Although they were not part of the pay hike given to industrial workers by the government, three big trade unions on Tuesday asked the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) to implement the government-fixed minimum wages within 15 days.

They have also requested the private sector’s apex body to withdraw a case filed in the Supreme Court against the new pay hike. On July 3, the court issued an interim order against implementing the new salary.

The General Federation of Nepalese Trade Unions (GEFONT), All Nepal Trade Union Federation (ANTUF) and Nepal Trade Union Congress-Independent (NTUC-I) on Tuesday submitted a memorandum to the FNCCI demanding implementation of the hike of Rs 1,600 minimum salary and Rs 231 daily wage. In the memorandum, they have also asked the FNCCI to implement the Social Security Fund with contribution of 20 percent of the basic salary from the employers.

On March 24, the three trade unions had agreed with the employers’ organisations to hike workers’ minimum basic salary by Rs 1,500 a month and daily wage by Rs 31. Other small trade unions have also been asking the employers to strictly implement the new salary provisions. Vice-president of GEFONT Umesh Upadhyaya said the FNCCI must implement the salary provision based on the notice published in the Nepal Gazette and withdraw the case filed in the court. “Workers will be forced to call a nationwide strike if the FNCCI fails to implement the salary within 15 days,” he said.

On May 23, the government had fixed the minimum monthly salary of Rs 6,200 (basic salary of Rs 3,550 and dearness allowance of Rs 2,650) and daily wage of Rs 231 through the Gazette to be effective from March 15. Earlier, the salary structure was Rs 4,600 (basic salary of Rs 3,050 and dearness allowance of Rs 1,550) a month and the daily wage was Rs 190.

However, the pay hike introduced by the Ministry of Labour and Transport Management had received strong reservations from employers’ organisations. They said that the increment was made without consulting them and taking the issue to the minimum wage fixation committee.

They have been saying that the salary provision had also ignored the spirit of the 11-point agreement reached with trade unions on March 24.

Through the 11-point agreement that was termed “historic” and sealed with the three big trade unions, employers had agreed to increase the monthly minimum salary by Rs 1,500 (Rs 50 basic salary and dearness allowance of Rs 1,450) and to set the daily wage at Rs 226. In the last six months, the minimum salary row has been a much debated issue among the trade unions and employers’ organisations.

Now, with the many industries already implementing the minimum wages amid pressure from trade unions, the FNCCI is also planning to follow suit.

Manish Agrawal, a member of the Employers’ Council of the FNCCI, said they were ready to implement the salary hike and contribute to the Social Security Fund after consultations with trade unions.

“The government that hiked the salary without consultations with employers must also clarify the rationale behind the move in a meeting with all stakeholders,” he said, adding that a difference of Rs 100 in the salary agreed by them was not a big issue. Some industries have also been paying minimum salary of Rs 6,100 a month to its workers.

Published on: 17 August 2011 | The Kathmandu Post