The private sector has shown serious concern over the closure of Surya Nepal garment unit.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Nepalese Industries (CNI) both said that closure of Biratnagar-based garment unit of the largest tax payer following prolonged labour dispute is only a tip of the iceburg.

“Industrial sector has been facing various challenges lately,” the umbrella organisation of private sector, said. The garment unit, which used to produce John Players and Springwood brand was closed on Tuesday after a prolonged strike by the militant trade union workers — who took hostage of the management staff — for ....... days.

“The garment unit of Surya Nepal has been closed when the company was planning for an expansion,” the FNCCI said.

On one hand the government has not been able to create condusive investment environment and on the other, the UCPN-Maoist affiliated All Nepal Trade Union Federation (ANTUF) had asked to provide salary for the ‘illegal strike’ period taking hostage of management staffs of the garment unit of Surya Nepal forcing it to close the garment unit.

The three major trade unions – ANTUF, Nepal Trade Union Congress (NTUC) affiliated to Nepali Congress and General Federation of Trade Unions of Nepal (Gefont) affiliated to CPN-UML — and the FNCCI ahd signed and agreement March 24 accepting ‘No Work No Pay’ for illegal strike in the industrial sector. However, a fraction of ANTUF violated the agreement creating industrial disturbance.

Surya Nepal has 59 stake of Indian multi-brand ITC and its closure will spread negative massage to the foreign investor. “Such closure will not only discourage foreign investment but also promote capital flight from the country,” according to CNI.

However, a leader of ANTUF Badri Bajagai — who didnot accept the March 24 agreement between the employers and employees — refused to take the blame of closure.

“Surya Nepal garment unit closure is not the result of workers protests,” he said, adding that blaming workers is the ill mentality of management.

According to him, the dispute had started after the management terminated 20 workers without prior notice. “Surya Nepal has to pay full salary of workers because we have not accepted ‘No Work No Pay’,” he claimed, adding that they will fight against discrimination. But he has no answer how his militant union is going to provide employment to more than 600 workers, who are now unemployed after the garment unit’s closure.

The private sector has asked a tripartiate dialogue to reopen the garment unit of Surya Nepal. “The government, employers and employee must sit together to solve the dispute,” they said, adding that the country needs freign investment. “The government must create an atmosphere, where the garment unit could be reopened and poor labbour-management relations would be improved,” they added.

“If the government and other stakeholders would not be sensitive in building cordial industrial environment, more industries could be closed in the future,” accordint to them, “The government’s ignorance to March 24 agreement is the root cause of the problem. Publication of irrational salary and benefit structure in national Gazette on May 23 unilaterally is the root cause of the dispute.”

The government has hiked minimum salary of workers from Rs 4,600 to Rs 6,200 and daily wages from Rs 190 to Rs 231, apart from not endorsing the two major points – No Work No Pay and observing industrial peace year for next four year — key points of March 24 agreement.

Published on: 19 August 2011 | The Himalayan Times