Trade Unions and CBA In

Pakistan
 Trade unions

⚫ Labor law in Pakistan defines ‘trade union’ as a

combination of workmen whose primary purpose is to
promote and defend workers’ rights and interests in an
industry or establishment.

⚫ The right to join association is guaranteed under article

17 of the Constitution of Islamic Republic of Pakistan,
which says, “Every citizen shall have the right to form
associations or unions.
 Legislation in labor related matters

⚫ After passage of 18th Constitutional amendment,

labor is no longer a subject on concurrent list i.e.,
central government can no longer legislate in labor
related matters.

⚫ After the devolution of the subject of Labour, each

Province has enacted its own Industrial Relations Act.
 Provincial Acts
⚫ The Acts fundamentally provide for consolidating and
rationalizing the Provincial laws to facilitate the
formation of trade unions and improve the relations
between employers and workers. The respective
Provincial Acts are as follows:

⚫ Balochistan Industrial Relations Act, 2010 (BIRA)

⚫ Khyber Pakhtunkhwa Industrial Relations Act, 2010
(KPIRA)
⚫ Punjab Industrial Relations Act, 2010 (PIRA)
⚫ Sindh Industrial Relations Act, 2013 (SIRA)
 Agriculture sector
⚫ Industrial Relations laws are not applicable to agriculture
sector where around 42.27% of the labor force is employed
(Labor Force Survey 2014-15).

⚫ Agriculture workers are free to join and form associations,

however, they can’t collectively bargain under the Industrial
Relations Act as this law is not applicable to the agriculture
sector.

⚫ Interestingly, the industrial relations legislation in Balochistan

(2015 amendment) and Sindh (2013) has allowed agriculture
workers to form and join trade unions.
 How many unions can a workman join?
⚫ A workman can become a member of only one union
at a time. If a worker joins more than one union at a
time, his earlier membership will get cancelled.
⚫ How can we register a union?
⚫ What are the requirements?
 Requirements of application.
⚫ A trade union can apply for registration to the office of
Registrar of trade union in a province.

⚫ While submitting the application for registration, you

need to attach a statement showing:

⚫ name and address of trade union, its date of formation,

relevant information of its office bearers (like titles, names,
ages, addresses and occupations), name of establishment and
industry to which this union relates, total number of workers
employed in establishment.
⚫ The Constitution of your trade union should also provide
information on:

⚫ Name and address of trade union

⚫ Objectives of your trade union
⚫ Usage of funds (purpose)

⚫ After registration, the Registrar of trade unions will issue

you a certificate of registration as a conclusive evidence
of your trade union’s registration.

⚫ Registration of your union can be cancelled either by

Registrar of trade unions or Labor Court.
 There are also registration requirements,
which require that:
⚫ All members of a trade union should be workmen,
engaged in same establishment (you can’t take members
outside your establishment).

⚫ If there are two or more unions in your establishment,

your membership must not be less 20% (some laws
stipulate 25%) of total employed workforce (it means only
4-5 unions can exist in your establishment).

⚫ Only up to 25% of the executive body members can be

outsiders (those who are not actually employed as
workmen in your establishment)
COLLECTIVE BARGAINING
AGENT (CBA)
 Collective Bargaining
⚫ A registered union is in a position of collective
bargaining.

⚫ Collective bargaining agent is a person from the

workman of the same industry/organization who can
bargain with the management on employees behalf.
 How Collective Bargaining Agreement
is determined?
⚫ A collective bargaining agent is elected after holding a secret
ballot election if there is more than one union in an
establishment.

⚫ However, if there exists only one union and its members are at
least one-third of total workers in an establishment and it makes
an application for certification, then it can be certified as CBA
by Registrar.

⚫ In case of more than one union, Registrar is to hold a secret

ballot election within 15 or 30 days (depending on establishment
size) after having received application for determining status of
CBA.
⚫ Those who are eligible to vote are:

i) with at least 3 months of service,

ii) members of a trade union contesting the elections and
iii) registered as voters in the voters list.

⚫ A trade union can’t be certified as CBA unless the votes

received by it are at least 33% of total employed workers in an
establishment.

⚫ If no union receives at least 33 of total votes (of employed

workers), a second election will be held between two unions,
who have secured highest number of votes.

⚫ Thus, the union that wins this run-off election will be certified
as CBA.
 What CBA can do?

⚫ The CBA engages in collective bargaining with

employer on any matter of employment,
non-employment, terms of employment and working
conditions.

⚫ CBA also represents workers in any proceedings,

gives notice of.
 Process for declaring strike and lockout
⚫ Strike is the cessation of work by a worker in
establishment acting in combination or a concerted refusal
of employed workers to continue to work to accept
employment while lockout is closure.

⚫ Similarly, suspension (of work) or refusal on employer’s

part to continue employment of workers where this action
is related to an industrial dispute or where aim of this
action is to compel workers to accept certain conditions of
employment also falls in the ambit of strike/lockout.
⚫ Strike or lockouts can be declared only for industrial
disputes and not for individual grievances.

⚫ Only an employer or CBA can raise industrial disputes,

while following certain steps.
 Steps of declaring strike and lockout
1. They first need to negotiate on any arising industrial dispute.

2. If disputant parties are unable to resolve matter through

negotiation, they can go for conciliation (a person who acts as a
mediator between two disputing people or groups.).

3. If conciliation fails, both the parties can either go for arbitration

(Someone chosen to judge and decide a disputed issue). Optional

4. The award of arbitrator is final and can’t be appealed against.

However, if they don’t refer the matter to an arbitrator, CBA can
go on a strike or employer can declare a lockout (both after
serving necessary notices).

5. While during the strike/lockout, any party can apply to Labor

Court for adjudication.
 Procedure for the selection of the C.B.A.

1. The list of union members is to be submitted.

2. Announcement for date and place for ballot.
3. Symbols allotment to all the candidates.
4. Appointment of officer to look after the election process.
5. Supply of the ballot boxes/vote printing by the employer.
6. Number and location of ballot boxes.
7. Commencement of voting
8. Stoppage of ballot in case of problem and announce the new date.
9. Closure of ballot (specific time).
10. Evidence of vote.
11. Counting of voting in front of members from each party.
12. Objections if any is raised by any member.
13. Declaration of the collective bargaining agent for two years.