No pay hikes, OT and bonus to employees of loss making SOEs until economic crisis is resolved

By Sandun A. Jayasekera

The government has taken a policy decision not to grant pay hikes, Over Time (OT) or bonus to public servants or employees of loss making State Owned Enterprises (SOEs) as long as the current economic crisis remains unresolved and until  full economic recovery is achieved, cabinet spokesman Dr. Bandula Gunawardana said.   

Commenting on the ongoing trade union action by postal workers at the weekly post cabinet news briefing yesterday, Minister Gunawardana said six out of three demands of postal workers were on OT and pay hike.   
Under no circumstances, could the government  grant postal workers these demands as the country is in dire straits. Millions of families are in a desperate attempt to make ends meet. Therefore, it is extremely unjust, unfair and mischievous to make these demands,” he stressed.  

The Postal Service is one of the oldest public services established by colonial rulers as a public service and not as a profit making establishment. The Postal Service has run with financial support provided by the treasury. The Postal Service has made losses over the years. The income in 2021 was Rs. 4.9 billion while Rs. 7.4 billion has been paid for salary and OT. In 2018, the postal department has incurred Rs. 11.7 billion for salary and OT at 165% more than the income. In 2021, when the income was Rs. 7.1 billion, Rs. 12.7 have been paid as salary and OT. Who can justify a salary increase or excessive OT for postal workers under this situation, Minister Gunawardana asked.  

The government reluctantly increased postal fare from Rs. 15 to Rs. 50 to post a letter and as a result postal revenue increased by Rs. 2 billion. But it is not sufficient to cover the expenses of the Postal Department.  
Therefore I invite the people of the country to decide whether the demand to increase OT from 80 hours to 240 hours a month is fair.   

”However, if the trade unions of the postal service sector can show a way on how to increase revenue enough to grant them 240 hours of OT a month I am ready to discuss it. Until then, there will be no discussions on this issue by me, the government or the secretary of the postal ministry,” he noted.