Only two-third Nepalis fully employed: Labour Survey 2008

Only two-third Nepalis fully employed: Labour Survey 2008
Nepalnews, 11-Aug-09

Nepal Labour Force Survey 2008 has shown only two-thirds of Nepal's work force was fully employed with work available for 40 hours or more per week in 2008.

Of the remaining one-third, 19.5 percent worked between 20 and 39 hours a week, 11.6 percent worked less than 20 hours a week, while 2.1 percent didn't work at all.

The report of the survey, conducted by Central Bureau of Statistics with support from United Nations Development Programme (UNDP) and International Labour Organisation (ILO) between January and December 2008 on a representative sample of 16,000 households across the country, was released Monday.

For the purpose of the survey, all Nepalis aged 15 years or more seeking employment, available for work or employed were included in the 'work force.'

According to the report, only 16.9 percent of the employed population worked on a salary or wage, while the remaining 83.4 percent were self-employed.

Likewise, 73.9 percent of the people worked in agricultural sector, while only 26.1 were employed in non-agricultural sector.

Although agriculture is the major contributor to the nation's Gross Domestic Product (GDP) and the highest employer, agriculture in Nepal often means subsistence farming with seasonal work and under-utilisation of the labour force.

Meanwhile, the survey has shown an improvement in the literacy status and the lifestyle of Nepalis compared to the previous years.

The literacy rate has increased to 63 percent, 14 percent more than the rate shown in the previous labour survey conducted a decade ago.

Likewise, the survey also shows:
* 89.2 percent of the population live in their own homes, while 9.2 percent live in rented apartments.
* 68.4 percent use firewood as the main fuel for cooking and 12.3 percent use Liquefied Petroleum Gas (LPG).
* 56 percent of the households use electricity to light their homes, while 33 percent still depend on kerosene lit lamps.
* 45 percent of the population uses tap water, while 39 percent use hand pumps or boring wells.
* 58 percent households own a radio set and 33 percent owns a TV set.
* 9.8 percent households have a landline telephone and 28.3 percent of the population use mobile phones.
* 3.1 percent households have a computer.
* 78.4 percent of the households have arable land.
* 29.1 percent households have at least one person working abroad.

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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.

Strike shuts down Hetauda factories

Strike shuts down Hetauda factories
ekantipur, 28-Nov-08
Pratap Bista

Workers affiliated to Maoist-affiliated All Nepal Trade Union Federation (ANTUF) shut down about five dozen industries located in and outside the Hetauda industrial area on Friday. They took the move, blaming entrepreneurs for not paying salaries as per the directives of the government. Two months ago, the government had directed industries to pay each unskilled worker at least Rs. 4,600 every month. Entrepreneurs say they are in no position to pay this much.

According to Madhav Adhikari, president of Hetauda Chamber of Commerce and Industry (HCCI), the workers have closed down 55 industries. Secretary of Nepal Industrial Workers' Union (NIWU) Krishna Raj Koirala said they were forced to shut down the industries as entrepreneurs didn't make government-fixed payments. The NIWU is affiliated to ANTUF.

Workers began closing down the industries from early morning after the three-day ultimatum given to pressure the industries to hike salaries expired on Thursday.

Eight industries belonging to multinational companies (MNCs) were among those shut. The Colgate Palmolive, whose ownership was transferred to Nepali entrepreneurs, has remained closed for eight days.

Ratna Hari Gautam, manager of Hetauda Industrial Area Management Limited, said closure of the nation's largest industrial zone will result in a daily loss of Rs 6.6 million.

The workers, however, let United Brewery, Superlemikotes, Makwana Biscuit and Nepal Hume Pipe run as these establishments have been making payments in line with the government directive. There are 42 industries inside the industrial area.

Adhikari said he was saddened at the closure of industries although entrepreneurs were willing to hike minimum salaries.

Manager of Trishakti Poly Packs Salikram Goswami said workers closed the industries although the latter had promised to pay hiked salaries after sometime.

He said such strikes might discourage potential investors, who want to set up industries inside the industrial area. Sixteen industrial plants, including five belonging to MNCs, are under construction in the industrial area. The HCCI said the closure of the industries will cost over 10 million daily.

President of NIWU Bishnu Rana Magar said they had no option but to close the industries as HCCI had ignored their demands. "The agitation will continue until the industries pledge to pay us in line with the goverment-fixed scale," he said.

Magar accused the entrepreneurs of not bothering to hold talks with the agitators.

Following the strike at hotels in Nagarkot, FNCCI had reached an agreement with a government talks team led by Prime Minister Pushpa Kamal Dahal, to sit for talks in Kathmandu on Sunday and find a way out. But the closure of industries in Hetaunda has angered the entrepreneurs. "We could not understand the intention of the government," said FNCCI chairman Kush Kumar Joshi.

"The prime minister talks about parleys while his party-men shut down factories," he added. The FNCCI chairman said the entrepreneurs would not sit for talks until the factories were reopened. "Entrepreneurs have come to the conclusion that they will not be able to run businesses due to prevailing insecurity," he said.

Labour disputes and industrial insecurity are scaring away investors

Disunion
Labour disputes and industrial insecurity are scaring away investors
NepaliTimes, Issue #427 (28-Nov-08 to 4-Dec-08)
Dewan Rai

When the Maoist came into government, many had expected a better business environment and improved security. However, the private sector is reeling under threats and extortion from militant unions that they say is directed by the Maoists.

Biratnagar Jute Mill has been closed since 24 November. Hulas employees are on strike from this week. Asia Distillery shut down this week. Manakamana Cable Car has been closed down for two weeks and is losing Rs 1million a day. Even in remote Mugu, the Gamgadh hydroproject has been closed since two months. The list goes on.

Prime Minister Pushpa Kamal Dahal had to personally intervene to get the Maoist trade union to call off their indefinite closure of all 60 hotels in Nagarkot that started on Wednesday.

On 20 November, Colgate Palmolive became the latest multinational to close shop in Nepal, citing labour problems as one of its reasons.

The factory was sold to Nepali investors, but the workers didn't let the new management take over.

According to FNCCI, 20 entrepreneurs have been murdered, 53 businessmen kidnapped, 54 companies closed and there have been 62 shutdowns since elections in April.

In September, the cabinet decided to the raise minimum wage of unskilled worker from Rs 3,300 to Rs 4,600. The private sector says this will put them out of business, and is trying to negotiate. The dispute is over whether higher-earning workers should also get a raise in the same proportion.

Maoist Labour Minister Lekhraj Bhatta said negotiations were on and the minimum wage issue would be decided on Sunday. Asked if his party had political reasons to pressure the private sector, Bhatta admitted: "Of course, it is natural for a political party to try to extend its influence."


Rajendra Khetan, the ML assembly member whose brewery was also hit by strikes this week, says workers are being paid as per government rules. He says the current dispute is about politics and has nothing to do with labour. "If this goes on, forget about international investors, there won't be any domestic investment either," he said.

President of FNCCI, Kush Kumar Joshi told a business conference in Pokhara on Thursday that despite the Maoists coming to power, the environment for investment in the country had not improved. "The private sector has become the target of terror, extrortion and threats are becoming unbearable," he said.

Businessmen at the conference said the extortion and decline in business would mean they would no longer be able to pay taxes to the government. "If investors are scared away, the government will not be able to meet its job creation targets," Joshi said.

Indian foreign minister Pranab Mukherjee raised the issue of industrial security and threats against Indian multinationals operating in Nepal when he met Prime Minister Dahal on Tuesday.

The current spate of strikes is also caused by an intense rivalry between unions affliated to the Maoists and the UML. Bishnu Rimal, vice president of the UML-affiliated trade union, GEFONT, denied this. But sources said the Maoist unions broke an agreement with GEFONT not to strike in the tourism sector for three years in response to a party directive.

Ensure workers' right in new constitution: Trade union leaders

Ensure workers' right in new constitution: Trade union leaders
Nepalnews, 29-Apr-08