“Investors are ready to make pledges for workers´ welfare. But in return, the government must ensure there is no strike in export-oriented and other sensitive industries. This has become important if the country is to have new investments and industries,” said Pashupati Murarka, vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).[break]
Officials of FNCCI that interacted with the newly-appointed Finance Minister Barsha Man Pun also demanded a strict enforcement of no-work, no-pay policy. Referring to the current trend wherein the companies need to pay workers even when they participate in rallies of political parties, entrepreneurs asked the government to stop this culture immediately.
“Such trend has not only inflicted undue cost on the industries but also deteriorated the work environment. This is one major factor that has eaten away the country´s investment worthiness, and what everyone must understand is, this will eventually hurt workers the most in the long run,” said Murarka.
Interestingly, FNCCI even asked the government to introduce a legal framework whereby investors can sue and seek compensation for loss from agitating parties in cases of an illegal strike. This is the first time that the private sector has pushed for compensation for damages resulting from unfair practices of trade unions and political groups.
FNCCI made an elaborated presentation, informing Pun about the key constraints facing the private sector and the problems that have been corroding the country´s investment and industrial climate.
FNCCI list of advice for FM
- Enforce no-work, no-pay in all industries
- Enact law whereby industries could seek compensation for loss from illegal strike
- Develop reservoir-based hydropower in Budi Gandaki, West Seti
- End syndicate, cartel; provide loans at low interest rate
- Mark 2012 as Nepal Investment Year
Apart from labor issues, Murarka asked the new government to work seriously to end energy crisis, terming it the second major problem for the business community in the country. Under this, FNCCI mainly demanded the government to arrange for separate electrical grid for the industrial areas and to step up productions by providing lucrative incentives to the investors.
In this connection, it pushed the government to implement large reservoir-based hydropower projects in rivers like Budi Gandaki and West Seti.
Businessmen, speaking on the occasion, also demanded the government to instantly dismantle syndicate and cartel of transporters as they have been adding cost to businesses, eroding competitiveness of Nepali products in domestic as well as in the international markets.
They also asked the government to arrange for loans at lower interest rates for industries, which are relying on local raw materials and generating maximum value addition in the economy.
FNCCI also demanded the government to treat industries that replace imports as export-oriented industries and provide incentives to them.
In order to promote investment and foster industrial climate, FNCCI even pushed the government to mark year 2012 as Nepal Investment Year.
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