Industrial Relations Management

HR Planning
Learning &
Development

Performance
Management

Talent Acquisition

Core Functions of
HRM

Other links

Job evaluation
Job design
Career counseling
Skills auditing

Industrial Relations
Management

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Total Reward

Industrial Relations Management

Why IR Management

May Day the real time story

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

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Industrial Relations Management

Why IR Management

contd.

Outcomes of the Strike:

1- Prior to this strike workers were forced to work
for 12 14 hours per day. After this sacrifice it
was declared that one working day shall be
comprised on 8 hours working and overtime
shall be paid in case of excess working.
2- One week shall consist upon 6 days with
maximum 48 hours working.
3- One day of the week shall be considered off
day with pay.

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Industrial Relations Management

What is IR Management ?

Industrial Relations is a process by which

human beings and their organizations
interact at the work place to establish
the terms and conditions of employment
Industrial Relations System is
Interrelations among persons,
organizations and standards in the
industrial environment
Major players of this process are Employer,
Employees and the Government.

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Industrial Relations Management

Organizational Goals
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Enhance Productivity & Profitability

Increase market share
Customer satisfaction and repeat business
Satisfaction of Stake holders
Operational efficiencies
Develop ability to respond to market
opportunities
Effective and efficient use of resources
Cost of production may be reduced
Waste reduction
Competitive advantages
Participation and motivation of human resources
Industry reputation / corporate standing

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Industrial Relations Management

Objectives of the Workers

1.
2.
3.
4.
5.

6.
7.

Job Security
Occupational Health & Safety
Fair remuneration against performance
Appropriate increase in salary / wages
Regularization of Contract / Daily Wage
Employees
Learning Environment
Compliance of Labor Law

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Industrial Relations Management

Objectives of the Government

To maintain the industrial peace for

1.
2.
3.
4.
5.
6.
7.

Enhance productions (GDP)

Increase in Exports
Reduce Unemployment
Increase tax net
More revenue generation
Elimination of Gender Discrimination
Elimination of Child Labor & Bonded
Labor

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Industrial Relations Management

Role of ILO

The objective of establishing the

International Labor Organization in 1919
was to under take joint international action
to:
1.

2.
3.
4.
5.

Improve labor conditions world wide including

Child Labor
Bonded Labor
Minimum Wages
Rehabilitation of disabled Persons
Working hours etc.

Pakistan has ratified 36 ILO

conventions so far.

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Industrial Relations Management

Organizational Pyramid
Top
Management

Middle Managers

First Line Managers

Non Management Employees

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Industrial Relations Management

Scope of IR Management

Groups of Human Resources in an organization

Top Management including Chairman, Board of

Directors, CEO, GMs and DGMs
Middle Management including Sr. Managers,
Managers, Dy. Managers, Asst. Managers
First line Managers Jr. Executives and Sr.
Executives
Non Management Employees such as Unskilled
Workers, Semi Skilled Workers, Skilled Workers, Sr.
Skilled Workers and Supervisors

IR Management deals with the Non

Management employees only

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Industrial Relations Management

Functions of IR Management

To ensure the implementation of minimum

standards as provided in the labor laws / by ILO
Negotiation with CBA regarding charter of
demand - COD and maintain the industrial
peace
Labor-Management relations in day to day
business
Disciplinary actions, Grievances handling, Show
Cause Notice, Inquiry, Warnings and
Terminations etc.
Dealing with labor contractors

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Industrial Relations Management

Functions of IR Management
Continued..

Dealing with external agencies such as Labor

Department, PESSI, EOBI etc.
Dealing with Health Department and periodic
medical check up of Non Management Employees
Time office function, preparation of daily
attendance & monthly compiled attendance along
with over time for preparation of Salary / Wages
Maintenance of leave record and personal files
Liaison with Legal Advisor & follow up and attend
the Courts of law

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Industrial Relations Management

Intervention of Players

The Non Management Employees /

workers
Through CBA / Trade Union
The Employer
Through Management Negotiation Team
The Government
Through Labor Code of Pakistan /
Legislation / Labor Department
International Labor Organization
Through Government

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Industrial Relations Management

Important Labor Laws of Pakistan

1.
2.
3.
4.
5.
6.
7.

Workmens Compensation Act 1923

Factories Act 1934
Payment of Wages Act 1936
Factories Canteen Rules 1959
Minimum Wage Ordinance 1961
Apprenticeship Ordinance 1962
Provincial Employees Social
Security Ordinance 1965 - PESSI
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Industrial Relations Management

Important Labor Laws of Pakistan

Continued
8.

9.

10.
11.
12.
13.
14.
15.

Industrial & Commercial Employment (Standing

Order) Ordinance 1968
Companies Profit (Workers Participation) Act
1968
Shop & Establishment Ordinance 1969
Fair Price Shop Ordinance 1971
Cost of Living (Relief) Act 1973
Employees Old-age Benefit Act 1976
Punjab Industrial Relations Act 2010
The Protection against Harassment of Women at
the workplace Act 2010

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Industrial Relations Management

Critical Analysis of Labor Laws

1.
2.
3.
4.

5.

6.

Complex and worn out Laws

Excessive Number of Laws
Grey areas such as:
Definition of worker / workman differ in
almost every law
Standardized definition of wages / salary
is not available
Factories Act 1934 regulates the child
labor whereas ILO Conventions prohibit
it.

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Industrial Relations Management

Major Changes in Labor Laws since 2002

Punjab Labor Appellate Tribunal made

functional again.
Labor court has been given the third power of
bargaining 12-30 salaries in lieu of
reinstatement
Tenure of CBA increased from 2 to 3 years in
case of workers more than 5000.
Right of strike after failure of tri-part
negotiations
Minimum wage for unskilled worker has been
increased from Rs.12,000/- to Rs.13,000/- pm.

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Industrial Relations Management

Major Changes in Labor Laws since

2002

Time limit for redress of individual

grievance has been reduced from 3 to one
month.
Working hours for female employees
extended by 10:00 pm, subject to provision
of pick and drop facility by the employer
Daily overtime hour limit increased from 2
to 3 hours.
Minimum monthly EOBI pension increased
from Rs.3,600/- to Rs.5,250/Death grant increased from Rs.200,000/- to
400,000/-

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Industrial Relations Management

Major Changes
in Labor
Laws Laws
since
Major
Changes
in Labor

2002
Marriage grant increased from
Rs.70,000/- to Rs.100,000/- for all
daughters
Disbursement of salary through bank
After 18th amendment in the
constitution of Pakistan, labor law has
been made the provincial matter,
except EOBI and Workers Profit
Participation Fund.
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