labor relations and labor regulations in nepal

Labour relations and Labour Regulations in Nepal

Presentation on Labour relations and Labour Regulations in Nepal

• Nikesh Pradhan 61• Sonika Shakya 62• Nitesh Dubedi 63• Rina Manandhar 64

BY

Labour relations and Labour Regulations in Nepal

Labour Relations:o Concepto Objectiveso Actors of Labour Relation

Trade Unions:o Concepto Functionso Typeso Reason for Joining Trade Unions

Labour relations

• Concept: Labour relations encompasses a set of phenomena, both inside

and outside the workplace, concerned with determining and regulating employment relationship between management and employees or among employees and their organization that characterize and grow out of employment.

Labour relation refers to a system that makes a social dialogue

possible among employees, employers and government representative.

Labour relations and Labour Regulations in Nepal

Labour Relations:o Concepto Objectiveso Actors of Labour Relation

Trade Unions:o Concepto Functionso Typeso Reason for Joining Trade Unions

Labour relations

Objectives:1. To enhance economic status of worker. 2. To avoid industrial conflicts and their consequences.3. To extend and maintain industrial democracy.4. To provide an opportunity to the worker to have a say in the

management decision making.5. To regulate production by minimizing conflicts.6. To provide forum to the workers to solve their problems through

mutual negotiations and consultations with management. 7. To encourage and develop trade union in order to develop workers

collective strength etc.

Labour relations and Labour Regulations in Nepal

Labour Relations:o Concepto Objectiveso Actors of Labour Relation

Trade Unions:o Concepto Functionso Typeso Reason for Joining Trade Unions

Labour relations

• Actors of Labour Relation:

Labour relations

• Actors of Labour Relation: Employees/Trade Union :

It includes employees, trade union, which is concerned with

Employers and their Organization: Government: The Government keeps an eye on. Both the trade unions and

employers' organizations to regulate their behaviors in the interest of the nation.

Labour relations and Labour Regulations in Nepal

Labour Relations:o Concepto Objectiveso Actors of Labour Relation

Trade Unions:o Concepto Functionso Typeso Reason for Joining Trade Unions

Trade Union

Concept: It is an organization of workers or employees formed mainly → to negotiate with the employers on various employment related issues → to improve the terms and conditions at their workplace → to enhance their status in society. An organization that represents employees’ interests to management

on issues such as wages, work hours, and working conditions An organisation formed by workers to protect the interests of their

members.

Labour relations and Labour Regulations in Nepal

Labour Relations:o Concepto Objectiveso Actors of Labour Relation

Trade Unions:o Concepto Functionso Typeso Reason for Joining Trade Unions

Trade UnionFunctions:• Collective bargaining →Represent members to negotiate with employers, for better wages

and conditions of employment.

• Safeguard jobs →Protect jobs of members

• Cooperate with employers →For the benefits of members, resolve disputes in a mutually

acceptable manner

• Political function →Support pro-union political parties

Trade Union

Functions:Social function → Support members with recreation facilities and benefits for

unemployment, illness, retirement, death

Labour relations and Labour Regulations in Nepal

Labour Relations:o Concepto Objectiveso Actors of Labour Relation

Trade Unions:o Concepto Functionso Typeso Reason for Joining Trade Unions

Trade Union

• Types of Trade Union:1. Industrial Unions or Employers’ Unions: Members work in the same industry, e.g. banking (IBOA), PABSON etc.2. Craft Unions: Members belong to a particular trade and have served an apprenticeship

e.g. Brick and Stone layers Trade union, Barber’s union etc.3. White Collar Unions: Members are usually professional e.g. teachers unions, NELTA etc.4. House union (company or enterprise union) Members are from the same company regardless of occupation or job.

Labour relations and Labour Regulations in Nepal

Labour Relations:o Concepto Objectiveso Actors of Labour Relation

Trade Unions:o Concepto Functionso Typeso Reason for Joining Trade Unions

Trade Union

• Reason for joining Trade Union:1. Greater Bargaining Power. The individual employee possesses very little bargaining power as

compared to that of his employer. If he is not satisfied with the wage and other conditions of employment, he may join union to have greater bargaining power.

2. Make their Voices Heard The desire for self-expression is a fundamental human drive for most

people. All of us wish to share our feelings, ideas and opinions with others. Similarly the workers also want the management to listen to them and it is possible through Trade Unions.

Trade Union

• Reason for joining Trade Union:3. Minimize Discrimination

4. Sense of Security The employees may join the unions to secure adequate protection from

various types of hazards and income insecurity such as accident, injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers.

5. Sense of Participation. The employees can participate in management of matters affecting their

interests only if they join trade unions. They can influence the decisions that are taken as a result of collective bargaining between the union and the management.

Trade Union

• Reason for joining Trade Union:

6. Sense of Belongingness Many employees join a union because their co-workers are the members

of the union.

7. Other Reasons At times, an employee joins a union under group pressure; if he does not,

he often has a very difficult time at work. On the other hand, those who are members of a union feel that they gain

respect in the eyes of their fellow workers. They can also discuss their problem with’ the trade union leaders.

Collective Bargaining

• Concept• Process

Collective Bargaining

• Concept:

Collective Bargaining is a process in which the representatives of a Labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship”.

It is the process of negotiation between firm’s and workers’ representatives for the purpose of establishing mutually agreeable conditions of employment

It is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation

Collective Bargaining

• Concept• Process

Collective Bargaining

• Process:1. Prepare This phase involves composition of a negotiation team

The first thing to be done is to determine whether there is actually any reason to negotiate at all

2. Discuss Here, the parties decide the ground rules that will guide the

negotiations

Collective Bargaining

• Process:3. Propose This phase involves the initial opening statements and the

possible options that exist to resolve them. In a word, this phase could be described as ‘brainstorming’

4. Bargain This stage comprises the time when ‘what ifs’ and ‘supposals’

are set forth and the drafting of agreements take place

Collective Bargaining

• Process:5. Settlement Once the parties are through with the bargaining process, a

consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue

Collective BargainingProcess of Collective Bargaining

Labour Disputes

• Causes• Settlement Provisions

Labour Disputes

• Causes Wages and Salaries

→ when employees disagree with the process of determination of wage and salary, dispute begins.

Bonus → employees consider bonus as a part of payment due to them and thus bonus distribution leads to dispute.

Personal Cause → fines, dismissal, suspension are causes of personal disputes

Labour Disputes

• Causes Violence and Indiscipline

→violence and undisciplined action of workers create disputes between workers and management, e.g. fighting, failure to obey rules, use of drug etc.

Union affiliated with different parties→there may be multiple unions in same organization affiliated with different parties, they all have different ways of handling issues which often result in dispute.

Labour Disputes

• Causes• Settlement Provisions

Labour Disputes

Filing complaint to the employer

Bilateral discussion

Involvement of Labour office

Appointment of mediator or Constituting Dispute settlement Committee

Right to appeal

According to Labour Act of Nepal 1991, the dispute settlement in Nepal includes following steps:

Provisions and Features of Labour Act

Provisions and Features of Labour Act

Labour Act,1992 (as amended in 1998)Main Features and Provisions

a) Job security: This provision relate to● Position classification of workers

● Appointment letter to workers● Generally no employment to foreign workers● No termination of service of permanent employees

Provisions and Features of Labour Act

Labour Act,1992 (as amended in 1998)b) Working Hours

● 8 hours per day or 48 hours per week; one day holiday per week.● Overtime for extra hours of at one and half

times of normal wage. ● Attendance register for workers e.t.c.

Provisions and Features of Labour Act

Labour Act,1992 (as amended in 1998)c) Wages

● Minimum wages must be paid as specified by the government.

● Annual increment to permanent workers.● No unauthorized deduction from salary.

d) Health and Safety ●Proper cleanliness of workplace. ● Safety equipments and fire fighting

equipment

Provisions and Features of Labour Act

Labour Act,1992 (as amended in 1998)e) Welfare

● Welfare fund for workers ● Compensation for injury ● Housing, canteen and rest room

Conclusion

To conclude we can say that labour is lifeblood of any organization; if we are able to maintain a good industrial labour relation the prosperity of both employer(industry) and employees wil be at extremity.

RefrencesAgrawal, Dr. GR. (2004). Foundation of Human Resource

Management in Nepal. Bhotahity, Kathmandu, Nepal: M.K. Publishers & Distributers

Adhikari, D. R. (2002). Fundamentals of Human Resource Management Text and Cases. Kathmandu: Manakamna Books.

Labour Act of Nepal 2048

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