December 26th, 2009
“Your Highness, not only this, the workers have been led by some so called leaders who are in the employment of my different factories and are staying in the quarters in the mill compounds. They have organised large processions of the workers and have been inviting leaders and other agitators from socialists unions from British India.” Sixth day after launching of Nepal’s first ever-Labour movement in March 10, 1947 General Manager of Jute Mills R. K. Sihaniya wrote an appeal to tame the movement. Mr. Sihaniya named 5 persons as the leaders of agitation including Man Mohan Adhikari & G. P. Koirala.
Historical Background
He came with his concluding demands as saying- “I requested to the Badahakim (chief administrator of the Government) to provide military guards for help for emergency purpose; but I was flatly refused that he could do nothing. The workers may take any violent action they will be guided with. Therefore I have fervently pray Your Highness to very kindly accede to my prayer by issuing necessary commands to send here suitable military help with commander to our factories within a week for the safe guard of the property.” This appeal written in English by Mr. Sihaniya to Rana Prime minister, presenting himself as ‘I have the honour to be, Your Highness’s most obedient Servant’ reflects the clear picture of then industrial relation of that time. This way Nepal begins its journey of Trade Union Movement.
Inception of trade union movement
That was the time, the mill owners entertained their monopoly in the mill with the support of “prays and orders”. As a result of monopoly and towering exploitation, the workers were on the street against factory owners. The then unionist Mr. Naina Lal Bohora recalls then situation “the mill has to run for 24 hours, but the benefit in comparison to work was negligible. One has to work in heavy pressure. The workers were waiting for the appropriate time to revolt against in the Biratnagar Jute Mill”.
The then representative of the shareholders in Biratnagar Jute Mill industrialist Late Juddha Bahadur Shrestha adds-there was no labour law. Working hour was not determined. Workers had to work for more than 12 hours, whereas the workers in the neighbouring India were enjoying 8 hours-working day. The wage rate was significantly low. The managing director was entertaining absolute rights. Management was practicing ‘hire and fire’, everything was dictatorial.”
The demands of the movement
The inception of the movement was geared up with the demands of 8 hours working day, subsidy in foods & clothes and increase in wage-rate. The movement was one step ahead as it had voiced for trade union rights. This was the first event of this type by the workers in the open space holding banners in the rule of autocratic Rana regime on March 4, 1947. This movement was the cornerstone for democratic movement and traced the path of overthrow of Rana Oligarchy[3]. The movement as such had institutionalised the two different schools of thoughts- the Communist & and the Socialist that were struggling for democracy in Nepal as well.
The dispute and the beginning of struggle
And the conflict between two schools of thought gave birth to the debate of flag and the banner of the movement. One trend was pleased to hang-up with a name and flag as of Socialist union and another was demanding name of the banner as Trade Union Congress and the red flag as of Communist Union of India. Both the tendencies had their own arguments & assumption. There was no strong political party in the country that time. The Nepali National Congress Party was formed just a month earlier and Communist Party was still not in the scenario. Therefore, Com. Man Mohan Adhikari and Mr. B. P. Koirala were in the stand with their experience in the Indian Communist Party and Indian Socialist Party respectively.
The trade union was not formed formally till this moment. Keeping in mind overwhelming support of workers to Man Mohan pressed finally to decide a mechanism having red flag. This mechanism kicked off the movement ultimately. However, almost all the activists were arrested and movement was brutally suppressed.
This suppression was wide spread even in India. A Pamphlet was distributed in March 25, 1947 emphasising the news on “gun against bread, Lathi charge against workers”, etcetera.
The story of 1947 labour movement did not adjourn here. Despite arrest of the leaders, the struggle began with new height ignoring the brutal suppression. The movement achieved some of the workers demands and it also laid the foundation of Nepali trade union movement. Nepali Congress prominent leader BP Koirala[4] opined that this movement had given tremendous momentum to the country and there was a very encouraging reaction of this. People’s Leader Madan Bhandari[5] remarks on this event as “though the autocratic Rana regime brutally suppressed the movement, but the foundation of their repressive regime was badly shaken. As a result, government declared an act on 1948 banning right to organise and even announced a National Assembly with a provision of one workers’ representative on it.”
The period of 1947 to 1951 was the dynamic periods; where series of ups & downs the country witnessed. The workers activities in this period added tremendous contribution in the establishment of ‘All Nepal Trade Union Congress’. After 1950, with the end of Rana oligarchy and establishment of multiparty system, various unions came into existence, but the whole decade was under the dominance of a high degree of uncertainty and instability. Therefore, labour movement was further weakened instead of strengthening.
In 1960, the monarch took over the power through military forces and political parties were banned. Simultaneously the trade unions were also banned with other social and political organisations. The union movement was, thus, compelled to become scattered and autonomous type of movement limited to enterprise level. There was neither any national centre nor any federation up to 1979. Although the autocratic system established Nepal Labour Organisation as its labour wing, actually a puppet union to maintain its membership position clear in ILO. Of course, NLO is an example of government created yellow unionism and pure anti-worker formation during 1960-80, which could not play a genuine role as workers’ organisation.
After a continuous struggle of 19 years in 1979, political environment could be made a little open in comparison to previous years. Half a dozen trade unions came into existence without any legal status. However, the formation of national centres or co-ordination between the unions of different sectors was not possible because of the oppressive political system. Nepal Independent Workers Union (NIWU), launched in January 1979 played a role like that of a national centre at that time.
After a decade long heavy struggle, NIWU along with Independent Transport Workers Association of Nepal, Nepal Independent Hotel Workers Union and Trekking Workers Association of Nepal (all the three developed after 1980) came into association to establish General Federation of Nepalese Trade Unions (GEFONT) in 1989. Thus under the leadership of the newly launched labour centre- GEFONT, the workers shed their blood in the popular mass movement of 1990 to attain multiparty democracy.
Trade Union Movement Today
After the success of popular mass movement, open environment for union activities has been achieved. Then next confederation Nepal Trade Union Congress (NTUC) also came into existence. In 1998, another union Democratic Confederation of Nepalese Trade Unions (DECONT) came into existence through division in NTUC.
GEFONT covers general manufacturing, food and beverage, chemical and iron, transport, garment and textile, carpet, hotel and tourism, trekking and rafting, construction as a whole, press, auto-mechanics, rickshaw-pullers, garbage cleaning, tea plantation, agriculture. It’s role to relinquish bonded agricultural workers known, as Kamaiyas is significant in post democracy periods. GEFONT is still following non-aligned policy regarding international affiliation.
“Our confederation does not have any biases or prejudices towards any international centre. However, we have our own reservations on some trends still active in the existing centres. We believe corrections may be produced through independent efforts instead of affiliation, and positive contributions can be done even independently for the integration of world trade union movements”. This statement by GEFONT 2nd National Congress clearly exhibits GEFONT stand on International Trade Union Centres.
The NTUC covers general manufacturing, carpet, garment, transport, hotel, tea plantation, financial sector, and health workers etc. In connection with the unions of white-collar workers of public enterprises, two types of trend are being observed. Unions of left-orientation are functioning independently whereas those with non-left orientation have affiliated with NTUC. The NTUC is the only affiliate of ICFTU in Nepal.
However, still non-affiliated left oriented unions are under interaction and discussion to go under GEFONT umbrella. At present, it is indicative that the GEFONT, which initially worked as blue-collar unions, has been gradually converting itself into common platform for all white and blue-collar workers of Nepal.
A small confederation DECONT claims its activities are on carpet, garment, small hotels and restaurants, brick workers, construction and wood workers, salesman and cinema hall workers etc.
A remarkable turn has been observed since 1999 in Nepal’s trade union movement. After having series of discussion and sharing the common platform in various programmes, the confederations have started to work together. Internationally as well, GEFONT has established its relationship with some of the potential GUFs and hence allowed its affiliates to be affiliated to some of the GUFs such as IFBWW & the ICEM.
It is obvious that there are no WCL affiliates in Nepal.
Union Density in Nepal
Through Trade Union Act 1993, a process of union registration and regulation started. According to this Act, unions can be formed at enterprise level with at least 25% of the workers of the enterprise. To the maximum, 4 unions can be formed in an enterprise and collective bargaining agent is decided through election in the enterprises. In this way, present labour law itself has avoided multiplicity of unions in workplace and also has guaranteed the freedom of association provided by the constitution of Nepal.
Trade union federations can be formed through the association of 50 enterprise-level unions or a minimum individual membership of 5000 workers working in the enterprises of the same nature. In informal sector, a trade union federation can be developed with 500 or more workers engaged in the same nature of work. Self-employed workers have also the right to form union. Agricultural workers have also been given the right of unionisation through an amendment in the Act in early 1999. An association of 5000 agricultural workers, covering at least 20 districts out of a total of 75 districts with a minimum of 100 members in each of the district, is necessary to form a national federation in agricultural sector.
Trade union Confederation can be registered with a minimum of 10 national federations under its umbrella where 6 federations must be representing formal sector either of 50 enterprise unions or of 5000 individual members. Thus, at the level of national centres, multiplicity has been restricted to some extent. Just after the establishment of multiparty democracy, almost a dozen of unions associated to different political parties declared themselves as confederation, but when this Act was enacted, most of them could not fulfil the requirements and thus, couldn’t have any legal existence.
We can compare the extent of union density at present as following:
| Unions |
Total Employees under survey |
Total number of union membership |
% of unionisation out of |
% of unionisation out of total unionised workers |
| DECONT |
|
6270 |
4 |
5 |
| GEFONT |
|
45404 |
26 |
39 |
| NTUC |
|
39020 |
22 |
33 |
| OTHERS |
|
10373 |
6 |
9 |
| PE’S |
|
16889 |
10 |
14 |
| Total |
173702 |
117848 |
68 |
100 |
Source Labour Offices, HMG/N
GEFONT conducted a survey throughout the country to examine union density and status of recognised trade unions in formal sector. The information supplied by the 10 labour offices of the HMG/N indicates that there are 68% workers organised under the unions (Table –1). Out of 173,702 workers unders the survey, 26% are the members of GEFONT. This number backs authenticity of sample size as well. Similarly NTUC covers 22% and DECONT shares just 4% membership. A remarkable number (6%) are the members in non-affilated unions either of the national centre. It is interesting that the workers from the public entreprises working closely with GEFONT without formal affiliation cover 10% of total unionised labour force.
If we calculate strength of National Centres based on total unionised force, GEFONT shares 39% and the NTUC shares 33%. It is intersting that recent manufacturing census prevails total number of workers working in the enterprises having more than 10 workers are 181,695.
Graph 1: Union Density in formal economy
With regards to recognised unions in enterprise level, there are 935 registered unions (Table –2). Out of total registered unions, 60% are with GEFONT. Similarly, NTUC, DECONT and others represent 26%, 4% and 10% respectively.
Table 2: Number of recognised unions
| Unions |
Total Recognised Unions |
% of Registered unions |
| GEFONT |
561 |
60 |
| NTUC |
247 |
26 |
| OTHERS |
37 |
4 |
| DECONT |
90 |
10 |
| Total |
935 |
100 |
Source Labour Offices, HMG/N
Employer’s organisation in Nepal
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is an umbrella organisation of the Nepalese private sector. It provides information, advisory, consultative, promotional and representative services to business and government and organises training / workshop / seminar on a regular basis.
The FNCCI Membership, at present, is comprised of:
The FNCCI is represented in almost all national councils / boards / committees / policy advisory bodies concerned with business and industry.
It was established in 1965 with the aim of promoting business and industry while protecting the rights and interests of business and industrial communities. (More: www.fncci.org)
The Executive Committee of the FNCCI forms various Forums / Committees focusing generally on the sectoral and other specialised activities. Nepal-China Non-Governmental Co-operation Forum and Nepal-India Economic Forum are the example of such forums and Committees like Cottage and Small Industry, Foreign Trade, Human Resources Development, Industrial Promotion, Environment and Energy Management, Internal Trade, International Relations, Membership Services Strengthening, Press and Public Relation, Productivity and Quality, Tax and Financial Policy, Tourism, Trade Fair, Transport and Transit and Women Entrepreneurship Development. There are several Commodity associations directly affiliated to the FNCCI.
Besides this, there is an organisation called FNCSI- Federation of Nepalese Cottage and Small Industries, which deals with the issues of small & cottage industries entrepreneurs.
Very recently there is a split taken place in FNCCI and new institution has emerged named as CNI or Confederation of Industries, which covers generally the Big Houses only.
Labour Law and Union’s efforts to reform Labour Law in Nepal
Nepal Factory and Factory Workers’ Act which was only labour law in pre-democracy period has become not un-contextual after the restoration democracy. The Nepali Congress Party’s government, which came into the power by the first general election 1991, neither showed any sign of tabling a new labour bill nor to reform the existing Labour Act, even in the first session of the Parliament. Therefore, GEFONT Chairperson and Parliament member Mr. Mukunda Neupane tabled, in the House of Representative on August 1991 three non-governmental bills viz. the Nepal Trade Union Bill-1992, the Nepal Industrial Relations Bill-1992 and the Labour Bill-1992. But it was suppressed in the parliament simply because it was tabled by the opposition parliamentarian. However, the government was compelled to introduce it in the winter session of the parliament and hence Labour Act –1992 replace the old Nepal Factory & Factory workers Act (More: log on www.labournepal.org).
Similarly, Trade Union Act-1993 is another important landmark. This Act has carried out some 31 Clauses to regularize trade unions in the country. This Act is directly related to the Labour Act 1992 and has mentioned provision and process of registration of trade unions in enterprise as well as national level. It also defines role and responsibility of trade unions and the process of recognition of the functioning unions.
The process of amendment had started from early 1997 in Labour Act 1992; it was adopted on 31 March 1999. This amendment has widened the paradigm of the trade unions where the entire mass of self-employed workers as well as the whole informal sector including agricultural workers can exercise the right of unionisation and form their trade unions, special provision for agricultural wage-workers, position of small federations in non-enterprise trades and occupations clarifies, clarifies the process of the renewal of trade unions and amendment has made in representation of trade unions with far-reaching effect.
Besides these, there are some Supplementary Laws in the field of labour as listed below:
1957 – Essential Services Maintenance Act 1971 – Bonus Act
1981 – Bonus Rules 1982 – Industrial Apprenticeship training Act
1986 – Foreign Employment Act 1992 – Industrial Enterprise Act
1993 – Labour regulation concerning tea estates 1994 – Privatisation Act
1995 – Children’s Act
Striking back into the history
The history of 56 years of historical trade union movement of 1947 and 52 years of institutional trade union movement has elapsed. During the the period, many governments have changed and as a system, there has been a change of three systems of different kinds.
These changes have created a new momentum with the establishment of the trade union. The labour movement was begun in 1947 and Padma Shamsher, then prime Minister announced some changes in 1948. All Nepal Trade Union Congress was founded in 1950s and the workers converted tractor into tank eventually attacking then autocratic Rana regime. Ultimately, the change of 1950s was achieved. Similarly, the strike of 1978 in Balaju and the strike of the transport worker in the east-west high way paved the way to announce referendum in 1979. And the founding of the General Federation of Nepalese Trade Unions in 1989 followed the historical peoples uprising in Nepal.
The business peoples in 1947 were running the Mills without any legal regulation. They were practising ‘hire and fire’. But, in case of labour strike, it is witnessed that workers were paid all wages during strike period. Workers at that time were dead-against this autocratic ‘hire and fire’ policy of owners. Even today, the business peoples’ are demanding the same ‘hire and fire’ as it was in 1947. They are planning a conspiracy not to pay the wage for the period of strike that was even paid during the time of autocratic Padma Shamsher regime in 1947. The business people today are just shouting the catchword “no work: no Pay”.
This statement clearly reflects what is the hottest issue in our world of work. However, recently a new turn has taken place. Both unions and employers organisations have identified seven major issues for the labour law reform, which are the issues to tackle current challenges. The points are:
Union‘s agenda Employer’s agenda
Common Issue: Labour Administration