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Wages issue drives a wedge

Trade unions divided · FNCCI sticks to agreement

Trade unions are divided over Ministry of Labour and Transport Management's move to implement its April 16 agreement with eight minor trade unions on minimum wages. The April 16 agreement followed an earlier deal signed between the employers and three largest trade unions on March 24.

The labour ministry is planning to implement the April 16 agreement -reached between Minister for Labour and Transport Management Top Bahadur Rayamajhi and eight trade unions -by publishing it in the government gazette some time next week. The agreement has hiked minimum salary to Rs 6,200, including Rs 500 increase in basic salary plus Rs 1,100 price hike allowance. Similarly, daily wages have been hiked to Rs 231.

The March 24 agreement between three major trade unions -All Nepal Trade Union Federation, General Federation of Nepalese Trade Unions, Nepal Trade Union Congress -Federation of Nepalese Chambers of Commerce and Industry and Confederation of Nepalese Industries had increased the minimum salary to Rs 6,100, with Rs 50 hike in basic salary plus Rs 1,550 price hike allowance. The agreement had fixed daily wages to Rs 226, along with social security for workers.

ANTUF, GEFONT and NTUC are not in a mood to accept anything less than March 24 agreement. “We are following MoLTM plans closely and won't accept any change in the agreement that was signed between us, FNCCI and CNI,“ said GEFONT President Bishnu Rijal. “ANTUF, GEFONT and NTUC will collectively respond soon.”

Employers too are against the MoLTM plan because once the April 16 agreement is published in the gazette the earlier deal negotiated and signed by FNCCI and CNI becomes null and void, which they say will belittle the authoritative umbrella organisations. “The move, I'm afraid, will further deteriorate industrial environment,“ said FNCCI Vice President Pradeep Jung Pandey. He advised the ministry to stop the process and save the industrial sector from facing more troubles.

Signatory trade unions of the April 16 agreement, on the other hand, have asked the government to implement the deal at the earliest. “As the April 16 agreement has been endorsed by the Minimum Wage Fixation Committee and the ministry, it must be implemented at the earliest,“ said Dhirendra Kumar Singh, President of Nepal Factory Labour Union.

MoLTM officials confirmed that the ministry was planning to implement the agreement signed between eight trade unions and the ministry. “MoLTM will publish the agreement in the government gazette in a couple of days,“ said Krishnahari Pushkar, CoSpokesperson for the ministry but stopped short of commenting on brewing disputes.

Published on: 21 May 2011 | The Himalayan Times

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