Marking WDACL 2018 under the theme of ‘Generation Safe and Healthy’, the International Labor Organization (ILO) called on the world nations to ensure safety of young workers and end child labor by 2025.

“About 73 million children are in hazardous work – almost half of the 152 million children aged 5-17 still in child labor. Many suffer lifelong physical and psychological consequences. Their very lives can be at risk,” ILO said in an official release.

“Urgent action is needed to ensure no child under the age of 18 is in hazardous child labor,” says ILO Director-General Guy Ryder.

According to ILO, many of those children under child labor are toiling in mines and fields, factories and homes, exposed to pesticides and other toxic substances, carrying heavy loads or working long hours.

Among the world countries witnessing the child labor menace, Nepal is one country that has some alarming scenario with regard to child in hazardous work.

A Glance at Child Labor in Nepal

Employment has been one major concern for Nepal which is even today impacting thousands of its populace to move abroad for employment and career opportunities.

While this is the case of those who can afford to live abroad, what about those struggling locally? Here is where the concern of child labor arise.

                                     (Source: US Department of Labor)

Many of the working men and women population of Nepal were observed to have engaged their children in some form of child labor to generate required incomes to run the family.

Some of the Nepali sectors known for their prevalence of child labor include agriculture, industry and services, among others.

• Agriculture: Farming, herding and feeding livestock
• Industry: Brick Kilns, quarrying and collecting sand & stones, carpet weaving, textile production
• Services: Domestic work such as transportation, portering and collecting recyclable waste, working in hotels, restaurants and teashops, among others
• There are also some worst forms of child labor like human trafficking and commercial sexual exploitation, among others.

According to the US Bureau of International Labor Affairs, around 37.2 percent of Nepali children in the age group of 5-14 years are engaged in child labor, while 39.1 percent (7-14 years) are engaged in both schooling & work, and 91.7 percent (5-14 years) are under schooling

This situation is being observed across the country despite the enforcement of relevant laws and regulations such as Minimum Age for Work, Prohibition of Forced Labor, Minimum Age for Hazardous Work and Prohibition of Forced Labor, among others in place as part of the country’s legal framework.

Matter of Serious Concern

According to ILO, there is almost no reduction in the number of children aged 5-11 in child labor and the number has in fact gone up.

“Although the overall number of children in hazardous work has decreased over the past years, progress has been limited to older children in hazardous work. Between 2012 and 2016, there was almost no reduction in the number of children aged 5 to 11 in child labor, and the number of these most vulnerable, youngest children in hazardous work actually increased. This is unacceptable,” reads ILO statement.

On the other hand, the United Nations reports that “the returns on the investment in ending child labor are incalculable.”

Plan of Action: 107^th International Labor Conference

Addressing the world nations at the 107^th Session of the International Labor Conference in Geneva on June 8, 2018, Ryder urged the world governments to prioritize special programs against child labor.

Pointing out at economic concerns as the root cause of child labor, he pitched on the need for an immediate attention to unpaid family work in agriculture along with the global supply chains.

In this regard, he also pledged ILO’s all-round support to all the governments in curbing the menace of child labor, globally.

The Geneva conference marked the 20^th anniversary of the #GlobalMarchAgainstChildLabor that first began in June 1998 when hundreds of marchers including children gathered at the stage of the International Labor Conference. This eventually resulted in the adoption of the ILO Convention No. 182 on ‘Eliminating the Worst Forms of Child Labor’ in 1999.

According to ILO estimates, all forms of child labor will not be eradicated by 2025 and the world will still see 121 million children in forced labor situations despite all the planned measures

In this regard, the world labor body says, “We must move much faster if we are to honor our commitment to ending child labor in all its forms by 2025.”

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In its recent report titled ‘Jobless Growth?’, WB recommended a rise in job creation for Nepal to meet the employment needs of the gradually-growing working age population.

“Every month, the working age population increases by 35,000 people and Nepal must create 286,900 jobs a year to maintain its employment rate,” WB said in its report.

While WB projected Nepal’s GDP growth at 4.6 percent in 2018, “providing opportunities to these young entrants while attracting more women into the labor market, will require generating even more jobs for every point of economic growth,” says Martin Rama, World Bank South Asia Region Chief Economist citing to the growing working age (youth) population in South Asia through 2025.

Stating that the growth rebound is inconsistent across economies, the report noted that the exports remain weak despite the accelerating global growth and trade.

However, a slow recovery was observed in case of Nepal.

“Nepal has seen an economic recovery after disruptions from earthquakes and a trade blockade, but growth is expected to slow from 7.5 percent in fiscal year 2017 to 4.6 percent in 2018 due to the heaviest floods in decades combined with slow recovery of exports, slowdown in remittances, and an increase in lending rates,” the report added.

Case of South Asia

WB’s twice-a-year South Asia Economic Focus (SAEF) report made these observations as part of its assessment on the overall growth of South Asia.

According to Martin, “more than 1.8 million young people will reach working age every month in South Asia through 2025 and the good news is that economic growth is creating jobs in the region.”

To control the gaps in employment rate, the report urged South Asian economies to create a minimum of 1.17 million jobs a year.

“Growth is important, but even very high growth will alone not be enough to increase South Asia’s employment rate. Policies and actions are needed to make growth more labor-intensive, and especially to create the kinds of jobs that can encourage greater labor force participation by women,” says Robert Beyer, the report author.

Status of Employment in Nepal

Over the years, there has been a growing trend of inclination for foreign employment among Nepali working age population, especially the youth, due to the lack of employment opportunities locally.

As a result, Nepali working population have been migrating to the foreign destinations such as Malaysia, Singapore and Gulf countries, majorly. The first eight months of the current fiscal saw at least 1,026 migrants per day to various overseas labor destinations.

However, there is also a declining trend being observed over the last two fiscals with regard to overseas labor migration. This trend is encouraging the need for creation of more jobs, locally.

The Economic Survey of the Ministry of Finance was quoted to have reported the addition of a minimum 512,000 youth population to the Nepali labor market, annually.

While the number of new entrants to the Nepali labor market stands at more than 42,000 people per month in the last fiscal, the number is expected to grow further in the coming years owing to the declining dependency ratios.

The International Labor Organization (ILO) calls Nepal a young country with 63.7 percent of the country’s overall population (26.5 million) aged below 30 years.

However, when it comes to the employment, the unemployment rate among youth aged 15-29 years stands at 19.2 percent compared to 2.7 percent for the whole population.

“Over 400,000 young people are estimated to enter the labor force every year. These figures indicate the quantitative dimension of the employment challenge in Nepal,” says ILO.

Basic employment-related challenges in Nepal are attributed to the predominance of employment in the informal segments of the Nepali economy with low productivity and earnings, and poor working conditions, resulting in underemployment in the country.

Higher incomes and dignity of labor are among other aspects contributing to the rise in migration for foreign employment.

As a Solution: The Government of Nepal had on many occasions urged ILO for its support to enhance job opportunities within the country. Towards this end, ILO worked with the Nepali Government in developing a comprehensive national Employment Policy and is also assisting towards the effective implementation of the same with special focus on informal economy, social protection and youth employment. To monitor the changing trends, ILO is working in collaboration with the Central Bureau of Statistics (CBS) of Nepal to develop employment monitoring and evaluation tools. The organization has also extended its technical support for the labor market reform in the country resulting in a modified labor bill. This has further moved Nepali Ministry of Labor to bolster the public employment services thus contributing to the possible rise in employability across the country.

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Towards this end, the government has already approved the brand logo prepared by the National Tea and Coffee Development Board (NTCDB) and the Himalayan Orthodox Tea Producers Association (HOTPA).

This logo ensures that Nepali tea has met the international manufacturing standards.

Prior to global marketing, the logo will first be used in tea packets after its official launch in the Mt Everest region in April 2018.

“It is difficult to meet all the international standards in tea production, but we have to accept this challenge. This is the only way to make Nepali tea competitive in the international market,” says HOTPA CEO Chandra Bhushan Subba.

Any tea producers will have to meet the international labor standards set by the International Labor Organization (ILO) to promote their product in the international market.

With this rule in place, NTCDB and HOTPA have already begun conducting awareness programs among farmers and other stakeholders of Paanchthar, Dhankuta and Ilam for the successful marketing of Nepali tea in the international market.

The brand logo is expected to address the concerns of exporters who have been facing legal issues pertaining to export of their product in the international markets.

To Address Challenges

Nepal orthodox tea is old and known for its taste, however, has been facing trade and marketing challenges.

Out of 5.5 million kg of orthodox tea produced annually in Nepal, 10 percent is consumed in the domestic market and 10 percent is exported to third countries. 

The remaining 80 percent is sold in the Indian market, where Nepali tea is marketed as Indian produce and again resold to foreign markets.

“We are compelled to rely on intermediaries although our products are of high quality. As a result, we have not been able to get good returns,” says Gayatri Basnet, a Sakhejung-based entrepreneur.

 “This is the reason why we need a logo to brand our products overseas. It is not mandatory for tea producers to get the logo. But if they want to get good returns, this is one of the options,” says Subba.

Out of the total 24 million kg of tea produced annually in Nepal across 28,000 hectares, around 5.5 million kg is orthodox. Orthodox tea gardens in Nepal are across 16,000 hectares and are owned by around 30,000 small farmers.

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As a measure towards strengthening the rights and welfare of expatriates, Qatar on November 16, 2017 announced QAR 750 as a basic wage limit for all the expatriates working in the kingdom.

Surprisingly, the new basic is QAR 150 less than the minimum wage limit of QAR 900 set by the Nepali Government in 2013 for Nepalis working in Gulf countries.

On January 21, 2013, Nepal announced a provision suggesting QAR 900 as a minimum wage for its unskilled labor working in Qatar, along with QAR 1,100 and QAR 1,500 for semi-skilled and skilled labor, respectively.

The provision also requires the employers to ensure free board allowance up to QAR 300 per worker along with QAR 4,700 as food allowance for professionals.

A Bitter Response

While the international bodies like the International Labor Organization appreciate the move, the decision is sounding bitter for Nepal and a few human rights activists.

“Let’s not forget that this is an 18 percent reduction in wages from the current minimum wage set by the Nepali Government for Nepali workers going to Qatar,” tweeted Catherine Chen, a human rights activist working for a US-based charity called Humanity United, in response to the announcement by the Qatari Labor Ministry.

Kumud Khanal, former Vice-President of the Nepal Association of Foreign Employment Association (NAFEA) says, “Nepal should endorse QAR 750 or stop sending workers until Qatar agrees to abide by its minimum wage standard. The different policies of the labor-receiving and labor-sending nations will only complicate matters.”

According to Khanal, two such different rules would increase the use of fake work contracts.

Ganesh Gurung, a migration expert, also feels that the decisions like this would hamper the workers’ overall demand.

Nepali Government officials informed that they would discuss the issue with the Qatari higher officials maintaining Nepal’s firm stand.

Workers Worry

Following the announcement, the Nepali labor community in Qatar is worried that the new rule might impact their basic rights causing abuse and exploitation concerns.

“There is a danger that QAR 750 will be the new normal and even companies which were paying 900 riyals will now refuse to pay more than the new minimum,” says Krishna Pun, a security guard in Qatar.

Pun, who is currently drawing around QAR 1,800, fears that his company would cut his pay. Many other workers feel the same, he adds. 

Future Impact

While Nepal has similar wage limits for countries such as Bahrain, Oman and Saudi Arabia, Qatar is one of the key destinations hosting around 400,000 Nepali migrant labor.

However, the new wage limit will most likely add to the financial burden of the Nepali workers in Qatar, thus creating a concern for Nepalis’ immigration to Qatar.

Many Nepali workers pay high service charges to recruitment agents and the situation is almost similar in case of workers from India, Pakistan, Myanmar and Bangladesh.

According to Amnesty International, workers pay as much as 60 percent interest on the loans they take from local moneylenders for foreign employment.

Even though countries such as Israel, South Korea and Malaysia have their own minimum wage limits, the basic wages in Qatar is less compared to other foreign destinations such as Bahrain, Malaysia, Kuwait and Oman.

This situation in Qatar exists despite the high demand for work that unskilled workers do there.

Its noteworthy that Qatar is hosting the 2022 football World Cup with most of the labor it has for construction activity are from Nepal and Bangladesh.

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Towards this end, Secretary at the Nepali Ministry of Labour and Employment Laxman Prasad Mainali requested ILO Director General (DG) Ryder to plan for green-jobs creation and skill development programs in Nepal.

Mainali made this proposal as part of his participation at the 331^st governing board meeting of ILO held in Geneva, in the first week of November 2017.

While informing that the Nepali youth migrating for foreign employment are in need of skill development programs, Mainali also urged the ILO Director to ensure safety of Nepali migrant labor working at foreign destinations.

“Nepal needs support to create jobs in the country for the youths to prevent them from going abroad and also to provide them opportunities when they return home after completing their contract,” said Mainali.

Meanwhile, Binda Pandey, a Deputy Member of the governing board of ILO and a representative of the Nepali team at the meeting, highlighted concerns of Nepali labor migrants with regard to work conditions and migration.

In this regard, Pandey requested ILO’s technical support to Nepal towards implementation of the social measures related to the new Labor Act such as labor inspection and capacity building.

On the occasion, Pandey proposed the extension of the Decent Work Country Program in Nepal for another five years.

In response, Ryder assured all the needed support from ILO with regard to job creation and addressing the concerns of labor migration, while urging on the need for safe and secure ways of managing migration.

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