Ramesh Shrestha

ALONG with workers all over the world, Nepali workers and their unions are celebrating the 122nd May Day on Sunday. However, labour relation in Nepal is far from normal despite the ‘historic’ salary hike agreement of March 24.

Employers and three major trade unions signed the 11-point agreement with the provision of social security to workers. However, raising a question mark over the legitimacy of this agreement, the government signed another deal on April 15 with five trade unions, including two unions affiliated to the UCPN-Maoist and Madhesh-based political parties. Now, what the government will do to resolve this issue is yet to be seen. The Ministry of Labour and Transport Management, which had signed the agreement with the five trade unions, has been saying that it will implement the latest agreement after holding discussions with employers. The ministry had reached the second deal without holding talks with employers.

However, employers’ organisations—the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industry (CNI)— have expressed reservations over the second agreement, saying that the deal was signed without holding consultations with them.

Earlier, employers had signed the 11- point deal with the General Federation of Nepalese Trade Unions (GEFONT), All Nepal Trade Union Federation (ANTUF) and Nepal Trade Union Congress-Independent (NTUCI). These three unions are also against the government’s accord with other trade unions. While these unions say that the government must implement the 11-point agreement, employers say that the agreement was a ‘historic’ achievement.

“Implementation of this agreement will help build a new relation between employers and workers, ending all disparities,” said Ramesh Badal of GEFONT. He said since they had signed the historic 11-point agreement with employers, the 122nd May Day was important for celebrating the success with major focus on social security.

The 11-point agreement has increased workers’ minimum monthly salary from Rs 4,600 to Rs 6,100 and daily wage to Rs 226. It also ensured social protection to all irregular workers. However, following a weeklong closure of industries based in Birgunj and Birantnagar—two major industrial hubs—by disgruntled minor trade unions, the government reached new agreement to increase the monthly salary by Rs 1,600.

As per the provision in the Labour Act- 1992, the minimum wage of workers is normally reviewed every two years. And, according to employers, the 11-point agreement is based on the act. The agreement increased the salary by almost 33 percent.

In the second agreement, the minimum wage has been increased by Rs 1600 to Rs 6200—a hike of Rs 500 in basic salary and 1,100 in dearness allowance. The daily wage has been increased to Rs 231 from Rs 190.

Following the second agreement, trade unions affiliated to Madhesh-based parties, two factions of the Maoist-affiliated trade union—each led by led by Badri Bajgain and Lal Dhwoj Nembang—and other minor trade unions have been warning of a nationwide industrial strike if employers did not implement the latest pact. A high level ministry official said the two different agreements have created trouble for addressing the workers’ demand. “We are planning to hold discussions with employers on this issue and solve the problem soon,” he said.

However, employers have been saying that they will not accept any changes to the 11-point agreement. They said the labour problem increased mainly because of the government’s failure to address the labour issues and political interference.

“The March 24 agreement was reached amid the presence of labour ministry officials,” said Manish Agrawal, member of the Employers Council of FNCCI. “The new agreement without holding consultations with us is not acceptable.”

Employers are against the second agreement and minor trade unions are not ready to comply with the first one. This shows that there is a lot more to explore to build a cordial relation between workers and employers leading to industrialisation for economic prosperity.

Published on: 1 May 2011 The Kathmandu Post