Officials of the Ministry of Industry (MoI) say the Bill allows SEZ Authority to set separate minimum wage for employees working in industries in SEZs.
They say the minimum wage for SEZ workers will not be lower than minimum wage fixed for other workers.
“The law has tried to treat employees in a special work to make SEZ more important,” Yam Kumari Khatiwada, spokesperson of Ministry of Industry, said.
SEZ targets export-oriented industries. The government has announced various incentives like tax waiver and discount on leasing fee to encourage industries to set up their manufacturing plants in SEZ.
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Likewise, SEZ Authority, a regulatory agency for SEZ operation, will also monitor recruitment of employees. According to the bill, industries will be allowed to bring foreign workers only if skilled manpower is not available in the local job market.
Industries and employees will sign a contract which clearly states pay and benefits as well as safeguard measures, working hours, leaves, medical facility and other welfare packages, according to the Bill.
Officials say Article 43 of the bill bars workers from holding any activities that affects the industry and their production.
“As employees hired by industries in SEZ enjoy special privileges, they are expected to be responsible in ensuring better industrial environment,” said Khatiwada. “The provision clearly means that employees are not allowed to launch protests.”
The article, however, does not have any proviso clause.
But industrialists are not happy with the provision which clearly does not say ‘employees are prohibited to launch protest programs in SEZ’. Pashupati Murarka, officiating president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said the Bill does not address many of their demands including ban to start protest or strike within SEZ.
Industrial sector has suffered huge loss due to strikes and protest launched by different trade unions. Such protests are often motivated by political interests. Such protest is one of the reasons behind shrinking contribution of industrial sector to Gross Domestic Production (GDP).
Contribution of industrial sector has dropped to 6 percent from 16 percent over the past decade.
Meanwhile, Industrial Enterprise Bill, which has also been approved by the cabinet, clearly states that employees cannot hold protest programs in the industries.
