Ramesh Shrestha

The workers’ pay hike issue has taken a new twist, pitting the government and the private sector against each other. On Tuesday, a day after the government endorsed the new salary provision by publishing a notice in the Nepal Gazette, employers stood firmly against the increment of the monthly minimum salary from Rs 4,600 to Rs 6,200.

Employers’ organisations—the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI)—strongly demanded that the government correct its approval for the new salary provision and hike the pay as per their agreement with three major trade unions—General Federation of Nepalese Trade Unions (GEFONT), All Nepal Trade Union Federation (ANTUF) and Nepal Trade Union Congress Independent (NTUCI), reached two months ago. “We have strong reservations over the new provision, as its implementation will lead to labour conflict,” said Pasupati Murarka, president of Employers’ Council of FNCCI, adding that employers are not in a position to offer salary to workers as endorsed by the government.

On March 24, employers and the three major trade unions had signed an 11-point agreement which had decided to increase the minimum salary by 1,500 (Rs 50 basic salary and dearness allowance of Rs 1,450), making the minimum pay Rs 6,100 and daily wage Rs 226. Employers said the government’s move to increase the salary by Rs 1,600 a month was ‘unfortunate’ and against the spirit of the 11-point agreement.

The FNCCI said the government move will leave a negative impact on the whole economy that is already going through a hard time. Similarly, CNI in its press release said the system adopted by government is wrong as it undermines the agreement reached between employers’ organisations and major trade unions. “The new system will not help build a cordial labour relation as well as will create problems in implementing the new salary provision.”

The Ministry of Labour and Transport Management on Monday, publishing a notice in Nepal Gazette, had legally endorsed the new provision of minimum monthly salary Rs 6,200 (basic salary of Rs 3,550 and dearness allowance of Rs 2,650) and daily wage of Rs 231 to be effective from March 15.

The new provision has decided to bring all workers in the social security system where employers will contribute 20 percent of workers’ basic salary and workers will put in 11 percent as underlined by employers and the three major trade unions. However, the increment of minimum salary and daily wage were based on the demand of seven other trade unions against the 11-point pact.

Kush Kumar Joshi, former president of FNCCI, said employers and the three trade unions had agreed to maintain industrial peace and contribute money in the Social Security Fund, besides increasing the salary. “Why employers should put money in the fund, when agendas of the 11-point agreement are not being addressed in the package?” he said.

Employers said the new provision failed to incorporate the vital subject of marking the next four years as the period of industrial peace, no illegal strike in industries, help of trade unions on downsizing workers if required, formation of a standing committee to fix workers’ salary. However, Krisha Hari Pushkar Karna, assistant spokesperson and under secretary of the labour ministry, said the notice was related to workers’ salary and other issues can be implemented based on employers and trade unions’ understanding.

Labour ministry on April 16, following a week-long strike by disgruntled trade unions including two warring factions of ANTUF and Madhesh-based political parties-affiliated trade unions in major industrial areas, had held talks and agreed to increase the minimum salary by Rs 1,600 and daily was by Rs 41. However, in the 11-point agreement, the three major trade unions and employers had decided to increase the monthly salary by Rs 1,500 and daily wage by Rs 36.

Karna said the government finalised the new provision after holding talks with all employers’ associations and trade unions concerned. “If there are any reservations on the new provision, they can be addressed by amending labour laws,” he said.

Published on: 25 May 2011 | The Kathmandu Post