28 June, 2006

Nepal: Union rivalry shuts Carlsberg venture Gorkha Brewery

Keen rivalry between labour unions of major political parties has resulted in the shutdown in Nepal of Carlsberg Beer. Gorkha Brewery, the Danish beer company’s joint venture in Nepal, closed its factory in Chitwan June 21, The Peninsula posted June 26.

Over 30 Nepali industries in Chitwan, Bara, Parsa and Kavre, including several textile factories, have also closed after two trade unions affiliated to two major parties began demanding higher wages and better terms for the workers.

The trade unions of the Nepali Congress and Communist Party of Nepal-Unified Marxist Leninist (UML) are pressuring the companies to revise their terms of hiring. Both the Nepali Congress and UML are major partners in Nepal’s seven-party ruling coalition.
“The trouble started after the union of the Maoists began demanding better working conditions for workers,” says Rajendra Khetan, vice-president of the Confederation of Nepalese Industries.

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