From conflict to cooperation : labour market reforms that can work in Nepal / Robert Kyloh.

Format:

Book

Author/Creator:

Kyloh, Robert.

Contributor:

International Labour Office.

Language:

English

Subjects (All):

Industrial relations--Nepal.

Labor--Nepal.

Labor.

Industrial relations.

Nepal.

Physical Description:

217 pages : illustrations, map (folded) ; 23 cm

Place of Publication:

Geneva : International Labour Office, 2008.

Summary:

This book reviews the history of labour relations in Nepal and considers criticisms of the existing industrial relations system. It reports on the remergence 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. Book jacket.

Contents:

The road to peace 17

Law and order concerns 19

Rise of the ANFTU 20

Improving industrial relations 21

National policy priorities 21

1.2 Methodology 23

Case studies: Union activists 24

1.3 Key objectives 26

2 The politics of labour 29

2.2 History of modern Nepal 30

Beginnings of industrial relations 30

One-party panchayat system 31

Trade unions' role in the push for democracy 31

Introduction of labour legislation 33

Deterioration of industrial relations environment 34

Developments since 2000 35

3 The concerns of capital 37

3.1 Labour legislation 37

Main labour law restrictions 37

3.2 Enterprise survey 38

Assessing the influence of legislation on investment and growth 39

The most serious concerns 39

Lack of skilled workers 40

The impact of strikes 40

The labour laws and how restrictions are overcome 43

Absenteeism and workplace discipline 45

Wages and labour costs 47

Low productivity 49

3.3 How to improve the Labour Act 51

Clarify ambiguities 51

Adjust the wage structure 53

Reform the Bonus Act 54

4 The complaints of labour 57

Working conditions 57

Employment security 59

The lure of working abroad 60

4.2 Union leaders' key areas of concern 61

Social security 62

Labour legislation evasion and inadequate enforcement 63

Permanent employment status 65

4.3 Labour institutions 67

The Labour Office 67

The Labour Court 69

Tripartite institutions in Nepal 70

5 From insurgency to industrial conflict 73

5.1 The upsurge in strikes and demonstrations 73

5.2 The ANFTU campaign 74

Three-tier minimum wage structure 74

Regularization of employment contracts 75

ANFTU tactics 76

The ANFTU moves into the mainstream 76

Repercussions of the ANFTU campaign 77

5.3 The industrial relations environment 80

Promoting workers' rights and economic development 80

6 International organizations and the Nepalese labour market 85

6.1 The World Bank 85

The 2003 Trade and competitiveness study 85

The World Bank's change of position 91

The World Bank's Doing Business reports 92

World Bank warnings 95

6.2 The IMF 95

6.3 The ADB: A distinctive perspective 95

6.4 The ILO: An integrated approach to reform 96

6.5 The need for policy coherence 98

7 Recent attempts at reforming labour legislation and labour market institutions 101

7.1 Nepal's Tenth Plan 101

7.2 The labour ordinance of 2006 101

Triangular employment relationships 102

New regulations for SEZs and EPZs 102

Obstacles to strikes 103

Withdrawal of the Labour Ordinance 103

7.3 SEZs 103

7.4 Backdoor ban on strikes 104

7.5 Restarting labour market reforms 105

8 The relationship between economic trends and industrial relations 109

8.2 Trends in economic growth and the way they correlate with labour legislation and labour market institutions 109

Growth levels 110

Patterns in agricultural and non-agricultural sectors 112

Trends in imports and exports 114

Stabilization and structural adjustment programme 115

The impact of reforms 116

Reasons behind Nepal's economic decline 119

8.3 Trends in investment and the way they correlate with labour legislation and labour market institutions 122

Investment pattern since 1990 122

9 Employment and incomes 129

9.1 Labour market trends 129

Labour force participation rates 129

Underemployment 132

Employment by sector 133

9.2 Working poor, income inequality and poverty 136

ILO estimates of working poor 136

NLSS estimates of inequality and poverty 139

The rise in remittances 144

9.3 Wages, productivity and the labour share of output 146

Wage trends 146

Productivity and labour costs 150

Rigid labour laws versus wage flexibility 153

10 Conclusions and policy recommendations 157

10.2 The case against radical labour market deregulation 158

10.3 The way forward 159

Trade unions 159

Labour legislation and labour market institutions 162

Social security reform 166

Need for clarity and policy coherence 170

Appendix I Chronology of key political and industrial relations events in Nepal 173

Appendix II Enterprise survey questionnaire: Investment, growth and decent work, Nepal 2006 185

Appendix III Technical note concerning the costs of selected basic social protection benefits in Nepal 2007-2034 197.

Notes:

Published in association with Academic Foundation, New Delhi.

Includes bibliographical references (pages [205]-208) and index.

ISBN:

9789221201663

922120166X

OCLC:

185691020