Trade unions and relation with management

A trade union is an organisation of workers formed to protect and promote their common interests, such as wages, working conditions, job security and welfare, by collective bargaining with management. In Nepal, trade unions are recognised under the Labour Act 2074 (2017) and the Trade Union Act; construction workers also join unions.

Advantages

• For workers: collective bargaining power for fair wages and benefits; protection against unfair dismissal; better safety and working conditions; a means to settle grievances; training and welfare programmes.
• For management: a channel of communication with workers; helps in handling disputes; stable labour relations; workers' representatives can help to implement discipline and productivity programmes.

Disadvantages

• Strikes, bandh and stoppages cause delay and loss, which is serious for time-bound projects.
• Union demands can raise wages and costs.
• Political interference and rivalry between unions.
• Resistance to new methods, machines or reduction of staff.
• Pressure to employ members, which reduces management freedom.
• Disputes over contract rates and bribery-like "tax" in some places.

Relation with management

A healthy relationship is based on mutual respect, honest communication and written agreements. Management should recognise the union, hold regular meetings, pay on time, ensure safety and welfare, settle complaints early through a grievance procedure and negotiate collectively. Workers should follow discipline and give due output. When disputes occur, conciliation and arbitration under labour law are used. Good relations give productivity and industrial peace.