Labour Policy of Pakistan 2010
Labour Policy of Pakistan 2010
Labour Policy of Pakistan 2010
GHULAM QAMBER
ACKNOWLEDGEMENT
We thank The God Almighty ALLAH, who gave us power and ability to accomplish the task assigned to us. We are also grateful to Prof. Ghulam Qambar, who has taught us so well that project making of any company is not a difficult task for us any more. In the end, we want to thank our parents for their moral support and every individual, who helped us during this project.
HOLY PROPHET (PEACE BE UPON HIM) SAID TO PAY A LABOR HIS WAGES BEFORE SWEAT DRIES
Governments vision:
The Governments vision for the new Labor Policy contents is entrenched in the four main guiding features. The process of globalization is posing a serious problem of economic survival for the developing country. The foreign investments demand restructuring and decentralization of the system.
PREFACE
Since creation of Pakistan, five labor polices have been announced by the governments in the year 1955, 1959, 1969, 1972 and 2002. All these policies basically laid-down the parameters for the growth of trade unionism; the protection of workers rights; the settlement of industrial disputes and redressal of worker grievances. After 2002, no Labor Policy has been introduced although a number of developments took place in the intervening Period, which would have necessitated the same.
The Prime Minister of Pakistan announced the lifting of ban on trade unionism, repeal of Industrial Relations Ordinance, 2002, Removal from Service (Special Powers) Ordinance, 2000 and other anti labor laws.
Of all the previous policies, the Labor Policy of 1972 taken out by Shaheed Zulfiqar Ali Bhutto was the most progressive one, which reformed the labor laws and set out new benchmarks including new administrative infrastructure to manage the workers welfare Fund. The scope of labor laws was enhanced and benefits such as Workers participation in factory management; increase in workers shares in companys profits from 2% to 4%. The present Governments fundamental commitment today is to create an enabling environment for the application of universal principles of equality and social justice as well as the constitutional and international rights of workers.
Contents
PREFACE ........................................................................................................................................................ 3 LABOR POLICY 2010 ...................................................................................................................................... 6 DEFINITION ............................................................................................................................................... 6 OTHERS ..................................................................................................................................................... 6 PARTS OF LABOUR POLICY ............................................................................................................................ 7 LEGAL FRAME WORK ................................................................................................................................ 8 ADVOCACY; RIGHTS OF WORKERS AND EMPLOYERS: DECENT WORK. .................................................... 9 SKILL DEVELOPMENT AND EMPLOYMENT: ............................................................................................. 10 SKILL DEVELOPMENT AND EMPLOYMENT .............................................................................................. 11 Skill Development ................................................................................................................................... 12 EXPORT OF MANPOWER ......................................................................................................................... 13 LABOR POLICY ......................................................................................................................................... 14 LABOR POLICY OF PAKISTAN (2010) ........................................................................................................... 16 KEY FEATURES ......................................................................................................................................... 17 PAKISTAN: SPECIAL CABINET MEETING APPROVES LABOR POLICY 2010 ................................................... 21 MINIMUM WAGE SET AT RS7000 IN LABOR POLICY 2010 ......................................................................... 25 PUBLISHED: MAY 1, 2010 ............................................................................................................................ 25
OTHER
LABOR (ECONOMICS),one of the three main factors of production LABOR ECONOMICS, the economic field, broadly conceived, encompassing study of Labor (economics) LABOR PARTY, a political party in various countries LABOR/LE TRAVAIL, an academic journal focusing on the Canadian labor movement. JOSEF LABOR, a composer, pianist, organist, and teacher LABOR, an obsolete unit of area
Industrial Relation Ordinance 2002 The Government repealed the Industrial Relation Ordinance 2002through the Industrial Relations Act 2008 Now a new law in conformity with the International labor Standards will be promulgated.
Pakistan has ratified many international commitments relating to labor standards such as 34 ILO Conventions (33 in force) which include seven of the eight fundamental conventions encompassing freedom of association: o The abolition of forced labor o equality at work, o The elimination of child labor. o The Convention on the Rights of the Child. o The Convention on the Elimination of All Forms of Discrimination against Women. o Universal Declaration of Human Rights. o International Covenant on Economic. o Social and Cultural Rights. o International Covenant on Civil and Political Rights and Anti-Slavery Convention of the UN. The Government believes that in the light of its international commitments the strategic goal of decent work means paying equal attention to economic and social development, with special attention to safeguarding the rights and interests of the workers. The economic globalization offers new opportunities, but at the same time it present challenges to workers all over the world. The decent work strategy responses to the social challenge. The decent work strategy of the country comprises four elements that are closely related. opportunities for productive, remunerative and safe work; social protection; respect for workers basic rights and interests; and Social dialogue.
Skill Development
Particular emphasis will be given on Training of Trainers to maximize the multiplier impact. Training in Para-medical services, of which presently there is an acute shortage will be increased. The industrial apprenticeship schemes will be revitalized and intake will be enhanced. The production of skilled manpower for assimilation and spread of new modern technologies especially in the application of electronics, computers and modern production systems will be encouraged. Mobile training units and trade-tests (through the National Training Board Skills Standard and Certification System) for those who are trained through the informal Ustad-Shagird system will be introduced. The government will encourage the involvement of private sector to organize intensive in-plant training, actively participate in the establishment and management of vocational training institute; and the National Training Board will be reconstituted with a large representation of the private sector. Matric Tech scheme shall be introduced in all schools run by the Workers Welfare Fund to impart Technical Education to the students. Increasing the proportion of workers in the labor force with higher levels of education and skills will be encouraged. This will be achieved by complementing general school education with technical/vocational training and by easing the path of school graduates to higher education with an emphasis on professional training. The government will standardize courses/curricula and ensure uniform quality control. The trade unions will be engaged in identifying training needs and priorities and the management of training programmes and training institutes. A full-fledged Labor Market Information System shall be established with creation of Human Resource Center at different cities.
EXPORT OF MANPOWER
Human resource is one of the major capitals of any country. Presently, the highest amount of foreign exchange is being earned through there mittances by the expatriate Pakistanis. Procedures regarding export of manpower will be simplified and streamlined by making necessary amendments in the Emigration Rules to ensure expeditious processing of demands for overseas jobs. The Overseas Employment Promoters will be given further incentives to enable them to improve their performance. Pakistan Embassies abroad will be asked to extend necessary co-operation to the delegations of OEPs when they visit the labor importing countries for procurement of manpower demands so that they may be able to procure maximum demands for Pakistani labor. Regular export promotion campaigns and visits to main employers especially in the Gulf region will be encouraged.
Return migrants will be viewed as a potential asset (a package of labor skills, experience and investible resources) which will be tapped for the benefit of the economy. Existing schemes to attract investments by migrants while abroad as well as on return will be expanded and made more effective.
In addition to above to enhance the export of manpower, major steps will be taken by the Government, which shall include: Formulation of Manpower Export Committee in the Ministry to: o Prospects of Pakistani emigrant workers o Promoting emigration and protecting emigrants o Re-integration of returning emigrants and effective use of Diaspora resources o Supporting measures and implementation mechanism Manpower Export Committee at National Level with following role and functions: o Prepare marketing plan and strategy for enhancement of man power export. o Approve training plan, functional language courses. o Arrange financial resources for training in Pakistan. o Approve Road Shows/Job fairs in different countries. o Extend invitation to important employers and key government functionaries of labor receiving countries to assess the training facilities in Pakistan invest for up-gradation. o Enhance the strength and capacity of skill training system of Pakistan - at par with standards of Labor importing counties. o Establishment of a Manpower Export, Research and Information Center (MERIC) in Bureau of Emigration. o Coordinate with Ministries and Provincial Governments. o Coordination and Liaison Committee in Pakistani Missions o Coordinate with Manpower Export Committee. o Liaison with Pakistani community as well as the private and public sector foreign employers. o Develop Market strategy and action plan for employment abroad. o Provide information on the skills requirement, occupation wise emerging opportunities to the Manpower Export Committee.
LABOR POLICY
A labor policy to protect the rights of workers shall be introduced, re-affirming the terms and conditions of work as set forth in the ILO Conventions, Agreements and Recommendations; the right to form trade unions, strike and collective bargaining shall be secured by law in all government and private sector establishments; there shall be only one union in one establishment and its elections shall be held democratically. All labor laws shall be framed at least in conformity with ILO Conventions and Recommendations, contradictions and anomalies in existing laws shall be removed. A law shall be framed to establish workers share in the ownership of industries. Utility services in the public sector shall not be privatized. Contract system of labor in industrial establishments shall be totally abolished. Workers wages shall be raised; the pay/wages of any unskilled worker shall not be less than the value of one tola (10grams) of gold and shall be pegged to the cost of living. A reasonable balance shall be maintained between the highest and the lowest pay through a process of rationalization of pay scales. Adequate modern safety arrangements and precautions shall be enforced in industries and mines to prevent accidents. Education, healthcare and housing for workers and their family members shall be responsibility of the employer and state. An effective and impartial judicial structure, free from political influences and manipulations shall be established, to resolve disputes between employers and employees.
KEY FEATURES
We provide below a summary of key features of the new labor policy identified in various news reports: Rs 7,000 as the minimum wage for laborers an increase of Rs 1,000 from Rs 6,000 from the previous year. All industrial, commercial and other establishments registered under any law would pay wages to employees through cheques/bank transfer; All contract employees in the public sector would be regularized within the shortest possible time. Social insurance for old-age benefits and health services would be introduced on selfregistration/voluntary basis, to benefit all workers in the formal and informal sector of the economy, including self employed citizens. The registration of all workers would be linked with the smart cards being issued by NADRA. The entitlement age for old-age pension would be reduced from 55 years to 50 in case of mine workers. Tripartite monitoring committees would be set up at the district, provincial and federal levels to monitor the implementation of labor laws, particularly those dealing with the payment of wages, and the work environment and timings. A review board shall be established to consider the cases of such workers who had been dismissed under the Removal from Service (Special Powers) Ordinance, 2000. The government will ensure full adherence of labor laws and worker friendly environment in all establishments to promote decent work in the country. Metric Tech Scheme shall be introduced in all schools run by the Workers Welfare Fund to impart technical education to the students. A full-fledged Labor Market Information System shall be established with the creation of a Human Resource Centre in different cities.
The survivors of a registered insured person under the EOB Act will be paid Survivors Pension without any condition of minimum insurable employment. The EOB Act will be made applicable to the contingent/project employees of such statutory bodies which are otherwise exempted under the provisions of the Act. Pension shall be enhanced with the enhancement of Government Servants Pension at the same ratio. The age of entitlement of old-age pension will be reduced from 55 years to 50 years in case of mine workers. All workers registered under the Universal Registration Scheme of the EOBI would be eligible to benefit from the Workers Welfare Fund. Subject to recommendation by monitoring committees, dismissed or retrenched workers would be paid legal aid up to a maximum of Rs 15,000. The daughter of a laborer will be paid Rs 70,000 instead of Rs 50,000 as dowry Fund. Moreover, the heirs of those dying during service will be paid Rs3 lakh as compensation.
Removal of the draconian labor laws by repealing the Removal from Services (Special Powers) Ordinance 2000 and amending the Services Tribunal Act 1973 that would protect the working classes from exploitation and arbitrary termination from service. The Removal from Services Ordinance was a bad law as it conferred arbitrary powers on the authorities in violation of the fundamental rights of workers, while Section 2A of the Services Tribunal Act 1973 had snatched the rights of workers to take their disputes to the Labor Courts, Labor Appellate Tribunal as well as the National Industrial Relations Commission. The workers will now enjoy job security as the president has signed two laws to repeal the Removal from Services (Special Powers) Ordinance 2000 and amend the Services Tribunal Act 1973 after adoption from the parliament houses. Repealing the ordinance will ensure job security for government laborers and also restore workers rights as the employers could no longer sack employees arbitrarily. These two laws had deprived employees of their rights to approach labor courts for a remedy, which has now been brought to their logical ends by the present government. The governments decision to offer 10 percent share in the public sector organizations would benefit 500,000 employees, while thousands of youths are being trained under the Shaheed Benazir Bhutto Youth Development Programmed to lead the country towards new avenues of prosperity and development. Shares have also been handed over to the workers in the public sector corporations to make them partners and ensure their role in decision-making.
The children of workers will get technical education. Manpower information centers in cities will be set up, trainers will be equipped with knowledge to spread vocational education, and Para-medical staff will get specialized training, he said. Pensionable age limit under the old-age benefit will be lowered to 50 years. Smart card through Nadra will be issued, so that registered workers can get various facilities, legal support of Rs 15,000 will be arranged for out of job workers. Free medical treatment will be provided for the laborers. Workers have been given the right to form unions and labor bodies to protect their rights.
ISLAMABAD:
A special meeting of the cabinet chaired by PRIME MINISTER SYED YUSAF RAZA GILANI here on Saturday approved Labor Policy 2010 containing a number of measures to protect and promote rights of working classes. In the opening remarks at the special meeting, the prime minister said that the present government desires to create an enabling environment for the application of universal principles of equality and social justice as well as constitutional and international rights and uplift of workers and labor force. The presentation and approval of the Labor Policy on 1st May which is the International Labor Day, he said is the most appropriate time for the announcement of Labor Policy. The premier said that in his first speech at the parliament he had emphasized the need to address the labor issues, and had announced the lifting of ban on trade unions, repeal of
Industrial Relations Ordinance 2002, Removal from Service (special powers) Ordinance 2000 and other anti-labor laws. The labor policy, Prime Minister Gillani said reflects the policies and vision of SHAHEED ZULFIKAR ALI BHUTTO who had set out new benchmarks for dignity of the labor in line with his progressive thinking. It may be recalled that SHAHEED MOHTARMA BENAZIR BHUTTO on her return to Pakistan had announced to prepare a new labor policy which would be labor friendly.
Salient features of the Labor Policy 2010 approved by the Cabinet are:
a comprehensive social insurance for old-age benefits health services on self-registration/voluntary basis to allow all workers in formal and informal sector of economy, including self employed persons, to benefit from it.
Minimum wage The minimum wage was raised from Rs.4,600/- to Rs.6,000/- in the year 2008, which will be further enhanced to Rs.7,000/-. All industrial, commercial and other establishments registered under any law shall pay wages to the employees through cheque/Bank transfer. The government has already started the process to regularize/confirm contract employees All contract employees in public sector will be regularized/confirmed within shortest possible time. Tripartite Monitoring Committees will be set up at district, province and federal level to monitor implementation of labor laws, particularly with reference to payment of wages, working environment and working time. All workers registered under the Universal Registration Scheme of the EOBI will be eligible to get benefits from the Workers Welfare Fund (WWF). On request of an officer of the registered trade union, and subject to recommendation of the Monitoring Committee, any dismissed/retrenched worker will be paid legal aid subject to maximum of Rs.15, 000. In cases where the social security hospital has no facilities for treatment, the worker shall be referred to any public/private hospital and the respective Social Security Institution will bear all costs of treatment. The retired registered worker will be provided medical facilities from the Social Security Scheme. The survivors of a registered insured person under the EOB Act will be paid Survivors Pension without any condition of minimum insurable employment. The EOB Act will be made applicable to the contingent/project employees of such statutory bodies which are otherwise exempted under the provisions of the act.
Pension shall be enhanced with the enhancement of Government Servants Pension at the same ratio. The age of entitlement of old-age pension will be reduced from 55 years to 50 years in case of mine workers. A review Board shall be established to review the cases of such workers who had been dismissed under the Removal from Service (Special Powers) Ordinance, 2000. The Government will ensure full adherence of labor laws and workers friendly environment in all establishments to promote decent work in the country. Metric Tech Scheme shall be introduced in all schools run by the Workers Welfare Fund to impart Technical Education to the students. A full-fledged Labor Market Information System shall be established with creation of Human Resource Center at different cities. The prime minister also briefed the Cabinet about his recently concluded visit to Bhutan for the SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC) Summit and Nepal, and informed the Cabinet about the progress achieved during informal talks with Indian PRIME MINISTER DR. MANMOHAN SINGH where the two leaders agreed to resume dialogue on all issues. The Cabinet applauded the prime minister on his leadership and meeting with his Indian counterpart and other SAARC leaders and observed that contrary to pessimistic vibes, prime ministers SAARC visit turned out to be a great success. RANA SANAULLAH, PUNJAB MINISTER FOR LAW AND JUSTICE and SHER AZAM WAZIR, LABOR MINISTER KHYBER PAKHTOONKHWA PROVINCE also attended the meeting on special invitation.
SOURCE: ASSOCIATED PRESS OF PAKISTAN, 2 MAY 2010 SUBMITTED BY ADMIN ON 2 MAY 2010 MUSLIM WORLD NEWS
MINIMUM WAGE SET AT RS7000 IN LABOR POLICY 2010 PUBLISHED: MAY 1, 2010
ISLAMABAD: Prime Minister SYED YOUSAF
RAZA GILANI on Saturday announced a minimum Rs 7000 salary for laborers and a policy that aims at transforming the lives of working class for a better future. Addressing a large gathering here at the Convention Centre PRIME MINISTER GILANI appraised the large gathering of workers from across the country about the features of the new labor policy that was given an approval at a special cabinet meeting convened earlier in the day. He said the Cabinet approved the Labor Policy 2010 that was reflective of the vision of Shaheed MOHTARMA BENAZIR BHUTTO and was an attempt to implement it practically. He said the policy would benefit around 50 million labors that were playing a key role in the progress and development of the country. Prime Minister Gillani said the credit goes to President Asif Ali Zardari for pursuing the labor friendly policies.
Mr. Gillani said the new policy was based on universal principles of equality and social justice, constitutional and international rights for the uplift of workers. He repeated the governments commitment to improving the lot of the working class by creating friendly conditions for them. The prime minister assured all contract employees in government departments that their jobs would be regularized. He said the pensionable age limit under the employees old age benefit scheme would be lowered to 50 years from 55 in case of mine workers. Legal support and free medical treatment for laborers will also be part of the new policy. Mr. Gillani said private organizations would pay salary to their workers through banks, retired registered workers will get medical facilities and raise in their pensions would be in accordance with increase in government pensions. Similarly, free technical education will be provided to workers children and manpower information centers will be established in different cities. PRIME MINISTER YOUSAF RAZA GILANI said the government had restored trade unionism and workers were free to form unions and labor bodies for the protection of their rights. He said that tripartite monitoring committees would be set up at the provincial and federal levels with the task of supervising implementation of labor laws, with particular reference to payment of wages, working environment and working time. Earlier, speaking at the cabinet meeting, Prime Minister Gillani said the government wanted to create an enabling environment for application of universal principles of equality and social justice as well as constitutional and international rights and uplift of workers. The cabinet was informed that the last labor policy was announced in 2002. The prime minister briefed the cabinet about his visit to Bhutan for the SAARC summit.
PRIME MINISTER YOUSAF RAZA GILANI ADDRESSING THE GATHERING IN CONNECTION WITH INTERNATIONAL LABOR DAY AT THE CONVENTION CENTRE, MAY 1, 2010 - PHOTO BY APP.
GILANI informed the gathering about the measures and said trilateral monitoring committees would be set up at provincial and federal level to improve working, resolve problems and increase efficiency of the labors. He assured that contract employees would be regularized in government departments. He also announced salaries will be made through banks, retired registered workers will get medical facilities, raise in pensions would be in accordance to increase in government pensions, technical education for children, manpower information centers in cities, training of trainers, Para-medical staff to get specialized training, pensionable age limit under the old-age benefit lowered to 50, smart card through Nadra so that registered workers get all facilities, Rs 15,000 for out of job workers and legal support, Free medical treatment for labors. He said the workers have been given the right to have Unions and labor bodies to protect their rights. Gillani was appreciative of all the political parties and the provincial governments for their input and endorsing the new labor policy.
LABOR POLICY UNVEILED, MINIMUM WAGE RAISED BY BAKHTAWAR MIAN SUNDAY, 02 MAY, 2010