Open World Conference of Workers

Pakistan

1) Report on the Situation in Pakistan and the State of the Trade

Union Movement (document submitted to the OWC by Gulzar Ahmed Choudhary, general secretary of the All Pakistan Trade Union Federation)

[Note: Brother Gulzar Ahmed Choudhary, general secretary of the All Pakistan Trade Union Federation, was denied a visa to attend the OWC by the U.S. authorities -- despite multiple appeals from leading trade unionists and Congresspeople in the United States. He and his federation submitted the document below as a contribution to the discussion of the OWC.]

Pakistan today is totally under the control of the army. The Army Retired General has appointed Governors in four Provinces. In fact Pakistan is under martial law.

Governments in South Asia have primarily pursued "national security" through increasingly destructive military apparatuses, rather than seek citizens' security through actualising their creative potential. For example, South Asia currently spends US$14 billion annually on the military. Military expenditures by India and Pakistan have been growing at an average annual rate (in nominal terms) of about 12 percent. This is in a situation where 53% of the children in South Asia are malnourished and 36% of the population is deprived of safe drinking water. The logic of such large and growing military expenditure needs to be questioned. For example a modern submarine with associated support systems costs US$ 300 million, which would be enough to provide safe drinking water to 60 million people.

The human opportunity cost of this expenditure can be judged by the fact that  half of the military expenditures of South Asia for one year could have provided primary school education to 119 million children for one year, provided safe drinking water for two years to about 200 million people currently denied this facility, and provided essential medicines to 117 million  for two years to people who currently have no access to any health facility.

After 52 years of economic development we find that increasing numbers of people are suffering from hunger, illiteracy and preventable diseases. The children are suffering from malnutrition, with 99 out of every 1000 children born dying before the age of one. Out of those who survive the one-year barrier, millions die due to water-borne and preventable diseases; almost half the school age children do not get the opportunity of even primary education. Out of those too poor to go to school, millions of children are engaged in labour. Many are maimed, blinded, and struck with lung diseases and brain deformities related with poisonous emissions, and physical hazards at work places.

The Economy and Poverty

South Asian Economic growth rates have been low compared, for example, to the ASEAN Countries, and it can be argued that accelerated GDP growth rate in South Asian Countries could contribute to alleviating poverty. Yet the pace at which GDP growth reduces poverty, and indeed whether it is reduce at all, depends not just on the magnitude but on the structure of economic growth. South Asia has the highest incidence of poverty not only in terms of absolute numbers but also as a percentage of the population, compared to any other regional group of countries in the world. Thus in South Asia as much as 43% of the population lives in absolute poverty, compared to 14% in East Asia excluding China, 24% in Latin America and 39% in Sub-Saharan Africa.

There are three important aspect of the overall profile of the economic deprivation in South Asia.

1. Malnourished children as a percentage of total population are much greater in each of the South Asian Countries compared to the percentage of their population in poverty. For example in India malnourished children represent 53% of the population, compared to the overall poverty figure of 35%. Similarly in Pakistan the incidence of child malnutrition is 44%, compared to the overall poverty figure. In Bangladesh child malnutrition is 67%, although the poverty rate is 46%. In Sri Lanka child malnutrition is 38% compared to poverty incidence of 22%. The overall waited average in South Asia for the incidence of child malnutrition is 53%, compared to poverty incidence of 35%.

2. The percentage of children dropping out from school before grade 5 in South Asia is much higher than the average for all "developing" countries. The numbers are as follows: Pakistan 52%, Bangladesh 55%, Nepal 48%, Sri Lanka 8%, Maldives 7%, India 37%.

3. The percentage of the population deprived of basic services such as access to safe drinking water, health and sanitation, in some of the South Asian countries is also quite high, with 37% in this category in India, 40% in Pakistan, 52% in Nepal, and 43% in Sri Lanka. In relation to access to health care services, Pakistan, Bangladesh and Bhutan have 35% to 55 % of their population deprived of these services.

IMF Structural Adjustment Programs and Poverty

The micro-economic policies adopted in varying forms by South Asian countries as a result of  the IMF Structural Adjustment Programs have, by and large, had an adverse impact on poverty and income distribution. In the pursuit of these programs South Asian countries have undertaken three set of policies which have have served to accentuate poverty.

1. Liberalisation of import and withdrawal of subsidies from domestically produced goods and services: This has lowered the prices of imported consumer goods relative to the price of domestically produced goods. This has been a significant factor in slowing down the growth of the domestic manufacturing sector - which, in turn, has increased unemployment.

Subsidy withdrawal under the IMF condionalities in South Asia has occurred in the case of food, fertilizer, irrigation, water and utilities such as gas and electricity. Since these goods and services constitute a relatively larger proportion of expenditures by the lower-income groups, there has been a greater impact on the real income of the poor relative to the rich. Similarly the cost of the products produced by the farmers has increased due to the withdrawal of subsidies on fertilizer, irrigation water and pesticides, while they enjoy no compensatory gain from increasing prices of food grain.

A second aspect of conditionalities imposed by the IMF Structural Adjustment Programs in South Asia concerns exchange rate devaluations. This has accelerated inflation to the extent that domestically manufactured goods depend on imported inputs and hence suffer increasing costs per unit, which effect the poor and marginalised who have fewer resources.

Another element of the IMF policy program is the constriction of the money supply. This has increased the interest rates, and hence credit availability for private sector investment has declined. In Pakistan the growth of money supply fell from 46.5% during the period of 1984-1987 to 40.6% during 1988-1991 (post adjustment period). Similarly the growth rate of employment has declined from 12.7% in 1986-87 to minus 4.2% in 1993 and 1994 It clearly shows that the micro-economic stabilization program adopted by India and Pakistan under the dictates of the IMF has slowed down GDP growth, accelerated inflation and increased poverty and unemployment.

South Asia is the poorest and yet the most militarised region in the world. The arms race between India and Pakistan has fueled this situation, with these two countries accounting for 93 percent of total military expenditures in South Asia. India was ranked by the World Bank at 142 in terms of per-capita income, yet it ranked first in the world in terms of arms imports. Pakistan is not far behind, being ranked 119 in terms of per-capita income, and tenth in the world in term of arms imports. What is even more significant is that while global military spending declined by 37% during the period 1987-1994, military spending in South Asia increased by 12%. These military expenditures, whose scale is unprecedented in the "developing" countries, is being done in the name of "achieving national security."

Trade Union Movement

In Pakistan, out of 36.13 million people in the labour force only 800,000  are members of registered trade unions. This is mainly due to the restrictive nature of the Industrial Relation Ordinance and the Essential Service Act. These debar entire categories of employees from forming their unions.

Pakistan's trade unions operate under a barrage of restrictive laws. The government has extensive powers to legally intervene in the internal affairs of the unions. This makes legal strikes impossible; the authorities always favor the business community - and politicians belong to the feudal and rich businessmen class and repress workers' rights.

The economic stakes are high, which means that unions face accusations of being wreckers and traitors. Western countries buy 97% of the carpets produced in Pakistan, India and Nepal.

Trade unions in Pakistan deserve and need the backing of the entire international trade union movement.

The labour laws in Pakistan apply only to workplaces employing more than 50 workers and do not recognise those who work less than 180 continuous days per year. Poor working conditions, poor health and safety hazardous, long working hours, under-pay - all of these coexist with lesser remuneration. The right to form a union, a constitutional provision, is denied to a large proportion of the workforce. Consequently, collective bargaining that is an instrument to protect the workers' rights can not be practiced by the majority. In fact, existing labour laws do not cover the agricultural sector as well as informal sector, where the largest percentage of the work force is employed.

Labour Force and Employment 1997-1998

1997-98

Population: 139.02 (million)

Working Age Population (million): 92.53

Labour Force (million): 38.18

Employed Labour Force (million): 36.13

The work of trade unions is seriously constrained by government officials, such as the Labour Department officials. They show loyalties to the employers rather than workers. Corrupt officials and their coalition with employers has also been found detrimental to the growth of trade unionism.

Furthermore, many fierce actions by government authorities have scared workers away from taking part in union activities. For instance the government has arrested union activists, including women, threatening their families and firing them from their jobs. This is particularly the case when the government perceives that trade unions are becoming strong and getting a position as a pressure group; then they take severe action against the unions and their members.

This is what happened on April 16, 1998, when the government raided and destroyed the offices of the "All Pakistan Trade Union Federation." The action was in retaliation against the federation's independent policies and its fighting stance against privatisation, deregulation, growing inflation, unemployment and the government's anti-people policies.

Besides, the feudal mindset of Pakistani employers is yet another factor affecting very badly the growth of trade unionism. They use several tactics to deny the workers' very basic trade union rights. For example, they break factories up into small units or fire workers to avoid having to comply with labour laws and keep workers far from unions. Due to the illegal and inhuman policies of the employers, large numbers of women and men are working in contract, casual, temporary, or home-based labour, and this system is growing widespread in Pakistan; it completely deprives workers of their legal rights, including their right to form unions and collective bargaining.

Workers employed in hospitals, educational institutions, railways (open line), the radio corporation, the Security Printing Press, the Defence Housing Societies, agriculture, export processing zones, ordinance factories, Federal and Provincial Government Service as well as in the informal sectors have no real right to unionise and collective bargaining. The government has imposed the Essential Services Ordinance on public sector workers. This means that though the have the formal right to form a union and to collective bargaining, they have no right to strike and the government has the authority to ban their trade union activities at any time. The government also made amendments to the Banking Ordinance of 1986, such that now in section 27B provides that no worker can be entitled to become a member or officer of the trade union, if he or she is retrenched from the service.

The previous government banned the trade union activities in the largest establishment - the Water & Power Development Authority (WAPDA) - which employed 135,000 workers. The government turned the WAPDA over to the army in the name of putting an end to corruption. Yet as recently as three months ago, the WAPDA - still under army control - is incurring losses.

APTUF and WWO Vow to Continue Struggle

The All Pakistan Trade Union Federation (APTUF) and the Working Women's Organisation (WWO) are struggling for society that is free from exploitation and devoted to full employment, human dignity, gender equality and freedom to forming trade unions and collective bargaining rights, as well as freedom to speak. We are also struggling hard for the elimination all kinds of child and bonded labour and have a special Committee for the Elimination of Child Labour and Bonded labour.

As workers we understand that we really need to say No to the existing injustice and Yes to building a strong struggle and solidarity among workers around the world.

Our concern is that the struggles against poverty, unemployment, globalisation, and the free market, anti-workers policies of the IMF and World Bank should be the main issues addressed by the trade unions.

We understand that meaningful advances and women's participation in the labour force can not be made without the proper integration of women workers in the policy-making process. [See report below on "Women and the Global Economy: the Case of Pakistan."]

APTUF and WWO realise that given the worsening economic situation in Pakistan and India, the governments of both countries - controlled as they are by the imperialist forces and submitted to the dictates of the IMF and World Bank - instead of taking radical steps for the improvement of the social sectors have started the nuclear weapons' race. This is because both ruling elites want to divert the public attention away from their requirements and necessities. APTUF and WWO also condemn these nuclear weapons policies of both countries.

We believe that with collective struggle and resistance, workers can defend their rights. Consequently eight (8) trade union federations of national level have formed one confederation named the Pakistan Workers Confederation (PWC). Due to our continued struggle, the government could not succeed in privatising the Pakistan Railway and other utility services; they were also stopped in other downsizing and golden handshake schemes.

Due to growing inflation, the ban on trade union activities and privatization, the APTUF/PWC held its annual general body convention on February 8, 2000. Trade union representatives, intellectuals and lawyers joined this convention. It was decided there that the collectively charted demands will be submitted to the Chief Executive of Pakistan, General Prevaiz Mushraf. In addition to deciding the platform of workers' demands, the convention drew up an initial campaign of struggle to ensure government acceptance of the workers' demands.

It is our strong conviction that trade union unity - nationally and globally - is an urgent need to fight against globalisation, the new offensive of capitalism, and for poverty-alleviation and jobs for all.

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2) Women and the Global Economy: The Case of Pakistan (document submitted to the OWC by Rubina Jamil, chairperson of the All Pakistan Trade Union Federation (APTUF) and president of the Working Women's Organization (WWO) of Pakistan)

[Note: Sister Rubina Jamil was scheduled to be a keynote speaker at the OWC, but due to a last-minute emergency illness in her family, she was unable to attend the conference. She submitted the text below as a contribution to the discussion. Also see interview with Rubina Jamil and documents on the campaign in defense of ILO Convention 138 concerning maternity rights in OWC Report Back No.   .]

1. Gender Employment Segregation and Discriminatory Policies in Pakistan

The population of the Pakistan is 130 million. The latest UNDP Human Development report shows that in Pakistan 55 million people have no access to safe drinking water or primary health services, 100 million people are deprived of any sanitation, 44 million people are below the absolute poverty line with no access to even the quite fundamental needs for human survival. 44 million adults are illiterate and 2/3 of them are women. 12 million children under the age of 5 years are severely malnourished. The country spends only 2.8% of GDP on health and education and 85% on defense. It is115th in the world in terms of GDP growth and 120th in terms of human development indications. 40% people have no access to attend the hospitals. There is one doctor for 2000 persons.

Under the above-mentioned statistics, it is not difficult to conceive the situation of women, who are the poorest and weakest among the poor and weak in Pakistan.

Women in Pakistan, according to the National Manpower Commission, are the most neglected human resource, and the country has to pay a high price for such neglect. For instance, low literacy levels and restriction on women have acted not only as a major constraint towards full utilization of their human potential, they have also resulted in high population growth leading in turn to high dependency ratio. Instances of depriving women intentionally of their basic rights are not uncommon. Even within a family discrimination is practiced. Parental care and attention is more focused on male children.

Due to social, moral and religious concepts, women have very little access to education, skill development, training and gainful employment and inequitable access to health and nutrition in Pakistan. The literacy rate among women is only 15%; and the majority of these women live in the urban areas. Pakistani women's mortality rate is fairly high in the reproductive age period, i.e. between 15 and 40, 75 % higher than in males in the same age group.

A large number of grass-roots women are suffering from anemia. A case in point is one, which show the hemoglobin percentage in males to be 75-85%, whereas for women of similar age bracket, the percentage is only 45-55%. Every year, 3000 women die during child delivery. In view of the fact that women and children constitute 70% of the total population of Pakistan, social, economic and cultural factors indicate the poor health status of women mothers and children (Source: Women and Development).

In Pakistan, under the male-dominated society women are treated as a commodity rather than as human beings. So a large number of women are bearing physical and mental torture by their husbands, brothers and fathers. Violence and the rate of crimes against women like rape, kidnapping and murder are very high. Almost 1500 rape cases are files in police stations every year.

In the rural sector many women are victims of land disputes and numerous women have been killed in the context of land disputes. It is also common that if family have doubts that their girl has relations with strange man, they kill the girl suspected of being with a man and they feel proud; it is called murder by honor. Mostly people use this trick against their enemies, because in this way the killer gets off after a brief spell in prison.

Pakistani women - already victims of feudal, tribal traditions, religious customs, poverty and gender discrimination - are also discriminated by various pieces of legislation like The Law of Evidence, The Hudood Ordinance, The Qazaf Ordinance and The Qisas and Diyat. These laws make women second-class citizens in every field of life.

Women are employed in agriculture, forestry, fishing, manufacturing, construction, brick kilns and community, and social and personal services. Despite women's participation in rural economic activities, they are usually not compensated in cash or kind, nor is their economic contribution in recognized. They are classified as housewives and thus considered to be outside the labour force. Women have been performing their duties at their workplace for 12 to 16 hours a day without any extra benefits and facilities allowed to workers under the prevalent labour laws. The working condition of women engaged in brick kilns, houses and agricultural farms is the worst.

About 50% of total employment comes from small and cottage industry, where a large number of women are working; the minimum wage umbrella does not cover these workers. Informal sector workers, contractual labour, daily and casual labour also increasing, having no protection of their rights

The labour laws in Pakistan apply only to workplaces employing more than 50 workers and do not recognise those who work less than 180 continuous days per year. Employers can break factories up into small units or fire workers to avoid having to comply with labour laws and to keep workers far from unions. A large number of women and men are employed in home-based work, which is widespread in Pakistan and completely deprived of the legal rights as well as the right of union and collective bargaining.

According to one survey only 25.5% of the women labour force are wage earners (Source: Common Interests). A large number of women are working in small family firms as unpaid helpers. Their work is unrecognised and unrecorded.

Due to specific social, cultural and religious norms, women are extremely discriminated in all parts of life and treated as second-rate citizens due to their gender. But what is gender? And how it is playing such a great role in all kind of discriminations faced by women? These issues are not considered as major issues in Pakistan. Even unions that are only one source of protection of workers' rights do not take this issue as a debatable point. Therefore, unions do not realise seriously the importance of women's participation in trade unions and also not take women issues like casual and maternity leave, child care centers, protection from sexual harassment and transportation, as workers' issues or demands.

2. Cost of Globalization for Women

Throughout the world, more women are joining the labour market. To the extent that the International Labour Office (ILO) now speaks of the "worldwide feminisation of the labour force and employment". For 20 years, the direct participation of women in the labour market has been steadily rising. Today some 45 percent of women aged between 15 and 64 have or are seeking a job. The employment rate for women has always been lower than that of men, and women have long been considered as housewives first and foremost, their role as workers being a secondary activity. In recent years, however, this situation has changed significantly. The trend now seems irreversible, although there are still marked differences between the regions.

Women workers are the underclass of the global economy. All over the world, in both industrialised and developing countries, they have become the main victims of unemployment; they are confined to the jobs requiring the lowest skills, and most still do not receive equal pay for work of equal value, or even equal pay for equal work. And most of the workers in the new bastions of the global economy - the informal sector, the export processing zones and home working - are women. Yet they have paid a heavy price to get into the labour market. Many governments, after pressure from trade unions and women's groups, have tried to remove inequalities. But employers who still see women, especially young women, as a source of cheap labour have undermined their efforts. Many in developing countries rely on labour-intensive industries with a predominantly female workforce to boost their exports. To keep up international competition, the average wage paid to these women can be half of what men get.

The main culprits are the factories in the export processing zones/special zones, where foreign companies are offered tax breaks and exemptions from labour laws if they invest. On average, 80% of the workers in these zones are women. They are subject to a level of abuse, exploitation and humiliation, which would cause a public scandal if it happened in the investor's home country. Working hours are long, and safety protection is usually poor. The discipline is harsh and arbitrary, and sexual harassment is a common problem. These women have been forsaken by their own governments. Once they start work in the zones, they are beyond the protection of their national laws. Nor do they find it easy to protect them.

3. Impact of Economic Restructuring on Female Workers

Pakistan's official GNP per-capita figures which make it the 31st poorest country out of 133 placing it in the low-income category. Pakistan's economy has many of the characteristics associated with that of a middle-income country. One reason of this could be the large underground or illegal economy, estimated to be between 30% and 40% of official GDP. 47.8% people of Pakistan are living under the poverty line.

This social situation becomes gloomier when we review the globalisation, privatization and structural adjustment policies which the government has adopted under instructions from the IMF and World Bank.

The menace of joblessness continues to grow, with the largest scale of retrenchment and voluntary retirement in banks and other government organization in the name of downsizing and restructuring.

Due to TNCs and their subcontracting system in Pakistan, the workers particularly women workers, face enormous hardships and uncertainty regarding their employment. This include temporary employment, job insecurity, increasing the working hours without increasing wages, non-availability of pension, maternity leave, bonuses or provident fund, ban on unionism, deprivation of collective bargaining, misbehavior and sexual harassment by management, unhealthy environmental conditions at the workplace and the increase of piece-rate work under the subcontracting system.

Pakistan's government has not only adopted the deregulation and privatization paradigm but also has gone further and become a strong believer in what the IMF and WTO are urging. Following the adoption of the liberalization and globalisation paradigm in 1996-1997, the largest scale-manufacturing sector grew by negative 1.4%. The country shows every other sign of recession and stagnation. Now the state bank of Pakistan as cut its rupee rate by 18.5% in an economy that is already in dire straits.

The government of Pakistan has started privatization since 1990-1991. During eight years, the government has sold 86 public units. Of these 86 units only 22 units are still working, while 62 have permanently shut down and million of workers have been deprived of their jobs and livelihood. Besides, the government is not paying attention to producing new jobs for young people. There is a ban on government employment.

Thousands of workers lose their jobs. Quite recently United Bank LTD. laid off more than 7,000 employees countrywide. The privatization of PTC, Pakistan steel, oil mills and other state run enterprises will render millions jobless, apart from the million already unemployed.

A number of women have entered the industrial workers over the years, but statistics about the women in industrial work force are not available for both the formal and informal sectors because of the absence of a serious effort to collect, compile and study them by the government. Meanwhile, the present situation reveals that women are hired because they are docile, unorganised or not unionised and are ready to work at cheaper rates. Great numbers of women are working as casual, temporary, or piece-rate workers and contract basis and are thus deprived of all rights and benefits such as minimum wage, bonus, housing allowance, unionization, transportation, accident compensation, casual or maternity leave, social security, old age benefit and pension.

A woman worker's earning role is as one of helping the main bread-earner and is thus marginalised. 90% women are working due to financial crises. They keep no money for their personal expenditure and the majority of the women workers also perform household work. In this way, women are exploited both by the employer and by their family. The intensity and scope of this increase is manifested the most in the informal sector.

In spite of this, women are primary producers in the new industries, but still they are marginalised and have second-class status. Gender and age discrimination has expanded; men are occupying management and technical position, while women are concentrated in operative level positions.

Our work with women workers shows that causal and temporary work is also result of globalisation, privatization and liberalization. We see, after 1990, that one side the number of women industrial workers increase while on the other side structural adjustment policies provide more flexibility, chances and opportunities to the capitalist for violation and amendments in labour laws to reduce the workers' rights. Due to this liberty and free hand, investors hire the women as contract workers on piece rate, temporary or seasonal workers. Through this employers do not fulfill very fundamental workers' rights.

4. Employment and Development Strategies for Women Workers

The existing social, political and economic situation show the lives of millions of people in the Third World have been negatively impacted by imperialist globalisation and its three elements of liberalisation, privatisation and deregulation.

Therefore as workers we understand that we really need to say NO to these free trade policies and Yes to build a strong struggle and solidarity among workers around the world against exploitation.

It is essential that development policies should not be biased against the workers. Policies need to be implemented to promote growth in the urban-informal and rural sectors. Trade unions must develop their human resources.

We realise and believe that meaningful advances and women's participation in labour force can not be made without proper integration of women workers in the policy-making process. But as mentioned above that position of discrimination against women in Pakistan is the result of deep-rooted socio-cultural environment. Therefore, their restoration is not amenable to short cut, but instead requires sustained and concerted efforts, well-coordinated and properly integrated.