Nepal Inc urges govt to review its directive

Kathmandu, May 3

The private sector has officially disregarded the government’s call to pay workers their full salary for the month of Baisakh.

Issuing a joint press statement today, the Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries and Nepal Chamber of Commerce — the three largest bodies representing the private sector — said in the present context, firms could not pay workers half their salaries and appealed to the government to review its directive.

In a bid to provide relief to workers in the formal sector, a few days ago the government had directed firms to immediately issue 50 per cent of workers’ salary for Baisakh and gradually pay the remaining amount after their businesses resume.

In case firms face liquidity problem in doing so, the government has asked the Nepal Rastra Bank to ensure that such firms get loans from banks and financial institutions at subsidised rates and also through the refinancing facility of the central bank. however, private sector representatives said businesses were not in a position to pay more than half the salary to workers during the crisis as each enterprise was fighting to sustain itself.

“The government should preserve and protect both businesses and workers. as all enterprises today are struggling to survive, they cannot issue more than 50 per cent salary during the crisis and the government should immediately review its previous directive on payments to workers,” reads the joint press statement.

As the lockdown has been in force for almost one-and-a-half months, businesses are completely shut and are finding it difficult to pay even 50 per cent salary to workers.

“In such a context, no business is in a position to issue 100 per cent salary to workers,” said Shekhar Golchha, senior vice-president of FnCCI. Moreover, the private sector has urged the government to manage subsidised loan facility for enterprises so that they can pay 50 per cent salary to workers.

However, government officials said firms should pay salaries as directed since the government had assured it would provide subsidised loan to firms facing liquidity crunch.

“Firms have been asked to pay 50 per cent salary gradually after their businesses start and have also been assured required loan facility from banks and the refinancing fund of the central bank if they face liquidity crunch,” said a finance ministry official seeking anonymity.

A version of this article appears in e-paper on May 4, 2020, of The Himalayan Times.

 

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