So far, trade unions would vehemently protest such proposals of the private sector. The breakthrough was achieved when Central Labor Advisory Committee (CLAC) - the apex body for improving industrial relations - met after a gap of almost three years on Friday. [break]
Some major decisions were taken in the meeting, especially the one ending seven-month long confusion over minimum wages. Disputes over the minimum wages were the major reason behind the recent spate of industrial unrest and the confusions prevailed mainly because two agreements were in existence - one that private sector signed with big three trade unions on March 24 and the other that the government signed with smaller and regional trade unions on April 16.
CLAC that has representatives from employers, trade unions and the government agreed to merge the two pacts. Now, the workers will get better pay among the two pacts and in return, trade unions promised not to call any industrial strike for four years. They also agreed to ´conditional´ hire and fire and no-work, no-pay regime.
"We agreed to pay a minimum of Rs 6,200 a month and Rs 231 a day to daily wagers," said Pashupati Murarka, vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
In response, leaders from five participating trade unions agreed to endorse the agreement that FNCCI signed with big three unions including General Federation of Nepalese Trade Unions (GEFONT), Nepal Trade Union Congress (NTUC) and All Nepal Trade Union Federation (ANTUF).
"We agreed not to go on strikes for four years and expressed openness to no-work, no-pay, hire and fire and restricting workers participation in political activities," said Ramesh Badal, secretary of GEFONT.
The CLAC meeting was chaired by Prime Minister Dr Babu Ram Bhattarai himself as the government lacks a Minister for Labor and Transport Management - the designated Chairperson of CLAC. The meeting decided to set up a Labor Relation Reforms Committee (LRRC) at the central level to oversee and take instant actions for addressing industrial disputes. The committee will be coordinated by the Director General of Department of Labor (DoL).
"We also decided to establish 10 LRRCs at the district level to make sure that industrial disputes draw timely attention of the authority and actions are taken promptly to resolve the problems," said Dr Man Bahadur BK, director general of DoL. The district-level LRRCs will be headed by the chief of Labor Office.
As for the social security package, a crucial component of the labor reforms supposed to be implemented by the government, PM Bhattarai instructed the Labor Ministry to take serious initiatives to introduce the Social Security Act. He also instructed officials concerned to finalize flexible labor law.
"This is a historic decision. It has created a win-win situation for both employers and workers," said Murarka. If trade unions respect and stick to their promises, Nepal can soon achieve much-needed labor law reforms.
Conflict still persists
However, fringe trade unions including Tarai-based unions and other two revolutionary factions of ANTUF flayed the CLAC endorsement of no-work, no-pay and hire and fire provisions.
"The agreement goes against the interest of workers. We will strongly protest the decision," said Badri Bajagain, coordinator of ANTUF- Revolutionary. Officials of another faction of ANTUF- Revolutionary led by Lal Dhoj Nembang and Tarai-based trade unions said they oppose all the decisions taken at CLAC, except for the decision on pay revision.
Related story
Chaos, united
