How the war in Sri Lanka affects the workers - 5 September 2006

 

How the war in Sri Lanka affects the workers

I will commence my talk with a short introduction to the Sri Lanka economy. According to the last Annual Report of its Central Bank, the economic growth rate was 6 percent. More than half of the growth had taken place in the services sector. The growth figures included post-tsunami reconstruction, international aid received, and recruitment of 42,000 graduates to the public service to downgrade the unemployment rate. The expansion of services also included military spending. The government introduced a special “pro-poor” budget in December 2005. This budget increased defence spending by 26 percent, from 76 billion rupees to 96 billion rupees. To cover the budget deficit, the government sought further borrowings on the international capital market and expected to raise between $500 million to $1 billion by selling bonds on the global money market and to expatriates. This means that the foreign debt would rise to horrendous proportions making future development expenditure extremely impossible.

The optimism of the Bank is questioned by the roaring oil prices (estimated oil bill for 2006 of $2.2 billion), huge debts and renewed war. The country’s trade deficit jumped by $US274 million to $2,516 million in the year. The deterioration of living standards of the working people has accelerated. The average monthly salary is about SLR6,000 almost all of which is spent on day to day needs. The Annual Report states that 22.7 percent of the population live below the poverty line, which is 1,423 rupees a month. Two million families survive on limited welfare payments. Foreign exchange remittances grew by 22.7 percent to $1.92 billion, over half of those from about 800,000 workers who toil abroad, 90 per cent in the Middle East.

The war in Sri Lanka has escalated greatly under the new executive presidency. The government and the political parties that support them from outside have tried to prevent workers from taking action to defend their living standards and democratic rights. Saving the country and safeguarding its sovereignty and territorial integrity are the responsibility of everyone, they say. No one should betray country’s security. All trade union leaders should try and find solutions to their problems through discussions, prior to taking any steps to secure their rights. Workers should become more conscious of their responsibilities to their motherland.

All over the world talks about national responsibility, national security and protecting motherland provides a political meaning that the regimes engaged in war wish to pass the costs of their wars onto the shoulders of the working people. In Sri Lanka, the first trade union that acceded to this was the National Trade Union Centre. In Sri Lanka most trade unions are affiliated to political organisations, and the National Trade Union Centre is affiliated to the JVP. It is one of the organisations that call for abrogation of the ceasefire agreement, expelling Norwegian facilitators and Nordic monitors, exterminate the LTTE and annihilate all others who advocate federalism or devolution as a solution to the national problem in Sri Lanka.

Successive governments continued to attack the living standards of working people through privatisations, economic restructuring and budget cutbacks. Cost of living continued to rise and the income levels of workers remained static. During his election campaign, Mr Mahinda Rajapakse pledged substantial pay increases to the workers, and concessions to help the poor. However, during the last seven months there had been no change. The cost of living index has jumped 368 points from 4,304 to 4,672.

In June alone consumer prices rose by a record 17.7 percent with sweeping increases in almost all essential items. Hundreds of thousands of public sector employees including railway and port workers demanded pay increases and commenced protesting. Workers at the Ceylon Petroleum Corporation were getting ready to protest against privatisation plans. In March and April this year, about 300,000 government employees went on strike demanding a 65 percent pay rise. Public sector workers held a one-day island wide strike across postal, health, education, local government, technical, railways and state-owned factories. The strike was the biggest industrial action in the public sector for almost 25 years. Hundreds of workers from the state-owned Co-operative Wholesale Establishment, teachers in the north and east, private sector workers and workers in estate plantations also joined the strike.

The government is under intense pressure from international finance capital to restructure the public sector and slash spending. Reforming the civil service, cutting the wage bill and reducing the losses of state-owned enterprises were among the guidelines set by the World Bank and ADB in its 2005 publication “Sri Lanka—Improving the rural and urban investment climate”. The government is desperate for international loans to fill gaps in the budget. The Lanka business online commented I quote: “Since 2005, Sri Lanka has found it difficult to qualify for low interest program loans from multilateral lenders such as the World Bank, because its macro-economic policy framework is weak on fiscal prudence and economic reforms, forcing it to rely more on commercial dollars.” Unquote.

In the word of the director of economic research of the Central Bank “Poorly targeted and undue subsidies drive budgetary resources away from productive investment.... If the full effect of price rises were passed on to the people, people might come to know how to live with higher fuel prices. If the prices were correct (without subsidies) consumption would be adjusted accordingly.” This is nothing but a recipe for imposing the full burden of the country’s economic crisis onto the backs of the most vulnerable of the society. The government slashed the oil subsidy. The inflation rate was about 12 percent, and the Central Bank urged the government not to pressure the private sector for wage increases, declaring “this would not be compatible with developing a productivity based wage adjustment policy in the economy”. The report noted that real wage rates in the private sector fell by 2.3 to 7.6 percent during 2005. At the same time, average profits for domestic industry increased by 2.1 percent to 14.4 percent.

To boost foreign investment and profits, the government is implementing IMF and World Bank “reforms” that will continue to erode living standards of working people. This will lead to higher levels of poverty and unemployment, and produce a greater divide between rich and poor. The government's response to the growing popular discontent and anger is to stir up suspicion and hatred to divide working people along communal and religious lines and to push the country back towards a full-scale war. Military expenditure will inevitably rise. Foreign investment will be down. And as the fighting escalates the toll on business and infrastructure will be massive. This process will only intensify the economic crisis.

Let us look at the campaign of the port workers a little bit more.

About 14,000 port workers in Colombo commenced their “go-slow” campaign mid-July this year and went on for eight days. Their demands comprised an increase of 3,000-rupees in basic salary, an increase of Rs.3.50 to the cost of living index and a minimum annual salary increment of Rs.200. At the beginning the workers refused to accept a wage increase offered by the government that fell far short of their demands. A nasty media campaign against the workers was launched. The go slow campaign held up 15 ships, with another 15 reported to have discharged their containers at other ports. Sri Lanka Association of Vessel Operators threatened to impose a $20-$40 recovery surcharge on every container if the industrial action were not ended by July 22. The government in effect regarded the go slow campaign as a national crime and sought an order by the District Court of Colombo. The District Court issued an enjoining order restraining the unions stating that striking employees had been intimidated into taking industrial action by the unions.

Yet, the reality was that when the port workers were for all-out strike action to safeguard their wages and living conditions, the union leadership did not even ask for trade union support from the workers in the privatised port terminal in Colombo. In fact, the privatised port terminal increased its workload by 15 per cent in order to absorb the effect of the go-slow campaign. The strike even did not extend to other ports in Trincomalee and Galle because the union considered the workforce in those ports were too small.

The go-slow campaign of the port workers had deepened the political and economic crisis in Sri Lanka and was pitting the workers against the government. The Joint Apparels Association Forum, the peak business council of apparel manufacturers, issued a statement claiming that this "situation is worse than the repercussions if the Tigers had been successful in their recent plans to attack the port. This could be construed as an act of treason.” The union leadership did not react to any of those statements.

The Joint Apparels Association Forum, the peak business council of apparel manufacturers, filed a “fundamental rights” petition and claimed that the “right to engage in the lawful occupation of his choice” had been violated and sought an order by the Supreme Court. The Supreme Court issued its order on 20^th July. The order restrained “port unions from engaging in any trade union activity which would reduce or undermine the full productivity levels of the ports of the country” until November 27^th. This Supreme Court order was an addendum to the order by the District Court. The court directed the police, armed forces, Minister of Ports, and the Sri Lanka Ports Authority chairman to ensure there was compliance with its orders. With the order by the Supreme Court, the Navy was ordered to take over operations at the Jaya Container Terminal. The port workers, defying the court orders, had threatened full-scale strike action defying the court orders. The government backed off.

A deal was organised on 21 July by the union and the government. The union accepted 1,500 rupee allowance for the next three months until the government appointed National Administrative Committee presented its recommendations and disregarded all other demands of the workers and stated that the union leadership accepted the minister’s proposals and had decided to call off the go-slow campaign considering the country’s future. The Administrative tactic of the government was nothing new. The government appointed a commission to look into the demands of public sector workers for pay increases but then, in tandem with the union leadership, resorted to suppressing the workers’ action. Virtually every now and then the government appoints commissions and committees, but decisions are yet to be seen. However, the government carried out their propaganda campaign of slandering workers.

The Minister for Ports refused to discuss with striking trade unions until the workers returned to work, but came on TV to say that he saw a monthly pay slip of a port worker for about 100,000 rupees. He was asked to divulge the source of information and whether the pay contained overtime, pay arrears for the previous 10 months and other outstanding payments. He neither disclosed the source nor responded to the question but declared that if he earlier knew how much port workers were earning, he would have become a port worker rather than becoming a government minister. The media took the propaganda campaign claiming that the port workers are ruining the economy of Sri Lanka. The actual take home pay of an average port worker is about SLR25,000 or SLR30,000 including overtime. Only small number of workers is involved in container handling enabling them to earn allowances and overtime.

Against the port workers was a line-up of groups and organisations. With media assistance, various groups accused port workers of supporting terrorism. The Patriotic National Movement (PNM), whose President is the leader of a movement called “National Consciousness”, Jaathika Chinthanaya movement and whose Secretary is the Propaganda Secretary of the Janatha Vimukthi Peramuna, cited an alleged LTTE plot to blow up some ships in the port and accused the port workers of supporting terrorism. Elle Gunawansa thero, another leader of the PNM appearing on the government-owned TV network attacked the port workers’ struggle as “sabotage” by “anti-national forces” and called for an end to the go slow campaign. A spokesman for an importers’ association said in Daily News, I quote “This is really what the terrorists, too, want to happen. They have also tried to attack the port to cripple the economy. Now our own people are doing the same.” Unquote.

On the other hand, war has generated an economy of its own, by becoming a source of employment for rural youth enlisted in the military. Forty percent of the defence expenditure is on salaries and wages and obviously, the rural areas receive large part of this income. So, in the short term defence spending is considered to have a positive impact on villages, but in the long term it will cause a negative impact on economic growth. Militarisation is not a solution for the problem of unemployment of the rural youth.

Now a few moments about how plantation workers are affected by the war situation.

There are about one million agricultural workers in the plantations. They have been working in the plantations for nearly two decades. In October 2003, the Parliament approved without opposition, a bill to grant citizenship to 168,141 stateless Tamil plantation workers. They are a section of the most impoverished and oppressed layers of Sri Lankan workers. In 1948, the then capitalist class, irrespective of their ethnic and linguistic origins got together to strip them of their citizenship rights, because they were affiliated with left organisations. The government wanted to divide the working people along communal lines in which they have eventually succeeded.

Mr Rajapakse promised to uplift the lives of the plantation workers. Already the living conditions of these workers have been eroded in an appalling manner. Tamil plantation workers had also been at the receiving end during the pogroms of 1977, 1979 and 1981. Murder and mayhem ruled the day. In 1977 August alone, tens of thousands of Tamil plantation workers were attacked by persons who enjoyed patronage of powerful personalities of the day. Usually, Tamil youth of plantations areas have been collectively victimised for any violent acts that had arisen in other areas of the island. The Illustrated Weekly of India of  17 October 1982 wrote and I quote,  "the police and the army - as many as thousand at a time have invaded, some landing in helicopters, others driving their armoured cars - “it was like ploughing"
across the new crops - harass the settlements, searching for tigers and beating up
suspects, ..the former plantation coolies was tied, struck in the face with fists,
and hung upside down from the roof beams, face bleeding, for hours.."). Tens of thousands of Tamil workers who left plantations to settle down in the LTTE controlled areas have not only lost their employment but are also at the receiving end from all parties to the conflict. The war has made the plantation workers prisoners subject to intimidation by all extreme groups.

One of the major problems affecting Tamil plantation workers is the issue of their national identity cards. The two major trade union leaders of plantation workers joined the government recently and took up ministry posts. Their main argument for joining the government has been that they can help solve the identity card and security issues of the workers only by becoming part of the government. One may see the extent of political patronage in Sri Lanka; even to address routine administrative matters of Tamil plantation workers, government patronage is needed.

The government with its chauvinist allies and the media launched a vicious assault against the port workers. This demonstrates that chauvinism and war preparations will go hand in hand not only against the Tamil people but also against any action to safeguard the rights, freedoms and conditions of the working people. Without being able to meet the basic social needs and aspirations of working people, the government seems to resort to the same stratagem that the ruling elites have used in every socio-economic crisis. They will arouse suspicion and hatred of one community against the other, divide the working people and attack their rights, freedoms and living standards. The governments led by fundamentalists, irrespective of their country and religion, adopt the same logic in prosecuting wars. How far the rulers will be able to contain the workers in their attempt to safeguard a decent living standard?

In addition to stirring up a climate of communal fear and anxiety, the government seems drafting new legislation to be implemented soon, by forcing young people into the ranks of the military, stifling any media criticism and suppressing opposition to a deeply unpopular war. According to reports, the new bill will be called the Patriotic Act, following the legislation enacted by the US administration in the aftermath of 9/11. Initially a 3,000 strong civilian brigade would be recruited for security tasks in the south to free regular troops for deployment to the war zones of the North and East.

The legislation would include compulsory military training for 18-50 year olds. They would strengthen existing legislation that provides for compulsory enlistment. Under the Mobilisation and Supplementary Forces Act of 1985, the president has wide powers to appoint a competent authority to enlist any citizen  ... under a “national service order.” Such forces can be mobilised “in defence of Sri Lanka at time of war” or “in the prevention or suppression of any rebellion or insurrection or any other civil disobedience”. The 1985 legislation was also enacted in the midst of intensifying civil war and mounting opposition to the government’s attacks on living standards, jobs and democratic rights but could not implement compulsory conscription, fearing that it would provoke mass opposition in the south. Attacking the media over its reporting of military’s activities, the propaganda secretary of the JVP declared that his party “respects the motherland more than media freedom". In a similar vein, the Jathika Hela Urumaya has advised the government to ignore the criticism of the media and non-government organisations and implement the Patriotic Act.

The agitation for war is itself a product of the failure of the Sri Lankan government ruling elites to arrest the country’s deepening social and economic crisis. Unable to provide decent living conditions for the majority of the population, the government and its supporting chauvinist forces are once again whipping up communal fears and hatreds to divide the working class along ethnic and religious lines.

The economic conditions for civil war were created by the neo-conservative push that demanded economic restructuring in late 1970s. When implemented restructuring dismantled the nationally-regulated economy. The workers commenced protesting. The governments retorted to the usual tactic of arousing chauvinist and communalist currents among the working people, dividing them and strengthening the state machinery to suppress them. Behind the July riots that were created in July 1983, the island was made one of the first models of free market reform.

Yet with increasing globalisation, investors started seeing the war as a threat to the security of their investment schemes. The governments were under increasing pressure to reach a power-sharing deal with the LTTE. Foreign investors commenced pushing the peace process in order to maintain their sources of cheap labour. We could see the same logic operating in Kashmir, Aceh and the Middle East. Their real face is seen openly in Afghanistan and Iraq. Genuine peace can be achieved only by creating necessary and essential conditions for ensuring social equality and guarantee of democratic rights for all peoples of the island. Without peace, economic development cannot be achieved, and peace will not come without justice.

Is there a solution to this issue?

The LTTE survives as a political and military force because there is a socio-economic environment for its existence. The injustices committed by successive governments against the non-Sinhala peoples of Sri Lanka have contributed to this environment. This environment is fed by the political forces in the south by their opposition to any form of power sharing with the Tamil people based on self-rule.

We can see the vast gap existing between the concepts put forward by the government and the LTTE. The LTTE's is a framework of maximalist regional autonomy that would go far beyond the existing Constitution. It looks for a confederal arrangement if not for separation. The government’s concept is based on minimalist regional autonomy that would work within the 1978 Constitution. It defines the Sri Lankan State as a unitary state. The LTTE also wants their regional entity to have the right to maintain their own security forces.

The solution has to be found by the working people of Sri Lanka, by granting the Tamil people the right to determine their own destiny. This requires recognising Tamil people in Sri Lanka as a distinct community.

Any person endearing equity, fairness and justice need to urge all working people in Sri Lanka to oppose the war, devolve power through a federal constitution ensuring equity, fairness and justice to all Sri Lankans. Autocratic centralisation as has been practised today or autocratic separation will not provide any solution to the national question. The solution needs to be based on the voluntary decision of people to stay united with their dignity fairness and justice ensured. That is the only genuine way forward to safeguard national sovereignty and territorial integrity of Sri Lanka!