Sabir and Shama, a typical working class couple, cut the discussion short about their jobs, which they find to be hard, boring and unrewarding.

They shared sad tales and felt they deserved better. “I often wonder what I did wrong to get such a raw deal,” Sabir muttered in dejection during an informal chat in his two-room quarter in Korangi, a locality adjacent to the Landhi industrial area in Karachi.

Sabir, 45, switched many jobs and has intermittently been unemployed for three years over the past 25 years. He is currently working as a messenger for a private bank under a labour contractor. His wife, Shama, 38, a mother of four children aged 7-14, works in the packaging department of a local drug company. The regular family income is Rs25,000.

‘The effects of labour mismanagement are not limited to the working masses but encompass the whole economy, in terms of loss of productivity’

The couple’s eldest child is invalid and is looked after by Sabir’s mother. The other three are school going. Sabir admitted he used to be bitter, but has now resigned to his fate.

“After all is said and done, we are actually better off than most our peers. We get pay checks every month. Though it is another thing that not much is left after rent, settlement of credit at the grocery store, payment of utility bills and the children’s fees,” Shama said, vainly trying to sound positive.

The family is not covered for health or emergencies. They admitted that their hectic work life leaves them little time and energy to tend to children, specially the eldest who needs special care.

This is the story of an urban working class family employed in high-performing sectors.

Sabir works for a bank. The banks have reported profit growths of 20-30pc for the nine months of this fiscal. They offer astonishing pay packages to their hierarchies. Bank presidents and CEOs receive tens of millions of rupees every year in overall compensation. Is it then fair to pay as low as Rs100,000 a year to anyone working for the same entity? Does wage disparity matter?

Shama works for a pharmaceutical firm. The local drug sector has also been doing well. After posting double-digit growth for over a decade, it appears to be consolidating massive gains. The companies’ good fortunes are reflected in their production and export records. While it is their choice if they decide to list in the capital market or not, should they be allowed to treat their workers any way they want? Can their social initiatives compensate for their bias against workers?

Khawaja Muhammad Nauman, president of the Employers Federation of Pakistan, did not defend what he called a ‘self-defeating attitude’ in business.

“I can’t condone greed and irresponsibility. Yes, companies need to treat their employees fairly to improve their labour productivity to achieve competitiveness,” he made an economic case.

“Most firms in the formal sector invest in workers’ training and other intangibles, contribute 2pc of their profit to the Workers Welfare Fund, pay into the Employees Old Age Benefit Institution, and support various social causes. Ask the government how it uses the billions in WWF,” he said.

“Yes, contractual labour is not covered by the standard benefits. But before painting all businesses black, it needs to be understood that they were nudged towards contractors in order to cut costs. It is hard to compete when the policy framework promotes trading at the cost of industry,” he argued.

A labour economist found the situation alarming. “The one word that best describes the labour scene is chaos. There is misery, injustice and government apathy. The cycle of trust deficit and infectivity feed each other and have brought trade unions to the brink of extinction. The effects of labour mismanagement are not limited to the working masses but encompass the whole economy, in terms of loss of productivity and competitiveness,” she said.

The devolution of labour affairs has not brought about the required change. Five years after the 18th Amendment, the provinces are still struggling with capacity-building. “The legal framework of labour management is archaic. Sindh has developed an updated version of 17 relevant laws, which will soon be presented to the chief minister before being tabled in the provincial assembly for approval,” Gulfam Memon of the Sindh labour department told this scribe over phone.

Zahoor Awan, President of the Pakistan Workers Federation (PWF), blamed corruption and high unemployment for weak trade unions. “The employers collude with the government to discourage unionisation.”

According to the Economic Survey of Pakistan 2013-14, the country has the 9th largest labour force in the world, numbering 57.24m people as per the labour force survey 2010-11.

The Planning Commission’s policy document ‘Framework for Economic Growth’ five years back mentioned the findings of the Asian Productivity Organisation, but nothing substantial was done to address the issue. The adoption of the Decent Work Country Programme (DWCP) 2010-15 did not deliver much in the absence of the required legal framework and efficient governance.

Commenting on the situation by e-mail, Francesco dO`vidio, the ILO Country Director for Pakistan, said: “The task is challenging, but the government will have to address issues related to labour inspection, occupational safety and health, non-discrimination and extension of social protection to all workers”.

In his view, “remarkable progress has been made in the fight against child labour, the elimination of bonded labour and the creation of unions in complex activity sectors like agriculture, fishing and domestic work”.

“The rampant informal economy (74pc) precludes access to unions to many workers, as the unions are not equipped to penetrate the informal labour market. Currently, the ILO is supporting the PWF to extend its protection to the informal and other activity sectors not yet covered.”

Published in Dawn, Economic & Business, May 4th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play