Industrial peace

When we first heard that the trade unions and industrialists had signed an agreement pledging industrial peace and the labor unions had agreed to shun strikes for at least the next four years, our first reaction was: It’s too good to be true. We confess that we, like many others, thought Nepal´s industrialists and labor unions were locked in mutually destructive conflict that would cripple the manufacturing sector for many, many years to come. We have been proved wrong, at least for now. And we want to congratulate both the business community and the labor unions.



We also hope that both sides will abide by the agreement and really ensure industrial peace. Signing an agreement is easy; upholding it is difficult.



The agreement signed by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the business community´s biggest representative body, and the three big trade unions-- All Nepal Trade Union Federation, Nepal Trade Union Congress and the General Federation of Nepalese Trade Unions-- has many other positive elements to it. The trade unions and FNCCI have reached a mutual agreement on raising the basic remuneration of workers and building a safety net for the vulnerable work force.



By agreeing to set up a central-level mechanism-- and to replicate it in the districts if necessary-- the two sides have demonstrated sincerity towards implementing the agreement. What is truly inspiring is the spirit that underpins the deal—a spirit arising out of the realization by both sides that raising industrial productivity, building a safety net for workers and maintaining industrial peace are all intricately linked. So long as industrial productivity does not rise, raising wages through collective bargaining alone becomes unsustainable in the longer term. Likewise, without decent wages and a social safety net for workers, improving productivity becomes impossible.



If this spirit is sustained and industrialists and unions learn to work with each other for their interlocking interests, it will change the face of industry in Nepal. The agreement could not have come at a better time. Manufacturing activities have rapidly shifted to our region--mainly to China and India. And both these countries are facing increasing pressure over the supply of labor and demands for higher wages. We have an advantage of geographical proximity, especially with regard to India. So if industrial relationships in Nepal are truly on the mend and we also manage to address the problem of chronic power shortage, there is no reason why the manufacturing sector will not pick up or why we can´t attract foreign investments to this sector.



Progress on one front often leads to progress in another. If we manage to foster healthy industrial relations, it will gradually encourage us--even inspire us-- to resolve our power supply woes. It´s in this sense that the agreement between the labor unions and FNCCI has positive and long-term implications for the whole economy.

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Let’s live in peace and embrace diversity