Training cum Workshop on Challenges of Informal Economy for Trade Unions

organised by Democratic Confederation of Nepalese Trade unions (DECONT)

09 - 10 September 2005

Kathmandu, Nepal

Background

In developing countries like Nepal, the major sector of informal job is agriculture where around 80 percent of total population is involved. And, they are still depends on traditional agriculture as main occupation since the development of industrial and modern technologies are very slow. At the same time, in Nepalese labour market, around 96 percent of labour forces are engaged in informal economy. On other side the employers of formal sectors are enthusiast to convert formal workers into the informal one. In today's globalized world, the available formal jobs are also disintegrating into small informal pieces making more and more contracts and sub contracts. By which the main employer in practice will not be responsible for the maintaining of the labour's engaged in workplace. Not only that, the skill labor from cross-boarder are displacing the native labors since the native's approach to jobs and availability of skill promotion and vocational training is extremely poor. Therefore in one hand, the trend of employing contract labor in permanent work is ever increasing and in other hand the job opportunities are cut off thus that is pressurizing the flow of labor in informal economy.

In these circumstances, along with hard time for national economy is coming forward for trade union and the workers of informal economy. Therefore, DECONT is much worried about such workers' issues like how to integrate the workers of informal sectors into trade union movement, how to make them enthusiast and capable and how to protect their rights and welfare. Because keeping the majority of workers out of trade unions' reach, the movement will not be able to represent the majority of workers. Due to the reason, DECONT is emphasizing the unionization of workers from informal economy from the beginning. And, in year 2004, we had also organized a national level consultative workshop in cooperation with FES and that gave us recommendations to organize programmes on informal economy at regional levels. As the follow up of that workshop, DECONT in cooperation with FES organized a training cum workshop on 'Challenges of Informal Economy for Trade Unions' on 09 - 10 September 2005 at Kathmandu. Altogether, 36 participants from different affiliated unions of DECONT and also from district committees took part in the workshop.

Inaugural Ceremony

A brief inaugural session was organized for the formal inauguration of the workshop and the chief guest for the ceremony was Bro. R. B. Raut, President of DECONT and Bro. Dev Raj Dahal, Head of FES Nepal Office was present as special guest. Also presented at the occasion were Bro. K. N. Dahal, General Secretary, Sis. Rama Poudel, Women Vice-President, Bro. D. C. Gautam, Treasurer, Bro. R. K. Dev, Regional Vice-President, Bro. G. S. Subedi, Bro. R. D. Ghimire, Central Members of DECONT and officials of different affiliated unions. Addressing the session Bro. Raut said that informal economy is becoming serious challenges for trade unions and added problem is the limited formal sectors are also informalizing gradually. He further emphasized that the trade union movement will not be geared up until we focused on and organize informal workers.
Likewise, addressing the inaugural, Dr. Dahal said that in developed countries workers formulate labour legislation and government make the legislation complying with them. In turn, in countries like ours government both formulate and implement the labour legislation and workers are obliged to accept whatever it is. Therefore workers' interest and rights are not properly addressed and it also increasing the magnitude of informal economy. He also added that DECONT from the beginning had started to work for the workers of informal economy and it is need of time that such efforts and initiation is very necessary for the rights and welfare of workers of informal economy and FES is also supporting DECONT in those efforts.

Business session

After the inaugural session, a brief introduction session was held where participants, presented guests and resource persons introduced themselves on the basis of personal as well as organizational background. Thereafter, formal workshop was started with session on 'Overview of Informal Economy and Role of Trade Unions in Nepalese Scenario', which was facilitated by Bro. K. N. Dahal. In this session he described about the background of informal economy, present situation of workforce in informal economy, problems of those workers, planning and strategic problems, opportunities and challenges for trade unions, initiation of DECONT in informal economy etc. As well as he also put forward few policy recommendations for socio-economic reforms of the workers of informal economy. After the deliberation, an open discussion was also held for about 30 minutes in which 16 participants took part and expressed their experiences of local level.

The next session of the workshop was on 'Legal provision of informal economy' that was facilitated by Bro. Ghanashyam Subedi where he described about definition of informal economy based on legal perspective, data on workers engaged in different sectors of informal economy, present legal status of labour or other legislation that to some extent cater the rights and issues of informal workers. He also discussed about the existing such provisions both national and international and their shortcomings to address the rights and welfare of informal workers as well as few recommendations to reform the workers' status under the informal economy. Thereafter an open discussion was also held for around 25 minutes and 18 participants raised their concern on the legal aspects.

The next session of the day was on 'Challenges of Trade Unions in Informal Economy' that was facilitated by Bro. D. C. Gautam. In this session he discussed about some important challenges thrown by informal economy for trade unions. Thereafter, a group discussion was designed to collect the ideas and experience of union leaders regarding challenges informal economy for them at grass root level. Thereafter, the participants were divided into four groups and assigned the task to prepare group reports on the subject matter. The group discussion was facilitated by Bro. Gautam and Bro. K. P. Poudel jointly.

Second Day

Session of the next day was started with the presentation of group reports on challenges of trade unions in informal economy. All four groups presented their group reports respectively. The discussion was also held on the group reports and the issues raised therein. The details of group reports are attached at the bottom of report. After it, next session was started and that was on 'Sharing experiences in organizing the unorganized', which was facilitated by Sis. Rama Poudel where she discussed about how the workers of varied informal sectors could be organized under trade unions' structure. During the session she also discussed some examples of successful organizing strategies for informal workers in other countries as well as collected the participants' views about how we can enhance our capacities to organize the unorganized one.

The next session of the programme was on "DECONTs' Policies and Organizing Strategies for Informal Sectors" and this session was facilitated by Bro. K. N. Dahal. During the session he briefed about the policies adopted by DECONT to organize the informal workers and also activities carried out by DECONT in this aspect through different national unions. As well as it has been also discussed about the efforts of DECONT to strengthen and capacity building of such national unions. It has been also discussed about possible strategy to organize more and more workers from such sectors to make the trade union movement much stronger. Thereafter an open discussion was held for around 20 minutes and 17 participants took part sharing their experiences.

The last session of the workshop was on "Developing Future Action Plan for Organizing Unorganized Workers of Informal Economy" and that was primarily a brainstorming session where participants were asked to develop an action-oriented workplan to organize informal sector workers in their respective districts. The session was facilitated by Bro. Poudel and Bro. Subedi. For the group discussion the participants were divided again into four groups and following tasks were assigned them for possible action plan:

1. List out the priority sectors under informal economy in their respective district.
2. List out the possible activities of unions for coming one year.
3. Target for organizing.

All the groups presented their action plan of coming one year where they presented their plan to organize and strengthen informal sectors workers and unions. The activities are from organizing new members, renewing old members, forming/reshuffling of district committees of such unions, organizing campaigns, trade union education etc.

After the group discussion and report preparation, each group presented their report and was summed up by Bro. Subedi. Thereafter, a brief closing session was held where Bro. R. B. Raut, Bro. K. N. Dahal, Sis. Rama Poudel, Bro. R. K. Dev and Bro. G. S. Subedi emphasized that informal economy is not only challenges instead it is an immense opportunity also but we need to exploit it properly. For that we should formulate proper policies and action plans and has to be implemented it accordingly. And, they hoped that the formulated action plan could help to exploit those opportunities by those districts presenting Action Plans.

Outcomes of Group Discussion on Challenges of Informal Economy for Trade Unions