1 LABOUR MARKET CONDITIONS

Introduction to the topic The most broadly defined labor market consists of all of the buyers and sellers of labor services, and consists of the global labor market. Narrower labor markets are defined by limiting the industries, occupations, or the geographical area covered. Even at the national level, most researchers and analysts would focus on a few industries or occupations in describing labor market conditions or trends. Since labor market conditions and trends often vary among the regions and states, labor market are commonly defined by limiting the geographical coverage to a region, state, or oftentimes a sub-state area. LABOUR MARKET CONDITIONS When we use the words labour market conditions, we are referring to the in and out flow of labour, the level of quality of that labour force, the composition of the market with respect to gender, ethnicity, expertise and age groups also covers the issues of exploitation of labour by the power full industrialist as well as the role of power hungry labour leaders. Labour market condition also encircles the activities termed as labour management, the situation regarding quality of work life. It also covers the scenario arising due to the change in political environment of the world. In general we can say that it is an arena where human resource is the key player. In this study we will focus on the condition of work force with a particular reference to Pakistan research has provide that the employers change their policies in response to changes in market. Important sub-topics LABOUR MARKET INDICATORS On the basis of International Labour Organization Data Unemployment rate in 2000: 7.8% (I.L.O data) Active population:

2 Year Total Population Active population Activity rate 28.46%

2002 145.96 million 41.54 million

Employment by sector: Year 2002 Agriculture 47.3% Industry 17.1% Services 35.6%

Employment contracts Employment contracts are regulated by collective agreements. Individual negotiations and law complement them. The terms of the employment contracts are rather rigid. The limits for dismissal and the conditions for hiring are flexible. Salaries Monthly national minimum wage on the 01/01/03 : US$ 42 (PKR 2,500) for unskilled workers Average wage per employee in manufacturing industry in 2000 : 2,981 rupees by month ( I.L.O data) Contributions Employers' contribution : 9 %. Employees' contribution : 8 %. Duration of work time Legal weekly duration : 48 hours Retirement age : 65 2. GROWTH OF POPULATION AND LABOUR FORCE The labour force (around 42 million in 2002) is not a very large proportion of the population (146 million in 2002) in Pakistan. It is estimated to be around 28-29 per cent. Population growth had been increasing over the years, up to and including 1970s. Although the last census was carried out in 1980,

3 projections on the population growth rate suggest that it is likely to have fallen and has probably stabilized now to just under 3 per cent. Labour force growth rates on the other hand were higher than that of population in 1970s (figure 1.1) but have been generally lower after the

1970s. Although the labour force survey figures for the 1990s can also be
interpreted to suggest a decline in labour force growth on trend, there are problems in comparing the labour force trends before and after 1990-91. There is however a clear decline between the two definitionaly comparable periods of the 1970s and 1980s. This means that labour force growth, which is significantly lower than population growth, is likely to be falling while the growth of population is likely to be stabilizing.

4 If serious data problems are excluded as a cause, then one of the main reasons for falling labour force growth rates is reflected in the decline in participation rates due to withdrawal of sections of persons of working age from the labour force. Educational enrolments for an increasingly younger population of working age mean that the labour force growth will begin to

rise in the near future. This has implications for trends on unemployment
and underemployment in the present situation. These are likely to be magnified with an increase the growth rate of the labour force in the future. LABOUR FORCE AND EMPLOYMENT

Employment Situations
The “economically active population” comprises persons of either sex who furnish the supply of labour for the production of goods and services, during a specified time reference period. But not all these persons are currently active (or in the labour force) at any particular point of time. In Pakistan, the currently active population or labour force comprises of all persons ten years of age and over who fulfill the requirements for inclusion among employed or unemployed, defined as follows, during the reference period i.e. one week preceding the date of interview. • The “employed” comprise all persons ten years of age and over who

worked at least one hour during the reference period, and were either “paid employed” or “self-employed”. (Persons holding permanent jobs, who for any reason had not worked during the reference period is treated as employed).

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Unemployment Situations
The “unemployed” comprise all persons ten years of age and over who during the reference period were: – – Without work,” i.e. were not in paid employment or self-employment; Currently available for work,” i.e. were available for paid employment or self employment; and – Seeking work,” i.e. had taken specific steps in a specified recent period to seek paid employment or self-employment. • The underemployed comprise all employed persons who during the

reference period were working less than the “normal” duration on an

involuntary basis and were seeking or were available for additional work. In
Pakistan, the underemployment rate is estimated as a ratio of the employed (who worked less than 35 hours a week) to total labour force. With the help of the available data, we analyze below the latest employment, unemployment and under-employment situation in Pakistan.

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FACTORS EFECTING LABOUR MARKET TRENDS. 1. Demographic changes. GLOBALIZATION: The effects of globalization on the change of trends of labour. a. Due to the rapid changes of technology in different countries(china, korea ee) the requirements of the labour exclusively effect the labour market condition as un skilled labour is getting out of the market and the un skilled labour is compelled to getting training to survive in the advance industrial technology and its requirements. DEMOGRAPHIC CHANGES:The demographic changes are created due to the enterence of female labour in the modern technological eara. The female labour in the past was exclusively unskilled and illetrate. The abrupt changes in the advance technology required majority of skilled labour and the female labour after getting technical education entered in the labour market and ready to accept low rate wages as compared male skilled workers.

7 The enterence of IT in the modern eira mostly change the requirements of modern industry and the female labour having equal better qualities entered and swearly effected the previous market concept. Another factor in the premative industrial eara was child labour. The mostly un skilled child labour was working in different industries on very nominal wages. Now in the modern era UNO department ILO placed the concept of child labour free in the modern industry. It also create the new trend. TECHNOLOGICAL CHANGES: In the remote past the industry was manly handled by un skilled labour and production process was very slow due to hand made production. The technological change and the production process was inproved with the skilled labour and majority of un skilled labour was badly effected and created big changes on the labour market.

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Practical study of the organization respect to the topic
Sayyed Engineers (Pvt) Ltd.

INTRODUCTION

Sayyed pioneered the ballpoint pens manufacturing in South Asia at a time when such precision engineering as is involved in the production of ball point pens, especially the tips, was thought to be possible only in the advanced countries. From the time of its inception in 1967, it has continued its commitment to quality and innovation. In addition to being the largest producer of ballpoint pens in Pakistan, it has been exporting its quality products to many countries, including UAE, Jordan, Iraq, Egypt, Madagascar, Holland, Morocco, Afghanistan and Saudi Arabia. At Sayyed, ballpoint pens are injection molded, and refills produced, from the best machines and raw material available from Germany, Switzerland, and Japan. Detailed quality control procedures have been implemented, for which the company has obtained ISO 9002 certification. It produces ballpoint pens, PRODUCTS BALLPOINT PENS Piano Clariflo Solo Fine FIBER TIP PENS Rondo GEL PENS Piano Crystal Adagio Coro Piano Clear Echo Serene Piano plus Lyrico Soprano Piano Excel Viola

Silko Fineliner

Lore

Lento

Tempo

 Ode 2 Gel  Flute Gel VENDING PROJECTS Sayyed has utilized its vast experience in the field of plastic injection molding by diversifying into the manufacture of plastic components for various companies, besides producing plastic ballpoint pens. The spare injection molding capacity available is now being used in vending jobs for the automotive industry and high quality plastic products are being manufactured for Honda Atlas Cars (Pakistan) Limited and Saigols Qingqi Motors Limited, Lahore. Additionally, plastic parts of telephone sets are being produced for a major supplier of telephone sets in Pakistan. The company offers its advanced injection molding facility for custom injection molding of other plastic components as well.

9 Practical Study of Sayyed Engineers (Pvt) Ltd. The work force of in Sayyed Engineers (Pvt) Ltd is working under two categories. Permanent Employees This category of the work force is appointed under Industrial Relation Ordinance (IRO) and they are paid according to the rules of the company. The employees working under this category enjoying all the benefits of such as Medical, Bonus, and Temporary advances, Recreation Allowances, annual increments, efficiency targets, over time, etc. Employees on Contract Casual employment is based on three-month period. Casual workers are normally unskilled and they are employed as per the job requirements in different departments. They are not eligible for the benefits of the permanent employees. They can be fired at any time with out any notice. Working Conditions It is observed that the working conditions are super normal and every body enjoying a good and pleasant environment. But the deep study of the Organization show that from the last 15 years no fresh recruitments. The casual labour is getting as per minimum wage act and no skilled employee is appointed in this category. The working environment as compared industries much better because the workshops are properly ventilated, lighted, and free from stocks due to proper fencing on machines, free from dust and fumes. These are the main advantages, which are attracting the labour to work better. Many casual workers have dreams to be a permanent worker here. In respect of emoluments company paying the fringe benefits and many other incentives are introduced, so every employee can get the handsome pay after the monthly working. Company also provided the recreational facilities to every employee. The relations of management and workers are also very better and prosperous.

Review of theoretical and practical situations
The theoretical and practical studies give the following points.  The organization is exploiting the new workers because they can never be permanent employee.  The number of permanent workers is decreased with the passage of time.  The Union strength is also getting week.  The company getting much more from the manpower at a rate, which is much cheaper than the normal wage rate which origination, have to pay. Merits, demerits, deficiencies or strengths of the organization with respect to your topic.

10 Sayyed Engineers (Pvt) Ltd has a history of good working conditions for the work force and is being among the best for compensating its employees with regard to the pay and allowances as well as the facilities such as medical, bonus, recreation allowance, Temporary advances and conveyance etc. Timely promotions and increments are given to the workers. That is why there is a little turnover of the workers in the company, and the workers feel job satisfaction. The organization is also being registered with the other Government institution for worker’s welfare, like “Social Security” and “Employees Old age benefits institution”. The company is also registered with the Labour courts and they have a pure Union of workers, which is much formed, and it is well maintained by the company as per the agreement of the workers. Company also arranges many training programmers for its workers with the help of apprentice’s ship training centre. Company has also built its internal Mould Making Team, which is very use full for the company as well as for the carrier of the workers. The organization is treating its employees well when we observe it in relation to the other companies in the country, which is an important strength of the company. Drawbacks • The union is also trapping the company for many non-serious benefits and other non-regular increments. • The junior supervisory staff is non-qualified and they are rankered from the existing workers cannot under stand the basic theme of the management. • Now a day The Company is not employing the workers on permanent basis, which is causing frustration among all the workers on contract, and they are feeling insecurity of their job. Conclusions and recommendations. The working condition of the Pakistan market is not so good because the economic activities laying behind the growth of population so in this respect employers are shaking the trust of labour and they are using unfair means to curtail the benefits of the workers. Annex, if any

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