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LABOR UNION MANAGEMENTA CASE STUDY OFWATER AND POWER DEVELOPMENT AUTHORITY (WAPDA)

Submitted to:Mr. Farhan Azmat MirAssistant ProfessorBahauddin Zakriya University, Multan, PakistanE-mail: farhanmir_99@hotmail.com

Submitted by:Adnan Maqsood (MB-12-57)Gull Chani (MB-12-60)Umer Rasool Khan (MB-12-46)Tayyaba Mushtaq (MB-12-40)Sehrish Gaffar (MB-12-58)M. Asad Saleem (MB-12-10)Dilawar Hafeez (MB-12-28)Humayoon Askary (MB-12-14)Johar Hussain (MB-12-42)Bukhtawar Mehfooz (MB-12-11) Hafiz Akram (MBE-09-52)

EXECUTIVE SUMMARYA labour union is an organization based on membership of employees in various trades, occupations and professions, whose major focus is the representation of its members at the work place and in the wider society. It particularly seeks to advance its interest through the process of rule-making and collective bargaining. The present study basically aims to understand how the labour union operates particularly in WAPDA, which is one of the largest organizations in Pakistan. In this regard, data was also collected through interviews from the members of the labour union of WAPDA. The results of the study indicate that these unions play a major in not only raising their voices for the benefits of its employees but also play a significant role in decision making process of the organization.1. INTRODUCTIONLight is life, and electricity has become one of the essential needs of the modern world. It has brought with it innovations which have worked many wonders in our lives which now seem impossible without it. Electricity powers our lights, provide heating and energy for electronic appliances and a host of essential services which we now take for granted. However, electricity has much more important aspects because it is a fundamental feature of all matter. Electricity is the force that holds together the molecules and atoms of all substances. Economic development is very closely and directly linked with energy development (Burke, 2004). It is one of the basic infrastructure through which development in industrial, commercial, agricultural and residential sector, as also in transport can take place.1.1 WATER AND POWER DEVELOPMENT AUTHORUTY (WAPDA): THE CASE UNDER CONSIDERATIONIn this regard, WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a Semi-Autonomous Body for the purpose of coordinating and giving a unified direction to the development of schemes in Water and Power Sectors, which were previously being dealt with, by the respective Electricity and Irrigation Department of the Provinces. Since, October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and hydropower development whereas PEPCO is vested with the responsibility of thermal power generation, transmission, distribution and billing. WAPDA is now fully responsible for the development of Hydel Power and Water Sector Projects.The Charter of Duties of WAPDA is to investigate, plan and execute schemes for the following fields:Generation, Transmission and Distribution of Power. Irrigation, Water Supply and Drainage. Prevention of Water logging and Reclamation of Waterlogged and Saline Lands. Flood Management. Inland Navigation.

Thus, WAPDA is one of the largest employers of human resources in Pakistan. Over the years WAPDA has built-up a reservoir of Technical know-how and expertise which has made it a modern and progressive organization.

1.2 DESCRIBING THE TRADE UNIONS:Trade unions are associations of workers formed and registered under Industrial Relations Ordinance under several restrictive conditions. Foremost is the condition that restricts its membership only to workers actually employed in the establishment or the industry concerned though it allows one-fourth of its executive body members to be from outside the establishment. Under the law, trade union cannot operate unless it has been certified as Collective Bargaining Agent. The law also restricts registration of sector- based trade unions: workers of a particular sector, i.e. textile, employed at different establishments in different locations cannot form a single union.The number and strength of the trade unions have diminished considerably over the years due to increasingly restrictive legislation imposed by the state. The reasons for weak and ineffective trade unionismaside state interventionlisted by analysts, include internal fragmentation, lack of educated cadre and committed leadership, lack of input from enlightened elements of civil society, ethnic and sectarian divide in society, and globalization of economy. Trade unionism, limited to the formal sector, has not been able to achieve the unifying force to give it a sense of direction and endow it with political power. It has been further weakened by the process of privatization since the last decade.1.3 LABOUR UNIONS IN PAKISTAN: AN OVERVIEW

Labor law in Pakistan defines trade union as a combination of workmen whose primary purpose is to promote and defend workers rights and interests in an industry or establishment.The right to join association is guaranteed under article 17 of the Constitution of Islamic Republic of Pakistan, which says, Every citizen shall have the right to form associations or unions, subject to any reasonable restrictions imposed by law in the interest of sovereignty or integrity of Pakistan, public order or morality. Article 17 of the Constitution not only guarantees freedom of association but also collective bargaining as a fundamental right.Keeping in view this provision, labour law in Pakistan allows formation and joining of trade unions/associations to both the employers and the employees. There is a special law in Pakistan for trade union registration and settlement of industrial disputes i.e., Industrial Relations Act. After passage of 18th Constitutional amendment, labor is no longer a subject on concurrent list i.e. central government can no longer legislate in labor related matters. Though provinces are allowed to legislate in labor matters now, yet only Punjab province has enacted its Punjab Industrial Relations Act 2010 so far. The other three provinces and federal capital territory are still in the process of consultation on new legislation.Workers are entitled to join a union without previous authorization; however, they can become members of only one union at a time. If a worker joins more than one union at a time, his earlier membership will get cancelled. Moreover, both workers and employers have the right to join federations and confederations, which have the right to affiliate with international organizations.Having said this, it is significant to mention the role of CBA (Collective Bargaining Agent.) This can be described as a trade union, which is the elected agent of workers in an establishment. A collective bargaining agent is elected after holding a secret ballot election if there is more than one union in an establishment. 1.4 LABOUR UNIONS IN WAPDA:Since WAPDA is one of the largest employers of human resource in Pakistan, it therefore has two labour unions namely All Pakistan WAPDA Hydro Electric Workers Union or more commonly known as HYDRO UNION and PEGHAM UNION. In this regard, one of the key point to remember is that the Hydro Union has recently won referendum against Pegham Union with 45000 lead thus becoming the CBA which was announced by National Industrial Relation Commission (NIRC) under the section 19 (9) C of IRC Act 2012. Notably, it is also significant to mention that Hydro Union has been in power in WAPDA for the last 40 years thus taking care of its members and working for the betterment of its employees. For instance, some of the steps that Hydro Union has taken for the improvement of its workers are as follows: Established seven labour halls in regions where temporary residence and refreshment for employees is free. Different, free of cost computer courses are run for its employees. Provides funds such as widow fund and accidental fund. Issues credit with no interest. Marriage grant is given for the employees children. On the other hand, PEGHAM Union is not only working in WAPDA but is also operational in Pakistan Railways, Pakistan International Airlines (PIA), and Pakistan Telecommunication Limited (PTCL). This union became CBA for only three months as a result of 18th amendment under the constitution of Pakistan. 2. RATIONALE:In Pakistan, there are two point of view about the labor union organization. First, positive and second negative. But in case of labor union or other union have a negative perception in general public mind. In General Public mind, they thought that union doesnt work efficiently. But in this study, we are proofing that union has also a positive aspect, they work for the betterment of the employees and they do not allow to Government to those actions that directly impact on the employees. As already mentioned above, trade unions are organizations of workers that seek through collective bargaining with employers to: Protect and improve the real incomes of their members Provide or improve job security Protect workers against unfair dismissal and other issues relating to employment legislation Lobby for better working conditions Offer a range of other work-related services including support for people claiming compensation for injuries sustained in a jobHence, keeping in view the above mentioned facts, the aim of this case study is to comprehend the functioning of labour unions in WAPDA.3. RESEARCH QUESTION:What is the focal point of present study in understanding the role of labour unions particularly in WAPDA?

4. LITERATURE REVIEW:

Akteruzzaman (2006) says that labor unions as Labor unions are voluntary associations of workers to promote and protect their interest by collective endeavor and constitute an integral part of the relationship between the employees and employers. Whereas, Gomper (2009) has given more comprehensive definition in a way that labor union is a group of workers who have organized in order to pursue common work-related goals, such as better wages and benefits, safer working conditions, and greater job security. By concluding all definitions we can say that labor union is Organization whose membership consists of workers and union leaders, and whose principal purposes are to negotiate wages and working condition terms, regulate relations between workers (its members) and the employer, take collective action to enforce the terms of collective bargaining, raise new demands on behalf of its members, and help settle their grievances.Donas (2005) says that unions adopt two means to fulfill their goals. First and foremost is through collective bargaining with the employer being as a representative of the employees. The second way they adopt is through efforts to influence government legislation. Unions are working both in public and private sector organizations to protect the rights of employees. In Indo-Pak, as reported by Bawa and Hashmi (2010), the concept of collective labor was introduced by Malik Gokhale which was given legal identity through the introduction of Trade Union Act 1926. At that time, two most strong unions working under the influence of National Congress and Socialist Party were Indian Trade Union Congress (INTUC) and Hindustan Mazdur Sabha (HMS). After the inception of Pakistan, the first trade union established in Pakistan was Pakistan Trade Union Federation (PTUF) having ties with INTUC and Mirza Ibrahim as its first President.

5. BACKGROUND OF THE STUDY:The present study focuses on understanding the role played by the Hydro Union against the privatization of WAPDA and the cancellation of order of free units for its employees. In this context, it is also important to recognize the primary objective of privatizing WAPDA. Thus, it was argued that governments have grown too fat to effectively handle the delivery and provision of public services including WAPDA. Furthermore, it was asserted that the decline in the quality and performance of public sector services was largely due to politicization. Moreover, it was argued that these departments also suffer from bureaucratic irregularities, official-arrogance, and corrupt and socially irresponsible practices which cause major obstacles to efficient provision of services. According to the proponents this could be put to an end by de-bureaucratization, deregulation, and involving the private sector in the provision of public services. Privatization was therefore seen as a solution for these ills as, according to them, private concerns are more efficient in production of goods and in service delivery.However, one of the most important recipients of this kind of change was the workers of WAPDA, especially the ones who were shifted from WAPDA to PEPCO through an executive order. Moreover, designations were changed (e.g.at the executive posts MBA graduates were hired), seniority levels were revised and employees between scale 17-20 were given options.

This finally led to an active resistance that camefrom employeesinform ofprotestsincludingsit in front of the parliament house Pakistan. WAPDA Hydro Electric Central Labour Union thus launched protestcampaigns against privatization of WAPDA. Union members took outprocessions and held rallies in different cities of the country from time to time to urge the government to discontinue from privatizing the organization. The slogan-chanting workers urged the federal government not to privatize profit-earning organizations like WAPDA at the directive of the World Bank and IMF.Furthermore, they criticized the policies of downsizing and rightsizing of the governmentwhich, according to the union leaders, have caused an unprecedented unemployment and lawlessness in the country. The union leaders and workers were determined to resist the privatization of WAPDA's regional organizations.In this regard, when some of the union members were interviewed, in order to support their arguments, they quoted the example of Karachi Electric Supply Company (KESC). They compared the working of KESC with that of WAPDA in Punjab and concluded the following:Line LossesTechnical IssuesTheft

Punjab20% - 25%8% - 10%9% - 12%

KESC35% -40%12% - 15%13% - 16%

Hence, the union workers not only raised their voices against the privatizing of the organization but also indicated that it would not bring any good to the country also.

6. CONCLUSION:Keeping in view the above mentioned facts, it can be concluded that labour union in WAPDA played a key role in stopping the government from privatizing one of the largest civil organizations of the country. In this regard, they took immediate and forceful actions to ensure the betterment of not only its employees but also ensured the progress of the country. Labor union of WAPDAs Hydro play a positive role in this issue, Hydro prove that if labor union play in effective way than union dont give chance to anyone take negative action against employees. Hydro has secured the employees interest in result of free supply and restrict the government do not take action to privatize the largest civil department of Pakistan.

REFERENCESMr. Rana AsghrDivisional ChairmanHydro WAPDA

Mr. Saeed SialSub-divisional ChairmanHydro WAPDA

Mr. Muhammad RashidSub-divisional Vice ChairmanHydro WAPDA

Websites:Mepco: www.mepco.com.pkWapda: www.wapda.gov.pkCase Study: Labor Union Management On WAPDA