The document discusses the history and importance of Labor Day on May 1st, which originated from a large labor protest in Chicago in 1884 that demanded an 8-hour workday. It resulted in new laws limiting the workday to 8 hours and mandating overtime pay. The document then defines industrial relations and its key players of employers, employees, and government. It outlines the objectives of each group and describes the role of effective industrial relations management in achieving objectives, resolving disputes, and maintaining industrial peace according to Pakistani labor laws.

1. By Ghulam Mustafa
Founder HR Legends Forum
Industrial Relations and
Labour Laws

2. 1st May – Labor Day in Media

3. 1st May – Labor Day

4. 1st May – Labor Day

5. 1st May – Labor Day

6. 1st May – Labor Day

7. Why IR Management?
• May Day – the real time story
About 250,000 industrial worker were gathered to protest
against the long working hour, on 1st May, 1884 at Chicago,
USA.
A bomb blast took place, 4 killed and many were injured. Issue
was mishandled, Eight people were declared guilty, 3 hanged, 1
suicided in jail & remaining were pardoned later.

8. Why IR Management?
Outcomes of the Strike:
1- Prior to this strike workers were forced to work for 12 – 14
hours per day. After this sacrifice it was declared that one
working day shall be comprised on 8 hours working and
overtime shall be paid in case of excess working.
2- One week shall consist upon 6 days with maximum 48 hours
working.
3- One day of the week shall be considered off day with pay.

9. What is IR Management?
• Industrial Relations is a process by which human beings and
their organizations interact at the work place to establish the
terms and conditions of employment
• Industrial Relations System is “ Interrelations among persons,
organizations and standards in the industrial environment”.
• Major players of this process are Employer, Employees and
the Government.

10. Organizational Goals
1. Enhance Productivity & Profitability
2. Increase market share
3. Customer satisfaction and repeat business
4. Satisfaction of Stake holders
5. Operational efficiencies
6. Develop ability to respond to market opportunities
7. Effective and efficient use of resources
8. Cost of production may be reduced
9. Waste reduction
10.Competitive advantages
11.Participation and motivation of human resources
12.Industry reputation / corporate standing

11. Objectives of the Workers
1. Job Security
2. Occupational Health & Safety
3. Fair remuneration against performance
4. Appropriate increase in salary / wages
5. Regularization of Contract / Daily Wage Workers
6. Learning Environment
7. Compliance of Labor Law

12. Objectives of the Government
•To maintain the industrial peace for:
1. Enhance productions (GDP)
2. Increase in Exports
3. Reduce Unemployment / crime rate / better law and order
4. Increase in tax net
5. More revenue generation
6. Elimination of Gender Discrimination
7. Elimination of Child Labor & Bonded Labor

13. Role of ILO
• The objective of establishing the International Labor
Organization in 1919 was to undertake joint international action
to:
1. Improve labor conditions world wide including Child Labor
2. Bonded Labor
3. Minimum Wages
4. Rehabilitation of disabled Persons
5. Working hours etc.
• Pakistan has joined ILO in 1947 and ratified 36 ILO conventions
so far.

14. In Case of No Industrial Peace

15. In Case of No Industrial Peace

16. Organizational Pyramid
Top
Management
Non Management Workers
Middle Management
First Line Managers

17. Scope of IR Management
• Groups of Human Resources in an organization
• Top Management including Chairman, Board of Directors, CEO, GMs
and DGMs
• Middle Management including Sr. Managers, Managers, Dy.
Managers, Asst. Managers
• First line Managers Jr. Executives and Sr. Executives / Supervisors
• Non Management Employees such as Unskilled Workers, Semi
Skilled Workers, Skilled Workers, Sr. Skilled Workers and Supervisors
• IR Management deals with the Non Management employees
only

18. Functions of IR Management
1. To ensure the implementation of minimum standards
as provided in the labor laws / by ILO
2. Negotiation with CBA regarding charter of demand -
COD and maintain the industrial peace
3. Implementation of COD and Labor-Management
relations in day to day business
4. Disciplinary actions, Grievances handling, Show
Cause Notice, Inquiry, Warnings and Terminations etc.
5. Dealing with labor contractors

19. Functions of IR Management
6. Dealing with external agencies such as Labor Department,
PESSI, EOBI and Apprenticeship etc.
7. Dealing with Health Department and periodic medical check
up of Non Management Employees
8. Time office function, preparation of daily attendance &
monthly compiled attendance along with over time for
preparation of Salary / Wages
9. Maintenance of leave record and personal files
10.Liaison with Legal Advisor & follow up and attend the Courts
of law

20. Intervention of Players
• The Non Management Employees / workers
• Through CBA / Trade Union
• The Employer
• Through Management Negotiation Team
• The Government
• Through Labor Code of Pakistan / Legislation / Labor Department
• International Labor Organization
• Through Government

21. Important Labor Laws of Pakistan
1. Workmen’s Compensation Act 1923
2. Factories Act 1934
3. Payment of Wages Act 1936
4. Minimum Wage Ordinance 1961
5. Apprenticeship Ordinance 1962
6. Provincial Employees Social Security Ordinance 1965 –
PESSI
7. Industrial & Commercial Employment (Standing Order)
Ordinance 1968 (amended 2012)

22. Important Labor Laws of Pakistan
8. Companies Profit (Worker’s Participation) Act 1968
9. Shop & Establishment Ordinance 1969
10. Employees Old-age Benefit Act 1976
11. Punjab Industrial Relations Act 2010
12. The Protection against Harassment of Women at the
workplace Act 2010