Industrial relations in Pakistan have evolved over time through various laws and policies. Currently, the system involves trade unions forming to represent workers that engage in collective bargaining and conflict resolution processes with employers as outlined in the Industrial Relations Ordinance 2010. However, challenges remain such as low union incomes, feudal systems, and restrictions on certain groups joining unions. Ongoing trends include efforts to increase employment opportunities, protect workers' rights, and address issues like the gender gap in the workforce.

1. INDUSTRIAL RELATION
Presented by:
Maryam Nasrullah
Aniqa Kiran
1

2. Over view
 History
 System
 Structure
 Collective bargaining
 Challenges
 Changing trends
 Political affiliation
2

3. IR
Industrial relations are the
efforts made for the resolution of the
differences between employer and employees, on
objectives and values , profitability sharing and
social justice. Discipline and authority, freedom and
industrial democracy, collective bargaining and co-
operations. (Lester R. A,1951)
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4. History of IR and TU Of IR and
Trade Unions
4

5. Pre- independence era
 At that time there were only two major
important laws by British rulers
I. Employers and Workmen Dispute Act,
1860
II. Indian Factories Act, 1881
5

6. After the first world war
After the FirstWorldWar strikes by the labors
were reached at the highest rate of the era so ,
That resulted in the creation of two important.
I. The IndianTrade Union Act, 1926.
II. Trade Disputes Act, 1929
 The Industrial Disputes Act 1947 was made
(Amjad, A & Mahmood, K. 1982).
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7. After Partition
 After partition Pakistan implemented many
industrial legislation development rules by the
British Rulers i.e. Factories Act 1934,Trade Union
Act 1926, Industrial Disputes Act 1947, Industrial
Employment Act 1946.
 Till 1952 in Pakistan Industrial Relations were not
very strong and there were no proper rules and
laws in the country ( Candland , 2007)
 Then On 15th August 1955 first Government
policy was made after the independence .
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8. 
 policy was abolished by the General Ayub
Khan in 1958.
 Next year on 4th February 1959, second labor
policy in the country was made named as
Burki Labour Policy , this policy allowed the
government to directly involve in the
negotiation and conflict resolution between
employers and employees.
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9.  Later in Later Bhutto saw this as an
opportunity
 He made a people labor Federation .( shah,
2010) .
 General Zia in 1977 again imposed the
martial law on the country..
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10.  During Junego’s Government they Got
some right and ban was partially lifted still
most of their activities and powers were
banned.
 In 1989 in the firstTenure of Benazir
Bhutoo’s ban on the trade unions was
completely lifted
 After that in Nawaz Sharif and Benazir
Bhutto’s Government.
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11.  In 2002 General Mushrraf from the start of
his Government made some very strict laws
to limit the activities of the trade unions i.e.
Industrial Relations Ordinance 2002
 Besides this other anti labor laws and policies
were made.
 Then later on in the Gilani's regime, some
reliefs was given to employees and Zulfiqar
Ali Bhutto policies were followed.
11

12.  Government also announced theWelfare
Fund Ordinance, Employees Old-Age Benefit
Act, amended Industrial Relations Ordinance
with enhanced protection of worker, all these
policies and ordinance are followed till now
12

13. System Of industrial
relation in Pakistan
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14.  In Pakistan IR are more common in public
sector as compared to the private sector.
 During the past 15 years its been noticed that
average number of members in any trade
union are 135 per union.
 In September 2005 three affiliated unions by
the International Confederation ofTrade
Union (ICFTU) merged into the Pakistan
Workers Federation (PWF) and become a big
unit.
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15.  Unions use Collective Bargaining Approach to
resolve their conflicts with the employers.
 influence Government legislation through strikes
and other activities. ( Donas , 2005)
 The law of the Pakistan allows the employees
and employers to form their unions according to
the Industrial Relation ordinance Act of 2008.
 Law also allows to join any Umbrella
Organization to the trade unions to raise their
funds and influence to government and
Employers..
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16. The formation Process of
unions
 The formation procedure structure is
published by The Pakistan Labour Gazette.
Provides all the data related to the industrial
Analysis, no of strikes, number of trade
unions and Employer union number of CBAs
in Pakistan.
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17. System Of Conflict
resolution
 PIRO 2010 provided a detailed system of Collective
Bargaining to resolve conflict.
 In case of any conflict the party who is having
trouble has to communicate to the other through
worker Council established which was established
under the 12 section of PIRO 2010.
 At the first stage a bilateral negotiation takes place
to resolve conflict within ten days.
 Then in stage two if the negotiations failed on first
stage the party who is having problems has to send a
notice for the strike or lock out within fourteen days
and the party also has to send a notice to for the
appointment of the conciliator by the provisional
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18.  Now at this stage the conciliator appointed by
the government try to resolve the problem
through collective bargaining.
 At this stage then conciliator prepares a
document which is called a Memorandum of
settlement, an it is send to the both parties and
conflict is resolved.
 Arbitration stage. At this stage conciliator tries
to convince both the parties to agree upon the
Arbitration. If both the parties in conflict are
agreed for the arbitration then within the 30
days conflict has to be resolved
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19.  Award of arbitration will be finalized at this
stage and this is availed for 2-years period of
time.
 But if the parties are not agreed upon the
Arbitration the aggrieved party can go for the
strike or lock out.
 At the 4th stage of the Collective Bargaining
The party who is arising dispute has to submit
an application to the labour court for the final
judgment in the legal proceeding.
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20.  If the lock out or strike is longer then the
period of 30 days and its causing serious harm
and its not healthful for the peace of the
society the federal Government interferes
 It can refer to the NIRC or labour court for
the early resolution of dispute. Now the
labour courts are directed to resolve the
conflict within the 30- days.( Asif . c, 2014)
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21. Challenges to industrial
relations in Pakistan
 Trade union’s income is very low which restricts
there activities.
 Then the feudal system of the country.
 labour court bribes.
 Military Rule.
 Many major groups of the employees are not
allowed to became member of the any trade
union.
 Privatization.
 CBA Status policy
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22. Upcoming trends and changing
characteristics of workforce in Pakistan
 Globalization
 Awareness of rights
 ILO introduce the program Decent
Employment Objectives in UN.
 Population of Pakistan is increasing faster as
compare to the job opportunities
 Now the trend is changing and Govt. of
Pakistan is more concerned to create decent
job for labor force.
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23. Contd.
 The unemployment rate of the youth is increasing day by
day.
 The unemployment rate of the female had decreased
over last 20 years and unemployment is increased for
male.
 The increase in the labor supply is directly effecting the
wage rate.
 The government is making policies for the labor as it
increase the wage rate by 16% and make this price a
minimum wage.
 In 2006 the labor market information and analysis unit
was established which has accepted the international
rules for labor and providing them current information. 23

24. Contd.
 The policies are made to fill the gap
between the supply and demand of labor.
For the procedure there is a proper cycle
having four steps :
- Formulation
- Implementation
- Monitoring
- Evaluation
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25. Contd.
 The work on gender equality is in highlights now
days especially for the rights of women.
 The special facilities must be given to the women so
they can work even after the marriage.
 In 2010 the government introduces a new labor
policy for the raise employment generation and to
shield the rights of the employees.
 The Technical Education and Vocational Training
Authority in Punjab is managing 49 technical
education institutions and 318 vocational training
centers and develop the internationally accepted
program of study, system of examination and the
documentation system.
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26. Contd.
 The work is also being done on the rights of
labor child; ILO defined the minimum age for
labor child is 15 years.
 For proper evaluation of employment
patterns and their evolution over time, it is
recommended that a GDP series be
established, so that the contribution of each
sector to the provincial economy can be
estimated.
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27. Structure; Political affiliation and
problems of trade unions in Pakistan
 The nationalization of industries and other economic
activities in early 70’s helped the growth of trade unions.
 The registered unions increased from 708 in the 60’s to
2,552 in the 70’s and 6551 in the 80’s, respectively.
 Today about 8,000 trade unions are listed in the public
and private sectors.
 Decline in union membership is massive privatization
and downsizing (in the cruel process of privatization,
downsizing and detachment that has taken place over
the last10 years more than 500,000 workers lost their
jobs and are living below the poverty line
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28. Contd.
Authoritarianism in Military Regulation
 Pakistan has been controlled by the military for
most of its history.
 The control of the military has spread in various
sectors (the current political impasse in Pakistan
is largely the manifestation of the deep
penetration of the army in civilian affairs.
 In the past years, registration of quite a number
of trade unions has been cancelled, such as
Pakistan International Airlines (PIA), Karachi
Electric Supply Corporation (KESC) etc.
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29. Contd.
 There has been a popular increase in the province of
Baluchistan where more than one hundred trade
union activists and members of the Civil Secretariat
Employees Association (CSEA) have been arrested.
 Political parties often fail to represent the interests
of the common people, and more often than not,
either bend to pressures from local business
interests or to the agenda of foreign powers than
local and national concerns.
 Child labor is common and results from a
combination of severe poverty, employer greed, and
inadequate enforcement of laws intended to control
it.
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30. Contd.
 Child labor is working in the traditional
framework of family farming or small business,
the employment of children in larger industries is
also widespread. Child labor is widely employed
in the carpet industry, much of which is family-
run.
 ILO on a range of programs with the goal of
eliminating child labor & encouraged the
establishment of an independent Child Welfare
Foundation designed to rehabilitate child
laborers and to oversee child labor-free
certification programs.
 The Constitution of Pakistan guarantees women
fundamental safeguard.
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31. Contd.
 One survey of women in Lahore showed they
were engaged in sewing, embroidery, food
preparation (for the market), stringing
flowers, assembling plastic toys or other
assembly work.
 Only a tiny fraction of these women are in the
trade union movement.
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