Employers’ organisations and trade unions have said amending the Labour Act ‘is a must’ so as to make the law more investment friendly ahead of the Nepal Investment Year 2012-13. It has already been over 10 years since the government started planning to make changes to the act.

 

At the ‘National Labour and Employment Conference’ that started on Monday, employers said amendment to the Act was necessary to maintain cordial employer-worker relation and attract investment. While, the Nepal Investment Year would be meaningless if marked without making the Act favourable for local/foreign investment.

 

Minister for Labour and Employment Kumar Belbase said that the amendment process was taking time due to the transitional phase the country is going through. “The Act will be modified in such a way that it will ensure a pleasant labour relation for creating better industrial environment with assurance of workers’ right,” he said. The government for a long has been planning to amend the Labour Act and Trade Union Act with a focus on making workers more responsible and promoting better employer- employee relationship. 

 

As the country does not have a parliament, participants urged for modifying the act through ordinance. Two new laws — Social Security Act and Labour Commission Act — are also in the pipeline. 

 

“We are open to discuss on labour laws and come up with a concrete decision within a week,” said Pashupati Murarka, vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). He said they demanded the provisions of ‘hire and fire’ and ‘no work no pay’ for making workers responsible.

 

Although the draft amendment to the act has already included these provisions, trade unions, especially smaller ones, are reluctant to accept the condition. These provisions are strongly put forward by employers for increasing productivity and reducing workers’ involvement in politics.

Narendra Kumar Basnyat, acting president of the Confederation of Nepalese Industries, said the country was in need of sound industrial relation. “Trade unions have to be flexible so that we can also cut jobs if required.”

 

Bishnu Rimal, president of the General Federation of Nepalese Trade Unions, said employers always talk of increasing productivity, but they are never ready to pay higher salaries to workers. “The proposed amendment to the Act will also address the issues of daily-wage workers and those working in informal sector,” he said.

 

Union leaders said the government failed to implement the existing labour laws effectively, resulting in a disorganised labour sector. They said over 50 percent problems could be solved through the existing laws, if executed effectively. 

 

According to Salikram Jamarkattel, president of the All Nepal Trade Union Federation, the government has been unable to resolve the dispute between workers and employers. “The situation of labour offices outside the capital is pathetic as they can do nothing to solve labour problem,” he said.

 

The three-day labour conference held after 7 years is aimed at holding extensive consultations on reforming labour laws, enhancing labour market governance, exploring the scope of creating employment and finding a better way to utilise skills of returning migrant workers.