industrial relations: role of labor unions in
TRANSCRIPT
INDUSTRIAL RELATIONS ROLE OF LABOR UNIONS IN ORGANIZATIONAL CLIMATE
IN PAKISTANrsquoS PERSPECTIVE
By
Muhammad Tariq Khan
NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD
August 2008
Industrial Relations Role of Labor Unions in Organizational
Climate in Pakistanrsquos Perspective
By
Muhammad Tariq Khan
A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY
In
Human Resource Development
To
FACULTY OF ADVANCED INTEGRATED STUDIES AND RESEARCH (MSHRD)
NATIONAL UNIVERSITY OF MODERN LANGUAGES ISLAMABAD
August 2008
copy Muhammad Tariq Khan 2008
ii
DISSERTATION AND DEFENSE APPROVAL FORM
The undersigned certify that they have read the following dissertation examined the defense are satisfied with the overall exam performance and recommend the thesis to the Faculty of Advanced Integrated Studies amp Research for acceptance Dissertation Title Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective Submitted By Muhammad Tariq Khan Registration 135-PhDHRD2003 Doctor of Philosophy Human Resource Development Dr Zafar Mueen Nasir Name of Research Supervisor Signature of Research Supervisor Prof Dr Shazra Munnawar ______________________________ Name of Dean (FAISampR) Signature of Dean (FAISampR) Prof Dr Aziz Ahmad Khan ______________________________ Name of Rector Signature of Rector
__________________ Date
iii
CANDIDATE DECLARATION FORM I Muhammad Tariq Khan_____________________________________________
Son of Mr Chanan Khan
Registration No 135-PhDHRD2003
Discipline Human Resource Development
Candidate of Doctor of Philosophy at the National University of Modern Languages do hereby declare that Industrial Relations Role of Labor Unions in Organizational Climate in Pakistanrsquos Perspective submitted by me in partial fulfillment of PhD degree in disciplinedepartment Faculty of Advanced Integrated Studies amp Research is my original work and has not been submitted or published earlier I also solemnly declare that it shall not in future be submitted by me for obtaining any other degree from this or any other university or institution I also understand that if evidence of plagiarism is found in my dissertation at any stage even after the award of a degree the work may be cancelled and the degree revoked August 11 2008 ____________________ Date Signature
Muhammad Tariq Khan Name
iv
ABSTRACT
Dissertation Title Industrial Relations Role of Labor Unions in Organizational
Climate in Pakistans Perspective
Purpose of this research was to explore the aspects of HRD beyond education and
training and to explore the role of labor unions in HRD by looking at the improvement in
productivity and harmony at work place due to them For this purpose survey
questionnaires on five point Likert scale ranging from very unsatisfied to very satisfied
were designed and pre-tested The study was carried out by taking a sample of 10
unionized organizations In these organizations 525 unionized workers 90 temporary
non-unionized workers and employers were interviewed to collect information on role of
labor unions in securing benefits for workers and motivating them for higher productivity
and peace at work place Performance of unions was estimated in two aspects One
aspect was their success in securing benefits for workers and other was in protecting the
interest of employers The success of unionsrsquo in exerting efforts for securing benefits for
workers was measured by satisfaction of workers which was dependent on15 variables
ie wage rise fringe benefits job security time decrease health facilities children
education over time payment working conditions leaves increase post retirement
benefits recreation facilities training opportunities decrease of wage differences
informing workers about their rights and workersrsquo education The success of unionsrsquo in
exerting efforts for protecting employersrsquo interest was measured by satisfaction of
employers which was dependent on two variables ie productivity increase and work
place harmony The results of the study show that unions proved successful in securing
benefits for workers and protecting the interest of employers though performance of
unions needs to be improved by exerting more efforts
v
TABLE OF CONTENTS
Page Inner title page i
Dissertation and Defense approval form ii
Candidate Declaration Form iii
Abstract iv
Table of Contents v
List of Figure xi
List of Tables xiii
List of Acronyms xvi
Acknowledgements xix
1 INTRODUCTION 1
11 BACKGROUND OF STUDY OF HUMAN RESOURCE 1
DEVELOPMENT
12 EXISTING PROBLEM 2
13 PURPOSE OF RESEARCH 4
14 RESEARCH QUESTIONS 4
15 SIGNIFICANCE OF THE RESEARCH 6
16 LIMITATIONS OF RESEARCH 6
2 LITERATURE REVIEW 7
21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE
DEVELOPMENT 7
22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS 10
221 Emergence of Labor Unions 12
222 Unionization Problem 12
2221 Opposition of Unionization by State 13
2222 Opposition of Unionization by Employer 16
223 Why Workers Join Unions 17
23 UNIONS ROLE FOR WORKERS BENEFITS 19
231 Wage Rise 21
vi
232 Reduction in Wage Inequality 24
233 Fringe Benefits 25
234 Job Security and Employment 26
235 Time Reduction (Duty Hours) 28
236 Payment of Over Time 29
237 Paid Leaves 29
238 Working Condition 30
239 Health Care and Social Security 31
2310 Post Retirement Benefits (Pensions) 33
2311 Training Opportunities 34
2312 Workersrsquo Education 36
2313 Recreational and Social Services 37
2314 Children Education 39
2315 Workers Awareness 39
24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY 39
241 Productivity Efficiency and Profitability 39
242 Work Place Harmony and Cooperative Role 46
25 STRATEGIES AND TACTICS OF UNIONS 50
251 Source of Strength of Unions 50
2511 Unionsrsquo Density and Their Strength to Effect 50
252 Peaceful Means of Achieving Objectives 51
253 Violent Means 52
26 CORRUPTION OF UNIONS 53
261 Corruption and Selfishness of Officials 53
262 Financial Corruption 53
2621 Embezzlement Examples 56
263 Unionsrsquo Officers Monopoly 57
264 Bribes (Extortion and Pay-off) 58
265 Sound Labour Relations at the Workplace no Important 59
Concern of Employers and Unions
vii
3 HISTORY AND LEGAL FRAME WORK OF UNIONIZATION 60
IN PAKISTAN
31 HISTORY OF LEGISLATION 61
311 Laws Permitting Establishment of Unions 62
312 Laws for Settlement of Disputes 64
313 Industrial Relations Ordinance 1969 64
32 RIGHT OF UNIONIZATION 66
321 United Nationsrsquo Declaration of Human Rights 66
322 ILO Conventions 67
323 Constitution of Pakistan 67
33 PRESENT ENFORCED LAWS 68
331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo 68
332 Labor Laws Granting Rights 72
3321 Workmen Compensation Act 1923 72
3322 Factories Act 1934 72
3323 Payment of Wages Act 1936 73
3324 The minimum Wages Ordinance 1961 73
3325 Social Security Ordinance 1965 73
3326 The industrial and commercial Employment (standing
order) Ordinance 1968 74
3327 The companies Profit (workersrsquo participation)
Act 1968 74
3328 The Shops and Establishments Ordinance 1969 74
3329 The Minimum Wages for Unskilled Workers 74
Ordinance 1969
33210 Workers Welfare fund Ordinance 1971 75
33211 Workers Children (Eucation) Ordinance 1972 75
33212 Employees Cost of Living (Relief) Act 1973 75
33213 Employees Old Age Benefit Act 1976 76
333 Labor Policies 76
3331 First Policy (1955) 76
viii
3332 Second Policy (1959) 77
3333 Third Policy (1969) 77
3334 Fourth Policy (1972) 78
3335 Fifth Policy (2002) 79
3336 Labor Protection Policy 2005 81
3337 Labor Inspection Policy 2006 82
4 RESEARCH METHODOLOGY 84
41 THEORETICAL FRAME WORK 84
411 Research Model and Variable Formation 84
412 Research Hypotheses 91
42 POPULATION AND SAMPLING 91
321 Stage-lsquoIrsquo Sampling of Organizations 91
422 Stage-lsquoIIrsquo Sampling of Respondents 92
4221 Sampling of Union Office Bearers 92
4222 Sampling of Permanent (Unionized) workers 93
4223 Sampling of Management 93
4224 Sampling of Temporary (Non-unionized) Workers 93
43 DATA COLLECTION INSTRUMENTS 93
431 Questionnaires and Their Structure 93
44 PREPARATION OF SATISFACTION LEVEL SCALE 97
45 PILOT STUDY 97
46 CODES AND ABBREVIATIONS 97
47 STATISTICAL METHODS APPLIED 98
471 Percentage 98
472 Arithmetic Mean 98
473 Chi Square (χ2) 100
474 Comparison 101
48 CALCULATIONS BY APPLYING STATISTICAL METHODS 101
481 Percentage Calculation of Yes No Responses 101
482 Means Calculations 101
483 Chi Square Applications 103
ix
484 Comparison Application 103
49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS 103
BENEFITS
491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 105
5 DATA ANALYSIS AND RESULTS 106
51 DATA PRESENTATION 106
511 Organization-Wise Description of Respondents 106
5111 Description of respondents of ARL 107
5112 Description of respondents of CDA 107
5113 Description of respondents of IESCO 107
5114 Description of respondents of KTM 108
5115 Description of respondents of OGDCL 108
5116 Description of respondents of PCP 108
5117 Description of respondents of PTCL 108
5118 Description of respondents of PTV 109
5119 Description of respondents of SNGPL 109
51110 Description of respondents of ZTBL 109
51111 Workers responses of the questions about essentiality
inter unions relations and unions status as compared 109
to past
51112 Unionsrsquo office bearersrsquo responses of the questions 110
about work council charter of demand and unionistsrsquo
training
51113 Management responses about work council charter 110
of demand and wage cut
52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA 110
521 Organizational Means of Workersrsquo Variables 111
522 Organizational Means of Managementrsquos Variables 122
53 VARIABLE-WISE ANALYSIS 132
531 Mean Calculation of Variables Measuring Unionsrsquo Efforts 133
for Workersrsquo Benefits
x
5311 Combined Mean of All Workers Variables 163
532 Chi Square Test Application 166
533 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits 182
54 COMPARISON OF UNIONIZED AND NON-UNIONIZED 190
WORKERS
56 WORKERS RESPONSES FOR QUESTIONS ABOUT
ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS 193
STATUS AS COMPARED TO PAST
6 DISCUSSION CONCLUSIONS AND RECOMMENDATIONS 195
61 DISCUSSION 195
611 Organization-Wise Performance of Unions 195
6111 ARL Union 195
6112 CDA Union 196
6113 IESCO Union 196
6114 KTM Union 196
6115 OGDC Union 197
6116 PCP Union 197
6117 PTCL Union 198
6118 PTV Union 198
6119 SNGPL Union 198
61110 ZTBL Union 199
612 Variable-Wise Performance of Unions 199
6121 Workers relating variables 200
6122 Employer relating variables 204
613 Comparison with Non-Unionized Workers 205
62 ANSWERS OF RESEARCH QUESTIONS 207
63 CONCLUSIONS 209
64 SUGGESTIONS AND RECOMMENDATIONS 210
65 SUGGESTIONS FOR FURTHER RESEARCH 212
REFERENCES 213
APPENDICES 229
xi
LIST OF FIGURES Figure No Page 1 Showing sequence of variables effect 84 2 Pie Diagram - Satisfaction Level of Workers on Wage 134
3 Pie Diagram - Satisfaction Level of Workers Financial Benefits 136
4 Pie Diagram - Satisfaction Level of Workers on Job Security 138
5 Pie Diagram - Satisfaction Level of Workers on Time Reduction 140
6 Pie Diagram - Satisfaction Level of Workers on Health Facilities 142
7 Pie Diagram - Satisfaction Level of Workers on Children Educat 144
8 Pie Diagram - Satisfaction Level of Workers on Overtime Pay 146
9 Pie Diagram - Satisfaction Level of Workers on Working Cond 148
10 Pie Diagram - Satisfaction Level of Workers on Leave Facilities 150
11 Pie Diagram - Satisfaction Level of Workers on Post Retire Bfts 152
12 Pie Diagram - Satisfaction Level of Workers on Recreation Fac 154
13 Pie Diagram - Satisfaction Level of Workers on Training Oppor 156
14 Pie Diagram - Satisfaction Level of Workers on Dec Wage Diff 158
15 Pie Diagram - Satisfaction Level of Workers on informing Right 160
16 Pie Diagram - Satisfaction Level of Workers on Workers Educat 162
17a Diagrammatic Presentation of Means of Workers Variables 165
(Bar Diagram)
xii
17b Diagrammatic Presentation of Means of Workers Variables 165
(Line Graph)
18 Pie Diagram - Satisfaction Level of Employers on Productivity 184
Efficienc Increase
19 Pie Diagram - Satisfaction Level of Employers on Workplace 184
Harmony
20a Diagrammatic Presentation of Means of Employers Variables 188
(Bar Diagram)
20b Diagrammatic Presentation of Means of Employers Variables 188
(Line Graph)
21 Diagrammatic Presentation of success of unions 189
(Success Matrix)
xiii
LIST OF TABLES
Table Page
1 Responses of Workers of ARL Organizational Mean Calculation) 112
2 Responses of Workers of CDA (Organizational Mean Calculation) 113
3 Responses of Workers of IESCO (Organizational Mean Calculation) 114
4 Responses of Workers of KTM (Organizational Mean Calculation) 115
5 Responses of Workers of OGDCL (Organizational Mean Calculation) 116
6 Responses of workers of PCP (Organizational Mean Calculation) 117
7 Responses of workers of PTCL (Organizational Mean Calculation) 118
8 Responses of workers of PTV (Organizational Mean Calculation) 119
9 Responses of workers of SNGPL (Organizational Mean Calculation) 120
10 Responses of workers of ZTBL (Organizational Mean Calculation) 121
11 Responses of Management of ARL 122
12 Responses of Management of CDA 123
13 Responses of Management of IESCO 124
14 Responses of Management of KTM 125
15 Responses of Management of OGDC 126
16 Responses of Management of PCP 127
17 Responses of Management of PTCL 128
18 Responses of Management of PTV 129
19 Responses of Management of SNGPL 130
20 Responses of Management of ZTBL 131
21 Mean calculations-wage rise (Wris) 133
22 Mean Calculations - Bonus (Financial Benefits) (Fbft) 135
23 Mean Calculations - Job Security (J-sec) 137
24 Mean Calculations - Time Reduction (Td) 139
25 Mean Calculations - Health Facilities (Hfac) 141
xiv
26 Mean calculations- Children Education (Ced) 143
27 Mean Calculations - Over Time Payment (Ot) 145
28 Mean Calculations - working conditions (Wcon) 147
29 Mean Calculations- leaves facility (Linc) 147
30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb) 151
31 Mean Calculations -Recreation facilities (Rfac) 153
32 Mean Calculations - training opportunities (Top) 155
33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) 157
34 Mean calculations - informing about rights (Ir) 159
35 Mean calculations - workersrsquo education (We) 161
36 Summary of means of workers variables and calculation of combined 163
mean
37 Chi square calculations wage rise (Wris) 167
38 Chi square calculations - Bonus (financial benefits) (Fbft) 168
39 Chi square calculations - Security (Jsec) 169
40 Chi square calculation - Time reduction (Td) 170
41 Chi square calculations - Health facilities (Hfac) 171
42 Chi square calculations - Children education (Ced) 172
43 Chi square calculations - Overtime payment (Ot) 173
44 Chi square calculations - Working conditions (Wcon) 174
45 Chi square calculations - Leaves facility (Linc) 175
46 Chi square calculations - Post retirement benefits facility (Prb) 176
47 Chi square calculations - Recreation facilities (Rfac) 177
48 Chi square calculations - Training facilities (Top) 178
49 Chi square calculationsndashDecreasing workers officers wage salary gap(Wdf)179
50 Chi square calculations - Informing about rights (Ir) 180
51 Chi square calculations - Workersrsquo education (We) 181
52 Calculation of mean of Management responses for unionsrsquo 183
efforts for Productivity Efficiency increase (Pin)
xv
53 Calculation of mean of Management Responses for
Workplace Harmony (Wph) 185
54 Calculation of Combined Mean of Management Responses (Se) 187
55 Facilities of Temporary Workers (Not Union Members) 190
56 Facilities of Permanent Workers (Union Members) 191
57 Essentiality Inter unions Relations and Unions status Compared to Past 193
xvi
LIST OF ACRONYMS
AFL-CIO- American Federation of Labor ndash Congress of Industrial Organizations
AFSCME- American Federation of State and County Municipal Employees
BEST- Basic Education and Skills Training
CBA ndash Collective bargaining Agent
CLR - Campaign for Labor Rights
CC OO-the Confederacion Sindical de Comisiones Obreras(Spain)
CFDT - Confederation Francaise Travail (Niger)
CNSS- National Social Security Scheme (Niger)
CNT- Confederation Nigeacuterienne du Travail
COSATU - Congress of South African Trade Unions
CO2- carbon dioxide
CROC- Revolutionary Confederation of Workers and Peasants (Mexico)
CSD- Commission on Sustainable Development (UNO)
DGTU- Director General of Trade Union (Malaysia)
ECEC ndash Employersrsquo Cost for Employeesrsquo Compensation
EPI- Economics Policy Institute
FAO- Food amp Agricultural Organization
FMLA- Family Medical Leave Act (USA)
xvii
HKDF- Hong Kong Democratic Federation
ILO- International Labor Organization
ITF -International Transport Workersrsquo Federation (ITF)
LDC ndash Lower Division Clerk
LIUNA- The Laborers International Union of North America (USA)
LO- Landsorganizationen i Sverige (Swedish Federation of Trade Unions)
LPL Laborers Political League
MNC- Multi National Corporation
NLRB- National Labor Relation Board (USA)
NMU - National Maritime Union
NTUC National Trade Unions Confederation (Singapore)
OECD- Organization for Economic Cooperation and Development
OSHA- Organizational Safety and Health Act (USA)
PSI- Public Services International
PWF- Pakistan Workersrsquo Federation
SDF- Study Development Fund (Singapore)
SRP ndash Skill Re-development Program (Singapore)
TUAC-Trade Union Advisory Committee to the OECD (TUAC)
TUC - Trade Union Congress
UDC - Upper Division Clerk
UGT- Union General de Trabajadores (SPAIN)
xviii
UI-Unemployment insurance
UK ndash United Kingdom
UNDP United Nations Development Program
UNEP- United Nations Environmental Program
USA ndash United States of America
USTN - Union des Syndicats des Travailleurs du Niger
WERS ndash Workplace Employee Relation Survey (USA)
WHO- World Health Organization
WISE- Workers Improvement through Secondary Education (Singapore)
WRTP Wisconsin Regional Training Partnership
WTO- World Trade Organization
xix
ACKNOWLEDGEMENTS
All glory and praise to God Almighty Who bestowed his blessing upon me in my
life and now enabled me to accomplish this research work
I am greatly indebted to my honorable supervisor Dr Zafar Mueen Nasir Chief of
Research (PIDE) presently Director (Policies) Policy Planning Cell Labor and
Manpower Division Ministry of Labor Manpower and Overseas Pakistanis Government
of Pakistan whose encouraging kind valuable and timely guidance enabled me to
complete this study
I feel pleasure to place record of my deep sense of thankfulness to Professor Dr
Rasheed Ahmed Khan Dean Faculty of Management Sciences and Prof Dr Allah
Bakhsh Dean Faculty of Education National University of Modern Languages Islamabad
Prof Dr Sarfraz Ahmed Mian Chairman Department of Economics University of Arid
Agriculture Rawalpindi Prof Dr Irshad Ahmed Department of Statistics Allama Iqbal
Open University Islamabad and Dr Khalid Masud Visiting Faculty Member Allama
Iqbal Open University Islamabad for their guidance in this research
I am heavily indebted to my family for the time they sacrificed for me during my
studies Their constant support and encouragement helped me to complete this difficult
task
No acknowledgement could even adequately express the thankfulness to my
friends who have always been encouraging me for educational achievements
At the end I pay thanks to all those who were directly or indirectly involved in the
completion of my thesis
CHAPTER 1
INTRODUCTION
When planning for one year theres nothing better than planting grain when
planning for ten years theres nothing better than planting trees when
planning for a lifetime theres nothing better than planting men
Chinese philosopher Guanzi (551 - 479 BC)
11 BACKGROUND OF STUDY OF HUMAN RESOURCE DEVELOPMENT
Human Resource Development is an important discipline of present time It is
considered by scholars of Business Administration as a sub discipline of Human
Resource Management (HRM) concerned with developing productive skills by
imparting them training Werner and DeSimone (2006 p5) defined Human Resource
Development (HRD) as ldquoa set of systematic and planned activities designed by an
organization to provide its members with the opportunities to learn necessary skills to
meet current and future job demandsrdquo Werner and DeSimone (2006) described HRD
as a function of HRM According to Rao (1995) the scope of HRD is extended at one
side to developing competencies of human resource by enhancing knowledge
building skill changing attitude and teaching values and at other side creation of
conditions through public policy programs and other interventions to help people to
apply these competencies for their own and othersrsquo benefits and making things
happen Bacchus (1992) asserted that the ultimate goal of HRD in any country is lsquoto
improve the quality of life of all itrsquos people and not merely concerned with providing
necessary skills to individuals The concept of HRD deals with many facets of
development of individuals including their physical intellectual emotional political
and spiritual aspects
People earn their food and living by working and engage themselves in
productive activities for which a combination of both physical and intellectual
2
development is important Physical development comes from good nourishment and
medical care Intellectual development comes through the process of education and
socialization Social development involves developing the ability to live as the
member of the society or a group and contribute to it at the same time deriving
benefits from it The need for existence of all human beings makes this development
imperative Political development ensures human dignity through freedom of
expression democratic participation and an opportunity to influence things that in turn
influence the individualrsquos living Moral and spiritual development is required to bring
order discipline and peace in the life Thus all aspects of development are integral part
of HRD According to Rao (1995) ultimately what is important is human satisfaction
and the quality of life Developing people is the essence of any HRD effort and it is an
important goal of all other development activities (plans policies programs
establishment of new structures mechanism) All forms of development (economic
technological ecological agricultural industrial etc) are ultimately meant to serve
people in terms of improving their happiness through better quality and standards of
life
The focus of the present study is on improvement of quality of life of workers
due to unionrsquos active role in negotiating higher wages and good working conditions
for them because workers of any organization have weak bargaining power as
employees without their collective representation by a labor union Labor unions exert
their pressure to convince or compel the employer to extend financial benefits ie
good wages bonuses and allowances and non financial benefits ie health facilities
better working conditions recreation facilities training opportunities job security
facilities for education reasonable daily working hours and paid leaves
These facilities improve the living conditions of workers who in turn exert
more efforts to enhance their productivity and profit of the organization
12 EXISTING PROBLEM
Presently in Pakistan the supply of labor is more than its demand causing
unemployment in the country The unemployment rate in Pakistan is estimated as 53
percent in 2006 -07 (LFS 2007) Due to surplus supply of labor its price (wagesalary)
3
is low Government has raised minimum wage recently to Rs 6000- per month which
was only Rs 4600- per month
With this limited income workers can not meet their needs making them
healthy and motivated to work efficiently and dedicatedly Management builds the
skills of workers by training to increase their performance and efficiency but even if
workers are skillful and well trained their performance may not be up to mark of
satisfaction until they are not physically healthy mentally satisfied and motivated or
developed in HRD context But employers usually do not pay attention towards this or
do not desire to pay good remuneration or provide better atmosphere in the pretext of
higher labor cost Unions try to convince or compel the employer for better
remuneration and better atmosphere
If unions are playing a role by protecting the rights of workers and making
efforts to secure benefits for them then the membership of unions must increase but a
declining trend in membership of unions has been observed globally Freeman and
Medoff (1984) Hyman (1999) (Jose 2000) Hirsch and Schumacher (2000) Machin
(2000) Bryson (2001) Saavedra and Torero (2002) Ebbinghaus (2002) Knox (2004)
and Eisenbrey (2007)
The question is (1) why workers are not joining labor unions (2) Are unions
not protecting the rights of workers or exerting efforts for securing benefits for them
A few research studies have looked at the negative image of the labor unions
Ghayur (1996-a) has pointed out that quiet often labor unionism is seen as undesirable
intervention in the smooth functioning of organizations with out realizing the positive
contribution it could make towards industrial peace harmony and progress Employers
allege that labor unions only talk about workersrsquo rights and ignore their obligations
They believe that unions are largely responsible for low productivity and lower
production
4
13 PURPOSE OF RESEARCH
The purpose of this research is to answer three questions
1 Are unions protecting the rights of workers or exerting efforts for
securing benefits for them
2 Do labor unions play any role in promoting physical intellectual and
emotional development of workers and
3 Do unions put any effort to enhance the productivity of the workers and
improve peace at place of work
The effectiveness of trade unions in promoting HRD is determined by some of
the benefits workers receive due to unions Particularly the focus is on the role of
unions in
1 Securing financial benefits for workers in the form of wage rise
bonuses and other allowances
2 Securing non financial benefits for workers like health facilities
workersrsquo education better working conditions decrease in working
hours increase in annual leaves training opportunities etc
3 Giving the workers sense of awareness about their rights
4 Improving the productivity or efficiency of the employees
5 Making harmony at work place between the management and
employees and making efforts for a peaceful industrial atmosphere
14 RESEARCH QUESTIONS
1 To what extent the unions in Pakistan are effective in development of
HR by securing benefits for workers such as
i) Wage rise
ii) Fringe benefits like Bonus
5
iii) Job Security
iv) Time decrease or resistance against time increase
v) Health or Medical treatment facilities
vi) Education facility
vii) Overtime payment
viii) Better working conditions
ix) Leaves increase or resistance against leaves decrease
x) Post-retirement benefits like pension
xi) Arranging recreation facilities
xii) Training opportunities
xiii) Decreasing wages inequality
xiv) Informing workers about their rights
xv) Children education facility
2 To what extent the unions in Pakistan are effective in promoting
employersrsquo interest by developing HR by putting efforts in
i) Motivating workers for increasing productivity improving
efficiency
ii) Improving peace and harmony at workplace
The answers of these questions will determine the effectiveness of unions in
promoting Human Resource Development (HRD)
6
15 SIGNIFICANCE OF THE RESEARCH
The findings conclusions and recommendations of the study will be beneficial
for
1- Governmentrsquos labor policy maker to frame out workers friendly
policies
2- Employers while deciding workers benefits
3- Unions while demanding facilities for workers
4- Workers while making decision of electing their unionCBA
5- Industrial Relations researchers to search further in the matter
16 LIMITATIONS OF RESEARCH
The limitations of the study are
1 The sample covered in the study is only individuals of Rawalpindi Islamabad
and therefore the results can not be generalized to whole of Pakistan
2 The role of trade unions in promoting HRD is measured through employeersquos
benefits and that too is based on the responses of the workers which may
introduce biasness in the results
3 The scale used in the questionnaire for measuring performance of unions is
arbitrary and that too can introduce bias
CHAPTER 2
LITERATURE REVIEW
lsquoHealth and strength physical mental and moral are the basis of industrial wealth while conversely the chief importance of material wealth lies in the fact that when wisely used it increases the health and strength physical and mental and moral of human race
Alfred Marshall (1890) quoted in World Bank Report (1991) 21 SCOPE AND IMPORTANCE OF HUMAN RESOURCE
DEVELOPMENT
The ultimate goal of human resource development is to improve the quality of
life of people The human resource development strategy is not merely providing
necessary skills and enabling workers to secure employment rather it encompasses all
those activities which lay the foundation for a fuller and more productive utilization of
the total human resources The concept of HRD implies physical intellectual
emotional political spiritual and all other facets of human development Food
nutrition and freedom from disease are important inputs which make people
productive members of a nation Physical development comes from good nourishment
and medical care Intellectual development comes through the process of education
and socialization Social development involves developing the ability to live as the
member of the society or a group and contribute to it at the same time deriving
benefits from it The need for existence of all human beings makes this development
imperative Political development ensures human dignity through freedom of
expression democratic participation and an opportunity to influence things that in turn
influence the individualrsquos living Moral and spiritual development is required to bring
order discipline and peace in the life and ensure his comfort Thus all forms of
development of people can be included in the definition of HRD Rao (1995) wrote
8
that HRD leads to human satisfaction and the quality of life which is the ultimate goal
Developing people is an important goal of all development activities (plans policies
programs establishment of new structures mechanism) These developments
(economic technological ecological agricultural industrial etc) are ultimately meant
to serve people in terms of improving their happiness through better quality and
standards of life
Human resource development holds the key for economic development by
enabling people to become more productive because economic development depends
upon level of industrial activity which is dependent upon the productivity of human
resource Productivity of human resource depends upon its competencies and
conditions (through public policy programs and other interventions to help the
people) to apply these competencies These conditions are Physical fitness and
motivation Fashoyin (1997) opined that the workers in competitive economic
environment become more important agent in mobilizing all factors of production
towards achievement of a competitive advantage But this is possible by motivated
workforce And motivation of the workforce to commit itself to work and maintain
uninterrupted and effective operations further depends on satisfaction of workers
Worker would be healthy when they are well nourished and physically fit and
motivated when they enjoy better quality and standard of life This would be achieved
when they would receive proper share in the production or development in the form of
increased income or financial benefits enabling them to purchase potent diet
comfortable working conditions proper working hours leave for leisure recreational
facilities and self respect
Rao (1995) is of the view that productivity is determined by the number of
hours of work and its intensity And undernourished or sick person can not work long
or properly Absence of medical facilities further reduces productivity Increased
expenditure on food to the extent it raises productivity can be termed as investment
Better diet housing and control of communicable diseases have raised the quality of
life everywhere
9
A World Bank (1991) study quoted a text of 1890 of Alfred Marshall who
wrote that lsquohealth and strength physical mental and moral are the basis of industrial
wealth while conversely the chief importance of material wealth lies in the fact that
when wisely used it increases the health and strength physical and mental and moral
of human race By conducting some studies World Bank (1991) in its report
concluded that better health and nutrition raise workersrsquo productivity decrease the
number of days they are ill and prolong their potential working lives In Sierra Leone
a 10 percent increase in calories in-take of farm workers consuming 1500 calories a
day raised their output by 5 percent Similar results have been found among Kenyan
road construction workers By reducing morbidity and debility the malaria eradication
program in Sri Lanka in the 1940s led to a ten percent rise in incomes A study of
Basta et al (1979) on the rubber plantation workers in Indonesia revealed that
treatment of anaemic workers with iron tablets for a period of 60 days resulted in an
increase in productivity by 15 to 20 percent and the per capita cost of these tablets was
$ 008 Levin (1986) found that out put increases by about 10 to 20 percent for every
10 percent rise in haemoglobin level
Rao (1995) mentioned study of Behrman and Deolalikar (1998) who came to
the conclusion that lsquoNutrientrsquo intake might affect productivity without altering
indicators of health status because nutrient changes may be transferred largely to
energy expenditure change including that are productivity related
World Bank (1991) concluded after analysis of household survey data from
nine countries suggesting that economic effects of illness may be substantial An
average adult worker in Peru might expect to be ill 45 days a month and misses about
one day of work as a result in Ghana the corresponding figures were 36 and 13
days In the United States workers aged between 18 and 44 miss on an average one
quarter of a dayrsquos work in a month
If workers are unsatisfied they will quit the organization Quah (1993)
analyzed the studies of human resource development in four countries ie Japan
Singapore South Korea and Taiwan and concluded that comprehensive reforms are
needed in public personnel management in the direction of attracting retaining
10
developing and utilizing competent employees Rao (1995) expressed that people will
be un-satisfied and lose motivation if not properly paid They will quit the
organizations causing increase of turnover and leading to increased expenditure of
selection recruitment and training
From the above discussion it is revealed that HRD is to develop competencies
of the people and improving their health and quality of life by providing them better
share in the income of country or any firm in the form of better salary and other
financial benefits (bonus health allowance education allowance recreation
allowance etc) boasting their motivation by reducing the remuneration gapes between
different categories of people providing them more leisure by reducing working
hours comforting their lives by bettering work places and developing socially by
giving them representation freedom of expression and satisfying them by providing
security of job and removing their fears
For expressing the importance of HRD Tan (1996) quoted the saying of a
Chinese philosopher Guanzi (551 - 479 BC) that
When planning for one year theres nothing better than planting grain
when planning for ten years theres nothing better than planting trees
when planning for a lifetime theres nothing better than planting men
In his own words Guanzi explained that grain is something that is planted once
and produces only a single harvest Trees are planted once but may produce ten
harvests Men are things that are planted once but may produce a hundred harvests
22 PLIGHT OF WORKERS AND NEED OF INDUSTRIAL RELATIONS
Workers or labor class is the major and most important human resource of any
country and they are developed through better quality and standards of life But
workers remained undeveloped because of being under privileged deprived and
victim of the exploitation of employer Khan (1992) mentioned that labor was
considered as a commodity and was subject to economic laws of supply and demand
11
Conditions of workers remained area of concern for centuries particularly after
the industrial revolution No doubt industrialization as a consequence of industrial
revolution was most forceful process in the known history that brought many
comforts in human life But it is a very bitter fact that this revolution also brought
problem of exploitation of workers who became enslaved to the dictates of machines
and capital owners under their profit motives According to Shafiq-ur-Rehman (2003)
employers exploited workers for maximizing profit Colman (2000) wrote about USA
that the industrial revolution for the first time brought thousands of women and
children in the workforce In New England textile mills used to employ young
unmarried daughters of farmers and these textile lsquomill girlsrsquo often worked 12 to 15
hours a day lived in strictly supervised company boarding houses had to be silent
during work and could be fired for using profane or improper language
Situation is still bad at some places and according to ICFTU (nd) report in
Guatemala in some factories workers usually work for 9-10 hour a day and paid
between $1 and $2 per day and sometimes they are forced to work as long as 18 hours
In some factories to meet the demand of large orders workers are given
amphetamines so that they can work 60 hours without stopping
Similarly Amnesty International (2002) also reported that in China the plight
of workers is serious and there are widespread violation of international standards
causing serious injuries and deaths
One reason of these hardships in the words of George (2004) is that a majority
of working people possess labor as their only resource to carry on with their lives
There was a need of a system encompassing institutions dedicated for the
protection of workers and solution of their problems as well as to maintain industrial
peace
Therefore institution appeared in the form of labor unions and system appeared
in the form of Industrial Relations
12
Industrial relations is a tripartite system having government employers and
labor unions as its three components The Wikipedia defines this as
ldquoField of industrial relations looks at the relationship between management
and workers particularly groups of workers represented by a union
Governments set the framework for labor relations through legislation and
regulationrdquo (Wikipedia-a)
221 Emergence of Labor Unions
The exploitation of workers led them to unite for the solution of their problems
at a platform This platform was labor union In the words of Brohawn (nd) the union
was democratic societys original answer for addressing injustices at the workplace
which attended the birth of the Industrial Revolution In fact unionism was born to
bring social and economic justice for working people Ehrenberg and Smith (1985)
asserted that labor unions are the organizations whose primary objectives are to
improve the pecuniary and non pecuniary conditions of their members Workers
expected their unions to fight for their rights by organizing and financing strikes
According to Shafiq-ur-Rehman (2003) workers formed unions which had to adopt a
confrontational approach towards the employersAbout influence of unions Thomas
(1999) wrote that trade unions are a large organized group in civil society which
brings a unique contribution to the development of community because of direct
involvement with economic systems of production and distribution They also
influence the course and content of employment and social and economic policies
What were and still are the problem of union making are discussed in
following lines
222 Unionization Problem
Emergence of unions in every country and society was and is still a difficult
evolutionary process Literature has shown that organization of workers was not an
easy task and unions had to bear the wrath of state and employer and those whose
13
interests were against unionization Unionization is the democratic right which has
been acknowledged in UNO declaration of human rights and by ILO conventions
2221 Opposition of unionization by state
Rizvi (1973) a Pakistani author wrote that government is one of the important
parties in the industrial labor relations especially when there is high elasticity of
demand but low elasticity of supply of labour But what has been the role of
governments is narrated in lines below
Ghayur (1996-a) wrote about Pakistan that State has also erected barriers by
framing laws discouraging to unionization to maximum extent by imposing difficult
conditions to fulfill particularly in registration Government of Pakistan has
established Export processing Zone (EPZ) in Karachi which is exempted from the
application of certain labor laws especially the right to form a union and to go for a
strike Ghayur also wrote that in Pakistan unionization and collective bargaining is not
permitted to all public sector employees and activity has been brought under Essential
Services Act in many public sector organizations
According to report on lsquoHuman Development in South Asia (2003)rsquo in
Pakistan lsquothe Essential Services Management Act of 1952rsquo was the first hurdle in the
history of the unionization process of Pakistan It restricts the freedom of association
and collective bargaining rights of various groups of workers Employees of Pakistan
International Airlines (PIA) Pakistan Television Corporation and the Civil Aviation
Authority (CAA) as well as workers in postal teaching electric supply and radio
stations can form unions but cannot join a strike The workers in the EPZs are also
denied their trade union rights in Pakistan Export Processing Zones Authority
Ordinance (EPZAO) of 1980 and Export Processing Zone Rules (EPZR) of 1982
exempt the workers in EPZs from the provisions of IRO Workers in EPZs cannot
establish trade unions bargain collectively or organize a strike
Similarly Pakistani researchers Abbas and Hussain (2007) wrote about
Pakistan that a range of restrictions deter the activities and effectiveness of union
organizers One of such laws that restrict trade union activities is the Essential
14
Services Maintenance Act of 1952 (ESA) which includes government services and
State Owned Enterprises (SOEs) like power generation and transmission energy
production ports and the state-owned airline This law generally invoked to ban
strikes and is also used to hold back the right to collective bargaining
Human Rights Watch (1998) reported that in China making of independent
trade unions was illegal union makers were suppressed by the government and their
leaders were imprisoned There is one official union the All China Federation of
Trade Unions (ACFTU) which is under the control of the Communist Party which
appoints all union officials All workplace unions must be affiliated to the ACFTU
Amnesty International (2002) also reported that in China independent labor unions are
not permitted and All China Federation of Trade Unions (ACFTU) a government
controlled trade union is the only national body which governs trade unions activity
but workers had been struggling to create independent trade unions as an alternative to
the ACFTU since the late 1980s For example in May 1989 groups of workers in
various cities formed Workers Autonomous Federations (WAFs) but they were short-
lived and banned by the authorities and later in a crackdown on 4th June 1989
organizers were arrested and prosecuted on counter-revolutionary charges Since
1989 workers made other attempts to form independent trade union but they were
again jailed In 1994 workers who attempted to set up the League for the Protection of
the Rights of Working People (LPRWP) were arrested in Beijing
Bernard (1998) reported about USA that Supreme Court decisions rolled back
union and worker rights as well as amendments to labor law have restricted union
organizers while freeing management to penalize workers who attempted to exercise
their rights
UNDP (2000) in its report quoted that ICFTU in a Press Release dated 6998
reported that in 1997 nearly 300 trade unionists were killed for attempting to organize
labor unions 1681 were tortured or subject to physical mistreatment 2329 were
detained by police or military units and nearly 3500 were intimidated Press release
also alleged that even in United States an estimated 10 percent of workers
15
campaigning for unions are illegally fired 21427 workers lost their jobs in year 1998
for union activities
UNDP (2000) report further revealed that in developed countries despite the
force is not employed as frequently as in the third world many western nations still
have strong pro-corporate factions that have tried to render labor unions powerless
through legislative channels As Kremer and Olken (2001) expressed that even in
USA union formation is not so smooth and under Federal law covering most
industries if 30 of workers sign a petition calling for an election a certification
election supervised by the NLRB is held A union is recognized if more than half the
workers vote for it
Similarly Amnesty International USA (2005) reported that in Philippines
despite the government has ratified 22 of the International Labor Organizations (ILO)
conventions on labor standards including convention No 87 and No 98 the ILO has
received several complaints of non-compliance with these conventions Complaints
including instances of alleged extra-judicial execution of trade union leaders have also
been received
Even after union formation governments hamper the smooth functioning of
unions by different means DeSilva (1997) reported that South East Asian countries
took measures to restrict trade union actions and control unions as well as to avoid
union multiplicity However in some countries government has favored unionization
Government in Thailand for development of sound workplace labor relations
encouraged employers and employees and their organizations by initiating a program
Similarly in Japan workplace relations have been facilitated by the enterprise-union
system because many issues relating to competitiveness needed to be addressed at the
enterprise level and it has also been realized that competitiveness can be enhanced
through sound labor relations Nathanson and Associates (1999) wrote that in Israel to
avoid collective agreements the government as an employer is reducing the
proportion of permanent tenured employees and hiring more and more of its
employees through temporary manpower agencies in the public service and it is very
difficult to organize these temporary workers Waisgrais (2003) reported that in
16
Argentina attempt was made by the state to dismantle the trade union apparatus by
measures such as the suspension of all union activity the abolition of negotiations the
revocation of the right to strike and the removal of social work from the unionsrsquo
sphere of activity
2222 Opposition of unionization by employer
Employers in some countries lose no opportunity of exploiting the workers in
the form of paying low wages and other facilities but unions offer resistance and try
to protect rights of workers Employers put hurdles in the work of unions at the time
of union registration and defame the unions by charging that unions are corrupt It has
been elaborated in lines written below by quoting relative researches
Mills (1994) wrote that management has been hostile to unions during most of
American history American employers mostly opposed the growth of unions often
with the help of the law and the courts and in periods of conflicts federal and state
governments more frequently supported employers instead of unions
Brohawn (nd) expressed that unions are considered by most business
executives to be the kiss of death Small businesses in particular fear unions as an
outside force antagonistic to the interests of the company
Khan (1992) wrote about Pakistan that when worker gets job he becomes
reluctant to take part in unionrsquos affairs for fear of being victimized by management so
a common worker does not care to join a trade union So he concludes that in Pakistan
labor is still unorganized and has not been able to develop a sense of unity
Ghayur (1996-a) also analyzed that in Pakistan every effort was made in
private sector to resist union formation in private sector so if employer does not favor
the formation of union the matter can be prolonged for years Even foreign
companies resist as in Pakistan union of Korean Company (Daewoo) constructing
Motorway could not be registered despite of their best efforts Shafiq-ur-Rehman
(1973) pointed out unsatisfactory relationship between participants of industrial
relations in Pakistan and other developing countries and asserted that attitude of
17
employer is still very authoritative and paternalistic requiring a higher degree of
obedience and loyalty from their working force Their practical strategies have been to
insist on and claim all economic and non economic rights and for get about their
duties
Human Rights Watch (1998) also referred that South Korean companies
operating in Asia have been accused from all quarters of violating workers rights in
Vietnam China and Indonesia The Daewoo Construction Company did not allow the
free functioning of trade unions The case of the Daewoo Motorway Project in
Pakistan which began in 1991 where ten thousand employees were working on the
motorway between Lahore and Islamabad had been reported of use of violent physical
abuse against workers A complaint for this was lodged with the ILO
Employers are hampering the unionsrsquo activities in many ways as Hyman
(1999) expressed that Management always had hostile attitude towards unions In
some countries there has been a growing unwillingness by employers to accept trade
unions as collective representatives of employees while in other countries if collective
bargaining has survived its scope has been reduced and managements have
established new forms of direct communication with employees as individuals In a
report about Lithuania Dovydeniene 2002) wrote that employers strictly forbade their
employees to join unions and threatened to dismiss anyone who showed initiative or
took part in any union activity Workers threatened by unemployment had little
choice in the face of such exploitation
Bray et al (2005) asserted that according to AWIRS (Australian Workplace
Industrial Relations Survey) 1995 overall 88 of managers indicated a preference not
to deal with trade unions and only 7 of unionized workplaces believed that unions
effectively represented the interest of their members
223 Why Workers Join Unions
Bray et al (2005) wrote that people join unions because of dissatisfaction with
economic aspects of job a desire to influence those aspects of the work environment
18
through union-oriented means and a belief that the benefits of unionism outweigh the
expected costs
Holley jr et al (2001) expressed that employees join unions when they are
dissatisfied with physical characteristics of workplace low wages lack of benefits and
believe that unions will help them to achieve them job related conditions Like all
formal organizations unions also satisfy the membersrsquo need by providing means
enhancing a sense of identity and maintaining self-esteem They satisfy the workersrsquo
need of affiliation belonging and status that is at higher level than improved wages and
working conditions
Aidt and Tzannatos (2001) asserted that the desirability of unions depends on
many factors including (a) what unions do (b) how collective bargaining is
organized and (c) the effectiveness of dispute resolution mechanisms
According to Shafiq-ur-Rehman (2003) reasons behind workersrsquo joining
unions are lsquohigher wages and better working conditionsrsquo lsquojob securityrsquo lsquosocial needsrsquo
lsquoPeer groups pressurersquo and self fulfillment
Freeman (2007) analyzed that 70 of workers in 2005 believed that employers
fell short in providing regular cost-of-living raises to employees So workers tendency
towards unions has increased during last decade Freeman on the basis of his
researches with his companions based on WRPSs (Worker Representation and
Participation Surveys) 1990 and 2006 concluded that workers today want as much or
more of a voice in their workplace than they did in the 1990s and want a workplace-
committee form of representation The proportion of workers who want unions has
risen substantially over the last 10 years and workers want unions more than ever
before Because there are substantial gaps between workersrsquo desire to influence the
decisions and their actual influence in several important features of workplaces Bread
and butter gaps relating to issues of benefits and pay are greatest followed by the gaps
of training issues The gap between issues of what workers want in deciding how to
organize their work is smallest
19
The issue at the heart of this paper is to discuss the role of unions in making
efforts for solving the problems of workers in relationship with employers and in
relationship with state or government To avoid this paper from becoming too lengthy
actual research has been restricted to determine the efforts of unions only and not the
quantitative measure of their outcome
23 UNIONS ROLE FOR WORKERS BENEFITS
There have been difficulties in union formation and after formations unions
have also faced a lot of problems while running their business Now it is to see what
the role has been played by unions for benefit of workers and to what extent unions
succeeded therein In this regard researches have been conducted in different countries
or regions in the past which show struggle of respective unions for benefits of workers
such as rise in wages decrease in wage inequalities improvement in working
conditions and living standard betterment in quality of life reduction of working time
job security more paid leaves better pension facility employer sustained insurance
facility health care and health insurance and better health and occupational safety
conditions workers training and education facilities workers family welfare and
cooperative facilities for workers giving the workers awareness of their rights
reducing the fear of employer promulgation of workers favoring laws getting the
enforcement of these laws etc and during this what attitudes unions adopted
aggressive or cooperative constructive or conflicting selfish or sacrificial peaceful or
militant Researches are here to support and endorse these points
According to Guisinger and Irfan (1975) government intervention trade unions
and employer himself are responsible for wage increase
Sennholz (1983) asserted that now it is acknowledged that all labor
improvements are an achievement of the combined efforts of labor legislation and
union activity The credits for this goes to humanitarian legislators and courageous
union leaders for phenomenal rise in wage rates reduction of daily hours of work the
disappearance of child labor the limitation of woman labor and many other results
20
Khan (1992) narrated that trade unions protect material standards of living for
their members and also achieve security of service status in society and self respect
for themselves
According to studies of Nathanson et al (1999) in Israel Inoue (1999) in Japan
and Fahlbeck (1999) in Sweden in socioeconomic field unions rose to the challenge
of meeting the changing requirements of an industrial society for example
established themselves as credible partners and provided a variety of services to
members such as mutual aid credit insurance housing and consumer services mostly
through cooperatives linked to union membership
Jose (2000) concluded that unions played a conduit role for turning economic
growth and prosperity to workers in the form of improved standards of living and the
benefits of collective bargaining in terms of wage and non-wage benefits particularly
as reduction of working time Unions also helped to maintain a wage structure which
minimized income disparities between workers He further expressed that trade unions
are to lead an initiative for a social minimum wage consisting of the right to income
security (security of job) and other entitlements such as education health shelter and a
safe environment (workplace) In Scandinavia the pre-eminent position enjoyed by
unions in terms of membership and influence over public policies was anchored in the
services that unions provided to their members
According to Hirsch and Schumacher (2000) on balance unions are detrimental
to company performance and economic efficiency but in addition to unionrsquos negative
effects unionrsquos representation and collective bargaining provide workers with varying
degree of workplace democracy collective voice monitoring of working condition
protection from discrimination and enforcement of contractual provisions
Lovell et al (2002) using data of Current Population Survey US Census
Bureau found that workers in the retail food industry who are union members have
significantly higher wages higher rates of health insurance coverage larger
employment-based contributions to health insurance premiums and higher rates of
pension coverage than non-union workers Full-time and part-time workers women
and single mothers in the retail food industry all benefit from union membership
21
Shafiq-ur-Rehman (2003) wrote about Pakistan that now role of labor unions is
broad based and in additions to their collective bargaining role unions are involved in
social educational and recreational activities He also expressed that unionization can
the morale and motivation of the work force by improving the nature of jobs or by
changing workersrsquo perception of their jobs
Robles et al (2004) are of the view that unions are also promoters of social
capital in the economy by representing workersrsquo petitions exerting a pressure aimed
to improve conditions at the workplace and acting as employeesrsquo voice easing
communication between workers and employer which leads to help degree of job
turnover consequently reducing training cost of new employees Robles et al asserted
about unionsrsquo role for wages that empirical evidence has shown that unions exert an
upward pressure on wages
231 Wage Rise
The difference of wages between unionized and non-unionized workers is
lsquounion wage premiumrsquo and a major reason of workersrsquo joining of unions Pencavel
(1995) asserted that a primary concern of labor unions is to raise the wages of the
workers they represent because they act as wage-makers rather than wage takers this
role identifies unions as monopolies and according to Bryson (2001) union recognition
by employer for pay bargaining is basis for union influence in the workplace
According to Aslam (1982) a Pakistani researcher wages are of great
significance in an economy because they represent income to the workers cost to the
business men and are a major source of their purchasing power and have an important
bearing on the level of economic activity
Freeman and Medoff (1984) concluded that wage effect of union increased in
the 1970s when unionized workers won wage gains exceeding those of their nonunion
peers It is greater for less educated than more educated workers for younger than for
prime-age workers and for junior than for senior workers and it is greater in heavily
organized industries and in regulated industries than in others As a result of the
existence of trade unions in some unionized firms workers in nonunion firms trying to
22
avoid unions through positive labor relations obtain higher wages and better
working conditions because of the threat of unionism
As per findings of Cassoni et al (2002) the unions increase both wages and
employment and promote investment because the firms substitute labor by capital
Below mentioned studies reveal quantitative unionsrsquo efforts in wage rise or
mitigating wage salary differences
Aidt and Tzannatos (2001) referred that workers either union members or
covered by collective agreements on average get a wage markup over their non
unionized (uncovered) counterparts which is almost 15 percent in the United States
and in most other industrial countries is 5 to 10 percent It appears high in Ghana
Malaysia Mexico and South Africa but relatively low in the Republic of Korea
Holley jr et al (2001) quoted that unionsrsquo wages ranged between 10 and 15
percent higher than non union wages They further analyzed that by 1970s the union
wage differential climbed to 20 to 30 percent This impact was more on wages of blue
collar younger and less educated employees
Belman and Monaco (2001) using the data source of Current Population
Survey 1973-1995 of US Census Bureau found that union membership remains an
important determinant of wages with members earning 18 to 21 more than their
non-union counterparts The earnings of truck drivers fell by 21 between 1973 and
1995 and the primary sources of wage decline and increased wage inequality have
been deregulation a declining manufacturing wage and declining union membership
Blanchflower and Bryson (2002) concluded that both in UK and USA despite
union membership is declining unions are able to raise wages substantially over the
equivalent non union wages and unions in the countries Australia Austria Brazil
Canada Cyprus Denmark Japan New Zealand Norway Portugal and Spain are also
able to raise wages by significant amount and estimates from their 17 examined
countries were averaging 17 percent However in countries like France Germany
23
Italy Netherlands and Sweden where union wage settlement spill over in to non-
union sector there is no significant union wage differential
Klaff and Ehrenberg (2003) using the data source of survey conducted in USA
by the Association of Higher Education Facilities Officers 1997-1998 investigated that
union coverage affected staff salaries at 163 US colleges and universities and
estimated a union salary premium of 9- 11
Cleveland et al (2003) using Survey data for Canadian childcare workers in
1991 found that the union impact on wages was 15
Mishel and Walters (2003) found that unions raise the wages of unionized
workers by roughly 20 and raise total compensation by about 28 They also found
that in USA according to estimates from household surveys in 1990s there was a union
wage premium ranging from 15 to 25 The unionizations impact on wages goes
beyond the workers covered by collective bargaining to affect nonunion wages and
labor practices eg in USA non-unionized high school graduates earned 20 to 55
higher wages in industries with 25 unionization than they did in completely non-
unionized industries
Hirsch (2003) also reported that in one study in 2001 the ECEC data showed a
large gap in benefits between union and non-union workers and hourly compensation
for nonunion workers was $1998 whereas compensation for union workers was $
278 Unions not only raise wages of unionized workers but also affect nonunion
wages albeit to a far lesser extent than union wages
Kang (2003) in a study in Singapore estimated approximate union wage effect
in the range of 02 to 32 percent
Waisgrais (2003) also narrated in a report about Argentina with reference to
several studies regarding the role of the unions and in particular to collective
bargaining that workers covered by collective agreements receive higher wages than
those who are not
24
Knox 2004 wrote that unionized workers are still doing well despite the
flagging numbers as in USA with 8 of workers in the private sector unions still
exercise real power over contracts and there are substantial wage mark-ups In Britain
that isnt the case theres no wage mark-up anymore
However according to several studies unions could achieve either marginal or
no improvement in wages Inoue (1999) revealed that in Japan the automatic annual
pay raise system is widely adopted and wages rise according to years of service
which serve as an indicator for skills In terms of real wages unions have gained
marginal improvements during the 1990s
Similarly Anyemedu (2002) found that in Ghana government considers wage
restraint as a means of attracting foreign investment Hence the government and
employers have succeeded in installing the capacity to pay of employers as virtually
the only factor to be taken into account in wage determination
232 Reduction in Wage Inequality
Labor unions also exert efforts for increasing equality and reducing
discrimination in wages of workers
Freeman and Medoff (1984) opined that unions raise blue-collar earnings
relatively more than white-collar earnings thus reducing inequality between those groups
Unions by adopting pay policies that limit managerial discretion in wage-setting reduce
inequality among workers in the same establishments and among different establishments
A study of The World Bank (1995) revealed that unions eliminated discrimination
of income between workers so during a study in the Republic of Korea in 1988-90 it was
found that unions placed great value on wage equalization and as a result the degree of
wage dispersion in the unionized sector was 52 lower than in the non-unionized sector
In Mexico union action also helped to reduce discrimination and another study using wage
data for 1989 concluded that in the nonunion sector men enjoyed a 175 wage
advantage over women with identical skills and experience but there was no significant
wage differential between men and women in the unionized sector Similarly the study
25
found a significant wage disadvantage for indigenous people in the non-unionized sector
whereas no discrimination in firms covered by trade unions
Stiglitz (2000) Senior Vice president World Bank mentioned admiringly the
role played by organized labor in developed countries in stabilizing industrial
relations preserving firm-specific knowledge and organizational capital and
mitigating the income inequalities
Aidt and Tzannatos (2001) also concluded that unions reduced the wage
differences particularly between unionized workers and skilled and unskilled workers
Card et al (2003) reported similar result that within workers groups of same
skill for union workers wage inequality is always lower than nonunion workers
233 Fringe Benefits
Sennholz (1983) stated that most people expect more from their work than
wages These things are fringe benefits and provide additional remuneration to
employees in the form of vacation and holiday pay sick pay the cost of pensions and
employer contributions to various benefit systems
Cleveland et al (2003) found that the union impact on fringe benefits was in
line with union effects found in other better-compensated work and they found
substantial returns to education occupational level and firm-specific experience
George (2004) concluded that the demand of workers for social justice is
justified and workers are entitled to an equitable distribution of the nationrsquos wealth on
the reasons that labor is an equal partner with capital and management and laborers
are the primary contributors to economic growth of a nation So the workers should be
paid a fair living wage for their labor and certain fringe benefits such as free
healthcare paid holidays and job security George reported that several claims such as
bonuses overtime payments working hours shift duty allowances gratuities
uniforms transport allowances and housing vehicle loans are negotiated between the
union and the employer
26
Carty (2003) referred that in Mexico Consequence of replacement of CROC a
government backed union by an independent union workers receive a wage increase of
10 and a 5 increase in cash benefits and attendance bonuses Workers now make
up to 40 more pay than they were making under the old contract
234 Job Security and Employment
As per analysis of Inoue (1999) for Japanese trade unions safeguarding their
members from any threat of unemployment has a special importance so Japanese trade
unions do not accept lay-offs During the 1950s and1960s there were many protracted
labor disputes caused by threatened dismissal Trade unions lost most of these big
disputes but the losses incurred by the companies were also enormous Therefore in
Japan there is a tacit agreement between labor and management to avoid massive lay-
offs as far as possible This agreement is manifest in employment adjustment practices
during the recession in the 1990
Wong (2000) expressed that employment security and fair distribution of the
benefits of economic growth have been the primary concerns of the labor movement in
Singapore
Farber (2001) quoted the Freemanrsquos analysis that ldquoworkers in union jobs are
less likely to quit reflecting the higher level of wages and benefits this is due to
unions provision of mechanism for lsquovoicersquo as an alternative to lsquoexitrsquo in addressing
workplace concernrdquo
Aidt and Tzannatos (2001) also concluded that in unionized firms voluntary
job turn-over is lower and the job tenure is longer The evidence on this finding from
Australia Japan Malaysia the United Kingdom and the United States seems quite
robust On the other hand layoffs particularly temporary layoffs are more frequent in
unionized firms than in non-unionized ones
According to Lee et al (2001) Labor unions in Korea strongly opposed the
introduction of redundancy lay-off by massive nation wide strikes
27
Unions also give courage and awareness therefore according to Mishel and
Walters (2003) Union members have significantly less anxiety about losing their job
or suffering other employer-imposed penalties for taking leave
ILO (1999) reported that the trade unions cooperated in Singapore with the
state and the employers in efforts to maintain full employment to set wages at levels
which maximize employment therefore unions have accepted temporary wage cuts in
order to save employment
Vedder and Gallaway (2002) asserted that unions are associated with lower
rate of growth in income and jobs Occupations and industries with high rates of union
density have had less vibrant job growth in recent decades Widespread unionization
of an industry is often associated with initial sharp declines in employment as the
steel industry demonstrates
Addison (nd) concluded from survey in UK and reported a retarding role of
unions in employment growth as unionized establishment in 1980s tended to grow 3
percent less per year than their non unionized counterparts Union plants were more
likely to be shedding labor and unions induced reduction in employment growth in
26 for 1989-90
To overcome loss of unemployment and slow growth in employment caused
by unionization unions played role in launching unemployment insurance schemes
and unemployment benefits Katz et al (1993) reported that unions in Sweden and
Denmark have played a constructive role in the administration of unemployment
benefits
Bernhardt et al (2002) studied the Wisconsin Regional Training Partnership
(WRTP) which is an association of 125 employers and unions dedicated to family-
supporting jobs in a competitive business environment and found that the WRTP
members have stabilized manufacturing employment and contributed about 6000
additional industrial jobs to it over the past five years
28
According to Mishel and Walters (2003) unionrsquos representation increases the
likelihood of an unemployed worker in a blue-collar occupation receiving
unemployment insurance (UI) benefits by approximately 23 They also referred that
role of unions is pivotal considering unemployment insurance acts as a stabilizer for
the economy during times of recession
Unions have also operated Unemployment Insurance themselves as Zutavern
(2005) reported the existence of unions operated voluntary unemployment insurance
schemes in Denmark Finland and Sweden
Budd and McCall (2004) using and analyzing data source of January 1996
Current Population Surveys Displaced Worker Supplement of US Census Bureau
found that eligible blue-collar workers laid off from union jobs are approximately 23
more likely than comparable nonunion workers to receive unemployment insurance
benefits
235 Time Reduction (Duty Hours)
Unions have struggled to minimize the duty time and working hours which
were once more than ten hours in a day or more than 70 hours a week (even more than
3000 hours a year) in 19th century But in 20th century are 8 hours a day or 40 hours a
week and in some countries even less than this However the level of success is
different in different countries
Colman (2000) reported that in USA in 1835 General Trade Unions in a
number of cities led a successful general strike to shorten the working day from
fourteen hours or more to ten hours and in Philadelphia a group of Irish laborers
struck for time reduction and marched through the city chanting lsquosix to sixrsquo In same
year in Dover New Hampshire girls and boys struck the cityrsquos mills and won a
reduction of hours from 135 to 12 hours per day Their effort succeeded after a
century and time was reduced to eight hours As Sennholz (1983) wrote that in USA in
1938 the federal government passed Fair Labor Standards Act which imposed
minimum wage rates provided for a 40-hour week and also allowed for overtime
work if paid at time and one half and it is public opinion that all labor improvements
29
are an achievement of the combined efforts of labor legislation and union activity ILO
(1999) reported that unions in Germany have negotiated for a 35 hours week in some
sectors and regions early retirement schemes part-time work educational leave and
family leave
Japanese Labor Union Rengo presented a reduction in working hours and
adoption of policies favoring labor Rengo sought the introduction of a five-day week
In 1993 Rengo adopted the policy delineated in the New Medium-Term Working
Hour Reduction Plan with the target of 1800 working hours by fiscal year 2000
(Inoue 1999)
This time reduction was prevailing everywhere at large extent as Aidt amp
Tzannatos 2001) wrote that hours worked is lower among unionized than non-
unionized workers This is true for both total and normal hours
Buchmueller et al (2001) also found that union workers work fewer hours per
week than non unionized workers and this difference was 3 hours from 1972 to 1984
and after 1992 this difference is one hour per week
Lee et al (2001) pointed out that in 1997 in Korea flexible working hour
system was allowed with maximum of 48 hours per week cycle with the condition that
one week average will not exceed 44 hours or 8 hour a day
236 Payment of Over Time
Aidt and Tzannatos 2001) pointed out that unionized workers are more likely
to get paid for the overtime work that they do
According to Mishel and Walters (2003) employer compliance with the
overtime pay regulation rose sharply with the presence of a union because unions
often report violations to enforcement agencies
237 Paid Leaves
Budd and Mumford (2001) asserted that in UK trade union is one possible
institution for improving work-life problem and a primary mechanism for trade unions
30
in this regard is to bargain for additional employer-provided family friendly policies
including parental leave and paid family leave Unions appear to positively affect the
provisions of parental leave and job sharing options
Union workers have one week more vacation time than non-union workers
Union workers generally spend on leave slightly more time for illness their own or
illness of others which is approximately 14 week per year as compared to one week of
non-union members (Buchmueller et al 2001)
Aidt and Tzannatos (2001) stated that fringe benefits are more commonly
found among unionized workers than among non-unionized ones (in Australia Japan
Malaysia the United Kingdom and the United States) Benefits can include severance
pay paid holidays paid sick leave pension plans and so on
Mishel and Walters (2003) expressed that union workers also get more paid
time off which includes having 266 more vacation than nonunion workers and
according to another estimate the union workers enjoy 143 more paid time off
including vacations and holidays
238 Working Condition
Working conditions are of very importance for workers because they affect
their performance and productivity Khan (1992) wrote that an industrial worker
spends at least 8 hours a day three hundred days a year and about forty to fifty years
of his life period at workplace If the lives of the industrial people are generally
healthy happy and agreeable it is necessary that working conditions should be
healthy congenial and attractive and work itself should be made as interesting as
possible and relations between workplace workers and management should be
friendly and cooperative Robles et al (2004) asserted that enhancement of working
conditions in turn may increase inputsrsquo productivity Unions exert efforts for pleasant
working conditions
31
Thomas (1999) stated that trade union movement in South Korea fought for
basic labor rights and improvement of working conditions and it also has widely
known assertive role in the processes of re-structuring
Wong (2000) narrated that in Singapore the fundamental role of trade unions
remained to ensure fair wages and working conditions and to improve the standard of
living and quality of life of workers
239 Health Care and Social Security
Unionsrsquo role in securing health safety and welfare benefits for employees has
been found in following studies
Weil (1992) in his study made a comparison of OSHA enforcement in union
and nonunion construction sites and found that union sites face higher probabilities of
inspection and receive greater scrutiny during inspections than do comparable
nonunion sites
According to Buchmueller et al (1999) the role of US trade unions in
obtaining health and welfare benefits for their members dates to the 18th century and
in Britain a greater inducement for workers to join the union was support in sickness
or unemployment They also reported that in USA due to collective voice and other
factors union effects on the provision of health insurance are likely to be large
therefore unionized workers are more likely than non-unionized workers to receive
health benefits and the difference is depicted by higher probabilities of insurance
offers and higher take-up rates for union workers They further wrote that plans
offered by union establishments are about 20 percentage points more likely to be fully
financed by employers (494 percent vs 296 percent) than employers of non union
establishments They also asserted that in health plans in unionrsquos establishments
proportion of health insurance premiums paid by employers was 14 percent higher in
union settings Buchmueller et al found that in USA union establishments are 153
percentage points more likely to pay the full premium of insurance for family
coverage as compare to non-union ones (276 percent vs123 percent)
32
Stiglitz (2000) admitted that unions have played role in Health and safety
standards and had played also role in improvement of working conditions for workers
According to another study by Jose (2000) Histadrut a trade unions of Israel
grew in strength until the early 1990s with an impressive membership based on the
provision of services notably health care
According to Farber (2001) union members receive a larger fraction of their
compensation in the form of health insurance and pensions
Budd and Mumford (2001) also reported that individuals represented by a trade
union are more likely to receive traditional fringe benefits such as health insurance and
retirement plans
Adji (2002) expressed that in the Niger the union representing employees
working for the national social security scheme (CNSS) is preparing a social fund
designed to provide a supplementary pension and to pay the 20 per cent of medical
expenses which are not covered by the national scheme In Niger the USTN is
developing a health insurance project
According to Hirsch (2003) unionsrsquo workers receive more compensation for
risks than non-union workers
Mishel and Walters (2003) narrated that ldquoUnions had provided labor
protections for their members in three important ways (1) By identifying where laws
and regulations are needed and getting these laws enacted (2) Providing information
to members about workers rights and available programs and (3) By encouraging
their members to exercise workplace rights and participate in programs by reducing
fear of employer retributionrdquo Mishel and Walters concluded that unionized workers
are given employer-provided health and pension benefits far more frequently as
compare to nonunion workers and also provided with better paid leave and better
health and pension plans Unions also reduce wage inequality between workers and
workers groups because they raise wages more for low and middle-wage workers than
for higher-wage workers more for blue-collar than for white-collar workers and more
33
for workers who do not have a college degree Union members are 60 more likely
to file an indemnity claim than nonunion workers They also mentioned findings
quantitatively that 835 of unionized workers have employer-provided health
insurance and only 62 of non-unionized workers have such a benefit Unionized
workers are 244 more likely to receive health insurance coverage in their
retirement Employers with unionized workforces also provide better health insurance
paying an 111 larger share of single worker coverage and a 156 greater share of
family coverage and deductibles for unionized workers are 18 less They concluded
that in USA implementation of OSHA seems highly dependent upon the presence of a
union at the workplace
ILO (2005) reported that every year some 22 million people in the world
succumb to work related accidents or diseases so it is the daily grass root work of
labor unions to ensure the compliance of health and safety regulations at work
2310 Post Retirement Benefits (Pensions)
Unions also have an eye on the life of workers after the end of service For this
they exert efforts either in the form of arranging employer contribution or launch their
own pensions programs Unionrsquos effect on employerrsquos provision of retiree benefits is
shown in the several researches where unionized workers receive better pension
options and opportunities
Freeman and Medoff (1984) opined that unions alter the entire package of
compensation substantially increasing the proportion of compensation allotted to
fringe benefits particularly to deferred benefits such as pensions and accident and
health insurance which are favored by older workers These changes are on balance
to be viewed as a social plus
Bernard (1998) was of the view that trade unions in USA had been the most
successful labor movement in the world by enjoying the highest wage premium and
winning benefits like pensions health care and paid vacations for their members that
in other industrial countries working people could win only through political and
industrial action
34
Holley jr et al (2001) expressed that in 1999 unionized US employers per
hour paid benefit costs averaging $ 853 compared to non-union employer costs $466
These costs include pension payments payments for time not worked (such as
vacations sick leave paid rest and lunch breaks) insurance costs and legally required
payments (social security unemployment compensation)
Buchmueller et al (2001) reported that in 1983 union workers were nearly
twice as likely to participate as compare to non-union workers in an employer-
sponsored pension plan (766 percent vs 388 percent) and between the years 1988 to
1993 the unionrsquos effect on employer provision of retiree benefits increased
substantially and the unadjusted union effect rose from 101 percentage points to 167
percentage points
Similarly Mishel and Walters (2003) wrote that 719 of unionized workers
have pensions provided by their employers while only 438 of nonunion workers
enjoy this facility Thus unionized workers are 539 more likely to have pension
coverage
Ebbinghaus (2002) found that in Europe trade unions have gained or
enhanced their collective bargaining role in the area of private pensions in addition to
mandatory state pensions
2311 Training Opportunities
According to some researches unions are also taking interest in workers
training education and awareness either pursuing government or employers to arrange
training or arranging training programs themselves to build their skill and enhance the
earning capacity of workers
Therefore Aidt and Tzannatos (2001) wrote that unionized workers tend to
receive more training than their non-unionized counterparts especially company-
related training
Wong (2000) stated that in Singapore unions urged employers to invest in
training of workers and also negotiated training clauses in collective agreements and
35
sought to ensure higher subsidies from SDF for training of lower- skilled lower-
income workers She further wrote that NTUC and affiliated unions urged workers to
enhance their skills as a means to ensure employment security by keeping pace with
changing job requirements and to increase their earning capability in the longer term
In December 1996 to help workers to remain employable throughout life by providing
nationally certified skill training NTUC also approached employers to sponsor their
employees for skills upgrading programs On 30th June 1999 a total of 288 companies
had committed 21800 workers for SRP programs in five general launches and nine
sectoral launches since December 1996
Katz et al (1993) wrote that in many countries unions are involved effectively
in vocational education programs so Adji (2002) reported that in Niger The USTN is
running a project to provide low-cost training to workers and one of the unions is
organizing and training workers in the sectors which it represents In January 1999 an
international cooperation project was launched (ILODANIDA) with the aim of
supporting the efforts of USTN and CNT to provide workersrsquo education in the
informal sector The USTN is also running a training school and an agricultural
project
Booth et al (2003) using data of British Household Panel Survey 1991-96
found that union-covered workers were more likely to receive training and also
received more days of training relative to non-covered workers Among workers who
received training those with union coverage enjoyed greater returns to training and
higher wage growth than did those without
Shafiq-ur-Rehman (2003) mentioned about Pakistan that capitalist
entrepreneurs including the past governments have been least interested in
development and training but this situation has improved now and many employers
with encouragement from Skill Development Fund are actively training their workers
and provide all facilities to trade unions
TUC (2006) in a briefing paper reported that union presence has a significant
impact on the incidence of training Analysis of the 2003 Labor Force which showed
that 39 of union members had been engaged in some training in the previous three
36
months compared to only 26 of non-unionized employees TUC also reported that
employees get more training when the issue is negotiated with employers by unions
rather than employers simply consulting with unions about the organizations training
strategy TUC referred research by Francis Green 1996 which demonstrated that
unionized workplaces were 17 more likely to have a training centre and 11 more
likely to have a training plan TUC referred other studies such as of Heyes et al
(1998) showing that training is more likely to deliver benefits to members when
unions not only secure recognition from the employers but also play an active role in
decisions about what is provided and Metcalfs research who found that the pay-off
from engaging in training is also much greater for union members than it is for non-
unionized employees For male union members the post-training wage was 21
higher than the pre-training wage but the corresponding increase for non-unionized
male employees was only 4
Addison (nd) wrote that there are a number of theoretical arguments
suggesting that unions may stimulate training The British work on determinants of
training has generally reported positive effects He reported positive relations of
unionsrsquo recognition with the incidence of training and union recognition also leads to
increased hours or days of training
A study of Boheim and Booth (2004) showed positive relations of union
recognition with training in private sector
2312 Workersrsquo Education
Fahlbeck (1999) reported that in Sweden the extensive training and education
programs conducted by virtually all unions LO for example has a wide range of
educational programs and runs several schools Anyemedu (2002) also reported that in
Ghana the TUC has made the education of its members one of its priority concerns
The participants of conference on sustainable development (CSD 2001) evidenced it
by acknowledging that trade unions have developed capacity for workplace centered
education because unions are the foremost providers of adult education in many
countries
37
2313 Recreational and Social Services
Unions have rendered service in provision of social benefits launching
cooperative movement and arranging recreational facilities to workers Jose (2000)
wrote that unions over the years embraced a broader agenda including health care
leisure and recreation retirement and non-wage benefits from employment
Fahlbeck (1999) reported that unions in Sweden provide services regarding the
private lives of their members for examples unionrsquos actions include contracting
insurance policies for their members such as home and accident insurance In
addition unions can arrange private bank loans or provide collateral for a loan and
Swedish union LO has recently entered in the field of utilities About recreational
services Fahlbeck wrote that unions routinely assist members in realizing meaningful
activities during time off and also help in arranging vacations One of the leading
travel and tour operators in Sweden which also runs hotels is a creature of the LO
movement
ILO (1999) observed that in the newly industrialized countries unions have
played an important role in shaping social security systems that is different from
industrialized countries For example in Singapore unions provided welfare benefits
to members Workers and employers together contributed a significant share of their
earnings to the Central Provident Fund Unions also participated in mobilizing
savings The other example is of Hong Kong where unions have also pushed for the
establishment of a pension system although this has not yet been functional In the
newly industrialized countries unions have played an important role in shaping social
security systems such as in Singapore where unions provide welfare benefits to
members and also participate in a sophisticated mechanism for mobilizing savings
Workers and employers together contribute a significant share of their earnings to the
Central Provident Fund which has become an important pillar of the Singapore
economy In Hong Kong (China) unions have also pushed for the establishment of a
pension system although this has not yet been put in place
38
Thomas (1999) reported that in Singapore trade union movement adopted new
role being associated with the implementation of welfare schemes so he terms unionrsquos
this role in Singapore as accommodating model
Virmani and Rao (1999) reported that the unions in Singapore have started on
non bargainable activities to enrich workers lives as they are promoters of
cooperatives in transportation health care consumer cooperatives insurance etc by
running 8000 taxies and 47 cooperative supermarkets
Wong (2000) expressed that in Singapore in 1969 for a socio-economic
movement contributing to workers well being in the wider community the role of
trade unions was broadened beyond collective bargaining on terms and conditions at
the workplace To start a cooperative movement decision was made to pool resources
with the objective to provide services to which private businesses were not offering to
lower-income workers and to give workers a stake in the ownership and management
of business ventures It was also decided to return any surplus to worker and union
shareholders and to the labor movement Wong further narrated about provision of
recreational facilities that in Singapore in 1986 the NTUC pooled resources to set up a
union operated Club for affordable facilities for members and their families today
there are eight outlets in the Singapore Unions with corporate support developed at
state land large-scale projects like NTUC Pasir Ris Resort NTUC Sentosa Beach
Resort and NTUC Aranda Club for affordable holiday facilities within Singapore and
also sat up the Orchid Country Club for workers golfing accessible to all through their
union or personal membership For cooperatives Wong reported that in Singapore
NTUC established its first cooperatives in 1970 to provide insurance to ignored
workers now there are ten cooperatives ie Denticare Fair Price (supermarket)
Childcare Healthcare Food fare (cooked food) Choice Homes Eldercare Media
Thrift and Loan providing services to meet the diverse needs of workers and their
families
Stiglitz (2000) also acknowledged the highly constructive social and political
roles of labor movements in many countries in promoting adult education movement
39
the mutualism movement in the form of credit unions mutual banking mutual
insurance cooperatives friendly societies and other self-help associations
Ebbinghaus (2002) found that even in Europe now unions are involved in the
social policy area and participating in self-governing bodies of national social
insurance schemes
2314 Children Education
Song (1999) wrote in research report about unionsrsquo struggle in Korea that
working conditions have gradually improved with a shorter working day and for
better fringe benefits including childrens education and housing allowances
2315 Workers Awareness
Mishel and Walters (2003) reported that unions created awareness about laws
regarding health such as in USA about FMLAs existence and regulations Unions
have also given workers awareness about their rights so union members are about 10
more likely to have heard of the FMLA (in USA) and understand whether or not they
are eligible This is because of awareness given to them by unions
24 UNIONSrsquo ROLE FOR STATE EMPLOYER AND SOCIETY
The co-operative role of unions towards state employer and society by
exerting efforts to increase productivity and efficiency has been studied by several
researchers as quoted in following lines
241 Productivity Efficiency and Profitability
According to Hirsch (1997) productivity simply means output for given levels
of inputs A firm that is more productive than another can produce more output using
the same combination of inputs or equivalently produces the same output using fewer
inputs When increase in productivity is referred attributable to unions it means a real
shift in the marginal product schedule Hirsch concluded from many studies both
negative and positive effects of unions on productivity Even some studies show
negative as well as positive effects of unions on productivity at different times in the
40
same study Hirsch quoted about the effect of unions upon productivity that unions
increased total factor productivity by more than 20 percent
Shafiq-ur-Rehman (2003) is of the opinion that unions provide their members
both with protection against arbitrary management decisions and voice ant work place
and this will be not only increasing wages but productivity as well He further wrote
that collective voice face of unionism suggests important ways in which unionism can
raise productivity
There are surprisingly few manufacturing-wide or economy-wide productivity
studies and none reports consistent evidence of an overall positive effect of unions
upon productivity
Maki (1983) using aggregate Canadian data concluded that the shock effects
of unionization initially increase productivity levels but that unionism is associated
with slower productivity growth British studies of Nickell Wadhwani and Wall
(1992) and Gregg Machin and Metcalf (1993) for differences in productivity growth
between unionized and non-unionized firms evidenced that unions have either a
negative effect or no effect on productivity growth during the early years of their
analysis but positive effects during the 1980s Marshall (1987) is of opinion of
negative effects of unions on productivity and economic performance
A study of Morgan (1994) who used aggregate cross-sectional manufacturing
data across time found surprising results Morganrsquos estimates for the years around
1972 were of increasing productivity but declined steadily over time and were
negative during the 1980s
Fernie and Metcaf (1995) found that for one dimension measure the union
effect is negative but only marginally significant
Hirsch (1997) referred his own study based on a sample of 531 firms and
covering the period from 1968 to 1980 and provides the most comprehensive
treatment of unions effects on productivity growth where he found that union firms
are found to have substantially slower productivity growth than nonunion firms
41
Aidt and Tzannatos (2001) are of the view that the impact of unions on
productivity levels is empirically indeterminate Some studies suggest a positive
impact but others imply a negative impact or no impact at all For example unions
appear to have a negative impact on productivity levels in the United Kingdom but a
positive impact in Malaysia Regarding profitability Aidt and Tzannatos concluded
that net company profits tend to be lower in unionized firms than in similar non-
unionized firms (in Japan the United Kingdom and the United States) There seems
to be a relatively large negative impact on profitability in firms that have product
market power
Addison (nd) wrote about UK that early British evidence shows negative
effects of unionism on the productivity of firm and establishment but according to
later researches there is no short fall in unionized establishments during period of
1979-1984 and unionized firms increased their productivity most at the end of the
1980s There are several studies showing negative albeit least effects of unionism on
productivity as Gregg et al (1993) found that unions recognition affects negatively but
statistically insignificant effect during 1984-97 but positive and statistically significant
for 1988-89 (+3 to 4 ) Study of Conyon and Freeman (2001) revealed that union
effect is negative but statistically insignificant
According to Vedder and Gallaway (2002) Labor unions in contemporary
America have harmful aggregate effects on the economy They are associated with
lower rates of growth in income and jobs On balance people move away from union-
intensive areas to areas with relatively low rates of union density Occupations and
industries with high rates of union density have had less vibrant job growth in recent
decades Widespread unionization of an industry is often associated with initial sharp
declines in employment as the steel industry demonstrates The decline in union
density in the private sector in the past generation has been sharp and that decline has
added to the vitality of the economy at the beginning of the new century The
increasing weakness of unions in the market economy has contributed to economic
growth and a rising proportion of the working age population that actually works
42
From some researches evidences have been found that unions have worked for
enhancing the efficiency and productivity of workers Freeman and Medoff (1984) are
of the view that in many sectors unionized establishments are more productive than
nonunion establishments while in only a few they are less productive The higher
productivity is due to lower rate of turnover under unionism improved managerial
performance in response to the union challenge and generally cooperative labor-
management relations at the plant level
Eaton and Voos (1992) concluded that union firms are more likely than their
nonunion counterparts to be involved in workplace innovation such as those of
cooperative arrangements like teamwork and production gain sharing which yield
higher productivity Kelley and Harrison (1992) found that unionized firms were as
much as 31 percent more productive than non-union firms
In its report the World Bank (1995) concluded that trade unionrsquos activities
could be conducive to higher efficiency and productivity because they balanced the
power relationship between workers and managers and unions limit employerrsquos
arbitrary exploitative or retaliatory behavior by establishing grievance and arbitration
procedures Unions reduce turnover and promote stability in the workforce conditions
that causes an overall improvement in industrial relations which leads to enhance
workers productivity The view that the unions can enhance productivity and
efficiency also has been supported by recently analyzing Malaysian data
Pencavel (1995) wrote that presence of union and its representation of workersrsquo
demands views and ideas before management can benefit as well as harm the firm It
benefits when productivity and efficiency is increased and causes harms when wages are
raised beyond the firmsrsquo paying level For example in many jobs the worker may be
better informed about the potential for productivity improvements within his department
than his supervisor and he will be more willing to provide that information if he is
confident that any change in organization will benefit him He can communicate his
information to management through his agent that is union The presence of an agent of
the worker may make the worker less suspicious that the information he reveals will
benefit only management There is evidence that participation by workers in a firms
43
decision-making sometimes raises productivity and if the union involves the workers in
efficiency-enhancing activities then unionism is associated with a more productive
organization However according to Pencavel there were also arguments to suggest that
unionism harms productivity particularly when a union protects indolent or careless
workers from disciplinary action or when a union opposes changes especially labor-
saving technological changes and thereby retards an organizations development or a
union may successfully negotiate capital-labor ratios that oblige the firm to use more
workers per machine than relative input prices would call for
Fashoyin (1997) is of the view that in Japan the productivity improvement
movement has had a much greater impact and unions were an important party to the
productivity improvement crusade
According to Tolentino (1997) during the Asian Regional Seminar of ILO on
Trade Unions Industrial Relations and Productivity held in Tokyo in 1982 the
participants adopted the view that the goal of high and increasing productivity in
industry agriculture and services is one to which Asian trade unions no less than
management and government can and ought to subscribe This position was a clear
exemplification of the trade unions long commitment to national development and
indeed of their perception of the leading role which they could and should play in this
process Tolentino opined that the rapidly globalizing economy calls for dramatic
changes in the roles that the trade unions have to play to improve national
competitiveness for the sake of workersrsquo well-being As representatives of workers
they could play a significant and active role in creating the national economic and
business environment that will make their countries competitive in the globalize
marketplace of capital technology products and services The trade unions as
representative organizations of workers have very important roles in the promotion of
productivity At the macro level they could participate in the creation of the policy
and general business environment conducive to productivity improvement and at the
institutional level they could exercise their influence in making productivity related
institutions such as vocational training systems industrial relation bodies etc
effective At company level trade unions can participate in the companys productivity
improvement efforts by helping to create the enterprise policies and structures that will
44
guide and facilitate productivity improvement and helping their members directly to
participate in the productivity improvement programs of the enterprise In Poland in
the last three years more than 600 enterprises have undertaken productivity
improvement programs through the joint efforts of management and trade unions and
achieved growth 2 to 5 times the growth rate of the whole Polish economy
Productivity raised by 78 (in one year) compared to 8 in the total economy The
tremendous increase of profit made bonuses possible Some of the enterprise started to
increase employment The personal income of workers increased by an average of 20
compared to 2 in the whole economy due to the 40 growth in the value added
in these enterprises compared to 6 in the whole economy
According to Human Rights Watch (1998) productivity in Malaysia is actually
higher in enterprises where the workers are organized in industrial unions than in non-
unionized companies
Cassoni et al (2002) also reported that unions promote increases in
productivity and prevent profitability increases
A study of Bernhardt et al (2002) of Wisconsin Regional Training Partnership
an association of 125 employers and unions concluded that among member firms
productivity is way up exceeding productivity growth in nonmember firms
Shafiq-ur-Rehman (2003) wrote that in some Asian countries like Korea and
Japan trade unions adopted a cooperative and assisted management in improving
efficiency
Ash and Seago (2004) examined the relationship of unionized nursing staff and
the mortality rate for acute myocardial infarction (AMI) or heart attack in acute care
hospitals in California and found that hospitals with union nurses have 55 lower
heart-attack mortality than do non-union hospitals
Doucouliagos and Laroche (2003) expressed that the economics literature
found a positive association of unions on productivity The positive association of
unions with productivity is established for the United States in general and for US
45
manufacturing in particular Eisenbrey (2007) denied the common myth that unions
hurt productivity supposedly because they impose work rules that make their
employers less efficient He quoted yearly growth of workers productivity in the form
of bar chart showing productivity increase of 18 18 15 15 14 17 23 and 17
for Belgium France Germany Italy Netherlands Spain Sweden and USA
respectively for years 1979 to 2005 Productivity in USA did not increase even as
consequence of dropping of unionization to 12 during this period while productivity
increased in the seven largest European countries with union density greater than 60
Regarding profitability Freeman and Medoff (1984) are of the view that as
compared to non-union employers unionized employers tend to earn a lower rate of
return on capital because of increase in wages and the greater amount of capital used
per worker These increased costs are not compensated for by the higher productivity
of labor associated with unionism
About profit Hirsch (1997) analyzed that union wage gains lower firm
profitability unless offset by productivity enhancements in the workplace or higher
prices in the product market He concludes from several studies that although there is
diversity in results most studies obtain estimates suggesting that unionized firms have
profits that are 10 percent to 20 percent lower than the profits of nonunion firms
Saavedra and Torero (2002) referred evidence from some studies showing
negative effect of unions on profits and also a negative albeit less robust impact on
labor productivity in Peru
Studies of Addison and Hirsch (1989) and Machin and Stewart (1996) about
North America and Meneses-Filho (1997) for the United Kingdom reveal that unions
have a negative effect on profits and on shareholders wealth About profitability
Addison (nd) expressed that almost all early British studies showed negative effects
of various indicators of presence of union on the financial performance or profitability
46
242 Work Place Harmony and Cooperative Role
Unions are blamed for harsh and quarrelsome attitude non-cooperation and
always demanding for benefits Following studies shed light on it
Katz et al (1993) concluded that despite in some cases unions have defended
the lsquotraditional waysrsquo by fighting against the lsquochangesrsquo but in some other cases unions
cooperated for saving jobs and promoting human-side benefits of more flexible work
organization Unions have also played a proactive reformist role by pushing
management toward new forms of organization such as group work
Wagar (1997) in his paper investigated the relationship between labor-
management climate and perceptions of productivity product or service quality and
customer or client satisfaction using a regional and national sample of Canadian
organizations and a regional sample of local unions Results reveal a strong
relationship between labor-management climate and measures of organizational
performance with a more positive labor-management climate associated with more
favorable scores on the performance variables
About India DeSilva (1997) concluded that the unions and management which
are social partners after decades of conflict have gradually recognized the importance
of bipartite relations which emphasizes on workplace harmony
Preuss (1998) during a study of Management Cooperation and Hospital
Restructuring in USA found that union labor-management committees improve
communication and ease the process of implementing new hospital practices in
response to changing market demands
Song (1999) wrote that South Korean unionrsquos struggled to promote worker
compliance and commitment to firms and brought the employees back from street
rallies into the workplace
ILO (1999) reported that in countries like Denmark Germany Italy and the
Netherlands governments want to associate trade unions with social and economic
policies which are translated into employmentrdquo and social pacts whereas in the UK
47
and New Zealand during last two decades trade unions and governments relations
have deteriorated and the position of the trade unions weakened by a hostile political
environment ILO report quoted instances of union and state cooperation In Italy
because of state and unions mutual affinity a tripartite pact to promote employment
with special attention to the less developed areas and agreement including significant
elements on educational reform training and the reduction of working time was signed
in September 1996 In Spain trade unions are cooperating with government policies in
regarding job creation and regional development In Greece the General Confederation
of Workers has associated with the State and with employers organizations in
committeersquos formation on the specific problems of long-term unemployment
Similarly in Germany a similar national pact was proposed in Germany but not finally
agreed
ILO report also revealed that trade unions in Singapore cooperated with the
State and the employers in efforts to maintain full employment unions cooperated
with other social partners in attempt to set wages at levels which maximize
employment Unions are members of tripartite committees including National Wage
Council and in the past have accepted temporary wage cuts in order to save
employment About unions cooperation with employer or management ILO reported
that because of trend towards decentralization importance is given to Works Councils
and new institutions like this one example is of Italy where the trade union
movement in agreement with the State and employers associations has created a new
institution in the workplace and all workers can elect representatives from within or
outside the union Majority of seats (in this have been) won by the unions The
employers are reportedly satisfied with the new institutional structure for workers
representation The other example is of South Africa where workplace forums were
created in 1996 in order to establish joint decision-making and consultation between
management and workers at shop floor level
Virmani and Rao (1999) expressed that responsible trade unions in Singapore
are one of attractions of doing business in Singapore because with industrialization
process trade unions have developed disciplinary spirit therein and became conscious
to develop the country economically
48
Wong (2000) also wrote about unions in Singapore that the unionsrsquo approach
to industrial relations moved from conflicting to cooperative after independence of
Singapore And during recent economic crisis the importance of constructive tripartite
relations and the positive role of the labor movement has been highlighted when many
union leaders had been involved in working out mutually acceptable measures to
overcome the recession in 1986 and they reached on a consensus when Government
union leaders and employers were able to gain worker support for wage cuts
Hirsch and Schumacher (2000) referred the analysis of Freeman and Medoff
1984 concluding that Unions have had success in pushing for workplace mandates
applicable to both the union and nonunion workforce as there is strong public demand
for many forms of protection in the workplacerdquo
Hence Aidt and Tzannatos (2001) wrote that unions facilitate worker-
participation and worker-manager cooperation in the workplace This can have
efficiency-enhancing effects that jointly benefit workers and management
Yates (2001) expressed promising views about role of unions in faster growth
of New Economy that unions can overcome certain inefficiencies inherent in the
marketplace and at the same time helping individual workers to fulfill their goals more
easily and at less personal cost However Yates stressed on transformation of unions
which can begin to provide an array of personal services to members and help to
negotiate and to finance contract provisions that provide skill training for workers
Presently when new employers are promoting multi-skilling for workers unions can
help the employers to attain greater flexibility by agreeing to eliminate job
descriptions and allow employers to assign workers to a variety of jobs Unions can
also support employers in their efforts to achieve greater time flexibility through the
implementation of longer work shifts and more elastic shift scheduling and they can
agree to allow the employer to schedule mandatory overtime albeit at premium pay
Unions encouraged higher wages and protected economy in USA About the
union role in economic depression of 1930s Lichtenstein (2002) quoted from his book
State of the Union A Century of American ldquoin the 1930s as political leaders saw the
value of unions Unions offered the opportunity to protect and encourage higher
49
wages resulting in increased consumption and a stronger economy Where the
Depression was seen as the failure of American capitalism labor unions offered a
countervailing force both economic and political Industrial democracy re-enforced
political democracy and so unions were seen especially by the Roosevelt
Administration as important pillars of the American identityrdquo
Labor unions are also extending cooperation in Sustainable Development
According to Conference on Sustainable Development (2001) trade unions want to
cooperate with local and national governments international agencies and other Major
Groups to bring about patterns of decision-making that are consistent with the goals
of sustainable development (CSD 2001)
About Europe Knox (2004) wrote that strikes are rare in Germany and in Volks
Wagens 67-year history there has never been a strike only warning demonstrations to
pressure management Therefore in Germany working days lost to strikes run about
five per 1000 employees a year vs about 43 days in the United States But there have
been several strikes in Germany and elsewhere in Europe in recent months as workers
protest company demands for longer workweeks for the same or less pay The
demonstrations however have been short-lived and the unions usually have backed
down against the threat of layoffs or job relocations Therefore in recent contracts
unions cooperated and gave several concessions to employers such as at Karstadt
Quelle a big retailer in Germany trade unions agreed to a three-year wage freeze in
exchange for a promise the company would cut 5500 jobs through attrition not firing
Similarly in France workers at a Robert Bosch car parts factory voted to work an
extra hour a week without pay to stop the car components company from moving the
work to the Czech Republic
50
25 STRATEGIES AND TACTICS OF UNIONS
For the achievement of objectives of securing benefits for the workers and
solution of their problems unions adopt peaceful and violent means and succeed when
they have strength or fail in their struggle if they have no strength Numerous
researches have highlighted it
Jose (2000) is of the opinion that the unionrsquos capacity to influence depends on
their strength and support among the unionized and non-unionized sections of society
Bryson (2001) opined that the employer and employeesrsquo perception of
legitimacy of union in representing workers interest is influenced by higher union
density and where unions represent most of the workforce they can represent workers
interest with a strong voice
Huber and Stephens (2001) are of the opinion that in the neo-corporatistrsquos
view large and centralized unions are more functional and influential than fragmented
unions
251 Source of Strength of Unions
Thomas (1999) is of the view that trade union organizations largely derive
their characteristics heritage identity and future strategic options from the parameters
that are set by the country in which they function Jose (2000) expressed that union
success depends on its capacity to incorporate workers rights and interests into
legislation or other regulatory instruments of the labor market For building
institutional capacity the following objectives have been prominent on the agenda of
unions (i) legislative provisions guaranteeing job security unemployment insurance
and special benefits on termination of employment and social security providing for
health care and pension schemes (ii) multi-employer agreements on employment
wages working conditions hours of work and non-wage benefits of workers (iii)
ability to influence economic and social policies through consultation and dialogue
with employers and public authorities
51
2511 Unionsrsquo density and their strength to effect
Jose (2000) wrote that labor legislation collective agreements social security
and minimum wages already in place are clear indicators of the strength and influence
of trade unions They reflected a capacity to influence public opinion and mobilize
action in support of the demands of their constituents In developing countries notably
in Asia unions have had significant achievements in maintaining or upgrading
statutory safeguards on employment and working conditions Nonetheless such gains
are mostly restricted to workers in the formal sector
But to cast influence the unions should be stronger and unions can be stronger
if they have a minimum density called threshold density
Aidt and Tzannatos (2001) are of the view that Industries with high overall
union density tend to have a higher wage markup Mishel and Walters (2003) found
that 30 to 40 is the minimum level of unionsrsquo density to produce any threat effect
Therefore the unionization of 20 in a particular industry may have no impact but
40 unionization may be sufficient to make employers aware of union organizing and
union pay and practices Unionrsquos presence of 60 to 70 may provide as strong a
threat or ability to set standards as unionization of 80 or more Therefore unions
can put a greater effect when density is higher
252 Peaceful Means of Achieving Objectives
Unions adopt peaceful means like negotiation reconciliation arbitration and
suits in the courts as well as violent means like tension strikes and processions for
achieving objectives of securing benefits for workers
In Japan trade unions have achieved improvement through collective
bargaining on pay working hours fringe benefits and in house welfare programs
Unionsrsquo efforts have become more important in recent years (Inoue 1999)
Among the peaceful means of obtaining objectives is Collective Bargaining
Jose (2000) reported that the value of collective action initiated by unions for attaining
common objectives is now widely recognized by a broad spectrum of interest groups
52
But unions have moved from collective bargaining to voice in continental Europe and
Japan due to high density of unionism There is growth of trade unions from the
collective bargaining function towards a role dominated by voice and representation of
workers The broad membership base which unions commanded and the equitable
distribution which they promoted in major sectors and enterprises strengthened the
position of unions giving them more power to bargain or collaborate and to derive
successful outcomes
253 Violent Means
When the peaceful means are not successful in achieving the objectives then
unions go on strikes Unions have resorted to this option according to following
researches
Colman (2000) wrote about USA that in 1824 women and men in a textile
factory in Pawtucket Rhode Island led the countryrsquos first strike demanding the owner
to reverse his decision to increase work day by one hour and cut their wages After
four years women went on strike in Dover New Hampshire demanding the
elimination of ban on talking at work and fine to employees 125 cents for being one
minute late In 1831 1600 women tailors in union of tailorsrsquo society in New York
struck for higher wages In 1834 in Lowell Massachusetts over 800 looms and
spindle operating women in the textile mill called a strike to protest wage cut
In Israel Before 1995 the famous labor union Histadrut seldom resorted to
general strikes in the public sector but since July 1997 The New Histadrut has
called three extensive strikes In July 1997 strikes were of government owned
corporations in December 1997 and in September 1998 the entire public sector went
on strikes During the strike in September 1998 the threatened closure of Ben-Gurion
International Airport contributed to reaching an agreement (Nathanson and Associates
1999)
CLR reported that in June of 2000 workers at the Duro (a gift bags
manufacturing firm) plant in Rio Bravo (Mexico) went on strike to establish an
independent union and forced the reinstatement of their elected leaders who were
53
illegally fired as a result of strikes Mexican government officials in August 2000
granted official registration as first independent union to the Duro workers (Carty
2003)
Unions weakened due to effects of Multi National Companies and
Globalization According to UNDP (2000) report conventional weapons of strikes
boycotts and demonstrations became useless because of emergence of MNCs and
Globalization unionrsquos power has weakened In the past labor groups could combat
with economic power of employer by seeking redress at the national level appealing
to sympathetic politicians and government officials to enact protective labor
legislation or alternatively labor unions could resort to offensive strategies like
strikes boycotts and demonstrations Unions could rely on this power because capital
in the past was immobile but in present era if these techniques are exercised capital
will move across the borders therefore the labor unionrsquos conventional weapons
strikes boycotts and demonstrations have became ineffective and unions have been
rendered weak
26 CORRUPTION OF UNIONS
Though unions exerted efforts for securing benefits gaining respect and
building a fearless atmosphere for their workers but unionsrsquo history is also plagued by
corruption which has been brought to light by following researches
261 Corruption and Selfishness of Officials
Ware (1935) wrote that labor leaders in USA are trade unions officials and
they have been accused of the complete unconcern for any worker but the members of
their own craft union interest in holding their own job a close association and
cooperation with employers in dealing with industrial problems and racketeering
For unions in Pakistan Khan (1992) expressed that the numerical increase of
trade unions leads to personal rivalry of union leaders competing for command over
small unions The trade unions leaders fight among themselves instead of fighting
54
against management or government and every leader is status seeker caring more for
his own prestige and image than to cause of common worker or unionism
Pencavel (1995) opines about union pluralism that a policy permitting the
formation of more than one union per enterprise will lead to disputes and rivalry
among unions He quoted the example of the situation in the Indian sub-continent
where the strength of unions is sapped through disputes among themselves rather than
in bargaining with employers
Bezuidenhout (2002) narrated that in South Africa Industrial and Commercial
Workersrsquo Union (ICU) was also plagued by internal corruption and bureaucratization
According to a report of Weinstein (1996) in USA during two decades LIUNA
(Laborers International Union of North America) officials have recorded over 80
convictions for crimes ranging from racketeering to bribery extortion tax evasion
and even of attempted murder
Horowitz (1999) reported about USA that unionrsquos corruption is not a new
phenomenon but as government reports documented even in the 1920s among
construction trade unions in New York City a widespread corruption and racketeering
was also prevailing
262 Financial Corruption
Weinstein (1996) wrote the instances of unions financial corruption eg the
House Judiciary Committees Subcommittee on Crime (in USA) held hearings that
union official lent $100000 of LIUNA money to the Clinton Inaugural Committee
and in 1993 and 1994 the Laborers Political League (LPL) donated over $1 million to
Democratic Party congressional candidates During 1995 and the first quarter of 1996
the LPL has contributed $747000 to over 200 liberal congressional candidates
Weinstein and Wieglus (1996) expressed that unions keep the workers ignorant
from their rights for example Labor Secretary Robert Reich who frequently proclaims
the Clinton Administrations concern for workers rights told the AFL-CIO recently
that collective bargaining is not a privilege it is a right Yet the Administration has
55
cooperated with union officials to keep workers in the dark on their Beck rights They
further quoted example of AFL-CIO for the misuse of unionrsquos funds for political
campaigns as AFL-CIO has launched $35 million voter education project funded
mainly with mandatory union dues to defeat conservative members of the 104th
Congress
Horowitz (1999) brought in to light that the Federal Election Commission in
(USA) reported that soft donations by labor unions to national political parties
during the 1997-98 election cycle totaled some $8 million nearly all of it to the
Democratic Party
In the research report conducted in USA Sherk (2006) expressed that it is true
that union members elect their leaders but union leaders appear to pursue an agenda
disconnected from the concerns of their members Some unions are heavily involved
in political activism they spend their membersrsquo mandatory dues to elect candidates
favored by the union leadership which means union leaders pursue an agenda that
their members do not support Therefore several states have passed ldquopaycheck
protectionrdquo laws that require unions to obtain written permission from their members
before they can spend membership dues on political causes He further wrote that
unions received from their members annual dues averaging $125 per member in 2004
and used only a portion of that money to represent their members Americarsquos 10
largest unions used an average of only 30 percent of their dues to represent their
members and negotiate with employers and spent the other 70 percent on lobbying
political activities gifts grants overhead and compensation for their staff These
other activities might or might not reflect the priorities of the unionrsquos membership
Unions generously spend their membersrsquo mandatory dues on politics He quoted that
in 2005 a non-election year the AFSCME (American Federation of State and County
Municipal Employees) spent almost 20 percent of its budget on political activities and
lobbying The AFL-CIO spent 30 percent of its budget on the same causes In the 2004
elections both these unions gave over 97 percent of their donations to Democratic
candidates Despite of misusing members contributed funds union leaders do little to
inform their members of many of their activities and it is doubtful whether union
56
members would approve of many of the decisions of their leaders Misplaced union
priorities extend beyond six-figure salaries and comfortable retreats for union bosses
2621 Embezzlement examples
Horowitz (1999) quoted many examples of unionrsquos office bearers
embezzlement in his report such as Bernard Rubin president of South Floridarsquos
Laborerrsquos District Council was convicted in 1975 on embezzlement racketeering and
tax evasion He misappropriated more than $350000 in union funds Similarly in
April 1998 a federal court convicted Eileen Cibellis former longtime office manager
and fund administrator for the Bloomfield New Jersey-based District Council 10 of
the International Brotherhood of Painters and Allied Trades for embezzling more than
$400000 from union funds There are other examples such as Carol Sue Fisher a
former bookkeeper for the local Paintersrsquo union in Evansville Indiana in 1992
pleaded guilty to embezzling some $135000 from the union fund John Ducey the
former financial secretary and business manager of the Carpet Linoleum and Resilient
Tile Layers union received a prison sentence for embezzling more than $51000 A
federal jury of embezzling union funds found George Osley Jr secretary-treasurer of
Laborers Local 872 in Las Vegas guilty of embezzlement of unionsrsquo funds The
National Maritime Union (NMU) a representative of some 2000 unlicensed seafarers
working on US flag commercial ships deserves special mention as over the years it
has served as a private bank for its leaders In January 1997 NMU President Louis
Parise Sr had to resign and sever all connections to the union following his
conviction in federal court on racketeering and embezzlement to the tune of more than
$700000 Robert Hickerson former business manager of Local 919 in Quincy
Illinois in 1982 was sentenced to three years in prison for embezzling union funds
and hiring vandals to smash more than $250000 worth of equipment owned by non-
union contractors In Lancaster NH Paul Wilson former treasurer of United Paper
workers Local 61 in 1993 was sentenced for theft of more than $67000 in union
funds This year Robert Kellas a former official of an amalgamated Transit Union
local in Bellingham Washington pleaded guilty to embezzlement of up to $120000
from the union over a four-year period These were few examples otherwise report has
numerous other events worthy to be mentioned but they would render the thesis very
57
lengthy Horowitz in his report wrote for different types of unionrsquos corruption in USA
and quotes numerous events eg ldquoIn New York City in 1995 federal investigators
discovered that around $8 million had vanished from the pension fund of Teamsters
Local 875 Local 875 had a long history of corruption in the previous 25 years five of
its officers and financial advisers were convicted of embezzlement or accepting
payoffs to keep labor peacerdquo He further wrote ldquoFor good measure the AFL-CIO in
1957 expelled the Teamsters for corrupt practices in the light of widely-publicized
hearings before Government Operations Committee headed by John McClellan
Arkansas Democrat in the Senate
Sherk (2006) in his report about American unions also quoted examples of
suspected incomes of unionsrsquo leaders such as Gerald McEntee president of the
American Federation of State and County Municipal Employees earns $580000 a
year from the dues paid by his unionrsquos far less compensated members The president
of the National Education Association earns $439000 a year which is almost ten
times what the average teacher earns It means union elected leaders earn salaries
several times larger than those paid to members of Congress Unions also spent over
$7 million in 2005 to hold conferences and workshops at resorts including the
Pheasant Run Resort amp Spa near Chicago and the Palm Springs Riviera Resort in
California a use of funds which also may not reflect their membersrsquo priorities Sherk
further quoted that unions pay for political campaigns from members contributions
and Supreme court in a suit ldquocommunication workers versus Beck (1988)rdquo established
a precedent that workers can not be forced to donate to political causes and are
entitled to demand the refund of the portion of their dues spent for political cause but
unions erected roadblocks in front of the workers who wanted to exercise their Beck
right
263 Unionsrsquo Officers Monopoly
Union officials enjoy what amounts to a monopoly and these union
monopolies shielded from competition provide them lax from accountability toward
the people they serve and individual worker or a group of workers demanding
accountability from their union may be risking their jobs or safety Union funds to pay
58
nonexistent employees is a common way of rewarding friends at the expense of
dues-paying rank and file Horowitz (1999)
Brohawn (nd) is of the view that in some cases it can be fairly said that
unions have empowered their leaders not their members
Ghayur (1996-b) wrote that in Pakistan the labor leaders are feudal minded and
they never bothered to make their action accountable to the members
264 Bribes (Extortion and Pay-off)
Horowitz (1999) Revealed in his report with example that the Construction
trade unions are notorious for extortion from contractors by threatening labor
problems such as work slowdowns disruption sabotage or assault In the 1980s a
civil suit against Local 6A of the Cement and Concrete Workers of the Laborers
International Union of North America (LIUNA) alleged that the local its district
council their officers and certain organized crime figures extorted one percent of the
contract price from ready mix contractors by threatening labor problems For a while
that bought labor peace FBI investigation of building trades practices in Long Island
led to the indictment of the president of the District Council of Carpenters and five
other union officials connected to organized crime families for extorting more than
$100000 from a drywall contractor In Philadelphia Joseph Fiorelli founder and
former boss of Local 1955 of the Drywall Finishers Union was sentenced to more than
10 years in prison on extortion payoffs from contractors theft of union funds and
racketeering charges Fiorelli had extorted payments from 25 contractors from 1967 to
1991 Contractors testified that in exchange for their payments Fiorelli gave them
labor peace and allowed them to sometimes use nonunion workers and to delay or
avoid payments to the unions health and welfare fund
About Bribery for securing jobs Horowitz expressed that unions protect their
members from competition by non-union members But when a contractor or
employer decides to hire non-union labor the unscrupulous unions make life
uncomfortable for contractors until they hire union labor or allow the contractor to
hire nonunion labor--if the price is right In 1981 Louis Sanzo president of Local 29
59
of the Blasters Drill Runners and Mines Union in Queens NY affiliated with
LIUNA and the others took a combined $400000 in payoffs from construction firms
to buy labor peace The owner of a Florida-based construction firm said he tried to get
out of the deal but Sanzorsquos men threatened to kill him his wife and three children
The contractor would say in his bid that he needed 30 men and he would be paid for
30 men by the people who hired him to do the job But then Local 29 would send over
only 15 men They could keep the rest of the money
265 Sound Labour Relations at the Workplace no Important Concern of Employers and Unions
Unions some times do not take interest for sound labor relations - especially at
the workplace De Silva (1997) wrote that in many South East Asian countries and
republic of Korea sound labor relations have not been an important concern of
employers and unions
Bacon (2005) expressed that in USA George Meany and Lane Kirkland AFL-
CIO leaders treated unions as a business representing members in exchange for dues
while ignoring the needs of workers as a whole
CHAPTER 3
HISTORY AND LEGAL FRAME WORK OF UNIONIZATION IN PAKISTAN
According to Khan (1992) the Industrial Relations is an art It is an art of living
together for purpose of production Industrial Relations System is a sub system of the
society and studies the web of rules and regulations that binds the workers and
managers in a working group In industrial relations three actors play their part
employer through management workers through unions and consumer through state
However this system varies from country to country or region to region
ILO (1999) categorized the countries according to the degree of influence
exerted by trade unions on government policies In some countries unions have a
decisive voice and they can influence social pacts as well as the human rights agenda
through trade policies In other countries governments can ignore the unions without
incurring major problems so in these cases unions have little influence on social
policy or human rights concerns Therefore two different patterns of unionsrsquo role
emerge reflecting regional differences In developing countries trade unions are
searching for a new identity while in the industrialized countries they are trying to
gain lost ground through membership campaigns
Thomas (1999) asserted that trade union organizations largely derive their
characteristics heritage identity and future strategic options from the parameters that
are set by the country in which they function
Similarly Wong (2000) wrote that the industrial relations system in each
country is rooted in different historical political socio-economic cultural and
environmental contexts and it makes it difficult to replicate one system in another
context So this research is focused on the study of the role of Pakistani Labor Unions
working in quite different political cultural and legal environment
61
Khan (1992) expressed that every industrial relations system must fulfill
function of defining the rights responsibilities and objectives of the government
employers and employees and establishing power structure among them controlling
and channeling the responses of managers and workers that arise due to
maladjustment frustration dislocation and insecurities inherent in industrial process
and establishing a net-work of rules These rules include things like recruitment
commitment level of compensation the wage structure and procedure for settlement
of disputes
In Pakistan the system of industrial relations is legalistic and government is a
regulator and has framed out laws for industrial relations and unions are formed and
function in the same framework of laws These laws are of two types First type of law
concerns with union making and that is IRO 2002 and second type is of laws granting
rights to which unions have to get implemented and exact the rights granted therein
for workers Besides this unions have to struggle for the rights which are not given yet
in law and also have to get the laws promulgated for grant of these rights The history
of emergence and evolution of legal framework in Pakistan is given below
31 HISTORY OF LEGISLATION
According to Shafiq-ur-Rehman (2003) the history of Labor Legislation dates
back to 1875 when the government of Bombay appointed a Factory Commission on
whose recommendations the Factories Act 1884 was promulgated Committee of
Inquiry was appointed in 1906 and Factory labor commission in 1907 and upon their
recommendations Indian Factories Act 1922 was passed and subsequently Trade
Union Act 1926 and Trade Dispute Act 1929 were also passed
The laws governing the formation of unions in Pakistan have passed through a
process of evolution during last eighty years Their chronological evolutionary steps
are reported below
62
311 Laws Permitting Establishment of Unions
In 1914 in Indo-Pak subcontinent there were more than a million workers
employed in 2936 factories besides a large number of workers employed in railways
mines plantation and government departments who were originally peasants pushed
towards factories by poverty After World War - I (1914-1918) the economic
conditions of these workers went worse as wages could not keep pace with rise in
prices There was acute distress and discontent among the workers but the industries
developed over the period were experiencing prosperity This led them to form unions
to demand increase in wages
In 1919 ILO was established and that gave recognition as well as big support
to trade union movements Consequently a substantial number of unions were formed
in subcontinent of Indo-Pak (from which Pakistan parted in 1947) in 1920s but many
of them were temporary like strike committees being formed at the outbreak of
strikes and disappeared with its end The Indo-Pak Legislative Assembly passed a
resolution in 1921 in favor of registration and protection of trade unions As a result of
this resolution the legislature passed the Trade Union Act 1926 This act recognized
the workers rights to organize and form trade unions and laid down that any seven
persons or more forming trade unions could seek their registration of trade union and
this registered trade union was not to be considered a body unlawful in restraint of
trade However this law laid down penal clauses for violating any of the restrictions
imposed or for providing false information to the Registrar of Trade Unions After
independence in 1947 the government of Pakistan adopted the Trade Union Act 1926
and it remained in enforcement as major piece of legislation up to 1960 No doubt this
law has provided protection to the workers to combine for improving their
employment conditions and from being considered anti-state activity But the law has
a serious draw back that it was not providing unions the recognition of bargaining and
protection to workers from employersrsquo discrimination for union activity In 1960
Trade Union (Amendment) Ordinance 1960 was passed to amend and improve the
previous Act According to new law the recognition of trade union on employer was
obligatory and registered union was granted the right to negotiate with the employers
in matters concerning employment un-employment the terms of employment and the
63
conditions of work of all or any of its members The employer was bound to receive
and reply to letters from and to grant interviews to executives of union in connection
with any such matter The employer could with draw his recognition but with the
permission of labor court The previous maximum 50 percent limit of number of office
bearers from outsider was reduced to 25 percent in this law The trade unions were
required to maintain subscription register account books and membership list In this
law clauses for ldquounfair labor practicesrdquo both on the part of unions and employers and
the penalties in cases of breach of these clauses were also added Another ordinance
under name of Trade Unions (Amendment) Ordinance 1961 was passed to make
amendment to debar outsiders from becoming officer of union unless they were full
time paid employees of that trade union After the promulgation of Constitution of
1962 all the labor matters including legislation were transferred to provinces (East
Pakistan and West Pakistan) So a further ordinance ldquoWest Pakistan Trade Unions
Ordinance 1968rdquo was passed that made amendment to enhance powers of ldquoRegistrar
Trade Unionsrdquo empowering him to interfere with the conduct of unions even after its
registration to order an inquiry in the matters of unions if he thought that the funds of
a union were likely to be misappropriated The registrar could ask the union to curtail
the number of office bearers if it seemed disproportionate to the total number of its
membership Without the permission of the Registrar the employer was not to
discharge or dismiss or otherwise victimize an office bearer of trade union during the
pendency of its application for its registration The registration certificate could be
cancelled if the union participated in an illegal strike or go-slow A federation with
membership of at least seven registered unions could seek registration The registered
federation could have 50 percent of its office bearers from among the workers who
were not engaged industry or industries with which federation was concerned This
ordinance restricted the eligibility only to those unions which had minimum
membership of workers 10 percent of the total workmen employed or 100 whichever
is less The age to be office bearer of union was 21 years for employees and 25 years
for outsider Khan (1992)
64
312 Laws for Settlement of Disputes
Before IRO 1969 there were different sets of laws permitting union making
and for settlement of disputes The foremost law pertaining to settlement of
employers employee dispute was Employers and Workers (dispute) Act 1860 This
act provided for the determination of disputes relating to wages of workers employed
in the construction of railways canals and public works and breach of contract by
workmen was a criminal offence The cases of dispute were handled by magistrates
Later on Trade Dispute Act 1929 was enacted which provided for ad-hoc machinery
enabling the government to establish the Court of Inquiry and Conciliation boards
Industrial Dispute Act 1947 was enacted to provide hierarchy of institutions for
bringing out harmonious collective relations between the employers and the workmen
through work committees Conciliators board of conciliation Court of inquiry failing
which the settlement was arrived at by adjudication by a reference to an Ad-hoc
Tribunal The industrial establishments were classified in two categories Public
Utility Services and Non Public Utility Services Public Utility Services included any
Railway Service and section of an industrial establishment on the working of which
safety of establishment or workmen depended any postal telegraph and telephone
service any industry which supplied power water and light to public any system of
public conservancy or sanitation any undertaking establishment or installation
relating to defense services any service incidental to the operations of ports and any
such industries as transport coal cotton textile food stuff iron and steel as declared
by the government to be public utility service for a period of six months at a time
Industrial Dispute Ordinance 1959 changed industrial relations by further enlarging
the scope of term public utility services by including all types of industry later on
West Pakistan Industrial Dispute Ordinance 1968 was passed wherein provincial
government assumed the power to prohibit strike or lockout existing or apprehended
in public interest or for the maintenance of essential services or supplies (Khan 1992)
313 Industrial Relations Ordinance 1969
The Industrial Disputes Act (IDA) of 1947 was passed in April 1947 It made
no provision for procedures to determine the representative union what would
65
normally be a single bargaining unit Employers were under no legal obligation to
bargain with unions so there were no built-in incentives for either party to engage in
collective bargaining Therefore this right has been given in IRO 1969 The Industrial
Disputes Act 1947 also made it very difficult for the unions to call a legal strike
There were also problems in the Indian Trade Union Act of 1926 The Act allowed
any seven workers to register their trade union but made no provision for union
recognition (eg through a secret ballot procedure)
To remove the shortcomings of the labor legislation and address the workers
unrest because of political disturbance of ending years of regime of president Ayub
Khan and to create industrial harmony and peace government promulgated Industrial
Relations Ordinance (IRO) 1969 The objective of the IRO 1969 was to facilitate the
formation of trade unions and to provide simple procedure for their registration It was
primarily meant for regulating the employer employee relations and to determine
collective bargaining agent to arrange for the adjustment of conflicting interests by
collective bargaining to provide machinery (institutions) for just and equitable
settlement of disputes by conciliation voluntary arbitration and adjudication between
workers and employers with a right of representation by a registered trade union or
federation of trade unions or association of employees to prevent strikes and lockouts
and to provide relief of workmen in matters of employment relations
It was a comprehensive law and it consolidated the laws relating to
registrations of unions and laws relating to settlement of disputes Before this both
were dealt with different laws At different times establishments of unions were dealt
under Trade Unions Act 1926 Trade Union (Amendment) Ordinance 1960 Trade
Unions (Amendment) Ordinance 1961 and West Pakistan Trade Unions Ordinance
1968 where as trade disputes had been dealt under Employers and Workers (dispute)
Act 1860 Trade Dispute Act 1929 Industrial Dispute Act 1947and Industrial
Dispute Ordinance 1959
According to this law the formation of trade unions was expressly recognized
and there was provision for their registration A certified and duly elected registered
trade unions in industrial undertaking or an establishment could be taken as collective
66
bargaining agent and only collective bargaining agent could raise a dispute and take
bilateral negotiations within ten days of issue of charter of demand This law in
conjunctions with West Pakistan Industrial and Commercial (Standing Orders)
Ordinance1968 made it legally difficult and expensive to fire any worker and
developed a comprehensive measures relating to the terms and conditions of
employment and work procedure of handling grievances enforcement of discipline
and to regulate on the job relations within the establishment The IRO 1969 however
excluded the persons employed in Police Defence Services of Pakistan in the
Services and installation of Armed Forces and public services This Ordinance was
amended in 1971 to remove certain administrative difficulties amended twice in 1972
to insert provision of junior labor courts Amended in 1973 to allow 20 percent
workers participation in management and system of shop stewards was introduced
and a standing National Industrial Relation Commission (NIRC) was appointed Law
was amended in 1975 and a wage commission was created to determine the economic
disputes in banking industry and other financial institutions Again amended in 976 to
incorporate the principle ldquoone worker one unionrdquo to check the multiplicity of unions
to delete the provision of junior labor courts and to raise the strength of workers
representatives in Management Participation Committee to 50 percent Here the
power was taken to highest echelon through Joint Management Board To make the
works council to be a forum of joint negotiation law was amended in 1977 Final
amendment was made in 1979 This law has been repealed vide section 80 of IRO
2002
32 RIGHT OF UNIONIZATION
Right of unionization has been derived in Pakistan from UNO declarations
ILO conventions ratified by government of Pakistan and Constitution of the State
321 United Nationsrsquo Declaration of Human Rights
Articles 23 and 24 of the UNOrsquos Declaration are for workers favor besides
permitting the formation of labor unions (Wikipedia-b)
67
Article 23
1 Everyone has the right to work to free choice of employment to just and
favorable conditions of work and to protection against unemployment
2 Everyone without any discrimination has the right to equal pay for equal
work
3 Everyone who works has the right to just and favorable remuneration ensuring
for himself and his family an existence worthy of human dignity and
supplemented if necessary by other means of social protection
4 Everyone has the right to form and to join trade unions for the protection of his
interests
Article 24
1 Everyone has the right to rest and leisure including reasonable limitation of
working hours and periodic holidays with pay
322 ILO Conventions
To enable us to identify the basic union rights it is necessary to have a glimpse
of the International Labor Organization Conventions No 87 and 98
According to Convention No 87 workers and employers shall have full
freedom to organize themselves The organizations shall draw up their own
constitution and rules elect their leaders in full freedom and organize their
administration and activities without any interference by the government The
organizations shall not be dissolved or suspended by the administrative authority
which is the government
Government should impose no condition on the organizationsrsquo right to
establish or join a federation or confederation and to affiliate with international
68
organizations Granting of legal personality shall not involve restrictions on the above
rights Pakistan has ratified it on 14th February 1951
Under Convention No 98 it is the responsibility of the government to protect
workers against anti-union discrimination and victimization by employers and against
domination of workers organizations by any acts including financial contributions
The government should also establish machinery for the purpose of ensuring respect
for the right to organize Pakistan has ratified it on 26th May 1952 These rights
adopted by the ILO are more or less based on the lsquoUniversal Declaration of Human
Rightsrsquo Workers especially need these guarantees to protect themselves against
exploitation by employers who wield financial power and political influence
323 Constitution of Pakistan
The article16 and 17 of constitution of Pakistan have given a general right to
organize and form association to the workers
Article 16 is about freedom of assembly and says ldquoEvery citizen shall have the
right to assemble peacefully and without arms subject to any reasonable restriction
imposed by law in the interest of public orderrdquo
Article 17 is about freedom of association and says ldquoEvery citizen shall have
the right to form association or union subject to any reasonable restriction imposed by
in the interest of sovereignty or integrity of Pakistan public order or moralityrdquo
33 PRESENT ENFORCED LAWS
331 Law Governing Establishment of Trade Unions lsquoIRO 2002rsquo
Presently trade unions are formed and function according to IRO 2002 This
ordinance was promulgated in 2002 to amend consolidate and rationalize the law
relating to formation of trade unions regulation and improvement of relations between
employers and workmen and avoidance and settlement of any difference or disputes
arising between them A summery of main provisions of this ordinance regarding the
right of unionization and protections given to unions their functioning functioning
areas and limitations in IRO 2002 is given here
69
1 It allows the formation and joining of trade unions to workers and formation of
association to employers (section 3) and allows these unions and associations
to join respective federations allows federations to join confederations and
these federations and confederations can affiliate with international
confederations (section 18) However this law restricts a worker to be a
member of more than one trade union at any one time Law also binds that
every collective bargaining agent union shall have to affiliate with any
federation at the national level registered with the National Industrial Relations
Commission within two months after its determination as collective bargaining
agent or promulgation of this Ordinance whichever is earlier
2 It specifies the registration process (section 4) requirements for registration
(section 5 and 6) cancellation of registration (section 12) and appeal against
cancellation (section 13)
3 It provides safety to office bearers of trade union from victimization in the
form of transfer discharge or dismissal for applying for registration (section
10) and fine up to 20000 rupees for violation (section 65)
4 It provides the facility of Collective Bargaining Agent to a single union if it
has members not less than one-third of the total number of workmen if there
are more than one unions then who wins the referendum (section 20) and
identifies the bargaining and non bargaining issues
In Pakistan Collective Bargaining has its own Perspective Shafiq-ur-Rehman
(2003) expressed that collective bargaining in Pakistan instead of the issue of
wage rise typically covers a much wider range of issues including pecuniary
terms of employment (such as non statutory allowances and benefits) and non
pecuniary conditions of employment including job security and working
conditions (such as safety of work place and methods of production)
5 To meet the expenses this law allows the unions to collect the subscription by
check-off (section 21)
70
6 It contains provisions about workersrsquo participation in the management of
establishment For this it permits the establishment of Joint Works Council
According to section 24 every establishment which employs fifty persons or
more shall set up a Joint Works Council consisting of not more than ten
members in which workers participation shall be to the extent of forty per cent
and the Convener of the Council shall be from the management and the
employers representatives shall be from amongst the Directors or their
nominees and the workers representatives shall be the office bearers of
collective bargaining agent The Joint Works Council shall deal the matters
like (i) improvement in production productivity and efficiency (ii) provision
of minimum facilities for the workers employed through contractors as are not
covered by the laws relating to welfare of workers (iii) promoting settlement
of differences through bilateral negotiations (iv) promoting conditions of
safety and health for the workers (v) encouraging vocational training within
the establishment (vi) taking measures for facilitating good and harmonious
working conditions in the establishment (vii) provision of educational
facilities for children of workmen
7 It defines industrial disputes and provides for negotiation between employer
and workers to reach settlement (section 25) conciliation in case negotiation
fails (section 26 to 29) Arbitration in case conciliation also fails (section 30)
and finally a court award binding on all parties (section 33) It also provides
facility of appeal in high court against labor courts awards (section 48)
8 It gives right of strike to workers and lock out to employers to press for their
just demands (section 31) and authorizes government to prohibit strikes in any
public utility service establishment (section 32)
9 It contains provisions about labor courts (section 44) their functions powers
procedure and awards (section 45 46 and 47)
10 It also provides provision about National Industrial Relations Commission and
its functions and powers for registration of industry wide unions and settlement
71
of their disputes (section 49 to 53) and dealing with unfair labor practices
(section 63 and 64)
11 It identifies unfair labor practices on the part of employers (section 63) and
unfair labor practices on the part of workmen (section 64) and penalties for
unfair labor practices (section 65)
It defines rights and duties of employers and rights and duties of workers
(Schedule II) as
Employers Rights
(a) Right to conduct business-The employer shall have the right to manage
control and use the property of his enterprise and conduct his business in any manner
considered appropriate by him
(b) Right to manage-The employer shall have the right to use available resources
including human resources efficiently and effectively in the best interest of the
enterprise
Employers Duties
(a) While exercising the right to conduct business and the right to manage the
enterprise the employer shall act in accordance with the law and shall comply
with the law faithfully
(b) The employer shall protect rights of the workers as guaranteed under the law or
secured to them by any award agreement or settlement in force
(c) The employer shall protect and safeguard the interest of his workers and take
measures within his resources for their socio-economic uplift and welfare He
shall create an environment congenial for enhanced productivity of labour and
maximum output of the enterprise
(d) The employer shall respect the right of the workers to employment wages
decent living and better quality of working life
72
Workers Right
(a) Right to work wage and welfare It is the right of a worker to work
according to the job assigned and to receive wages as per agreed terms and conditions
of employment and to such welfare benefits and safety measures as one is entitled to
according to law agreement settlement and award
(b) Right to freedom of association and collective bargaining and other rights
secured or guaranteed under this Ordinance and other laws Worker has inherent
right to trade unionism and collective bargaining and the right to enjoy the benefits
guaranteed to him under the law rules and regulations settlement award or
agreement
Workers Duties
(a) Worker will perform his duty as assigned by the employer or his
representative according to his best ability with due diligence care honesty
and commitment
(b) Worker will fully observe norms of organizational discipline
(c) Worker in exercise of his right will fully respect the rights of the employer
and will cooperate with him in the efficient performance of the business of the
establishment or enterprise as the case may be
332 Labor Laws Granting Rights
3321 Workmen compensation Act 1923
This act provides for the payment by certain classes of employers to their
workmen of compensation for injury or death by accident
3322 Factories Act 1934
It governs the working conditions of the industrial workers and consolidates and
amends the law made from time to time by provincial governments for regulating labor
73
in factories It is applicable to factories where 10 or more workers are working or were
engaged to work on any day of the preceding 12 months This legislation regulates
working hours paid holidays and conditions of employment of workers It also
provides for hygienic and safe working conditions and environment labor inspection
submission of various returns by employers penalties for violation of provisions of act
and employment of welfare officer by factories employing more than 500 workers
3323 Payment of wages Act 1936
This law defines wages and regulates the conditions of payment of wages to
workers It is applicable to workers employed in factories railways transport
plantation workshops and establishments of contractors According to this law
employer shall pay wages to workmen in the current currency on a working day before
the expiry of the tenth day after the expiry of the wage period and no wage period will
exceed one month
3324 The minimum wages Ordinance 1961
There was no law to provide for the fixation of minimum wages particularly for
large number of workers of smaller establishments who had no bargaining capacity
with employer With this consideration government of Pakistan Promulgated the
Minimum Wage Ordinance 1961 with the objective to create an institution to determine
minimum wage rates for different categories of workers in different industries
Consequently Tripartite Minimum Wage Boards were formed in all the provinces with
powers to examine the general price level ability of the establishment to increase
wages and other relevant factors for determination of minimum wages and refer them
to concerned provincial government
3325 Social Security Ordinance 1965
This law is applicable to all industrial and commercial establishments and
provides for a scheme of social security of insured employees and their dependents in
the event of sickness injury or death The employers pay contribution to the provincial
Social Security Institution at the rate of 7 of the wages of insured person
74
3326 The industrial and commercial employment (standing order) Ordinance 1968
This ordinance lays down the minimum terms and conditions of employment of
workers in industrial and commercial undertakings where 20 or more workmen are
employed or were employed during the preceding 12 months The ordinance provides
for payments of bonus group incentives schemes group insurance gratuity provident
fund termination and dismissal from employment redundancy re-employment of
redundant workers etc
3327 The companies profit (workersrsquo participation) Act 1968
This law is applicable to industries or establishments employing 50 workers or
whose paid up capital is Rupees 2 million or whose value of fixed assets is 4 million
Employers of these industries are required to allocate 5 percent out of their net profit
among the workers Any amount left over after distribution of the workers shares as
laid down under the rule is transferred to the Welfare Fund established under the
provisions of workers Welfare Fund Ordinance 1971
3328 The shops and establishments Ordinance 1969
It was enforced with effect from 30th June 1969 This ordinance was to amend
and consolidate the law relating to the hours of work over time weekly and festival
holidays annual casual and sick leaves time of payment of wages and other terms and
conditions of work and employment in shops and commercial industrial and other
establishments and matters connected therewith
3329 The minimum wages for unskilled workers Ordinance 1969
Government of Pakistan promulgated this ordinance in order to provide
minimum wages to unskilled workers of the industrial and commercial undertakings
employing 50 or more workers The minimum wages have been revised from time to
time Fixation of minimum wages during last fifteen years is given here
75
Period Minimum Wage in Pak Rupees
From Ist July 1993 1500-
From 1st July 2001 2500-
From 1st July 2005 3000-
From 1st July 2006 4000-
From 1st July 2007 4600-
From 1st July 2008 6000-
33210 Workers welfare fund Ordinance 1971
This law provides for establishment of workersrsquo welfare fund for providing
residential accommodation financing other welfare measure including training re-
skilling and investment in securities approved by government For this fund initial
contribution of 10 crores rupees (100 million) was made by Federal Government and
every industrial establishment having income of one hundred thousand rupees or more
in a year is required to pay 2 percent of its income in this fund
33211 Workers children (education) Ordinance 1972
This law provides the payment of Rupees 100- per annum per worker by
employer to the provincial government and government in return provides free
education up to matriculation level and thereafter in poly technique or vocational
institutes to the children of workers
33212 Employees cost of living (relief) Act 1973
Government promulgated Employees Cost of Living (Relief) Act 1973
applicable to undertakings construction industries factories mines road transport
services newspapers establishments The purpose of this law was providing payment
of cost of living allowance to workers to overcome the adverse effects of inflation on
their purchasing power It had been amended and improved with the passage of time It
76
was promulgated first time on 17th September 1973 and enforced from 1st August
1973 but later on re-enacted by parliament in December 1973 Initially parliament was
empower to amend the allowance from time to time but later on Ministry of Labor as
empowered to grant increases in the Cost of Living Allowance through notification
33213 Employees old age benefit Act 1976
This law provides for old age benefits to persons employed in industrial and
commercial establishments This law is applicable to industry and establishment
employing 10 or more workers Employers contribute 5 of the wages of secured
person employed to the Old Age Benefit Institution The male employees after
attaining 60 years and female after 55 years can receive monthly pension The
survivors of the employees are also entitled for this
333 Labor Policies
The Industrial Relation laws of Pakistan were gradually improved through
amendments in existing laws and enacting fresh laws so that provisions may become
compatible to the changing socioeconomic conditions of the country and any further
change in future It was done through labor policies Since independence five labor
policies have been announced by the government in the years 1955 1959 1969 1972
and 2002 which laid-down the parameters for the growth of trade unionism the
protection of workersrsquo rights the settlement of industrial disputes and the redress of
workers grievances These policies covered a broad spectrum of issues and envisaged
to provide for permanent transformation of laws to meet the expanding industrial base
of the country These policies also provided for compliance with international labor
standards ratified by Pakistan The effects of policies are reflected in the
metamorphosis that the labor laws underwent after the implementation of these
policies Here is a brief of these policies
3331 First policy (1955)
It was announced in August 1955 for achieving following objectives
i The growth of healthy unionism
77
ii Settlement of disputes through joint consultation
iii Protection of workers rights
iv Maintenance of industrial peace and harmony in labor management
relations
v Speedy settlement of industrial disputes through adjudication and
effective implementation of awards and
vi Welfare of workers and avoidance of their victimization and
exploitation
3332 Second policy (1959)
It was announced in February 1959 under following guiding principles
i Promotion of healthy unionism
ii Promotion of sound labor management relation
iii Provision of settlement of industrial disputes through peaceful means
iv Provision of social amenities as health education wages etc in
relation of work
v Implementation of ratified ILOrsquos Conventions and recommendations
vi Suitable means for reducing unemployment
vii Creating employment agencies and formation of employment
programmes
3333 Third policy (1969)
Third policy was announced in 1969This policy resulted in the introduction of
legislation guaranteeing freedom of association and the right to collective bargaining
in accordance with ILO Conventions 87 and 98 ratified by Pakistan A system of
78
equitable distribution of gains was put in place in the form of enactment of laws
relating to workers welfare and minimum wage of workers Salient features of this
policy are listed below
i- Measures to encourage the growth of trade unions
ii- Introduction of concept of collective bargaining agent
iii- Strengthening the scope of collective bargaining agent by giving rights
of strikes and lockouts to workers and employers respectively
iv- Extension of the principles collective bargaining of public sector
workers
v- Fixation of minimum wages of workers
vi- Institutional arrangements for minimum wages board
vii- Establishment of workers welfare fund for providing residential
accommodation etc to workers and
viii- Mechanism for settlement of industrial disputes
3334 Fourth policy (1972)
It was announced in 1972 As a result of this policy reforms in the system of
labor legislation were made which envisaged workers participation in the
management extension in the scope of labor laws enactment of laws relating to
employees old-age benefits workers children education introduction of statutory
bonus and group insurance schemes establishment of quasi-judicial body namely
National Industrial Relations Commission and the procedure for redress of workers
individual grievances
The guiding principles of this policy were
i- Emphasis on workersrsquo participation in management of industry
79
ii- Workers participation in the management committees work councils
and joint management boards
iii- Strengthening of work council
iv- Increase of workers share in companies profit from 25 to 5
v- Ensuring job security
vi- Bonus payment as statutory obligation of employer
vii- Speedy redressal of individual grievances through shop stewards
3335 Fifth policy (2002)
The draft of this policy was announced in 1999 but policy was approved in
2002 The principles objectives and action programme of the policy concentrate on
the creation of relationship of trust and cooperation between employer and employee
under the strategy of least intervention by the state A visionary approach adopted in
the Labor policy is a focus on dignity of labor fair balance of bargaining power and
productivity-based work culture with fair and equitable distribution of gains and
proceeds of the industry amongst employees entrepreneurs and the society at large
Principles Objectives and Initiatives of policy are
1 Promotion of Healthy Trade Unionism
Healthy trade unionism based on freedom of association and an effective
collective bargaining system is a pre-requisite for industrial peace productivity and
socio-economic uplift of labor An environment for growth of healthy and responsible
trade unionism will be created by encouraging responsible and representative trade
unions
2 The system of bilateral and tripartite social dialogue shall be strengthened and
streamlined to promote industrial peace and harmonious labor-management relations
Support to bilateral and tripartite mechanisms for policy formulation self-regulation
80
and peaceful resolution of disputes Bilateralism is the core element of the new labor
policy
3 Regulatory authority of government to be exercised only when bilateral
mechanisms fail to resolve disputes
4 Consolidation and simplification of labor laws Existing voluminous labor
legislation is overlapping in its coverage in several areas and anomalous in definitions
and scope The variety and complexity of labor laws has contributed adversely to
industrial relations system Need for rationalizationconsolidation of the existing laws
was acknowledged in this policy Therefore it was proposed to simplify and
consolidate these laws into following six basic laws relating to
1 - Industrial Relations
2 - Conditions of Employment
3 ndash Payment of Wages
4 - Human Resource Development
5 - Occupational Safety and Health
6 - Labor Welfare and Social Protection
5 Structural legislative changes and restructuring simplification and
minimization of Labor Judicial System to provide speedy justice in labor
sector
6 Promotion of employeesrsquo social security and social insurance programs and
improvement of labor welfare institutions namely Workers Welfare Fund
Employees Old Age Benefit Institutions and Provincial Employees Social
Security Institutions
Institutions responsible for social protection social insurance and labor welfare
need to be made fully autonomous and effective by restructuring their respective
81
management boards to ensure adequate labor and employer representation and to
strengthen their tripartite character Policy-making coordination and monitoring of the
functioning of these institutions will be entrusted to these tripartite boards exclusively
7 Progressive extension of labor laws and welfare measures to informal and
unorganized sectors
8 Special emphasis on workersrsquo children education
9 Combating child and bonded labor
10 Elimination of gender discrimination to reinforce gender equality
11 High priority given to occupational safety and health Policy provides for
enactment of law covering all workplaces and establishment of a National
Tripartite Occupational Safety and Health Council to meet the objective of
providing adequate safety and ensuring compensation to workers
12 In this policy importance of research in labor related disciplines and labor
administration necessity of training for improvement of the system and up-
gradation of the personnel have been acknowledged Policy provides for re-
organizing the existing research and training institutes and measures to
promote research and training activities on most modern lines to meet the
present day requirements
3336 Labor Protection Policy 2005
This provides protection to workers in five areas
1 Basic Rights
2 Working Conditions
3 The Working Environment
4 Social Security
82
5 The Living Environment
3337 Labor Inspection Policy 2006
Above policies and laws although important in providing guidelines and
legally enforceable standards mean relatively little unless arrangements are in place to
ensure the highest possible degree of compliance with legal provisions
Therefore government of Pakistan framed out Labor Inspection Policy 2006
after a consultation between government officials employersrsquo and workersrsquo
representatives throughout the country It is also in compliance with ILOrsquos convention
81 ratified in 1953 by government of Pakistan
This policy provides a new direction for the nationrsquos labor inspection systems
to enable them to respond to new approaches on a wide range of labor protection
issues It is integrated labor inspection policy having a modern view of labor
inspection placing the emphasis on prevention protection and improvement with
scope in following three areas
1 The terms under which workers are employed including wages hours of work
allowances leave and other benefits established by law or agreement
including protection against unfair dismissal and protection against
victimization
2 The conditions under which work takes place with regard to the safety of
workers and the action required to identify eliminate minimize and control
safety hazards concerning machinery and equipment work processes and
substances including chemicals
3 The general environment in which work takes place with regard to heat and
ventilation dust noise illumination and related factors likely to contribute to
illness or disease arising from the workplace
In this policy institutional arrangements are proposed for its implementation
Accordingly the Ministry of Labor Manpower and Overseas Pakistanis will establish
83
a National Labor Inspectorate as the central inspection authority to serve as the focal
point for the nationrsquos inspection activities However government supports the system
of self-inspection and self-reporting which means self-responsibility with managers
and workers assuming responsibility for compliance with standards concerning safety
and health and working conditions in the workplace Under this approach managers
and workers take the necessary steps to address and resolve their problems and
disagreements over labor protection issues Where the enterprise has a trade union
self-responsibility takes place through collective bargaining where managers and
workers come together and talk to resolve their differences with the outcome of their
discussions leading to a negotiated and legally binding agreement
These laws and policies pave way of granting rights and benefits to workers
but these are got implemented by the efforts of labor unions In some cases they fix a
minimum level of benefit and unions exert efforts to secure more than this For
example a level of minimum wage is fixed by government but workers receive more
than this Government fixed maximum weekly hours 48 but unions got them reduced
and 48 hours are only in one organization and in all other organizations are less than
this
CHAPTER 4 RESEARCH METHODOLOGY
41 THEORETICAL FRAME WORK
This research study is aimed at investigating the role of labor unions in HRD
by exerting efforts in Pakistanrsquos organizations for exacting benefits for workers from
employer or management motivating and pursuing workers to perform efficiently for
interest of organization If workers are not benefited properly they would be under-
developed being physically weak unsatisfied and de-motivated so will be inefficient
human resource for their organization With inefficient human resource no
organization can gain progress The efforts of unions in this research are restricted
with in the organizations only
If unions are securing benefits for workers then workers should be satisfied
with them and if unions are also serving the ends of employers then employers should
also be satisfied with their role so unions will be successful in their role playing
Success of unions in playing the role for development of human resource of
organizations will be estimated by measuring satisfaction of workers on unionsrsquo
efforts for securing benefits for them and also satisfaction of employers on unions for
motivating workers for better performance ie productivity or efficiency increase and
making harmony at workplace
411 Research Model and Variable Formation
In Industrial Relations when unions are exerting efforts for securing interests
of their workers and also motivate workers to do job dedicatedly for employers benefit
then both workers and employer are satisfied with union then unions are successful It
means unionsrsquo success (Su) is function of satisfaction of workers (Sw) and satisfaction
of employer (Se) This is expressed mathematically in the form of equation
85
Equation -1
[Su = f (Sw Se)]
Bernard (1998) is of the view that an areas joblessness helps to determine the
ability of workers and unions to get wage rises and it is difficult to secure gains when
unemployment threatens the livelihood of workers Holley Jr et al (2001) expressed
that the ability to achieve economic gains in the form of higher wages and improved
benefits is one of the important criterion workers use to gauge the effectiveness of
unions
Therefore in determination of the facts about role of unions or success one
variable used in this research is satisfaction of workers (Sw) on the efforts of unions in
securing benefits for them
For determining satisfaction of workers (Sw) on efforts of unions in securing
benefits for them 15 variable giving direct benefits to workers have been made base
These fifteen variables are showing unionsrsquo efforts for securing workers benefit
Satisfaction of workers is a moderating variable Because satisfaction of workers is
independent variables for purpose of determining unionsrsquo success (Su) as unionsrsquo
success depends on it but it further dependent on 15 variables for its own
determination
The satisfaction of the workers on the performance of unions in this research is
estimated by taking lsquocombine mean of 15 independent variables as shown in the
following equation (ie equation 2) It is a lsquocombine meanrsquo because values of these
fifteen variable have also been calculated as arithmetic mean of the data collected for
variables
86
Equation 2
SW = (Wris + Fbft + Jsec + Td + Linc + Wcon + Ot +
Hfac + Ced + We + Wdf + Prb+ Rfac + Top + Ir) 15
Where Sw is Satisfaction of Workers
Wris is Wag-Rise
Fbft is Fringe Benefits (bonus Allowances)
Jsec is Job Security
Td is Time Reduction
Hfac is Health Facilities
Ced is Children Education
Ot is Over Time
Wcon is Working Conditions
Linc is Leaves Increase
Prb is Post retirement Benefits Pension
Rfac is Recreation Facilities
Top is Training opportunities
Wdf is Wage Difference Reduction
Ir is Informing Workers about their Rights
We is Workersrsquo Education
15 is number of variables in this equation
In unionsrsquo HRD Model equation satisfaction of employers is also essential
and according to lsquoexisting problemrsquo of this research unions have been alleged and
there are misconceptions about them so satisfaction of employers is also to be
determined
87
For determining satisfaction of employers on efforts of unions in protecting
their interest motivating workers for increase of productivity or efficiency of workers
and workplace peace and harmony have been made base These are two variables
measuring unionsrsquo efforts for employersrsquo direct benefit Satisfaction of employers (Se)
is also moderating variable Because it is independent variables for purpose of
determining unionsrsquo success (Su) as unionsrsquo success depends on it but it further
dependent on 2 variables for its own calculation This is expressed in equation 3
Equation 3
Se = (Pin + Wph)2
Where Se is Employersrsquo Satisfaction
Pin is Workersrsquo Productivity Efficiency improvement
Wph is Work Place Harmony
2 is number of Independent variables in the equation
[Sources of variables Bernard (1998) Wong (2000) Holley Jr et al (2001) Aidt amp
Tzannatos 2001) Mishel and Walters (2003) George (2004)]
The conceptual frame work is illustrated in Figure 1
About these variables extensive literature references have been cited in chapter
two Concerned sections of every variable are given below
88
Variables Concerned Sections in Literature Review Page
Wris 231 Wag-Rise 21
Fbft 233 Fringe Benefits 25
Jsec 234 Job Security and Employment 26
Td 235 Time Reduction (Duty Hours) 28
Hfac 239 Health Care and Social Security 31
Ced 2314 Children Education 39
Ot 236 Payment of Over Time 29
Wcon 238 Working Conditions 30
Linc 237 Paid Leaves 29
Prb 2310 Post retirement Benefits (Pension) 33
Rfac 2313 Recreation and Social Services 37
Top 2311 Training Opportunities 34
Wdf 232 Reduction in Wage Inequality 24
Ir 2315 Workers Awareness 39
We 2312 Workersrsquo Education 36
Pin 241 Productivity Efficiency amp Profitability 39
Wph 242 Work Place Harmony amp Cooperative Role 46
89
Figure 1 Showing sequence of variables effect
Information of rights
Worker Education
Training Opportunities
Recreation Facilities
Post retirement Benefit
Children Education
Health Facilities
Working Conditions
Over Time
Wage Rise
Fringe Benefits
Job Security
Leaves Increase
Time Decrease
Productivity Increase
Workplace Harmony
Employerrsquos Satisfaction
Workerrsquos Satisfaction
Unionrsquos Success
Wage Differences
90
412 Research Hypotheses
The null hypothesis depends on 17 variable hypotheses (H1 to H17) to be
proved true so before testing null hypothesis it is essential to test these variable
hypotheses
Hypothesis 1- Unions did not exert efforts for wage rise of workers
Hypothesis 2- Unions did not exert efforts for fringe benefits like bonus and
allowances of workers
Hypothesis 3- Unions did not exert efforts for Job Security of workers
Hypothesis 4- Unions did not exert efforts for Time decrease or offer
resistance against time increase of workers
Hypothesis 5- Unions did not exert efforts for exacting health facilities
Hypothesis 6- Unions did not exert efforts for workers education facilities for
children of workers
Hypothesis 7- Unions did not exert efforts for Overtime payment for over
working
Hypothesis 8- Unions did not exert efforts for better working conditions
Hypothesis 9- Unions did not exert efforts for Leaves increase or offer
resistance against leaves decrease
Hypothesis 10- Unions did not exert efforts for post retirement benefits like
pension
Hypothesis 11- Unions did not exert efforts for arranging recreation facilities
Hypothesis 12- Unions did not exert efforts for arranging training opportunities
Hypothesis 13- Unions did not exert efforts for decreasing wage inequalities
91
Hypothesis 14- Unions did not exert efforts for informing workers about their
rights
Hypothesis 15- Unions did not exert efforts for workersrsquo education
Hypothesis 16- Unions exerted no efforts for motivating workers to increase
productivity
Hypothesis 17- Unions exerted no efforts for workplace harmony
On the basis of above Variablesrsquo Hypotheses the null hypothesis has been
developed If the above statements are proved true then null hypothesis will be proved
true otherwise alternate hypothesis will be accepted
Hypotheses Statement
Null Hypothesis H0 Unions are not beneficial bodies in industrial relations
for HRD
Alternate Hypothesis HA Unions are beneficial bodies in industrial relations for
HRD
42 POPULATION AND SAMPLING
Labor unions of public and private sector organizations their members office
bearers of the unions employers or management or their representatives and union
non-member temporary employees of Pakistanrsquos organizations are population for this
study
The selection of sample was completed in two stages In first stage
Organizations to be studied were sampled and in second stage individuals to be
interviewed (respondents) were sampled
421 Stage-lsquoIrsquo Sampling of Organizations
Due to limitations of access to all the unions only the organizations of
Islamabad and Rawalpindi (twin cities) being capital territory were targeted for
92
sampling Because the Head Offices or Head Quarters of almost all national level
countrywide organizations are situated in the Islamabad Therefore samples of big
public semi public and private organizations having their head offices in Islamabad
the federal capital of the country and some private institutions have been picked
These organizations have different activities such as manufacturing exploring oil
refining printing and publishing telecommunication telecasting town planning and
rendering municipal services power supply gas supply and banking (see appendix D-
1)
422 Stage-lsquoIIrsquo Sampling of Respondents
From sampled organizations the office bearers of CBA unions as unionsrsquo
representative Human Resource officials as management or employersrsquo
representative permanent workers and contract temporary workers were sampled
4221 Sampling of union office bearers
For union views about unionrsquos role respective President or General Secretary
were interviewed from each CBA union General Secretary or President were sampled
because of being most influential and aware about unionrsquos working and performance
their fully engagement in negotiation with management comparatively more dealing
with workers and well awareness with unionsrsquo matters and problems (appendix A-11)
4222 Sampling of permanent (Unionized) workers
For the view point of workers who are the actual partners of the activity and on
whose behalf and for whose benefit unions are formed thirty to seventy workers were
randomly picked from each organization in their head offices different sub offices or
branches or field offices of the organization and personally interviewed by the
researcher on the designed questionnaires (appendix A-1 to A-10)
93
4223 Sampling of management
For management or employers views point about role of labor unions
respective human resource officials having official interaction and dealing with unions
were interviewed from each organization (appendix A-11)
4224 Sampling of temporary (Non-unionized) workers
Ten temporary workers who were not members of union were also randomly
picked and interviewed from organizations except PCP where no temporary worker is
employed
Sampling details of permanent and temporary workers are in appendix D-2
43 DATA COLLECTION INSTRUMENTS
Questionnaires were used as research instruments for data collection
431 Questionnaires and their Structure
Four questionnaires were framed (see appendices G1 to G-4) First for Office
Bearers of the unions (Questionnaires-1) second for Permanent Workers of
organizations (Questionnaires-2) third for Employers (Questionnaires-3) and fourth
for Temporary Workers not covered by unions (Questionnaires-4)
Questionnaire 1 2 and 3 comprise all 20 questions designed in the alignment
with research questions variables Questionnaire 4 comprises only 10 questions
In questionnaires 1 2 and 3 first 17 questions are common In questionnaire-1
from office bearers of union first fifteen questions are about their efforts for direct
benefits of workers such as 1- Increase of workers Wages 2- for any Fringe Benefit of
workers 3- for Job Security 4- for Duty hoursTimings 5- for increase of workers
Leaves 6- for payment of Overtime to workers 7- for improving Working Conditions
8- for Health care of workers and their families 9- for facilities provided for
Education of workers Children 10- for Post Retirement Benefits of Workers such as
pensions 11- for Recreational Facilities for workers 12- for Training facilities for
94
workers 13 is about Unionsrsquo efforts for decreasing workers officers Wagesalary
difference 14- is for unionrsquos efforts for informing workers about their Rights as
worker and 15- is about unions efforts for arrangements for workers education These
are questions giving direct benefit to workers
First these questions were asked from unionrsquos office bearers that what they did
for benefit of workers It is unionsrsquo claim of efforts exerted and the same questions
were asked in second questionnaire from workers whether unionsrsquo claim is right or
false and workers answer is to certify unions claim of efforts and satisfaction level of
workers will be a measure of unionsrsquo efforts In the third questionnaire the same
questions were asked from management whether unionsrsquo officials have really resorted
to management for gaining benefits for workers from management and answer of
management will be an evidence supporting or denying unionsrsquo claim
Two questions 16 and 17 are about unionsrsquo efforts for the benefits of
organization or employer as 16- efforts to increase workers Productivity Efficiency
and 17- is about unionsrsquo efforts to increase workplace Harmony
First these questions were asked from Unionrsquos office bearers that what they did
for benefit of employer or management actually it is their claim and the same
questions were asked in second questionnaire from workers whether unions claim is
right or falsersquo about exertion of unionsrsquo efforts and workers answer is an evidence for
confirming or falsifying unionsrsquo claim of efforts In the third questionnaire the same
questions were asked from management whether union motivates workers to benefit
employer (by improvement of productivity or efficiency of workers and work place
harmony) and what is satisfaction level of management on unionsrsquo efforts Answers of
management will certify unionsrsquo claim and its satisfaction level will be a measurement
of unionsrsquo efforts
In first questionnaire other three questions are general as 18- is about existence
of Work Council in the organization 19- is about unionsrsquo signing of charter of demand
and 20- is about provision of any training to office bearers as unionist by any agency to
conduct unionrsquos matters
95
In second questionnaire question 18 is about essentiality of unions 19 is about
inter union relations if there are two or more unions in the organization and question 20
is about comparison of unionsrsquo strength or weakness over the passage of time
In questionnaire lsquo3rsquo first 17 questions are common to questionnaire 1 and 2
While questions 18- is about existence of Work Council in the organization 19- is
about union signing charter of demand 20-is about Union acceptance of any wage cut
in difficult financial days of the organization for its benefit
Questionnaire lsquo1rsquo provides information about unionsrsquo claim of efforts exerted
for the benefits of workers as measured by variables eg wage rise fringe benefits job
security time reduction leave with pay payment of over time working conditions
health facilities children education facilities pension post retirement benefits
recreation facilities workersrsquo training decrease of wage salary difference of workers
and officers informing them about their legal rights and workers educational
opportunities It also provides information about efforts of unions for benefit of
organization or employer measured by the variables like their contribution for
improvement of productivity and efficiency and work place harmony By responding
these questions unionrsquos representative claim their efforts and struggle for securing
interest of employees and employer which is proved or disproved by the responses of
workers in questionnaire 2 and by management in questionnaire 3
Questionnaire 2 provides information about the responses of workers about the
claims of union office bearers about their effort for betterment of workers as measured
by variables eg wage rise fringe benefits job security time reduction leave with
pay payment of over time working conditions health facilities children education
facilities pension post retirement benefits recreation facilities workersrsquo training
decrease of wage salary difference of workers and officers informing them about
their legal rights and workers educational opportunities In this questionnaire workers
confirm or reject the unionsrsquo claims of exerting efforts for workers betterment and
stand witness for unions claim of exerting efforts for benefit of employer like
motivating for improvement of productivity and efficiency work place harmony In
this questionnaire permanent workers have been interviewed
96
Questionnaire 3 provides responses of management about the same 17
variables showing contribution of unions for benefit of employer by improvement of
productivity and efficiency and work place harmony (question 16 and 17) besides
showing management responses on questions about the benefit of workers In this
questionnaire employer or managementrsquos representative confirms or rejects the
unionrsquos claim of exerting efforts for the benefits of organization (questions 16 and 17)
and stand witness for unions claim of struggle for workers benefit (questions 1-15)
because when ever they seek any benefit for workers they have to demand it from
management Here heads of HR departments or members of management and senior
officials who have to deal with unions or unionized employees have been
interviewed because unions negotiate to them for securing benefits for workers
In fourth questionnaire temporary workers (non members or non covered
employees) provide the data about the variable of workers interest eg wage rise job
security time reduction improvement of working condition children education
facilities health facilities leave with pay bonus payment overtime payment effects
of unions efforts on temporary workers and essentiality of unions etc have been found
to know the difference between facilities of unionized and non unionized employees
Questions in these questionnaires regarding variables were designed to get
response in two forms I- Yes and No and then the satisfaction level of the respondent
on the provision of respective benefit Unions representatives in Questionnaire-I reply
all the 20 questions in Yes or No
Workers in Questionnaire-2 reply all the questions regarding 15 variables
(questions 1 to 15) measuring unions efforts for securing their benefits in Yes or No
and also by expressing their satisfaction level on five points scale ranging from very
unsatisfied to very satisfied but reply as witness in Yes or No by endorsing or
rejecting for questions (16 and 17) regarding management benefits as witness
Management representatives in Questionnaire-3 reply all the questions
regarding 2 variables measuring their benefits in Yes or No and also express their
satisfaction level on five points scale ranging from very unsatisfied to very satisfied
as main beneficiary (question 16 and 17) but for other questions which are for benefit
97
of workers (question 1 to 15) management representatives reply in Yes or No
endorsing or rejecting as witness the claims of union
All the data were collected from sampled respondents by researcher by paying
visits to every respondent
44 PREPARATION OF SATISFACTION LEVEL SCALE
In the present research researcher proposed 17 variables 15 measuring unionsrsquo
efforts for workers and 2 measuring unionsrsquo efforts for employersrsquo benefits On these
efforts the satisfaction of relevant respondent is measured on 5 points Satisfaction
Level Scale (SLS) on Likert Sacle as suggested by Emory (1980) and Cooper amp
Schindler (nd) In this scale weight 5 is allotted to Very Satisfied 4 is allotted to
Satisfied 3 is allotted to Indifferent 2 is allotted to Un-Satisfied and 1 is allotted to
Very Un-Satisfied
45 PILOT STUDY
To test the completeness of questionnaires with respect to information
collection and validity of the instruments a pilot study was conducted in first week of
December 2006 It was found that due to Name workers were reluctant to respond
Besides this the question number 6 regarding the overtime was not included and
questions 18 19 and 20 about unions essentiality inter union relations (between CBA
and non CBA unions) and comparison of unions strength or weakness as compared to
past were also not present So later on name was deleted and question 6 about
overtime and questions 18 19 and 20 were added
46 CODES AND ABBREVIATIONS
In tables due to space limitation formula terms column captions and row stubs
have been abbreviated For abbreviations see appendix E-1) Variable have also been
coded for equations preparation and for writing in the tables in appendix E-2
98
47 STATISTICAL METHODS APPLIED
Collected raw data were converted in to meaningful data by tabulation for
applying statistical techniques of Percentage Arithmetic Mean ( ) Chi square (χ2) and
Comparisons to draw conclusions Then these statistical techniques were applied Both
Statistical Techniques ie Descriptive Statistics in the form of Percentages and
Arithmetic Mean and Inferential Statistical Techniques in the form of Chi square χ2
were used Simple statistical methods have been used so that those readers who have no
statistical background specially workers unionsrsquo office bearers and employers may also
understand and take benefit of this study Data collected on YesNo responses were
analyzed by using percentages and data collected on five points satisfaction level Likert
Scale were analyzed by using Weighted Arithmetic Mean as suggested by Emory
(1980) and Chi square test
The fourth method of comparison by comparing data of permanent workers
with temporary workers was also used to see the unionsrsquo role for seeking benefits for
workers
The formulae of Percentage Arithmetic Mean and Chi square are
471 Percentage
Percentage of Yes responses = Number of Yes responses 100 Number of
total responses
And
Percentage of No responses = Number of No Responses 100 Number of
total responses
472 Arithmetic Mean
Simple Arithmetic Mean is calculated by formula
99
Arithmetic Mean of frequency data is ( ) = ΣfXi n when mean is of one
organization (organizational means) or is of one variable (variable mean) of all
the organizations
Here lsquoΣ fXirsquo is total of responses multiplied by their respective value (weight)
from 1 to 5 (1 for VUS 2 for US 3 for IND 4 for S and 5 for VS) as
suggested by Emory (1980)
For estimation of mediating variables Combine mean of the weighted
arithmetic means of all the variables is to be calculated by application of
formula
Combine Mean = Σ i N
Where Σ i is sum of all the arithmetic means of all the variables and N is
number of variables which is 15 for combine mean calculation of workersrsquo variables
and 2 for combine mean calculation of employer variables
By the value of combine mean of variable-wise means of all the variables the
success of unions will be estimated If the value of the combined mean lies in the
satisfactory region being greater than lsquo3rsquo the value of indifferent weight then unions
are successful and beneficial bodies and are playing role in HRD of the organizations
If it is equivalent to indifferent then they are tolerable and if it lies in the
unsatisfactory region being less than lsquo3rsquo being below indifferent level then unions are
failed organizations and workers or employers are not satisfied with them and we can
conclude that unions are non-beneficial bodies in the organizations and are playing no
role in HRD of the organizations
100
473 Chi Square (χ2)
Formula for Chi square is χ2 = Σ (fo-fe)2fe or
χ2 = Σ (fo-fe)2fe
Σ = (sum of values)
fo = (observed value) calculated by adding all the vales in a column
fe = (expected value) calculated by dividing grand total by number of
columns
df (degree of freedom) = (c-1) (r-1)
df stands for degree of freedom
fo stands for observed frequency
fe stands for expected frequency
c stands for column
r stands for row
In this research Chi square as suggested by Emory (1980) and Cooper amp
Schindler (nd) has been applied on the totals of the columns of variable pertaining to
workers only and not on variables for employers because of limited number of
responses
The level of significance selected for making inference about population was
005
If calculated value of Chi square is more than table value at 005 significance
level at respective degree of freedom then our statement of assumption for respective
variable will be rejected and alternative view will be established
101
474 Comparison
Comparison has been made of admissible facilities enjoyed by permanent
(unionized) workers with temporary (non-unionized) workers in two lsquocomparison
tablesrsquo These comparable facilities were Wage Rise Fringe Benefits (bonus and
allowances) Job Security Weekly Working Hours Working Conditions Children
Education Facility Health Facilities Miscellaneous Allowances and Yearly Leaves
48 CALCULATIONS BY APPLYING STATISTICAL METHODS
For analyzing the data methods of percentage calculation arithmetic mean
calculation and chi square have been applied
481 Percentage Calculation of Yes No Responses
Questions 18 19 and 20 in the questionnaire 2 were answered in Yes No For
estimation of views percentage method has been applied For question 18 about the
essentiality of unions for the organizations if total of percentages of lsquoYesrsquo answers is
more than 50 then it means majority of workers is acknowledging the need of unions
for the cause of workers If the percentage of Yes answers for question 19 about the
inter unions relations is more than 50 percent it means that unionsrsquo mutual
relationships are good For Question 20 about the unionsrsquo strength as compared to
unions in the past if the percentage of Yes answers is more than 50 percent it means
that unionsrsquo of today are weaker than unions in the past
482 Means Calculations
Arithmetic Mean has been calculated of five point satisfaction level of
respondents as described by Emory (1980) and Cooper amp Schindler (nd) by giving
Value 5 to Very Satisfied (VS) 4 to Satisfied (S) 3 to Indifferent (IND) 2 to Un-
Satisfied (US) and 1 to Very Un-Satisfied (VUS) and accordingly multiplying their
frequencies with their respective value Then adding them and dividing them by
respective total frequency ldquonrdquo In Organization wise means n is obtained by
multiplying number of respondents of that organization with number of variables as in
case of ARL for workers satisfaction it will be 35 15= 525 (here 35 is number of
102
respondents and 15 is number of variables) For variable wise mean for workerrsquo
variable n will be 525 which is total number of respondents for any variable being
sample size When mean is calculated for organization it is lsquoorganizational meanrsquo and
when calculated for variable (in variable wise calculation) it is lsquovariable meanrsquo Then
all the variable means are added to each other and divided by number of variables
(total number of variables for workers is 15) to calculate lsquoCombined Meanrsquo of all the
variables of all the organizations
Organizational mean of variables for management variables have been
calculated organization wise by adding weights of responses of that organization and
dividing the sum by 2 which is number of variables benefiting employer for any
organization
Similarly lsquovariable meanrsquo of variables for unionsrsquo efforts for employers were
calculated by adding weighted values of responses of all the respondents for every
variable and then dividing it by 10 then these all variable means were added to each
other and divided by 2 to calculate lsquoCombined Meanrsquo which is direct measure of
employersrsquo satisfaction and consequently of unionsrsquo success
If Combined Mean is below Indifferent level by bearing value less than 3 than
it means workers or employers of organizations are not satisfied with unions efforts
and unions are not successful so unions are not beneficial bodies for organizations If
Combined Mean is equivalent to lsquoIndifferentrsquo by bearing value equal to 3 then it
means unions workers or employers of organizations are neither happy nor unhappy or
number of satisfied and unsatisfied workers is equal So unions if exist have no benefit
or harm or if not existing even then have no benefit or harm but if Combined Mean is
more than ldquoIndifferentrdquo level then majority of workers or employers of organizations
is satisfied with their efforts so their existence is required and we can conclude that
unions are beneficial bodies for organizations
These means have been calculated for responses of workers and for responses
of employermanagement organization-wise of all variables as well as variable-wise
of all the organizations
103
At every stage may be Organization Means Variable Means or Combined
Mean if its value is below 3 (which is weight allotted to ldquoIndifferentrdquo response level)
then it shows clearly that union is not efficient and beneficial It will prove the Null
Hypothesis that unions are not beneficial bodies for organizations and it is to be
accepted If the Mean is above 3 then it shows that the union is efficient and its
presence is beneficial so null hypothesis is to be rejected and Alternate hypothesis is to
be accepted
483 Chi Square Applications
To see the significance and to test assumption statements for every variable
Chi square technique has also been applied for variables pertaining to workers at 005
level of significance as has been applied for testing of statements by Ahmed (2004)
Aleem (2004) Where calculated value of Chi square is more than table value then the
assumption statement is to be rejected and accepted the alternate view point for that
variable It is another parameter to check the efficiency and efforts of unions for
seeking benefits for their workers Chi Square has been applied only on responses of
workers and not on responses of management because of very small number of
respondents
484 Comparison Applications
Comparison has also been made of facilities availed by unionized workers with
non-unionized temporary workers to see their efforts whether facilities had been won
by unions efforts or it was merely blessing of employer or government If there was no
difference than unions were also not beneficial bodies but if unionized workers were
enjoying more facilities and better terms of employment than unions are beneficial
bodies in the organizations
49 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERS BENEFITS
According to theoretical frame work fifteen variables have been targeted for
measuring the efforts of union for benefits of workers These are Wages-rise (Wris)
Job-security(Jsec) Time-decrease (Td) Working-conditions (Wcon) Children-
104
education (Ced) Health-facilities (Hfac) Financial-benefits(Fbft) Over time payment
(Ot) Leaves Increase (Linc) Post Retirement and pension benefits (Prb) Recreation
facilities (Rfac) Training opportunities (Top) Decrease of wage salary difference
gape of workers and officers (Wdf) Informing workers about rights (Ir) and Workers
education These variables have been measured at five scale satisfaction level ie Fully
Satisfied valued as 5 Satisfied valued as 4 Indifferent valued as 3 Unsatisfied valued
as 2 and Fully Unsatisfied valued as 1 The Frequency of variables has been multiplied
with concerned value and then valued frequencies added and their sum has been
divided with sample size of the concerned organization for calculation of organization
mean and with whole sample for sampled mean
For every variable as value of Indifferent satisfaction level is 3 so if sample
mean is 3 then it means union is neither beneficial nor non-beneficial but tolerable and
there is no harm of union if not giving any benefit and no loss if not existing If mean
is less than three than union is not beneficial body and if mean is more than 3 than
union is a beneficial body More it is bigger than 3 the more beneficial is the union for
workers or more union has put efforts for acquiring workers benefit
Combine mean of all the variables means is obtained by putting their values in
equation 2 Details of codes used in the equation is in appendix E-2
SW = (Wrise + Fbft +Jsec + Td + Wcon + Ced + Hfac +
+ Linc+ Ot + Prb + Rfac + Top + Wdf + Ir + We+)15
This combined mean is measure of satisfaction level of workers and a
component of unionsrsquo success equation lsquoSu = f Sw Sersquo If combined mean is above
3 (indifferent level) unions are successful with reference to putting efforts for workers
benefits and value of combined mean above 3 will be a scale of level of success If
combined mean is 3 then unions are neither successful nor harmful If mean is below 3
then unions are failed and there presence in the organization is not benefiting so there
existence should be avoided
105
491 Variables Measuring Unionsrsquo Efforts for Employersrsquo Benefits
Two variables have been targeted for measuring the efforts of unions for
employersrsquo benefits
These are efforts to increase workers productivity or efficiency (productivity in
manufacturing efficiency in non manufacturing and services) (Pin) and efforts for
work place peace and harmony (Wph) The Frequency of variablesrsquo is multiplied with
concerned weight and then weighted frequencies are added and their sum is divided
with sample size for calculation of sampled mean
As weight of indifferent satisfaction level is 3 so if sample mean is 3 then it
means union is neither beneficial nor non-beneficial but tolerable and there is no harm
of union if not benefited If mean is less than three than union in not beneficial body
and if mean is more than 3 than union is a beneficial body More it is bigger than 3 the
more beneficial is the union for workers Weighted average of all the variables has
been obtained and then all these means have been put in the equation
Se = (Pin + Wph)2
Here 2 is number of variables This gives the combined mean of employersrsquo
variables Combined mean is measure of satisfaction of employer with the unions
If combined mean is three then union has neither benefit nor harm or equally
satisfying and un-satisfying if less than 3 then employer is unsatisfied union is not
beneficial body for the employer of the organization and if it is bigger than 300 then
the employer is satisfied so union is beneficial body for the employer of the
organization
CHAPTER 5
DATA ANALYSIS AND RESULTS
This chapter is dedicated to present and analyze collected data by applying
statistical operations
51 DATA PRESENTATION
Data obtained from respondents by asking questions 1 to 17 in questionnaire 1
2 and 3 are tabulated in appendices F-1 to F-10
In appendices F-1 to F-10 every table has 11 columns First column contains
coded name of variable Columns 2 and 3 show answers of workers about unionsrsquo
role column 2 contains number of respondents replying in Yes and column 3 contains
number of respondents replying in No Columns 4 to 8 express satisfaction level of
workers from very satisfied to very unsatisfied Column 9 represents unionsrsquo response
on the same question It is claim of union about the services they rendered and it is
answered in YesNo Column 10 contains the managementsrsquo answers on unionsrsquo
performance as witness for efforts exerted for benefit of workers and certifier for
variables for benefit of management itself Column 11 shows the numerical value of
managementrsquos answer of variables pertaining to employersrsquo interest protected by
unions Data for all other tables drawn for analysis have been taken from these tables
Replies of questions 18 19 and 20 of questionnaire 2 are presented in table in
appendix F-11 replies of question number 18 19 and 20 of questionnaire 1 are
presented in table in appendix F-12 and replies of question number 18 19 and 20 of
questionnaire 3 are presented in table in appendix F-13
511 Organization-Wise Description of Respondents
Data collected from respondents pertaining to questions numbers 1 to 17 of all
the organizations have been tabulated organization wise in the appendices F-1 to F-10
Their description is given below
107
5111 Description of respondents of ARL
For Attock Refinery Limited (ARL) for unionrsquos opinion general secretary of
the union in the presence of president for managementrsquos view point manager HR and
among workers 30 permanent workers and 10 temporary or contract workers were
interviewed in Head office and Refinery at Morgah Rawalpindi Because of
difficulties of gaining access to the workplace only 30 workers of different trades were
randomly contacted in the parking administrative offices and outside of refinery at
different times randomly Majority of workers were interviewed during breaks and
after end of duty (appendices A-1 and B-1) Ten temporary workers were interviewed
similar way
5112 Description of respondents of CDA
In Capital Development Authority (CDA) for unionrsquos opinion president of the
union for managementrsquos view point Deputy Director Labor Affairs and among
workers 70 permanent workers were interviewed in head office and at divisional and
directorates offices field complaint office and rest-house workers (appendices A-2
and B-2)
For temporary workersrsquo opinion ten temporary workers were interviewed in
different offices
5113 Description of respondents of IESCO
In Islamabad Electric Supply Company (IESCO) for unionrsquos opinion general
secretary of the union for managementrsquos views manager HR and among workers 70
permanent workers and 10 temporary or contract workers were interviewed in head
office in various circle offices (office of Executive Engineer) divisional offices (office
of Sub Divisional Officer) grid stations and customer services centers Islamabad and
Rawalpindi (appendices A- 3 and B-3)
108
5114 Description of respondents of KTM
In Kohinoor Textile Mills (KTM) for unionrsquos opinion general secretary of the
union for managementrsquos views manager HR and among workers 35 permanent
workers and 10 temporary or contract workers were interviewed in Head office and
workers residential colony at Rawalpindi Because of difficulties of gaining access to
the workplace only 35 workers of different trades were randomly contacted in the
colony and in surroundings of the factory (appendices A- 4 and B-4)
5115 Description of respondents of OGDCL
In Oil and Gas Development Company Limited (OGDCL) for unionrsquos opinion
General secretary of the union and for managementrsquos view point manager HR and
among workers randomly picked 50 permanent workers and 10 temporary or contract
workers were interviewed in head office Islamabad at store I-9 Staff College (OGTI)
Islamabad and in different oilfields (appendices A-5 and B-5)
5116 Description of respondents of PCP
In Printing Corporation of Pakistan (PCP) for unionrsquos opinion general
secretary of the union and for managementrsquos views point Director Administration and
from workers randomly picked 50 permanent workers were interviewed from head
office and printing press Islamabad There is no temporary worker in the organization
(appendices A-6 and B-6)
5117 Description of respondents of PTCL
In Pakistan Telecommunication company Limited (PTCL) for unionrsquos opinion
General Secretary of the union and for managementrsquos view point General Manager
Human Resource and among workers randomly picked 70 permanent workers and 10
temporary or contract workers were interviewed in head office G-8 Islamabad
divisional engineers offices telephone exchanges revenue offices customers services
centers in Islamabad and Rawalpindi and line men working in the field (appendices
A- 7 and B-7)
109
5118 Description of respondents of PTV
In Pakistan Television Corporation (PTV) for unionrsquos opinion general
secretary of the union and for managementrsquos view point controller HR and
administration and among workers randomly picked 50 permanent workers and 10
temporary or contract workers were interviewed in head quarter (administration office
head office) PTV Main telecasting Station F-5 Islamabad at PTV ONE and ETV at H-
9 Islamabad (appendices A- 8 and B-8)
5119 Description of respondents of SNGPL
In Sui Northern Gas Pipe Line Limited (SNGPL) for unionrsquos opinion General
Secretary of the union and for managementrsquos views manager HR and among workers
randomly picked 50 permanent workers and 10 temporary or contract workers were
interviewed in General Manager office I-9 Islamabad in different departments such as
construction department billing department connection department meter reading
department sales department recovery department administration department and
marketing department and in revenue offices of Saddar Rawalpindi and Satellite Town
Rawalpindi and workers in the fields (appendices A- 9 and B-9)
51110 Description of respondents of ZTBL
In Zarhi Tarraqqiatti Bank Limited (ZTBL) for unionrsquos opinion general
secretary of the union and for managementrsquos view point Senior Vice President
administration and HR and among workers randomly picked 50 permanent workers
and 10 temporary or contract workers were interviewed in head office Zero Point
Islamabad at zonal office G-7 Islamabad and in some branches (appendices A- 10 amp
B-10)
51111 Workers responses of the questions about essentiality inter unions relations and unions status as compared to past
To find out whether unions are essential in the organizations or not what are
inter union relationships of unions where if unions are more than one in the
organization and what happened with the strength of unions with the passage of time
110
workers of the organizations were asked questions 18 19 and 20 respectively
Responses of workers are presented in table in appendix F-11 Three organizations
ARL PCP and ZTBL have single union so in analysis of question 18 their respondents
will not be considered in sample
51112 Unionsrsquo office bearersrsquo responses of the questions about work council charter of demand and unionistsrsquo training
These responses are tabulated in table in appendix F-12 Column 1 is about
organizations names column 2 is about responses of question 18 column 3 is about
responses of question 19 and column 4 is about responses of question 20 of unionsrsquo
representatives
51113 Management responses about work council charter of demand and wage cut
These responses are tabulated in table in appendix F-13 Column 1 is about
organizations names column 2 is about responses of question 18 column 3 is about
responses of question 19 and column 4 is about responses of question 20 of unionsrsquo
representatives
52 ORGANIZATION-WISE STATISTICAL ANALYSIS OF DATA
Here data tabulated in appendices F-1 to F-10 have been analyzed Tables have
been constructed for this purpose Tables 1 to 10 are meant for variables pertaining to
workers Where unions are claimer workers are certifier as actual party and
management is witness Every table comprise 7 columns first column contains
variables column 2 to 6 contain workersrsquo responses with satisfaction level valued
from 5 for very satisfied (VS) to 1 very un-satisfied (VUS) about any effort and
column 7 contains total number of respondents for any variable Total of all the
columns has been multiplied by its value to obtain valued total and valued totals of all
columns from 2 to 6 added (such as in table-1 total of column two ie 32 multiplied by
its value ie 5 so valued total came 160 and valued total of column three that is 944
valued total of column four that is 402 and valued total of column five that is 96 and
their grand valued total is 1602 ) and divided by number of all the responses (450
111
which is product of number of respondents ie 30 multiplied by number of variables
ie 15) to get organizationrsquos mean that is 356 It is measure of satisfaction of workers
on efforts of union of the organization for their benefits
Tables from 11 to 20 are meant for calculating arithmetic means of responses of
variables pertaining to employer and contain 3 columns Column one is for variable
name column 2 contains responses of employer and column 3 contains values of these
responses Values in the column 3 have been added and their total has been divided by
number of variables ie 2 to calculate mean of responses of employer It is really
measure of satisfaction of employer on efforts of union of one organization for
employerrsquos interest
521 ORGANIZATIONAL MEANS OF WORKERSrsquo VARIABLES
Organization wise arithmetic means and percentages of all the organizations on
the basis of the variables pertaining to workers have been calculated below in tables 1
to table 10
112
Table-1 Responses of Workers of ARL Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables No
Wris 2 20 8 - - 30
Fbft 8 16 4 2 - 30
Jsec 8 18 4 - - 30
Td 16 14 - - 30
Linc 24 6 - - 30
Ot 20 10 - - 30
Wcon 4 22 4 - - 30
Hfac 20 6 4 30
Ced 2 14 10 4 30
Prb - 2 14 14 30
Rfac 2 10 8 10 30
Top 18 8 4 30
We 12 14 4 30
Wdf 6 8 12 4 30
Ir 16 12 2 30
Total = f 32 236 134 48 450
fXi 160 944 402 96 1602 Organizational Mean (ARL) = Σ fXi450= 1602450 = 356
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 356 which is more than 3 (Indifferent level) showing union of ARL is
exerting efforts for exacting benefits for workers
Union of ARL claimed for exertion of efforts for securing all benefits for workers and
management confirmed it (see column 9 and 10 of appendix F-1)
113
Table 2 Responses of Workers of CDA (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row
Total Value (Xi) 5 4 3 2 1
Variables No
Wris 40 14 16 70
Fbft 62 6 2 70
Jsec 48 18 4 70
Td 36 32 2 - 70
Linc 35 33 2 70
Ot 30 32 8 70
Wcon 30 28 12 70
Hfac 40 14 16 70
Ced 13 48 9 70
Prb 14 50 6 0 70
Rfac 58 12 70
Top 10 20 40 70
We 28 34 8 70
Wdf 28 28 14 70
Ir 54 10 6 70
Total = f 14 504 381 151 1050
fXi 70 2016 1143 302 3531 Organizational Mean (CDA) = Σ fXi1050 =35311050 = 336
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 336 which is more than 3 (Indifferent level) showing union of CDA is
exerting efforts for exacting benefits for workers
Union of CDA claimed for exertion of efforts for securing all benefits for
workers and management confirmed it except for time decrease leaves increase
recreation facilities and workersrsquo education (see column 9 and 10 of appendix F-2)
114
Table 3 Responses of Workers of IESCO (Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables No
Wris - 26 22 22 - 70
Fbft 2 12 56 - 70
Jsec 7 40 13 10 - 70
Td - 40 23 7 - 70
Linc - 40 25 5 - 70
Ot 36 20 14 - 70
Wcon 50 10 10 - 70
Hfac 26 24 20 - 70
Ced 9 44 17 - 70
Prb 4 46 20 - 70
Rfac 47 23 70
Top 22 34 14 - 70
We 36 24 10 70
Wdf - 2 37 31 - 70
Ir - 49 10 11 - 70
Total = f 7 382 391 270 1050
fXi 35 1528 1173 540 3276 Organizational Mean (IESCO) = Σ fXi1050 = 32761050 = 312
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 312 which is more than 3 (Indifferent level) showing union of IESCO is
exerting efforts for exacting benefits for workers
Union of IESCO claimed for exertion of efforts for procuring all benefits for
workers and management confirmed it except for fringe benefits leaves increase
workersrsquo education and reduction of officers workers salary difference (see column 9
and 10 of appendix F-3)
115
Table 4 Responses of Workers of KTM (Organizational Mean Calculation) Satisfaction Level VS S IND US VUS Row
Total Value (Xi) 5 4 3 2 1
Variables No
Wris - 10 4 21 35
Fbft - 17 17 1 35
Jsec - 15 10 10 35
Td - 13 13 9 35
Linc - 10 16 9 35
Ot - 12 15 8 35
Wcon - 30 5 - 35
Hfac 6 25 4 - 35
Ced 4 20 11 - 35
Prb - 17 10 8 35
Rfac - 16 10 9 35
Top 22 13 35
We 12 17 6 35
Wdf 2 7 26 35
Ir 20 12 3 35
Total = f 10 219 173 123 525
fXi 50 876 519 246 1691 Organizational Mean (KTM) = Σ fXi525= 1691525 = 322
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 322 which is more than 3 (Indifferent level) showing union of KTM is
exerting efforts for exacting benefits for workers
Union of KTM claimed for exertion of efforts for securing all benefits for
workers and management confirmed it except for wage rise time decrease leave
increase overtime payment recreation facilities training opportunities and reduction
of officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)
116
Table 5 Responses of Workers of OGDCL (Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables X1 X2 X3 X4 X5 N
Wris - 35 15 - - 50
Fbft 2 34 10 4 - 50
Jsec - 45 5 - - 50
Td - 40 10 - - 50
Linc - 40 10 - - 50
Ot - 22 16 12 - 50
Wcon 4 33 10 3 - 50
Hfac 17 28 5 - - 50
Ced - 8 36 06 - 50
Prb - 27 13 10 - 50
Rfac 18 14 14 04 - 50
Top 4 19 20 7 - 50
We 21 19 10 - 50
Wdf 5 26 14 5 - 50
Ir - 34 12 4 - 50
Total = f 50 426 209 65 750
fXi 250 1704 627 130 2711
Organizational Mean (OGDC) = Σ fXi750 = 2711750 = 361
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 361 which is more than 3 (Indifferent level) showing that union of
OGDC is exerting efforts for exacting benefits for workers
Union of OGDC claimed for exertion of efforts for procuring all benefits for
workers and management confirmed it (see column 9 and 10 of appendix F-5)
117
Table 6 Responses of workers of PCP (Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables X1 X2 X3 X4 X5 N
Wris 37 4 9 50
Fbft 33 8 9 50
Jsec 4 40 4 2 50
Td 40 4 6 50
Linc 38 7 5 50
Ot 37 9 4 50
Wcon 39 6 5 50
Hfac 40 5 5 50
Ced 11 16 23 50
Prb 5 30 15 50
Rfac 30 20 50
Top 24 26 50
We 30 20 50
Wdf 5 37 8 50
Ir 20 21 9 50
Total = f 4 375 225 146 750
fXi 20 1500 675 292 2487 Organizational Mean (PCP) = Σ fXi750 = 2487750 = 332
Weighted Arithmetic Mean of Satisfaction Level of the responses of workers
for all the variables is 332 which is more than 3 (Indifferent level) showing union of
PCP is exerting efforts for exacting benefits for workers
Union of PCP claimed for exertion of efforts for procuring all benefits for
workers and management confirmed it except for children education facilities
recreation facilities training opportunities workersrsquo education and reduction of
officersrsquo workersrsquo salary difference (see column 9 and 10 of appendix F-4)
118
Table 7 Responses of workers of PTCL (Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables X1 X2 X3 X4 X5 N
Wris 28 18 24 - 70
Fbft 14 16 40 70
Jsec 2 39 15 14 - 70
Td 40 20 10 - 70
Linc 36 24 10 - 70
OT 10 38 22 - 70
Wcon 36 24 10 - 70
Hfac 44 16 10 - 70
Ced 11 32 27 - 70
Prb 4 44 22 - 70
Rfac 40 30 - 70
Top 16 40 14 - 70
We 19 39 12 70
Wdf 32 38 - 70
Ir 18 34 18 70
Total = f 2 315 432 301 1050
fXi 10 1260 1296 602 3168 Organizational Mean (PTCL) = Σ fXi1050 = 31681050 = 302
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 302 which is very marginally bigger than 3 (Indifferent level) showing
that union of PTCL is exerting efforts for exacting benefits for workers but the
situation is hardly satisfactory and union is approximately at tolerance level Thus
PTCL union has much to do for workers
Union of PTCL claimed for exertion of efforts for procuring all benefits for
workers and management confirmed it except for children education facilities post
retirement benefits recreation facilities (see column 9 and 10 of appendix F-7)
119
Table 8 Responses of workers of PTV (Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables X1 X2 X3 X4 X5 N
Wris 6 26 14 4 50
Fbft - 36 12 2 50
Jsec 7 39 3 1 50
Td 37 10 3 50
Linc 38 9 3 50
Ot 41 6 3 50
Wcon 39 11 50
Hfac 37 5 8 50
Ced 13 20 17 50
Prb 21 24 5 50
Rfac 10 34 6 50
Top 16 24 10 50
We 33 8 9 50
Wdf 23 14 13 50
Ir 30 10 10 50
Total = f 13 439 204 94 750
fXi 65 1756 612 188 2621 Organizational Mean (PTV) = Σ fXi750 = 2621 750=350
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 350 which is more than 3 (Indifferent level) showing that union of PTV
is exerting efforts for exacting benefits for workers
Union of PTV claimed for exertion of efforts for procuring all benefits for
workers and management confirmed it except for recreation facilities (see column 9
and 10 of appendix F-8)
120
Table 9 Responses of workers of SNGPL (Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables No
Wris 7 30 10 3 50
Fbft 5 30 12 3 50
Jsec 5 34 11 50
Td 34 16 50
Linc 32 18 50
Ot 3 21 23 3 50
Wcon 3 40 4 3 50
Hfac 4 34 10 2 50
Ced 6 22 22 50
Prb 37 8 5 50
Rfac 16 30 2 2 50
Top 10 34 6 50
We 15 25 10 50
Wdf - 17 28 5 50
Ir 25 14 11 50
Total = f 43 395 237 75 750
fXi 215 1580 711 150 2656 Organizational Mean (SNGPL) = Σ fXi750 = 2656750 = 354
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 354 which is more than 3 (Indifferent level) showing that union of
SNGPL is exerting efforts for exacting benefits for workers
Union of SNGPL claimed for exertion of efforts for procuring all benefits for
workers and management confirmed it except for time decrease and leaves increase
(see column 9 and 10 of appendix F-9)
121
Table 10 Responses of workers of ZTBL (Organizational Mean Calculation)
Satisfaction Level VS S IND US VUS Row Total
Value (Xi) 5 4 3 2 1
Variables
Wris - 32 14 4 - 50
Fbft 28 14 8 - 50
Jsec 26 20 4 - - 50
Td 28 16 6 - 50
Linc 28 14 8 50
Ot 16 12 22 - 50
Wcon 32 14 4 - - 50
Hfac 1 38 4 7 - 50
Ced 22 22 6 - 50
Prb 2 18 30 - 50
Rfac 28 22 - 50
Top 26 20 4 - 50
We 28 18 4 50
Wdf 2 20 22 6 - 50
Ir 4 34 7 5 - 50
Total = f 65 336 217 132 750
fXi 325 1344 651 264 2584 Organizational Mean (ZTBL) = Σ fXi750 = 2584750= 345
Arithmetic Mean of Satisfaction Level of the responses of workers for all the
variables is 345 which is more than 3 (Indifferent level) showing that union of ZTBL
is exerting efforts for exacting benefits for workers
Union of ZTBL claimed for exertion of efforts for procuring all benefits for
workers and management confirmed it (see column 9 and 10 of appendix F-10)
122
522 ORGANIZATIONAL MEANS OF MANAGEMENTrsquoS VARIABLES
Organization wise arithmetic means of all the organizations on the basis of the
two variables pertaining to management have been calculated below in tables 11 to
table 20
Table 11 Responses of Management of ARL
Management Responses
Variable Satisfaction Level Value
Pin IND 3
Wph S 4
Total 7
Mean 72 = 35
Organizational Mean (ZTBL) = Σ Xi2 = 72 = 35
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 350 which is more than 3 (Indifferent level) showing that union of
ARL is exerting efforts in exhorting workers to work for the interest of employer
Therefore union is successful
123
Table 12 Responses of Management of CDA
Management Response
Variable Satisfaction Level Value
Pin IND 3
Wph S 4
Total 7
Mean 72 = 35
Organizational Mean (CDA) = ΣXi2 = 72 = 35
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 350 which is more than 3 (Indifferent level) showing union of CDA is
exerting efforts in exhorting workers to work for the interest of employer
124
Table 13 Responses of Management of IESCO
Management Response
Variable Satisfaction Level Value
Pin S 4
Wph FS 5
Total 9
Mean 92 = 45
Organizational Mean (IESCO) = Σ Xi2 = 92 = 45
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 45 which is more than 3 (Indifferent level) showing union of IESCO
is exerting efforts in exhorting workers to work for the interest of employer
125
Table 14 Responses of Management of KTM
Management Response
Variable Satisfaction Level Value
Pin S 4
Wph S 4
Total 8
Mean 84 = 400
Organizational Mean (KTM) = Σ Xi2 = 82 = 400
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 40 which is more than 3 (Indifferent level) showing union of KTM is
exerting efforts in exhorting workers to work for the interest of employer
126
Table 15 Responses of Management of OGDC
Management Response
Variable Satisfaction Level Value
Pin IND 3
Wph S 4
Total 7
Mean 72 = 3 5
Organizational Mean (OGDC) = Σ Xi2 = 72 = 35
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 35 which is more than 3 (Indifferent level) showing union of OGDCL
is exerting efforts in exhorting workers to work for the interest of employer
127
Table 16 Responses of Management of PCP
Management Response
Variable Satisfaction Level Value
Pin IND 3
Wph S 4
Total 7
Mean 72 = 35
Organizational Mean (PCP) = Σ Xi2 = 72 = 35
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 35 which is more than 3 (Indifferent level) showing union of PCP is
exerting efforts in exhorting workers to work for the interest of employer
128
Table 17 Responses of Management of PTCL
Management Response
Variable Satisfaction Level Value
Pin IND 3
Wph ND 3
Total 6
Mean 62 = 30
Organizational Mean (PTCL) = Σ Xi2 = 62 = 30
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 3 which is equivalent to Indifferent level showing employer of PTCL
is at indifferent level and union is tolerable for employer Here again unionsrsquo
performance needs much improvement
129
Table 18 Responses of Management of PTV
Management Response
Variable Satisfaction Level Value
Pin IND 3
Wph S 4
Total 7
Mean 72 = 35
Organizational Mean (PTV) = Σ Xi2 = 72 = 35
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 35 which is more than 3 (Indifferent level) showing union of PTV is
exerting efforts in exhorting workers to work for the interest of employer
130
Table 19 Responses of Management of SNGPL
Management Response
Variable Satisfaction Level Value
Pin IND 3
Wph S 4
Total 7
Mean 72 = 35
Organizational Mean (SNGPL) = ΣXi2 = 72 = 35
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 35 which is more than 3 (Indifferent level) showing union of SNGPL
is exerting efforts in exhorting workers to work for the interest of employer
131
Table 20 Responses of Management of ZTBL
Management Response
Variable Satisfaction Level Value
Pin S 4
Wph S 4
Total 8
Mean 82 = 400
Organizational Mean (ZTBL) = Σ fXi2 = 82 = 400
Arithmetic Mean of Satisfaction Level of the responses of management for all
the variables is 40 which is more than 3 (Indifferent level) showing union of ZTBL is
exerting efforts in exhorting workers to work for the interest of employer
132
53 VARIABLE-WISE ANALYSIS
In this section performance of unions has been estimated by measuring
satisfaction level of respondents ie workers and employers in the lights of their
responses for every variable by applying arithmetic mean and Chi squire
Mean of satisfaction level of workers of all the sample for all 15 variables has
been calculated individually in tables from table 21 to table 35 and then combine mean
of satisfaction level of all variable has been calculated in lsquotable 36rsquo by adding these
individual variable means and dividing it on 15 which is total number of variable
In tables 21 to 35 totals of columns 3 to 7 have been multiplied by their
respective value (given in top row stubbed lsquoValuersquo) to obtain valued total and these
valued totals of all columns have been added and divided by lsquoNrsquo which is total of
respondents (total of sample) and equal to 525 the outcome is lsquovariable meanrsquo for
concerned variable This mean measures the satisfaction level of all the sampled
workers on the efforts of unions exerted for that single benefit
Chi square test has been applied on 15 variables in tables 37 to 51 on totals of
columns fetched from tables 21 to 35 respective variable at significance level of 005
and degree of freedom according to data of variable Calculated values of Chi square
have been compared with table value at 005 significance level and respective degree
of freedom In case calculated value is greater than table value the hypothesis for that
variable is to be rejected and alternative view is to be accepted
133
531 MEAN CALCULATION OF VARIABLES MEASURING UNIONSrsquo EFFORTS FOR WORKERSrsquo BENEFITS
Variables that are measuring unionsrsquo efforts for securing benefits for workers
are fifteen These have been analyzed by constructing tables and calculating their
arithmetic mean
Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers
Table 21 Mean calculations-wage rise (Wris)
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 2 20 8 - -
CDA 70 40 14 16
IESCO 70 - 26 22 22 -
KTM 35 - 10 4 21
OGDCL 50 - 35 15 - -
PCP 50 37 4 9
PTCL 70 28 18 24 -
PTV 50 6 26 14 4
SNGPL 50 7 30 10 3
ZTBL 50 - 32 14 4 -
Total (f) 525 15 284 123 103 -
fXi 75 1136 369 206 - 1786
Variable Mean = Σ fXi 525 =1786 525 = 340
134
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organization (ten organizations) for Wage rise of workers
is 340 which is bigger than 3 (Indifferent Level) showing unions as a whole have
exerted effective efforts for rise in wages of worker
Efforts of unions for wage rise can be estimated from this fact that at time of
survey (December 2006) minimum wage was Rupees 4000 but 324952 workers
were earning wages between Rupees 5000 and 10000 and 4952 between 10000
and 20000 and 118 percent were getting wages even more than rupees 20000
(Appendix C-3) Rise in wages was 15 to 35 except of KTM (see Appendix C-1)
This is really an achievement at the part of labor unions proving their success
Out of 525 respondents 15 were very satisfied 284 satisfied 123 indifferent
and only 103 were unsatisfied (see Table 21 and Figure2)
Management of all the organizations Except KTM also confirmed that unions
have been negotiating with them for exacting this benefit for workers (see tables in
appendices F-1 to F-10 column management responses)
So Hypothesis 1 that unions did not exert efforts for wage rise of workers is
rejected and alternate view is established
Figure-2 - Satisfaction Level of Workers on Wage Rise
Very Satisfied 15
3
Satisfied 284 54
Indifferent 123 23
un-Satisfied 103 20 Very Satisfied
SatisfiedIndifferentun-Satisfied
135
Hypothesis 2 (H2) Unions did not exert efforts for financial benefits like bonus of Workers
Table 22 Mean Calculations - Bonus (Financial Benefits) (Fbft)
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 8 16 4 2 -
CDA 70 62 6 2
IESCO 70 2 12 56 -
KTM 35 - 17 17 1
OGDCL 50 2 34 10 4 -
PCP 50 33 8 9
PTC) 70 14 16 40
PTV 50 - 36 12 2
SNGPL 50 5 30 12 3
ZTBL 50 28 14 8 -
Total (f) 525 15 272 111 127
fXi 75 1088 333 254 1750
Variable Mean = Σ fXi 525 =1750 525 = 333
136
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organization for Fringe Benefits (Bonus) of workers is
333 which is bigger than 3 (Indifferent Level) showing that unions as a whole have
exerted effective efforts for obtaining bonuses for worker So Hypothesis 2 that
unions did not exert efforts for financial benefits like bonus of workers is rejected and
alternate view is established
Except PCP workers of all other organizations are getting bonuses and in some
organizations bonuses are two or more ARL paid 5 and KTM has paid 4 bonuses in
previous charter (Appendix C-1) ARL KTM and OGDCL pay 5 percent of their
profit to workers and KTM besides this also makes payment to social security and 5
percent equivalent of workersrsquo salary to Employees Old Age Benefit department
(Appendix C-1) All these benefits are fruit of unionsrsquo efforts
Out of 525 respondents 15 were very satisfied 272 satisfied 111 indifferent
and only 127 were unsatisfied (see Table 22 and Figure-3)
Management of all the organizations except IESCO also confirmed that unions
have been negotiating with them for exacting this benefit for workers (see tables in
appendices F-1 to F-10 column management responses)
Figure-3 - Satisfaction Level of Workers on Financial Benefits
Very Satisfied 15
3
Satisfied 272 52Indifferent
111 21
un-Satisfied 127 24 Very Satisfied
SatisfiedIndifferentun-Satisfied
137
Hypothesis 3 (H3) Unions did not exert efforts for Job Security of workers
Table 23 Mean Calculations Job Security (J-sec)
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 8 18 4 - -
CDA 70 48 18 4
IESCO 70 7 40 13 10 -
KTM 35 - 15 10 10
OGDCL 50 - 45 5 - -
PCP 50 4 40 4 2
PTC) 70 2 39 15 14 -
PTV 50 7 39 3 1
SNGPL 50 5 34 11
ZTBL 50 26 20 4 - -
Total (f) 525 59 338 87 41 0
fXi 295 1352 261 82 1990
Variable Mean = Σ fXi 525 =1990 525 = 379
138
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organization for Job Security of workers is 379which is
bigger than 3 (Indifferent Level) showing unions as a whole have exerted effective
efforts for Job Security of worker
Out of 525 respondents 59 were very satisfied 338 satisfied 87 indifferent and
only 41 were unsatisfied (see Table 23 and Figure-4)
Employees of all the organizations under study are enjoying job security due to
unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts of
unions for job security only 41 workers were unsatisfied (Table23)
Management of all the organizations also confirmed that unions have been
exerting efforts for workers job security (see tables in appendices F-1 to F-10 column
management responses)
So hypothesis 3 that unions did not exert efforts for Job Security of workers is
rejected and alternative view is established
Figure-4 - Satisfaction Level of Workers on Job Security
Very Satisfied 59
11
Satisfied 338 64
Indifferent 87 17
un-Satisfied 41 8
Very SatisfiedSatisfiedIndifferentun-Satisfied
139
Hypothesis 4 (H4) Unions did not exert efforts for Time decrease or offered resistance against time increase of workers
Table 24 Mean Calculations Time Reduction (Td)
Satisfaction Level No VS S IND US VUS Σ fXi
values (Xi) 5 4 3 2 1
Organization
ARL 30 16 14 - -
CDA 70 36 32 2 -
IESCO 70 - 40 23 7 -
KTM 35 - 13 13 9
OGDCL 50 - 40 10 - -
PCP 50 40 4 6
PTCL 70 40 20 10 -
PTV 50 37 10 3
SNGPL 50 34 16
ZTBL 50 28 16 6 -
Total (f) 525 - 324 158 43
fXi 1296 474 86 1856
Variable Mean = Σ fXi 525 = 1856525 = 354
140
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for Reduction in daily duty hours or
resistance offered for increase of time duration of workers is 354 which is bigger
than 3 (Indifferent Level) showing that unions as a whole have exerted effective
efforts for timings of worker
Only one organization KTM has 48 working hours per week at the rate of 8
hours per day Two organizations ARL and PCP have 40 working hours per week and
other seven organizations have weekly working hours less than 40 (Appendix C-2)
This time reduction of time less than 40 hours is really efforts of unions to comfort the
workers and causing increase of their motivation Out of 525 respondents 324 were
satisfied 158 indifferent and only 43 were unsatisfied (see Table 24 and Figure-5)
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers except management of
CDA PTV and SNGPL (see tables in appendices F-1 to F-10 column management
responses)
So the hypothesis 4 that unions did not exert efforts for time decrease or
offered resistance against time increase of workers is rejected and alternative view is
established
Figure-5 - Satisfaction Level of Workers on Time Reduction
Very Satisfied 0
0
Satisfied 324 62
Indifferent 158 30
un-Satisfied 43 8
Very SatisfiedSatisfiedIndifferentun-Satisfied
141
Hypothesis 5 (H5) Unions did not exert efforts for health facilities Table 25 Mean Calculations - Health Facilities (Hfac)
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 20 6 4
CDA 70 40 14 16
IESCO 70 26 24 20 -
KTM 35 6 25 4 -
OGDCL 50 17 28 5 - -
PCP 50 40 5 5
PTCL 70 44 16 10 -
PTV 50 37 5 8
SNGPL 50 4 34 10 2
ZTBL 50 1 38 4 7 -
Total (f) 525 28 332 93 72 -
fXi 140 1328 279 144 1891
Variable Mean = Σ fXi 525 = 1891525 = 360
142
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for Health Facilities of workers is 360
which is bigger than 3 (Indifferent Level) showing that unions as a whole have
exerted effective efforts for Health Facilities of worker
All the organizations are providing medical treatment facilities to their workers
(Appendix C-2) and out of 525 responding workers 28 were very satisfied 332
workers were satisfied 93 indifferent and 72 were un-satisfied (Table-25 amp figure-6 )
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers tables (see tables in
appendices F-1 to F-10 column management responses)
So the hypothesis 5 that unions did not exert efforts for health facilities is
rejected and alternative view is established
Figure-6 - Satisfaction Level of Workers on Health Facilities
Very Satisfied 28
5
Satisfied 332 63
Indifferent 93 18
un-Satisfied 72 14
Very SatisfiedSatisfiedIndifferentun-Satisfied
143
Hypothesis 6 (H6) Unions did not exert efforts for workersrsquo children education facility
Table 26 Mean calculations- Children Education (Ced)
Variable Mean = Σ fXi 525 = 1583525 = 302
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 2 14 10 4
CDA 70 13 48 9
IESCO 70 9 44 17 -
KTM 35 4 20 11 -
OGDCL 50 - 8 36 06 -
PCP 50 11 16 23
PTCL 70 11 32 27 -
PTV 50 13 20 17
SNGPL 50 6 22 22
ZTBL 50 22 22 6 -
Total (f) 525 6 127 261 131
fXi 30 508 783 262 1583
144
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for Children Education Facilities for
workers is 302 which is very slightly bigger than 3 (Indifferent Level) showing that
unions as a whole have exerted efforts for Education Facilities for children of workers
The satisfied workers 133 (6+127) and unsatisfied workers 131 are almost
equal with 261 indifferent workers on this facility which shows that unions need to put
more efforts for this facility (Table-26 amp Figure -7)
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers except the management of
PCP (see tables in appendices F-1 to F-10 column management responses)
So the hypothesis 6 that unions did not exert efforts for workersrsquo children
education facility is rejected and alternate view is established
Figure-7 - Satisfaction Level of Workers on Children Education Facilities
Very Satisfied 6
1Satisfied
127 24
Indifferent261 50
Un-Satisfied 131 25 Very Satisfied
SatisfiedIndifferentun-Satisfied
145
Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working
Table 27 Mean Calculations - Over Time Payment (Ot)
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 20 10 - -
CDA 70 30 32 8
IESCO 70 36 20 14 -
KTM 35 - 12 15 8
OGDCL 50 - 22 16 12 -
PCP 50 37 9 4
PTCL 70 10 38 22 -
PTV 50 41 6 3
SNGPL 50 3 21 23 3
ZTBL 50 16 12 22 -
Total (f) 525 3 245 181 96
fXi 15 980 543 192 1730
Variable Mean = = Σ fXi 525 1730525 = 330
146
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for Over Time Payment of workers is 330
which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted
efforts for Over Time Payment to worker
On unionsrsquo efforts 3 workers were very satisfied 245 were satisfied and 96
workers un-satisfied while 181 workers were indifferent (Table-27 amp figure 8)
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers (see tables in appendices F-
1 to F-10 column management responses)
So the hypothesis 8 that unions did not exert efforts for overtime payment for
over working is rejected and alternate view is established
Figure-8 - Satisfaction Level of Workers on Over Time Payment
Very Satisfied 3
1Satisfied 245 47
Indifferent 181 34
un-Satisfied 96 18
Very SatisfiedSatisfiedIndifferentun-Satisfied
147
Hypothesis 8 (H8) Unions did not exert efforts for better working conditions Table 28 Mean Calculations - working conditions (Wcon) Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 4 22 4 - -
CDA 70 30 28 12
IESCO 70 50 10 10 -
KTM 35 - 30 5 -
OGDCL 50 4 33 10 3 -
PCP 50 39 6 5
PTCL 70 36 24 10 -
PTV 50 39 11
SNGPL 50 3 40 4 3
ZTBL 50 32 14 4 - -
Total (f) 525 43 333 106 43
fXi 215 1332 318 86 1951
Variable Mean = Σ fXi 525 = 1951525 = 372
148
Analysis
The overall mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for Working Conditions of workers is 372
which is bigger than 3 (Indifferent Level) showing unions as a whole have exerted
efforts for arrangements of better working conditions for workers
On unionsrsquo efforts 43 workers were very satisfied 333 workers were satisfied
as compared to 43 un-satisfied workers while 106 were indifferent (Table-28 amp Figure
9) It means unions have really exerted efforts for working conditions
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers tables (see tables in
appendices F-1 to F-10 column management responses)
So the hypothesis 8 that the unions did not exert efforts for better working
conditions is rejected and alternate view is established
Figure-9 - Satisfaction Level of Workers on Working Conditions
Very Satisfied 43
8
Satisfied 333 64
Indifferent 106 20
un-Satisfied 43 8
Very SatisfiedSatisfiedIndifferentun-Satisfied
149
Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease
Table 29 Mean Calculations- leaves facility (Linc) Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 - 24 6 - -
CDA 70 35 33 2
IESCO 70 - 40 25 5 -
KTM 35 - 10 16 9 -
OGDCL 50 40 10 - -
PCP 50 38 7 5
PTCL 70 36 24 10
PTV 50 38 9 3
SNGPL 50 32 18 -
ZTBL 50 28 14 8 -
Total (f) 525 0 321 162 42
fXi 1284 486 84 1854
Variable Mean = Σ fXi 525 = 1854525 = 353
150
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for increasing annual leaves of workers or
offering resistance against decrease of leaves is 353 which is bigger than 3
(Indifferent Level) showing that unions as a whole have exerted effective efforts for
increase of Leaves of worker
Annual paid leaves for seven organizations are 68 and for IESCO are 73 where
as only for two organizations are 40 This is a reasonable time for rest and enjoyment
On unionsrsquo efforts 321 workers were satisfied as compared to 42 un-satisfied workers
which shows that unions have really exerted efforts for exacting this facility (Table-
29 amp Figure 10)
Management of all the organizations also confirmed that unions have depicted
their intention to resist the decrease of leaves (see tables in appendices F-1 to F-10
column management responses)
So the hypothesis 9 that unions did not exert efforts for leaves increase or
resist against leaves decrease is rejected and alternate view is established
Figure-10 - Satisfaction Level of Workers on Leave Facilities
Very Satisfied 0
0
Satisfied 321 61
Indifferent 162 31
un-Satisfied 42 8
Very SatisfiedSatisfiedIndifferentun-Satisfied
151
Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension
Table 30 Mean Calculations- Post Retirement Benefits amp Pension Facility (Prb)
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 - 2 14 14 78
CDA 70 14 50 6 0 - 288
IESCO 70 - 4 46 20 - 194
KTM 35 - 17 10 8 - 114
OGDCL 50 - 27 13 10 - 167
PCP 50 - 5 30 15 - 140
PTCL 70 4 44 22 192
PTV 50 21 24 5 166
SNGPL 50 - 37 8 5 - 182
ZTBL 50 2 18 30 - 122
Total = (f) 525 14 169 213 129
fXi 70 676 639 258 0 1643
Variable Mean = Σ fXi 525 =1643 525 = 313
152
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for Post Retirement Benefits (Like pension)
of workers is 313 which is greater than 3 (Indifferent Level) showing that unions as a
whole have exerted some efforts for post retirement benefits of worker
The satisfied workers are 183 (14 + 169) but unsatisfied workers 129 are also
not less while 213 workers are indifferent which shows that unions need to put more
efforts for this facility (Table-30 amp Figure-11)
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers (see tables in appendices F-
1 to F-10 column management responses)
However the hypothesis 10 that the unions did not exert efforts for
postretirement benefits like pension of workers is rejected and alternate view is
established
Figure-11 - Satisfaction Level of Workers on Post Retirement Benefits
Very Satisfied 14
3
Satisfied 169 32
Indifferent 213 40
un-Satisfied 129 25 Very Satisfied
SatisfiedIndifferentun-Satisfied
153
Hypothesis 11 (H11) Unions did not exert efforts for arranging recreation
facilities
Table 31 Mean Calculations -Recreation facilities (Rfac) Satisfaction Level No VS S IND US VUS Σ fXi
Value (Xi) 5 4 3 2 1
Organization
ARL 30 2 10 8 10
CDA 70 58 12
IESCO 70 47 23 -
KTM 35 - 16 10 9
OGDCL 50 18 14 14 04 -
PCP 50 - - 30 20 -
PTCL 70 40 30
PTV 50 10 34 6
SNGPL 50 16 30 2 2 -
ZTBL 50 28 22 -
Total (f) 525 36 80 271 138 -
fXi 180 320 813 276 1589
Variable Mean = = Σ fXi 525 1589525 = 303
154
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for Recreational Facilities of workers is
303Which is slightly greater than 3 (Indifferent Level) showing that unions as a
whole have some exerted efforts for Health Facilities of worker
The satisfied workers are 116 (36 + 80 ) but unsatisfied workers 138 while
271 workers are indifferent which shows that unions need to put more efforts for this
facility (Table-31 amp Figure 12) The mean being more than 3 is due to the fact that 36
workers were very satisfied which put more weight in satisfaction side
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers except in CDA KTM
PCP and PTCL (see tables in appendices F-1 to F-10 column management responses)
However the hypothesis 11 that the unions did not exert efforts for arranging
recreation facilities is rejected and alternate view is established
Figure-12 - Satisfaction Level of Workers on Recreational Facilities
Very Satisfied 36
7
Satisfied 80 15
Indifferent 271 52
un-Satisfied 138 26 Very Satisfied
SatisfiedIndifferentun-Satisfied
155
Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers
Table 32 Mean Calculations - training opportunities (Top) Satisfaction Level No VS S IND US VUS Σ fXi Values (Xi) 5 4 3 2 1 Organization ARL 30 18 8 4 CDA 70 10 20 40 IESCO 70 22 34 14 - KTM 35 22 13 OGDCL 50 4 19 20 7 - PCP 50 - - 24 26 - PTCL 70 16 40 14 PTV 50 16 24 10 SNGPL 50 - 10 34 6 - ZTBL 50 26 20 4 - Total (f) 525 4 137 246 138 fXi 20 548 738 276 1582
Variable Mean = Σ fXi 525 = 1582525 = 301
156
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organization for Training Opportunities of workers is 301
which is very marginally bigger than 3 (Indifferent Level) showing that unions as a
whole have exerted some efforts for training opportunities of worker but need to exert
more efforts
The satisfied workers 141 (4 + 137) and unsatisfied workers 138 are almost
equal with 246 indifferent workers showing that unions need to put more efforts for
this facility (Table-32 amp figure 13) The mean being more than 3 is due to the fact that
246 workers were indifferent which put more weight in satisfaction side
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers except KTM (see tables in
appendices F-1 to F-10 column management responses)
However the as hypothesis 12 that unions did not exert efforts for arranging
training opportunities for workers is rejected and alternate view is established
Figure-13 - Satisfaction Level of Workers on Training Opportunities
Very Satisfied 4
1 Satisfied 137 26
Indifferent 246 47
un-Satisfied 138 26 Very Satisfied
SatisfiedIndifferentun-Satisfied
157
Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers
wagessalary difference
Table 33 Mean calculations- decreasing workersofficers wagesalary gap (Wdf) Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 6 8 12 4
CDA 70 28 28 14
IESCO 70 - 2 37 31 -
KTM 35 2 7 26
OGDCL 50 5 26 14 5 -
PCP 50 5 37 8
PTCL 70 32 38
PTV 50 23 14 13
SNGPL 50 - 17 28 5
ZTBL 50 2 20 22 6 -
Total (f) 525 13 131 231 150
fXi 65 524 693 300 1582
Variable Mean = Σ fXi 525 =1582 525 = 301
158
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organization for decreasing workers officers wage salary
gap is 301 which is very marginally greater than 3 (Indifferent Level) showing that
unions as a whole have exerted some efforts for decreasing gap of remunerations
between officers and worker
The satisfied workers 144 (13 + 131) are slightly less than 150 unsatisfied
workers with 231 workers indifferent (Table-33 amp Figure 14) The mean touching to
indifferent level is due to the fact that 13 responses are of very satisfied This demands
that unions need to put more efforts for exacting this facility
Management of all the organizations also confirmed that unions have been
negotiating with them for exacting this benefit for workers except the management of
IESCO KTM and PCP (see tables in appendices F-1 to F-10 column management
responses)
However the hypothesis 13 that unions did not exert efforts for decreasing
workersofficers wagessalary difference is rejected and alternate view is established
Figure-14 - Satisfaction Level of Workers on Decreasin Wage Difference
Very Satisfied 13
2
Satisfied 131 25
Indifferent 231 44
un-Satisfied 150 29
Very SatisfiedSatisfiedIndifferentun-Satisfied
159
Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights
Table 34 Mean calculations - informing about rights (Ir) Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
(ARL) 30 16 12 2
(CDA) 70 54 10 6
(IESCO) 70 49 10 11
KTM 35 20 12 3
(OGDCL) 50 34 12 4
(PCP) 50 20 21 9
(PTCL) 70 18 34 18
PTV 50 30 10 10
(SNGPL) 50 25 14 11
(ZTBL) 50 4 34 7 5
Total (f) 525 4 300 142 79
fXi 20 1200 426 158 1804
Variable Mean = Σ fXi 525 =1804525 = 344
160
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations giving awareness to workers for their rights
is 344 which is bigger than 3 (Indifferent Level) showing that unions as a whole have
exerted efforts for informing worker about their rights as worker
On unionsrsquo efforts 304 (4 + 300) workers were satisfied as compared to 79 un-
satisfied workers which shows that unions have really exerted efforts for exacting this
facility (Table-34 amp Figure 15)
So the hypothesis 14 that unions did not exert efforts for informing workers
about their rights is rejected and alternate view is established
Figure-15 - Satisfaction Level of Workers on Informing About Rights
Very Satisfied 4
1
Satisfied 300 57
Indifferent 142 27
un-Satisfied 79 15
Very SatisfiedSatisfiedIndifferentun-Satisfied
161
Hypothesis 15 (H15) Unions did not exert efforts for workersrsquo education Table 35 Mean calculations - workersrsquo education (We)
Satisfaction Level No VS S IND US VUS Σ fXi
Values (Xi) 5 4 3 2 1
Organization
ARL 30 12 14 4
CDA 70 28 34 8
IESCO 70 - 36 24 10 -
KTM 35 12 17 6
OGDCL 50 - 21 19 10 -
PCP 50 - 30 20 -
PTCL 70 19 39 12
PTV 50 33 8 9
SNGPL 50 15 25 10
ZTBL 50 28 18 4
Total (f) 525 234 218 73
fXi 936 654 146 1736
Variable Mean = Σ fXi 525 = 1736525 = 331
162
Analysis
The variable mean of satisfaction level of responses of workers for efforts
exerted by unions of all the organizations for workersrsquo education is 331 which is
bigger than 3 (Indifferent Level) showing that unions as a whole have exerted efforts
for workersrsquo education facilities
On unionsrsquo efforts 234 workers were satisfied as compared to 73 un-satisfied
workers with 218 indifferent responses which shows that unions have really exerted
efforts for exacting this facility (Table-35 amp Figure-16) though there is need of more
efforts
Management of all the organizations also confirmed that unions have been
requesting for making arrangements for workers education (see tables in appendices F-
1 to F-10 column management responses)
So the hypothesis 15 that unions did not exert efforts for workers education
facilities is rejected and alternate view is established
Figure-16 - Satisfaction Level of Workers on Workers Education
Very Satisfied 0
0Satisfied 234 44
Indifferent 218 42
Un-Satisfied 73 14
Very SatisfiedSatisfiedIndifferentun-Satisfied
163
5311 Combined Mean of All Workers Variables = (Sw)
By using means of the individual variables calculated in tables 21 to 41
Combine Mean has been calculated by arranging this data in Table 42 and using the
Equation
Table 36 Summary of means of workers variables and calculation of combined mean
Variables (to measurement of unionrsquos efforts for workers)
Means of Satisfaction Level of Workers ( i)
Wris 340
Fbft 333
Jsec 379
Td 354
Linc 353
Ot 330
Wcon 372
Hfac 360
Ced 302
Prb 313
Rfac 303
Top 301
We 331
Wdf 301
Ir 344
Total = Σ i 5016
Combined Mean (Sw) = (Workers Satisfaction) 50615 = 334
164
Data from Tables 21 to 35
By putting values of the total second column in the equation
Combine Mean = Σ i N
SW = (Wris + Fbft +Jsec + Td + Hfac + Ced + Ot +Wcon +
+ Linc + Prb + Rfac + Top + Wdf + Ir + We)15
Sw = 501615 = 334 (approximately)
As the Combine Mean is 334 which is greater than 3 the lsquoindifferent levelrsquo so
it is accepted that workers are satisfied with the unionsrsquo efforts and unions are
successful in securing benefits for workers
165
Figure 17a Diagrammatic Presentation of Means of Workers Variables (Bar
Diagram)
(Height of bars indicates mean of variable)
0
1
2
3
4
5
Wris Fbft Jse
c TdLinc Ot
Wco
nHfac Ced Prb
Rfac Top We
Wdf Ir
(Sw)
Figure 17b Diagrammatic Presentation of Means of Workers Variables (Line Graph)
012345
Wris Fbft Jse
c TdLinc Ot
Wco
nHfac Ced Prb
Rfac Top We
Wdf Ir
(Sw)
166
532 CHI SQUARE TEST APLICATION
For testing the correctness of Hypotheses H1 to H15 Chi square has also been
applied in tables 37 to 51 on the data of respective variable Expected values (fe) have
been subtracted from (fo) observed values and squared and then divided by expected
values added to each other to obtain calculated value of chi square Then calculated
value is compared with table value If it is greater than table value then it is significant
so hypothesis of respective variable is to be rejected and opposite view is to be
established Observed values for chi square application have been fetched from row
stubbed lsquoTotal (f)rsquo in tables 21 to 35
167
Hypothesis 1 (H1) Unions did not exert efforts for wage rise of workers
Table 37 Chi square calculations Wage rise (Wris)
Satisfaction
Level
VS
S
IND
US
VUS
Total Chi Sq-( χ2)
(fo) 15 284 123 103 - 525
(fe) 13125 13125 13125 13125 - 525
(fo-fe)2 131514 2333256 6806 79806 -
χ2cal =
(fo-fe)2 fe 10296 17777 055 608 28686 28686
(Figures used in this table fetched from row stubbed Total (f) in table 21)
Significant df = 3 χ2tab at 005 = 782
The calculated value of Chi Square test 28686 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis
1 that unions did not exert efforts for wage rise of workers is rejected and the
alternate view that unions have exerted efforts for wage rise of workers is established
168
Hypothesis 2 (H2) Unions did not exert efforts for fringe benefits like bonus of workers Table 38 Chi square calculations - Bonus (financial benefits) (f-bft)
Satisfaction Level
VS S IND US VUS Total Chi Sq- χ2
(fo) 15 272 111 127 525
(fe) 13125 13125 13125 13125 525
(fo-fe)2 1339781 1981056 41006 18062
χ2cal =
(fo-fe)2 fe 10296 15093 312 013 25714 25714
(Figures used in this table fetched from row stubbed Total in table 22)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi Square test 25714 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis2 is
rejected and the alternate view that unions did exert efforts for exacting fringe
benefits like bonuses for the workers is established
169
Hypothesis 3(H3) Unions did not exert efforts for Job Security of workers
Table 39 Chi square calculations ndash Job security (Jsec)
Satisfaction
Level
VS S IND US VUS Total Chi Sq- χ2
(fo) 59 338 87 41 525
(fe) 13125 13125 13125 13125 525
(fo-fe)2 522006 4274556 195806 814506
χ2cal =
(fo-e)2 fe 3977 32630 1491 6214 44312 44312
(Figures used in this table fetched from row stubbed Total in table 23)
Significant df = 3 χ2tab at 005 = 782
The calculated value of Chi Square test 44312 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the
Hypothesis3 that unions did not exert efforts for job security of the workers is reject
and the alternate view that unions did exert efforts for job security of the workers is
established
170
Hypothesis 4 Unions did not exert efforts for Time decrease or offered resistance against time increase of workers
Table 40 Chi square calculation - Time reduction (Td) Satisfaction
Level
VS S IND US VUS Total Chi Sq- χ2
(fo) - 324 158 43 - 525
(fe) 175 175 175 525
(fo-fe)2 22201 289 17424
χ2cal =
(fo-fe)2 fe
12686 165 9956 22807 22807
(Figures used in this table fetched from row stubbed Total in table 24)
Significant df = 2 χ2tab at 005 = 599
The calculated value of Chi Square test 22807 is greater than table value of
Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis
4 is rejected and the alternate view that unions did exert efforts for decreasing
working hours of the workers is established
171
Hypothesis 5 (H5) Unions did not exert efforts for health facilities
Table 41 Chi square calculations - Health facilities (Hfac)
Satisfaction
Level
VS S IND US VUS Total Chi Sq- χ2
(fo) 28 332 93 72 - 525
(fe) 13125 13125 13125 13125 525
(fo-fe)2 1066056 4030056 146306 351056
χ2cal =
(fo-fe)2 fe 8122 30705 1114 2674 42615 42615
(Figures used in this table fetched from row stubbed Total in table 25)
Significant df = 3 χ2tab at 005 = 782
The calculated value of Chi Square test 42615 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis
5 that unions did not exert efforts for exacting health facilities for the workers is
rejected and the alternate view is established
172
Hypothesis 6 (H) Unions did not exert efforts for workersrsquo children education facility
Table 42 Chi square calculations - Children education (Ced)
Satisfaction
Level
VS S IND US VUS Total Chi Sq- χ2
(fo) 6 127 261 131 525
(fe) 13125 13125 13125 13125 525
(Fo-fe)2 1568756 18062 1683506 0625
χ2cal =
(fo-fe)2 fe 11952 137 12826 0004 24791 24791
(Figures used in this table fetched from row stubbed Total in table 26)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi Square test 24791 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so Hypothesis 6 is
rejected and the alternate view that unions did exert efforts for exacting children
education facilities for the workers is established
173
Hypothesis 7 (H7) Unions did not exert efforts for Overtime payment for over working
Table 43 Chi square calculations - Over time payment (Ot) Satisfaction
Level
VS S IND US VUS Total Chi Sq- χ2
(fo) 3 245 181 96 525
(fe) 13125 13125 13125 13125 525
(Fo-fe)2 1644806 1293906 247506 124256
χ2cal =
(fo-fe)2 fe 12531 9858 1885 946 2522 2522
(Figures used in this table fetched from row stubbed Total in table 27)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi Square test 2522 is greater than table value of Chi
square 782 at 005 significance level and 3 degree of freedom so the Hypothesis 7
that unions did not exert efforts for overtime payment for over working is rejected and
alternate view is established
174
Hypothesis 8 (H8) Unions did not exert efforts for better working conditions
Table 44 Chi square calculations - working conditions (Wcon)
Satisfaction
Level VS S IND US VUS Total Chi Sq- χ2
(fo) 43 333 106 43 525
(fe) 13125 13125 13125 13125 525
(Fo-fe)2 778806 4070306 63756 778806
χ2cal =
(fo-fe)2 fe 5933 31011 485 5933 43362 43362
(Figures used in this table fetched from row stubbed Total in table 28)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi square test 43362 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis
8 that unions did not exert efforts for better working conditions is rejected and
alternate view is established
175
Hypothesis 9 (H9) Unions did not exert efforts for Leaves increase or resist against leaves decrease
Table 45 Chi square calculations - Leaves facility (Linc) Satisfaction
Level VS S IND US VUS Total Chi Sq-χ2
(fo) 321 162 42 525
(fe) 175 175 175 525
(Fo-fe)2 21316 169 17689
χ2cal =
(fo-fe)2 fe
12180 096 18108 22384 22384
(Figures used in this table fetched from row stubbed Total in table 32)
Significant df = 2 χ2 tab at 005 = 599
The calculated value of Chi Square test 22384 is greater than table value of
Chi square 599 at 005 significance level and 2 degree of freedom so the Hypothesis
9 that unions did not exert efforts for leaves increase or resist against leaves decrease
is rejected and alternate view is established
176
Hypothesis 10 (H10) Unions did not exert efforts for postretirement benefits like pension
Table 46 Chi square calculations - post retirement benefits facility (Prb)
Satisfaction
Level VS S IND US VUS Total Chi Sq- χ2
(fo) 14 169 213 129 525
(fe) 13125 13125 13125 13125 525
(Fo-fe)2 1374756 142506 668306 506
χ2cal =
(fo-fe)2 fe 10474 1085 5091 003 16653 16653
(Figures used in this table fetched from row stubbed Total in table 33)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi Square test 16653 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the
Hypothesis10 that the unions did not exert efforts for postretirement benefits like
pension of workers is rejected and alternate view is established
177
Hypothesis 11(H11) Unions did not exert efforts for arranging recreation facilities Table 47 Chi square calculations - Recreation facilities (Rfac) Satisfaction
Level VS S IND US VUS TOTAL Chi Sq-χ2
(fo) 36 80 271 138 - 525
(fe) 13125 13125 13125 13125 525
(fo-fe)2 907256 262656 1953006 4556
χ2cal =
(fo-fe)2 fe 6912 2001 1488 0347 23827 8663
(Figures used in this table fetched from row stubbed Total in table 34)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi Square test 23827 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis
11 that the unions did not exert efforts for arranging recreation facilities is rejected
and alternate view is established
178
Hypothesis 12 (H12) Unions did not exert efforts for arranging training opportunities for workers
Table 48 Chi square calculations - Training facilities (Top) Satisfaction
Level
VS
S
IND
US
VUS
Total Chi Sq-
χ2
fo 4 137 246 138 525
fe 13125 13125 13125 13125 525
(fo-fe)2 161925 33062 1316756 4556
χ2cal =
(fo-fe)2 fe 12337 251 10032 347 22428 22428
(Figures used in this table fetched from row stubbed Total in table 35)
Significant df = 3 χ2tab at 005 = 782
The calculated value of Chi Square test 22428 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis
12 that unions did not exert efforts for arranging training opportunities for workers is
rejected and alternate view is established
179
Hypothesis 13 (H13) Unions did not exert efforts for decreasing workersofficers wagessalary difference Table 49 Chi square calculationsndashDecreasing workers officers wage salary gap (Wdf)
Satisfaction
Level
VS
S
IND
US
VUS
TOTAL Chi Sq- χ2
(fo) 13 131 231 150 525
(fe) 13125 13125 13125 13125 525
(Fo-fe)2 1398306 0625 995006 35156
χ2cal =
(fo-fe)2 fe 10653 0004 7581 267 18501 18501
(Figures used in this table fetched from row stubbed Total in table 36)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi Square test 18501 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis
13 that unions did not exert efforts for decreasing workersofficers wagessalary
difference is rejected and alternate view is established
180
Hypothesis 14 (H14) Unions did not exert efforts for informing workers about their rights
Table 50 Chi square calculations - Informing about rights (Ir)
Satisfaction
Level
VS S IND US VUS TOTAL Chi Sq- χ2
(fo) 4 300 142 79 525
(fe) 13125 13125 13125 13125 525
(fo-fe)2 1619256 2847656 11556 273006
χ2cal =
(fo-fe)2 fe 12337 21696 088 2080 36201 36201
(Figures used in this table fetched from row stubbed Total in table 37)
Significant df = 3 χ2 tab at 005 = 782
The calculated value of Chi Square test 36201 is greater than table value of
Chi square 782 at 005 significance level and 3 degree of freedom so the Hypothesis
14 that unions did not exert efforts for informing workers about their rights is rejected
and alternate view is established
181
Hypothesis 15 (H15) Unions did not exert efforts for arranging education facilities for workers
Table 51 Chi square calculations - workersrsquo education (We)
Satisfaction
Level
VS
S
IND
US
VUS
TOTAL Chi Sq- χ2
(fo) 234 218 73 525
(fe) 175 175 175 525
(Fo-fe)2 3481 1849 10404
χ2cal =
(fo-fe)2 fe
1989 1056 5945 899 899
(Figures used in this table fetched from row stubbed Total in table 38)
Significant df = 2 χ2 tab at 005 = 599
The calculated value of Chi Square test 8989 is greater than table value of Chi
square 599 at 005 significance level and 2 degree of freedom so the Hypothesis 15
that unions did not exert efforts for arranging education facilities for workers is
rejected and alternate view that the unions exerted efforts for arranging education
facilities for workers is established
182
533 VARIABLES MEASURING UNIONSrsquo EFFORTS FOR EMPLOYERSrsquo BENEFITS
Efforts of unions for benefits and interest of employers have been measured by
Two variables These variables are Productivity or Efficiency increase (Pin)
Enhancement of workplace harmony (Wph) Three tables (table 52 to 54) have been
constructed In table 52 and 53 Means of individual variables are calculated and in
third table combine mean is calculated
First column contains the name of organizations column two contains
response of employersrsquo representative on the variable in the form of satisfaction level
and column three contains the value of the response In the last row all these values of
third columns are added and divided by number of respondents ie 10 to calculate the
variable mean If mean is equal to 3 then aggregately all the respondents are
indifferent and if variables mean is greater than indifferent level ie 3 then employers
are satisfied on unionsrsquo efforts and unions are successful to the extent of this variable
If mean of variable is less then 3 then unions are failed to the extent of this variable
Combined mean of two variables has been calculated in third table 54
Combine mean more than 3 shows satisfaction of management with unionsrsquo
performance and value of combine mean less than 3 indicates that unionsrsquo have not
exerted efforts for employers benefits so unions are not beneficial and value of
combine mean equal to 3 shows that employers is indifferent and unionsrsquo presence is
neither beneficial nor harmful
183
Hypothesis 16 (H16) Unions exerted no efforts for motivating workers to increase productivityefficiency
Table 52 Calculation of mean of management responses for unionsrsquo
efforts for productivity efficiency increase) (Pin)
Organization Name Management Responses
Value of Responses (Xi)
ARL IND 3
CDA IND 3
IESCO S 4
KTM S 4
OGDCL IND 3
PCP IND 3
PTCL IND 3
PTV IND 3
SNGPL IND 3
ZTBL S 4
Total 33
Variable Mean 3210 = 33
Variable Mean = Σ Xi N = 3210 = 33
184
Analysis
The value of variable mean of responses of management on unionsrsquo efforts for
exhorting workers for increase of productivity or efficiency (by working in better way
with minimum loss and of good quality in minimum possible time) is 33 which is
slightly more than 3 (indifferent level) indicating that unions are exerting slight
efforts
Therefore the hypothesis 16 that unions exerted no efforts for motivating
workers to increase productivity is rejected and alternative view unions exerted efforts
for motivating workers to increase productivity is established
On viewing individually employers of only three organizations are satisfied
and of seven organizations are indifferent So these unions need to put more efforts in
motivating workers for increasing productivity efficiency
Figure-18 - Satisfaction Level of Employers on ProductivityEfficienc Increase
Indifferent 7 70
Satisfied 330
un-Satisfied 0 0
Very Satisfied 0
0Very SatisfiedSatisfiedIndifferentun-Satisfied
185
Hypothesis 17 Unions exerted no efforts for workplace harmony Table 53 Calculation of mean of management responses for workplace harmony
(Wph) Organization Name
Management Response
Values of Responses (Xi)
ARL S 4
CDA S 4
IESCO FS 5
KTM S 4
OGDCL S 4
PCP S 4
PTCL IND 3
PTV S 4
SNGPL S 4
ZTBL S 4
Total 40
Variable Mean = Σ Xi N = 4010 = 4
186
Analysis
The value of variable mean of responses of management on unionsrsquo efforts for
exhorting workers for creating harmony at workplace is 4 which is more than 3
(indifferent level) Therefore the hypothesis 17 that unions exerted no efforts for
workplace peace and harmony is rejected and alternative view unions exerted efforts
for workplace peace and harmony is established
Viewing individually employer of one organization ie IESCO is fully
satisfied and of eight organizations are satisfied Management of only one
organization ie PTCL is indifferent So union of PTCL needs to put more efforts in
creating peace and harmony at workplace Otherwise over all performance of unions is
satisfactory
Figure-19 - Satisfaction Level of Employers on Work Place Harmony
Satisfied 8 80
Indifferent 1 10
un-Satisfied 0 0
Very Satisfied 1
10
Very SatisfiedSatisfiedIndifferentun-Satisfied
187
Table 54 Calculation of Combined Mean of Management Responses (Se)
Variables (for measurement of
unionsrsquo efforts for Employers)
Means of Satisfaction Level of
Employer ( i)
Organization
Pin 33
Wph 4
Total of Means 73
(Data from calculations of tables 52 amp 53
By putting the values of means of columns in the equation
Combine Mean = Σ i N = Se = (Pin + Wph)2
Se = (33 + 40)2 = 732
Se = 732 = 365
In this analysis PTCL management has lowest level of satisfaction on unionsrsquo
role because union recently called an unsuccessful strike lasting for 13 days against
the government of Pakistanrsquos decision of privatization of the company Performance
of unions of other organizations is satisfied with mean greater than indifferent level
ie 3
As the combined mean of all the variable measuring unions efforts for
developing human resources for the benefit of employer is 365 that is greater than 3
the indifferent level so it is established that unions are working for interest of
employers and they are satisfied with them and unions are successful in satisfying
employers
188
Figure 20a Diagrammatic Presentation of Means of Employers Variables
(Bar Diagram)
012345
Pin Wph Se
(Height of bars indicates mean of variable)
Figure20b Diagrammatic Presentation of Means of Employers Variables
(Line Graph)
0
1
2
3
4
5
Pin Wph Se
189
No Success
Partial Success
Partial Success
Success S e = 365 Sw = 334
Figure 4 Diagrammatic Presentation of success of unions (Success Matrix)
5 1 5 2 5 3 5 4 Sw = 5 Se = 5
Sw = 5 Se = 1
Sw = 4 Se = 1
Sw = 3 Se = 1 Tolerable
Sw = 2 Se = 1
Sw = 1 Se = 1
11 12 13 14 Sw = 1 Se = 5 In the success matrix of diagram 4 satisfaction of workers is represented vertically
and satisfaction of employers is represented horizontally The dark grey portion of the
matrix shows no success or failure zone In this cage both Sw and Se are less than 3
(these are 11 21 31 22 32 or 12 13 ) Two light grey portions are areas of partial
success The upper light grey cage where Sw is greater than 3 showing workers are
satisfied but Se is less than 3 showing employers are unsatisfied While the Lower
light grey portion where Se is greater than 3 showing employers are satisfied but Sw is
less than 3 showing workers are unsatisfied also indicates partial success Joining
point of all four cages is tolerable point where both Sw and Se are 3 White cage
where both Sw and Se are more than 3 is success zone Values of both Sw (334) and
Se (365) are lying in success cage
190
54 COMPARISON OF UNIONIZED AND NON-UNIONIZED WORKERS
To assess the unions role in securing the benefits for workers comparison of
facilities availed by permanent workers and temporary workers working in the same
organization has been made It is to determine whether facilities availed by unions
members are really due to unionsrsquo efforts or just because of government blessings For
this comparison of facilities ie Wage rise Job Security Daily working hours
Working conditions Facilities for children education Health care or medical treatment
facilities Fringe benefits like bonus Other of financial benefits and Yearly paid leaves
for both categories of workers has been made in the tables 55 and 56 Table 55 is for
facilities availed by Temporary workers and table 56 is for facilities by permanent
workers
Table 55 Facilities of temporary workers (Not Union Members)
Org Name
Wris Jsec Weekly Hours
Wcon Child education
Health facilities
Fringebft Bonus
Misc-All
Yearly Leaves
ARL Little No 46 Right No No No No 32
CDA Little No 39 Right No Yes Yes Yes 48
IESCO Little No 375 Right No No No No 22
KTM Little No 48 Right No Yes No No 18
OGDCL Little No 385 Right No Yes Yes No 40
PCP - - - - - - - - -
PTCL Little No 41 Right No No No No 36
PTV Little No 365 Right No Yes Yes No 21
SNGPL Little No 39 Right No No No No No
ZTBL Little No 39 Right No No No No No
No temporary worker in the organization
191
Table 56 Facilities of Permanent Workers (Union Members)
Org Name
Wris
Jsec Weekly Hours
Wcon Child educati
on
Health facilities
Fringebft
Bonus
Misc-All
Yearly Leaves
ARL 18 Yes 40 Right Little Yes 4+ Yes 29-40
CDA 20 Yes 39 Right Little Yes 2 Yes 68
IESCO 15 Yes 375 Right Little Yes No Yes 73
KTM - Yes 48 Right Little Yes 1 Yes 40
OGDCL 20 Yes 385 Right Little Yes 2+ Yes 68
PCP 15 Yes 40 Right Little Yes No Yes 68
PTCL 35 Yes 41 Right Little Yes 1 Yes 68
PTV 25 Yes 365 Right Little Yes 1 Yes 68
SNGPL 15 Yes 39 Right Little Yes 2 Yes 68
ZTBL 15 Yes 39 Right Little Yes 2 Yes 68
Wage Rise Permanent unionized workers are availing increase in wages in every
charter of demand that is from 15 to 35 percent whereas temporary non unionized
workers receive very little wage rise Wage rise sometimes received by permanent
workers announced by government in annual budget is besides this Where as
temporary workers are also deprived from this blessing as mater of right
Job Security Temporary workers do not have job security while permanent workers
have full job security and when 750 staff members ZTBL were forcefully retired in
December 2005 their union went on strike which lasted for 33 days and management
had to reinstate them
Daily Working Hours Working hours are same for both categories of workers as
usually time is fixed by government and not demanded in charter of demand
192
Working Conditions Working conditions are same for both categories of workers
because both work in the same premises
Children Education Facilities Temporary workers have no employerrsquos provided
facility at all for children education whereas permanent workers are having it though
condition for them is not very satisfactory
Health Facilities All the permanent workers are enjoying health facilities usually
for self and for family but temporary workers in four organizations avail it for self
only
Financial Benefits Permanent workers of 8 organizations are enjoying bonus
facilities whereas temporary workers only in three organizations are enjoying it and
workers commented that this is also because of unions efforts
Miscellaneous Allowances Permanent workers of all the organizations are enjoying
any of small financial allowance or facility but temporary workers of only one
organization CDA are enjoying it
Yearly Paid Leaves Permanent workers of all the organizations are enjoying yearly
leaves facility much more than their temporary colleagues In majority of
organizations leaves facilities are 68 (20 casual leaves and 48 privileged earn leaves)
Privilege leaves are encashable at the time of retirement Temporary workers in some
organizations have no leave facility and if they go on leave it is treated as with out
pay As in SNGPL and ZTBL and situation in other organizations is also poor
It is revealed from comparison of both the tables that these facilities are
enjoyed by majority of unionized workers while non-unionized workers are not
availing these facilities if these facilities are enjoyed by non-unionized workers in any
organization beneficiaries admitted that this is because of unionsrsquo efforts
193
56 WORKERS RESPONSES FOR QUESTIONS ABOUT ESSENTIALITY INTER UNIONS RELATIONS AND UNIONS STATUS AS COMPARED TO PAST
These all points have been assessed by asking questions given in the table 57
and calculating percentage of the responses
Table 57 Essentiality inter union relations and unions status as compared to past
QNO18 Is union Essential in your organization
QNO 19 Are inter union relations good in your organization
QNO 20 Are unions of today weaker than unions in the past
Number of Number of
Responses
Number of
Responses
Number of
Responses
Org Name Res Unions in Org
Yes No Yes No Yes No
ARL 30 1 30 - - - 27 3
CDA 70 3 67 3 10 60 64 6
IESCO 70 2 66 4 10 60 70 -
KTM 35 2 32 3 3 32 33 2
OGDCL 50 2 50 - 5 45 45 5
PCP 50 1 48 2 - - 46 4
PTCL 70 4 61 9 2 68 69 1
PTV 50 2 50 - 16 34 26 24
SNGPL 50 2 50 - 10 40 41 9
ZTBL 50 1 50 - - - 6 44
Total 525 20 504 21 56 339 427 98
AGE 100 96 4 14 86 81 19
194
Ninety six percent workers are favoring the need of unions for workers in the
organizations and commented that unions provide job security and exert efforts for
financial benefits and also provide courage and lessens the fear of employers
However they stressed on the need of exertion of more efforts by unions for exacting
benefits for workers Few workers also groused for unionsrsquo partiality and inter union
rivalry Only 4 percent replied that unionsrsquo existence or non-existence makes no
benefit or harm to the workers
Eighty six percent workers replied that unions remain in conflict with each
other where unions in the organization are more than one This inter union rivalry
weakened their power and damaged their efforts for securing benefits for workers
Eighty one percent workers commented that unions of present day are
comparatively weaker than unions of a decade before and during interview
commented that unions in the democratic regime work well while in non-democratic
regime they become weak and less effective
CHAPTER 6
DISCUSSION CONCLUSION AND RECOMMENDATIONS
61 DISCUSSION
In the light of analysis of data made in chapter four the role of labor unions in
working for benefits of workers and employers is discussed here for arriving at a
conclusion This role is discussed in two ways ie organization-wise performance of
every union and variable-wise collective performance of all unions
611 Organization-Wise Performance of Unions
Analysis of unionsrsquo performance in context of efforts for securing benefits for
workers and protecting their interest has been made in tables 1 to 10 and of unionsrsquo
performance in context of efforts for protecting interest of employer has been made in
tables 11 to 20 Employerrsquos endorsement on unionsrsquo performance is revealed in
columns of employer responses by Y or N in tables in appendices F-1 to F-10
Performance of the unions is discussed below in the light of data analysis of
previous chapter
6111 ARL Union
In workers context the performance of union in securing benefits for workers is
satisfactory with satisfaction level organizational mean 356 more than 3 It means
majority of workers are satisfied and union is successful Employer has also confirmed
their efforts
In employerrsquos context the performance of union is satisfactory for establishing
work place peace and harmony but at indifferent level in productivity or performance
increase However as a whole performance of ARL union is satisfactory with 35 value
196
of mean of satisfaction level of all the variables of employer Majority of workers
confirmed exertion of unionrsquos efforts for employer Its means union is successful
6112 CDA Union
In workers context the performance of union is satisfactory with satisfaction
level mean 336 more than 3 It means majority of workers are satisfied and union is
successful Employer has also confirmed their efforts except for Time Decrease
Leave increase Recreation facilities and workers education facilities
In employerrsquos context the performance of union is satisfactory for establishing
work place harmony while at indifferent level in Productivity or performance increase
but as a whole performance of CDA union is satisfactory with 35 value of mean of
satisfaction level of all the employerrsquos variables Majority of workers confirmed
exertion of unionrsquos efforts for employer It means employer is satisfied and union is
successful
6113 IESCO Union
In workers context the performance of union is satisfactory with satisfaction
level mean 312 more than 3 As the score of union is hardly above the indifferent
level and union needs to put more efforts Employer has also confirmed their efforts
except for financial benefits workersrsquo officersrsquo wage difference leave increase and
Workersrsquo education
In employerrsquos context the performance of union is satisfactory for
improvement of Efficiency of workers and establishing work place harmony as a
whole performance of IESCO union is satisfactory with 450 value of mean of
satisfaction level of all the variables Majority of workers confirmed exertion of
unionrsquos efforts for employer It means employer is satisfied and union is successful
6114 KTM Union
In workers context the performance of union in securing benefits for workers is
satisfactory with satisfaction level weighted mean 322 more than 3 Employer has
197
also confirmed their efforts except for wage rise workers officers wage difference
time decrease leave increase overtime payment recreation facilities and training
opportunities Wages in textile sector are fixed by Wage Board where union union has
no representation so wages are not fixed properly Unionrsquos efforts in social services
health facilities were acknowledged by workers
In employerrsquos context the performance of union is satisfactory for every
variable with 400 value of mean of satisfaction level of all the variables Majority of
workers confirmed exertion of unionrsquos efforts for employer It means employer is
satisfied and union is successful
6115 OGDC Union
In workers context the performance of union is satisfactory with satisfaction
level weighted mean 361 more than 3 It means majority of workers are satisfied and
union is successful Employer has also confirmed their efforts
In employersrsquo context the performance of union is satisfactory as a whole with
350 value of mean of satisfaction level of all the variables Majority of workers
confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and
union is successful
6116 PCP Union
In workers context the performance of union is satisfactory with satisfaction
level mean 332 more than 3 It means majority of workers are satisfied and union is
successful Employer has also confirmed their efforts except for workers officers wage
difference education of workers children recreation facilities training opportunities
and workersrsquo education
In employerrsquos context the performance of union is satisfactory as a whole with
35 value of mean of satisfaction level of all the variables Majority of workers
confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and
union is successful
198
6117 PTCL Union
In workers context the performance of union in exerting efforts for securing
benefits for workers is hardly satisfactory with satisfaction level mean 302 which is
negligibly more than 3 It means satisfactory and unsatisfactory workers are almost
equal and union is marginally successful and needs improvement in efforts Employer
has confirmed their efforts except for children education post retirement benefits and
recreation facilities
In employerrsquos context the performance of union is 3 only equivalent to
indifference level as value of weighted mean of satisfaction level of all the variables
A marginal majority of workers confirmed exertion of unionrsquos efforts for employer It
means employer is indifference with unionrsquos performance and PTCL union needs
much improvement in this area
6118 PTV Union
In workers context the performance of union is satisfactory with satisfaction
level mean 350 more than 3 It means majority of workers are satisfied and union is
successful Employer has also confirmed their efforts except for recreation facilities
In employerrsquos context the performance of union is satisfactory as a whole with
350 value of weighted mean of satisfaction level of all the variables Majority of
workers confirmed exertion of unionrsquos efforts for employer It means employer is
satisfied and union is successful
6119 SNGPL Union
In workers context the performance of union for securing benefits for workers
is satisfactory with satisfaction level mean 354 more than 3 It means majority of
workers are satisfied and union is successful Employer has also confirmed their
efforts except for time decrease and leaves increase
In employerrsquos context the performance of union is satisfactory as a whole with
35 value of mean of satisfaction level of all the variables Majority of workers
199
confirmed exertion of unionrsquos efforts for employer It means employer is satisfied and
union is successful
61110 ZTBL Union
In workers context the performance of union is satisfactory with satisfaction
level mean 345 more than 3 It means majority of workers are satisfied and union is
successful Employer has also confirmed their efforts
In employerrsquos context the performance of union is satisfactory for all the
variables and as a whole performance of ZTBL union is satisfactory with 400 value of
weighted mean of satisfaction level of all the variables Majority of workers confirmed
exertion of unionrsquos efforts for employer It means employer is satisfied and union is
successful
612 Variable-Wise Performance of Unions
How unions have been exerting efforts for workers benefits has been enquired
from workers and responses of workers analyzed by obtaining their weighted
lsquoarithmetic meanrsquo in tables 21 to 35 and by applying lsquochi squarersquo in tables 37 to 51
Because one point of the lsquoExisting Problemrsquo was that unionsrsquo membership is declining
and it was assumed that this might be because unions are not exerting efforts for
securing benefits or protecting interest of workers
Similarly how unions have been exerting efforts for employerrsquos interest have
been enquired from employers and analyzed their responses by obtaining their
arithmetic mean in tables 52 and 53 Because other point of the lsquoExisting Problemrsquo
was that unions only talk about workers rights and ignore their obligations are
responsible for low productivity and it was assumed that it might be because unions
are not exerting efforts for exhorting workers for taking care of employersrsquo interest
200
6121 Workers relating variables
Wage Rise Over all sample mean of the satisfaction level of workersrsquo responses is
340 which is more than indifferent level (ie 3) Chi square test for this is also
significant resulting that unions as a whole have been exerting efforts for wage rise
Efforts of unions for wage rise can be estimated from this fact that at time of survey
(December 2006) minimum wage was Rupees 4000 but more than 324952
workers were earning wages between Rupees 5000 and 10000 and more than 4952
between 10000 and 20000 and 118 percent were getting wages even more than rupees
20000 (Appendix C-3) Rise in wages was 15 to 35 except of KTM (see
Appendix C-1) This is really an achievement at the part of labor unions
Fringe Benefits Over all sample Mean of the Satisfaction Level of workersrsquo
responses is 333 which is more than indifferent level (ie 3) Chi square test for this
is also significant resulting that unions as a whole have been exerting efforts for
securing fringe benefits of workers Except PCP workers of all other organizations are
getting bonuses and in some organizations bonuses are two or more ARL paid 5 and
KTM has paid 4 bonuses in previous charter (Appendix C-1) ARL KTM and
OGDCL pay 5 percent of their profit to workers and KTM besides this also make
payment to social security and 5 percent of workers salary to Employees Old Age
Benefit department (Appendix C-1) All these benefits are fruit of unionsrsquo efforts
Job Security Over all sample Mean of the Satisfaction Level of workersrsquo responses is
379 which is more than indifferent level (ie 3) Chi square test for this is also
significant resulting that unions as a whole have been exerting efforts for Job Security
of workers Employees of all the organizations under study are enjoying job security
due to unions (Appendix C-2) and 397 workers expressed their satisfaction on efforts
of unions for job security only 41 workers were unsatisfied (Table23)
Time Reduction Over all sample Mean of the Satisfaction Level of workersrsquo
responses is 354 which is more than indifferent level (ie 3) Chi square test for this
is also significant resulting that unions as a whole have been exerting efforts for
reduction in daily duty hours or resisting the increase of working hours by employer
201
Only one organization KTM has 48 working hours per week at the rate of 8 hours per
day Two organizations ARL and PCP have 40 working hours per week and other
seven organizations have weekly working hours less than 40 (Appendix C-2) This
time reduction of time less than 40 hours is really efforts of unions to comfort the
workers and causing increase of their motivation On unionsrsquo efforts for time decrease
324 respondents expressed satisfaction and only 43 workers expresses un-satisfaction
(Table-24)
Health Facilities Over all sample Mean of the Satisfaction Level of workersrsquo
responses is 360 which is more than indifferent level (ie 3) Chi square test for this
is also significant resulting that unions as a whole have been exerting efforts for
Health facilities for workers All the organizations are providing medical treatment
facilities to their workers (Appendix C-2) and 360 workers expressed their satisfaction
as compared to 72 un-satisfied workers (Table-25)
Children Education Over all sample Mean of the Satisfaction Level of workersrsquo
response is 302 which is minutely more than indifferent level (ie 3) Chi square test
for this is significant resulting that unions as a whole have been exerting efforts for
children education facilities for workers but performance of unions of five
organizations is not satisfactory and they need to improve their efforts in this regard
The satisfied workers 133 and unsatisfied workers 131 are almost equal with 261
indifferent workers on this facility which shows that unions need to put more efforts
for this facility (Table-26)
Over Time Payment Over all sample Mean of the Satisfaction Level of workersrsquo
responses is 330 which is more than indifferent level (ie 3) Chi square test for this
is also significant resulting that unions as a whole have been exerting efforts for
payment of overtime if workers work more than duty hours On unionsrsquo efforts 248
were satisfied as compared to 96 workers while 181 workers were indifferent (Table-
27)
Working Conditions Over all sample Mean of the Satisfaction Level of workersrsquo
responses is 372 which is more than indifferent level (ie 3) Chi square test for this
is also significant resulting that unions as a whole have been exerting efforts for better
202
working conditions On unionsrsquo efforts 376 workers were satisfied as compared to 43
un-satisfied workers (Table-28) It means unions have really exerted efforts for
working conditions
Leave Facility Over all sample Mean of the Satisfaction Level of workersrsquo responses
is 353 which is more than indifferent level (ie 3) Chi square test for this is also
significant resulting that unions as a whole have been exerting efforts for increasing
yearly leaves or resisting against the decrease of yearly leaves of workers Annual paid
leaves for seven organizations are 68 and for IESCO are 73 where as only for two
organizations are 40 This is a reasonable time for rest and enjoyment On unionsrsquo
efforts 321 workers were satisfied as compared to 42 un-satisfied workers which
shows that unions have really exerted efforts for exacting this facility (Table-29)
Post Retirement benefits (Pension) Over all sample Mean of the Satisfaction Level
of workersrsquo responses is 313 which is more than indifferent level (ie 3) Chi square
test for this is also significant resulting that unions as a whole have been exerting
efforts for Post retirement benefits for workers The Mean of satisfaction level of
workers for unionsrsquo efforts for this variable is hardly more than 3 so unions need to
improve their efforts in this regard The satisfied workers are 183 but unsatisfied
workers 129 are also not less while 213 workers are indifferent which shows that
unions need to put more efforts for this facility (Table-30)
Recreational Facilities Over all sample Mean of the Satisfaction Level of workersrsquo
responses is 303 which is hardly more than indifferent level (ie 3) Chi square test
for this is also significant resulting that unions as a whole have been exerting efforts
for recreational facilities The Mean of satisfaction level of workers for unionsrsquo efforts
for this variable is hardly more than 3 so unions need to improve their efforts in this
regard The satisfied workers are 116 but unsatisfied workers 138 while 271 workers
are indifferent which shows that unions need to put more efforts for this facility
(Table-31) The mean being more than 3 is due to the fact that 36 workers were very
satisfied which put more weight in satisfaction side
Training Opportunities Over all sample Mean of the Satisfaction Level of workersrsquo
responses is 301 which is hardly more than indifferent level (ie 3) Chi square test
203
for this is resulting that unions as a whole have been exerting efforts for training
opportunities for workers The Mean of satisfaction level of workers for unionsrsquo
efforts for this variable is hardly more than 3 so unions need to improve their efforts in
this regard The satisfied workers 141 and unsatisfied workers 138 are almost equal
with 246 indifferent workers showing that unions need to put more efforts for this
facility (Table-32) The mean being more than 3 is due to the fact that 246 workers
were indifferent which put more weight in satisfaction side
Decreasing Workers Officers Wage gap Over all sample Mean of the Satisfaction
Level of workersrsquo responses is 301 which is hardly more than indifferent level (ie
3) Chi square test for this is also significant resulting that unions as a whole have
been exerting efforts for decreasing gap of workers and officersrsquo wages The Mean of
satisfaction level of workers for unionsrsquo efforts for this variable is hardly more than 3
so unions need to improve their efforts in this regard The satisfied workers 144 are
slightly less than 150 unsatisfied workers with 231 workers indifferent (Table-33)
The mean touching to indifferent level is due to the fact that 13 responses are of very
satisfied This demands that unions need to put more efforts for exacting this facility
Information (Awareness) about Rights Over all sample Mean of the Satisfaction
Level of workersrsquo responses is 344 which is more than indifferent level (ie 3) Chi
square test for this is also significant proving that unions as a whole have been
exerting efforts for awareness of workers about their rights On unionsrsquo efforts 304
workers were satisfied as compared to 79 un-satisfied workers which shows that
unions have really exerted efforts for exacting this facility (Table-34)
Workersrsquo Education Collective Mean of the Satisfaction Level of workers
responsesrsquo is 331 which is more than indifferent level (ie 3) Chi Square test for this
is also significant proving that unions as a whole have been exerting efforts for
arranging workers education On unionsrsquo efforts 234 workers were satisfied as
compared to 73 un-satisfied workers with 218 indifferent responses which shows that
unions have really exerted efforts for exacting this facility (Table-35) though there is
need of more efforts
204
The Combined Mean of satisfaction level of workers on efforts of unions for
securing benefits for them or protecting their rights is 334 (SW = 334) and Chi square
tests for all variables are also significant acknowledging the exertion of unionsrsquo efforts
for workersrsquo benefits
Hypotheses from H1 to H15 for all the variables have been rejected and
alternate view has been established This proves that unions as a whole have satisfied
their workers and they are successful in this respect
6122 Employer relating variables
Productivity Increase or Efficiency Improvement Over all sample Mean of the
Satisfaction Level of employersrsquo responses is 330 which is more than indifferent level
(ie 3) proving that unions as a whole have been exerting efforts by exhorting
workers for productivity increase performance or efficiency improvement of the
workers of the organizations Except employer of IESCO KTM and ZTBL employers
of other organizations are indifferent with union performance So these unions need to
improve the efforts in this respect
Work Place Harmony Over all sample Mean of the Satisfaction Level of employersrsquo
responses is 400 which is more than indifferent level (ie 3) proving that unions as a
whole have been exerting efforts for improvement of workplace peace and harmony of
the organization Only the management of PTCL was indifferent with union
performance So this union needs to improve the efforts in this respect
The Combined Mean of satisfaction level of employers on efforts of unions for
securing benefits for them is 365 (Se = 365 More than 50 percent workers also
confirmed that unions have been exerting efforts by exhorting and motivating them for
improving performance (increase of productivity and efficiency) and workplace
harmony It has also been confirmed by workers (see YES responses of respective
variables in column 2 of table in appendices F-1 to F10) The Hypotheses 16 and 17
have been rejected This proves that unions as a whole have satisfied the employers
and this is success of unions
205
613 Comparison with Non-Unionized Workers
All the benefits secured by unions for their workers were not enjoyed by
temporary workers (comparison of facilities in tables 55 amp 56) and if they are availing
a facility or favor they admitted that it is because of unions struggle for them such as
medical treatment or bonus facility in some organizations
Besides this ninety six percent of workers replied that unions are necessary for
organizations for watching the interest of workers and obtaining benefits for them
(Question 18 of the questionnaire 2 and table 57)
However unions have some weakness at their parts and unions could not play a
beneficial role in obtaining some facilities such as
1 Education facilities for the children of workers in the form of Education
allowance Scholarships or establishment of quality schools Mean of
satisfaction of workers on unionsrsquo struggle for this facility is 302 which is
marginally above the required level and unions need much to do in this regard
2 Post retirement benefits amp Pension Mean of satisfaction of workers on unionsrsquo
struggle for this facility is 313 which is slightly above the required level
showing that satisfaction level mean is not good and unions need to put more
efforts in this respect
3 Recreation facility Mean of satisfaction of workers on unionsrsquo struggle for this
facility is 303 which is marginally above the required level and unions are
required to exert more efforts for this
4 Training facility Mean of satisfaction of workers on unionsrsquo struggle for this
facility was 301 which is poorly above the required level Training is of vital
importance for HRD so unions need to put more efforts for this
5 In struggle for decreasing officers workers wage gap the Mean of satisfaction
of workers on unionsrsquo struggle for this facility is 301 which is marginally
above the required level and requires more struggle
206
Unions no doubt as a whole were marginally successful in arranging four out
of fifteen facilities ie Education facilities for children of workers Recreation
facilities Training opportunities and Decreasing gap between officers salaries and
workers wages even though few unions were successful in securing these facilities as
well but unions collectively remained very successful in wining other eleven facilities
and as a whole the mean of all fifteen facilities is 334 Values of Chi Squires of all the
variables were significant compelling to accept alternate hypothesis which is other
name of significant unionsrsquo role for exerting efforts to secure workers benefits and
playing a positive role in HRD It means unions did arrange many facilities for
workers and when it is compared with temporary workers who were not getting these
facilities and benefits and if they could avail some benefits even these are because of
unionsrsquo efforts or unionsrsquo Therefore Declining in membership is not because of
unionsrsquo failure so causes of unionsrsquo membership decline are to be sought somewhere
else
Unionsrsquo role for serving the purpose of employers is also very significant as
the combine mean of all variable showing employers interest is 365 above the union
tolerable level of 300 So unions are playing a positive role for workers benefits as
well as for employers benefit and have built positive industrial relations
Ninety six percent workers commented that unions are necessary for them it is
to be admitted that unions are necessary for organizations However 86 workers
expressed their unhappiness on inter union rivalry rendering them weak because 81
workers were of the opinion that present unions became weaker than unions in the past
decade so they should get rid of this weakening vice
As a consequence of information obtained as responses from workers and
management of the sampled organizations and above detailed discussion the opinion
that was developed in chapter one (in the paragraph of Existing Problem) ie cause of
membership decline might be unions are not exerting efforts for securing facilities
and benefits for workers and the allegation that unions only talk about workers rights
and ignore responsibilities and largely responsible for low productivity now has
changed to new opinion that unions
207
1 Exert efforts for securing benefit for their workers
2 Do talk about workersrsquo rights but do not ignore their obligations
3 Motivate the workers for increase of productivity efficiency as acknowledged
by management with satisfaction level mean 32
4 Do struggle to improve work place harmony (managementsrsquo mean of
satisfaction level is 40) As they try to motivate workers to improve work
place harmony so they do not interfere in the administration and smooth
working at the workplace
Analysis of data and discussion also gave answers of research questions
62 ANSWERS OF RESEARCH QUESTIONS
1 To much extent the unions in Pakistan are effective in securing benefits and
facilities for workers like
i- Rise in wages salaries ranging from15 to 35 with satisfaction level
mean 34
ii- Fringe benefits such as bonus with satisfaction level mean 33
iii- Providing job security with satisfaction level mean 379
iv- Relief in working hours if not successful in time reduction but successful
in resisting increase of working hours with satisfaction level mean 354
v- Successful in procuring health facilities for workers with satisfaction
level mean of 360
vi- played marginal role in procuring educational facilities for children of
workers and the mean value of workers satisfaction on their struggle is
302 Unions need to improve their efforts in this respect
208
vii- Successful in procuring overtime facility with satisfaction level mean
330
viii- Successful in arranging good working conditions with workers
satisfaction level mean 372
ix- If not successful in Leaves increase but successful in resisting decrease of
leaves The satisfaction level of workers is 353
x- As whole slightly successful in procuring post retirement benefits for
their workers with workers satisfaction level mean of 313 and need to
put more efforts
xi- As a whole marginally successful in procuring recreational facilities for
their workers with workers satisfaction level mean of 303 Unions need
to exert more efforts
xii- As a whole marginally successful in procuring training opportunities for
their workers with workers satisfaction level mean of 301 Unions need
to exert more efforts
xiii- As whole were marginally successful in decreasing gap of workersrsquo
wages and officersrsquo salaries and workers satisfaction level mean is 301
Unions need to exert more efforts
xiv- Playing satisfactory role in giving the workers awareness about their
rights with workers satisfaction level mean of 344
xv- Unions also played satisfactory role in affording education facilities for
workers with satisfaction level mean 331
2- To much extent the unions in Pakistan are effective in protecting employersrsquo
interests by
i) Increasing productivity or improving efficiency of workers with
employersrsquo satisfaction level mean of 330
209
ii) Improving harmony at workplace with employersrsquo satisfaction level
mean of 400
63 CONCLUSION
By viewing results of data analysis and detailed discussions it is found that
unions under study have been proved successful in securing benefits for workers
which is apparent from satisfaction level of the workers with numeric value 334 at 5
point Likert scale Similarly it is also found that unions under study have exerted
efforts in protecting interest of employers which is apparent from satisfaction level of
the employers with numeric value of 365 at the same scale Though the performance
might have been very satisfactory if these averages were either 5 (which is ideal and
highest level of satisfaction) or near to five These are overall average result because
performance of some unions for some variables is not satisfactory Particularly
performance of unions in securing benefits like lsquochildren educationrsquo lsquorecreation
facilitiesrsquo lsquotraining opportunitiesrsquo and decreasing difference of remunerations (wages
and salaries) of workers and officers is not very appreciable and needs more efforts to
be done by unions As the scale for success is means of satisfaction levels more than
3 and both these combine means are greater than 3 so unionsrsquo overall performance is
satisfactory It has further been found that workers deem that presence of unions in the
organization is necessary which they expressed with 96 percent majority and inter
unions relations are needed to be improved because 86 percent workers opined that
inter union relations are not good Further more according to IRO 2002 work council
comprising representatives of both management and workers is necessary but
presently out of ten organizations studied work council exists only in three
organizations which is 30 percent of sample and unions are required to exert efforts to
establish work council in rest of 70 percent organizations
In the light of above lines it is concluded that Null Hypothesis is rejected and
alternate hypothesis is proved right that the unions are beneficial bodies for
organizations and ultimately for Human Resource Development Although there is
210
room for improvement in exerting efforts for securing benefits for workers as well as
for protecting employersrsquo interest and improvement of their inter unions relations
64 SUGGESTIONS AND RECOMMENDATIONS
Unions no doubt are playing a positive role in industrial relations for HRD
being successful in exacting benefits and facilities from employers for their workers
and are also protecting interests of employers by stressing workers to increase
productivity improve discipline enhancing workplace peace and harmony and
keeping good attitude with employer or management But still there are weak areas
where more efforts are needed so they should
1- Exert efforts to exact better facilities for education of workersrsquo children
2- Exert efforts to arrange training opportunities for workers to build their
skill which will make them more productive workers for the
organization and also cause to increase their remuneration
3- Exert efforts to arrange recreational facilities for workers Where these
facilities are available need improvement and where these are not
available are needed to be demanded by respective unions and arranged
by managementemployers in the form of Recreation allowances
Entertainment allowance Sports clubs Picnic parties etc
4- Unions should arrange training for office bearers from some agency to
have better know how of handling labor affairs and workersrsquo problems
5- When overall performance of unions is viewed unions claim the exertion
of efforts for every benefit (appendices F-1 to F-10 column 9) whereas
mean value of satisfaction level of workers is 34 So unions should
improve by exerting more efforts so that workers may be more satisfied
6- When overall performance of unions is viewed unions claim for exerting
efforts for benefits of employers (column 9 of tables in appendices F-1 to
F-10) whereas mean value of satisfaction level of employers is 365
211
Unions should improve by exerting more efforts so that satisfaction level
of employers may be very satisfied
7- Eighty six percent workers commented that intra organizational unions
are rivals to each other So unions should cooperate to each other if
unions are more than one in the organization Their rivalry harms them
and also to workers cause
8- Unions of today are weaker than unions a decade ago No doubt one
reason as workers told during interviews for this is non-democratic
regime but inter unions rivalry is also a reason for this so unions should
co-operate to each other in struggle for workers cause
9- Office bearers of four unions were not trained by any agency as unionists
to handle unionsrsquo matters Therefore Ministry of Labor amp man Power
should arrange training through any agency like (ILO NILAT) so that
they may be proved better unionist
10- There are Work Councils in only three organizations where as it is a legal
obligation according to section 24 of IRO 2002 Therefore unions should
demand and Government of Pakistan should arrange to form Work
Councils for prompt solution of workers problems
11- Unions sign charter of demand but intervals are different either 2 or
3years and of CDA union are not regular Unions and Employers should
sign charter of demand with regular intervals and this interval should be
two years
212
65 SUGGESTIONS FOR FURTHER RESEARCH
It is neither necessary nor easy that a research can determine causes of all the
problems or can explore all the aspects of a problem or can seek the solutions of a
problem for ever So any research can not be a final or comprehensive and there is
always need to explore better solutions of a problem or other facets of any discovery
Therefore researcher feels and admits that much work is to be done in presently
researched area In this regard for further researchers it is suggested to
1- Determine the causes of declining membership of labor unions in Pakistan
particularly in private sector after privatization
2- Determine the role of labor unions in politics of the country and in
movement of freedom of Pakistan
3- Explore the role of legislation and labor judiciary in providing relief to
labor unions or employers in the matter of conflicts
4- Enquire the social role of labor unions in solving social problems of
workers beyond collective bargaining
5- Estimate the role of labor unions in smaller industries or establishments in
solving the problems of workers by securing financial and non financial
benefits for workers
6- Search the affects of privatizations on the strength and activities of unions
in Pakistan
7- Explore the affects of globalization on the unionization unionsrsquo activities
and workers
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