The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries (CNI) and the agitating trade unions signed an 11-point pact on Thursday.
Under the pact, employers agreed to raise the remuneration of workers, besides committing themselves to social security for the workers. [break]
The trade unions also committed themselves to increasing worker productivity for the betterment of the business enterprises.
"This is a landmark achievement," said Kush Kumar Joshi, president of FNCCI.
The 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) -- had been staging protests for the last one and half months, demanding a pay hike.
Salikram Jammakattel, president of ANTUF, expressed his organization´s commitment to extending full cooperation for implementing the agreement. "We have called off all programs of agitation in the industrial estates. We will abide by the spirit of the agreement," he said.
Under the deal, both sides have agreed to raise workers´ remuneration by Rs 1,500 per month and daily wages to Rs 226, effective from March 15.
With the fresh agreement, workers´ basic remuneration and dearness allowance will be raised by Rs 50 and Rs 1,450 respectively per month. This has increased the minimum remuneration to Rs 6,100 a month, from Rs 4,600.
Employers and workers have also agreed to contribute 20 percent and 11 percent of their respective basic remunerations for implementing different social security schemes for workers.
Likewise, the trade unions promised to extend their full cooperation to employers in curtailing the work force if any enterprise is forced to fully or partially close operations due to rise in labor cost or other adverse market conditions.
A bilateral permanent mechanism comprising representatives of the Employers´ Council of FNCCI and the trade unions will be set up at central as well as district levels to foster industrial harmony and create a favorable production environment.
Both sides have also agreed to expedite the process of amending the existing Labor Act to ensure social security for workers, which would be instrumental in introducing long-term industrial peace. They expressed commitment to settling misunderstandings subsisting between them by organizing a high-level conference.
Agreement has also been reached to recommend to the government to constitute a permanent body with representation from the umbrella organization of employers, trade unions and the government, to carry out timely review of workers´ remuneration.
Similarly, the workers have committed themselves to fully cooperate with the employers to increase industrial productivity, which has been eroded due to long-running labor unrest. They have also agreed not to take part in any political activities during working hours.
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