FNCCI-trade unions agree to raise salary

KATHMANDU, March 24: After days of hectic negotiations, agitating trade unions on Wednesday agreed the proposal to raise minimum salary of workers by Rs 1,500 per month and minimum daily wage to Rs 250 with effect from March 15, provided that the employers agree to provide social security package to the workers.



Three major trade unions in the country – Maoist-affiliated All Nepal  Trade Union Federation (ANTUF), UML-affiliated General Federation of Nepalese Trade Unions (GEFONT) and the NC-affiliated Nepal Trade Union Congress (NTUC) – were staging protest since Feb 9, putting forth demands like increasing minimum monthly salary of workers to Rs 10,000 and daily wage to Rs 400.[break]



“We’ve agreed the proposal to raise salary by Rs 1500 per month and daily wage to Rs 250 on condition that the employers are ready to provide social security package for workers," Ramesh Badal, a negotiator from GFONT, told Republica.



The fresh agreement means minimum monthly salary of worker has now reached Rs 6100. Two years ago, the government had fixed minimum remuneration of Rs 4,600 (Rs 3,050 salary and Rs 1,550 allowance) and minimum daily wage of Rs 190.



The increment, however, is subject to adjustment in case the employers have already raised the workers’ salary.



Trade unions leaders have demanded the employers to contribute 10 percent of total salary of workers in social security package for workers. The employers are already providing 10 percent of the total annual salary as provident fund and 8 percent as Dashain allowance.



The trade union leaders have also agreed not to involve workers in political activities more than one day per year per worker -- a concept of Leave Bank. “The number of days that workers can participate in political activities is calculated on the basis of number of workers in the employer companies," said another trade union leader who participated in the negotiation.



Responding to growing concern of employers on frequent participation of workers in political activities, the trade union leaders have also expressed their commitment to minimize politicization of workers.



The nine-hour long talks were held between the representatives of leading trade unions and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) – the apex business organization in the country.



Agitating trade unions had announced fresh protests, including nationwide industrial and transportation strike, on March 15, after last-hour informal meetings with FNCCI representatives failed to yield any breakthrough to resolve minimum wage row.

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