Published in Dawn, March 21st, 2021
No aspect of labour economy is as divisive and as controversial as minimum wage. On one side are economists and employers who think minimum wage creates distortion in the labour market, leads to unemployment and lowers productivity. Add to this the anti-poor section who thinks the poor are lazy, illiterate and deserve low wages! On the other side are sociologists, political economists, pro-poor policymakers who think all human beings have a right to a decent living and thus need a wage floor to put their feet on the ground so as not to fall into the abyss of poverty.
Debate on minimum wage has intensified in the 21st century since the American economists challenged the classical view and presented empirical evidence that minimum wage increases do not have adverse effect on employment in Myth and Measurement: The New Economics of the Minimum Wage in 1995. Factors which impact productivity are workers’ education and skills and technology. However, these topics, worthy of greater debate in Pakistan, do not receive as much attention or ignite sentiments as does minimum wage.
Published in Dawn on August 22, 2017
Surrealism runs through the streets…
— Gabriel Garcia Marquez
GARCIA Marquez’s description of the reality of Latin America fits snugly into scenarios here. Or so it seems. How else would you convey the reality of several worldviews that are bizarre but that actually exist? What strange stories are hidden in the harsh realm of workers and the multilayered reality of, say, a public-sector enterprise that shut down its operations in June 2015 and still has on its payroll 12,000 employees?
When I rang up Mirza sahib, an employee at the Pakistan Steel Mills since the 1980s, and asked if we could meet, he said, “I am stationed in Dalbandin”. It was eerie to hear the melodious name of that faraway town in Balochistan. How come he ended up there? A punishment for activism, a case of enforced transfer, I am told. The PSM has a small iron ore project, now closed, in Chagai district. “The machines are lying on a hill and there is nothing to do.”
Published in Dawn, June 4th, 2017
WHILE we often marvel at how the IT revolution is changing our culture, trade, commerce, banking and entertainment, and bask in gadgetry — mobile phones, laptops, LEDs, WiFi etc — we seldom wonder why the benefits of low-cost circuitry is not reaching areas where it is needed the most ie hazardous workplaces.
In the context of business and trade in our country, the purpose of IT is usually efficient management and productivity enhancement — and hardly the health and safety of workers. So it came as a pleasant surprise to learn about a young IT graduate’s resolve to make mining safer through designing and producing ‘smart helmets’ based on cost-effective ZigBee wireless technology.
Published in Dawn, May 1st, 2017
THE world of labour has gone through great turbulence. Globalisation, restructuring, deregulation of economies and technological changes have reshaped labour relations. Precarious, informal employment and diverse contractual forms of work have replaced traditional permanent employment.
The supply chain production system has left the workforce dispersed in various unconnected spaces, shrinking the power of labour unions. Legal frameworks based on old employment relations models no longer protect workers. This has led to a global debate on labour law reforms to address adverse impacts of change.
Published in Dawn, March 30th, 2016
ONE of the many contradictions of our society is between its loud avowal of its love of the ‘family’ institution and its devaluation of woman, the pivotal figure in the family. Not only do we look down on women inside the family, we give two hoots about women who commit themselves to door-to-door healthcare services for the women and children of the family. No wonder the issues being faced by lady health workers — job security, timely payment of wages and supplies of kits and medicines —remain to be addressed fully by the state.
THE railway system, one of the pillars of the Industrial Revolution, transformed societies, including the subcontinent, economically and socially. Henry Bartle Frere, chief commissioner of Sindh(1850-1859) had commented on the massive railway network the British planned. He said that it would unite not only the “distant provinces in one bond of material prosperity” but bring “distant peoples and races” closer to each other.
After 1947, the railways took different trajectories in India and Pakistan. While India maintained and enhanced the railways, the network saw gradual decay in Pakistan, destroying livelihoods, robbing people of prosperity and crushing their dreams and passion for their vocation — as engine drivers, boiler men, station masters, signalmen and more.
Published in Dawn, August 12th, 2014
Labour relations, or industrial relations, refer to a system of governance of interaction between employers, workers and the state. Based on the concepts that set the ground rules for governance of a tricky relationship between two unequal partners — employers and workers — labour relations are worked out under a body of legislation and administrative procedures mediated and implemented by the state. The role of the state is crucial in determining the direction and the policies of labour relations.
Let’s begin with the Labour and Human Resources Department, Sindh which carries out eight tasks related to labour relations (law enforcement, dispute resolution, labour courts, social security, vocational training, facilitation of employment, minimum wage fixation, labour welfare) through seven attached departments. The Directorate of Labour is one of the seven departments and is entrusted with the tasks of trade union registration, determination of collective bargaining agents, settlement of industrial disputes and enforcement of labour laws.
PAKISTAN ranks as the sixth richest country in respect of coal reserves but those who dig out the black gold from the depths of the earth are the most exploited section of the workforce. Descending into dark, airless tunnels, miners extract coal from simple tools, inhaling coal dust, fearing methane gas explosions, fires, cave-ins, poisonous gas leakages and haulage accidents.
Out of the mines, the workers endure harsh conditions in makeshift mud shacks nearby, or in villages devoid of all basic facilities. Mine workers in Pakistan get a pittance for work considered one of the highest-risk activities in the world in terms of safety and health.
Early June is the time the workers in Pakistan hope for some respite in managing their meager household budgets and look forward to a raise in minimum wage announced with the annual budget of the country. The minimum wage for unskilled workers currently in Punjab, Sindh and Khyber Pakhtunkhwa is Rs10,000 per month, while in Balochistan it is Rs9,000.
With the current family size of 6.8 and 1.5 earning members per family in Pakistan, a monthly income of Rs10,000 translates into Rs73.52 (less than one dollar) per person per day in the household. The picture gets gloomier when we look at the national average monthly wages reported in Pakistan Labour Force Survey 2012-2013 — 20pc workers earn up to Rs5,000 and 41.73pc make an income between Rs5,000 to Rs10,000. With a 9pc inflation rate, minimum wages in real terms amount to even less.