April 2nd, 2011
March 24, 2011 was a historical day for the trade unions in Nepal. The National Trade Union Centres- GEFONT ANTUF and NTUCI have made the agreement with the Employers’ Organisations (FNCCI & CNI) for the wage increment of the workers; as per the Labour Law-2048, the minimum wage of the workers will review in every two years. This has been the highest increment in the wage of the workers and the agreement doesn’t incorporate any negative aspects. The agreement also ensured the Social Protection to all irregular workers which were one of the demands since the establishment of multi-party democratic system. But, the fact has been diverted and some ‘elements’ are active in creating many illusions in our World of Work.
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Let us observe some of them:
One, the wage has increased by NRs.50 only in the seven years period; the workers have been cheated: This is not true at all. The wage has been increased by NRs. 1,500. The wage was increased by NRs.740 and NRs. 1300 in the year 2006 and 2008 respectively. Like wise, in terms of daily wages, it was increased by NRs. 125 and NRs. 190 in those years but this time, it has been increased by NRs.226; the table below clarifies the reality of the last ten years.
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The reality between the salary increment in last 10 years |
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| year | Monthly salary (NRs.) | Increased amount(NRs.) | Daily wages(NRs.) | Increased amount(NRs.) |
| 2000 | 2116 | 316 | 74 | 11 |
| 2003 | 2560 | 444 | 90 | 16 |
| 2006 | 3300 | 740 | 125 | 35 |
| 2008 | 4600 | 1300 | 190 | 65 |
| 2011 | 6100 | 1500 | 226 | 60Rs 36 has been added from the social security |
Thus, isn’t it misleading publicity that the salary of the workers has only increased by NRs.50 in last 7 years?
Two, the employers’ contribution for social security fund will be deducted by the increased wage of the workers, so there will be nothing left for them: Please be assured that this is not true. The employers’ contribution will not be deducted by the increasedwage of the workers; it will be ratheradded 20 percent of basic salary by the employerthemselves.
Three, the agreement doesn’t allow increasing the wage of the workers for next four years: This is next completely false allegation. The minimum wage will be reviewed in every two years according to existing law. And the process has been kept as it is.
Four, The agreement has prohibited from launchinglawful strikes for four years:
No, this agreement doesn’t put any restriction on Collective Bargaining Agreement as per Article 74 of Labour law, 2048. The agreement only makes the restrictions on the illegal strikes; which is considered as a misconduct of workers and punishable acts; as such condition an enabling atmosphere would be prevailed in world of work, thus the agreement has committed for’Industrial Peace Year’ for four years. The agreement has untouched the rights enshrined in Article 76 of Labour Act, 2048 to conduct the legal strikes in connection with CBA at enterprises.
Five, No work- No pay and Hire & Fire policy is coming through this agreement?
The agreement doesn’t allow the employers to “fire” its employees indiscriminately without valid reasons. The agreement hasn’t endorsed any clause such as infamous “No Work No Pay!” There is as-it-is provision of no salary cut-off of those workers who are in legal strikes and leave. It is true that the agreement alarms workers ‘not to walkout during the duty-time’ in the agendas of any political parties or groups who sometimes have been forcing them. Such acts are considered, as per existing legislation, an indiscipline act of the workers and punishable. The agreement also incorporates bi-partite commitments; the terms related to responsibility of the employers and points of discipline related to the workers.
Six, Not ‘all unions’ were included in the agreement; why? This agreement was sealed between Employers apex bodies- the FNCCI & CNI and all authentic National Trade Union Centres- the GEFONT, NTUC-I & ANTUF. These centres have been registered in Department of Labour and they have authorised Bargaining units active in various enterprises through the country. It is true that there are various “political groupings” in the name of trade union existed besides these National Centres, which in fact neither have “proper registration” nor any membership base in the workplace. Such “groups” or the “political faction” do not represent any worker, whose existence rest only on their party affiliation. Thus, it is out-of- context if the employers and government begin to invite “any groups” as such at formal “negotiating panel”. The authority can’t endorse any “agreement” signed between such ‘parties’ & employers as of legal binding, even if it happened; whereas the collective negotiation between trade unions and its counterpart is enforceable as of law. Thus, those parties, who are making “noise” these days, were not included in negotiating panel.
Reality One; the main feature of this agreement
The trade Unions have been demanding that all the workers who have worked for more than 240 days should be given permanent status; because only permanent workers are entitled to get the facilities like sickness benefit, provident fund, paid-leave etc. However, the “irregular” workers ranging from temporary/casual/contract etc; have been denying any of such facilities. This agreement has paved way to bring all workers working at various enterprises under safety-nets, no matter whether they are working in permanent basis or in any types of ‘irregular’ terms. The long lasting demand of the workers equalling in entitlement to the all irregular workers as of permanent has been met now; isn’t that an achievement?
Reality Two; the beginning of the social security system
Social security is that facility which helps the workers when they are in trouble. They get paid when they are sick. They are given considerations when they are in awkward situations. This is the contributory system where all stake holders–the Workers, Employers and Government contribute in the same Fund. This is an internationally accepted practice lined as of ILO Convention No. 102; which provisioned benefits under following 9 key headings:
The rate of contribution for the social security fund will be more by the employers and government than by the workers. According to the agreement, 20 percent of the basic-salary will be contributed besides increased wage (NRs. 1500) by the Employers; and we are demanding the similar ration with the government as well. Workers liability will not exceed on their existing contribution- one percent, as the social security tax and the 10 percent for the provident fund. Now onwards, this will be applicable to all workers.
Reality Three; the benefit, operation & management of Social Security
After the social security law is implemented, the workers will get different facilities. Workers will get the facilities based on the amount they have contributed.
The operation and management of proposed social security fund will be done by a board with the representatives of Trade unions, Employers and government. The process has been started; the Government has already issued the regulation relating to this. Some might have a say; this is mere populist slogan- not a practical proposal! The contribution of “three party” is as “drop in ocean” compare to said-scheme! Let us have a look on the table below, which makes it all clear.
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Table 1 |
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Contribution ratio (1.1:2:2) |
Collected from one month salary (NRs.) |
Collected from the daily wages (NRs.) |
Yearly amount of one worker (NRs. Monthly based)
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Yearly amount of the one worker (NRs. daily based) |
| Workers (11 %) | 341 | 393.46 | 4,092 | 4,721.52 |
| Employers (20 %) | 620 | 715.38 | 7,440 | 8,584.50 |
| Total of Two | 961 | 1,108.83 | 11,532 | 13,305.96 |
| Government (expected 20 %) | 620 | 715.38 | 7,440 | 8,584 |
| Total | 1,581 | 1,824.21 | 18,972 | 21,890.63 |
Let’s assume, if average basic salary of a worker is NRs.3, 100 and daily wages is NRs. 119; then the yearly collection of social security fund of total 2 million workers is NRs. 37,944,000,000. Even if the government contribute NRs. ‘0’; the fund will have NRs. 23,064,000,000. If we collect contribution of three parties covering only 500,000 workers, the sum will be NRs. 5,766,000,000. If we cover 500,000 daily wage earners, the sum will be NRs. 9,486,000,000. The joint efforts of all the three parties, the fund of the social security will be very high. Consider the following table for detail understanding;
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Table 2 |
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contributors |
For 2 million workers (NRs) |
For 1 million workers |
For 0. 5 million workers (NRs) |
For 0. 5 million workers (NRs-daily wages based) |
| Worker |
8 ,184,000,000 |
4,092,000,000 |
2,046,000,000 |
2,230,760,000 |
| Employer |
14,880,000,000 |
7,044,000,000 |
3,072,000,000 |
4,292,880,000 |
| Two combined |
23 ,064,000,000 |
11,532,000,000 |
5,766,000,000 |
9,486,000,000 |
| Government |
14,880,000,000 |
7,044,000,000 |
3,072,000,000 |
4,292,880,000 |
| total |
37 ,944,000,000 |
18,972,000,000 |
9,486,000,000 |
10,945,314,000 |
Reality Four; why is this agreement being discouraged then? Be aware!
This agreement is being discouraged by some of those who have been misled and those who don’t know the reality. Some of them, who are “leading” the “campaign”, are not even real workers. They are the local thugs pampered by the employers who were against the social safety nets. Some handful bunch is the Hench-men of some political outfits fuelling the surroundings to meet their vested motives.
Otherwise the question comes- why the few workers only at two places are against the agreement, while rest of world of work in Nepal are welcoming it?
– Bishnu Rimal
(Translated by Manisha Neupane from original Nepali)
March 29, 2011
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