Home / Knowledge / News / Apparel/Garments / Garment companies reject demands for pay hikes
Garment companies reject demands for pay hikes
Aug '09
Increasing the salaries of employees in the government sector would also make the workers in private sector to demand for a salary hike, Mr. Kush Kumar Joshi, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), had warned at a program, before the presentation of new budget.

This prediction of the FNCCI President proved correct when the UCPN (Maoist) - affiliated All Nepal Trade Union Federation (ANTUF) sought a 100 percent increase in the allowance and 40 percent hike in basic salary. An official of ANTUF said that price hike in essential items is not allowing the workers to survive on current salary structure.

President of the Garment Association of Nepal (GAN), Mr. Prasanta Pokharel said that before a few days, the association has received demands regarding salary hike and allowance, but are not in a position to pay the same. The ANTUF official has said that the pay should be increased on par with that of government employees.

After the protest of civil servants against government for not increasing their pay in the budget, the government recently increased the salary for non-gazetted employees by 6 percent and for gazetted employees by 4 percent. The employees were demanding salary hike as country's inflation rate was mounting up.

ANTUF official said that if their demands were not met, their union will announce a struggle program within 10 days. But the industrialists are responding to the situation by saying that they are not compelled to increase the pay and allowances, since they had increased the salaries just before nine months.

Acting President of FNCCI Mr. Suraj Vaidya said that according to the tripartite agreement among the trade unions, employees and government, the salary will be reviewed only after two years. However, he said that he has been hearing informally about theses demands as; FNCCI has not received any formal complaint from its members regarding the same.

He further said that the additional increments in salary would close down the industries as they are already operating below capacity at present. Number of employees in the garment sector has shrunk to 30,000 from 50,000 and that of workforce in carpet sector has dropped down from 300,000 to 50,000 as these industries are unable to compete in the international market.

Mr. Pokharel said that the private sector workers need non-funded social security in spite of the salary increase, and GAN has been contributing 23 percent of the workers' social security while the workers are contributing 10 percent of it. But, the government's contribution is insignificant, he added.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Planning to Take the Leap towards

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search