Labour and State Institutions

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.

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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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