'Pact can't be implemented'

KATHMANDU, April 17: Employers and major trade unions have said the agreement on pay hike reached between five trade unions and the government can´t be implemented as the pact was signed without consulting them.



“There must be an agreement between employers and trade unions to legitimize the deal. But agreement on Friday was signed between the government and the trade unions only,” Pradeep Jung Pandey, newly elected vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) told Republica on Saturday.[break]



Pandey, who was also the chief FNCCI negotiator on labor issues, said the government-trade union pact can not be implemented as it is just assurance given by the labor ministry to some trade unions.



Five agitating trade unions, who had been staging protests in major industrial hubs for the last three weeks challenging the deal signed last month between employers´ association and major trade unions, had agreed to withdraw a case filed against the minimum wage fixation committee and their strike and after Labor Minister Top Bahadur Rayamajhi agreed to raise the workers´ basic salary by Rs 500 and allowance by Rs 1100 to make total remuneration Rs 6200 per month. Daily wage was also raised to Rs 231.



Employers´ associations and major trade unions, including CPN (UML)-affiliated General Federation of Nepalese Trade Unions (GFONT), UCPN (Maoist)- affiliated All Nepal Trade Unions Federation (ANTUF) and Nepali Congress-affiliated Nepal Trade Union Congress (Independent) had signed the pact that also incorporated social security schemes for workers and announced “industrial peace” for four years in an effort to establish business friendly environment.



Following the agreement, a faction of Maoist trade union and Madhesh-based trade unions held protests in Sunsari-Morang and Patlaiya-Birgunj corridor claming that the pact had failed to address workers´ issues.



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- Madhesh-based trade unions -- Nepal Inclusive Trade Union Federation, Independent Democratic Trade Union Federation Nepal (IDTUFN) and Nepal Progressive Trade Union Federation -- were on protest.



“Employers and big trade unions have nothing to do with the agreement as they are not a signatory of the pact,” said Ramesh Badal, leader of GFONT. He also claimed that the agreement was signed to befool the signatory trade unions as it is not signed by officials of labor ministry.



As per the existing Labor Law, Minimum Wage Fixation Committee representing the government, major trade unions and the employers must be constituted to review the remuneration of workers.



The committee has been on limbo for last three months after the Supreme Court issued an order on January 20 to halt all works of the committee.



After the SC closed the door for the review of workers´ remuneration, FNCCI, Confederation of Nepalese Industries (CNI) and big trade unions had reached an agreement on March 24 to increase basic salary and dearness allowance by Rs 50 and Rs 1450 to Rs 3100 and Rs 3000 respectively to raise salary from Rs 4600 to Rs 6100 per month. Similarly, daily wage was also increased to Rs 226 from 190.

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