LAHORE: The Punjab Labour Code 2024 has sparked widespread opposition from almost all major labour organizations in the province, which think that the new regulations would violate workers’ rights.

The labour groups term the code a move that undermines job security, legalises exploitative labour practices and imposes restrictions on unions. They vow to launch a resistance movement if the government tries to implement the code unilaterally.

The Punjab Labour Code 2024 was introduced as an attempt to consolidate various labour laws enacted between 1923 and 2023. However, labour organisations argue that the new code goes beyond consolidation as it effectively diminishes workers’ rights and protections.

The most significant points of contention include the legalisation of the contract labour system, restrictions on trade unions, the abolition of the right to strike and provisions that could legitimise child labour.

They say the code abolishes right to protest, formation of unions

Hanif Ramay, the coordinator of the Labour Alliance, has expressed deep concerns over the new code.

“The Punjab Labour Code 2024 is not about protecting workers but it’s about stripping them of their fundamental rights. It not only legalises the contract system, which will lead to the elimination of job security, but also provides legal cover to the advance payment (Peshgi) system in the kiln industry, a practice that has historically led to bonded labour.”

One of the most alarming aspects of the new labour code, according to Ramay, is the restriction on the formation of trade unions. The code limits workers’ ability to organise at the sector level and imposes severe limitations on their right to strike.

“Trade unions are essential for protecting workers’ interests but the new code is designed to weaken them. If this code is implemented in its current form, it will turn industrial and commercial establishments into bonded labour camps,” says Ramay.

Speaking to Dawn, he highlighted the code’s failure to guarantee the unconditional right of workers to form unions and elect their collective bargaining agents. He urged the government to reconsider the code and convene a tripartite meeting, including representatives from both employers and employees, to ensure that the rights of workers were not compromised.

The labour organizations are particularly concerned at the code’s complexity. With 467 sections spread over 315 pages, the code is seen as overly complicated, making it difficult for workers to understand their rights. Various sections of the code are interdependent, requiring readers to constantly cross-reference different parts of the document, further complicating the interpretation of the law.

One of the most controversial provisions is the code’s definition of ‘worker,’ which encompasses employees, contractors, subcontractors, self-employed individuals and those in supervisory roles. This broad definition has led to confusion about who qualifies as a worker and what rights they are entitled to under the new code. Similarly, the definition of ‘employer’ raises concerns about whether the workers provided by third parties or employment agencies will have any direct employment relationship with the principal employer, leaving them vulnerable to exploitation.

The labour organisations are also critical of the provisions related to child labour. The code raises the minimum age for employment to 16 years, which, according to the labour groups, will double the volume of child labour in the province as it fails to provide adequate educational and training facilities for children below that age. Additionally, the code introduces presumptions about child labour, particularly in informal sector like brick kilns and home-based work, which, the labour groups believe, will only worsen the situation.

In a formal letter addressed to the secretary of the Punjab Labour & Human Resource Department, the leaders of the Labour Alliance expressed their outright rejection of the draft code and demanded its immediate withdrawal. The alliance has also hinted at escalating their protests if their concerns are not addressed.

The Labour Alliance, representing various unions and workers across the province, has emphasized its commitment to social dialogue within a tripartite framework that includes the government, employers and workers’ representatives.

They believe that any legislation, including the Punjab Labour Code 2024, must be developed with section-by-section consultation with workers’ representative organisations as required under the International Labour Organisation (ILO) conventions.

Published in Dawn, August 20th, 2024