Sri Lanka’s workforce, services and goods delivered by businesses and institutions, and job markets are among the most discussed topics within the larger discourse on economic resuscitation. While those are integral parts of economic recovery and stability, there is also an undeniable human resource and human rights aspect to the matter. These concerns have received more attention, although often in a negative manner, with certain recent developments including trade union actions and changes in job markets such as lay-offs and pay cuts.

It is in this backdrop that Minister of Labour and Foreign Employment, Manusha Nanayakkara, stated that the first draft of a new Labour Code, which will be more comprehensive but flexible than the existing labour laws in the country, will be completed by May. He added that trade unions, entrepreneurs, investors, interested parties, and any other party who has opinions in this regard could come forward and submit their opinions to the Ministry of Labour and Foreign Employment regarding the preparation of the new Labour Code. According to the Minister, such parties’ opinions would be taken into account, with high ranking Ministry officials being ready to hold talks with them.

While this new initiative is a good development, which is essential for a country that is struggling on many economic, social and political fronts, whether this initiative would bring in any positive outcomes depends on how well it is equipped to address existing and future issues in the sector, especially those related to the economic crisis. It is equally important to ensure that the proposed Labour Code is designed to address issues that truly affect the working people, not just those that law-makers or politicians want to address.

One of the most crucial aspects of the matter in hand is that labour market related concerns are not confined to employers’ interests. As was demonstrated in the context of the economic crisis, especially when businesses and institutions collapsed, the nature of the traditional employee-employer relationship has changed considerably. How the Government or the authorities deal with businesses and institutions as well as how employees deal with employers have changed in many contexts. Therefore, for labour law reforms to be truly empowering, it is important that the new law balances the interests of both employees and employers.

There are myriad aspects that require attention. Among those that have a direct connection to employees’ interests are strengthening job security regardless of the sector, expanding employment related perks taking into account recent economic changes, introducing policies and/or legally binding mechanisms to improve employees’ safety and health including mental health, upholding employees’ constitutionally guaranteed freedoms and rights pertaining to assembly and expression, and paving the way for opportunities that improve employees’ skills and capabilities. When it comes to employers, there is a pressing need to empower them to deal with employees in a mutually beneficial manner, especially in times of trade union actions, and to support them to manage the challenges faced by them as the intermediary between the workforce and the national and regional economy, and also to direct them to strictly adhere to the law when dealing with employees.

Trade unions play a unique role in the employee-employer relationship. Taking also into account the fact that trade unions’ role has changed considerably during the past few months, especially when it comes to their role in representing the workforce in nationally important economic, social and political reforms, it is important to streamline their role through these legal reforms. While they should be allowed and empowered to take trade union actions within the existing legal framework, law and related policy reforms should pay attention to mitigating the adverse impacts of such actions on employees, employers and the national economy. The existing problem-solving and complaint mechanisms should be streamlined to address their concerns more effectively and efficiently, in order to prevent the need for trade union actions.

To recover as a nation, fairness, sensitivity, responsibility, accountability, honesty and transparency and the quality of being law-abiding should come from both employees and employers. It has a significant impact on what sort of an economy and a society the country would have in the foreseeable future.