Amidst the ongoing tussle between the CEB Trade Unions and the Ministry of Power and Energy over the new reforms that led to the sick note campaign and work-to-rule protests, the International Labour Organisation (ILO) has stepped in to facilitate discussions between the Ceylon Electricity Board (CEB) and trade unions over concerns related to ongoing reform measures.

ILO Country Director for Sri Lanka and the Maldives, Joni Simpson, wrote to the Secretary to the Ministry of Energy, Prof. K.T.M. Udayanga Hemapala, on 29 September, requesting a meeting to explore ways to support the Government’s reform process. The request follows a meeting held on 25 September at the ILO Office in Colombo with trade unions representing CEB workers.

While all unions reaffirmed their support for the Government’s broader State-Owned Enterprises restructuring programme, they voiced concerns over the lack of clarity and assurances regarding the future of CEB employees. They stressed that reforms must comply with legal provisions and be implemented transparently and fairly to protect affected workers, the letter said. 

The consultation, conducted at the request of the General Secretary of the Sri Lanka Nidhahas Sevaka Sangamaya (SLNSS) — a key ILO constituent — brought together representatives from 25 engineering, technical, and general trade unions of the CEB. The purpose of the meeting was to understand the grievances behind the ongoing 21-day “work-to-rule” action and to explore possible solutions through structured social dialogue.

She said that at the meeting, the TUs requested ILO support to facilitate a constructive dialogue between the CEB Trade Unions, the Ministry of Energy, and the Power Sector Reforms Secretariat.

ILO Country Director Simpson highlighted that the ILO, in collaboration with the Ministry of Public Administration, the Ministry of Labour, and other State partners, is already implementing the Social Dialogue for Peace and Crisis Prevention in Sri Lanka Project, funded by the UN Secretary-General’s Peacebuilding Fund.

The project provides technical support to strengthen social dialogue mechanisms within the public sector, in line with Public Administration Circular 5/2024. It promotes discussion between management and unions at the workplace, sectoral, and national levels. The energy sector has been identified as a priority under Cabinet Memorandum 24-2016-707-004 (28 October 2024), allowing the project to support inclusive and productive reforms at the CEB.

The discussion between representatives of CEB Trade Unions and the ILO had expressed serious concerns over the ongoing restructuring of the State utility, citing unclear employment conditions, the absence of institutional structures, and insufficient consultation.

Union representatives said employees had received letters assigning them to one of four proposed companies without specifying job titles, designations, salaries, or service conditions. Staff were reportedly given only two options: transfer to a new company or accept compensation under the Voluntary Retirement Scheme (VRS). No option to select a preferred company was provided, and there has been no clarity on how pension funds will be handled.

The unions also raised issues regarding the absence of institutional structures, noting that details about company addresses, boards of directors, management structures, or registration numbers remain undisclosed. Employees are reportedly uncertain about their rights, designations, and whether transfer policies comparable to the existing CEB system will apply.

Further concerns were raised about the long-term security of approximately 23,000 employees. While around 90% are expected to be absorbed into two State-owned companies covering generation and distribution, legislation provides for the eventual unbundling into private entities within 1–2 years. Unions warned that this could threaten the security of the workforce and lead to a loss of experienced staff.

The Unions had criticised the reform process for being carried out without meaningful consultation. A generic letter issued on 22 August 2025 by the CEB General Manager informed employees of their assignment options and the VRS terms, but the new entities to which staff were assigned have yet to be fully established. Trade unions said the lack of dialogue risks creating human resource gaps that could negatively affect electricity consumers and undermine workers’ trust in the process.

The unions also pointed out potential legal violations. Circular No. 2025/GM/20/Pers, issued by the General Manager, allegedly contravenes the Sri Lanka Electricity Act, which requires a transitional plan identifying employee assignment and an HR plan outlining staff distribution. Unions emphasised that employees cannot make informed decisions regarding assignments or VRS acceptance until the successor companies are formally established, boards are constituted, and full details regarding roles, remuneration, career progression, and VRS terms are disclosed.

The unions referred to a Supreme Court determination that provides a detailed procedural guideline for managing employees during the reform. They submitted 24 demands designed to remove uncertainties during the transition, stressing that these demands do not include economic claims or obstruct the reform.

Originally published at https://ceylontoday.lk