FNCCI, government minimum wage dispute

Private sector today objected government's unilateral decision to implement 'new wage deal', which according to Federation of Nepalese Chambers of Commerce and Industry (FNCCI), will create misunderstanding among the employees and employers.
Ministry of Labour and Transport Management has endorsed Rs 6,200 as minimum salary unilaterally, giving legitimacy to new wage agreement signed on April 16, instead of March 24 agreement reached between three major trade unions and employers.
The employers cannot implement the deal and government will be held responsible for any untoward situation that arises from forceful implementation, the umbrella organisation of Nepali private sector said, adding that the new deal on April 16 also violates International Labour Organisations Convention.
The deal signed -- on March 24 -- by FNCCI that representatives 98 per cent employers and three major trade unions that represents majority of the employees has to be implemented according to the ILO Convention, it added, urging the government to endorse agreement signed by three major trade unions and umbrella organisation of private sector on March 24.
The two agreements do not have significant difference in minimum wage except that the earlier agreement had introduced social security to workers.
The March 24 agreement had hiked worker's 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 earlier agreement was more scientific than the April 16 agreement that the government endorsed," according to the Employers Council under the FNCCI that looks after the issue from employer's side.
The three major trade unions – All Nepal Trade Union Federation (ANTUF), General Federation of Nepalese Trade Unions (GEFONT) and Nepal Trade Union Congress (NTUC) – also also in favour of March 24 agreement.