overview of evolution of the industrial relations system in pakistan

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Humayun Khalid QureshiHumayun Khalid QureshiMBA 1.5 (HR)MBA 1.5 (HR)

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Labor Market IndicatorsLabor Market IndicatorsWE ARE CURRENTLY HEREWE ARE CURRENTLY HERE

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WelcomeTO THE PRESENTATION

Evolution of the industrial relations system in Pakistan





Labor Market IndicatorLabor Market IndicatorWE ARE CURRENTLY HEREWE ARE CURRENTLY HERE

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Industrial RelationsA regulatory system or mechanism that governs workplace relations

Industrial relations establish relations & rules which enhance and produce efficiency, productivity and excellent work, promote trust, cooperation by reducing conflicts between employer and employees.

Labor Market : A market in which workers compete for jobs and employers compete for workers on wage rate basis.

A Question?

Who is the key player in establishing the industrial relations system?

Government?

Employers and the Workers

No






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The Pakistan ScenarioAs industrial sector is increasing, role of industrial relations is increasing in Pakistan.

Trade unions centered on personalities. Very few of them attempt to organize at root level. But prefer to compete for loyalty enterprise base unions. (reason of instability).

Limit of members was 2,000 members. Now it is 135 union members for each .

International Confederation of Trade Unions (ICFTU)

Three affiliates of ICFTU were merged in Pakistan Workers Federations (PWF) in

September 2005

Before Independence

The feudal system prevalent in the country

The hostile and feudal attitude of employers

In-active role of government

Pakistan remains mostly under Military rule after independence

Anti-trade union attitude

Pakistan Workers’ Federation (PWF)A single nation wide workers unions in

Pakistan.

PWF point out the following impeding factors






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The Pakistan ScenarioRetrogressive’ labor legislation brought all the national federations under one umbrella to develop and maintain unity by forming a Joint Labor Council.

The countrywide strike call of March 1969 led to the shutdown of electricity supply in major cities for two hours in the evening. Pakistan Tripartite Labor Conference

(PTLC) was convened in 1969.

This conference give two benefits to the labor force

1. Concept of Industrial Relations Ordinance 1969

2. Electing Collective Bargaining Agent through secret ballet elections

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Steps Taken by Pakistan Govt.

The Pakistan Decent Work Country

Program (PDWCP)

2005

Cabinet approved the Labor Inspection Policy Labor Protection Policy

2006

National Employment Policy (NEP)

2007

Millennium Development Goals

and Decent Work Together

2008

Employment and service

conditions act (ESCA)

2009






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Labor Market IndicatorsLabor force participation rateEmployment-to-population ratioStatus in employmentEmployment by sectorPart-time workersHours of workEmployment in the informal economyUnemploymentYouth unemploymentLong-term unemployment

Unemployment by educational attainmentTime-related underemploymentInactivity rateEducational attainment and illiteracyManufacturing wage trendsLabor productivity and unit labor costs






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Labor Market IndicatorsPopulations of Pakistan

155.37 millionGrowth Rate 1.09%

Annually

2005-06Population Age Group

30% Below 10 Years old

12.9% 10-14 years old

Growth rate increases due to LFPR

Populations of Pakistan160.9 million

Growth Rate 1.8% Annually


45.2% 10 Years and above

Growth rate of child labor increases due to

Populations of Pakistan163.76 million

Growth Rate 1.73% Annually


45.2% 10 Years and above

Growth rate of 10 Years & above remain same but female labor force participation was increased.






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Labor Market IndicatorsPopulation 177.7

MillionGrowth Rate 2.05%.

2010-11

Population 2010-11 Employed Un-employed

Total 57.24 M

53.25 M 3.4 M

Male 68.7%

Female 21.7%






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Labor Market Indicators

2010-11

Indicators From To + or -

Labor Force 56.33 (Million) 57.24 Million + 0.91

Minimum Wage Rate Rs/- 7,000 Rs/- 8,000 + 1,000

Employed People 53.21 Million 53.84 Million + 0.63

Unemployed Rate 5.6% 6.0 + 0.4

Agriculture Sector 44% 45% + 1.0%

Industrial Sector 13.2% 13.7% + 0.5%

Wholesale and retail 16.3 16.2 % - 0.1%

Community / Personal 11.2% 10.8% - 0.4%






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Role of Informal Sector &Pakistan Government 2010 -2011

Informal Sector

Government

Employs 73.8 percent of total labor force in 2010-11

Particulars 2010-11

Million

0.45 Million

Skilled 0.17

Un-skilled 0.20

Semi-skilled 0.073

Highly skilled 0.0030

High qualified

0.0069






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Employment shared by Sectors

45.1

13.77

16.2

5.1 10.82.1

SectorsAgriculture

Manufacturing

Construction

Wholesale

Transport

Community/Personal

Others






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36.2

75.4

Agriculture Sector (out of 100)

Male Female






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14.5

10.9

Manufacturing Sector ( out of 100)

Male Female






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8.9

0.2

Construction Sector both (from 100)

Male Female






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20.4

1.6

Wholesale Sector both (from 100)

Male Female






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6.6

0.1

Transport Sector both (from 100)

Male Female






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10.811.4

Community / Personal Sector both (from 100)

Male Female






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2.6

0.3

Others Sector both (from 100)

Male Female






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Labor Force Expansion Policies

Micro Credit Facilities

President’s Rozgar Scheme by National Bank of Pakistan (NBP)

National Vocational and Technical Education Commission

(President’s Funnee Maharat Program and the Prime Minister’s Hunarmand Pakistan Program)

Skill Development Councils

Overseas Employment

Information Technology

National Internship Program

Investing in Increasing Water

Resources






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New Forms of Employment & Areas of Concern

The economic, social and political environment have great affects on labor-management relations.

Labor force remain in the form of unions, management committees, and collective bargaining agents.

In Pakistan, the employment is considered as the employee is having regular, casual, piece rate or apprenticeship .






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New Forms of Employment & Areas of Concern

5627

16 1

Employees %

RegularCasualPiece RateApprentice

Sectors AgricultureMiningManufacturingElectricityConstructionTradeTransportFinanceService

26 2151

97.5

6.57060

89

86

Regular % AgricultureMiningManufacturingElectricityConstructionTradeTransportFinanceServices

42

49

16

2

76

19

28 78

Casual % Agriculture

Mining

Manufacturing

Electricity

Construction

Trade

Transport

Finance

Services

31

30310.5

17.5

10 113

5

Piece Rate % Agriculture

Mining

Manufacturing

Electricity

Construction

Trade

Transport

Finance

Services

1

2

11

1

1Apprenticeship % Agriculture

Mining

Manufacturing

Electricity

Construction

Trade

Transport

Finance

Services






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Explanations

Regular Employees Piece Rate Employees Apprentices

56 % employees have regular work mostly in Finance, services, trade, agriculture and mining.

Every third employee out of 100 is engaged in piece rate employment in agriculture, manufacturing, mining sectors.

Proportion of apprentices is insignificant, the maximum being 2 per cent of the employees in manufacturing.

Pakistan 1999-2000

2001-2002

2003-2004

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

Labor Force Participation Rate 50.4 50.5 50.7 53.0 52.5 52.5 53.1 53.5 53.4

Employment-to-population ratio 46.8 46.5 47.0 49.7 49.8 49.9 50.3 50.7 50.4

Unemployment rate 7.2 7.8 7.4 6.1 5.1 5.0 5.2 5.3 5.7

Share of industry in total EMP 18.2 21.0 20.6 21.2 21.4 20.6 21.0 21.4 21.8

Share of agriculture in total EMP 47.8 41.1 41.8 41.6 42.0 42.8 43.3 43.4 43.5

Share of services in total EMP 34.0 38.0 37.6 37.1 36.6 36.6 35.7 35.2 34.7

Share of EMP in the informal economy

65.0 63.8 69.4 72.3 71.5 72.4 73.0 72.9 73.5

Selected key indicators of the labor market (%)

Both Male and Female






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CONCLUSIONLess wages, less remunerative

services with excellent, quality and productive work badly affects a significant portion of employed labor force.

Similarly, poor working in significant place of work also increase the cost but produce nothing.

Changing employee patterns affect industrial relations. As show in the charts, the regular workers are replaced by casual and piece rate workers. This is due to cost minimization strategy which is adopted by employers. Another factor is telecommuting which remove the boarders and increase the level of globalization. Freelancers and outsourcers are available at just one click, no need of establishing business, office, etc , also negatively affect the labor force participation

Work force is not organized in industrial units. Recent barriers of electricity, gas also affect negatively the production. Ultimately, when the production rate is zero, or equal to zero, employers will fire the labor due to zero production. This action will increase the unemployment rate and also many social evils will produce.This transformation has led to increasing inequality of income, poverty, and insecurity.






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overview of evolution of the industrial relations system in pakistan

Economy & Finance