Trade Union leaders oppose the new labour ordinance

March 13, 2006
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Leaders of major trade unions in the country have strongly opposed the newly promulgated ordinance to amend Labour laws saying that it has curtailed a number of rights of the workers guaranteed by country’s laws and the constitution.

In a joint press statement, three major trade unions in the country – the General Federation of Nepal Trade Unions (GEFONT), Nepal Trade Union Congress (NTUC) and Democratic Confederation of National Trade Unions (DECONT) – said the royal government has imposed “most unfair, unfavourable and anti-worker” ordinance to amend existing Labour Act-1992. They claimed that the new ordinance had been promulgated by defying previous understanding reached between the trade union bodies and the Central Labour Advisory Committee (CLAC).

Talking to Nepalnews, president of Nepali Congress-affiliated NTUC, Laxman Basnet, said that they would defy the ordinance as it had been promulgated without consulting CLAC– a high level tripartite committee that has representation from trade unions, employers and the government. As per existing law, CLAC has been empowered to finalise regulations before they are enforced.

President of DECONT, Khila Nath Dahal, demand that the government withdraw the ordinance immediately. “We have appealed the workers to defy the ordinance and also requested the employers not to implement it,” he said.

Dahal further said the trade union bodies would announce strong protest programmes if the government did not listen to their appeals. The major trade unions have already informed the Labour Ministry that they will not take part in the Technical Committee that was set up to draft a new labour regulation.

According to the trade unions, the new labour law empowers the employers to “hire and fire” employees as per their wishes and majority of the workers in a firm are defined as members of management committee.

The minimum work days for a worker to become permanent have been increased from existing 240 days to 300 days. Similarly, the employers are empowered to transfer their employees to any other industry and in any sector, even if the worker doesn’t have required skills.

Trade union leaders have also opposed the provision of 15 percent foreign employment in the industries having direct foreign investments. They said this would displace the Nepali workers.

The new act also restricts strikes in the industries that are involved in the export of Nepali products. In other industries, strikes are banned unless the issue raised by trade unions is looked after by a tribunal. The review period for increase of wages has been extended from two years to three years.

The trade union leaders have also opposed the provision of ‘no work no pay’, which bars workers from being paid if they were unable to work due to strike or any other technical difficulties causing halt in the operation of the industry.

The government has stressed that the ordinance would support the industrial sector that is being hit hard by the decade-old armed conflict.

Addressing a press meet at his ministry on Monday, Minister of State for Labour and Transport, Rabindra Khanal, said the provision of “hire and fire” is not a blanket provision and would be enforced in the areas designated as “Special Economic Zones” only.

“We have adopted the policy of ‘labor flexibility’ only,” he added.