Private sector rules out government decision on minimum wage

The private sector ruled out possibility of implementation of government endorsed minimum wage agreement saying that the deal is biased.
"The deal could not promote good industrial relations," said Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Suraj Vaidya, in an interaction jointly organised by Society of Economic Journalist of Nepal and FNCCI here today.
The government must withdraw its decision and implement March 24 agreement, the employers said.
The government has endorsed minimum wage agreement of April 16 -- reached between Ministry of Labour and Transport Management and eight fringe trade unions -- the fractions of All Nepal Trade Union Federation (ANTUF) and trade unions associated to Tarai-based political parties.
The government Gazette on May 23 has only endorsed five of 11-point agreement reached on March 24 between the three major trade unions and the umbrella organisation of Nepali private sector.
"The 11-point agreement is in favour of workers," said senior vice-president of FNCCI Bhashkar Raj Rajkarnikar. "The government should rethink on it."
"We cannot implement the April 16 deal that is endorsed by the government," said vice-president of FNCCI and coordinator of Employer Council under FNCCI Pashupati Murarka. "The Gazette has rejected points that could promote healthy industrial environment," he said, adding that the FNCCI and major trade unions had agreed to declare next four years as industrial peace years barring strikes in the industrial sector.
"Industrial peace is key to industrial development but it is not included in the Gazette, he said.
"The government will be held responsible, if there will be any problem," Rajkarnikar added.
The March 24 agreement had hiked worker salary to Rs 6,100 from Rs 4,600 while April 16 agreement increased it Rs 100 more. There is also five rupees difference in daily wages between the two agreements.
The social security for workers was one of the key features of March 24 agreement that was praised by all including the Prime Minister Jhal Nath Khanal.