Govt intervenes in Surya Nepal dispute

In the run up to the official launch of the Investment Year in mid-July, the government has intervened in the labor dispute at Surya Nepal, a multinational company, and asked both the management and trade unions to resolve the tension through dialogue.
The instruction was given during a tripartite meeting called by the Department of Labor (DoL) on Tuesday, which was also participated by representatives of the Federation of Nepalese Chamber of Commerce and Industries (FNCCI), the largest umbrella body of the private sector.
Although the meeting comprised government officials, members of the management of Surya Nepal and trade union leaders, it failed to put an end to the dispute, which has been affecting 66 percent of company´s production since the last few days.
However, the DoL-led meeting managed to ask both the parties to sit for another dialogue soon. It also took a decision to take production and dialogue at the factory side by side.
Industrial relations at Surya Nepal has gone into a tailspin after Nepal Multinational Workers´ Union, a Maoist-affiliated trade union, threatened to shut down the factory if its 11-point demand was not fulfilled. Seeking legal remedy, the company moved the court last month.
The Hetauda Appellate Court also gave verdict in favor of Surya Nepal and issued a stay order against workers´ strike. The court gave continuity to the order during another hearing on April 5.
Since the stay order was issued against the strike, the trade union has brought down demands from 11 to 7 points.
According to Beni Prasad Timilsina, president of the NMCWU, next meeting, as recommended by the DoL, would be held in Surya Nepal´s factory in Simara. "We are ready for talks with the management though our demands are still the same," he said.
Rabi KC, corporate vice president of the company said, "I am hopeful that we will have a fruitful dialogue in the factory." But he quickly added the workers´ demands should be logical. He also said the company can only provide benefits and perks to workers if they do not put a question mark on the sustainability of the company.
In case, the next meeting at the factory is unable to resolve the dispute, a committee comprising two persons each from trade unions and management will be formed to hold the final talk.
Surya Nepal´s production down 66pc
The daily production at Surya Nepal has gone down by 66 percent despite a court order that clearly instructed workers not to disturb day-to-day work at the factory, according to Rabi KC, corporate vice president of the company.
However, trade union leaders rejected KC´s claim. "We are working with full efficiency everyday," Devendra Sitaula, senior member of the Nepal Multinational Company´s Workers´ Union said.
According to KC, the factory has capacity of producing 3 million sticks of cigarette per day in normal time.

Maoist trade union threaten to shut down Surya Nepal from Monday

In a fresh case of worsening industrial relations in the country, Maoist-affiliated Nepal Multinational Companies´ Workers Union (NMCWU) at Surya Nepal has threatened to shut down the country´s largest tobacco manufacturing company from Monday, if the management did not fulfill its demands.

The union has submitted 11-point demand to the management. It announced the strike after majority of its members voted to go for the strike in case the management did not heed their demands.

“We have already informed our decision to the labor office and the company management,” said Devendra Sitaula, senior member of the workers´ union, who also took part in talks with the management.

He informed Republica that the workers were demanding the management to raise basic salary by Rs 2,500, double the life insurance cover to Rs 200,000 and pay Rs 1 million in gratuity at the time of retirement. The union has also demanded the management to deposit 2 percent of its annual profit in the workers welfare fund and provide permanent job to next of kin in case the workers died while working.

The union has also demanded with the management to allocate 50 percent of total vacant jobs to the offspring of workers, provide grant to the workers to construct houses and increase the retirement age to 58 from existing 55 years, among others.

Surya Nepal staff said that the workers and the management had sat for rounds of talks in the presence of representatives of local labor office. But the talks failed to settle the differences.

During the talks, the management had offered to pay them Rs 1,600 in addition to perks and benefits they were enjoying now. But union officials refused the offer.
“We want the management to address our demands in a package. We will not agree on a piecemeal deal,” said Sitaula.

Meanwhile, Surya Nepal has knocked on the doors of the Department of Labor as well as Federation of Nepalese Chambers of Commerce and Industry to settle the problem.

Man Bahadur BK, director general of the Department of Labor, said the department has taken up Surya Nepal´s request seriously. “We will forward the request to Labor Relations Improvement Committee and take immediate steps to avoid the looming shutdown,” he added.