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The PPP government’s new labour policy 2010 – by Abdul Nishapuri

Consistent with its election manifesto, the PPP government has finally taken a step in the right direction by announcing a new labour policy (effective 1 June 2010). The policy comprises a number of appreciable elements in order to protect workers’ rights and to alleviate their economic and social hardships.

According to Prime Minister Gilani, the new labour policy “reflects the vision of Benazir Bhutto”. He said the policy would benefit around 50 million labourers, who were playing a key role in the development of the country. The prime minister praised President Asif Ali Zardari for “pursuing the labour-friendly policies”. (Source)

The policy is in line with the requirements of economy, employees and employers. The workers have been given the right to seek legal remedies against dismissal, while their basic remuneration and other benefits have been enhanced.

Key Features

We provide below a summary of key features of the new labour policy identified in various news reports:

– Rs 7,000 as the minimum wage for labourers – an increase of Rs 1,000 from Rs 6,000 from the previous year.

– all industrial, commercial and other establishments registered under any law would pay wages to employees through “cheques/bank transfer”;

– all contract employees in the public sector would be regularised within the “shortest possible time”.

– social insurance for old-age benefits and health services would be introduced on “self-registration/voluntary basis, to benefit all workers in the formal and informal sector of the economy, including self employed citizens.

– The registration of all workers would be linked with the smart cards being issued by NADRA.

– the entitlement age for old-age pension would be reduced from 55 years to 50 in case of mine workers.

– tripartite monitoring committees would be set up at the district, provincial and and federal levels to monitor the implementation of labour laws, particularly those dealing with the payment of wages, and the work environment and timings.

– A review board shall be established to consider the cases of such workers who had been dismissed under the Removal from Service (Special Powers) Ordinance, 2000.

– The government will ensure full adherence of labour laws and worker friendly environment in all establishments to promote decent work in the country.

– Matric Tech Scheme shall be introduced in all schools run by the Workers Welfare Fund to impart technical education to the students.

– A full-fledged Labour Market Information System shall be established with the creation of a Human Resource Centre in different cities.

– The survivors of a registered insured person under the EOB Act will be paid Survivors Pension without any condition of minimum insurable employment.

– The EOB Act will be made applicable to the contingent/project employees of such statutory bodies which are otherwise exempted under the provisions of the Act.

– Pension shall be enhanced with the enhancement of Government Servants Pension at the same ratio.

– The age of entitlement of old-age pension will be reduced from 55 years to 50 years in case of mine workers.

– All workers registered under the ‘Universal Registration Scheme’ of the EOBI would be eligible to benefit from the Workers’ Welfare Fund.

– Subject to recommendation by monitoring committees, dismissed or retrenched workers would be paid legal aid up to a maximum of Rs 15,000.

– The daughter of a labourer will be paid Rs 70,000 in stead of Rs 50,000 as Jahez Fund. Moreover, the heirs of those dying during service will be paid Rs3 lakh as compensation.

Source: Daily Times, The News, 2 May 2010

– Removal of the draconian labour laws by repealing the Removal from Services (Special Powers) Ordinance 2000 and amending the Services Tribunal Act 1973 that would protect the working classes from exploitation and arbitrary termination from service.

– The Removal from Services Ordinance was a bad law as it conferred arbitrary powers on the authorities in violation of the fundamental rights of workers, while Section 2A of the Services Tribunal Act 1973 had snatched the rights of workers to take their disputes to the Labour Courts, Labour Appellate Tribunal as well as the National Industrial Relations Commission. The workers will now enjoy job security as the president has signed two laws to repeal the Removal from Services (Special Powers) Ordinance 2000 and amend the Services Tribunal Act 1973 after adoption from the parliament houses.

– Repealing the ordinance will ensure job security for government labourers and also restore workers’ rights as the employers could no longer sack employees arbitrarily. These two laws had deprived employees of their rights to approach labour courts for a remedy, which has now been brought to their logical ends by the present government.

– The government’s decision to offer 10 percent share in the public sector organisations would benefit 500,000 employees, while thousands of youths are being trained under the Shaheed Benazir Bhutto Youth Development Programme to lead the country towards new avenues of prosperity and development.

– Shares have also been handed over to the workers in the public sector corporations to make them partners and ensure their role in decision-making.

Source: Daily Times, 2 May 2010 (Sharmila Farooqi)

– Under the new policy, the industrial labourers the minors aged below 18 would not be allowed to work in uncongenial and improper atmosphere.

– The number of women at any company would be specified under ILO Charter.

– The new policy also stipulates the rules and regulations relating links between employers and employees.

– A comprehensive social insurance for old-age benefits and health services on self-registration/voluntary basis to allow all workers in formal and informal sector of economy, including self employed persons, to benefit from it.

Source: The Nation, 2 May 2010

– The children of workers will get technical education.

– Manpower information centres in cities will be set up, trainers will be equipped with knowledge to spread vocational education,and para-medical staff will get specialised training, he said.

– Pensionable age limit under the old-age benefit will be lowered to 50 years.

– Smart card through Nadra will be issued, so that registered workers can get various facilities, legal support of Rs 15,000 will be arranged for out of job workers.

– Free medical treatment will be provided for the labourers.

– Workers have been given the right to form unions and labour bodies to protect their rights.

Source: Associated Press of Pakistan, 2 May 2010

About the author

Abdul Nishapuri


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  • Millions of workers go without legal protection
    By Mohammad Hussain Khan
    Saturday, 01 May, 2010

    Sky-rocketing inflation is exposing these workers to many types of social ills while health-care and private education are dreams unfit for their eyes and public sector education, too awry, to describe. — Photo by APP
    Labour policy unveiled, minimum wage raised to Rs7,000
    Labour policy unveiled, minimum wage raised to Rs7,000
    HYDERABAD: As world prepares to celebrate the World Labour Day, millions rather billions lament their lot for not even qualifying to come under the ambit of labour laws.

    Sixteen-year-old Tehmina a bangle worker is bed-ridden due to meningitis and facing disability because of the neurosurgery. The surgery has affected her left hand and leg besides slurring speech. Now, she can’t share her pool as do rest of the family, says her mother 53-year-old, Zaibunnisa.

    People associated with bangle industry, hotels and working as domestics in homes, schools and private offices have no right to claim benefit as they don’t fall under Labour Laws.

    There is no official data to confirm number but it runs in millions in our part of the world.

    None have an access to services under labour laws as they are not allowed to form trade union and have no say in labour rights. Labour federations are trying to bring informal workers under the cover of law and once it’s done their exploitation would come to an end.

    Informal workers are not organised as majority of them are busy in providing two square meals to their families and recreation or luxuries are far-fetched dreams to them. Mutton is beyond their means, and beef or chicken is a luxury which some enjoy on special occasions.

    Tehmina’s condition is apt to make anyone sad as she lies on a cot without a sheet and constantly needs assistance for the slightest movement she intends to make. She needs a lot of money for consultation and medication.

    Even the rights of those having access to labour laws are not safeguarded because of capitalist-dominated system where pocket unions kill economically, the working class. The government has fixed Rs6,000 as minimum wages which are not being implemented in majority of cases.

    Sky-rocketing inflation is exposing these workers to many types of social ills while health-care and private education are dreams unfit for their eyes and public sector education, too awry, to describe.

    Workers can be blamed for their plight as they are too hesitant to file a complaint or get themselves registered with the Workers Welfare Board, said convenor of sub-committee of National Assembly’s standing committee on labour.

    Many workers federation are shy to get trade unions registered on the pretext that it lands a labour in trouble.

    Secretary General, Khursheed Ahmed of Pakistan Workers Federation said that the government has done nothing in regard to IRA 2008.

    “Bangle and domestic workers are most exploited class and they must be covered under law through legislation by government forthwith to check social exploitation”, he said.

    The government’s decision to repeal Removal from Service (Special Power) Ordinance 2000 introduced by Pervez Musharraf was hailed by all. However, labourer federations flayed government’s plans to replace IRO 2002 with Industrial Relations Act 2008 without taking them on board. “Its poignant that while dictators always consulted labour leaders democratic government avoid them and thrust their decision on us”, said a noted labour leader, Qamoos Gul Khattak.

    The government introduced Industrial Relations Act (IRA) 2008 in place of IRO 2002 for an interim period, promising more suitable amendments by April 2010 through IRA 2010. IRA 2008 would now stand expired and there had been no consultations with the workers federation. Employers and workers’ federation jointly worked out a consensus draft called “Workers Employer Bilateral Council of Pakistan” (Webcop) and submitted to the government, seeking amendments in proposed IRA 2008, including right to trade union in agricultural and informal ones except army and police.

    Labour federations say that while the government has done away with some workers-friendly provisions of IRO 2002, it has also inserted some anti-workers clause. They viewed it with concern that while dictator’s name has been expunged and all those amendments are deleted why those harmful for workers’ right are kept intact.

    “IRA 2008 is a rehash of 1969’s Labour Ordinance given by Ziaul Haq”, said Khattak, who is secretary general of Muttaheda Labour Federation. He referred to clauses that are done away with like appointment of appellate tribunal and the NIRC by respective chief justices, union’s affiliation with registered federation within two months of elections, punishment to employers, etc.

    “When two stakeholders – employer and workers – have signed a consensus document then why the government avoids playing its role of facilitator”, he asked.


  • Workers demand trade unions restoration
    By: Mohsin Hassan | Published: May 02, 2010
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    KARACHI – The labour parties of the country have shown mixed reaction over the new Labour Policy notified by the Prime Minister Yosuf Raza Gilani on Saturday.
    According to spokesperson of Labour Party Pakistan Farooq Tariq, the new policy have some good points about the women workers rights in which they will be dealt with International Labour Organization’s conventions that will generate the more opportunities for the women workers in all the fields of life.
    He said that the government has failed to implement the minimum wage policy in the industries in the past years and now a new policy has come. “The government which previously could not be able to implement the minimum wage of Rs 6,000 in the industries, how it will provide Rs 7,000 to the labourers. However, pension age limit of fifty years is a good step by the government” he added. He lashed out that the labourers are being paid less than Rs 6,000 and no industrialist yet arrested by any authority for this crime.
    The trade union policy should be flexible so that every labour could cast his vote for the cause but the government has banned the political trade unions in the institutions which are not a good sign for the workers and the labourers, Farooq Tariq added.


  • May Day rally: Workers’ cries fall on deaf governmental ears: RWU

    By Vidya Rana

    RAWALPINDI: Years-long struggle and cries of the Railway workers for securing their rights, continue to fall on the deaf ears of the mighty management despite having elected government in the country.

    “The working class has been left high and dry by successive governments and the present elected regime is no different in this regard,” said Jamil Raja, the president of the Railway Worker’s Union (RWU) during a protest rally on the occasion of International Workers Day.

    The RWU, Workers Party Pakistan (WPP) and the National Students Federation (NSF) jointly held the rally, which started from Rawalpindi Railway Station and culminated at Rawalpindi Press Club.

    Mirza Rizwan, a technician in the lift shop (heavy workshop) of Pakistan Railway (PR) shared a sad story of one of his colleague with Daily Times.

    “Rahim Dad, a wire-man was trapped in the shaft of a locomotive while trying to fix it. He got paralyzed and lost his speech ability. It has been three years now but no one from the department has bothered to look into his problems and extend some support,” he lamented.

    Riaz Khan, a driver in PR said they had to do extra labour and find little time to take rest due to consistent technical faults in locomotives.

    “Often we cover five hours distance in double time just because of obsolete and substandard locomotives purchased from China at high rates. The faulty breaks system of these engines have put the lives of passengers and railway staff at risk,” he said, adding, it is difficult for a driver to remain active without taking some rest upon reaching the destination. “But chances of taking rest are slim as the trains are already running behind the schedule and the rest areas meant for drivers are in dilapidated conditions,” he said.

    The other railway protesters narrated more sad stories.

    “Mazahir Hussain lost his eye while doing his job in the lift shop. The department paid him Rs 60,000 for an irreparable loss. At least an ambulance should be at the disposal of the workshop to attend any emergency,” said a protestor.

    Speaking on the occasion, Aasim Sajjad of WPP said the labour movement in Pakistan had been successively weakened over the years by the cooperation of the trade unions’ leadership and the decline of leftist forces. He said the ordinary worker had been convinced that nothing could be gained from class mobilization and economic and political survival was only possible by the patronage of dominant groups. He said until and unless this culture of dependence was broken, the labour movement would not be able to reach the heights of the 1960s and 1970s again.


  • Editorial: Workers’ woes

    Prime Minister Gilani, in an address to a gathering
    of workers at the Convention Centre in Islamabad, announced the Labour Policy 2010. A comprehensive and detailed programme aimed at following the universal principles of equality, justice and constitutional rights, the policy ought to come as a sigh of relief to the working class. Promising amendments to the existing labour laws such as increasing the minimum wage to Rs 7,000 from Rs 6,000, setting up committees at federal, provincial and district levels to check timings, pay, and the work environment, ensuring that private organisations pay salaries via cheques and bank transfers, lifting the ban on trade unions and labour bodies and welcoming incentives like increased pensions and free medical facilities, this policy promises to finally give workers some of their due.

    Following the announcement, the many rallies and protests organised by leftist and union leaders throughout the country spoke of the working class’s misery and problems. With inflation rising at an amplified rate, to increase the minimum wage by just Rs 1,000 hardly seems befitting — especially since the last basic wage is yet to be universally implemented. However, it is no secret how financially constrained the government is, with cost cuts and taxes being imposed to meet budget targets. Some appreciation nevertheless is due for the government for trying to improve conditions within the present financial constraints.

    This is not a government entirely lacking vision, but it has to wrestle with inefficient and corruption-riddled institutions and mechanisms. Implementation of corrective policies will require a complete rewiring of the internal system whereby inspection and regulatory bodies are cleansed of corrupt practices.

    Although this is a comprehensive policy aimed to better the state of all sectors, it must be noted that it is the private sector where a real lack of workers’ rights remains the norm. With pocket unions formed by managements, timings being abused and salaries and increments being brushed aside, the labour policy should have addressed these grievances to prevent private organisations from getting away with virtual murder.

    In the state sector too, good policies must be actualised. If not, the government’s reputation will be at stake, once again, in the eyes of the working class. *


  • Employment & Service Conditions Act

    Monday, 10 May, 2010

    THE Ministry of Labour and Manpower, Policy Planning Cell, in Islamabad had recently provided a draft of the Employment and Service Conditions Act, 2009 to stakeholders for review.

    In this regard the Workers and Employers Bilateral Council of Pakistan (WEBCOP) had organised a meeting of stakeholders in Karachi on April 22 for the purpose.

    This draft appears to be the outcome of various labour commissions, including that of Justice Shafiur Rehman, appointed by successive governments for consolidation and simplification of labour laws.

    The draft Act repeals 11 major Acts and Ordinances and partially modifies the Mines Act 1923 and Factories Act 1934. Some of the prominent labour laws being repealed include the Payment of Wages Act, Minimum Wages Ordinance, Industrial and Commercial Employment (Standing Orders) Ordinance, Shops and Establishments Ordinance and the Employees’ Cost of Living (Relief) Act.

    Although the WEBCOP members cursorily discussed the various sections of the draft Act, it would, however require thorough review before a consensus draft could be finalised. My comments on some of the sections are as follows:

    (a) In Section 3 (ii) and (iii) definition of ‘apprentice’ and ‘apprenticeship contract’, respectively, is out of place as the Apprenticeship Ordinance 1962 and the Rules made thereunder in 1966 already provide comprehensive coverage to apprenticeship schemes which are being run by various companies in pursuance of this law.

    (b) Definition of ‘worker’ or ‘employee’ given in Section 3 (x1vii) brings all employees of an organization, other than the employer, within its ambit. It is an established fact that the terms and conditions of employment of management staff are governed by their letters of appointment and not by labour laws.

    Applying the labour laws to the management staff of companies will shatter their organisational structure. I, therefore, suggest that the existing definition of ‘workman’ given in the Standing Orders Ordinance 1968 should be retained in the new Act, i.e. [‘workman’ means any person employed in any industrial or commercial establishment to do any skilled or unskilled, manual or clerical work for hire or reward].

    Under Section 21 of the draft Act the requirement of the contractor’s registration with the government is being introduced. A similar legislation has been in existence in India for the last two decades and is being managed successfully.

    This law will streamline the contract system in the country and only genuine persons will take up the responsibility of entering into contract with a company.

    Substantial changes have been made to Section 58 related to punishments and termination of employment to meet the new demands of commercial world.

    Retaining the 12 existing acts and omissions constituting misconducts with minor changes, two additional misconducts of sexual harassment and carrying arms or weapons at workplace, have been added to the list.

    Misconduct of absenteeism and timekeeping have been made stringent by reducing the period of absence from duty for more than 10 (calendar) days to “absence without leave of more than six working days”.

    Habitual late attendance has been quantified to “more than three consecutive days or more than four days in a month”.

    However there is one suggestion that in Subsection 3 (i) of Section 58, the word ‘gross’ should be prefixed with the misconduct to read as “gross or habitual negligence or neglect of work” as only one major act of negligence by a worker may cause a colossal loss to the employer.

    As mentioned earlier, the Employees’ Cost of Living (Relief) Act 1973 is also being repealed by the draft Act which implies that although the existing cost of living allowances will continue to be paid as part of an employee’s salary, in future the government will not make any addition to these allowances.

    It will require many deliberation sessions to finalise the draft Employment and Service Conditions Act, however its authors deserve credit for consolidation of 11 Acts and Ordinances into one Act.



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    Par cons茅quent, la Chine se oppose fermement 脿 la normale du commerce international par l’obstruction artificielle. Dans cette perspective, l’industrie de bagages Chine, la motion pr茅sent茅e par l’Association am茅ricaine des entreprises textiles exprim茅 une forte opposition; 茅galement appel茅 le Comit茅 ex茅cutif de l’accord textile 脡tats-Unis avant de prendre toute d茅cision, vous devriez enti猫rement 茅couter les opinions de tous les c么t茅s, en particulier les int茅r锚ts des consommateurs consid猫rent les parties, sur les efforts de l’茅quilibre 脿 maintenir les Longchamp Canvas Tote Le Pliage principes du commerce 茅quitable pr茅conis茅es par l’OMC, afin d’茅viter de prendre toute d茅cision pourrait conduire 脿 des frictions commerciales sinueuse .

    Comme C茅line march茅 fran莽ais des produits de luxe, l’une des forces dominantes, CELINE en termes de production ou les v锚tements en cuir couture insist茅 pratique et superbe style 茅l茅gant, confortable de la personnalit茅, ce est cet avocat raffin茅e, le pouvoir de rendre la poursuite de la perfection devenir CELINE par europ茅enne la haute soci茅t茅 des marques pr茅f茅r茅es.

    Sacs 脿 main de marque: Chanel, comme les cinq derni猫res ann茅es, Chanel mod猫les de base des prix TTC augment茅 de 70%, mais pas trop tard pour commencer sur Chanel supermarch茅 de cette ann茅e a 茅t茅 lanc茅 dans le panier et le sac de bouteille, utilise pas moins que le degr茅 de fa莽onner et aimable! Bien avant que le sac hula hoop Fashion Week Hiver 2014 Inventaire: 45 la meilleure valeur pour l’argent investi par l’amour des beaux sacs 脿 main 茅dition.

    Juliette de Sharp tenant sacs 脿 main Nancy Gonzalez souviennent avant que je peint une carte de relation de caract猫res d’avoir une relation amoureuse avec une ligne droite reliant les caract猫res. Maintenant mettre 脿 jour ce tableau, la connexion doit 锚tre emball茅 comme une toile d’araign茅e. Donc, je ai attrap茅 les hauts et les bas de l’intrigue, se 茅tait habitu茅 脿.

    En outre, le bouton est press茅 apr猫s aiguille 2 heures de position, sera en mesure de voir le m茅canisme d’embrayage 脿 ressort incurv茅e allong茅e en appuyant sur la rattrapante de synchronisation de la prochaine ronde. Appuyez sur le bouton pour faire les embrayage ouvertes chronographes de roue r茅initialis茅s et ex茅cut茅es de mani猫re synchrone avec la roue de synchronisation, faisant un instant apr猫s aiguille aiguille chronographe avec le fonctionnement de chevauchement et synchrone.

    Quel c茅l猫bre sacs 脿 l’int茅rieur? Quand une femme ne comprenait pas le monde d’un homme, avec des sacs de cr茅ateurs pour remplacer la principale explication semble 锚tre le meilleur outil. V锚tements haut de gamme avec des sacs 脿 main de technicit茅 sont des r猫gles non 茅crites, sacs 脿 main et les prix des v锚tements sont similaires, comme LV, HM ou ZARA, Chanel2.55 tels que sacs 脿 main pourquoi il peut 锚tre vendu 脿 un prix 茅lev茅? Expliquez explication biologique ne peut 锚tre donn茅 脿 un des accessoires de s茅curit茅 des sacs 脿 main de femme, mais aujourd’hui de nombreuses marques de mode emballages, les sacs 脿 main et des v锚tements, comme avec la tendance populaire.