ISLAMABAD, Feb 25: The government on Saturday ruled out the repeal of Section 27B of the Banking Companies Ordinance, 1962, that denies workers right to trade union activities as the opposition termed the law unconstitutional and a violation of the provisions of International Labour Organization (ILO).

A meeting of the Parliament Standing Committee on Finance and Revenue held to review the amendment bill on the Banking and Companies Ordinance ended here inconclusively.

Minister of State for Finance and Revenue Omar Ayub said that the Section 27B curbed the disruptive union activities, which had adversely affected the working of the financial institutions bringing them to the verge of collapse.

He said there was no question that the government would repeal the section because it was neither repugnant nor inconsistent with any article of the Constitution.

BNP-M MNA Abdul Rauf Mengal, one of the movers of the bill, told Dawn after the meeting that the government was unable to defend its stance because the law violated the basic labour rights, Article 7(1) and (3) of the Constitution and Section 7(1) (d) of the Industrial Relations Ordinance (IRO), 1969.

“The government says it has banned trade unions because it encouraged the arms culture and violence inside organizations. We say that this law is violating all the norms of labour laws and the Constitution,” Mr Mengal said.

Other movers of the bill — MNAs Chaudhry Manzoor Ahmed, Shagufta Jumani, Zulfaqar Ali Gondal, Imtiaz Sardar Warraich and Syed Khurshid Ahmed Shah — maintained that the report of Justice Shaffiur Rehman Commission had also recommended deletion of the section.

The ordinance dealt with the functions and operations of banking companies and did not regulate the functions of trade unions, which were covered under the Industrial Relations Ordinance (IRO), they observed.

Mr Mengal said the standing committee had directed the ministry of finance and revenue to continue deliberation on the section with the movers of the bill in order to find a way to the issue.

He said the next meeting of the committee would be held soon.

MONEY LAUNDERING: The committee also discussed the Anti-Money Laundering Bill, 2005, the Banking Companies (Appointment of Legal Advisers) Amendment Bill 2005, and the Public Investment (Financial Safeguards) Amendment Bill, 2005.