Conventional mindset takes a step back and thinks of Labour discussion to lead into enforcement of Labour Laws, Social protection coverage, dealing with public officials, litigations, Labour Unions and conventional contractors… Moreover, its all scary and undoable for many reasons… However, it is important to understand the perspectives of two main stream approaches i.e. capitalist and communists. Or, shall we bring religion into it, NO, not for now… at least.
First of all, we need to get hold of the figures in order to understand the financial impact of one resource / worker at minimum wage rate – Pakistan. Following table gives the figures in Pakistan Rupees.
Note: The above mentioned rates are based on minimum wage rate of Unskilled Labour – Rs. 20,000/- (The Punjab Gazette – Pakistan 2021-22)
- Overtime and Annual Leave encashment is conditional
- No Overtime work – No payment, if done, paid on double rate.
- If annual leaves availed – No payment, if not availed- @ single rate for balance Annual leave.
Further, the definition and details of Labour categories can be referred from the annual Gazette. However, briefly they are further categories as Ministerial (A,B,C), Highly Skilled (A,B), Semi-skilled (A,B), Unskilled, Miscellaneous (A,B-I,B-II). Moreover, Managerial and Supervisory staff are left for mutual bargaining between the employers & workers. Mostly, the gazette covers fifty eight (58) industries with conventional designations as applied.
Labour management is statutorily covered by Labour laws in Pakistan. These laws are so complex and complicated that their enforcement is a gigantic task. In spite of diligent compliance of Labour Laws, companies still feel fears of “Labour Inspection” and undue litigations. It leaves a sense of insecurity which mostly businesses are struggling to manage.
By law, workers benefits are covered through multiple institutional authorities for which employee contributes from his/her salary. In some cases, employer do participate partially into workers contributions. However, the capitalist approach takes it as an expanse over and above the regular salary for multiple reasons. it may occurs due to institutional mismanagement or malpractices. While, the workers could be managed privately by the businesses through their inhouse management of funds. Again, the sense of insecurity lies at all ends i.e. employer, employee and institutions.
Briefly, the worker benefit institutions includes:
- PESSI – Punjab Employee Social Security Institution
- Sickness Benefits
- Injury Benefits
- Maternity Benefits
- Iddat Benefits
- Disability Gratuity
- Partial Disablement Pension
- Total Disablement Pension
- Survivor’s Pension
- Death Grant
- Diet Charges
- Survivor Medical Care
- Conveyance Charges
- Hajj Facility
- Free Medical care
- Tahjeez o Tadfeen Fund
- WWB – Worker Welfare Board
- Marriage Grant
- Death Grant
- Talent Scholarship
- Hajj Scheme
- Free education in Worker Welfare Schools
- Other Periodic Schemes – Housing, Sewing Machine, Bicycle, Tricycle distribution
- EOBI – Employees’ Old Age Benefit Institution
- Pension Claim
- GLI – Group Life Insurance.
- Life Insurance.
Conclusion:
The objective of drafting this article is to identify the blind spots for those businessmen and decision makers who could not imagine the benefits a worker could enjoy (If every things due get to the due Worker). The business community of Pakistan is engaged in philanthropic practices in private i.e. Two Eid festivals, Rabi-ul-awal, Moharram and multiple other occasions especially in times of pandemics or crises – earthquake etc.
I believe and understand the intentions of most businesses are there to provide benefits but the confidence regarding the disbursement of their contributions might not end in right hands. further, businesses might want to get their accounts straight as far as contributions to the institutions are concerned but there is no proper functional consultancy available in right terms to proceed. (We at JYA Consulting provide Professional guidance, functional consultancy & JYA HRMS – including Labour best practices).
Last but not the least, the inflation has gone to high and sense of insecurity prevails about the future policies of the Govt. and institutions.
At the end, its a debate between capitalist and communist; the welfare state or survival; The cost and benefit scale vs. inner / self satisfaction… I hope the article helps to understand the borderline and the what it takes to take an initiative…. best of luck for your future endeavors…
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Special thanks to Syed Hasnat Shah – my mentor for Industrial Relations & Labour Crisis Management.
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