September 20th, 2010
This morning we learn by opening remarks by Steen and Bjarne that the social dumping is a term with a negative connotation that is used to describe a temporary or transitory movement of workers; whereby employers use workers from one country or area in another country or area where the cost of labour is usually more expensive, in order to saving money and potentially increasing profit.
We saw how Danish company is exploiting Polish workers at a picket line of Bronderscev; the pay Danish workers usually are getting per hour not less than Danish Kr 160- the striking Polish workers are just getting Kr 50 only! As such, the precarious jobs and under pay workers of every country against decent employment and huge profit engulfed by employers created from the labour of ‘poor’ workers are the living example.
Download pdf file>>My presentation at3F seminar
Good morning Comrades;
Good morning every body!
This morning some of the comrades asked me where exactly Nepal locates? Before answering you, let me begin with a question, how do you recognise Nepal? What will be your answer?
Perhaps some of you may say it is a country of Gurkhas; which often defamed as mercenary soldiers! Perhaps some argued- it is country of Buddha; and may be some of you counter-argued as saying No-No; it’s a fertile land for Rebellion recalling decade long deadly Maoist insurgency!
I have a simple say- it’s a Shangri-La! My country, my pride is diversity in nature-creature and our human life!
Politically, Nepal is at an eve of great transformation. We Nepalis are in a process of demystifying the fact why we have much inequality! Why Nepal is one of the most unequal societies in Asia?!
Further, we are in a process of deconstructing our old society. From the very first meeting of 601 member most inclusive Constituent Assembly declared an end of 240 year old ruling Shah dynasty, which ultimately abolished over 1200 years old tradition of Monarchy and established First Republic of 21st century in the world.
People, with high aspiration, are collectively in a process to set up a federal democratic republic replacing existing central-petal state structure. We are in due process to managing political transition that is lingering-on since 2006 April Uprising.
How is Nepali Society then? Many of us perhaps have quick answer that it is feudal or least developed economy! I would say it is a post-peasant society. No way is Nepal a FEUDAL society; the Capitalism has become here an organising principle of the political economy. However, it has not transformed into an industrial society. The evolutionary trajectory that had been postulated on the basis of change processes in Europe in the 19th and early 20th century has not materialised.
The huge mass, driven out from agriculture in Nepal, has not become an industrial workforce. Neither have they been able to qualify themselves for steady employment in one of the other sectors of the economy. The class structure is a mixture of both old and new. Some of the features of the traditional classes are still in place but the visible opposite class is the Capitalist & the Working classes, which are also internally segmented.
Nepal is a small country; however, it has a total Population of 26.43 millions. As of 2007 projection Female number is 13.19 millions and the Male is 13.24 millions. Nepal’s current GDP growth rate is 3.53%; Per capita income is US$ 562. The Literacy rate above 5 years is 63%; where as literacy rate of persons above 15 years is 55.6%.
The diversity is the significant parts of our population. Nepal has 4 human races, with 101plus caste & ethnic groups; who speak 92plus languages & dialogues and they practice 7 religions, and enjoying innumerable cultures & tradition.
Some major Caste and Ethnic groups (above 1% of the population)
Chhetri 15.80%, Bahun 12.74%, Magar 7.14%
Tharu 6.75%, Tamang 5.64%, Newar 5.48%; Muslim 4.28%
Kaami 3.94%; Yadav 3.94% Rai 2.79%; Gurung 2.39%;
Damai 1.72%; Limbu 1.58%, Thakuri 1.47%;
Sarki 1.40%, Teli 1.43%, Chamar 1.19% Koiri 1.11%
Nepali’s life style has its own feature. Considering recent statistic of Nepal Labour force Survey; about 89.2 % households have their own house whereas 9.2 % live in rented room. Majority (68.%) of the households used firewood as fuel for cooking; whereas 12.3 % households used LP gas. Electricity is the main energy source for lighting only for half (56.1 %) of the households; around one-third households (33%) still use kerosene/oil/gas as the main fuel for lighting. About 45% of households used piped water whereas 39.10% of household use hand-pump/boring water. Only 25.40% of households have a modern flushing toilet where as 23.40% have relied on an ordinary toilet. 57.90% households has radio while 33.20% has a television set; around 28.30% has a mobile phone, 9.80% has a fixed line telephone and only 3.10% households has a computer. 78.4 % of all households in the country have agriculture land. Of the 43.8% households, at least one left home for job out of their native place, whereas 29.1% of all households, at least one left home to join labour market in abroad In an average a family earns remittance annually 80 thousands from aboard and 29 thousands from home.
With such social reality, I will try to relate our efforts to address today’s issues- the Social Dumping!
This morning we learn by opening remarks by Steen and Bjarne that the social dumping is a term with a negative connotation that is used to describe a temporary or transitory movement of workers; whereby employers use workers from one country or area in another country or area where the cost of labour is usually more expensive, in order to saving money and potentially increasing profit.
We saw how Danish company is exploiting Polish workers at a picket line of Bronderscev; the pay Danish workers usually are getting per hour not less than Danish Kr 160- the striking Polish workers are just getting Kr 50 only! As such, the precarious jobs and under pay workers of every country against decent employment and huge profit engulfed by employers created from the labour of ‘poor’ workers are the living example.
I will not go in detail “what is and what is not” the social dumping. We all know that-
Let us peep inside Nepal again, how is her labour force!
Total Labour force in Nepal is 11779 thousands (women 53%) with an employment to population ratio of 81.7%. People engage in Agriculture 73.9%; where as in non-agriculture 26.1%. In the light of production process, the labour sector is divided in terms of ‘organised and unorganised’, ‘formal and informal’ and ‘intra-state and inter-state”. In terms of nature, labour is basically divided as ‘regular’ such as employment in long-term contract and ‘irregular ‘ such as casual, outsourced, home based, time-rated & piece-rated. A sizeable numbers of self-employed are in world of work in Nepal. There is dangerous mismatch between supply-side & demand-side of labour, which is creating a situation of “Scarcity amidst plenty” of working people.
Employers are capturing this “scenario” in this favour cleverly. Take an example- the paid-employees, as a percentage of total employed is only16.9 percent. Of those in employment, only 46% receive regular/monthly payment. The rest are peace-rated, weekly and daily waged workers. Still every 24 in 100 workers are paid in kind instead of cash. Except permanent workers, others do not get paid leave, provident fund, gratuity and other fringe benefits including education, health and housing. Leaving Nepali labour market largely informal; NO Formal Employment Contract of any type between bosses & the workers are exercised. Most of the issues of labour contention in my country are, thus juggling around whether or not issuing appointment letter, whether to hire on a permanent or temporary basis, no work, no pay, hire and fire.
The average monthly income of workers is NPR 5117(Female 3402 only), however, majority of workers are still deprived of the minimum wage-rate (NPR 190 daily) fixed by the government.
The average hours per week in main job 38.7%; Labour underutilisation rate in Nepal is 30.0%. It is in real sense the unemployment rate. Labour underutilisation is a combination of complete Unemployment (2.1%); Time-related underemployment (6.7%), inadequate earnings (8.1%) and Skill mismatch (13.2%). Recent projection of new job seekers in Nepali world of work is 400 thousands (Economic survey of Ministry of Finance) and in this period 172,000 have lost their previous employment further adding numbers in the hordes of unemployed.
It pushed to join a high number of Nepali unemployed in global labour market (the number is around 700 each day). Sadly to say on an average 1% among them are died in foreign workplace due to unfavourable working condition (horrific number- the family member receives each day 7 dead bodies!). Pity to note that children of 5-14 age group still labours in an employment rate of 0.7%.
Nepalis @ Aboard (other than India)
Malaysia 569,667, Qatar 481,748, Saudi Arabia 341,325
UAE 124,515, Bahrain 22,564; Kuwait 20,170; Oman 11,478
South Korea 6,352; Hong Kong 4,379; Others 54,120
Total 17, 26,318
To Change this feature of Nepali world of work, unions are active and making policy intervention. It is in two forms, in processes as well as in content:
Let me brief you what are the process? We have created FOUR different platforms to cope with the challenges.
First, we debate in union forum. The union Platform are in various levels. ITUC affiliates have created their own- the ITUC-NAC, whereas all existing unions are accommodated in another BIGGER platform known as JTUCC (Joint Trade Union Coordination Centre).
The unions entertained all issues in the platform. Generally all of the common issues are discussed at JTUCC Board; some of the issues more close with ITUC politics are decided at ITUC-NAC secretariat as well.
After debating on issues, the decision is made on consensus basis. In the issues where we fail to reach in consensus, that is dropped for the time being. Such issue remains as an issue of union concerned which put forth the proposal in the platform.
Second, Unions present decided issues in “bilateral forum”. The bilateral forum is an informal forum composed with Employers organisations and the trade unions. In such forums both parties interact and put forward their own position collectively. Unions stick upon “common” stand; they don’t exhibit any difference there. The deferral view if any arises during the course, the unions bring it back to union forum (JTUCCC or what so ever) for further discussion.
The agreed points to be presented for formalisation in tripartite forum; and disagreed issues- left for further debate & discussion.
Third, issues dealing at Tripartite Forum. According to Labour Law Central Labour Advisory Committee (CLAC) is the only tripartite forum. It is composed with Government representatives, union representatives, representatives from employer’s organisations and the labour experts as per 2:1:1 ratio.
The Minister for Labour & transport management chairs this forum. In order to formalise agreed points, the two parties (Unions + Employers organisations) generally table in the meeting. Once it is signed- it is considered as a ‘Law’.
The disagreed points further need debate and interaction. Generally three steps such as letting the issues for further debate, letting union to go for Labour Action as per law and Government intervention if necessary are taken in this regard.
Fourth, it is a very sensitive platform, which has complete political dimension. The unions make lobby with the Political parties and the Constituent Assembly (CA) to get through their issues. For example, now Nepal is debating to drafting up of new statute- thus, all political efforts are more or less concentrated towards this direction. The unions debate on what should or should not incorporate at new constitution.
For example, the JTUCC has prepared common position of unions in this regard, which is submitted to CA. The way to intervention is- first lobby at CA thematic committees (there are 11 thematic committees, which has prepared draft report with concept notes), through CA members from Trade Union background. Other trade union friendly CA members from like-mined political parties lend their solidarity and support in request. From the “field” during CA member- general public interaction periods as well, the unions recommend their members to raise voice on union agendas.
Further, lobby with political parties is the continuous job. Such lobby is not only limited to union agendas for Constitution, further we raised issues such as ratification of ILO Core Conventions, introduction of new laws & schemes etc.
Unions are using mass communication as well for the purpose. Since September 2005, GEFONT is running weekly Radio programme that covers 2/3rd Nepal through 16 FM stations. Since October 2007, it is running weekly TV programme which covers entire Nepal through State- owned TV station. Since September of this year, GEFONT sponsored labour news is broadcasting from a Private TV news channel, twice every day. The JTUCC has also initiated similar weekly Radio and TV programme from this September.
An occasional interaction with media persons is regular in order to make them aware on labour issues.
There are multi-fold Contents as well. As mentioned earlier, the trade union forum entertains all issues such as Political, Issues of union-to-union competition-debate-rivalry- and even violent act against the members.
All issue related to world of work are the major areas of discussion such as -wage and work place democracy, labour & industrial policy including labour law reform. In this regard 4 sets of work is continued such as- amendment of existing Labour Law for labour market flexibility; introduction of Social Security Act to guarantee the social protection to the working people including establishment of much talked Social Security Fund; amendment in Trade Union Act to match unionism in changed context and to make reliable mechanism for social dialogue; and establishment of National Labour Commission for fair & quick delivery of justice.
Any emerging issues such as foreign employment, HIV Aids, OSH etc will be considered as the peripheral & issues of importance for the time being.
In Political level- the Trade Union has proposed workers issues related to Right-Protection-Representation and constitutional Commission in forthcoming new constitution. Having limited time, I will not able to explain you these issues now. Let me conclude quickly projecting list of these issues, which I have enclosed in my narrative presentation.
Thank you!
(Presentation at International seminar of 3F Denmark Smalandshavet, September 15, 2010)