In the latest budget, the government has endorsed the idea of labour cooperatives only for the informal sector while in the last budget such cooperatives were allowed by workers in the formal sector only. What is intriguing now is whether cooperatives by formal sector workers have the sanction of the government or not. [break]
MoLTM had encouraged workers in different enterprises in Pokhara and Nepalgunj Industrial Estates to set up labor cooperatives based on last budget´s guidelines. It had even asked industrial estates to provide office space and other facilities to turn these cooperatives into big success stories.
Workers in the two industrial estates are in the process of registering their cooperatives. And, MoLTM had even drafted bylaws to govern labor cooperatives so that similar programs could be expanded in other industrial areas as well.
“We were planning to enact the bylaws incorporating feedbacks from the Department of Cooperatives and implement programs like child care center, fair price shop, canteen, health center, deposit and credit schemes and information and communication center through the cooperatives,” said Amal Kiran Dhakal, a joint secretary at MoLTM.
Likewise, implementation of skills development and capacity building programs like repair and maintenance of technical machines too were incorporated in the bylaws.
However, the government in the new budget maintained an intriguing silence on the continuity of the program. Instead, it promised to provide special grants and facilities to cooperatives made by workers in the informal sector.
“This has left us in a dilemma. The workers in Pokhara and Nepalgunj have informed they will approach us once they get their cooperatives registered. But we do not know how to respond to them,” said Dhakal.
Officials at the ministry expressed surprise over sudden dropping of the program, mainly as officials at National Planning Commission and the Ministry of Finance had lauded the ground works done by MoLTM.
“The idea of labor cooperatives was good for it aimed to support workers, enhance their capacity, enable them run different business schemes and help improve their living standards,” Purna Chandra Bhattarai, spokesperson of MoLTM told Republica. “But it is sad that the government still did not continue it,” he added.
Trade union officials, meanwhile, vented ire against the government for not continuing the program that promised to serve the interests of the formal sector workers.
“Why had the government announced the program in the first place? And, why has it been dropped now? We want answers to these questions,” said Umesh Upadhya, general secretary of General Federation of Nepalese Trade Unions (GEFONT).
Related story
DoC sets a number of conditions for cooperatives seeking to mer...
