resulted in considerable change. The women who have been recruited have been mainly unmarried young workers, leaving their villages for jobs in the city. This has resulted in a different situation where women have the opportunity to be more 'independent', at least to some extent economically 'independent'. What is important is that they control their income, decide how they spend it, how much they would send home, etc. This is a new experience for women workers in this country, and an experience which makes significant changes in the traditional roles that they are expected to fulfill.
They begin to break away from the family structure and live on their own or in groups. They begin to meet needs that are their own, rather than that of their fathers or brothers, etc. For 5 to 6 years they live in this manner, having little contact with their families (may be once every 2 or 3 months). Many women find it difficult to go back to their villages and what is more unthinkable for them is that they would have to return to the fields, to work as unpaid wage labour.....
This does not mean, however, that women have done away with their desires to be married, to have a house, and to bear children. But what it does mean is that their lives would be different, and expectations would carry an element of self-assertion.
Even today, in a family where the woman works on the night shift, the husband is forced to look after the kids, and to take care of the domestic demands. But often what happens is that a woman who returns early in the morning after the night shift has to attend to all matters pertaining to the family, and by the time she finishes all the work, she is left with little or no time to recuperate her strength before she gets ready for the next night shift.
What we see today, therefore, is a issue being raised... challenged... and an inkling of a possibility to question the heritage that has been thrust on women.