GLOBALIZATION, CHANGING WORK ORGANIZATION AND LABOUR RELATIONS: A CASE STUDY OF PAKISTAN

Abstract

The study has analyzed the impacts of globalization on work organization and labour relations in Pakistan. It has examined various policy measures initiated by the Government of Pakistan to address the imbalances created by globalization. The study, in the end, presents certain recommendations for benefits of the working class, especially, for those who have been badly affected. It also suggests a way forward to capitalize on the process of globalization. The thesis highlights the far reaching effects of globalization on work organization and labour relations in Pakistan. The work organization has been flexibilized, disintegrated and informalized. It is characterized with contract labour, piece-rate work, home-based work, temporary labour and a bulk of self-employment. Most of production in the formal sector is being either contracted out within the factory premises or outsourced to different vendors in the informal sector. The informal sector is rapidly expanding and employing most of the new entrants in the labour market. Women and children constitute a chunk of the workforce in the informal and home based sectors. Poor working conditions, hazardous work environment and nominal wages are unpleasant features of these sectors. The workers cannot form unions. With shrinking boundaries, trade unions find it difficult to raise the voice for this unorganized segment of workforce which is confronted with a number of problems, like, job insecurity, deprivation from legal benefits, non-provision of labour rights, poor wages and lack of social protection. The study underpins that the role of Government under new setup has been restricted to that of a facilitator rather than a regulator. The labour laws, being outdated and voluminous, do not fulfill the requirements of modern times. The inspection under labour laws has not taken abreast with the developments of globalization. The study through two case studies of Saga Sports and Irfan Garments, has also analyzed the impacts of the policies of MNCs on the workers attached to the export sector industries. MNCs have their own company codes for their vendors to abide by. They have their own compliance mechanism to monitor the vimplementation through third party validation. The research establishes that in the absence of an efficient national inspection mechanism compliance of these company codes does not provide a long term solution to ensure provision of labour rights and social protection to all who work. The thesis has examined various policies, like, Labour Policy, 2002, National Policy and Plan of Action to Combat Child Labour, National Policy and Plan of Action for Rehabilitation of Freed Bonded Labourers, Labour Protection Policy, 2005, Labour Inspection Policy, 2006, and Labour Policy, 2010. It has also analyzed the reports of the Commission on simplification, rationalization and consolidation of labour laws and a Task Force for labour levies. The study in this context has found out that the real fruits of these policies have not been transmitted to the working class due to lack of capacity and poor implementation. The study has also highlighted the challenges being confronted by the policy makers and enforcement agencies in the wake of Eighteenth Constitutional Amendment and concluded that after abolition of the Concurrent Legislative List and transfer of mandate to legislate on labour to the provinces, their responsibilities have increased manifold. While legislating, they will have to ensure coverage for the uncovered and effective implementation of these laws. Special attention should be given to the workers of informal sector, contract labour, piece- rated, women labour and home based workers. At the same time, the Federal Government in consultation with the provinces may develop bare minimum standards which provinces should follow during legislation and implementation of labour laws. As a way forward, the study has recommended a complete overhauling of social protection schemes, special focus on elimination of child labour, particularly, of its worst forms and abolition of bonded labour. It has also recommended promotion of healthy trade union activities by allowing right of association to the workers of unorganized sectors, encouraging social dialogue, improving occupational safety and health (OSH) at the workplace, special measures for lady workers and a vibrant policy of human resource development to meet the challenges of international market.