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Petroleum Bill passed as unions protest ‘greatest betrayal’ 

19 Oct 2022

  • CPC unions claim Kanchana privatising despite CPC making profits 
  • Kanchana says privatisation to convert CPC into profit-making entity
BY Safrah Fazal As Petroleum Products (Special Provisions) Amendment Bill was passed in the Parliament during its Second Reading by a majority of 60 votes yesterday (18), Ceylon Petroleum Corporation (CPC) trade unionists (TUs) who converged near Parliament yesterday in protest over the move claimed that the “greatest betrayal ever” was being committed by Minister of Power and Energy Kanchana Wjiesekera, who presented the Bill to Parliament. During the division, a total of 77 MPs had voted for the bill while 17 voted against, as petroleum trade unions resorted to a sick-leave strike in protest of the Bill, which is expected to pave the way for the liberalisation of the petroleum industry. This bill provides for the importation, supply, and distribution of fuel to parties other than the Ceylon Petroleum Corporation (CPC) and the Lanka Indian Oil Company (LIOC). Speaking to the media, Podujana Pragathasheeli Sewaka Sangamaya Chairman Bandula Samankumara condemned the Bill that was taken up in Parliament yesterday.  “Today, Wijesekera has engaged in the greatest betrayal in the history of this country. He is making attempts to get this Bill passed in Parliament, thus destroying the petroleum monopoly of the CPC in an attempt to drag the country backwards.” He further questioned as to why a move to privatise the CPC is being made when it has been making profits since July of this year. Pertaining to allegations that a major contributing factor to the losses that the CPC made over time were due to overstaffing, Samankumara also stressed that profits were made despite no staffers being laid off.  “The CPC made losses in the past. Due to these losses, today, it is in debt of over Rs. 1 trillion to banks. It has now matched the country’s petroleum prices to global fuel prices, which has resulted in the CPC making profits. Last July, the CPC’s profits were Rs. 6.31 billion, in August they made profits of over Rs. 2 billion, and in September, over Rs. 5 billion. So, why do they want to privatise the CPC at a time like this? How did the CPC make profits in July, August, and September without laying off a single employee? Or has this Minister magically turned this into a profit-making State corporation?” He also stated that ministers governing the country have pushed public opinion towards the privatisation of the CPC. “He (Wijesekera) has created a public opinion that the CPC should be privatised. Not only this Minister, but all those who governed this country, including Udaya Gammanpila, tried to create the opinion among the public that the staffers are a burden to the CPC and that they contribute to its losses. “We urge the MPs to not be a part of the biggest betrayal this country has ever seen. If they do so, we will not think twice about sending this Government home. No other politician has committed such a betrayal of this country.” Similarly, Podujana Pragathasheeli Sewaka Sangamaya Co-Chairman Premantha Gamage charged: “Then-Prime Minister Sirimavo Bandarainaike established the CPC and vested it with the public. Most of the Ministers who shared her own principles are in this present Government. We ask these Ministers if their conscience allows them to vote for this Bill that privatises one of the nation’s greatest assets.” Podujana Pragathasheeli Sewaka Sangamaya Co-Chairman Jayantha Paregama alleged: “We are questioning if they are selling the CPC with an underlying agenda to make commissions when the CPC has made profits of Rs. 6.36 billion in July, Rs. 2 billion in August, and Rs. 5 billion in September. This is wrong, so we urge the public to join us.” Meanwhile, speaking in Parliament yesterday, Minister of Power and Energy Kanchana Wijesekera assured that although the primary cause for the losses incurred by the Ceylon Petroleum Corporation (CPC) is due to the salary grades of its employees, CPC staff will not be laid off, while adding that the privatisation of the State-owned enterprise is an attempt to convert it into a profit-making venture. During the debate on the Petroleum Products (Special Provisions) (Amendment) Bill, he said that the similar salary grades paid to each CPC employee was the primary cause for the CPC’s losses, and not the excess staff employed. Wijesekera made these remarks when “independent” MP Anura Priyadarshana Yapa requested assurance that CPC staff would not be laid off with the passing of the said Bill in Parliament. “We have no intention to lay off staff. If the employees work efficiently and conduct themselves in a disciplined manner, there is no need to lay off staff. Within this organisation, there are many avenues within which employees can work, especially in the storage terminals and the refinery, and there are areas where more staff are needed, whereas there are staff members working in areas where not as many are needed. When they retire, we will recruit suitable employees according to our needs, and no more. This is what we are trying to do, not to lay off the existing staff. “The Lanka Indian Oil Corporation (LIOC) carries out its operations with only 150 employees. The CPC carries out its operations with 4,000 employees, which I admit is too much. A total of 1,200 petrol sheds are handled by the CPC, while the LIOC handles 254. If we assume one individual overlooks 50 LIOC petrol sheds, the CPC has over 50 employees for one petrol shed. This is the reality.” “Our issue is not the overstaffing, but the salary grade. All these employees have the same salary grade. As you know, because of a collective agreement, every three years, an increment of 25% is made to their salaries. This is not through an assessment of their performance and service. This is not an issue faced by the CPC alone, but by the Ceylon Electricity Board and other State corporations also. This has to change in this country. There is no issue in giving a salary increment according to one’s performance and qualifications.” Wijesekera also added that the recruitment procedure for future recruitments will be altered.  “I personally believe that good salaries should be paid, but not the same salary grade for all employees. Therefore, in this regard, we must impose some restructuring. But, we guarantee that this measure is not made to lay off staff. But in terms of future recruitments, the recruitment procedure will be changed.” With regard to the trade unionists who stated that employees at CPC fuel distribution centres at Kolonnawa, Sapugaskanda, and Muthurajawela will report sick as a protest against the Bill being taken up in Parliament, Wijesekera stated that such measures were planned by a group of terrorists. “Last night, a Janatha Vimukthi Peramuna trade unionist Ashoka Ranwala, who is not employed at the CPC or the Ceylon Petroleum Storage Terminals Ltd., has said that all employees would report sick and thus cease the distribution of fuel at fuelling stations. This was a threat.  “No legal or disciplinary action can be taken against this individual as he no longer works for the CPC. But he is sacrificing those employees who are working at the CPC by asking them to report sick and to arrive at the protest near Parliament. Such actions are being taken by terrorist groups. Why should they oppose this Bill? How does the country benefit through such opposition? As the CPC, we cannot continue our operations in the long run, provide the necessary fuel requirements to the public, and conduct operations at our refinery.” Wijesekera further stated that some trade unionists have formed an incorrect picture of the Bill by stating that this is a move to sell the refinery or to destroy the CPC.  “We are clearly stating that the CPC should continue on in the long term. We have no intention of destroying the CPC. We are aiming to convert the CPC into an efficient corporation that makes profits.”


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