Echelon - June 2018

The decline of trade unions is exaggerated

Trade unions attract members who have lost out; often men who are unskilled and with few prospects for advancement. The emergence of services as the fastest-growing economic sector, growing self-employment and a preference for part-time work have diminished the importance of trade unions. However, in Sri Lanka, the decline of the union is exaggerated.
In a couple of months, engineers, train drivers, doctors and others have all threatened or resorted to industrial action. Worryingly, union action hasn’t focused on a narrow agenda of entrenching positions, but sought sweeping changes to public policy.
Policy impacts everyone, not just unionized labour. Attempts to reverse Sri Lanka’s eroding competitive position has required urgent policy fixes. Free trade agreements being negotiated with China, Thailand and India, and one signed with Singapore, include not just goods, but trade in services and investment.
Trade unions with the power to launch crippling industrial action are concentrated in the government. Doctors, railway employees and electricity engineers are leading these disruptions.
Two things have pushed unions back into the limelight. The fear of change and its impact on jobs, and the government’s low credibility have left a vacuum that unions now occupy. Unlike elected representatives, unions are unaccountable to the people, and their overbearing influence on economic reforms is dangerous.