Daily Times

The budget process has started and the associations representing various kinds of businesses are sharing their proposals with the government. The absence of a pro-poor perspective in these consultations is a huge challenge for the decision makers as major issues concerning the poor may get neglected. These include the matter of minimum wages. It may be recalled that there has been no revision of the minimum wages during last year although the cost of living has gone up considerably.

All political parties contesting a general election come up with their manifestos. Among other things, manifestos of the mainstream political parties include roadmaps for the welfare of the labour. Fair wages are one of the most popular promises as well as one of the most neglected issues. Let’s go over what the mainstream political parties promised ahead of the two recent elections.

In its 2018 campaign, the Pakistan Tehreek-i-Insaf promised to create 10 million jobs over five years. It also vowed to bring legislative as well as administrative measures to ensure that workers are not denied their right to social welfare. Importantly, the PTI manifesto is silent on the matter of minimum wages. In 2013, the party had promised to link the minimum wage with inflation, the establishment of a tripartite Labour Policy Board, better utilization of welfare funds and Workers Profit Participation Fund.

The Pakistan Peoples Party promised in 2018 to raise the minimum wages to the level of living wages. It also said: “We will ensure that the mechanism for enforcing the minimum wage through existing minimum wage boards will be strengthened, and a system for redressing grievances will be established for workers to report if they are not receiving the minimum wage”. The party also introduced Benazir Women Agricultural Workers’ Programme to ensure that women working in the agriculture sector receive no less than the legal minimum wages. The programme included a mechanism for wage setting arbitration for major seasonal crop activities.

In 2013, the party had promised to raise the minimum wage for unsiklled workers to Rs 18,000 per month. The wages, it said, would be revised with inflation. It also promised social benefits including a housing complex in the provincial capitals, committees at district level to resolve labour disputes, repeal of laws not inconfomity with ILO Conventions, and use of maximum resources available for labour welfare.

Minimum wages set by the federal as well as the provincial governments are well below those recommended by organizations working for labour rights (including ILO). The governments have an opportunity in the upcoming budgets to fulfill their manifesto promises by at least doubling the labour wages

In 2018, the focus at Pakistan Muslim League-Nawaz was on loan schemes and technical training to create jobs to reduce poverty. Like PTI, the PML-N manifesto was silent on minimum wages.

In 2013, the PML-N had promised decent work, fair wages and social protection for labour. It had specifically mentioned plans for the establishment of a National Health and Safety Council, and tripartite national and provincial councils. It said labour laws woud be revisited to ensure justice.

In practice, the major parties have failed to use the minimum wages to protect and improve the living standards of labour. Fixing the minimum wages is a manifestly political decision. Successive governemnts have failed to set up effective minimum wages boards. A minimum wages board is empowered under The Minimum Wages Ordinance, 1961. The law provides for regulation of minimum rates of wages for workers employed in certain industries. The board is mandated to make recommendations to fix minimum wages and to review its recommendations when required in view of changes in cost of living and other factors.

Having promised in 2013 to raise the minimum wages for unskilled workers to Rs 18,000 a month, the PPP failed honour its commitment on forming government in Sindh. For its part, the PML-N failed to define “fair wages” and wages were not raised significantly in the Punjab or in federal areas. The PTI, too, made no significant progress on linking the minimum wages to inflation in Khyber Pakhtunkhwa where it formed the government.

Following the 18th Constitutional Amendment in 2010, the subject has been transferred to the provinces. In 2010, the minimum wage for unskilled workers was Rs 8,000 per month in all provinces. A Rs 1,000 per month raise was announced every year from 2010 to 2017 with the exception of 2014 when a Rs 2,000 raise was announced. After the amount was raised to Rs 15,000 a month in 2017, only Sindh raised it to Rs 16,200.

The minimum wage fixed by the governments fails to provide for the basic needs of a household. More than 50 per cent of it is spent on food alone. This is an important factor in sustaining child labour.

The prices of several essential items, including food, have seen a sharp hike in recent times. In the first week of February 2019, the prices of essential items rose by 6.8 per cent for the Rs 12,000-to-Rs 18,000 income group. Last month, the inflation rate jumped to 9.4 per cent, the highest in five years.

Minimum wages set by the federal as well as the provincial governments are well below those recommended by organizations working for labour rights (including ILO).

The governments have an opportunity in the upcoming budgets to fulfill their manifesto promises by at least doubling the labour wages.

Fixing the recommended wages can help improve the health and education indicators and reduce child labour and vulnerability. Suitable earning against work is the right of every citizen. It should be recognized by all governments and enforced. All the policy makers need in this regard is a political will to make labourers’ life easier.

The writer is a development professional based in Islamabad