RUNNING HEAD: Unfair and Abusive Labor Practices in Textile Industry of Karachi

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Topic: Unfair and Abusive Labor Practices in Textile Industry of Karachi

Course: Human Resource Management

Date: 29/6/2021
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 1

Table of Contents
Introduction......................................................................................................................................2

Literature Review............................................................................................................................3

The Legislations...........................................................................................................................3

The Factories...............................................................................................................................4

Labor Right Abuses.....................................................................................................................5

Irregular Hiring Practices............................................................................................................5

Absence of Written Contracts......................................................................................................6

Use of Labor Contractor..............................................................................................................6

Piece-Rate Wage Workers...........................................................................................................6

Violating Regulations on Minimum Wage and Overtime...........................................................7

Forced Overtime..........................................................................................................................7

Lack of Breaks or Medical Leave................................................................................................7

Unsanitary Conditions.................................................................................................................8

Child Labor..................................................................................................................................8

Methodology....................................................................................................................................8

Data Analysis...................................................................................................................................9

Conclusion.....................................................................................................................................11

Recommendation...........................................................................................................................12

References......................................................................................................................................13
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 2

TOPIC - Unfair and Abusive Labor Practices in Textile Industry of

Karachi

INTRODUCTION

The production of textiles industry is a significant component in the manufacturing

industry in Pakistan. The ILO estimates that in Pakistan there were 4.2 million employees

engaged by the garment, textile, and footwear industries in 2014-15. Up to 8.5% of Pakistan's

GDP and over 70% of overall exports contribute to the textile and garment sectors (Arslan,

2020).

The economy of Pakistan relies heavily on its exports of clothes and textiles, with the US,

the United Kingdom, and China being its major customers. In 2016, exports of textile and

apparel to the three nations cost $288 million, $139 million, and $100 million correspondingly,

according to the latest World Bank statistics available. German, Belgian, the Dutch, French,

Italia, and several Asian nations were other significant export markets. The EU has received over

30 percent of total exports for more than $3.5 billion, which comprise mostly clothing and

textiles, and is Pakistan's biggest trade partner in 2016. A Cooperation Agreement between the

EU and Pakistan in 2004 was struck, and from July 2008 Pakistan has benefited from the EU

Generalized Preference System (GSP) (Dietrich, 2019).

For many US and European clothing manufacturers, Pakistan is a significant

manufacturing location. The Pakistani textile sector also provides for numerous Pakistani brands,

including exports to countries of the Gulf Council and other regional markets. Pakistan's clothing

sector functions widely on three floors: small, medium, and big. In the clothing industry, most
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 3

manufacturers have 50 or fewer machines. The bigger plants are part of the organized industry

and provide worldwide clothing companies. The bulk of the production is nonetheless carried out

in the informal economy, working in tiny, unregistered stores and marketed structures (Azeem,

2018). These tiny operations are authorized and unregistered for local manufacturers.

LITERATURE REVIEW

The many labor laws and provisions of Pakistan do not sufficiently protect textile and

clothing employees and are frequently not enforced by constitutional safeguards. The Legislation

protects employees with guarantees against abuse and prejudice. It outlaws forced labor and the

use in industries of minors below the age of 14 (Azeem, 2018). This guarantees the right to select

an occupation and to organize unions and assures that there is no inequality. The Constitution

also contains non-binding provisions that promote safe and equitable working circumstances,

guarantee that children and women are not engaged in an occupation unfair to their gender or

ethnicity and that women employees get maternity benefits.

There is a complicated labyrinth of labor regulations in Pakistan. Since 2010, regional

parliament is exclusively charged in their jurisdictions with the development of labor laws. The

federal legislature can adopt labor rules covering factories and enterprises with branches

spanning more than one province.

The Legislations

The Federal legislation included the Factory Act of 1934; the Act on Industrial Relations

of 2012; the 1968 Regulation on Industrial and Commercial Jobs; Workman Compensation Act,

1923; the Wage Payments of 1936; and the Welfare Benefits Regulation of Workers of 1965.

This federal legislation applies only if the provincial legislation supersedes them. The Sindh Act,
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 4

2015, and the Sindh Industrial Relations Act, 2013, for example, replace federal legislation via a

wide number of provinces. This includes the Sindh Factories Act, 2015, and the Senth Terms of

Employment Act, 2015 (Memon et al., 2021). In the same way, for instance, Punjab is replaced

by the Punjab Industrial Relations Act of 2010.

Not all laws apply consistently to all manufacturing facilities or establishments. Its

applicability depends on the number of employees employed by every facility. The provincial

governments regularly regulate the minimum wage rate in Pakistan. However, 54 percent of

employees in the clothing, textiles, and apparel sector earn less than the legal monthly minimum

wage, according to an ILO survey released in 2017.

The Factories

CCTV film of a famous apparel manufacturer who had created abusive impact on the

employees of textile industry for local brands in Karachi was released to social media and

afterward to the mainstream media in April 2017. The films show the proprietor hitting and

beating the men and women and sticking them. The CM of Sindh instructed the department of

labor to produce a report and take swift measures against the owner. The survey report was not

made public and no measures were taken at the time of writing.

Countrywide demonstrations by Khaadi employees, the biggest Pakistani clothing

market, in May 2017 highlighted severe and pervasive issues in the clothing industry. Arbitrary

dismissal, unhealthy circumstances, very long working hours, and wages less than the statutory

minimum pay were mentioned in workers' complaints. worker complaints included.

Staff stated that the controversy started when Khaadi dismissed 32 workers for the

minimum income claim. More cases of breaches of workers' rights have emerged as media
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 5

emphasis on the stalemate has grown. Workers reported that one worker had not received a

medical leave and was forced to finish his shift despite being unwell. The worker's condition got

worse when he came back and died within hours of his return. Experts on labor rights stated

Khaadi was in breach of Pakistani and international labor rules by denying responsibility by

blaming for third party contracts. Khaadi and NTUF struck an agreement in June 2017 in which

Khaadi agreed to comply with labor regulations. This deal was concluded in June. After a

management agreement, some employees and union members dropped their objections. But

many of the workers' complaints remain unanswered at the time of writing, according to a rights

militant.

Labor Right Abuses

In Pakistan's chronicling factories, which are most commonly manufacturing articles for

famous global clothing companies, employees typically face a series of abuses of labor despite

domestic laws and international labor rights norms (Dietrich, 2019).

Irregular Hiring Practices

There is the 1968 Standing Ordinance on Industrial and Commercial Employment in

Pakistan governing the relationship establishment among employees in the plant and its workers.

Although this legislation is applicable in Punjab, the Sindh Employment Settlement Act

(Standing Orders) 2015 has been replaced in Sindh. All institutions employing 20 workers, or

more are classified as permanents, probators, badly (replacements), temporary workers, trainers,

and contract employees (short term) (Memon et al., 2021). The Act applies to all percentage

increases 20 or more people. Personnel from 24 companies that come under the scope of the

regulations, all of which employed between 70 and 5,000 people, were questioned by Human

rights Watch (Herrero, 2017).

Absence of Written Contracts

Factory managers in Karachi recruit individuals who, paradoxically, are termed 'contract

workers' without official written agreements. Many employees contacted by Human Rights

Watch stated they were employed on temporary contracts which had been extended frequently

verbally for over nine months (Ramay, 2016). These employees were the permanent staff.

Use of Labor Contractor

The employment is commonly exchanged for a Kadar in numerous situations

(contractor). Experts in the field of clothing business in Pakistan believe that manufacturers are

increasingly employing employees to relieve firms of any direct obligation to safeguard the

rights of workers. Employee employees have a reduced risk of remedy and a greater danger of

arbitrary dismissal, said Human Rights Watch workers who were recruited frequently via

employers. 63 In this way, they also said that factories had the responsibility to pay therapeutic

expenses, pensions, social welfare, paid vacation, sick leave, or vacations. In the lack of

contractual agreements and registrations, employees are too frightened to complain about the

exploitation or abuse by plant managers for fear of losing their employment.

Many manufacturing operators can avoid using a third-party contractor to pay the

required minimum wage by hiring people. In such instances, labor experts have stated that the

company does not display these workers on their salaries and leads them to pay workers' wages,

circumventing the control effectively.

Piece-Rate Wage Workers

In the textile and clothing industry, workers are also employed on part-rate pay, whether

they are permanent or contractually engaged. It is also typical practice. Human Rights Watch
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 7

questioned employees of 13 multinational branding manufacturers and 11 factories that are

supplying local brands saying that most of the employees at the plant get a part wage.

Violating Regulations on Minimum Wage and Overtime

The legislation on employment in Pakistan says that “no employee in an adult may be

permitted or compelled to remain in a workshop for overtime; if the workshop is seasonal and is

50 hours per week, he may work for 56 hours a week if the working is continuous.”  Limited to

nine working hours each day.

Forced Overtime

Interviewed workers and campaigners stated employees working regularly above the

required nine hours a day in the clothing sector. Owners of the factory shall pay for extra hours

for the overtime. Given the low subsistence wages and the fact that many companies do not even

pay the minimum wage, many people have little option but to earn additional time (Goethals et

al., 2017). Most of the employees questioned by Human Rights Watch stated, however, that

overtime is rarely discretionary: if they refused, they fear reprisals, including firing.

Lack of Breaks or Medical Leave

Pakistani labor legislation provides a repose period of 1 hour for each worker after 6

hours or 5 hours at least half an hour. 97 If the working day goes above eight and a half hours, at

least two time periods each half an hour must be offered for the worker. Several the employees

reported that Human Rights Watch denies managing the plant appropriate "productive" breaks

(Goethals et al., 2017).

Unsanitary Conditions

Many of the employees in Lahore, Karachi, and Hafizabad districts reported unhealthy

circumstances, such as filthy drinking water, poor food, little health aid, and congestion. In the

workplace, there are 300 to 400 people crowded in a small area, a worker from an industrial

plant for the local market in Karachi remarked. The factory is sweet and hardly cleaned. The

factory does not have clean drinking water (Herrero, 2017). If any worker reports that he feels

sick or sick, the management will send us a painkiller and take the cost of the drug from our

wages.

Child Labor

In Pakistan, children strive to operate for children and in many industries such as a brick

kiln, agriculture, and even the worst kinds of child labor and bonded labor. The growing expense

of life, especially food and gasoline prices, is a key factor in forcing youngsters to work instead

of attending school.

The Constitution of Pakistan protects employees with guarantees against exploitation and

discrimination. That includes a ban on forced labor or the involvement of children below 14

years of age in industries. Includes a commitment to ensuring a reasonable and compassionate

work environment so that children and women do not have jobs that are not unfair to their age or

gender in a constitutional policy concept (Ramay, 2016).

METHODOLOGY

In Pakistan, the breadth of study cannot be complete, given the large scale of the clothing

sector, but it points to a tendency towards bad working conditions and highlights the major issues

raised by employees and activists for labor rights.

Pakistani clothing workers fear losing their jobs if they speak publicly about poor

conditions and infringements of labor rights. Some workers are also threatened with severe

physical and aural assault, as this study indicates. We have concealed names with pseudonyms

for this purpose (Javed & Suleri, 2019). Since we encountered workers still at the plants they are

talking about, we decided that the names of those plants would not be published.

We questioned 112 employees, 22 females and nine children under 18 years of age, of

whom Pakistan has the legal minimum age of employment. The employees indicated that 16

employed from 300 to 5,000 of the 24 clothing firms investigated. About 70 people worked at

the smallest factory we investigated. We also questioned 23 women employed in in-house

clothing. 37 workers from 17 factories participated in trade union formations among those

interviewed. Of 24 manufacturing companies, 13 manufactured for national and international

clothing labels and 11 manufactured for local brands alone (Khan et al., 2021).

There is not one single brand in this report. Clothing businesses that publish their supplier

factory lists publicly provide workers with additional opportunities to reach their voices than

non-brands. It is on to workers to correctly collect and deliver label information and further delay

or obstruct their access to remedy without publicly accessible provider factory information which

is periodically updated.

DATA ANALYSIS

The economy of Pakistan relies heavily on its exports of clothes and textiles, with the US,

the United Kingdom, and China being its major customers. In 2016, exports of textile and

apparel to the three nations cost $288 million, $139 million, and $100 million correspondingly,

according to the latest World Bank statistics available. German, Belgian, the Dutch, French,
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 10

Italia, and several Asian nations were other significant export markets. The EU has received over

30 percent of total exports for more than $3.5 billion, which comprise mostly clothing and

textiles, and is Pakistan's biggest trade partner in 2016. A Cooperation Agreement between the

EU and Pakistan in 2004 was struck, and from July 2008 Pakistan has benefited from the EU

Generalized Preference System (GSP).

In our investigations, we did not focus explicitly on foreign clothing labels, although

around 20 percent of manufacturers in Pakistan create ready-made apparel on the international

market. Such firms have a duty to guarantee protection of employees' rights across their supplier

networks. It is estimated that 15 million individuals in Pakistan are employed in the clothing

business, some 38 per cent of the working force manufactured. However, a combination of the

absence of job security that facilitates the dismissal and control of workers, poor governance

employment inspections and implementation, and strong anti-industrial measures, makes it

difficult for workers to exercise their rights (Ashraf, 2018).

For many employees, overtime and vacation are the sole possibilities of meeting the

production goals. Women employees from Karachi's and Lahore's industries who are compelled

to work overtime at night claimed, due to the absence of transportation and safety issues, that

they had difficulty returning home. The standard shift in certain workplaces surpasses the

constitutionally allowable 9 hours.

Karachi stated that religious and ethnic discrimination is included in the recruiting

process and workers from two companies that supply Pakistani and foreign brands talked to

Human Rights Watch. Karachi features a wide range of people including most of the 1947 Indian

Urdu-spreaders and a host of the Sindhi, Pashtun, and Baloch minority groups which have
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 11

resulted in numerous decades of ethnic conflicts and bloodshed (Arslan, 2020). The failure for

workers to show a status of their employment in the event of unjust or arbitrary dismissal due to

a written contract or designation letter.

While from the survey, it has been clearly realized that small companies dominate the

clothing sector and are frequently the business of individuals who employ over 84% of the

industry's workers, whereas major businesses employ fewer than 5%. Many of the tiny

companies are not authorized by the administration (Javed & Suleri, 2019). While the bigger

companies dominate in terms of revenue, staff have been alleged to have abused the whole

sector.

CONCLUSION

The due diligence of human rights should be exercised by both domestic and foreign

enterprises (brands and retails). Such due diligence should identify possible detrimental effects

and means of preventing them on human rights. Due diligence on human rights should be

continuous rather than one-off surveys.

In the clothing industry, there is a double obligation for due diligence. The basic tenets

require companies to 'identify general areas where the risk of adversely affects their human rights

is most important, whether because of the operating context of certain suppliers or clients, of the

special operations, products/services or other publications involved.

In addition, Apparel companies should assess their purchasing and pricing strategies

often and routinely to evaluate how they affect working conditions in the supply facilities.
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 12

RECOMMENDATION

 To verify they comply with international labor standards, review the labor laws of the

country. Provincial labor regulations and the Law of Industrial Relations, 2012, are not

consistent with Pakistan's International Labor Organization’s labor laws, including

Article No. 87 on Freedom of Association and Convention, and No. 98 on the right to

collectively organization and negotiation of the values (Khan et al., 2018).

 Ensure that the rights of employees to organize trade unions are respected. Direct police

to thoroughly investigate and identify the perpetrators of physical attacks. Investigate any

manufacturers believed to be engaging in anti-union activity and hold companies

accountable for violation of employees' rights and punish them.

 Request periodically from the provinces to monitor the implementation of all legislation

on the protection of workers and the prevention of workplace harassments of any type.

 Developing and implementation of a strategy to expand the quantity of labors employed

by the government, fire, and building inspectors, enhance training, establish clear

independence and credibility inspection procedures, and extend available resources for

successful inspections (Goethals et al., 2017).

 Enact laws to enhance the provincial labor department's authority to prosecute union

bosses for unfair working practices, including penalties and other measures for

preventing future infringements (Khan et al., 2020).

 Establishes procedures for monitoring entrepreneurs who engage with domestic workers

and accountability for factories and providers to safeguard workers' rights.

REFERENCES

Arslan, M. (2020). Mechanisms of labour exploitation: the case of Pakistan. International

Journal of Law and Management.

Ashraf, S. (2018). CSR in Pakistan: The case of the Khaadi controversy. In Corporate

Responsibility and Digital Communities (pp. 247-269). Palgrave Macmillan, Cham.

Azeem, M. (2018). Theoretical Challenges to TWAIL with the Rise of China: Labor Conditions

Under Chinese Investment in Pakistan. Or. Rev. Int'l L., 20, 395.

Dietrich, J. Does the US Support Unfair Labor Practices Through Trade Negotiations?. Florida

Political Chronicle.

Goethals, S., Bardwell, J., Bhacker, M., & Ezzelarab, B. (2017). Business human rights

responsibility for refugees and migrant workers: Turning policies into practice in the

Middle East. Business and Human Rights Journal, 2(2), 335-342.

Herrero Rodríguez, P. (2017). Circular Economy: Application in the textile industry.

Javed, S. A., & Suleri, A. Q. (2019). Manufacturing Sector and Job Creation in Pakistan.

In Manufacturing and Jobs in South Asia (pp. 153-170). Springer, Singapore.

Khan, H., & Sukhotu, V. (2020). Influence of media exposure and Corporate Social

Responsibility compliance on customer perception: The moderating role of Firm's

reputation risk. Corporate Social Responsibility and Environmental Management, 27(5),

2107-2121.
 Unfair and Abusive Labor Practices in Textile Industry of Karachi 14

Khan, M., Lockhart, J. C., & Bathurst, R. J. (2018). Institutional impacts on corporate social

responsibility: a comparative analysis of New Zealand and Pakistan. International

Journal of Corporate Social Responsibility, 3(1), 1-13.

Khan, M., Lockhart, J., & Bathurst, R. (2021). The institutional analysis of CSR: Learnings from

an emerging country. Emerging Markets Review, 46, 100752.

Memon, R. A., Lohana, K., & Naqvi, I. B. (2021). Gender Pay Gap in Textile Industrial Cluster

Kotri, Sindh Pakistan. South Asian Journal of Social Sciences and Humanities, 2(2), 86-

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