Docslide.us Industrial Relation

8/18/2019 Docslide.us Industrial Relation

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INDUSTRIAL [email protected]

UNIT 1 INTRODUCTION

CONCEPT

The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.

“Industry” refers to “any productive activity in which an individual (or a group of individuals is (are engaged”. !y “relations” we mean “the relationships that e"ist

within the industry #etween the employer and his wor$men.”

The term industrial relations e"plain the relationship #etween employees and

management which stem directly or indirectly from union%employer

relationship.

Industrial relations are the relationships #etween employees and employers

within the organi&ational settings. The 'eld of industrial relations loo$s at the

relationship #etween management and wor$ers particularly groups of

wor$ers represented #y a union. Industrial relations are #asically the

interactions #etween employers employees and the government and the

institutions and associations through which such interactions are mediated.

The term industrial relations have a #road as well as a narrow outloo$.

)riginally industrial relations were #roadly de'ned to include the

relationships and interactions #etween employers and employees. *rom thisperspective industrial relations cover all aspects of the employment

relationship including human resource management employee relations and

union%management (or la#or relations. +ow its meaning has #ecome more

speci'c and restricted. ,ccordingly industrial relations pertains to the study

and practice of collective #argaining trade unionism and la#or%management

relations while human resource management is a separate largely distinct

'eld that deals with nonunion employment relationships and the personnel

practices and policies of employers.

The relationships which arise at and out of the wor$place generally include

the relationships #etween individual wor$ers the relationships #etweenwor$ers and their employer the relationships #etween employers the

relationships employers and wor$ers have with the organi&ations formed to

promote their respective interests and the relations #etween those

organi&ations at all levels. Industrial relations also includes the processes

through which these relationships are e"pressed (such as collective

#argaining wor$ers’ participation in decision%ma$ing and grievance and

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dispute settlement and the management of con-ict #etween employers

wor$ers and trade unions when it arises.

,n industrial relations system consists of the whole gamut of relationships #etween

employees and employees and employers which are managed #y the means of

con-ict and cooperation.

, sound industrial relations system is one in which relationships #etween

management and employees (and their representatives on the one hand and

#etween them and the tate on the other are more harmonious and cooperative

than con-ictual and creates an environment conducive to economic e/ciency and

the motivation productivity and development of the employee and generates

employee loyalty and mutual trust.

PURPOSE OF IR

The main o#0ectives of industrial relations system are:%

To safeguard the interest of la#or and management #y securing the

highest level of mutual understanding and good%will among all those

sections in the industry which participate in the process of production.

To avoid industrial on!it or strife and develop harmonious

relations which are an essential factor in the productivity of wor$ers and the

industrial progress of a country.

To raise "rodutivit# to a higher level in an era of full employment #y

lessening the tendency to high turnover and fre1uency a#senteeism.

To esta#lish and promote the growth of an industrial democracy #ased

on la#or partnership in the sharing of pro'ts and of managerial

decisions so that #an individuals personality may grow its full stature

for the #ene't of the industry and of the country as well. To eliminate or minimi&e the num#er of stri$es loc$outs and gheraos

#y providing reasona#le wages improved living and wor$ing

conditions said fringe #ene'ts. To improve the economic conditions of wor$ers in the e"isting state of

industrial managements and political government. ociali&ation of industries #y ma$ing the state itself a ma0or employer

2esting of a proprietary interest of the wor$ers in the industries in

which they are employed.

The healthy industrial relations are $ey to the progress and success. Their

signi'cance may #e discussed as under 3


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Uninterru"ted "rodution 3 The most important #ene't of industrial

relations is that this ensures continuity of production. This means

continuous employment for all from manager to wor$ers. The resources are

fully utili&ed resulting in the ma"imum possi#le production. There is

uninterrupted -ow of income for all. mooth running of an industry is of vitalimportance for several other industries4 to other industries if the products

are intermediaries or inputs4 to e"porters if these are e"port goods4 to

consumers and wor$ers if these are goods of mass consumption.

Redution in Industrial Dis"utes 3 5ood industrial relations reduce the

industrial disputes. 6isputes are re-ections of the failure of #asic human

urges or motivations to secure ade1uate satisfaction or e"pression which are

fully cured #y good industrial relations. tri$es loc$outs go%slow tactics

gherao and grievances are some of the re-ections of industrial unrest which

do not spring up in an atmosphere of industrial peace. It helps promoting co%

operation and increasing production.

$igh %orale 3 5ood industrial relations improve the morale of the

employees. 7mployees wor$ with great &eal with the feeling in mind that the

interest of employer and employees is one and the same i.e. to increase

production. 7very wor$er feels that he is a co%owner of the gains of industry.

The employer in his turn must reali&e that the gains of industry are not for

him along #ut they should #e shared e1ually and generously with his wor$ers.

In other words complete unity of thought and action is the main achievement

of industrial peace. It increases the place of wor$ers in the society and theirego is satis'ed. It naturally a8ects production #ecause mighty co%operative

e8orts alone can produce great results.

&ental Revolution 3 The main o#0ect of industrial relation is a complete

mental revolution of wor$ers and employees. The industrial peace lies

ultimately in a transformed outloo$ on the part of #oth. It is the #usiness of

leadership in the ran$s of wor$ers employees and 5overnment to wor$ out a

new relationship in consonance with a spirit of true democracy. !oth should

thin$ themselves as partners of the industry and the role of wor$ers in such a

partnership should #e recogni&ed. )n the other hand wor$ers must recogni&e

employer’s authority. It will naturally have impact on production #ecause theyrecogni&e the interest of each other.

Redued 'astage 3 5ood industrial relations are maintained on the #asis

of cooperation and recognition of each other. It will help increase production.

9astages of man material and machines are reduced to the minimum and

thus national interest is protected.


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Thus it is evident that good industrial relations are the #asis of higher

production with minimum cost and higher pro'ts. It also results in increased

e/ciency of wor$ers. +ew and new pro0ects may #e introduced for the welfare

of the wor$ers and to promote the morale of the people at wor$. ,n economy

organi&ed for planned production and distri#ution aiming at the reali&ation of social 0ustice and welfare of the massage can function e8ectively only in an

atmosphere of industrial peace. If the twin o#0ectives of rapid national

development and increased social 0ustice are to #e achieved there must #e

harmonious relationship #etween management and la#or.

ACTORS IN IR

E%"lo#ers:

7mployers possess certain rights vis%%vis la#ors. They have the right to hire and're them. ;anagement can also a8ect wor$ers’ interests #y e"ercising their right to

relocate close or merge the factory or to introduce technological changes.

E%"lo#ees( 9or$ers see$ to improve the terms and conditions of their

employment. They e"change views with management and voice their grievances.

They also want to share decision ma$ing powers of management. 9or$ers generally

unite to form unions against the management and get support from these unions.

)overn%ent: The central and state government in-uences and regulates industrial

relations through laws rules agreements awards of court ad the li$e. It also

includes third parties and la#or and tri#unal courts.

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PLURA

LIST PERSPECTI*E of IR

In pluralism the organi&ation is perceived as #eing made up of powerful and

divergent su#%groups % management and trade unions. This approach sees

con-icts of interest and disagreements #etween managers and wor$ers over

the distri#ution of pro'ts as normal and inescapa#le.


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Independent e"ternal ar#itrators should #e used to assist in the resolution of

disputes.

=nion recognition should #e encouraged and union representatives given

scope to carry out their representative duties.


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=nlawful dismissal case cannot #e #rought directly to the Industrial refrigeration

general mechanics and auto mechanics. Training programmes are also geared to

industrial and vocational training in wood wor$ing metal wor$ing leather wor$ing

general 'tters tailoring and so on. The programmes on entrepreneurial andmanagement development and the colleges of higher learning provide educated

persons to #e groomed for managerial positions on #oth pu#lic and private sector

industries.

Industrial Relations

+epal has a history of maintaining good industrial relations during the past few

decades when industrial activity gradually e"panded in the country. Ga#our unrest

loc$outs and stri$es do not occur as fre1uently as they do in other developing

countries. The Ga#our ,ct lays down guidelines and procedures for the settlement of disputes #etween employers and employees. These guidelines and procedures

provide a favoura#le environment for the harmonious development of industrial

relations.

Legal Fra%e0or


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The Ga#our ,ct ?HHB lays down the legal framewor$ and the #asis for the rules

regulations and guidance on the proper management of any esta#lishment

employing ?A persons or more. It deals with matters relating to employment and

security of employment wor$ing hours and minimum wages welfare of employeesemployer employee relations and the settlement of la#our disputes. Ga#our

Regulation ?HHC complements the Ga#our ,ct with further clari'cation in issues

such as security of profession and service remuneration and welfare provision

health cleanliness and safety etc. The !onus ,ct of ?HD as amended

su#se1uently provides a legal #asis for the payment of #onus to the wor$ers and

employees of factories and commercial esta#lishments.

'ages and Salaries

The minimum wage rates set #y the government are comparatively lower than thegoing wage rates for wor$ers in ,,R< and other countries of the region. alaries of

middle management e"ecutives technical grade o/cers engineers and other

professionals are generally lower than in other developing countries. Jermanent

employees of a factory should contri#ute ?A percent of the monthly salary to a

provident fund and the management should ma$e a matching contri#ution.

5ratuities are paya#le to wor$ers who have wor$ed for over C years.

'oring $ours2 $olida#s

+ormal wor$ing hours are '"ed at DK hours per wee$ K hours a day.


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Remuneration

Eealth and safety

9elfare arrangements

pecial provisions applica#le to special esta#lishments


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)t least *& Enterprise Levels Trade Unions or 5000 agriculture labourers constituting one hundred

labourers per district drawn from a minimum of twenty districts or 5000 workers from similar

nature Enterprise* , may constitute a Trade Union ssociation by mutual agreement .

otwithstanding anything contained in u!"section #$% at least 500 workers, and self!employed

workers working in similar nature industries occupation from outside may constitute Trade Union

ssociation by mutual agreement ".

$. ) maximum of four associations constituted under this su!"clause shall !e made eligi!le while

esta!lishing Trade Union /ederation under )rticle * of this )ct0.

(. In order to register a Trade Union )ssociation constituted pursuant to u!"section #$% an application

in the prescri!ed form !y the official recommended !y the working committee along with a copy of

mutual agreement, the constitution of the trade union, prescri!ed fee and other prescri!ed

particulars should !e su!mitted to the 'egistrar.

-. The 'egistrar after receiving an application pursuant to u!"section #(% if finds complied with the

)ct shall register the Trade Union )ssociation within $* days from the date of receipt of the

application or from the date of receipt of additional particular as demanded pursuant to section +and provide certificate to the applicant in the prescri!ed form

1. otwithstanding anything contained in the u!"section #$% no Trade Union of the Enterprise shall !e

eligi!le to !e mem!er of more than one Trade Union )ssociation at the same time.

*. )fter the registration of a Trade Union )ssociation pursuant to u!"section 1 its registration shall

remain valid for one year even if the num!er of mem!ers of such Trade Union )ssociation declines

upto $& percent.

5. Registration of the Trade Union ederation:

)t least ten Trade Union )ssociations may constitute a Trade Union /ederation !y mutual

agreement.

In order to register a Trade Union /ederation pursuant to u!"section #$% an application in the

prescri!ed form !y the official recommendation !y the working committee along with a copy of

mutual agreement, constitution of the Trade Union /ederation, prescri!ed fee and other particulars

should !e su!mitted to the 'egistrar.

The 'egistrar after receiving an application pursuant to u!"section #(% if finds complied with the

)ct shall register the Trade Union /ederation within $* days from the date of receipt of the

application or from the date of receipt of additional particulars as demanded pursuant to ection +

and provide certificate to the applicant in the prescri!ed form.

otwithstanding anything contained in u!"section #$% no Trade Union /ederation shall !e eligi!le to

!e mem!er of more than one Trade Union /ederation at the same time.

)fter the registration of a Trade Union /ederation pursuant to u!"section #-% its registration shall

remain valid for one year even if the num!er of mem!er of such Trade Union /ederation declines

upto $& percent.

!. Additional Partic"lar ma# be demanded:


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'egarding the registration of a Trade Union /ederation if the 'egistrar considers additional particular

necessary, he may demand the re2uired particulars within 3 days from the date of receipt of the

application for the registration of Trade Union /ederation.

otwithstanding anything contained in ection -, 1 and * no Trade Union shall !e registered unless

the particulars demanded pursuant to u!"section #$% has !een received.

$. Ref"sal of Registration: The 'egistrar may refuse to register a Trade Union in the followingcircumstance4

if necessary particulars are not attached with the application.

if at least (* percent worker of the concerned Enterprise are not the mem!er of the Enterprise Level

Trade Union.

if the name of the Trade Union coincides with the name of Trade Union which has already !een

registered.

if the particulars mentioned in the ection $& of the constitution of Trade Union has not !eenincluded.

$ %A&' Renewal of Trade Union:

#$ Enterprise level Trade Union shall be renewed after every two years and Trade Union ssociation and %ederation shall be renewed after every four years.

&$ other procedures of Trade Union renewal shall be made as prescribed.

()APTER * 3

+peration, -anagement and Recognition of the Trade Union

. A"tonomo"s and (orporate /od#:

The Trade Union shall !e an autonomous and corporate !ody having perpetual succession.

The Trade Union shall have a seal of its own to carry out its activities.

The Trade Union may ac2uire, posses, dispose or manage !y other means of its mova!le property

as person.

The Trade Union may sue or !e sued under it s name as person.

0. +b1ectives:

The 5!6ectives of the Trade Union shall !e as follows4

To engage in economic and social development !y improving the condition of workers.

To make an effort to esta!lish good relationship !etween worker and management.


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To assist in the development of Enterprise !y increasing the productivity of Enterprise.

Try to make the workers dutiful and discipline.

In addition to the o!6ective mentioned in u!"section #$%, the Trade Union )ssociation and Trade

Union /ederation hall have the following o!6ective4"

To conduct activities providing education to the worker.

To esta!lish relation with international institutions for the !enefit of the workers.

To provide necessary advice to 7is 8a6estys 9overnment in formulating the La!our :olicy.

In order to enhance social and economic standard of the workers pu!lish facts !eneficial to

the workers !y conducting necessary workshops, seminars etc.

In order to protect and promote the rights of the workers negotiate with 7is 8a6estys

9overnment and take other necessary steps within the existing law.

9(A)* Rights, duties and functions of Trade Union:

'n addition to the functions, duties and rights mentioned in the constitution of Trade Union.

The functions, duties and rights of the Trade Union will be as follows(

To take necessary action and implement necessary programs in order to achieve the Trade

Union ob)ectives mentioned in rticle +ub!section #$ of this ct.

To make the members to participate in the election of the Enterprise -evel uthoried

Trade Union.

To allow the workers to follow the decision made by the Enterprise level uthoried TradeUnion.

9(B)* Right, Duties and Functions of Trade Union Association and Federation:

'n addition to the functions, duties and rights mentioned in the constitution of Trade Union

association and Trade Union %ederation, the function, duties and rights of the Trade Union

ssociation and %ederation will be as follows(

To take necessary actions and implement necessary programs in order to achieve the

ob)ective of Trade Union ssociation and Trade Union %ederation as mentioned in rticle

+ub!section &$ of this ct.

To make members to participants in the election of Trade Union ssociation and Trade

Union %ederation.

To allow members to follow the decisions of the trade union association and Trade Union

%ederation.

To follow necessary measures to resolve labour disputes by representing the workers in

important and national level policy issues on labour disputes and to negotiate with the

government, various types of /rofessional ssociations and %ederation and Enterprises.


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To negotiate with the concerned enterprises and management on behalf of the Enterprise

-evel Trade Union.

To establish and operate different type of funds for the interest and welfare of workers.

To make public the oppression on workers and Trade Union and to issue necessary warningto the concerned enterprises for the same.

2. (onstit"tion:

The following particulars shall !e included in the ;onstitution of the Trade Union4"

ame and address of Trade Union<

5!6ective of the esta!lishment of Trade Union<

:rocedure of the formation of the working committee as well as the term of office shall !e a

maximum period of four years<

9eneral 8em!ership, the num!er of officials and the mechanism of their election<

:rovision that only a worker, who is a epali ;iti=en and having served continuously for one

year to !e elected for the official post<

:rovision regarding fund of the Trade Union and its auditing<

:rovision regarding inspection and examination of the account of the Trade Union<

:rovision to !ring the vote of no confidence against the officials<

:rovision regarding function, duty, right and meeting of the working committee and the9eneral )ssem!ly of Trade Union<

The procedure of amendment of the ;onstitution of Trade Union<

:rovision regarding dissolution of the Trade Union<

:rovision regarding lia!ility and property of the Trade Union after its dissolution.

(. If any amendment is made in the ;onstitution of the Trade Union, the concerned Trade Union* shallinform the 'egistrar with a copy of such amendment within -* days after such amendment has !een madeand approval of such amendment have to taken from the 'egistrar

22. Recognition of the A"thoried Trade Union:

The )uthori=ed Trade Union shall !e recogni=ed for the collective !argaining with the management

on !ehalf of the workers of )uthori=ed Enterprise Level Trade Union.

$. $#a%> 'f case only one Trade Union is being registered in any enterprise and if no Trade Union is

being registered within three months of the registration, the Trade Union registered at first shall be

regarded as an uthoried Trade Union.


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#b$* The three months period, as being mentioned in #, shall be counted from the date of

operation of this ct.

(. The )uthori=ed Trade Union recogni=ed pursuant to u!"section #$% shall inform to the 'egistrar and

the 8anager within $* days after such recognition has !een extended.

-. The 'egistrar shall provide the certificate of )uthori=ed Trade Union as prescri!ed within $* days

from the date of receipt of notice pursuant to u!"section #(%.

1.> The election procedure of the uthoried Trade Union will be made as presumed.

2. Presentation of (laim:

otwithstanding anything contained in ection 31 #$% of the La!our )ct, (&1? #$@@$% the working

committee of the )uthori=ed Trade Union on !ehalf of the workers may present claims in written

form with the num!er and names of its representative to the management for collective !argaining.

The )uthori=ed Trade Union shall not go on strike in Enterprise or do such action that may assist it

in any manner without completing the procedure mentioned in ection 3+ of the La!our )ct, (&1?#$@@$%.

23. 6"ration of 7alidit# of the Recognition of the A"thoried Trade Union:

The duration to !argain collectively on !ehalf of the workers of the )uthori=ed Trade Union recogni=ed

pursuant in ection $$ with the management shall remain valid for two years from the date of issue of the

certificate !y the 'egistrar pursuant to u!"section #-% of the same ection.

owever, in case the registration of the uthoried Trade Union is being annulled or such Trade Union is

dissolved, another uthoried Trade Union shall be elected within the three months of the dissolution*.

()APTER * 4

24. Appointment of the Registrar:

7is 8a6estys 9overnment shall appoint 'egistrars as necessary for the registration of the Trade

Union in accordance to this )ct.

otwithstanding anything contained in u!"section #$% 7is 8a6estys 9overnment may, !y

notification pu!lished in the epal 9a=ette, authori=e as necessary any other officer to use the

power of 'egistrar.

25. "nctions, 6"ties and Po8er of the Registrar:

The functions, duties and power of the 'egistrar shall !e as follows4"

To register the Trade Union.

To maintain and keep up to date 'egister Aook with detailed particulars of the registered Trade

Union and other related particulars.

To demand additional particulars necessary for the registration of the Trade Union.


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To take necessary action if the particulars, report or other documents re2uired to !e su!mitted !y

the Trade Union under the )ct is not su!mitted or if false particulars are su!mitted.

To specify the procedure of election of the )uthori=ed Trade Union.

2!. Register /oo9:

The 'egistrar shall maintain a separate 'egister Aook to keep upto date the particulars, records etc. of the

Trade Union.

()APTER5

$3. #$% The trade Union shall have its own separate fund and the fund shall contain the following amounts4"

The amount o!tained from the mem!ership fee.

The amount o!tained from the national organi=ations in the form of )id or 9rant.

The amount o!tained from any other sources.

#(% )ll expenses incurred in the name of Trade Union shall !e !orne out from the /und.

#-%The amount to !e contained in the fund pursuant to u!"section #$% shall !e deposited !y opening an

account in any ;ommercial Aank within the Bingdom of epal.

2. Acco"nts and A"diting:

The accounts shall !e maintained as mentioned in the ;onstitution of the Trade Union.

The accounts maintained pursuant to u!"section #$% shall !e audited !y the auditor appointed !y

the 9eneral 8eeting of the Trade Union.

()APTER * !

-iscellaneo"s

20. -erging of the Trade Union:

$. 0 'f two or more than two Trade Unions like to merge into one Trade Union and if the ma)ority of

the 1eneral ssembly 2embers of Trade Union cast vote in favour of such merging, such Trade

Union may constitute a new Trade Union by mutual agreement.

(. In order to register a new Enterprise -evel3 Trade Union constituted pursuant to su!"section #$%,the officials authori=ed !y the working committee shall apply to the 'egister in the specified form

with a copy of the agreement mutually entered into !y the merged Trade Unions, the ;onstitution of

the Trade Union, prescri!ed fee and other prescri!ed particulars.

. ;nformation of the change in name:

If any Trade Union changes its own name the 'egistrar shall !e informed of such changes within $* days of

the change of name.


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2. Effect of change in name, merging or dissol"tion:

o effect shall occur in the power to !e achieved or o!ligation to !e fulfilled !y such Trade Union

only !y the reason of change in name of Trade Union.

The merging of two or more than two Trade Unions into only one Trade Union or the dissolution of Trade Union in other Trade Union shall have no effect in the o!ligation to !e performed !y such

Trade Union.

.< +bligation to be f"lfilled regarding contracts:

It shall !e the duty of such Trade Union and the party to the contract entered with the Trade Union

to fulfill the o!ligation of the contract entered into !y the Trade Union itself or !y the authori=ed

officials on !ehalf of the Trade Union.

If a case has to !e filed relating to disputes arising out of the agreement reached !etween the Trade

Union and the management as per su! clause #$% the case should !e filed at the La!our ;ourt with

in thirty days of such dispute or the cause for litigation.

3. =o (ase to be filed:

)fter complying with the procedure of this )ct or the La!our )ct, (&1?#$@@$% if the )uthori=ed EnterpriseLevel Trade Union or the 5fficial of such Trade Union0, while doing anything in the context of collective!argaining have affected !y its action to the Enterprise, no case shall !e filled against Trade Union or theofficials in any court regarding such action.

3%a&' =o transfer or promotion:

E3cept in special circumstances, the officials of the Enterprise -evel Trade Union shall not be transfer or promoted without their consent.

4. Presentation of Ann"al Report:

The Trade Union shall su!mit to the 'egistrar an annual report of each year within three months

from the end of fiscal year !y auditing its account !ooks showing clearly all property, loan including

o!ligations of the Trade Unions.

In the annual report pursuant to u!"section #$% the total num!er of mem!ers saying charges to

the Trade Union and the particulars of the officials changed during the year shall also !e included.

5. (ancellation of the Registration:

the 'egistrar shall cancel the Trade Union registered under this )ct on the following circumstances4

If the Trade Union applies an application to the 'egistrar for the cancellation of its

registration.

If it is proved that the registration of the Trade Union has !een made !y mistake or

fraudulent act.

If anything is done contrary to this )ct or the 'egulations made under this )ct.


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3

(. 0 4hen canceling the registration of any Trade Union under the condition mentioned in part b$ and

c$ of +ub!section #$ the egistrar shall give notice to the concerned Trade Union in written form

asking clarification within fifteen days on the reason for the cancellation.

-. The registrar can cancel the registration of such trade unions if the trade union fails to submit

clarification letter with in the specified period under sub clause &$ or the submitted clarification

letter is found to be not satisfactory and not according to the law.

!. +fficials of Trade Union Association and ederation:

otwithstanding anything contained elsewhere in this )ct, the Trade Union )ssociation and Trade Union

/ederation shall appoint from their working committees not exceeding $& percent and (* percent

respectively of the total num!er of officials who are engaged in the protection and promotion of the rights of

the worker, in the officials of the Trade Union )ssociation and Trade Union /ederation.

(+#a%> Trade Union epresentation( 4hile nominating the representatives from the Trade Union or

representing the Trade Unions, where there are more than one Trade Union related to the sub)ect matter,is 2a)esty6s 1overnment shall nominate or represent the Trade Unions on a proportionate or rotationary

basis.

$. =otice of 6issol"tion of Trade Union to be provided:

If a Trade Union is to !e dissolved in accordance with the ;onstitution, the notice of such dissolution

has to !e provided to the 'egistrar !y the concerned official with reason.

)fter receiving the notice of dissolution of trade Union pursuant to u!"section #$% the 'egistrar

shall register such notice only in the case of the Trade Union which has !een dissolved in accordance

with the ;onstitution.

(3#a%> 'nstituting of 7ase and -imitation( 8ther than things stated otherwise in this ct, if a

case has to be filed against any person on the ground of contradiction to this ct or the

regulations made under this ct, the case has to be filed within three months from the date

of contradiction of the ct or from the date of cause to file such case.

. +ffence > P"nishment:

0 'f any official, member or staff member of Trade Union misappropriate the property of the

program or the fund operated by the Trade Union or to cause loss and damage to such property,the -abour 7ourt may order such officials, members or staff members to compensate the proporty

lost or damaged and fine to the e3tent of s.50009! or one year:s imprisonment or both.

If the particulars, reports, notices, or any other documents to !e su!mitted on !ehalf of the Trade

Union in accordance with this )ct or the rules under this )ct is not su!mitted or false particulars are

su!mitted, the 'egistrar may fine the concerned official to the extent of 'upees five hundred.

0. Appeal:


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)n appeal to the case initially decided !y the La!our ;ourt in accordance with this )ct shall lie to the

)ppeal ;ourt.

)n appeal on the order made !y the 'egistrar under this )ct may !e filed to the La!our ;ourt.

)n appeal may !e filed within -* days from the date of such proceeding and decision made !y theLa!our ;ourt or the order made !y the 'egistrar.

3. ?pecial Po8er of )is -a1est#@s overnment:

7is 8a6estys 9overnment may give necessary order or direction to restrict such activities of Trade Union if

the activity of the Trade Union seem to create extra"ordinary situation there!y distur!ing the peace and

order or to go against the economic development of the country.

32. Po8er to rame R"le:

7is 8a6estys 9overnment may frame necessary rules to carry out the purpose of this )ct.

> )dditions made !y the /irst )mendment.

0 ;hanges made !y the /irst )mendment.

x Excluded !y the /irst )mendment.

LA-OUR AD&INISTRATION NEPAL

Department(s) in charge of Labour Inspection

The Ministry of Labour and Transport Management is responsible for labour inspection. The ministry is divided into

two divisions, two departments and one directorate. These are: (1) the mployment !romotion, "dministration and

Transport Management #ivision which includes: $oreign mployment, Monitoring and %nspection &ection' () the

!olicy !lanning and Labour elations' (*) the #epartment of Labour and mployment !romotion' (+) the #epartment

of Transport Management and () the -ocational and &ill #evelopment Training #irectorate. The #epartment of

Labour and mployment !romotion is the central level e/ecution body of labour administration as well as the

coordinating body of all labour offices established in the field. The responsibilities of the department include: following

up the enforcement of labour legislation and coordinating the field office 0ob of labour inspection, occupational safety

and health.

La that co!ers organi"ation and functiona# composition

Labour "ct (2+3), 144


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$cope of #abour inspection

Labour inspection in 5epal, as an institution, is almost ine/istent. There are two categories of staff that control the

application of labour law provisions: labour officers and factory inspectors. $actory inspectors focus on occupational

safety and health, basically checing machinery such as steam generators. Labour officers focus on woring

conditions. %n practice, due to the problem of scarce human resources, factory inspectors are in fact assigned as

labour officers 6 chiefs of the offices 7 and control the application of woring conditions as well.

Loca# di!isions

There are ten labour offices with the tas of supervising, administering and monitoring labour legislation. These

labour offices cover all the administrative regions of the country. &upport provided to labour offices in the fields by the

central level is minimal.

%rogramming and communication

The inspectors set annual targets themselves, but the central authorities demand no targets, which seems to be

rooted in the lac of proper data collection for statistical purposes. 8ut since data is not properly collected, statistics

are not available and planning is therefore ine/istent. !lanning does not have a strategic component to it, and it is a

mere compilation of the wor pro0ected in each of the field offices, based on past e/perience.

9oordination with field offices is an area where efficiency could be improved, (with little resource allocation) starting

with strategic planning.

&urrent reforms

Technical support has been provided by the %L to identify short, medium and long term actions that could be taen

to improve the efficiency and effectiveness of labour inspection.

"mong the recommendations made, we can highlight the creation of a new labour inspectorate with increase

functional responsibilities, labour law reforms, mechanisms to increase the number of labour inspectors, accredited

companies;entities to carry out certain speciali


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%n a number of cases, labour inspectors are assigned to the labour office in the field structure of the labour

administration without any prior e/perience in the field of labour. %t becomes a =learning7by7doing> process to carry out

the duties and e/ercise the powers of labour officers.

*ac+ground reuired

$actory inspectors are engineers by education.

-isits and functions

Tpes of !isits

5;"

o#e of pre!enti!e measures

The ccupational &afety and ?ealth !ro0ect was established under the Ministry of Labour and Transport

Management in 144 with the prime ob0ective of creating the awareness of occupational safety and health among

industrial employers, employees and the concerned officials of the government and thereby improving the conditions

of wor. "mong its ob0ectives is to facilitate regular and organi


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%n Auly 223, there was ongoing discussion on involving the social partners in =certified> inspector programmes in

order to assist the central authority.

IL/ &on!entions ratified

5epal has neither ratified 9onvention 5o. 31 nor 5o. 14.

UNIT 3 TRADE UNIONIS&

CONCEPT OF TRADE UNIONIS&

, trade union is an organi&ation of employees formed on a continuous #asisfor the purpose of securing diverse range of #ene'ts. It is a continuousassociation of wage earners for the purpose of maintaining and improvingthe conditions of their wor$ing lives.

The Trade =nion ,ct ?HB@ de'nes a trade union as a com#ination whethertemporary or permanent formed primarily for the purpose of regulating therelations #etween wor$men and employers or #etween wor$men andwor$men or #etween employers and employers or for imposing restrictivecondition on the conduct of any trade or #usiness and includes anyfederation of two or more trade unions.

This de'nition is very e"haustive as it includes associations of #oth thewor$ers and employers and the federations of their associations. Eere therelationships that have #een tal$ed a#out are #oth temporary and permanent.

This means it applies to temporary wor$ers (or contractual employees as

well. Then this de'nition primarily tal$s a#out three relationships. They arethe relationships #etween the:

0or%en and 0or%en2

0or%en and e%"lo#ers2 and

E%"lo#ers and e%"lo#ers4

Thus a trade union can #e seen as a group of employees in a particularsector whose aim is to negotiate with employers over pay 0o# securitywor$ing hours etc using the collective power of its mem#ers. In general aunion is there to represent the interests of its mem#ers and may evenengage in political activity where legislation a8ects their mem#ers. Tradeunions are voluntary associations formed for the pursuit of protecting thecommon interests of its mem#ers and also promote welfare. They protect the


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economic political and social interests of their mem#ers.

O-5ECTI*ES OF TRADE UNION

Trade unions are formed to protect and promote the interests of their

mem#ers. Their primary function is to protect the interests of wor$ersagainst discrimination and unfair la#or practices. Trade unions areformed to achieve the following o#0ectives:

Re"resentation

Trade unions represent individual wor$ers when they have a pro#lemat wor$. If an employee feels he is #eing unfairly treated he can as$the union representative to help sort out the di/culty with themanager or employer. =nions also o8er their mem#ers legalrepresentation. +ormally this is to help people get 'nancialcompensation for wor$%related in0uries or to assist people who have tota$e their employer to court.

Negotiation

+egotiation is where union representatives discuss with managementthe issues which a8ect people wor$ing in an organi&ation. There may #ea di8erence of opinion #etween management and union mem#ers.

Trade unions negotiate with the employers to 'nd out a solution tothese di8erences. Jay wor$ing hours holidays and changes to wor$ingpractices are the sorts of issues that are negotiated. In many

wor$places there is a formal agreement #etween the union and thecompany which states that the union has the right to negotiate with theemployer. In these organi&ations unions are said to #e recogni&ed forcollective #argaining purposes.

*oie in deisions a6eting 0orers

The economic security of employees is determined not only #y the levelof wages and duration of their employment #ut also #y themanagement’s personal policies which include selection of employees

for layo8s retrenchment promotion and transfer. These policies directlya8ect wor$ers. The evaluation criteria for such decisions may not #efair. o the intervention of unions in such decision ma$ing is a waythrough which wor$ers can have their say in the decision ma$ing tosafeguard their interests.

&e%/er servies


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6uring the last few years trade unions have increased the range of services they o8er their mem#ers. These include:

o Eduation and training 7 ;ost unions run trainingcourses for their mem#ers on employment rights healthand safety and other issues. ome unions also helpmem#ers who have left school with little education #yo8ering courses on #asic s$ills and courses leading toprofessional 1uali'cations.

o Legal assistane 7 ,s well as o8ering legal advice onemployment issues some unions give help with personalmatters li$e housing wills and de#t.

o Finanial disounts 7 Jeople can get discounts onmortgages insurance and loans from unions.

o 'elfare /ene8ts 7 )ne of the earliest functions of tradeunions was to loo$ after mem#ers who hit hard times.ome of the older unions o8er 'nancial help to theirmem#ers when they are sic$ or unemployed.

&ET$ODS USED -. TRADE UNIONS TO AC$IE*E T$EIR O-5ECTI*ES

• ;utual insurance

• political actions

• tri$es

• !andhs

• 5heraos

• !oycott

• Goc$out

• Jic$eting

FEATURES OF TRADE UNION


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$. It is an association either of employers or employees or of independent workers. They may

consist of 4"

o Employers association #eg., Employers /ederation of India, Indian paper mill

association, etc.%

o 9eneral la!or unions

o /riendly societies

o Unions of intellectual la!or #eg, )ll India Teachers )ssociation%

(. It is formed on a continuous !asis. It is a permanent !ody and not a casual or temporary one.

They persist throughout the year.

-. It is formed to protect and promote all kinds of interests Ceconomic, political and social"of its

mem!ers. The dominant interest with which a union is concerned is, however, economic.

1. It achieves its o!6ectives through collective action and group effort. egotiations and collective

!argaining are the tools for accomplishing o!6ectives.

*. Trade unions have shown remarka!le progress since their inception< moreover, the character

of trade unions has also !een changing. In spite of only focusing on the economic !enefits of

workers, the trade unions are also working towards raising the status of la!ors as a part of

industry.

PLU?

– Trade Unions may!e associated with either of employersD employees or independent

workers.

– La!or Unions are relatively permanent com!ination of workers are not temporary or

casual.

– ) Trade Union is an association of workers who are engaged in securing economic

!enefit for their mem!ers.

– Trade Unions change their methods their working style according to the change in

technology systems of production.

– Trade Unions have now !ecome legali=ed recogni=ed institutions.

Funtions of Trade Unions

• Functions relating to members


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• Functions relating to organization

• Functions relating to the union; and

• Functions relating to the society.

Funtions relating to trade union %e%/ers

1. To safeguard workers against all sorts of exloitation by the emloyers! by union leaders

and by olitical arties.

". To rotect workers from the atrocities and unfair ractices of the management.

3. To ensure healthy! safe and conduci#e working conditions! and ade$uate conditions of

work.

%. To exert ressure for enhancement of rewards associated with the work only after makinga realistic assessment of its ractical imlications.

&. To ensure a desirable standard to li#ing by ro#iding #arious tyes of social ser#ice –

health! housing! educational! recreational! cooerati#e! etc. and by widening and

consolidating the social security measures.

'. To guarantee a fair and s$uare deal and social security measures.

(. To remo#e the dissatisfaction and redress the grie#ances and comlaints of workers.

). To encourage worker*s articiation in the management of industrial organization andtrade union! and to foster labour+management cooeration.

,. To make the workers conscious of their rights and duties.

1-. To imress uon works the need to exercise restraint in the use of rights and to enforce

them after realistically ascertaining their ractical imlications.

11. To stress the significance of settling disutes through negotiation! oint consultation and

#oluntary arbitration.

1". The raise the status of trade union members in the industrial organization and in thesociety at large.

Funtions relating to industrial organi9ation

1. To highlight industrial organization as a oint enterrise between workers and

management and to romote identity of interests.


26/68


". To increase roduction $uantitati#ely and $ualitati#ely! by laying down the norms or

roduction and ensuring their ade$uate obser#ance.

3. To hel in the maintenance of disciline.

%. To create oortunities for worker*s articiation in management and to strengthen labor+

management cooeration.

&. To hel in the remo#al of dissatisfaction and redressal of grie#ances and comlaints.

'. To romote cordial and amicable relations between the workers and management by

settling disutes through negotiation! oint consultation and #oluntary arbitration! and by

a#oiding litigation.

(. To create fa#orable oinion of the management towards trade unions and imro#e their

status in industrial organization.

). To exert ressure on the emloyer to enforce legislati#e ro#ision beneficial to the

workers! to share the rofits e$uitably! and to kee away from #arious tyes of unfair

labor ractices.

,. To facilitate communication with the management.

1-. To imress uon the management the need to adot reformati#e and not uniti#e!

aroach towards workers* faults.

Funtions relating to trade unions organi9ation

1. To formulate olicies and lans consistent with those of the industrial organization and

society at large.

". To imro#e financial osition by fixing higher subscrition! by realizing the union dues

and by organizing secial fund+raising camaigns.

3. To reser#e and strengthen trade union democracy.

%. To train members to assume leadershi osition.

&. To imro#e the network of communication between trade union and its members.

'. To curb inter+union ri#alry and thereby hel in the creating of unified trade union

mo#ement.

(. To resol#e the roblem of factionalism and romote unity and solidarity within the union.

). To eradicate casteism! regionalism and linguism within the trade union mo#ement.


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,. To kee away from unfair labour ractices.

1-. To sa#e the union organization from the exloitation by #ested interests –ersonal and

olitical.

11. To continuously re#iew the rele#ance of union obecti#es in the context of social change!

and to change them accordingly.

1". To reare and maintain the necessary records.

13. To manage the trade union organization on scientific lines.

1%. To ublicise the trade union obecti#es and functions! to know eole*s reaction towards

them! and to make necessary modifications.

Funtions relating to soiet#

1. To render all sorts of constructi#e cooeration in the formulation and imlementation of

lans and olicies relating to national de#eloment.

". To acti#ely articiate in the de#eloment of rogrammes of national de#eloment! e.g.!

family lanning! afforestation! national integration! etc.

3. To launch secial camaigns against the social e#ils of cororation! neotism!

communalism! casteism! regionalism! linguism! rice rise! hoarding! black marketing!

smuggling! sex! ine$uality! dowry! untouchability! illiteracy! dirt and disease.

%. To create ublic oinion fa#ourable to go#ernment*s olicies and lans! and to mobilize eole*s articiation for their effecti#e imlementation.

&. To create ublic oinion fa#ourable to trade unions and thereby to raise their status.

'. To exert ressure! after realistically ascertaining its ractical imlications! on the

go#ernment to enact legislation conduci#e to the de#eloment of trade unions and their

members.

TBPE? + TRA6E U=;+=?

There are 1 types of trade unions4"

$. (raft "nions"this union represents workers with a particular skill

(. ;nd"strial "nions"this union represents all workers in one industry with different skills

-. eneral "nions"this union represents workers with different skills

1. Chite collar "nions"this union represents special skills like engineer or something


28/68


14 Craft unionis% refers to organi&ing a union in a manner that see$s tounify wor$ers in a particular industry along the lines of the particular craft ortrade that they wor$ in #y class or s$ill level. It contrasts with industrialunionism in which all wor$ers in the same industry are organi&ed into thesame union regardless of di8erences in s$ill.

,4 Industrial unionis% is a la#or union organi&ing method through which

all wor$ers in the same industry are organi&ed into the same unionM

regardless of s$ill or tradeMthus giving wor$ers in one industry or in all

industries more leverage in #argaining and in stri$e situations. ,dvocates of

industrial unionism value its contri#utions to #uilding unity and solidarity

suggesting the slogans Nan in0ury to one is an in0ury to allN and Nthe longer

the pic$et line the shorter the stri$e.N

Industrial unionism contrasts with craft unionism which organi&es wor$ersalong lines of their speci'c trades i.e. wor$ers using the same $ind of tools

or doing the same $ind of wor$ with appro"imately the same level of s$ill

even if this leads to multiple union locals (with di8erent contracts and

di8erent e"piration dates in the same wor$place.

34 A )eneral Union is a trade union (called la#or union in ,merican 7nglish

which represents wor$ers from all industries and companies rather than 0ust

one organi&ation or a particular sector as in a craft union or industrial union.

, general union di8ers from a union federation or trades council in that its

mem#ers are individuals not unions.

The creation of general unions from the early nineteenth century in the

=nited Oingdom and somewhat later elsewhere occurred around the same

time as e8orts #egan to unioni&e wor$ers in new industries in particular

those where employment could #e irregular.

Jroponents of general unions claim that their #roader range of mem#ers

allows more opportunities for solidarity action and #etter coordination in

general stri$es and the li$e. 6etractors claim that the #roader remit means

they tend to #e more #ureaucratic and respond less e8ectively to events in asingle industry.

In the =nited Oingdom general unions include the 5;! and the T59=. In

,ustralia a good e"ample of a general union is the ,ustralian 9or$ers =nion


29/68


:4 The ter% 0hite7ollar 0orer refers to a salaried professional or aneducated wor$er who performs semi%professional o/ce administrative andsales coordination tas$s as opposed to a #lue%collar wor$er whose 0o#re1uires manual la#or. N9hite%collar wor$N is an informal term de'ned incontrast to N#lue%collar wor$N.

TRADE UNIONIS& IN NEPAL

Origin of Trade Unions in Ne"al

The history of trade union movement in +epal is of recent origin. There were no

trade unions in +epal #efore ?HDF as the country was under the family rule of

Ranas. +epal had followed closed%door economy having almost no relations with the

outside world. In ?HD@ ,ll +epal Trade =nion


30/68


department and some la#our o/ces and the admission of +epal into the

International Ga#our )rganisation (IG) as a mem#er.

;ulti%party democracy was restored in the pring of ?HHA in the country after the

success of peopleLs movement in which many professional organisations including

wor$ers had actively participated. The


31/68


H. *irst uni'cation conference held in ?HH? and comrade 6inesh harma

elected as president.

?A.


32/68


In the case of agriculture sector, *,&&& workers can form a union !y mutual agreement !ut the

union must have a representation from at least (& districts and a minimum of $&& workersH

representation from one district #;lause 1 #$% of Trade Union )ct%.

Those working in informal sector and self"employed can also form a union if they have at least five

hundred mem!ers working in the same nature of occupation #;lause 1 #(% of Trade Union )ct%.

In the epartment of La!or ?* national level trade Unions are registered. 5ut of them only *3 are Factive.F

In this figure, the share of 9E/5T is $*, TU; $3, E;5T $1 and those unaffiliated to any federation is

$$. 5ut of $* trade unions affiliated to 9E/5T 3 trade unions are registered under the ;lause 1 #$% of

Trade Union )ct having more than *& enterprise level unions, ( trade union associations have !een

registered under the more than five thousand individual mem!ership, $ agricultural workersH union and *

unions are registered under ;lause 1 #(% of Trade Union )ct.

5ut of $3 trade unions affiliated with TU; - unions are registered under the ;lause 1 #$% having more than

*& unions at enterprise level, 1 union are registered under ;lause 1 #$% of Trade Union )ct with five

thousand individual mem!ership, and $& unions are registered under ;lause 1 #(% of Trade Union )ct.

one of E;5T affiliated unions are registered with *& or more enterprise level unions. Its 3 unions areregistered with *&&& mem!ers each, $ agricultural workersH union with *&&& mem!ers and rest of its unions

are registered under ;lause 1 #(% of the Trade Union )ct having each union *&& individual mem!ers.

Though the legal status of the central level unions formed on individual mem!ership !asis is e2ual to the

central federation of enterprise level unions !ut at the local level they are not effective in collective

!argaining, do not participate in industrial relations committee, !ecome authoritative through election, run

pu!lic welfare fund and engage in day to day pro!lems of workers. This implies that in epalHs la!or market

out of existing *3 active trade unions it is only 9E/5THs 3 and TU;Hs - unions organi=ed at the enterprise

level which have the real capacity to empower the unions in the organi=ed sector. Unaffiliated unions have

their own independent role. It is not clear whether there is a decline of mem!ers in unions formed !y

individuals. Industrial decay throughout the nation indicates that there is a corresponding decline in the

num!er of such unions.

The survival of epal 7otel WorkersH Union of TU; is in danger. In the days ahead epal Independent

WorkersH Union and epal Independent /ood and Aeverage WorkerHs Union of 9E/5T and epal 7otel

WorkersH Union of TU; might suffer the same fate if they do not have fifty union mem!ership. This implies

that the unions affiliated with 9E/5T have important role in collective !argaining. Evidently, no matter how

many num!ers they have in the trade union federation registered under ;lause 1#(% of Trade Union )ct they

are counted only as four unions.

Twenty"three national level unions relating to !rick, wood, !ar!er, restaurants, garment, health workers,

leather shoe, commercial artist, workshop, etc affiliated with different federations and othersH registration at

the La!or epartment were cancelled recently due to a lack of re2uisite mem!ers.

Prom"lgation and ;mplementation of Labor La8s in =epal

)fter the promulgation of the ;onstitution of the Bingdom of epal in $@@&, many progressive acts are

formulated to promote la!or welfare, such as

La!or )ct $@@( #amended in $@@?%,

;hild La!or )ct $@@(,

Transportation and Gehicles 8anagement )ct $@@-,


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Tea :lantation WorkersH 'egulation, $@@-

/oreign Employment )ct $@?* #revised in $@@-%

Trade Union )ct $@@- #amended in $@@@%,

Working Journalist )ct $@@1,

La!or ;ourt 'egulation )ct $@@*,

Esta!lishment of a La!or ;ourt $@@+,

/ormation of a ;entral La!or )dvisory Aoard $@@?

;hild La!or #:rohi!ition and 'egulation% )ct $@@@

'evision of Aonus )ct, $@3- in (&&&, and

;reation of ational Welfare /und (&&&

epal also endorsed @ conventions passed !y International La!or 5rgani=ation #IL5%, such as

Weekly 'est in Industrial Enterprise ;onvention, $@($ #o. $1%.

/orced La!or ;onvention, $@-& #o. (@%.

'ight to 5rgani=e and ;ollective Aargaining ;onvention, $@1@ #o. @?%.

E2ual 'emuneration ;onvention, $@*$#o. $&&%

iscrimination #Employment and 5ccupation% ;onvention, $@*? #o.$$$%.

etermination of 8inimum Wage ;onvention, $@3& #o. $-$%.

8inimum )ge ;onvention, $@3- #o.$-?%.

Tripartite ;onsultation #International La!or tandards% ;onvention, $@3+ #o. $11%.

Worst /orms of ;hild La!or ;onvention, $@@@ #o. $?(%.

-inim"m Cage ?tr"ct"re

In epal, minimum wages for workers per month have !een classified into four categories4

unskilled workers U K (3.&&

semi"skilled workers K(3.3+

skilled workers K-$.+$


34/68


highly skilled workersK--.&&

The minimum wage structure is una!le to meet even the !asic needs of workers and their families where the

average family ratio is 1.* mem!ers. Trade Unions are, therefore, demanding the rise in minimum wage

conditions and its effective implementation so that it can meet the !asic needs of workers. In informal

sectors, there is the pro!lem in the implementation of this wage structure. ue to lack of ade2uate

resources and proper institutional mechanism many of these la!or standards have !ecome non"actiona!le

and non"6usticea!le. 9overnment also violates these standards. There are several examples4

In (&&$ the government !anned the Independent 7otel Workers UnionHs strike on 8arch $@, (&&$.

The hotel workers had gone on strike demanding a ten per cent service charge in the hotel sector

which was suppressed !y imposing the Essential ervice )ct $@*3.The Joint truggle ;ommittee

had filed a case at the upreme ;ourt against the governmentHs move to !an the hotel workers

from going on strike. IL5 in a letter sent to the government has re2uested it to lift the !an and has

said the hotel workers have the right to go on strike.

Trade unions also resisted the former premier her A. eu!aHs efforts to !ring flexi!le la!or laws !y

giving the right to Fhire and fireF to employers contrary to la!or laws.

The verdict of the upreme ;ourt on July (+, (&&( also went contrary to governmentHs decision to

relax la!or laws. The ;ourt has instructed the government to initiate necessary steps towards

reviewing provisions in the treaty and the La!or )ct to issue work permit for foreigners.

The parliament has even passed International /inancial ;enter Aill in $@@? that contravenes the

epalese peopleHs right to work, right to information and citi=enship rights.

) La!or /orce conducted in $@@?"$@@@ unveils that a!out 1$ percent of the total 1.@ million children

aged !etween * to $1 years are child la!or involved in agriculture and even in worst forms of child

la!or practices, such as rag"pickers, carpet workers, mines workers, porters, !onded la!or and child

trafficking. )!out $(,&&& girls are trafficked each year. ;hild la!or practices continue due to the

laxity in the implementation of ;hild La!or )ct $@@@.

9E/5T conducted a survey research in (&&$ in 3*& enterprises #textile, garment, 6ute, spinning mills, teaplantation, printing press, carpet, cement, chemical iron, food and !everage, hotel, construction,

transportation, agriculture, etc% to test the Feffective implementation of la!or lawsF since the enactment of

La!or )ct $@@(.

+n recr"itment process, for example, regarding the granting of appointment letter, making

permanent after working (1& days, an advertisement for recruitment and employment on contract

!asis on permanent nature of 6o!s, the survey result reveals that only -? percent of enterprises

provides appointment letter to their workers, (& percent made workers permanent after the

stipulated days of work, $$ percent did advertise !efore recruiting workers and 1& percent did not

employ workers in contract in permanent nature of works.

5n 8or9ing ho"rs and facilities, for example, the survey shows that +- percent of enterprises

did have fixed working hours #? hours a day%, only 11 percent of them paid for over time work, and

1( percent of them implemented minimum wage.

5n provision of leaves, such as, weekly rest, pu!lic holiday, compassionate leave, house leave,

sick leave, and maternity leave the survey result shows that +1 percent of enterprises provides

weekly leave, very few of them provide 1*"day maternity leave, ** percent provides !oth pu!lic

holidays and compassionate leave and *& percent provides house leaves.

5n trade "nion rights, 1& percent of the enterprises accepts the charter of demands, in 1(

percent of the enterprises management discusses a!out the collective !argaining process and in +1


35/68


percent of enterprises, collective agreements and decisions made !y the government are not

implemented. Thirty"seven percent of enterprise has tried to harass the esta!lishment of unions

while -* percent of enterprises fre2uently harass the workers involved in union activities.

5n occ"pational safet# and health +( percent of enterprises has treatment facility during

accident and in6ury, $* percent of enterprises has compensation during sickness, $* percent has

health check up facility, (( percent has accident insurance and (- percent has treatment facility.

5n the 8or9ermanagement relationship and reg"lation, (1 percent of the enterprises has

their own regulations and 3 percent has constituted la!or relations committee according to La!or

)ct $@@(. 8ost of the organi=ed sectors have their own regulation and la!or relation committee in

each enterprise to settle industrial disputes.

In $@@@, Industrial 'elations /orum conducted a study on la!or disputes. Aased on $*& cases sampled from

the court, it is found that over *+ percent of the cases was related to employeeHs dismissals while another

(- percent was related to remuneration. 5n an average it took nine month to settle the case. These findings

vividly indicate that violation of la!or rights is fre2uent. ;arpet sector is a ma6or one which does not

maintain even minimum norms and la!or standards. There is an increasing trend of recruiting workers in

casual and contract !asis, agricultural and construction sectors host !ig num!er of guest workers and

ma6ority of the enterprises are not prepared to operate the la!or relation committee. Aulk of enterprises

ignores occupational health and safety measures. Trade unions !lame that La!or epartments are often

!iased in tripartite negotiations, influenced !y the government in power and suffer from inade2uate

personnel, legal 6urisdiction and governmentHs neglect. et, compared to trade unions employerHs council

/ederation of epalese ;ham!ers of ;ommerce and Industry #/;;I% is very much institutionali=ed and is

!acked !y research and development, speciali=ed departments, governmentHs !acking and international

support. To solve some of the pro!lems underlined a!ove, epalese trade unions are demanding for a ;ode

of Ethics for Ausiness ;ommunities and 8;s and a legislation for ethical !usiness practices.

The sit"ation of trade "nions since D"ne

)fter the declaration of the state of emergency in ovem!er (&&$, the law and order situation of the country

sharply deteriorated causing the shutdown of industries and !usiness and, conse2uently, accelerating the

process of 6o! layoffs of workers. This process has !adly affected enterprise level trade unions. Trade Union

)cts re2uire compulsory renewal of all the enterprise level registered trade unions in every two years. Those

duly renewed and registered ones are called Factive unions.F Aased on the data provided !y $& La!or

epartments of the country until June (&&(, the analysis !elow explains the situation of trade unions in

epal.

The year $@@@ can !e regarded as the most favora!le period for union registration. The year (&&& marks a

declining trend owing to the growth of 8aoist attacks on industries and closing of many ailing factories !y

the government. This !rings the union registration trend !ack to $@@-, pointing a distur!ing trend in epalHs

la!or market. 5wing to a lack of systematic record keeping system a!out the renewal and registration

system in the La!or epartment, it is very difficult to present accurate picture. 5fficial records show that

there were $,1@$ enterprise level unions until June (&&(. 5ut of those the registration of 3-$ unions have

!een a!rogated. )ll the federations are !adly affected in terms of cancellation of the registration of unions.

The la!or ;ourt has announced the cancellation of registration of five trade unions which were registered

with fake names and signatures. They are4

epal ational Independent hopkeepers WorkersH Union

epal ational Independent 9rill WorkersH Union

epal Electric, Electronics TechniciansH Union

epal Independent Trekking WorkersH )ssociation


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epal Independent ;onstruction WorkersH 5rgani=ation

eneral oc"s of Trade Union Activities

Trade Union educationD trainingD workshopDexposure

etworkingDsolidarity !uilding

emocrati=ation of Workplace

:olicy Intervention at various levels

5ccupational 7ealth and afety measures

ocial security

Elimination of child la!orD !onded la!orD forced la!or and caste discrimination over alit community

;ampaign and education on gender e2uality at workplace

;ollective !argaining agreements

Lo!!ying and collective action

Doint ;nitiatives of Trade Union ederations

• ialogue !etween TU; and 9E/5T for creating a 6oint high"level national confederation. ) high"

level task force has !een formed for this. They have agreed to work 6ointly, at least for one year, onthe following issues4

/ull implementation of La!or )ct

)uthentic mem!ership verification process

Working unity among affiliated federations

)ddressing terrorism and its impact on workers

/ormation of 5ccupational 7ealth and afety

)ll three unions #TU;, 9E/5T and E;5T% are involved in :overty 'eduction trategy :rogram

#:':%

Trade Union ;ommittee for 9ender E2uality and :romotion #TU;9E:% secretariat has !een created

in (&&& on gender issue. ;hiefs of women departments, women leaders and executive level male

counterpart of all trade union federations man it.

Under the initiative of I/AWW, there is a 6oint committee of 9E/5T, TU; and E;5T in the

;onstruction, wood and !uilding sectors.

Under the I;E8 initiative a national steering committee has !een esta!lished for ;hemical, Iron and

Energy ector of TU;, 9E/5T and independent unions.


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TU; and 9E/5T affiliates at hotel and catering sectors have constituted a Joint truggle

;ommittee.

5n /oreign Employment and 8igrant Workers all the federations have esta!lished a common

position.

5n the revision and promotion of 8inimum Wages all the federations have esta!lished a common

position

)ll the federations consult among themselves regarding their representation in IL5, the

government, and even 8;s.

ocial ecurity Aill has !een ta!led !y the TU; in the parliament which has !een supported !y all

federations.

Role of E? in ?trengthening Trade Union -ovement in =epal

/E epal 5ffice is cooperating with its TU partners to achieve the following o!6ectives4

:rofessionali=ation of trade Unions

Improving knowledge, skills and information among trade unions and assist them in !uilding

solidarity

To meet these !road o!6ectives following activities have !een carried out4

:reparation of training manuals on Information 7andling, ocumentation and Union 5ffice

8anagement

8aterial support in the forms of 6ournals and !ooks

TrainersH 7and!ook on Trade Union 5rgani=ation, Trade Union 'ights and ;ollective Aargaining

/inancial support to invite technical experts related to Trade Union education

Training on the issues of collective !argaining, co"determination, la!or economics, health and safety

for the workers, trade union rights and responsi!ilities and status of informal sector workers in

epal

eminars and research pu!lication on la!or legislation, strengthening union capacity through

mem!ership drives, organi=ing female workers through union campaigning, leadership

empowerment, the impact of structural ad6ustment and glo!ali=ation on the workers, women in

garment industries

/acilitation of international and regional exposure of trade union leaders and workers through

participation in international seminars, workshops and training programs

:roviding scope for the unions and their leaders to share experiences and conduct 6oint national and

regional programs with International Trade ecretariats such as

International Transport Workers /ederation #IT/%< International /ederation of 8etal Workers #I8/%<

Union etwork International4 )sia":acific #UI"):'5%< International /ederation of ;hemical, Energy,


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8ine and 9eneral Workers Union #I;E8%< International /ederation of Auilding and Wood Workers

Union #I/AWW%< )sian and :acific 'egional 5rgani=ation of the International /ederation of

;ommercial, ;lerical, :rofessional and Technical Employees #):'5"/IET%< :u!lic ervice

International #:I%< International /ederation of Journalists #I/J%< Education International #EI%<

International La!or 5rgani=ation #IL5%< International Union of /ood, )gricultural, 7otel, 'estaurant,

;atering, To!acco and )llied Workers )ssociation #IU/%< :ostal, Telegraph and Telecommunication

International #:TTI%< International ;onfederation of /ree Trade Unions4 )sian":acific 'egional

5rgani=ations #I;/TU"):'5%< and /E"organi=ed regional and international conferences, including

the extension of cooperation to outh )sian Trade Union ;ouncil #))'TU;%.

Translation and pu!lication of various trade union educational materials into simple epali language

and dissemination of those materials to the national and district offices of the unions. Aesides these

three federations, other smaller trade unions have also !enefited from these pu!lications.

RESPONSI-ILIT. OF TRADE UNION

:reparation of training manuals on Information 7andling, ocumentation and Union 5ffice

8anagement.

8aterial support in the forms of 6ournals and !ooks.

Trainers 7and!ook on Trade Union 5rgani=ation, Trade Union 'ights and ;ollective Aargaining

/inancial support to invite technical experts related to Trade Union education.

Training on the issues of collective !argaining, co"determination, la!our economics, health and

safety for the workers, trade union rights and responsi!ilities and status of informal sector workers

in epal

eminars and research pu!lication on la!our legislation, strengthening union capacity through

mem!ership drives, organi=ing female workers through union campaigning, leadership

empowerment, the impact of structural ad6ustment and glo!ali=ation on the workers, women in

garment industries.

/acilitation of international and regional exposure of trade union leaders and workers through

participation in international seminars, workshops and training programmes.

:roviding scope for the unions and their leaders to share experiences and conduct 6oint national and

regional programmes with International Trade ecretariats such as International Transport Workers

/ederation #IT/%< International /ederation of 8etal Workers #I8/%< Union etwork International4

)sia":acific #UI"):'5%< International /ederation of ;hemical, Energy, 8ine and 9eneral Workers

Union #I;E8%< International /ederation of Auilding and Wood Workers Union #I/AWW%< )sian and

:acific 'egional 5rgani=ation of the International /ederation of ;ommercial, ;lerical, :rofessional

and Technical Employees #):'5"/IET%< :u!lic ervice International #:I%< International /ederation

of Journalists #I/J%< Education International #EI%< International La!our 5rgani=ation #IL5%<International Union of /ood, )gricultural, 7otel, 'estaurant, ;atering, To!acco and )llied Workers

)ssociation #IU/%< :ostal, Telegraph and Telecommunication International #:TTI%< International

;onfederation of /ree Trade Unions4 )sian":acific 'egional 5rgani=ations #I;/TU"):'5%< and /E"

organi=ed regional and international conferences, including the outh )sian Trade Union ;ouncil

#))'TU;%.


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Translation and pu!lication of various trade union educational materials into simple epali language

and dissemination of those materials to the national and district offices of the unions. Aesides these

three federations, other smaller trade unions have also !enefited from these pu!lications.

Rights, duties and functions of Trade Union:

'n addition to the functions, duties and rights mentioned in the constitution of Trade Union.

The functions, duties and rights of the Trade Union will be as follows(

To take necessary action and implement necessary programs in order to achieve the Trade

Union ob)ectives mentioned in rticle +ub!section #$ of this ct.

To make the members to participate in the election of the Enterprise -evel uthoried

Trade Union.

To allow the workers to follow the decision made by the Enterprise level uthoried Trade

Union.

9(B)* Right, Duties and Functions of Trade Union Association and Federation:

'n addition to the functions, duties and rights mentioned in the constitution of Trade Union association and

Trade Union %ederation, the function, duties and rights of the Trade Union ssociation and %ederation will be

as follows(

To take necessary actions and implement necessary programs in order to achieve the

ob)ective of Trade Union ssociation and Trade Union %ederation as mentioned in rticle

+ub!section &$ of this ct.

To make members to participants in the election of Trade Union ssociation and Trade

Union %ederation.

To allow members to follow the decisions of the trade union association and Trade Union

%ederation.

To follow necessary measures to resolve labour disputes by representing the workers in

important and national level policy issues on labour disputes and to negotiate with the

government, various types of /rofessional ssociations and %ederation and Enterprises.

To negotiate with the concerned enterprises and management on behalf of the Enterprise

-evel Trade Union.

To establish and operate different type of funds for the interest and welfare of workers.

To make public the oppression on workers and Trade Union and to issue necessary warningto the concerned enterprises for the same.

Theories of trade unionis%

Theories of Trade Union +rganiation


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The extensive literature on the theory of la!or organi=ation stresses the principle that a

society controlled !y organi=ed workers is more desira!le than the system of control !y

property owners.

We have already mentioned the formation of the revolutionary party which 8arx !elieved

was essential to the transformation of society into the socialistic state. The We!!s

advocated the complete unioni=ation of wage earners and the direct participation of the

organi=ed workers in government through the agency of a la!or party whose mem!ership

would !e identical with the mem!ership of the trade unions. This program presupposes a

democratic government in which ma6ority rule is cherished. The essential principles of this

plan have !een achieved in England. 5f 2uite a different character was the anarchistic

theory of 8ichael Aakunin #$?$1"$?3+%. 7e !elieved in the strong economic organi=ation of

all wage earners, !ut he was confident that any attempt to achieve political reforms would

only lead to a diluting of the !asic philosophy of the working menHs movement. Economic

e2uality should come first, principally !y the confiscation of capital. The method heproposed was international organi=ation of wage earners for revolutionary purposes. The

yndicalist movement has had much more extensive growth in Europe than in )merica. 5ne

of its leading exponents was 9eorges orel #$?13"$@((%, a one"time 8arxist who had lost

patience with the ocialist movement and allied himself with the more militant yndicalists.

7is program depended upon the organi=ation of wage earners into syndicates #associations

of working men%, not unions. The aim of the organi=ation was not political, there was no

intention of taking over the power of the state. 9eneral strikes and violence were looked

upon as the chief means of securing control of industry, and domination of political

institutions would follow automatically.

) less violent form of yndicalism has !een advocated !y the 9uild ocialists. '. 7. Tawney

and 9. . 7. ;ole, famous English economists, are prominent leaders of 9uild ocialism.

They !elieve that !y gradual evolutionary means, workers organi=ed along industrial lines

can assume control of industry without at the same time controlling political institutions.

:erhaps the most conservative of all la!or movements is to !e found in the development of

the )merican trade unions. )s outlined !y amuel 9ompers, founder of the )merican

/ederation of La!or, union organi=ation should !e confined to the skilled trades, which !y

the very nature of their control of skill could !ring pressure upon employers to achieve their

aims. The unions should also control the training of new craftsmen through systems of

apprenticeship. The la!or unions as a whole would not participate directly in political

activity, nor would they !ecome affiliated with any political party. In general their policy

could !e descri!ed as Frewarding their friends and punishing their enemies.F Their chief

weapons were strikes and !oycotts. In dissatisfaction with the aristocratic type of union,

John L. Lewis, president of the United 8ine Workers of )merica, sponsored a new type of

la!or union called the industrial union. )s descri!ed !y Lewis, every man in a given industry,

regardless of his craft or 6o!, should !e united in one union. The strength of such would lie

not in the withholding of essential skills !ut in the complete organi=ation of all workers in an


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industry. The policy of the industrial unions in politics has !een to give direct support to the

candidate most favora!le to la!or, !ut only as a temporary expedient until a party

representing la!or can !e formed.

The a!sence of the names of the theoretical economists from this discussion of la!or

organi=ation may !e surprising. 5ne must reali=e that the great economists of the past

!elieved that the economic system could operate only under free competition. La!or

organi=ations were un!orn or in their infancy at the time. The reaction of the economists,

therefore, was either to ignore the existence of trade unions or to look upon them, where

they were present, as an evil of more or less conse2uence. That )dam mith should have

!een aware of la!or organi=ations and the pro!lems associated with them even in his day is

a true measure of his stature. Even 8ill, for all his sympathy with the working man, felt that

unions were useless. The disappearance of the freely competitive marketMif such ever

existed save in the minds of economistsMhas made it easier for later writers to discuss the

theory of trade union organi=ation as an important aspect of modern economy

UNIT : INDUSTRIAL DISPUTE AND )RIE*ANCE

CONCEPT

)n industrial dispute may !e defined as a conflict or difference of opinion !etween

management and workers on the terms of employment. It is a disagreement !etween an

employer and employeesH representative< usually a trade union, over pay and other working

conditions and can result in industrial actions. When an industrial disput

Documents

Docslide.us Industrial Relation