MANAGEMENT of industrial relations (IR) is a critical part of the overall human resource function, and the personnel handling this area require specialised skills and a balanced disposition. Other HR-related tasks may well be managed by people with good experience in marketing, manufacturing or even finance, but IR requires persons who possess both knowledge of labour laws and effective interpersonal skills.

Entrepreneurs carrying out investment in manufacturing require a peaceful work environment in their factories so that they are able to concentrate on optimising output without any impediments. While the provision of appropriate infrastructure — unhindered supply of electricity, gas and water, and accessible roads — is the state’s responsibility, maintaining a peaceful environment within the industrial unit falls within the entrepreneur’s domain.

The 1960s saw the setting up of many industries in Pakistan, whereby the need was felt to have labour laws conducive to progressive industrial relations. It is ironic that two of the best labour laws the country promulgated came at a time when the era of industrial progress was coming to an end and challenges to manufacturing units had begun to escalate.

Managing industrial relations requires specific skills.

The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 was legislated to amend and consolidate laws relating to industrial employment in West Pakistan. It guaranteed a number of rights and obligations to both employers and workers, introducing the concept of decent employment for the latter. The ordinance made it mandatory for employers to issue appointment letters to workers and pay out their provident fund or gratuity on separation from employment.

The Industrial Relations Ordinance, 1969 was framed to amend and consolidate laws relating to formation of trade unions, regulation of relations between employers and workers, and the avoidance or settlement of any differences or disputes arising between them. It also provided for the procedure by which individual grievances could be resolved by the courts. This ordinance was tampered with a number of times by successive governments; however, it still remains the most relevant law for ensuring congenial industrial relations.

Persons assigned to manage IR in a factory should be capable of handling the union-management relationship amicably, have the ability to carry out and collate wage and benefits surveys of comparable companies, possess negotiation skills, have practical knowledge of labour laws and handling disciplinary issues, and be able to liaise with the company’s external lawyer for court cases. These traits may be developed through experience, including exposure to difficult situations, and possessing a desire to learn.

The real test of an IR manager’s skills comes when the ‘collective bargaining agent’ union submits its charter of demands to management for improvement in the workers’ terms and conditions of employment. This process is called ‘raising an industrial dispute’. The importance of a pending industrial dispute may be judged by the fact that, if bilateral negotiations between the CBA and management fail, followed by negotiations in the presence of a government-appointed conciliator, the union may resort to a lawful strike. Although IR managers are supported in this activity by senior management, everyone looks towards them for speedily negotiating and reaching a collective labour agreement amicably.

Various training courses on negotiation skills, labour laws and handling of disciplinary issues are organised by different institutions, most of which are Karachi-based. These are attended by those who are either new to IR or those with experience who want to keep themselves abr­east of recent developments in the field.

In order to make these courses meaningful and fulfil the needs of trainees, it is essential that the trainers themselves have quality experience of managing IR in reputable companies with manufacturing units. Tra­iners lacking such experience will be ignorant of trainees’ real needs and spend more time on subjects that need less time to be explained. For instance, organising a full-day workshop on wage laws is a waste of time and money for the trainees, and an exercise in futility, which may also be assessed by the following;

The Sindh Payment of Wages Act, 2015 provides the mode and time for payment of wages, and deductions that may be made from the wages. The Sindh Minimum Wages Act, 2015 and the Minimum Wages for Unskilled Workers Ordinance, 1969 prescribe the rates of minimum wages for various categories of workers, which are periodically revised by the respective provincial governments.

Industrial relations is a challenging field. Those who manage it should be equipped with the skills that facilitate them in redressing workers’ grievances effectively, handling relations with CBA, and maintaining continuous industrial peace in their respective organisations.

The writer is an industrial relations professional.

Published in Dawn, August 7th, 2017