Nepal's largest paper factory shut down

Nepal's largest paper factory shut down
ekantipur, 26-Dec-08
BINOD TRIPATHI

Workers of Bhrikuti Pulp and Paper factory have stopped work from Thursday demanding a hike in wages as per the agreement signed between the government, industrialists and trade unions.

The pact has fixed the minimum monthly salaries for unskilled, semi-skilled, skilled and highly skilled labourers at Rs. 4,600, Rs. 4,650, Rs. 4,760 and Rs. 4,950 respectively.

The factory workers spent the entire day Friday soaking in the sun. Bhrikuti, the country's largest paper factory, employs about 1,000 persons.

Bhrikuti management said that the factory was incurring a loss of Rs. 5 million per day. It has been plagued by constant labour strikes.

The trade unions representing the workers have formed a joint struggle committee to conduct their agitation. Committee coordinator Lalit Shrestha said that they had to go for a strike as the management didn't address their demands.

“Our only demand is that the wages be adjusted as per the tripartite agreement,” he added.

Ram Sharma, a member of the committee, said that they had to stop work as the management didn't respond to their repeated calls for adjusting the salaries as per the accord.

“We have not obstructed the import of raw materials or the export of finished products,” he added.

Bhrikuti management claimed that the workers went on strike despite its readiness to increase their pay.

Saroj Sharma, administrative chief of the factory, said that management had decided to implement the salary hike gradually.

“We are not in a position to increase the wages right away,” he added.

He said that a solution could be reached through a dialogue and not through agitation. The two sides have met twice this week in the presence of representatives of the Parasi Chamber of Commerce and Industry, but the talks ended inconclusively.

The Golchha Organisation took over Bhrikuti 16 years ago after the government decided to privatise it. The factory produces 70 tons of paper daily. According to Sharma, 70 percent of its output is exported to Japan and the rest consumed in Nepal and India.