11/12/2012, 00.00
NEPAL
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Nepal blocks foreign workers visas for multinationals

by Kalpit Parajuli
Unilever, Ncell and other foreign companies complain that local staff is too expensive and of poor quality. The visa ban also applies to foreign managers. For the Ministry of Industry multinationals are oursuing their own economic interests and are not helping the country's economic recovery.

Kathmandu (AsiaNews) - Nepal's Maoist government has blocked the visas of foreign workers imported by multinationals as low cost manpower. The decision was made after authorities discovered the use of staff from Bangladesh in the factories of Unilever and Ncell. They have violated the law that requires foreign companies to employ local workers. The procedure is valid not only for the workers, but also for managers and high level employees.

"In the coming weeks no foreign worker can obtain a visa - said an official of the Ministry of Industry - the procedures for registration will resume with notification of the new criteria for the entry and stay of foreign personnel in our country." According to the new regulation industries will have to employ local people to support the dramatic economic crisis in the country.

A source in the Foreign Ministry said that about five months ago, "Unilever Nepal requested visas for international staff of Bangladeshi nationality. Ncell has instead submitted an application for 28 engineers from the Netherlands."

An anonymous Ncell official explains: "All multinationals import labour according to its interests. The government's move may led to the closure of all foreign industries in Nepal." The source claims that the local labor force is too expensive compared to other workers from poorer countries such as Bangladesh. "Often - he adds - the quality of the local technicians is lower than our needs."

Recently, the Ministry of Industry sought to encourage and facilitate domestic and foreign investors to open their business in Nepal. This initiative aims to develop the country's weak economy, which is leading millions of people to emigrate. To date, more than 4 million Nepali migrant workers go abroad for work. Their remittances contribute about 10% of the national GDP. The biggest bargaining chip that the most famous multinational companies have, however, is the fact that they cannot take on local staff, because they are manipulated by the Maoists through their powerful trade union All Nepal Trade Federation (ANTF). On 4 February, 115 workers of Unilever Nepal blocked production for days, demanding wage increases and better working conditions. The leaders of multinational complained of losses amounting to 40 thousand euro per day and have repeatedly threatened closure.

 

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