The government is mulling over a concept to provide social security benefits to all workers — employed, partially employed, contract-based and daily wage earners. The government had formed a social security fund three years ago but it has not started functioning yet.

Central Labour Advisory Committee has advised the Ministry of Labour and Transport Management to include ‘all workers’ for social security benefits. The committee has proposed to the government to also include partially employed, contract-based and daily wage workers in the social security system for a better working environment,” said member of the committee Ramesh Badal.

“If we can provide benefits to all, it will improve the industrial environment,” he said, adding that strikes and protests by workers will reduce massively. “A majority of labour protests are associated with security, therefore strong social security benefits will definitely decrease labour unrest.”

The Social Security Fund established three years ago has a plan whereby there will be contribution from workers (10 per cent), employers (10 per cent) and the government (one per cent) but employers and the government have not been contributing regularly. Workers in the organised sector have contributed around Rs two billion to the fund.

The Social Security Fund has planned to provide unemployment, disability, maternity, medical, dependent and old-age benefits to workers. However, the Bill — Social Security Organisation Act — which will manage the fund has not yet been ratified.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries had agreed to contribute to the fund according to an agreement made with major trade unions on March 24, 2011. However, the number of employers contributing to the fund has been limited to a few dozens of companies.

“We are committed to contributing an amount equal to that contributed by workers but we need a clear vision about it,” said vice-president of Employers’ Council of FNCCI Manish Kumar Agrawal. According to him, employers will happily contribute to the fund once the government includes ‘No Work No Pay’ and ‘Hire and Fire’ policies in the labour law.

“We have proposed ‘No Work No Pay’ and ‘Hire and Fire’ policies in the new draft of the labour law,” said Agrawal who is also a member of Central Labour Advisory Committee. The agreement made on March 24 between trade unions and employers had included the provisions and major trade unions had promised to abide by it.

The ministry has been consulting stakeholders regarding the new labour law. “We are planning to make the new labour law friendly to the industrial sector,” said joint secretary at the ministry Binod KC. According to him, the ministry is planning to include ‘No Work No Pay’, ‘Hire and Fire’ and ‘Social Security’ policies to create a win-win situation.

The ministry does not want to further hamper the industrial environment, so it is moving ahead cautiously. “Not a single new provision will be added without consulting concerned stakeholders,” he promised.

Published on: 6 March 2012 | The Himalayan Times