Pakistan: Special cabinet meeting approves Labour Policy 2010

By NNN-APP,

Islamabad : A special meeting of the cabinet chaired by Prime Minister Syed Yusuf Raza Gilani here on Saturday approved Labour Policy 2010 containing a number of measures to protect and promote rights of working classes.


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In the opening remarks at the special meeting, the prime minister said that the present government desires to create an enabling environment for the application of universal principles of equality and social justice as well as constitutional and international rights and uplift of workers and labour force.

The presentation and approval of the Labour Policy on 1st May which is the International Labour Day, he said is the most appropriate time for the announcement of Labour Policy.

The premier said that in his first speech at the parliament he had emphasized the need to address the labour issues, and had announced the lifting of ban on trade unions, repeal of Industrial Relations Ordinance 2002, Removal from Service (special powers) Ordinance 2000 and other anti-labour laws.

The labour policy, Prime Minister Gilani said reflects the policies and vision of Shaheed Zulfikar Ali Bhutto who had set out new benchmarks for dignity of the labour in line with his progressive thinking.

It may be recalled that Shaheed Mohtarma Benazir Bhutto on her return to Pakistan had announced to prepare a new labour policy which would be labour friendly.

Salient features of the Labour Policy 2010 approved by the Cabinet are: a comprehensive social insurance for old-age benefits and health services on self-registration/voluntary basis to allow all workers in formal and informal sector of economy, including self employed persons, to benefit from it.

The registration of workers will be linked with the Smart Cards being issued by NADRA. All particulars of the workers with respect to name, employment history, education, skills will be placed on the Chip of the Smart Card.

This card will also serve the purpose of registration under Social Security, EOBI and Workers Welfare Fund and will be a source of Data Bank of labour force for improving skills of workforce with respect to enhancement of employment within the country and overseas.

The minimum wage was raised from Rs.4,600/- to Rs.6,000/- in the year 2008, which will be further enhanced to Rs.7,000/-.

All industrial, commercial and other establishments registered under any law shall pay wages to the employees through cheque/Bank transfer.

The government has already started the process to regularize/confirm contract employees. All contract employees in public sector will be regularized/confirmed within shortest possible time.

Tripartite Monitoring Committees will be set up at district, province and federal level to monitor implementation of labour laws, particularly with reference to payment of wages, working environment and working time.

All workers registered under the Universal Registration Scheme of the EOBI will be eligible to get benefits from the Workers Welfare Fund (WWF).

On request of an officer of the registered trade union, and subject to recommendation of the Monitoring Committee, any dismissed/retrenched worker will be paid legal aid subject to maximum of Rs.15,000.

In cases where the social security hospital has no facilities for treatment, the worker shall be referred to any public/private hospital and the respective Social Security Institution will bear all costs of treatment.

The retired registered worker will be provided medical facilities from the Social Security Scheme.

The survivors of a registered insured person under the EOB Act will be paid Survivors Pension without any condition of minimum insurable employment.

The EOB Act will be made applicable to the contingent/project employees of such statutory bodies which are otherwise exempted under the provisions of the act.

Pension shall be enhanced with the enhancement of Government Servants Pension at the same ratio.

The age of entitlement of old-age pension will be reduced from 55 years to 50 years in case of mine workers.

A review Board shall be established to review the cases of such workers who had been dismissed under the Removal from Service (Special Powers) Ordinance, 2000.

The Government will ensure full adherence of labour laws and workers friendly environment in all establishments to promote decent work in the country.

Matric Tech Scheme shall be introduced in all schools run by the Workers Welfare Fund to impart Technical Education to the students.

A full-fledged Labour Market Information System shall be established with creation of Human Resource Center at different cities.

The prime minister also briefed the Cabinet about his recently concluded visit to Bhutan for the South Asian Association for Regional Cooperation (SAARC) Summit and Nepal, and informed the Cabinet about the progress achieved during informal talks with Indian Prime Minister Dr. Manmohan Singh where the two leaders agreed to resume dialogue on all issues.

The Cabinet applauded the prime minister on his leadership and meeting with his Indian counterpart and other SAARC leaders and observed that contrary to pessimistic vibes, prime minister’s SAARC visit turned out to be a great success.

Rana Sanaullah, Punjab Minister for Law and Justice and Sher Azam Wazir, Labour Minister Khyber Pakhtoonkhwa province also attended the meeting on special invitation.

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