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Labor minister agrees on higher minimum wage

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KATHMANDU, April 16: Agitating factions of Maoist trade union and Madhesh-based trade unions on Friday agreed to withdraw their strike after Labor Minister Top Bahadur Rayamajhi agreed to raise minimum wage of workers by Rs 1,600 a month and upscale wage of daily wage earner to Rs 231 a day.



The rates agreed by the Minister, however, are higher than what Federation of Nepalese Chambers of Commerce and Industry (FNCCI) agreed at during its negotiations with the big three trade unions. [break]



“It is difficult to say how the private sector will react, but the Minister on the day accepted the agitating unions´ demand to end the labor stir,” said an official at Ministry of Labor and Transport Management.



Two factions of Maoist trade union All Nepal Trade Union Federation (ANTUF) led by Badri Bagajain and Lal Dhwaj Nembang, and three Madhesh-based trade unions had been on a strike since more than a month ago, closing industries in Birgunj-Pathlaiya and Sunsari-Morang industrial corridors.



They had refused to accept the pact that FNCCI signed with ANTUF (establishment faction), General Federation of Nepalese Trade Unions (GEFONT) and Nepal Trade Union Congress (NTUC) on March 24, arguing that the raise agreed did not meet with their expectations.



Madhesh-based trade unions -- Nepal Inclusive Trade Union Federation, Independent Democratic Trade Union Federation Nepal (IDTUFN) and Nepal Progressive Trade Union Federation -- too had demanded that they be invited to the negotiation table.



Following the differences, FNCCI had knocked the doors of the government to address the confusion.



Apart from higher wage hike, Minister Rayamajhi also agreed on agitating trade unions demand that they be paid wages for the duration when they shut down the industries. “The wage for that duration will be worked out as per mutual understanding,” reads the agreement that Rayamajhi signed with leaders of five trade unions.



“We are happy with the promised increment because it has raised our basic salary by Rs 500 a month, something which had not happened since three years,” said Krishna Pokharel of IDTUFN.



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