Nov 28, 2011

FNCCI rejects new pay scale fixed by govt

JUN 02 - The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has stated that it would not implement the new salary package for workers that the government had fixed. The FNCCI’s formal reaction comes a week after the government published the new salary structure in the Nepal Gazette.

The government had formally fixed the new pay scale for workers in the last week of May with industrial workers getting a minimum monthly salary of Rs 6,200 (basic salary of Rs 3,550
and dearness allowance of Rs 2,650) and a daily wage of Rs 231. It was done as per an agreement reached between the government and disgruntled minor trade unions.

The minor trade unions had been discontented with the salary hike agreement reached between employers and three major trade unions on May 24 as they were not made part of the negotiations. The employers and the three trade unions had signed an 11-point agreement which increased the minimum salary by Rs 1,500 (Rs 50 basic salary and dearness allowance of Rs 1,450) and set the minimum pay at Rs 6,100 and daily wage at Rs 226.

“The FNCCI has serious objections to the notice of minimum salary published in the Nepal Gazette by the government which undermines the historic agreement between employers and major trade unions,” said the FNCCI in a statement.

The FNCCI has said that it is not in a position to implement the government decision  that was done ignoring the historic agreement between the employers and the three major trade unions. It has urged the government to amend its decision and implement the agreement reached on March 24.

“The government should take the responsibilty for any disturbance that could arise in the industrial sector if that decision is not corrected in time,” added the FNCCI statement.

Employers said the new provision failed to incorporate the vital subject of marking the next four years as a period of industrial peace, no illegal strikes in factories, help of trade unions on downsizing the workforce if required and formation of a standing committee to fix workers’ salary.

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