02-10-2008, 07:01 PM
United Tele sends SOS to its Indian promoters
8 Feb, 2008
KATHMANDU: Indian joint venture United Telecom Ltd (UTL), the first private operator in Nepalâs telecom sector, has sent an SOS to its Indian promoters after its appeal to the Nepal government and police failed to avert the indefinite strike called by a trade union.
Major Indian public sector undertakings Mahanagar Telephone Nigam Ltd, Videsh Sanchar Nigam and Telecommunications Consultants India, who are the main promoters of UTL along with a Nepali partner, Nepal Venture, have been asked to take up the case with Indiaâs communications ministry and draw the government of Indiaâs attention to the plight of a major Indian venture in Nepal.
After three weeks of protests, staffers, contract workers hired by a third-party contracting firm for UTL, stopped work on Tuesday, demanding permanent employment. Things worsened on Wednesday when the protesters padlocked eight UTL centres in Kathmandu valley, preventing staff from entering or leaving the offices, and began a sit-in.
Police, alerted by UTL authorities, intervened in only one centre, forcing the padlock open. However, they remained idle spectators at the other centres, apparently for fear of triggering a clash with the protesters. About 180 unskilled workers who were hired by a third-party contractor, Nepali company J&T Associates, have called the strike, demanding permanent employment by UTL.
Calling themselves the UTL Workersâ Union, the strikers are affiliated to the trade union loyal to Prime Minister Girija Prasad Koiralaâs ruling Nepali Congress party. They are demanding permanent employment for workers who have worked for over 240 days, insurance, medical facilities and education for their children.
UTL says it is an unjust demand since the men were not hired by it but by the contracting firm that was used to outsource unskilled labour, following the custom worldwide. The strike comes at a time the beleaguered Indian venture began a new scheme for prepaid telephone lines that would have boosted business.
UTL, that currently runs over 115,000 phone lines in Kathmandu valley and five major towns, faces the new trouble after being targeted by King Gyanendraâs government in 2005, when it was shut down six times.
The UTL strike should create serious concern for the Indian government and Indian investors, being the latest in a series of attacks against Indian ventures in Nepal. Last month, Maoists shut down Sipradi Trading, the sole dealer for Tata vehicles in Nepal as well as Bharat Petroleum Corpâs Mak lubricant for cars, Exide Battery, and Indian Lucas Electricals that supplies electrical equipment for vehicles.
Two more Indian ventures are currently under siege in Nepal. The tobacco factory of Surya Nepal, ITCâs joint venture, and Nepal Lever, Hindustan Leverâs subsidiary, have also been closed down for over a week by strikers making similar demands.
8 Feb, 2008
KATHMANDU: Indian joint venture United Telecom Ltd (UTL), the first private operator in Nepalâs telecom sector, has sent an SOS to its Indian promoters after its appeal to the Nepal government and police failed to avert the indefinite strike called by a trade union.
Major Indian public sector undertakings Mahanagar Telephone Nigam Ltd, Videsh Sanchar Nigam and Telecommunications Consultants India, who are the main promoters of UTL along with a Nepali partner, Nepal Venture, have been asked to take up the case with Indiaâs communications ministry and draw the government of Indiaâs attention to the plight of a major Indian venture in Nepal.
After three weeks of protests, staffers, contract workers hired by a third-party contracting firm for UTL, stopped work on Tuesday, demanding permanent employment. Things worsened on Wednesday when the protesters padlocked eight UTL centres in Kathmandu valley, preventing staff from entering or leaving the offices, and began a sit-in.
Police, alerted by UTL authorities, intervened in only one centre, forcing the padlock open. However, they remained idle spectators at the other centres, apparently for fear of triggering a clash with the protesters. About 180 unskilled workers who were hired by a third-party contractor, Nepali company J&T Associates, have called the strike, demanding permanent employment by UTL.
Calling themselves the UTL Workersâ Union, the strikers are affiliated to the trade union loyal to Prime Minister Girija Prasad Koiralaâs ruling Nepali Congress party. They are demanding permanent employment for workers who have worked for over 240 days, insurance, medical facilities and education for their children.
UTL says it is an unjust demand since the men were not hired by it but by the contracting firm that was used to outsource unskilled labour, following the custom worldwide. The strike comes at a time the beleaguered Indian venture began a new scheme for prepaid telephone lines that would have boosted business.
UTL, that currently runs over 115,000 phone lines in Kathmandu valley and five major towns, faces the new trouble after being targeted by King Gyanendraâs government in 2005, when it was shut down six times.
The UTL strike should create serious concern for the Indian government and Indian investors, being the latest in a series of attacks against Indian ventures in Nepal. Last month, Maoists shut down Sipradi Trading, the sole dealer for Tata vehicles in Nepal as well as Bharat Petroleum Corpâs Mak lubricant for cars, Exide Battery, and Indian Lucas Electricals that supplies electrical equipment for vehicles.
Two more Indian ventures are currently under siege in Nepal. The tobacco factory of Surya Nepal, ITCâs joint venture, and Nepal Lever, Hindustan Leverâs subsidiary, have also been closed down for over a week by strikers making similar demands.