Busting fake unions presents avenues for better progress

For some union leaders, entry into a factory with wider membership promises better funding and position 

By Oshadee De Silva 

The Sri Lankan apparel industry captured the spotlight over the past year, as reduced orders resulted in factory closures, lesser earnings and job losses. The drop in orders was consequent to a global demand dip stemming from COVID-19-led lockdowns. This was compounded by price competitiveness, with Sri Lanka trailing far behind nations like Bangladesh, Vietnam and China that also boasts significantly higher efficiency. Despite Sri Lanka’s high-cost base, the destination is a darling for global brands due to its high compliance standards and production quality. However, this will not suffice to grow the segment as other nations are catching up fast, especially with quality. 

So, Sri Lanka needs to up its game with productivity and cost competitiveness. The country’s apparel industry operates with higher costs as many players offer safe and comfortable air-conditioned facilities that include free meals, transportation, medicines and other benefits. In contrast, few operators in countries like Bangladesh come close to the value and empowerment afforded to Sri Lankan workers. However, in Bangladesh workers demonstrate greater efficiency despite the lack of facilities, and in Sri Lanka they seem to want more. 

Third-party politics

 The want for more is often fuelled by third parties that claim to stand for the rights of workers – unions! Whilst unions exist within a limited number of companies, staff attached to many organisations see no need to unionise as their requirements are well looked after by employers. This does not bode well for third parties who are constantly trying to find or create loopholes with which to enter factories. For some union leaders, entry into a factory with wider membership promises better funding and position. For instance, Sri Lanka’s National Labour Advisory Council (NLAC) offers membership to union leaders who show adequate worker representation. The primary purpose for causing disruptions within factories for some union leadership is solely to grow their membership to get on the NLAC. Consequently, productivity suffers; whereby the organisation, its employees and the nation at large bear a burden for the sake of pride and earnings of a vested few. 

But don’t unions represent the rights of workers? Very few serve their real purpose anymore. Unions, like NGOs, have turned into money spinners with the leadership leading lavish lifestyles. What is expressly disappointing is the poor light unions and NGOs paint Sri Lanka with their international funders, who have little or no knowledge of ground realities in the market. The damage they do to local industries and the nation’s image and its people is distressing. They have scant regard to the wider economic implications to Sri Lanka from their campaign of fallacy purely for personal gain. 

Lenders must demand accountability

 There is a great deal of responsibility on funding agencies to better administer the activities of beneficiaries. There is a significant degree of hypocrisy in their actions. For instance, European agencies are fully apprised of the strict compliance standards imposed on manufacturers by brands at local level on working standards. Notwithstanding that there is no effort to direct their beneficiary agencies to focus attention on companies and industries that have poor compliance. Consequently, unions focus on larger compliant industries due to their larger employee base, where one kill offers a greater yield of members for their vested gain. There is little effort by agencies to conduct primary audits of action on the ground, and the real impacts of funds spent. European taxpayers ought to take better note. 

Round hole–square peg

Nordic countries and even Germany have a long history of unionisation. It is part of their work culture. But it is important they accept one size does not fit all. The EU in particular, and international unions stemming from the continent, are amongst the largest funders of Sri Lankan unions. But they know little of how these funds are disbursed on the ground. During a recent program in the Western Province, an agency sponsored by the EU dished out just 15% of allocated project funds on an educational program for workers. It reluctantly pushed out an additional Rs. 75,000 when personnel handling execution complained of operational difficulties. 

However, a dinner party and accommodation for union leaders on the same day saw no compromise. Reports and publications are hurriedly dressed up for their paymasters. Whither governance and accountability, which are some of the cornerstones the funding is based on. There is no value addition to workers, just disruptions to work and process.

Action to protect industries 

The Sri Lankan Government must stand firm to protect its export industries, which offers employment to hundreds of thousands of Sri Lankans. Such vested third-party unions are particularly active around export processing zones, as workers within industrial parks are often fragmented and are easier to manipulate. Other Asian nations keep a close eye on unions and work to ensure they function within accepted forms, and that they explicitly do not interfere with the progress of an industry or the economy. Sri Lanka needs to do that too. 

Naturally, this would lead to cries of authoritarianism from unions and draw responses from funding agencies and Western nations citing rights. But we must not hesitate to question their bigotry. Lenders, unions and NGOs must all be held to proper account. The European Commission recently had to scrap a plan to halve pesticide use in the bloc as farmers protested violently against uncompetitive moves. This harks back to pressure mounted on developing economies by blocs such as the EU to conform to their vested policies, which they themselves must now reverse. 

If workers are unhappy with wages or operating conditions, they are free to make their own demands or choices in terms of their employment. Sri Lankan ordinances offer many benefits to employees that workers in other nations do not enjoy. In addition, they are often well educated and have access to a plethora of information concerning their work and rights. They are free to make their own choices and need not be led by unconcerned third parties.   

(The writer is a psychologist who has engaged with several development programs in Sri Lanka and Africa targeting underserved communities.)