US embassy cable - 05KATHMANDU1305

UNCLAS SECTION 01 OF 02 KATHMANDU 001305 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR SA/INS 
DEPT PLEASE PASS EUROPEAN COLLECTIVE 
 
E.O. 12958: N/A 
TAGS: PHUM, ELAB, KDEM, PGOV, NP, Human Rights 
SUBJECT: SOME LABOR RIGHTS IN NEPAL REMAIN CURTAILED 
 
 
SUMMARY 
-------- 
 
1. (SBU) After the King assumed power February 1, His 
Majesty's Government of Nepal (HMGN) imposed extensive 
restrictions on trade unions and their leaders.  HMGN banned 
labor union strikes by industries that were on an "Essential 
Services/ Commodity List," including fourteen service sectors 
the government deemed vital.  Existing trade unions have 
claimed that HMGN created "fraudulent labor unions" to 
undermine legitimate ones.  Workers' unions filed a formal 
complaint with the ILO to disallow Nepal's delegation to the 
93rd International Labor Conference (held May 31-June 16), 
claiming the trade union representing Nepal was illegitimate. 
 Labor unions report that violations of the 1991 Labor Act, 
as well as government and management harassment of workers, 
continued to take place.  Labor unions remain divided along 
party lines and weak in promoting workers' rights.  END 
SUMMARY. 
 
LABOR UNION ACTIVITIES RESTRICTED 
--------------------------------- 
 
2. (SBU) Restrictions imposed by the government after the 
royal takeover on trade unions and their leaders remain in 
effect in Nepal.  A report prepared by one of the labor union 
umbrella organizations, the General Federation of Nepalese 
Trade Unions (GEFONT), stated that HMGN had banned many labor 
programs, including the Annual General Meeting (AGM), the 
Conference of Trade Unions, a program on International Women 
Workers' Day, and programs organized by the Construction 
Union and the Iron Union.  (Note:  GEFONT represents all 
unions affiliated with the political party of CPN-UML. End 
Note.)  GEFONT Chief Secretary Kabindra Shekhar Rimal told 
EmbOff that many trade union leaders were under constant 
surveillance by security forces.  (Note:  Although more than 
500 trade union activists, including central level leaders, 
were arrested following February 1, all have been released. 
End note.) 
 
3.  (SBU) The government has also exerted more control over 
labor unions representing industries under its authority. 
HMGN imposed a ban on labor union strikes according to an 
"Essential Services/Commodity List," restricting unions in 
all sectors HMGN deemed vital, such as water, telephone, 
airlines and electricity.  The GEFONT report stated the ban 
had infringed on the right of collective bargaining of 
workers.  In addition, HMGN issued a notice on February 7 
stating that no union activities could be carried out in 
state-owned corporations; although this was supposed to be 
limited to the period of emergency, it remains in effect. 
Additionally, on June 13 the Confederation of Nepalese 
Professionals (CONEP) opposed proposed amendments to the 
Civil Service Act (CSA) that would ban government employees' 
right to organize.  A number of other prominent trade unions 
also expressed their opposition to the proposed amendment as 
another example of the government's "ill intention" towards 
organized labor.   A joint press release by leading workers' 
unions warned they would resort to strikes if the government 
"continued its negative attitude towards trade unions." 
 
EXISTING TRADE UNIONS LODGE COMPLAINT 
------------------------------------- 
 
4.  (SBU) Existing labor unions indicate that while HMGN 
tried to control the activities of legitimate trade unions, 
it also created parallel ones.  According to the GEFONT 
report, GEFONT Chairperson Mukunda Neupane was nominated to 
participate in the 93rd International Labor Conference held 
in Geneva from May 31 - June 16, 2005.  However, HMGN 
replaced him and instead sent Bam Bahadur Dewan, 
Vice-President, Nepal Agriculture Workers' Organization, 
which GEFONT claimed was not a legitimate union.  The report 
further stated that three recognized trade union 
confederations, including GEFONT, Nepal Trade Union Congress 
(NTUC) (affiliated with the Nepali Congress Party) and the 
Democratic Confederation of Nepalese Trade Unions (DECONT) 
(affiliated with Nepali Congress-Democratic Party), lodged a 
formal complaint through the ILO against HMGN, urging the ILO 
to disallow the entire delegation from Nepal, since without 
participation of a legitimate trade union, it was not a 
tripartite delegation. (Note: Per ILO convention, delegations 
must include government, employer and trade union 
representatives.  End note.) 
 
CASES OF POLICE TORTURE AND IRREGULARITIES BY INDUSTRIES 
--------------------------------------------- ----------- 
 
5.  (SBU) Unions also claim that management has used 
government-imposed restrictions on political activities after 
February 1 as an excuse to harass labor leaders and union 
members.  GEFONT charged that government forces continued to 
target labor union representatives with impunity.  The GEFONT 
report further stated that HMGN showed complete indifference 
to businesses' irregularities.  For example, for the last 64 
months, the Hotel Blue Star, in the heart of Kathmandu, has 
not paid into their workers' retirement benefit plan as 
required under the 1991 Labor Act, in which ten percent of an 
employee's salary is matched by the employer and deposited in 
a fund.  The Radisson Hotel, among many other businesses, 
also was reportedly not contributing to its workers' 
retirement fund accounts. 
COMMENT 
------- 
 
6. (SBU) The wage-earning labor sector, which represents 
twenty-four percent of Nepal's total work force, remains 
small and divided according to party lines.  Labor unions 
continue to be party rather than industry-focused.  For 
example, multiple party-based unions could be active in one 
industry.  At a time when unions are confronted with 
harassment and government encroachment on workers' rights 
after February 1, unions continue to focus on politics rather 
than uniting to address workers' rights issues. 
MILLARD