In this connection, Republica talked with three eminent figures of the private sector, government and trade unions on Wednesday to get their view on Surya Nepal´s decision and present industrial climate in the country Excerpts:[break]
Closure will disseminate negative message to investors
Ravi Bhakta Shrestha
Former President of FNCCI
It is really unfortunate that Surya Nepal has decided to shut down its garment factory -- the largest apparel manufacturing unit in the country -- due to labor unrest. The company was helping the country earn foreign currency through exports, providing employment to thousands of workers and making good contribution in government revenue too.
The government must take the responsibility for this. We have always notified the government about adverse impacts of unruly activities of trade unions. Sadly, the government remained indifferent toward the sufferings of investors and industrial sector. Political leaders in the government always patronized trade unions and overlooked genuine concerns of industries. The case of Surya Nepal is just one of those unwanted fallouts of the lopsided policy and practice of the government.
The worse part of this saga is that the closure has disseminated negative message to foreign investors that were willing to invest in Nepal. It has also rattled importers that were eager to buy garment and other products from Nepal. Adverse messages like these can leave a long-term scar in the economy. Hence, I urge the government to instantly reform the country´s labor law.
The political parties too must act sensibly for national interest and rein in their trade unions. I would also like to hear how the government will respond to the Surya Nepal´s decision to shut down its garment unit.
Ready to mediate talks between mgmt, workers
Mahendra Pasawan
Minister for Industry (MoI)
I am not fully aware of what exactly happened at Surya Nepal´s garment unit. But what is for sure is the closure was the last thing that the country needed at this juncture. As a minister, I appeal to the management of Surya Nepal to review the decision. I promise that the government will immediately do the needful to resolve its problems. I am holding talks with the Ministry of Labor and Transport Management on Thursday where we will invite the management of Surya Nepal and the representatives of trade unions for constructive dialogue between them. The government will mediate the talks. If need be, I will even visit the factory site and interact with the workers.
I admit that decision to shut down Surya Nepal´s garment unit is the outcome of the poor response mechanism of the government. It needs no reiteration that our policies and laws on industries and labor contradict with each other. We say we welcome foreign investment, but there are no legal assurances to convince the investors that their ventures will be protected.
We need a clear policy to deal with industrial strikes. Private sector has long been demanding that industries be declared strike-free zone. Their demands are genuine. As a minister, I will push for inclusion of those agendas in our policy. Likewise, I will also hold talks with Labor Ministry on reviewing the labor law.
Unfair decision
Bishnu Rimal
Coordinator, GEFONT
We flay the decision of Surya Nepal to shut down its garment factory. We had made repeated attempts to facilitate talks between the agitating trade unions and the management so that it could resume productions. We were also running a signature campaign to build workers voice for reopening of the factory and at the same time trying to address grievances of the management.
The sudden decision to shut down the factory permanently has surprised and shocked us. We admit circumstances that unfolded in the factory like padlocking of staffers were unwanted. If the management felt that the padlocking of staffers left it unconvinced about safety of its staffers, why id did not take steps to identify and punish the wrongdoers as per the law of the land? The decision to shut operations just because of simple misunderstanding with the workers is unfair.
We strongly demand the management to review its decision and resume operations at the earliest. We promise all necessary support to the management to clear up existing misunderstanding with the workers. We have already held talked with the local trade unions and they have also committed to help the management resume normal operations.
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