Wel-come at Nepal Inclusive Trade Union Federation

General social, economic and political condition of Nepal:
Since Nepal is one of the least developed countries of the world, the process of socio-economic development is far behind in comparison to others. Agriculture is the major occupation in a dominating position, which alone contributes 40.2 per cent of the GDP and provides employment to 81 per cent of the labour force, while industry & services engage 2.7 & 16.3 per cent of the labour force in Nepal. But agriculture is based on traditional technology and the nature of the employment in it is mainly self-employment. Actually, the labour force in wage employment in Nepal is 21 per cent, whereas self- employed labour force is 79 per cent. This dominance of self- employment and informal sector was much more significant in the past. Therefore, the development of labour legislation in Nepal had been very slow. It is only after 1990, particularly after the reinstatement of multiparty democracy in Nepal that the fast growth of trade union organizations and other types of organizations could become possible in the new open environment. As a result, the collective voice for the rejection of the old outdated labour law Factory & Factory Workers Act 1959 was recognized and has been replaced by the new one, i.e. Labour Act 1992. Similarly, in order to ease and rationalize the organizational activities, Trade Union Act 1992 has also been enacted. Consequently, Labour Regulations 1993 & Trade Union Regulations1993 have also been brought out to implement the objectives and provisions of the two Acts. Others are Bonus Act 1973 and Foreign Employment Act 1985 in this regard.
Organization of Trade Unions
According to existing labour law the workers can organize the following trade unions
Plant level: Plant level trade unions can be organized at the plant level where, more than 10 workers work as workers. According to the law 25 % of total workers can organize their plant level trade union.
Association Level/Sectorial National Level: The workers working in the similar trade can organize association level trade unions affiliating minimum 5000 workers or 5000 workers in 20 district for agricultural workers or 500 members in any un-organize workers of informal sector or 50 plant level similar registered trade union units.
Federation level: Federation level trade unions can be organized affiliating 6 national associations having more than 5000 members or 50 plant level unit trade unions and 10 association level trade unions.
Labour Rights
 The trade unions have the collective bargain rights when they are elected as a Collective Bargaining Agent at the plant level.
Social Security
A few provisions of social security have been included in the Labour Act 1992. Among them are sick leave, maternity leave of 45 days, workmens compensation, provident fund & gratuity as the old age benefit, and some OSH provisions. Besides, Childcare centres, canteen and welfare officer in every enterprise are other provisions. But this Act covers the establishments with more than 10 workers & the industrial estates and hence too limited in its coverage. Moreover, the responsibility of these provisions is solely left to the employers. The schemes of social insurance or security based on funds created by the tripartite contributions of workers, employers and the government are non-existent. Thus, we are in a phase of infancy with regard to social security.
For more detail on the Labour Act of Nepal:
Labour Act: http://www.moltm.gov.np/opensection.php?secid=373
Trade Union Act: http://www.moltm.gov.np/opensection.php?secid=3734
Bonus Act: http://www.moltm.gov.np/opensection.php?secid=389
General social, economic and political condition:
              Situated in the lap of the Himalayas, Nepal is located between the latitude 26*22' to 30*27' North and longitude 80*4' E to 88*12' East, and elevation ranges from 90 to 8848 meters. The average length being 885 km east to west and the average breadth is 193 km from north to south. The country is bordering between the two most populous countries in the world, India in the East, South, and West, and China in the North.
      Nepal is a land locked country and home place of natural beauty with traces of artifacts. The Northern range (Himalayas) is covered with snow over the year where the highest peak of the world, the Mount Everest, stands. The middle range (Hill) is captured by     gorgeous mountains, high peaks, hills, valleys and lakes. Southern range (Terai) is the gangaitic plain of alluvial soil and consist of dense forest area, national parks, wildlife reserves and conservation areas. The temperature and rainfall differ from place to place. In the geographic diversity and varied climatic conditions 23.2 million people of more than 60 caste/ethnic groups are accommodated in the country. Nepal presents an example of being united in diversity over the history and has maintained it's pride as being an independent sovereign state.
     Nepal is a democratic republic country where people exercise right of adult franchise. The executive, legislative and judiciary bodies function and exercise their rights independently. Now Nepal is under the process of preparing peoples' constitution through the constituent assembly. The constituent assembly has been constituted by the constituent assembly election 2008. The elected Prime Minister heads the government.
    Geographically, the country is divided in three regions; Mountain, Hill and Terai accommodating 7.44 and 49 % of the population respectively. Based on area of districts these regions constitute 35, 42 and 23% of the total land area. There are 5 development regions and 75 administrative districts. Districts are further divided into smaller units, called Village Development committee (VDC) and Municipality. Currently, there are 3914 VDCs and 58 Municipalities in the country. Each VDC is composed of 9 wards, Municipality ward ranges from 9 to 35. Kathmandu is the capital city.
     Nepal is the member of the United Nations and has established diplomatic relation with 113 (Jun 2001) countries of the world. Major export commodities are paste, Pulses, oil Cake, Catechu, Jute good Sacking, Twins, Carpets (Hand knitted wollen), Readymade garments, handicrafts, ginger.
     Economic growth of the country has not improved markedly over time to over take population growth. As the country estimated population growth is 2.3 per annum, the gain achieved by developmental activities has been concealed by growing population. Little over half (57%)of the population of working age reported economically active in 1991 and among them 81% were engaged in agricultural activities. Contribution of non-agricultural activities are gradually increasing in the GDP. Per capita GDP is estimated in the order of US $ 260 (preliminary estimate) for 2007/08. The currency is Nepalese Rupee