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Labor unrest leads capital flight: labor minister

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KATHMANDU: Minister for Labor and Transport Management Lekh Raj Bhatta, said ongoing labor unrest in the industrial sector would erode the industrial climate and lead to capital flight. Lekhak term the ongoing protest ‘an illegal’ indication labor would stir in the major industries. He also announced that the government is further slashing transportation fares by 7 to 10 percent. [break]



“Jumping into abrupt protest-bringing industries to a complete closure giving unnecessary ultimatums to the management is illegal. I am against such a trend which prompts capital flight and strains the investment environment,’ said Bhatta, senior leader of the Maoist party, whose trade union is part of the constituent of agitating trade unions in the current industrial stir.



Talking to the press at the Reporters Club on Sunday, he urged workers to follow legal ways and industrial discipline while putting forward their demands.



More than two dozen major industries along the Birgunj – Simara corridor have been closed for the last few days, as different trade unions are pressing demands to hike remuneration by Rs 1,300 per month to all skilled levels; a demand entrepreneurs are denying.



He informed that the ministry has taken the initiative to hold tripartite talks between the government official, trade union leaders, and the Federation of Nepalese Chambers of Commerce and Industry to seek an amicable solution to this standoff.



Government to slash fares by 7-10 percent



Meanwhile, Bhatta also informed the press that the government is further slashing transportation fares in tune with the sliding price of petroleum products in the market.



“We are slashing transportation fares by 7-10 percent by Monday,” said Bhatta. However, transport entrepreneurs said they wouldn’t abide by the government decision to cut fares if new rates were fixed without consulting them.



“The decision to slash fares without consulting with us will not be acceptable,” Dinesh Bhandari, president of the Nepal Transport Entrepreneurs’ National Federation told myrepublica.com.



Though the government decided to slash public transport fares by six percent on diesel vehicles and seven percent on those running on petrol during the first week of this month, commuters have been complaining that transport entrepreneurs are collecting as per old rates.

 

Amid growing criticism of the government for not enforcing the decision, the minister vowed to take stringent action towards those disobeying the government’s decision.

 

“We have formed a committee to monitor the implementation of the government’s fixed fares. We have initiated action to those who were found not following new rates,” added Bhatta.



Sharad Chandra Poudel, director general of the Department of Transport Management, said the department has initiated action against about 30 individuals for flouting the government’s decision to cut fares.



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