Trade Unions’ New Challenge

Published in Dawn, February 6th, 2021.

Just six months before the Covid-19 pandemic hit the world, trade unions had reiterated the urgency of protecting workers’ rights on a global platform and warned against “an unprecedented level of income inequality, shrinking democratic space and an age of anger where corporations have too much power and people too little”. This was at the 100th conference of the International Labour Organisation held in May 2019.

Then came the pandemic which wreaked havoc on peoples’ lives and livelihoods across the board. In Asia-Pacific alone, about 81 million jobs were lost by December 2020. Cases of violations of workers and trade unions’ rights with regard to lay-offs, working hours and the payment of wages increased manifold.

Though trade unions have weakened globally in the 21st century, their role is still considered vital in promoting equity and stability in society and their participation essential in tripartite and bipartite social policy dialogues. Trade union density across the world varies from high (90.4 per cent in Iceland) to medium (43.2pc in Egypt) to low (12.6pc in India) and very low (2.3pc in Pakistan).

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Minimum Wages in the Time of Globalization

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.

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