Labour Force

Nepal has an easily trainable and keen work force. Unskilled labour is
cheap and abundant. Semiskilled and skilled labour are available in
sufficient numbers. The government has established technical
institutions to develop skills at the technical level in civil and electrical
engineering, electronics, air conditioning/refrigeration, general
mechanics and auto mechanics. Training programmes are also geared to
industrial and vocational training in wood working, metal working,
leather working, general fitters, tailoring and so on. The programmes on
entrepreneurial and management development and the colleges of
higher learning provide educated persons to be groomed for managerial
positions on both public and private sector industries.
Industrial Relations
Nepal has a history of maintaining good industrial relations during the
past few decades when industrial activity gradually expanded in the
country. Labour unrest, lockouts and strikes do not occur as frequently
as they do in other developing countries. The Labour Act lays down
guidelines and procedures for the settlement of disputes between
employers and employees. These guidelines and procedures provide a
favourable environment for the harmonious development of industrial
relations.
Legal Framework
The Labour Act, 1992 lays down the legal framework and the basis for
the rules, regulations and guidance on the proper management of any
establishment employing 10 persons or more. It deals with matters
relating to employment and security of employment, working hours and
minimum wages, welfare of employees, employer employee relations
and the settlement of labour disputes. Labour Regulation, 1993
complements the Labour Act with further clarification in issues such as
security of profession and service, remuneration and welfare provision,
health, cleanliness and safety, etc. The Bonus Act of 1974, as amended
subsequently, provides a legal basis for the payment of bonus to the
workers and employees of factories and commercial establishments.
Wages and Salaries
The minimum wage rates set by the government are comparatively lower than the going wage rates for
workers in SAARC and other countries of the region. Salaries of middle management executives, technical
grade officers, engineers and other professionals are generally lower than in other developing countries.
Permanent employees of a factory should contribute 10 percent of the monthly salary to a provident fund and
the management should make a matching contribution. Gratuities are payable to workers who have worked
for over 3 years.
Working Hours, Holidays

5 percent) continues. most on small plots that produce insufficient food for survival. Nepal is the only country in the world in which life expectancy for women is lower than for men.6 percent of the income only. Overtime work is remunerated at one and a half times the normal wage. However. The average annual Gross National Product (GNP) growth rate of 3. Ironically. pursuing agriculture as a source of livelihood. 15 days medical leave with half pay and one month special leave without pay every year. The infant mortality rate is 74. the human expenditure ratio in Nepal is less than 3 per cent of GNP that is very low as compared to the internationally recommended ratio of 5 per cent. Female employees are entitled to 52 days maternity leave with full pay. Adult literacy is 39. Until 1975. Trade Union Situation in Nepal General Economic Situation With about 22 million population and having a per capita income of US$ 210. It ranks 144 th position in the UN Human Development Index out of 174 countries listed in the Human Development Report. this sector still dominates the economy viewed from the share in GDP contribution. Continuous working hours should not exceed 5 hours. About 90 percent of population do not have access to adequate health services. low saving (about 10 percent) and low investment trap. the population of Nepal will reach 40 million by the year 2020.2 percent). Debt is so huge that even four years of revenue collection cannot pay back the debt.8 percent of income. While the richest 20 percent of the population earn 44. Over 80 percent of population live in rural areas. Despite heavy investment and top priority given to the agriculture sector. permanent workers are entitled to one day's home leave for every 20 days. The compulsory retiring age for workers is 55. At present. If the current growth rate of population (2. . The literacy rate for women is 28 percent and for men 62 percent. There should be a break of half an hour.Normal working hours are fixed at 48 hours per week. The Human Development Report concludes that in Nepal the rich are getting richer and the poor are getting poorer. The social sector still receives a low priority in budgetary allocation.2 percent and school enrolment ratio is 61 percent. The growing fiscal deficit gap in the economy indicates a trend towards debt spiral. More than fifty percent of its population live on less than a dollar a day.5 per thousand live births. Nepal’s Human Poverty Index is 51. The population growth is higher than food grain production (2. In addition to 13 public holidays. the country now imports food grain every year from abroad. the retirement age could be extended upto 60 years.4 percent roughly balances the population growth. Such maternity leave shall be granted only twice during the entire period of service. More than 60 percent of its development budget comes from foreign aid and aid constitutes a major instrument for Nepal to escape from poor income. the poorest 20 percent earn 7. Nepal remains one of the poorest countries of the world. in the case of a skilled worker whose service is indispensable. 8 hours a day. 29 percent do not have safe drinking water and 85 percent of population do not have access to sanitation. Nepal used to be a major food grain exporting country.3 percent.

Working Journalist Act 1994 and Labour Court Regulation Act 1995 have been promulgated.5 percent. Transportation Act 1992. low economic growth led to a severe macro-economic instability. low inflation and comfortable foreign exchange reserve). conclude the mid-term Budget review and finalise Poverty Reduction Strategy Paper before April. According to the Department of Labour.2000 Nepal concluded a crucial negotiation with the International Monetary Fund (IMF) sponsored Poverty Reduction Growth Framework (PRGF). Nepal entered into another phase of Enhanced Structural Adjustment Facility of the IMF. Foreign Investment and Technology Transfer Act 1992 were passed to liberate the economy from politics and society and make it competitive to participate in the opportunities offered by globalization. followed by tourism 18 percent. On November 29. Industrial Enterprises Act 1992. 5 regional development banks and a small stock exchange. constitutional monarchy and sovereignty of people. structural reform (privatization of public enterprises. The Privatization Act 1991. In this context. civil service reform and restructuring of financial sector among others) and poverty reduction. Nepal also became a member of Multi-lateral Investment Guarantee Agency of the World Bank and an adherent of the UN Commission for International Trade Law. including social spending for the next three years. 2 leasing companies. circulation and control. 1996 to settle industrial disputes. As a result of liberalisation there have been the establishment of 11 joint venture banks. 40 finance companies. This is a positive contribution of foreign investment but these achievements appear insignificant compared to the existence of over half a million workforce in the county. Nepali state remained hyperactive in the sphere of production.000 workers. service sector 17 percent and agro-based industries 2. Though the IMF mission and high-level government officials concluded the negotiations at the Finance Ministry. In 1990. Nepal witnessed a change in the polity—from partilessness to multi-party. A tripartite National Advisory Board was established in 1994. despite its avowed ideology of democratic socialism. the number of industrial disputes stood at 189 in 1991 which came down to 49 in 1999. such as chronic fiscal deficit owing to low internal revenue mobilisation. The 374 joint venture units operating in the country employ about 62. The IMF subscribed the government to adopt a Stabilisation Program in 1985 while the World Bank offered Structural Adjustment Program (SAP).Economic Reform Policies Until the latter half of 1980s. Labour Act 1992. After that. provision of human rights. distribution. Child Labour Act 1992. Nepal’s entry into PRGF will particularly expedite the pace of economic reform initiated by Nepali Congress government in 1992 but slackened due to ensuing political uncertainty in the second half of 1990s. competitive election. New Industrial Policy 1992. In 1992. Trade Union Act 1993. Accordingly. Nepal should pass through three crucial requirements to qualify for the entry: it should award the management contract of Rastriya Banijya Bank and Nepal Bank Ltd to private sector. the Nepali Congress government pushed for privatisation and liberalisation of political economy. possibly by April 2001. Nearly 60 percent of all joint venture industries comprise manufacturing sector. PRGF mainly focuses on macro-economic stability (low fiscal deficit. regulation. Labour Relations Committees have been constituted and a Labour Court was established on January 15. major donor countries and international financial institutions such as World Bank and International Monetary Fund (IMF) began to set Nepal’s development priorities. that will guide the country’s economic decisionmaking. . Politics of Workers Welfare and Their Situation In the 1990s there have been noticeable developments in the promulgation of labour acts. fast growing public expenditure. swelling debt burden and declining international reserves. it will have to be endorsed by the cabinet and IMF Board of Directors before Nepal enters into PRGF. Besides.

the freedom of association allowed the opportunities to many voluntary organisations in the country and the workers.7 percent) or occupation (67. felt the need to be united under one umbrella to fight against the exploitation of the management and the government.But. The employment in the organised sector of the economy has been stagnant standing at about 3 per cent of the country’s population. The World Federation of Trade Unions (WFTU) in 1953 granted membership to ANTUC. the economic situation in the country is deteriorating due to wrong policy prescriptions. Out of the total employed in organised sector more than 8 percent of work force constitute non-Nepali origin. The same year the manufacturing of carpets increased to 1. There were no trade unions in Nepal before 1945 as the country was under the family rule of Ranas. After the opening up of national economy toward liberalisation and globalisation many import substitution industries were closed. After the democratic change of 1950. Informal sector is another major sector of employment—about 73 percent of the jobs outside agriculture. The pace of industrialisation is plummeting. this sector also could not create additional employment opportunities. There is already a burden of over unemployment on farm sectors.000 workers. about 79 per cent are self-employed. Biratnagar Workers Union (BWU) was set up.144. All Nepal Trade Union Organisation and Nepal Labour Union. were active both in trade . Nepal had followed closed-door economy having almost no relations with the outside world. The growth of labour force during the last decade was estimated to be almost at 3. The weakness on the Nepalese part is that Nepal is only capitalising this market for carpets and garments. the president of Nepali Congress Party and late Mana Mohan Adhikari. These factories employ 60. All Nepal United Workers’ Union. further aggravating the unemployment and underemployment situation in the country. In the garment sector. if translated to the population of working age group means that every year about 4 hundred thousand people enter into the job market. Origin of Trade Unions in Nepal The history of trade union movement in Nepal is of recent origin. So. The Central Bureau of Statistics (CBS) in 2000 unveils that agriculture is still the predominant sector of employment for Nepalese either by economic activity (54. Consequently. for example. too. Nepal is likely to loose competitive advantage in this sector. attributed to low quality dyeing. The future of those who are unemployed appears bleak. But these unions were merely instruments of the political parties without the capacity of free collective bargaining. price is rising heavily and the real wage is declining. All Nepal Trade Union Congress. the CBS reveals that the number of manufacturing establishments declined to 3557 in 1997 from 4271 in 1991. This is clear from the fact that Girija Prasad Koirala. Independent Workers’ Union. In March 1947 the first workers’ movement took place at Biratnagar for the establishment of democracy.800 and the number of employees reached 136. Most of the self-employed labour force is concentrated in agriculture (about 71 percent). After 1995 the carpet sector has begun to show the signs of decay. This figure. On the contrary. Job prospects on agriculture do not seem promising. not developing the sustainable base of the industries.3 percent).5 per cent per annum. The industrial sector failed to absorb the surplus labour in the agriculture sector. former president of the United Marxist-Leninist Party. following the negative publicity about the use of child labour and the decline in the quality of products. there are 900 registered factories in Nepal but only 60 are operational. In 1951 ANTUC and BWU became united and formed the first trade union federation in Nepal. The unions existed at that time were: Biratnagar Workers’ Union. This industry started as a quota system under GATT arrangement. Biratnagar Mills Workers’ Association. Cotton Mills Workers’ Union. now. In 1946 All Nepal Trade Union Congress (ANTUC) was formed. In 1947. as the provisions of the Multi-Fibre Agreement go into effect by the year 2000 to the abolition of quota by 2004. the excessive burden of generating employment has been borne mostly by the agriculture sector alone. Of the total employed population. But.

nationalism and socialism. After the success of democratic struggle against 104 years of Rana family rule in 1950 freedom of expression and organisation became part of political life. This division extends to the grassroots level on factional lines of the political party. most of these unions could not exist and some of the unions were merged. human rights. freedom of expression and organization became a part of national life. some of the noticeable achievements were also made during this period in the field of labour administration. such as. 1989 with four founder federations: Nepal Independent Workers Union (NIWU). there was mushrooming growth of trade unions. which inspired the formation of trade unions. including workers had actively participated. The Constitution of the Kingdom of Nepal 1990 guaranteed multi-party parliamentary system. For this.  Nepal Trade Union Congress (NTUC) was established in 1947 with the objectives of promoting workers rights. This system limited the freedom of expression and association but envisioned creating exploitation-free society through the harmonisation and co-ordination of the interests of different classes. At an early stage. The labour movement in Nepal started on March 4. department and some labour offices and the admission of Nepal into the International Labour Organisation (ILO) as a member. Independent Transport . NTUC became active in the promotion of workers rights to organise. 1947 in Biratnagar against the hereditary Rana rule for the establishment of democracy and advancement of workers’ rights.unions and their respective parties. With the overthrow of Panchayat polity in 1990 following popular movement for the restoration of democracy.  General Federation of Nepalese Trade Unions (GEFONT) was established in July 20. 1997 after it broke away from NTUC. constitutional monarchy and the sovereignty of people. Each party has its own unions. Three major federations existing in the country are Nepal Trade Union Congress (NTUC).  Democratic Confederation of Nepalese Trade Unions (DECONT) is established on May 1. Democratic Confederation of Nepalese Trade Unions (DECONT) and General Federation of Nepalese Trade Unions (GEFONT). express and struggle for their collective welfare. banned the political parties and trade unions and established a partyless Panchayat system in 1962. The Nepalese political history took a new turn in 1960 when the King staged a putsch. in which many professional organisations. Multi-party democracy was restored in the Spring of 1990 in the country after the success of people's movement. Nepal Trade Union Congress also revived its organization in 1990 and now works closely to ruling Nepali Congress party in general and current prime minister Girija Prasad Koirala in particular. Still. trade unions were banned along with political parties for almost 30 years of Panchayat system. It is not affiliated to Nepali Congress party but works closely with former Prime ministers Krishna Prasad Bhattarai.Sher Bahadur Deuba group in particular. six different class organisations including Nepal Labour organisation were created. After the establishment of democracy in the country in 1950. the objective of ensuring the labour welfare remained unfulfilled. if not general federation. As this organisation was controlled by the system and also that the central body was heavily politicised. In 1960 with the dissolution of multiparty democracy in Nepal. With the passage of time. It also granted the freedom of expression and association. They were heavily divided in the line of political ideologies. establishment of a separate labour ministry. The ideology of NTUC was based on democracy.

Fax: 527469.TWARO Financial Employees' Union of Nepal FIET Nepal Inter-Corporation Employees Union Nepal Teachers' Association IE Nepal Labor Union (Informal Sector Union) IFBWW Nepal Transport Workers' Union ITF Nepal Health Professional Association FIET Nepal National Barbers' Union Nepal Leather and Leather Show Workers' Union Nepal Small Hotel and Restaurant Worker's Union Nepal Wood Workers' Union Nepal Electric Workers' Union Nepal Rickshaw Drivers' Union Nepal Building and Construction Workers' Union Nepal Shop Workers' . 1998. Trade Union Federations.TWARO Nepal Carpet Workers' Union ITGLWF . ICONT is affiliated to CPN Marxist-Leninist party (CPN-ML). Chairpersons of the national affiliate unions are additional members. National affiliate union also elects its executive in every four years. Laxman Basnet is President of NTUC. It is affiliated to Communist Party of Nepal Unified MarxistLeninist party (CPN-UML). A small faction splinted from GEFONT formed Independent Confederation of Nepalese Trade Unions (ICONT) on March 14.np International Affiliations: NTUC is the sole federation affiliated to ICFTU in Nepal.com. The meeting of National Council takes place every year. Indra Deo Mishra is Vice-President and Mr. Out of 75 districts of Nepal NTUC has district committees in 57 districts. Tel: 527443. Pushkar Acharya is General-Secretary.Workers’ Association of Nepal (ITWAN). Mr. Box: 5507.ICEM Nepal Tourism and Hotel Workers' Union IUF Nepal Press Union IFJ Nepal Tea Garden Worker's Union IUF Nepal Garment Workers' Union ITGLWF . E-mail: ntuc@mos. Their Affiliates and Areas Covered by Them Nepal Trade Union Congress (NTUC) central committee consists of 21 persons--five executives and sixteen members--all elected by workers’ Congress in every four years. Po. NTUC Affiliated Unions Affiliation with International Trade Secretariat Nepal Factory Labor Congress IMF . The National Committee of NTUC comprises nine subcommittees and five departments. Out of 20 national affiliated unions of NTUC 12 of them are affiliated to different International Labor Secretariats. Address: Nepal Trade Union Congress. Mr.Nepal Independent Workers’ Union (NIHWU) and Trekking Workers’ Association of Nepal (TWAN).

org Website: www. Box: 10652 Man Mohan Labor Building.gefont. All the presidents of National Affiliates are members to Central Committee. Nepal. Then there are . 6 Chiefs of Central Departments. General Federation of Nepalese Trade Unions(GEFONT) The central committee of GEFONT consists of 37 persons.Mechanics Trade Union CUPPEC . Kathmandu. Nepal (CWWD) Central Women Workers' Department GEFONT works closely with ILO.NTUC is working closely with FES. Email:info@gefont. advisors and experts but not more than 25 percent of the total elected members.org GEFONT Affiliated Trade Unions Affiliation with International Trade Secretariat NIWU-Nepal Independent Workers Union TGWUN-Independent Textile & Garment Workers' Union of Nepal ITWAN-Independent Transport Workers' Association of Nepal NICWU-Nepal Independent Carpet Workers' Union NIHWU-Nepal Independent Hotel Workers' Union UNITRAV.Nepal Independent Food & Beverage Workers' Union NICIWU . The National Congress proportionally elects delegates from the National Affiliates and sends to National Council. FES. 10 Chairpersons of Zonal Committees. National Committee is composed of chairman (Mr. GEFONT Plaza. Binod Shrestha) 3 regional coordinators. Election takes place every four years. Asia Monitor Resource Center (Hong Kong).Central Union of Painters. There are five regional vice-presidents from five Development Regions. Plumbers. and Treasurer (Mr.Union of Trekking.Nepal IFBWW IGCUN. National Council consists of proportionally elected members from each of the affiliates. Electro & construction Workers. Putali Sadak. which includes one woman as additional one. DANIDA. Address: General Federation of Nepalese Trade Unions (GEFONT Po. Democratic Confederation of Nepalese Trade Unions (DECONT) Central Committee comprises 29 elected members and two nominated by the President in every four years. Mukund Neupane).Nepal ITPWUN-Independent Tea Plantation Workers' Union of Nepal IPWUN .Nepal Rikshaw-Pullers' Union FAWN .Federation of Agricultural Workers.Independent Garbage Cleaners' Union of Nepal NIFBWU .Independent Press Workers' Union of Nepal NATU.Nepal Auto . Bishnu Rimal). full time activists. Tel: 248072. Asia-Pacific Workers’ Solidarity Links. etc. Fax: 248073. JILAF and ILO. Travel & Rafting Workers . and 15 Elected Members of National Affiliates. Secretary-General (Mr.Nepal Independent Chemical & Iron Workers' Union ICEM NRPU.

district and unit committees at enterprise levels. Rama Paudel and General-Secretary is Mr. .  Nepal Trade Union Federation (NTUF) affiliated to CPN-Democratic. ILO. Address: Democratic Confederation of Nepalese Trade Unions.  All Nepal Trade Union Congress (ANTUC) affiliated to CPN-Mashal of Mohan Bikram Singh. DECONT works closely with FES.com. Raut. Email: udecont@wlink. Khila Nath Dahal. Box: 13440. DECONT president is Mr. Po.com/decont DECONT Affiliated Trade Unions Affiliation with International Trade Secretariat Nepal Carpet Workers' Union Construction and Allied Workers' Union of Nepal (CAWUN) IFBWW Agricultural Workers' Union of Nepal Nepal Transport Workers' Sabha Nepal Hotel Workers' Union Garment Workers' Union of Nepal ITGLWF Nepal Custom and Airport Workers' Union PSI Nepal Film Workers' Union PSI Barbers' Union of Nepal Nepal Commercial Workers' Union Nepal Rickshaw and Cart Workers' Union Nepal Small Hotel and Restaurant Workers' Union Nepal Printing Press Workers' Union* Nepal Factory Workers' Union* Nepal Automobile Workers' Union* Democratic Employees' Union of Banking and Financial Institutes of Nepal* Democratic Health Workers' Union of Nepal* Democratic Press Union-Nepal* *Unions under registration process.np Website: http://www25. Nepal. Tel and Fax: 488486 Kathmandu. These Unions are:  All Nepal Trade Union Congress (ANTUC) affiliated to CPN-Unity Centre. DANIDA and in the process of working with PSI. Rajendra B. Besides these three confederations. there are other trade unions affiliated to smaller political parties but not registered with the Department of Labor. Vice-President is Ms.brinkster.

 All Nepal Democratic Free Trade Union (ANDFTU) affiliated to Rastriya Prajatantra Party (RPP). self-employment or service sector can also form a union if they have 500 members and enter into agreement for this purpose.575 members whereas NTUC and DECONT 200. The multiplicity of union has a mixed result. both positive and negative in the labour movement of Nepal. various studies show that GEFONT is the strongest union in terms of membership as it covers roughly 310. some of which are supported by international organisations. At enterprise level. However. Trade Unions in Nepal are economically very weak. occupational health and safety programmes (fixed and mobile). Five thousands members from similar type of enterprise can enter into contract and can form a union. Despite their limited resources. such as trade. education (both formal and informal).  Nepal Revolutionary Workers’ Union (NRWU) affiliated to Nepal Workers and Peasants party of Comrade Rohit. formation of union requires 25 percent of the total members and a minimum of 10 persons. GEFONT has a stronghold in carpet. they have been able to conduct many programmes. corporate and press unions. trekking. training (both training of trainees and trainers). DECONT’s performance in CBA election has yet to be seen as it is established only two years back so is the case with ICONT which is a break away of GEFONT about two years ago. garment. at least. Positive in the sense that it has covered different areas viewed from unionisation process which otherwise would have remained untouched and negative in the sense that this has weakened the strength of workers resulting in poor organisation and bargaining power. the history of trade unions in Nepal is not very old which dates back only to a decade.000 respectively. campaigning against the use of child labour and some regular and occasional publication. Trade unions have achieved a lot. Nepal Trade Union Centre (NTUC) affiliated to CPN-Marxist. commerce. campaigning for the unionisation of informal sectors. and affiliated with CPN Marxist-Leninist Party. lots of unions do exist. The number of paid members is very low as compared to the unpaid members. These programs mainly include.000 and 50. Union Activities As stated earlier. Fifty-enterprise level union can form a National Level Union. Those outside enterprises. Membership There is no precise account of membership of the unions. In informal and agriculture sectors 5000 members from 20 districts (not less than 100 person from each district) are required to form a union. Both GEFONT and DECONT are active in informal sectors and blue -collar workers while NTUC is strong in White-collar workers. Despite this. While 10 national level unions out of which 6 should be from organized sector can form Trade Union Federation. Process of Union Formation There are three tiers of Union. transport and small hotel unions in Collective Bargaining Agreement (CBA) election and NTUC is powerful in financial. to impart the .

Low productivity 4. some of whom employed family labourers and or a few hired workers. low skill. Free entry and exit of the workers 2. which utilise a low level of technology and skills. Until now. artisans. such as underemployment. have little or no access to organised markets to credit institution. tenant. the government of Nepal has amended the Labour Act 2048 under which a national union can be formed and this union can be affiliated to the general federation. the unionisation process is on rise in the organised sector. and 2. share croppers. At present. fishermen. This also exactly applies to the Nepalese informal sector. DECONT and GEFONT) are trying to form union in this sector and most likely they will be able to register it in the Department of Labour. The Unorganised Sector Un-organised sector. But the procedure is not an easy task. 1.Self employed persons. 1. All the major trade union federations (GEFONT. which operate at a low level of productivity. Wage earners self employed persons are those who work with their family or with the help of occasional outside labour such as small owner cultivators. popularly known as informal sector can be defined in the Nepalese context as those sectors employing less than 10 employees/ workers. Low scale of operation. to formal education and training institution or to many public services and amenities". They are also strongly lobbying for the social security bills. 111 . Based on the above definition. Informal workers are unprotected. Low capital intensity and 5. However recently. self employed producers in urban areas. which generally provide very low and irregular income and highly unstable employment to those who work in them. the Nepalese informal sector can be divided into two broad categories. it has ratified the following seven conventions:  Discrimination ( Employment and Occupation) convention No. Independent union in this sector is therefore out of the question. because if they call strike for a day they have to starve the another day as they have nothing in store. rikshaw pullers etc. They are informal in the sense that they are unregistered and unrecorded in official statistics and studies. low income. street vendors. They have no bargaining power and ‘strike’ also no longer remains their weapon. The common characteristics of this sector are. Low income 3. economic and social pressure.knowledge about trade union rights and duties to the workers. whereas wage earners are those who operate on a casual basis. as it requires 5000 workers at least 100 from each of the 20 districts. But even then the question of survival remains there given the temporary nature of the work and the work place. And. They suffer from many handicaps. Nepal & Core Labour Standards Nepal became the member of International Labour Organisation in 1966. which operate with very little capital or none at all. which has already been tabled in the parliament. The ILO defines this sector as " comprising small scale units largely of individuals. for simplicity. recently amended Labour Act has opened up the scope of union formation even in the unorganised sector which is also the outcome of unified efforts of the unions. deprived of legal facilities and other social security measurers which most of the workers of organised sectors enjoy. Consequently. But whether all these will be translated into reality is a matter of wait and see especially in a condition where both informal sector workers as well as employers are totally ignorant of the trade union principles and philosophy. DECONT and NTUC) are concentrating their efforts to form union in the agriculture sector. The new provision has also made it possible that a total of 500 self-employed workers can form a national union. animal husbandry. Despite this situation the newly amended Act has broadened the scope of trade union operation as it also brings the agriculture labourers into the mainstream of union. no access to resources and as this sector is covered by labour legislation. and the workers are vulnerable to various political. all the three general federations (NTUC.

According to the Labor Ministry. The government is insensitive and has not shown its sincerity for the effective implementation of these standards by introducing them in appropriate legislation. 74 per day while children will receive Rs. His Majesty’s Government had. in accordance with the Labor Act 1992 and on the recommendation of the committee formed to fix the minimum wages. adult workers working on a daily basis is entitled to receive Rs.50 per hour). 1. In order to evaluate the implementation of these ratified conventions. labour minister. UNICEF. District Development Committee can also increase the amount of minimum wage based on their capacity.450 per month. Equal Remuneration Convention no. Rs. 60 per day. The Foundation stamps its logo on the carpet being exported abroad for which exporters have to pay 0. 1. the Government of Nepal has established a separate ILO Section under Department of Labour as per Article 22 of ILO convention. 1. 1995 with the support of GTZ.  Minimum Age Convention 138. The money thus raised is donated to the foundations of countries like Nepal. HMG Nepal fixed minimum wage for agricultural workers. the implementation aspect of ratified standards are so weak that there are a number of cases where these have been violated by the parties involved (tripartite) especially from the Government and the employers side. Trade Unions are also lobbying with the government for the ratification of conventions 29. Minimum Wage For Workers In January 2000.500 for semi-skilled. The above-mentioned minimum wage also includes an additional dearness allowance of Rs. 500 for children. 7. 100  Minimum wage Fixation Convention No. 131  Weekly Rest convention No. 666 for adults and Rs. On April 25.25 percent while importers 1 to 2 percent of the cost of carpet. India. FES and Trade Union Partners Organisational Relationship . a worker gets Nrs. and AFFLI with the objective of issuing licence to those producing child labour-free carpet and promoting child rights including their education and health facilities as well as the rehabilitation of the children working in carpet factories. the minimum wage for unskilled labourer has been fixed at Rs. 144  Right to Organise and Collective Bargaining Convention No. NTUC. Nepal Rugmark Foundation This Foundation was established on December 5. Nepal Trade Union Congress recently organised a meeting where parliamentarians. 1. 98 and. party members and even prime minister (all from Nepali Congress only) were invited which aimed at sensitising them for the ratification of these labour standards. 60 per day (Nrs. However. Rs. Pakistan etc. fixed the minimum wages for workers and employees working in institutions other than the tea industries where the act is yet to be enforced.610 for skilled and highly skilled and Rs. such as transport. 14  Tripartite Consultation Convention No. Carpet exporters of 108 institutions and 375 factories are affiliated to this foundation. In this connection. 87 and 105. Most of the labour laws pay attention only to the permanent and temporary workers and not to the contract workers and workers working in other areas. Accordingly. Likewise.144 for child workers. mining and construction.

2000 and meeting with all trade union partners. Kerbusch in 1998 to NTUC. Ernst J. FES has been co-operating with DECONT in carrying out a number of Leadership Empowerment Training Programmes. Chairman. Democratic Confederation of Nepalese Trade Unions (DECONT) FES was the first International Organisation to join hands with DECONT after its formation as a general federation. health and safety. two years back.  Visit of Mr. FES has been supporting it and also its affiliates (Financial Employees Union of Nepal and Nepal Press Union) for the last one decade in the following areas: Capacity Building  Various Training Manuals for trainees and trainers  Publication of simplified version of Trade Union Act and Labour Act  Translation of various trade union materials into Nepali  Seminars on issues of labour legislation. health and safety and leadership empowerment programs. labour economics and impact of structural adjustment on workers . Visit of FES delegation led by Mr. structural adjustment program. Erwin Schweisshelm in Kathmandu in 1997 and meeting with all the trade union partners  Visit of DGB team led by Dr. GEFONT and DECONT office.  Material support in the form of medicine and books  Facilitated participation in various regional and international seminars  Visit of Nepal Press Union delegation led by Mr. IMF and his secretary to Nepal on July 28. It has provided material help (purchase of Medicine) to DECONT run health camp for carpet workers. Nepal Trade Union Congress (NTUC) Nepal Trade Union Congress is the first trade union partner to have co-operation with FES. Besides. General Federation of Nepalese Trade Unions (GEFONT) Capacity Building * Training Manuals on:  Information handling. the then President of NPU to Germany in 1998. collective bargaining. Tara Baral. Klaus Zwickel. documentation and Union office management  Trainers Handbook  Seminars on the issues of collective bargaining.

and legislation making and lasting accommodations. journalistic articles. cultural and legal contexts since the early 1990s. International exposures through participation in international seminar  technical training to GEFONT official on various software of computers and office management  Material support in the form of books  Sharing Experiences and Promoting Understanding at the International Level  Discussion on the subject of mutual co-operation with FES headquarter officials by Mr. Based on Edwards’s framework. On the other hand. and retains the roots of conflicts emanating from its history. their involvement with the employers and the state are related to taking part in collective bargaining. Based on these early findings. . The engagement of the trade unions with the employees are related to the organization and mobilization of the employees’ demands. In the context. employees and the state. chairman of GEFONT and the then Labour Minister  FES Meeting in Geneva ( organised in conjunction with ILO)  Participation of GEFONT delegates to various meeting held in other South Asian countries Post-conflict Nepal is politically and socially fragile. whereas. this paper examines the factors attributable to have shaped the trade union movements within the tourism industry in post conflict Nepal. the lack of uniformity between the theory and the practice of regulation and organization of the trade union movements has sustained effects on the industrial relations in the tourism industry of Nepal. the paper argues that the examination of the labour movements in the tourism industry in post conflict societies such as Nepal is inadequate with the existing industrial relations framework and suggests two additional factors for incorporations. including providing transitional justice and managing post-conflict emotions. employers. social. where several post-conflict societies consider tourism as one of the main economic activities. but also maintaining social harmony. Mukund Neupane. Drawing largely from the published reports. the study is expected to inform the consequences and the effects of the development of relationship between labour politics and tourism. and contribute to the scarce literature on industrial relations and tourism in post conflict societies. The early findings indicate that the trade union movements in the tourism industry in post conflict Nepal has not only been influenced with the aim of securing political power. it focuses on the examination of the interrelationship between the trade unions’ activities and the contemporary political. What is the interlinking nexus between these two factors? Earlier work by Paul Edwards (2003) presented a model to analyse the industrial relations by examining the interrelationships among employees’ representatives. and a few research studies.