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DAWN, December 17, 2005
A FLAWED LABOUR POLICY
By Karamat Ali and Omar Abbas
TWO years ago, the federal Poverty Reduction Strategy Paper (PRSP)
promised a "Labour Protection Policy (LPP) to ensure protection of
workers' rights in all sectors, fair working conditions, enhancing
labour productivity, encourage enterprise efficiency and
competitiveness." That promise remains without performance.
Funded by the Asian Development Bank, the finance ministry has asked
the labour ministry to propose two policy documents - one on labour
protection; and another on labour inspection as implementation. A
separate document on "labour market flexibility" is also under
preparation; this will supposedly balance labour welfare of job
security with enterprise profits in hire and fire.
Reflecting the low priority attached to labour, the government is a
year late in holding consultative workshops. Given its clout and
goals in government, the business lobbyist SMEDA (Small and Medium
Enterprise Development Authority) is organizing the workshops rather
than the labour ministry which is supposed to prepare the policy. A
draft of the labour protection policy was prepared by consultants in
February 2005, but was only recently made available.
The draft is, in fact, an elaboration of the labour policy of 2002,
as well as a supplementary document. Explicit attention on revision
of legislation is excluded, except selectively to promote labour
flexibility. The policy continues to be formulated in the tradition
of a conservative state that gives precedence to capital over labour,
and enterprises over workers for growth instead of development; and
hence more stress on employment rather than decent work.
Five main areas are proposed to be dealt with: (1) 'Basic rights'
that correspond to the country's Constitution and the ILO
declaration; (2) 'Working rights' which include miniages; work hours
and leave; job security; (3) 'Work environment' as in health and
safety issues; (4) 'Social security' to cover only work related
health; unemployment and retirement (5) 'Living environment' that
includes health in 'non-working' life.
Coverage is to be "progressive" and "selective" for workers and
enterprises in different sectors with varying work arrangements.
Presumably even minimum wages will not be accorded the status of a
right of all workers. Apparently, the government and enterprises will
continue to define workers rather than the workers themselves.
Workers "outside the system of formal work arrangements" - the
majority - will be provided "extension services in safety and health
and some aspects of social protection," rather than be covered by
labour laws since provincial labour departments "could never hope to
secure compliance."
These extension services are a reflection of a very innovative
expression of diluting obligations - "to protect workers in the
informal economy in an informal way."
This logic would suggest abolishing most of laws, (even perhaps the
Constitution) and hence discarding much of government. Furthermore,
laws are seen more as a nuisance of being called to account, rather
than acknowledging the rights around which discourse and hence social
struggle can take place. More perceptive international elites, of
course, recognize this force of law. Interesting discussions are to
be found in ILO publications, Globalisation and decent work policy:
Reflections upon a new legal approach; and in IDS monographs, Making
Law Matter, and Developing Rights.
Initiatives against forced labour and child labour remain confined to
the national plans of action. Even in that context, there is no
attempt to respond to systemic failures in implementation, since
there may be an incomplete understanding of structural issues. For
child labour, a concrete target is given of removing children from
tanneries and mines by end 2005. These choices may well reflect a
fear of trade sanctions.
Equality and non-discrimination goals remain confined to gender
issues. These are extremely important, but this narrow vision
suggests the need for a careful re-reading of the conventions
underlying the declaration or even the Constitution. Excluding any
workers from common standards of protection is blatant discrimination.
"Compliance and enforcement is the responsibility of the labour
inspection system." There is considerable stress on self-inspection
and the use of technical experts. Self-regulation and third-party
monitoring by private firms can be a naive suggestion unless Enron is
kept in mind - a useful reminder by the ILO in Economic Security for
a Better World.
It would have been complementary to government efforts in compliance,
but collective bargaining is to remain weak with the government
encouraging "bilateral interactions" at the enterprise level. There
is nothing serious ventured about using workers and employers
organizations to promote compliance and broaden coverage.
Since the National Minimum Wage Council is not working, the labour
protection policy draft asks for it to be replaced by a wage
commission of "eminent" persons. Periodic adjustments would reflect
inflation, as well as enterprise and labour productivity, and social
security benefits. Social security in micro enterprises is to be on a
voluntary basis. This will also be available to self-employed
workers, but not to agricultural workers. No government contributions
are recommended.
Curiously, the only two types of agricultural workers mentioned are
those in corporate farming and farmers. The MoU between the ministry
of agriculture and the ministry of labour is mentioned, but without
any attempt to remedy its shortcomings, including denial of the
national minimum wage even to workers in corporate farming, despite
the declaration.
Unemployment benefits "cannot be seriously considered at this stage"
by bank consultants because it is considered by the government to be
"beyond the nation's capacity." It would appear that the ADB will not
fund any scheme for unemployment benefits, preferring to strengthen
market provision of secure jobs (which is a contradiction of its
advocacy of flexible labour markets). If debt bondage results from
job insecurity, so be it, seems to be the attitude.
The labour protection policy is sketchy on social security. Perhaps
the government is awaiting directions from the study on social
protection, also funded by the ADB.
The policy is yet another instance of enterprise lobbies striving to
weaken the implementation of legislation. The commission for the
consolidation, simplification and rationalization of labour laws
(2000) was rendered ineffective because the chair kept waiting for a
new labour policy - ignoring the obvious fact that the Constitution
and ILO conventions already provide comprehensive policy directions.
Then, instead of focusing on serious implementation of its own
much-delayed (and weak) labour policy 2002, the government is now
seeking further postponement through the process of preparing the
labour protection policy and labour inspection policy.
Workers clearly must await a socially just leadership in government
that actively promotes state obligations enjoined by the Constitution
and international conventions. Without mass mobilization of informal
workers, such a leadership is unlikely to come forth.
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