Despite the government's assurance to protect Indian companies operating in Nepal, the pro-Maoist trade union has forced closure of one of the top joint ventures in the country 'Surya Nepal', the manufacturer of cigarette and tobacco products.
The trade union workers this morning locked up the Surya Nepal's cigarette production unit situated at Simara in southern Nepal, according to the STC's management.
STC, the joint venture of Indian Tobacco Company has two units -- Tobacco unit at Simara and Garment unit at Biratnagar.
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There are some 300 workers working in the Tobacco factory. Two days ago, the union issued a 48-hour ultimatum to the management demanding increment in the minimum salary.
"We have already provided the employees with basic salary and other facilities which is more than the minimum basic wages fixed by the government," Sanjiv Keshava, STC's General Manager told PTI.
"The minimum basic salary which was Rs 2,200 two years ago has been increased to Rs 3,050 now and the workers demanded increment in salary to those staff, whose salary is already more than that," he said.
The government's Minimum Wage policy is vague and unclear. It does not take into account various types of allowances and facilities the workers are enjoying while calculating the Minimum Basic Wages, which is causing problem."
"We have started talks with the labour union in the matter and want the government to resolve the issue," Keshava said adding if the Labour Ministry says the salary should be increased then we are ready to increase.