Evolving a new labour policy

Source: Dawn

Date: 25 10 2010

KHYBER Pakhtunkhwa did away with labour inspections to promote industrialisation under its first-ever industrial policy which expired in June this year. Now, the second version of the policy is being formulated.

As per old policy, all industrial units operating in the province were also exempted from the property tax including waiver of all arrears.

Industrial units, however, were required to furnish an undertaking stating that they comply with labour laws along with their production figures and other relevant details to the Directorate of Industries and Labour This has not happened and the policy has led to rampant violation of core labour laws, says workers representative..

As the industrial policy has expired, the government is mulling over its second version. Incidentally, none of the industrial units, employing over 50,000 workers, had ever complied with what they were required for availing the given relief.

Gohar Taj, general secretary, Pakistan Workers’ Federation Khyber Pakhtunkhwa chapter told Dawn that the industrial policy had not helped industrialisation. Rather it added to the worsening plight and exploitation of the labour..

Before the industrial policy, there were three labour inspections yearly for checking compliance of labour laws, Mr Taj added.

Pakistan, he says, is a signatory to 188 different international laws and protocols dealing with labour including the four main/core ILO laws. “Unfortunately, most of these laws are being violated in the province ” he said.

Apart from international laws, there are a number of local statutes that are designed to protect workers from exploitation but are violated. For example, the Labour Department is required to ensure that workers in industrial units and other business concerns are paid in accordance with Khyber Pakhtunkhwa Minimum Wages Ordinance, 1961.

The minimum wages were fixed for the workers by federal governments which the provincial government used to follow. Early this year, Prime Minister Syed Yousuf Raza Gilani increased minimum wages from Rs6000 to Rs7000. However, most of the industrial units are not following the directive. A gender discrimination is more visible in wages where women workers usually are not paid more than half of the officially fixed minimum..

“Just go and check any of the pharmaceutical unit in Peshawar and you will find that women workers are paid salary at Rs2500--3000 per month. A portion of this wage is deducted as transportation charges,” said an official at Labour Department, who is not allowed to go and inspect the factories.

Apart from violating the minimum wage law, violation of other laws dealing with child labour, overall working conditions and compensation in case of accidents are also adding to the workers’ miseries.

View details: http://epaper.dawn.com/ArticleText.aspx?article=25_10_2010_604_003