Inept reform

Published March 7, 2014

IT has been a year since the Sindh Industrial Relations Act (SIRA) 2013 was passed. The law’s purpose is “to regulate formation of trade unions and trade union activities, relations between employers and workmen and the avoidance and settlement of any differences or disputes arising between them.”

Legislators believe this objective can be achieved by having frequent interaction between representatives of employers and workers. In order to facilitate ties between the two, a number of forums have been prescribed under this act.

The most significant amongst them is the forum of the collective bargaining agent (CBA) — the representative union in an organisation.

Besides the CBA there are the forums of shop stewards and the workers management council in an industrial and commercial establishment. The constitution and structure of the judicial forums of the labour court and the labour appellate tribunal has also been laid down.

In January 1972, the first PPP government prompted industrial workers to fight with employers for their rights and added the forums of shop steward, management committee (MC) and the joint management board (JMB) in the then-applicable Industrial Relations Ordinance (IRO), 1969.

The shop stewards acted as a link between labour and management and represented every shop, section or department of the establishment.

In addition, the judicial forum of the National Industrial Relations Commission (NIRC) was constituted in 1972, which was headed by a senior judge. The NIRC was given vast powers to impose strict punishments, including imprisonment for those employers and unions who were found guilty of committing unfair labour practices.

Workers’ representatives in the works council (WC), MC and JMB were nominated by the CBA and elected by the workers in those organisations where there was no CBA. Prior to 1972 only the effective forum of the WC existed, which helped employers maintain good relations with their workforce. It also promoted the security of employment for workmen and conditions of work safety, health and job satisfaction.

Because of the overlapping functions of the CBA, MC and JMB, it became wasteful and purposeless for employers to maintain the last two forums. The management could not take any decision in certain matters without advice in writing by workers’ representatives in the managing committee.

These included: (i) the framing of service rules and policy on promotion and discipline of workers; (ii) changing physical working conditions in the factory; (iii) in-service training of workers; (iv) recreation and welfare of workers; (v) regulation of daily working hours and breaks; (vi) preparation of leave schedule; and (vii) matters relating to the order and conduct of workers within the factory.

The joint management board was to look after some matters: (a) improvement in production, productivity and efficiency; (b) fixation of job rates; (c) planned regrouping and transfer of workers; (d) laying down the principles of remuneration and introduction of new remuneration methods; and (e) provision of minimum facilities for such of the workers employed through contractors that were not covered by the laws relating to the welfare of workers.

Failing to understand the limits of power and authority given to them by the government in 1972, industrial workers made their employers’ lives miserable. They forcibly took over the administration of some factories and ousted the management staff. No employer would like his union or its representatives to interfere in most matters brought within the purview of the MC and JMB. CBAs, on their part, are inclined to include all matters related to governance of the organisation in the charter of demands for negotiations with employers for improvement in the terms and conditions of employment.

Hence they were also reluctant to compromise on their control and dominance by delegating the authority to their nominees in the MC and JMB. Consequently, despite the best efforts of progressive employers, they could not operate the forums of MC and JMB. Taking advantage of the situation, labour inspectors would harass these employers for non-compliance with the law. The employers of industrial and commercial establishments expected that the government would omit through an amendment the forums of MC and JMB, having overlapping and superfluous functions, while promulgating the SIRA, 2013.

Instead of omitting them, however, they have been added to the useful forum of the workers management council in SIRA 2013, making it impossible for employers to even manage the latter forum effectively with altogether 18 functions.

In the interest of wise and congenial industrial relations and keeping past experience in mind, there is a dire need to confine the functions of the WMC to those laid down in IRO, 1969, and delete all the other functions.

The writer is an industrial relations professional.

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