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Strengthen the Nepali / Tibetan Rug Industry

Published by Renee Lamb on Dec 02, 2009

• The creation of a distinct set of labor laws focused on the export industry. These laws should be developed through a participatory approach inclusive of industry players, non-governmental organizations working in the industry, unions, employees and government officials, and should ensure that the industry is allowed to grow in a way that increases workers’ productivity while also increasing employment.

• An increase in the government’s export promotion policies, meant to help this industry win market share from the increasing number of machine made and lower quality carpet manufactures. This should include tax incentives for exporters, government backed funding structures for exporters, producers and suppliers, government promotion of the “Nepali Carpet” brand, and assistance to address environmental and labor issues damaging not only the industry but also its reputation abroad. Export incentives should have a direct and positive impact on the industry’s sales and national revenue derived from the industry.

• A standardization of quality certifications with incentives to increase the percentage of rugs being made with a traditional Tibetan construction and utilizing hand spun yarns and the highest quality long staple wool, thereby increasing and protecting the value of the Nepali carpet brand. Certification standards should be put into place to distinguish the traditional pieces using crossed knot construction and hand spun yarns from the non-traditional pieces using a non-crossed knot construction and/or machine spun yarn.

• The creation of a safe and welcoming investment climate that fosters foreign and domestic investment by ensuring that investors need not fear the unlawful loss of their investment or their lives when traveling within the country.

• A reworking of the labor unions’ relationship with the factories to ensure that the labor union activities and demands are responsible towards the workers and lead to the betterment of the industry, working conditions, and employment standards. The current thuggery and politicization of a select number of labor unions is reinforcing counterproductive activities that weaken and damage the industry and the working conditions of its employees.

• The implementation of effective incentives and tools to ensure that industry workers and their children have access to medical services and education up to the higher secondary level.

• The strengthening of government policy and enforcement to combat and diminish the use of child labor in the industry.

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