The trade unions, including two factions of the Maoist-affiliated All Nepal Trade Union Federation (ANTUF), led by Badri Bajagain and Lal Dhoj Nembang had launched protests since July 22 after the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) issued a circular to employers to stick to the wage structure it agreed with big three trade unions four months ago.[break]
As per the pact signed on March 24, FNCCI had agreed to fix the minimum wage at Rs 226 a day and Rs 6,100 a month. However, after Madhes-based parties went on a strike, disregarding the pact signed in their absence, the government had agreed to fix minimum daily wage at Rs 231 and Rs 6,200 a month.
FNCCI had asked the employers not to enforce government-set salary, which was published in gazette on May 24, mainly as it had decided on the new wage structure without private sector´s involvement and consent.
“We are glad that the local employers paid attention to our grievances, despite resistance of the FNCCI,” Bipin Kumar Karna, secretary of Madhesi Trade Union Forum (MTUF).
Friday´s agreement, however, has disclosed a vertical split in the private sector. FNCCI top officials continued to reiterate that they do not recognize the pay hike the government enforced, as it blatantly went against the fundamental spirit of “tri-partite” consensus needed for taking such decisions.
However, employers at the local level said that they had no option but to agree to workers´ demand as they saw no signs of FNCCI top brass and government showing seriousness toward addressing the problems they faced due to the existing of “dual pay structure”.
“It was affecting industrial operations and hurting industrial environment as a whole. We could not afford to bear its brunt for long,” said an employer.
Workers too said that existence of dual salary was confusing and de-motivating them. “Some of the industries were already paying their workers as the government said, while others were following the remuneration package that FNCCI agreed with three major trade unions,” said Karna.
FNCCI uninformed
Interestingly, senior FNCCI officials were unaware of the agreement that unfolded in Morang-Sunsari corridor, even though it has exerted pressure on the employers in other parts of the country to agree to the government-enforced rate.
Pashupathi Murarka, chairman of Employers Council at FNCCI said that the employers will not bow down to the fringe trade unions demand.
“We will not accept the wage structure imposed on us by the government. More so, because the Supreme Court has presently stayed it after a case was filed against the decision,” he told Republica.
Irrespective of what was agreed in Biratnagar, Lal Dhoj Nembang, coordinator of agitating ANTUF said that the fringe trade unions will not call of the protest until the FNCCI formally accepts the government-fixed pay rise.
The new wage structure should come into implementation in all the industries across the country, he stressed.
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