Labour Rights in Pakistan Declining Decent Work and Emerging Struggles A Report July 2010 Pakistan Institute of Labour Education & Research 2 Labour Rights in Pakistan Advisor Karamat Ali Editor Zeenat Hisam Section One Contributers Zeenat Hisam Shujauddin Qureshi Noriko Hara Section Two Contributers Dr. Ali Ercelawn and Karamat Ali Dr. Shahida Wizarat Bisharat Ali Noriko Hara Zeenia Shaukat Zeenat Hisam Cover Design and Layout K.B. Abro First published July 2010 ISBN 978-969-9153-08-2 Published by Pakistan Institute of Labour Education & Research PILER Centre ST-001, Sector X, Sub-Sector V Gulshan-e-Maymar, Karachi-75340, Pakistan Tel: (92-21) 6351145-7 Fax: (92-21) 6350354 Email: [email protected] 3 Labour Rights in Pakistan Contents Foreword Section One 1. Introduction National Context War on Terror Political Turmoil and the Change of Government Faltering Economy, Rising Poverty 2. Legislation, Policies and Tri-partite Consultations: The Gaps and the Widening Chasm IRA 2008 The Workers' Perspective: Labour Charter 2008 Stakeholdrs' Efforts for Alternative Industrial Relations Law Tri-partite Labour Conference 2010 Services Tribunal (Amendment) Bill 2010 Labour Policy 2010 3. Status of Labour Rights and Workers' Struggles in Selected Sectors Manufacturing: Textile Industry (Garments and Power Looms Sectors) Manufacturing: Hand stitched Footballs Agriculture Fisheries 4. Women in Employment Section Two Special Articles 1. Enabling Equitable Access to Land & Fisheries (Dr. Ercelawn & Karamat Ali) 2. Food security (Dr. Shahida Wizarat) 3. Migrant Workers in Karachi (Noriko Hara) 4. Social Protection (Zeenia Shaukat) 5. IRA 2010: Route to Change (Zeenia Shaukat) 6. Minimum Wages and Collective Bargaining: Emerging Initiatives in the Informal Sector (Zeenat Hisam) 7. Brick Kilns and Bondage (Bisharat) 4 Labour Rights in Pakistan 5 Labour Rights in Pakistan Forword ecent work and a life lived in dignity and peace is central to human aspirations, to an equitable, inclusive and sustainable development and to the existence of a con- Dtent society. The terms and conditions of decent work that need to be valued in human societies encompass four elements: fundamental principles and rights at work and international labour standards; employment and income opportunities; social protection and social security; and social dialogue and tripartism. Do industrial relations in Pakistan are governed by these values? If yes, to what extent, and if not, what is the gravity of violations of these parameters? And how the workers and other stakeholders are responding to the challenges? The report on the status of labour rights in the country attempts to answer these questions to some extent, and very briefly. For, the issues are complex and intricately intertwined. A full and comprehensive exploration of all dimensions of the existing world of work is a gigantic task beyond the scope of this report produced by a small resource centre. In the first section of the report, an effort has been made to present a brief macro picture of labour, economy and politics, and then focus on workers' conditions and their struggles in just a few select sectors (agriculture, textile, brick kilns and the fisheries). In the second section, seven research articles on key issues (access to resources, food security, labour leg- islation, social protection, minimum wages, bonded labour and migrant labour) are pre- sented to share information and the researchers' insights. A few crucial areas remain to be explored, particularly occupational health and safety and unionization in the formal sector. Efforts will be taken to include these issues in the next report. The current report, developed by the PILER team, is the second on the subject. The first report came out in 2007. The present report thus covers a period between 2007 and 2010, a period of great political turmoil in the country and an economic down slide, but with a silver lining… Zeenat Hisam 6 Labour Rights in Pakistan Labour Rights in Pakistan 7 Section One 8 Labour Rights in Pakistan 9 Labour Rights in Pakistan 1. Introduction National Context vailed for contract workers in small, medium and large national and multi-national establish- he closing years of the decade (2007- ments in the formal sector. Share of informal 2010) were marked by political turmoil, employment (including vulnerable employment) Tescalating militancy and army operations rose to 73 per cent.5 under the 'War on Terror', economic crisis, increasing provincial disparities and a deepen- Pakistan has ratified the eight core ILO labour ing divide of Pakistani society along ethnicity, conventions. However, 'all the core labour stan- religion, ideology and class, impacting the work- dards are violated massively and flagrantly'6. force adversely. Global financial crisis of 2008 Informal sector and agriculture sector workers added to the morass at national level. Economic remained out of ambit of labour laws. In the growth slowed down to around 2 per cent in miniscule formal sector, labour inspection to 2008-09. The IMF assistance through Stand-By check violations remains suspended. The most Arrangement (SBA), approved in November disappointing act for labour during the years was 1 2008, lead to harsh fiscal policies. Under the the arbitrary enactment of the Industrial SBA, the government agreed to 11 strict IMF Relations Act, 2008, by the newly elected demo- conditionalities including elimination of all pub- cratic government without consultation with the lic subsidies, reduction in budgetary allocation trade unions who had waged a long struggle for social sector from 60 per cent to 45 percent, against the militarily imposed IRO 2002. The depreciation of currency to further 6-7 per cent IRA 2008, containing several new and all previ- and imposition of value-added tax (VAT). General ous major restrictions on workers' rights, lapsed subsidies on fuel and food were withdrawn on 30 April 2010 leaving a void, a halted labour between March and October 2008. The core judiciary and a disillusioned workforce. An 2 inflation went up to 17 per cent. The number of achievement, however, of the democratic gov- food insecure population was estimated at 45 ernment was the 18th Amendment (signed in to 3 million. Military expenditure increased mani- law on 19 April 2010) that abolished the con- fold. During the year 2009-10 Pakistan spent Rs current list and provided space to initiate the 249.858 billion on defense. In contrast, only Rs much-awaited recourse to provincial autonomy. 5.964 billion and Rs 22.6 billion were spent to health and education respectively. The silver lining in the grim scenario was the induction of democratic government that led to Shrinking opportunities for decent employment, expanded political and social space for citizens growing wage inequality and a rising share of and civil society groups and the gathering informal and vulnerable employment dominated momentum of the struggles and resistance the labour market. An estimated 61.9 per cent- movements initiated by the informal sector in absolute figures around 32 million out of the workers since the beginning of this decade. total 51.78 million labour force of 15 years of age and above-fell in to the category of vulnera- ble employment.4 Own-account workers and War on Terror contributing family workers, categorized as 'vul- he most disturbing events that severely nerable workers' in the current global discourse, impacted people, their lives, meager have inadequate earnings and are denied social Tassets, and livelihoods were armed con- security and effective representation through flicts and terrorists activities in the country signi- unionization. Similar precarious conditions pre- fying a deep-rooted malaise, related to the 10 increasing influence of extremist-militant reli- Punjab and Sindh. The Southern Punjab, home Labour Rights in Pakistan gious ideology. Violent acts by extremists- to thousands of madarsahs, was termed by ana- destruction of girls' school, music shops and bar- lysts as breeding ground of militant jihadis.8 bar shops and attacks on public places and According to a report, in 2009 the casualties in army establishments--increased in Swat when a terrorist attacks, operational attacks by the radical cleric, Mullah Fazlullah, urged his follow- security forces, intertribal clashes and the cross- ers to wage jihad to avenge Lal Masjid operation border attacks of the US and NATO forces in by the Pakistan army. FATA amounted to 12,632 people dead and 12,815 injured.9 The army carried out three operations in Swat from November 2007 onward, before launching Several analyst consider poverty, absence of a the full-fledged army operation in May 2009 to judicial system and writ of law, non-existing clean up Malakand Division of armed extrem- infrastructure and inequitable livelihood oppor- tunities in the Federally Administered Tribal he disparities between the rich and poor Areas as factors that pushed the populace Thave widened sharply. This, combined towards a militant religious ideology of jihad with growing poverty from 3 years of high that promises rewards and abundance of mate- inflation, is damaging social harmony. The rial comforts in afterlife. benefits of economic development during the previous 5 to 6 years have largely The most economically deprived province accrued to the richer and more educated Balochistan remained turbulent after the August because the bulk of this growth was wit- 2006 killing of its tribal-political leader Nawab nessed in the relatively skill-intensive sec- Bugti by the state. Inter-tribal and inter-clan vio- tors of finance, telecommunications, IT, oil lence continued along with skirmishes with and gas and in the capital-intensive indus- state personnel and sabotages against state tries of cement motor vehicles and motor infrastructure causing severe hardships to vul- cycles, in which those with limited skills, the nerable and poor communities displaced. In majority of the labour force, could not par- early 2007, an estimated 86,000 internally dis- ticipate meaningfully. placed people were living in make-shift huts under poor conditions sustained by UN feeding Report of the panel of Economists 2010 on Medium- centers and UNICEF support.