3. SCENARIO IN PAKISTAN:
Since independence, five labour policies have been announced by the government in the years 1955, 1959, 1969, 1972 and 2002, which laid down the parameters for the growth of trade unionism; protection of workers rights; the settlement of industrial disputes; and the redress of workers grievances. These policies also provided for compliance with international labour standards rectified by Pakistan.
Historically, the 1960s and the 1970s were a turbulent period in the history of Industrial Relations in Pakistan. Militant trade unions and equally intransigent management’s were locked in endless disputes conflicts over pay and working conditions. Strikes, go slows, lockouts and litigations were the most distinctive features of employer-employee relations. The concept of employers and employees working together in close cooperation to ensure productivity, profitability and growth of businesses and security of employment was largely non-existent. There was no realization that job security and appropriate wages were critically dependent on profitability and continued competitiveness of businesses.
The atmosphere of mutual hostility and distrust, though considerably diminished, continues to bedevil industrial relations to this day. As a consequence, both the entrepreneur and labour, in fact, the economy of the country as a whole have suffered greatly. But, perhaps, labour has suffered most on account of increasing unemployment and declining real wages as both public and private sector businesses have increasingly resorted to cutbacks, relocation, closure, contract employment and outsourcing in an effort to maintain profits and to counter pressure from trade unions. These difficulties have been compounded by exploding population and influx of Afghan refugees, which have further aggravated unemployment and depressed the job market.
The progressive globalization of economy is bringing forth even more formidable challenges and pressures. Successive governments, torn between conflicting desires for promoting welfare of the low-income classes and requirements of global competition, have had the unenviable task of balancing demands for better wages and decent competitiveness on the other while at the same time ensuring increased revenues.
Today, however, a different scenario is emerging. Sobered by the negative experiences of adversarial industrial relations over the past decade, trade unions are increasingly discarding militancy while employers are recognizing the need and benefits of co-opting labour as partners in productivity. Both employers and trade unions are progressively getting involved in bilateral dialogue as there is a growing realization that common interest of both employers and employees is best served by securing business profitability and growth. Enlightened elements within labour and employees organizations have come together to form the Workers Employers Bilateral Council of Pakistan (WEBCOP). WEBCOP emphasizes the need for an organized and sustained dialogue between employer and labour organizations based on bilateralism where the government adopts the role of a facilitator.
The constitution of Islamic Republic of Pakistan and international labour standards render definite obligations upon the Sate for the realization of human rights for all citizens, equally for men, women, young and old, Muslims and non- Muslims. In acknowledgement of these obligations, a new labour policy was formulated in 2002 (the first after 1972). This policy aims to guide administrative, legal and judicial actions of government, employers and workers in realizing labour rights and their welfare along with promotion of social justice. The government believes that such collective commitment to equity is necessary to achieve and sustain rapid economic growth in a globalized economy.