Trade unions to advocate for an inflation-based salary hike

Kathmandu, April  29 – Trade unions, associated with Joint Trade Unions Coordination Centre (JTUCC) — are planning to advocate for an inflation-based salary hike besides the minimum wage criteria for workers.

 

All 11 trade unions, including three major ones — Nepal Trade Union Congress-Independent (NTUC-I), All Nepal Trade Union Federation (ANTUF), and General Federation of Nepalese Trade Unions (GEFONT) — have accepted the concept, said president of NTUC-I Lakshman Basnet.

 

Trade unions are bargaining for an inflation-based policy, he said, adding that employers must hike the salary as per the inflation rate. At present, inflation is at around 10 per cent according to Nepal Rastra Bank. Last year, average inflation was one per cent below the current rate.

 

Similarly, bargaining for minimum wage will continue in private sector industries based on the labour law. The Labour Act 1992 has a provision to review the minimum wage every two years. A tripartite committee of trade unions, employers and government representatives had set a monthly minimum wage of Rs 6,200 for workers, on March 24, 2011. The committee had set the minimum wage for daily workers at Rs 231.

 

The current minimum wage is insufficient to survive in towns and its suburbs, so we are demanding a hike in minimum wage, said president of ANTUF Shalikram Jammakattel. “The minimum wage should be sufficient for a worker and their family to survive,” he said. ANTUF has been demanding a monthly minimum wage of Rs 12,500, while other trade unions have not disclosed the amount that they are bargaining for.

 

The government must set a minimum wage that is sufficient for a family to live in a town. The salary must be enough to live a healthy life, said president of GEFONT Bishnu Rimal. “The government should study the basic cost to live in towns and suburbs before setting the minimum wage because most industries or enterprises are located in these areas,” he added.

 

All trade unions have raised a similar voice for hiking the salary of workers, including civil servants, and formal and informal sector workers according to the inflation rate. JTUCC has reached a consensus to ask for a salary hike according to the price hike rate.

 

JTUCC has raised the issue of starting social security schemes in at least three areas — accidents, health care and maternity, and pension.

 

The government had given an assurance to start the schemes in fiscal year 2011-12, but due to lack of social security law the schemes have not been started yet. The Social Security Fund has about Rs four billion collected from formal sector workers since 2008-09.

Source: (Himalayan News Service)