SANJEEV GIRI

A bill on much-awaited Special Economic Zone (SEZ) Act lacks clear-cut provisions on avoiding protest and strike in the industries established within the zone.

The clause 43 of the bill, which was endorsed by the Cabinet a few days ago, has merely stated that the workers and employees at industries in SEZ are refrained from holding activities that would make an adverse impact on the production, leaving room for diverse interpretations.

SEZ is a dedicated space for industrial promotion where industrial operations remain smooth and its trade laws differ from laws for industries located outside the zone.

The SEZ bill states that there has been tendency of strikes, but has not talked about banning protests and strikes as expected by the industrialists.

The Industrial Enterprise Bill is more specific on strike than the SEZ Bill. The Article 47 (7) of proposed Industrial Enterprises Act has clearly mentioned that the workers and employees at an industry cannot hold activities like strike and protest that can affect the factory’s output.

The industrialists have long been pointing out labour-related problems as one of key impediments blocking investment in the manufacturing sector.

Although the previous version of SEZ bill had prevented strikes inside the special zone, the government backtracked on it following criticism from the trade unions lobbies.

Usually, the anti-labour unrest measures are provisioned in laws for the industries operating inside SEZ globally. However, Industry Minister Mahesh Bahadur Basnet said that the proposed SEZ Act has allowed forging a consensus between the workers and the industrialists to prevent strikes. “The Act has been forwarded by ensuring necessary steps to discourage tendency of protests and strikes,” Basnet said.

Former industry secretary Krishna Gyawali also said that a provision in the bill was enough to discourage tendency of strikes. “If the government succeeds in implementing the provision, it will be more than enough,” added Gyawali, one of the drafters of the SEZ bill.

Industrialists have diverse views about the provision. Hari Bhakta Sharma, senior vice-president of Confederation of Nepalese Industries, said  the bill prepared by the government does not match with the concept of SEZ. “As an industrialist, we expect SEZ to be a place where matters are resolved through mutually agreed terms and conditions. We wanted the government to replicate the actual concept of SEZ,” he said, calling for an amendment to the bill for an act that is more investment-friendly.  But Shekhar Golchha, the vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that timely endorsement of SEZ act and its proper implementation is more crucial for the private sector than fretting over provisions regarding protests and strikes. “SEZ makes available several other facilities like energy and infrastructure, among others. So, once it comes into operation, SEC can address a lot of issues raised by the private sector,” Golchha said.

Anuj Agrawal, director at Vishal Group--a major business house, said that the SEZ Act should address the issues of industrialists as well as labours.

According to him, the government should consider options like coming up with a specific framework for labours working in SEZ that is different from labour act prevailing in the country.

 “The SEZ Act should boost the confidence of the investors as well as address the concerns of the workers,” Agrawal said.

Bishnu Rimal, president of General Federation of Nepalese Trade Unions (Gefont), said  the government should not create an atmosphere that curtails the right of workers in SEZ Act. He added that the concept of SEZ in Nepal contradicts the global concept.

“SEZ is a manufacturing zone for foreign investors. I don’t think the concept of SEZ in Nepal articulates the same thing,” Rimal said, adding that the workers can be flexible in SEZ for boosting investors confidence, but they do not want to see their labour rights being taken away.

Published on: 25 March 2015 | The Kathmandu Post