The new bill on the Bank and Financial Institutions Act (Bafia) has prohibited trade union officials from using company property during office hours to ensure that they do not miss work, Nepal Rastra Bank (NRB) Governor Chiranjivi Nepal said Friday.

Clause 126 of the bill states, “Trade Union Officials cannot use the property of banks and financial institutions (BFIs) during office hours.”

Speaking at a discussion organised by the parliamentary Finance Committee, Nepal said, “The provision has been inserted in the bill so that they will not play a dual role during company time,” said Nepal. Bank managers have been complaining that the increased involvement of trade union officials in their own activities has hampered the work culture at their institutions. The problem is mainly seen in government-owned banks while trade unions have been established in a number of private banks too.

Many lawmakers favour removing the clause related to trade unions from Bafia. They argue that there is no need to insert a separate provision on trade unions because Trade Union Act 1992 already exists.

The Trade Union Act states that a maximum of four trade unions can be opened in an organisation including BFIs. The amended Bafia, however, contains a provision that allows the establishment of only one trade union in a BFI. Lawmakers have proposed allowing the formation of one union to deal with issues related to employees in the amendment proposal. Institutions have often been caught in the crossfire between two unions vying to gain more influence.

Governor Nepal said Bafia should clearly mention the extent that trade unions are permitted to use their rights. “As the act related to trade unions and the Income Tax Act are the key lures to attract foreign direct investment, the act should clearly state how much leeway will be given to the unions,” he said.

Nepal added that union leaders spending more time in union activities than company duties had affected other employees too.

Meanwhile, lawmakers Krishna Bhakta Pokharel and Kedar Sanjel asked if the provision in the bill would encourage trade union leaders to use company property for their own benefit.

Lawmaker Goma Kuwar asked why the amendment proposal has required the approval of the concerned agency to form a trade union when it is allowed by law. The bill contains a provision that only one union can be formed after obtaining permission from the concerned agency.