Thursday, February 16, 2012

Unilever Crisis: Mgmt, workers agree to reopen factory

KATHMANDU, FEB 16 - 2012

After 12 days of closure, Unilever Nepal’s management and agitating workers have agreed to resume the Basamadi-based factory’s operation from Thursday.

Following Prime Minister Baburam Bhattarai’s intervention on Tuesday, both sides showed some flexibility during Wednesday’s talks and agreed to resume the factory and continue the dialogue. Lawmaker Prahlad Lamichhane, local leaders of major political parties, Makawanpur Chambers of Commerce and Industry President Bhuwan Lal Shrestha and trade union leaders participated in the talks.

“Showing flexibility in their position, workers have agreed to reopen the factory from Thursday, while the management has accepted continue the dialogue until a concrete result is achieved,” said Arjun Kumar Chaudhary, head of the Hetauda Labour Office.

Trade unions affiliated to UCPN (Maoist) and Nepali Congress had closed down the factory demanding a 50 percent pay hike and other allowances, interest-free housing loan worth Rs 1 million per worker and house maintenance fee of Rs 100,000 per person per year, among others. The Unilever management had refused to address the workers’ demand, terming them unpractical and inappropriate.

“Both the management and workers have agreed in principle to continue the talks with the reopening of the factory,” stated Lawmaker Prahlad Lamichhane.

With a series of talks with agitating workers failing to yield results, Unilever Nepal had sought the government’s permission to enforce a ‘lock-out’ provision. The Unilever Nepal management had registered its application to lock out the factory at the Labour Ministry on Friday and at the Labour Department on Sunday.

Alarmed by the leading multinational company (MNC)’s closure amid Nepal Investment Year 2012-13, the Prime Minister on Wednesday had pledged immediate measures to bring Unilever Nepal’s factory back to normal operation. He had also directed Labour Secretary Som Lal Subedi to intervene in the matter to find a negotiated settlement. The company recorded annual turnover of Rs 3.8 billion in last fiscal year and paid taxes worth Rs 646 million to the government. The Basamadi-based factory of Unilever manufactures personal care products such as soaps, toothpastes and beauty creams.

Source: Kantipur

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