EVERY year May 1 is observed as International Labour Day in several countries including Pakistan to commemorate the labour movement which ushered in various reforms such as capping work hours at eight and paid leave.

In Pakistan, seminars and get-togethers are organised on the day by the federal and the provincial governments as well as labour federations that highlight the miserable and distressful conditions of our workers. They also point out the flagrant violation of workers’ welfare laws regarding medical and old-age pension benefits by employers, facilitated by government functionaries.

As no action is taken by the government on the genuine and persistent complaints of the highest bodies that represent the country’s workforce, the situation is becoming worse with every passing year. The celebration of May Day in Pakistan has become a mere ritual without any commitment from the government to improve the living standards of workers and their families.

The existing minimum wage of Rs17,500 per month was last fixed on July 1, 2019. Since then, there has been no increase in the amount. Labour leaders want this amount to be doubled as it is difficult to believe how a worker can meet even the minimum expenses of a family within this paltry amount.

The celebration of May Day in Pakistan has become a mere ritual.

On the other hand, workers employed through contractors, especially janitors, are paid Rs4,000 to Rs5,000 less than this amount. A lot of dust is raised when the janitors sweep the roads but their employers do not bother to provide them with dust masks. It appears that the concept of providing protective equipment to unskilled workers simply does not exist.

Management of the following labour welfare legislations must to go back to the federal government with the consensus of the provinces, especially Sindh, without further loss of time: Employees Old-Age Benefits Act, 1976, Companies Profits (Workers’ Participation) Act, 1968, and the Workers’ Welfare Fund Ordinance, 1971. Their smooth and progressive implementation has been seriously hampered after the 18th Amendment.

Besides, the power to make amendments in the Provincial Employees Social Security Ordinance, 1965, should also rest with the federal government, as was the status prior to the 18th Amendment.

However, the federal government has not parted with the administration of the pension scheme despite the 18th Amendment and the promulgation of the Sindh Employees Old-Age Benefits Act, 2014. As the federal government has not transferred the funds to the Sindh government, the latter has not constituted the institution to run the scheme.

Since the federal government cannot make any amendments to the Act of 1976, there are serious disputes relating to the rate of monthly contribution paid by employers to the Employees’ Old-Age Benefits Institution. The employers’ pay them rates which vary from six per cent of Rs8,000 to 6pc of Rs13,000 per month for every insured employee. Increases in the amount of monthly pension allowed by the federal government after the 18th Amendment are also unlawful. However, being beneficial to poor pensioners, no one wishes to challenge them in court.

While Sindh has enforced its own Sindh Companies’ Profits (Workers’ Participation) Act, 2015, the other three provinces continue to follow the federal law of 1968, which has not been changed after the 18th Amendment was passed in April 2010. Consequently, the share in companies’ profits, which the workers get under the Act of 1968, is much less than that of workers of companies located only in Sindh.

The Punjab government does not want to annoy the federal government by having its own law for share in the companies’ profit. Balo­chis­tan and KP do not want to pro­mulgate their laws due to fewer industries in their jurisdiction as compared to Punjab and Sindh.

The bulk amount of profit contributed by companies under the 1968 Act goes to the fund constituted under the Workers’ Welfare Fund Ordinance, 1971. This fund is supposed to be used for providing items and housing for the welfare of workers. Over the last 10 years, the amount of this fund has substantially decreased.

Pursuant to an order passed by the Supreme Court in March 2021, the Sindh Employees’ Social Security Institution will be required to refund employers the difference in the amount of contributions paid by them in excess over the last 10 years or so. It is hoped that SESSI maintains its standard of medical services provided to secured workers.

The deteriorating situation of workers’ benefits can be reversed if the federal and provincial governments come to a mutual understanding. It will also free up the superior courts’ time spent on litigation relating to these acts and ordinances.

The writer is a consultant in employee relations at AKUH and teaches labour welfare laws at IBA.

Published in Dawn, May 1st, 2021