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Nepal – Labour costs soar following earthquakes, calls to suspend sending workers overseas

26 May 2015

The cost of hiring construction workers has almost doubled in Nepal’s capital Kathmandu, as thousands of workers flee in the wake of the recent earthquakes, reports ekantipur.com.

Nearly 80% of the region’s estimated 300,000 construction workers are believed to have left following the earthquakes. In their absence, hundreds of companies are now employing Indian and Bangladeshi workers.

The dearth of labour, coupled with unwillingness of many to work in buildings rendered unsafe by the quakes, has also boosted wages, according to the Federation of Contractor’s Association of Nepal (FCAN).

Day labourers are now charging NPR 700 (USD 6.66) to NPR 1,000 (USD 9.52) for an eight-hour day, where previously they would have earned around NPR 500 (USD 4.76) per day.

FCAN said that the wages could go up in the coming days with boom in the reconstruction, rebuilding and repair works of buildings damaged in the earthquake. But the federation has made it clear that there has not been any official decision to increase the sector’s minimum wage.

It has currently halted construction works due to fear among workers over safety concerns.

“Those who are working now are people working on piecemeal basis on their own or for other freelance contractors,” said FCAN President Sharad Kumar Gauchan, adding that there will be a big shortfall of workers as the construction work take pace. He said the federation was preparing to submit a proposal to workers seeking official revision of minimum wage rate to attract enough labourers for the reconstruction.

The General Federation of Nepalese Trade Unions (Gefont) has urged the government to formulate a special scheme to attract a large enough workforce in the construction sector.

Bishnu Rimal, President of Gefont, commented: “The government should immediately suspend foreign employment, and offer better pay scheme and facilities to convince semi-skilled workers going to Gulf and Malaysia to work here instead. We are not in a position to import workers from India and Bangladesh.”