From Conflict to Cooperation
Labour Market Reforms that can work in Nepal
Robert Kyloh
Labour Market Reforms that can work in Nepal
About the Book
This book reviews the history of labour relations in Nepal and considers criticisms of the existing industrial relations system. It reports on the re-emergence of the militant Maoist trade union and the recent upsurge in strikes and demonstrations in Nepal. A reduction in workplace tension is needed to cement in place the recent peace agreement, facilitate political stability and promote economic growth.
Focusing on broad economic developments since 1990, it sheds light on how labour legislation and labour institutions have influenced investment, growth and jobs over the long term. The views of those most directly affected by the labour legislation, institutions and attitudes that govern industrial relations in Nepal have been collected through surveys and interviews with managing directors and entrepreneurs, trade union leaders and hundreds of ordinary workers from a range of locations, industries and occupations. These views have heavily influenced the conclusions presented in this volume.
The International Labour Organization :
The International Labour Organization was founded in 1919 to promote social justice and, thereby, to contribute to universal and lasting peace. Its tripartite structure is unique among agencies affiliated to the United Nations; the ILO's Governing Body includes representatives of governments, and of employers' and workers' organizations. These three constituencies are active participants in regional and other meetings sponsored by the ILO, as well as in the International Labour Conference a world forum that meets annually to discuss social and labour questions.
Over the years the ILO has issued for adoption by member States a widely respected code of international labour Conventions and Recommendations on freedom of association, employment, social policy, conditions of work, social security, industrial relations and labour administration, and child labour, among others.
The ILO provides expert advice and technical assistance to member States through a network of offices and multidisciplinary teams in over 40 countries. This assistance takes the form of labour rights and industrial relations counselling, employment promotion, training in small business development, project management, advice on social security, workplace safety and working conditions, the compiling and dissemination of labour statistics, and workers' education.
About the Author(s) / Editor(s)
Robert Kyloh
Contents in Detail
Preface
Acknowledgements
Abbreviations
1. Introduction
1.1 Background
The road to peace
Law and order concerns
Rise of the anftu
Improving industrial relations
National policy priorities
1.2 Methodology
Case studies: Union activists
1.3 Key objectives
2. The politics of labour .
2.1 Introduction
2.2 History of modern Nepal
Beginnings of industrial relations
One-party panchayat system
Trade unions’ role in the push for
democracy
Introduction of labour legislation
Deterioration of industrial relations
environment
Developments since 2000
3. The concerns of capital .
3.1 Labour legislation
Main labour law restrictions
3.2 Enterprise survey
Assessing the influence of legislation
on investment and growth
The most serious concerns
Lack of skilled workers
The impact of strikes
The labour laws and how
restrictions are overcome
Absenteeism and workplace discipline
Wages and labour costs
Low productivity
3.3 How to improve the Labour Act
Clarify ambiguities
Adjust the wage structure
Reform the Bonus Act
3.4 Summary
4. The complaints of labour .
4.1 Case studies
Working conditions
Employment security
The lure of working abroad
4.2 Union leaders’ key areas of concern
Social security
Labour legislation evasion and
inadequate enforcement
Permanent employment status
4.3 Labour institutions
The Labour Office
The Labour Court
Tripartite institutions in Nepal
4.4 Summary
5. From insurgency to industrial conflict .
5.1 The upsurge in strikes and demonstrations
5.2 The ANFTU campaign
Three-tier minimum wage structure
Regularization of employment contracts
ANFTU tactics
The ANFTU moves into the mainstream
Repercussions of the ANFTU campaign
5.3 The industrial relations environment
Promoting workers’ rights and
economic development
5.4 Summary
6. International organizations and the
Nepalese labour market .
6.1 The World Bank
The 2003 Trade and competitiveness
study
The World Bank’s change of position
The World Bank’s Doing Business reports
World Bank warnings
6.2 The IMF
6.3 The ADB: A distinctive perspective
6.4 The ILO: An integrated approach to reform
6.5 The need for policy coherence
6.6 Summary
7. Recent attempts at reforming labour
legislation and labour market institutions .
7.1 Nepal’s Tenth Plan
7.2 The labour ordinance of 2006
Triangular employment relationships
New regulations for SEZs and EPZs
Obstacles to strikes
Withdrawal of the Labour Ordinance
7.3 SEZs
7.4 Backdoor ban on strikes
7.5 Restarting labour market reforms
7.6 Summary
8. The relationship between economic
trends and industrial relations .
8.1 Introduction
8.2 Trends in economic growth and the
way they correlate with labour legislation
and labour market institutions
Background
Growth levels
Patterns in agricultural and non-
agricultural sectors
Trends in imports and exports
Stabilization and structural adjustment
programme
The impact of reforms
Reasons behind Nepal’s economic decline
8.3 Trends in investment and the way they
correlate with labour legislation and labour
market institutions
Investment pattern since 1990
8.4 Summary
9. Employment and incomes .
9.1 Labour market trends
Labour force participation rates
Underemployment
Employment by sector
9.2 Working poor, income inequality and poverty
ILO estimates of working poor
NLSS estimates of inequality and poverty
The rise in remittances
9.3 Wages, productivity and the labour
share of output
Wage trends
Productivity and labour costs
Rigid labour laws versus wage flexibility
10. Conclusions and policy recommendations
10.1 Introduction
10.2 The case against radical labour
market deregulation
10.3 The way forward
Trade unions
Labour legislation and labour
market institutions
Social security reform
Need for clarity and policy coherence
Appendix I: Chronology of key political and industrial
relations events in Nepal
Appendix II: Enterprise survey questionnaire: Investment,
growth and decent work, Nepal 2006
Appendix III: Technical note concerning the costs of selected
basic social protection benefits in Nepal 2007–2034
References
Index
| Publisher | AF Press |
| Publication Date | 2008 |
| Number of Pages | 218 |
| ISBN |
9788171886876 |
Academic Foundation (AF), based in New Delhi, is India’s leading independent publisher of academic/scholarly books in Social Sciences, specialising in Economics—Development Economics and Indian Economy in particular, and allied subjects.
About the Book
This book reviews the history of labour relations in Nepal and considers criticisms of the existing industrial relations system. It reports on the re-emergence of the militant Maoist trade union and the recent upsurge in strikes and demonstrations in Nepal. A reduction in workplace tension is needed to cement in place the recent peace agreement, facilitate political stability and promote economic growth.
Focusing on broad economic developments since 1990, it sheds light on how labour legislation and labour institutions have influenced investment, growth and jobs over the long term. The views of those most directly affected by the labour legislation, institutions and attitudes that govern industrial relations in Nepal have been collected through surveys and interviews with managing directors and entrepreneurs, trade union leaders and hundreds of ordinary workers from a range of locations, industries and occupations. These views have heavily influenced the conclusions presented in this volume.
The International Labour Organization :
The International Labour Organization was founded in 1919 to promote social justice and, thereby, to contribute to universal and lasting peace. Its tripartite structure is unique among agencies affiliated to the United Nations; the ILO's Governing Body includes representatives of governments, and of employers' and workers' organizations. These three constituencies are active participants in regional and other meetings sponsored by the ILO, as well as in the International Labour Conference a world forum that meets annually to discuss social and labour questions.
Over the years the ILO has issued for adoption by member States a widely respected code of international labour Conventions and Recommendations on freedom of association, employment, social policy, conditions of work, social security, industrial relations and labour administration, and child labour, among others.
The ILO provides expert advice and technical assistance to member States through a network of offices and multidisciplinary teams in over 40 countries. This assistance takes the form of labour rights and industrial relations counselling, employment promotion, training in small business development, project management, advice on social security, workplace safety and working conditions, the compiling and dissemination of labour statistics, and workers' education.
About the Author(s) / Editor(s)
Robert Kyloh
Contents in Detail
Preface
Acknowledgements
Abbreviations
1. Introduction
1.1 Background
The road to peace
Law and order concerns
Rise of the anftu
Improving industrial relations
National policy priorities
1.2 Methodology
Case studies: Union activists
1.3 Key objectives
2. The politics of labour .
2.1 Introduction
2.2 History of modern Nepal
Beginnings of industrial relations
One-party panchayat system
Trade unions’ role in the push for
democracy
Introduction of labour legislation
Deterioration of industrial relations
environment
Developments since 2000
3. The concerns of capital .
3.1 Labour legislation
Main labour law restrictions
3.2 Enterprise survey
Assessing the influence of legislation
on investment and growth
The most serious concerns
Lack of skilled workers
The impact of strikes
The labour laws and how
restrictions are overcome
Absenteeism and workplace discipline
Wages and labour costs
Low productivity
3.3 How to improve the Labour Act
Clarify ambiguities
Adjust the wage structure
Reform the Bonus Act
3.4 Summary
4. The complaints of labour .
4.1 Case studies
Working conditions
Employment security
The lure of working abroad
4.2 Union leaders’ key areas of concern
Social security
Labour legislation evasion and
inadequate enforcement
Permanent employment status
4.3 Labour institutions
The Labour Office
The Labour Court
Tripartite institutions in Nepal
4.4 Summary
5. From insurgency to industrial conflict .
5.1 The upsurge in strikes and demonstrations
5.2 The ANFTU campaign
Three-tier minimum wage structure
Regularization of employment contracts
ANFTU tactics
The ANFTU moves into the mainstream
Repercussions of the ANFTU campaign
5.3 The industrial relations environment
Promoting workers’ rights and
economic development
5.4 Summary
6. International organizations and the
Nepalese labour market .
6.1 The World Bank
The 2003 Trade and competitiveness
study
The World Bank’s change of position
The World Bank’s Doing Business reports
World Bank warnings
6.2 The IMF
6.3 The ADB: A distinctive perspective
6.4 The ILO: An integrated approach to reform
6.5 The need for policy coherence
6.6 Summary
7. Recent attempts at reforming labour
legislation and labour market institutions .
7.1 Nepal’s Tenth Plan
7.2 The labour ordinance of 2006
Triangular employment relationships
New regulations for SEZs and EPZs
Obstacles to strikes
Withdrawal of the Labour Ordinance
7.3 SEZs
7.4 Backdoor ban on strikes
7.5 Restarting labour market reforms
7.6 Summary
8. The relationship between economic
trends and industrial relations .
8.1 Introduction
8.2 Trends in economic growth and the
way they correlate with labour legislation
and labour market institutions
Background
Growth levels
Patterns in agricultural and non-
agricultural sectors
Trends in imports and exports
Stabilization and structural adjustment
programme
The impact of reforms
Reasons behind Nepal’s economic decline
8.3 Trends in investment and the way they
correlate with labour legislation and labour
market institutions
Investment pattern since 1990
8.4 Summary
9. Employment and incomes .
9.1 Labour market trends
Labour force participation rates
Underemployment
Employment by sector
9.2 Working poor, income inequality and poverty
ILO estimates of working poor
NLSS estimates of inequality and poverty
The rise in remittances
9.3 Wages, productivity and the labour
share of output
Wage trends
Productivity and labour costs
Rigid labour laws versus wage flexibility
10. Conclusions and policy recommendations
10.1 Introduction
10.2 The case against radical labour
market deregulation
10.3 The way forward
Trade unions
Labour legislation and labour
market institutions
Social security reform
Need for clarity and policy coherence
Appendix I: Chronology of key political and industrial
relations events in Nepal
Appendix II: Enterprise survey questionnaire: Investment,
growth and decent work, Nepal 2006
Appendix III: Technical note concerning the costs of selected
basic social protection benefits in Nepal 2007–2034
References
Index
| Publisher | AF Press |
| Publication Date | 2008 |
| Number of Pages | 218 |
| ISBN |
9788171886876 |
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