Industrial Relation in Nepal
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The history of industrialization in Nepal is not very long. The process of industrialization actually started from 1950 onwards.
Only after the restoration of multi-party democracy system in 1990 and the enactment of Labor Act 1992, industrial relation issues gained importance. The nascent trade union movement acted as a catalytic agent in the promotion of industrial relation issues.
Therefore, the growth of the industrial relation activity was gradual and gained momentum within the last two decades.
• Unprecedented growth in the number of companies after the adoption of liberalization policy in Nepal after 1990 and also the growth in the number of trade unions provided the ground for the promotion of industrial relation issues which were then lying dormant.
• The enactment of Labor Act 1992, Labor Rules 1994 and Trade Union Act 1993 prepared the base for the trade unions to place the demands lawfully to the enterprises and organize lawful strikes in case of non-fulfillment of their demands.
Definition of Industrial Relation:
• Industrial relations may be defined as the relations and interactions in the industry particularly between the labor and management as a result of their composite attitudes and approaches in regard to the management of the affairs of the industry, for the betterment of not only the management and the workers but also of the industry and the economy as a whole.
Challenges/Contemporary Issues of Industrial Relation in Nepal:
• Suspicious management:
The Nepalese management has remained suspicious of trade unions and their activities.
• It has taken a confrontation oriented reactive approach to labor relation wherever these is industrial unset or strike management reacts.
• There is a need of change in the attitude of management towards unions.
• Instead of using reactive approach, the management should adopt the supportive approach to the unions, which will not only smoothen the relationship between the management and unions but will also chances of increased productivity.
• Collective bargaining:
Industries of Nepal have lack of collective bargaining.
• Getting an optimum bargaining for both groups is important and for that is need of professionals specializing
in collective bargaining.
• Training should be given to the members of each party which will enhance their skill in negotiating and bargaining.
• Quality of work-life: In theory, QWL (Quality of Work Life) are simple.
• It involves giving workers the opportunity to make decisions about their jobs, the design of their workplaces, and what they need to make products or to deliver services most effectively.
• It requires managers to treat workers with dignity on the job.
• Its focus is on employees and management operating the business together.
• Grievance handling:
A grievance handling procedure should be based on a policy statement to the effect that employees should be given a fair hearing by their immediate supervisor or manager covering any grievances that may wish to raise have the right to appeal to a more senior manager against a decision made by their supervisor or manager have the right to be accompanied by a follow employee of their own choice when raising a grievance or appealing against a decision.
• Labor policy:
Nepal lacks a comprehensive labor policy.
• There is need of formulation of comprehensive labor policy to manage labor relations.
• It should be in conformity with the management needs and socio-political realities of the country.
• Evolving legal framework:
Nepal needs an evolving legal framework improving labor relations.
• The industrial unrest and disputes are growing. There is need of efficiency implementing the existing laws and develop a comprehensive legal framework.
Objectives of Industrial Relation:
• 1. Establish and foster sound relationship between workers and management by safeguarding their interests.
• 2. Avoid industrial conflicts and strikes by developing mutuality among the interests of concerned parties.
• 3. Keep, as far as possible, strikes, lockouts and gheraos at bay by enhancing the economic status of workers.
• 4. Provide an opportunity to the workers to participate in management and decision making process.
• 5. Raise productivity in the organization to curb the employee turnover and absenteeism.
• 6. Socialize industrial activity by involving the government participation as an employer.
• 7. Avoid unnecessary interference of the government, as far as possible and practicable, in the matters of relationship between workers and management.
• 8. Establish and nurse industrial democracy based on labor partnership in the sharing of profits and of managerial decisions.11 Jestha.
Grievance:
• Grievance refers to the employee's dissatisfaction with company's work policy and conditions because of an alleged violation of law.
• They may or may not be justified and usually represent the gap between what the employee expects and gets from the company.
• While the terms grievance and complaint are used interchangeably, they are marginally different from each other.
•While a complaint is usually informal and is generally accusational in nature, a grievance is a formal complaint raised by an employee to the concerned authorities, often in a written format.
• While complaints tend to be colored with emotions and not always based on facts, grievances are more objective and are based on facts that made the employee feel uncomfortable about something at work.
• Example: of workplace grievance is sanitation and cleanliness.
• Employees often complain of eating areas and bathrooms not being cleaned properly after use.
• Another example is where an employee has claimed cab reimbursement but hasn't been reimbursed accurately or timely.
Main causes of grievances
• There could be various causes for employees to register grievances.
Main causes of grievances are:
• Economic:
This usually concerns employee wages when they feel like they are being paid less than others in the same band or grade, or when they receive inaccurate salary.
• Other examples could be delayed payment of bonuses, arrears, hikes etc.
• Supervisory:
More often than not, supervisors, managers and other top management professionals can also cause grievance to employees.
• Biased performance rating, berating, subtle insulting, harassment of any sort, all constitute supervision related grievances.
• Employee Relations:
When colleagues who work together don’t gel well, have issues working together on a project, get into too many conflicts etc. they can be a big cause of grievance.
• Organizational Change:
Sometimes, when there are policy changes or actual shifting of workplaces, employees may find themselves unaligned to the changes and that can be a cause of grievance too.
• Work Environment: Sometimes, physical work conditions like too much heat or cold, cramped or limited work space, low lighting, bad quality equipment, faulty appliances etc all constitute work environment related grievances and are valid causes of it.
Grievance Settlement Process in Nepal
• 1. First phase of imitation is open communication with the concern: All employees shall try to resolve problems in the work place at the earliest possible way and usually with the least possible formality.
• An employee tries to manage and resolve any complaint with their supervisor through informal discussion, if not manage or if problem with the supervisor then he/she will go through the grievance handling committee.
• 2. Processed for formal grievance to the committee: During this informal meeting, the employee should explain the nature of their complain.
• 3. Both parties will seek to reach agreement on how to take any actions forward.
• These could involve arranging further meetings with relevant third parties (Such as legal advisor) and complaints shall be settled.
• 4. For workers grievance, grievance will be recorded through the complain record register and form , and they are also requested to make a call at our office number or send message using any forms of social media to the number published in our notice board.
• Once grievance is recorded, complain form will be filled up and process according to complain handling procedures and solve on time.
• If needed, worker will be rescued from working place to Nepal and compensate according to mutual understanding or as per Foreign employment act of Nepal.
• 5. If worker/employer found to do anything Non-Conformance grievance activities and deserves punishment, they have right to keep their point and the reason with Top Management for fair and transparent justice.
Trade Unions/Labor Relation
• Trade union, also called labor union, association of workers in a particular trade, industry, or company created for the purpose of securing improvements in pay, benefits, working conditions, or social and political status through collective bargaining.
• Labor unions or trade unions are organizations formed by workers from related fields that work for the common interest of its members.
• They help workers in issues like fairness of pay, good working environment, hours of work and benefits.
• They represent a cluster of workers and provide a link between the management and workers.
• The purpose of these unions is to look into the grievances of wagers and present a collective voice in front of the management.
• Hence, it acts as the medium of communication between the workers and management. Regulation of relations, settlement of grievances, raising new demands on behalf of workers, collective bargaining and negotiations are the other key principle functions that these trade unions perform.
Some of Trade Unions are:
• ALL NEPAL FEDERATION OF TRADE UNIONS
• Nepal Transport Workers Union
• General Federation of Nepalese Trade Unions • Nepal Trade Union
• Madheshi Trade Union Federation Of Nepal
• GEFONT - General Federation of Nepalese Trade Unions
Objective of Trade Unions
• a. Wages and Salaries:
• The subject which drew the major attention of the trade unions is wages and salaries.
• Of course, this item may be related to policy matters.
• However, differences may arise in the process of their implementation.
• In the case of unorganized sector the trade union plays a crucial role in bargaining the pay scales.
• b. Working Conditions:
• Trade unions with a view to safeguard the health of workers demands the management to provide all the basic facilities such as, lighting and ventilation, sanitation, rest rooms, safety equipment while discharging hazardous duties, drinking, refreshment, minimum working hours, leave and rest, holidays with pay, job satisfaction, social security benefits and other welfare measures.
• c. Discipline:
• Trade unions not only conduct negotiations in respect of the items with which their working conditions may be improved but also protect the workers from the clutches of management whenever workers become the victims of management’s unilateral acts and disciplinary policies.
• This victimisation may take the form of penal transfers, suspensions, dismissals, etc.
• In such a situation the separated worker who is left in a helpless condition may approach the trade union.
• d. Personnel Policies:
• Trade unions may fight against improper implementation of personnel policies in respect of recruitment, selection, promotions, transfers, training, etc.
• e. Welfare:
• Trade union works as a guide, consulting authority and cooperates in overcoming the personnel problems of workers.
• It may bring to the notice of management, through collective bargaining meetings, the difficulties of workers in respect of sanitation, hospitals, quarters, schools and colleges for their children’s cultural and social problems.
• f. Negotiating Machinery:
• Negotiations include the proposals made by one party and the counter proposals of the other party.
• This process continues until the parties reach an agreement.
• So, negotiations are based on ‘give and take’ principle.
• Trade union being a party for negotiations, protects the interests of workers through collective bargaining.
• Thus, the trade union works as the negotiating machinery.
Collective Bargaining:
• Collective bargaining is the process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment, including pay, benefits, hours, leave, job health and safety policies, ways to balance work and family, and more.
• The term collective bargaining refers to the negotiation of employment terms between an employer and a group of workers.
• Employees are normally represented by a labor union during collective bargaining.
• The terms negotiated during collective bargaining can include working conditions, salaries and compensation, working hours, and benefits.
• The goal is to come up with a collective bargaining agreement through a written contract.
• According to the International Labor Organization, collective bargaining is a fundamental right for all employees.
Employee Discipline:
• Employee discipline is the action of a company when an employee doesn't follow the company's rules and policies.
• Employee discipline should be positive, and contribute to a safe and pleasant work environment for everyone.
• The focus is not on punishment and consequences, but rather on plans for improvement and growth.
Importance of Creating and Following an Employee Discipline Policy:
• An effective discipline policy is beneficial to both the employee and the employer.
• It gives employees the opportunity to develop and improve.
• It also protects the employer if the employee was later terminated.
• Employee Growth – A successful business helps their employees improve and grow.
• Through a progressive discipline policy, you can help employees address their mistakes and become greater contributors to the business.
• Employer Protection – Some employees fight termination or other disciplinary action, and the conflict may become a legal case.
• Creating and following a discipline policy will ensure you have documentation and help you remain fair in your decisions, ultimately protecting your business.
• Fair Workplace – A policy also makes sure that everyone is treated fairly.
• You will follow and document the same process for everyone, helping to avoid any biases or discrimination.
Causes of Disciplinary Problem:
• Employee discipline is something everyone in any organization wants to avoid.
• Obviously, discipline is a negative experience for the employee subject to discipline, but it’s also one of the least favorite parts of the job for managers and Human Relation professionals as well.
One of the best ways to avoid employee discipline is to have clear and well-communicated guidelines on what are proscribed behaviors and actions.
• Focusing on the most common issues will also help reduce potential disciplinary matters.
• Lack of Proper Rules and Regulations:
• The rules and regulations which are impractical and cannot be followed are responsible for creating indiscipline among employees.
• Also the lack of proper code of conduct and manual pose problems.
• Lack of Proper Promotional Policy:
• Every employee has an inspiration to rise.
• If his claim in promotion is set aside and his junior and inefficient is given promotion he feel discontented.
• This will provoke him for revolt and he will behave in indisciplined manner.
• Divide and Rule Policy:
• Managements adopting divide and rule policy also create an atmosphere of misunderstanding and chaos keeping the employees divided and killing their team spirit.
• Discrimination:
• Discrimination on the basis of religion, caste, sex, language and other forms of favouritism in the matters of placement, transfer recruitment and promotion etc. lead to indiscipline among employees.
Lack of Communication:
• There must be effective two way communication channel.
• Especially upward communication.
• Superiors must listen to feelings and opinions of lower level staff.
• Lack of this channel of communication is responsible for employee dissent and indiscipline.
• Absence of Grievance Settlement Machinery:
• Grievances of the employees should be redressed quickly at the lowest level as far as possible.
• Settlement should not be postponed.
• Effective grievance settlement machinery should be set up to resolve the disputes otherwise indiscipline will result.
• Lack of Supervision:
• Lack of proper supervision can create problems. Maintaining discipline and controlling the behavior of the employees and forcing them to follow rules and regulations is the supervisory responsibility.
Settlement of Disciplinary Problem:
• 1. The rules and regulations for maintaining discipline should be framed in consultation with the employees’ representatives.
• 2. Employees should be given a chance to improve their behavior.
• The past offences as far as possible be condoned after some time.
• 3. Rules should be made known to employees and they should be reminded of those rules after regular intervals.
• 4. Rules should not be made rigid but they should change with time and changes in the working conditions.
• 5. There should be uniformity in application of rules. Everybody should be treated equally before rules.
• 6. It should be remembered that the aim of rules is to prevent indiscipline and not to cause harassment to the employees.
• 7. Breach of rules by any employee should not be allowed and rules breakers should be dealt with firmly.
• 8. The offences of grave concern should be dealt with firmly by appointing a committee to enquire thoroughly in the matter.
• The committee should be un-bias in its dealings.
• 9. There must be a provision for appeal and disciplinary action taken should be reviewed if required.
Employees Health and Safety:
• Employers have a responsibility to ensure the health and safety of employees in the workplace.
• They set the protocols and make sure the workplace is in compliance with standards.
• However, regardless of how many risks and hazards employers minimize, accidents will continue to happen if workers don’t take responsibility for their actions.
• Employees have a legal right to be safe at work.
• An employer must ensure that the workplace is free from as many hazards as possible.
• Some hazards cannot be completely eliminated, in which case every precaution should be taken to reduce the chances of injury.
• Employee Safety Involves the Following:
• Adequate and ongoing safety training.
• Machinery that is well maintained and has adequate protective guards.
• Being provided with the required safety gear.
• Protection from toxic chemicals.
• The ability to report any injury 17Jestha.
Employees' Health and Safety Responsibilities:
• Employers have legal responsibilities to ensure a safe and healthy workplace.
• As an employee you have rights and you have responsibilities for your own wellbeing and that of your colleagues.
• Here They are Your Rights:
• Your rights as an employee to work in a safe and healthy environment are given to you by law and generally can't be changed or removed by your employer.
• The most important of these rights are:
• As far as possible, to have any risks to your health and safety properly controlled
• To be provided with any personal protective and safety equipment free of charge
• To stop work and leave your work area, without being disciplined if you have reasonable concerns about your safety.
• To tell your employer about any health and safety concerns you have.
• Not to be disciplined if you contact the Health and Safety Executive for Northern Ireland (HSENI), or your local authority, if your employer won't listen to your concerns.
• To have rest breaks during the working day.
• To have time off from work during the working week.
• To have annual paid holiday.
Responsibilities:
• Your most important responsibilities as an employee are:
• To take reasonable care of your own health and safety.
• If possible to avoid wearing ornaments or loose clothing if operating machinery.
• If you have long hair, or wear a headscarf, make sure it's tucked out of the way as it could get caught in machinery.
• To take reasonable care not to put other people -fellow employees and members of the public - at risk by what you do or don't do in the course of your work.
• To co-operate with your employer, making sure you get proper training and you understand and follow the company's health and safety policies
• Not to interfere with or misuse anything that's been provided for your health, safety or welfare
• To report any injuries, strains or illnesses you suffer as a result of doing your job, your employer may need to change the way you work.
• If you drive or operate machinery, you have a responsibility to tell your employer if you take medication that makes you drowsy - if you have, they should temporarily move you to another job if they have one for you to do.
Challenges of Industrial Relation in Nepal
• Explained in earlier heading 18 Jestha.
FAQ
1.What is Industrial Relation?
2. Explain challenges of Industrial Relation
3. Explain objectives of Industrial Relation
4. Explain Grievance in Industrial Relation.
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