Consumer goods manufacturer Unilever Nepal Limited (UNL) said on Tuesday that a lockout continues due to disruptions caused by trade union leaders.

Refuting reports in some sections of the media that normal operations had resumed at the factory, the multinational company said that management had to declare a lockout, a temporary work stoppage, on August 7 due to an ‘illegal’ strike called by the union.

According to the company, normal operations at the factory have been severely disrupted since July 10 due to industrial relations issues.

UNL employees have been staging protests since July 10 demanding that Rs200,000 be allocated as ‘residential fund’.

The workers said they were forced to intensify their agitation after management refused to implement an agreement reached on May 29 over the residential fund. Workers at UNL’s Hetauda factory had reportedly ended their 28-day strike on Sunday after reaching a three-point agreement with management at a meeting held at the District Administration Office.

Management was supposed to end the lockout after a meeting of the company’s board of directors scheduled to be held in Mumbai, India on Thursday.

The company said unreasonable pressure tactics used by union leaders had made it impossible for management to carry out day-to-day operations forcing it to declare a lockout.

The company has 154 employees and manufactures fast-moving consumer goods.