Overview of Evolution of the industrial relations system in Pakistan

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WelcomeTO THE PRESENTATION
Evolution of the industrial relations system in Pakistan

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IndustrialRelationsA regulatory system or mechanism that governs workplace relations
Industrial relations establish
relations & rules which enhance
and produce efficiency,
productivity and excellent work,
promote trust, cooperation by
reducing conflicts between
employer and employees.
Labor Market : A market in
which workers compete for jobs
and employers compete for
workers on wage rate basis.
A Question?
Who is the key player in
establishing the industrial
relations system?
Government?
Employers and the Workers
No

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ThePakistanScenarioAs industrial sector is increasing, role of industrial relations is increasing in Pakistan.
Trade unions centered on personalities.
Very few of them attempt to organize at
root level. But prefer to compete for loyalty
enterprise base unions. (reason of
instability).
Limit of members was 2,000 members.
Now it is 135 union members for each .
International Confederation of Trade Unions
(ICFTU)
Three affiliates of ICFTU were merged in
Pakistan Workers Federations (PWF) in
September 2005
Before Independence
The feudal system prevalent in the country
The hostile and feudal attitude of employers
In-active role of government
Pakistan remains mostly under Military rule
after independence
Anti-trade union attitude
Pakistan Workers’ Federation (PWF)
A single nation wide workers unions in
Pakistan.
PWF point out the following impeding factors

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ThePakistanScenario
Retrogressive’ labor legislation brought all
the national federations under one umbrella
to develop and maintain unity by forming a
Joint Labor Council.
The countrywide strike call of March 1969
led to the shutdown of electricity supply in
major cities for two hours in the evening.
Pakistan Tripartite Labor Conference
(PTLC) was convened in 1969.
This conference give two benefits to the
labor force
1. Concept of Industrial Relations
Ordinance 1969
2. Electing Collective Bargaining Agent
through secret ballet elections

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StepsTakenbyPakistanGovt.
The Pakistan Decent
Work Country
Program (PDWCP)
2005
Cabinet approved the
Labor Inspection Policy
Labor Protection Policy
2006
National Employment
Policy (NEP)
2007
Millennium
Development Goals
and Decent Work
Together
2008
Employment
and service
conditions act
(ESCA)
2009

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LaborMarketIndicators
Labor force participation rate
Employment-to-population ratio
Status in employment
Employment by sector
Part-time workers
Hours of work
Employment in the informal
economy
Unemployment
Youth unemployment
Long-term unemployment
Unemployment by educational attainment
Time-related underemployment
Inactivity rate
Educational attainment and illiteracy
Manufacturing wage trends
Labor productivity and unit labor costs

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LaborMarketIndicatorsPopulations of Pakistan
155.37 million
Growth Rate 1.09%
Annually
2005-06
Population Age Group
30% Below 10
Years old
12.9% 10-14
years old
Growth rate increases due to
LFPR
Populations of Pakistan
160.9 million
Growth Rate 1.8%
Annually
2007-08
45.2% 10 Years
and above
Growth rate of child labor
increases due to
Populations of Pakistan
163.76 million
Growth Rate 1.73%
Annually
2009-10
45.2% 10 Years
and above
Growth rate of 10 Years &
above remain same but female
labor force participation was
increased.

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LaborMarketIndicatorsPopulation 177.7
Million
Growth Rate 2.05%.
2010-11
Population 2010-11 Employed Un-
employed
Total 57.24 M
53.25 M 3.4 M
Male 68.7%
Female 21.7%

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LaborMarketIndicators
2010-11
Indicators From To + or -
Labor Force 56.33 (Million) 57.24 Million + 0.91
Minimum Wage Rate Rs/- 7,000 Rs/- 8,000 + 1,000
Employed People 53.21 Million 53.84 Million + 0.63
Unemployed Rate 5.6% 6.0 + 0.4
Agriculture Sector 44% 45% + 1.0%
Industrial Sector 13.2% 13.7% + 0.5%
Wholesale and retail 16.3 16.2 % - 0.1%
Community / Personal 11.2% 10.8% - 0.4%

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RoleofInformalSector&
PakistanGovernment2010-2011
Employs 73.8 percent of
total labor force in 2010-11
Particulars
2010-11
Million
0.45 Million
Skilled 0.17
Un-skilled 0.20
Semi-skilled 0.073
Highly skilled 0.0030
High
qualified
0.0069

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EmploymentsharedbySectors
45.1
13.7
7
16.2
5.1 10.8
2.1
Sectors
Agriculture
Manufacturing
Construction
Wholesale
Transport
Community/Personal
Others

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36.2
75.4
Agriculture Sector
(out of 100)
Male Female

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14.5
10.9
Manufacturing Sector ( out of 100)
Male Female

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8.9
0.2
Construction Sector both (from 100)
Male Female

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20.4
1.6
Wholesale Sector both (from 100)
Male Female

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6.6
0.1
Transport Sector both (from 100)
Male Female

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10.8
11.4
Community / Personal Sector both (from 100)
Male Female

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2.6
0.3
Others Sector both (from 100)
Male Female

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LaborForceExpansion
Policies
Micro Credit Facilities
President’s Rozgar Scheme by
National Bank of Pakistan (NBP)
National Vocational and Technical
Education Commission
(President’s Funnee Maharat
Program and the Prime Minister’s
Hunarmand Pakistan Program)
Skill Development Councils
Overseas Employment
Information Technology
National Internship Program
Investing in Increasing Water
Resources

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NewFormsofEmployment
&AreasofConcern
The economic, social and political environment have great
affects on labor-management relations.
Labor force remain in the form of unions, management
committees, and collective bargaining agents.
In Pakistan, the employment is considered as the employee is
having regular, casual, piece rate or apprenticeship .

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NewFormsofEmployment
&AreasofConcern
5627
16
1
Employees %
Regular
Casual
Piece Rate
Apprentice
Sectors
Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Service

26
21
51
97.5
6.5
70
60
89
86
Regular % Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Services
42
49
16
2
76
19
28
7
8
Casual % Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Services

31
30
31
0.5
17.5
10
11 3
5
Piece Rate % Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Services
1 0
2
0
0
1
1
1
1
Apprenticeship % Agriculture
Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Services

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Explanations
Regular Employees Piece Rate Employees Apprentices
56 % employees have regular work
mostly in
Finance, services, trade, agriculture
and mining.
Every third employee out of 100 is
engaged in piece rate employment in
agriculture, manufacturing, mining
sectors.
Proportion of apprentices is
insignificant, the maximum being 2
per cent of the employees in
manufacturing.

Pakistan 1999-
2000
2001-
2002
2003-
2004
2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
2010-
2011
Labor Force Participation Rate 50.4 50.5 50.7 53.0 52.5 52.5 53.1 53.5 53.4
Employment-to-population ratio 46.8 46.5 47.0 49.7 49.8 49.9 50.3 50.7 50.4
Unemployment rate 7.2 7.8 7.4 6.1 5.1 5.0 5.2 5.3 5.7
Share of industry in total EMP 18.2 21.0 20.6 21.2 21.4 20.6 21.0 21.4 21.8
Share of agriculture in total EMP 47.8 41.1 41.8 41.6 42.0 42.8 43.3 43.4 43.5
Share of services in total EMP 34.0 38.0 37.6 37.1 36.6 36.6 35.7 35.2 34.7
Share of EMP in the informal
economy
65.0 63.8 69.4 72.3 71.5 72.4 73.0 72.9 73.5
Selected key indicators of the labor
market (%)
Both Male and Female

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CONCLUSION
Less wages, less remunerative
services with excellent, quality
and productive work badly
affects a significant portion of
employed labor force.
Similarly, poor working in
significant place of work also
increase the cost but produce
nothing.
Changing employee patterns
affect industrial relations.
As show in the charts, the
regular workers are replaced
by casual and piece rate
workers. This is due to cost
minimization strategy which
is adopted by employers.
Another factor is
telecommuting which remove
the boarders and increase the
level of globalization.
Freelancers and outsourcers
are available at just one
click, no need of establishing
business, office, etc , also
negatively affect the labor
force participation
Work force is not organized in
industrial units. Recent
barriers of electricity, gas
also affect negatively the
production. Ultimately, when
the production rate is zero, or
equal to zero, employers will
fire the labor due to zero
production. This action will
increase the unemployment
rate and also many social
evils will produce.
This transformation has led
to increasing inequality of
income, poverty, and
insecurity.

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Overview of Evolution of the industrial relations system in Pakistan

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