Employers, trade unions hammer out a deal, finally
KATHMANDU, MAR 25 -Putting an end to the nearly three-month-long negotiations, employers and trade unions on Thursday sealed a deal to increase the minimum salary of workers by Rs 1,500.After a series of intense negotiations, a final agreement was signed between the employers and the trade unions with both sides also pledging to mark the next four years as the ‘Industrial Peace Year’.
What makes the current negotiations different from the past is that both the sides also agreed on the workers’ social security issue. The salary issue being the major bone of contention in industrial relations, this agreement is expected to provide the much needed stability in the industrial sector.Both the sides had agreed in principle on the salary hike and contribution to the social security fund on Wednesday night. However, the same was not announced formally as there were a few things that needed to be sorted out.
As per the agreement, employers would start contributing 20 percent of their basic salary to the social security fund while the workers would contribute 11 percent once the Social Security Act comes to effect.All the three major trade unions—General Federation of Nepalese Trade Union (GEFONT), All Nepal Trade Union Federation (ANTUF) and Nepal Trade Union Congress—and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) have hailed the agreement as a ‘milestone’ that would boost productivity through cordial relations between employers and workers.
We have agreed to increase the salary because of our social responsibility and the price hike in the market, said Kush Kumar Joshi, president of the FNCCI, after signing the agreement. In reality, we are not in the condition to be able to increase the salary because of the impact of power cuts, bank interest rates and low productivity. Joshi said the resolution by the trade unions to mark the ‘Industrial Peace Year’ would help increase productivity and maintain workers’ discipline.
As per the agreement, trade unions will not organise any protest and obstruct work in the industries but strive to boost productivity in the next four years. If they illegally enforce strikes, the employers would not pay the workers for the strike period. The agreement has given an exit window to investors. If industries go into loss due to various reasons, the employers can down shutters after convincing the unions and as per trade union laws.
Salik Ram Jammarkattel, the president of ANTUF, said the agreement is “historic” as the private sector and trade unions have jointly agreed to implement the social security system.With both sides reaching an agreement, the government is expected to approve it. Ram Ji Kunwar, the acting president of Nepal Trade Union Congress (Independent), said they will urge the government to implement the new salary at the earliest.
Minimum salary up by Rs 1,500
Daily wages increased by Rs 36
Employers to contribute 20 percent in Social Security Fund
Workers to contribute 11 percent
Next four years to be ‘Industrial Peace Year’
Source: ekantipur
What makes the current negotiations different from the past is that both the sides also agreed on the workers’ social security issue. The salary issue being the major bone of contention in industrial relations, this agreement is expected to provide the much needed stability in the industrial sector.Both the sides had agreed in principle on the salary hike and contribution to the social security fund on Wednesday night. However, the same was not announced formally as there were a few things that needed to be sorted out.
As per the agreement, employers would start contributing 20 percent of their basic salary to the social security fund while the workers would contribute 11 percent once the Social Security Act comes to effect.All the three major trade unions—General Federation of Nepalese Trade Union (GEFONT), All Nepal Trade Union Federation (ANTUF) and Nepal Trade Union Congress—and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) have hailed the agreement as a ‘milestone’ that would boost productivity through cordial relations between employers and workers.
We have agreed to increase the salary because of our social responsibility and the price hike in the market, said Kush Kumar Joshi, president of the FNCCI, after signing the agreement. In reality, we are not in the condition to be able to increase the salary because of the impact of power cuts, bank interest rates and low productivity. Joshi said the resolution by the trade unions to mark the ‘Industrial Peace Year’ would help increase productivity and maintain workers’ discipline.
As per the agreement, trade unions will not organise any protest and obstruct work in the industries but strive to boost productivity in the next four years. If they illegally enforce strikes, the employers would not pay the workers for the strike period. The agreement has given an exit window to investors. If industries go into loss due to various reasons, the employers can down shutters after convincing the unions and as per trade union laws.
Salik Ram Jammarkattel, the president of ANTUF, said the agreement is “historic” as the private sector and trade unions have jointly agreed to implement the social security system.With both sides reaching an agreement, the government is expected to approve it. Ram Ji Kunwar, the acting president of Nepal Trade Union Congress (Independent), said they will urge the government to implement the new salary at the earliest.
Minimum salary up by Rs 1,500
Daily wages increased by Rs 36
Employers to contribute 20 percent in Social Security Fund
Workers to contribute 11 percent
Next four years to be ‘Industrial Peace Year’
Source: ekantipur
