P 1 - Introduction of IR - 08.06.2015

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Industrial Relations Management Industrial Relations Management

Core Functions of HRM

Learning & Development

HR Planning

Total Reward

Talent Acquisition

Industrial Relations Management

Performance Management

Other links• Job evaluation• Job design• Career counseling• Skills auditing

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Why IR ManagementWhy IR Management May Day – the real time storyMay Day – the real time story

About 250,000 industrial worker were About 250,000 industrial worker were gathered to protest against the long gathered to protest against the long working hour, on 1working hour, on 1stst May, 1884 at May, 1884 at Chicago, USA. Chicago, USA. A bomb blast took place, 4 killed and A bomb blast took place, 4 killed and many were injured. Issue was many were injured. Issue was mishandled, Eight people were mishandled, Eight people were declared guilty, 3 hanged, 1 suicided in declared guilty, 3 hanged, 1 suicided in jail & remaining were pardoned later.jail & remaining were pardoned later.

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Why IR Management Why IR Management contd….contd….

Outcomes of the Strike:Outcomes of the Strike:

1- Prior to this strike workers were forced to 1- Prior to this strike workers were forced to work for 12 – 14 hours per day. After this work for 12 – 14 hours per day. After this sacrifice it was declared that one working day sacrifice it was declared that one working day shall be comprised on 8 hours working and shall be comprised on 8 hours working and overtime shall be paid in case of excess overtime shall be paid in case of excess working.working.

2- One week shall consist upon 6 days with 2- One week shall consist upon 6 days with maximum 48 hours working. maximum 48 hours working.

3- One day of the week shall be considered off 3- One day of the week shall be considered off day with pay.day with pay.

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What is IR Management What is IR Management ?? Industrial Relations is a process by which Industrial Relations is a process by which

human beings and their organizations human beings and their organizations interact at the work placeinteract at the work place to establish to establish the terms and conditions of employmentthe terms and conditions of employment

Industrial Relations System is “ Industrial Relations System is “ Interrelations among persons, Interrelations among persons, organizations and standards in the organizations and standards in the industrial environmentindustrial environment””

Major players of this process are Major players of this process are Employer, Employer, Employees and the Government.Employees and the Government.

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Organizational GoalsOrganizational Goals1.1. Enhance Enhance ProductivityProductivity & & ProfitabilityProfitability2.2. Increase Increase market sharemarket share3.3. Customer satisfaction Customer satisfaction and repeat business and repeat business 4.4. Satisfaction of Satisfaction of Stake holdersStake holders5.5. Operational efficiencies Operational efficiencies 6.6. Develop ability to Develop ability to respond to market respond to market

opportunitiesopportunities7.7. Effective and efficient use of resourcesEffective and efficient use of resources8.8. Cost of production may be reducedCost of production may be reduced9.9. Waste reductionWaste reduction10.10. Competitive advantages Competitive advantages 11.11. Participation and motivationParticipation and motivation of human resources of human resources12.12. Industry reputation / corporate standingIndustry reputation / corporate standing

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Objectives of the WorkersObjectives of the Workers

1.1. Job SecurityJob Security

2.2. Occupational Health & SafetyOccupational Health & Safety

3.3. Fair remuneration against performanceFair remuneration against performance

4.4. Appropriate increase in salary / wagesAppropriate increase in salary / wages

5.5. Regularization of Contract / Daily Regularization of Contract / Daily Wage EmployeesWage Employees

6.6. Learning EnvironmentLearning Environment

7.7. Compliance of Labor LawCompliance of Labor Law

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Objectives of the GovernmentObjectives of the Government To maintain the industrial peace for To maintain the industrial peace for

1.1. Enhance productions (GDP)Enhance productions (GDP)

2.2. Increase in ExportsIncrease in Exports

3.3. Reduce UnemploymentReduce Unemployment

4.4. Increase tax netIncrease tax net

5.5. More revenue generation More revenue generation

6.6. Elimination of Gender DiscriminationElimination of Gender Discrimination

7.7. Elimination of Child Labor & Bonded Elimination of Child Labor & Bonded LaborLabor

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Role of ILORole of ILO The objective of establishing the The objective of establishing the

International Labor Organization in 1919 International Labor Organization in 1919 was to under take joint international action was to under take joint international action to: to:

1.1. Improve labor conditions world wide including Improve labor conditions world wide including Child LaborChild Labor

2.2. Bonded Labor Bonded Labor 3.3. Minimum WagesMinimum Wages4.4. Rehabilitation of disabled Persons Rehabilitation of disabled Persons 5.5. Working hours etc.Working hours etc.

Pakistan has ratified 36 ILO Pakistan has ratified 36 ILO conventions so far.conventions so far.

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Organizational PyramidOrganizational Pyramid

Top Management

Non Management Employees

First Line Managers

Middle Managers

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Scope of IR ManagementScope of IR Management Groups of Human Resources in an Groups of Human Resources in an

organizationorganization Top Management Top Management including Chairman, Board of including Chairman, Board of

Directors, CEO, GMs and DGMsDirectors, CEO, GMs and DGMs Middle Management Middle Management including Sr. Managers, including Sr. Managers,

Managers, Dy. Managers, Asst. Managers Managers, Dy. Managers, Asst. Managers First line Managers First line Managers Jr. Executives and Sr. Jr. Executives and Sr.

ExecutivesExecutives Non Management Employees Non Management Employees such as Unskilled such as Unskilled

Workers, Semi Skilled Workers, Skilled Workers, Sr. Workers, Semi Skilled Workers, Skilled Workers, Sr. Skilled Workers and Supervisors Skilled Workers and Supervisors

IR Management deals with the Non IR Management deals with the Non Management employees only Management employees only

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Functions of IR ManagementFunctions of IR Management To ensure the implementation of minimum To ensure the implementation of minimum

standards as provided in the labor laws / by standards as provided in the labor laws / by ILOILO

Negotiation with CBA regarding charter of Negotiation with CBA regarding charter of demand - COD and maintain the industrial demand - COD and maintain the industrial peacepeace

Labor-Management relations in day to day Labor-Management relations in day to day businessbusiness

Disciplinary actions, Grievances handling, Disciplinary actions, Grievances handling, Show Cause Notice, Inquiry, Warnings and Show Cause Notice, Inquiry, Warnings and Terminations etc. Terminations etc.

Dealing with labor contractorsDealing with labor contractors

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Functions of IR Management Functions of IR Management ContinuedContinued…..…..

Dealing with external agencies such as Labor Dealing with external agencies such as Labor Department, PESSI, EOBI etc.Department, PESSI, EOBI etc.

Dealing with Health Department and periodic Dealing with Health Department and periodic medical check up of Non Management Employeesmedical check up of Non Management Employees

Time office function, preparation of daily Time office function, preparation of daily attendance & monthly compiled attendance attendance & monthly compiled attendance along with over time for preparation of Salary / along with over time for preparation of Salary / WagesWages

Maintenance of leave record and personal filesMaintenance of leave record and personal files Liaison with Legal Advisor & follow up and attend Liaison with Legal Advisor & follow up and attend

the Courts of lawthe Courts of law

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Intervention of PlayersIntervention of Players The Non Management Employees / The Non Management Employees /

workersworkers Through CBA / Trade UnionThrough CBA / Trade Union

The EmployerThe Employer Through Management Negotiation TeamThrough Management Negotiation Team

The GovernmentThe Government Through Labor Code of Pakistan / Through Labor Code of Pakistan /

Legislation / Labor DepartmentLegislation / Labor Department International Labor OrganizationInternational Labor Organization

Through GovernmentThrough Government

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Important Labor Laws of PakistanImportant Labor Laws of Pakistan

1.1. Workmen’s Compensation Act 1923Workmen’s Compensation Act 19232.2. Factories Act 1934Factories Act 19343.3. Payment of Wages Act 1936Payment of Wages Act 19364.4. Factories Canteen Rules 1959Factories Canteen Rules 19595.5. Minimum Wage Ordinance 1961Minimum Wage Ordinance 19616.6. Apprenticeship Ordinance 1962Apprenticeship Ordinance 19627.7. Provincial Employees Social Provincial Employees Social

Security Ordinance 1965 - PESSISecurity Ordinance 1965 - PESSI

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Important Labor Laws of PakistanImportant Labor Laws of PakistanContinued……Continued……

8.8. Industrial & Commercial Employment Industrial & Commercial Employment (Standing Order) Ordinance 1968(Standing Order) Ordinance 1968

9.9. Companies Profit (Worker’s Participation) Act Companies Profit (Worker’s Participation) Act 19681968

10.10. Shop & Establishment Ordinance 1969Shop & Establishment Ordinance 196911.11. Fair Price Shop Ordinance 1971Fair Price Shop Ordinance 197112.12. Cost of Living (Relief) Act 1973Cost of Living (Relief) Act 197313.13. Employees Old-age Benefit Act 1976Employees Old-age Benefit Act 197614.14. Punjab Industrial Relations Act 2010Punjab Industrial Relations Act 201015.15. The Protection against Harassment of Women The Protection against Harassment of Women

at the workplace Act 2010at the workplace Act 2010

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Critical Analysis of Labor LawsCritical Analysis of Labor Laws1.1. Complex and worn out LawsComplex and worn out Laws2.2. Excessive Number of Laws Excessive Number of Laws 3.3. Grey areas such as:Grey areas such as:4.4. Definition of worker / workman differ Definition of worker / workman differ

in almost every lawin almost every law5.5. Standardized definition of wages / Standardized definition of wages /

salary is not availablesalary is not available6.6. Factories Act 1934 regulates the child Factories Act 1934 regulates the child

labor whereas ILO Conventions labor whereas ILO Conventions prohibit itprohibit it. .

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Punjab Labor Appellate Tribunal made Punjab Labor Appellate Tribunal made functional again.functional again.

Labor court has been given the third power of Labor court has been given the third power of bargaining 12-30 salaries in lieu of bargaining 12-30 salaries in lieu of reinstatementreinstatement

Tenure of CBA increased from 2 to 3 years in Tenure of CBA increased from 2 to 3 years in case of workers more than 5000.case of workers more than 5000.

Right of strike after failure of tri-part Right of strike after failure of tri-part negotiationsnegotiations

Minimum wage for unskilled worker has been Minimum wage for unskilled worker has been increased from Rs.12,000/- to Rs.13,000/- pm.increased from Rs.12,000/- to Rs.13,000/- pm.

Major Changes in Labor Laws since 2002Major Changes in Labor Laws since 2002

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Time limit for redress of individual Time limit for redress of individual grievance has been reduced from 3 to one grievance has been reduced from 3 to one month.month.

Working hours for female employees Working hours for female employees extended by 10:00 pm, subject to extended by 10:00 pm, subject to provision of pick and drop facility by the provision of pick and drop facility by the employeremployer

Daily overtime hour limit increased from 2 Daily overtime hour limit increased from 2 to 3 hours.to 3 hours.

Minimum monthly EOBI pension increased Minimum monthly EOBI pension increased from Rs.3,600/- to Rs.5,250/-from Rs.3,600/- to Rs.5,250/-

Death grant increased from Rs.200,000/- Death grant increased from Rs.200,000/- to 400,000/-to 400,000/-

Major Changes in Labor Laws since Major Changes in Labor Laws since 20022002

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Major Changes in Labor LawsMajor Changes in Labor Laws Marriage grant increased from Marriage grant increased from

Rs.70,000/- to Rs.100,000/- for all Rs.70,000/- to Rs.100,000/- for all daughters daughters

Disbursement of salary through bank Disbursement of salary through bank After 18After 18thth amendment in the amendment in the

constitution of Pakistan, labor law constitution of Pakistan, labor law has been made the provincial matter, has been made the provincial matter, except EOBI and Workers Profit except EOBI and Workers Profit Participation Fund.Participation Fund.

Major Changes in Labor Laws since Major Changes in Labor Laws since 20022002

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P 1 - Introduction of IR - 08.06.2015

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