Workers have closed the Basamadi-based factory of Unilever Nepal since Sunday morning over wage settlement dispute.

The workers demanded increase in both salary and allowances by 50 per cent, interest free housing loan of Rs 1 million per person and Rs 100,000 house maintenance allowances per person per annum. 

Today, the agitating workers staged a sit-in at the main gate of the industry.

However, Unilever Nepal said that the management had offered handsome packages after a series of negotiations with the representatives of the workers.

“The additional benefit was offered over and above the increases which has increased workers’ remuneration by 69 per cent since 2009 till 2011, during which period the profits of the company has increased by only 37.3 per cent,” the company said, adding that the representatives of the workers, however, were intransigent and unwilling to negotiate.

“They have irrationally and unreasonably demanded high salary of around Rs 21,000 monthly and closed the factory,” said the Unilever Nepal that has been paying the workers already handsomely with an average of total remuneration above that of a qualified gazetted first class government officer.

The closure has affected 115 workers, who were engaged in producing toilet soaps like Lux and Lifebuoy and toothpastes like Pepsodent and Close Up in Nepal. Apart from generating employment, Unilever Nepal has contributed Rs 764 million to the government in the fiscal year 2010-2011.

Jayaram Dhital, unit chairman of All Nepal Industrialist Workers’ Union said they were forced to close the industry after management did not raise workers’ salary, allowance and insurance for the past three years, though it used to increase the facilities every two years.

Issuing a joint press release Makawanpur chapter of Federation of Nepalese Chamber of Commerce and Industry, Industry Organisation Hetauda, Narayani Transport Entrepreneurs’ Union, Makawanpur Construction Entrepreneurs’ Union urged the company management and workers to resolve the dispute through negotiations. The talks between the political parties, industry management, workers, Makawanpur chapter of FNCCI and workers on Sunday and Monday ended inconclusively.

Published on: 7 February 2012 | The Himalayan Times