minimum wage

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Wage Theft

Published in Dawn, March 18th, 2023

THREE years have gone by since the WHO declared the Covid-19 outbreak a pandemic on March 11, 2020. Termed as the world’s most serious humanitarian crisis since World War II, it is still being debated whether the pandemic is over or not as new infections and deaths occur in a number of countries. By February 2023, 6.8 million people had died. Besides, hundreds of millions of people lost jobs globally, millions saw their salaries cut or work hours reduced. Most countries have not yet returned to the levels of employment and hours worked before the outbreak. According to an ILO report, informality and working poverty have risen further with the Covid-19 crisis.

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Gas infrastructure & communities

Published in Dawn, March 4th, 2023

NATURAL gas has played a major role in Pakistan’s energy matrix since the first large reserve was discovered in Sui, Balochistan, in 1952. Significant gas fields of smaller sizes were discovered subsequently and made operational in the provinces, particularly Sindh where the gas reserve at Mari was discovered in 1956, and the Qadirpur and Miano gas fields in the 1990s. Since then, exploration, discoveries and oil and gas production have continued.

Oil and gas extraction requires huge capital, sophisticated technology and highly skilled labour. The first beneficiaries are thus the investors — operating companies and management (national or global corporations).

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Workers in Türkiye

Published in Dawn, December 20th, 2022

“Once you’re in their books, you’re done for. … they’ll ask you what you do, how much tax you pay, where you’re registered, how much you make, and are you left wing or right wing.”— Mustafa Efendi, a character in A Strangeness in My Mind by Orhan Pamuk

WHEN you think of informal labour in Türkiye, the image that comes to your mind, if you read this, is the life of a street vendor in Istanbul, unfolding amidst diverse layers of changes: personal, social, political, environmental, ecological in the wake of urbanisation and the melding of tradition with modernity. The saga of change, chronicled by Pamuk in the novel, spans four decades from the 1980s to 2000s.

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Workers & Mobility

Published in Dawn, November 21st, 2021

ONCE upon a time, Karachi’s Shaheed-i-Millat Road comprised two narrow and uneven metalled roads, with a dirt-and-dust field in between. It looked vast to us children who crossed it every day to reach school, a 15-minute walk from home. Serving a number of peaceful neighbourhoods, the artery connecting Sharea Faisal with Jail Chowrangi was later developed into a double-track shahrah with a green median strip, service lanes and traffic signals at six chowrangis. Plant nurseries sprang up on the sides. For decades Shaheed-i-Millat Road was a delight for the eyes, despite its drastic land-use change from residential to commercial. 

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Nobel Prize and Minimum Wages

Published in Dawn, October 27th, 2021.

The Nobel Prize for Economics for the year 2021 awarded to David Card for his contributions to scholarship on minimum wages has vindicated trade unions, labour and human rights advocates and pro-labour economists the world over. Card’s work in 1994 refuted the long-held hypothesis that increases in minimum wage reduces employment. At the time, 90 per cent of professional economists believed that a hike in minimum wage was bad for the economy. In Myth and Measurement: The New Economics of the Minimum Wage, Card and Alan Krueger presented evidence that minimum wage hike has either no effect or a positive effect on employment.

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Mountain Livelihoods

Published in Dawn, June 10th, 2021

Mountains and valleys evoke beautiful images in the mind of big city dwellers, of peace and quiet, lightness of being, and the absence of the madding crowd. We presume the life of the people who live inside the fascinating landscape to be as blissful. Once you are there, it does not take much to realise that the people living at the edge — where the land merges into mighty mountain ranges — face immense hardship.

Mountain people depend on subsistence agriculture, wage labour, circulatory labour migration, tourism and mountaineering services for survival. Opportunities for government employment are limited. Most households survive on a combination of livelihoods. The people of Shigar and Ghanche districts, whom I met during a trip to Skardu, talked of many challenges. These included the absence of livelihood opportunities except tourism, scarcity of water, poor road networks, inadequate social infrastructure, climate change and frequent landslides.

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Minimum Wage – The Bare Essentials

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.

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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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