University of the Punjab

Institute of Administrative Sciences

Topic:
“Industrial Relations Practices in PEL”

Subject:
IR & LL
Submitted To:
Dr. Sabeen Imran
Submitted By:
Rabia Riaz (BS-IAS-125-S-F18)
Laiba Aqil (BS-IAS-145-S-F18)
Muhammad Moiz (BS-IAS-164-S-F18)
Fatima Khalid (BS-IAS-170-S-F18)
Semester:
8th
Group:
HR (Self-Support)
 Pak Elecktron Limited

 Introduction

PEL contributes in our lives every day, by providing not just appliances for a better

lifestyle, but with Power products like transformers, switch gears and energy meters. PEL was

incorporated in Pakistan in 1956 as a public limited company. PEL has long been known in

Pakistan as a company that produces quality products. It is the manufacturer and distributor of

electrical goods and home appliances in Pakistan. Since its inception, the Company has always

been contributing towards the advancement and development of the engineering sector in

Pakistan by introducing a range of quality electrical equipment, home appliances and by

producing hundreds of engineers, skilled workers, and technicians through its apprenticeship

schemes and training programs

Company Operations are divided into two divisions

Power division:

o Distribution Transformers o Switchgears

o Power Transformers o Grid Stations

o Energy Meters

Appliances Division:

o Refrigerators o Water Dispensers

o Air Conditioners o LED TVs

o Deep Freezers o Washing Machine

o Microwave Ovens
 The products manufactured by PEL have always been of high standard. PEL has been

continuously adding new products to its range. One sector in Pakistan that has grown

considerably in the past is the Home Appliances Division.

 History

PEL was set up in 1956 as a joint venture with one of the largest and renowned

manufacturers of electrical equipment AEG of west company for manufacturing Transformers,

Switchgears and Electric Motors etc. The entire job of machinery requirements and layout of the

factory building was planned and implemented by AEG who produced very well-balanced

facility for the design and manufacture of the above equipment. In 1978, the majority shares

were acquired from Malik Brothers by Saigol Group. During the year 1990 the company had

signed an agreement with HITACHI of Japan for the manufacture of Vacuum Circuit Breakers.

In 1994 the company had agreement with Asea Brown Boveri United State of America (ABB

USA) to manufacture energy meters. In 1997 they acquired technology from carrier USA to

manufacture window A/C. In 2004 they acquired technology from Ganz Hungary to produce

power transformers. In 2005 the company has entered into an agreement with Pauwels, Belgium

to produce distribution transformer. In 2009 the company has entered into an agreement with LG

for the distribution of LG’s home appliances. In 2010 the company has entered into an agreement

with General Electric USA to manufacture switchgear. In 2012 the company do power contract

with government. In 2014 Appliances Division highest ever sales.

 Interviewee Profile

Name

Naveed Ahmed Sheikh

Designation

Industrial Relation Manager

Age

42

Gender

Male

Work Experience

He has 20 Years of work experience. He worked in Mitchell’s fruit

company and then he worked in EBM. PEL is the third

organization in which he is currently working. He has been

working in PEL for last three Years.

Qualification

Master in Public Administration from Quaid-e-Azam University,

Islamabad and also studied law and has some international

certificates.

IR Degree or Training

Has done 3 courses from Singapore and Japan on employee

engagement and employee relations

Contact 0309-7774222

E-mail naveed.ahmed@pel.com.pk
 Industrial Relations Practices in PEL

PEL lies under the ambit of Provincial Industrial Relation Act.

 Association

PEL is a member of the Employers Federation of Pakistan. Employers’ Federation of

Pakistan is the only body of employers in Pakistan that is a member of the International

Organization of Employers (IOE). EFP is active in ensuring Compliance Plus of all International

Standards.

 Trade Unions

Two trade unions exist in PEL since 1970 which are

o PEL Employees

o PEL Worker Union

Trade unions play a very positive role if workers come across any problem in work

conditions such as overtime issues, time issues, or some family issues. Through trade unions,

management obtains all information from workers and seeks to resolve it. So that workers can

easily balance their work life or personal life.

 CBA

The current CBA is the PEL employee union or it is elected in March 2021.The

administration is not playing any role in the election because it is an independent activity. An

election was held by NIRC (National Industrial Relations Commission).

The management only provides a list of employees which is also a list of voters.

Employees who are on probation period will not be included in the list of employees.
  Process of Charter of Demand

In 3-4 pages, CBA writes its demand on its letterhead. The management acknowledged

this and returned a copy to the CBA, and then if CBA wants, they sent a copy to the NIRC.

 Key Problems

Worker faces some common problems like working hours, overtime problems, vacation

problems, and so on. It may not be important for the management but it is important for the

worker.

Whenever there are financial implications such as bonus issues and conveyance issues, it

has to be dealt with differently.

 Shop Stewards

Pel has 32 shop stewards. Shop steward are nominated by CBA. Shop stewards highlight

the things that are needed to improve the system and protects the right of workers and then

implement it.

 WMC

PEL has workers management council in which equal representation of employer and

worker exist. PEL’s workers management council has total eight members; four members each

represents the workers and employer categories.

 HR Involvement in IR

As IR & A manager of PEL, he told us that if organizations have more than 2000

employees then organisation separates the HR department and makes IR department for labour

management because scope is large. In PEL, HR department and IR department separately

perform their functions. HR department looks into the matters of non-workmen like manager,

executive and junior executive and IR department see matters of workers. In PEL, HR
department don’t involve IR department because it sees the matters of worker. In any

organization if HR department play the same role as IR department, then HR role exist but in

PEL, there is no role of HR because both departments separately perform its functions.

 Disputes

In PEL, no dispute arises. PEL provide benefits to employees. PEL provides gross salary

to employees on rare occasion for example IR manger told us on the occasion of Eid the workers

are provided with gross salary.

 Labour Inspection

Last labour inspection done by the government at April 25th, 2020. Since, our system is

clearly transparent. So, Manager IR & A never hesitate to show our documents to the inspector.

As such, no issue arises in labour inspection.

 Covid & Post Covid Period

In covid, PEL faced plenty of hurdles regarding sourcing of material from China. Since,

they were getting supplies 60 to 70% supplies from China. So, it really effects our

manufacturing. Ultimately, PEL decided to produce products locally in Pakistan to overcome the

situation.

PEL did not layoff the permanent workers. But recently, PEL hired few helpers in March

and right after this, covid situation happened. Due to that circumstance, it become necessity to

dismiss those helpers otherwise we do not prefer to layoff our employees

In covid some units were closed for over six month and some were not operational for

three weeks but PEL paid salaries on time to their employees.

In covid period, PEL laid off their all-seasonal workers and used apprentices for their

normal routine production instead of their seasonal workers. PEL paid normal salaries and legal
benefits to their permanent workmen but they don’t give Ex-gratia bonus to all of them.

In post covid period, PEL faced increase in production due to this, PEL first hire those

seasonal workers who laid off in the covid period.

 Challenges

In PEL, IR & A Manager doesn’t face any challenge in the implementation of Labour

Law because everything is running in formal way.

 Benefits

PEL gives 60 Lac Rupees to Government of Punjab and 30 Lac Rupees to UAE as social

security through which workmen take benefits like incidental benefits, death benefits and

pension over 60. Other than that, PEL give ex-gratia bonus and some extra allowances apart

from salary such as Milk allowance, Heat allowance, Over-Time allowance and Night allowance

etc.

 Issue & Recommendation

PEL faced issues from the workers' side in their apprenticeship program in which Manger

IR & A convinced the permanent workers to send their children to the company where they can

learn how to operate CNC machines and RAC, but they do not want that their children learn that

type of skills. On the other, PEL could not compensate the apprentices well as compared to the

market because of the training expenses. Due to this, CBA didn’t support the apprenticeship

program of PEL. In the future, if PEL wants to carry on the apprenticeship program in a well-

mannered way, then PEL has to get support from CBA by compensating more their apprentices

as compared to the market.

Analysis
PEL is a formal organization in which IR & A Manager implemented the Labour Laws in a well-

mannered way. In PEL, Trade unions exist but every type of election was held by NIRC

(National Industrial Relations Commission), not by the contributions of management. In PEL,

CBA has a supportive role for management because Management obtains all information from

CBA about issues that workers face and try to resolve it. In PEL, Shop Stewards help to improve

the system of production in both divisions and protects the right of workers. In PEL, WMC give

advices the management about “how to secure and preserve workers-management relations; and

how to make a healthy work environment”. In PEL, HR department and IR department

separately perform their functions, because there is a great complexity in handling the

managerial employees and non-managerial employees simultaneously. In PEL, no dispute arises

because PEL gives priority to its employees in every situation. That’s why, PEL didn’t layoff the

permanent workers and paid normal salaries and Eid bonuses even when PEL faced plenty of

hurdles in covid situation. PEL doesn’t face any issue regarding labour inspection because PEL

has a transparent system and if in rare cases, PEL has to face some issue, then PEL follows the

policy of "settling things under the table" just like any other company does in the "world of

corruption" means "Pakistan".