Impact of Eighteenth Amendment on Labour Laws
The
Eighteenth amendment in the constitution was unanimously passed on 19 April,
2010 which introduced changes in 102 out of 280 Articles of the Constitution of
Pakistan through amendments, insertions, additions, substitutions or deletions.
Background – Laws of Industrial Relations
Background – Laws of Industrial Relations
At
the time of independence of Pakistan in 1947 there were few laws on the subject
of labour i.e. the Trade Unions Act 1926 and the Industrial Disputes Act 1941
etc.
The
Trade Unions Act 1926 was mainly intended for registration of trade unions, to
specify their functions, privileges, power and other identical matters. The
Trade Unions Act 1926 was modified by Trade Unions (Amendment) Ordinance 1960.
In March 1968 West Pakistan Trade Unions Ordinance 1968 was promulgated.
As
far as Industrial Disputes Act 1947 is concerned, it deals with investigation
and settlement of Industrial Disputes by or through works committees,
conciliation forums, Court of inquiry and tribunals etc. This Act was repealed
and replaced by Industrial Disputes Act 1959. In March 1968 West Pakistan
Industrial Disputes Ordinance 1968 was promulgated.
In
1969, the Industrial Relations Ordinance 1969 was enacted to amend and
consolidate the laws relating reformation of trade unions and to achieve
uniformity. Then Industrial Relations Ordinance 2002 came into field which
repealed the previous law. The Industrial Relations Ordinance 2002 was repealed
by Industrial Relations Act 2008. The Act of 2008 was a temporary legislation
as its ending date was mentioned in it and this law stood repealed on 30 April
2010.
Meanwhile
18th amendment came into field and provinces started legislating
their own provincial law on subject of Industrial Relations i.e. Punjab
Industrial Relations Act 2010, Sindh Industrial Relations Act 2013, Balochistan
Industrial Relations Act 2010 and Khyber Pakhtunkhwa Industrial Relations Act
2010 are holding the field in respective provinces.
In
addition to these provincial laws, An Industrial Relations Act 2012 is enacted
by federal government in compliance of ILO convention No. 87 on Freedom of
Association and convention No. 98 on right to organize and collective
bargaining and to regulate matters in the Islamabad Capital Territory and
trans-provincial establishments and industries.
Abolition of Concurrent Legislative List
Concurrent
legislative list of Federation and Provinces was abolished through 18th
amendment resultantly Labour legislation became provincial subject of
legislation. Concurrent legislative list was containing the subjects of “welfare of labour; conditions of labour,
provident funds, employer’s liability and workmens’s compensation, health
insurance, invalidity pensions and old age pensions”.
Provincial Autonomy
After
18th Amendment, provinces have started legislating on subject of
Labour. Provinces have legislated almost on all major subjects of labour laws
except laws of Employees Old Age Benefit, Companies Profit (worker’s
Participation) and Worker’s Welfare Fund however province of Sindh has passed
its own Sindh EOB Act and Worker Welfare Fund Act.
Outcome of Devolution
Employees in devolved institutes of public sector have faced issues of promotions and other privileges
however provincial governments are complaining that funds are insufficient for
proper absorption of employees and continuation of institutional projects.
Private
sector employees who are working in transprovincial organizations are suffering
from various issues mainly distant forums for registration of trade unions and redressal of grievances. They are also affected from inconsistencies in legislation by
provincial assemblies.
Most
common issues are fixation of minimum wages, rate of EOBI contribution and
categories under Companies Profits (workers’ participation) Act for share
in Company’s profit, jurisdiction of Labour Courts and NIRC on various subjects
and scenarios.
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