No Work, No Pay

KATHMANDU, Jan 19: Amid rising trend of workers joining political activities during office hours, employers recently decided to impose ´no work no pay´ system -- a provision under which they say they will not pay wages on the day the workers do not work. However, workers have vehemently opposed the decision and have threatened to launch strong protests if the employers implemented the new system.



Employers say the provision is crucial to save industry in the highly competitive market. Trade unions, on the other hand, argue that the unilateral decision of entrepreneurs to enforce the system has flouted the spirit of tripartite agreement respected world over on matters related to workers. [break]



Such being the backdrop, myrepublica.com caught up with Binod Kumar Chaudhary, president of Confederation of Nepalese Industry (CNI), and Salikram Jamakattel, president of Maoist-affiliated All Nepal Trade Union Federation (ANTUF) and asked them to speak further on the issue.



Excerpts:



´It´s a compulsion for us´



Binod Kumar Chaudhary

President, Confederation of Nepalese Industries (CNI)



´No work no pay´ is not something that needs to be debated. It is a widely accepted principle across the world and even International Labor Organization has adopted it. Businessmen are just the medium of coordinating and managing factors of production for value chain. If we fail to manage the factors of production efficiently, our industries will die along with jobs. This fact is well understood by political leaders and trade unions.



As a result of rising production cost due to adverse industrial situation like frequent bandas and strike, we have been constantly losing competitiveness, both at home and abroad, compelling many industrialists to close down business. We understand the insecurity of laborers in case a factory is closed and that is the reason why we have been working hard with the government and labor unions to materialize social security fund, which will provide some relief package in case workers lose their job.



Despite widespread expectation of restoration of friendly business environment after the beginning of the peace process, it is unfortunate to note that that situation in fact has worsened. A recent study reckoned that industrial estates faced 27 days of bandas in a month.



Many businessmen aren´t satisfied with way that the Employers´ Council of FNCCI is handling labor issues and it has completely failed to deal with the current situation. Now, we have come to a conclusion that the responsibility to deal with labor issues shouldn´t be given to any sole institution. So, we are forming another employers´ council on behalf of CNI soon. Even senior leaders of FNCCI have constantly failed to implement their pledges made at public programs. I haven´t seen anyone from FNCCI on the street, calling for better industrial environment.



Even more surprising is that some business leaders are keeping mum over the atrocities carried out by the political parties they are representing in Constituent Assembly.





´Impossible to implement´



Salikram Jamkattel

President, All Nepal Trade Union Federation



Introduction of ´no work no pay´ system in industries is impossible at this point of time when employers have been deliberately ignoring the spirit of existing Labor Act. We have been urging the government and employers to sincerely implement the Act first, as workers are being exploited and deprived of different rights ensured by the Act. For example, businessmen are exploiting the workers by failing to provide minimum wages fixed by the government besides ignoring the rights of workers to get appointment letters once they are given jobs. That would be sheer exploitation of workers if employers refused to give salary to workers just because they participated in political events.



Why employers don´t have the courage to open industries during bandas? Who would be responsible for the loss incurred due to the inability of the employers to open their business during the bandas? There would be no moral ground for the employers to leave workers without pay if they fail to open their business on banda days.



So, we have no option but to announce nationwide agitation if the employers go for cutting salary of helpless workers during banda days. Our trade union - ANTUF -- vehemently opposes the repeated threats given by employers to pursue ´no work no pay´ system and such system can never come into implemented without the support of trade unions. We have already appealed our units not to accept ´no work no pay´ system and there will immediate protests if any employer attempts to adopt it unilaterally.



In the meantime, we also have been appealing all stakeholders, including industrial enterprises, not to take steps that might worsen the sensitive relationship between the workers and employees. We can´t even think about implementing the system without bring about overall reforms in Labor Act.

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