CHINESE LEADER ZHOU YONGKANG HAS BUSY SECOND DAY IN NEPAL

CHINESE STANDING COMMITTEE MEMBER ZHOU YONGKANG’S BUSY SECOND DAY SCHEDULE

Kathmandu, 17Aug.: Zhou Yongkang, standing committee member of Communist Party of China (CPC), is holding talks with Prime Minister Jhalanath Khanal and President Dr. Ram Baran Yadav on the second day of a three-day Nepal visit Wednesday.
Zhou arrived Tuesday as head of a high-powered delegation as special emissary of President Hu Jintao.
He’s the highest ranking Chinese leader to visit Nepal, on the southern lap of strategic Tibet, in eight years.
China and Nepal are signing four agreements an economic and technical cooperation agreement.Wednesday.
Beijing will extend concessional loans of Rs. 1.75 billion equivalent yuan 154 million for the 60MW Upper Trishuli 3A hydropower project
Beijing is extending assistance to strengthen security agencies and increase annual assistance
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UML LEADER SAYS HE’S SURPRISED PARTIES STILL HAVE KEPT OPTION OF MAJORITY GOVT. STILL OPEN

Kathmandu, 17 Aug.: UML Vice-chairman Ashok Rai
said Wednesday he’s surprised parties have still kept the option open for election of a prime minister by majority vote ion parliament.
“Parties shouldn’t go for a majority government, I don’t know how the alternative majority government option came up,” Rai told Radio Nepal while pushing a consensus government.
He reminded three majority governments have failed to conclude the peace process and draft a constitution.
NC and Maoists have chosen Sher Bahadur Deuba and Second Vice-chairman Dr.Babauram Bhattarai their candidates to succeed Jhalanath Khanal, who is now only a caretaker after resigning.
Parties have intensified talks to elect Khanal;’s successor.
The wait to find a successor may be king and extended.
Madhav Kumar Nepal continued for seven months as caretaker even a successor wasn’t found even after 16 ronds of voting.
Election procedure and process had to be amended to finally ensure an outlet.
UML has suggested Khanal’s successor be elected through rotational power-sharing system.
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QUAKE WITH EPICENTER IN RAMECHAP RECORDED

Kathmandu, 17 Aug.: A quake measuring 5.7 on Richter scale with epicenter at Bijulikot at Ramechap was recorded Monday night
R 10.33 Monday.
Jolts were felt in the Valley.
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PYUSH BAHADUR AMATYA FREED AFTER SETTLING A Rs.30 MILLION BAIL

Kathmandu, 17 Aug.: Chief of Fulbari Resort in Pokhara and Chairman of Amatya Group Pyush Bahadur Amatya was freed late Tuesday night after settling a Rs,30 million bail set by the Kathmandu district court.
Amatya was arrested 31 July after charges by several persons for cheating.
Butaides Sanjeev Tuladhar and Rajat Gurubacharya were jailed for not settling Rs.10 million each in bail.
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DHARMANANDA NATH ARRESTED TUESDAY

Kathmandu, 17 Aug.: Dharmananda Nath, suspect in the murder of four family members this week in Bhimdutta municipality, Kanchanpur, was arrested Matena in the far-West district.Tuesday evening.
Nath fled after strangling family members by rope in the house.
Mother Barya Debi, wife Dhana Debi, son Ravi and daughter Renuka were killed.
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LANDSLIDES BLOCK KATHMANDU-KODARI HIGHWAY

Kathmandu, 17 Aug.: Continuous heavy rain since Monday triggered landslides blocking the Kathmandu-Kohadri on the
Bansbari-Kodari section of the only highway linking Nepal/Tibet.
Effort continues to reopen the highway used by tourists to transit to Tibet
The highway transports exports and imports to and from China.
A second highway is being opened from Rasuwa.
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POLICE MOBILIZED TO SEARCH FOR MISSING ON KAMALA RIVER

Kathmandu, 17 Aug.: Police have been mobilized for the search and rescue nine missing persons after a boat capsized on Kamala river Tuesday night. on the Siraha/ Dhanusha border.
Only one body of an unidentified person has been recovered downstream in Dhanusha so far,
Search continues for the missing
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MEDIA GOOGLE

“The entire party is being defamed by some leaders with criminal tendencies and are protecting goons. If some UML leaders are protecting goons who attacked journalists, action will also be taken against them.”

(Former UML PM Madhav Kumar Nepal, Nagarik, 17 Aug.)
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SURYA NEPAL SHUTS DOWN GARMENT UNIT
Kathmandu, 16 Aug :In a major setback to the industry, Surya Nepal - a subsidiary of ITC Ltd, India - has decided to permanently shut down its readymade garment production, citing long-running labor problems, Ashok Thapa reports in Republica.
The company was established in 2004 with an initial investment of around Rs 300 million and fast became the largest readymade garment manufacturer of the country. Its popular international brand John Players was well received in major markets like India, the US, Canada, France and other European countries.
Springwood, another brand of the company, was gradually becoming popular in Nepal. Annual turnover last year had touched Rs 1 billion.

The shutdown decision could instantly render 650 workers jobless. It will also affect another 1,400 workers who have been hired by other factories producing for Surya Nepal.

"It was a tough decision, but continuing to manufacture in the present mess was impossible. So, our board decided on Tuesday to close down the factory," Ravi KC, managing director of Surya Nepal, told Republica.

The company has attributed its decision to shut down operations to ´irreparable losses´ emanating mainly from continuing labor stir which has left its production closed since three months. "The closure prevented us from filling orders then. Now we have no orders from importers," said KC.

The factory had closed down production on June 15 after the labor agitation took a nasty turn, with workers locking up 37 members of the managerial staff. The management says workers threatened to harm the staff physically.

Like every other manufacturing unit, Surya Nepal has been suffering persistently from labor unrest ever since it came into being. But the situation worsened after the workers shut the factory for eight days from March 25, demanding a pay hike.

"We were already paying our workers better. Even those paid the least were receiving some Rs 300 higher than the new government-revised monthly minimum wage. Those in the middle rank were earning Rs 15,000 a month, which is almost double what other factories pay," said KC.
• Some 3,000 workers to lose jobs
• Surya Nepal turnover in 2010/11 was Rs 1 billion
• Market share: 85% exports, 15% domestic consumption
• Workers were paid better than at other garment factories´
Even though the two sides agreed over the pay hike issue, tensions escalated after workers demanded pay for the strike period also when production was halted. However, management said it values the concept of ´no work, no pay´ and will not pay for days when production was shut.

KC said unruly behavior by workers has not only hit Surya Nepal but also eroded the credibility of the Nepali readymade garment industry as a whole. "Unfortunately, this has happened at a time when demand was gradually increasing," he stated.

With its decision, Surya Nepal has become a fresh example of how ´militant trade unions´ have hurt the industrial sector and driven away investment. Multinational companies like Colgate Palmolive had pulled out citing similar reasons and security threats.

KC, however, did not disclose any divestment plans.

Interestingly, trade union officials said they did not believe the management will shut the factory permanently. "It is just a ploy to lay us off and restart operations with fresh recruits," said Tej Lal Karna, member of All Nepal Trade Union Federation-Revolutionary (ANTUF-R).

Karna claimed that the company cannot shut down just because its board has so decided. "It must first clear all liabilities as provisioned in the Labor Act," he stated.

Managing Director KC said Surya Nepal will start clearing its liabilities to all workers and laying them off from Wednesday.

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BIG TRADE UNIONS ISSUE STRIKE WARNINGS

Kathmandu, 17 Aug.:: Three major trade unions that were against implementing the government-fixed remuneration package on Tuesday made a U-turn and threatened to launch nation-wide protest if the employers failed to implement the package, Republica reports.

They also want the employers to implement other provisions, including social security scheme, as per the agreement that they reached with the employer associations on March 24.

Submitting a memorandum to Federation of Nepalese Chambers of Commerce (FNCCI) on the day, All Nepal Trade Union Federation (ANTUF), General Federation of Nepalese Trade Unions (GEFONT) and Nepal Trade Union Congress-Independent (NTUCI) have warned of stringent protest if employers did not agree on their demands.

They have also asked the FNCCI to withdraw the case against the government-fixed pay package, which is sub judice at the Supreme Court, to pave the way for easy implementation of the government-fixed remuneration package. Issuing a notice in the Nepal Gazette on May 15, the government had fixed monthly salary of workers at Rs 6,200 and daily wage at Rs 231.

The fresh move of the three major trade unions comes at a time when 10 fringe trade unions have been pressing the employers to implement the government-fixed pay package.

“We have given 15-day ultimatum to the employers to implement the government-fixed pay package along with the social security package as per the March 24 agreement,” Umesh Upadhya, general secretary of GEFONT, told Republica. He claimed that as much as 40 percent of employers across the country have yet to implement the government-fixed pay package.

Dharmendra Kumar Singh, chairman of NTUCI, said that employers are refusing to hike remuneration in line with the notice published in Nepal Gazette, stating that the case is sub judice at the apex court. “Employers should withdraw the case at the earliest and address our demand as soon as possible,” Singh added.

FNCCI officials, however, said the case could be withdrawn only if the government endorses the March 24 pact. “Major trade unions have approached us with the demand for pay hike, which has already been fulfilled. It´s a clear case of misunderstanding,” said Ashish Agrawal, vice-chairman of Employers´ Council at FNCCI.

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