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35th Anniversary: ILO-Nepal Partnership

International Labour Office Copyright © International Labour Organization 2001 First published 2001

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ILO 35th Anniversary: ILO - Nepal Partnership Kathmandu, International Labour Office, 2001

ISBN: 92-2-112605-6

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Compiled by: Mr. Binod Shrestha Photos: Binod Shrestha, GEFONT, Leyla Tegmo-Reddy, ILO/IPEC Printed at: Format Printing Press, Kathmandu Contents

Felicitations vi Foreword xxiii Abbreviations xxvi

1. Introduction 1 1.1 International Labour Organization 1 1.2 The ILO in Nepal 2

2. The Early Years (1966 – 1990) 5

2.1 Introduction 5 2.2 Nepal Joins the ILO 6 2.3 ILO Technical Assistance Initiated 6 2.4 Specific ILO Activities 7 A. Manpower Planning and Employment 7 a. Employment Intensive Investment Programme 7 b. Irrigation Development Project 7 c. Capacity Building of the Department of Irrigation 7 B. Vocational Training 8 a. Basic and Vocational Training Project 8 b. Support to the Institute of Engineering 8 C. Population Education 8 D. Management Development and Productivity 9 E. Training 9 a. Cooperative Development and Training 9 b. Training for Rural Gainful Activities 9 c. Training for Hotel and Catering Industry 9 d. Other Training 10 F. Labour Administration, Workers’ Welfare and Protection 10 2.5 ILO Conventions 11 2.6 Summary 11 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

3. New Opportunities (1990 – 1995) 13 3.1 The Social Partners 13 A. His Majesty’s Government 13 B. The Employers’ Organization 13 C. The Workers’ Organizations 14 - Democratic Confederation of Nepalese Trade Unions (DECONT) 14 - General Federation of Nepalese Trade Unions (GEFONT) 14 - Nepal Trade Union Congress (NTUC) 15 3.2 Active Partnership Policy 15 3.3 ILO Office Established 16 3.4 Specific ILO Activities 17 A. International Programme on the Elimination of Child Labour 17 B. Employment Promotion 17 C. Population Education 18 D. Management Development and Productivity 18 E. Women Entrepreneurship 18 F. Training for Rural Employment 19 G. Cooperative Development and Training 19 H. Flood Rehabilitation 19 I. Occupational Safety and Health 19 J. Social Dialogue 20 3.5 ILO Conventions 20 3.6 Summary 21

4. A New Country Strategy (1996 – 2001) 23 4.1 Nepal Country Objectives 23 4.2 Global ILO Developments 23 4.3 ILO Office Upgraded 25 4.4 Specific ILO Activities 26 A. Employment Promotion 26 a. Labour Force Survey 26 b. National Labour Conference 26 c. National Training Policy 27 d. Vocational Training 27 e. Rural Infrastructure Development Project 27 f. Expansion of Employment Opportunities for Women 28 g. Economic Empowerment of Women 29 h. Gender Audit 29 i. Start and Improve Your Business 29 j. Youth Self-Employment Programme 29 k. Exchange of Excellence Programme 30

iv 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

l. Work Improvement and Development of Enterprises 30 m. Cooperative Development and Training 30 B. Fundamental Rights 30 a. Prevention and Elimination of Child Labour 31 b. Elimination of Bonded Labour 32 c. Elimination of Child (Bonded) Labour 33 d. Combating Trafficking 34 C. Social Protection 35 a. Occupational Safety and Health Policy 35 b. Social Security Policy 36 c. Extension of Social Protection 36 D. Social Dialogue 37 E. United Nations Development Assistance Framework (UNDAF) 39 F. Poverty Reduction Strategy Paper 39 G. Other Activities 39 4.5 ILO Conventions 40

5. Looking Forward 41 5.1 Introduction 41 5.2 Strategic Objective 1: Fundamental Principles and Rights at Work 41 A. InFocus Programme: Promoting the ILO Declaration 41 B. InFocus Programme: Elimination of Child Labour 42 5.3 Strategic Objective 2: Opportunities for Women and Men to Secure Decent Employment and Income 44 5.4 Strategic Objective 3: Social Protection 45 5.5 Strategic Objective 4: Social Dialogue 46 5.6 In Conclusion 47

Table 1: ILO Country Objectives, Nepal 24

Annex A: ILO Office, Nepal Names of the Director, Senior ILO Advisors and Officers-in-Charge 49 Annex B: List of ILO Staff, 2001 ILO Office, Nepal 50

v

Foreword

Thirty-five years ago, in 1966, Nepal joined the International Labour Organization. Since then the ILO has been collaborating closely with His Majesty’s Government and the ILO’s social partners, namely, the employer’s and the workers’ organizations.

During the early years, the technical assistance programme of the ILO in Nepal focused on human resources planning and the assessment of training needs. Assistance was also provided in projects related to employment promotion, labour policy and administration, cooperative development, social security and small enterprise development. The ILO further managed to provide technical expertise in the irrigation and rural transport sectors with its pioneering experience in labour-based technology. The Dhaulagiri Irrigation Development project introduced an employment-intensive, participatory approach in infrastructure development.

With the political changes in the country in 1990, a genuine tripartite framework for ILO operations was established. The ILO was active in legislative formulation, policy dialogue and institutional capacity building during this period. Additionally, the ILO continued to be involved in the employment sector. Assistance to the cooperative development sector continued. The training for rural gainful employment concept for vocational training was another major ILO intervention designed to promote and support income-generating activities and social justice in rural areas. The employment intensive investment programmes of the ILO not only promoted but also introduced to the workforce at various work sites core International Labour Standards relating to what is now referred to as “Decent Work”. Social protection and social dialogue increasingly became important aspects of ILO programming in Nepal as did a focus on the promotion of equality for women in the world of work.

The first five-year country programme (1996–2001) of the ILO in Nepal was developed and implemented in response to changes both internationally and at the national level. In recent years, the ILO has shifted the emphasis away from project implementation towards upstream policy advice and institution building. The adoption of the ILO Declaration on Fundamental Principles and Rights at Work, the programming of activities centred on four strategic objectives and the formulation of international focus (InFocus) programmes of high priority, relevance and visibility, have provided new directions. 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Additionally, the Active Partnership Policy, initiated in 1992, brought the ILO closer to its tripartite constituents and brought technical advisory services closer to the ground. In Nepal, the strategic objectives and priorities of the ILO are arrived at through tripartite consensus. The tripartite partnership arrangement of ILO is unique and will continue to form the basis for programming, planning and implementation.

During the earlier years the ILO did not have a formal country programme. The ILO in Nepal was represented by the United Nations Development Programme (UNDP). In view of the increasing opportunities and scope of the enlarged portfolio of ILO programmes, the Office of the Senior ILO Advisor was established in Nepal in January 1994. The Kathmandu Office was upgraded in 2000 to an Area Office with a “Director” replacing the Senior ILO Advisor.

During the past 35 years, the ILO has made major contributions to the development process in Nepal. One of the most significant contributions of the ILO, from the very beginning, was in the sphere of employment generation through labour-based activities. It introduced for the first time, innovative approaches in appropriate, labour intensive technologies, particularly in the irrigation sector. These workable approaches were later adapted in other sectors as well, for example in rural road construction, by a number of donors.

Social mobilisation and participation by the project beneficiaries were at the heart of these infrastructure projects. For the first time the implementation process not only considered technical aspects but also the social realities in the field which significantly contributed to project success. The ILO also pioneered the partnership approach between the government line agencies, the ILO social partners and non-governmental organizations according to the comparative advantage of each organization for the successful implementation of the projects.

Throughout this period, the basic mandate of the ILO regarding the promotion of labour issues was equally at the forefront of the programme in Nepal. Particularly during the 1990’s, after the establishment of the tripartite structure in the country, the ILO made considerable efforts in promoting labour standards and in the capacity building of its social partners.

More recently, the project portfolio of the ILO programme in Nepal has expanded considerably focusing on the elimination of child labour, in general, and its worst forms in particular within a specified period of time. The ILO-IPEC’s Time-Bound Programme is the new flagship programme through which the needs and rights of children will be protected to promote social justice and universal peace. During the past years, gender mainstreaming has been considered as an integral part of all ILO activities in Nepal.

The Declaration on Fundamental Rights at Work underscores that all member countries have an obligation to respect the fundamental principles included in the Declaration, whether or not they have ratified the relevant ILO Convention. The Declaration encompasses four sets of core international labour standards on freedom of association, abolition of child labour, xxiv 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

elimination of forced labour and discrimination. By calling on the ILO to assist its Members, at their request, not merely to promote but to realise these fundamental principles, the Declaration thus provides the ILO with a clearer and stronger active mandate for its work across the globe.

As stated by the ILO Director General, Juan Somavia, the primary goal of the ILO today is to promote opportunities for women and men to obtain decent and productive work, in conditions of freedom, equity, security and human dignity. In consultation with the ILO constituents, a programme for the next biennium (2002 – 03) has been prepared. In order to improve the lives and working conditions of Nepalese men and women, the ILO Office in Kathmandu looks forward to working closely with His Majesty’s Government and the employers’ and workers’ organizations, in close partnership with the international community, civil society organizations and, most importantly, the people of Nepal.

The reason for the success of the ILO in Nepal has been the cooperation, trust and active support it has received from its closest partners: His Majesty’s Government, the employers’ organization (FNCCI) and the trade unions (DECONT, GEFONT, NTUC). I would like to express my gratitude to all of them for guiding the ILO in prioritising its work in the country and in achieving common objectives. Additionally, the ILO is also proud of the association it has fostered in Nepal with numerous educational institutions, non-governmental organizations, research organizations and civil society. Similarly, the ILO has received support from the sister organizations in the United Nations system, multilateral agencies and bilateral donors. We are grateful to all of them and look forward to continued collaboration in our activities to promote decent work for all women and men in Nepal.

The ILO in Nepal continues to value the advice, support and encouragement being received from ILO headquarters, the Regional Office for Asia and the Pacific and the South Asia Multidisciplinary Advisory Team.

Up to now, the extensive work that the ILO has done in Nepal had not been recorded in a comprehensive way. I would like to thank Mr. Binod K. Shrestha for taking up this challenging task of documenting the considerable work done by the ILO in Nepal during the past 35 years. I would also like to thank all the former and present ILO colleagues who provided valuable contributions and comments in preparing this document.

Leyla Tegmo-Reddy Director ILO, Kathmandu November 2001 xxv

Abbreviations

ADB Asian Development Bank APP Active Partnership Policy APPOT Asia and Pacific Project on Tripartism ARTEP Asian Regional Team for Employment Promotion ASIST Advisory Support Information Service Training CIS International Occupational Safety and Health Information Centre DDC District Development Committee DECONT Democratic Confederation of Nepalese Trade Unions DFID Department for International Development, United Kingdom DOL Department of Labour DoLIDAR Department of Local Infrastructure Development and Agricultural Roads EASMAT East Asia Multi-Disciplinary Advisory Team, Bangkok EDII Entrepreneurship Development Institute of India EPC Employment Promotion Commission FAO Food and Agriculture Organization FNCCI Federation of Nepalese Chambers of Commerce and Industries FNCCI-EC Federation of Nepalese Chambers of Commerce and Industries – Employers’ Council GEFONT General Federation of Nepalese Trade Unions GTZ German Technical Cooperation HMG His Majesty’s Government (of Nepal) ICFTU International Confederation of Free Trade Unions IEDI Industrial Enterprise Development Institute ILO International Labour Organization IOE Institute of Engineering IPEC International Programme on the Elimination of Child Labour ISPI Italian Social Partners’ Initiative IYB Improve Your Business LMIS Labour Market Information System MOLRM Ministry of Land Reform and Management MOLTM Ministry of Labour and Transport Management MOWCSW Ministry of Women, Children and Social Welfare NASC Nepal Administrative Staff College NGO non-governmental organization NLFS National Labour Force Survey NPC National Planning Commission NTUC Nepal Trade Union Congress OSH occupational safety and health 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

PRSP Poverty Reduction Strategy Paper RIDP Rural Infrastructure Development Project ROAP Regional Office for Asia and the Pacific SAAT South Asia Multi-Disciplinary Advisory Team, New Delhi SAVPOT South Asia and Vietnam Project on Tripartism and Social Dialogue in Action SDC Swiss Agency for Development Cooperation SIYB Start and Improve Your Business SPWP Special Public Works Programme STEP Strategies and Tools Against Social Exclusion and Poverty SYB Start Your Business TBP Time-Bound Programme TRUGA Training for Rural Gainful Activities TUC-GEP Trade Union Committee for Gender Equality Promotion UN United Nations UNDP United Nations Development Programme UNDAF United Nations Development Assistance Framework UNICEF United Nations Children’s Fund USAID United States Agency for International Development WISE Work Improvement in Small Enterprises YSEP Youth Self-Employment Programme

xxviii 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Introduction 111

1.1 International Labour Organization

The International Labour Organization In 1946, the ILO became the first special- (ILO), created in 1919, is built on the consti- ized agency within the new United Nations tutional principles that universal and lasting (UN) system. The ILO was awarded the Nobel peace can only be established if it is based Peace Prize in 1969, the year in which it com- upon social justice. The ILO brings together pleted its first 50 years. governments, employers and trade unions from its 175 member states for united action to pro- The ILO has always been a unique forum mote social progress, without which there can among world organizations in that employers’ be no harmonious economic or social devel- and workers’ representatives have an equal opment. The International Labour Conference, voice with that of governments in formulat- which meets annually, provides an interna- ing its policies. The ILO helps to prepare de- tional forum for discussion of world labour velopment policies and strives to ensure that and social problems. It also sets minimum in- the fundamental rights of workers are pro- ternational labour standards and the broad tected. ILO activities are focused on creating policies of the ILO. greater opportunities for women and men to secure decent employment and income. The One of the most important and basic ILO engages in: functions of the ILO is the adoption of • the formulation of international policies conventions and recommendations that set in- and programmes to promote basic human ternational labour standards. Between 1919 rights, improve working and living con- and 2001, 184 conventions and 192 recom- ditions, and enhance employment oppor- mendations have been adopted. They cover tunities; many areas such as certain basic human rights • the creation of international labour stand- (freedom of association, abolition of forced ards backed by a unique system to super- labour, elimination of child labour and elimi- vise their application that serve as guide- nation of discrimination in employment), la- lines for national authorities putting these bour administration, industrial relations, em- policies into action; ployment policy, working conditions, social • an extensive programme of international security, occupational safety and health technical cooperation formulated and im- (OSH), employment of women and employ- plemented in active partnership with con- ment of special categories (migrant workers stituents that help countries to make these and seafarers). policies effective in practice; 1 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

• training, education, research and fundamental principles and rights at work, publishing activities that help advance employment and income opportunities these efforts. for women and men, social protection and social dialogue. These four objectives define In 1998, the International Labour Confer- the ways in which the ILO can promote ence adopted the ILO Declaration on Funda- the primary goal of decent work. Under mental Principles and Rights at Work, mark- each strategic objective, a number of ing a universal reaffirmation of the obligation, international focus (InFocus) programmes arising from the essential fact of membership have been launched. in the ILO, to respect, promote and realize the principles concerning fundamental rights that are the subject of certain ILO conventions. The 1.2 The ILO in Nepal ILO adopted, in 1991, a strategy in the strug- gle against child labour, namely, the Interna- Nepal joined the ILO in 1966. This publi- tional Programme on the Elimination of Child cation is the first attempt to summarize the Labour (IPEC). eventful 35-year history of the ILO’s techni- cal assistance programme in Nepal. The International Labour Office in Ge- neva is the permanent secretariat of the ILO. The activities of the ILO have been pre- Administration and management are decentral- sented in chronological order divided into four ized to regional, area and branch offices. The distinct periods. The activities started in one Regional Office for Asia-Pacific (ROAP) in period were often continued into the next pe- Bangkok covers the general management and riod but during the subsequent phase, there coordination of all activities carried out un- were noticed incremental focus and achieve- der the ILO programme in its region, which ments in these ongoing activities. includes Nepal. In the early years of ILO in Nepal, from Technical advisory services are decentral- 1966 to 1990, under the System, ized to multi-disciplinary teams. Three multi- political parties were banned and trade unions, disciplinary advisory teams, composed of spe- one of the ILO’s constituents, did not have cialists with professional expertise in techni- legal existence but operated underground. cal fields lying within ILO’s basic mandate, Only the officially sponsored and controlled are placed in the Asian and Pacific region to labour organization was permitted to operate. prepare the necessary assistance and advice Consequently, ILO activities were concen- to ILO’s constituents. trated in the fields of manpower planning and assessment of training needs. Subsequently, The primary goal of the ILO today is to the programme expanded to other areas, promote opportunities for women and men namely employment, training, labour policy to obtain decent and productive work, in and administration, cooperative development, conditions of freedom, equity, security and women and gender, child labour, social human dignity. This strategic vision has security, management, small enterprise been translated into action programmes development, industrial relations and labour- through four strategic objectives relating to: based construction. 2 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

The second period of activities was constituents and the ILO agreed on a mid-term from 1990 to 1996. The political movement programme that would address the problems of 1990 replaced the Panchayat with a prevailing in the Nepalese world of work. democratic system. This provided the ILO Accordingly, new ILO Country Objectives for and its partners with new opportunities in Nepal were defined with a view to formulat- the areas of advocacy, policy and social ing a comprehensive and coherent programme dialogue that are its focal areas of commit- of technical assistance. ment. The Labour Act (1992) provided the legal framework for a tripartite consulta- Finally, this publication ends with a chap- tive process. The ILO’s unique tripartite ter on planned activities for the biennium of structure was established and, in the course 2002–03 which has been prepared in consul- of the 1990s, became operational in Nepal tation with the ILO’s social partners. Although for the first time. these objectives cover a wide range of activities, they are consistent with the four The third period was from 1996 to 2001. key areas of the ILO, namely, employment, As a result of a thorough and systematic re- social dialogue, fundamental rights and social view of the labour sector in Nepal, the ILO’s protection.

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4 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

The Early Years (1966–1990) 222

2.1 Introduction

Before discussing the early years of Ne- bour welfare received recognition and the pal’s collaboration with the ILO, it is impor- Nepal Factory and Workers Act 1959 was en- tant to record some historical information that acted to provide protection of workers’ rights places the partnership in context. In Nepal, the and their welfare. first Industrial Council was constituted in 1935 and the first Company Act was enacted in In 1960, the Panchayat system was intro- 1936. The first modern industry, duced in Nepal, replacing an elected govern- Jute Mills, was established in 1936. In 1947, ment. For nearly 30 years until 1990, political the first politically motivated labour move- parties were banned. During this period, trade ment took place there and labour leaders suc- unions, one of the ILO’s constituents, had to ceeded in making some welfare facilities avail- operate underground as they were not legally able to the workers. The establishment of the permitted to function. Only the officially spon- first commercial bank, Nepal Bank Limited, sored and controlled labour organization, as in 1937, contributed to the growth of more one of six ‘class organizations’, was permit- industries. This was the period of the Rana ted to operate. In order to be eligible to run regime. for election to the national legislature, a po- tential candidate had to enrol as a member in After the installation of a democratic sys- one these six organizations. tem in 1951, the Ministry of Industry and Com- merce came into existence and was the cen- In the Panchayat period, the weak struc- tral secretariat for labour administration. For- ture of labour administration emerged as an mation of trade unions was legalized in 1951, issue of importance. The growing labour force for a short period, until 1960. Their activities, with its weak socio-economic status, on one however, focused on political issues rather hand, and the increasing importance being paid than on labour and welfare matters. to industrialization, labour relations and wel- fare issues in His Majesty’s Government’s The first Industrial Policy was formulated (HMG) periodic plans, on the other hand, in- in 1957 during the First Five-Year Plan that creased the need for establishing a separate began a year earlier. The establishment of the specialized agency to deal with labour admin- Nepal Industrial Development Corporation in istration and promote labour welfare. 1959 provided financial and technical assist- ance to private entrepreneurs. During this pe- The minimum wage was fixed in 1965 riod, the concept of labour relations and la- for the first time when the Federation of 5 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Nepalese Chambers of Commerce and Indus- needs. Subsequently, the programme expanded tries (FNCCI) was established. A year later, to other areas, namely, employment promo- the process of establishing regional labour of- tion, training, labour policy and administra- fices was started, with the first office being tion, cooperative development, social set up in Biratnagar. In 1967, at the recom- security, management and small enterprise mendation of the Ministry of Planning (now development. the National Planning Commission), a Cen- tral Bureau of Labour Affairs was established. The ILO in Nepal was represented by the United Nations Development Programme (UNDP). ILO technical assistance activities 2.2 Nepal Joins the ILO were composed of a set of individual projects that were either a component of UNDP’s work Nepal joined the ILO in 1966 and, after or of other donors’ country programmes. The becoming a member state, HMG started pay- ILO did not have a formal country programme. ing more attention to labour relations and welfare. The first ILO human resources ex- pert in Nepal was sent to assist in the prepara- 2.3 ILO Technical Assistance tion of a human resources assessment and Initiated planning programme. There were subse- quently a large number of training advisory Between 1969 and 1972, the ILO provided missions, surveys and projects in this and re- the services of an expert on labour adminis- lated areas undertaken mainly by the ILO’s tration. The ILO expert made a recommenda- Asian Regional Team for Employment Pro- tion to establish a Department of Labour motion (ARTEP). (DOL) in view of the growing need for serv- ices, security and protection for Nepalese During these early years, the technical workers. At that time, the Administrative Re- assistance programme focused on human re- form Commission (1966) made a recommen- sources planning and assessment of training dation to form a separate Department of In- dustry and Labour. In 1971, the DOL was es- tablished under the Ministry of Commerce and Industries. A number of labour offices, the Skill Development Training Centre and the Industrial Training Project were established during the 1970s.

In 1970, another ILO consultant embarked on a dialogue with HMG to create a separate Ministry of Labour and Social Welfare to manage concerns associated with the grow- ing population and labour force. Later, in 1979, local labour agitation strongly demanded that a separate ministry for labour be established. In 1981, the Ministry of Labour and Social 6 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Welfare was established with the central re- to 1996. It promoted an employment-intensive sponsibility of formulating and executing la- and participatory approach towards small-scale bour policies. irrigation development in four hill and moun- tain districts (Baglung, Mustang, Myagdi and Parbat). Its main objective was to secure food 2.4 Specific ILO Activities production and improve living standards through the rehabilitation of farmer-managed A. Manpower Planning and irrigation schemes and the promotion of com- Employment plementary productive and social activi- ties. Ancillary infrastructure work in- a. Employment-Intensive Investment cluded bridges and water supplies as Programmes well as tracks and trails built using In 1975, Nepal joined the ILO/UNDP in- labour-based technology. ternational programme on planning and ad- ministration with the Special Public Works Five Special Public Works Programme (SPWP). The programme gener- Technical Manuals were pro- ated more than two million work-days of em- duced and are still in high de- ployment between 1980 and 1988 through the mand from donors and projects use of labour-based technology in irrigation, in Nepal. Forty-four irrigation flood control, roads, trails and bridges, water schemes were completed cov- supplies, erosion control and other environ- ering 1,616 hectares and directly benefit- mental protection work. Whereas the infra- ing 4,090 families. During the construction structure works created significant levels of period, 325,348 work-days of employment employment during construction and to a were generated. lesser extent in the maintenance and opera- tion of the completed infrastructure, the irri- c. Capacity Building in the gation work also created hundreds of thou- Department of Irrigation sands of additional permanent jobs in agricul- The ILO’s programme on irrigation led ture as a result of the extended irrigation and to involvement in institution building in the agricultural networks. irrigation sector, where labour-based technol- ogy was institutionalised in most major hill The ILO programmes, funded by UNDP and bilateral agencies, soon became bench- marks for technical standards, especially within the Department of Irrigation. Later, the Institute of Engineering of Tribhuvan Univer- sity introduced ILO-supported technical cur- ricula to teach labour-based planning and tech- nology best practices.

b. Dhaulagiri Irrigation Development Project This project was implemented from 1989 7 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

country irrigation works of the Asian Devel- was implemented in 1986 to upgrade and equip opment Bank (ADB) and the World Bank, both the two Labour Supply Centres in and of which utilized specialist ILO technical ex- in basic skills training, labour market pertise. The Department of Irrigation adopted information and employment services. The labour-based technology as the technology of project was terminated in 1993. first choice and still utilizes the technical manuals and training materials developed by b. Support to the Institute of the ILO. Thus, the ILO significantly influ- Engineering enced an employment-focused policy as a re- In 1971, an ILO/UNDP project was set sult of its successful demonstration project. up to expand and develop the Institute of En- gineering (IOE), and establish a vocational B. Vocational Training training scheme for skilled workers and over- In order to accelerate the economic seers for public works. In 1982, assistance was development of the country, the periodic provided for the establishment of the development plans in Nepal placed substan- campus of the IOE. From 1983 to 1986, the tial emphasis on improving transport and ILO established a micro-hydro laboratory at communications. HMG requested ILO assist- IOE and introduced a comprehensive training ance on training personnel in the construction programme for undergraduates as well as pri- industry. vate sector specialists.

a. Basic Vocational Training Project From 1992 to 1995, a fellowship pro- The Basic Vocational Training Project gramme was implemented to train teaching (BVTP) was set up to upgrade Skill Develop- staff at leading Asian training institutions. This ment Training Centres and develop the em- laboratory continues to play an important role ployment services and labour market informa- in the work of IOE today. During 2000, the tion capacity of the DOL. Two buildings were ILO Advisory Support Information Service constructed for Labour Supply Centres in Training’s (ASIST) Asia Pacific regional pro- Hetauda and Itahari with workshops, class- gramme, based in Bangkok, entered into a rooms and storerooms to provide basic voca- cooperative agreement with IOE for the es- tional training in ten skills. Instructors were tablishment of a technical library on labour- trained in the use of new equipment and im- based technology that is now part of the regu- plementation of training programmes. A meth- lar university curricula. odology for curriculum development and de- tailed curricula were developed. A function- C. Population Education ing labour market information system was ini- The ILO provided assistance to the DOL tiated. A fully functional Employment and (starting in 1976 for five years) for implement- Training Section was established at the DOL ing a Population Education Project to create and was capable of planning, managing and awareness among workers about the conse- monitoring vocational training and employ- quences of rapid population growth and moti- ment services. Job placement, entrepreneur- vate them to adopt family planning. Through ship development, self-employment promo- this project, population education was pro- tion and follow-up services were provided vided to workers in the organized sector. through decentralized centres. A major project 8 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

D. Management Development and gaged in the cooperative movement, and im- Productivity proving the management and involvement of Concern regarding the improvement of communities in pre-cooperative organizations. productivity was, for the first time, included in Nepal’s Seventh Five-Year Plan. During b. Training for Rural Gainful 1981–82, under ARTEP, the ILO assisted the Activities National Planning Commission (NPC) in ana- A training programme for rural gainful lysing employment and basic needs issues.1 activities was implemented from 1984 to 1992 Then, in 1983, assistance was provided for in three phases to promote and support income- processing data and preparing a report of the and employment-generating activities for the first survey of employment, income distribu- rural poor in the off-farm sector. The Training tion and consumption patterns in Nepal. ILO for Rural Gainful Activities (TRUGA) meth- assistance continued in 1987 to strengthen odology consisted of seven interrelated ele- capacity of the NPC in the areas of employ- ments: identification of potential economic ment and manpower planning. activities in rural areas, identification of skill requirements to meet the needs of identified In 1985, the ILO provided further assist- activities, development of instructional con- ance to HMG under the ILO/UNDP project tent, assessment of operating conditions, de- on policy making and programme planning in sign of appropriate instructional methods, de- productivity improvement and management livery systems and support services, execution development. of training programmes and evaluation of re- sults. A total of 254 people, of which two- The ILO also assisted in establishing a thirds were women, received training in vari- consultancy services section at the Nepal Ad- ous skills. Impact evaluation stated that train- ministrative Staff College (NASC) and con- ing subjects matched local needs and the re- ducted a review of the institutional framework tention rate was high among trainees. for the delivery of productivity services. c. Training for Hotel and Catering E. Training Industry Since the early 1970s, the ILO worked a. Cooperative Development and with HMG in the development of the tourism Training The ILO first became involved in coop- erative development in Nepal in 1973, when it conducted a survey of the existing coopera- tive societies and their related institutions in collaboration with the UN’s Food and Agri- culture Organization (FAO).

The Strengthening of Cooperatives Man- agement Project, started in 1984, provided support to the Cooperative Training Centre by increasing the number of qualified staff en- 9 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

sector. Technical cooperation projects aimed (APSDEP) through its focal point in the Min- at developing the tourism sector included a istry of Labour and Social Welfare. This pro- technical assistance programme for the estab- gramme supported policy issues, exchange of lishment of the Hotel Management and Tour- information and shared experiences, and pro- ism Training Centre, training of its staff and vided vocational and technical training. Many trainers, curriculum development, mobile Nepalese officials participated in training training and fellowships. Similarly, in 1987, a courses and other activities in the fields of training programme was designed for the ho- employment services, labour inspection and tel and catering industry. related issues organized by the ILO Asian and Pacific Regional Centre for Labour Adminis- d. Other Training tration (APRLA). The ILO’s programme in the irrigation sector led to involvement in support for insti- At the request of HMG, advice was pro- tution building in the irrigation sector. An at- vided for the implementation of strategies for tempt was made to anchor the sector more the improvement and expansion of social se- firmly in the Department of Irrigation in the curity measures. An ILO/UNDP project, Im- later phase of the programme. This reflected provement of Social Security Planning and a change in the scope of the programme from Administration, recognized the need for so- directly supporting the establishment of irri- cial insurance techniques to replace the em- gation schemes to institutional strengthening. ployer liability method.

Other training activities that were also In 1989, the ILO provided assistance to supported during this period were as follows. design and actuarially value an employment • In 1977, in connection with a World injury scheme. The scheme envisaged cover- Bank-funded highway project, the ILO ing all people over 14 years of age employed assisted in the establishment of a in any business or establishment where ten or training programme for heavy-equipment more workers were employed. Assistance was mechanics. also provided in setting up a computer system • In 1986, a study was conducted on indus- and an electronic data processing strategic plan trial training requirements in Nepal. at the Employee’s Provident Fund Office. Sup- port was provided to the DOL to develop ca- F. Labour Administration, Workers’ pacity to plan and enforce the provision of Welfare and Protection social security. As referred to earlier, the DOL was estab- lished under the Ministry of Commerce and Assistance was provided in 1989 to de- Industries in 1971. In 1981, the Ministry of velop low-cost computer-based Labour Mar- Labour and Social Welfare was established ket Information Systems (LMIS). The objec- creating a landmark in the evolution of labour tive of the project was to establish a secre- administration in Nepal. tariat for a LMIS policy committee with the ability to provide advice of a technical nature Nepal participated in the ILO Asian and and deal with administrative matters concern- Pacific Skills Development Programme ing the labour market.

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2.5 ILO Conventions

During this period, the following ILO con- if the worker receives a similar compen- ventions were ratified by Nepal. satory period of rest.

1. Discrimination (Employment and Oc- cupation) Convention, 1958 (No. 111), 2.6 Summary ratified on 19 September 1974 The aim of this standard is to promote During the early years of ILO in Nepal, equality of opportunity and treatment in most of the issues addressed by ILO-supported respect of employment and occupation on projects were important elements of HMG’s the grounds of race, colour, sex, religion, Basic Needs Programme. In general, the ILO political opinions, national extraction or programme consisted substantially of training social origin. projects spread over a number of sectors. It also included examples of innovative projects 2. Minimum Wage Fixing Convention, in the use of appropriate technology, labour- 1970 (No. 131), ratified on 19 Septem- based activities and a people-oriented ap- ber 1974 proach. The aim of this standard is to establish a system of minimum wages that covers all The Employment-Intensive Investment groups of wage earners whose terms of Programmes first set out to demonstrate, on a employment are such that coverage would pilot basis, the benefits and quality effective- be appropriate. ness of labour-based technology. This activ- ity through the Special Public Works Pro- 3. Equal Remuneration Convention, 1951 gramme (SPWP) then evolved into a broader (No. 100), ratified on 10 June 1976 district and regional level programme with The aim of this standard is equal remu- institutional strengthening within the rural neration for women and men for work of development sector. This was an innovative equal value. It concerns basic wages or project, focusing on irrigation and ancillary salaries and any other additional payments infrastructure, and fundamentally changed the that the employer pays directly or indi- way HMG and donors approached rural de- rectly to the worker, in cash or in kind, as velopment in Nepal. a result of her his or work. During the period from the late 1970s to 4. Weekly Rest (Industry) Convention, the mid 1980s, the ILO further prevailed on a 1921 (No. 14), ratified on 10 December professional basis in the irrigation and rural 1986 transport sectors with its pioneering experi- The aim of this standard is to ensure at ence in labour-based technology. UNDP, ADB, least 24 hours of rest every week. Both the World Bank and many bilateral pro- women and men employed in any indus- grammes (including those of SDC, GTZ and trial workplace have the right to 24 hours DFID) were to follow this example, utilizing of rest in every working period of seven the experience of the ILO in the design of ru- days. Certain exemptions may be allowed ral development programmes. 11 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

The employment-intensive investment programmes of the ILO thus not only promoted but also introduced to the workforce, at vari- ous work sites, core international labour stand- ards relating to what is now referred to as ‘de- cent work’. The TRUGA concept for voca- tional training was another major ILO inter- vention designed to promote and support in- come-generating activities and social justice in rural areas.

Other activities focused on improving the labour system administration in Nepal with support to the newly established DOL and Ministry of Labour and Social Welfare. The emphasis of support was particularly on up- grading labour supply centres, improving so- cial security measures and developing labour information systems.

1 The report was published as a book entitled Employment and Basic Needs in Nepal by Rizwanul Islam, Azizur Rahman Khan and Eddy Lee. 12 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

New Opportunities (1990–1995) 333

3.1 The Social Partners

The political movement of 1990 replaced ment issues it is also involved with the Em- the Panchayat of 30 years with a democratic ployment Promotion Commission (EPC). system. A new Constitution (1990) was prom- ulgated. It guaranteed human rights, freedom As for rural infrastructure development, of association, equality, civil liberties and pro- the ILO has a partnership with the Ministry of tection against exploitation. It provided the Local Development. The ILO also cooperates ILO and its partners with new opportunities with the Ministry of Land Reform and Man- to work in areas of advocacy, policy and so- agement (MOLRM) regarding the elimination cial dialogue that are their focal areas of com- and rehabilitation of bonded labour. In coop- mitment. eration with the Ministry of Tourism and Civil Aviation, there have been a number of projects A. His Majesty’s Government of Nepal regarding the promotion of tourism in the coun- The Ministry of Labour and try. Additionally, the ILO cooperates closely Transport Management with the NPC on policy issues and implemen- (MOLTM) is now the apex body tation of specific initiatives. In later years this in labour administration. The collaboration increased considerably. DOL, a subordinate organ in the Ministry, is responsible for the implementa- B. The Employers’ Organization tion of labour policies and enforcement of leg- The Federation of Nepalese Chamber of Com- islation on labour as well as for assisting in merce and Industries (FNCCI), an the process of increasing production and pro- umbrella organization of the ductivity, promoting a congenial industrial Nepalese private sector, was es- environment and developing basic skills of tablished in 1965. It has played a labour for employment opportunities. In ad- key role in promoting business and industry dition, there are 10 zonal labour offices, 13 in Nepal. It also has a major role as the em- skill development training centres, one em- ployers’ organization in Nepal, with a network ployment and exchange service project and of 85 district/municipality-level chambers in two vocational training centres. 69 of the 75 districts, 50 commodity/sectoral associations, 423 leading public and private Besides the MOLTM, the ILO has also sector undertakings, and nine bi-national established a strong working relationship with chambers. the Ministry of Women, Children and Social Welfare (MOWCSW). Regarding employ- The FNCCI is represented in almost all 13 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

national councils, boards and policy advisory DECONT, in cooperation with the ILO, bodies concerned with industry, business and has organized various leadership development labour relations. The Employers’ Council of training courses, national-level policy work- the FNCCI (FNCCI-EC), established in 1985 shops, a women’s conference, a national evalu- as a permanent organ of the FNCCI, apart from ation workshop, training on OSH, etc. It has representing the interest of corporate mem- recently completed a one-year project for gen- bers, establishes links between employers, erating income and raising awareness among employees and the government through regu- women agricultural workers. Similarly, it has lar contact. It also presents unified opinion on launched a pilot project for the elimination of labour matters and industrial relations, and child labour in the transport sector. organizes activities in related areas. A past Chairman of the FNCCI-EC, who is the ex- In cooperation with other labour-focused officio Vice President of FNCCI, is a Substi- organizations/institutions—such as the tute Deputy Member of the Governing Body Friedrich Ebert Stiftung, International Federa- of the ILO. tion of Building and Wood Workers, Environ- ment Sector Programme Support, etc.— C. The Workers’ Organizations DECONT has organized various training pro- The enactment of the Labour Act 1992 grammes on leadership development, OSH and was a major step taken by HMG in the field of gender issues, social security, awareness rais- labour legislation. The Trade Union Act 1993 ing and mobile health. provided a framework for the registration and functioning of trade unions. There are now • General Federation of Nepalese three national-level trade unions registered in Trade Unions (GEFONT) Nepal. The are as follows. GEFONT, founded in 1989, is a confederation of 15 national fed- • Democratic Confederation of erations dedicated to the rights, Nepalese Trade Unions (DECONT) welfare and dignity of workers as DECONT was established in a whole. GEFONT covers vari- 1997. It works for the overall ous sectors: manufacturing and general work; rights and welfare of Nepalese textile, garments and jute work; transportation; workers’ engaged in the formal carpet; hotels and restaurants; trekking travel and non-formal sectors. At and rafting; tea plantation; printing presses; present, DECONT has 18 affiliated unions and auto mechanics; construction; garbage collec- 40 district committees. DECONT represents tion; food and beverage; chemical, iron and workers involved in various sectors such as allied industries; rickshaw pulling; and agri- carpet, construction, agriculture, banking and culture including bonded labourers. finance, film, customs and airport, transport, garment, hotel, factories, health, press, com- It has a special department, the Central mercial workers, tea shops and restaurants, Workers’ Department, with status equivalent rickshaw and cart pullers, etc. DECONT con- to that of a national federation. This depart- centrates its activities primarily in the infor- ment works as a coordinating platform for all mal sector and has launched various pro- leading women workers associated with na- grammes in order to achieve its goals. tional federations. 14 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Furthermore, GEFONT has three regional tor corporations, health professionals, unor- coordination committees and 10 zonal offices ganized workers in agriculture, transport, bar- based at each Labour Office that coordinate bers, construction, electrical, leather factory, GEFONT activities for the country. ‘Social- small hotels, rickshaw pullers, wood and shop ism for a dignified working class and a pros- sectors. perous life’ is the vision statement of GEFONT. As the mainstream of the pro- Since its reorganization, NTUC has been worker trade union movement in Nepal, working in the areas of child labour, social GEFONT considers its four basic principles security and social justice, social dialogue and to be independent function, mass base, mili- a range of issues involving all sector partners. tancy and socialism. It is an independent trade NTUC participates actively in the PRSP proc- union movement having no affiliation with any ess. Through its national affiliates, the NTUC international trade union association. The cur- conducts workers’ education, rights-based pro- rent Chairman of GEFONT, Mr Mukunda grammes, workers’ awareness in OSH, funda- Neupane, is a former Minister of Labour for mental core labour conventions, gender issues HMG, who was the first minister with a trade and collective bargaining for social justice. union background. NTUC is a member of ICFTU and on the • Nepal Trade Union Congress Executive Board of its Asian and Pacific Re- (NTUC) gional Organization (ICFTU-APRO). Re- Nepal Trade Union Congress inherited the cently it has started activities in the coopera- legacy of the Nepal Mazdoor Congress, the tive sector. The President of NTUC, Mr first trade union in the country founded in 1947 Laxman Basnet, is a Deputy Member of the by Mr G.P. Koirala, subsequently Governing Body of the ILO. President of the Nepal Congress Party and more recently Prime With the development of these institu- Minister of Nepal. The Nepal tions, the ILO’s unique tripartite structure was Mazdoor Congress organized the complete and operational in Nepal for the first first industrial action that same year in time. The Labour Act 1992 provides for the Biratnagar, Nepal. It was a member of the In- tripartite consultative process and there is a ternational Confederation of Free Trade Un- National Tripartite Labour Advisory Commit- ions (ICFTU) until the political change in tee that discusses all labour issues and poli- 1960. Mr Koirala, along with other members cies in a tripartite framework. In 1995, Nepal of the union, were imprisoned for more than ratified the Tripartite Consultation Convention eight years and later exiled to India. (No. 144).

The Nepal Mazdoor Congress was reor- ganized as the Nepal Trade Union Congress 3.2 Active Partnership Policy (NTUC) in 1990 after the restoration of de- mocracy. NTUC has 62 district committees Since the adoption of the Active Partner- and 20 affiliated unions in carpet, garment, ship Policy (APP) in 1992, the ILO has been tourism and hotels, journalism, tea plantations, brought even closer to its tripartite constitu- teachers, bank workers, insurance, public sec- ents at the national level. As a stimulus for 15 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

social dialogue, it has served as an important the ILO’s social partners in South Asian coun- means of promoting tripartite interaction in tries. The SAAT, based in New Delhi, provides member states. In a multilateral system, the technical advisory services in the following ILO is the only institutionalized structure areas: employment strategies and labour mar- where key representatives of civil society— ket policies, small enterprise and management employers and workers—play a role on equal development, human resource development terms with governments. and vocational training, social protection, in- dustrial relations and labour administration, Moreover, through the new active partner- conditions of work and occupational safety and ship approach, which had as a key element the health, women and gender issues, International defining of country objectives by the ILO’s Labour Standards, employers’ activities and tripartite constituents, the strategic objectives workers’ activities. and priorities of ILO respond better to national needs and are concluded through a tripartite Over the years, the ILO has been working consensus. To this day, the ILO maintains close with its tripartite constituents and social part- contact with its tripartite national constituents ners in a host of activities funded through its to ensure that their concerns are continuously Regular Budget Technical Cooperation addressed. (RBTC) funds. These activities have included strengthening capacity to improve industrial The key instrument of the APP has been the relations, collective bargaining capacity, con- operation of a network of multi-disciplinary ad- ciliation and arbitration, entrepreneurship de- visory teams in the regions. In recent years, the velopment and development of enterprises, ILO has shifted the emphasis from projects to mainstreaming of gender equality in pro- upstream policy advice and institution-building. grammes and projects, improving service-de- In this regard, the multi-disciplinary advisory livery capacity, periodic national and interna- teams help ground strategic objectives and op- tional training, etc. erational priorities described above in the re- gional context. Activities in Nepal are closely associated with the ILO South Asia Multi-disci- 3.3 ILO Office Established plinary Advisory Team (SAAT) and, in certain technical fields, with the East Asia Multi-disci- In view of increasing opportunities and the plinary Team (EASMAT). scope of the enlarged portfolio of ILO pro- grammes, the Office of the Senior ILO Advi- SAAT and EASMAT are two of the 16 sor was established in Nepal in January 1994. such teams established by the ILO worldwide. The primary function of the SAAT is to pro- The aim of the office was to help estab- vide technical guidance and advisory services lish and further ILO’s basic goals of improv- in South Asian countries on policy and tech- ing working and living conditions as well as nical issues related to labour and employment promoting labour standards and employment to the tripartite constituents of the ILO within through a wide range of programmes. The the ILO’s core mandate. Further, SAAT offers Office provides support services to all assistance in formulation and implementation ILO-executed technical cooperation projects of country strategies, programmes/projects for in Nepal. 16 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

B. Employment Promotion A sectoral review of employment, train- ing and labour administration in Nepal was undertaken by a team of ILO experts in 1990 to formulate a comprehensive programme of technical assistance. From 1993, an ILO in- ternational expert provided input and the project laid the foundation for the preparation of a national programme for rural employment.

The Employment Promotion Programme mission visited Nepal in 1995. The draft re- port was published by SAAT. The comprehen- sive report outlining employment strategies recommended employment programmes in various sectors of the economy. SAAT also prepared a project proposal on employment promotion and improvement of working con- ditions for women. In addition, SAAT con- Since the establishment of the Office, four ducted a comprehensive review on vocational Senior ILO Advisors/Officers-in-Charge and training which led to the formulation of a one Director have assumed responsibility for number of action programmes in the field of coordinating ILO activities in Nepal. skills training.

Furthermore, the Institutional Strengthen- 3.4 Specific ILO Activities ing for Rural Infrastructure Development Project commenced activities in 1996 and A. International Programme on the finished in 1998. The project assisted HMG Elimination of Child Labour in formulating the National Strategy for The International Programme on the Rural Infrastructure Development and in Elimination of Child Labour (IPEC) started in 1995 in close partnership with ILO’s constituents and a number of other organiza- tions. Nepal was the eleventh country to im- plement an IPEC country programme. HMG gives high priority to progressively prohibit- ing, restricting and regulating child labour within the framework of ILO Conventions No. 138 and 182. IPEC is now a major activity of the ILO in Nepal. More details about this pro- gramme and its contributions are given in the next chapter.

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restructuring the technical wing of the Minis- groups were unem- try of Local Development. It assisted the Min- ployed and under- istry in building its institutional capacity for employed women addressing rural infrastructure development from eight pilot and helped in devising the framework for the project areas. A creation of increased employment opportuni- total of 681 ties for the rural poor. SAAT provided techni- women were cal assistance on capacity building in labour trained; 246 in intensive infrastructure development new business creation and C. Population Education 435 in small business as- The Population Education Project was sistance for women entrepreneurs. A started in 1993 with the aim of equipping the documentary film was made about project ac- DOL with an adequate capability to organize tivities that was shown during the Beijing and operate population and family welfare World Conference for Women. A training education activities as integral parts of voca- manual for the DWET was upgraded and tech- tional and skills training courses. Sixty instruc- nical assistance in revising the Credit Guar- tors were trained. Orientation was provided antee Fund Agreement aimed at development to 3,600 vocational trainers and 7,000 work- of women entrepreneurship was provided. The ers from industrial establishments. In turn, project was implemented through the Minis- population education was incorporated in the try of Tourism and Civil Aviation. training programmes of the DOL. The Women’s Self-Help Saving and D. Management Development and Credit Assistance project commenced its ac- Productivity tivities in 1995, and by the time it was com- Continuing support provided earlier, the pleted in 1996, several cooperatives managed ILO assisted in the establishment of a consul- by women had been established. The project tancy services section at the NASC and con- was operational in Chitwan and Dolakha dis- ducted a review of the institutional framework tricts. It focused on creating a financial sys- for the delivery of productivity services. From tem for poverty alleviation through the pro- 1990 to 1994, the ILO provided assistance for motion of business activities. During the the management of consultancy and training project period, 100 women groups and six sav- services at NASC. In 1995, a small fellow- ing and credit associations were registered. ship programme was supported for training of the faculty. A study of the factors affecting women entrepreneurship in small and cottage indus- E. Women Entrepreneurship tries was conducted with the objective of ex- The goal of the Development of Women’s amining gender issues involved in entrepre- Entrepreneurship in Tourism (DWET) project neurial development for women, and gender was to increase the possibilities of employ- differences that inhibit, restrain and obstruct ment for women in the tourism sector, in line women from advancing in the field of entre- with successive government sectoral objec- preneurship or availing opportunities that pro- tives and operational strategies. The target mote it. 18 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

F. Training for Rural Employment Project, it was extended until July 1996. The With a view to building on experience ADB mission, impressed with the ILO ap- generated by TRUGA, and designing and im- proach, management and implementation of plementing training programmes based on a activities, recommended the initiation of a comprehensive assessment of the problems large-scale rural infrastructure support project and prospects for employment generation in on which the services of two UN volunteers rural areas, a new project was designed under were also provided from August 1995 to the title Training for Rural Employment March 1996. (TRE). The objective of the project was to promote socio-economic development through Earlier ILO experiences from labour- off-farm wage employment, group employ- based technology programmes were also used ment and self-employment opportunities by in emergency flood rehabilitation programmes implementing community-based training pro- in the Far Western Development Region and grammes for micro-enterprise development. in Sindhuli district with remarkable success. As in the previous phase, the majority of the Additional new, appropriate technologies were trainees were women. also introduced, including ferro-cement and canal linings, and the use of calmmite in lieu G. Cooperative Development and of explosives in geologically and ecologically Training sensitive hill areas. The Sindhuli flood reha- Continuing the previous years of support bilitation project was the subject of a special in this sector, the concept of management con- evaluation some five years after the work was sulting for cooperatives was introduced in carried out, and this assessment showed a high Nepal in 1990. The initial objective was to level of sustainability despite the recurrence bring about change in the management style of flooding. of cooperatives. Under the framework of an interregional project on human resource de- I. Occupational Safety and Health velopment for the cooperative movement and The DOL submitted a proposal in 1994 to networking, ILO assistance focused on greater the ILO for the establishment of a national independence and self-reliance of the coop- Occupational Safety and Health Centre in eratives through self-help savings and credit Nepal. Since 1996, the OSH project has been associations. In addition, EASMAT assistance operational under the MOLTM with the ob- focused on providing greater independence jective of promoting safe and healthy work- and self-reliance through self-help savings and ing conditions in the workplace thereby as- credit associations. sisting in the achievement of an improved work environment, better motivation and H. Flood Rehabilitation higher productivity. Nepal later joined the Starting in 1994, support was provided for ILO’s International Occupational Safety and the rehabilitation of flood-damaged rural in- Health Information Centre (CIS) based in frastructure and agricultural land. As this tech- Geneva, as a result of which it created a CIS nical assistance project made a substantial unit within the DOL and developed an Occu- contribution to the implementation of the pational Safety and Health Information Net- World Food Programme’s (WFP) Food work for Nepal.

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EASMAT also prepared a report on standing of the social consequences of eco- policies and programmes to improve OSH. nomic reform and to develop relevant pro- grammes of action for minimizing adverse J. Social Dialogue social consequences. SAAT also provided A national seminar, held in October 1990, technical input to trade unions to understand on industrial relations and the role of trade better the social consequences of economic unions and employers’ organizations, made a reforms and develop programmes to minimize number of recommendations for the formula- adverse effects. tion of new laws and a constructive industrial relations system to promote industrial devel- Support to the MOLTM continued during opment. The discussions focused on this period with the objective of strengthen- tripartism, role of legislation, collective bar- ing the development administration capacity, gaining, conciliation, dispute settlement, particularly concentrating on employment pro- wages including minimum wage policies, trade motion, skills development, involvement of union rights, organization and functional as- women in development and enhancement of pects of employers organizations, productiv- social welfare. ity and the International Labour Standards. In association with FNCCI, SAAT organ- A national tripartite workshop was organ- ized a workshop to sensitize officials of em- ized by SAAT to discuss and understand vari- ployers’ and workers’ organizations about In- ous ILO conventions. The workshop proposed ternational Labour Standards. Technical assist- ratification of the following conventions. ance was provided for improving their skills - Freedom of Association and Protection of in handling industrial relations and human re- the Right to Organize Convention, 1948 source management at the workplace. (No. 87) - Right to Organize and Collective Bargain- The Asia and Pacific Project on Tripartism ing Convention, 1949 (No. 98) (APPOT) focused on data collection and - Abolition of Forced Labour Convention, awareness creation on tripartism and the de- 1957 (No. 105) velopment of action plans to improve tripar- - Minimum Age Convention, 1973 (No. tite mechanisms. 138)

A regional tripartite workshop was organ- 3.5 ILO Conventions ized in 1995 to examine the implications of economic reforms and to formulate recom- The following ILO Convention was rati- mendations towards creating a more condu- fied by Nepal during this period. cive policy environment for small enterprises. • Tripartite Consultation (International SAAT also organized a tripartite training Labour Standards) Convention, 1976 workshop on industrial relations to create a (No. 144), ratified on 21 March 1995 core of trainers to undertake programmes for The aim of this standard is to establish their constituents. Training was provided to a tripartite system in the country whereby trade union representatives for better under- all issues and policies related to the 20 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

labour sector are discussed and consulted work. The ILO was active both in leg- in a tripartite way. This process is also islative formulation and policy dia- applicable to social partners when deal- logue during this period. ing with ILO activities. Additionally, the ILO continued to be in- 3.6 Summary volved in the employ- ment sector, a traditional The Office of the Senior ILO Advisor was area for ILO assistance going established in 1994 in order to improve the back to 1966. For example, a new delivery of technical services for the expanded department was established within the portfolio of ILO activities in Nepal. Ministry of Local Development for the promotion of participatory local resources The political changes in the country in and labour-based technology in infrastructure 1990 provided an opportunity to develop a tri- development. partite framework for ILO operations. How- ever, the early 1990s were years of transition This was also the time when the ILO ini- when new legal frameworks and organizations tiated the International Programme on the were established, and the ILO and its partners Elimination of Child Labour (IPEC) in Ne- were actively involved in formulating pro- pal. Furthermore, a number of projects con- grammes and work in response to the chang- centrated on off-farm employment generation ing situation. During this period, the ILO fo- particularly for rural women. Assistance to the cused its activities on capacity building of the cooperative development sector continued. newly formed organizations and on other or- Social protection and social dialogue became ganizations that needed support in the context increasingly important aspects of ILO pro- of the newly promulgated legislative frame- gramming in Nepal.

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A New Country Strategy (1996 – 2001) 444

4.1 Nepal Country Objectives 4.2 Global ILO Developments

A labour sector review was undertaken in The ILO Declaration on Fundamental Prin- 1997 by the Office of the Senior ILO Advisor ciples and Rights at Work was adopted in 1998. in close collaboration and consultation with It marked a reaffirmation of the ILO’s member the MOLTM (as the focal point) and with states to ‘respect, promote and realize in good employers’ and workers’ organizations. As a faith’ principles concerning the rights to free- result of this systematic review of problems dom of association and effective recognition in the labour sector, ILO’s constituents and of rights to collective bargaining, elimination the ILO agreed on a mid-term programme of all forms of forced or compulsory labour, (1997–2001) that would address problems effective abolition of child labour, and elimi- prevailing in this sector. The National nation of discrimination in respect of employ- Tripartite Workshop held in Kathmandu in ment and occupation. May 1997 endorsed the following objectives as its priorities. This declaration underscores the under- standing that all member countries have an • Objective 1: Promotion of employment obligation to respect the fundamental princi- for poverty alleviation through enterprise/ ples included in the declaration even when entrepreneurship development and the they have not yet ratified the relevant ILO con- non-formal sector ventions. By calling on the ILO to assist its • Objective 2: Improvement in industrial members, at their request, not merely to pro- relations mote but to realize these fundamental princi- • Objective 3: Elimination and regulation ples, the declaration thus provides the ILO of child labour with a clearer and stronger mandate for its • Objective 4: Improvement of working work across the globe. conditions and OSH at workplaces Following the declaration, the ILO moved Although these objectives cover a away from its previous structure based on 39 wide range of activities, they are consistent major programmes to a new structure centred with the four key areas of the ILO’s on four strategic objectives. Under each of these strategic objectives. The activities proposed strategic objectives, a number of international under each of the above objectives are shown focus (InFocus) programmes of high priority, in Table 1. relevance and visibility were identified.

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Table 1 ILO Country Objectives, Nepal

Objective 1: Objective 2: Promotion of employment for poverty alleviation through Improvement in industrial relations enterprise/ entrepreneurship development and non-formal sector

1. Define a medium-term employment strategy 1. Raise awareness of important elements of sound indus- 2. Increase the capacity of government to collect and analyse trial relations, national tripartite consultations, collective labour market information bargaining and workers’ participation 3. Define policies and programmes to improve working condi- 2. Strengthen the skills and capacities of workers’ and em- tions of women ployers’ to facilitate implementation of labour laws and 4. Strengthen capacity of ILO’s constituents and NGOs to de- industrial relations practices sign and implement employment creation and women’s 3. Strengthen tripartism and labour management coopera- rights programmes tion and consultation at the enterprise level 5. Provide vocational skills training through vocational training 4. Strengthen capacities of the labour administration to have centres an effective role in labour inspection, enforcement of laws, 6. Provide training to government officials, NGOs and targeted conciliation and dispute settlement, including labour court communities on implementation of labour-based rural infra- administration structure development 5. Assist the Tripartite Labour Advisory Committee to re- 7. Assist the government to develop strategies for rural infra- view the labour legislation and promote tripartism structure development with concern for environment pro- 6. Strengthen capacity of employers’ and workers’ to con- tection issues tribute effectively in formulation of national labour policy, 8. Assist the national employers’ organization to play a major both at national and district level role in promotion of employment in sustainable enterprise 7. Assist tripartite constituents to develop and adopt appro- through promotion of IYB, SIYB and WISE priate wage policies, including minimum wage fixing 9. Promote productive employment opportunities for women 8. Improve the capacity to design and implement produc- in cottage, small and medium-sized industries tivity improvement programmes and strategies 10. Continue exchange programmes focusing on new and ef- fective approaches to entrepreneurship creation and devel- opment 11. Continue development of innovative and relevant credit mechanisms for rural-based income-generating groups

Objective 3: Objective 4: Elimination and regulation of child labour Improvement of working conditions and OSH at workplaces 1. Raise awareness of child labour related problems with ILO’s 1. Organize awareness raising campaign in OSH and train- constituents and strengthen the capacity of ILO’s constitu- ing programmes for ILO’s constituents ents and NGOs to deal with child labour issues 2. Develop training programmes based on WISE with link- 2. Formulate a National Plan of Action for a gradual elimina- ages between high productivity and improved working tion of child conditions 3. Formulate action programme proposals to support the proc- 3. Review and update OSH legislation based on ILO stand- ess of elimination of child labour in most hazardous indus- ards, and set up policies and strategies for its implemen- tries and workplaces tation 4. Formulate appropriate policies and programmes to be im- 4. Strengthen factory inspection capacity of DOL and as- plemented by the government and NGOs sist in establishing a national OSH centre 5. Provide technical assistance in the fields of rehabilitation, 5. Improve information collection system on occupational non-formal education, vocational training, income genera- accidents and dissemination of OSH information and pre- tion and law enforcement that would support the process of ventive measures elimination of child labour in Nepal 6. Incorporate bonded child labour and the trafficking of chil- dren in the programme

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The four global strategic objectives of the work in which rights are protected and ILO and their related InFocus programmes are that generates an adequate income with ad- as follows. equate social protection. It also means suffi- cient work in the sense that all should have A. Promote and realize fundamental full access to income-earning opportunities. principles and rights at work It marks the high road to economic and social • Promotion of the Declaration on Funda- development; a road in which employment, mental Principles and Rights at Work income and social protection can be achieved • Progressive elimination of child labour without compromising workers’ rights and and promotion of development social standards.

B. Create greater opportunities for Since its inception, the ILO has promoted women and men to secure decent social dialogue. The tripartite social dialogue employment and income has gained new and renewed acceptance • Reconstruction and employment-intensive among social partners. One of the key rewards investment of social dialogue is the building of mutually • Investment in knowledge, skills and em- satisfactory and rewarding relationship be- ployability tween the partners that lead to decent work- • Improvement of employment opportuni- ing environment. ties through small enterprise development

C. Enhance the coverage and 4.3 ILO Office Upgraded effectiveness of social protection for all In view of the important and significant • Promotion of safe work: security and pro- work of the ILO in Nepal, the Kathmandu ductivity through safety and health at work Office was upgraded in 2000 to an Area Of- • Support for economic and social security fice with a Director replacing the Senior ILO in the twenty-first century Advisor. There are currently 33 staff members including three international Chief Technical D. Strengthen tripartism and social Advisors. Six National Project Coordinators dialogue are responsible for coordinating the activities • Strengthening of social dialogue of the various projects. There are currently three Associate Experts assigned to the office. Appraisals of development needs and gen- der dimensions as well as making the enter- The office, programme and staffing are prise a focus of ILO attention constitute the expected to increase considerably in early cross-cutting issues when defining specific 2002. A project office has already been set activities in the four strategic objectives. These up in in the Mid-Western Devel- objectives together define the way in which opment Region to support ILO activities for the ILO can promote the primary goal of ‘De- the rehabilitation of ex-kamaiyas (ex-bonded cent Work’. Decent work means productive labourers).

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4.4 Specific ILO Activities

A. Employment Promotion 1998–99. The report analysed employment, poverty and labour market conditions and de- a. Labour Force Survey fined a set of policies and programmes for rapid In 1996, an ILO review of labour statis- employment promotion and poverty allevia- tics recommended that a Labour Force Sur- tion. The results of this survey were released in vey be conducted. Planning for this survey January 2000. The NLFS has provided basic started in 1997 and was supported by the UN and vital information on national policy devel- Administrative Committee on Coordination opment, including the drafting of the forth- (UN ACC) Task Force in Employment and coming Tenth Five-Year Plan. Recently, HMG Sustainable Livelihoods as a follow-up of the has requested further assistance from the ILO Copenhagen Social Summit. The report pro- for identifying development priorities. vided an analysis of current employment and poverty conditions, the recent trends, the ef- The ILO will be providing technical as- fects of past policies and the outlook sistance for the creation of an LMIS and for for the future. A national tripartite improving the functioning of employment workshop was organized to dis- services in Nepal. An ILO mission assessed cuss the report. The findings and the above and the possibility of providing tech- recommendations of the report nical assistance for the provision of labour had served as inputs into Ne- market services to youths that enables them pal’s Ninth Development Plan. to take up self-employment under the Youth Self-Employment Programme. Subsequently, the ILO assisted the Central Bureau b. National Labour Conference of Statistics in conducting In 1997, the ILO provided assistance the first National Labour to the MOLTM to organize the first National Force Survey (NLFS) in Nepal in Labour Conference in cooperation with 26 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

workers’ and employers’ organizations. The 21 points of consensus, identified during the conference in the form of a declaration, formed the basis for drafting the first National Labour Policy. The policy has subsequently been ap- proved and the ILO is working closely with the MOLTM in ranking the priorities and de- veloping an implementation mechanism. c. National Training Policy In 1999, the ILO provided assistance to the NPC and the EPC in drafting a National e. Rural Infrastructure Development Training Policy with a view to exploring new Project directions for the national training system and The Rural Infrastructure Development new ways of using training as an instrument Project (RIDP) started in 1996 with an for meeting the country’s aspirations. The employment-intensive and participatory document presents a coherent set of broad approach towards environment-friendly policy measures and their objectives as well rural road development across three hill as a strategy for their implementation. districts, namely, Baglung, Tanahun and Kavre. RIDP was financed by the ADB, HMG d. Vocational Training and the beneficiaries. ILO efforts in supporting vocational train- ing continued during this period. Specific pro- It was executed by the Ministry of Local grammes supported by the ILO are discussed Development and implemented by District below. In 2001, an evaluation was conducted Implementation Units established under the on the cost-effectiveness of the vocational respective District Development Committees education and training system in Nepal. An- (DDCs). The project promoted agricultural other study on addressing gender inequalities production and marketing by strengthening the in vocational skills training is ongoing. rural road network and providing access to market centres and other basic support serv- ices. About 250 km of motorable, earth road was targeted for construction along six road alignments in the project area.

During the second phase of the project, assistance was provided for establishing a new technical department within the Ministry of Local Development called the Department of Local Infrastructure Development and Agri- cultural Roads (DoLIDAR). This is a regula- tory institution that governs overall strategy on rural infrastructure development in the country. The project also assisted DoLIDAR 27 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

in developing various resources such as the f. Expansion of Employment preparation of manuals, guidelines, specifica- Opportunities for Women tions, work norms, etc. The Expansion of Employment Opportu- nities for Women (EEOW) project is aimed at The main task of this project was to assist contributing to national efforts in poverty al- the Ministry of Local Development and local leviation, enhancement of the socio-economic governance institutions in undertaking local status of women, and promotion of gender infrastructure developmental activities. The equality and social justice. The project endeav- ILO assisted the Ministry of Local Develop- ours to expand employment opportunities for ment in formulating the National Strategy for women and seeks to implement the pro- Rural Infrastructure Development. grammes of action developed in 1995 in two world conferences, namely, the Beijing World A memorandum of understanding has Conference for Women and the Copenhagen been signed with the Ministry of Local De- World Summit for Social Development. velopment to support the decentralization process, in general, and capacity building of The social mobilization process of the DDCs, in particular, with respect to rural in- project has reached nearly 1,800 women, which frastructure development and improving ru- represents 27 per cent of the households in the ral accessibility, labour-based technology, and project area. With the project now extended to small contracting and maintenance. ILO- 15 village development committees, the num- ASIST and DoLIDAR will work in two dis- bers will increase during the coming year. tricts in Nepal and develop country-specific procedures afterwards. It is hoped that the cost- One of the most appreciated components effective, labour-based methods will be in- of the project is the preparation of social creasingly used for planning and implement- awareness promotional materials. An effective ing national transport and infrastructure de- cascading process of dissemination of ideas velopment and maintenance policies. and issues has been developed as part of the process of creating social awareness. Over 50 women have received paralegal training and are now working in the field.

The project works in partnership with a number of organizations selected on the basis of the comparative advantage of each organi- zation to deliver services to the intended ben- eficiaries. The project also focuses on promot- ing employment opportunities in areas beyond the agriculture sector. These partners include government institutions, elected institutions at district and village levels, workers’ organiza- tions, employers’ organizations, NGOs and, of course, self-help groups of women at the grassroots. 28 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

g. Economic Empowerment of (TMED) in Nepal. The model chosen is the Women ILO’s Start and Improve Your Business (SIYB) Continuing its previous focus on the pro- programme that is being adapted to suit Nepa- motion of economic opportunities for women, lese local conditions and needs. The over- the ILO provided support for the Economic whelming majority of the ultimate beneficiar- Empowerment of Women (EEW) through the ies are expected to be women entrepreneurs Women’s Entrepreneurship Development and the SIYB package is being adapted to suit (WED) and the Improve Your Business (IYB) their needs and requirements. The programme projects. Funding was provided to enable the will also assist in providing training and sup- FNCCI to carry out advocacy workshops, and port to trainers and micro-entrepreneurs in training was provided for representatives of entrepreneurship development. The upstream national network organizations (Women En- micro- and small enterprises policy review is trepreneurs’ Association, Cottage and Small expected to provide an opportunity to examine Industry Development Board and Industrial the extent to which the policy and regulatory Enterprise Development Institute) and train- environment in the country has been condu- ers from government, employers’ and work- cive to the creation of quality jobs in micro- ers’ organizations. and small enterprises. It will provide recom- mendations to HMG for developing a strategy h. Gender Audit for poverty alleviation through employment As part of the implementation of the Ac- creation under the Tenth Five-Year Plan. tion Plan on Gender Equality and Mainstreaming, the first gender audit in the j. Youth Self-Employment ILO Office was conducted in October 2001. Programme The main objective of the gender audit was to The objective of the Youth Self-Employ- promote organizational learning at the indi- ment Programme (YSEP) is to identify oppor- vidual, work unit and office levels on how to tunities for reducing youth unemployment and implement gender mainstreaming effectively under-employment through various alterna- in the policies, programmes and structure of tives. This will involve: (i) analysis of the cur- the office. After the desk review of the activi- rent projects promoting self-employment and ties of the office, sessions for ILO staff were conducted on participative self-evaluation of achievements and challenges in gender mainstreaming. Other sessions involved the constituents and other implementing agencies of ILO projects in order to obtain their per- ception on how the office and they themselves were performing. i. Start and Improve Your Business The ILO is collaborating with the UNDP’s Micro-Enterprise Development Programme (MEDEP) in devising Tools and Methodolo- gies for Entrepreneurship Development 29 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

income generation; (ii) conducting a work- gional programme to combine elements of two shop-project formulation exercise based on the programmes—IYB and Work Improvement in ILO-developed, community-based training Small Enterprises (WISE)—for the purpose approach; and, (iii) in cooperation with HMG, of improving productivity, income and work- producing a YSEP programme document. The ing conditions in micro- and small enterprises. ILO cooperates closely with the EPC in this programme, which is technically backstopped m. Cooperative Development and by SAAT. Training The ILO continued to be involved in this k. Exchange of Excellence sector and, in 1995, a proposal was prepared Programme to develop and document strategies and an With the support of SAAT, a highly in- action plan for cooperative development in novative and flexible programme of exchange Nepal. Later, in 1997, the ILO provided as- between the Nepalese Industrial Enterprise sistance for consultation on cooperative policy Development Institute (IEDI) and the Entre- and planning. preneurship Development Institute of India (EDII) was implemented. The skills and com- B. Fundamental Rights petencies of the participating institutions were The ILO is the lead agency in Nepal with improved through an exchange of knowledge, regard to the prevention and elimination of approaches and techniques in support of mi- child labour, bonded labour and trafficking. cro- and small enterprise development. The ILO’s work in the field of child labour elimination is greatly respected in the coun- l. Work Improvement and try, and the work of IPEC has changed the Development of Enterprises perception about child labour in Nepal and has In 1997 and 1998, the ILO in Kathmandu, been able to place this issue prominently on in collaboration with SAAT and SEAPAT, the national agenda. implemented the Work Improvement and De- velopment of Enterprises (WIDE) regional Nepal was forthcoming in requesting the project with IEDI. The ILO carried out the re- initiation of the IPEC programme in Nepal in 1995. The MOLTM is taking the lead role in programming and implementing relevant ac- tivities. In May 1995, the MOLTM constituted a National Steering Committee for IPEC.

Nepal ratified the ILO’s Minimum Age Convention, 1973 (No. 138) on 30 May 1997. Based on this Convention, Nepal promulgated the Child Labour Prohibition and Regulation Act in June 2000. In addition, HMG has rati- fied the ILO Conventions on Forced Labour, 1930 (No. 29) and the Elimination of the Worst Forms of Child Labour, 1999 (No. 182). Ne- pal ratified the UN Convention on the Rights 30 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

of Child (1989) in September 1990 and, fur- thermore, Nepal has endorsed the Declaration of the UN World Summit for Children held in September 1990.

The success of IPEC resulted with a pledge from HMG at a number of international fora for international support to eliminate the worst forms of child labour, and Nepal will now be one of three countries where the ILO’s Time-Bound Programme (TBP) on the Elimi- nation of the Worst Forms of Child Labour will be initiated. The National Stakeholder Consultation held in May 2001 made recom- mendations regarding the sectors, themes and geographical areas for the implementation of Since its inception in 1995, 73 action pro- the Time-Bound Programme. grammes and 52 mini-programmes have been implemented through IPEC in Nepal. The pro- In addition, IPEC is providing support to gramme has reached 13,500 children and 6,160 the MOLTM in formulating a master plan of families. Including the ILO’s constituents, action for the elimination of child labour that IPEC has worked in partnership with 58 will aim at eliminating the worst forms child NGOs, educational institutions, research or- labour in five years and all forms of child la- ganizations, media organizations, and district bour in ten years based on ILO Conventions and municipal bodies. The IPEC programme No. 29, 105, 138 and 182. is working closely with the FNCCI-EC in an attempt to declare the Pokhara sub-metropo- a. Prevention and Elimination of lis a child-labour-free area. With GEFONT, Child Labour the programme focuses on elimination of child A national workshop on policy and pro- bonded labourers in western Nepal. NTUC is gramming on child labour was jointly held by working towards elimination of child labour the MOLTM and the ILO in August 1995, with in the carpet industries, hotels and restaurants. a view to analysing the magnitude and the DECONT is implementing a pilot project for nature of the problem of child labour in the working children in the transport sector. country. The workshop recommended four principal areas of action: These programmes have been imple- a. formulation of appropriate policies and mented in 29 districts. Activities in awareness programmes by HMG and NGOs, raising, education, capacity building, income b. review of legislation and enforcement generation and information base establishment mechanisms have been supported. Although bonded labour c. programmes for direct intervention with (kamaiya), carpet industries and human traf- child workers, and ficking have been the major sectors, activities d. awareness raising and community mobi- have also focused on child domestic labour- lization. ers, child porters, brick-kiln and stone-quarry 31 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

child workers, tea estate children, children of helped a number of NGOs and trade unions, the sweeper community as well as children particularly GEFONT, to implement action working in quartz and coal mines. programmes in eight districts in western Ne- pal to raise awareness among the kamaiyas Most importantly, this project has contrib- about their rights, improve their living condi- uted substantially to policy formulation re- tions, and ensure that their children are freed garding the issue of child labour and, as a re- from bonded labour and receive an education. sult, the ILO has come to be seen as the lead agency in Nepal in this sector. ILO/IPEC, to- On 17 July 2000, HMG made a landmark gether with UNICEF, initiated in 1998 a UN decision to outlaw the kamaiya system and Theme Group on Child Labour with the scope rehabilitate the kamaiyas who for generations to ensure donor collaboration, take joint ac- have been working as bonded labourers try- tion and follow the jointly framed strategy for ing to pay off debts drawn by their ancestors. combating child labour. The ILO has provided assistance in drafting a bill on bonded labour. HMG also requested Since 1995, IPEC experience in dealing the ILO to provide support in drafting of leg- with the worst forms of child labour has gradu- islation on minimum wages for the agricul- ally increased. In order to create the climate ture sector. This has led to the establishment of change necessary for a real impact on the of a minimum wage in this sector. problems and change the circumstances that lead to the worst forms of child labour, ILO/ Children of kamaiyas have been provided IPEC started designing a time-bound pro- with non-formal education and most of these gramme of unprecedented scope and magni- children have subsequently been enrolled in tude during this period. government schools. Community meetings and street plays have been organized to raise b. Elimination of Bonded Labour awareness. Kamaiya Support Committees Since its inception in Nepal from 1995, have been established at the district level ILO/IPEC has placed a high priority on the through community meetings. The kamaiyas elimination of bonded labour, in general, and held a conference and established the Kamaiya child bonded labour, in particular. IPEC has Liberation Forum, which is affiliated to GEFONT but has not merged into the Federa- tion of Agricultural Workers of GEFONT. As the movement gathers strength, the kamaiyas are beginning to escape from a state of pas- sive resignation.

IPEC has supported the MOLRM for the implementation of an action programme to set up an enforcement system, detect and reha- bilitate bonded families, raise awareness about human rights, provide basic education to kamaiya children and form micro-credit soci- eties among families. An objective of this pro- 32 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

gramme is also to increase the capabilities of ence of the families of labourers on employ- government and NGOs to develop policies and ers for credit purposes and reduces the role of implement concrete measures at local, district the employer as a moneylender (and therefore and national levels in order to protect and re- as a bonder) in the local market. habilitate bonded labourers. The trade unions are also being assisted to implement direct c. Elimination of Child (Bonded) support activities and, in their capacity build- Labour ing, manage the programme more effectively. The Italian Social Partners Initiative (ISPI) has provided assistance for the implementa- The new IPEC/Declaration on Fundamen- tion of a programme related to the elimina- tal Principles and Rights at Work technical tion of child bonded labour in 11 districts. By cooperation project focuses on long-term de- its end, the project will have provided non- velopment for the rehabilitation of freed formal education to 1,600 working children kamaiyas. The project intends to promote the in the age group 9–14 years. In addition, 1,375 declaration in the agricultural sector through children are to be mainstreamed into the for- the implementation of labour standards and mal education system (including children in the promotion of fundamental principles and the age group 6–9 years, who are to be rights at work. There is also a provision to enrolled directly into the formal education promote cooperatives among freed kamaiyas. system). In addition, 275 children in the age The project aims at mainstreaming 10,000 group 13–15 years are to be supported for vo- kamaiya children into formal schools and re- cational education. Furthermore, 300 families habilitating 8,000 families. of working children are to be provided economic alternatives through the formation Through the Social Finance Unit (SFU) of cooperatives. project, support is being provided in terms of micro-finance services including savings, Most importantly these projects have con- credit, insurance and additional services (edu- tributed to creating a policy framework regard- cation, health, capacity building for micro- ing bonded labour in the country. A task force enterprises) to freed kamaiyas and to families has been formed and a national plan of action at risk of falling into debt bondage. The un- has been developed. A bill on the prohibition derlying project concept being that increased of bonded labour has been drafted. The trade access to microfinance will reduce the depend- unions have formulated common policies and

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strategies on child labour through the cial exploitation as well as provision of non- Dhulikhel Declaration. The Trade Union Act formal and formal education to 450 vulner- (1992) has been amended to provide rights to able girls. Women’s cooperatives will be organize workers in the informal sector includ- formed for improving the socio-economic con- ing agriculture. dition of mothers/guardians of these girls, and provide basic business and marketing train- d. Combating Trafficking ing. The target audience for the awareness Efforts are being made to strengthen the programme is 4,500 school children and an role of the MOWCSW in combating child traf- equal number of adults. ficking. One action programme aims to in- crease the knowledge base about child traf- Another action programme applies a new ficking; build the capacities of officials of the concept to the rehabilitation and reintegration MOWCSW, relevant government organiza- of 180 children (especially girls) who have tions and NGOs; and strengthen the role of been intercepted while being trafficked. Em- the MOWCSW in coordination, networking phasis is on psychosocial trauma treatment, and monitoring of activities against child traf- stabilizing of person-hood, access to legal and ficking, and the role of the district offices of medical services, focus on the potential of the the MOWCSW and District Task Forces in individual child/adolescent with regard to the combating child trafficking in transit districts. selection of skills training and possibilities for A national consultation to review the National sustainable reintegration. Rehabilitation and Plan of Action and prioritize the work plans reintegration will be monitored through the will be conducted, and relevant legislation is development of individual rehabilitation plans. being analysed as a part of sub-regional re- search on legislation against trafficking. In 1998 and 1999, the ILO assisted the MOWSCW in drafting a National Plan of One action programme focusing on pre- Action to combat trafficking in women and vention will identify 45 trafficking-prone vil- children for sexual exploitation. IPEC is also lage development committees in three districts. supporting Nepal to prepare a national report Main interventions are awareness programmes to be presented at the Second World Congress against trafficking of girls and their commer- against Sexual Exploitation in Yokohama in December 2001.

The objective of another action project, which forms part of a wider UN initiative against trafficking, is to conduct an overview of research on women’s rights, violence against women, migration and trafficking, sexually transmitted illnesses, HIV/AIDS and psychosocial problems among trafficked women. A paralegal training module along with a mechanism for self-reporting and moni- toring of trafficking and violent incidents will also be developed. 34 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

within the framework of ILO Convention No. 155. It is possible that this convention will be ratified by Nepal in the near future.

In recent years, an increasing level of in- terest in social protection issues has emerged in the country. ILO Convention No. 102 pro- vides a framework for alleviating the loss of income for individuals who suffer from a range of ‘contingencies’. One signal has been the evolution of a draft Social Security Bill. The ILO has provided some guidance on this in anticipation of its discussion in Parliament.

The Maternity Protection Convention (No. 183) came into effect in June 2000. A programme has been designed to explore ways to promote maternity protection for informal sector workers through the introduction of micro-insurance schemes. Currently, there is At the initiative of ILO/IPEC and USAID, a sharp increase of attention amongst trade an Inter-Agency Coordination Group (IACG) unions, NGOs (notably micro-finance institu- on anti-trafficking of women and children has tions) and healthcare providers to the poten- been formalized. The main objectives of the tial of social security techniques for address- group is to promote better coordination and ing the acute problems of healthcare financ- cooperation, sharing of information and les- ing. The ILO-STEP (Strategies and Tools sons learnt, and to avoid duplication of work Against Social Exclusion and Poverty) has among donors. A common database of cur- been working through a participatory approach rent activities that combat human trafficking to support micro-insurance schemes that aim is being maintained by ILO. HMG is presently to improve access to healthcare and other so- considering a bill on the Prevention of Traf- cial protection services for those who have ficking in Women and Children. been excluded in the past.

C. Social Protection Recently, the ILO supported a study to ILO’s constituents are keen that the ILO identify perception, extent, effect and mecha- continues the assistance provided in this sec- nisms that address issues of sexual harassment tor. OSH has been included in the National at work in Nepal. A workshop was conducted Labour Policy Statement 1999 putting the is- to disseminate the findings of the study. An sue on the national agenda. The ILO is provid- ad hoc Task Force on Sexual Harassment was ing assistance in the formulation of a national established during the meeting and consists Occupational Safety and Health (OSH) policy. of representatives from the ILO Area Office, Through a tripartite discussion, an initiative ILO SAAT, the tripartite constituents and civil has been taken in the drafting of legislation society. 35 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

b. Social Security Policy In order to develop effective policies for the future concerning social security, SAAT and the Financial Actuarial and Statistics Serv- ices Branch of the Social Protection Sector (SOC-FAS) of ILO is conducting a social pro- tection expenditure and performance review in Nepal. The study will be the basis for a close look at the main problems and policy debates regarding poverty alleviation, extending cov- erage and expenditure, and other aspects of social policy. a. Occupational Safety and Health Policy c. Extension of Social Protection The Labour Act (1992) covers industrial In the spirit of the ILO’s concrete contri- working conditions and environmental butions to the World Summit for Social De- issues. At the request of HMG, the ILO is velopment (1995) and its follow up through assisting the MOLTM in strengthening the “Geneva 2000”, STEP is promoting social Occupational Safety and Health Centre within protection to men and women workers in the the ministry. Training has been provided to informal economy. In recent years, ILO-STEP staff and trainers. Through the involvement has provided technical assistance to various of employers’ and workers’ organizations in organizations in Nepal to enhance their social training programmes, awareness has been protection in the informal economy. Through raised among their members special pro- joint workshops, seminars and case-studies of grammes have been organised for women existing micro-insurance schemes for ex- workers. HMG is keen that the ILO continues cluded workers, organised with different ac- assistance in this sector. Draft OSH legisla- tors at national and community levels, STEP tion has been formulated taking into consid- envisages contributing to the goal of promot- eration the ILO Convention No. 155. ing rights of the poor to social protection, mainly in health. The programme components include capacity building, advocacy and awareness raising, technical advisory services to organizations interested in implementing self-managed micro-insurance schemes in health and/or life.

In June 2001 STEP, in cooperation with UNFPA, UNICEF and WHO, started a global programme entitled “Improving the Quality of Sexual and Reproductive Health Care”. The main contribution from STEP is to strengthen the capacity of women’s organizations and other civil society partners on their rights for 36 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

quality reproductive health care. STEP pro- through management training and other capac- vides assistance to these organizations in de- ity-building activities related to the core ILO veloping risk-pooling mechanisms, which en- areas, thereby enabling the social partners to able them to express their own needs and to assist in the implementation of technical co- more effectively negotiate with providers for operation projects as well as raising aware- quality care. ness among their members. The second area is through direct involvement in technical co- In Nepal STEP is also involved in an ILO operation projects. global pilot programme to provide maternity benefits to poor informal sector women work- As a follow up of the earlier APPOT ers. The programme explores ways to include project, the strategy of the South Asia and maternity health care in micro-insurance Vietnam Project on Tripartism and Social Dia- schemes, managed by community based struc- logue in Action (SAVPOT) is to develop in- tures, trade unions and other organizations in novative work practices at the enterprise level the informal sector. through pilot projects; develop and support social dialogue at the national level by identi- The ILO-STEP programme places special fying where policy interventions could assist emphasis to reach young persons and women enterprise growth and workplace improve- working in the informal sector, in supporting ments; disseminate best practices to ensure the development of strategies to empower them training and knowledge building through to express their rights to social protection serv- ILO’s constituents; and, increase participation ices, in both rural and urban areas. While pro- by women. viding support to many activities at the grass- roots level, the programme works in partner- During the first phase of the project, bi- ship with the government, social partners, com- partite social dialogue workshops involving munity-based organizations, NGOs, research four enterprises from different sectors were centres and other UN agencies. Importance is organized. Managers and workers of the en- placed on strengthening the links between terprises developed action plans and embarked community-based initiatives and the national on a participative social dialogue proc- and more formal social protection policies. ess at the enterprise level. All the enterprises recorded positive results D. Social Dialogue from the improved sharing of infor- Considering that ILO’s constituents have mation, open dialogue and trust. been able to cooperate actively on labour is- Some achievements recorded by sues only during the past ten years, the the management and workers in- progress made has been phenomenal and is clude: decreased absenteeism, gaining momentum. The ILO, and its tripar- new training programmes, tite concept, is highly regarded by its social women recruited in non-tradi- partners in Nepal. tional jobs, increased output and sales and a better work- The ILO provides support to its social ing environment. partners at two levels. Firstly, there is direct support focusing on strengthening capacity During the second strategic phase, the four 37 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

enterprises involved in the pilot phase brought It is important to acknowledge here that numerous other enterprises into the project, the solidarity expressed by all the three trade promoting social dialogue through various unions on gender issues, despite their indi- workshops. Now over 30 comprises are in- vidual approaches and differences, is indeed volved. a laudable achievement. Synergy has been consciously developed, encouraged and sus- During the next phase, national level and tained. The framework within which they have district level meetings within the framework worked is the genuine, constructive social dia- of social dialogue will be organized on key logue model of SAVPOT. This Nepal initia- issues in the world of work. tive is being looked upon as a model to repli- cate in other countries. Trade unions, under the SAVPOT project, are undertaking a joint action on gender is- The ILO’s Bureau for Workers’ Activities sues. They have organized bipartite meetings provided assistance to the trade unions through with the employers and government in a the Workers’ Education Assistance in Man- true spirit of social dialogue and hope to en- agement Training project so that officials at courage national consensus and action to pro- various levels would gain knowledge of stra- mote and ensure gender equality in the world tegic planning and management principles, and of work. be able to apply them. Indeed, in the imple- mentation of all its technical cooperation A joint Trade Union Committee for Gen- projects, the ILO ensures that its constituents der Equality Promotion (TUC-GEP) has been are involved actively on a tripartite basis. Their formed to promote gender equality in the involvement, particularly in the child labour workplace. TUC-GEP is the coordinating body sector and in OSH, has been extremely im- of the women’s departments of three trade portant and has contributed to the success of unions. In order to mainstream gender issues these activities. in the workplace and employment, this net- work is seeking to reach common views among ILO’s continued assistance in improving trade unions along with government and the the industrial relations climate in Nepal re- employers’ organization. sulted in the establishment of a national tri- partite consultative body. This consultative The TUC-GEP experience stands as a suc- body facilitated the ratification of Convention cessful demonstration of how social dialogue No.144 on tripartite consultation by the Gov- as a means of sharing information and views ernment. A joint statement by the participants among trade unions, employers’ organizations, at a tripartite seminar organized in 1997 on labour administrators and other governmental Labour Management Cooperation and Consul- institutions as well as appropriate actors in the tation at Shopfloor/Enterprise Level provided civil society can be fully exploited to achieve evidence of improvement in the industrial a positive change. TUC-GEP has brought a relations in Nepal. vital dimension into the process of social dia- logue: the promotion of gender equality, em- The ILO’s constituents are reviewing the phasizing the importance of social dialogue as development of a joint policy on gender is- a process for reaching positive change. sues. By signing the Dhulikhel Declaration on 38 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

child labour, representatives of the govern- ment, employers’ organizations and workers’ organizations have fully committed them- selves to joining hands in the battle against the worst forms of child labour.

The ILO provided technical assistance in establishing the First Central Labour Advisory Council and the First Labour Court. The la- bour court judge and a senior labour ministry official were provided orientation in labour court administration. Tenth Five-Year Plan. The ILO has been pro- E. United Nations Development viding technical support in the process and is Assistance Framework (UNDAF) ensuring that employers’ and workers’ organi- Nepal zations’ views are included in the process of At the outset of the preparation for the design. At the request of HMG, the ILO is United Nations Development Assistance supporting several sector studies covering ag- Framework (UNDAF) Nepal, the ILO was riculture–rural development, private sector selected as the lead agency to head the participation, feminization of poverty and UNDAF Task Force on the Right to Work women’s employment, macro-economic con- (later amended to the Right to Decent Work). text of poverty reduction, social protection, The ILO invited its constituents and social mainstreaming employment in the planning partners to participate in the Right to Decent process, etc. with a view to ensuring that the Work Task Force meetings. centrality of employment to poverty allevia- tion is strengthened in the Poverty Reduction A series of UNDAF consultations were Strategy and the concept of decent work and held, key issues were identified and discussed, social dialogue are firmly upheld. The over- and common ground was sought in the prepa- riding goal of these studies is to provide in- ration of the section of the UNDAF entitled puts to the NPC and the line ministries to for- the Right to Decent Work. The section cen- mulate viable strategies for expanding employ- tres on two major areas relating to ILO’s man- ment and decent working conditions for date. One reflects ILO’s core priorities such women and men in Nepal. as fundamental principles and rights at work, social dialogue, employment promotion, so- G. Other Activities cial security, and occupational health and SAAT implemented a policy-related re- safety. The other reflects issues relating to the gional project during 1996-97, in close col- worst forms of employment-related exploita- laboration with East Asia Multidisciplinary tion such as child labour, forced and bonded Advisory Team (EASMAT) and South East labour, and hazardous work. Asia Multidisciplinary Advisory Team (SEAPAT) on the role of macroeconomic poli- F. Poverty Reduction Strategy Paper cies and micro interventions to alleviate pov- The NPC has prepared the interim version erty. Studies analyzing the effects of macroeco- of the PRSP. The PRSP will form HMG’s nomic policies on poverty were conducted. 39 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

During this period Nepal ratified the fol- lowing ILO conventions.

1. Right to Organize and Collective Bar- gaining Convention, 1948 (No. 98), rati- fied on 11 November 1996 The aim of this standard is to protect work- ers, who are using their right to organize freely and to bargain collectively with their employer on issues concerning their employment.

2. Minimum Age Convention, 1973 (No. 138), ratified on 30 May 1997 The aim of this standard is to ensure A Regional Symposium on International the effective abolition of child labour Labour Standards was organized in 1997 in and to raise progressively the minimum New Delhi to prepare constituents for their age for admission to employment or participation in the 1997 International Labour work to a level consistent with the fullest Conference. A high-level sub-regional work- physical and mental development of shop on privatization in South Asia was or- young people. ganized in Kathmandu in 1999. The objectives of this workshop were to discuss the privati- 3. Elimination of Worst Forms of Child zation activities in South Asia and ways to Labour Convention, 1999 (No. 182 mitigate their social effects. The aim of this standard is to ensure im- mediate and effective measures to secure, A synthesis regional study on Eliminat- as a matter of urgency, the prohibition and ing Gender-Based Discrimination in Employ- elimination of the worst forms of labour ment in South Asia was published by SAAT carried out by all people under the age of based on the country studies. 18 years.

4. Forced Labour Convention, 1930 4.5 ILO Conventions (No. 29) The aim of this standard is to ensure the The ILO was active in promoting the rati- suppression of forced labour or compul- fication of a number of ILO conventions by sory labour in all its forms. Certain ex- HMG during this period, namely Conventions ceptions are permitted, such as military No. 29, 98, 138 and 182. A number of other service, convict labour properly super- conventions are under consideration for ratifi- vised and emergencies such as war, fire cation particularly Conventions No. 87 and 105. or earthquake.

40 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Looking Forward 555

5.1 Introduction

The first five-year programme (1996– sultative meeting will be held to further 2001) of the ILO in Nepal was developed and concretize the programme. In this respect, implemented in response to changes both in- some thoughts on the future priorities of the ternationally and at the national level. As noted ILO in relation to each of the four strategic earlier, in recent years, the ILO has shifted objectives and InFocus programmes are given emphasis away from project implementation below and will be further reviewed by the towards upstream policy advice and institu- ILO’s constituents in Nepal. tion building. The adoption of the ILO Decla- ration on Fundamental Principles and Rights at Work, the programming of activities cen- 5.2 Strategic Objective 1: tred on four strategic objectives and the for- Fundamental Principles and mulation of international focus (InFocus) pro- Rights at Work grammes of high priority, relevance and vis- ibility, have provided new directions. A. InFocus Programme: Promoting the ILO Declaration Additionally, the APP, initiated in 1992, In June 1998, the International Labour brought the ILO closer to its tripartite constitu- Conference adopted the ILO Declaration on ents and carried technical advisory services Fundamental Principles and Rights at Work. closer to the ground. In Nepal, the strategic Nepal has so far ratified six key ILO Core objectives and priorities of the ILO are arrived Conventions (ILO Conventions Nos. 29, 98, at through tripartite consensus. The tripartite 100, 111, 138 and 182) embodied by this Dec- partnership arrangement of ILO is unique and laration. Other ILO Conventions presently will continue to form the basis for future pro- under consideration include the following. gramming, planning and implementation. • Freedom of Association and Protection With the end of the current Country Ob- of the Rights to Organize Convention, jectives, there has been a review of activities 1948 (No. 87) establishes the right of all over the last five years. In an attempt to look workers and employers to form and join forward, social partners have been actively organizations of their own choosing with- involved in a consultative process for strate- out prior authorization, and lays down a gic programming. Based on these consulta- series of guarantees for the free function- tions, planning for 2002–03 is currently be- ing of organizations without interference ing completed. In early 2002 a tripartite con- by public authorities. 41 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

• Abolition of Forced Labour Conven- ILO Convention No. 155. Tripartite work- tion, 1957 (No. 105) prohibits the use of shops will be conducted to sensitize ILO’s con- any form of forced or compulsory labour stituents concerning OSH and examine as means of political coercion or educa- the problems of implementation of core ILO tion, punishment for the expression of Conventions. political or ideological views and workforce mobilization, labour discipline, B. InFocus Programme: punishment for participation in strikes or Elimination of Child Labour discrimination. The needs and rights of children are an essential element in the pursuit of social jus- The ILO will continue to promote aware- tice and universal peace. Child labour is det- ness about these rights and principles and, rimental to human development, provision of through them, work towards the improvement decent and dignified work, and reduction of of working and living conditions in Nepal. The poverty. The IPEC programme seeks to pro- ILO programme activities will include assist- mote the rights and development of children ance to its constituents in integrating these and youths by providing adequate educational principles into their development strategies. alternatives for children, access to decent work ILO will conduct workshops and seminars to and sufficient income as well as economic al- increase awareness about the ILO Declaration ternatives for their families. Nepal is one of on Fundamental Principles and Rights at Work the three countries where the new flagship among its constituents and policy makers, as programme of the ILO, the Time-Bound Pro- well as the general public. The ILO will con- gramme, will be implemented first. The other tinue and greatly expand its activities on the countries where the TBP will be implemented rehabilitation of the freed kamaiya bonded are El Salvador and the United Republic of labourers in order to mainstream ex-kamaiyas Tanzania. into the national development process. The programme aims to prevent and elimi- During the coming biennium period, sup- nate seven selected worst forms of child la- port will be provided to prepare the ground- bour within a defined period of time. It is work for the ratification of ILO Conventions designed primarily to assist ILO member states Nos. 87 and 105. In this regard, the ILO will in implementing ILO Convention No. 182 on also provide assistance to the National Human the Worst Forms of Child Labour. The Time- Rights Commission to promote workers’ rights and child labour issues.

Studies are already underway to examine the impact of the non-implementation of la- bour standards in the areas of gender, child labour and OSH. Selected research will be carried out to assess existing national labour legislation on OSH and give recommendations on its enforcement and activities to promote the adoption of the OSH Act, in line with 42 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Bound Programme combines sectoral, the- matic and geographical approaches, and links action against child labour to national devel- opment policies. It is essentially a set of inte- grated policy and programme actions designed to take place simultaneously at all levels from the individual and family to the international level. In the course of seven years, the Time- Bound Programme will target 120,000 chil- dren and 35,000 families in Nepal.

In preparation for the Time-Bound Pro- gramme, a comprehensive set of preparatory activities were initiated. Five rapid assess- gramme must be identified; participants ments on child porters, child ragpickers, traf- pointed out some priority areas. ficking in children, child bonded labour and child domestic labour have been completed. Subsequently, a programme formulation Three policy analyses on education, legisla- mission had extensive discussions with all tion, and poverty and decentralization have possible stakeholders. The mission prepared been commissioned and a partner capacity and an overall strategic framework for the imple- training needs assessment has been carried out. mentation of IPEC for the next seven years. An overview of the major child labour related The Time-Bound Programme will be imple- projects in Nepal has been initiated, and an mented in close consultation with HMG and analysis of the lessons learnt from the IPEC will support of Master Plan of Action for the programme in Nepal during the past five years elimination of child labour and the Tenth Five- has been completed. Year Plan. The project document has been approved by the donor and imminent approval In May 2001, a National Stakeholder Con- from HMG is anticipated. sultation was organized with the overall stra- tegic objective of building national ownership In addition, the Italian social partners have of the Time-Bound Programme and enlisting provided assistance for the implementation of the political and technical support of national the programme related to the elimination of and international organizations in its devel- child bonded labour in 11 districts. The project opment. During the consultation, a consensus is envisaged to contribute to the removal of was reached on the priority target groups that ex-kamaiya children from employment and will be addressed. These are bonded child la- provision for their education. In the second bourers in agriculture, children trafficked for phase of the ISPI programme, there is a com- labour and sexual exploitation, child porters, ponent to strengthen the capacity of agricul- child ragpickers, child domestic workers, chil- tural workers’ organizations to initiate social dren working in small-scale mining, and chil- dialogue with employers and negotiate on the dren working in the carpet sector. An agree- implementation of labour standards. ment was also reached on how the geographi- cal areas for the implementation of the pro- The South Asian Sub-Regional Pro- 43 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

gramme to Combat Trafficking in Children in the PRSP and the Tenth Five-Year Plan. will continue to be implemented. A study will Sectoral studies in a number of employment- be completed on the rights related to migrant related areas are being conducted. A joint workers particularly women, including skills NPC/ILO meeting was held in November 2001 training, protection and counselling. Aware- to discuss the centrality of employment to ness raising workshops and media campaigns poverty alleviation and targeted approaches. will be conducted regarding child trafficking. A consolidated report will be finalized in Janu- ary 2002 and will be followed by regional tri- partite workshops. 5.3 Strategic Objective 2: Opportunities for Women and In the context of ILO activities, Men to Secure Decent mainstreaming of gender issues is already cov- Employment and Income ered but needs to be further systematically incorporated at all levels and this will require A. InFocus Programme: capacity building of all partners in ILO related Employment-Intensive Investment work. In addition, special targeting of youth B. InFocus Programme: Investing in through focused activities on training policy Knowledge, Skills and and access to training will be an essential pro- Employability gramme component in the future. Making the C. InFocus Programme: Boosting enterprise a focus of attention, particularly for Employment through Small women and youths, but also for all ILO ac- Enterprise Development tivities, in general, will be critical for the en- deavours of the ILO to promote decent work. The primary goal of the ILO today is to promote opportunities for women and men to obtain decent and productive work, in condi- tions of freedom, equity, security and human dignity. The ILO’s efforts in the area of job creation aim at the promotion of sustainable, decent jobs in all types of enterprises.

In Nepal, the ILO will work closely with its tripartite constituents, along with the Na- tional Planning Commission and the Employ- ment Promotion Commission, to support the creation of decent jobs that are integrated into the government’s policies on economic growth. In this respect, the ILO will ensure that employers’ and workers’ organizations’ views are clearly put forward in the develop- ment of the national PRSP. A technical mis- sion was fielded in September 2001 to discuss the incorporation of the Decent Work agenda 44 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

In cooperation with donors and interna- pilot activity and formulating a proposal for tional organizations, the ILO will continue to an ADB-financed institutional strengthening support employment creation through enter- component under their new Rural Infrastruc- prise promotion, human resources develop- ture Development Project. ment and employment-intensive programmes. During the coming biennium, a concept paper on women’s enterprise development for de- 5.4 Strategic Objective 3: cent work will be prepared. Consultations will Social Protection be held with the government and donors re- garding the formulation and implementation A. InFocus Programme: Safe Work - of the SIYB project focusing on growth-ori- Security and Productivity through ented, sector-specific enterprises. Safety and Health at Work B. InFocus Programme: Economic Furthermore, a support document for the and Social Security YSEP will be prepared, and a job quality sur- vey among micro- and small enterprises will Access to an adequate level of social be conducted. The ILO’s present efforts on protection is recognized as a basic right of EEOW be continued, while a policy review all individuals in the ILO Declaration on Fun- on small and medium-sized enterprises will damental Principles and Rights at Work and be started. Discussions will be also held with in a number of international labour standards. stakeholders regarding recommendations of The ILO promotes the extension of social pro- the ILO study on the vocational training sys- tection to all groups in society and the im- tem in Nepal. Subsequently, a concept paper provement in working conditions and safety will be prepared for discussion with donors at work. for funding. In Nepal, the ILO will continue to place In addition, a training programme will be emphasis on improving the institutionalization organized to design and implement micro-in- and effectiveness of OSH services. It will surance schemes and enhance management skills for vulnerable women, particularly mothers. A study will be conducted about home-based workers and a workshop will be organized on ILO Convention No. 177. A study will also be conducted to review how to effectively promote equal access and employ- ment opportunities for socially excluded and disadvantaged occupational groups.

ILO will assist HMG in establishing an effective LMIS in order to improve the man- agement of the labour force in the country. ILO-ASIST will provide assistance to DoLIDAR in preparing for the DFID-financed 45 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

also continue to strengthen OSH services pro- and the development of guidelines and other vided by employers’ and workers’ organiza- work are envisaged. tions to their members. Practical guides on OSH management systems will be developed. In addition, assistance will be provided to 5.5 Strategic Objective 4: strengthen the institutional capacity of the Social Dialogue national Occupational Safety and Health Cen- tre and improve inspection services as well as In Focus Programme: integrating OSH issues concerning environ- Strengthening Social Partners ment, workers’ health promotion and HIV/ AIDS prevention at the workplace. The ILO has established this objective so as to concentrate and reinforce support for Technical support will be provided to sup- strengthening tripartism and the role and ac- port innovative social security measures. tivities of the ILO’s tripartite constituents and Through joint workshops, seminars and case especially their capacity to engage in and pro- studies of existing micro-insurance schemes, mote the use of social dialogue. A major ac- the ILO envisages contributing to the goal of tivity during 2002 will be to review the De- promoting rights of the poor to social protec- cent Work Agenda for Nepal on a tripartite tion. Ways will be explored to link commu- basis. nity-based initiatives with national and more formal social protection policies. The ILO will strengthen its past efforts to assist HMG to review labour legislation and During the coming biennium, a compre- labour policies periodically. A policy paper hensive study will be conducted on social pro- will be prepared on how to enhance the role tection in the formal and informal sectors. A of the MOLTM in promoting social dialogue pilot scheme on social security will be formu- and improved labour administration services. lated and tested by STEP and the ongoing Technical advisory services will be provided bonded labour projects. A plan of action will to improve the frequency of meetings and be developed for a national health insurance implementation of decisions of the National scheme to enhance social development for Tripartite Council. Similarly, technical advi- workers in the informal sector. A study on the sory services will be provided to strengthen subject will provide an input to the synthesis the labour administration system as well as paper being prepared by the ILO in relation to labour inspection and employment services. the formulation of the Tenth Five-Year Plan. The capacity of the FNCCI-EC will be The ILO will provide support to improve further strengthened. FNCCI will be provided the quality of sexual and reproductive technical support to set up a cell to compile healthcare of 500 women workers. Support and update economic data with reference to will be provided to raise awareness among major trade/industries in Nepal in order to ILO’s constituents about the economic and improve competitiveness. Executives from social benefits related to ILO Convention No. enterprises will be provided with training on 102. Similarly, awareness will be raised about OSH, the Global Compact, and the roles and issues of sexual harassment at the workplace responsibilities of managers in improving in- 46 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

dustrial relations at the enterprise level.Other priority areas for action will be reviewed. Technical support for the development of guidelines on gender policy will be provided for eventual adoption by FNCCI members.

In order to strengthen the capacity of workers’ organizations, various training pro- grammes will be conducted, namely, on indus- trial relations and collective bargaining, IT networking and the challenges of globaliza- tion. Workshops will be organized to sensi- tize trade union leaders on HIV/AIDS, and in relation to organizing agricultural and rural workers with special reference to ILO Con- Programme for the Elimination of the Worst ventions No. 141 and 184. Similarly, work- Forms of Child Labour, bonded labour shops will be organized on OSH for planta- projects, activities for the economic and so- tion workers and the garment, carpet and cial empowerment of women and other pro- manufacturing sectors. Other activities will be grammes supported by the ILO in Nepal. finalized later.

The ILO will also continue to work 5.6 In Conclusion with its social partners to gain a stronger voice in the development of economic and During the past 35 years, the ILO has made social policy. It will provide assistance to em- a major contributions to the development proc- ployers’ and workers’ organizations to reach ess in Nepal. From the beginning, one of the out more extensively to new constituencies, most significant contributions was in the sphere especially women and youths, as well as of employment generation through labour- agricultural and informal sector workers, based activities. The ILO introduced innova- and improve the quality of services offered to tive approaches in appropriate, labour-inten- members. sive technologies, particularly in the irrigation sector. These workable approaches were later Support will be provided to enhance the adapted by a number of donors to other sec- capacity of ILO partners to promote gender tors, for example, rural road construction. equality in the world of work through social dialoge and, possibly, the establishment Social mobilization and participation by of a tripartite committee. A policy paper will project beneficiaries were at the heart of these be prepared on gender equality at work. A infrastructure projects. For the first time, the gender-sensitive curriculum will be developed implementation process not only considered to mainstream gender in OSH centres and re- technical aspects but also the social realities lated training materials. The ILO constituents in the field that contribute significantly to will continue to play an active and essential project success. role in the implementation of the Time-Bound 47 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

The ILO pioneered the partnership gender mainstreaming has been considered as approach between government line agencies, an integral part of all ILO activities in Nepal. the social partners, NGOs (for social mobili- zation) and donors according to the compara- The ILO looks at its future programming tive advantage of each organization for in Nepal optimistically. The activities planned the successful implementation of projects. for the next biennium are directed by the ILO ILO constituents closely guided its work in Declaration on Fundamental Principles and the country. Rights at Work. This declaration is the univer- sal commitment to respect, promote and real- Throughout this period, the basic mandate ize the principles of freedom of association, of the ILO, regarding the promotion of labour effective recognition of the rights to collective issues, was at the forefront of the programme bargaining, elimination of all forms of forced in Nepal. Particularly during the 1990s, after or compulsory labour, effective abolition of the establishment of the tripartite structure in child labour and elimination of discrimination the country, the ILO has made considerable in respect of employment and occupation. efforts in promoting labour standards and ca- pacity building of its social partners. As stated by the ILO Director General, Juan Somavia, the primary goal of the ILO More recently, the project portfolio of the today is to promote opportunities for women ILO programme in Nepal has expanded con- and men to obtain decent and productive work, siderably focusing on the elimination of child in conditions of freedom, equity, security and labour, in general, and its worst forms, in par- human dignity. In order improve the lives and ticular, within a specified period of time. The working conditions of Nepalese women and ILO-IPEC’s Time-Bound Programme is the men, the ILO Office in Nepal looks forwards new flagship programme through which the to working even more closely with its con- needs and rights of children will be protected stituents, namely HMG/Nepal, employers’ and in order to promote social justice and univer- workers’ organizations, as well as in partner- sal peace. Elimination of bonded labour, par- ship with the international community, civil ticularly child bonded labour and combating society organizations and with the people of trafficking are areas where considerable ef- Nepal to promote decent work for women and forts are being made. During the past years, men in this beautiful country.

48 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Annex A ILO Office, Nepal Names of the Director, Senior ILO Advisers and Officers-in-Charge

From To NamePosition Jan 1994 Jun 1996 Mr A. Timofeev Senior ILO Adviser Jul 1996 May 1997 Mr H.S.S. Fonseka Officer-in-Charge Jun 1997 Oct 1999 Mr Johannes Lokollo Senior ILO Adviser Oct 1999 May 2000 Mr H.S.S. Fonseka Officer-in-Charge Jun 2000 Dec 2000 Ms Leyla Tegmo-Reddy Senior ILO Adviser Jan 2001 Present Ms Leyla Tegmo-Reddy Director

49 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

Annex B List of the ILO Staff, 2001 ILO Office, Nepal

Mr Krishna Prasad Acharya National Project Coordinator Mr Yadav Kumar Amatya National Programme Manager Ms Rajni Bajracharya Secretary Mr Erik Beemsterboer Associate Expert Ms Charu Bist Programme Assistant Mr Patrick Daru Chief Technical Advisor Mr Casper N. Edmonds Associate Expert Ms Sita Devi Gurung Senior Secretary Mr A.F.M. Jamiluddin Programme Officer (*) Mr Hirendra Lal Karna Administrative Secretary Mr Mangal Maharjan Driver Ms Nani Shova Maharjan Secretary Ms Anita Manandhar Admin Assistant-cum-Secretary Dr. Narayan Manandhar National Project Coordinator Ms Aditee Maskey Administrative Secretary Ms Nita Neupane National Project Coordinator Ms Anju Panday (Silwal) Secretary Mr Ram Gopal Parajuli Administrative and Finance Officer Mr Uddhav Raj Poudyal National Project Manager Mr Suresh Pradhan National Project Coordinator Ms Marina Rai Administrative and Finance Assistant Mr Gagan Lal Rajbhandari Senior Programme Officer Ms Shreejana Ranjitkar Administrative Assistant Mr Bimal Rawal National Project Coordinator Mr Syed Zahir Sadeque Chief Technical Advisor Mr Sita Ram Sapkota Driver Mr Bekha N. Shahi Senior Driver Ms Sonika Shrestha Administrative Secretary Ms Kapila Singh (Amatya) Administrative Secretary Ms Tine Staermose Chief Technical Advisor Ms Ismele R Stalpers Associate Expert Ms Leyla Tegmo-Reddy Director Ms Dilkumari Thapa Secretary Mr Ram Sharan Thapa Senior Secretary *on temporary detachment from ILO (Dhaka) 50 35TH ANNIVERSARY: ILO-NEPAL PARTNERSHIP

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Shrestha, Binod and Charu Bist 2001, International Programme on the Elimination of Child Labour: Lessons Learnt for the Time Bound Programme, Kathmandu.

Shrestha, Binod 2000, Review of Nepal Expansion of Employment Opportunities for Women Project (EEOW), Kathmandu.

Tuladhar, Jyoti 2001, Consolidated Report Gender Mainstreaming in Social Dialogue (SAVPOT) March 2000 - August 2001, ILO-SAAT, New Delhi

UNDP and HMG/N 2000, Nepal’s Development Partners – Profile of Cooperation Programmes, Kathmandu

52 International Labour Organization P.O. Box: 8971, Kathmandu, Nepal Tel: (+977 1) 528514, 542129, 545005, 531752 Fax: (+977 1) 531332, Email: [email protected] http://www.ilo.org/kathmandu

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