KARACHI, April 20: The provincial labour department has finalised a draft law for the regulation of relations between employees and employers after June 30, 2011, when the National Industrial Relations Commission (NIRC) will stand dissolved in the wake of the 18th constitutional amendment.

A stakeholder privy to the latest process of the legal documentation related to trade unions and forestalling or settling of differences or disputes between employees and their respective establishments confided to Dawn that the provincial labour minister had also been given a copy of the draft law.

The draft laws which may be called the Sindh Industrial Relations Act (SIRA), 2011, prepared by a 31-member committee, suggest application of laws, among others, on persons engaged in the informal sectors, including fishing, agriculture and mining as well, added the source.

In contrast to the provisions of the Industrial Relation Act, 2008, the provincial act will also allow the persons employed as members of the watch and ward, security or fire service staff of an oil refinery, an airport or seaport or an establishment engaged in the production, transmission or distribution of natural gas or liquefied petroleum gas to become a part of a trade union.

It was further learnt that the provincial industrial relations commission to be instituted under the proposed laws as a replacement of the NIRC would look into the matters pertaining to adjudication and determination of industrial disputes and determination of the collective bargaining agents among industry-wise trade unions and federation of trade unions at the provincial level, while the responsibility of registration and regulation of trade unions of workers would rest with the provincial registrar or and a regional registrar who would be notified by the provincial government.

Provincial Labour Director Meer Mohammad Baloch told Dawn that as per the federal government’s decision to devolve responsibilities of the labour ministry and its various forums to the provinces, Sindh needed to revisit the related laws and convert them into provincial legislations in line with the spirit of the 18th amendment.

In the coming few weeks a lot of exercises and interactions between the federal and the provincial governments are expected for the completion of the devolution process pledged under the 18th amendment, he said.

There were at least 11 labour related laws, including the Workmen’s Compensation Act, 1923 and child labour provisions, which would be taken up on a priority basis to streamline the labour-related issues, he added.

He further said that a consensus draft of SIRA had been finalised at the labour directorate jointly by representatives of workers and employers, the government and the Workers Employers Bilateral Council of Pakistan (WEBCOP) recently an approval by Chief Minister Syed Qaim Ali Shah and subsequent presentation in the provincial assembly.

According to a source privy to the drafting of the proposed SIRA, under the 18th amendment passed by the National Assembly in April, 2010, the abolition of the concurrent list — which includes the areas where both the federal and provincial governments could legislate — is required.

The abolition will result in the elimination of a number of federal ministries, divisions and departments and devolution of the subjects they deal with to the provinces through the implementation committee set up by the government, latest by June 30, 2011, says the source.

The general-secretary of the All Pakistan Trade Union Congress, Shouket Ali, said that the latest draft had been developed by a tripartite committee constituted by the provincial labour department and had been handed over to the provincial labour minister for legislation by the assembly.

A key provision of this draft is the conversion of the NIRC to the Sindh Industrial Relations Commission. The NIRC is an important judicial forum in labour matters and has been operating at the national level since its inception 40 years ago, he added.

A trade-union leader said that the Workers Welfare Fund Ordinance, 1971; Companies Profits (Workers’ Participation) Act, 1968; and the Employees Old-Age Benefits Act, 1976 also needed revisits while, on the other hand, the devolution of funds accumulated under various labour accounts at the federal government level also needed to be ensured in due course of time.

The Sindh Assembly had unanimously passed the Industrial Relations (Revival and Amended) Bill, 2010, by reviving the Industrial Relations Act, 2008, which expired in April, 2010.

Sindh Chief Minister Syed Qaim Ali Shah had told the members of the assembly at that time that his government would make further positive amendments if needed in the revived and amended Act of 2008.

The Punjab government had issued the Punjab Industrial Relations Ordinance, 2010 on in June, 2010, which added sub-Section (h) under its Section 1(3) and abolished the Industrial Relations Commission and its powers and functions had been conferred on the provincial registrar of trade unions, labour courts and the labour appellate tribunal and it had provided saving and transfer sections 82 and 83 in it, according to a labour law consultant.

It was said that in the development of the new legal draft related to trade union activities, the committee constituted by the Sindh labour department largely relied on a consensus draft prepared by Webcop for enactment at the national level following the expiry of the 2008 Act.

According to the new draft, all cases relating to the provisions of Sindh at present pending in NIRC shall be transferred with record to the proposed SIRA, which shall continue proceedings in cases transferred under the new provisions from the stage at which it was pending before the NIRC.

Employers and workers rights Like the previous Act, the new draft calls for trade unions and freedom of association.

Any trade union may, under the signature of its president and secretary, apply for registration of the trade union under the proposed Act.

In case of a cancellation of the registration following decisions of the labour court or the registrar, the trade union concerned may prefer appeal to the tribunal or the labour court within 30 days of the passing of the orders in question.

The registrar, among other functions and powers, may lodge or authorise any person to lodge complaints with the labour court or commission for action, including prosecution, against trade unions, employers, workers or other persons for any alleged offence or any unfair labour practice or violation of any provision of the proposed Act or for expending the funds of a trade union in contravention of the provisions of its constitution.

The draft in question further says that an employer has the right to manage, control and use the enterprise property and conduct its business in any manner considered prudent and satisfactory by it. The employers will also be duty-bound to protect and safeguard the interest and welfare of its workers to obtain maximum productivity and output to the mutual advantage of the enterprise.

On the other hand, it will be the right of workers to work according to the job assigned and to receive wages as per agreed terms and conditions of employment and to such welfare benefits and safety measures as one is entitled to according to law, agreement settlement and /or award.

The employer/s has/have the right to manage the enterprise effectively and efficiently by finding the best use of its available resources, including human resources in most prudent and fruitful manner in the general interest of the enterprise, the draft law concludes.