LABOUR MANAGEMENT

RELATIONS(821)

ASSIGNMENT NO. 2

By:
Muhammad Amjad Baig
508195520

Submitted to:
Respectable Tutor

Mr. Muhammad Waseem Hayat

H No.735, St No. 3, I-10/2,
Islamabad

AIOU, ISLAMABAD
Assignment No. 2 Labor Relations
Management (821)

ACKNOWLEDGEMENT

All praise to Almighty Allah, the most merciful and compassionate, who give me
skills and abilities to complete this report successfully

I am grateful to my parents who are always been a source of encouragement for me

throughout my life and from start to the end of this report.

I am grateful to our respectable tutor Mr. Waseem Hayat for his kind guidance and
support. And also the support & guidance of Mr. Omer Bhatti, Computer Programmer,
Mr. Moazzam Ali Zahid, General Secretary, Postal Head office Employees Union (PHEU)
& Mr. Zaka Ullah, Press Secretary, PHEU, Postal Services Head Office, Islamabad.

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Assignment No. 2 Labor Relations
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Abstract

This report is based on the theoretical and practical research on the “Labor
Management Relations in Public Sector”. While collective bargaining in any
environment can be difficult, this is especially true in the public sector. Many of the
forces that make the process workable in the private sector are absent in the public
sector. For example, the private sector’s profit-driven management style may be
replaced with a management approach that is more focused on serving the general
public. This difference can significantly alter the priorities set by management in
collective bargaining. Further, the private sector’s long-term budget forecasting
models are replaced by a budgeting system that is often controlled by a third-party
legislature, subject to the whim of voters. This creates unique challenges for an
employer who needs to forecast future revenues and, in turn, bargain with employees.

This report carries the introduction to Labour Management Relations, early history of
LRM, model of LRM. For empirical research, I select Ministry of Postal Services, Head
Office, Islamabad.

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Assignment No. 2 Labor Relations
Management (821)
CONTENTS

• TITLE PAGE 1

• ACKNOWLEDGEMENT 2

• ABSTRACT 3

• TABLE OF CONTENTS 4

• INTRODUCTION & BACKGROUND OF PRESENT LABOR MANAGEMENT RELATIONS 5

• LABOUR DISPUTES & UNIONS 5

• WORK OF UNION, UION SECURITY & FORMS OF UNION 7

• NEED FOR GOOD MANAGEMENT RELATIONS 8

• HISTORY IN LABOUR MANAGEMENT RELATIONS 9-14

• MODEL OF LABOUR RELATION MANAGEMENT 14-16

• PRACTICAL STUDY OF THE ORGANIZATION 17

Pakistan Post, Postal Head Office, Islamabad

• ROLE OF THE POST IN PAKISTAN 18

• SERVICES BEING PROVIDED BY PAKISTAN POST 19-22

o Postal Services
o Remittance Services
o Agency Functions
o Regular Services
o Financial Services
o Forms available with postal website

• AUTOMATION AND ALLIED SERVICES AT PAKISTAN POST 22-23

o Benazir Income Support Programme

o Punjab Food Support Scheme
o Counter Automation
o Computerized Military Pension Payment System
o Express Mail Track & Trace System (EMTS)
o Electronic Money Transfer
o Revamping of Webprotal
o Computerization of Postal Life Insurance

• POSTAL NETWORK, ORGANIZATION & MANAGEMENT 24

• BENEFITS FOR EMPLOYEES 25-26

• COLLECTIVE BARGAINING IN POSTAL SERVICES 26-29

o Work Council & Collective Bargaining

• ANTI-PRIVATIZATION ACTION COMMITTEE 30

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• Address of Mr. Israrullah Zehri, Federal Minister for Pak Post 31
• Remarks of Senator Waqar Ahmed Khan, Federal Minister (Privatization) 32

• SWOT ANALYSIS 33-34

• CONCLUSION 35-36

• RECOMMENDATIONS 37

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Assignment No. 2 Labor Relations
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INTRODUCTION

"The study of labor-management relations (LMR) refers to the rules and policies which
govern and organize employment, how these are established and implemented, and
how they affect the needs and interests of employees and employers. LMR has
implications for the organization of work as well as economic policy. Focus gradually
has broadened from the formation and operation of national and local institutions and
collective bargaining to strategic human resource policies."

(Von Otter, 2007)

The highest level of cooperation is evidenced by those agreements and relationships

where there is a meaningful partnership between labor and management about all or
most decisions in the production process.

Generally Labor Management Relations “refers to the relationship between the

employees on one hand and management to the other; the Constitution takes part in
the Labor-Management Relations

BACKGROUND OF PRESENT LABOR-MANAGEMENT RELATIONS

• The government should assume the role of guardian over the interests of labor.
• The employer has a social and moral responsibility to ameliorate the lot of his
employees
• Idea of Social Justice
• Government should actively intervene in labor disputes

LABOR DISPUTES

They are difficulty caused by impaired relations between employees and management
as a result of dissatisfaction, irritation, complaints, grievance, and misunderstandings
between employees and their employer

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Irritants to Workers:

• Management’s resentment of the undue protection by the government of

employees and unions through pieces of legislation

• Management’s indifference and unfairness

Irritants to employers:

• The shift of worker’s loyalty from management to union

• Reduction of managements right to discipline or deal with employees
• Inter-union and intra-union rivalries
• Harassment of union by filing all kinds of complaints
• Abuse of the union’s power

LABOR UNIONS

Labor Union is an organization run by and for the workers who have banded together
to achieve common goals in key areas and working conditions

UNION OBJECTIVES

Economic objectives of the union:

• Higher wages;
• Short hours of works;
• Various employee benefits such as vacation leave, sick leave, and hospital, medical,
and insurance plans.

Political Objectives:

• lobbying activities designed to secure the passage of favorable legislation and

opposing unfavorable proposed laws; and
• to support and campaign for political candidates who are “labor-friendly”

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WORK OF UNIONS

• Negotiating a contract of employment relationship with management;

• Handling complaint and grievances of the employees;
• Enlisting, organizing, and indoctrinating of new members;
• Conducting a political actions;
• Conducting research work on union problems and projects;
• conducting union training and education among the officers and members;
• involvement in community activities;
• Establishing linkages with other organizations.

UNION SECURITY

Union Security is a term applied to a provision in a collective bargaining agreement

whereby an employer agrees with the contracting union to maintain his firm certain
conditions of employment designed to protect the union against loss of membership or
loss of income derived from membership dues.

OBJECTIVES OF UNION SECURITY

• To protects it’s life through recognition;

• protect itself against loss of members or loss of income derived from membership
fees.

FORMS OF UNION SECURITY

• Closed shop;
• Union shop;
• Maintenance of Membership Shop;
• Agency Shop

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COLLECTIVE BARGAINING

Collective bargaining process whereby management and the union discuss and decide
terms and conditions of employment which will govern the conduct of their
relationships within the duration of agreement.

WHO SHOULD ATTEND NEGOTIATIONS?

• A senior company official;

• One of the company’s representative that should act as the chief spokesman for the
company ;
• Anyone in the union ;
• Presence of a legal counsel may, or may not be necessary

NEED FOR GOOD MANAGEMENT RELATIONS

After the devastation of the Second World War, Germany and Japan have achieved
remarkable socio-economic progress and rebuilt their countries by cultivating team
spirit and imbibing wholesome personality traits. And also through a continuous life-
long learning process, besides raising productivity and sharing its fruits by the
enterprise, workers and society as a whole. However, in Pakistan this can mainly be
achieved by respecting the principle of Freedom of Association of the workers in order
to form an organisation of their own choice and the Right of Collective Bargaining in
line with the ILO Conventions No 87 and 98 ratified by the Government of Pakistan.

The incumbent government had committed in its election manifesto to bring all the
Labour Laws in conformity with the ILO Conventions. The legislation namely the
Industrial Relation Act 2008 is just for an interim period which will expire in April 2010.

In this context, the workers and the employers organisation has submitted their joint
and individual representations to get the law amended and bring it in conformity with
the ILO Conventions. The ILO Committee of Experts on the implementation of the
ratified ILO Conventions in its report of 2009 has also recommended government to
amend the said law by fulfilling its international obligations and even offer its technical
assistance for the amendment of Labour Legislation.

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Some of the provisions contained in the Industrial Relations Act 2008 are progressive
as compared with the previous abrogated legislation, namely the Industrial Relation
Act 2002, incorporating the provisions of the Joint Management Board and workers
participation in management and empowering the Industrial Relation Commission to
issue prohibitory order in case of allegations of unfair labour practice. However, some
provisions in the Industrial Relations Act 2008 were incorporated without consultation
with the stakeholders, including representative worker organisations which are
required to be changed by amending the said law. For example, allowing the right to
form Trade Union to all the workers including agricultural workers in conformity with
the principles of the ILO Convention No 87 and 11 ratified by the government and
amendment of the definition of "Settlement" under Section 2 (xxv) to confine
settlement to be reached with representative CBA Trade Union and the accredited
representative instead of entering into with individual workers in order to get the
Fundamental Right to Collective Bargaining of the workers since the Freedom of
Association enables to accord collective voice of the workers to achieve the norms of
social justice.

HISTORY IN LABOUR MANAGEMENT RELATIONS

The majority of key turning points in labor-management relations in the United States
have been associated with periods of economic hardship. The Great Depression saw
the establishment of comprehensive federal legislation designed to protect workers'
right to organize. With the slowdown in economic growth and the intensification of
global competition after the early 1970s, a number of labor-management cooperation
programs were advocated to improve the efficiency of U.S. firms. In 1993, the Clinton
administration established the Commission on the Future of Worker-Management
Relations to address a broad range of issues, among them labor-management
cooperation programs and the reform of U.S. labor law.

The federal government first guaranteed the right to organize and bargain collectively
for railroad workers with the passage of the Railway Labor Act of 1926. The National
Industrial Recovery Act of 1933 (NIRA) was part of the New Deal policies of the Great
Depression era. The NIRA was intended to protect workers' right to unionize. It stated
"That employees shall have the right to organize and bargain collectively through

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representatives of their own choosing. … The NIRA had several shortcomings, among
them a lack of enforcement provisions, and the act did little to promote workers'
rights.

The basic law regulating labor-management relations and collective bargaining in the
United States is The National Labor Relations Act of 1935, commonly referred to as the
Wagner Act. A key provision of the act guarantees the right of nonmanagerial
employees who work for firms engaged in interstate commerce to join unions and
bargain on a collective basis. The legally protected right of workers to unionize was
first established at the state level. In Massachusetts, for example, the state Supreme
Court recognized this right in an 1842 decision.

The Wagner Act was primarily the work of Robert Wagner, a Democratic Senator from
New York who wished to address the shortcomings of the NIRA. In 1933, Wagner
began meeting with representatives from the American Federation of Labor and the
National Labor Board, which was set up to administer the NIRA. These meetings
culminated in the writing of the Wagner Act in February of 1934. The act failed to
receive congressional support when initially introduced, but passed after the
Democrats made substantial gains in the congressional elections of 1934; it was signed
into law by President Roosevelt in July of 1935.

The most controversial part of the Wagner Act was Section 8, which prohibited what it
called "unfair labor practices" on the part of employers. Under Section 8, employers
could not legally fire workers for joining unions, could not refuse to bargain with a
union that represented a majority of workers, and could not establish company unions.
In large part due to the Wagner Act, union membership increased from 4 million in
1935 to 12 million in 1947. The National Labor Relations Board (NLRB) was established
to administer the Wagner Act and is still the key agency regulating labor-management
relations at the national level.

The constitutionality of the Wagner Act was affirmed in 1937 by the Supreme Court
in National Labor Relations Board vs. Jones and Laughlin Steel Corporation. Shortly
thereafter, pro-business organizations such as the National Association of
Manufacturers sought to amend the Wagner Act. The Wagner Act was not amended,
however, until the record wave of strike activity that followed World War II, in which

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President Truman personally intervened to settle disputes in the coal mining, railroad,
and steel industries.

The National Labor Relations Act of 1947, also called the Taft Hartley Act, became law
over the objections of the National Labor Relations Board (NLRB) and Truman's veto.
Important amendments were made to Section 8, clarifying what were considered
unfair labor practices by unions and employees; the Wagner Act had covered only
unfair practices by employers.

Another key amendment was the addition of Section 14(b), which legalized what came
to be called right-to-work laws. These laws, enacted at the state level, prohibited what
is known as a union shop, in which all workers in a unionized factory are forced to join
the union and pay dues. Right-to-work laws make union organizing much more difficult
and continue to be opposed by organized labor into the late 1990s. Labor interests
reject the term "right-to-work" as pertains to these laws as a cynical misnomer. They
contend that since a union acting as a bargaining agent is compelled to represent all
the workers in question (and not just those belonging to the union), it is only fair that
all those employees should pay their share for the benefits of union representation by
being dues-paying union members.

Attempts to overturn Taft-Hartley began just after its passage and intensified with the
merger of the American Federation of Labor and the Congress of Industrial
Organizations in 1955, forming the AFLCIO. These efforts were greatly weakened by
investigations into union corruption by the McClellan Committee of the Senate from
1957 to 1959 that culminated in the Labor Management Reporting and Disclosure Act
of 1959, also known as the Landrum-Griffin Act. Landrum-Griffin outlined a Bill of
Rights for union members. It did not, however, greatly weaken those elements of Taft-
Hartley that opposed unions, and was devoted in large part to regulating the internal
affairs of unions in response to the McClellan Committee's findings of widespread union
corruption.

Union membership expanded steadily in the post-World War II years until the
recession of the late 1950s, when it declined from just over 17.5 million to 16.5 million
members by the early 1960s. The period from the mid 1960s to the late 1970s saw a
steady and substantial growth in the number of union members, peaking at about 24

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million workers in 1977. From 1978 through the 1990s, however, union membership
plummeted, reaching lower levels than in the worst years of the early 1960s. Looking
at union membership as a percentage of the private sector labor force yields a
somewhat less dramatic picture, since this ratio declined in almost all years after 1955,
though at an accelerated rate after the mid-1970s. In 1997, only 14.1 percent of full-
time wage and salaried employees were unionized.

Moreover, strike activity has paralleled the downward membership trends. In 1997,
there were 29 strikes involving 1,000 or more workers; these strikes were able to draw
a total of 339,000 workers. By way of comparison, 255 strikes of similar scale took
place in 1979, involving a total of 1,021,000 workers.

The decline in union membership was associated with a number of other factors that
led to a substantial transformation of labor-management relations in the United States.
Among these factors were intensified global competition, substantially slower average
growth rates for the economy as a whole, declining real wages, the deregulation of key
industries, the shift in employment from the industrial to the service sector and from
the union strongholds of the Midwest and Northeast to the Sunbelt states, greatly
increased anti-union efforts on the part of employers, and reduced resources devoted
to organizing on the part of unions.

In the face of their reduced power, unions were compelled to make substantial
bargaining concessions beginning in the early 1980s. These included wage and benefit
givebacks, the acceptance of two- and three tiered wage systems, and greater
demands by employers for flexibility and cooperation.

Numerous ideas regarding labor-management cooperation came into vogue among

managers during the 1980s and continued into the 1990s. Modeled on Japanese labor-
management relations and systems of production, these practices were referred to
variously as joint programs, team concept, lean production, employee involvement,
and labor-management participation, among others. These programs typically
advocated non adversarial relations between management and labor, the
establishment of work groups or quality control circles, and soliciting workers' input
regarding the efficiency of the production process. Many advocated greater flexibility in
the production process and workers' schedules.

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The rise of employee stock ownership plans (ESOPs) marked another change in labor-
management relations in recent years. One of the largest ESOPs went into effect at
United Airlines in 1994. The plan gave United employees ownership of 55 percent of
outstanding shares in exchange for wage cuts averaging 14 percent. In addition, the
two unions involved were each to get a representative on the 12-member board of
directors.

Robert Reich, the first Clinton administration's Secretary of Labor, created a

Commission on the Future of Worker-Management Relations in mid-1993. This was
commonly referred to as the Dunlop Commission after its chairman, John Dunlop,
Secretary of Labor under President Ford. The Dunlop Commission studied a broad
range of labor-management issues for the purpose of making policy recommendations,
in particular with amending federal labor legislation.

The commission's fact-finding report from mid1994 stated that "stagnation of real
earnings and increased inequality of earnings is bifurcating the U.S. labor market, with
an upper tier of high-wage skilled workers and an increasing 'underclass' of low-paid
labor." The report noted the shift from high-paying production work to low-paying
service work, the large number of full-time workers whose income did not provide an
adequate standard of living, and the fact that workers in the United States put in
longer work weeks than workers in any other advanced industrialized country except
Japan. The report also noted that an increasing number of workers were illegally fired
for union organizing activities.

The Dunlop Commission was generally supportive of labor-management cooperation

programs but noted that many firms were reluctant to implement them because of
Wagner Act restrictions on company unions. In 1993, the AFL-CIO expressed to the
Dunlop Commission its willingness to accept weakening of restrictions on company
unions in exchange for reforms that would make union organizing easier. In hearings
held in August of 1994, the AFL-CIO backed off on this offer.

In the mid-1990s, amidst continued deflation of union membership and a general

sense of decline in the significance of unions in general, situations emerged signaling
that rumors of organized labor's demise had been premature. From 1995 to 1996,
Bridgestone/Firestone Company squared off with the United Rubber Workers union in a

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case that achieved symbolic dimensions for the state of labor-management relations in
the United States. The URW struck to maintain "pattern bargaining," whereby
Bridgestone workers were to receive compensation and conditions on a par with
workers at Goodyear, Bridge-stone's more profitable competitor. Bridgestone rejected
any such agreement, and the dispute evolved into a 27-month quagmire that saw the
URW, by turns, nearly epitomize the death of organized labor and then symbolize its
resurgence.

In 1995, when Bridgestone mobilized several thousand strike breakers, some union
locals voted to return to work without any concessions, though few workers were
actually rehired initially. When Bridge-stone registered a significant recovery through
1995 and more strikers were called back to work, the URW regrouped and allied with
the sympathetic United Steel Workers, who had decided to take up the cause.
Subsequent pressure on the company threatened contagion, and proved embarrassing
to the thriving Bridgestone. Soon all workers were re-hired by the company with
massive concessions.

Following this display of union vitality, major strikes were undertaken by workers for
United Parcel Service in 1997 and General Motors in 1998. While the results of these
strikes were varied, they did manage to demonstrate that management-labor relations
were hardly a dying issue.

MODELS OF LABOR MANAGEMENT RELATIONS

A “model” is a mental construct with which people organize their thoughts about a
topic. When we consider labor management relations, we usually think about a
single company dealing with a single local union. This is of course a model. The
figure below show the management of a company.

Management of a company

Union local No. 100

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Assignment No. 2 Labor Relations
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This company is dealing with local No. 100 which represents company A’s employees.
The line between the company and the union has arrows pointing both ways and
indicates that each side influences the other. Also, the absence of any other
organizations or lines indicates that the relationship between company A and local
No. 100 is all there really is to know about the system of labour management
relations indicated here. The above figure represents a model, in that is identifies
the parties involved, indicates their relationships as insignificant.

Customers of Stock holders in

which company A belong
Company A company A

Other local unions

Management of Government of
with which company
Company A regulatory bodies
A has dealing

Companies in which
Employees of Union Local No. company A has plants or
Company A 100 offices

In above figure we examine the web of relation ships involving company A. we see that
company A has responsibilities to its stockholders and customers as well as to local
no. 100. It also has relationships with other companies through an association to
bodies. It has commitments to the communities in which it operates; and it has
responsibilities to other unions with which it deals.

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This is more accurate model of the relationship of company A to local No. 100 because
it shows that the company must also deal with these other groups on issues that
affect local No. 100. for example in considering where to give into wage demands
by local No. 10 or to take a strike, company A must consider the impact of its
choice on its customers, it stock holders, the communities in which it operates, its
non unionized employees, and the other unions with which it deal. Often the strong
preferences of one or more of these groups will determine company A’s decision.

A local union is also involved in a web of relationships. Figure below shows that local
No. 100 must consider in its own activities the views of its national union, other
unions, the community in which it is located, its political friends (whom it should
not embarrass by its activities), other companies with which its contacts (if any),
and the management of company A it self.

Management of
National Union
Company A Other unions

Community in
Union Local 100 which the local is

Other companies located

with which local

Political friends of
deals
the local union

Figures 2 & 3 together constitute an alternative model to Figure 01. The alternative is
much more complex and shows that there are many more factors involved in the
relationship between company A local no. 100 than just the two organizations
alone. As such, the more complicated model is generally a more accurate reflection
of reality.

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The model in figure 01 may be referred to as a “one to one” model. The few
situations in which it applies in reality are not difficult ones to analyze. Most often,
however, labour relations are of the type diagramed in figure 02 and 03.

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PRACTICAL STUDY OF THE ORGANIZATION

(With respect to the issue)

PAKISTAN POST

Pakistan Post has a broad and varied role to play beyond provision of communication
link for individuals and businesses. Keeping pace with the changing communications
market, Pakistan Post is emphasizing in the use of new communication and information
technologies to move beyond what is traditionally regarded as a its core postal
business. Pakistan post is committed to make secure and timely delivery of mail,
money and material at the doorsteps of the customers at affordable cost.

Keeping pace with the changing communications market, Posts are increasingly using
new communication and information technologies to move beyond what is traditionally
regarded as their core postal business. They are meeting higher customer expectations
with an expanded range of products and value added services.

The International postal services are run under aegis of the Universal Postal Union
(UPU) the world over. One hundred ninety countries of the world are members of the
UPU, which is the largest physical distribution network in the world. The Universal
Postal Union (UPU) is a specialized Agency of the United Nations (UN). The UPU is the
primary forum for cooperation between postal services and helps to ensure a truly
universal network of up-to-date products and services. It sets the rules for
international mail exchanges and makes recommendations to stimulate growth in mail
volumes and to improve the quality of service for customers. Pakistan Post Office is a
member of Universal Postal Union (UPU) and follows the decisions taken by the UPU.
Pakistan Post Office Department was set up under the authority of Post Office Act,
1898 to provide domestic as well as international postal and allied services.
Pakistan Post Office is one of the oldest government departments in the Sub-

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Continent. In 1947, it began functioning as the Department of Post & Telegraph. In

1962 it was separated from the Telegraph & Telephone and started working as an
independent attached department.

Now the Postal department is functioning as the Ministry of Postal Services and headed
by a Federal Minister. It is pertinent to note that this is one of few services department
which is exclusively under the control of Govt., of Pakistan & in profit for the last
couple of years.

In 1993 it was declared as Corporation, however, during its initial years postal services
bear a huge loss of about 1300 million and then after 03 years of continuous loss, it
was again restored back to its previous condition / position.

It is said that it was only done in the interest of few people and to facilitate them and
this was among the other reasons that a profitable government institution bear a huge
loss.

THE ROLE OF THE POST IN PAKISTAN

The Post Office in Pakistan has a broad and varied role. It provides an important
Communication link to individual and businesses for:

• Exchange of official, commercial and private letters and communications. Means

for the dissemination of knowledge, culture and information on national and
current affairs through a low priced (compared to letters) transmission of
printed material and newspapers.

• Facilities to trade and industry for exchange of sample of merchandise at

minimum possible cost Facilities for the remittances of money from person to
person, institution to rafts and money orders institution, place to place through
postal orders, postal services.

• Provide financial services including savings bank facilities.

• Provide life insurance services through Postal Life Insurance.

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SERVICES BEING PROVIDED BY PAKISTAN POST

▪ Postal Services
▪ Remittance Services
▪ Services
▪ Other Services International Post
▪ Agency Function

(i) Postal Services

Postal mail is generally divided into two categories i.e. Un‐Registered and
Registered mail. Each category includes various kinds of articles of both Inland
and International mail. The Services are: Letters, Parcels, Express Mail Services etc.

(ii) Remittance Services

Pakistan Post Office traditionally provides the facility of remittance of money through
money order and postal orders. However, through Postal Draft Service larger amounts
of money can be remitted.

(iii) Agency Functions

Pakistan Post Office Department also serves as the principal agency for the
government in implementing key welfare polices. The department is providing a variety
of Agency Services on behalf of the Federal, Provincial Governments and autonomous /
corporate entities as per Annexure A on agreed rates of commission / service charges.

REGULAR SERVICES
Mail Services (Domestic)
Traditional Services
• Letters
• Post Cards
• Printed Papers
• Small Packets
• Literature for Blind
• Registered News Papers
• Domestic Parcels

Miscellaneous Services
• Certificate of Posting

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• Recall of Posted Article

• Post Restante
• Value-Payable Post
• Post Boxes and Bags

Value Added Services

• Registration
• Insurance

Mail Services (International)

• Foreign Letters
• Foreign Parcels

FINANCIAL SERVICES:

1. Savings Bank
• Post Office Savings Account
• Special Savings Account
• Savings Bank Mobile Account

2. Postal Life Insurance

Postal Life Insurance Offers 10 profitable options
• Whole life policy
• Joint life endowment policy
• Education and marriage endowment assurance
• Accidental death and permanent disability benefit contract
• Annuity policies
• Endowment policy
• Anticipated endowment (three payment) plan
• Child protection policy
• Non medical policy
• Group insurance

3. Western Union Money Transfer

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Instant Money Transfer from over 190 countries/territories worldwide to

Pakistan within minutes. Under an agreement signed in the year 2002, Pakistan
Post serves as a partner with Western Union for disbursing the payments
received through Western Union channel from all corners of the world. Pakistan
Post has been helping legal foreign exchange inflow to Pakistan.

4. Money Order

5. Postal Order

6. Postal Draft

7. Express Mail Services

8. Urgent Mail Service (City-to-City)

9. International Speed Post

10. Urgent Mail Service (Local)

FORMS AVAILABLE WITH POSTAL WEBSITE (http://www.pakpost.gov.pk/forms.html)

Savings Bank

1. Application for Savings Bank Withdrawal SB-7 Front Back

2. Savings Bank Nomination Form SB-57

3. SB-8

4. Saving Bank Index Card

5. SB-3

6. Application for the Purchase of Savings Certificates SC-1

7. Defense Savings Certificates Nomination Form SC-3

8. Application for the Transfer of Defense Savings Certificates SC-4 Front

Military Pension

9. PSB-2 &_7-8

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10. Pesnion-5 Front , Back

Postal Services

11. Custom Declaration CN-23

12. Fax Money Order Booking Form FMO-1 Front

13. Application form for Issue/Renewal of Post Box/Post Bag

AUTOMATION AND ALLIED SERVICES AT PAKISTAN POST

Pakistan Post has taken various measures to streamline the Post Office System on
modern lines. One major area of improvement is introduction of information
technology. A number of Information Technology projects have already been
completed/implemented and a few more are in pipeline.

A brief overview of some of the projects is as follow:

a. Benazir Income Support Program (BISP)

A complete web enabled tracking and monitoring system for disbursement of

funds for Benazir Income Support Program has been developed. The same is
implemented at all GPOs throughout Pakistan.

b. Punjab Food Support Scheme

Web enabled tracking and monitoring system has been developed and
implemented for the Scheme.

c. Counter Automation

Counter Automation System provides point of sale terminals equipped with

computers, electronic weighing scales, barcode scanners and printers. The
system ensures integrated/composite service provision at each counter. All 81
GPOs throughout Pakistan have also been provided with the same facility.

d. Computerized Military Pension Payment System

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Assignment No. 2 Labor Relations
Management (821)

Pakistan Post disburses military pension payments to over 1.2 million military
pensioners. The work for computerization of military pension was initiated in the
year 2003 as pilot project. Subsequently, it was felt necessary o extend the
scope of the project to all 81 GPOs. At present all 81 GPOs stand computerized
for military pension payments.

e. Express Mail Track & Trace System (EMTTS)

The Express Mail Track and Trace System enables Pakistan Post to track the
Express and registered insured Mail items from end‐to‐end within the country,
providing both customers and management with valuable information relating to
the location of items. The customers can track the status of their article using
Internet through the website of Pakistan Post at www.ep.gov.pk.

f. Electronic Money Transfer

A fully computerized system that transfers money from over 200 countries and
territories to Pakistan within minutes has been implemented. Done with the
collaboration of Western Union (WU), this system has received tremendous
response from the public. Valuable Foreign exchange is being received through
this legal channel of money remittance to Pakistan.

g. Revamping of Web Portal

The web portal of Pakistan Post (www.pakpost.gov.pk) has been fully revamped
and updated in accordance with the new vision and color scheme.

h. Computerization of Postal Life Insurance

A comprehensive computerization plan for postal life insurance is being

implemented. The system will have features including web integration for the
convenience of the customers to view basic information about status of their
policies.

FINANCIAL HEALTH

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Assignment No. 2 Labor Relations
Management (821)

For the last decade, Pakistan Post is running in profit. Postal Services and Financial
Services contribute 38% and 62% respectively to the revenue. Daily transactions
amount is about to Rs 4.7 billion.

POSTAL NETWORK

Pakistan Post is providing postal services in every nook and corner of the country
through a network of more than 13,000 post offices. Pakistan Post is providing delivery
services to about 20 Million households and businesses as community service without
any cost considerations. In addition to its traditional role, the Pakistan post also
performs agency functions on behalf of Federal and Provincial governments, which
inter alias include Saving Bank, Postal Life Insurance, Collection of Taxes, Collection of
Electricity, Water, Sui gas and telephone bills.

ORGANIZATION

An autonomous High Powered Postal Services Management Board with the Director
General Pakistan Post as its Chairman has been established through Pakistan Postal
Services Management Board Ordinance, 2002. The Board consists of the Director
General as Chairman and members of the rank of Joint Secretary from Ministry of
Finance, Ministry of Postal Services, Senior officers from Pakistan Post Office
Department and experts from private sector. Executive management of postal and
allied services below the Directorate General is done at three levels – the Circle Level,
the Regional Level and Divisional / District Level. A Postmaster General heads a Circle
and its territorial jurisdiction generally extends to a province. In carrying out their
responsibilities, the Postmasters General are assisted by the Regional Deputy
Postmasters General and Unit Officers at operational level.

MANAGEMENT / HIGH OFFICIALS

• Mir Israr Ullah Zehri, Federal Minister for Postal Services

• Abdul Raziq, State Minister for Postal Services

• Abdul Hameed, Director General Postal Services

• S. Ghulam Panjtan Rizvi, Addl. Director General (FS)

• Fazli Sattar Khan, Addl. Director General (Ops)

• Agha Anwar Gul, Addl. Director General (Admn)

BENEFITS FOR EMPLOYEES

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Assignment No. 2 Labor Relations
Management (821)

Postal Services has 81 GPOs at District level out of 143 districts of Pakistan and almost
in every village / town, a post office either departmental P.O. or commission based /
franchised are exist. However, Postal direct & in-direct employees are ranging about
48,000 to 50,000.

Here is a short synopsis of the benefits being given by the employer (POSTAL) to its
employees.

In Postal Services, Basic Pay Scale (BPS) are exists. Their regular / bonafide
employees are receiving all the benefits admissible / prevailed for govt., servants /
employees which include Pension payment / benefits, House Rent Allowance,
Conveyance & medical allowance / facility according to the scale etc.. Other than this
the employees can avail motor car advance, and other advances subject to the return
accordingly. The daily wagers & contractual employees are treated as admissible under
the government rules & regulations. There are certain commission employees / agents,
which are hired only on commission basis.

Postal service has residential colonies / flats for the accommodation of their
employees. Pick & drop facility for employees as well as management employed /
engaged some buses to extend pick & drop facility for their children to their schools /
colleges. Medical dispensary facility is also available for the employees of postal. They
can get medical checkup on free of cost & also can get medicines on free of cost basis.
Postal services has training centres where certain training & development programmes
are being initiated and taught to develop the skills of employees. Postal Staff College &
Postal Training Centre are the training centres of Postal services. Masjid & Cafeteria
facilities are also the part of the above mentioned facilities.

Besides there financial & non-financial benefits, Postal field staff which is engaged in
different schemes / projects of Postal usually awarded a very minimal incentive for
disbursing their jobs satisfactory, since Postal Services / Department is engaged in
disbursing the agency function for different public / private projects and to undertake
these ongoing projects, they give incentives to their employees to keep them motivate.

Postal employees were receiving a stipend on the name of ‘Corporate Incentive /

Allowance’ on the occasion of Eid twice a year, however, for the last couple of years,
this has been stopped by the Government. This was the only stipend that every

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Assignment No. 2 Labor Relations
Management (821)

employee received in return of his annual services to postal department. Because the
incentive involves in disbursing projects / scheme’s tasks is only distributed to the field
staff & the staff particularly engaged in the project / scheme. But the rest of all
employees are also contributing to the successful completion of the projects / agencies
services of postal and they have right to receive some cash reward in response to their
services.

Management in collaboration with CBA & employees has setup a Welfare Society /
Committee which collects funds to be granted for the support & welfare of the low paid
/ needy employees of Postal Services for the purchase of dowry items for the
daughters going to be married, children’s education or purchase of plot etc.

Besides all these benefits, one thing which is very unusual that the employees of postal
services can not post their private letter (s) on gratis basis even a single letter; but
different other services department grant their facilities on very minimal or free basis,
for instance, PIA issues domestic & international air-tickets to their employees on
gratis basis. PTCL has allowed residential telephone facility with free calls local &
domestic to their employees, call charges limit is varied according to their position
(Scale 1 to 21). Even in Testing & Research Organizations, employees can get their
tests on gratis basis like PCSIR etc.

COLLECTIVE BARGAINING IN POSTAL SERVICES

Another very unusual thing is the existence of number of CBAs in Postal Services
Department. There are five Collective Bargaining Units exists in postal services
department. The following are the name of CBUs alongwith their representative CBAs.

1. Operations : National Organizations of Postal Employees Union

2. Administrations : All Pakistan Postal Circle & Regional Offices Employees Union

3. Postal Life Insurance: Postal Life Insurance Employees Union

4. Mail & Transportation: District Mail Offices Employees Union

5. Headquarters: Postal Head Office Employees Union

All these unions come under the Pakistan Workers Federation. However, all CBAs are
trying to restore the Federation named “Federal Organization of Postal Employees”.

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Assignment No. 2 Labor Relations
Management (821)

Due to some unknown reasons, the postal services has divided in to 05 big units for
collective bargaining as mentioned above and due to this, the collective bargaining
process is not much strong as it exists in different other departments. These five CBAs
are functioning in their respective CBUs. Every CBA addresses the problems of his
concern CBU, however, where the benefit of whole organization comes, they get
together to support each other. However, there is a dire need for all these CBAs to
come on one plat form, under one flag and one leadership to become more powerful &
to support their rights. Majority is the power & still management is successful in her
tactics of keeping them separate and because of this, CBA sometimes never have full
strength / participation to support any cause. This is a big loss/damage for employees.

Well one reason for not joining together or forming one CBA is may be a fear in the
mind of the members of CBAs of loosing their high position in their respective CBAs.
However, as far as the CBA of Postal Headquarters, Islamabad (PHEU) is concern, their
General Secretary while interview said that his party is willing to form one CBA in
overall postal services department across the Pakistan and for which they are also
willing to withdraw their own positions and willing to work at any position.

WORK COUNCIL

The following is the composition of work council in Postal Services Department,

Headquarters, Islamabad.

Members from Management Side:

Deputy Director General (Admin) Head of Work Council

Director (Admin) Member

AD Director General Member

Superintendent (Law) Member

Members from CBA (PHEU) Side:

President (Mr. Qurban Hussain Shah) Member

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Assignment No. 2 Labor Relations
Management (821)

General Secretary (Mr. Moazzam Ali Zahid) Member

Joint Secretary (Mr. Khalid Mehmood) Member

Press Secretary (Ch. Zaka ullah) Member

There are two groups / parties exist in Postal Services Head Office, Islamabad which
names are Itehad Group & Takbir Insaf Group. Last year, there were a dispute among
workers regarding the CBA and this year (2010), NIRC holds elections for CBA. Now
the CBA comprises the member both from the groups / parties, however, the Itehad
group is heading the senior positions like the President, General Secretary, Joint
Secretary & Press Secretary and the Takbir Insaf was able to get some lower positions.

And this 1st time happens in the history of the elections of Postal Services that the
turnout of the votes was 98% and this shows the employees intentions towards the
formation of CBA.

The General Secretary of Postal Head Office Employees Union, a member of Itehad
Group said that the participation of both groups is very good / progressive as this is a
check on both groups, so that no one can favour their own party / group’s members.

One member of Postal Head Office Employees Union (PHES) is also nominated by the
management as a member of all beneficiary committees like House Allotment
Committee, Advance Committee, etc. However, he is only supposed to attend the
meetings as a participant and has no further powers regarding different decisions.

The relationship between the Management & CBA never remains good in almost every
organization. Usually it is observed that management put back the benefit / interest of
workers / employees for their own interests. Similarly in Postal Services Head office,
Islamabad, management is not fully cooperating with CBA on different issues /
matters.

There are certain reservations of CBA were found during study and few were explained
below:

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Assignment No. 2 Labor Relations
Management (821)

Participative Decision Making

CBA intended to have full participation in all the beneficiary committees & demands
effective participation towards decisions besides only formal participation. CBA also
desires to have participation in the Managerial / Management board and intends their
participation in making the policies / SOPs for the postal employees / staff.

Quarterly / Bi-Monthly Meetings

CBA also intends that management must schedule & holds quarterly / bi-monthly
meetings. Management never calls the CBA for quarterly / bi-montly meetings to
discuss the problems / issues being faced by the employees / staff of postal services
Head Office, Islamabad.

Non-response to issues

There are certain matters which CBA had already discussed with the Management but
management has not taken any step regarding those matters. This is the responsibility
of the management to ensure their cooperation with CBA towards the betterment /
benefit / interest of the postal employees & early actions may be taken against those
discussed / decided matters.

Monopoly of the Management

Recalling previous years, no serious strike have been found in Postal Head Office,
Islamabad. This do not shows that the management if fully taking care of the rights &
benefits of the employees but the distribution of Postal CBUs in five units is the major
hindrance and both the existing CBA & employees are suffering. Formation of one CBA
will be a good step to support the rights / benefits & interest of employees of Postal
Services. So you can say that the management has monopoly not only in the whole
postal services departments across Pakistan as well as in the Head Office, Islamabad.

PAKISTAN POST EMPLOYEES FORM ACTION COMMITTEE TO OPPOSE

PRIVATIZATION

Federal Cabinet has approved privatization of 57 state-owned entities (SOE), which will
be completed in nine months, this was stated by Federal Minister for Privatization,
Waqar Ahmed.

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Assignment No. 2 Labor Relations
Management (821)

He was speaking to the media men after attending a meeting at Wapda House here
today.

He said that foreign investors are interested in purchasing OGDCL, Utility Stores
Corporation and Postal Service, and shares of OGDCL will soon be offered for sale.

After this shocking news, the employees & CBA feel insecurity as they were uncertain
about the future. Then all CBAs of Postal Services formed Postal Action Committee for
Anti-Privatization of the employees of Pakistan Post. They vowed to launch a
comprehensive campaign to oppose the privatization of Pakistan Post.

A meeting of the Postal Action Committee for Anti-Privatization having representation

from different CBA unions including All Pakistan Postal Circle Regional Offices
Employees Union held a meeting in Islamabad under the chairmanship of Syed Qurban
Hussain Shah.

The meeting condemned the decision of the government to privatize Pakistan Post and
said that it will be "economic murder" of the employees of the department who have
been working with dedication to serve the general public.

It was also decided that the Action Committee would coordinate with all the CBA
unions to launch comprehensive campaign to oppose the privatization of Pakistan
Post.

President PLI Employees Union Muhammad Aslam Haya has been elected as convener
of the Action Committee that will include the Presidents and Secretary General of the
CBA unions including Moazam Ali Zahid, Syed Qurban Hussain Shah, Syed Tehzeeb ul
Hasan, Haji Raza Khan Afridi, Syed Qamar Abbas Zaidi, Sajjad Ahmed Khan Chandio,
Asad Ullah Khan, Javed Iqbal and Abdul Maroof Azad.

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Assignment No. 2 Labor Relations
Management (821)

ADDRESS OF MIR ISRARULLAH ZEHRI, THE FEDERAL MINISTER FOR POSTAL

SERVICES:

Minister for Postal Services Mir Israrullah Zehri has said that government was
committed to resolving problems being faced by the postal employees.

He said this in a meeting of Postal Headquarters Employees Union (CBA) wherein

Managing Director and the Secretary Postal Services were also present.

The minister urged the employees to do hard work for the development of the Pakistan
Post with dedication and devotion. Zehri said that all the employees who are working
on the daily wages or working on Adhoc-basis would be regularised according to the
government policy. He said that on the occasion of Eid-ul-Azha Post employees will
receive corporate incentives and assured creation in Headquarters general cader one
post of grade 19, two 18 to boost the performance of the organisation.

Superintendent of general caderas, assistants, Stenos, U.D.C, L.D.C and other caders
promotion process will be further expedited, he added. He said that besides availability
of medicine, new equipment would be provided to the postal dispensary. The housing
facility would be provided to the employees on ownership-basis, he said. The modern
services would be launched soon for the development of the postal services.

Pakistan Post would be modernized and upgraded throughout the country and brought
at par with the international standards. General Secretary of the Employees Union
Moazzam Ali Zahid hoped that during Israrullah Zehri’s tenure as the first minister for
postal services, the institution would be modernized and upgraded.

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Assignment No. 2 Labor Relations
Management (821)

WORKERS BEING EMPOWERED UNDER BESOS: SENATOR WAQAR

About 500,000 workers of 80 state owned entities (SoEs) are being empowered under
Benazir Employees Stock Option Scheme (BESOS) by giving them free of cost 12
percent GoP shares unit certificates, disbursing dividends, ensuring their
representation on their respective Board of Directors, making them owners and
associating them to have their say in the decision making process for the progress of
their companies.

Senator Waqar Ahmed Khan Federal Minister for Privatisation said during a meeting
with a delegation of Postal Headquarters Employees Union led by General Secretary
Moazam Ali Zahid here today.

The Minister remarked that Pakistan Post’s network was the largest than any bank in
the country and the government intended to streamline its banking activity through
creating a bank and improving its other services through restructuring.

However, it was for the employees of Pakistan Post to make their department
profitable and vibrant, he said.

Senator Waqar further said “we were not privatizing any entity but for value addition of
the entities in Privatisation Program private sector was being associated through Public
Private Partnership (PPP) with clear instructions that not even a single employee could
be retrenched and to create new job opportunities through expansion in these entities
and to increase the production”.

The Minister asked the PC officials to form a committee to identify the grievances and
to address the reservations of the Pakistan Post Offices employees.

Earlier, the leader of the delegation Moazam Ali Zahid Secretary General Postal
Headquarters Employees Union informed the Minister that five CBA Unions of Postal
Headquarters, Postal Administration, Postal Operations, Mail Sorting and Postal life
Insurance were representing more than 40,000 employees of Pakistan Post.

The employees should be taken on board prior to taking steps for restructuring or
adopting Public Private Partnership (PPP) mode, he said.

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Assignment No. 2 Labor Relations
Management (821)

SWOT ANALYSIS:

Strengths:

• Incentives to service staff / field staff

• Large network / available anywhere in Pakistan

• Larger network to facilitate public support programmes

• Government preference

• Multiple services

• Accommodation, traveling & Dispensary facilities

• Training & Development Centres

• Postal Foundation for welfare of employees

Weaknesses:

• Management of Large Network

• Less staff engaged in disbursing of agency function / projects

• Lack of Technical / IT Induction in services

• Manual Services

• Lack of Govt., interest in Technical / IT Induction in services

• Shortage of IT Manpower

• Employees Cannot take the benefits of any service of postal on gratis basis

• Less pay packages comparative to the other services departments like PIA, PTCL
etc.

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Assignment No. 2 Labor Relations
Management (821)

• Improper security arrangements at GPOs where thousands & million of

transactions are being made and funds are available.

• 05 CBAs in their respective CBUs

Opportunities:

• Development of IT infrastructure at atleast Division level

• Upgradation / shifting of Manual Services system to IT based

• Training of Staff in IT to make them skilled & effective

• Training & Development in PTC& PSC locally & abroad as well

• Formation of One Collective Bargaining Unit will strengthen the employees to

defend their problems / issues

• New Labour Policy 2010 & IRA 2010 will create more opportunities for the
employees / workers

Threats:

• Privatization is a big threat for employees

• Shortage of Technical / IT skilled Manpower

• Lack of attention from Government

• Attractive Pay & Perks offered by rivals / competitors

• Stoppage of Corporate incentive for the last couple of year

• Non-compliance from the Management towards the chartered demands of CBA /

employees

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Assignment No. 2 Labor Relations
Management (821)

CONCLUSION:

Based on my research on the topic “Labor Management Relations in Public Sector”, I

thoroughly studied Postal Services Department, Head Office, Islamabad. Even in this
digital age, the Post remains, for millions of people, the most accessible means of
communication. The staff of postal services is doing remarkable job in disbursing all
the agency functions being undertaken by Pakistan Post.

Basically their employees’ compensation is settled under the Basic Pay Scales.
However, the field staff is also receiving incentives. There was a corporate allowance
which employees were receiving on Eid days twice a year, however, for the last couple
of year, the corporate allowance has been stopped.

Postal services department also build residential colonies / flats for the accommodation
of the employees, pick & drop facilities for employees and their children to schools &
colleges, medical dispensary & medication facility is also available for the employees. A
welfare society is also formed to support low paid employees for the purpose of dowry,
education of children or purchase of plot etc.

As far as the collective bargaining is concerned, Postal Department has divided into 05
CBUs where 5 different CBAs are functioning. The existence of more than one CBA is a
big loss of the workers / employees as there is a dire need for all the CBAs to join
under one leadership to collectively support the causes and benefits of the employees.

In Postal Head Office, PHEU is currently functioning as CBA, headed by Syed Qurban
Ali Shah, President PHEU, elected from Itehad Group.

The pay & perks of the staff of Postal is comparatively less to the other services
department like PIA, PTCL etc. Postal is found very neglected & deprived department
even remaining profitable for the last many years.

The services of Pak Post are not fully automated, mostly their services are manual
based. The security measures are not up-to the mark on most of the GPOs where
thousands & millions of transactions are being made on daily basis.

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Assignment No. 2 Labor Relations
Management (821)

After the approval of the cabinet regarding the privatization of state own departments,
and postal being on top priority, the staff / employees are under high fear & insecure
about their future. In this context, All CBAs of Pak Post are joined and formed Postal
Action Committee for Anti-Privatization of the employees of Pakistan Post to project
there interest & to secure their future.

Although a member of CBA is nominated as a member of all beneficiary committees of

Postal Department, however, he does not have powers towards decision. The member
of CBA is only supposed to present in the meeting as a participant. Management is
usually reluctant to take urgent / quick actions on the chartered agendas of the CBA.
However, no serious strike has been recorded since long and the main reason behind
this fact is the existence of number of CBAs in Postal Department.

In this era of digitalization where IT has surrounded everywhere like in offices,

business entrepreneurs, institutions, govt., departments, etc. still the services of Post
is always required. No one can neglect the need & importance of Pak Post. Pak Post is
doing excellent job and delivering the best quality services across the country. Its
network is wide, and accessible anywhere. Rival / competitors firms are always a
threat for Pak Post, however, they are furnishing around 54 agency services and
enjoying the profitability since many years.

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Assignment No. 2 Labor Relations
Management (821)

RECOMMENDATION:

Some recommendations are narrated below:-

• Even engaging more-than 48000 direct & in-direct employees / workers, they
required more staff to furnish their 54 agency functions / current projects &
schemes, and to manage their Large Network.

• IT infrastructure may be developed to shift the manual services to automated

one & more Technical / IT staff may be hired.

• Government must fund some IT related Projects in Pak Post

• Employees may be allowed to take the advantage of some service of postal on

gratis basis

• Pay packages may be upgraded comparative to the other services departments

to keep the employees motivated

• Proper security arrangements may be made at GPOs where thousands & million
of transactions are being made and funds are available.

• Besides 05 CBAs in their respective CBUs, there must be only one CBU & only
one CBA in Pak Post. One leadership will resolve most of the issue and
employees will be more strengthen.

• Management must take quick / urgent actions on the chartered agendas of CBA
to keep the working environment peaceful and friendly

• Privatization is not the right way to sell the profitable government institution and
Pak post should not be privatized.

• Corporate incentive may be restored & sanctioned to the employees of Postal

Services department.

39