Ignoring the salary hike deal reached between employers and three major trade unions, the government is now formalising the agreement that it reached with minor unions.
The Ministry of Labour and Transport Management (MoLTM) will soon publish a notice in the Nepal Gazette with a provision of increasing the monthly minimum salary by Rs 1,600 social security to all workers
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The ministry on Sunday forwarded the notice to the Ministry of Law and Justice to publish it in the Nepal Gazette and give legitimacy to the provision. The new provision, which is likely to be implemented from March 15, is based on the agreement reached with minor trade unions on April 15.
Then Labour Minister Top Bahadur Rayamajhi had reached the agreement with minor trade unions affiliated to Terai-based political parties and two warring factions of Maoist-aligned All Nepal Trade Union Federation (ANTUF) to increase minimum salary by Rs 1,600 and daily wage to Rs 231 from Rs 190.
“We will come up with a provision which will be acceptable to all trade unions and employers,” said Krishna Hari Pushkar, assistant spokesperson for the ministry. He said the ministry had held consultations with employers and trade unions last Thursday on the new pay-hike provision.
On March 24, three major trade unions—General Federation of Nepalese Trade Unions (GEFONT), ANTUF and Nepal Trade Union Congress Independent (NTUCI)—had reached the 11-point deal with the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI) to increase workers salary by Rs 1,500 and daily wage by Rs 36. The agreement had also decided to mark the next four years as the period of industrial peace and contribute 11 percent and 20 percent in Social Security Fund by workers and employers, respectively.
Employers say the government should honour the pact that they reached with the three major trade unions. “We reiterated our demand to implement the 11-point agreement in a meeting at the ministry on Thursday,” said Pashupati Murarka, president of FNCCI’s Employers’ Council. He said they are hopeful that the government will not undermine the historic 11-point agreement.
The ministry is likely to receive the response from the Ministry of Law and Justise by Wednesday and move ahead with the work to publish the notice in the Nepal Gazette. According to minor trade unions, the ministry in the new provision will also include social security as a major issue.
Lal Dhwoj Nembang, coordinator of ANTUF close to UCPN-Maoist vice-chairman Baburam Bhattarai, said the new provision will have the provision of social security fund in which employers will contribute 20 percent and workers will contribute 11 percent of their basic salary. “As the no work no pay and hire and fire provision are against the Labour Act, these will be removed in the new provision,” he added.
However, Pushkar did not comment over these provisions and said the detail will be made public soon.
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