ISLAMABAD, July 15: Despite the passage of about four years, the PPP-led government has yet to fulfil its promise made with workers of the banking sector about repeal of what trade union leaders call a black law because it restricts union activities.

The controversial clause 27-B of the Banking Company Ordinance 1997 was promulgated during the second government of Nawaz Sharif. It was aimed at weakening unions in banks and financial institutions.

Union activities were banned during bank office hours, gathering of a few people within bank premises was prohibited, no unionist was allowed to talk to the bank management with respect to employees’ issues and use of bank premises and properties for union activities was disallowed.

Former prime minister Yousuf Raza Gilani in his first speech had promised his government would abolish all laws which were in conflict with the rights of workers.

Union leaders of the banking sector have been continuously campaigning for the restoration of union activities in banks and the government repeating its promise, but so far no practical steps have been taken to resolve the issue.

Mr Gilani at a labour convention on Oct 1, 2009 had said that anti-labour laws, including clause 27-B of the Banking Company Ordinance, would be abolished.

The government repealed laws like the Removal from Service Ordinance 2000 and Industrial Relations Act (IRA-2012) for protecting the rights of workers associated with PTCL, Railways, PIA and Post Office, but 27-B had not been abolished so far.

Workers and trade union leaders of banks and financial institutions have expressed resentment over what they said the apathy of the government to keep its words about 27-B.

They termed it a discriminatory statute inserted in the Constitution in order to deprive workers of the banking sector of their right to union.

This gave a carte blanche to the government to privatise banks to friends and favourites and bank management to provide loans to kith and kin without any check.

The chairman of the Organisation for Employees of Banks and Financial Institutions, Malik Mohammad Hussain, said the failure of the PPP government to remove the anti-labour law exposed its claims of being pro-workers.

He said that the ruling party was so swift in doing legislation when the matter was concerned with its own interests.

Mr Hussain cited the example of the recent contempt bill which was pushed through both houses of parliament in days and signed by President Zardari into law the very next day. But an issue which is concerned with the labour class could not be legislated in four long years.

He said that performance of banks had been badly affected after 27-B. Embezzlements, loans write-off and scandals of favouritism in loaning have increased.

He alleged that some banks had been privatised at throw-away prices. United Bank Limited was privatised at Rs12.5 billion, which is less than the price of any UBL building in different cities, he added.

OEBFI president Noor Afsar Chaudhry said the controversial law was inserted in order to give the rulers and bank management a free hand to violate rules and regulations.

He said that they had also written to President Asif Zardari about restrictions on unionism in banks, but no response came despite the passage of one year.

It is the last and very difficult year for the PPP and it had better fulfil its promise about 27-B.