In Nepal employers and workers sign an agreement for mutual understanding

The ILO has managed to bring to the discussion table employers and trade unions in Nepal for the first time to bridge for their negotiation.

News | 27 July 2020
A bipartite agreement was signed on 27 July 2020 between employers and trade unions in Nepal. This was based on a series of bipartite meetings between employers and workers  with the support of the ILO. The following agreed points would be recommended to the government final approval;

1. Industrial enterprises will pay full wages for month of Chaitra (March 14th – April 12th) as industries were fully shutdown more than two weeks during this month.

2. 50 percent of wages to be paid to all workers for the month of Baisakh (April 13th – May 13th). Workers who have not come to work due to lockdown during month of Jestha (May 14th – June 14th) will be paid 50 percent of wages.

3. Sectoral associations together with related industry/enterprise and enterprise level trade union can discuss on wage payment for lockdown period, proper operation of enterprises, and rotation work, based on different nature and situation of business sector

4. If enterprises are not running at full capacity and can only provide employment to some workers then to ensure employment security, then workers will be employed on shifts based on a rotation system.

5. Industries that are opening up after lockdown shall ensure all measures to ensure worker safety and health

6. Employer organizations and trade unions will together request and provide suggestions to the government on ways through which health challenge, economic impact, and labour market impact created by coronavirus pandemic can be reduced while promoting faster economic recovery. At the same time dialogue and partnership to improve labour relations and solve labour market problems will be given continuation.

7. District/Municipal government to create the environment for workers who are still facing challenge to come to enterprises due to continued lockdown in some areas.

Signees to the agreement were
1. Employers:
a. Federation of Chambers of Commerce and Industry (FNCCI)
b. Confederation of Nepalese Industries (CNI)
c. Nepal Chamber of Commerce (NCC)
d. Federation of Nepal Cottage and Small Industries (FNCSI)
2. Trade Union:
a. Joint Trade Union Coordination Centre (JTUCC) and its affiliate trade unions.