Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

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

The Committee notes the Government's report enclosing the Award of the Sixth Wage Commission for Banks and Financial Institutions dated September 1990.

The Committee's previous observations referred to inconsistencies between the national legislation and various Articles of the Convention:

- Article 4, limitations on free collective bargaining in the banking and financial sector (sections 38A to 38I of the Industrial Relations Ordinance, 1969); and

- denial of the rights guaranteed by Articles 1, 2 and 4 of the Convention for workers in export processing zones (section 25 of the Export Processing Zones Authority Ordinance, 1980) and employees of Pakistan International Airlines Corporation (section 10 of the Pakistan International Airlines Corporation Act, 1956).

1. The Government argues that the Wage Commission set up in the bank and finance sector took into consideration all points brought to its notice by the bank employees in their written replies to the questionnaires distributed to them and in hearings; the views of management in respect of these matters also received due attention. According to the Government, since neither workers nor employers in this sector have complained against decisions of the Wage Commission, the system is working well. The Committee notes from the 1990 Award (at page 6) the Wage Commission's comment that:

Almost all the employees' unions demanded that their right of collective bargaining must be restored. The demand is based to a certain extent on misconception. Their right to collective bargaining has not been affected. The only change brought about is that, instead of talking to the employers (managements) they are now talking to the Commission in a calm and peaceful atmosphere for their terms and conditions (of work). The Commission feels that the very purpose of setting up a high-powered independent Wage Commission periodically is to settle the differences for a reasonable period so that the institutions may carry on their work in peace. It, therefore, seems incongruous to think that in spite of the labours of the Commission and the time and money spent on it a state of confrontation should still be allowed to prevail in the institutions.

The Committee would recall that employees of banks and financial institutions, not being engaged in the administration of the State according to Article 6 of the Convention - even if this is a nationalised sector - should be accorded the right to bargain their terms and conditions of service directly with their employer without interference from outside bodies. Where machinery or specialised institutions are established to help arrive at bargained outcomes, they must be designed to facilitate voluntary bargaining between the two sides and leave them free to reach their own settlements (General Survey, 1983, paras. 301 and 304). As free and voluntary negotiation of conditions of employment is a fundamental aspect of freedom of association, the Committee requests the Government to re-examine the provisions of the Ordinance affecting the rights of employees in the banking and financial sector. 2. With regard to restrictions on the right to organise and to bargain collectively for workers in export processing zones and employees of Pakistan International Airlines Corporation, the Committee invites the Government to refer to its comments under Convention No. 87.