May 2 : After the then Maoist rebels came to the peace process, its labor organizations began to strike with demands including the need to increase wages in order to assert their influence in the factories.

At that time, the trade unions of peaceful political parties also started making competitive demands due to the fear of losing their influence. Strikes in factories became regular. Industries that were weakened by political instability and load-shedding became victims of 'labour militancy'. In this perspective, a study was conducted to find out the major obstacles in the development of the country’s economy to get support from the Millennium Challenge Corporation (MCC) of the American government.

A report titled 'Nepal Growth Diagnostic' published in 2014 stated that policy instability brought about by political instability, lack of electricity, high transportation costs along with the use of trade unions to achieve political objectives and outdated labor laws were the major obstacles to economic growth.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the umbrella organization of the private sector, which was shocked by the strike of the trade unions, had prepared to form an anti-strike network in late January 2015. In the decade since then, industrialists have rarely spoken about the labor problem. Industrialists and businessmen have now started to argue that there is no need to think about labor problems.

“There has been no strike by the laborers for the past 3/4 years. Even when workers had to be downsized during the coronavirus pandemic, there was no problem anywhere. Now there is a cordial relationship," Rajesh Kumar Agarwal, president of the Confederation of Nepalese Industries, told New Business Age, adding, “The CNI has signed agreements with trade unions that they will not shut down any industry if any problem arises. It has been 5 months since such an agreement was signed.”

According to him, collective debate, continuous collaboration with the stakeholders and intensive discussion on the issue have resulted in positive results and the relationship between employers and workers has also improved. Representatives of industrialists and trade unions say that two important laws—the Labor Act 2074 and the Social Security Act 2074—have played an important role in reducing labor unrest and factory strikes. These Acts have tried to give flexibility to industrialists in hiring and firing workers and guarantee social security to the workers.

Binod Shrestha, president of the Federation of Nepal Trade Unions (Gefont), said that among the laws made so far in relation to labor, this law, which came in 2074, is pro-labour because of the provision to include all workers in social security based on contribution.

“However, it has not been implemented everywhere. We are trying to implement it through collective debate and bargaining, cooperation.”

CNI President Agarwal says that the implementation of this law is done through collective efforts and because of that, the relationship between employers and workers is improving.

“Now I don't have to think that there will be a labor problem and the industrialists don't think so either," he said.

According to a study conducted by the FNCCI in 2010, strikes were the most common in industry. After that, there were problems like going on collective leave, delaying work, refusing to work overtime, obstructing work, surrounding and locking out industrial establishments.

Workers affiliated to the Maoists demanded hike in wages, permanent status of workers, handover of contracts, no layoff of workers, and in some cases industries were closed to implement the decision of the Maoists.

Shrestha said that although laborers went on strike for the establishment of democracy in the past, the current situation is different. "We will do it only if there is a need for a strike to address our demands," he said.

According to him, the Labor Act 2074 was made through collective discussion with stakeholders. Contribution-based Social Security Act 2074 was also brought after collective debate. "Earlier, the employers did not care about the workers/labourers and did not call them in any forum. Now, at least they participate in tripartite debate, and there are many debates on this issue," he said.

According to him, now the demands are addressed through collective bargaining at the establishment level. "Only if that doesn't happen, we will go to the level of agitation and strike," President Shrestha said, "It does not mean that the strike has stopped completely."

Two years ago, all the tea plantations were closed to enforce the minimum wage.

There have been no activities such as strike in Nepal by the laborers. Maniraj Gope, Director and Spokesperson of the Department of Labor and Occupational Safety, says that there is no strike as there are few job opportunities in the country and the laborers do not want to lose their jobs.

On the other hand, the situation of job creation is decreasing.

Although there is a peaceful environment now, it does not mean that the workers have not filed any complaints with the department.

According to Gope, workers are still in trouble in places where the government and trade unions are not present. "The government has set a minimum wage of Rs 17,300 per month. But even now, the workers are forced to work for wages below the minimum wage and they have not even raised their voice for their right to keep their jobs," Gope said.

However, he believes that after the implementation of the Labor Act 2074 and contribution-based social security laws, the issue of labor exploitation has decreased. "Efforts have been made to solve the problem," he said.