Employees lock Nerude Mirmire Laghubitta CEO inside office amid escalating protest

KATHMANDU: Tensions escalated at Nerude Mirmire Laghubitta Bittiya Sanstha on Wednesday after employees confined Chief Executive Officer (CEO) Keshav Bahadur Poudel inside the office, protesting what they describe as systematic discrimination, intimidation, and unilateral management decisions.

The incident followed the announcement of a phased protest programme by employee unions within the microfinance institution. The agitation was triggered by a series of unresolved grievances, prompting employees to stage a sit-in protest and restrict the CEO’s movement inside the office premises.

According to Katak Bahadur Shah, President of the Nerude Mirmire Laghubitta Employees’ Union, staff were compelled to take to the streets after repeated complaints were ignored by senior management. He alleged that lower-level employees, particularly office assistants, were subjected to verbal abuse and degrading language by management officials.

Shah further accused the management of arbitrarily cutting employee benefits and enforcing what he termed an “impractical and restrictive” social media policy that curtails employees’ freedom of expression. “These actions have created a climate of fear within the institution,” he said.

One of the major points of contention is the alleged replacement of a low-cost, functional software system with a new system through a non-transparent process. Shah claimed that the new software agreement has imposed an unnecessary financial burden on the institution, raising concerns over governance, cost efficiency, and accountability.

The employees’ union has also accused the management of favoritism in staff administration. According to Shah, seniority and performance have been systematically ignored in assigning responsibilities, with key roles distributed in a biased manner. He said such practices have demoralized staff and undermined institutional discipline.

In addition, the union alleges that management has failed to honor prior commitments made during negotiations. Shah said agreements related to restructuring responsibilities—particularly concerning the Human Resources Department—have not been implemented despite repeated assurances. He also claimed that several formal demand letters submitted over time were completely disregarded by the management.

“The behavior of the CEO and senior managers has made employees feel intimidated and humiliated,” Shah said, adding that the protest was launched only after all internal channels for dialogue were exhausted.

As part of their demands, the employee organizations have called for the immediate end to discrimination within the institution. They have also demanded the resignation of the CEO and the head of the Human Resources Department, accusing them of being central to what they describe as a toxic and hostile work environment.

The management of Nerude Mirmire Laghubitta has not issued an official statement on the incident as of the time of publication. It remains unclear whether talks have begun between the two sides to defuse the situation.

The incident has drawn attention within Nepal’s microfinance sector, which has already been under scrutiny over governance standards, labor relations, and ethical management practices. Observers say prolonged internal conflict could affect service delivery, institutional stability, and public trust, particularly given the sensitive role microfinance institutions play in rural and low-income communities.

Authorities have not reported police intervention so far, but officials indicated that the situation is being closely monitored as the protest continues.