Evolution Of Industrial Relations Legislation in Indo-

Pak

By: SHAFIQ GHAURI

DIGNITY OF HUMAN CAPITAL

“ MATUSHITA ELECTRONICS-JAPAN”

" WE MAKE ELECTRICAL APPLIANCES BUT FIRST & FORE MOST, OUR COMPANY MAKES MAN"

Appointment of a Commission on International Labor legislation/standards by Paris Peace Conference in 1919 and established a Labor Charter.

Indian Royal Commission of Labor 1929-31. The commission inquire into existing labor and working conditions, and has given 357 recommendations for Legislative and Executive enactments.

1st Pak Tripartite Labor Conference in 1949 for formulation of a labor policy.

ILO’s Survey Mission 1952-53 To study and observe the working conditions and to

provide social justice. Recommended for a Social Security System.

Evolution of Industrial Relations Legislation

Convention No 87 :Freedom of Association & Protection of

the right to Organize

• Article – 2 Workers & Employers, Without distinction whatsoever, shall have the right to establish, subject only to the rules of organization concerned, or join association of their own choosing without previous authorization.

BASE OF INDUSTRIAL RELATIONS SYSTEM (ILO’S Convention)

Convention No 98:Principal of Rights to organization and to

Bargain Collectivity

Article – 4 Measures appropriate to national conditions Shall be taken, where necessary, to encourage and promote the full development and utilization of machinery for voluntary negotiations between employers or employer’s organizations and worker’s organization, with a view to the regulation of terms and conditions of employment by means of collective Agreements.

BASE OF INDUSTRIAL RELATIONS SYSTEM (ILO’S Convention)

Industrial Relations Ordinance – 1969.  Amendments/Insertions by way of labour policy – 1972.  Industrial Relations Ordinance – 2002.  Industrial Relations Act – 2008.  Sindh Industrial Relations (Revival and Amendment) Act – 2010.  Punjab Industrial Relations Act – 2010.  Balochistan Industrial Relations Ordinance – 2010.

Khyber Pakhtunkhuwa Industrial Relation Ordinance – 2010 Federal Industrial Relations Act - 2012

Legislation in Pakistan on Industrial Relations(1969-2012)

Indian Trade Unions Act – 1926.   East Pakistan Trade Unions Act – 1965.   West Pakistan Trade Unions Ordinance – 1968.   Trade Disputes Act – 1929.   Industrial Disputes Act – 1947.   Industrial Disputes Ordinance – 1959.   East Pakistan Labour Disputes Act – 1965.   West Pakistan Industrial Disputes Ordinance – 1968.

Journey of Industrial Relations System In Sub Continent(1926 - 1968)

Conflictual Approach Rigid, Negative, Stereotyping of each other

Legalistic ApproachRestrict the union within the parameter of law

Consultative/Accommodative Approach Accommodate each other’s point of view after a purposeful consultation, with an intention to achieve WIN – WIN situation

APPROACHES TO INDUSTRIAL RELATIONS

Formation of Trade Union Regulating the relationship between

Employers & Workmen. Avoidance & Settlement of disputes and

differences, if arises. The prevention of illegal Strike & Lock Out. The Relief to Workmen in the matter of

Employment Relations. The imposition Of Fine in case of violation of

Law from either side.

Aims & Objects Of Industrial Relations Law

Trade union is a continuous association of wage earners for the purpose of maintaining or improving the conditions of their working lives as also to protect and advancement of the economic interest of their members.

So the Trade Union having a set of beliefs concerned with the problems confronting the workers and a generalized program for improvement and betterment.

Trade Union is globally recognized by way of ILO’s Convention No .87 as “Freedom of Association”. However as per Industrial Relations Act -2008 defines as; “Trade Union means any combination of workmen or employers formed primarily for the purpose of regulating the relations between workmen and employers, or workmen and workmen or employers and employers, OR for imposing restrictive conditions on the conduct of any trade or business and includes a Federation of two or more Trade Unions.

Thus the main purpose is to regulate and improvement of relationship between stake holders in an amicable manner.

TRADE UNION

CBA shall be entitle under the provision of law as;

To undertake collective bargaining with the employer.

To represent all or any of workmen in any proceedings.

To give notice of, and declare a strike in accordance with law.

To request for check off system. To nominate representative of provident fund of

workers on the board of trustee of any welfare institution Or provident fund of workers.

COLLECTIVE BARGAINING AGENT (CBA)

CBA is known as the representative of the workers in an establishment which is determined by way of a Referendum amongst the contesting trade unions, for a period of two years. In the referendum process the Trade Union obtaining the one-third 1/3 votes of the total number of workmen employed in the establishment shall be certified to be the CBA and thus Registrar of Trade Union issued them a certificate Under section 24 of the IR Act – 2008. The CBA is under a duty to represent interests of all the workers impartially without discrimination and thus having a legal right to bargain on the economic issues of the workers with the employers and to settle amicably.

COLLECTIVE BARGAINING AGENT (CBA)

The CBA is authorized to bargain with the employers on the collective issues of the workers related to the terms and conditions of the employment. This process can be defend as an arrangement under which facilities includes wages and other conditions of service of workers are settled in the form of an Agreement / Settlement between the employer and representative of workers (CBA) .

The sole purpose of this process is to create healthy working environment, peace and harmony between the employer and workmen by discussing any difficulty or difference arising between them and making o a solution which may be a amicable with mutual consent.

To conclude, the process of collective bargaining is a mechanism to settle “Economic conflict” with the employer after bilateral negotiations with an intension to maintain industrial peace.

COLLECTIVE BARGINING PROCESS

THE POWER BASE OF MANAGEMNT

Ownership / Control of the factors of production like Land, Capital, Machinery, Materials Etc.

Position / Structural power – the influence derived from one’s formal or structural position.

It includes power to hire, fire, discipline, promote and reward. Bureaucratic Power – Access to state’s legal and coercive support.

THE POWER BASE OF THE UNION

Skills and Services. Collectivity. Political support – Affiliation with political parties. Protective social policy.

UNION-MANAGEMENT POWER DYNAMICS

Economic Conflict ---- Conflict of interest. Judicial Conflict --------Conflict of rights.

The disputes arising out of the conflicts involve some phase of employment relations. The industrial Dispute has been extended to include individual grievances and a clear distinct procedure has been laid down for the settlement of both the categories of the disputes.

INDUSTRIAL CONFLICT

Any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen, which is connected with employment or non employment or the terms of employment or the conditions of work of any person and is not in respect of the enforcement of any right guaranteed or secured to him by or under any law, other then the industrial Relations Laws enforced or any award or settlement for the being enforced.

Only CBA or the employer can raise an industrial dispute in the prescribed manner.

Industrial Dispute

1. Dispute about employment non-employment, terms of employment or the conditions of work of any person (workman) not involving the enforcement of any right guaranteed by law, Award of settlement in respect of any of these matters.

2. Wage rates-terms of employment .3. Allowances – terms of employment .4. Bonus s-terms of employment.5. Leaves-terms of employment.6. Work-hours – terms of employment / conditions of work.7. Provident fund-terms of employment.8. Gratuity-terms of employment.9. Medical facilities if not covered by social security scheme-

terms of employment.10. Provision of transport facility-terms of employment.

BARGAINABLE ISSUES

11. Pension-terms of employment if not covered by EOBI scheme12. Grant of loans-terms of employment.13. Group insurance-terms of employment.14. Overtime rates over and above provided under the law-terms

of employment.15. Provision of water cooler at the workplace – condition of work.16. Provision of uniform shoes – conditions of work17. Provision of light and arrangement for fresh air – conditions of

work.18. Provision of the first aid facilities at the workplace – conditions

of work.19. Policy for the promotion of workers – term of employment but

covered under section-23 of the IRO,1969.20. Any other amenity or facility having rational connection with

the employment or physical conditions of work i.e. conditions at the workplace, of the workers.

BARGAINABLE ISSUES

PHASE I - NEGOTIATIONS

PHASE II - CONILIATION

PHASE III - ARBITRATION

PHASE IV - STRIKE &

LOCKOUT

PHASE V - ADJUDICATION

“PHASED” LEGAL OPTIONS FOR RESOLUTION OF DISPUTE

Section 42: Negotiations Relating to Differencesand Dispute

Section 43: Conciliator Section 44: Notice of Strike or Lock-out Section 45: Conciliation After Notice of Strike or

Lock-out Section 46: Proceedings before Conciliator Section 47: Arbitration Section 48: Strike and Lock-out Section 51: Raising of Industrial Dispute by a

Federation

List of Relevant Sections of IRA-2010 Relating to Collective Bargaining Process

Section 56: Settlement an awards on whom binding Section 57: Effective date of settlement, Award, etc. Section 58: Commencement and Conclusion of

Proceedings Section 60: Raising of Industrial Dispute Section 61: Prohibition of Serving Notice of Strike

or Lock-out while proceedings pending Section 62: Powers of Labor Court & Tribunal to

Prohibit Strike etc. Section 63: Illegal Strikes and Lock-out

List of Relevant Sections of IRA-2010 Relating to Collective Bargaining Process

Section 64: Procedure in Case of illegal Strike or lock-out

Section 65: Condition of Service to remain unchanged while proceedings pending

Section 66: Removal of Fixed Assets Section 67: Protection of Certain Persons Section 69: Interpretation of settlement and Awards

Section 73: Penalty for Committing breach of Settlement

Section 74: Penalty for failing to implement settlement, etc.

List of Relevant Sections of IRA-2010 Relating to Collective Bargaining Process

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