Interviews
Nepal textile entrepreneurs want to link work & wages
21 Jan '12
2 min read
Textile entrepreneurs in Nepal have requested the Government to create a link between the output of the workers and their wages, at a time when a new Labour Act is being prepared by the Ministry of Labour and Transport Management to replace the existing Act that was implemented in 1992.
At an event organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Padma Jyoti, Chairman of Jyoti Group, which has several industries including spinning mills, said if a provision to give wages on the basis of productivity is mentioned in the new Labour Law, it would enable entrepreneurs to fix salaries of workers on the basis of output of their work.
At present, salaries in both formal and informal sectors in Nepal are determined through negotiations between the trade unions and the management. This procedure overlooks productivity factor and it only fuels price rise, without any concrete effort to improve quality of output, employers said.
They added that continuation of existing practice would result in giving rewards to non-performing employees, who become liability for the firms. This would finally lead to less labour productivity and give bad image for the country in global market, they said.
Moreover, employers also suggested that some limit needs to be imposed on the workers right to collective bargaining through trade unions for resolution of several disputes, including those related to pay-scale.
Employers also gave a call for framing a separate law for export-oriented industries, including handicraft sector and readymade garments. They said it should have provisions to ensure that production in such industries remain unaffected throughout the year.
At an event organized by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Padma Jyoti, Chairman of Jyoti Group, which has several industries including spinning mills, said if a provision to give wages on the basis of productivity is mentioned in the new Labour Law, it would enable entrepreneurs to fix salaries of workers on the basis of output of their work.
At present, salaries in both formal and informal sectors in Nepal are determined through negotiations between the trade unions and the management. This procedure overlooks productivity factor and it only fuels price rise, without any concrete effort to improve quality of output, employers said.
They added that continuation of existing practice would result in giving rewards to non-performing employees, who become liability for the firms. This would finally lead to less labour productivity and give bad image for the country in global market, they said.
Moreover, employers also suggested that some limit needs to be imposed on the workers right to collective bargaining through trade unions for resolution of several disputes, including those related to pay-scale.
Employers also gave a call for framing a separate law for export-oriented industries, including handicraft sector and readymade garments. They said it should have provisions to ensure that production in such industries remain unaffected throughout the year.
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