Front cover -- Half title page -- Title page -- Copyright page -- CONTENTS -- List of tables, figures and boxes -- Tables -- 2.1 Main trade union confederations in Nepal -- 3.1 Enterprise survey, 2006: Characteristics of enterprises -- 8.1 Recent and expected growth rates for South Asia and China, 2002-08 -- 8.2 Economic growth rates, nepal, 2001/02-2006/07 -- 8.3 Long-term trends in economic growth, 1985/86-2000/01 -- 8.4 Economic growth rates in key sectors of the economy, 1985/1990-2000/2005 -- 8.5 Sector shares in GDP, 1985-2005 -- 8.6 Trends in imports and exports, 1980-2005 -- 8.7 Investment trends, 1990/91-2005/06 -- 8.8 FDI inflows to Nepal, 1985 and 1990-2006 -- 9.1 Labour force paticipation rates, employment and unemployment, 1995/96 and 2003/04 -- 9.2 Employment, participation rate and unemployment rates by consumption quintile, 1995/96 and 2003/04 -- 9.3 Activity status and unemployment rates by age category, 1995/96 and 2003/04 -- 9.4 Hours worked, 1995/96 and 2003/04 -- 9.5 Employment by major economic sector, 1995/96 and 2003/04 -- 9.6 Employment by industry, 1981, 1991 and 2001 -- 9.7 Working poverty in Nepal and other South Asian countries, 1991 and 2005 -- 9.8 Nominal per capita consumption by decile, 1995/96 and 2003/04 -- 9.9 Nominal per capita income by decile, 1995/96 -- 9.10 Nominal annual average per capita income by geogra -- 9.11 Remittances, 1995/96 and 2003/04 -- 9.12 Minimum monthly wage rate in Nepal by skills category, 1980-2006 -- 9.13 Real minimum wages in manufacturing 1980-2007 -- 9.14 Index of cost competitiveness indicators of nine Asian countries -- 9.15 Nepal's improvement in unit labour costs, 1990-99 -- 9.16 Annual percentage change of labour costs and labour productivity of eight Asian countries, 1990-1999 -- Figures.

1.1 Map of Nepal showing reported bandhs/blockades that took place between 1 January and 31 July 2007 -- 2.1 Work days lost to strikes, 1991/92-2005/06 -- Boxes -- 3.1 Enterprise survey, 2006: Assessment of factors influencing investment and output -- 3.2 Enterprise survey, 2006: Analysis of labour law rating -- 3.3 Enterprise survey, 2006: Responses to follow-up questions concerning the binding nature of labour legislation -- Preface -- Acknowledgements -- Abbreviations -- 1. Introduction -- 1.1 Background -- The road to peace -- Law and order concerns -- Rise of the ANFTU -- Improving industrial relations -- National policy priorities -- 1.2 Methodology -- Case studies: Union activists -- 1.3 Key objectives -- 2. The politics of labour -- 2.1 Introduction -- 2.2 History of modern Nepal -- Beginnings of industrial relations -- One-party panchayat system -- Trade union' role in the push for democracy -- Introduction of labour legislation -- Deterioration of industrial relations environment -- Developments since 2000 -- 3. The concerns of capital -- 3.1 Labour legislation -- Main labour law restrictions -- 3.2 Enterprise survey -- Assessing the influence of legislation on investment and growth -- The most serious concerns -- Lack of skilled workers -- The impact of strikes -- The labour laws and how restrictions are overcome -- Absenteeism and workplace discipline -- Wages and labour costs -- Low productivity -- 3.3 How to improve the Labour Act -- Clarify ambiguities -- Adjust the wage structure -- Reform the Bonus Act -- 3.4 Summary -- 4. The complaints of labour -- 4.1 Case studies -- Working conditions -- Employment security -- The lure of working abroad -- 4.2 Union leaders' key areas of concern -- Social security -- Labour legislation evasion and inadequate enforcement -- Permanent employment status -- 4.3 Labour institutions.

The Labour Office -- The Labour Court -- Tripartite institutions in Nepal -- 4.4 Summary -- 5. From insurgency to industrial conflict -- 5.1 The upsurge in strikes and demonstrations -- 5.2 The ANFTU campaign -- Three-tier minimum wage structure -- Regularization of employment contracts -- ANFU tactics -- The ANFTU moves into the mainstream -- Repercussions of the ANFTU campaign -- 5.3 The industrial relations environment -- Promoting workers' rights and economic development -- 5.4 Summary -- 6. International organizations and the Nepalese labour market -- 6.1 The World Bank -- The 2003 Trade and competitiveness study -- The World Bank's change of position -- The World Bank's Doing Business reports -- World Bank warnings -- 6.2 The IMF -- 6.3 THE ADB: A distinctive perspective -- 6.4 The ILO: An integrated approach to reform -- 6.5 The need for policy coherence -- 6.6 Summary -- 7. Recent attempts at reforming labour legislation and labour market institutions -- 7.1 Nepal's Tenth Plan -- 7.2 The labour ordinance of 2006 -- Triangular employment relationships -- New regulations for SEZs and EPZs -- Obstacles to strikes -- Withdrawal of the Labour Ordinance -- 7.3 SEZs -- 7.4 Backdoor ban on strikes -- 7.5 Restarting labour market reforms -- 7.6 Summary -- 8. The relationship between economic trends and industrial relations -- 8.1 Introduction -- 8.2 Trends in economic growth and the way they correlat with labour legislation and labour market institutions -- Background -- Growth levels -- Patterns in agricultural and non-agricultural sectors -- Trends in imports and exports -- Stabilization and structural adjustment programme -- The impact of reforms -- Reasons behind Nepal's economic decline -- 8.3 Trends in investment and the way they correlate with labour legislation and labour market institutions -- Investment pattern since 1990 -- 8.4 Summary.

9. Employment and incomes -- 9.1 Labour market trends -- Labour force participation rates -- Underemployment -- Employment by sector -- 9.2 Working poor, income inequality and poverty -- ILO estimates of working poor -- NLSS estimates of inequakli -- The rise in remittance -- 9.3 Wages, productivity and the labour market share of output -- Wage trends -- Productivity and labour costs -- Rigid labour laws versus wage flexibility -- 10. Conclusions and policy recommendations -- 10.1 Introduction -- 10.2 The case against radical labour market deregulation -- 10.3 The way forward -- Trade unions -- Labour legislation and labour market institutions -- Social security reform -- Need for clarity and policy coherence -- Appendix I: Chronology of key political and industrial relations events in Nepal -- Appendix II: Enterprise survey questionnaire: Investment, growth and decent work, Nepal 2006 -- Appendix III: Technical note concerning the costs of selected basic social protection benefits in Nepal 2007-2034 -- References -- Index -- Back cover.