Report in which the committee requests to be kept informed of development - Report No 333, March 2004

Case No 2096 (Pakistan) - Complaint date: 06-AUG-00 - Follow-up

Allegations: The complainant alleges restrictions on trade union and collective bargaining rights for employees of the banking sector

1. 833. The Committee last examined this case at its November 2001 meeting [see 326th Report, paras. 419-431, approved by the Governing Body at its November 2001 meeting].
2. 834. The Government forwarded its partial observations in communications dated 3 May, 26 August and 6 November 2002.
3. 835. The Committee has been obliged to postpone its examination of the case on four occasions [see 328th, 329th, 330th, and 331st Reports, para. 6]. At its meeting in November 2003 [see 332nd Report, para. 11], the Committee issued an urgent appeal to the Government, indicating that, in accordance with the procedural rules set out in paragraph 17 of its 127th Report, approved by the Governing Body, it could present a report on the substance of the case at its next meeting even if the information or observations requested had not been received in due time.
4. 836. Pakistan has ratified the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98).

A. Previous examination of the case

1. 837. At its November 2001 session, the Governing Body approved the following recommendations in the light of the Committee’s interim conclusions:
   • (a) The Committee urges the Government to take the necessary steps without delay to amend section 27-B of the Banking Companies (Amendment) Act, 1997, so as to admit as candidates for union office persons who have previously been employed in the occupation concerned, and by exempting from the occupational requirement a reasonable proportion of the officers of an organization. It requests the Government to provide information on any progress made in this regard.
   • (b) The Committee urges the Government to reply without delay to the complainant’s allegations that over 500 union leaders in the banking sector, including Mr. Maqsood Ahmad Farooqui, President of the UBL Employees’ Federation of Pakistan and Mr. Rahmat Ullah Kazmi, General Secretary, UBL Labour Union Karachi, were dismissed or terminated from employment pursuant to the enactment of section 27-B of the Banking Companies (Amendment) Act, 1997. It further requests the Government to inform it of the current status of these trade union leaders.

B. The Government’s reply

1. 838. In its communication of 3 May 2002, the Government indicates that the Ministry of Labour has requested the Ministry of Finance to amend section 27-B so as to allow non-employees to be elected as representative of a trade union. The Government indicates, however, that the Ministry of Finance is of the view that the law has never forbidden the trade union to elect outsiders as its advisors and consultants.
2. 839. In its communications of 26 August and 6 November 2002, the Government indicates that the central bank, the State Bank of Pakistan, holds the view that section 27-B was vital for checking the disruptive activities of trade unions in the interests of carrying out financial sector reforms in Pakistan and that this section is required because of the special needs of the banking industry. The Government submits that this provision does permit peaceful union activities and does not violate Article 3 of Convention No. 87.
3. 840. The Government further indicates that the Ministry of Labour has been working to amend sections 7(4) and 16 of the Industrial Relations Ordinance (IRO), 1969 on disqualification for being an office bearer of a trade union and on unfair labour practices of workers. In this respect, that Government is of opinion that the amendment of the IRO will prove to be a positive step towards regulating the activities of the trade union without curbing their trade union and collective bargaining rights and will progressively pave the way for harmonious bilateral employer-employee relations curtailing the need for instruments like section 27-B. The Government adds that the Labour Policy, 2002, which has been finalized through tripartite dialogue, also proposes to review section 27-B with the aim of finding a mutually acceptable solution.

C. The Committee’s conclusions

1. 841. The Committee deplores that, despite the time that has elapsed since this case was first examined, the Government has not replied to all of the Committee’s recommendations, although it has been invited on several occasions, including by means of an urgent appeal, to present its comments and observations on the case. The Committee urgently requests the Government to be more cooperative in the future.
2. 842. Under these circumstances, and in accordance with the applicable rules of procedure [see 127th Report, para. 17, approved by the Governing Body at its 184th Session], the Committee finds itself obliged to present a report on the substance of the case without the benefit of the information which it had hoped to receive from the Government.
3. 843. The Committee recalls that the purpose of the whole procedure established by the International Labour Organization for the examination of allegations of violations of freedom of association is to promote respect for this freedom in law and in fact. The Committee remains confident that, if the procedure protects governments from unreasonable accusations, governments on their side will recognize the importance of formulating, for objective examination, detailed replies concerning allegations made against them [see the First Report of the Committee, para. 31].
4. 844. The Committee recalls that when it examined this case at its November 2001 meeting it urged the Government to: (1) take the necessary steps without delay to amend section 27-B of the Banking Companies (Amendment) Act, 1997, so as to admit as candidates for union office persons who have previously been employed in the occupation concerned, and by exempting from the occupational requirement a reasonable proportion of the officers of an organization; and (2) reply without delay to the complainant’s allegations that over 500 union leaders in the banking sector, including Mr. Maqsood Ahmad Farooqui, President of the UBL Employees’ Federation of Pakistan and Mr. Rahmat Ullah Kazmi, General Secretary, UBL Labour Union Karachi, were dismissed or terminated from employment pursuant to the enactment of section 27-B of the Banking Companies (Amendment) Act, 1997 and requested the Government to inform it of the current status of these trade union leaders.
5. 845. As regards the Committee recommendation to amend section 27-B of the Banking Companies Act, the Committee notes that, while the Government considers that this provision does not restrict trade union and collective bargaining rights of employees of the banking sector and that its adoption was essential in the light of the special needs of the banking industry, it states that it is currently taking steps in order to amend section 27-B. The Committee urges the Government to amend section 27-B of the Banking Companies Act without delay and requests it to provide information on any progress made in this regard.
6. 846. As concerns the Committee’s request to provide information on the dismissed or terminated from employment 500 trade union leaders, including Mr. Maqsood Ahmad Farooqui, President of the UBL Employees’ Federation of Pakistan and Mr. Rahmat Ullah Kazmi, General Secretary, UBL Labour Union Karachi, the Committee notes that no information was provided by the Government in this respect. The Committee therefore once again strongly urges the Government to provide information without delay on 500 trade union leaders in the banking sector, including Mr. Maqsood Ahmad Farooqui and Mr. Rahmat Ullah Kazmi, who were dismissed or terminated from employment pursuant to the enactment of section 27-B of the Banking Companies (Amendment) Act, 1997.
7. 847. The Committee refers to its recommendations in Case No. 2229 concerning Pakistan approved by the Governing Body at its March 2003 session [see 330th Report, para. 958], where it requested the Government to amend the Industrial Relations Ordinance of Pakistan (IRO) of 2002, as well as to the observations of the Committee of Experts [see Report III (Part 1A), 2004]. The Committee regrets that so far the Government has not been able to amend the IRO so as to bring it into conformity with Conventions Nos. 87 and 98.

The Committee's recommendations

1. 848. In the light of its foregoing conclusions, the Committee invites the Governing Body to approve the following recommendations:
   • (a) The Committee deplores that, despite the time that has elapsed since this case was first examined, the Government has not replied to all of the Committee’s recommendations, although it has been invited on several occasions, including by means of an urgent appeal, to present its comments and observations on the case. The Committee urgently requests the Government to be more cooperative in the future.
   • (b) The Committee urges the Government to amend section 27-B of the Banking Companies (Amendment) Act, 1997, without delay and requests it to provide information on any progress made in this regard.
   • (c) The Committee once again strongly urges the Government to provide information without delay on 500 trade union leaders in the banking sector, including Mr. Maqsood Ahmad Farooqui, President of the UBL Employees’ Federation of Pakistan, and Mr. Rahmat Ullah Kazmi, General Secretary, UBL Labour Union Karachi, who were dismissed or terminated from employment pursuant to the enactment of section 27-B of the Banking Companies Act.
   • (d) The Committee refers to its recommendations in Case No. 2229 concerning Pakistan approved by the Governing Body at its March 2003 meeting where it requested the Government to amend the Industrial Relations Ordinance of Pakistan (IRO) of 2002, as well as to the observations of the Committee of Experts. The Committee regrets that so far the Government has not been able to amend the IRO so as to bring it into conformity with Conventions Nos. 87 and 98.