Ministry endorses April 16 minimum wage agreement

Tue, May 24, 2011 12:00 AM on Others, Others,
KATHMANDU, May 24:
Ministry of Labour and Transport Management has endorsed Rs 6,200 as minimum salary unilaterally.

It is giving legitimacy to new wage agreement signed on April 16 — instead of March 24 agreement reached between three major trade unions and employers — that has fixed Rs 100 more minimum wage than the first agreement.

"The ministry is publishing new wage notice in the government gazette tomorrow for the legitimacy," said secretary of the Minimum Wage Determination Committee Nabin Pokhrel.

"We had a meeting on May 12 but it could not find any solution," he said, adding that the ministry has, thus, endorsed April 16 agreement without waiting for the disputing parties to agree.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI) were also present in the May 12 meeting.

However, the entrepreneurs' bodies and signatory trade unions want the government to endorse agreement signed by three major trade unions and umbrella organisation of private sector on March 24.

The two agreements do not have significant difference in minimum wage except that the earlier agreement had introduced social security to workers.

The March 24 agreement had hiked worker salary to Rs 6,100 from Rs 4,600 while April 16 agreement increased it Rs 100 more. There is also five rupees difference in daily wages between the two agreements.

"The earlier agreement was more scientific than the April 16 agreement," said coordinator of Employers Council — under the FNCCI — that looks after the issue from employer's side, Pashupati Murarka. "The government's decision to endorse April 16 agreement is not justifiable and is a unlateral decision," he said, adding that it does not protect the interest of employers.

The Employers Council will take decision against the government move soon. "We might even challenge it at the Court," Murarka added.

The three major trade unions – All Nepal Trade Union Federation (ANTUF), General Federation of Nepalese Trade Unions (GEFONT) and Nepal Trade Union Congress (NTUC) – also also in favour of March 24 agreement.

"The Minimum Wage Determination Committee can not introduce new wage without nullifying the earlier agreement," said president of GEFONT Bishnu Rimal.

Likewise, NTUC is also in favour of the first agreement. "We don't accept any changes in the March agreement," general secretary of NTUC Achyut Raj Pandey, said, "If changed, we will protest against it."

However, eight trade unions that signed April 16 agreement with Minister for Labour and Transport Management Top Bahadur Rayamajhi didnot want to comment on it. "Let's see what will happen," said a trade union leader from Madhesi trade union front, Indra Dev Mishra.

He had filed case against Minimum Wage Determination Committee in Supreme Court to stop minimum wage process in October claiming that it was not involved in March 24 agreement.

Source: THT