Trade associations demand hire & fire policy

23 Jun '09

2 min read

Five big associations of manufacturers and exporters of the country decided to join hands to force the government to introduce hire-and-fire policy and tax holiday for five years through the budget for new fiscal.

All these associations, which manufacture and export country's key exportable items, came together to add strength to their demands, after their unsuccessful individual efforts to draw government's attention towards their demands.

The Garment Association Nepal (GAN), Nepal Carpet Industries' Association (NCIA), Nepal Carpet Exporters' Association (NCEA), Nepal Handicraft Federation (NHF) and Nepal Pashmina Industries' Association are those five big associations, which are facing the same set of problems.

These associations are asking the government to allow them to reduce the staff as per the orders they receive, as currently, the manufacturers have to bear the responsibility of the manpower that has been employed to meet the production requirements during peak season and even during the lean period, which kept on adding undue burden to production costs.

Due to the global economic slowdown, which has affected the demand of key Nepali export items in major market, the manufacturers and exporters of leading export products also want the government to secure tax holiday for five years.

They are also seeking the government either to ban highway closure or to devise a system that could provide for unhindered movement of export shipments during the bandhs and other strikes.

There are also many other sector-specific issues which need government attention. Hand-knotted woolen carpet, readymade garment, pashmina and handicraft items are the leading exportable items of Nepal. These items collectively make up for two-third of Nepal's total third country export.

As the products from these industries fail to deliver on time due to the bandhs and labour strikes, all these industries are reeling under the crisis and such failure has ruined the image of the country and diverted the orders away as well. Along with this, labour troubles have also been putting these industries at great risk.

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