LABOUR POLICY, 2002 is the fifth one that has been approved on September 21 by the federal cabinet during the fourth military regime. Out of the remaining four earlier labour policies, two were also announced by military regimes, respectively in the years 1959 and 1969.

The Labour Policy, 1972 announced by Mr Z. A. Bhutto and of 1955 announced by Dr Abul Malik were the ones given by the political/ civilian governments. Even Mr. Z. A Bhutto announced his labour policy when he was the president and the civilian chief martial law administrator and that was due to his party’s commitment under its manifesto to improve the lot of the working people. But no political government of Mr Nawaz Sharif and Ms Benazir Bhutto and the military regime of General Ziaul Haq succeeded to give an express labour policy of their governments. The first labour policy of 1955 given by a civilian government had remained a dead letter or merely a paper policy and that was due to the fact that priorities at that time were different and political governments were changed rapidly owing to instability of the political system.

General Ziaul Haq’s regime became sensitive to the pro-labour measures adopted by the governments of Mr Z. A. Bhutto and General Yahya Khan under their respective labour policies. He held two Pakistan tripartite labour conferences in the years 1977 and 1980 and constituted a labour commission in 1978 to make recommendations to resolve controversial industrial relations issues. He wanted to reverse the pace set by the labour policy of 1969 announced by Air Martial (r) Noor Khan and the labour policy of 1972 by Mr Z.A. Bhutto. But his government could not succeed in its efforts, because when General Ziaul Haq placed the proposed labour policy before the PTCL of 1980, a deadlock was created. The labour leaders of the country outrightly rejected the move.

Being critical of the situation arising out of the administration of Labour Policy of 1959, announced by Lt. General Burki, the labour minister in the government of Field Marshal Ayub Khan, the foreword to the Labour Policy of 1969 by Air Marshal (r) Noor Khan expressly underscored that the environment in which the conflict inherent in a worker-employer relationship can peacefully be resolved, did not exist, The labour policy by him also pointed out that previous labour policies had failed because adequate machinery for their implementation had not existed. His policy thus resulted in the strengthening of labour inspectorates with the promulgation of the following labour laws:

* The Industrial Relations Ordinance, 1969;

* The West Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969;

* The Workers Welfare Fund Ordinance, 1971.

These drastic measures set out new trends for the labour based on freedom of association; collective bargaining; fixation of minimum wages and labour welfare. The criticism of the Labour Policy of 1959 announced during the regime of Field Marshal Ayub khan, however, was not all fair. The latter policy had culminated, though with limited scope, in the promulgation of important labour legislation viz:

* The Road Transport Workers Ordinance, 1961;

* The Provincial Employees Social Security Ordinance, 1965;

* The West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968;

* The Companies Profits (Workers Participation) Act 1968; etc.

This legislation coupled with unprecedented industrial growth put the country on a track to development.

The Labour Policy, 1972 by Mr Z. A . Bhutto was for increased labour reforms,including new infrastructure that was set up for administration of new laws,viz. Workers Welfare Fund Ordinance; Employees Old Age Benefits Act; Industrial Relations Ordinance with enhanced protection of workers rights like imposing condition on the authority of employer to terminate workers simpliceter. The scope of labour laws was enhanced and benefits like increased profit-sharing, statutory bonus, group insurance scheme, group incentive scheme, etc. were guaranteed.

This policy was bitterly criticized by the entrepreneurs who started lodging complaints with the government about indiscipline and low productivity of labour and militant trade union activities.

The failure of Mr Nawaz Sharif and Ms Benazir to bring out their governments’ labour policy was in fact their attaching to it less priority and lack of interest and commitment to industrial relations issues. Their teams seem to have been unsuccessful to convince them about the importance of good industrial relations to serve as a corner -stone for economic and industrial development. Their government remained stuck up with the exercise to resolve the so-called controversial issues, artificially created by vested interests in the environments having been developed as a result of considerable labour reforms with balance of convenience in favour of workers, announced during the period: 1969-76, covering the labour policies of 1969 and subsequent labour legislation.

In the wake of increasing trade unionism in the country the employers started resisting the role of non-employees (outsiders) in the executives of trade unions and became susceptible to the legal provisions about employment security of workers which resulted in managerial practices resorting to casualisation of workers even on jobs of permanent nature. Despite predominantly prevailing industrial peace in the country over a considerable period of time and living together for about three decades with the changed system by both the parties ( workers and employers ), employers did not give up raising their voice on these issues.

The other factor that acted counter-productively for strong bilateral industrial relations was the increasing legislative intervention in the form of multiplicity of labour laws. The overlapping character of labour legislation was also noted by ILO Sectoral Review Mission in its report as early as in 1986. While realizing the pressing need of comprehensive revision and codification of the labour laws in Pakistan, the Mission had recommended the updating, harmonization and simplification of the legislation.

The government of General Pervez Musharraf, since its coming into power, has acted reasonably in addressing these issues and so shifted the emphasis, in consultation with stakeholders, to new strategies. The Labour Policy of his government is thus based the following approaches:

* strengthening bilateralism with least legislative and state intervention;

* empowering labour courts to order re-instatement of illegally dismissed workers or award reasonable compensation in lieu of re-instatement;

* integration of the system of labour courts with High Courts in appeal matters, which will help not only dispensation of justice more to the satisfaction of the parties but also help persistent development of law by the judiciary;

* creation of climate to allow room for emergence of internal trade union leadership while retaing the room for outsiders as at present. It will continue maintaining the sanctity of ILO Convention, 1987 ratified by Pakistan, permitting workers to freely elect their representatives;

* improvement of institutions responsible for administration of labour laws and allied disciplines; * Promotion of labour welfare by the employers through development of trust relationship with workers; * Gradual and systematic consolidation and rationalization of labour laws to meet present-day and future needs of the industry;

* extension and upgradation of vocational and industrial training programmes to meet the changes of globalization and avoidance of unnecessary redundancies.

If implemented in letter and spirit, the Labour Policy 2002 will provide a strong base for future industrial growth in the environment of good employer-employee relationship through the strategy of interdependence by employers and employees and their mutual trust.

Consolidation of existing labour laws through the process of rationalization and simplification is a priority concern of the GOP. This process is now to be accomplished in compliance with the commitment under the new labour policy. Currently, there are seventy labour enactments and above hundred rules and regulations in place. Most of the laws were enacted during post-independence period. The multiplicity of labour laws resulting from unplanned and quick decisions in the past has now become a serious problem for implementing agencies, workers and employers. Even investors took note of the situation and made it a factor for not coming forward to invest in the industrial sector.

Consolidation and rationalization of labour laws is a difficult and time-consuming process. It needs to be carried with full care and by having a comprehensive input from researchers, provincial governments, implementing agencies, entrepreneurs and trade union organizations to make the new laws more viable and lasting. No new law should in any way affect adversely cohesion and binding force of the society. The new laws should rather guarantee strengthening binding values of social and economic systems of the country. The consolidation and rationalization can advisably be carried through the process of merger, deletion and repeal of unnecessary legislation by fully identifying the needs of industrial society.

The consolidation and rationalization of the laws relating to labour welfare and social insurance however will require further policy decision in as much as to whether labour welfare and social insurance institutions like EOBI, PESSI’s, WWF etc. will be federalized, provincialised or disinvested. Despite criticism from certain quarters these welfare organizations have played an important role in providing to the labour a suitable social safety net and so these are required to be kept in place but should also be further strengthened. What is needed is to introduce a comprehensive social insurance and social security scheme for the society at large on the lines such schemes are in vogue in other welfare states. It would in any way be desirable to ensure that restructuring of labour laws does not create any problem for the industry. Restructuring should, therefore, be gradual, fully considered and rationally done.

Technology is undergoing a rapid change. Pressure of globalization is increasing day by day. Investor has his own priorities. Management style is changing. Unions are expected to play more constructive role. There are indigenous needs. There are external pressures due to international commitments. Communication is increasing. Industrial relation systems of the world are undergoing change. Out-dated labour laws, multiple in number, ought to undergo considerable change to resolve genuine problems of workers and the industry. The government’s current Labour Policy and its commitment to the consolidation, simplification and rationalization of labour laws is very timely.

The following are some of the suggestions:

* Law on industrial relations has already been thoroughly revised in consultation with all stakeholders. What is required is to invoke its bipartite and participative character more vigorously to foster trust relationship between employers and employees.

* The law on wages should state determination of wage system by the organization concerned in consultation with workers or through collective bargaining. The government power should better remain confined to fixation of wages of workers in small and unorganized sector. Authority must, however, be appointed to ensure timely payment of wages without any unauthorized deductions.

*The law on conditions of employment should apply to all employment sectors laying down minimum standards and basic principles to deal with employment matters. The right to determine service benefits should rest with the organization concerned according to its objective conditions and economic viability.

* The Factories Act, the Mines Act, the Shops and Establishment Ordinance, the Railways Act (Chapter VI-A),the Workmen Compensation Act and every law with relevant provisions be consolidated in the shape of a generic law to be named as law on occupational safety and health which should apply to all economic sectors. General principles and standards should be laid down in the enacting part and industrywise regulations should be appended according to their needs and requirements. The appointment of judicial authority to award compensation in case of accidents and deaths should also be provided in the same law. This law should be fully in conformity with international labour standards. It would be advisable for Pakistan to ratify ILO Convention 155 in this regard. The subject of occupational safety and health needs to be given the highest priority to improve working environment and ensure safe working conditions in industry in Pakistan.

* Instead of having a law on HRD, which being a vast subject does not fit to the consolidation of certain labour laws in this regard, it would be proper to re-enact the law relating to apprenticeship to meet the present day requirements.

* An enabling provision be laid down in the law regarding conditions of employment requiring also companies, firms and industries to evolve their labour welfare and social insurance systems in consultation with their workers organizations. It would ultimately help to deal appropriately with laws relating to labour welfare and social security.

* Consolidation should be carried meaningfully by re-enacting laws coherently. The out-dated laws and the laws, which have lost their utility or usefulness, be repealed.

*Credit goes to the present government for breaking the ice in bringing a comprehensive labour policy after about thirty years, with the promise to restructure labour legislation on sound footings to meet not only the present time needs but also the challenges of globalization and changing technologies. The Ministry of Labour deserves appreciation for a job that has been accomplished.The late Mr Omar Asghar Khan, the former Federal Labour Minister, was able to prepare a way for the Labour Policy by holding 24th PTCL after 13 years and patronizing and supervising the initiatives of the ministry in this regard. His devotion to the cause of labour was unprecedented. A package of labour reforms announced during his time (April 30, 2001 ) was a prerequisite to the current labour policy.

The Labour Policy 2002 has been preceded by important developments in the form of National Policy and Plan of Action for Elimination of Child Labour (2000 ) and National Policy and Plan of Action for the Abolition of Bonded Labour (2001); and ratification ILO Conventions 100 and 182, both being core labour standards. All these measures have placed Pakistan in the comity of nations with progressive agenda on human rights.