Paper presented for discussion in Industrial Relation and Labor Policies Seminar jointly organized by Nepal Trade Union Congress (NTUC) and Japan Industrial Labour FoundationIn Kathmandu, Nepal on 12-13 December 2013 Kathmandu, Nepal

IMPACT OF GLOBALIZATION AND INITIATION OF TRADEIMPACT OF GLOBALIZATION AND INITIATION OF TRADE UNIONUNION

WITH SPECIAL REFERENCE TO THE INDUSTRIALWITH SPECIAL REFERENCE TO THE INDUSTRIAL RELATIONS IN NEPAL RELATIONS IN NEPAL

WHAT IS GLOBALIZATION? WHAT IS GLOBALIZATION?

Globalization that defines time exclusively after the fall of Berlin Wall means many

things. It is freer movements of goods, services, capitals, ideas, cultures, knowledge

across the state borders.

It also represents social and political to economic and environmental movements

that joins people, countries, and societies around the world.

Similarly, globalization joins cultures - develops, improves, and facilitate people

share it across the globe that has given birth to a new global civil society. It also

unites people, shares their stakes, and helps each other to meet the challenges

they face.

However, this paper is concerned with one aspect of globalization that is economic.

On this background, the three definitions given below have defined what

globalization is in economic terms.

Reputed American journalist, columnist and author Thomas L. Friedman has defined

globalization as – “the inexorable integration of markets, transportation systems,

and communication systems to a degree never witnessed before – in a way that is

enabling corporations, countries, and individuals to reach around the world farther,

faster, deeper, and cheaper than ever before, and in a way that is enabling the

world to reach into corporations, countries, and individuals farther, faster, deeper,

and cheaper than ever before.” (1)

Acclaimed American economist of Indian origin Jagdish Bhagwati mentions that

although globalization mean many thing but when focused exclusively on economic

globalization it “constitutes integration of national economies into the international

economy through trade, direct foreign investment ( by corporations and

multinationals), short-term capital flows, international flows of workers and

humanity generally, and flows of technology. . . .” (2) According to one of the most

read economist of our time and a noble laureate Joseph E. Stiglitz, globalization is

“closer economic integration of the countries of the world through the increased

flow of goods and services, capital and even labor”. (3)

Globalization has miraculously enlarged scope for people and countries that have

dream to do better and are committed to be productive and creative however, it

has marginalized many countries and communities – while has created enormous

new opportunities for others. The big questions remains WHY SO ? Perhaps we can

answer the question after we end this session.

Brief Historical Background of Globalization

Globalization of modern era is young but according to Friedman from mid-1800s to

the late 1920s the world experienced similar era of globalization as we have today

when compared to volume of trade, capital and labor flows across borders relative

to GNPs and population.(4) Friedman further states that the World War I and the

Bolshevik Revolution in Russia that divided the world into two ideological camps -

abruptly ended the first era of globalization. The Great Depression followed it. (5)

Only two differences are discernible between the two eras of globalization. While

Globalization I was technologically characterized by the revolution in transport

facilities and politically by the British power, British pound, and British navy.

However, Globalization II - is identified by the Information and Communication

technology under the political domination of American dollar, American culture,

American power, and American navy.

John Maynard Keynes was one of the most reputed economists of the last century.

His ideas and works are highly appreciated and discussed among all the great

economists of our time and he is considered relevant in solving present economic

crisis experienced especially in America and Europe. Keynes, while writing about

the “Economic Possibilities for Our Grand children” predicted in 1930 that there

would be no poverty in Britain and other industrial countries by the end of 20th

Century. Keynes meant that during the time of his grand children there will be no

poverty in his part of the world.

That time it was quite unbelievable. The world was living under the dire

circumstances of the “Great Depression”. Everywhere there was deep despair,

pessimism, and joblessness and homelessness. Currency notes in many countries

were almost worthless. Take an example - only on Tuesday, October 29, 1929, the

market in the U.S., lost some $14 billion. The loss for that week was an astounding

$30 billion. This was ten times more than the annual federal budget and far more

than the U.S. had spent in WW I. Germany was worst hit and Japan was mildly hit.

Keynes had some solid ground for this great prediction. He was convinced that

because of the dramatic march of the science and technology and the ability of the

economy in absorbing advanced technology, it could happen. Moreover, really that

happened, but much earlier than he anticipated. In industrialized countries, the

generation of his grand children could not see poverty. It was eliminated during the

lifetime of Keynes children.

Many countries attained growth of 7 percent a year, sustained over 25 years was

never heard before the latter half of 20th Century. When economy became more

open and integrated, it allowed countries to import ideas, technologies, and

knowhow from any country in the world. (6) Foreign Direct investment, foreign

education, research, and innovation in advanced countries helped companies and

individuals in developing countries find strong and lasting networks that helped

their countries reinvent their economies.

Economic Globalization is yet to reach in Nepal

Although located between world’s second and fourth largest economies- China and

India, Nepal is yet to realize how globalization helps in solving its economic woes.

The global market has overwhelmingly intruded Nepali markets, has become a part

of it, but Nepal has yet to build its market ability to reach the global markets with

the exceptions of a few agro based products. Besides, being integrated with global

markets, Nepal’s many villages and household economy is yet to be Integrated into

national economy.

The state hardly reaches to them with its services, but this saved the country from

being collapsed during the decade long armed insurgency, and continued political

instability. The insurgency left many parts of the country disconnected with the

national mainstream. It destroyed billions of physical and institutional assets of

Nepal and drove Nepal away from the first stream of globalization. Referring to DFID

sources Prof. Hari Bansh Jha mentions that and the conflict consumed some 8 to 10

per cent of the GDP of Nepal. (7)

According to the National Peace Campaign the estimated cost of the conflict

between 1996 and 2003, was to the level of $66.2 billion, however its economic

costs were estimated some $2 billion. (8) Citing an assessment based on an

empirical study of 93 countries, a research study states that Nepal lost some 15.4

percent of GDP. (9)

For insurgency, Nepal miserably missed the economic opportunities offered by

globalization, however its immediate neighbors exploited all such prospects and

enhanced their economy. Because of conflict, thousands of most productive working

age populations were engaged in war. They were killed and became disabled. Those

not engaged were displaced and migrated to Gulf countries, Malaysia, South Korea

and some in Europe and America. The war not only damaged the physical

infrastructures, industries, and the morale of the entrepreneurs, it snatched the

trust of the youth work force in the country and on the government of the country.

In short, socio-political, economic, and ethnic unrest has painfully disturbed Nepal’s

economy since 1996.

Nepal’s leading English language daily - The Himalayan Times has published a

terrible story in this regard. Giving reference to a global survey’ published by the

Gallup World Poll‚ 2012. (10) It says that due to the absence of job opportunities

“lack of confidence in the government‚ fewer employment opportunities‚ and social

pressure‚ more of the younger population have developed an intention to migrate

permanently to another country”. According to Young people’s intention to migrate

permanently to another country‚“Over 27 per cent of the youth aged between 25 to

34 had an intention to migrate permanently to another country‚ while a little less

than 20 per cent of the youth aged between 15 and 24 intended to migrate

permanently to another country in 2011”, the paper states. (11)

According to the Third Nepal Living Standards Survey (NLSS-III), absolute poverty

declined in Nepal by 5.7 percent between 2003-04 and 2009/10.

The first such survey in 1995-96 had recorded 41.76 percent of the population living

below the poverty line. In the second survey in 2003/04, it came down to 30.85 and

the last round of survey 2010/11 says it is approximately one quarter of the total

population, but geographical variants in poverty remains. Because of this rural

poverty remains high in mountainous regions especially in Mid Western and Far

western regions.

A study made by Oxford University (12) says that among the 22 countries from

every geographic region in the developing world, Nepal has made the fastest

progress in reducing Multidimensional Poverty (MPI) in a five-year period (2006-

2011). It went down from 65% to 44% percent.

However, it is not the economy of the country that caused this decline in poverty in

Nepal, but is influenced mainly by inflows of remittances. According to government

sources, some 2,000 youths seek permission for foreign employment every day.

About 2.5 million people are reported to have been employed in Gulf countries,

South Korea and Malaysia. If people working in India where Nepali nationals do not

need visas are accounted including some other countries where they are living and

working without legal documents – the number of youth migrants from Nepal reach

some 5 millions.

The health of a country’s economy is examined by the balance of trade in its favor and that

in case of Nepal is terribly disastrous. Nepali export is limited to around some 13-14 percent

– those also mainly primary products, whereas the import has reached around some 86-87

percent. It is dependent even upon vegetables, fruits, meats, and grains. To celebrate

festivals like Dashain and Tihar it has to import goats, flowers, and dried fruits worth of

billions. The bills for all these payment come from remittances.

The remittances cover some one quarter of its economy and if the remittances earned by

people working in India and other countries and brought into the country by none banking

channel is calculated, it claims the single largest share in national economy that accounts

more than one-third share. Those mainly unskilled young workers employed in foreign land

are making national economy run.

In 1950 average Nepalese was 19 times poorer than average US citizen was, but in 2008 the

gap widened and Nepal became 27 times poorer (13) The gap has widened and by now,

average US citizen nearly earns 29 times that of the average Nepalese. Before China and

India liberalized its economy, Nepal was in much better position and now to make any

comparison with them is nothing more than a useless job.

Industrial Development in Nepal

Democracy more than a formal political system, is a culture of living and working

together and sharing each other’s stakes in a society. It is a force of human

activities unleashed and disciplined by freedom itself and it is freedom of the people

–that works as the biggest force of economic growth and development. Therefore,

unless everyone enjoys democracy at homes, schools, hospitals, streets, parks, and

shops and at working place, nations, or society can never prosper. Under some kind

of controlled regime too, they have achieved huge economic progress, but after

such progress, it is democracy or natural flow of peoples’ power that can sustain

them for long.

Industrial revolution that brought a new era in Europe in the eighteenth Century,

entered late in Asian mainland and South Asia. Nepal was no exception. Under some

public and private initiatives, few industries were opened in Nepal only after the

Second World War. During the Panchayat regime (1960-1990) –a period of direct

rule of the king, various industrial estates at different parts of the country were

established under government initiatives. Hundreds of other industries were

opened. Some of the industries did very well.

However, in the absence of political and economic freedom, private initiatives were

much discouraged and independent labor unions were banned. There were few

professional bodies representing teachers, medical practitioners, journalists, and

lawyers- but they had to work under a limited mandate.

Only after the restoration of multi-party democracy in 1990 private sector came

with huge enthusiasm. Labor unions came into existence. Buzzing Industrial

environment and trade union movement came together and naturally, it demanded

a new definition of industrial relations not heard earlier.

The new elected government after the 1990 popular movement - liberalized its

economy. Private investment in manufacturing and service sector reached in an

unprecedented scale. Some multinationals companies - mainly from India came with

big promises. The construction sector and infrastructure development gained a new

momentum.

According to Department of Industry total number of industries categorized under

different sectors from agro and energy based to manufacturing, minerals, service,

construction, and tourism since then are some 2335 ( 2012 figure). The numbers of

small-scale industries are calculated around some 3000 excluding home based

cottage industries. These industries have employed some half a million workers.

However, there are only 10 labor offices scattered around the country in charge of

executing the labor related enactments. There is a single labor court in Nepal to

decide all labor related cases.

Including those industries teachers in public school system, civil servants, and

employees in state owned finance and banking sectors have rights to join trade

unions. They have rights of collective bargaining and rights to strike however, the

government has declared 16 sectors as essential service sectors that includes

public transport, banking, health care and security. The government may prohibit

strikes, if considers the strike hampering peace and interests of the nation.

Restoration of democracy in 1990 was followed by the enactment of Labor Act

1992, Trade Union Act 1993, Labor Rules, and Regulations 1994. These enactments

brought industrial relation into prominence. These laws and regulations have

created some tripartite structures to mediate, arbiter, fix minimum remuneration,

bonded labor rehabilitation, and monitoring committee as well as social security

fund management provisions.

Better Industrial Relations: Democracy at the work place

Industrial relations play a crucial role in establishing and maintaining industrial

democracy. (14) This means democracy for the workers at their working place.

Conflicts are inherent and inevitable in state and society. So is the case with

industries. Industrial conflicts in organizations are natural and unavoidable; but it is

manageable. When managed well it commands huge success and achievements.

Managing conflicts means employing cordial relationships and sharing each-others

stakes between employers and employee to perform their crucial roles effectively

and efficiently.

(15)

Industrial relations are relations between employers and employee in course of

running industries, businesses, companies, and projects of various natures on areas

from production of goods and services to quality assurances, marketing, profit

sharing, and pricing – including wage determination.

Failures to maintain better Industrial Relations mean conflict eruptions in industries.

According to Olakitan, “Usually conflict result in wasteful use of human and material

resources leading to low productivity, retrenchment, dismissal, and alienation”.

It is also manifested in the form of unrest, work stoppage (strikes), sabotage,

absenteeism, lock out, and so on. The most common of the manifestation of conflict

is Strike. (16)

According to Arpita Nepal, Koshish Acharya and Shreeya Neupane (17) there are

some key constraints in resolving industrial conflicts in Nepal that includes political

issues taking precedence over workers’ issue and limited dialogue between

employers and employee. Inter-union rivalry, difficulty in establishing an official

trade union for collective bargaining, weak implementation structures, weak labor

institutions and illegal, wild cat and unofficial strikes (18)

Nepal, Acharya and Neupane giving reference to some official sources have

presented some statistics about the number of disputes and trade union

representation that gives general idea about the nature and characteristics of

industrial relations in Nepal: (19)

Out of 219 industries in the country, 31.5% had no trade unions, 37% had

one trade union, and 31.5% had 2-5 trade unions

Trade union members constitute 8% of the labor force (2012)

There were only 33 industrial dispute cases in the year 2007, which increased

to 86 cases in 2008 and decreased to 53 cases in 2009.

In 2009, 11.4% cases were resolved through mediation with the help of labor

offices while most of the other cases were resolved internally with the

involvement of management and trade union representatives

In 2009, wage increment and payment of allowance (46.2%) was the main

reason for industrial dispute while permanent status (14.3%) was the second

most contentious issue.

As of 2008, 96.2% of people employed (over the age of 15) were part of the

informal economy

In a survey of 219 industries, only 16.4% were found engaged in collective

bargaining.

In addition, in 2012, there were 104 newly registered enterprise level trade unions;

323 existing trade unions renewed their registration.

If we evaluate the industrial disputes and industrial actions taking place in Nepal,

their features can be sketched from, some of the examples as given below:

1. While employers in many cases seek ways to exploit the weak points in worker’s

related laws of the country, trade unions beside putting their demands lawfully

before the employees and organize lawful strikes – to fulfill their demands, they

resort to unlawful means.

2. The insurgency that broke the collective bargaining process –gaining momentum

earlier, has not been regained. Under the pressure of political instability and

political transition - political parties have realized very tough crisis in values

creation and values adoption. That has affected the trade unions affiliated to them

and the constructive process of industrial relations too.

3. Labor movement in most cases are found politically motivated and employers

too, feel easy to find a political solution of the industrial disputes, rather than

following the right track of industrial relations – tending to break industrial peace

and productivity any time.

4. When trade unions fight for their supremacy, a collective bargaining process

following –the right track under the legitimate Collective Bargaining Agency,

ultimately suffers and worker’s genuine agendas go unaddressed.

5. Immediately after, major political parties and trade unions avowed their

commitments against BANDHA – the forced shut down of industrial activities in

August 2013, more than a dozen industries in the Bara-Parsa industrial corridor

remained closed for more than two weeks with demand to increase in the workers’

remuneration.

One example that a research report claims, exhibits general health of Nepal’s

economy - “out of 365 days in 2009 only 65 days were free from such kind of

disturbances. Additional to this in 145 industries labor disputes were observed in

2009. In analyzing the factor of export, import and labor productivity there would be

approximately a loss of NRs 1.8 billion due to one day bandha/hadtal. Instead of

industrial growth with a skilled employment generation there is a negative growth

of employment generation and industrial activities.” (20)

The report has also stated that all-together in 2009 there were 822 different kind of

bandha/hadtal organized by different groups including major political parties

including 142 of them of the major kinds. (21)

But Success are Larger than Failures

Take two examples that read the moods of the better industrial relations in Nepal:

First, in August 15, 2013, President of the Federation of Nepalese Chambers of

Commerce and Industry (FNCCI) Suraj Vaidya claimed, “industrial relations were

improving as we had witnessed significant decline in the number of shutdowns,

strikes, and acts of vandalism in the past two years. Recently, we were also able to

revise minimum wage in a relatively short period of time, which shows better

coordination between employees and employers.” (22)

In early this year The Federation of Nepalese Chambers of Commerce and Industry

( FNCCI ) has declared its plans to revive the Industrial Relation Forum (IRF) that had

remained dysfunctional for seven years and bring employers and trade union leaders under

the same roof to discuss their issues. FNCCI had also claimed that three major trade unions

have also agreed the concept paper it had developed and widely discussed among trade

unions and employers.

Trade unions are vigorously active in unionization of several sectors undermined

earlier. Workers have become more assertive for their rights but are also more

concerned on the overall health of the companies they are employed with. In public

forum, they seem more accountable to the quality of goods and service they

produce and are expected to deliver.

The second, when Education International was established in 1993, it encouraged

the divided teachers’ movements under the leadership of Nepal Teachers’

Association (NTA) and Nepal National Teachers’ Association (NNTA) work together

for the cause of teachers and education as a whole and initiated joint activity since

1995 similar to Joint Trade Union Coordination Center – Nepal after ITUC was

founded in 2006.

In 1999, both NTA and NNTA decided to form a single union and made a demand

with Government of Nepal to make such provision in the Educational Act of the

country. That followed the amendment of the existing educational enactments in

2002 that admitted -

“There will be a teachers' union in Nepal to work for the rights and interest of

teachers in public schools.” Earlier to this teachers' union were registered as a

social organization under National Guidance Act.

After this, all the five teacher unions in Nepal established by that time sat together

to make constitution for their common union and in Jan. 16, 2004 the Teacher Union

of Nepal (TUN) as per the provision of educational act of the country was

established.

Even a Social Dialogue Committee with representations from Ministry of Education

and Teachers’ Union of Nepal was constituted in 2005 with mandates to work jointly

on their common agendas.(23) The social dialogue committee worked wonderfully,

many of the teachers’ concerns and demands were addressed through this body

and even a seniormost MOES officials did not hesitate to work in a committee or a

delegation led by TUN leaders in TUN office.

However, the political development since then and emergence of new political

parties in the country and teachers’ bodies affiliated to them have created some

political complications and the ultimate goal of forming an independent and

unified teachers union in the country is yet to get realized.

Similarly, Nepal’s all major trade unions rising from deep distrust and rivalry have

initiated a new trade union culture of working together and addressing major

challenges they as trade union bodies were coping with.

Nepal Trade Union Congress (NTUC) and General Federation of Nepalese Trade

Unions (GeFoNT) were working together in addressing workers issues since 2003

through a joint mechanism and as mentioned earlier, after ITUC was founded, it

motivated ITUC affiliates in the country to form a common mechanism in working

together and ultimately establish a single national trade union center. As a result of

this in 2007, ten national trade unions in Nepal formed a Joint Trade Union

Coordination Centre ( JTUCC).

Earlier to this in December 2006, the four major national trade unions signed a 10-

point declaration committing them to follow democratic means to secure sound

industrial relations on all levels and promote social dialogue and to cooperate

among themselves in a constructive manner using social dialogue to achieve their

goals. (24)

Three months later in March 2007 NTUC and GeFoNT signed a Memorandum of

Understanding for single union formation.

Trade Unions in Nepal have asserted their roles as are stronger forces of socio-

political transformation and they have smooth access to political leadership of the

country. Nepal’s trade union leaderships have always worked in tandem with

employers’ bodies and they seem together with policy makers and making

advocacy for the same cause. Employers seem agreeing with major trade unions on

workers cause but they suspect whether the trade unions are able to stand with the

agreements with some smaller trade unions oppose them. (25)

Earlier on October 1, 2011, three major trade unions - Nepal Trade Union Congress

(NTUC), General Federation of Nepalese Trade Unions (GeFoNT) and All Nepal Trade

Union Federation (ANTUF), at a meeting of the Central Labor Advisory Committee

under the chairmanship of Prime Minister Baburam Bhattarai reached on a

landmark agreement.

The meeting had representations from the Labor Ministry, the Federation of

Nepalese Chamber of Commerce and Industries (FNCCI) and Confederation of

Nepalese Industries (CNI)- that explicitly mentioned that trade unions agreed 'no

work no pay’, ‘no strikes for next 4 years’ and employers’ right to ‘hire and fire’

workers if there remains a genuine cause.

As per the agreement, the private sector businesses and industries would

guarantee minimum social security to the workers and fix the minimum monthly

salary of workers at Rs 6200 while those working on daily wages will get Rs 231 per

day.

"We also decided to establish 10 Labor Relations Reform Committees at the district

level to make sure that industrial disputes draw timely attention of the authority

and actions are taken promptly to resolve the problems.

As for the social security package, the government is supposed to implement it by a

Social Security Act and through other necessary provisions.

Agriculture that according to the Department of Agriculture provides employment

opportunities to 66 percent of the total population and contributes about 39 percent

in the GDP with 13 percent of the total foreign trade of the country (26) has few

formal employment opportunities. Because of this 4 hundred thousand labor-force

that adds up each year in market has shown heavy migration trends –from rural to

urban areas and then to overseas especially in Gulf countries. The jobs they are

offered there are often reported to be dangerous and they suffer severe exploitation

and harassment. It has created two major challenges to economy as a whole – one,

the country is starving with youth population to run its rural economy heavily

dominated by agriculture and skilled labor supply for a thriving construction sectors

that offers tremendous opportunities. In both rural and urban areas, there is a huge

dearth of labor supply in plumbing, electrification, brick, and wood works.

Worker’s Power: the Power of the Economy in a Digitalized World

The greatest achievement of modern age is that there is no monopoly of any

individual, ethnic group, or nation over knowledge, science and technology and this

is the single greatest contributing factor of prosperity for all. The massive wealth

collected by many countries in the world is the result immense knowledge reserve

and their knack over modern science technology.

Globalization has been reshaped by Digitalization. Nearly after three hundred years

of industrial revolution, we have now information revolution that was initiated by

the last decade of 20th Century.

In today’s interconnected and highly competitive global market, only quality goods

and services produced in efficient, reliable, cost-effective way with smooth supply

chains allow a country achieve growth and development. These days the success

story of China and India tells it in an explicit way. Some years ago, it the case with

South Korea and earlier to it Japan.

Developing countries like Nepal coincidentally have been facing two challenges at

the same time. First, they have very few quality products to exports and second

they have to bear with several trade logistics barrier.

Workers education, workers training and workers motivation, morale and

satisfaction - plays a key role in enhancing quality of goods and services.

When a worker has good education, training, motivation, morale, and satisfaction,

it creates a sense of honor and confidence in him that ultimately will help realize

his/her power – that in many ways has helped nation and its economy grow faster

and go rich.

Equally important for a developing countries like us is to build a good infrastructural

bases – good transport, communication , banking and financial facility, no oil

shortages, continued electricity supply for 24 hours and strong legal security and

compensation packages available to investments – for national and foreign.

Similar is the case with dismantling cross-border trade impediments compatible to

free trade regime.

Every people of every ethnicity or region have some competitive edge. However, in

a modern economy only the highest level of quality education and training, quality

tools and quality environment available for workers and working age population

gives a country that “competitive edge”. That in real terms gives power to a worker

that fuels the industry and business house he/she works and that ultimately is

translated into national economy. Nothing is precious than workers’ power to

empower an economy.

Indubitably, government has a central role to play in building workers’ power - in

financing and sharing for workers’ education and training, providing basic social

security for workers and all working age populations.

In truer terms investment on education /training and social security is investment

for wealth creation and economy promotion.

Nancy Birdsall in an article (27) had raised a very pertinent issue that unlike in the

past there will not be large protest at the upcoming meetings of the IMF, World

Bank and WTO. She said that she has not made this observation because these

bodies have become more effective and legitimate when compared one decade

ago, but because they are seen as too small and impotent in the face of larger

market forces to bother with.

Joseph S. Nye - former US assistant secretary of defense and chairman of the US

National Intelligence Council in another article (28) has used a word “ DATOCRACY”

that incites fear of an Orwellian “e-1984”. He says the rise of big data, with all

potentials, has left many important questions unanswered amid recent revelations

about US National Security Agency surveillance programs. Who owns, who controls,

and who regulates the use of the data controls the world and that after all, is not

confined to governments and corporations; anonymous criminal groups can easily

abuse the information.

Similarly, when central governments are fundamentally weak, with markets – and

the enterprises that dominate them – providing almost all services, then both the

national and global governance become a most challenging job. It may seem

acceptable to those within the “gated communities” that benefit from it, but what

about all those left outside? Nye asks.

Nye further elaborates his point that world is organized into some 200 countries

but only 16 governmental entities account for two-thirds of the world’s income and

two-thirds of its population. Few multinationals claim bigger share of global property

than many countries.

However big and dominant role markets play, they can never produce and provide

sufficient amounts of public goods. Neither can we go away from the digital age. We

have to assert our survival with dignity – and there the most effective initiative

remained opened for us is a SOCIAL DIALOGUE.

When we mean democracy it is two-way dialogue between governments and people

and making each other accountable, and by Social dialogue we mean partnerships

between government, employers, workers and other stakeholders or consumers

community or their coalitions in designing, implementing and monitoring relevant

policies, strategies and activities in all economic, social and labor spheres.

Social dialogue also includes efforts to improve governance – at the local, national,

or international level partnerships with workers bodies and other civil society groups

– that will play a balancing role between markets, states, and public and enhance

their ability to address the real need of the people that a just democratic society

offers to all.

A weak state and failing industrial and business house cannot help the cause of the

workers and whereas a weak worker without power to make the state and

employers accountable to him cannot help the state and employer go rich. Better

industrial relations under an effective social dialogue process will indubitably help

our cause.

We live in an online world its immensity is beyond our comprehension (29) When state, society and economy are controlled by on line connectivity; the question remains how to build workers capacity to cope with the challenges, protect their stakes, and manage it with proper roles to government, business houses, and trade unions.

Hyper-connectivity will create enormous commercial opportunities, change the lives, works of people may be without their knowledge, and again it may push millions of people excluded and marginalized.(30)

Governments and trade unions have a most challenging job in helping its work force and members to meet those challenges posed by people thousands of kilometers away, where their agreements, rules and regulations do not work.

References:

(1) Thomas L. Friedman: Longitudes and Attitudes -Exploring the World After September 11,

Farrar Straus Giraux, New York, 2012, page 3.

(2) Jagdish Bhagwati: In Defense of Globalization, Oxford, (2004) page 3.

(3) Joseph E. Stiglitz: Making Globalization Work, (Allen Lane, 2006) page-4.

(4) Thomas L. Friedman: The Lexus and the Olive Tree, Anchor Books, 2000, page XVI.

(5) ibid, page XVII.

(6) Commission on Growth and Development: The Growth Report – Strategies for Sustained

Growth and Development , The World Bank, 2008, p-2.

(7) Economic Impact of ‘People’s War’ in Nepal: A Study- Vivekananda International

Foundation, October 17, 2013.

(8) Ibid.

(9) The Costs of War in Nepal, National Peace Campaign (NPC) January 2004, page-13.

(10) . . . . The Himalayan Times February 17, 2013

(11) ibid

(12) Sabina Alkire and José Manuel Roche: How Multidimensional Poverty Went Down:

Dynamics and Comparisons - Oxford Poverty & Human Development Initiative (OPHI),

Department of International Development, March 2013, www.ophi.org.uk

(13) Jose Antonio Ocampo and Rob Vos (edited) Uneven Economic Development, Zed Books

and Third World Network in association with United Nations, 2008, page 1.

(14) Arun Monappa : Industrial Relations, Tata Mcgraw Hill Education Pvt. Ltd. New Delhi,

2009, p-9.

(15) Olakitan Owoseni Omosolape : An Examination of Some determinants of Industrial

Confict in Employee-Employer Relationship, International Labour Organization, 2011.

(16) Olakitan page-6

(17) Industrial Relations – An Institutional Analysis, Samriddhi, the Prosperity Foundation,

July - 2013

(18) Giving reference to Poole Olakitan ibid page 10 has given six commonest forms of

strike:

1. WILDCAT STRIKE: This form of strike is in violation of contract and not authorized by the union because no reason or notice is given to employer before embarking on it.

2. SIT-DOWN STRIKE: This is type of strike involve workers being present at work but literally not working.

3. CONSTITUTIONAL STRIKE: This refers to actions that conform to the due procedure of the collective agreement. The agreement usually specifies the time and the procedure for conducting a strike by the workers.

4. UNCONSTITUTIONAL STRIKES: This is a strike action that does not conform to the provisions of the collective agreements or the relevant public policies.

5. UNOFFICIAL STRIKE: This type of strike is usually unauthorized by the union leadership. This happens because the memberships have lost confidence in the leaders and are therefore willing to exert direct pressure on the employer without theauthorization of leaders.

6. OFFICIAL STRIKE: These are strikes that are usually authorized by the leadership of the union.

(19) Arpita Nepal, Koshish Acharya and Shreeya Neupane : Industrial Relations – An

Institutional Analysis, Samriddhi, the Prosperity Foundation, July – 2013, page 3

(20) Industrial Relations and Enterprise Economic Survey Nepal-2010, FNCCI, Nepal

page-10

(21) FNCCI ibid

(22) The Himalayan Times (August 15, 2013.

(23) Report on Stakeholders’ Conferences on Educational Development Ministry of Education

and Sports (MOES) – Teachers’ Union of Nepal (TUN) Social Dialogue Coordination

Committee (2007)

(24) Nepal – Labour Market Profile 2013, Ulandesskretariatet – LO/ FTF Council .

(25) Trade unions to start collective bargaining - The Himalayan Times, July 8, 2013.

(26) (www.doanepal.gov.np,accessed December 12, 2013),

(27) In Defense of World Government, Project Syndicate , October 8,2013

(28) Governance in the Information Age, Project Syndicate, December 5, 2013.(29) Rod

Beckstrom, (29) Rod Beckstrom: The Rights of Digital Man, Project Syndicate

December 12,2013 .

(30) Rod Beckstrom, ibid.

Keshav Prasad Bhattarai Former President: Nepal Teachers’ Association,

Teachers’ Union of Nepal and Former General Secretary SAARC Teachers’ Federation

kpbnepal@gmail.com