At a glance, Nepal's industrial status can be easily described as undeveloped with only small industries that provide few workers with jobs. "Nepal's corporate mentality is still developing as the majority of industries are conducted and owned by small family groups," Mr. Lalit Bhadur Thapa, Director General of the Department of Labor and Industry, says. "There are few multinational corporations and they experience no labor problems," he continued. Unlike the larger corporations, which employ large numbers of laborers, family based operations commonly employ fewer than ten. Most of Nepal's traditional arts and handicrafts fall into this category. Among these businesses, the laborers are not protected by the department's trade union act as it deals with trade unions that can only be established where there are a number of workers greater than ten. These laborers, therefore, do not fall under Nepal's labor act, which the department enforces with laws along with other acts and policies. They govern how Nepal's some 200,000 industrial workers are treated such as imposing a minimum wage of 74 rupees per workday, less than a dollar, for those working in larger industries.

The country's labor act was passed in 1992 under the pretense that no laws could be formed without the consent from labor trade unions and the employers' federation. Since the creation of the act, many laws have been passed in order to protect social structure and the Nepali worker within. "No one under the age of fourteen can be legally employed" and "those aged fourteen to sixteen must have consent from the employer," Thapa says. It is also ruled that working hours shall not interfere with school hours. This can pose problems for young women who wish to be employed as females are restricted to working daytime hours unless they consent to work nights.

According to Thapa, the government has established sixteen labor training centers across the nation. Two of these centers are vocational skill development and fourteen are common skill development. They are six month programs that offer people a basic education to supply laborers with jobs both locally and abroad in industries like sewing, plumbing, electrical work, woodwork, metalwork and weaving. Under the national labor policy, programs are conducted for worker skill development. The programs are self-employment oriented and target groups under the poverty line in rural and urban areas towards the alleviation of poverty. The policy grants loans to the poor, which can be paid back upon employment in order for them to afford to take part in the programs. There are many training programs that are offered in the private sector as well but they receive only expressed encouragement from the government of which it is hard to make use.

Thapa summarized the department's role by saying, "We work towards what can be done for the betterment of both sides of Nepal's industries, the laborers and the employers." It works for an increase in production and to establish good employee-employer relations. He reflected the struggles that arise in this task, saying that "trying to impose the labor act is not practical because there are no compromises between employers and trade unions," under which laborers receive protection. There is a difficult situation that has formed since the labor act's instatement. Employers frequently complain that government politicians back the trade unions and that the creation of labor laws lies heavily on that side. "The practice is set by laborers and imposed on the employers," Thapa explained.

Because of the resentment employers show towards trade unions and the taxes imposed on them by the government they have formed various loopholes in order to benefit their situation. "We are trying to secure jobs but many laborers are not filling out employment forms," says Thapa. A worker has no protection from being fired unless he or she has being hired on record. It is presumed under the labor act that once a laborer has worked 240 days that he or she will become a permanent employee with certain benefits otherwise unavailable to the common worker. Employers are not unaware of this, however, and have a tendency to terminate laborers before they reach this point, adding to the feud.

The department is linked with ten labor offices nationwide that conduct inspections to see how the labor act is being enforced within factories. The inspectors retain semi-judicial powers and have the right to take employers to labor court where they can receive fines for their conduct. The implication of labor laws inside industries is an important step towards the development of the country's economy and the lives of its laborers. The kicker is that the workers who form the majority in Nepal today are not protected by these laws and find no comfort in knowing that they could be begging for their next meal.

Thapa contemplated his country's woes by saying, "The government is trying to control the Maoist insurgency that negatively affects Nepal's industries. The political situation is causing the closure of many industries and that of tourism is going down and people are losing jobs along with it." To add to the country's political chaos and to further the frustration of its people a new government is to be tested at the helm. Yes, at a glance, Nepal's industrial status can be easily described as undeveloped, and when given a closer look, its future looks rough.