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Unilever running Indian industries by closing down Nepali industries

Kathmandu, 23 May: Indian joint-venture Unilever Ltd is closing down Nepali subsidiary industries by establishing new industries with total Indian investment.

Annapurna Post vernacular daily has reported that the Unilever Ltd in Hetauda Industrial Area has already shut down two subsidiary industries out of three. Ganga Soap Industry and Unique Soap have already been closed as Unilever stopped procuring products from these industries under the Unilever brand. RM Chemical Industry, solely under the Indian investment, has started to produce and supply Unilever brand products to Unilever Ltd.

Nepali labourers and industrialists are in agitation against such an attitude of the Unilever Ltd.

Unilever has not renewed the procurement agreement and also has not clear the money of goods supplied before, said Indra Bania, director, Ganga Soap.

Unilever has denied implementing minimum wage rate and CBA fixed by Nepal government, whereas, it has implemented these provisions in newly operated Indians run industry, Bania said.

Ganga Soap is closed for one month as Unilever has not procured raw materials produced by the industry.

Bania said that Unilever has not paid compensation to the labourers after closure of the industry.

According to Bania, Ganga Soap is yet to receive twenty million rupees.

Unique Soap and Chemical Industry, another subsidiary industry of Unilever is closed for last eight months. A total of 123 labourers were working in this industry. As Unilever didn’t pay compensation to the labourers, the industry is compelled to pay around 15 million rupees as compensation to the labourers, said Nabraj Aryal, director of the industry.

He said, the machine belongs to Unilever and also laburers were working for the Unilever. Even though, Unilever has stopped procuring raw materials from this industry, he said.

Around 15 million rupees is due with Unilever, he informed.

Agitating labourers have warned that if their issues are not addressed, they will be compelled to stage peaceful demonstration at the main gate of the Unilever.

All Nepal Trade Union Federation’s district chairman Ganga Bhattarai said that the Indian joint-venture has made unemployed to around 500 labourers. “We will continue our agitation until restoration of the labourers”, he said.

If operated the existing industries, the Unilever Ltd will have to pay additional above one million expenditure cost. To save this amount, the joint venture company has closed down the Nepali subsidiary industries. The other reason is that when such joint venture industries have been allowed to run subsidiary industries by themselves, Unilever has opened new industry by closing down Nepali industries, said Shyam Shrestha, chairman of the G-Font Hetauda District.

Unilever is an Indian joint-venture with above 60 percent shares of the Indians.

People’s News monitoring Service

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