Big industrial houses in eye of minimum wage storm

Militant trade unions are holding the nascent industries to ransom. Contrary to the government's tall talks on investor-friendly moves, the situation on the ground reveals a disturbing picture, especially on the Birgunj-Parsa corridor in the Tarai, where lots of industries are sufering the frequent labour disputes.
Unions have closed down at least two dozen industries, including Surya Nepal Pvt Ltd, a multinational company (MNC), today. The demand: salary hike for all employees. The result: the state exchequer is being deprived of millions daily. And leading the anti-industry assault is none other than the Maoist-affiliated All Nepal Trade Union Federation (ANTUF).
The industrialists are pleading helplessness in the face of unions' sponsored stir. The demand, insist business houses, are illegal since the workers are being paid in accordance with the minimum salary slab fixed by the government.
"We have agreed to comply with the minimum wage of Rs 4,600. Earlier, it used to be Rs 3,300. But, all the workers are demanding a similar raise, which is simply unacceptable," said Sanjeeva Keshava, chief executive officer, Surya Nepal Pvt Ltd. "The flat raise of Rs 1,300 to all is what they are demanding."
Badri Bajagain, vice-president, ANTUF, rubbished the charges. "We want a minimum salary fixed by the government, which has the following components; basic salary Rs 3,050 and Rs 1,550 dearness allowance that adds up to a consolidated sum of Rs 4,600," maintained Bajagain.
"We aren't targeting all and sundry. Of the 350 medium and large scale industries in the corridor, 70 per cent have fallen in line with our demand," he said. He also alleged that some big industrial houses are still getting away by paying Rs 2,200 as basic salary.
"It is in clear violation of the agreement reached on November 30. Federation of Nepalese Chambers of Commerce and Industry (FNCCI), an umbrella organisation of Nepali private sector, and representatives of six trade unions were party to that accord. As per the agreement, if any company has hiked salaries of late, then it will be adjusted in line with the present accord," added Bajagain.
Interestingly, the accord doesn't specify about the hike earmarked for higher salary holders.
"We have shut down all those companies, which refused to implement the agreement," said Dinesh Rai, central member, GEFONT, UML-affiliated union. He is also the president of Nepal Independent Workers' Union (NIWU).
Bishnu Rimal, vice-president, GEFONT, tried to deflect his union's involvement in the ongoing stir. "We have urged them to hold talks and come to an amicable settlement," reasoned Rimal.
Meanwhile, Nepali Congress-affiliated Nepal Trade Union Congress has also thrown its lot behind the rival bodies.