WITH the current price spiral at one end of the spectrum and dwindling profits at the other, industrial relations are getting trickier by the day.

At present, there is a (Federal) Industrial Relations Act, 2012, in addition to similar acts of the provinces. Provisions of all the five acts are almost the same, primarily dealing with the formation of trade unions and constitution of various forums of workers and their functions.

The representative union of workers, called the Collective Bargaining Agent (CBA), possesses vast powers, including the right to take up workers’ issues and demands with the management of the company. A key responsibility of the CBA is to formally raise demands on behalf of its workers, negotiate their revised terms of employment and reach an agreement with the management, which is usually for two years.

Companies that are progressive in approach follow this requirement of law in letter and in spirit, and start preparations for negotiations much in advance. However, over the last one year, the Covid pandemic has negatively impacted many facets of life. As a consequence, the economic damage of the lockdowns, faced by most of the companies having manufacturing units, has brought in a state of quandary for the employers who are at a loss to figure out how to amicably conclude agreements with their respective CBAs.

Resultantly, management-CBA agreements are getting exceptionally delayed as both parties are confronted with a difficult situation related to their respective capacities to concede to the other. CBAs are trying to justify their demand for an attractive package for the agreement by quoting the rising cost of living and high prices of items of daily use. Employers are telling the CBAs of their much lower paying capacity than the previous years due to the financial downturn caused by the pandemic.

As both the parties are right from their own perspective, they should endeavour to strike a realistic deal without further loss of time. Delay in reaching agreements will be in no one’s interest. The CBAs should convince their electorate to expect a lower package this year than what they have been getting in the past due to the prevailing circumstances. Similarly, the employers should ensure that the packages which they offer are sufficient enough to cater to their workers’ needs till the next agreements.

Parvez Rahim

Karachi

Published in Dawn, March 27th, 2021