Observation (CEACR) - adopted 1989, published 76th ILC session (1989)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Pakistan (Ratification: 1952)

The Committee notes the Government's report and the information that it supplied to the Conference Committee in June 1988. The Committee also notes the observations made by the Pakistan National Federation of Trade Unions.

The Committee recalls that in the past it has identified divergencies between the Convention and legislative provisions relating to the employees of the Pakistan International Airlines Corporation (PIAC), to wage fixation in the banking and financial sector, and to the position of workers in export processing zones (EPZs).

Pakistan International Airlines Corporation

The Committee notes that section 10 of the Pakistan International Airlines Corporation Act, 1956 denies employees of PIAC the right to form or join trade unions, or to exercise the other rights which are embodied in Conventions Nos. 87 and 98.

The Committee notes, for example, that section 10(2) of the 1956 Act enables PIAC to dismiss any of its employees without giving any reason, without the employees having the right to appeal to a court and with only a very limited right to be heard. This provision gives the employer full latitude to dismiss an employee for any reason whatosever, and particularly for reasons that may be connected with trade union activities. The Committee points out that by virtue of Article 1 of the Convention workers shall enjoy adequate protection against acts of anti-union discrimination (paragraph 1), and more particularly in respect of dismissals by reason of union membership or participation in union activities (paragraph 2, subparagraph (b)). The Committee draws the Government's attention to the fact that, in order to give effect to the provisions concerning the protection of the right to organise, employees of the PIAC should in the first place be allowed, in the same way as any other worker, to participate in trade union activities (see its comments in this respect under Convention No. 87) and secondly to enjoy adequate protection against any discriminatory act respecting recruitment or employment. The Committee emphasises that, even if they are considered as public servants, employees of the PIAC must enjoy the protection of the Convention since they are not public servants engaged in the administration of the State (Article 6).

Wage-fixation in the banking and financial sector

The Committee has, on several occasions, drawn attention to the fact that sections 38A to 38I of the Industrial Relations Ordinance, 1969 as amended empower the Government to constitute a wage commission to fix wage rates and determine all the other terms and conditions of service in banks and in any other sector that may be specified by a government notification, and that these provisions restrict the exercise of voluntary negotiation as established under Article 4.

The Committee notes that, according to the Government's report, employees of banks and other financial institutions enjoy freedom of association and that in all these establishments the sole collective bargaining agent is determined by secret ballot. The bargaining agent is entitled to present to the employer a charter of demands relating to the employees' wages and conditions of service. These demands are then submitted to the wage commission which is presided over by a High Court Judge, and which gives the parties, namely the bargaining agent and the management, the opportunity to present their arguments. The Government states that on the last occasion that a Commission was established (1984) some 51 unions were invited to make submissions to the Commission before it reached its decision.

The Committee notes that, in the opinion of the Government, the decisions of the Commission are arrived at having full regard to the process of collective bargaining. According to the Government, this is borne out by the fact: (i) that the social partners are given the opportunity to discuss wages and employment issues through the agency of the Commission; (ii) that on no occasion has any party to the process questioned the impartiality of the system, and (iii) that the Commission has never made an award which lacked the support of either workers or management.

The Committee recalls that the principle of voluntary negotiation implies the establishment of procedures encouraging discussions between the parties with the aim of concluding agreements that are freely arrived at. In the Committee's opinion, if, in order to facilitate negotiation, bodies and procedures are established, their intervention should not result in restrictions on the scope of negotiation or the independence of the parties. Accordingly, the Committee requests the Government to keep it informed of any future developments in this area - in particular, whether a further Commission has been established, the outcome of its deliberations, and the reactions of the parties to that outcome.

Export Processing Zones

With regard to restrictions upon the right to organise and to bargain collectively for workers in EPZs, the Committee invites the Government to refer to its comments under Convention No. 87.

The Committee trusts that the Government will take the necessary measures in the near future concerning the matters discussed above in order to give full effect to the requirements of the Convention.