Labour anomalies

PAKISTAN inherited 16 labour laws at the time of independence. These were crucial for managing industrial and commercial establishments. These were: the Workmen’s Compensation Act, 1923; Factories Act, 1936; Payment of Wages Act, 1936; Industrial Employment (Standing Orders) Act, 1946 and Industrial Disputes Act, 1947.

The first labour policy, described as ‘paternalistic’ by some, was announced in 1955 by the then labour minister. The policy expressed the government’s desire to raise the standard of living and working conditions of workers by providing them with social security through social insurance. The policy stipulated that factories would have proper standing orders and the system of works and consultative committees in the interest of efficiency and productivity.

Before the labour policy could be implemented, the country went through a constitutional crisis that led to the imposition of Pakistan’s first martial law in 1958. However, the martial law government came up with its own labour policy in February 1959. This policy was termed ‘legalistic’ and expected the employers to fully comply with labour laws and provide just and equitable treatment to workers and guarantee the protection of their rights under the laws and international labour standards. The policy also expected the workers to abide by the law.

None of the six labour policies could be implemented.
Following these, four more labour policies were developed and announced by successive governments in 1969, 1972, 2002 and 2010. In pursuance of the labour policy announced by the first PPP government in 1972, substantial changes were made in the Industrial Relations Ordinance, 1969, creating various fora primarily for discussions and decisions on matters relating to ties between the workers and their employers, working conditions and terms of employment. Besides three labour welfare laws were promulgated during the period 1972 to 1976 ie Workers Children Education Ordinance, 1972; Newspaper Emp*loyees (Conditions of Services) Act, 1973 and the Employees Old-Age Benefits Act, 1976.

Gen Zia suspended the PPP’s economic and labour policies and the country was without a labour policy from 1977 to 2001. Efforts were made during this period to develop an understanding among employers and workers on adopting a consensus labour policy but these endeavours were unsuccessful.

The last PPP government announced the sixth labour policy focusing on objectives of equitable adjustment of rights between workers and employers, an institutional framework to foster bilateral cooperation between them, ensuring advocacy for the rights of both, skills development and employment as well as manpower export. However, the subject of labour devolved to the provinces after the18th Amendment.

A review of the six labour policies indicates that none could be fully enforced and implemented due to political and other reasons. By virtue of the 18th Amendment, labour laws devolved to the provinces. Devolution was to be completed by June 2011. A total of 32 laws have been devolved until now.

Prior to the amendment, the centre would enact labour laws keeping in view the interests of stakeholders. An effort was made to facilitate the employers in the smooth operation of their establishments and at the same time protect workers’ rights. Some of the basic laws inherited at independence had provided a framework to legislators on which to base their amendments and new enactments. There was no other consideration other than a sincere desire to meet the purpose for which the laws were framed.

It is unfortunate that political considerations and vested provincial interests have crept into the sphere of labour legislation and devolution has gone haywire. The Employers’ Federation of Pakistan did an analysis of the revised provisions of laws devolved. The ano*malies observed have created significant differences in the application of the acts and disbu*rsement of benefits.

As many as 14 anomalies have been noted in the Industrial Relations Act, devolved to the four provinces and Islamabad Capital Territory. While private educational institutions and health centres have been included in the definition of industry in KP, the others do not consider them as industry. Similarly, there are differences in the definition of a ‘trade union’ and requirements for registration of a trade union.

The amount of compensation payable to a workman in case of death or total disablement now varies from province to province. Besides bringing about other changes, KP has made the appointment of a contract worker difficult for employers under the Industrial & Commercial Employment (Standing Orders) Act. By devolving the Employees’ Old-Age Benefits Act, 2014 and the Workers Welfare Fund Act, 2014 to the exclusion of other provinces, Sindh intends to collect huge funds from employers, to remain at its disposal. The centre should constitute a central body to restrain the respective provinces from going astray and safeguard the interests of workers and employers all over Pakistan.

Published in Dawn, February 14th, 2016