Why did FUTA base its demand on 
GDP and not government budget?

September 12, 2012, 12:00 pm , The Island

I am at a loss to understand why FUTA based its demand for extra resources for education on GDP and not on the national budget which allocates funds annually to different sectors, based on the government’s inter-sectoral priorities, and resources available to it from tax revenue and loans, both foreign and domestic.

I do remember how at the time I was appointed Secretary of the Education Ministry in 1980 we were on a shoe-string budget for education, with hardly enough to meet our minimum recurrent expenses and virtually nothing for capital expenditure. The government that was elected to office in 1977 had what were described as its four ‘lead projects’ (Mahaveli diversion, Katunayaka Free Trade Zone, Prime Minister Premadasa’s Million Houses’ Programme and the Project to move Parliament and the administrative capital to SJP), and we were asked to wait until these expenditures tailed off in the late eighties for any increase! The actual allocation for education in 1980 was 7.06 % of government expenditure making it an uphill task to provide even the necessary teachers or undertake urgent maintenance work to buildings. By the end of the decade, however, the provision for education had gone up to 10.62% of the government budget.

Similarly, it is common knowledge that defence expenditure took a large part of the cake in more recent years, taking resources away from other sectors. But what is worrying is the drop in the resources allocated to education after the conclusion of the war, as shown in the following figures, particularly in the context of wasteful expenditures and mega projects undertaken/contemplated by government some of which seem to be of questionable value.

[Figures taken from Central Bank publication ‘Sri Lanka Economic Data 2011 - Vol. XXXIV’]

There is no doubt that FUTA has tagged on the demand for a hugely enhanced allocation for education to gain wider support for their trade union struggle which they have succeeded in getting, but basing its demand on the GDP raises a whole lot of problems. I am no economist but with the smattering of economics I have, I am aware that the GDP or Gross Domestic Product is a measure to estimate the value of the total worth of a country’s production and services within its territory by both its nationals and foreigners during the year that has just ended. It is not the GDP but the GNP or Gross National Product which takes account of all inflows of incomes from SL citizens abroad as well as outflows from foreigners here. Since both these are calculated at the end of the year they are post facto computations, and at the time allocations for government expenditures are made these magnitudes are known only as forecasts which may often go wrong due to reasons beyond our control, much more than in the case of the national budget where there is a possibility of moving resources from one sector of expenditure to another depending on exigencies.

Moreover, there are different manifestations of the GDP (same with the GNP) which often baffle the layman and even confuse those with some knowledge of economics, such as GDP at Current Market Prices (also referred to as the Nominal GDP), GDP at Constant Market Prices (also referred to as the Real GDP), GDP at Current Factor Cost Prices and GDP at Constant Factor Cost Prices all of which represent different magnitudes. For instance, our GDP at Current Market Prices in 2009 was Rs. 4913 billion while the GDP at Constant Market Prices for the year was Rs. 2448 billion – less than half the former sum!

According to my economist friend Usvatte (we studied economics together at Peradeniya in the mid fifties and took different paths thereafter) the FUTA demand for 6% of GDP to be spent on education would mean 25% of all government expenditures (The Island, 22/8/12). He has computed this to mean raising government expenditure on education to Rs. 363 billion from its current level of Rs. 121 billion. This does not seem possible unless we strike oil, if not gold, within the next few years and therefore an increase of 6% of GDP for education seems a futile demand to make in the present context, while not denying the fact that there are countries spending 20-30% of total government expenditure on education (See table 3.2 in World Bank publication Treasures of the Education System in Sri Lanka, 2005). One wonders whether the economists among university teachers had not brought these facts to the attention of the brains’ trust of FUTA!

Eric J. de Silva

Z score fiasco: SC orders UGC to enrol 5,000 more to varsities

Fourth attempt permitted for affected students

September 12, 2012, 9:52 pm 

By Chitra Weerarathne, The Island

The Supreme Court yesterday ordered the University Grants Commission (UGC) to admit an increased number of 5,609 students to the state universities for the academic year 2011/2012. This is in addition to the 21,500 students previously selected.

Out of the four methods submitted by the UGC to the Court, the third one was picked, since it accommodates the highest number of new admissions.

The Court also directed the Commissioner General of Examinations and connected authorities to annul the rankings issued on July 22, 2012 and to approve the fresh rankings issued on September 6, 2012, pursuant to proceedings of September 3, 2012.

The rankings approved by the Court were those worked out on the basis that the old syllabus and the new syllabus taken as separate entities when the Z-scores were recalculated and re-issued according to the Supreme Court Judgement of June 25, 2012.

The Court directed the UGC to allow the students who sat the GCE (A/L) in August 2011 for the third time in August 2012 to sit once more in August 2013. Those students should be eligible to apply for admission to State universities, the Court ruled. This allowance was granted since there had been a delay in the issue of the Z-score and the rankings had to be re-issued, prior to the re-issue of the new Z-scores on July 23, 2012.

The increase number of 5,609 will include 681 Arts stream students.

The old syllabus students filed a fundamental rights violation application in the Supreme Court that the merging of the new syllabus and old syllabus populations in calculating the Z-scores was detrimental to their interests. The Court on June 25, 2012 ordered the UGC to recalculate the Z-scores, considering the old and new syllabi as separate entities.

Later, the students complained in a motion that the two different entities had been pooled in admitting students to universities.

The Court ordered that the two different entities should not be pooled but considered separately.

Saliya Pieris appeared for the petitioner students.

Attorney General Palitha Fernando PC, appeared for the Commissioner General of Examinations, cited as the first respondent.

Faiz Mustapha PC, appeared for the second respondent, the University Grants Commission. Sanjeewa Jayewardena appeared for intervenient petitioners, who supported the cause of the students.

The Bench comprised the Chief Justice Dr. Shirani Bandaranayake, Justice N. G. Amaratunga and Justice K. Sripavan.

 

UGC chief to file affidavit in SC

September 12, 2012, 10:27 pm 

By Chitra Weerarathne, The Island

President’s Counsel Faiz Mustapha yesterday gave an undertaking to the Supreme Court that his client, Professor Gamini Samaranayake, Chairman of the University Grants Committee, would shortly file, in Court, all documents pertaining to the minutes of the University Admissions Committee, which met on August 22, 2012. Counsel also told the Court that his client would file an affidavit, explaining the inaccuracies he had referred to pertaining to a press conference held on July 26, 2012 at the UGC office. Court granted time till October 12, 2012 to file the documents. Professor Samaranayake was noticed to show cause as to why he should not be dealt with for contempt of the Supreme Court for having delayed to re-issue the re-calculated Z-scores, as ordered by the Supreme Court in a Judgement delivered on June 25, 2012.

Counsel Mustapha said that there was no intentional delay. His client had not intentionally disobeyed the order. The Department of Examinations, asked the UGC for directions pertaining to the recalculation. The UGC sought the advice of the Admissions Committee comprising the Vice Chancellors. Then, advice was sought from the Committee of Experts, comprising Prof. Thatill. That Committee of Experts was appointed by the President. They recommended the recalculation as ordered, considering the two syllabus as different entities. The Committee of Experts however, recommended the pooling of the two entities to make the selections for admissions. Nowhere did Professor Samaranayake act on his own accord and seek to disobey the Court. He did a genuine job. Any error was bona-fide, Counsel said. The matter will be mentioned on November 22, 2012 before the same bench comprising the Chief Justice Shirani Bandaranayake, Justice N. G. Amaratunga and Justice K. Sripavan. J. C. Weliamuna approved for the petitioner students, who had filed a motion complaining of a delay on the part of the authorities to implement the Court order, of June 25, 2012.

U’grads go back home

September 12, 2012, 10:29 pm 

By Cyril Wimalasurendre, The Island

KANDY: Students of the Peradeniya University have left the campus as their have been sign of academic programmes commencing although Universities were re-opened a week ago. A majority of the undergraduates, who went into occupation of the Halls of Residence, have left for their homes, a Peradeniya University sources said yesterday. The campus area, sans students and teachers looks a desolate land.

Jaffna Agriculture Faculty to open in Kilinochchi next month

September 11, 2012, 9:56 pm , The Island

By Dilanthi Jayamanne

The Agricultural Faculty of the Jaffna University would commence next month at Ariyavil City, Kilinochchi and the Engineering Faculty there would commence next year, Minister of Traditional Industries and Small Enterprise Development (TISED) Douglas Devananda had told a discussion at the Agriculture Faculty last week.

The Minister’s media spokesman Nelson Edirisinghe said that Devananda had held several discussions with the relevant heads of faculties of the Jaffna University to iron out issues which needed to be addressed. It was revealed, during discussions, that the Government Agent of Kilinochchi had received two tractors to be utilised for providing drinking water and other services prior to commencing studies at the Agricultural Faculty. Water tanks and water pumps had been purchased with the Rs. 400,000 provided by the TISED Ministry.

Edirisinghe said that the Indian Government was keen on commencing the faculty of Agriculture in Jaffna as well and had assisted by providing funds for the purpose. Minister Devananda also urged relevant demining agencies to expedite their work in the area. A massive student shramadana had also been organised to clean up the premises for next month’s opening.

The Minister has also urged sectional heads of the University to explore the possibilities of commencing an Engineering Faculty temporarily within the city next year. Edirisinghe said that the Minister had visited the Mahadeva Children’s Ashram building complex to explore the possibilities of temporarily housing the Engineering Faculty within it. The government would allocate funds for the new Engineering Faculty.

Statement regarding higher education ministers’ attacks on the academic community

11th September 2012


In most countries, a highly educated, exemplary minister is assigned education related ministries. However, the trade union action by FUTA has shown beyond doubt that we are burdened not only with a minister that does not portray any of these qualities, but actively renounces strategies that would benefit the entire education sector in this country.

Even after two months into the trade union action, his utterances shows that he does not understand (or pretends that he does not understand) what our demands are about. Though our demands centres around enhancing recruitment and retention capabilities of the university system, safeguarding university autonomy and enhancing free education in Sri Lanka, the minister rather than meaningfully intervening makes arbitrary and unfounded accusations against academics using foul language unbecoming of a public figure.

The uncouthness of the minister has no bounds, which has previously landed him even in jail. Placing a jailbird as a minister of higher education and the meagre funding allocations (to education) in itself shows the attitude of the government to education in the country.

FUTA vehemently objects to the ministers’ uncouth and aggressive conduct and behaviour and request the minister to follow the norms of engagement in resolving the issues that we raise.

Yours faithfully,

Dr Nirmal Ranjith Dewasiri

President/FUTA

The FUTA strike: How rational is it?

September 11, 2012, 7:41 pm , The Island

Professor Rohan Rajapakse

Senior Professor, University of Ruhuna and Consultant, Ministry of Higher Education

The strike action by the FUTA members from July 4th has paralysed some universities except the medical faculties for the last two months. However, as a person directly involved with FUTA discussions with the Secretary, Ministry of Higher Education I thought it is my duty to tell the people of Sri Lanka the background and the basis of the FUTA demands for the last two years. The FUTA initiated discussions with the Secretary /MOHE almost one and a half years ago and six main demands were made to the Ministry. Let us examine their demands and the solutions offered in detail.

1. Salary Issue

The salary hike that FUTA made in 2011 was based on the Jiffry-Malik Commitee which recommended the substantial salary increase to academics. The Ministry of Higher Education (MOHE) along with the UGC made unprecedented salary hike for academics from mid 2011 culminated in issuing the UGC circular no 985 where a Senior Professor was entitled to total monthly salary of Rs. 140,721 and a Probationary Lecturer was given Rs. 55,750 effective from October 2012. This includes the increase of the basic salary of Senior Professor (16.18%) to Probationary Lecturer (3.25%). However FUTA was not satisfied about this massive salary increase and wanted a 20% basic salary increase to all academic grades from 2012 and further increase of basic salary of 16.7% from the budget of 2013. This was not acceptable to the Ministry of Finance as it will upset the present salary structure of the Government Sector. However, at the time this will get into press I understand that FUTA and the Ministry of Finance have agreed on mid and long term solutions to solve this protracted issue.

2. Attraction and retention of young

academics in the university service

The FUTA wanted the Universities to pay a salary to attract and retain the best talented graduates in the university system. Mindful of this demand, the MOHE/UGC fixed the initial total salary of a Probationary Lecturer at Rs, 55,775, a month through the circular No. 985. When you compared this with salary scales of the government sector, naturally you find it is an attractive scale second only to the scale given to the Management Trainees at the Central Bank (Rs 60000/ month). A newly recruited graduate at the Sri Lanka Administrative and comparable services are given a total salary of Rs 29,988. A Research Assistant/Officer in Research Institutes Rs 24,725, Development Assistants/Monitoring Officers at Rs 16535, and recently graduates were employed in a scheme at Rs. 10,000 a month. The FUTA through its demand wanted the MOHE/UGC to pay this category Rs. 55,000 in their preliminary proposal and in fact the MOHE has given much more than the FUTA demand.

3. Six percent of GDP for education

The Gross Domestic Product (GDP) is the total market value of all the products and services produced in the country within a year. The 2011 Central Bank reports that the Government income as a % of GDP is 14.3% and the total expenditure and net landing is 22.9% of GDP. Therefore a 6% GDP is around 41.95 % of the government income and about 26.4 % of the Government expenditure. This has resulted where the government has to spend one fourth of its expenditure on education leaving three fourth for all other essential mandatory services of the government. A sensible government cannot allocate such an amount for education leaving the rest to health, salaries, pensions, subsidies (fertilizer) etc. Also allocation of GDP to the sectors is a legislative duty of the Parliament and a trade union cannot make such a demand nor can a single Ministry make such a decision. However, the MOHE has progressively given increased amount to Higher Education from 2000 Rs. 5,000 million to Rs. 21,410 million in 2011. It is noted that the amount of funds returned by the Universities to the Treasury during the same period is Rs. 11,157 million from 2008-2011 a hefty amount. The cabinet last week has approved an increased percentage for education on a matter of principle and I am sure all those who are concerned would be happy of this decision by the Cabinet. The FUTA has mentioned an array of number of countries which are making around 6% GDP on education but an analysis of those countries reveals that either they are fee levying countries for education (no free education) or ultra poor countries who has allocated increased % to education to avert poverty.

4. Political interference in university affairs

It is the academics or teachers who run the affairs of a university. The Senate, Faculty Boards, numerous committees (Curriculum,Finance etc) are composed of teachers who are responsible for decisions. The Vice Chancellor, Deans, Head of Departments are all academics and even the University Grants Commission the Chairman and the Vice Chairman are Senior Professors which includes the Commission members of whom majority are academics. It is the Council chaired by the VC that nominates 3 names for the post of Vice Chancellor on guidelines given in the circular issued by the UGC, culminating with the appointment by the President from among the three names suggested by the Council. The Procedure of appointing the Council members other than the academics are mentioned in the University Act of 1978 and very often it is the Vice Chancellors who recommend names for appointments as council members to the UGC. According to the University Act of 1978 the Minister in charge of Higher Education has the responsibility for the general direction of the university education and administration of the Act. This means the Minister and the Ministry have the obligation with accountability to carry out actions for the benefit of higher education. The Minister is vested with authority and independent capacity to act in this domain and this could not be contrived as political interference as alleged by the FUTA. It is also worth mentioning that the authority of the subject Minister runs for several pages in the ACT, but there is no mention of FUTA anywhere in the act although the power and authority of Student unions are listed.

5. Sri Lanka University Academic Service (SLUAS)

The FUTA proposed to have SLUAS to have academics as a separate service in the university system. The MOHE was willing to consider this provided that as in other services in the country like SLAS, SLPS. SLAGS there will be central recruitment of academics by the UGC and a teacher transferable service within the university system. However the FUTA was against these two suggestions by the MOHE but the Cabinet at its weekly meeting has accepted this proposal. Hence I hope that steps will be taken to establish the SLUAS very shortly and as it is a separate service the MOHE will in future could discuss the interim salary demands of the FUTA.

6 Rate of payments at university exams

In Sri Lanka unlike in the USA or in the western countries the academics are paid for the services rendered by them in examinations in the capacity of Supervisor, Invigilator, Marking Examiner ( Internal and External) etc. The rates of payments for these examinations have been increased upto 500% by the UGC (Circular No 981) with concurrence of the Ministry of Finance. In addition the fee for visiting lecturers has been increased to Rs 1500 per hour. The teachers are entitled to earn enhanced amount through their teaching for Post Graduate Degrees, External Degree Programmes, Diploma and Certificate Programmes, and also through Consultancies given to the Private or NGO Sector. This is one of the main demands of the FUTA in 2011 and the MOHE/UGC has fulfilled this long term demand of FUTA.

These were the main six demands of the FUTA and besides there were other suggestions. The FUTA wanted the academics to obtain housing loans from state banks for which MOHE has discussed with the State Banks and agreed upon granting the academics Rs. 1 million at 7% interest and Rs. 2 million at ( 9%) interest. The Government will bear part of the interest up to maximum of 5.5% for Rs. 1 million and 5% for Rs. 2 million respectively. Besides the FUTA wants to cancel the leadership programme commenced last year and the 100 foreign scholarship schemes given for foreign students to enrol in Sri Lanka Universities. The MOHE requested FUTA for alternate programme for leadership programme if they are against but so far there is no response. The MOHE believes by giving scholarships to foreign students it will enhance the rating of Sri Lankan universities in the World Class Universities map.

Finally we should discuss the repercussions of this two month long strike action by FUTA.

1. There is no one in the final year students that are able to graduate. We are all aware that even a one month delay in graduation will be enough to delay the progress of their lives by years.

2. The academics are without pay for the last two months as the UGC has issued a circular in 2006 informing all that it will accept the basic right of workers to strike but there is no pay for no work which is endorsed by the Labour Department.

3. The Government wants Sri Lanka to be a Knowledge Hub in next few years and it may not be possible to achieve the targets if this strike gets dragged on.

4. The academics themselves are not able to present their findings in foreign forums/workshops as they have to certify that they are not on strike to get clearance from the MOHE.

FUTA Executive Committee too says no to arbitration

September 11, 2012, 9:56 pm 

by Dasun Edirisinghe,The Island

The Federation of University Teachers’ Associations (FUTA) yesterday decided not to go for arbitration offered by the Labour Department to solve their demands.

FUTA President Dr. Nirmal Ranjith Dewasiri told ‘The Island’ that their executive committee took the decision when they met at the Open University of Sri Lanka.

"We are ready to face any difficulty over refusing arbitration," he said.

Dr. Dewasiri said that officials of the Open University did not allow them to enter the premises for the meeting, but they finally entered the university by force.

The senior academic said that they would instead opt for compulsory arbitration, but they would not give up the strike.

FUTA launched a continuous strike on July 04 demanding allocation 6% of the GDP to education, they be consulted when taking decisions on higher education and a pay hike.

Several discussions with the government failed to bring about a settlement during the last two months.

Arbitration irks FUTA

September 10, 2012, 9:43 pm 

by Dasun Edirisinghe, The Island

 The Federation of University Teachers’ Associations (FUTA) yesterday rejected the arbitration offer made by the Labour Department to solve university lecturers’ problems.

FUTA President Dr. Nirmal Ranjith Dewasiri told The Island that they had held a discussion with the Labour Minister, Ministry Secretary and Labour Commissioner yesterday morning.

"We were offered arbitration by the Labour Commissioner," Dr. Dewasiri said, adding that their membership would not be happy with it.

If they went for arbitration, they would have to stop the ongoing trade union action, but FUTA was not ready to do so, Dr. Devwasiri said. According to him, FUTA had called a special executive committee meeting today to decide on a future course of action after turning down the Labour Commissioner’s offer.

Dr. Dewasiri said that they had submitted their proposals to the government at the meetings they had with Presidential Secretary Lalith Weeratunga, Higher Education Minister S. B. Dissanayake and Economic Development Minister Basil Rajapaksa.

"We do not need any arbitration to solve this problem," he said.

FUTA launched a continuous strike on July 04 crippling the universities.

President Mahinda Rajapaksa has refused to talk to university dons while they are on strike.

Salaries of University academics and those of other state sectors

September 9, 2012, 12:00 pm , The Island


Much has been written about the struggle of the University teachers for policy changes in the education sector and for an increase in their salaries. This letter is not to add to what has already been said but to point out certain false notions perpetrated by the authorities, particularly on the demand for a 20% increase of their basic salaries. Those on the government side argue that such action would result in others in similar categories agitating for the same kind of increase. My basic premise is that the University teachers get only their salaries and no other perks such as housing, official vehicles, telephone allowances and many other perks compared to equivalent senior executive grade officers. Also, the University lecturers have now been made to pay income tax, a practice abolished by an earlier UNP government. Many government institutions such as the banks, electricity board, water board etc. pay the income tax of their employees, a benefit not extended to academics. 
 
 Prof. J.N.O.Fernando made the valid point (Island September 5) that it is not fair to compare our salaries with those of judges and other administrators like secretaries of ministries because of the other monetary benefits such as official cars, housing and telephones for private use which these officers get. Not only that, they are entitled to take their official cars home upon retirement after paying a pittance to the Government stores. On the salary issue, why cannot these people who oppose increasing salaries of academics look at the salaries of the Central bank employees who are paid nearly twice what an academic gets. A senior lecturer equivalent in the central bank gets about Rs. 150,000 a month while the one in the University gets only around Rs. 60,000. In the old days, those recruited to the central bank were placed at a lower scale than the University academics so as to attract the best quality graduates as academics. Central bank employees also get both provident fund and pension benefits upon retirement while the University academics get only the provident fund. Central bank is perhaps the only Government Institution which pays the full cost of training abroad to get their postgraduate degrees, a facility which the University academics had in the 1970’s. In a recent advertisement for management trainees at the Central Bank, the salary during training was given as Rs. 50,000 a month while it will be not less thanRs. 90,000 just after one year of training. People who try to compare salaries should think about these glaring discrepancies to understand the plight of the University academics. Also, those who lament about deteriorating standards of Universities should take cognizance of these facts. 
 
 Leave aside the Central bank, salaries of other state Institutions give ample proof that money is not a limitation in paying their employees. Even a clerk or a meter reader at the Electricity Board with just GCE(A.L) qualifications gets around Rs. 60,000 a month compared to around Rs. 30,000, which a starting lecturer in the University gets. This is the crux of the problem and no wonder that the exodus of highly qualified graduates find University service so unattractive. It is time that our policy makers understand these realities and settle the present strike action of University teachers without further delay. This has already affected the future of thousands of undergraduates and will also affect thousands of students who sat the GCE(A.L.) Examination. Politicians are not affected by the current strike since most of their children study abroad and it is the sons and daughters of the common man who voted such politicians into power who are affected.
 
 
 
 Prof. O. A.Ileperuma, Senior Professor of Chemistry, University of Peradeniya