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Regd No: 155

History of Trade Union in Nepal

Published Tue, Jan 14, 2025

The history of trade unions in Nepal is deeply intertwined with the country’s socio-political evolution, economic changes, and struggles for workers' rights. Trade unions emerged as a response to the challenges faced by laborers in various sectors, including agriculture, manufacturing, and services. Their development has been shaped by Nepal's transition from a feudal system to a democratic society, as well as the broader global labor movement.


Early Labor Movements in Nepal

Nepal's labor movement began to take shape in the mid-20th century, coinciding with the country’s political awakening. Until the 1950s, Nepal was under a feudal system dominated by the Rana regime, where workers had little to no rights, and the concept of organized labor was virtually nonexistent. The overthrow of the Rana regime in 1951 and the establishment of a democratic government opened the door for political and social reforms, including the recognition of workers’ rights.

One of the landmark events in the early labor movement was the jute mill movement of the 1940s. Workers at the Biratnagar Jute Mill, one of the largest industrial establishments in Nepal at the time, organized protests and strikes demanding better wages and working conditions. The movement, led by prominent political leaders such as Bishweshwar Prasad Koirala and Girija Prasad Koirala, marked the beginning of organized labor activism in Nepal. Although the protests were initially suppressed by the Rana regime, they succeeded in drawing attention to the plight of industrial workers and laid the foundation for future labor movements.

The first labor union in Nepal, the Nepal Mazdoor Congress (NMC), was established in 1947 under the influence of the Indian labor movement. However, the NMC’s activities were limited due to the oppressive nature of the Rana regime. It wasn’t until the fall of the Rana regime that the labor movement began to gain momentum.


The Rise of Trade Unions (1950s–1980s)

With the advent of democracy in 1951, labor unions started to organize more effectively. The 1959 Constitution of Nepal recognized the right to form associations, which further encouraged the growth of trade unions. During this period, several labor unions emerged, including the Nepal Trade Union Congress (NTUC), which became one of the leading trade union federations in the country.

However, the political instability of the 1960s and the establishment of the Panchayat system in 1960—an autocratic political system—restricted the activities of trade unions. The Panchayat regime viewed labor unions with suspicion and often suppressed their activities. Despite these challenges, underground labor movements continued to advocate for workers’ rights.


Revival and Expansion (1990s)

The restoration of democracy in 1990 marked a turning point for trade unions in Nepal. The new democratic constitution guaranteed the right to freedom of association and collective bargaining, paving the way for the formal recognition and growth of trade unions. This period saw the emergence of various trade union federations, often aligned with political parties, including:

These federations played a crucial role in advocating for labor rights, improving wages, and ensuring better working conditions for workers across different sectors.


Trade Unions in the 21st Century

The 21st century brought new challenges and opportunities for trade unions in Nepal. The country’s transition to a federal democratic republic in 2008 further strengthened the legal framework for labor rights. The promulgation of the Labor Act 2017 and the Social Security Act 2017 provided a more robust legal foundation for workers’ welfare and social security.

Globalization and industrialization have also influenced the labor movement in Nepal. While these developments have created new job opportunities, they have also led to issues such as job insecurity, exploitation, and unsafe working conditions. Trade unions have been at the forefront of addressing these challenges through collective bargaining and advocacy.


Challenges Faced by Trade Unions

Despite significant progress, trade unions in Nepal face several challenges, including:


Conclusion

The history of trade unions in Nepal reflects the country’s broader struggle for democracy, social justice, and economic development. From their humble beginnings under a feudal regime to their current role in shaping labor policies, trade unions have been instrumental in improving the lives of workers. The jute mill movement and subsequent labor struggles have left an indelible mark on Nepal’s labor history. As Nepal continues to evolve, trade unions will need to adapt to new challenges while staying true to their core mission of protecting and promoting workers’ rights.

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