The closure of Nepal´s oldest noodle manufacturing facility, which produced 200,000 packets of noodles per day, comes close on the heels of government decision to declare 2012 as Investment Year.[break]
Pratap Poudel, secretary of All Nepal Industrial Workers Association (Him Shree Foods chapter), said the factory had to be closed last Sunday after the management and the workers could not settle differences despite holding various rounds of meetings. He said the union would not allow the company to reopen until all their demands are met.
The 200-strong workforce of the company is demanding that the company adjust a part of their allowance in salaries.
Earlier this year, the company had raised the allowance of workers by Rs 1,500. Now, the workers are demanding that Rs 500 of the Rs 1,500 raise given to the workers be included in the salary. In simple words, they want Rs 500 hike in their salaries which they say could be compensated by deducting Rs 500 from monthly allowances that they are receiving. This provision benefits the workers when they are given fiscal incentives likes bonus.
The workers are also demanding that the company provide Dashain festival bonus and raise lunch, transportation and clothing allowances.
“We have raised these issues as the financial condition of the company has improved this year,” Poudel said. “The company said it wouldn´t be able to give salary for Bhadra (mid-August to mid-September) and bonus during Dashain. That´s why we decided to close the factory,” he said.
To avoid a showdown, Poudel claimed, the workers had requested the management to address their main demand before Dashain and settle remaining demands after the festival. “But the management showed indifferent attitude,” he said.
The company, on the other hand, has said the problem worsened after the workers denied to sit for talks.
“We have been asking them to come to the table and discuss the issues but they want us to accept their demands first,” Khem Bikram Rayamajhi, administrative officer of the company, said. “It looks like they want to put pressure on the management to accept all their demands in one go and not in staggered manner,” he said.
He said lack of coordination among the members of the union has also complicated the issue.
“During a meeting with the management, chairman of the agitating union had left the the talks saying he does not have the authority to take a decision on behalf of the union. He also said those with authority do not want to attend the meetings.”
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