Surya Nepal, the largest tobacco manufacturing factory of the country
has escaped the risk of immediate industrial shut down after Hetauda
Appellate Court on Thursday issued a stay order against workers´ strike.
The Appellate Court has also summoned the trade union officials for hearing on April 5 to ascertain the rationale behind their demands.
The Maoist-affiliated Nepal Multinational Companies´ Workers Union (NMCWC), which has been pushing the management to raise perks and benefits, had on Wednesday threatened to shut down the industry from Monday if the company did not fulfill its 11-point demands.
Following the union decision, the management moved the court seeking legal remedy, citing the demands placed by the union were not rationale.
"We have deferred our strike for now,” said Beni Prasad Timilsina, president of NMCWC. Talking to Republica on Saturday over phone, Timilsina said the trade union officials will appear before the court as per its order. “We will take decision on our future course of action depending on what the Court says on the issue,” he stated.
Senior officials of Surya Nepal said they had knocked the court´s door because they believed there were ample rooms to resolve the tension through talks.
“We always wanted to settle the problem within the company,” Rabi KC, corporate vice-president of the Surya Nepal said, adding that the management still feels there is scope of reaching an understanding.
Though trade union officials said they are firm on their stance, they admitted the court´s decision will be crucial.
Meanwhile, both the sides have shown flexibility on the demands after the court´s order.
For instance, the management which increased basic salary of its workers few months back by Rs 1,165 has shown flexibility to increase it by further Rs 400 and allowance by Rs 500.
It has also floated that it will increase gratuity by Rs 20,000 for those who serve the company for 20 years and by Rs 120,000 for those serving for 25 years at the time of retirement from existing Rs 180,000. It has also expressed readiness to increase medical expenses from Rs 300,000 to Rs 400,000 for those workers who become the victim of cancer.
“We have exercised maximum flexibility. This is all we can do at this moment,” said KC.
Trade union, for its part, too has reduced the number of its demand to 7 from 11 points. “But we are firm on other demands like raising basic salary by Rs 2,000, allowance by Rs 1,000 and increasing gratuity paid at the time of retirement to Rs 500,000,” said Timilsina.
The union has also refused to let go its demand that seek job guarantee to off springs of staff in case they die while working. “These are our bottom line,” he stated, adding that the union has dropped its demands like raise in medical insurance and compulsory residential quarters for workers.
Settle labor row, FNCCI tells PM
The Appellate Court has also summoned the trade union officials for hearing on April 5 to ascertain the rationale behind their demands.
The Maoist-affiliated Nepal Multinational Companies´ Workers Union (NMCWC), which has been pushing the management to raise perks and benefits, had on Wednesday threatened to shut down the industry from Monday if the company did not fulfill its 11-point demands.
Following the union decision, the management moved the court seeking legal remedy, citing the demands placed by the union were not rationale.
"We have deferred our strike for now,” said Beni Prasad Timilsina, president of NMCWC. Talking to Republica on Saturday over phone, Timilsina said the trade union officials will appear before the court as per its order. “We will take decision on our future course of action depending on what the Court says on the issue,” he stated.
Senior officials of Surya Nepal said they had knocked the court´s door because they believed there were ample rooms to resolve the tension through talks.
“We always wanted to settle the problem within the company,” Rabi KC, corporate vice-president of the Surya Nepal said, adding that the management still feels there is scope of reaching an understanding.
Though trade union officials said they are firm on their stance, they admitted the court´s decision will be crucial.
Meanwhile, both the sides have shown flexibility on the demands after the court´s order.
For instance, the management which increased basic salary of its workers few months back by Rs 1,165 has shown flexibility to increase it by further Rs 400 and allowance by Rs 500.
It has also floated that it will increase gratuity by Rs 20,000 for those who serve the company for 20 years and by Rs 120,000 for those serving for 25 years at the time of retirement from existing Rs 180,000. It has also expressed readiness to increase medical expenses from Rs 300,000 to Rs 400,000 for those workers who become the victim of cancer.
“We have exercised maximum flexibility. This is all we can do at this moment,” said KC.
Trade union, for its part, too has reduced the number of its demand to 7 from 11 points. “But we are firm on other demands like raising basic salary by Rs 2,000, allowance by Rs 1,000 and increasing gratuity paid at the time of retirement to Rs 500,000,” said Timilsina.
The union has also refused to let go its demand that seek job guarantee to off springs of staff in case they die while working. “These are our bottom line,” he stated, adding that the union has dropped its demands like raise in medical insurance and compulsory residential quarters for workers.
Settle labor row, FNCCI tells PM
Federation of
Nepalese Chambers of Commerce and Industry, which received a request
from Surya Nepal to settle the labor row, has raised the problem faced
by the industry with Prime Minister Baburam Bhattarai.
“We informed the PM what actually is the problem in the industry and have requested him to take prompt steps to address the labor tension in one of the largest multinational companies of the country,” said Vaidya.
Referring that Surya Nepal, a subsidiary of ITC Ltd of India, had faced ill-fated closure of its garment unit in 2011 due to labor stir, Vaidya said the government must intervene into its case immediately, particularly as situation in the industry remains volatile.
“It is unfortunate that our industrial sector continues to face grave problems due to rigid labor law and irrational demands coming from the workers,” he stated.
FNCCI has urged the government to take concrete steps to reform labor law if it wants to convince investors that the country has more favorable environment when it celebrate Investment Year in fiscal year 2012/13.
According to Vaidya, PM assured him of taking sincere steps to address Surya Nepal´s problem.
“We informed the PM what actually is the problem in the industry and have requested him to take prompt steps to address the labor tension in one of the largest multinational companies of the country,” said Vaidya.
Referring that Surya Nepal, a subsidiary of ITC Ltd of India, had faced ill-fated closure of its garment unit in 2011 due to labor stir, Vaidya said the government must intervene into its case immediately, particularly as situation in the industry remains volatile.
“It is unfortunate that our industrial sector continues to face grave problems due to rigid labor law and irrational demands coming from the workers,” he stated.
FNCCI has urged the government to take concrete steps to reform labor law if it wants to convince investors that the country has more favorable environment when it celebrate Investment Year in fiscal year 2012/13.
According to Vaidya, PM assured him of taking sincere steps to address Surya Nepal´s problem.
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