May Day the Real Labor Day May 1

May Day - the Real Labor Day • • • May 1 st, International Workers' Day, commemorates the historic struggle of working people throughout the world, and is recognized in every country except the United States, Canada, and South Africa. This despite the fact that the holiday began in the 1880 s in the United States, with the fight for an eight-hour work day. In 1884, the Federation of Organized Trades and Labor Unions passed a resolution stating that eight hours would constitute a legal day's work from and after May 1, 1886. The resolution called for a general strike to achieve the goal, since legislative methods had already failed. With workers being forced to work ten, twelve, and fourteen hours a day, rank-and-file support for the eight-hour movement grew rapidly, despite the indifference and hostility of many union leaders. By April 1886, 250, 000 workers were involved in the May Day movement. The heart of the movement was in Chicago, organized primarily by the anarchist International Working People's Association. Businesses and the state were terrified by the increasingly revolutionary character of the movement and prepared accordingly. The police and militia were increased in size and received new and powerful weapons financed by local business leaders. Chicago's Commercial Club purchased a $2000 machine gun for the Illinois National Guard to be used against strikers. Nevertheless, by May 1 st, the movement had already won gains for many Chicago clothing cutters, shoemakers, and packing-house workers. But on May 3, 1886, police fired into a crowd of strikers at the Mc. Cormick Reaper Works Factory, killing four and wounding many. Anarchists called for a mass meeting the next day in Haymarket Square to protest the brutality. 1

Historical Background • The United Kingdom established its presence in South Asia in the early part of the 17 th century. By the 1850’s, the British had expanded their influence and controlled most of the Indian subcontinent, which included present-day Pakistan and Bangladesh. In 1857, the administration of the country was handed over to the British government. 2

• Economic progress of a country is linked to industrial peace and harmony. Therefore, the Labour Policy should aim at achieving this equilibrium through social dialogue between the workers and the employers in both the public and private sector. Omar Asghar Khan[i] • [i] Extracts of press clipping issued by the Minister of Labour, Manpower and Overseas Pakistanis and published by daily Dawn, Karachi dated Nov 22, 2001. 3

• The Labor Policies issued by the Pakistani governments in the form of Ordinances or directives have had sobering effects on the industrial peace in the country. However, the former have never been perceived as the total solution. They have often been seen as somewhat controversial in nature. If the Ayub government was in favour of emerging industrialists the Bhutto government was heavily biased in favour of workers. Nonetheless, both the IROs of 1969 and 2002 and industrial policies of 1955, 1959 and 1972 have helped promote industrial democracy in the country (Ghani, 2002). The labour leaders some of whom have left indelible marks in the history of trade union activities in Pakistan managed to achieve many rights for the labour / workers which over a period of time have grown to as much as 45 Million. The menace of child and bonded labour continues to haunt the conscious of the civilized people in general while the agricultural sector labour and teachers (educationists) have been outside the purview of IROs. 4

• Political expediency has been the hallmark of political leaders rather than setting goals for strategic objectives with a view to improve upon the quality of work life (QWL) and protection of labour rights. There seems to be a wide gap between the perceptions and realities of quantum of industrial democracy as seen by the employers and employees in Pakistan. To what extent IRO-2002 has advanced the cause of industrial democracy, ensuring of industrial peace and helped enhanced QWL of the workers and labour would be discussed in the ensuing paragraphs. 5

• • Generally speaking there are two parties to a dispute. However, in case of industrial dispute there are three stakeholders, i. e. , the employees, employers and the government. The latter is to play a role of a referee between the profit hungry employers and work shirker employees with a view to protect the interests of employers and safeguard the rights of employees[i]. In order to harmonize the relationship between the employees and the employers, the government issues a guideline (in this case labour policy) for the mutual good of all the stake-holders. Unions stress the personal and political, as well as the economic aspect of industry. They seek to reduce the human cost of production by such means as helping to protect workers from arbitrary discriminatory decisions by management, improving the employees’ peace of mind through greater job security, and raising the level of dignity and respect with which wage earners are treated in the plant. (Lester, 1958). The labour policies are in fact extension of the will of the people of the country to ensure industrial peace and development. The labour policies are mirror reflection of: Socio-economic and geo-economic conditions Political conditions and ideological inclinations of the government(s) Economic compulsions of the government Industrial standards and levels of IT and automation (computerization) Literacy level (Informed Workers) General outlook towards quality of work life (QWL[ii]). 6

Definition of the terms • • Collective Bargaining Agent An elected body of an organization or industry. Collective Bargaining It is a process of negotiation between an employer, or group of employers and a group of work people to reach an agreement on working conditions. International Labour Organization A world body working under the auspices of UNO deputed to set standards for work and quality of work life for workers the world over. Industrial Policy The outline of government’s action plan giving direction to employees and employers as well as judiciary to achieve certain targets. It is sometimes used synonymously with labour policy. Industrial Relations Ordinance (IRO) A legal document giving legal cover to the industrial or labour policy enunciating penalties for violation of labour rights and procedures for redressal of grievances etc. Labour Policy It defines the fundamental approach of the government towards the industrial relations in the country and provides guidance to the administrative, legislative and judicial actions of the government. Trade Union (TU) Elected body of workers in an organization authorized to secure rights of workers OR A union is an organization of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining 7

Paris Peace Conference of 1919 • a Commission on International Labour Legislation was established. The Commission gave a Labour Charter of Principles and declared that labour should (Nair, 2001): • Not be regarded as a commodity or article of commerce • Have the right of association • Receive an adequate wage to maintain a reasonable standard of living • Have an 8 hour a day or a 48 hours week • Have weekly rest of at least one day • Have equal pay for equal work • Have equitable economic treatment of all workers in a country • Have an inspection system to ensure the enforcement of the laws for workers protection • Abolition of child labor 8

Trade Unionism • Trade Unionism is a modern concept originated with the writings of Hegels and Karl Marx. “Workers Unite” was the message to the workers (Nair, -----). Union is defined as, ‘An organization of workers, acting collectively, who seek to protect and promote their mutual interests through collective bargaining (Nair, page 288). Trade union (TU) on the other hand is defined as, “A trade union is any combination of persons; whether temporary or permanent, primarily for the purpose of regulating the relations between workers and employers or between workers and workers, or for imposing restrictive conditions of the conduct of any trade or business and includes the federations of two or more trade unions. (Nair, 2001, page 288). 9

The cardinal principles and objectives of TUs • PRINCIPLES • Unity is strength • Equality of pay for equal work • Security of employment • OBJECTIVES • Ensure security of workers • Obtain better economic returns • Improve working environment and welfare measures • Secure power to influence management • Secure power to influence government • TRADE UNIONISM THEORIES • The theories that have helped develop trade unionism are: • Revolutionary theory. • Industrial democracy. Like democracy, unions are vehicles in which industrial democracy is established so that exploitation of any kind is prevented by workers or owners”. (Sidney and Beatrice Webb). • Business Theory. An opposite of revolutionary theory as per which the primary objective of union is to protect the economic interests of the workers (Samuel Gompers). • Socio-Psychological Theory. Workers make use of unions to meet their needs like physiological, security, companionship, and ego etc (H J Ruttenber). • Change Theory. The objective of labour movement changes from time to time. Hence, no simple theory can explain union and labour relations (Selig Perlman). The Instruments of production must belong to the workers (Marx and Hegels). 10

• Pakistan inherited All India Trade Union Congress (AITUC) and Indian Federation of Labour (IFL), the former being communist in inclination. However, they soon reformed and constituted as Pakistan trade Union Federation (PUTF) – communist ideology - Pakistan Labour Federation (PLF) which finally changed its name to APFOL. The total membership in 1947 was about 115, 000 out of which PTUF had 20, 000 workers in 38 affiliated unions mostly concentrated in Pakistan Railways. On the other hand, the APFOL concentrated in other sectors including ports and shipping with 95000 workers in 49 unions. Martial Law of 1958 ended most trade unions. The APCOL led by Dr A M Malik (erstwhile governor of East Pakistan during closing days of 1971) was recognized as sole representative of workers in 1951. It had over 393, 137 members with 209 unions and had itself affiliated with ICFTU. Each union on the average had 1, 880 workers (Anonymous). As the time went by, there were further splits and regrouping in the federations. The APFTU, the harbinger of APCOL affiliated with ICFTU in 1974. Islamic unionism emerged with the support of Jamat-i. Islami a religious party and affiliated with ICFTU in 1974. Mr. Z. A. Bhutto created its own labour party known as Peoples Labour Party. By 1977, trade unions activity reached its peak with a record membership of one million. By the 1980’s the trade union density was around 3% (Awan, 2003). The most disturbing fact is that the unionized labor force is a very small proportion of the total labour / work force. Out of 45 million labour / work force only about 1. 4 million are unionized (Awan, 2005)[i]. 11

• In case of Pakistan, the majority of the labour fell in the category of agricultural sector and lived in the rural areas of both the wings of Pakistan. Whatever work force was available in large cities like Lahore, Karachi, Dhaka, and elsewhere fell victim to the manipulative and authoritative culture of inexperienced industrialists. The latter took the industry as their personal fiefdom. However, the attitude of employers changed during the 60 s due to initiation of industrial dialogue both at international and national levels, setting up of some large scale industry in certain parts of the country, coming into life of organizations like WAPDA, PIDC, PIA, PTCL (largest employers) and governmental need of industrial peace and progress. The attitude of employers changed during the sixties mainly due to the struggle of the workers and enactment of IRO-1969. (Awan, 2003). By late 60 s the bureaucrat as employer was less visible. However, they remerged with the nationalization in 1973 -74. The trend continued until late 80 s when the drive for privatization placed most of the industries in the hands of entrepreneurs. The latter facilitated movement for trade union activities but with mixed results. 12

• • On the whole the trade unions have registered substantial movement during the last 60 years. In 1951, there were 209 registered unions with 393, 137 members compared to 7, 204 unions with over a million workers in 2001. In the realm of collective bargaining only about 1, 905 unions are enjoying the status out of 7, 318 registered unions. The trade unions touched the peak in 1975 (8, 196) and thereafter declined to about 7, 204 in 2001 mainly due to mergers. Besides three ICFTU affiliates, i. e. , APFTU, PNFTU, and APFOL, there are few other significant centers of slightly politicized labour groups and are grouped as PWF. The APFTU, PNFTU and APFOL are likely to merge into PWF by September 2005. It is expected that the labour unions would then able to have a very positive role in furthering the cause of worker in Pakistan. As of today out of 1. 5 million workers only about 1/3 rd is reaping the benefits of collective bargaining (Awan, 2003). [i] As of today there are 5 federations, i. e. , APFOL, APFTU, PNFTU, MLF, and NLF. Out of these the first three are likely to merge into one federation (PWF) and affiliate itself with ICFTU by Sep 05. 13

Labour Policies through the Ages • A labour policy defines the fundamental approach of the government towards industrial relations in the country. It provides guidance to the administrative, legislative, and judicial actions of the government. Since independence, five well articulated labour policies have been issued by various civil and military governments. They have been supported or provided an implementation mechanism through industrial relations ordinances of 1969 and 2002. Interestingly, both the IROs have been issued by the military governments of Gen. Yahya and Gen. Musharraf. Despite the fact that Ayub Khan’s government provided impetus for industrial growth in the country yet he relied on administrative orders and short term policies. Probably, the reason was political expediency in which industrialists, businessmen and investors (always the best friends of military governments) were to be protected against the demands of workers. The different sets of policies and IROs that have been issued over time are Labor Policy – 1955, Industrial Policy – 1959, Labor Policy – 1969 & IRO – 1969, Labor Policy – 1972 and Labor Policy & IRO 2002. 14

Why issue Labour Policy • • Generally speaking there are two parties to a dispute. However, in case of industrial dispute there are three stakeholders, i. e. , the employees, employers and the government. The latter is to play a role of a referee between the profit hungry employers and work shirker employees with a view to protect the interests of employers and safeguard the rights of employees[i]. In order to harmonize the relationship between the employees and the employers, the government issues a guideline (in this case labour policy) for the mutual good of all the stake-holders. The workers in Pakistan draw inspiration and strength from the Constitution of Pakistan (though non existent until 1956) Article 17 which guarantees the right to freedom of association and other supportive elements like ILO conventions. The fundamental rights of labour for which the struggle goes on in every part of the world especially Pakistan are described briefly at Appendix – F. The labour policies are in fact extension of the will of the people of the country to ensure industrial peace and development. Therefore, the fundamental objectives / purposes of any labour policy have been and are to motivate the employers NOT to adopt unfair labour practices[ii] and enlighten the employees that disturbing industrial peace is counter productive to their interests. Therefore, the labour policies are mirror reflection of: Socio-economic and geo-economic conditions Political conditions and ideological inclinations of the government(s) Economic compulsions of the government Industrial standards and levels of IT and automation (computerization) Literacy level (Informed Workers) General outlook towards quality of work life (QWL[iii]). 15

• • • [i]As per US NLRA, the rights of employees are set forth principally in Section 7 of the Act, which provides as follows: Sec. 7. Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 8(a)(3). [ii] As per NLRA the unfair labour practices by the employers include: Threatening employees with loss of jobs or benefits if they should join or vote for a union. Threatening to close down the plant if a union should be organized in it. Questioning employees about their union activities or membership in such circumstances as will tend to restrain or coerce the employees. Spying on union gatherings, or pretending to spy. Granting wage increases deliberately timed to discourage employees from forming or joining a union. [iii]The key descriptive phrase in QWL programme is worker –management cooperation. The goal is to end or at least reduce the adversarial relationship between management and labor and tap more directly the productive capacity and technical know-how of individual workers (Sauer & Voelker, 1987). 16

Labour Force of Pakistan • • • • As per Pakistan Economic Survey - 2008 and Labour Gazette the details of labour force of Pakistan are as under: Total Population 148 M Total labour force 41. 32 M Total labour force (Rural) 28. 12 M or 68 % Total labour force (Urban) 13. 42 M or 32 % Employment status Agriculture Sector 42. 09% Mining 0. 07 Manufacturing 13. 84 Elect. , Gas and Water 0. 81 Whole/retail Sale incl Hotels etc 14. 85 Transport, Communication etc 5. 90 Financing, real estate businesses etc 0. 89 Community, social and personal services 15. 50 17

LABOUR FORCE MARKET ACTIVITY Year Population (Million) Labor Force (Million) Employed (Million) 1990 110 32 29. 60 1995 125 34 32. 34 2000 139 40 2004 148 45 Unemploymen t Labour %age Unemploymen t %age 6. 22 1. 84 5. 37 37. 38 3. 17 7. 82 41. 32 3. 72 8. 27 Source: Pakistan Economic Survey 2003 -04 18

MAJOR MILESTONES THAT HAVE BEEN REACHED BY THE LABOUR IN PAKISTAN • 1 st Tripartite Conference in Karachi from 8 -9 February 1949 • 2 nd Tripartite Conference • 2 x Labour Commissions • 1980 3 rd Tripartite Conference • 1987 Labour Welfare Commission • 1988 4 th Tripartite Conference • 1993 2 x Task Forces on Labour Welfare • 1999 Labour Commission • 2001 5 th Tripartite Conference that prepared the draft for IRO-2002 19

TOTAL NUMBER OF TRADE UNIONS AND MEMEBERSHIP The details of trade unions and their growth in numerical form vis-à-vis CBA activities are as under: Unions Membership 1951 209 393, 137 1970 2, 522 735, 620 6, 170 859, 517 Year Population (M) Labor Force (M) 1985 96 1995 125 34. 42 7, 426 993, 932 2001 145 41. 84 7, 204 1, 040, 303 REGISTERED TRADE UNIONS (PROVINCE WISE) 2001 Province Registered Unions CBA Number Members Punjab 2, 142 407, 546 674 140, 921 Sindh 4, 266 494, 417 981 279, 857 NWFP 598 80, 840 174 38, 404 Balochistan 198 28, 751 76 19, 516 Total 7, 204 1040303 1, 905 478, 698 Source: Provincial Labour Directorates – Productive roles of trade unions in Pakistan by APFOL 2003 20

REGISTRATION OF TRADE UNIONS / FEDERATIONS / OFFICER’S ASSOCIATIONS BY THE NIRC DURING 1973 TO SPETMEBER 30, 2004 Industry wise trade unions 317 Federations at national level 65 Officer’s associations 54 Cancellation of unions 117 Cancellation of federations Cancellation of associations 18 19 Source: NIRC of Pakistan (2005) 21

LABOUR FORCE PARTICIPATION RATE (LFPR) Employment by Sectors / Occupational Groups 2004 Sectors Employed Labor Force(M) %age share Occupational Groups Employe d Labor Force(M) %age share Agriculture 17. 40 42. 1 Legislators, Officials and Managers 4. 80 11. 6 Mining & Manufacturing 5. 70 13. 8 Professionals Elementary occupations Technicians 0. 87 8. 02 2. 1 19. 4 94 7 1. 4. Construction 2. 52 6. 1 Clerks 0. 70 1. 7 Trade 6. 11 14. 8 Services 2. 36 5. 7 Transport 2. 44 5. 9 Agri. & Fishery 14. 33 34. 7 Social services 6. 40 15. 5 Plants operators 1. 61 3. 9 Others 0. 75 1. 8 Crafts 6. 69 16. 2 Total 41. 32 100% Source: Pakistan Economic Survey 2003 -04 22

FUNDAMENTAL RIGHTS OF WORKERS • • Article 17 of 1973 constitution of Pakistan enshrines freedom of association in that it states, “Every citizen shall have the right to form associations or unions, subject to reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan, public order or morality”. The GOP has ratified ILO conventions 87 and 98 almost five decades ago. However, violation of worker’s rights continues unabated. Some of the important ones are: 1. Sector related restrictions on organized labour. Agriculture (17. 03 M or 42%) and education sectors (not recognized as industry) (Schools teachers – 969771 and Clerks 0. 70 M) alongwith certain other industries / organizations are outside the ambit of labour policy / trade union activity. 2. Restrictions on termination of employment. Despite many years of urging by the ILO the government of Pakistan has not repealed ESMA, 1952 which is in clear violation of ILO convention 29. 3. Denial of Union Membership / freedom of Association. Workers rights are compromised by giving artificial promotions to workers. PTCL is case in point. ESTACODE 1973 is another forum through which civil servants are denied collective bargaining and are dealt with on individual basis. 4. Restrictions on right to strike. Despite the fact that the government has ware with all to declare any strike illegal yet to mollify the employers the right to strike ha s not been given to the workers. 5. Labour rights sacrificed to foreign investors. EPZA Ord – 1980 and EPZ Act 1982 prohibit the workers to go on strike, adopt go slow, refuse to work or incite or compel others to do likewise. National pride must not be sacrificed at the altar just to attract FDI. 6. Issue of child and bonded labour. Despite enactment of Employment of Children Act, 1991 children continue to be employed regardless of age. The GOP has ratified ILO Convention 182 yet differences in perception of minimum age exist. Similarly, there seems to be complete laxity as far as implementation of laws regarding prison labour and bonded labour is concerned. 23

CLASSIFICATION OF LABOUR STANDARDS AS RIGHTS • Basic Rights – – Right against involuntary servitude/forced labour Right against physical coercion Right against discrimination Right against (exploitative use of) child labour • Civic Rights – Right to free association – Right to collective representation – Right to free expression of grievances • Survival’ Rights – – Right to a living wage Right to full information about work place hazards Right to accident compensation Right to limited hours of work • Security Rights – – Right against arbitrary dismissal Right to severance and long service pay Right to retirement compensation Right to survivor’s compensation 24

IRO s – A PROFILE • Enactment of Employers and Workmen ( Disputes) Act • • Trade Union Act came into being as a result of momentum achieved by trade unions Indian Trade Dispute Act • • Speedy determination of disputes relating to wages, Summary disposal by Magistrates Any dispute that fell within the purview of Federal or Provincial government(s) could be referred to the Court of Inquiry or Board of Conciliation (BOC) BOC consisted of a Chairman and 2 or 4 Members nominated by the defaulting parties; representing them equally Inability to render the proceedings institutable under an Act or Law Industrial Disputes Act • • Anomalies of Indian Trade Dispute Act – 1929 removed New Institutions created for prevention and settlement of disputes, which were: – – • • A major step towards providing a comprehensive and legal basis for industrial relations Restored the workers right to strike (Awan, 2003) National Industrial Relations Commission (NIRC) established in November 1972 A number of amendments changed it radically from its original aim Industrial Relations Ordinance (IRO) • • • Structurally same as its predecessor An appellate body set up for the first time Industrial Relations Ordinance (IRO) • • • Replaced Industrial Disputes Act - 1947 Industrial Courts were set up consisting of a Chairman and 2 Members. The latter represented employers and employees. Emphasis on conciliation as a first step to resolve a dispute West Pakistan Industrial Disputes Ordinance • • • Both the parties to industrial dispute or the government could refer to the Tribunal Award of the Tribunal was to be enforced by the government Industrial Disputes Ordinance • • • Works Committees were formed consisting of employees and employers of industrial organizations with 100 or more employees Industrial Tribunal with Members as High Court Judges As a result of revision of IRO-1969 by Justice ® Shafi-ur-Rehman in 1999 and Tripartite Labour Conference in 2001, IRO-2002 was issued by the Federal government in Oct 02 A comprehensive code of conduct with compared to its predecessor 25

• [i]As per US NLRA, the rights of employees are set forth principally in Section 7 of the Act, which provides as follows: • Sec. 7. Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 8(a)(3). • [ii]The key descriptive phrase in QWL programme is worker – management cooperation. The goal is to end or at least reduce the adversarial relationship between management and labor and tap more directly the productive capacity and technical know-how of individual workers (Sauer & Voelker, 1987). 26

Labour Policy – 1955 • The period of 1 st decade (1947 – 1958) can be termed as Years of Infancy in which the industrial activity was at the lowest ebb. The total labour force in 1950 was 393, 137 with 209 labour unions (Awan, 2003). A breakthrough was made by holding Pakistan’s 1 st Tripartite Labour Conference in Karachi from 8 -9 February 1949 (Awan, 2003). In the concluding session a 5 Year Programme of Action drafted in 1946 as a result of Labour Conference was approved with minor modifications. Concomitantly, the government(s) implemented / adopted age-old Acts and Ordinances such as Mines Act, 1923, Workmen’s Compensation Act, 1923, Trade Union Act, 1926, Factory Act, 1934, and Industrial Disputes Act, 1947. The aforementioned Acts paved the way formulation of formal policies, legislation and issuing of directives pertaining to labour and industry. One major achievement of Industrial disputes Act, 1947 was the prohibition of strikes and lockouts during conciliation proceedings. (Awan, 2003 page 39). The former Act was replaced in 1959 as Industrial Dispute Ordinance. Under this the workers in public utilities were disallowed to go on strike and the employers were given the right to let off the employees. However, workers were not provided any forum to redress their grievances. The employers were given the right to refer industrial disputes raised by workers for adjudication. Nonetheless, the protests of workers paved the way for a first of its kind ‘a formal Labour Policy in 1955 (CLA, 2005). The salient features of which are given at Appendix – L. On the whole, the labour policy of 1955 was a good beginning under the prevailing environments. However, the frequent changing of hands at the helm of the affairs of the government made it ineffective (CLA, 2005). 27

Labour Policy - 1959 • • The Martial Law regime of 1958 for the first time in the history of Pakistan formalized industrial growth. With the setting up of autonomous organization like Pakistan Industrial Development Corporation (PIDC) in the two wings of the country (East and West Pakistan) large scale industries were established throughout the country (Awan, 2003). New legislative measures like Road Transport Workers Ordinance (1961), The Provincial Employees Social Security Ordinance (1965), The Companies Profits (Workers Participation) Act, (1968) and The West Pakistan Industrial & Commercial Employment (standing orders) Ordinance (1968) were received well by the employers as well as employees (CLA, 2005). The industrial activity paved the way for tripartite dialogue. Resultantly, ILO was brought into focus for the first time and in February 1959; the industrial policy was announced with the objectives given at Appendix – M. A quick survey of the policy objectives as listed at Appendix – I would indicate that they were more or less friendlier to the industrialists rather than the workers. The later were left at the disposal of the formers’ mercy because of absence of any legislation. However, a strict enforcement of labour laws was stressed and in that Provincial Labour Directorates were strengthened. On the other hand, a 1960 decree modeled on the lines of American anti union Taft-Hartley Law (1947)[i] actually extended government’s control over the labour movement. As per APFOL-2003 the government failed in its effort to develop appropriate machinery for enforcement of labor laws. [i]According to this law the US workers and labour were banned from going on strikes. 28

Labour Policy – 1969 • • Gen. Yahya who had replaced F. M. Ayub Khan through a constitutional coup needed legitimacy and popular opinion within the country to remain in power. Therefore, Air Marshal Noor Khan, then Minister for Education and Labour in the military government of Gen. Yahya not only gave a favourable labour policy but also filled the void by giving an implementing vehicle, IRO-1969. Landmark changes in industrial relations system were made through this policy (Ghani, 2002) which resulted in restoring certain fundamental rights of labour especially the right to strike. The important aspects of otherwise the best yet short lived labour policy is given at Appendix – N. On the other hand, this was the first ever labour policy, which was supported by implementation instrument, IRO – 1969 (Awan, 2003). The efforts of Air Marshal Noor Khan (Retired) are indeed laudable in this regard. An even playing field had been provided to the employees and employers. The office of the labour Inspectorate was strengthened with the promulgation of laws like: IRO – 1969 ----- a land mark in the history of labour union in Pakistan The West Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969 The Workers Welfare Fund Ordinance, 1971 29

Labour Policy - 1972 • Mr. Z. A. Bhutto (late) was seen as a messiah, a friend of workers, peasants, students and oppressed sections of the society. The political philosophy propagated by Pakistan Peoples Party (PPP), Roti, Kapra aur Makan mesmerized every down trodden citizen more so the workers. Mr. Bhutto, an advocate of Islamic Socialism and staunch opponent of 22 families that had been supported to the hilt by his predecessors embarked upon the process of Nationalization of all industrial units. Mr. Bhutto announced a Labour Policy on 10 February 1972 within 7 weeks of assuming high office of CMLA and President of Pakistan. However, it was never backed up with any legislation, although, in developing countries labour decisions are made through legislation and not at the conference table (Riaz, 1972). The salient features of 22 points policy framed by another socialist Mr. Mohammad Hanif Ramay are given at Appendix - O. 30

Labour Policy – 2002 • • The period from 1977 – 1999 can be divided into two halves. The period of military rule of Gen. Zia (1977 -1988) was a rule of tyranny, instability, fighting a proxy war in Afghanistan, and widespread introduction of culture of gun running and drugs. Labour policy from 1977 to 1988 became an exercise in suppression (Awan, 2003, page 47). On the other hand, period from 1988 -1999 the only period of elected civilian rule was lost in political wrangling by the two mainstream political parties, Pakistan Muslim League and Pakistan Peoples Party. The decade of 1990 -2000 has been termed by some cynical analysts as lost decade. Resultantly, very little was done by the political and military governments in ameliorating the cause of workers, trade union activities and or institutionalizing Collective Bargaining. The crudest example of abrogation of labour rights was provided by Pakistan in 1992 when it passed its Finance Bill and allowed a MNC (DAEWOO) to set aside the country’s labour laws[i]. [i]The effort was to woo MNCs /attract FDI to invest in the country in view of policy of privatization. 31

Labour Legislation • • Pakistan’s labour laws trace their origination to legislation inherited from India at the time of partition of the Indo-Pak subcontinent. The laws have evolved through a continuous process of trial to meet the socio-economic conditions, state of industrial development, population and labour force explosion, growth of trade unions, level of literacy, Government’s commitment to development and social welfare. To meet the above named objectives, the government of the Islamic Republic of Pakistan has introduced a number of labour policies, since its independence to mirror the shifts in governance from martial law to democratic governance. Under the Constitution labour is regarded as a ‘concurrent subject’, which means that it is the responsibility of both the Federal and Provincial Governments. However, for the sake of uniformity, laws are enacted by the Federal Government, stipulating that Provincial Governments may make rules and regulations of their own according to the conditions prevailing in or for the specific requirements of the Provinces. The total labour force of Pakistan is comprised of approximately 37. 15 million people, with 47% within the agriculture sector, 10. 50% in the manufacturing & mining sector and remaining 42. 50% in various other professions. 32

LIST OF ORDINANCES AND ACTS • • • • The Acts and Ordinances dealing with Trade Union activities and labour / workers are listed as under: Mines Act, 1923 Workers Compensation Act, 1923 The Factories Act, 1934 Payment of Wages Act, 1936 Railways Act, 1940 Coal Miners Labour Welfare Fund Act, 1947 Apprenticeship Ordinance, 1962 West Pakistan Social Security Ordinance, 1965 Companies Profits (Workers Participation) Act, 1968 West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 The west Pakistan Minimum wages for Unskilled Workers Ordinance, 1969 West Pakistan Shops & Establishments Ordinance, 1969 The Workers Welfare Fund Ordinance, 1971 Industrial Relations Ordinance, 1969 and 2002 Dock Workers Act 33

IRO – 1969 • This was the 1 st ever IRO that was issued by the military government of Pakistan alongwith the labour policy of 1969. The IRO provided base line for furthering trade unionism in the country and legal document for adjudication. 34

IRO -2002 • • Aims and Objectives For the purposes of preparing a consensus document inline with the proposed labour policy (later implemented as Labour Policy – 2002) a committee consisting of representatives of tripartite labor conference and Justice ® Shafi-ur-Rehman was formed to revise IRO - 1969. Mr Ashraf W. Tabani and Mr Zahoor Awan represented the employers and employees respectively (Awan, 2002). Despite certain dissentions, a consensus document was prepared formal approval by the federal government. The untimely death of Mr. Omar Asghar Khan, the prime mover of the change (original draft of labour policy 2002) was disadvantageous to the employees (Awan, 2005). However, a consensus document was prepared by newly formed WEBCOP and implemented as IRO-2002 on 26 October 2002. IRO – 2002, by and large meets the demands of the realities of time and formally associates employers and workers in HRD including planning and management of vocational training (Minister of Labour, 2002). The IRO -2002 is a compact document. It is divided in 9 chapters with each chapter discussing a particular subject. Salient Features of IRO-2002 The object of the Ordinance is to amend, consolidate and rationalize the law relating to: – Formation of the trade unions – Regulation of relations between the employers and employees – Avoidance and settlement of differences arising between the employees and 35 employers – Matters connected therewith and ancillary thereto

IRO-2008 • • • Passed on July 19, 2008 For a better labour law IT is unfortunate that our parliamentary politics leaves a lot to be desired when it comes to debate and discussion with stakeholders prior to the passage of a bill. This is a factor in the government’s disregard of key concerns in the draft of the Industrial Relations Act, 2008. The bill has been approved by the Senate and there are fears, articulated strongly by the Workers-Employers Bilateral Council of Pakistan (Webcop), that it will impede progress on labour issues if it assumes the shape of a law without the revision of its contents. Among the most significant objections to the draft — that as law is intended to promote industrial peace — is that it is based on the Industrial Relations Ordinance (IRO) of 1969. The latter was replaced in 2002 by a new IRO that had been extensively discussed by all stakeholders, but which, in its final form, caused anger as it did not incorporate some vital recommendations. However, it was an improvement on the previous law which in many ways is obsolete in its applicability to labour conditions today. The demand now is for amending the 2002 ordinance and not altogether replacing it. There is much sense in this for the 2002 ordinance, with all its faults, is more in step with the times than its predecessor. In this regard, a drastic revision of the 2008 draft could correct the current law’s shortcomings, for instance, by bringing into its ambit all public sector organisations with the exception of the police and armed forces as suggested by Webcop. At present, the new draft does not do this. Similarly, there are provisions in the IRO 2002 which need to be retained in the new law. For instance, a clause regarding the cancellation of the registration of a trade union in IRO-2002 has been deleted in the draft. While there are many other items that need correction, perhaps the overriding concern is the lack of consultation with experts that has shown up glaringly in the new text. It is important to have a thorough debate in parliament about the upcoming law and equally essential for this to be guided by expert opinion. 36

Emerging scenarios • Before closing our discussion it would be pertinent to throw some light on the emerging scenario in the world of labour relations and consequent labour policies of Pakistan. The fact on ground is that the world is moving fast towards outsourcing and cutting cost of productions, thereby enhancing profitability. More and more jobs are being shifted towards white collar from the realm of blue collar. Gone are the days when enterprises used to boast of thousands of employees under their arm. The production is taking place in factories and units detached from each other in fact located in other countries and continents, i. e. , closer to where cheap resources of production are available. The MNCs are looking for countries where there are no disturbances. The culture of unionism is being replaced with strong labour federations organized at national / federal levels. For example, there are 10 -12 federations in Germany, 3 -4 federations in USA and only one in Japan (CLA, 2005). Unlike Pakistan where there are 5 federations. However, with possible merger into one by the three leading federations, the labour / worker of Pakistan would have better say in labour relations. Pakistani labour, therefore, would be able to adopt the mainstream policies of world’s business. The governments would also have to adopt policies whereby workers are not fooled by the MNCs and at the same time the former are not deprived of the rewards. Technology is the name of the game. The future labour policies would have to take stock of human rights, child labour and bonded labour. Women workers would have to be protected against maltreatment and provided with equal pay for equal work. Agricultural and education fields the two largest employment agencies would have to be declared / accepted as industries. Until and unless, the three stakeholders of industrial democracy learn to cooperate with each other for the greater good of the country, the objectives as outlined in IRO – 2002 and labour policy 2002 would remain unfulfilled. 37

Contract of Employment • • While Article 18 of the Constitution affords every citizen with the right to enter upon any lawful profession or occupation, and to conduct any lawful trade or business, the Industrial and Commercial Employment (Standing Orders) Ordinance was enacted in 1968 to address the relationship between employer and employee and the contract of employment. The Ordinance applies to all industrial and commercial establishments throughout the country employing 20 or more workers and provides for security of employment. In the case of workers in other establishments, domestic servants, farm workers or casual labour engaged by contractors, their labour contracts are generally unwritten and can be enforced through the courts on the basis of oral evidence or past practice. Every employer in an industrial or commercial establishment is required to issue a formal appointment letter at the time of employment of each worker. The obligatory contents of each labour contract, if written, are confined to the main terms and conditions of employment, namely nature and tenure of appointment, pay allowances and other fringe benefits admissible, terms and conditions of appointment. 38

Trade Union and Employers Association Regulation • The right to association is guaranteed by Article 17 of the Pakistani Constitution imparting on every citizen the right to form associations or unions, subject to any reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan, public order or morality. Under Article 3 of the IRO 2002, workers as well as employers in any establishment or industry have the right to establish and to join associations of their own choosing, subject to respect of the law. Both workers' and employers' organizations have the right to establish and join federations and confederations and any such organization, federation or confederation shall have the right to affiliate with international organizations and confederations of workers' and employers' organizations. 39

Registration of trade unions • Registration of a trade union is to be made under the Industrial Relations Ordinance. Workers’ trade unions are registered with the Registrar Trade Unions in the Province, and if the industry or establishment is nationwide with the National Industrial Relations Commission, after fulfilling a number of requirements, listed in Article 6 of the IRO 2002. Through its registration, the trade union obtains certain benefits: registration confers a legal existence as an entity separate from its members. Trade unions in Pakistan generally function on plant-wide basis, with their membership contingent on the size of the industry/trade to which they belong. Once established, the trade unions and employers' associations have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organize their administration and activities and to formulate their programmes. 40

Collective Bargaining and Agreements • • To determine the representative character of the trade union in industrial disputes and to obtain representation on committees, boards and commissions, the Industrial Relations Ordinance makes provision for the appointment of a Collective Bargaining Agent (CBA). The CBA is a registered trade union elected by secret ballot. The CBA is entitled to undertake collective bargaining with the employer or employers on matters connected with employment, non -employment, the terms of employment or any right guaranteed or secured to it or any worker by or under any law, or any award or settlement. Collective agreements are thus formulated by the CBA. The agreements may contain matters such as the facilities in the establishment for trade union activities and procedures for settling collective disputes including grievances and disciplinary procedures. Substantive provisions settle terms and conditions of employment, wages and salaries, hours of work, holiday entitlement and pay, level of performance, job grading, lay-offs, retrenchment, sick pay, pension and retirement schemes. Such agreements once duly executed by both parties become the source of law. The agreements should invariably be in writing and should be drafted with care, for they are meant to settle disputes rather than raise them. In addition to statutory benefits under the labour laws, the adjustment of rights takes place through collective bargaining including adjudication in Labour Courts. The IRO 2002 has changed the appellate procedure on the provincial level, which used to be brought before a Labour Appellate Tribunal. This institution was abolished by the IRO 2002. Appeals of Labour Court decisions now lie directly with provincial High Courts. Office bearers of trade unions are given protection against arbitrary transfer, discharge and dismissal. Any ill-intentioned action on the part of the employer against an office-bearer of a trade union or against a worker for trade union activities, is construed as an unfair practice and the National Industrial Relations Commission is entrusted with the task of preventing such offenses. Security of service is ensured to the workers. Similarly, unfair labour practices on the part of workers and trade unions is elaborated and incorporated in law. 41

Collective Bargaining and Agreements • • To determine the representative character of the trade union in industrial disputes and to obtain representation on committees, boards and commissions, the Industrial Relations Ordinance makes provision for the appointment of a Collective Bargaining Agent (CBA). The CBA is a registered trade union elected by secret ballot. The CBA is entitled to undertake collective bargaining with the employer or employers on matters connected with employment, non -employment, the terms of employment or any right guaranteed or secured to it or any worker by or under any law, or any award or settlement. Collective agreements are thus formulated by the CBA. The agreements may contain matters such as the facilities in the establishment for trade union activities and procedures for settling collective disputes including grievances and disciplinary procedures. Substantive provisions settle terms and conditions of employment, wages and salaries, hours of work, holiday entitlement and pay, level of performance, job grading, lay-offs, retrenchment, sick pay, pension and retirement schemes. Such agreements once duly executed by both parties become the source of law. The agreements should invariably be in writing and should be drafted with care, for they are meant to settle disputes rather than raise them. In addition to statutory benefits under the labour laws, the adjustment of rights takes place through collective bargaining including adjudication in Labour Courts. The IRO 2002 has changed the appellate procedure on the provincial level, which used to be brought before a Labour Appellate Tribunal. This institution was abolished by the IRO 2002. Appeals of Labour Court decisions now lie directly with provincial High Courts. Office bearers of trade unions are given protection against arbitrary transfer, discharge and dismissal. Any ill-intentioned action on the part of the employer against an office-bearer of a trade union or against a worker for trade union activities, is construed as an unfair practice and the National Industrial Relations Commission is entrusted with the task of preventing such offenses. Security of service is ensured to the workers. Similarly, unfair labour practices on the part of workers and trade unions is elaborated and incorporated in law. 42

Illegal strikes and lock-outs • • A strike or lockout is declared illegal if it is commenced without giving notice of conciliation to the other party of the dispute, or if it is commenced or continued in a manner other than that provided by the IRO 2002 or in contravention with this text. In case of an illegal strike or lockout, an Officer from the Labour Department may make a report to the Labour Court, and require the employer or CBA or the registered trade union concerned, to appear before the Court. The Court may, within 10 days, order the strike or lockout to be stopped. In case of contravention of the order of the Court by the employer, and if the Court is satisfied that the pursuance of the lock-out is causing serious hardship to the community or is prejudicial to the national interest, it may order the attachment of the factory and the appointment of an official receiver, who will exercise the powers of management and may do all such acts as are necessary for conducting business. In case of contravention of the order of the Court by the workers, the Labour Court may pass orders of dismissal against the striking workers, or cancel the registration of the trade union that committed such contravention. 43

Strikes and Lock-outs • • • If dispute settlement proceedings before the Conciliator fail and no settlement is reached, and if the parties have not agreed to refer their dispute to an arbitrator, the workers retain the right under section 31 of the Industrial Relations Ordinance 2002, to go on strike providing due notice to their employer within seven days, and the employer has the right declare a lock-out after the delay of notice of conciliation has expired. The party raising a dispute retains the option, at any time, either before or after the commencement of a strike or lockout, to make an application to the Labour Court for adjudication of the dispute. Where a strike or lock-out lasts for more than fifteen days, if it relates to a dispute which the Commission is competent to adjudicate and determine, the Federal and/or the Provincial Government may, by order in writing, prohibit the strike or lock-out at any time before the expiry of thirty days, provided that the continuance of such a strike or lock-out causes serious hardship to the community or is prejudicial to the national interest. In such case the Federal Government or the Provincial Government shall forthwith refer the dispute to the Commission or the Labour Court. After hearing both parties, the Commission, or the Labour Court shall make such award as it deems fit, as expeditiously as possible but not exceeding thirty days from the date on which the dispute was referred to it. Under section 32 of the IRO 2002, if a strike or lockout occurs within the public utility services sector the Federal Government and the Provincial Government may, by order in writing, also prohibit its occurrence at any time before or after the commencement of the strike or lockout. No party to an industrial dispute may go on strike or declare a lockout during the course of conciliation or arbitration proceedings, or while proceedings are pending before the Labour Court. In addition, the National Industrial Relations Commission (the Commission), adjudicates and determines industrial disputes to which an industry-wise trade union or federation of such trade unions is a party , as well as disputes which are of national importance. The Commission also deals with cases of unfair labour practices. 44

Settlement of Individual Labour Disputes • Pursuant to Article 46 of the IRO 2002, a worker may bring his or her grievance in respect of any right guaranteed or secured by or under any law or any award or settlement to the notice of the employer in writing, either him or herself or through the shop steward or Collective Bargaining Agent, within one month of the day on which cause of such grievance arises. The IRO 2002 reduces the delay from three months to one month. Where a worker brings his or her grievance to the notice of the employer, the employer must within fifteen days of the grievance, communicate his or her decision in writing to the worker. • If the employer fails to communicate a decision within the specified period or if the worker is dissatisfied with such decision, the worker or shop steward may take the matter to the Labour Court within a period of two months. 45

Labour Courts • Section 33 of the Industrial Relations Ordinance, 2002 permits any CBA or any employer to apply to the Labour Court for the enforcement of any right guaranteed or secured by law or any award or settlement. The Provincial Government derives its authority to establish as many Labour Courts as it considers necessary under section 44 of the Ordinance. Each Labour Court is subject to jurisdictional limitations derived by its geographical parameters or with respect to the industry or the classes of cases allocated. Each Labour Court consists of one Presiding Officer appointed by the Provincial Government. 46

Collective Labour Disputes • • • Commencement of a dispute Under the IRO 2002, if an employer or a Collective Bargaining Agent finds that an industrial dispute has arisen or is likely to arise, they may communicate their views in writing to the other party. Upon receipt of the communication, the other party has fifteen days (or more if agreed) to try and settle the dispute by bilateral negotiations. Conciliation If the parties do not manage to reach a settlement, the employer or the CBA may, within fifteen further days, serve a notice of conciliation on the other party, with a copy to the Conciliator and to the Labour Court. If the dispute is settled before the Conciliator, or a tripartite Board of Conciliators, a report is sent to the Provincial or Federal Government, with the memorandum of settlement. Arbitration If the conciliation fails, the Conciliator tries to persuade the parties to refer their dispute to an arbitrator. If they agree, the parties make a join request in writing to the arbitrator they have agreed upon. The arbitrator gives his or her award within a period of 30 days or a period agreed upon by the parties. The award of the arbitrator is final and valid for a period not exceeding two years. A copy of the award is sent to the provincial or Federal Government, for publication in the official Gazette. 47

The Labour movement in Pakistan: Cognizant of the Quranic Injunctions on dignity of Labour and equality of human beings. Taking pride in the sayings of the Holy Prophet (Peace be upon him) that “A worker (he who works with his own hands) is a Friend of God” and “That all human beings are at par whether rich or poor, master or servant” (employer or employee). Noting that Islam considers a worker as a benefactor of the world economy. 48

PWF • Pakistan Workers' Federation (PWF) is the single largest national trade union center in Pakistan currently has eight regional offices in the four provinces of Pakistan with an affiliation of 419 unions and a membership of more then 880, 000 workers nationwide representing the majority of unionised workers since Oct 2008 49

Labour Rights in the Constitution • The Constitution of Pakistan contains a range of provisions with regards to labour rights found in Part II: Fundamental Rights and Principles of Policy. • Article 11 of the Constitution prohibits all forms of slavery, forced labour and child labour; • Article 17 provides for a fundamental right to exercise the freedom of association and the right to form unions; • Article 18 proscribes the right of its citizens to enter upon any lawful profession or occupation and to conduct any lawful trade or business; • Article 25 lays down the right to equality before the law and prohibition of discrimination on the grounds of sex alone; • Article 37(e) makes provision for securing just and humane conditions of work, ensuring that children and women are not employed in vocations unsuited to their age or sex, and for maternity benefits for women in employment. 50

• [edit] Labour Legislation • Pakistan’s labour laws trace their origination to legislation inherited from British colonial rule. The laws have evolved through a continuous process of trial to meet the socio-economic conditions, state of industrial development, population and labour force explosion, growth of trade unions, level of literacy, Government’s commitment to development and social welfare. To meet the above named objectives, the government of the Islamic Republic of Pakistan has introduced a number of labour policies, since its independence to mirror the shifts in governance from martial law to democratic governance. 51

List of trade unions in Pakistan • • • All Pakistan Federation of Labour All Pakistan Federation of Trade Unions All Pakistan Federation of United Trade Unions All Pakistan Trade Union Congress All Pakistan Trade Union Federation Pakistan National Federation of Trade Unions Pakistan Workers' Federation Karachi Dock Labour Board Kissan Board Pakistan Federal Union of Journalists Pakistan National Federation of Trade Unions Pakistan Workers' Federation 52

• Determined to work together to promote and protect their rights by creating “Pakistan Workers Federation” initially through merger of three national centers of Pakistan, namely: All Pakistan Federation of Trade Unions (APFTU), All Pakistan Federation of Labour (APFOL) and Pakistan National Federation of Trade Unions (PNFTU). These Federations would stand dissolved and cease to exist from the date when National Executive Board of the newly formed Pakistan Workers Federation would be established. As a second step, work for the eventual one united voice of working men and women of Pakistan by seeking the merger of other non affiliated unions and federations with the PWF. 53

• Labour & Manpower Division • Ministry of Labor & Manpower is mandated to perform the functions broadly related to policy formulation regarding labor administration manpower planning and employment promotion. As the subject of labor and employment under the Constitution of the Islamic Republic of Pakistan, 1973 is on the concurrent legislative list, the Ministry functions in close coordination with the Provincial Governments in these fields. Please visit the web site of the Labour & Manpower for a more comprehensive and detailed information about its Policies, Publications, Information and Services, Forms, Tenders, Jobs, News & Press Releases, and Related Links. 54

• • • • Departments Central Inspectorate of Mines (CIM) Directorate of Dock Workers Saftey (DDWS) Directorate of Workers Education (DWE) Implementation Tribunal for Newspaper Employee (ITNE) Labour Market information system and Analysis unit National Institute of Labour Administration Training (NILAT) National Talent Pool (NTP) National Training Bureau (NTB) Overseas Employment Corporation Overseas Pakistanis Foundation Pakistan Manpower Institute (PMI) Workers Welfare Fund (WWF) 55

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