Labor Laws Instructor: Muhammad Akram Chaudhry 1
INDUSTRIAL RELATION / EMPLOYEE’S RELATION
Labor Laws Instructor: Muhammad Akram Chaudhry 2
Goals for today• THINK:
– About basic principles that affect people and organizations
– About practices that HR professionals and leaders can use to implement these principles
• BEHAVE:– Do little things that make a difference
• FUN:– Enjoy the experience together
Labor Laws Instructor: Muhammad Akram Chaudhry 3
New Business Realities: Context of HR
• Technology– Connectivity: always connected– Accessibility: no boundaries– Ambiguity: uncertain future
• Industry/economic trends– Transparency: open book management– Adaptability: the need to change– Intensity: market conditions– Convergency: overlap of industries
• Demographics– Mobility: movement of talent globally– Diversity: globalization of work force– Spirituality: a need for trust and values
GLOBALIZATION
Fundamental Message:value is defined by the receiver more than the giver
Fundamental Message:value is defined by the receiver
Labor Laws Instructor: Muhammad Akram Chaudhry 6
What we want(values, beliefs, goals)
What we want(values, beliefs, goals)
What we do?Actions/behaviors
What we do?Actions/behaviors
Human resources Line management
Fundamental Message:value is defined by the receiver
Labor Laws Instructor: Muhammad Akram Chaudhry 7
HR professionals
HR actions that deliver value
coach
deliver and do
facilitate architect
Labor Laws Instructor: Muhammad Akram Chaudhry 8
Evolution of HR
30’s:: industrial relations40’s: staffing practices50’s: training/development 60’s: socio/technical systems; 70’s: compensation/rewards 80’s: organization design/communication90’s: partnership; HR strategy2000’s: adding value: how we are at the table, what do we do?
LEADING THROUGH HR
• The most recent HR trends have a track record of professional development which may be categorized in FOUR Broad Phases. Each phase has been influenced by radical management ideas which have defined the role of HR Manager in business organizations..
Labor Laws Instructor: Muhammad Akram Chaudhry 9
PHASE I – THE PHASE OF WELFARE & ADMINISTRATION (1900 to 1940’s)
The following Management ideas flourished in this phase:-
1923• Efficiency was the buzzword as enterprises applied the
scientific management methods of Federick Taylor, Frank Gilberth and others.
• Henry Ford’s, Mass production technique churning out Model Ts at increasingly lower prices.
Labor Laws Instructor: Muhammad Akram Chaudhry 10
• Alfred Sloan’s new structure for GM, Decentralized decisions, Centralized staff functions
• Mary Parker Follett saw the future of management: key words introducing such as, Group thinking coordination, power with, not power over.
• The human element Elton Mayo’s famous Hawnthorne studies find that, Human and social factors have a big impact on productivity.
PHASE I – THE PHASE OF WELFARE & ADMINISTRATION (1900 to 1940’s)
PHASE I – THE PHASE OF WELFARE & ADMINISTRATION (1900 to 1940’s)
1938
• Janes Mooney identifies hierarchy showing that, Organizations have a ladder of duties & responsibilities.
• Chester Bernard defined organization as a System of cooperative efforts with a common purpose in the function of the Executive.
• Emergence of Labour Laws for industrial workers.
Labor Laws Instructor: Muhammad Akram Chaudhry 12
PHASE 2 – WELFARE ADMINISTRATION STAFF ANDTRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS 1940’s TO
MID 1970’s
The following management ideas flourished during this period:-
• Quantitative methods of analysis influenced decision marking in business.
• Henry Fayol’s Complete theory of “14 principles of management functions” (Planning controlling staffing….) published in English 33 years after Frenchman Henry Fayol wrote it (General & industrial management).
Labor Laws Instructor: Muhammad Akram Chaudhry 13
PHASE 2 – WELFARE ADMINISTRATION STAFF ANDTRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS
1940’s TO MID 1970’s
1954
• Maslow’s theory of human needs hierarchy.• The rise of MBO Peter Draker: • “Managers should be driven by clear objectives” in
“The Practice of Management”.• Frederik Herzberg’s Theory of
Motivation.
Labor Laws Instructor: Muhammad Akram Chaudhry 14
1962
• Douglas Mc Gregor’s argument of Theory Y Management (Encouraging self direction) on Theory X (Encouraging authority).
• Organizational structure takes Centre Stage as Alfred Chandler& Drucker focus on big picture.
Likert’s concept of Leaders who developparticipative organizations get better results.
PHASE 2 – WELFARE ADMINISTRATION STAFF ANDTRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS
1940’s TO MID 1970’s
PHASE 2 – WELFARE ADMINISTRATION STAFF ANDTRAINING : PERSONNEL MANAGEMENT, INDUSTRIAL RELATIONS
1940’s TO MID 1970’s
1967
• Peter Drucker introduce the knowledge workers and recognizes the growing up of knowledge workers.
Labor Laws Instructor: Muhammad Akram Chaudhry 16
PHASE 3 – HUMAN RESOURCE MANAGEMENT MID 1970’s – 1990’s
The following management ideas groomed in this.
1980
• What do managers do (Henry Mintzberg) finds that, Immediate tasks rather than long term thinking consume their days.
.
Labor Laws Instructor: Muhammad Akram Chaudhry 17
• Tom Peters’ In Search of Excellence: Research of 43 Excellent Companies’ identifying success factors behind their excellence. Within Productivity through People highlighted as key to organization excellence
PHASE 3 – HUMAN RESOURCE MANAGEMENT MID 1970’s – 1990’s
PHASE 3 – HUMAN RESOURCE MANAGEMENT MID 1970’s – 1990’s
May 1986 Wall Street Journal
• Peter Ducker’s article on “Goodbye to old personnel department” in which he predicted:
1. Personnel function will drastically change in years ahead.
2. New and different tasks
3. We will have to act as a line rather then staff function.
4. Employing different people.
Labor Laws Instructor: Muhammad Akram Chaudhry 19
5. Will have to redirect itself away from concern with cost of employees to concern with their yield as resource.
6. Personal Management & Org. Planning (OP) will have to come together.
7. PERSONAL MANAGEMENT: Treated organization as given and tried to provide people. Focused on supply
8. ORGANIZATION PLANNING: Fashioned impersonal boxes with functional titles. Focused on demand.
9. Both will have to come together Personnel function will have to concern itself with job design and job relations rather than simply try to supply people to fill predetermined slots
PHASE 3 – HUMAN RESOURCE MANAGEMENT MID 1970’s – 1990’s
PHASE 3 – HUMAN RESOURCE MANAGEMENT MID 1970’s – 1990’s
• PETER DRUCKER IDENTIFIED FOLLOWING FACTORS RESPONSIBLE FOR ABOVE CHANGE:
1. Changing technology, taking away functions of first line supervisors by automaton will need to redirect them to acquire new vision, new skills.
2. Shift in composition of workforce. Productivity of white collar workers, new challenge, restructuring of career ladders, compensation and recognition.
3. Changing age composition of professional and managerial functions.
Labor Laws Instructor: Muhammad Akram Chaudhry 21
PHASE 3 – HUMAN RESOURCE MANAGEMENT MID 1970’s – 1990’s
1. Changing technology, taking away functions of first line supervisors by automaton will need to redirect them to acquire new vision, new skills.
2. Shift in composition of workforce. Productivity of white collar workers, new challenge, restructuring of career ladders, compensation and recognition.
3. Changing age composition of professional and managerial functions.
• The Credibility gap: The tug of war between HR and Line Managers.• Moving back or moving forward:- The HR linkage.
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PHASE 4 STRATEGIC HUMAN RESOURCE MANGEMENT 2000 ONWARDS
• Influence of IT revolution in Strategic Decision Making.
• From “Do able” to “Deliverables”.
• Lagging indicators & Leading indicators as new parameters of organizational success.
• The Strategic Alignment and the HR Score Card.
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– Dave Ulrich’s new mandate for HR Managers: The future Humane Resources Champions:
- As STRATEGIC PARTNER
- As ADMINISTRATIVE EXPERTS
- As EMPLOYEE CHAMPIONS
- As AGENTS OF CHANGE
PHASE 4 STRATEGIC HUMAN RESOURCE MANGEMENT 2000 ONWARDS
PHASE 4 STRATEGIC HUMAN RESOURCE MANGEMENT 2000 ONWARDS
• Charles Handy’s Productivity Challenge
Productivity
Three Times = Half the people + Double the Wages the Performance
Wealth = Productivity + Alchemy (Creative mind)
Happiness = Wealth + Humanity (Concern for people)
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• The new challenge of Managing Talents.
• HR’s Leading Role as the Future CTOs (Chief Talent Officer): The Ladder to the Board Room
• Where are we? The HR leaders of Pakistan: Respond to the Wakeup Call
PHASE 4 STRATEGIC HUMAN RESOURCE MANGEMENT 2000 ONWARDS
Labor Laws Instructor: Muhammad Akram Chaudhry
Business Environment and the Changing Workplaces at a Glance
Labor Laws Instructor: Muhammad Akram Chaudhry 28
Business Era
The Global EnvironmentReaction of Nations
Business Focus
within Organizations
Culture within Organizations
People Perspective Functional Importance within Organizations
Fortune 100
and their CEOs
1900s-1940s
Conflicts, Wars and Independence Movements
We don’t need your help. W e can do it ourselves.
Survival Lack of trust and survival of the fittest
Give them limited resources and control them tightly.
Accounting and Finance
Accounting and Finance
1940s-1950s
Industrialization (increased business opportunities, increased employment, etc.)
You can help, if you want to.
Growth while focusing on ways of increasing productivity
I can do without you.
Give them the resources, however, govern and administer their behavior.
Production and Engineering
Production and Engineering
1960s-1970s
Restricted international trade opportunities, Cross boundaries joint-ventures, international investment climate, growth of multi-national business organizations, establishment of international trade and peace organizations, relaxed immigration policies allowing international migration, etc.
Let me help you with your growth.
Cross-boundaries expansion and growth
I need your help.
People will work better if they are valued, managed and trained like other organizational resources...
Marketing Marketing
1980s andearly 90s
Information, communication and technological revolution, Fall of Berlin wall, End of communism International Standards, European Union, etc.
We can be more effective with mutual sharing and assistance.
Increased used of technology and standardization of systems procedures and processes for consistency in quality
We can’t do it alone. W e need each other.
People are emotional beings and critical for the success of any organization and their competence is the key to success in future. They must be respected, appreciated, nurtured, developed and empowered.
Technology Operations
Late
90sand Beyond
Globalization of the world economy, Free movement of infor mation, goods and services, etc. More inter border alliances like European Union, More single currency markets, etc.
We are all one and have the same objective. Then let’s work together for the common good.
Humanization of the organization for competitive advantage as no other competitive advantage is left with the easy availability and transfer of technology goods and services.
We are one and can only get the best if we pooled our resources and efforts together.
People are the most precious and important capital of the organization and the motivation of people will be the only success factor in the new age and it will reflect in the balance sheet of the organization.
Human Resources
Inspirational Human Resources with strong business acumen and ability to relate religion with business.
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Changing Role of HR Function in the Workplace Business Era
HR Paradigm
Nature of HR Department
Role of HR Head
Background of HR Managers
Impact of HR Role
HR Role Positioning in organizations
1900s-1940s
Control andDiscipline.
Administration Department
Bull-dog Army and Police
Control at
workers’ level.
Supervisory or Junior Management depending on the size of operation
1940s-1950s
Ensure Compliance with organizational rules ad regulations.
Industrial Relations Department
Watch-dog Industrial Relations and Law
Compliance to organizational policies up to supervisory level.
Junior/Middle Management reporting to Admn. Or Finance head
1960s-1970s
Train and Manage.
Personnel Management Department
Trouble shooter and a coach
Personnel Management
Providing personnel policies and systems support to other functional heads.
Middle Management reporting to Operations
1980s andearly 90s
Develop and Motivate.
HR Department Business Partner
Psychology and Business
A line-manager providing HR related support to other colleagues in support departments and business units.
Senior Management reporting to directors/CEO.
Late
90sand Beyond
Educate and Inspire.
Human Capital Management Function
Clergy and an agent of change
Behavioral Sciences and Religion
Total Business and the society at large.
Advisory and Inspirational role providing expert advice to the board. Reporting to the Chairman/share-holders with the functional/line management responsibilities pushed down to business unit heads.
HR- Transaction to Transformation
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Basic Human Resource Functions
Staffing
Maintenance Training & Development
Motivation
H R M
Labor Laws Instructor: Muhammad Akram Chaudhry 32
Labor Laws Instructor: Muhammad Akram Chaudhry
Shift of HR from Operational to Strategic Continuum
HR Business Partner Model
Labor Laws Instructor: Muhammad Akram Chaudhry 34
HR Business Partner Model
HR can help bring organizational excellence by means of four methods;
1. As Strategic Partner: HR should become a partner with the top management to help in strategy execution by aligning HR Systems with business strategy
2. As Administrative Expert: HR should add its expertise to achieve work excellence so that costs are cut and quality is maintained through efficient delivery of HR System
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HR Business Partner Model
3. As Employee Champion: HR should represent the employees concerns to senior management as well as coordinate with employees to ensure their contribution through competence and commitment
4. As Change Leader: HR professionals should act as change leaders by contributing to process of change and help improve the organization’s capacity to do so
IR- Transformation
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INTERNATIONAL LABOUR INTERNATIONAL LABOUR ORGANIZATIONORGANIZATION
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Origins and history
The ILO was created in 1919, as part of the Treaty of Versailles that ended World War I, to reflect the belief that universal and lasting peace can be accomplished only if it is based on social justice.
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The International Labour Organization
The international Labour Organization (ILO) is a United Nations specialized agency that aims to promote social justice and universally recognized human and labour rights. It is the only worldwide organization founded on a tripartite structure with equal representation of governments, employers and workers.
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Origins and history
The Constitution was drafted between January and April, 1919, by the Labour Commission set up by the Peace Conference, which first met in Paris and then in Versailles. It resulted in a tripartite organization, the only one of its kind bringing together representatives of governments, employers and workers in its executive bodies.
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Origins and historypreamble states:
1. Whereas universal and lasting peace can be established only if it is based upon social justice;
2. And whereas conditions of labour exist involving such injustice hardship and privation to large numbers of people as to produce unrest so great that the peace and harmony of the world are imperiled; and an improvement of those conditions is urgently required;
3. Whereas also the failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve the conditions in their own countries.
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Origins and historyThe areas of improvement listed as per preamble are,
1. Regulation of the hours of work including the establishment of a maximum working day and week;
2. Regulation of labour supply, prevention of unemployment and provision of an adequate living wage;
3. Protection of the worker against sickness, disease and injury arising out of his employment;
4. Protection of children, young persons and women; 5. Provision for old age and injury, protection of the interests of workers
when employed in countries other than their own; 6. Recognition of the principle of equal remuneration for work of equal
value; 7. Recognition of the principle of freedom of association; 8. Organization of vocational and technical education, and other
measures.
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Origins and history
Early days
“Working for social justice is our assessment of the past and our mandate for the future."
Juan Somavia, Director-General
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INTERNATIONAL LABOUR INTERNATIONAL LABOUR STANDARDSSTANDARDS
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International labour standards
International labour standards have been the principal means through which the international labour organization has acted since it was created in 1919. They take the form of conventions or recommendations.
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Conventions
Conventions are international treaties that bind the member States which ratify them. By ratifying them, member States formally commit themselves to putting their provisions into effect, both in law and in practice.
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Recommendations
Recommendations are not international treaties. They establish non-obligatory guiding principles for national policy and practice. They often supplement the provisions of Conventions.
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Compliance
States that have ratified Conventions must periodically report on their application in law and in practice. They have a constitutional obligation to present reports on the measures they have taken to put those Conventions into effect. Employers organization and workers origination may present the organization with their comments on the application of convention ratified by their countries
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Compliance
The reports are examined by the Committee of Experts on the Application of Conventions and Recommendations, a body independent of the Organization, whose own report is then discussed each year by a tripartite committee of the international Labour Conference.
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Structure The International Labour Organization, which has its Headquarters in Geneva, Switzerland, accomplishes its work through three main bodies, all of which encompass the unique feature of the Organization, i.e. its tripartite structure. These bodies are:
• A General Assembly • The International Labour Conference;• An Executive Council • The Governing Body; • A permanent secretariat –the International Labour
Office.
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a. The International Labour Conference
The Conference has several main tasks: it sets international labour standards and plays a very important role in supervising their application; it acts as a forum in which social and labour questions of importance to the entire world are discussed freely; it passes resolutions that provide guidelines for the ILO’s general policy and activities.
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b. The Governing Body
The Governing Body meets three times a year, in March, June and November, in Geneva, Switzerland. It has 56 titular members: 28 represent governments, 14 represent employers and 14 represent workers. Ten of the government seats are permanently held by States of major industrial importance.
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c. The International Labour Office
The International Labour Office in Geneva, Switzerland, is the Permanent secretariat of the Organization. It is the focal point for the overall activities that it prepares under the scrutiny of the Governing Body and under the leadership of a Director-General, elected by the Governing Body for a five- year renewable term.
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OFFICIAL TITLES OF THE CONVENTIONS OFFICIAL TITLES OF THE CONVENTIONS ADOPTED ADOPTED
By The International Labour ConferenceBy The International Labour Conference
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ILO -- Conventions1 — Hours of Work (Industry) Convention, 1919
2 — Unemployment Convention, 1919
3 — Maternity Protection Convention, 1919
4 — Night Work (Women) Convention, 1919 (shelved)
5 — Minimum Age (Industry) Convention, 1919
6 — Night Work of Young Persons (Industry) Convention, 1919
7 — Minimum Age (Sea) Convention, 1920
8 — Unemployment Indemnity (Shipwreck) Convention, 1920
9 — Placing of Seamen Convention, 1920
10 — Minimum Age (Agriculture) Convention, 1921
Conventions
Pakistan Institute of Management
ILO -- Conventions11 — Right of Association (Agriculture) Convention, 1921
12 — Workmen’s Compensation (Agriculture) Convention, 1921
13 — White Lead (Painting) Convention, 1921
14 — Weekly Rest (Industry) Convention, 1921
15 — Minimum Age (Trimmers and Stokers) Convention, 1921 (shelved)
16 — Medical Examination of Young Persons (Sea) Convention, 1921
17 — Workmen’s Compensation (Accidents) Convention, 1925
18 — Workmen’s Compensation (Occupational Diseases) Convention, 1925
19 — Equality of Treatment (Accident Compensation) Convention, 1925
20 — Night Work (Bakeries) Convention, 1925 (shelved)
Conventions
Pakistan Institute of Management
ILO -- Conventions21 — Inspection of Emigrants Convention, 1926 (shelved)
22 — Seamen’s Articles of Agreement Convention, 1926
23 — Repatriation of Seamen Convention, 1926
24 — Sickness Insurance (Industry) Convention, 1927
25 — Sickness Insurance (Agriculture) Convention, 1927
26 — Minimum Wage-Fixing Machinery Convention, 1928
27 — Marking of Weight (Packages Transported by Vessels) Convention, 1929
28 — Protection against Accidents (Dockers) Convention, 1929 (shelved)
29 — Forced Labour Convention, 1930
30 — Hours of Work (Commerce and Offices) Convention, 1930
Conventions
Pakistan Institute of Management
ILO -- Conventions31 — Hours of Work (Coal Mines) Convention, 1931 (withdrawn by the ILC – decision of 15
June 2000)
32 — Protection against Accidents (Dockers) Convention (Revised), 1932
33 — Minimum Age (Non-Industrial Employment) Convention, 1932
34 — Fee-Charging Employment Agencies Convention, 1933 (shelved)
35 — Old-Age Insurance (Industry, etc.) Convention, 1933 (shelved)
36 — Old-Age Insurance (Agriculture) Convention, 1933 (shelved)
37 — Invalidity Insurance (Industry, etc.) Convention, 1933 (shelved)
38 — Invalidity Insurance (Agriculture) Convention, 1933 (shelved)
39 — Survivors’ Insurance (Industry, etc.) Convention, 1933 (shelved)
40 — Survivors’ Insurance (Agriculture) Convention, 1933 (shelved)
Conventions
Pakistan Institute of Management
ILO -- Conventions41 — Night Work (Women) Convention (Revised), 1934 (shelved)
42 — Workmen’s Compensation (Occupational Diseases) Convention (Revised), 1934
43 — Sheet-Glass Works Convention, 1934 (shelved)
44 — Unemployment Provision Convention, 1934 (shelved)
45 — Underground Work (Women) Convention, 1935
46 — Hours of Work (Coal Mines) Convention (Revised), 1935 (withdrawn by the ILC – decision of 15 June 2000)
47 — Forty-Hour Week Convention, 1935
48 — Maintenance of Migrants’ Pension Rights Convention, 1935 (shelved)
49 — Reduction of Hours of Work (Glass-Bottle Works) Convention, 1935 (shelved)
50 — Recruiting of Indigenous Workers Convention, 1936 (shelved)
Conventions
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ILO -- Conventions51 — Reduction of Hours of Work (Public Works) Convention, 1936 (withdrawn by the ILC
– decision of 15 June 2000)
52 — Holidays with Pay Convention, 1936
53 — Officers’ Competency Certificates Convention, 1936
54 — Holidays with Pay (Sea) Convention, 1936
55 — Shipowners’ Liability (Sick and Injured Seamen) Convention, 1936
56 — Sickness Insurance (Sea) Convention, 1936
57 — Hours of Work and Manning (Sea) Convention, 1936
58 — Minimum Age (Sea) Convention (Revised), 1936
59 — Minimum Age (Industry) Convention (Revised), 1937
60 — Minimum Age (Non-Industrial Employment) Convention (Revised), 1937 (shelved)
Conventions
Pakistan Institute of Management
ILO -- Conventions61 — Reduction of Hours of Work (Textiles) Convention, 1937 (withdrawn by the ILC – decision of 15
June 2000)
62 — Safety Provisions (Building) Convention, 1937
63 — Convention concerning Statistics of Wages and Hours of Work, 1938
64 — Contracts of Employment (Indigenous Workers) Convention, 1939 (shelved)
65 — Penal Sanctions (Indigenous Workers) Convention, 1939 (shelved)
66 — Migration for Employment Convention, 1939 (withdrawn by the ILC – decision of 15 June 2000)
67 — Hours of Work and Rest Periods (Road Transport) Convention, 1939 (shelved)
68 — Food and Catering (Ships’ Crews) Convention, 1946
69 — Certification of Ships’ Cooks Convention, 1946
70 — Social Security (Seafarers) Convention, 1946
Conventions
Pakistan Institute of Management
ILO -- Conventions71 — Seafarers’ Pensions Convention, 1946
72 — Paid Vacations (Seafarers) Convention, 1946
73 — Medical Examination (Seafarers) Convention, 1946
74 — Certification of Able Seamen Convention, 1946
75 — Accommodation of Crews Convention, 1946
76 — Wages, Hours of Work and Manning (Sea) Convention, 1946
77 — Medical Examination of Young Persons (Industry) Convention, 1946
78 — Medical Examination of Young Persons (Non-Industrial Occupations) Convention, 1946
79 — Night Work of Young Persons (Non-Industrial Occupations) Convention, 1946
80 — Final Articles Revision Convention, 1946
Conventions
Pakistan Institute of Management
ILO -- Conventions81 — Labour Inspection Convention, 1947
Protocol of 1995 to the Labour Inspection Convention, 1947
82 — Social Policy (Non-Metropolitan Territories) Convention, 1947
83 — Labour Standards (Non-Metropolitan Territories) Convention, 1947
84 — Right of Association (Non-Metropolitan Territories) Convention, 1947
85 — Labour Inspectorates (Non-Metropolitan Territories) Convention, 1947
86 — Contracts of Employment (Indigenous Workers) Convention, 1947 (shelved)
87 — Freedom of Association and Protection of the Right to Organise Convention, 1948
88 — Employment Service Convention, 1948
89 — Night Work (Women) Convention (Revised), 1948 Protocol of 1990 to the Night Work (Women) Convention (Revised), 1948
90 — Night Work of Young Persons (Industry) Convention (Revised), 1948
Conventions
Pakistan Institute of Management
ILO -- Conventions91 — Paid Vacations (Seafarers) Convention (Revised), 1949 (shelved)
92 — Accommodation of Crews Convention (Revised), 1949
93 — Wages, Hours of Work and Manning (Sea) Convention (Revised), 1949
94 — Labour Clauses (Public Contracts) Convention, 1949
95 — Protection of Wages Convention, 1949
96 — Fee-Charging Employment Agencies Convention (Revised), 1949
97 — Migration for Employment Convention (Revised), 1949
98 — Right to Organise and Collective Bargaining Convention, 1949
99 — Minimum Wage Fixing Machinery (Agriculture) Convention, 1951
100 — Equal Remuneration Convention, 1951
Conventions
Pakistan Institute of Management
ILO -- Conventions101 — Holidays with Pay (Agriculture) Convention, 1952
102 — Social Security (Minimum Standards) Convention, 1952
103 — Maternity Protection Convention (Revised), 1952
104 — Abolition of Penal Sanctions (Indigenous Workers) Convention, 1955 (shelved)
105 — Abolition of Forced Labour Convention, 1957
106 — Weekly Rest (Commerce and Offices) Convention, 1957
107 — Indigenous and Tribal Populations Convention, 1957
108 — Seafarers’ Identity Documents Convention, 1958
109 — Wages, Hours of Work and Manning (Sea) Convention (Revised), 1958
110 — Plantations Convention, 1958 Protocol of 1982 to the Plantations Convention, 1958
Conventions
Pakistan Institute of Management
ILO -- Conventions111 — Discrimination (Employment and Occupation) Convention, 1958
112 — Minimum Age (Fishermen) Convention, 1959
113 — Medical Examination (Fishermen) Convention, 1959
114 — Fishermen’s Articles of Agreement Convention, 1959
115 — Radiation Protection Convention, 1960
116 — Final Articles Revision Convention, 1961
117 — Social Policy (Basic Aims and Standards) Convention, 1962
118 — Equality of Treatment (Social Security) Convention, 1962
119 — Guarding of Machinery Convention, 1963
120 — Hygiene (Commerce and Offices) Convention, 1964
Conventions
Pakistan Institute of Management
ILO -- Conventions121 — Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980]
122 — Employment Policy Convention, 1964
123 — Minimum Age (Underground Work) Convention, 1965
124 — Medical Examination of Young Persons (Underground Work) Convention, 1965
125 — Fishermen’s Competency Certificates Convention, 1966
126 — Accommodation of Crews (Fishermen) Convention, 1966
127 — Maximum Weight Convention, 1967
128 — Invalidity, Old-Age and Survivors’ Benefits Convention, 1967
129 — Labour Inspection (Agriculture) Convention, 1969
130 — Medical Care and Sickness Benefits Convention, 1969
Conventions
Pakistan Institute of Management
ILO -- Conventions131 — Minimum Wage Fixing Convention, 1970
132 — Holidays with Pay Convention (Revised), 1970
133 — Accommodation of Crews (Supplementary Provisions) Convention, 1970
134 — Prevention of Accidents (Seafarers) Convention, 1970
135 — Workers’ Representatives Convention, 1971
136 — Benzene Convention, 1971
137 — Dock Work Convention, 1973
138 — Minimum Age Convention, 1973
139 — Occupational Cancer Convention, 1974
140 — Paid Educational Leave Convention, 1974
Conventions
Pakistan Institute of Management
ILO -- Conventions151 — Labour Relations (Public Service) Convention, 1978
152 — Occupational Safety and Health (Dock Work) Convention, 1979
153 — Hours of Work and Rest Periods (Road Transport) Convention, 1979
154 — Collective Bargaining Convention, 1981
155 — Occupational Safety and Health Convention, 1981 Protocol of 2002 to the Occupational Safety and Health Convention, 1981
156 — Workers with Family Responsibilities Convention, 1981
157 — Maintenance of Social Security Rights Convention, 1982
158 — Termination of Employment Convention, 1982
159 — Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983
160 — Labour Statistics Convention, 1985
Conventions
Pakistan Institute of Management
ILO -- Conventions161 — Occupational Health Services Convention, 1985
162 — Asbestos Convention, 1986
163 — Seafarers’ Welfare Convention, 1987
164 — Health Protection and Medical Care (Seafarers) Convention, 1987
165 — Social Security (Seafarers) Convention (Revised), 1987
166 — Repatriation of Seafarers Convention (Revised), 1987
167 — Safety and Health in Construction Convention, 1988
168 — Employment Promotion and Protection against Unemployment Convention, 1988
169 — Indigenous and Tribal Peoples Convention, 1989
170 — Chemicals Convention, 1990
Conventions
Pakistan Institute of Management
ILO -- Conventions171 — Night Work Convention, 1990
172 — Working Conditions (Hotels and Restaurants) Convention, 1991
173 — Protection of Workers’ Claims (Employer’s Insolvency) Convention, 1992
174 — Prevention of Major Industrial Accidents Convention, 1993
175 — Part-Time Work Convention, 1994
176 — Safety and Health in Mines Convention, 1995
177 — Home Work Convention, 1996
178 — Labour Inspection (Seafarers) Convention, 1996
179 — Recruitment and Placement of Seafarers Convention, 1996
180 — Seafarers’ Hours of Work and the Manning of Ships Convention, 1996
Conventions
Pakistan Institute of Management
ILO -- Conventions181 — Private Employment Agencies Convention, 1997
182 — Worst Forms of Child Labour Convention, 1999
183 — Maternity Protection Convention, 2000
184 — Safety and Health in Agriculture Convention, 2001
185 — Seafarers’ Identity Documents Convention (Revised), 2003
— Maritime Labour Convention, 2006 [this Convention does not have a number]
187 — Promotional Framework for Occupational Safety and Health Convention, 2006
188 — Work in Fishing Convention, 2007
Conventions
Human Rights andLabor Rights in Pakistan
The part of Sustainability is "Social Equity” which Covers
Protection of Human / Labor rights under constitution of Pakistan
• Article 11 of the constitution prohibit all forms of slavery, forced labor and child labor.
• Article 17 provide for a fundamental right to exercise the freedom of association and the right to form union.
• Article 18 prescribes the rights of its citizen to enter upon any lawful profession or occupation and to conduct any lawful trade or business
• Article 25 lays down the right to equality before the law and prohibition of discrimination on the grounds of sex alone.
• Article 37(e) makes provisions for securing just and human conditions of work, ensuring that children and women are not employed in vacations unsuited to their age or sex, and for maternity benefit for women in employment.
• LABOR POLICY 1955• LABOR POLICY 1959• LABOR POLICY 1969• LABOR POLICY 1972• LABOR POLICY 1999
• LABOR POLICY 2002• LABOR POLICY 2010
Labor Policies
Formation and amendments in Labor Laws are as per the recommendations in the labor policies. Recommendations are based on the tripartite consensus among all the parties.
1) Prohibition of slavery, forced labor, trafficking in human being;2) Freedom of assembly if peaceful, subject to reasonable
restrictions under the law and in the interest of public order;3) Freedom of association or unions subject to reasonable
restrictions under the law and in the interest of public order;4) Freedom of trade, business and profession;5) Freedom of expression;6) Equality of citizens, non-discrimination on the basis of gender
etc;7) Promotion of social justice and eradication of evil;8) Promotion of social and economic well being of the people.
Constitutional provisions in labor policies
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MAIN FEATURES OF LABOR POLICY 2010
• Legal framework for the formation of trade union• Rationalization and consolidation of labor laws
– Laws relating to industrial relations.– Laws relating to employment and services conditions– Laws relating to occupational safety and health– Laws relating to human resource development– Laws relating to labour welfare and social security
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MAIN FEATURES OF LABOR POLICY 2010
• Universal / voluntary coverage• Issuance of smart cards• Wages• Woman empowerment and gender equality• Woman workers• Eradication of bonded labour• Construction labour• Contractual employee• Child labour• Agriculture labour• Health and safety
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MAIN FEATURES OF LABOR POLICY 2010
• Expansion in scope of workers welfare fund• Amendment in Social Security ordinance• Amendment in Employees’ Old-Age benefit Act • Skill development and employment• Employment• Person with disability• Export of man power
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COMPLIANCE UNDER LABOR LAWS
There are three categories of laws, firstly, the law that regulates the relations between employer and employee; secondly those laws that provide for compulsory levies and thirdly those that provide for minimum standards for employees; the same are as follows:
• Labor Laws Setting Standards for Work Place;• Labor Laws regulating the Relation of Employer and
Employee • Labor Laws Assigning Levies; • Labor Laws Assigning Standards for Wages;
LABOUR LAWS1. Factories Act, 19342. Payment of Wages Act.
1936
7.Industrial Relations ACT , 2008
3.Apprenticeship ordinance, 1962
8.The Payment of Wages Act 1936
4.Provincial Employees Social Security Ordinance 1965
9.Cost Of Living Relief Act 1973.
5.Standing Orders Ordinance, 1968
10.The Minimum Wages Ordinance1961
6.Companies Profits (Workers Participation) Act, 1968
11.Employees Old Age Benefit Act 1976.
18th Constitutional Amendment
After 18th Amendment, matter related to welfare, labour and trade union etc are the subject of Province and the authority to legislate has been transferred to the Province. This was mentioned under the concurrent legislative list at item no. 26 & 27.
PROVINCIAL ASSEMBLY OF THE PUNJAB, NOTIFICATION DATED 11 FEBRUARY,
2012
PROVINCIAL LABOUR LAWSThe Punjab Bounded LabourSystem (Abolition)(Amendment) ACT 2012.
The Punjab Maternity Benefit(Amendment) Act 2012ACT XXII of 2012
The Employment (Record ofServices) (Amendment)ACT XI of 2011.
The Factories (Amendment) Act,2012 ACT XIV of 2012
The Punjab Workers Children(Education) (Amendment) Act, 2012
The Punjab Industrial Relations Act 2010 (XIX of 2010)
The Employment of Children(Amendment) Act 2011.ACT X of 2011
The Punjab Industrial &Commercial Employment(Standing Orders) Amendment)ACT 2012 ACT XXI of 2012.
The Road Transport Workers(Amendment) Act 2012.ACT XX 2012
The Minimum Wages(Amendment) ACT 2012.ACT XXIII of 2012Labor Laws Instructor: Muhammad Akram Chaudhry 84
What is industrial relation or employees relation?
• Relation between employer and workman of the organization / industry.
• Concept of Industrial Relations:The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’. “Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”. By “relations” we mean “the relationships that exist within the industry between the employer and his workmen.”
Industrial Relations
• Industrial relations is used to denote the collective relationships between management and the workers. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade unionism, collective bargaining, workers’ participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct
Industrial Relations
• Industrial Relations involve attempts at arriving at solutions – between the conflicting objectives and values;– between the profit motive and social gain; – between discipline and freedom, – between authority and industrial democracy; – between bargaining and co-operation; and – between conflicting interests of the individual, the
group and the community
Industrial Relations
• Industrial Relations affect not merely the interests of the two participants- labor and management, but also the economic and social goals to which the State addresses itself. To regulate these relations in socially desirable channels is a function, which the State is in the best position to perform
Factors of Industrial Relations
Industrial Relations encompasses all such factors that influence behavior of people at work. A few such important factors are below
1. Institution It includes government, employers, trade unions,
union federations or associations, government bodies, labor courts, tribunals and other organizations which have direct or indirect impact on the industrial relations systems.
Factors of Industrial Relations
2. Characters It aims to study the role of workers unions
and employers’ federations officials, shop stewards, industrial relations officers/ manager, mediator/conciliators / arbitrator, judges of labor court, tribunal etc.
Factors of Industrial Relations
3. Methods It focus on collective bargaining, workers’
participation in the industrial relations schemes, discipline procedure, grievance redressal machinery, dispute settlements machinery working of closed shops, union reorganization, organizations of protests through methods like revisions of existing rules, regulations, policies, procedures, hearing of labor courts, tribunals etc.
Factors of Industrial Relations4. Contents It includes matter pertaining to employment
conditions like – Pay / Wages – Hours of works – Leave with Pay – Health and safety – Disciplinary actions – Lay-off, dismissals retirements etc., laws relating to such
activities – Regulations governing labor welfare, social security, EOBI,
Workmen Compensation– Industrial relations issues concerning with workers’
participation in management, collective bargaining, etc.
Industrial Relations System• An Industrial Relations system consists of the whole gamut of
relationships between employees and employees and employers which are managed by the means of conflict and cooperation.
A sound Industrial Relations system is one in which relationships between management and employees (and their representatives) on the one hand, and between them and the State on the other, are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation, productivity and development of the employee and generates employee loyalty and mutual trust.
Main Actors in the IR System Three main Actors/Parties are directly involved in industrial relations:
• Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. Management can also affect workers’ interests by exercising their right to relocate, close or merge the factory or to introduce technological changes.
• Employees: Workers seek to improve the terms and conditions of their employment. They exchange views with management and voice their grievances. They also want to share decision making powers of management. Workers generally unite to form unions against the management and get support from these unions.
• Government: The central and state government influences and regulates industrial relations through laws, rules, agreements, awards of court . It also includes third parties, Labor courts and Applet tribunal.
Industrial Relations System
Scope of Industrial Relations
The concept of industrial relations has a very wide meaning and connotation. In the narrow sense, it means that the employer, employee relationship confines itself to the relationship that emerges out of the day to day association of the management and the labor. In its wider sense, industrial relations include the relationship between an employee and an employer in the course of the running of an industry and may project it to spheres, which may transgress to the areas of quality control, marketing, price fixation and disposition of profits among others.
Industrial Relations system The main issues involved in Industrial Relations include the
following:
• Collective bargaining
• Machinery for settlement of industrial disputes
• Standing orders ordinance
• Workers participation in management
• Unfair labor practices
Importance of Industrial Relations• Uninterrupted Production
The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.
Importance of Industrial Relations
Reduction in Industrial Disputes Good industrial relations reduce the industrial
disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production
Importance of Industrial RelationsHigh Morale
Good industrial relations improve the morale of the employees. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.
Importance of Industrial Relations
Mental Revolution
The main object of industrial relation is a complete mental revolution of workers and employees. The industrial peace lies ultimately in a transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand, workers must recognize employer’s authority. It will naturally have impact on production because they recognize the interest of each other.
Importance of Industrial Relations
Reduced Wastage
Good industrial relations are maintained on the basis of cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.
Importance of Industrial Relations Thus, it is evident that good Industrial Relations is the basis of
higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.
Main objective of Industrial Relations The main objectives of industrial relations system are:
– To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.
– To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.
– To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.
Main objective of Industrial Relations• To establish and promote the growth of an industrial democracy based on
labor partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.
• To eliminate or minimize the number of strikes, lockouts and gheraos by
providing reasonable wages, improved living and working conditions, said fringe benefits.
• To improve the economic conditions of workers in the existing state of industrial managements and political government.
• Socialization of industries by making the state itself a major employer
• Vesting of a proprietary interest of the workers in the industries in which they are employed.
What is industrial relation ordinance?
• The law relating to formation of trade union, regulation and improvement of relation between employer and workman and avoidance and settlement of any difference or dispute arising between them.
Basic function of industrial relation in the organization
• To coordinate and guide harmonial relationship with the CBA to maintain industrial peace in the organization.
Basic function of industrial relation in the organization
• To maintain cordial relation with Government departments like labour department, social security and EOBI.
Basic function of industrial relation in the organization
• To perform the role of occupier and has ultimate control over the affairs of the organization on legal and employee issues.
Basic function of industrial relation in the organization
• To ensure implementation of all relevant labour laws with in the organization.
Conflict between IR and HR
• IR is essentially collective in out look i.e. relation between employer and CBA union or authorized representative of the workers / employees.
• HR can deal on individual basis.
Industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations,
Human resource management is a separate, largely
distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers.
Conflict between IR and HR• IR has a large component of rule which govern the
employment relationship prescribed for instance by the state through laws, courts or tribunal or by the parties through collective bargaining.
• HR does not deal with such rules and procedures but with the best way of using human resource through range of initiative involving proper selection and recruitment, induction appraisal, training and development leadership and motivation etc.
Conflict between IR and HR
• IR has both a Bipartite and Tripartite dimension.
• HR has less scope for Tripartite.
Conflict between IR and HR
• IR: Pay / wages are largely based on job evaluation, condition are bargained and labour management relations are established through collective bargaining agent.
• HR: Pay and remuneration based on performance evaluation of the individual.
Conflict between IR and HR
• IR is more on piece meal approach.
• HR is more on integrated approach, which predicts the corporate strategy of the organization.
Terms of Employment Negotiable Through CBA
Process of collective bargaining
Factors for Negotiations It includes matter pertaining to employment conditions
like – Pay / Wages / Allowances– Hours of works – Leave with Pay – Health , safety, environments and work place discipline – Disciplinary actions – Lay-off, termination and retrenchment etc., laws relating to
such activities – Regulations governing labor welfare, canteen, fair price shop,
social security, EOBI, Workmen Compensation, etc– Industrial relations issues concerning with workers’
participation in management, collective bargaining, etc.
Section-17. Unfair labour practices on the part of employers
Employer / Management can not
(f) compel or attempt to compel any office-bearer of the collective bargaining agent to arrive at a settlement by using intimidation, coercion, pressure, threat, confinement to a place, physical injury, disconnection of water, power and telephone facilities and such other methods;
Section18. Unfair labour practices on the part of workmen
CBA union / Workers can not
(d) compel or attempt to compel the employer to accept any demand by using intimidation, coercion, pressure, threat, confinement to, or ouster from a place, dispossession, assault, physical injury, disconnection of telephone, water or power facilities or such other methods; or
Section 34. Negotiations relating to differences and disputes
(1) If at any time, an Employer or a Collective Bargaining Agent finds that an industrial dispute has arisen or is likely to arise, the employer or the collective bargaining agent, may communicate his or its views in writing either to the Conciliator or to the other party and if the views are communicated to the Conciliator, a copy of the views shall also be sent to the other party.
(2) On receipt of the communication under sub-section (1), the Conciliator or the party receiving it, shall try to settle the dispute by bilateral negotiations within ten days of receipt of the communication or within such further period as may be agreed upon by the parties and, if the parties reach a settlement, a memorandum of settlement shall be recorded in writing and signed by both the parties and a copy thereof shall be forwarded to the conciliator and the authorities mentioned in clause (xxvii) of section 2.
Section 34. Negotiations relating to differences and disputes
(3) Where a settlement is not reached between the employer and the collective bargaining agent or, if the views of the employer or collective bargaining agent have been communicated under sub-section (1) to the Council, there is a failure of bilateral negotiations in the Council, the employer or the collective bargaining agent may, within seven days from the end of the period referred to in sub-section (2), serve on the other party to the dispute a notice of lock-out or strike in accordance with the provisions of this Act.
Section 34. Negotiations relating to differences and disputes
Section 35. Conciliator
The Government shall, by notification in the official Gazette, appoint as many persons as it considers necessary to be the conciliators for the purposes of this Act and shall specify in the notification the area within which, or the class of establishments or industries in relation to which, each one of them shall perform his functions.
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Section 64. Penalty for unfair labour practices
(2) A person(Employer) who contravenes the provisions of section 17, he shall be liable to fine which may extend to thirty thousand rupees but not less than ten thousand rupees.
(3) A person(CBA Union) who contravenes the provisions of section 18, he shall be liable to pay fine which may extend to twenty thousand rupees but not less than five thousand rupees.
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Section 65. Penalty for committing breach of settlement
A person who commits any breach of any term of any settlement, award or decision which is binding on him under this Act, he shall be punished–(a) for the first offence, with fine which may extend to twenty thousand rupees; and(b) for each subsequent offence; with fine which may extend to fifty thousand rupees.
Importance of collective bargaining
• Collective bargaining includes not only negotiations between the employers and unions but also includes the process of resolving labor-management conflicts. Thus, collective bargaining is, essentially, a recognized way of creating a system of industrial jurisprudence. It acts as a method of introducing civil rights in the industry, that is, the management should be conducted by rules rather than arbitrary decision making. It establishes rules which define and restrict the traditional authority exercised by the management.
Importance of collective bargaining• Importance to employees
• Collective bargaining develops a sense of self respect and responsibility among the employees.
• It increases the strength of the workforce, thereby, increasing their bargaining capacity as a group.
• Collective bargaining increases the morale and productivity of employees.
• It restricts management’s freedom for arbitrary action against the employees. Moreover, unilateral actions by the employer are also discouraged.
Importance of collective bargaining
• Effective collective bargaining machinery strengthens the trade unions movement.
• The workers feel motivated as they can approach the management on various matters and bargain for higher benefits.
• It helps in securing a prompt and fair settlement of grievances. It provides a flexible means for the adjustment of wages and employment conditions to economic and technological changes in the industry, as a result of which the chances for conflicts are reduced.
Importance of collective bargaining• Importance to employers
• It becomes easier for the management to resolve issues at the bargaining level rather than taking up complaints of individual workers.
• Collective bargaining tends to promote a sense of job security among employees and thereby tends to reduce the cost of labor turnover to management.
• Collective bargaining opens up the channel of communication between the workers and the management and increases worker participation in decision making.
• Collective bargaining plays a vital role in settling and preventing industrial disputes.
Importance of collective bargaining• Importance to society
• Collective bargaining leads to industrial peace in the country
• It results in establishment of a harmonious industrial climate which supports which helps the pace of a nation’s efforts towards economic and social development since the obstacles to such a development can be reduced considerably.
• The discrimination and exploitation of workers is constantly being checked.
• It provides a method or the regulation of the conditions of employment of those who are directly concerned about them.
Terms of Employment• Increase in Basic Pay• Revision of Pay Scale• Conveyance Allowance• House Rent Allowance• Attendance Allowance• Recreational Allowance• Night Shift Allowance• Shoes Allowance• Emergency Medical Allowance
Terms of Employment• Supervisory Allowance• Funeral Expenses• Long Services Awards• Packages Educational Scholarships• Annual Leaves Accumulation• Fair Price Shop Facility• Motor Cycle Loan• Hajj facility• Out Door Duty Meal Expenses
Labor Laws Instructor: Muhammad Akram Chaudhry
The Factories Act
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Purpose of the ActThe purpose of the Act is to regulate and standardize the condition in factories falling under the Act. The categories regulated are,
• Basic standards for health and safety • Disposal of waste • Ventilation and temperature • Dust and fume • Overcrowding • Lighting • Availability of drinking water
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Purpose of the Act
• Latrines and urinals• Spittoons• Compulsory vaccination • Provision of canteens • Precaution in case of fire • Fencing of machinery • Working hours. • Appointment of welfare officer
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Purpose of the Act
• Work on or near machinery in motion• Employment of young persons on dangerous
machines• Striking gear and devices for cutting off power• Self-acting machines• Casing of new machinery• Prohibition of employment of women and
children near cotton openers
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Purpose of the Act
• Cranes and other lifting machinery• Hoists and lifts• Revolving machinery• Pressure plant• Floors, stairs and means of access• Pits, sumps, opening in floors, etc• Excessive weights• Protection of eyes
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Purpose of the Act• Power to require specifications of defective parts
or tests of stability• Safety of building, machinery and manufacturing
process• Precautions against dangerous fumes• Explosive or inflammable dust, gas, etc• Power to exclude children• Notice of certain accidents
This law is very comprehensive and covers almost all the aspect of a healthy working environment.
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Applicability of the Act
The law applies to all factories employing 10 or more workers.
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Definition of Factory
“Factory” means any premises, including the precincts thereof, whereon ** [ten] or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on *** [or is ordinarily carried on whether with or without the aid of power] but does not include a mine, subject to the operation of the Mines Act, 1923 (IV of 1923);
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Definition of Worker under the Act:
Means a person employed directly or indirectly or through an agency whether for wages or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for a manufacturing process, but does not include any person solely employed in any other kind of work whatsoever, incidental to or connected with the subject of manufacturing process, but does not include any person solely employed in a clerical capacity in any room or place where no manufacturing process is being carried out.
Labor Laws Instructor: Muhammad Akram Chaudhry
The Shops and Establishments Ordinance, 1965
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Purpose of the Ordinance
The purpose of this Ordinance is to provide basic standards relating to payment of wages, working hours, overtime, weekly holidays, sick leave, festival holidays, termination of employment and other ancillary matters.
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Applicability
The law applies to all the establishments. However, the government may grant exemption to any establishment from the operation of the provision of this Ordinance.
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Definition of Establishment
“Establishment” means a shop, commercial establishment, industrial establishment, private dispensary, maternity home, residential hotel, restaurant, eating house, café, cinema, theatre, circus, or other place of public amusement or entertainment, and such other establishments or class thereof as Government may, by notification in the official Gazette, declare to be establishments for the purposes of this Ordinance;
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Definition of Commercial Establishment
“Commercial establishment” means an establishment which carries on any business, trade or profession or any work in connection with, or incidental or ancillary to, any business, trade or profession.
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Definition of Industrial Establishment
“Industrial establishment” means a workshop or other establishment in which the work of making, altering, repairing, finishing or packing or otherwise treating any article or substance with a view to its use, sale, transport, delivery, or disposal is carried on, or where any such service is rendered to a customer, and includes such other class or classes of establishments as Government may, by notification in the official Gazette, declare to be the industrial establishments for the purposes of this Ordinance, but does not include a factory;
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Definition of Shop
“Shop” means any premises used wholly or in part for the wholesale or retail sales of commodities or articles, either for cash or on credit, or where services are rendered to customers, and includes an office, a store room, godown, warehouse or place of work, whether in the same premises or otherwise, mainly used in connection with such trade or business;
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Registration under the Act
Every establishment, under the Act, other than a one man shop and factories employing clerical staff within the factory premises, is required to be registered with the Deputy Chief Inspector for the area within which such establishment is situated.
Labor Laws Instructor: Muhammad Akram Chaudhry
THE WEST PAKISTAN INDUSTRIAL AND COMMERCIAL EMPLOYMENT (STANDING
ORDERS) ORDINANCE, 1968(W.P. Ordinance VI of 1968)
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Short title, extent and commencement every industrial establishment or commercial establishment wherein twenty or more workmen are employed, directly or through any other person whether on behalf of himself or any other person, or were so employed on any day during the preceding twelve months;
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Classification of workmen
(a) Workmen shall be classified as–(1) permanent,(2) probationers,(3) badlis,(4) temporary,(5) apprentices.(6) contract worker
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W.P. Industrial & Commercial Employment
ApplicabilityApplicable to all industrial and commercial establishment employing 20 or more workmen on any day during the preceding twelve months. However for smaller industries establishments employing between 20 to 49 workman on any day during the preceding twelve months four exemptions form the application of S.O 10-B,11,12(6) and (8), 15 have been granted, once the number of workmen is at 50 or more in any industrial establishment employed on any day of the preceding twelve moths, all provisions of the ordinance are applicable without any exception.
S.O.10-B Compulsory Group Insurance.
S.O.11 Stoppage of Work / Lay off.
S.O.12(6) & (8) Payment of Gratuity
S.O15 Punishment – From Misconduct, Enquiry Procedure, Disciplinary Actions (Final / Dismissal)
(Standing Orders) Ordinance 1968
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[10-C. Payment of Bonus:-(1) Every employer making profit in any year shall pay 2[for that year within
three months of the closing] that year to the workmen who have been in his employment in that year for a continuous period of not less than ninety days a bonus in addition to the wages payable to such workmen.
(2) The amount of the bonus payable shall –(a) If the amount of the profit is not less than the aggregate of one month’s wages of the workmen employed, be not less than the amount of such aggregate, subject to the maximum of thirty
percent of such profit;
W.P. Industrial & Commercial Employment
(Standing Orders) Ordinance 1968
Cont..
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3[Illustration 1.-- If the profit is Rs. 1,20,000.00 and the aggregate of the workmen is Rs. 30,000.00, the amount of bonus payable shall be not less than the aggregate of one month’s wages, that is to say, Rs. 30,000.00
Illustration 2.-- If the profit is Rs. 30,000.00 and the aggregate of one month’s wages of the workmen is also Rs. 30,000.00, the amount of bonus payable shall be not less than the thirty percent of the profit that is to say, Rs. 9,000.00].
(b) If the amount of the profit is less than the aggregate of referred to in paragraph (a), be not less than fifteen percent of such profit.
W.P. Industrial & Commercial Employment(Standing Orders) Ordinance 1968
Cont..
Disciplinary action in case of misconduct
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Misconduct• Something done or omitted to be done, which a man
of Ordinary prudence would not have done or would not have omitted to do.
• Applicable: (S.O-15) General terms-20 or more workers commercial-20 or more.Industrial-50 or more. Compliance mandatory. Jurisdiction of Labour Court-Fair Enquiry.Punishment-quantem-commensurate with nature of fence.
Where Law not Applicable-natural Justice not to be condemned unheard whether a legal provision or not (S.C).
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The following Acts and Omission shall be treated as misconduct
a) Willful insubordination or disobedience, whether alone or in combination with others, to any lawful and reasonable order of a superior.
b) Theft, fraud, or dishonesty in connection with the employer’s business or property.
c) Willful damage to or loss of employer’s goods or property.
d) Taking or giving bribes or any illegal gratification.
e) Habitual absence without leave or absence without leave for more than ten day.
f) Habitual late attendance.
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g) Habitual breach of any law applicable to the establishment.
h) Riotous or disorderly behavior during working hours at the establishment or any act subversive of discipline.
i) Habitual negligence or neglect of work.
j) Frequent repetition of any act of omission.
k) Striking work or inciting others to strike in contravention of the provision of any law, or rule having the force of law.
l) Go – slow
The following Acts and Omission shall be treated as misconduct
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THE PROVINCIAL THE PROVINCIAL EMPLOYEES’ SOCIAL EMPLOYEES’ SOCIAL
SECURITY ORDINANCE, SECURITY ORDINANCE, 19651965
(W.P. Ord. X of 1965) (W.P. Ord. X of 1965)
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An Ordinance to introduce a scheme of Social Security for providing benefits to certain employees or their dependents in the event of sickness, maternity, employment, injury or death and for matters ancillary thereto
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Provincial Employees Social Security
Benefits :Sickness: A condition requires / necessitates
medical treatment and absenteeism from work.
Maternity : Twelve weeks, not more than six weeks shall precede the expected date of confinement.
Death grant: Rs. 5000 / for funeral.Injury benefit: Daily rate of wages for a max 180
days.
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Provincial Employees Social Security
Disablement pension: On expiration of injury benefit as per rates notified.
Disablement gratuity: Minor disablement rates notified.
Survivors Pension: Death as result of employment injury, payable to dependents.
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Payment Schedule for Less Than 50 Employees
Fixed slab system for units employing up to 49 employees within the preview of Social Security.
• 01 To 10 Employees Rs. 10,000/- P.A.• 11 To 20 Employees Rs. 25,000/- P.A.• 21 To 50 Employees Rs. 50,000/- P.A.
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ScheduleRate of Social Security Contribution as proportionate of the employee’s
Wages
Class of Class of EmployeesEmployees
Social Security ContributionsSocial Security ContributionsEmployer’s Employer’s ContributioContributio
nn
Employee’s Employee’s ContributioContributio
nn
TotalTotal
11 22 33 44RemuneratRemunerated at a ed at a wage up to wage up to Rs. 15000/-Rs. 15000/-
6%6% NilNil 6%6%
Labor Laws Instructor: Muhammad Akram Chaudhry 169
Revised Social Security Contributions underEmployees’ Social Security (Amendment) Ordinance, 2002 (CIV of 2002)
(October 29, 2002)
Type of Scheme
Max. Employer’s
Contributionpm
Max. Worker’s
Contributionpm
TotalContribution
pm
Normal of Regular Scheme[section 20 (1), proviso](6% of max. Rs. 15000/ wages per month or Rs 600/ per day)
Rs. 900 --N/A-- Rs. 900
Labor Laws Instructor: Muhammad Akram Chaudhry 170
EMPLOYEES' OLD‑AGE EMPLOYEES' OLD‑AGE BENEFITS ACT, 1976BENEFITS ACT, 1976
Labor Laws Instructor: Muhammad Akram Chaudhry 171
ACT No. XIV OF 1976
An Act to repeal and re enact the Law relating of ‑Old Age benefits for the persons employed in ‑industrial, commercial and other organizations.
Labor Laws Instructor: Muhammad Akram Chaudhry 172
Section-1. Short Title, Extent, Commencement and Application
It applies to every industry or establishment.(i) wherein Five or more persons are employed by the employer, directly or through any other person, whether on behalf of himself or any other person, or were so employed on any day during the preceding twelve months, and shall continue to apply to every such industry or establishment even if the number of persons employed therein is, at any time after this Act becomes applicable to it, reduced to less than Five; or
Labor Laws Instructor: Muhammad Akram Chaudhry 173
Section-1. Short Title, Extent, Commencement and Application
(i-a) wherein less than Five persons are employed if such industry or establishment voluntarily applies for application of this Act and this Act shall apply to such industry or establishment for the date of submission of an application by such industry or establishment; or (ii) which the Federal Government may, by notification in the official Gazette, specify in this behalf.
Labor Laws Instructor: Muhammad Akram Chaudhry 174
E.O.B.I.
BENEFITS• Old age pension: Male over Fifty Five years / female
over Fifty years. Contribution paid for not less than fifteen years.
• Old age grant: Not entitled for pension . Contribution less than 5 years but more than 2 years.
• Survivor pension: Death , 36 months insurable employment.
• Invalidity pension: Not less than 5 years contribution paid.
Labor Laws Instructor: Muhammad Akram Chaudhry 175
CONTRIBUTION
Type of Scheme Max. Employer’s Max. Worker’s Total contribution contribution contribution pm (sec. 9) pm (sec. 9-B) pm
Normal Scheme Rs. 400 Rs. 60 Rs. 460
(5% of max. Rs. 8,000/- wages)
Self-Assessment Scheme Rs. 400 Rs. 60 Rs. 460
(optional scheme, flat rate irrespectiveof employee’s wages, no inspection for two years)
Labor Laws Instructor: Muhammad Akram Chaudhry 176
Workmen compensationAct , 1923
Labor Laws Instructor: Muhammad Akram Chaudhry 177
Workmen’s Compensation Act 1923
• Applies: Workman employed on monthly wages not exceeding six thousand rupees.
• Compensation: Personal injury by accident in the course of employment. Total or partial disablement.– Partial disablement: Temporary reducing earning
capacity.– Total disablement: Incapacitates wholly capable of
doing at the time of accident.
Labor Laws Instructor: Muhammad Akram Chaudhry 178
Applicability
An Act to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident. WHEREAS it is expedient to provide for the payment by certain classes of employers to their workmen of compensation for injury by accident; it is hereby enacted as follows :-
Labor Laws Instructor: Muhammad Akram Chaudhry 179
Workmen’s Compensation Act 1923
• Exceptions:– Drunk / Drugs influence.– Violation of rule securing safety– Willful removal of safety guard / device.
• Rate of compensation:– Rs. 200,000(Death and permanent total disablement)– Payment – deposit with the commission.– Compensation not to be assigned by operation of law.
• Notice and claim (S/10)• Report of fatal accident (S/10-B)• Penalties ( S/18 – A)
Labor Laws Instructor: Muhammad Akram Chaudhry 180
THE APPRENTICESHIP ORDINANCE
(LVI OF 1962)
Labor Laws Instructor: Muhammad Akram Chaudhry 181
Purpose of the Act
An ordinance to make provision for promoting, developing and regulating systematic apprenticeship programmes in the industries and for securing certain minimum standards of skill.
Labor Laws Instructor: Muhammad Akram Chaudhry 182
Applicability of the ordinance
The law is applicable to industrial establishments having fifty or more employees. It requires that an industrial establishment having more than fifty workers
must train apprentices in a proportion not less than 20% of persons employed.
Labor Laws Instructor: Muhammad Akram Chaudhry 183
The companies’ profits(Worker’s Participation)
Act(XII OF 1968)
Labor Laws Instructor: Muhammad Akram Chaudhry 184
The companies’ profits ActAn Act to provide for participation of workers in the profits of companies preamble
Labor Laws Instructor: Muhammad Akram Chaudhry 185
The companies’ profits ActThe Act applies to every company engaged in an industrial undertaking which satisfies any one of the following conditions:-
1) The number of workers employed by it at any time during a 50 year is or more.
2) The paid up capital of the company as on the last day of its accounting year is rupees 20 lakhs or more. This condition now applies only to companies
established before July 1, 2006. For the
companiestablishedthereafter the condition will be 5 millions rupees or more.
Labor Laws Instructor: Muhammad Akram Chaudhry 186
The companies’ profits Act3) The value of the fixed assets of the company (at cost) as on the last day of accounting year is rupees forty lakhs or more. This condition also now applies to companies established before July 1, 2006. For companies established thereafter the condition will be rupees twenty millions or more.
Every Company making profits in a year has to pay 5% of its net profit to the workers participation fund for distribution among the workers according to their entitlement.
Labor Laws Instructor: Muhammad Akram Chaudhry 187
Payments1-Workers drawing average monthly wages not
exceeding Rs. 7,500.00
2-Workers drawing average monthly wages exceeding Rs. 7500.00 but not exceeding Rs. 15,000.00
3-Workers drawing average monthly wages exceeding Rs. 15,000.00.
Labor Laws Instructor: Muhammad Akram Chaudhry 188
Payments
-Not with standing anything contained in the scheme, no worker shall, in any one year, be entitled out of the annual allocation to units exceeding the amount of four times of the minimum wages for unskilled workers (8000 x 4 = 32000).
Labor Laws Instructor: Muhammad Akram Chaudhry 189
PAYMENT OF WAGES ACT, 1936
Act No. IV of 1936[23rd April, 1956]
Labor Laws Instructor: Muhammad Akram Chaudhry 190
An Act to regulate the payment of wages to certain classes of persons employed in Industry
Labor Laws Instructor: Muhammad Akram Chaudhry 191
Section-1. Short title, commencement and application
It applies in the first instance to the payment of wages to persons employed in any factory and to persons employed (otherwise than in a factory) upon any railway by a railway administration or, either directly or through a sub-contractor, by a person fulfilling a contract with a railway administration.
Labor Laws Instructor: Muhammad Akram Chaudhry 192
THE WEST PAKISTAN THE WEST PAKISTAN MINIMUM WAGES FOR MINIMUM WAGES FOR UNSKILLED WORKERS UNSKILLED WORKERS
ORDINANCE, 1969ORDINANCE, 1969 (W.P. Ordinance XX of 1969)(W.P. Ordinance XX of 1969)
Labor Laws Instructor: Muhammad Akram Chaudhry 193
An Ordinance to fix the minimum rates of wages for unskilled workers employed in certain commercial and industrial establishments in West Pakistan
Labor Laws Instructor: Muhammad Akram Chaudhry 194
Section-1. Short title, extent, commencement and application
(1) This Ordinance may be called the West Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969.
(2) It extends to the whole of [Pakistan].
(3) It shall be deemed to have come into force on and from the first day of July, 1969.
Labor Laws Instructor: Muhammad Akram Chaudhry 195
Section-1. Short title, extent, commencement and application
(4) It shall apply to every commercial and industrial establishment wherein fifty or more persons are employed or were employed on any day during the preceding twelve months, but shall not apply to–(a) persons in the service of Pakistan, as defined in [Article 260 of the Constitution]; Substituted ibid., for “Article 242 of the Constitution of 1962.”
Labor Laws Instructor: Muhammad Akram Chaudhry 196
SCHEDULESee SECTION-3
AreaArea Rate of Rate of minimum minimum wages per wages per monthmonth
Deduction for Deduction for providing providing housing housing accommodationaccommodation
Deduction for Deduction for providing providing transporttransport
11 22 33 44Rs.Rs. Rs.Rs. Rs.Rs.
Province of Province of PunjabPunjab
9000 p.m.9000 p.m. 25 p.m. 25 p.m. 10 p.m. 10 p.m.
Province of Province of SindhSindh
8000 p.m.8000 p.m. 20 p.m.20 p.m. 5 p.m. 5 p.m.
Other Other Industrial Industrial AreaArea
8000 p.m.8000 p.m. 13 p.m.13 p.m. 2 p.m.2 p.m.
Contactors and contactors workers
Labor Laws Instructor: Muhammad Akram Chaudhry 197
Contractor Labor and Employer Liability
According to Law, the employer of the industrial and commercial establishment shall personally be held responsible for the proper and faithful observance of the Law, whether or not the Workmen of such establishment are employed through contractor.
To determine the real status of a worker, as to whether he is employee of an establishment or a contractor, the criteria is,
• Selection of a worker/employee.• administrative control over the worker, • power to reinstate and dismiss the contractor worker;• Payment of wages or other remuneration.• whether the contractor was a genuine person and had not
been set up merely to deny the worker of the benefits under the labor laws.
Contractor Labor and Employer Liability
Categories of Contracts
• Manpower Supply Contract• Job/Services Contract• Janitorial/House Keeping Services• Transport Services• Technical/Maintenance Services• Others Contractors
CONTRACT LABOUR AND EMPLOYER’S LIABILITY
Punjab INDUSTRIAL RELATIONS ACT,2010
“Worker” and “Workman” means any person not falling within the definition of employer who is employed (including employment as a supervisor or as an apprentice) in an established or industry for hire or reward either directly or through a Contractor Whether the terms of employment express or implied, and, for the purpose of any proceedings under this Act in relation to an industrial dispute includes a person who has been dismissed, discharge retrenched; laid-off or as a consequence of that dispute or whose dismissal, discharge, retrenchment, lay-off, or removal has led to that disrupt does not include any person who is employed mainly in managerial or administrative capacity.
FACTORIES ACT,1934
“Workers” means a person employed [directly or through an agency] whether for wages or not, in any manufacturing process, or in cleaning any part of the machinery or premises used for manufacturing process, or in any other kind of work whatsoever, incidental to or connected with the subject of manufacturing process, but does not include any person solely employed in a clerical capacity in any room or place where no manufacturing process is being carried on;
The system is recognized by Law:
A) Because in most of the enactment a worker or employee is defined as any person employed directly or through any other person; and
B) Section 29, of PIRA 2010 authorizes the Workers Management Council to fix terms and conditions of services of such workers
Jobs Usually Given on Contract- Reason
Reducing production cost and concentrating resources on core business activities e.g. the jobs are of loading / unloading security and janitorial services are given on contract for this reason
Jobs Usually Given on Contract- Reason
Reducing production cost and concentrating resources on core business activities e.g. the jobs are of loading / unloading security and janitorial services are given on contract for this reason
Jobs Usually Given on Contract- Reason
Reducing production cost and concentrating resources on core business activities e.g. the jobs are of loading / unloading security and janitorial services are given on contract for this reason
Recognition of Contractor Labor System
By virtue of Section 29 of the PIRA 2010, the Workers Management Council has been empowered to look after the “provision of minimum facilities for the workers employed through contractors as are not covered by the laws relating to the welfare of workers”.
Employment Relationship Test
a) The power of selecting of the employees;b) The payment of wages or others
remuneration;c) The right to control the method of doing
work; andd) The right of suspension or dismissal
Thanks