“We will enforce the new wage structure within a few days. All trade unions and employers must comply with it,” said Rayamajhi.[break]
However, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) - the apex business body in the country -- have condemned the agreement that Rayamajhi signed without due consultations with the private sector. “The new wage structure is higher than what we had negotiated with major trade unions. There is no way we would implement it because it was announced by the minister unilaterally,” said Pashupati Murarka, vice president of FNCCI´s Employers´ Council.
Representatives of three major trade unions -- All Nepal Trade Union Federation (ANTUF), Nepal Trade Union Congress (NTUC) and General Federation of Nepalese Trade Unions (GEONT) -- too have voiced differences with Minister Rayamajhi´s decision.
However, Rayamajhi claimed that he decided on the new wage structure based on the authority that prime minister delegated to him. “Hence FNCCI and other employers must comply with the new wage structure,” he argued.
Responding to a query on how the government can enforce wage on its own, flouting international norms of tripartite dialogue, Minister Rayamajhi said the Ministry was soon taking initiative to forge consensus among all trade unions and employers on the new wage structure.
“We are soon holding discussions with FNCCI representatives,” Rayamajhi said, adding, “We had no option but to work out new wage structure in this manner, as the Minimum Wage Fixation Committee government some six months ago couldn´t become functional due to the Supreme Court´s verdict.”
Rayamajhi had unilaterally hiked minimum wage to Rs 6,200 a month or Rs 231 a day on April 16, after two splinter factions of ANTUF and trade unions of three Madhesi parties brought industrial activities along Sunsari-Morang and Bara-Pathlaiya corridors to a grinding halt. They had pressed the government to fix minimum wage rate higher than what the three major trade unions and employers had agreed.
While defending the new wage structure, Minister Rayamajhi even claimed that it was worked out by holding consultations with employers´ associations.
Interestingly, the big three trade unions have threatened FNCCI not to accept the minister´s agreement. The five disgruntled trade unions on the other hand have warned of launching industrial strike if the FNCCI did not implement new wage structure as agreed by Minister Rayamajhi.
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