Sunday, 31 January 2010

Linking performance to pay in Sri Lanka

The Employers Federation of Ceylon (Sri Lanka)(EFC), with International Labour Organisation (ILO) assistance, has conducted a study of the SME (Small and Medium Enterprises) sector to identify training needs for SMEs.

Business planning and productivity enhancement were identified as the key priority areas which needed attention with regard to these enterprises according to the EFC. As a follow up to the findings of the study, the EFC will identify SMEs that need training in these areas and will provide a training package for them. This is to be done with the assistance of some of the larger enterprises within the EFC membership.

The EFC believes that through this training package these SMEs would obtain the required assistance in making their businesses more vibrant and sustainable. The EFC has identified employment generation and productivity improvement as two main areas of activity to promote the Decent Work Country Programme in Sri Lanka.

Enhancing productivity has been one of the key policy directions that has been identified in the Ten Year Horizon Development Framework under labour policies. The EFC says that it has taken positive steps in this direction through productivity linked payments.

The EFC is happy to record that during the calendar year 2009, out of 41 collective agreements that were signed between employers and trade unions, 13 agreements include productivity/performance based incentive payments.

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