SriLankan Airlines: Flight Attendants To Get Billions In EPF Back Payments Since 1979

December 23 2017

The Labour Commissioner has ruled that all SriLankan Airlines Flight Attendants who traveled overseas whilst on duty ever since the airline was established in 1979, must be paid EPF contributions for all meal allowances received apart from their paid basic salaries.
Last week the Department of Labour wrote to the SriLankan Airlines management asking them to provide all individual details such as names, EPF numbers and paid meal allowances of all affected employees within 14 days of their dated letter.

SriLankan Airlines since its inception in 1979 had maintained a practice of paying Flight Attendants over 80 % of their wages in the form of overseas meal allowances in foreign currencies, despite maintaining low basic salary structures. Whilst the paid overseas foreign meal allowances were not taxed, no EPF contributions were paid by the airline for such allowances.

This improper practice was highlighted by the former Fight Attendant Union President Adrian Cramer in January 2016.

As no action was taken by the current Yahapalanaya led airline management headed by Prime Minister Ranil Wickremesinghe’s appointed Chairman Ajith Dias, CEO Suren Ratwatte and the Board of Directors to rectify this issue, FAU President Cramer then went on to file a case with the Department of Labour.

 

During the time of filing his case FAU President Cramer established the sum to have been in the range of approximately Rs 4 billion that was due as back payments.

However now it is learnt to be in the range of Rs 6 billion.

Despite having to pay a colossal sum in back payments, the national carrier also stands to have a hefty fine imposed by the Department of Labour for this gross violation.

Those affected by the nonpayment of these EPF at present are only the Flight Attendants who have filed this particular case.

However on the basis of this particular Department of Labour ruling, all other employees of the airline could file their own individual cases to seek relief for their unpaid EPF/ETF dues, a reliable source told Colombo Telegraph.

 

The re-igniting of this reported violation was first published by Colombo Telegraph in an article titled “SriLankan Airlines’ Fraud Confirmed – Union President Adrian Cramer” on the 26th February 2016. In it the then President FAU Cramer quoted the violations as per the section 47 of the EPF Act and Section 44 of ETF Act, under the title ” Earnings”.

The two sections as quoted by Flight Purser Cramer read as follows”

Employees’ Provident Fund Act – incorporating Amendments up to 31st December 1998

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