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This website focuses on issues regarding social protection in Asia and the activities done by the Network on Social Protection Rights (INSP!R) and its members. It is under the editorial oversight from the Asia Steering Committee, composed out of members from India, Bangladesh, Nepal, Cambodia, Indonesia and Philippines. It is meant to foster dialogue and share experiences.
The articles describe challenges and achievements to improve the right to social protection to workers in the region, with a specific focus to gender, youth and informal workers.

08 May 2020

Nepal: only 102 positive corona cases, but many challenges lurking - Interview with Ramesh Badal from GEFONT

Ramesh Badal,
Vice-President of GEFONT
  • What is the situation regarding COVID-19 in Nepal, a country between China where the outbreak happened and India where so many problems have been reported? 
Till now (8th of May 2020), Nepal has very few detected cases. The first corona case was detected in Nepal on 30th of January. After an initial slow start, over 70.000 tests have been conducted, which revealed only 102 positive cases. So far, Nepal has:
  • no corona related deaths, 
  • 30 people cured and released 
  • 72 remain hospitalized 
  • 135 are in isolation. 
As preventive measures, over 15.000 people are under government quarantine. All international flights and borders are closed till 31st May and a complete lock-down is imposed till 17th of May. However, in the past days, some 43 industries related to food or other items have been allowed to re-open with strict measures to abide for workers to avoid infections.
In the coming months, cases will most likely increase, as the lock-down will be lifted in phases and many of the Nepali migrant workers want to return from abroad. Nepal would have great difficulties to ensure proper quarantine for an estimated 177.000 returning migrant workers (127.000 from Gulf states & Malaysia and over 50.000 Nepali workers in India).
  • How does GEFONT and the Nepali trade unions deal with this? What struggle are you currently facing?
Despite the few cases, of course, the Nepali economy is heavily impacted by this crisis. The lock-down caused many workers to be out of work, tourism revenue has dropped to zero and remittances from Nepali migrants, an important source for many Nepali households, are decreasing.
At the demand of the trade unions, the Nepali government announced a relief package for workers end of March:
  1. Government paid 31 percent of one-month basic salary needed to pay to the Social security Fund by employer and employee. Employer shall pay the remaining amount only to the employees.
  2. Employer should not cut salaries of employees during the lock down.
  3. Local government should manage and provide food during lock-down to all daily waged and informal economy workers.
  4. Unemployed people, migrant returnees and those who cannot fly to their country of destination due to the pandemic can enroll in the Prime Minister Employment Program and get subsistence allowance.
  5. Private school fees should be waived for workers.
  6. 2.5 Million NPR insurance for medical staff, ambulance drivers, garbage cleaners and other employees.
  7. Subsidized electricity supply during pandemic.
  8. PPEs shall be provided free of cost to the employee concerned.
  9. The treatment for people infected by COVID-19 shall be done free of cost. 
Despite these measures being announced, of course not all employers respected these guidelines. According to a survey done by GEFONT in the manufacturing sector:
  • only 30% of employers paid, 
  • 9% paid partially, 
  • 22% did payments but considered these as an "advance" and 
  • 39%, over one in three employers, did not pay at all. 
Hence, trade unions during the virtual May Day celebrations demanded:

  1. to provide relief package to needy and informal economy workers as well as the unemployed population who are struggling due to the ongoing lock-down. Local authorities are to be made responsible for the management of such relief packages.
  2. Government to ensure that workers will not be removed from their jobs and entitlement of their wages should be granted. The amount to be deposited to the social security fund should be provided by the government for next couple of months. 
  3. The workers involved in defying the pandemic, like front line health workers, should be given insurance coverage of at least 2.500.000NPR. Workers should be protected based on the nature of their job with free Personal Protective Equipment. 
  4. There are thousands of workers unable to get relief due to lack of proper labour recording system at local level. Therefore, GEFONT asks the government to ensure that all local government record all workers, including informal economy workers, so they can have access to any relief programmes.
  5. GEFONT urged the government to launch a program in order to address the currently challenges of unemployment. It is necessary to ensure the job security of workers of formal economy and to generate employment opportunity within the country. We foresee that migrant workers will return to the country and government should ensure employment to them as well.  Therefore, to uplift the unemployed population, the Prime Minister Employment Program should invest to create skilled work force and provide employment according to each worker’s skill set.
  6. to invest in agriculture and infrastructure development where mass employment opportunity may be created. Similarly, national policies and budget that is to be announced within a month should focus on utilising local resources, promoting micro and small business where comparatively more employment opportunities is created. 
    Nepalese daily wage workers and their families head back
     to their villages during a government-imposed nationwide lockdown
    in Kathmandu [File: Sunil Pradhan/Anadolu]
  7. to bring all workers within the social security converge including informal and self-employed people. Companies not enrolled in the Social Security system should not be renewed or benefit from any government support program and be disqualified from any public tenders. In addition to that, government should extend the payment of 31 percent of basic salary needed for the Social security Fund by employer and employee and employer behalf till end of July.
  8. The current crisis has proven the necessity for changes within the healthcare system. For better management in the future, all healthcare institutions including private have to be included under the social security system. All citizens should be protected by the health insurance system and the infrastructure and human resources of government health institutions has to be improved.
  9. to formalize informal economy sector and implement the provision of Labour Act and Social Security Act. The Labour Audit should be made mandatory and to handle the grievance, Labour commission should be established. Similarly, number of Labour inspector should increase to strengthen the labour administration system. 
  10. to bring migrant workers willing to come back to the country as soon as possible and as to mobilize the Nepali diplomatic missions to ensure that migrant workers are treated and protected as equal as the citizens of the countries of destination.
  11. GEFONT recalls when Nepali workers badly suffered from the earthquake and economic blockade in 2015. We were able to face those challenges and we should be hopeful and strive towards a better future after the COVID-19 pandemic is dealt with. We hope this time of crisis can also be taken as an opportunity for the development of new areas of decent employment.
Certain sectors are particularly affected, like construction and tourism. The tourism sector, which is very important for Nepal and employs around 200.000 workers, is planning to close for the next six months and is negotiating with the trade unions, giving two options:
  • Workers can remain employed but only receive 12,5% of their monthly salary
  • Workers are fired. 
Trade unions are opposing the employers stand and negotiations are ongoing. Trade unions acknowledge that everyone is suffering and will have to contribute but also believe there are solutions that allow workers to live as decently as possible. Read more about this here.
  • Which system changes are necessary?
Social Security Fund: this fund has only started operating recently but has gathered 95 crores NPR or over 7.2 million EUR till date, including the one-month contribution by the government (18 crore or 1.3 million EUR). As mentioned above, the Trade Unions also want to boost the recently launched Prime Minister Employment Program which provides jobs for those currently unemployed and the returning migrant workers as well as boost the national economy. Able bodied should not have to rely on relief and would be able to make up 500 to 800NPR per day through this programme. Relief is not sustainable and should be reserved for those in need.
Health care should be a key area for the government to invest in and so needs to receive more funds in the new budget being drafted currently. We have noticed private hospitals have closed during this pandemic and are shown as unreliable during crisis. Hence, trade unions demand for the health care to include both preventive and curative measures:
  • Preventive: The women health volunteers should be involved for the preventive measures and receive their social security contribution paid by the government. 
  • Curative: Nepal has only a few major public hospitals, which need to be upgraded and have more human resources. Each rural municipality should have at least 15 beds hospital. The Health insurance scheme should be made compulsory and government should contribute 50% with the other half coming from the subscriber.
Note added: The government allocates only 4% of its annual fiscal budget to the health sector against the WHO's recommendation of 10%. An estimated 18,000 doctors and around 35,000 nurses serve at around 500 government and private hospitals across the country, but there are just 1100 intensive care unit beds and 600 ventilators (source).
  • How is it personally for you? Your family / relatives? Are you also at home in lock-down?
Though I am considered essential services and obtained a pass to circulate for my work as a lawyer, I have spent most of my time at home, where I stay with my parents, wife and two children. My son who is in grade 5 has online classes but my daughter, who was supposed to start university in the United Emirates in August, is unsure whether that will be possible.
With this down time, I have taken to studying Britain’s trade unionism through two books: Industrial democracy and The History of Trade Unionism by Sydney and Beatrice Webb. It is fascinating to understand the situation in Britain how Trade Union structures were created, how they conducted meetings, with illustrations from the struggles in Manchester, London and Glasgow.

Ramesh Badal is the Vice-President from GEFONT, one of the trade unions that partners with WSM in Nepal.

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