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Labour economics and industrial relations
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By ABDUL AZIZ ARAIN
Aug 06 - 12 , 2001
The growth of large scale industrial and commercial
organizations have brought about the sub-ordination of human values
almost to property values
Population of the country contributes the source
from which its labour force is drawn. In Pakistan since independence
until the present time, the population has grown steadily. The
entrepreneurs and the employees had been concerned with the
socio-economic and political changes, besides the determination of
level of employment, un-employment, and the productive capacity of the
economy and sector-wise distribution of the employed persons within
the country due to concomitment efforts upon job openings, employment,
business opportunities, and other related economic growth factors.
The relationship between the size of population and
the resourcefulness of the population to maintain itself economically
was first analyzed in accordance with their natural relationship by
Thomas R. Malthus in 1798. Malthus determined that the population was
doubling every twenty five years. During the last 20 years 1981-2000
Pakistan population increased by 62% from 84.87 million to 137.51
million. Malthus pointed out that it was not possible to increase the
food resources so rapidly to meet the requirements of the increasing
demand of the population and laid emphasis that the growth of
population must be curtailed either by "positive checks" or
through "preventive checks." The theory set-forth by Malthus
was used as a basis for policy recommendations to business and
government. It could be concluded from his analysis that the effects
of an increase in the money, wages, paid to a worker would increase
the number of children rather than the raise in real income. Michael
Sadlar in 1828 wrote that the capacity to reproduce of human being
varies inversely with their numbers in a given space and time, the
increase of population in certain area increase the density, and the
rate of reproduction will decline. In 1842, Thomos Doubleday
maintained that the rate of increase in population is greater among
those who are worst supplied with food provisions. Herbert Spancer
alleged in 1864 that fertility is reduced as life becomes more
complex. A theory expounded in 1929, which is predominantly natural,
though it contains some social elements, is that population growth
occurs in cycles, according to this theory, youthful nations show
rapid increases, but with passage of time the rate of growth decline
and eventually there is a decline in the size of the population.
The most important factor affecting the population
of Pakistan has been the higher birth rate, and the birth control
policy have insignificant effects. The continuation of population
increase trend would result in the attainment of Pakistan population
over 172. million by 2010. Whereas the death rate has shown a
continuous decline. This reduction of death rate has resulted almost
entirely from a lowering of infant and child mortality and from a
reduction in maternity death and deaths from various diseases.
POPULATION AND LABOUR PROBLEMS:
Although the
population has continued to grow since the founding of Pakistan, over
the entire period, it is evident that the rate of increase has been
either increasing or constant. The rate of expansion of the population
and the working age composition of the people must be studied in
connection with labour problems. The number of workers, labour force
participation ordinarily and directly related to the size of the
population, influences the amount of competitions in employment.
According to the latest statistics available the population and the
distribution of employed persons by major industries division in
Pakistan is as under:
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Pakistan
- Population, Labour Force, and Distribution of employed
persons of 10 years age and above by major Industries -
Division - 2000
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|
Population |
137.51 Million |
. |
|
Labour Force |
39.45 Million |
(28.688%) of population) |
|
Un-Employment |
2.42 Million |
(6.134% of labourforce) |
|
Employment Labour Force |
37.03 Million |
(93.866% of labour force) |
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Distribution of employed labour |
|
• Agriculture |
16.35 Million |
(44.15%) |
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• Mining & Manufacturing |
4.15 Million |
(11.21%) |
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• Construction |
2.50 Million |
(6.75%) |
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• Electricity&Gas
Distribution |
0.36 Million |
(0.97%) |
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• Transport |
2.11 Million |
(5.70%) |
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• Trade |
5.45 Million |
(14.61%) |
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• Others |
6.15 Million |
(16.61%) |
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Source: Economic Survey of Pakistan, 1999-2000
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URBAN - RURAL LABOUR FORCE: The ratio of urban
and rural labour during the year 2000 is reported 33.39: 66.61 the
studies and investigations have shown that birth rates are higher in
rural areas, among the poor class, among un-skilled workers and among
those with least education. Such statistics help to explain the
changing industrial occupational and geographical distribution of the
working force.
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EMPLOYED PERSONS BY MAJOR
OCCUPATIONAL GROUPS -1999.
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|
Maior Occupational groups |
No: in Million |
% Shares |
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• Legislators, senior officials
and Managers. |
3.1 |
8.6 |
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• Professionals. |
1.3 |
3.6 |
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• Technicians and associate
professionals. |
1.0 |
2.8 |
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• Clerks |
1.1 |
3.0 |
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• Service workers and shop and
market sales workers. |
2.8 |
7.7 |
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• Skilled agricultural and
fishery workers. |
13.3 |
36.8 |
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• Craft and related Traders
workers. |
3.6 |
9.9 |
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• Plant & Machinery
operator and assemblers. |
1.7 |
4.7 |
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• Elementary (un-skilled
occupations). |
8.3 |
22.9 |
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Total: |
36.2 |
100.0 |
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Source
Economic Survey of Pakistan 1998-99. |
UN-EMPLOYMENT: Un-employment is an involuntary
state. An un-employed person is defined as one who is not working but
who is looking for work or gainful employment. The Labour economists
has made distinctions in between "un-employed workers" and
"under- employed worker" and "un-employables."
There are no standard classifications, a number of major groupings are
commonly focused in economic literature, such as frictional
un-employment, causal un-employment, seasonal un-employment, cyclical
un-employment, technological un-employment and down sizing. Frictional
un-employment involves the time lost in moving from one job to
another, rather than losses constrained from a lack of employment
opportunity. Frictional un-employment results from the incompatibility
of persons working together with other workers. Casual un-employment
results from the irregularity of the labour market in some trades and
industries. Seasonal un-employment is the term usually employed with
reference to those industries whose production is affected by the
climate and weather effects. The production, particularly of
agricultural commodities determines the employment opportunities of
farm labourers, and include the workers engaged in fishing, canning,
construction projects etc. Cyclical un-employment connected with the
business cycle is the most harmful type of un-employment in an
economy. Technological un-employment involves the displacement of
workers by the introduction of new technological machines or the new
invented productions processing techniques, and relate to greater
output with smaller number of workers and re-arrangement of plant
layout eliminating some workers.
Having realized the un-employment rate of about 6.1
per cent, the government is pursuing a multi-pronged employment policy
which focuses on revival of agriculture and industrial sector as well
as investment in Labour intensive sectors like small scale industry,
social sectors, rural development programmes, provision of credit
facilities for self employment, with the hope that these measures may
arrest the increasing trend of un-employment, the outcome and the
results are yet to be seen.
THE LABOUR MAKRET: Major employment
opportunities are provided by the government, (Federal or provincial
and local governments) and by private sector enterprises. Employees in
government service generally have greater security and have been
subject to less job connected tensions, but they have comparatively,
lower pay scales and less opportunity for promotion than employees of
private enterprises. There had been a tendency in the urban areas
towards the concentration of employments in the large companies, size
based on number of employees, rather on amount of capital. In the
recent years there has been a growth in the number of large size firms
and expansion in these firms.
The government is still the largest single
employer, such as tele-communication, Electricity, Railway, Telegraph
and energy sector and others. The rural areas women mostly engaged in
agriculture and domestic small enterprises, whereas the majority of
urban women are engaged in commercial and industrial organizations
related to office and commercial jobs. The growth of labour force is
not exactly correlated with the growth of the population. Women's
participation rate is lower than men's due to cultural taboos and
non-availability of suitable job opportunities. The female population
of Pakistan 66.123 million constitute 48.101% of the totai population.
NEED FOR INVESTMENT - ORIENTED LABOUR LAWS: The
Labour policy and the laws must be investment and employment oriented,
having conformity with the current dictates of modern era of
globalization. The business leaders are of the opinion that the labour
laws had outlived their utility and were not beneficial to the workers
either. The industry was being regulated extensively through multiple
labour laws and agencies, which negated the very concept of
privatization and liberalization. While comparing the labour
productivity in Pakistan, it was emphasized that it was one of the
lowest in the world and as such there was a pressing need for
developing linkage between productivity and various kinds of financial
benefits and remuneration, to the workers. It is observed that
inherently and fundamentally our workers had the potential of doing
hard work as they did while they are abroad. Need is to develop some
mechanism to exploit their full potential by providing them enabling
atmosphere in their own country, both through the efforts of
government as well as private sector.
INDUSTRIAL RELATIONS: The Constitution of the
Islamic Republic of Pakistan Article 17 and 18 guarantees the right of
association and liberty to choose a trade or occupation to every
citizen of Pakistan. Discrimination on the basis of gender, religion,
race and creed has been prohibited. Pakistan had ratified 32 ILO
conventions including five core conventions on human rights. National
labour legislation is brought in consonance with the international
labour standards through amendments in existing labour laws or by
enacting new ones. Keeping in line with international labour
standards, the government, through labour legisiation, fixes minimum
wages, terms of service and conditions of work and also confers on
workers and employees the right to settle industrial disputes
concerning employment and non-employment, terms of employment and
conditions of work through the process of Collective Bargaining.
Terms and conditions of employment bargained
between management and the CBA are over and above the minimum provided
under the law and the difference between the two levels of these
symbolizes the effect of suo motu action of employers and the
collective bargaining. Industrial peace and harmony play a pivotal
role in the smooth running of industries and business operations and
consequently the progress, development and prosperity of the country.
Government provide policy guidelines for resolution of disputes while
all major decisions are left to the two social partners to make within
the bounds of laws on equal opportunity and fundamental human rights.
PRESENT INDUSTRIAL RELATIONS POSITION: Employers
Federation of Pakistan recently conducted a survey on the Terms and
Conditions of Employment of workers in Pakistan, published in 1999,
inquiry was included in the survey about the Industrial Relations
prevailing position. The response, out of 216 organizations
participated in the survey indicated that 80 organizations do not have
a trade union, whereas remaining 136 organizations reported existence
of 221 trade unions. The findings of the survey indicate a good sign
of Industrial Relations and reported prevailing position. Workers
participation in management as under:
|
Workers Participation in
Management of Establishment |
No. of Companies |
Private |
Public |
Multi- national |
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(A) STATUTORY PARTICIPATION |
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• Ship Stewards |
54 |
32 |
03 |
19 |
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• Work Council |
66 |
41 |
04 |
21 |
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• Joint Management Board |
55 |
34 |
03 |
18 |
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• Labour Management Committee |
37 |
23 |
02 |
12 |
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• Canteen Committee |
80 |
45 |
08 |
27 |
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• Board of Trustees for
Workers, share in Companies profit. |
79 |
46 |
05 |
28 |
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(B ) NON-STATUTORY
PARTICIPATION |
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• Safety Committee |
42 |
27 |
04 |
11 |
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• Provident Fund Committee. |
72 |
42 |
05 |
25 |
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• Staff Welfare Committee |
26 |
15 |
02 |
29 |
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• Staff Sports Committee |
40 |
19 |
07 |
14 |
OVER-ALL DISCIPLINE
Through the survey questionnaire referred above,
the experience of Management with regards to workers' attitude and
discipline at work place was inquired. The findings indicate that
there is a greater peace and harmony at the work place as compared to
70s and 80s when there were frequent incidents of strikes and the
industrial scene was disturbed, because of friction between employers
and workers. Table below indicate majority of the firms are much
satisfied with the workers discipline these days.
|
Status of organizations |
No. of organizations |
DISCIPLINE STATUS (NO. OF
COS.) |
| |
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Excellent |
Good |
Satisfactory |
Un-satis
factory |
|
PRIVATE |
127 |
50 |
69 |
04 |
04 |
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PUBLIC |
20 |
04 |
15 |
0 |
01 |
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MULTI-
NATIONAL |
46 |
22 |
23 |
01 |
0 |
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TOTAL: |
193 |
76 |
107 |
05 |
05 |
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