Industrial Relations_Unit II_By Singa Lama.pdf

7/27/2019 Industrial Relations_Unit II_By Singa Lama.pdf

1/5

Industrial Relations - Singa LamaKantipur Valley College, Purbanchal University

1 Unit II: Labour Policies & Legislations | Singa Lama | [email protected] |www.facebook.com/singa.lama

Technical NotesforBBA Semester VI Students

UNIT II: LABOUR POLICIES AND LEGISLATIONS1. Features of Labour Policy:Labour Policy in Nepal as been legislated under Labour and Employment Policy 2062 by the

Government of Nepal. It has emerged as an outcome Nepal's commitment to democraticgovernance and ratifications to different ILO resolutions.

The salient features of the Nepalese Labour Policy are as follws:a. Accepting labour as keystone of development of human li fe, personal ity and

civilization: Under its "Background" section, the Labour Policy has accepted labour askeystone of development of human life, personality and civilization. It has furtherstated that since income distribution can take place in society only through occupationor employment, the right to work is considered one of the fundamental rights of theperson.

b. Organizing and Streamlining Labour with ILO Guidelines: The policy states thatthe enforcement of that policy has made it possible for the Nepalese labour sector totake on a concrete shape and for the efforts for organizing and streamlining the laboursector to proceed along the International Labour Organizations (ILO) basic guidelines.

c. Responsive to Poverty Alleviation: The Labour and Employment Policy 2062 hasbeen promulgated in response to the felt need for attaining the goal of alleviatingpoverty through the creation of income-generating employment, as put forth withpriority by the Ninth and Tenth Plans, to face the existing challenges by exploring andtapping the new opportunities and potentials of the labour and employment sectors, topromote production-oriented employment by eliminating forced labour practices,including bonded labour, to make the just, healthy and cordial labour-related

development a subject of common initiative and interest of all sectors and agenciesconcerned.

d. Provision of Long Term Goals: It has provided the provision of long term goals asfollows:

i. to provide productive, non-discriminatory, exploitation-free, decent, safe andhealthy work opportunities for citizens of the working ages by building anenvironment of friendly investments, in addition to building and managing alabour market that contributes to the national economy so that it can competeat the global level.

e. Clear Objectives: Thepolicy hasvery much clearly outlined its objectives as follows:

i. To pave the path of sustainable economic development by offeringopportunities of productive and full employment for the entire workforceavailable in the country and by creating an investment-friendly environment.

ii. To augment productivity by eliminating forced labour practices, includingbonded labour, as well as by establishing congenial labour relations throughgradual introduction of international labour standards at the workplace in bothformal and informal sectors.

iii. To make the labour market safe, healthy, competitive and open by developinga social security system that also encompasses the informal sector, as well asby promoting and developing occupational safety and health.

iv. 3.4 To enhance the prospects of employment and self-employment bydeveloping high-quality multi-skilled human resources.


2/5




v. To ensure equal access of women, dalits, indigenous nationalities and thedisplaced people to employment.

vi. To eliminate child labour.vii. To make labour and employment administration smart, up-to-date, efficient and

effective.f. Separate Strategies for Separate Objectives: More specifically, the policy has

unique provision of separate strategies for each and every seven objectives termed as"Policy and Policy Action". This provision has made the policy highly practical,scientific, objectivity oriented and vivid.

4. Structure of Labour Adminis tration in Nepal:4.1 EVOLUTION OF LABOUR ADMINISTRATIONThe Ministry of Labour and Transport Management (MoL&TM) is one of the executing bodiesof His Majestys Government with the responsibility of looking after the working population ofNepal. To understand the role of the Ministry, it may be necessary to have a historical

perspective of its development.Rana Period (Before 1951): There were no significant industries as such before 1951 in thecountry as it was more or less shut out from the world. However, the Industrial Council formedin 1935 functioned as the central unit of labour administration with the Bada hakim, Gosworaand Gauda assuming the roles of the executing agencies. Even the inspector-general ofpolice in Kathmandu and the brigadier-general of Lalitpur and Bhaktapur were involved inlabour administration.

Post-Rana Period (1951-1960): After the advent of democracy in 1951, the workforce wasencouraged to advocate and demand for better wages and living conditions. This resulted inwide disturbances in the industrial sector. An enquiry commission was set up by thegovernment to study the labour condition and recommend for resolving the disturbances. The

commission highlighted the necessity of labour laws and asked the government to enact them.The first labour law, the Nepal Factory and Factory Workers Act, 1959, was enacted on 20thJune 1959. However, for various reasons, this was not brought into enforcement at that time.Nevertheless, this is considered as a landmark in the history of labour administration in Nepal.The Ministry of Industry and Commerce was established in 1951 and the Department ofIndustry under the Ministry was given the responsibility of looking after the labouradministration. The local administration used to look after the local labour problems.

Panchayat Period (1960-1990): The Nepal Factory and Factory Workers Act, 1959 wasenforced in 1962 with some amendments resulting in the centralization of the rights offreedom of association. This resulted in the banning of trade unions. Labour activities werepermitted only under the umbrella of Nepal Labour Organization The process of labouradministration at the local level as a separate unit started with the Department of Industry in1966 at Biratnagar where most of the manufacturing industries were concentrated and wherethe working class were concentrated. Central level administration unit was established only in1971 under the Ministry of Industry and Commerce with the name of Department of Labour. In1981, the Ministry of Labour and Social Welfare was established and Department of Labourwas kept under this with local labour offices at the field to look after the labour administration,industrial relations, labour inspection job and vocational training.

Post Panchayat Period (1990 onwards): Two prominent labour laws, the Labour Act, 1992 andthe Trade Union Act, 1993 were enacted and enforced annulling the previous Nepal Factoryand Factory Workers Act, 1959. The social welfare function of the Ministry of Labour wasshifted to the Ministry of Education in 1992 and the Ministry of Labour was focussed only onlabour issues. Skill development centers and labour offices were opened under the

Department of Labour to give wide coverage of labour administration, labour inspection,industrial relations and employment services in the country.


3/5




Recently, in 2000, the function of transport management was added to the Ministry of Labourand named as the Ministry of Labour and Transport Management (MoL&TM).Thus, the labour administration has undergone transformation with changing roles every eightto ten years since its establishment as Factory Inspectors Office in 1966. Initially, the labour

administration function was allocated under the Ministry of Industry. Then in 1971, theDepartment of Labour was established under the same ministry. In 1981, the function wasplaced under a separate ministry handling also the social welfare function the Ministry ofLabour and Social Welfare. In 1992, the social welfare function was detached from theministry, which held only the labour administration function. But in 2000, the ministry wasagain added the responsibility of transport management along with the function of labouradministration.

4.2 INSTITUTIONAL SET-UPThe Job Distribution Rule, 2000 of His Majestys Government has provided a 16- pointmandate to MoL&TM out of which 13 are labour related jobs. The present organizationstructure of MoL&TM with DoL and its field offices is given below.

MoL&TM is a policy level institution for labour administration that is executing itsactivities inside the ministry with two divisions. The division and section break-down isas follows:

Labour Management, Monitoring, Manpower and Technical Division Labour Management Section

Manpower Development and Employment Section Policy, Planning, Research and International Divis ion Policy, Planning, Research and Documentation Section Child Labour and International Relations Section Legal Affairs Section (Independent section)

Joint secretary level officers look after the division and under secretary level officers or sectionofficers look after the sections. Policy, plan formulation, legal reforms and internationalrelations are the major functions being carried out by the ministry. Besides, wage fixation, theministry is also carrying out industrial relations at the policy level.

The Department of Labour and Employment Promotion (DoL&EP) is a central level executionbody of labour administration as well as the coordinating body of all labour offices and training

centers at the field level. There are several sections in the department as follows: Industrial Relations and Legal Section


4/5




Employment Promotion Section ILO and Trade Union Section Planning and Monitoring Section Administration Section Accounts Section Inspection and Manpower Section

Among the different sections, the Industrial Relations and Legal Section looks after theindividual and collective grievances and industrial disputes and concentrates mainly onenforcing the Labour Act 1992 and the Bonus Act 1973. The Employment Promotion Sectionis mainly responsible for granting permission to different manpower agencies to sendNepalese manpower in foreign countries. The ILO and Trade Union Section registers nationaltrade unions and federations of trade unions at the central level. The Planning and MonitoringSection, the Administration Section and the Accounts Section are concerned with the internalmanagement of the department. The Inspection and Manpower Section coordinates the fieldoffice jobs of labour inspection, occupational safety and health, and skill development and

vocational training.There are 10 labour offices under the DoL&EP for administering and monitoring the provisionsgiven by the labour legislations. These labour offices cover all the administrative regions of thecountry. They are as follows:

Jhapa Labour Office Mechi zoneBiratnagar Labour Office Kosi zoneJanakpur Labour Office Sagarmatha and Janakpur zonesBirgunj Labour Office Bara and Parsa districts of Narayani zoneHetauda Labour Office Makawanpur and Chitwan districts of Narayani zoneKathmandu Labour Office Bagmati zoneButwal Labour Office Lumbini and Rapti zones

Pokhara Labour Office Gandaki and Dhaulagiri zonesNepalganj Labour Office Bheri and Karnali zonesDhangadhi Labour Office Seti and Mahakali zones

These labour offices (headed by labour officers and or factory inspectors) are responsible todeal with industrial dispute settlement, labour inspection, occupational safety and health,registration of enterprise level trade unions, and other related labour matters occurring underthe respective geographical jurisdiction.

There are 14 skill development training centers and 2 vocational training centers in differentparts of the country operating under the DoL&EP. The main objective of these centers is toprovide skill training to the needy population so that they can be absorbed in the labourmarket for employment or can be self-employed. The major skills covered in these training

centers are cutting and sewing, hair dressing, general mechanics, house wiring, plumbing,welding, press composing, electronics, computer etc. Besides these permanent nature ofinstitutional arrangements, the following special projects and programs operate under thejurisdiction of MoL&TM:

Employment Exchange Service Project: This project functions under theDoL&EP. Its main objective is to collect information regarding manpower requirements andtraining, and disseminate them to relevant agencies. It also has the responsibility to developcurriculum for skill and vocational training and provide employment exchange services. Thisproject is solely being operated by one section officer.

Occupational Safety and Health Project : This project has been in operation since 1995.The main objective of this project is to conduct studies and research of OSH and build

awareness regarding these to all concerned parties through training of trainers, phase wisetraining and interaction, discussion meetings, posters and exhibitions.


5/5




Child Labour Elimination Program: This program is being operated at the Ministry with theassistance of ILO/IPEC and other donor agencies. Its main objective is to plan and coordinatethe implementation of time-bound action programs to eliminate child labour in the country.

Women Skill Development Training Centers: These training centers under the Ministrycater to the specific needs of women workers by providing 9-month long training packages indifferent skills areas.

SYLLABUS FOR UNIT II PRESCRIBED BY PURBANCHAL UNIVERSITY

UNIT II: LABOUR POLICIES AND LEGISLATIONS T.H. 5Features of labour policy; The Labour Act; The Trade Union Act and structure of labour administration in Nepal.

Documents

Industrial Relations_Unit II_By Singa Lama.pdf