Government’s delay in endorsing the decision taken by the Employers’ Council and trade unions regarding the minimum wages has created more troubles in the industries in Tarai and will create more troubles in other parts as well.

“If government endorses the agreement reached on last Thursday, all the stakeholders, trade unions and industrialists alike, will have to implement the decision, leaving no room for any strike,” said Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Kush Kumar Joshi in an interaction organised by Society of Economic Journalists of Nepal (Sejon) here today. “The agreement will also ensure smooth operations of industries for next four years,” he said, citing that the trade
unions have agreed not to strike work for four years after this hike in wages.

Last week, FNCCI and three major trade unions — Nepal Trade Union Congress (NTUC), General Federation of Nepalese Trade Unions (GEFONT) and All Nepal Trade Union Federation (ANTUF) — signed an agreement regarding in hike wages. As per the agreement, minimum wage of workers was raised to Rs 6,100 a month and Rs 36 was raised for daily wagers. Agreement between FNCCI and trade unions has hiked dearness allowance to Rs 3,100 from Rs 1,550.

However, some other trade unions have rejected the decision with the effect that industries in Biratnagar and Birgunj are shut for last six days due to trade union strikes. “It is unfortunate that government is indifferent about the troubles of industries and has failed to ensure security and smooth operation of the industries,” he said.

The employers’ council and the trade unions had also agreed to form a Social Security Fund (SSF) so that every worker will be entitled to be part of the social security scheme. As per the agreement, employers and workers have to contribute 20 per cent of the daily wage in the fund.

The social security scheme will include all type of industrial workers -permanent, contract and daily wage.
“SSF could be the tool to break the political patronage of the trade unions. If the labourers are assured about their future then they do not need any political party’s patronage,” he pointed out. “There are industries that are able to pay more than the minimum wage to their workers and they are paying more. But there are also industries which can not even afford to pay the minimum wage," he explained.

Therefore, he emphasised on the need of intro ducing exit mechanism for industries unable to pay even minimum wages. “If the industries can not even afford to pay minimum wages then such industries should better stop operations,” he said.

Published on: 31 March 2011 | The Himalayan Times