Labour unions too have expressed concern that the new rules would make it easier for factory owners to make their employees work longer hours at low wages. Marcus warns that these amendments will make it possible to cut the workforce by 33 percent. The Labour Department has dismissed Marcus' fears as unfounded. Though overtime rules are often violated, at present, workers can challenge this in court. The change in the law was mooted in July 2000.
Labour leaders say it was deferred in view of the subsequent national elections last year.
According to the government's Board of Investment, the change in law is necessary to make Sri Lankan exporters competitive. The exporters supply to the big international brands who have to comply with codes of conduct requiring them to abide by labour laws in producing nations. A third of all garments produced for export are sent to the European Union and most of the rest go to the United States. Marcus says that the government has agreed to legally increased overtime hours ''to circumvent European and U.S. customer demands to adhere to the labour laws in the manufacturing countries.'' Rights groups and labour leaders allege that the legalisation of longer hours of overtime, will lead to greater exploitation of workers. The Labour Department, the Board of Investment and investors justify the long hours of overtime by saying that workers want to earn more.